The AXiS LXXXII (83)

Disguised Stability Currency Gains Momentum ................................................................................... ................................................................................... ................................................................................... ................................................................................... ................................................................................... Burgeoning FDIs Transcend ZIDA Aspirations Elon Musk's Lithium Mining Ambitions in Zim E-Creator :Piercing the Cryptic Deception Tanganda's Expansion: Just Embellished Reports? #Issue: LXXXIII

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 fingertips The CONTENTS The AXiS LXXXIII 07 Jul 23 In Focus 4 5 6 7 15 Swimming Naked Delving into FDIs : HY Inflows Surpass ZIDA’s Target? A Game-Changing Partnership? : Elon Musk's Interest in Zimbabwe's Lithium Mining Industry E-Creator : Unraveling the Elusive Scam Markets Guest Column World News 23 24 25 26 Capital Markets 17 18 19 Business around the world Politics around the world Regional Economic watch Markets Watch ZSE Weekly Weekly Commodities Pulse Financial Markets At a Glance 21 22 27 The Cover Page 6 . Page 11 Page 20 8 9 10 11 12 13 Economic News and Analysis The Macroeconomic Environment : Unraveling the Social Factors Shaping Zimbabwe's Present and Future Wings Clipped : How H7 Bird Flu Outbreak in SA is Threatening Zimbabwe's Poultry Industry and Beyond Zimbabwe’s Energy Triumph : A Short-Lived Victory? Boosting Tobacco Yields : The Implications of New Drought-Tolerant Tobacco Varieties on Zimbabwe's 300 Million kg Target Floating Solar Panels and Improved Capacity : Set the Stage for Business Growth and Environmental Sustainability Zimbabwe Insurance Crimes Bureau : What to Expect! Revitalizing Zimbabwe's Economy : A Proposal for a New Currency Pegged to Renminbi with Negative Interest Rates From Seeds to Struggles : The Story behind SeedCo’s Epic Profit Plunge Dairibord’s Crystal Ball : A Spellbinding or Mediocre, Lacklustre Projection Tanganda's Financial Growth : Is it Just a Steeped-Up Illusion? Macroeconomic Review : Here Are June 2023 Snippets ZSE ASI 171,911.82 VFEZ ASI 76.78 ZWL INTERBANK 6,299.3218 171,408.90 76.17 5,739.7961 168,491.91 76.34 5,769.1253 166,809.69 75.02 5,812.1353 162,840.11 75.37 5,395.9619 156,728.16 74.97 5,412.5484 -8.83% -2.36% 16.38% ZSE TOP 10 94,277.71 MEDIUM CAP INDEX 427,532.12 SMALL CAP INDEX 1,911,321.08 93,034.57 436,363.92 1,911,327.14 90,448.05 443,200.33 2,085,302.96 88,617.51 452,115.42 2,193,037.49 84,766.93 466,499.54 2,193,037.49 80,176.59 468,982.25 2,193,037.49 -14.96% 9.70% 14.74%

4 The AXiS LXXXIII Fri 07 Jul 2023 Currency market developments Swimming Naked T fraction of just above US$2 million was taken up. Generally, the average traded levels on the market have subsided by a significant margin. Before the current setup, instituted at the beginning of June, average weekly trade came in at about US$15 million. The question has been whether the subsid- ing flows represent declining demand or declining supply. To read this one, one had to check the exchange rate movement. A declining demand would be accompanied by an exchange rate recov- ery (firm Zimdollar), while a supply increase would be represented by Zimdollar strengthening. Zimbabwe Foreign Receipts Trend From the current developments the face value deduction is that the demand for forex has been easing thus resulting in the Zimdollar gain. There are a number of factors why this has been so, fore- most being the increased levels of dollarisation in the economy, which increases individual institutions generation of forex income and hence relying less on the official market. Further, the demand for forex has been declining with the decline in the parallel market premium. A higher parallel market premium incentives speculative demand for forex. Equally, the volatility associated with currency encourages speculative local currency borrowings which in turn drive demand for hard currency up. This scenario spontaneously result in a market disequilibrium as money supply growth paces ahead of production. It is a somewhat clear that there is forex in the coffers of government given the emerging dynamics. It is also evident that more liquidity is being siphoned through various instru- ments designed by RBZ to mop up the excess. What is not clear is the source of forex liquidity presently being exhibited by government in the market and how sustainable the flows or funds are in ensuring a stable equilibrium, going forward. The source of funds is important as it reflects on sustainability. Export surrender funds remain at government’s discretion but their liquidation has been unevenly matched as some Zimdollar pay- ments to exporters are now dragging. A mismatch between export surrender forex inject- ed into the system and corresponding Zimdollar payments to exporters who surrender their forex artificially reduces the supply of Zimdollar in the economy resulting in a firmer Zimdollar. This is one of the reasons why local currency liquidity has tightened. Trading data for gold tokens and digital gold tokens also shows that the later, introduced only 3 months ago, has since surpassed the former in terms of coins sold, which means a higher pace of liquidity siphoning, a condition which typically strengthen the local currency in the short term. What this measure together with the former imply is that short term stability can be reached but with a risk of accumulation over the not so distant late short term. These risks are also exacerbated by the delayed payments to contractors and the promised civil service salary increases. Already there is elec- tion spend going on and the true extend of the damage will show in the not so distant future. In Warren Buffett’s words, it is only when the tide is over that you know who was swimming naked. This rich investment metaphor reflects of short-term gains which have a much steeper mid to long term adverse payoff. It is easier to argue that there ought to be evidence for these manoeu- vres by government, but in this case, the govern- ment has never been right in the past and therefore it is the one that ought to make its case clearer to all economic agents. Zimbabwe Budget Deficit Trend (US$m) The government of Zimbabwe been exceptional in creating disguised stability over the past years. here the chart shows huge budget deficits emanating from excess expenditure funded through massive TBs issuances. These had an impact of catalysing the demise of the 1:1 as ZWL liquidity swelled. It is equally possible that the money being used to stabilise the exchange rate could be borrowed funds from undisclosed sources, as has been the case in the past. The RBZ has in the past resorted to seeking external loans to bridge funding gaps on the currency market. It is very strange and unbe- lievable that suddenly government confesses having sufficient liquidity after running the auction market on an accumulated backlog basis for 2 years. Government says it has built reserves, but this coming after having failed to use those reserves to cushion currency decline at the time the gap between the auction and parallel widened or even allowed for liberalisation, which tend to be the ultimate determinant of a sustained stability. While some form of liberalisation has been put in place, a similar phenomena to past periods, the fact is, the market has no trust in government’s narrative nor the extent to which government profess to having forex stock. While the ZWL is under check at the moment, this may immediately change once contractors’ payments are unleashed or exporters start to receive swift payments. The impact will also be the same regarding buyers of coins, who are likely to start offloading into hard currency or similar once a certain level of disguised stabilised is established. bility. Last week on the currency market, the Zim- dollar gained a whopping 17.2% against the USD adding on to the gains it earned a week earlier. Last week’s gain of 9.5% was the first in 2 years and the sustained and rising momentum signifies some underlying manoeuvres worth interrogating. Before we look in the price action and what it means on the short-term outlook of the currency market, let us look at how other indicators behaved in this week’s session. Exchange Rate Movements The total number of bids received came in at 11 from 8 in the prior week. Unlike last week where only a total of 4 out of 8 bids were accepted all 11 bids from the current week were accepted and allocated. On average, 14 bids have emerged per week since the beginning of June. The rise in bids levels for the wholesale market corresponded with the increase in total allocation, which came in at US$4.3 million. The total allocation was 47% higher than the prior week. While in the past it was not easy to ascertain whether the dip or growth in funds allocated represented a supply or demand dearth, in the current instance, publication of RBZ’s overall forex liquidity ready for alloca- tion shows the actual supply side position. Value of forex traded Trend In the current week, RBZ had set US$20 million on offer for allocation and less than 25% was taken up. In the prior week, the amount on offer was recorded at US$30 million and only a tiny he currency market continues to be 1 one mostly closely watched development in the economy as Zimbabwe grapples with insta-

make profits, it appears the calculated profits frominvesting in Zimbabwe drive prospective investors to seek out licenses in their numbers. However, it then proves that other factors tend to weigh in on the profit-making motive, thereby deterring investors and only seeing an almost 10% turnout in actual investment against pledged invest- ments. These factors will be delved into below. However, it is equally important to understand what comprises an investment or capital thereof. Capital injected as FDI can either be equity (cash) or capital assets (equipment and relative asset class- es). Since Zimbabwe has near zero manufacturing of heavy machinery, the equipment brought in by foreign investors is also regarded as capital and the valuation of these can be monetized and recorded as the FDI figure. In perspective, an investor may bring capital assets worth US$100 million according to valuations by the government board responsible, and this will be recorded as an FDI of US$100 million. Hence, this does not automatically result in foreign currency injected into the economy or in government reserves thereof. Meanwhile, since around 2017, there has been a gradual increase in FDI inflows to Zimbabwe. The government has implemented several policy reforms aimed at attracting foreign investors, such as relaxing investment regulations, improving trans- parency, and promoting investor-friendly business environments. In sectors like mining, agriculture, manufacturing, and tourism, there has been notable interest from foreign investors. Additionally, efforts to improve infrastructure and develop special economic zones have also contributed to the growth of FDI. The period from 2011 to 2017 registered the peak period of FDIs in Zimbabwe. This was during the multi-currency regime when the economy was stable. From 2019 the levels started dwindling and getting back to early 2000s levels when the coun- try was still using the local currency. This reflects the payoff of having a fragile local currency as opposed to a stable hard currency. According to data from Macrotrends, the Demo- cratic Republic of Congo ranks in the top 5 Afri- can countries with the highest FDI levels, averag- ing almost US$2 billion a year. This is despite political instability and civil unrest in the country and goes to show the effect of economic stability over any other macroeconomic environment. Nevertheless, one of the primary challenges facing Zimbabwe is its political and economic stability. In recent years, the country has faced socio-political unrest and an unfavourable investment climate. This has deterred foreign investors from exploring potential opportunities within the country. However, Zimbabwe has taken steps towards addressing these challenges. The government has implemented investor-friendly policies and actively seeks to promote FDI through various initiatives. One such initiative is the aforementioned ZIDA which was established to facilitate and promote investments in the country. ZIDA provides a one-stop shop for investors, streamlining the invest- ment process and ensuring efficient service deliv- ery. It also offers incentives to attract foreign inves- tors, such as tax breaks, land leases, and duty-free imports for approved projects. Through ZIDA, the government also ensured the implementation of Special Economic Zones (SEZs) in Zimbabwe. These designated areas offer addi- tional incentives to attract FDI, such as tax holi- days, relaxed labour laws, and streamlined adminis- trative processes. SEZs focus on specific sectors, including mining, agriculture, tourism, and manu- facturing, creating targeted opportunities for foreign investors. Delving into FDIs A Zimbabwe has also made efforts to improve its infrastructure, another crucial factor in attracting FDI. The government has prioritized investments in road network and other transportation initiatives which include the internationalization of the Harare airport to enhance connectivity and reduce the cost of doing business. These infrastructure improve- ments are essential for attracting foreign investors who require efficient logistics and reliable connec- tivity for their operations. A key sector of interest for foreign investors in Zimbabwe is mining. The country has abundant mineral resources, making it an attractive destina- tion for mining companies. With the implementa- tion of investor-friendly policies and regulations, Zimbabwe aims to attract more FDI in the mining sector. This includes providing secure land tenure, streamlining permitting processes, reducing arbi- trage opportunities and corruption avenues, and promoting sustainable mining practices. Additionally, Zimbabwe's agricultural sector offers potential opportunities for foreign investors. The country has fertile land and a favourable climate for agriculture. However, there is a need for mod- ernization and investment in irrigation systems, mechanization, and value-added processing. Foreign direct investment in agriculture can contribute to the development of these, and benefit from increased productivity, job creation, and food secu- rity. Tourism is another sector with immense potential for FDI in Zimbabwe. The country boasts stunning natural beauty, including renowned national parks such as Victoria Falls, Hwange National Park, and Mana Pools. By investing in infrastructure, hospi- tality services, and tourism promotion, Zimbabwe can attract more international visitors and generate revenue from tourism-related activities. While ZIDA is tasked with attracting foreign inves- tors through initiatives such as targeted incentives, the agency needs to address concerning issues like strengthening governance and anti-corruption mea- sures, market access and trade facilitation as well as encourage public-private partnerships (PPPs). Implementing transparent and accountable gover- nance practices, as well as robust anti-corruption measures, can instil confidence among investors. This will help attract reputable and long-term investors who prioritize ethical business practices. Facilitating international trade and reducing trade barriers can attract foreign investors looking to tap into regional and global markets. Also, signing bilateral or multilateral trade agreements and imple- menting efficient customs procedures can help enhance market access. Lastly, collaborating with private sector entities through PPPs can accelerate infrastructure develop- ment and improve service delivery. By leveraging private sector expertise and resources, Zimbabwe can enhance its investment potential. While ZIDA is already engaged in this exercise, the process has proven to be tedious and thus deters prospective independent investors from applying while leaving room to only the connected who will be confident in the outcome. In conclusion, foreign direct investment can play a pivotal role in unlocking Zimbabwe's economic potential. The country has taken significant steps towards creating an investor-friendly environment through policy reforms, incentives, and infrastruc- ture development. By capitalizing on its rich natural resources, improving its investment climate, and implementing targeted initiatives, Zimbabwe can attract and retain FDI, driving sustainable economic growth and prosperity for its people. (ZIDA), the Chief Executive Officer (CEO) Mr Tafadzwa Chinamo alluded that the agency was targeting a total Foreign Direct Investment (FDI) of US$1.5 billion in 2023. The CEO went on to report that in the first half of 2023 (HY1), Zimba- bwe, through ZIDA, attracted a circa US$1.8 billion FDI in licensing. Data from the body and other state entities gath- ered over the last 15 years shows very depressed outturns compared to the projected 2023 outturn which the ZIDA is now anticipating. Based on these past figures it is highly unlikely for FDI flows to come in at even a third of the targeted outturn. On the outset we expect a turn in FDI once mining projects aimed mainly at the lithium sub sector start to trickle in, which we envisage will most likely be from 2024 onwards. Further the occurrence of elections will likely push most seri- ous investors to the terraces as they try to appreci- ate the environment. Foreign Direct Investment Trend Foreign direct investment refers to direct invest- ment flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determin- ing the existence of a direct investment relation- ship. In his presentation, Mr Chinamo said the agency recorded about US$0.7 billion in licensed FDIs in the first quarter of 2023, followed by US$1.075 billion in the second quarter. However, the trend of net FDIs in Zimbabwe over the years shows a different picture to the claims by ZIDA and thus leaves a shred of mystery over the figures. Since 1970, Zimbabwe recorded its highest net FDI in 2018 at US$0.72 billion. In 2021, Zimbabwe recorded a net FDI of US$166 million. Thus, a total FDI of US$1.8 billion in only 6 months sounds far-fetched. However, it is imperative to understand the US$1.8 billion refers to licenses issued in the first half of the year. About 36% of licenses in the first quarter were for lithium (prospecting, mining, processing), with China remaining the biggest investor in the sector. According to gathered statistics, the actual total investment, comprising both FDI and local invest- ments, came in at US$154m in the first quarter, as opposed to the licensed US$700 million. When broken down, the FDI component will align with the trend of FDIs over the past few years. The deviation between licensed investments and actual investments on the ground is quite alarming. Since any business’ first and main objective is to t a conference held at The Venue, Avondale, Harare, on the 5th of July 2023 by Zimba- bwe Investments Development Agency 5 The AXiS LXXXIII Fri 07 Jul 2023 HY Inflows Surpass ZIDA’s Target?

6 The AXiS LXXXIII Fri 07 Jul 2023 A Game-Changing Partnership? Elon Musk's Interest in Zimbabwe's Lithium Mining Industry refineries to process and distribute its lithium resources. However, the government has recently shifted its focus to the downstream sector to drive infrastructure development, employment creation, and investments within the country. In line with this strategy, Zimbabwe has imple- mented an export ban on raw lithium, aiming to boost the domestic value chain and promote value addition in the minerals sector. This move positions Zimbabwe to become both a global producer and a regional processing hub. "No lithium-bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under the written permit of the minister." - Mining Minister Winston Chitando The export ban aims to encourage the development of lithium batteries within the country, fostering local industry growth and maximizing the econom- ic benefits derived from the lithium value chain. With a rich history as a lithium producer spanning six decades, Zimbabwe has established a market-fo- cused business environment and developed a skilled workforce in line with global standards. This experience, coupled with the country's expanding domestic market, reduces investment risk and positions Zimbabwe as an attractive destination for mining companies. The mining sector plays a vital role in Zimbabwe's economy, accounting for a 12% share of the coun- try's GDP. The government has set ambitious targets to turn the mining sector into a $12 billion market by 2023. This growth is expected to be driven by investments and international participa- tion in the lithium sector, supported by recently introduced incentives. By leveraging its lithium reserves, Zimbabwe aims to stimulate economic growth, create employment opportunities, and posi- tion itself as a global lithium hub. Benefits for Zimbabwe Zimbabwe stands to gain numerous benefits from a partnership with Elon Musk and Tesla. Firstly, the collaboration could bolster the country's econo- my, which has been grappling with financial chal- lenges. The influx of investment and technology could stimulate job creation, enhance infrastructure development, and attract further foreign direct investment. Secondly, the partnership would provide an opportunity for Zimbabwe to tap into the global lithium value chain. By moving beyond the export of raw lithium and investing in downstream processing capabilities, Zimbabwe could capture more value from its lithi- um resources. This shift would not only generate higher revenues but also create opportunities for local businesses and entrepreneurs. Furthermore, the partnership could enhance Zimbabwe's reputation as a favorable investment destination, attracting other international companies to explore opportuni- ties in the country. Navigating US Sanctions and ZIDERA One of the significant challenges that Elon Musk and Tesla would face in partnering with Zimbabwe is the existing US sanctions on the country. The Zimbabwe Democracy and Economic Recovery Act (ZIDERA) imposes restrictions on certain eco- nomic activities between the US and Zimbabwe. However, it is crucial to note that the scope and enforcement of these sanctions can vary over time. Engaging in a partnership with Zimbabwe would require careful navigation of these sanctions and adherence to all applicable laws and regulations. It is essential for both parties to conduct thorough due diligence and consult legal experts to ensure compliance and mitigate any potential risks. The Export Ban on Raw Lithium: Implications and Opportunities Zimbabwe's export ban on raw lithium presents both challenges and opportunities. While the ban limits immediate revenue generation from exporting raw lithium, it aims to encourage local processing and value addition. By developing downstream lithium processing capabilities, Zimbabwe can posi- tion itself as a key player in the lithium value chain. This strategic move would enable the country to capture a more significant share of the value creat- ed through lithium battery manufacturing and other downstream applications. It would also create opportunities for local job creation, technology transfer, and the development of a robust lithium industry ecosystem. The DEBSWANA Partnership: A Model for Suc- cess? Recent news of the DEBSWANA partnership, where Botswana and De Beers jointly operate diamond mines, serves as an intriguing model for Zimbabwe to consider. The DEBSWANA model demonstrates how a collaboration between a foreign investor and a resource-rich country can yield substantial benefits for both parties. By lever- aging this partnership model, Zimbabwe could establish a mutually beneficial relationship with Elon Musk and Tesla, promoting sustainable mining practices, technology transfer, and long-term economic growth. The DEBSWANA partnership serves as a testament to the potential success of strategic collaborations in the natural resources sector. Conclusion While Zimbabwe's lithium potential is promising, the country still faces challenges in fully realizing its goals. The government's export ban on raw lithium is a crucial step in promoting value addi- tion and local industry growth. However, it will require robust infrastructure development, technolo- gy transfer, and investment in processing facilities to establish a comprehensive lithium value chain within the country. Collaboration with international partners and the adoption of sustainable mining practices will also be key to ensuring long-term success. Elon Musk's reported interest in Zimbabwe's lithi- um mining industry has sparked excitement and raised hopes for a potential game-changing partner- ship. While the legitimacy of the news is yet to be officially confirmed, the possibilities are intrigu- ing. A partnership between Musk and Zimbabwe could bring significant benefits to both parties, including economic growth, technological advance- ments, and access to global markets. However, navigating US sanctions and the export ban on raw lithium will require careful consider- ation and compliance. By leveraging successful partnership models such as DEBSWANA, Zimba- bwe can lay the groundwork for a sustainable and mutually beneficial collaboration. Ultimately, the potential partnership between Elon Musk and Zimbabwe holds promise for transform- ing the country's lithium sector and contributing to the global transition to sustainable energy. and CEO of Tesla. Musk's interest in Zimbabwe's lithium mining industry has apparently sparked discussions between him and President Emmerson Mnangagwa, raising hopes for a potential partner- ship that could revolutionize the country's lithium sector. As the global demand for clean energy solutions continues to soar, lithium has emerged as a critical component in the production of rechargeable batter- ies powering electric vehicles and smart devices. Zimbabwe is poised to play a pivotal role in the lithium value chain and drive its own economic revival. If Zimbabwe fully exploits its lithium resources, the country could potentially meet up to 20% of the global lithium demand. The News: Is it Legitimate? The news of Elon Musk's interest in Zimbabwe's lithium mining industry broke through various sources, including Zanu PF spokesperson Christo- pher Mutsvangwa and multiple news outlets this week. While the authenticity of the news has not been officially confirmed by Musk or Tesla, the discussions between Musk and President Mnangag- wa, as revealed by Mutsvangwa, provide some credibility to the claims. However, it is essential to exercise caution and await official statements from Musk or Tesla before drawing definitive conclu- sions. With that in mind, let us explore the feasi- bility of this potential partnership. Feasibility of a Partnership A partnership between Elon Musk and Zimbabwe could have transformative effects on the country's lithium mining industry. Musk's expertise in clean energy and electric vehicles, showcased through Tesla's success, aligns closely with Zimbabwe's lithium ambitions. The country aims to leverage its lithium reserves to contribute significantly to the global transition to sustainable energy. Moreover, Zimbabwe's lithium reserves are consid- ered among the largest globally, making it an attractive destination for investors in the lithium value chain. If the partnership materializes, Zimba- bwe could benefit from Musk's technological expertise, financial resources, and access to global markets. In return, Musk could secure a stable supply of lithium for Tesla's electric vehicle production, further solidifying his company's posi- tion as a leader in sustainable transportation. However, China, the world's largest importer of lithium, already has a substantial foothold and significant interests in Zimbabwe's lithium market. Chinese companies have made extensive invest- ments in the country, recognizing its potential as a major lithium producer. Already, significant invest- ments have been made in the country's lithium sector, including acquisitions by Zhejiang Huayou, Premier African Minerals, Sinomine, and China Natural Resources. Chinese EV companies and Tesla can facilitate technology transfer, infrastruc- ture development, and market access, further strengthening Zimbabwe's position in the global lithium value chain. Unleashing Zimbabwe's Lithium Potential Zimbabwe's mineral resources, particularly its lithi- um reserves, remain largely untapped. The Bikita Mine, located in the southwestern province of Mas- vingo, holds approximately 11 million tons of lithi- um resources, making it Africa's largest confirmed lithium deposit. However, new exploration cam- paigns and the development of projects such as the Arcadia Mine are expected to unlock even greater levels of reserves, positioning Zimbabwe as a global producer. Traditionally, Zimbabwe has relied on international Zimbabwe, known for its vast lithium reserves, has recently attracted the attention of Elon Musk, the renowned US billionaire

on attracting new investors and using their invest- ments to provide returns to earlier investors. Charles Ponzi, an Italian-born swindler, became notorious in the early 20th century for running such a scheme, promising high returns on invest- ments in international postal reply coupons. The Promise of Unrealistic Returns E-Creator mirrored the characteristics of a classic Ponzi scheme, offering investors unrealistic returns on their deposits. The company claimed that indi- viduals could earn up to US$1,000 per month by simply posting 10 reviews per day on various e-commerce sites. This promise of quick and sub- stantial wealth was a key factor in luring unsus- pecting victims into the scheme. However, as with all Ponzi schemes, these returns were unsustainable and relied solely on the continuous recruitment of new members. Unveiling the Aftermath In the wake of the E-Creator scam, Zimbabwe finds itself in the grip of a collective heartache, as hopes for a prosperous tomorrow have been dashed. The once-promising dreams of families have been replaced by the harsh reality of financial struggle, as they grapple with the aftermath of shattered trust. The scars left by E-Creator's deceit serve as a painful reminder of the fragility of eco- nomic stability in a nation grappling with the burdens of poverty, hunger, and joblessness. It is of utmost importance that the root causes of these scams are confronted and rectified, to safeguard against the recurrence of such devastating incidents. Addressing Financial Literacy and Economic Stability The lack of financial literacy, coupled with the desperate need for economic stability, creates fertile ground for scams and fraud. It is crucial for the government to take swift action in protecting its citizens and educating them about the dangers that lurk in the online world. Initiatives aimed at promoting financial literacy, educating individuals about investment scams, and fostering economic stability are paramount. By empowering individuals with knowledge and skills, we can mitigate the devastating impact of scams like E-Creator and pave the way for a brighter, more secure future. Conclusion The E-Creator scam serves as a somber reminder of the harsh reality we face in the digital age. It highlights the importance of critical thinking, due diligence, and skepticism when confronted with offers that seem too good to be true. Zimbabwe- ans, like many others around the world, must remain vigilant against the allure of quick riches and instead focus on sustainable, legitimate avenues for financial growth. Let us join hands, raise our voices, and fight for a Zimbabwe that is resilient and impervious to the snares of deceit. Only through education, empowerment, and a commit- ment to justice can we heal the wounds inflicted upon our people and build a future grounded in trust and true empowerment. designed to exploit the desperation and vulnerabili- ty of innocent individuals seeking a way out of economic despair. The company demanded an upfront registration fee ranging from US$15 to US$300, enticing users with the prospect of earn- ing 4% of their deposit every single day. The allure of unprecedented returns led many Zimbabweans to believe that their lives could be forever trans- formed. The Red Flags Ignored There were glaring red flags from the very begin- ning that should have alerted individuals to the fraudulent nature of E-Creator. The company required upfront registration fees without providing any legitimate proof or establishing a physical pres- ence through a head office or official website. Instead, it relied heavily on WhatsApp groups, Facebook, and YouTube videos to propagate its deceptive scheme. Furthermore, E-Creator failed to provide any invoices, receipts, or contracts to its members, leaving them without any legal recourse. The absence of a customer service or support system further compounded doubts about the com- pany's legitimacy. Despite these warning signs, many were enticed by the promise of quick and substantial wealth. The Devastating Fallout As news of E-Creator's audacious betrayal spread, more and more Zimbabweans flocked to the site, oblivious to the impending disaster. They deposited their hard-earned cash, believing that their dreams of financial security were within reach. Unfortu- nately, their hopes would soon crumble before their eyes. E-Creator vanished into the depths of the abyss, taking with it the life savings of countless Zimbabweans. Families who had invested every- thing, mothers and fathers who had placed their trust in the false promise of prosperity, were left devastated and traumatized. The Anatomy of a Ponzi Scheme To fully comprehend the magnitude of the E-Cre- ator scam, it is essential to understand the mechan- ics of a Ponzi scheme. A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors, rather than from any actual profit earned. The scheme relies 7 The AXiS LXXXIII Fri 07 Jul 2023 Unraveling the Elusive Scam that lingers in the heart of Zimbabwean hope. It is the haunting saga of the E-Creator scam, an insidi W - ous web of deception that has recently unfolded, leaving in its wake a trail of shattered dreams and heart-wrenching financial ruin. In this article, we will delve into the intricate details of the E-Creator scam, shedding light on its pyramid and Ponzi scheme nature, the red flags that should have been heeded, and the aftermath that plunged Zimbabwe- ans into a realm of profound financial hardship and irreparable trust. The E-Creator scam unfolded like a dark sympho- ny, orchestrating a web of deceit that ensnared countless individuals in its treacherous grasp. With mesmerizing precision and cunning, the master- minds behind this insidious scheme exploited the vulnerabilities of unsuspecting victims, leaving them reeling in the wake of their financial ruin. At its core, the E-Creator scam relied on the manipulation of human hope, a delicate ember that burns bright in the hearts of the Zimbabwean people. Promising untold riches and a path to pros- perity, the perpetrators of this heinous plot lured in droves of eager investors, their eyes gleaming with dreams of a better tomorrow. Through a carefully constructed facade of legitimacy, the scamsters presented an alluring narrative of guaranteed returns and unbeatable investment opportunities. They wove a tale of technological innovation and cutting-edge ventures, captivating their prey with tales of untapped potential and unimaginable wealth. As the web of deception grew, so did the fortunes of the scamsters. Millions upon millions poured into their coffers, filling their pockets with ill-got- ten gains. They reveled in their newfound wealth, basking in the spoils of their wicked enterprise. But behind the scenes, the true impact of their nefarious actions was far from glamorous. The lives shattered, dreams dashed, and futures obliter- ated were the human cost of this grand deception. The E-Creator scam became a symbol of greed and exploitation, a stain on the collective spirit of Zim- babwe. It revealed the depths to which some would sink in their pursuit of personal gain, disregarding the devastating consequences inflicted upon their fellow countrymen. The E-Creator scam may have made millions, but its true cost cannot be measured in monetary terms alone. It robbed individuals of their trust, shattered their dreams, and left an indel- ible mark on the fabric of Zimbabwean society. It serves as a stark reminder of the urgent need to address the underlying issues that allow such scams to thrive and to rebuild a future where hope can flourish without fear of exploitation. E-Creator: The Illusion of Prosperity E-Creator, a seemingly harmless entity, promised individuals the opportunity to earn substantial returns by simply sharing positive reviews on vari- ous e-commerce sites worldwide. However, beneath its enticing facade lay a pyramid and Ponzi scheme ithin the vast expanse of the digital realm, where aspirations take form and illusions are shattered, there exists a harrowing tale E-Creator

8 The AXiS LXXXIII Fri 07 Jul 2023 & Analysis Unraveling the Social Factors Shaping Zimbabwe's Present and Future Gender Dynamics: Examining genderdynamics is essential for under- standing social inequalities in Zimbabwean society. Despite efforts to empower women from interna- tional organisations, gender disparities continue to impede Zimbabwe's progress. Women face limited access to education, employment opportunities, and decision-making positions. Empowering women, promoting gender equality, and ensuring equal representation in all spheres of society is crucial for sustainable development and social progress. Income inequality is a pressing social issue that affects economic growth and social cohesion. Zim- babwe exhibits significant disparities in income distribution, land ownership, and access to resourc- es. Healthcare and Social Welfare: Access to healthcare services and social welfare programs significantly impacts the well-being of Zimbabweans. A robust healthcare system is crucial for maintaining a productive workforce and reduc- ing healthcare-related costs. In Zimbabwe, inade- quate healthcare infrastructure, high HIV/AIDS prevalence rates, limited access to essential medi- cines, and brain drain among healthcare profession- als pose significant challenges to both public health and the economy. These challenges adversely affect public health outcomes and overall well-being. Strengthening healthcare infrastructure, enhancing disease surveillance, and investing in preventative measures can improve health conditions, leading to a more productive and resilient society. Youth Engagement and Political Stability: The youth population in Zimbabwe represents a significant demographic group with immense poten- tial for driving social change. However, the leader- ship structures in Zimbabwe tend to only prioritize the elderly, which is affected by the country’s lead- ership culture dating back to the pre-colonial era. The country ought to adapt to the everchanging world dynamics and have more of the youth in leadership positions for an enhanced response to changes in the world. In line with this, political instability has been a dominant feature in Zimba- bwe's history, affecting its social fabric. The coun- try has faced internal conflicts, contentious elec- tions, and leadership transitions that have hindered social progress. A stable political environment is necessary for sustainable development, fostering trust, and attracting investments. Addressing gover- nance issues and promoting democratic principles can help shape Zimbabwe's future positively. Politi- cal stability is vital for attracting foreign direct investment (FDI) and fostering domestic entrepre- neurship. Economic Inequality and Poverty Zimbabwe suffers from high levels of economic inequality, leading to widespread poverty among its citizens. The concentration of wealth in the hands of a few has perpetuated social disparities, limiting access to basic services, education, and healthcare. To shape a brighter future for Zimbabwe, address- ing income inequality and implementing poverty alleviation programs are crucial. Climate Change and Environmental Sustainabili- ty: Zimbabwe is vulnerable to the adverse effects of climate change, including droughts, floods, and food insecurity. Environmental degradation, defor- estation, and overexploitation of natural resources exacerbate these challenges. As an effect of climate change, the country faced a devastating cyclone, named Cyclone Idai, which claimed the lives of many and sizable infrastructure. Adopting sustain- able environmental practices, promoting renewable energy sources, and implementing climate change. In line with this, Zimbabwe’s industrial electricity consumers and exporters aim to raise $250 million to build the first phase of floating solar panels on Lake Kariba. Informal economy: The informal sector plays a crucial role in Zimba- bwe's economy, providing employment opportuni- ties for a significant portion of the population. The informal sector dominates 88% of the overall econ- omy in the country and thus contributes significant- ly to Gross Domestic Product. If capacitated over time, a handful of the informal economic players may get to expand and grow into the formal sector which will contribute to overall economic growth. Therefore, the government ought to prioritize fostering business-friendly measures that will enable the growth of the informal economy as opposed to crushing it in the name of necessity. Conclusion Zimbabwe's social landscape is a complex tapestry woven from historical events, cultural diversity, education systems, gender dynamics, and healthcare challenges. By understanding these factors, we can identify areas where interventions are needed to foster positive change. Addressing issues such as historical injustices, gender inequality, educational disparities, and healthcare deficiencies will be crucial for Zimbabwe's sustainable development. By empowering marginalized communities and promoting inclusivity at all levels of society, Zim- babwe can pave the way for a brighter future where every citizen can thrive. Zimbabwe's econo- my is intricately intertwined with various social factors that have both direct and indirect impacts on its performance. By understanding these factors comprehensively, policymakers can develop targeted strategies to address challenges and promote sustainable economic growth. This article has shed light on key areas such as education, healthcare, corruption, political stability, inequality, and the informal economy that require atten- tion for Zimbabwe to over- come its economic hurdles and build a prosperous future for its citizens. have shaped and influenced Zimbabwe's status quo and it is therefore imperative to assess the histori- cal events, cultural diversity, education, gender dynamics, and healthcare among other factors. By understanding these factors, we can gain insights into the challenges faced by Zimbabwean society and identify potential avenues for progress. While external factors such as sanctions and global eco- nomic fluctuations have played a role in shaping its economy, internal social factors have also exert- ed a profound influence on Zimbabwe. Historical Context To comprehend Zimbabwe's present social land- scape, it is crucial to examine its historical context. The colonial era under British rule left an indelible mark on the country's social structure. The dispos- session of land from indigenous communities and the subsequent struggle for independence shaped societal divisions that persist today. Additionally, the legacy of colonization impacted race relations and ethnic tensions within Zimbabwean society. Zimbabwe is home to various ethnic groups with distinct languages, traditions, and belief systems. However, social divisions based on ethnicity, tribal- ism, and regionalism persist, undermining unity and inclusive development. This is shown by the persistent clashes between the Ndebele and the Zezuru groups, particularly on social media plat- forms. Promoting social cohesion, respecting cultur- al diversity, and fostering national identity can con- tribute to social harmony and shared prosperity. The cultural diversity in the country has influenced social dynamics in areas such as religious practices, and traditional governance structures which have been a source of societal divisions. The efforts from most quarters to promote cultural preservation have seen a clash with the efforts to foster national unity as the world gradually moves towards liberal views as opposed to conservative ones. This has created a gap between the millennials and the gen z in terms of preferences and perception of life, which thus becomes an area of concern to market- ers and business developers. Education Another factor worth delving in to understand the social fabric of Zimbabwe is education. Education plays a pivotal role in shaping a nation's future by empowering individuals and fostering socioeconom- ic development. Although more females than males complete primary school, far too many girls drop out by Form 4. This is mostly due to poverty, adolescent pregnan- cy, early marriage, school-related GBV, parents prioritising boys' education over girls' education, and a lack of gender-sensi- tive infrastructure in schools. Attrition, a lack of teachers and competence, and the risk of violence and/or emergencies all threaten learning quality and continuity. Zimbabwe, a landlocked country in southern Africa, has a rich cultural heritage and a complex social fabric. These social factors Macroeconomic Environment

importer of this product. The outbreak could result in disruptions to the supply of soybean meal, either through restrictions on trade or the closure of soy- bean meal processing plants due to the outbreak. This could result in shortages and increased prices for soybean meal, which could affect the produc- tion of chicken feed and poultry. Thirdly, the outbreak could affect the supply of fishmeal, another critical ingredient in chicken feed. Zimbabwe also imports fishmeal from other coun- tries, and any disruption to its supply could lead to shortages and increased prices. This could affect the production of chicken feed and poultry, as fish- meal is an essential source of protein in chicken feed. In addition to the impact on chicken feed, the H7 bird flu outbreak could also affect the supply of other raw materials needed for poultry production in Zimbabwe. For instance, poultry farmers require a range of equipment, including feeders, waterers, and heating systems, to maintain the health and well-being of their birds. These inputs are often imported from other countries, and any disruption to their supply could affect the production of poul- try. Moreover, the outbreak could affect the supply of vaccines and medicines used to treat and prevent poultry diseases in Zimbabwe. Poultry farmers rely on vaccines and medicines to maintain the health of their birds and prevent the spread of diseases. The outbreak could result in shortages of these inputs, which could affect the production and health of poultry. The H7 bird flu outbreak in South Africa could have significant implications for the supply of chicken feed and other raw materials needed for poultry production in Zimbabwe. Stakeholders in the poultry industry in Zimbabwe need to take proactive measures to manage the impact of the outbreak on the supply of inputs and prevent further disruptions to the industry's value chain. Failure to do so could result in significant economic losses and further exacerbate the chal- lenges faced by the industry. To contain the outbreak of H7 bird flu in South Africa and Zimbabwe, several measures need to be taken. One of the primary measures is to imple- ment quarantine measures, which involve restricting the movement of poultry, people, and equipment in and out of the affected areas. This is critical to preventing the spread of the virus and minimizing its impact on the poultry industry. Additionally, infected birds should be culled to prevent the spread of the virus to other birds. Enhanced biosecurity measures are also important to prevent the introduction and spread of the virus, as well as surveillance and monitoring to detect any new cases of the virus. Public awareness campaigns are necessary to edu- cate farmers and the public on the risks of the virus and the measures that can be taken to prevent its spread. Finally, international cooperation is essential in containing the outbreak of the H7 bird flu, and South Africa and Zimbabwe should work closely with international organizations to share information, resources, and expertise. If these measures are not implemented, the virus could spread, resulting in significant economic losses and trade disruptions. Therefore, South Africa and Zimbabwe need to take proactive mea- sures to contain the outbreak and prevent its spread. Working together with international organi- zations is crucial to contain the outbreak and mini- mize its impact on the poultry industry. 9 The AXiS LXXXIII Fri 07 Jul 2023 Wings Clipped How H7 Bird Flu Outbreak in SA is Threatening Zim's Poultry Industry and Beyond The economic impact of the H7 bird flu outbreak could also have significant implications for Zimba- bwe. Agriculture is a critical sector of Zimbabwe's economy, accounting for 12% of its GDP in 2022. The sector has seen a decline in growth, with agri- culture at constant prices reducing from 17.5% in 2021 to 6.2% in 2022 meaning that a failure to curtail this outbreak in South Africa could have a potentially harmful effect on the Zimbabwean economy. Livestock contributes 14.6% of all agri- culture, indicating that it is a significant component of the sector. The outbreak of bird flu in South Africa could affect Zimbabwe's agricultural value chain, particu- larly the supply of poultry products. Zimbabwe imports poultry products from South Africa, and any disruption to the supply chain could lead to shortages and increased prices. This would have significant implications for Zimbabwe's economy, particularly for its food security and inflation levels. Chicken feed is a crucial input for the poultry industry in Zimbabwe, and any disruption to its supply could have significant implications for the industry. Like in South Africa, the production of chicken feed in Zimbabwe requires a range of raw materials, including maize, soybean meal, sunflow- er seed meal, and fishmeal. Many of these raw materials are imported into Zimbabwe, and any disruption to their supply could lead to shortages and increased prices. The outbreak of H7 bird flu in South Africa could affect the supply of chicken feed in Zimbabwe in several ways. Firstly, the outbreak could result in the culling of large numbers of birds, leading to reduced demand for chicken feed. This could result in an oversupply of raw materials used to produce feed, which could lead to lower prices for these inputs. However, the reduction in demand for chicken feed could also lead to a reduction in the production of feed, which could result in shortages and increased prices. Secondly, the outbreak could affect the supply of raw materials used to produce chicken feed. For instance, soybean meal is a critical ingredient in chicken feed, and Zimbabwe is a significant chains, as well as its neighbouring countries, partic- ularly Zimbabwe. The H7 strain is different from the H5N1 strain, which has caused significant damage to the poultry industry around the world. Nonetheless, the H7 bird flu outbreak in South Africa could still have significant economic impli- cations for the country and the region. H7 bird flu is a highly pathogenic avian influenza virus that primarily affects birds, including domestic poultry such as chickens and turkeys, as well as wild birds. The H7 subtype has several different strains, including H7N3, H7N7, and H7N9, which have caused outbreaks in different parts of the world. The H7 bird flu virus can cause severe respiratory illness in infected birds, leading to high mortality rates. The virus can also be transmitted to humans, although this is rare. When humans are infected, they may experience mild to severe respiratory illness, and in some cases, the virus can be fatal. In poultry, H7 bird flu can result in significant eco- nomic losses as infected birds may need to be culled to prevent the spread of the virus. The outbreaks can also lead to trade restrictions on poultry products, which can further exacerbate the economic impact on the industry. The South Afri- can poultry industry is a critical component of the country's agricultural value chain, contributing significantly to the country's GDP. According to the World Organisation for Animal Health, the two outbreaks of H7 bird flu in Mpum- alanga resulted in the death of 9,500 farm poultry. This loss could have a significant impact on the poultry industry, which produced over 179 million living chickens after 2020 annually and generated an income of 152 billion South African rands(US$ 8.1 billion). Moreover, the outbreak could also affect the value chain of other agricultural products, as poultry plays a crucial role in fertilizing crops and produc- ing animal feed. This could result in reduced yields and increased input costs for other agricultural products, further exacerbating the economic impact of the outbreak. The recent outbreaks of H7 bird flu in poultry in South Africa have raised concerns about the potential impact on the country's econo-

thing of the past is an overstatement. The worst thing is that at a time when the world is moving away from coal-fired plants due to environmental threats, Zimbabwe is trying to resuscitate Hwange Unit 5 for another year to work on the old Units. However, it should be noted that the costs of renewable energy and natural gas have declined dramatically in recent years. Solar and wind are now often cheaper than coal, even without subsi- dies. This makes coal less competitive economical- ly. Additionally, many investors and investment funds are divesting from coal due to environmental and social governance (ESG) concerns. If coal investments continue, Zimbabwe may need to con- tinue to rely on funding from domestic public sector banks and investors from China, as the Asian country still supports coal projects. However, coal financing is becoming more difficult globally. Therefore, Zimbabwe needs to have a plan to shift to renewable energy and natural gas. South Africa, Namibia, and Mozambique are currently looking into alternatives such as solar, wind, hydro, and natural gas to meet energy needs while reducing coal dependence. Many renewables are now cost-competitive with coal. To transition away from coal, Zimbabwe needs to manage the process, including retraining workers, economic diversification, and phasing out coal plants over time while ramping up alternatives. A gradual transition can mitigate economic disruption. This transition is important because Zimbabwe faces challenges with its reliance on hydropower from the Kariba dam, which is vulnerable to droughts and climate change impacts. Zimbabwe should diversify its energy mix by embracing renewable energy sources like solar, wind, and geo- thermal, as well as natural gas and energy efficien- cy gains. The country also needs to strengthen its energy security by exploring regional connections and storage solutions to reduce reliance on a single source of power. In conclusion, while ZESA's announcement of the end of load shedding is a positive development for Zimbabwe's economy, there is still a need to diver- sify the country's energy mix and shift away from coal to meet the projected increase in electricity consumption. A gradual transition to renewable energy and natural gas can help mitigate economic disruption and ensure a sustainable energy future for Zimbabwe. power plants are now generating enough electricity to meet the needs of both domestic and industrial consumers without relying on imports. However, the announcement has been met with mixed feel- ings, with many believing that the state-owned power utility's move is a ploy to try and allure voters, given that elections are just around the corner. Equity Axis has been closely monitoring the elec- tricity generation situation, and in Axis 66, it was noted that when Hwange Unit 8 starts synchroniz- ing with the grid and Kariba continues to produce at least 800MW a day, then we might have a situa- tion where the imports we get from the Southern Africa Pool will be enough to surpass the peak demand, which ranges from around 1800MW to 2200MW a day. However, two factors are likely to downplay ZESA's current achievement, including the fact that Kariba is not a reliable source due to climate change and the pending ZESA connection applications that are waiting to be added to the national grid. ZESA has reported that the expanded power gener- ation capacity has resulted in a significant reduc- tion in load shedding across the country. The busi- ness sector has welcomed the news, as it can now plan operational schedules and ensure uninterrupted industrial processes. The improved electricity supply is expected to contribute to smoother indus- try outcomes and foster a more conducive environ- ment for economic growth. ZESA attributed the end of load shedding to the successful implementa- tion and completion of expansion projects for Units 7 and 8 at the Hwange Thermal Power Station. The State-Owned Power Utility also highlighted the contribution of Independent Power Producers (IPPs) through the establishment of solar parks and improved output from the Kariba Hydro-Power Station. As a result, Zimbabwe's total domestic generation capacity has increased to approximately 1500MW, a remarkable improvement from the previous capacity of less than 600MW in March of this year. During a recent interview, Engineer Howard Choga, the acting MD of the Zimbabwe Energy Transmission and Distribution Company (ZETDC), stated that the substantial progress in power genera- tion and supply has made a load shedding schedule unnecessary. 10 The AXiS LXXXIII Fri 07 Jul 2023 Zimbabwe’s Energy Triumph A Short-Lived Victory? he Zimbabwe Electricity Supply Authority (ZESA) has announced an end to load shed- Tding this week, stating that the nation's *To Page 11 The Implications of New Drought-Tolerant Tobacco Varieties on Zimbabwe's 300 Million kg Target Boosting Tobacco Yields drought-tolerant varieties. The new varieties are already on the market and fit into the tobacco transformation plan that seeks to increase production to 300 million kilogrammes. Despite the impressive numbers, there are concerns about the sustainability of Zimbabwe's tobacco sector. For instance, there are concerns about the environmental impact of tobacco culti- vation and the health implications of smoking. However, if the industry is managed sustainably, it could become a significant contributor to Zimbabwe's economy, with the potential to generate USD 5 billion under the Tobacco Value Chain Transformation strategy. nation has already broken its previous record for tobacco deliveries by reaching 260 million kg, indi- cating a 55 per cent increase compared to last year, according to numbers from the Tobacco Industry and Marketing Board (TIMB). The impressive tobacco production numbers are a result of various initiatives, including the development of four drought-tolerant tobacco varieties by the Tobacco Research Board (TRB) to boost production in the sector. TRB Chief Executive Officer, Frank Magama, has revealed that the Board has been working on meet- ing the 300 million kg target by eliminating "wrong" varieties of tobacco and introducing new Zimbabwe, known for its tobacco production, is on track to achieve its target of producing 300 million kg of tobacco by 2025. The "Our projection is that we are not going to be shedding going forward, at least in the medium term. If we are not shedding, it means we are getting enough for the consumers," said Choga. "At the moment, we are getting 100 megawatts from South Africa, and from Mozambique, we have two sources - Hidroeléctrica de Cahora Bas- sa(HCB) of Mozambique, which is giving us 50MW, and EDM 10MW. That's enough for the demand in the country." It is noteworthy that Choga chose his words care- fully, preferring to comment that load shedding was over, at least in the medium term, which ranges from at least two years to ten years. This brings up the point that ZESA has applications for at least 1650MW of extra electricity, which is more than what the country is currently generating. Most of these applications are from the mining sector, which needs power for new operations and expan- sion projects. Among these is the energy-hungry new Dinson steel project, which alone needs over 500MW immediately for its first phase. Currently, Zimbabwe's electricity consumption is at 1,850MW, while under the National Development Strategy I (NDS I), the country requires 3,500MW by 2025. Therefore, stating that load shedding is a

11 The AXiS LXXXIII Fri 07 Jul 2023 *From Page 10 As of day 80 of the current tobacco marketing season, the latest sales data showed that Zimba - bwe's overall volumes were 49.24% ahead of the prior year's volumes, at 284.05 million kgs. How - ever, the average base price of US$3.03/kg was slightly lower than the previous year's US$3.04/kg as of day 80. The year-to-date sales value stood at US$859.95m, which is a 48.39% increase compared to the previ - ous year. Notably, this year's percentage of rejected tobacco sales was 7.55% lower than the previous year, indicating a significant improvement in tobac - co quality on the part of 2022/2023 tobacco farm- ers. Zimbabwe's tobacco sector has shown immense growth potential, with the nation on track to achieve its target of producing 300 million kg of tobacco by 2025. The development of drought-tol - erant tobacco varieties and other initiatives by the TRB and TIMB have contributed to the impressive performance of the sector. However, there is a need for sustainable management practices to ensure the continued growth of the sector while minimizing its negative impact on the environment and public health. Zimbabwe has been battling drought for years, which has had a significant impact on the agricultural sector, including tobacco production. However, the development of four drought-toler - ant tobacco varieties by the Tobacco Research Board (TRB) has provided a glimmer of hope for the sector. These varieties have been designed to with - stand the harsh climatic conditions in Zimbabwe and have proven to be effective in boosting tobacco produc - tion. The new drought-tolerant varieties have been introduced as part of the TRB's efforts to increase tobacco production to 300 million kg by 2025. They are designed to safeguard the yields currently being obtained within the tobacco-growing districts, with an additional focus on increasing the amount of tobacco that can be grown. This is a significant development for the sector, as drought has been a major challenge for tobacco farmers, leading to reduced yields and lower-quality tobacco. The four drought-tolerant tobacco varieties have been well received by farmers, who have reported increased yields and improved quality of tobacco. This is a significant improvement from previous years when poor yields and low-quality tobacco were common due to drought. Farmers who have adopted the new varieties have reported a 20-30% increase in yields compared to previous years. This has resulted in increased prof- its for farmers and a boost to the economy. The introduction of drought-tolerant tobacco varieties has also had a positive impact on the environment. Farmers are now able to produce more tobacco with less water, reducing the strain on Zimbabwe's scarce water resources. This is particularly import - ant in the face of climate change, which is expect- ed to exacerbate drought conditions in the region. In addition to the benefits of increased production, the drought-tolerant varieties have also contributed to improving the quality of tobacco produced in Zimbabwe. The TRB has been working to eliminate "wrong" varieties of tobacco and introduce new varieties that yield high-quality tobacco. This has resulted in an improvement in the quality of tobacco produced in Zimbabwe, with farmers reportingthat the new varieties produce tobacco with a better aroma, flavour, and texture. The introduction of drought-tolerant tobacco variet - ies in Zimbabwe has had a significant impact on the sector. The new varieties have provided a solu - tion to the challenge of drought, resulting in increased yields, improved quality of tobacco, and increasedprofits for farmers. The development of these varieties is a positive step towards achieving the target of producing 300 million kg of tobacco by 2025, and it is hoped that the sector will continue to grow sustainably with the help of innovative solutions like these.

*To Page 14 12 The AXiS LXXXIII Fri 07 Jul 2023 imbabwe has made significant progress in addressing its energy crisis with improved power generation capacity, bringing an end to the growth of algae and other harmful organisms. If successful, the proposed floating solar projects could help to address land-use conflicts in Zimba- bwe, providing a more sustainable alternative to traditional solar panels. This, in turn, could pave the way for increased economic growth and devel- opment, as the country seeks to meet its energy needs sustainably. The projects could also help to create jobs, stimulate economic growth and attract foreign investment to Zimbabwe, making them attractive investment opportunities for both local and international investors. Zimbabwe's improved power generation capacity and the proposed floating solar projects demon- strate the country's commitment to sustainable development and reducing its carbon footprint. As a signatory to the Paris Agreement, Zimbabwe has made a commitment to reduce its greenhouse gas emissions by 33% by 2030. The development of renewable energy sources such as solar power is a critical component of this effort, and the proposed floating solar projects offer a more sustainable way of meeting Zimbabwe's energy needs while miti- gating the effects of climate change. Finally, Zimbabwe has a wealth of renewable energy resources, including solar, wind, geothermal, and hydro, that can power its economic growth and development sustainably. By investing in these resources and moving away from fossil fuels, Zim- babwe can ensure a more stable and sustainable energy supply for its citizens while also protecting the environment and mitigating the effects of climate change. In conclusion, Zimbabwe's improved power gener- ation capacity and the proposed floating solar proj- ects offer hope for a more sustainable energy future in the country. The end of load shedding is a significant milestone that sets the stage for increased economic growth and development. The proposed floating solar projects provide a unique solution to Zimbabwe's energy crisis, offering a more efficient and sustainable alternative to tradi- tional solar panels. If successful, they could help to address land-use conflicts in the country and pave the way for increased economic growth and development, while also contributing to Zimbabwe's efforts to reduce its carbon footprint and mitigate the effects of climate change. Set the Stage for Business Growth and Environmental Sustainability Floating Solar Panels and Improved Capacity Deficit Z What to Expect! Zim Insurance Crimes Bureau his move has been long overdue, especially in a country like Zimbabwe which has been Ton an economic rollercoaster for the past could not have arisen and therefore must have been fraudulent to some extent. In Finland, a study of 1 000 adults conducted by the insurance associa- tion in 2012 found that 27% said they knew a person “who has deceived his/her insurance compa- ny”. In a study once conducted in Sweden, it was concluded that 10–20% of all fraudulent claims are claims for losses arising from events that never occurred (i.e., untruthful claims) and 80–90% of all fraudulent claims are exaggerated claims. This shows that even genuine claims can be manipulat- ed and certain individuals or organisations can thrive only on insurance fraud, especially in a country like Zimbabwe. Dr Donald Cressey (1953) came up with three ago, in 2008. Last Tuesday, Insurance and Pensions Commission (IPEC) officially launched the Zimba- bwe Insurance Crimes Bureau (ZICB) with high expectations that it will weed out fraud in the sector. Taking a cue from international trends, it is clear that Insurance Fraud Bureaus (IFB) can only help in lessening the impact of losses emanating from insurance fraud and can never eliminate such. According to the California Department of Insur- ance (CAIF), total losses due to insurance fraud across the U.S. are $308 billion annually. A study conducted by the insurance association in Germany concluded that more than half of all claims arising from loss or damage to smartphones or tablet PCs three decades. The establishment of an insurance fraud bureau could have been done long back given the levels of corruption in the country which if compared to a Christian Bible verse will be "like precious oil poured on the head, running down on the beard, running down on Aaron’s beard, down on the collar of his robe". (Psalms 133) Corruption has been flowing from the highest offices to the lowest of transactions in the economy, and the insurance industry has not been spared. The late establishment of such a bureau will appear as corruption on itself considering that countries like South Africa had already established such 15 years load shedding that has plagued the country for years. The successful implementation and comple- tion of expansion projects for Units 7 and 8 at the Hwange Thermal Power Station, along with improved output from the Kariba Hydro-Power Station and contributions from Independent Power Producers, have led to a substantial improvement in the country's domestic generation capacity. As a result, Zimbabwe's total domestic generation capac- ity has surpassed 1500MW, marking a remarkable improvement from the previous capacity of less than 600MW in March of this year. The end of load shedding is a significant achieve- ment for Zimbabwe, providing much-needed relief to businesses and households alike and paving the way for increased economic growth and develop- ment. The improved electricity supply is expected to contribute to smoother industry outcomes and foster a more conducive environment for economic growth. However, Zimbabwe still faces challenges in meeting its energy needs sustainably. To address this issue, Zimbabwean industrial power users have proposed building floating solar panels on Lake Kariba, the world's largest man-made lake. The project aims to generate 250 MW of electricity and will be located between Zimbabwe and Zambia. Floating solar panels offer several advantages over traditional solar panels, including increased efficiency due to the cooling effect of the water and reduced land use. Furthermore, the development of floating solar panels could poten- tially provide a solution to land-use conflicts in Zimbabwe, as the country develops and faces a growing demand for land for agriculture, mining, and other uses. The proposed floating solar projects on Lake Kariba offer a unique solution to Zimbabwe's energy crisis. Unlike traditional solar panels that require vast tracts of land, floating solar panels offer a more space-efficient solution that can be installed on man-made lakes, reservoirs, and other bodies of water. This is especially advantageous for a country like Zimbabwe, where land is a precious resource and there are often land-use conflicts between different sectors. Moreover, floating solar panels have several other benefits over traditional solar panels. Firstly, they are more efficient, due to the cooling effect of the water, which reduces the risk of overheating and improves energy output. Secondly, they can help to reduce evaporation from the water body, which is particularly important in a country like Zimbabwe, where water resources are scarce and droughts are common. Finally, the installation of floating solar panels can also help to improve the water quality of the lake by reducing

Zimbabwe would benefit from the stability of the Chinese currency and reduce exchange rate risks, making it easier for Zimbabwean businesses to transact with their Chinese counter- parts. Additionally, the use of nega- tive interest rates could stimulate eco- nomic growth by encouraging increased borrowing and investment. As such, adopting a new currency pegged to the Renminbi, coupled with negative interest rates, could represent a promising path towards revitalizing Zimbabwe's economy. Given Zimbabwe's status as a signifi- cant trade partner of both South Africa and China, the latter of which wields considerable influence through- out the African continent, the adop- tion of the Renminbi as its local cur- rency represents an optimal course of action. Notably, this approach allows Zimbabwe to preserve its dignity, as it would be reluctant to subject itself to the perceived indignity of joining a monetary union with South Africa and adopting the Rand due to considerations of national pride. In light of these factors, China presents itself as a compelling solution. In addition to pegging the currency to the Renminbi, Zimbabwe could also consider the implementation of negative interest rates as a means of curbing inflation. This strategy, which has been successfully employed in other nations, involves depositors paying financial institu- tions to hold their funds, rather than receiving inter- est payments. This incentivizes banks to lend money to individuals and businesses, which can help spur economic growth in the long run. The Zimbabwean financial system is characterized by a significant level of informality, with a large portion of the population having limited access to formal banking services. Consequently, even if neg- ative interest rates were to be introduced, it may not necessarily result in increased lending to busi- nesses and individuals, given that a significant pro- portion of Zimbabweans do not currently have access to formal banking services. Moreover, Zimbabwe's high debt-to-GDP ratio and unstable currency pose significant challenges for banks in terms of lending money at competitive rates, even if negative interest rates were to be implemented. To ensure that negative interest rates are effective, Zimbabwean banks can take steps to encourage deposits from non-bank customers. This could include offering incentives such as higher interest rates in the short run on deposits made by non-bank customers, while also streamlining the account opening process to make it more accessible to those who are currently unbanked. Regrettably, Zimbabwe's debt-to-GDP ratio has escalated to 77.2% from its previous level of 66.2% in December 2019. This implies that the country's outstanding debt is equivalent to more than three-quarters of its annual economic output, which is a cause for concern. A high debt-to-GDP ratio can constrain a country's ability to access credit and can make it more vulnerable to economic shocks, while also potentially leading to higher bor- rowing costs. Furthermore, a high debt-to-GDP ratio can pose significant challenges to the implementation of neg- ative interest rates. In particular, it can make it difficult for banks to lend money at competitive rates, as they may perceive a greater risk of non-re- payment. This, in turn, can limit the effectiveness of negative interest rates in stimulating economic growth and job creation. Therefore, addressing Zim- babwe's debt-to-GDP ratio would likely be neces- sary to facilitate the adoption of negative interest rates as a means of spurring economic growth and reducing inflation. To reduce the high debt-to-GDP ratio in a short period, Zimbabwe would need to undertake a com- prehensive program of fiscal and structural reforms. This could include measures such as reducing gov *To Page 14 The Zimbabwean economy has been belea- guered by a multitude of economic predic- aments over the years, including but not limited to hyperinflation, high unemployment rates, and currency instability, among others. Despite multiple attempts by the government to implement policies aimed at curbing inflation, such as the utilization of historically elevated interest rates, the Zimbabwean economy has remained volatile, with three occurrences of hyperinflation since 2008. Against the backdrop of this economic landscape, our researchers have proposed an idea that could serve as a potential solution, namely, the creation of a new currency pegged against the Chinese Renminbi. This would entail Zimbabwe adopting the Ren- minbi as its local currency, which could help mitigate exchange rate risks and currency volatil- ity, while also facilitating transactions between Zimbabwean businesses and their Chinese coun- terparts. Moreover, by pegging the currency to the renminbi, the cost of imports from China could be reduced, thereby stimulating economic growth. Following the de-dollarization process in 2019 and the reintroduction of the Zim Dollar, the Minister of Finance appointed a nine-member panel consisting of academics, bankers, the Gov- ernor and two Deputy Governors of the central bank to form a monetary policy committee. The primary objectives of this panel were to establish a benchmark interest rate and implement infla- tion targeting as Zimbabwe's newly introduced currency was plummeting and consumer prices were surging. However, despite the efforts of this panel, it is clear that the measures imple- mented since 2019 till date have failed to con- trol inflation. As such, this article proposes a new strategy to address the economic challenges facing Zimbabwe. In mid-2022, the central bank even suggested the establishment of a new currency board to revive the ailing Zim Dollar. In July 2022, Zim- babwe implemented a record-breaking bench- mark interest rate of 200%, aimed at curbing inflation. Unfortunately, inflation continues to ravage the economy and even though the interest rates have been set at 150% the current inflation trends will most likely reach the record high of 837.5% in July 2020, indicating that the mea- sures implemented by the Monetary Policy Com- mittee have fallen short of expectations. Zimba- bwe officially adopted recognition of blended inflation as the official inflation rate in February 2022, effectively omitting the computation of ZWL inflation. Based on internal estimates, annual inflation was projected to reach 720% as of June, reflecting hyperinflation. This article proposes the use of a new currency- pegged against the Chinese Renminbi, coupled with the implementation of negative interest rates, as a means of addressing Zimbabwe's eco- nomic challenges. By pegging its currency to the Renminbi, A Proposal for a New Currency Pegged to Renminbi with Negative Interest Rates ernment spending, enhancing tax collection, and implementing policies to boost economic growth and job creation. Additionally, Zimbabwe could seek to negotiate debt relief with its creditors, while also exploring alternative sources of financing, such as foreign investment and inter- national aid. Ultimately, a multi-pronged approach would likely be necessary to address Zimbabwe's debt challenges and put the econo- my on a more sustainable path. Creating a new currency that is pegged to the Chinese currency requires careful planning and execution. Zimbabwe would first need to estab- lish the legal framework necessary to adopt the Chinese currency, which it has already done through a currency swap agreement with China valued at US$400 million. However, this is just the first step. The currency swap agreement signed between China and Zimbabwe in 2020, which is valued at US$400 million, serves as an example of the measures that need to be taken to create a new currency pegged to the Chinese currency. This agreement reflects the legal frame- work necessary for Zimbabwe to adopt the Chi- nese currency and underscores the importance of accumulating foreign currency reserves to support the value of the new currency. However, this agreement alone is not sufficient to create a new currency, as Zimbabwe would need to further strengthen its financial and bank- ing systems to ensure that they are capable of accommodating a new currency and gaining the trust of internation al investors due to its high debt-to-GDP ratio. Nonetheless, the currency swap agreement rep- resents a crucial step towards creating a new cur- rency pegged to the Chinese currency and high- lights the importance of establishing sound legal and economic frameworks to support such an endeavour. To establish a new currency that is pegged to the Chinese currency, Zimbabwe would need to accumulate a substantial amount of foreign cur- rency reserves to back the value of the new cur- rency. This would necessitate a multifaceted approach, involving various measures such as augmenting foreign direct investment (FDI), expanding exports, and acquiring loans from international financial organizations. In particular, Zimbabwe could endeavour to attract FDI by offering incentives to foreign investors, such as tax breaks and streamlined regulatory procedures. Additionally, the country could increase its export earnings by expanding its export base, optimizing the production of its primary exports such as tobacco, and diversifying into new export mar- kets. Furthermore, Zimbabwe could explore securing loans from international financial institu- tions, such as the International Monetary Fund (IMF) or the World Bank, to bolster its foreign currency reserves. Negotiating a credit line with China is another viable option that Zimbabwe could consider to establish a stable supply of foreign currency reserves. Specifically, Zimbabwe could seek to negotiate a bilateral credit facility with China, which would provide a reliable source of foreign currency to support the new currency. This could be achieved through the issuance of a sovereign bond, which would be purchased by the Chinese government or its affiliated institutions, providing Zimbabwe with a substantial inflow of foreign currency reserves. Moreover, this could potentially result in reduced borrowing costs, as the Chinese government may offer favourable lending terms to Zimbabwe. Developing a new currency pegged to the Chi- nese currency would require Zimbabwe to accu- mulate a significant amount of foreign currency reserves to support the value of the new curren- cy. This would necessitate a comprehensive approach, involving measures such as attracting FDI, expanding exports, and securing loans from Revitalizing Zim's Economy The AXiS LXXXIII Fri 07 Jul 2023 13

*From Page 12 *From Page 13 international financial institutions. Additionally, Zimbabwe could explore negotiating a credit line with China to establish a stable supply of foreign currency reserves, potentially through the issuance of a sovereign bond. The amount of foreign currency reserves needed to support a new currency pegged to the Chi- nese currency would depend on several factors, including the size of Zimbabwe's economy and the level of confidence that international inves- tors have in the new currency. Generally, the greater the reserves, the more confidence inves- tors will have in the new currency and the more stable its value will be. To provide a rough estimate, If Zimbabwe's foreign currency reserves stood at approximately US$ 1 billion, this amount may not be sufficient to support a new currency pegged to the Chi- nese currency, given the size of the Zimbabwean economy and the challenges it faces. For instance, Zimbabwe's high debt-to-GDP ratio and unstable currency may limit investor confi- dence, which could require the country to accu- mulate a larger amount of foreign currency reserves to support the new currency. Once Zimbabwe has accumulated an adequate amount of foreign currency reserves, it could then begin the process of issuing the new cur- rency. The value of the new currency would be linked to the value of the Chinese currency, which means that the Zimbabwean central bank would need to closely monitor the exchange rate between the two currencies and adjust the supply of the new currency accordingly to maintain its value. In terms of reserves needed, the exact amount would depend on the size of Zimba- bwe's economy and the level of confidence in the new currency. Generally, the greater the reserves, the more con- fidence investors will have in the new currency and the more stable its value will be.As for the Chinese reserve bank, it holds the world's larg- est foreign exchange reserves, which amount to approximately US$3.25 trillion currently. The Chinese government has actively sought to increase its holdings of foreign currency reserves to support its currency and promote economic growth. The Chinese reserve bank plays a criti- cal role in managing the value of the Chinese currency and maintaining stability in the Chinese financial system. Creating a new currency pegged to the Chinese currency would require Zimbabwe to accumulate sufficient foreign currency reserves and establish a robust legal framework to support the new rather than the traditional "core banking busi- ness" of lending. This means that negative inter- est rates, which are intended to encourage banks to lend money, may not have as much of an effect on Zimbabwean banks as they do in other countries. If Zimbabwe adopts the Renmimbi, it could potentially help to stabilize the economy and boost economic growth. The stability of the Ren- mimbi would help to reduce exchange rate risks and currency volatility, which would make it easier for Zimbabwean businesses to transact with their Chinese counterparts. This would also make imports from China cheaper, which would help to boost the economy. Additionally, if Zim- babwe adopts negative interest rates in the future, it could further stimulate economic growth. Zim- babwe's economy has been facing significant challenges for years, and adopting a viable solu- tion is crucial. The adoption of the Chinese Renmimbi as the local currency could help to stabilize the econo- my and boost economic growth, while also reducing exchange rate risks and currency vola- tility. If Zimbabwe adopts the Renmimbi, it could potentially use negative interest rates in the future to further stimulate economic growth. While there are challenges that Zimbabwe would have to overcome, the legal framework for Zim- babwe to use the Chinese currency is already in place, and it is a feasible option that could potentially help to turn around Zimbabwe's fortunes. currency. While there are challenges associat- ed with this approach, it represents a viable option that could poten- tially help to address Zimbabwe's economic challenges. Namibia and other Rand Union currencies have successfully pegged their currencies to the South African currency, which has helped to stabilize their econo- mies. Zimbabwe could follow a similar path by pegging its currency to the Chinese Renmimbi. China is Zimbabwe's major trade partner, and this means that the Ren- mimbi is a highly rele- vant currency to Zimbabwe's economic landscape. Pegging the Zimbabwean currency to Renmimbi would eliminate the need for Zimbabwe to use the US dollar or other foreign currencies, which would help to reduce exchange rate risks and currency volatility. This would also make it easier for Zimba- bwean businesses to transact with their Chinese counterparts, as they would be using a common currency. Japan has been using negative interest rates for sev- eral years, and this has helped to stimulate its econ- omy. Negative interest rates mean that depositors have to pay banks to hold their money rather than receive interest. This encourages banks to lend money to businesses and individuals, which stimu- lates economic growth. Zimbabwe could use nega- tive interest rates to encourage banks to lend money to businesses, which would help to stimulate eco- nomic growth. However, implementing negative interest rates would require a stable currency, which is why peg- ging the currency to Renmimbi would be a neces- sary first step. If the Zimbabwean currency is unstable, negative interest rates would be less effec- tive in stimulating economic growth. Nevertheless, if Zimbabwe adopts the yuan, it could potentially use negative interest rates in the future to help stimulate economic growth. While negative interest rates have been used successfully in other countries to stimulate economic growth, they may not have the same effect in Zimbabwe due to the nature of the country's banking system. Zimbabwean banks rely heavily on non-funded income, such as fees and commissions, as their main source of income The AXiS LXXXIII Fri 07 Jul 2023 14 already has. We expect ZICB to be a centre of excellence for anti-fraud initiatives through activities like educat- ing consumers on what constitutes insurance fraud and its consequences. The bureau must provide cost-effective intelligence support to member com- panies to enhance their own capabilities. ZICB will also be expected to engage in cross-border cooper- ation with external agencies to detect and prosecute fraud. Strategic relationships with government agencies and police for data sharing and awareness of fraudulent activity will also be very key. London Police's IFED division in June 2023 launched a national awareness campaign on insurance fraud after finding out that 51% of the cases it received involved motor insurance fraud; 29%, property insurance fraud. The market would expect ZICB to make such initiatives with ZRP and have proper dedicated divisions focussing on insurance fraud. Everything is going digital and we expect ZICB to research and develop emerging technologies that can increase the sector’s ability to develop anti-fraud measures. No individual organisation or agency has the resources to single-handedly stop insurance fraud. However, by combining resources and the expertise of insurers, law enforcement agencies, and the IFB, insurance fraud can be detected, deterred and prevented. The market has generally lost faith and interest in the execution of duties by govern- ment-linked entities like the recently launched ZICB. The onus is upon the leadership of the bureau to prove to the market that they can operate the bureau differently, probably at international level! already battling the highest inflation numbers in the world. Investigating fraud also has an impact on insurers’ ability to deal with genuine claims quickly leading to poor service delivery. The cost of insur- ance fraud has more far-reaching consequences than just a rise in premiums for policyholders because everyone pays for the costs associated with the deployment of public resources, such as police, fire and ambulance services, detection processes, and prosecution services. That said, a lot is expected from the recently launched ZICB. Investigating a potentially fraudu- lent claim as a single insurer can be more costly than the claim itself, hence the need for an IFB like ZICB. Insurer reputation is also a factor which can make an insurer reticent to raise the issue pub- licly. It is reported that ZICB is made up of 20 insurers and 10 reinsurance companies amongst other stakeholders. The bureau is designed to allow otherwise-competing organisations the chance to share data and collaborate with external stakehold- ers to benefit the market at large. According to earlier media reports, the ZICB is being developed in a similar fashion to the South African Insurance Crime Bureau (SAICB). SAICB will assist in setting up ZICB, developing key operational strategies and plans, assisting in the creation of all essential operational support struc- tures, overseeing the design of essential templates for sourcing and providing critical data inputs and outputs, advise in the scoping of key functions and roles in ZICB, and train and skill all essential ZICB personnel in South Africa. If that arrange- ment is still live, we expect the bureau to be upto good speed given the wealth of experience SAICB factors of the fraud triangle describing the enablers of fraudulent behaviour namely; moti- vation, opportunity and rationalisation. A person can be motivated into fraud through factors like financial stress, greed, addiction and a sense of entitlement. Then, an opportunity can occur when there is perhaps a flaw in a process or a legal loophole. This is usually a temporary situ- ation with a perceived low risk but high finan- cial gain. According to the City of London Police’s Insurance Fraud Enforcement Depart- ment (IFED), opportunistic insurance fraud cases, such as exaggerated claims and false application information, saw a 61% year-on-year increase in the March 2022 to April 2023 period. Meanwhile, life insurance cases accounted for 4.5% of opportunistic fraud. Cressey defined rationalisation as that mindset of an individual that justifies him to commit the act. That think- ing, which says “it’s a big company, they can afford it”. Insurance fraud ranges from oppor- tunists to highly organised crime rings. It is reported that in the UK, a man faked his own death by drowning but was traced to Panama where he was living with his wife off the proceeds of his life insurance policy. Insurance fraud has damaging consequences in any economy especially when left unattended. Fraudulent claims and the cost of investigating suspected fraud lead to higher premiums for honest customers. That feeds into inflationary pressure and in our local context, it leaves the country in an even worse situation as we are

Zimbabwe experienced a significant increase in macroeconomic fluctuations in June 2023, with the local currency losing over 55% of its value in both foreign exchange mar- kets. The increased instability is affecting many facets of the economy including, inter alia, financial reporting, asset valuation, contract negotiations, policy-making & regulation, and cost (production and living) estimation. This week’s column, therefore, tracks and analyses economic indicators to identify the root causes of instability experienced in June. 1. Zimbabwe Economic Outlook The government through ZimStat has revised upwards the 2022 national output (GDP) growth estimates from 4% to 6.5%. 2022 GDP growth was largely driven by accommodation & food services (23.7%), finance & insurance (15.6%), information & communication (14.1%), mining (10.5%), transport & storage (6.6%), and agricul- ture (6.2%). The growth of the mining sector in 2022 is largely attributable to elevated global mineral commodity prices which were driven by the Russia-Ukraine war as the war increased global supply uncertainties as well as global inflation. The positive growth realized in Agric in 2022 is partly linked to overvalued domestic prices which are not in sync with both regional and international grain prices. Also, the big tourism sector recovery was supported by the easing of COVID-19 restrictions reflecting a successful domestic vaccination campaign and widespread vaccinations abroad. However, gross capital formation was very low due to high inflation which wreaked havoc in markets thereby affect- ing business predictability – and in turn, sub- dued new business investment. Although GDP registered positive growth in 2022, the growth lacked a human face. In 2022, ZWL declines in the parallel market and annual prices inflation averaged 10.4% and 184.1% per month respectively. This reduced purchasing power thereby widening societal inequalities and trapping the many citizens into abject poverty. Again, ZWL and price volatility persisted in 1HY23 coupled with prolonged electricity load shedding, expensive fuel relative to the regional counterparts, and spillovers of the war in Ukraine. All these have greatly undermined eco- nomic activity in the real sector. Despite signs of ZWL stability witnessed toward the end of June, I still foresee a balance of risks to the out- look that is heavily tilted to the downside. The biggest risk is the upcoming election which is fuelling opportunistic political business cycles. 2. Inflation ZimStat blended inflation statistics show that prices mounted by 175.8% between June 2022 and June 2023, up from the 86.5% increase real- ized between May 2022 and May 2023. In monthly terms (May 2023-June 2023), blended general prices spiked by 74.5%, up from the 15.7% increase recorded in the previous period (April 2023-May 2023). June 2023 inflation out- turn shows that Zimbabwe is in a hyperinflation- ary mode. Largely fuelling inflation in 1HY23 was the massive decline of the ZWL against the USD driven by excessive liquidity growth. Due to Here Are June 2023 Snippets Zimbabwe imported merchandise worth US$851 million in May 2023, up 20.2% from US$708.12 million reported in April 2023. Merchandise exports for the same month came in at US$654.21 million, up from US$555.55 million in April 2023. This gives May 2023 external trade deficit (imports exceeding exports) of -US$196.8 million, up 29% from the April 2023 trade deficit of -US$152.57 million. Cumulatively, Zim’s exports for the first 5 months of 2023 totaled US$2.59 billion (US$2.65 billion for 2022) while imports were US$3.56 billion (US$3.32 billion for 2022). Overall, the Jan-May 2023 period witnessed a trade deficit of -US$0.97 billion which is 42.6% higher than a deficit of -US$0.68 billion achieved for the same period in 2022. The wid- ening trade deficit in 1HY23 is linked to elevat- ed global crude oil prices at a time Zimbabwe, a net oil importer & global oil price taker, was facing increased fuel demand due to prolonged electricity load shedding hours averaging 15 hours per day. Also, the increased use of the USD in the econo- my is fuelling the deficit as the stronger USD makes Zimbabwean-made goods expensive for regional counterparts using their weak currencies while making foreign-made products cheap for Zimbabweans. In the outlook, I expect the sus- pension of import duty on basics, deepening dol- larization, threats of oil production cuts by OPEC+, fragile domestic electricity generation, Russia-Ukraine war spillovers, and chronic price inflation to worsen the external trade balance. 6. Public Sector Borrowing The approved 2023 national budget has an expenditure ceiling of ZWL4.5 trillion with a financing gap of ZWL575.5 billion that is expected to be covered through borrowing. To cover this spending gap, Treasury will utilize an external loan facility (US$400 million), issue a domestic bond (US$100 million), issue Treasury Bills (TBs) (ZWL82.8 billion), and changes in bank balances (ZWL10 billion). However, Trea- sury will likely borrow more in 2HY23 than was initially anticipated. It is facing enormous pres- sures due to severe ZWL and price instability experienced in 1HY23 which has significantly reduced the real value of the approved national budget. Domestically, the available statistics are showing a significant jump in Treasury borrowing. In monthly terms, issued TBs were up 9% in April 2023 to ZWL391.59 billion while in annual terms, they are up 512% from ZWL63.94 billion issued in April 2022. Externally, Treasury secured the US$400 million external loan facility extended by the Abuja-based African Export-Im- port Bank (Afreximbank) in June 2023. While borrowing to finance the budget gap is inevita- ble, Treasury must ensure that new borrowing is carefully set to keep the level of public debt on a sustainable path lest it fails to meet all its obli- gations without exceptional financial assistance or going into default. USD liquidity challenges in the official markets and widening confidence deficit, corporates were bench- marking ZWL prices at or above parallel rates – forward pricing. In addition, adverse inflation expectations, structural rigidities, increased money velocity and some spillovers from the Rus- sia-Ukraine war were exerting upward pressures on prices. 3. Exchange Rate ZWL massively plunged in the 1HY23. It erased 88.1% and 88.6% in the official and parallel mar- kets respectively between the end of Dec 2022 and the end of June 2023. In a bid to arrest ZWL's fragility and restore sanity in the economy, authori- ties instituted a cocktail of policy measures in May and early June. Resultantly, ZWL's decline in the official market peaked at pace for most of June 2023 as it resembled an improved ZWL price discovery process. Between May 31 and June 27, the ZWL fell by a staggering 62.9% on the will- ing-buyer willing-seller (WBWS) interbank market. For the same period in the alternative markets, the local unit erased 59.3% of its value. However, the economic measures managed to mop excess liquidity. As a result, the rate of ZWL decline started to subside. In the interbank market, the ZWL recouped some of its lost value, a first in months. It gained by an average of 6.7% during the 28-30 June period. Also, parallel market rates have started to sail stable. If the government doesn’t waver and adheres to monetary & fiscal discipline coupled with full implementation of polit- ical and economic reforms, durable macroeconomic stability will be attained. 4. Money Supply ZWL liquidity growth remained highly elevated in 1HY23 emanating from RBZ quasi-fiscal operations (QFOs), for instance, printing ZWLs to service external debt obligations and payments for forex ceded by exporters and tobacco farmers. Available statistics show the ZWL component of reserve money (M0) spiking by a staggering 63.5% between Dec 2022 (ZWL58.75 billion) and April 2023 (ZWL96.04 billion) while the ZWL compo- nent of broad money (M3) spiked by a staggering 31.3% between fourth quarter of 2022 (4Q22) & first quarter of 2023 (1Q23). Also, escalating ZWL liquidity was the rising spending pressures on Treasury as it increased the ZWL salary component for all civil servants by 100% in 1Q23, funding for ongoing infrastructure projects, and agricultural support (winter wheat farming & grain purchases from farmers), among other initiatives. I believe that this rate of liquidity growth was not commensurate with the rate of growth of economic activity in the real sector hence the reason authorities were forced to intervene to mop up this excess liquidity. Nevertheless, it remains to be seen if the stability witnessed toward the end of June 2023 is going to be sustained in the medium term given the many demands and risks facing the Treasury. Treasury spending is likely to overshoot beyond sustainable levels due to electioneering, settlement of forex ceded by exporters & RBZ external debt obligations it assumed, civil service salary increments are now long overdue, it is funding ongoing infrastructure projects, and support to the agriculture sector, among others. 5. External Trade By Zvikomborero Sibanda Macroeconomic Review The AXiS LXXXIII Fri 07 Jul 2023 15

' ' Term of The Week Poverty facilities, and healthcare services, as well as limited opportunities for education, employment, and economic development. Understanding the term Poverty can take many forms, including absolute poverty, which refers to a lack of resources necessary to meet basic needs, and relative poverty, which is defined in relation to the average income or standard of living within a particular society or community. Poverty can also be chronic, meaning it persists over a long period of time, or situational, arising from a temporary setback such as job loss or illness. Zimbabwe is a country that has experienced different types of poverty over the years, including absolute poverty, relative poverty, and multidimensional pover- ty. However, the type of poverty that is currently dominating in Zimbabwe is multidimensional poverty. Multidimensional poverty refers to a situation in which individuals or house- holds experience poverty in multiple dimensions, including health, education, standard of living, and access to basic services. In Zimbabwe, multidimensional poverty is driven by a range of factors, including high levels of unemployment, limited access to healthcare, poor infrastructure, and low levels of education. Poverty can have a significant impact on individuals and communities, including negative effects on physical and mental health, education, and social and economic well-being. Poverty is often intergenerational, meaning it can be passed down from one generation to the next, perpetuating cycles of disadvan- tage and inequality Poverty refers to a state of deprivation in which a person or a community lacks the resources or means to fulfil their basic needs for food, shelter, cloth- ing, healthcare, education, and other essential aspects of life. Poverty can be characterized by a lack of access to adequate food, clean water, sanitation

*To Page 18 The Story behind SeedCo’s Epic Profit Plunge 17 The AXiS LXXXIII Fri 07 Jul 2023 From Seeds to Struggles markets S became expensive. Currencies in these respective countries lost value significantly against the dollar, making it more expensive for the Company to import raw materials and inputs needed for its operations. This further affected the purchasing power of the consumers as the company’s products became expensive in local currency which was liquid to most farmers. Nigeria, the largest economy in Africa saw one of its worst economic performances during the period under review. Pegged at a higher of 465 against the greenback with the parallel market trading in a region of 850, Naira enjoyed a premium of 46% hence, the Company’s net debt-to-equity ratio increased because of lower profitability and the impact of exchange losses on equity. Exchange losses have a significant impact on seed companies, to be precise Seed Co International as it operates in multiple countries and transacts in different currencies. When a company's home currency depreciates against other currencies, the foreign currency-denominated assets and liabilities of the company lose value, leading to exchange losses. The depreciation in the performance of local currencies against the US dollar resulted in signifi- cant exchange losses for the company because it earns revenue in local currencies but has to pay for imports and service foreign debt in US dollars. The decline in the value of local currencies against the dollar made it more expensive for the company to import raw materials and inputs needed for its operations. As we highlighted before, it will be expensive to purchase a dollar as the company's foreign currency-denominated assets and liabilities lose value, leading to exchange losses. This erodes the company's earnings and negatively impacts its financial position. How can seed companies avert exchange losses? The company can take several measures to avert exchange losses, which occur when fluctuations in foreign exchange rates negatively impact the value of their assets or earnings. One of the ways is hedging foreign exchange risk. Seed Co can use financial instruments like forward contracts, options, or swaps to hedge their foreign exchange risk. These instruments allow companies to lock in exchange rates in advance, reducing their exposure to fluctuations in currency values. Besides hedging FX risks, the company may moni- tor exchange rates and adjust its operations or pric- ing strategies accordingly. For example, if a partic- ular currency is expected to depreciate, the compa- ny may reduce its exposure to that currency or increase its prices in that currency. The last one is maintaining a strong financial position by manag- ing debt levels, maintaining adequate cash reserves, and avoiding excessive exposure to foreign exchange risk. By taking these measures, Seed Co can minimise its exposure to exchange losses and ensure the long-term sustainability and profitability of their operations. Russia-Ukraine War The war in Ukraine and Russia further exacerbated the performance decline across all markets. African states import most of their fertilisers, fuel and pesticides from Russia. After the invasion, the sub- sequent sanctions from the Western countries led to disruption in supply chains. As a result, the Com- pany faced higher costs of inputs like fertilizers, pesticides and fuel, which led to lower profitability and higher prices for customers. The price of higher prices to consumers was an impoverished consumer spending behaviour. This led to lower sales. In this case, the war exacerbated a problem that was already there. The war made the raw materials more expensive, against an already impoverished local currency. According to the Food and Agriculture Organiza- tion (FAO), the total area equipped for irrigation in Africa is approximately 13 percent of the total cultivated area, which is about 30.5 million hect- ares (75.3 million acres). Egypt has the highest rate of irrigation in Africa, with over 90 percent of its cultivated land on irrigation. Other countries include Morocco, Sudan, and Tunisia. In contrast, many countries in sub-Saharan Africa have low rates of irrigation, with less than 5 percent of culti- vated land under irrigation. This is where the Com- pany has a large footprint. The low rates of irrigation in sub-Saharan Africa, coupled with recurrent drought spells pose a bigger threat to the company. Droughts lead to crop failures, reduced yields, and lower demand for seeds, which can negatively impact the profitability of seed companies. This was the case in Kenya. The company’s profitability was affected by prolonged droughts in East, Central and Southern Africa. Kenya experienced drought spells during the period under review affecting the Agric-seeds business. Droughts led to lower purchases of the company’s products as most farmers are subsis- tence ones, who rely on natural rains. Besides, prolonged drought spells lower crop yields and higher input costs. This strained the company's finances and limit its ability to expand operations. Prolonged drought spells curtailed the demand for the Company’s products. How do seed companies navigate the effects of incessant drought spells in Africa? Seed Co International’s business relies heavily on the availability of water. Without water, the busi and distributing certified hybrid seeds, recorded one of its worst profit declines since its listing on the Victoria Falls and Botswana Stock Exchange. This is according to the company’s latest full-year 2023 financials. The company remained profitable, but the profitability was heavily dented by more than 50%, from US$7.1 million during the full-year 2022 to US$2.9 million. This indicates that the profit more than halved by 59%, an epic profit decline. “The financial year under review was of mixed fortunes evidenced record business growth in some markets, reduced business in others, and loss of value from exchange losses as regional currencies depreciated against the USD,” the Company’s chair- person David Long said in a statement accompany- ing the full year financials. “Despite achieving business growth that is testimo- ny of brand resilience, external factors mainly exchange losses more than reversed business growth gains, and reduced the Group's profitabili- ty,” he said. The plunge in net profit put a burden on the coun- try’s desire to service debts as borrowings and finance costs shoot to US$46 million from US$42 million. This caused the net debt to shoot by 21% during FY2023. The impact of exchange rate losses was indicated in the costs of sales and the decline in operating profit. Therefore, this article will emphasize how exchange losses and global import- ed inflation affected the company and some solu- tions going forward. The article will also delve into other key aspects like the effects of the Russia-Ukraine War on Afri- ca’s agriculture and the curse cast by the recurrent drought spells. This article will also provide means by which the company can deal with the possible solutions given empirics. Exchange Losses According to Long, exchange losses were the biggest threat to the company’s profit efficacy. The company recorded exchange losses of US$4.5 million, a 200% increment. Because of the stronger dollar against weak currencies in the countries the company operates, the cost of sales took half of the revenue earned of US$103.5 billion which was a 20% increase from US$88.5 billion. The compa- ny incurred US$57.5 million in cost of sales, an 18% surge. The company operates in several African countries, including Zambia, Botswana, Kenya, Malawi, Nige- ria, DRC, Ghana, and Angola. The stronger dollar against other currencies has had a significant impact on the company's profitability. The dollar witnessed significant gains in Kenya, Nigeria, and DRC while in Malawi, the company faced immense US dollar shortages in the economy. This weakened the local currency more as imports eed Co International Limited, a company with a regional footprint in Africa, operating in several countries with the duty of breeding

for HY’23. While the company's impressive performance has caught the attention of many investors, there are concerns that the company's outlook may be steeped in deception. In this article, we delve deeper into the factors behind Tanganda's financial growth and the challenges it faces in maintaining its position in the Zimbabwe- an agricultural sector as the pool of regional com- petitors has been opened after the removal of import duty by the government. We also explore potential strategies that the company can adopt to overcome these challenges and ensure its financial growth is sustainable in the long run. The company recorded a decline of 6% in the production of bulk tea, which is its major export and revenue-generating portfolio. The company further experienced a dip in bulky export sales by 9%. It is unclear how the same product with reduced sales and production volumes registered 85% revenue growth inflation-adjusted, considering the price increment of 1% from $1.43 to $1.45. This means inflationary pricing has been in play for the company, which could have affected the profitability component. It is essential to understand the factors that have contributed to the revenue growth and whether the pricing strategy is sustain- able in the long run. Also, the company's operating profit margin narrowed from 47.1% in 2021 to 34% in 2022, reflecting reduced operational efficiency in the organization. Addressing this inefficiency is crucial for the company to withstand incoming competi- tion. One potential solution could be to restructure expenses and move towards utilizing more afford- able power sources such as solar and electricity instead of generators. Additionally, the company might consider implementing a piece-rate system that can reward employees based on their time of work, which gives the company the liberty of recording no expenses during power absence. These measures can help the company reduce costs and improve operational efficiency. If Tanganda is to remain optimistic about the oper- ating environment, it needs to put in place strate- gies that should boost the production level and promotional activities to help increase sales across its divisions. In the period under review, the com- pany did not harvest any avocados as it was not yet the season for selling them. The incoming competition does not carry any of the avocado portfolios, and thus the company can be hostile towards selling them both in the local and export The AXiS LXXXIII Fri 07 Jul 2023 18 *From Page 17 can help farmers maintain their crop yields during periods of extreme drought. For example, Monsan- South Africa to cope with drought conditions. The adoption, though at a slow pace of drought-tolerant maize varieties in Kenya has led to a 25% increase in yields and a 30% reduction in crop losses during droughts. There is also a need to diversify. Seed Co should consider diversifying operations and product lines to reduce dependence on specific crops or regions that are more susceptible to droughts. Companies like Cargill and Archer Daniels Midland (ADM) have diversified their operations to reduce their dependence on specific crops or regions that are more susceptible to droughts. For example, Cargill has diversified its operations to include trading in cocoa, coffee, and other commodities, which helps to spread risk and ensure that the company remains profitable even during difficult periods. Another key solution so that the agro-business will not wilt is offering drought insurance programmes. Seed Co can partner with insurance companies to offer drought insurance to farmers, which can help to mitigate the financial risks associated with crop failures during drought spells. The African Risk Capacity (ARC) is an innovative insurance compa- ny that offers drought insurance to African coun- tries. ARC provides insurance coverage for drought-related losses and helps countries to prepare for and respond to droughts. For example, in 2019, the ARC paid out US$738,835 to Senegal to help farmers cope with the effects of a severe drought. Swiss Re, a global reinsurance company, has been offering drought insurance to farmers in several countries, including Brazil, India, and China. The World Bank has been providing support for drought insurance programs in several African countries, including Kenya, Senegal, and Niger. All these factors are critical to consider for the future of the company. ness will come to extinction. The company needs to invest more in how to solve this danger before it spills out of hand. The company needs to develop and distribute drought-resistant seed variet- ies. It already boasts several drought-resistant crops but due to climatic changes, there is a risk of higher failure to withstand current erratic condi- tions. In Zimbabwe, SeedCo Zimbabwe’s SC513 is failing to withstand the erratic drought spells, hence, there is a need to invest in more resistant hybrids. It can expand its research capabilities to create varieties that are better able to survive and thrive during periods in likely harsher periods. Climate change isn’t stopping. The ozone layer continues to deplete and global temperatures con- tinue to rise. Breeding-related seed varieties can help farmers maintain their crop yields despite challenging conditions. Companies like Monsanto, Syngenta, and Dow AgroSciences have invested heavily in research and development to create drought-resistant seeds that Is it Just a Steeped-Up Illusion? Tanganda's Financial Growth T market to help cushion the possible revenue decline that could come with competing import companies. This involves having preset exportation reliability mechanisms that will enhance the market exporta- tion of the fruit into the regional market. Furthermore, Tanganda Tea Company's production of bulk tea’s decline by 6%, and bulk tea exports which have gone down by 9%, could potentially put pressure on the company's revenue growth. However, the company's revenue has still increased by 70%, indicating that it was able to sell its prod- ucts at higher prices despite the decline in sales volume for packed tea products. This increase in revenue can be attributed to exchange rate move- ments and inflation trends. To address the challenge of competition, Tanganda needs to put in place strategies that can help boost production levels and promotional activities to increase sales across its divisions. One potential strategy is to capitalize on the company's avocado portfolio, which was not harvested during the period under review. Investing in preset exportation reliability mechanisms can help enhance the market exportation of avocados into the regional market, potentially cushioning the possible revenue decline that could come with competing import companies. However, Tanganda's profitability and market posi- tion could also be affected by the impending merger with Ariston Holdings Limited, another agricultural company listed on the Zimbabwe Stock Exchange. The merger could result in a significant restructuring of the company, which could impact its profitability and market position. It is essential to assess the potential impact of the merger on Tanganda's operations and financial performance. Therefore, Tanganda Tea Company faces signifi- cant challenges in maintaining its impressive finan- cial growth. Increased competition from import companies using penetration pricing, declining production of bulk tea, potential risks associated with the impending merger with Ariston Holdings Limited, and reduced operational efficiency are all factors that could impact the company's revenue growth and profitability in the long run. To address these challenges, Tanganda Tea Compa- ny needs to implement strategies that can help boost production levels, increase sales through promotional activities, and optimize the cost struc- ture to maintain profit margins per unit sold. For instance, the company can leverage its avocado portfolio to explore new markets such as exports, which can cushion potential revenue declines. Additionally, Tanganda can invest in preset expor- tation reliability mechanisms to enhance the market exportation of avocados into the regional market. Furthermore, Tanganda needs to restructure expens es and move towards utilizing more affordable power sources such as solar and electricity instead of generators. The company can also consider implementing a piece-rate system that rewards employees based on their time of work, thereby giving the company the liberty of recording no expenses during power absence. As Tanganda navigates these challenges, it is crucial to ensure that its financial growth is sustainable and not just a storm in a teacup. The company needs to remain vigilant about its market position, profitability, and operational efficiency to maintain its strong foothold in the Zimbabwean agricultural sector. By adopting a proactive and innovative approach, Tanganda Tea Company can overcome these challenges and continue to grow its revenue and profitability in the long run. One potential strategy for Tanganda is to focus on product diversification and innovation. The compa- ny can explore new product lines that are in demand in the local and international markets. This can help the company reduce its dependence on bulk tea products and increase its revenue streams. Additionally, Tanganda can invest in research and development to improve the quality and taste of its tea products, which can help differentiate it from its competitors. Another strategy is to focus on building a strong brand identity and reputation. Tanganda Tea Com- pany can invest in marketing and promotional activities to create awareness about its products and increase its brand visibility. This can help the com- pany build a loyal customer base and increase its market share.Lastly, Tanganda can explore partner- ships and collaborations with other local and inter- national companies. This can help the company access new markets, technologies, and resources that can help it improve its operations and expand its business. In conclusion, Tanganda Tea Company has report- ed impressive financial growth, but it faces signifi- cant challenges in maintaining its position in the Zimbabwean agricultural sector. The company needs to implement strategies that can help it over- come these challenges, such as product diversifica- tion, innovation, building a strong brand identity, and exploring partnerships and collaborations. Additionally, Tanganda needs to remain vigilant about its market position, profitability, and opera- tional efficiency to ensure its financial growth is sustainable in the long run. anganda, a ZSE-listed agricultural company has recently reported impressive financial growth despite facing several challenges for

The AXiS LXXXIII Fri 07 Jul 2023 19 A Spellbinding or Mediocre, Lacklustre Projection Dairibord’s Crystal Ball even ground. More challenges post-election awaits for the company. Milk prices in Zimbabwe have been volatile due to a range of factors, including currency devaluation, inflation, and changes in global demand. According to a report by the Zim- babwe National Statistics Agency, the price of milk increased by over 150% between September 2018 and September 2020. This volatility has made it difficult for farmers and processors to plan and manage their operations effectively and has led to lower profitability and financial instability. The key factors were post-2018 election results which brewed economic decadence through hawkish monetary policies, fiscal indisci- pline and political intolerance. Another topical issue in global news is climate change. Zimbabwe is particularly vulnerable to the impacts of climate change, with rising tempera- tures, changing rainfall patterns, and extreme weather events affecting milk production and dairy farming practices. According to a report by Zimba- bwe’s Meteorological Department, climate change is expected to have a significant impact on the country's dairy industry, with heat stress, water shortages, and feed shortages becoming more common. This could lead to lower milk yields and higher production costs. Zimbabwe’s government has a record of policy inconsistency. The company may face intense com- petition from imports, particularly from South Africa. According to a report by the Zimbabwean government, imports of dairy products increased by over 400% between 2010 and 2018, while domes- tic production remained relatively stagnant. This has led to a decline in the market share of domes- tic producers and has made it difficult for farmers and processors to compete. Currently, there is a free duty on milk for six months to November. This policy was also introduced in 2017 in an effort to boost milk production and address the country's milk deficit. Import competition can lead to lower prices for domestic producers, which can reduce profitability and discourage investment in the sector. In addition, duty-free imports can lead to a reliance on imported milk products, which can undermine the development of a sustainable and self-sufficient dairy industry. Political and economic instability in Zimbabwe has had a significant impact on the dairy industry, particularly in terms of access to inputs, market access, and profitability. Factors such as currency devaluation, inflation, and trade policies have made it difficult for farmers and processors to operate profitably, while political instability has led to disruptions in supply chains and reduced consumer demand. This is common soon after elections and during election years. The dairy industry was nega- tively impacted by the political and economic crisis that occurred in the country between 2000 and 2008, 2018 and 2020 with many farmers forced to abandon their farms and production levels declining significantly. Therefore, while Dairibord's recent investments in production capabilities are a positive sign for its future prospects, the company needs to carefully manage the risks and challenges it faces. Dairibord should continue to invest in diversification and cost containment measures, streamline its production processes, and engage with key stakeholders in the industry to understand their needs and concerns. By doing so, Dairibord can position itself for long-term growth and success in the Zimbabwean dairy industry. of health benefits. Drinking yoghurt is a form of yoghurt that can be consumed as a beverage, and it has become increasingly popular due to its health benefits and convenience. Dairibord Zimbabwe's Yoggie brand of drinking yoghurt is positioned as a premium product, which is expected to generate higher profit margins compared to the company's other products. The addition of the drinking yoghurt line is part of Dairibord Zimbabwe's strategy to diversify its product portfolio and cater to the growing demand for healthy and nutritious drinks. By entering this new market segment, the company can increase its revenue streams and expand its operations in the global milk industry as well. Dairibord's third blow moulder for Steri milk bottles is an additional machine that the company has acquired to increase its production capacity for Steri milk bottles. Steri milk is Dairibord Zimba- bwe's flagship product and the company's most popular brand of milk. A blow moulder is a machine used in the manufacturing process to produce plastic bottles. By adding a third blow moulder for Steri milk bottles, Dairibord Zimbabwe can increase its production capacity for this product and meet the growing demand for milk in the market. With the additional production capacity, the company can improve efficiency and reduce production costs, which can lead to higher profitability. While the company’s investment in production capabilities and focus on value addition and cost reduction are positive steps, the company needs to focus on cost containment measures to reduce production costs and improve profitability. This includes streamlining production processes, reduc- ing wastage, and optimising inventory management. The global milk market is expected to grow to US$20.13 billion in 2023, presenting several oppor- tunities for Dairibord Zimbabwe to expand its operations and increase its market share. The global dairy market size attained a value of approximately US$523.3 billion in 2022. The market is further expected to grow in the forecast period of 2023-2028 at a CAGR of 3.60%, reach- ing a value of around USD 647 billion by 2028.However, this is not going to be done on an outlook based on recent investments that it expects will boost production. This is despite flagging power outages and high costs of accessing clean water as the giant elephants awaiting in the full year 2023. This is also despite global supply chain disruptions that will inflate raw materials, risk of imported inflation and far worse, and the August elections aftermath which comes with its own huge risks. The company remains optimistic about its prospects even despite disruptions in weather patterns due to climate change. However, the question remains - Is Dairibord's projection spellbinding or mediocre and lacklustre? The bullish trend has already begun with a stellar performance in the first quarter, both in terms of production and profitability. However, will the story continue to be the same? To improve production capabilities, Dairibord Zim- babwe has undertaken various capital investment projects in the full year 2022. These largely include the third Maheu line, drinking yoghurt line, third blow moulder for Steri milk bottles, and a new chilled water plant. These projects are expect- ed to have a positive impact on the company's production capabilities. The third Maheu line is a production line that enables Dairibord Zimbabwe to increase the production of its popular Pfuko brand. Maheu is a traditional African drink made from maize meal and other ingredients, and it is a popular beverage in Zimbabwe and other parts of the continent. Dairibord Zimbabwe's Pfuko brand of Maheu is a well-known and popular product, and the addition of a third Maheu production line will allow the company to increase production capacity for this product. This increase in production capacity is part of Dairibord Zimbabwe's plan to expand its operations and increase its market share in the global milk industry. Dairibord's drinking yoghurt line is a production line that enables the company to produce a new product called Yoggie, which is a premium drink- ing yoghurt. Yoghurt is a dairy product that is fermented with lactic acid bacteria and has a range The largest milk processor listed on the Zim- babwe Stock Exchange (ZSE) Dairibord Zim- babwe Limited has predicted a bullish

The economy is now on track to expand at a 1.4 per cent annualized rate in the second quarter, if June output is flat. That’s faster than the 0.8 per cent pace expected by economists in a Bloomberg survey and the Bank of Canada’s forecast of 1 per cent.- FinancialPost Eskom makes progress in beating load shed- ding Eskom’s transmission infrastructure is concentrated in the inland provinces of Gauteng, Limpopo and Mpumalanga. Speaking at a media briefing yesterday, Ramokgo- pa said transmission infrastructure was the next frontier in the government’s energy action plan to restore supply of electricity and end load shed- ding. “The area that remains vulnerable is transmission. It undermines our ability to bring on board addi- tional capacity. Bringing renewable energy is a challenge,” Ramokgopa said. “Any risk to a grid collapse is not on generation failure, but on transmission failure. With genera- tion stabilising, work must continue to strengthen and expand our national transmission infrastruc- ture.”- IOL Chinese rush to buy Hong Kong insurance, dollars as confidence cracks, yuan weakens Chinese investors are rushing offshore to make dollar deposits and buy Hong Kong insurance in a signal domestic confidence is languishing and that the ailing yuan faces more pressure. The outflows highlight deep-seated concern about the state of China's economy as its much-awaited pandemic recovery stalls. Consumer spending is flagging, the property market and stock markets are in the doldrums and cash is piling up in savings.-Reuters Nigeria’s petrol use falls after end of subsidy, regulator says Nigeria’s average daily petrol consumption has fallen by 28 percent since President Bola Tinubu scrapped a popular but costly subsidy on the fuel at the end of May, data from the industry regula- tor has shown. Average daily petrol consumption fell to 48.43 million litres (13 million gallons) in June, down from the previous average of 66.9 million, accord- ing to figures released to the Reuters news agency by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). A subsidy had kept prices cheap for decades in Africa’s biggest economy, but it became increas- ingly expensive for the country – the government spent $10bn last year – leading to wider deficits and driving up government debt. Subsidy became a national buzzword in January 2012 when then-President Goodluck Jonathan announced the subsidy removal. Fuel prices increased from 65 nairas ($0.14) to 140 nairas ($0.3) per litre and triggered almost two weeks of protests known as #OccupyNigeria, causing Jona- than to reverse the decision. Since the subsidy was ended, a black market in neighbouring Cameroon, Benin and Togo – that relied on petrol smuggled from Nigeria – has collapsed.- Aljazeera 10 million sign up for Meta's Twitter rival app, Threads Meta has unveiled an app called Threads to rival Twitter, targeting users looking for an alternative to the social media platform owned — and frequently changed — by Elon Musk. Threads is billed as a text-based version of Meta's photo-sharing app Instagram that the com- pany says provides "a new, separate space for real-time updates and public conversations." It went live late Wednesday in Apple and Google Android app stores, with CEO Mark Zuckerberg saying 10 million people had signed up in the first seven hours. There were some early glitches, including Zuckerberg's posts — or Threads as they're dubbed — not loading in several places including the United Kingdom, India and Leba- non. But his replies to other users did appear. Threads launched in more than 100 countries — including the U.S., Britain, Australia, Canada and Japan’s largest port hit with ransomware attack Japan’s busiest shipping port said Thursday it would resume operations after a ransomware attack prevented the port from receiving shipping containers for two days. The expected restoration of the Port of Nagoya, a hub for car exports and an engine of the Japanese economy, will ease concerns about any wider eco- nomic fallout from the ransomware attack. The hacking incident began Tuesday when the computer system that handles shipping containers was knocked offline, according to a statement from the Nagoya Harbor Transportation Associa- tion. The hack forced the port to stop handling shipping containers that came to the terminal by trailer, the association said. Ransomware is a type of malicious software that typically locks the computers of a victim organi- zation so that hackers can demand payment. This is the first reported ransomware attack on a Japanese port, and the incident has “created great concerns over the impact on the local economy and supply chain including the auto industry,” Mihoko Matsubara, chief cybersecurity strategist at NTT Corporation, a Japanese telecom firm, told CNN. Japanese media reported that LockBit, a type of ransomware linked with Russian-speaking hackers, was used in the hack. The LockBit cybercriminal group has been prolific in recent weeks, claiming Taiwanese semiconduc- tor giant TSMC as a victim last week (TSMC said one of its hardware suppliers was hacked but the incident had no impact on TSMC’s business oper- ations.) -CNN Interest rate ‘rigger’ wins right to appeal in UK The first trader tried and jailed for "rigging" inter- est rates, Tom Hayes, has won the right to appeal his case after a six-year battle. Mr Hayes, who was sentenced to 11 years in jail in 2015, has been seeking a referral since 2017. He will now have his case referred back to the Court of Appeal. If it rules in his favour, it has the potential to undo not only his own case but that of nine other traders convicted in the UK of rigging rates. Fighting back tears, the former UBS trader said he was "massively relieved". Mr Hayes told the BBC he did not know what to feel as "it has been so, so long". The Criminal Cases Review Commission (CCRC), the body set up to investigate miscarriages of justice, has decided to refer his case back to the Court of Appeal. The CCRC made a provisional decision in 2021 not to refer his case. But two months later the US courts decided the cases against the traders were fundamentally flawed. Mr Hayes served five and a half years in jail and was released in January 2021, still protesting his innocence. A total of 37 traders and brokers on both sides of the Atlantic have been prosecuted by the US Department of Justice and the Serious Fraud Office for "rigging" interest rates.-BBC Canada's economy regains momentum, leav- ing July rate hike on table Canada’s economy regained momentum in the second quarter, reinforcing the case for a July rate hike even as inflation slowed last month. Preliminary data suggest gross domestic product expanded 0.4 per cent in May, Statistics Canada reported Friday in Ottawa, led higher by manufac- turing, wholesale trade and real estate. That followed a flat reading in the previous month, missing expectations for a 0.2 per cent increase in a Bloomberg survey of economists, in part due to a federal workers’ strike. March growth was revised upward to 0.1 per cent. Japan — and has already drawn celebrity users like chef Gordon Ramsay, pop star Shakira and actor Jack Black as well as accounts from Airbnb, Guinness World Records, Netflix, Vogue magazine and other media outlets. - NPR Apple, six other firms meet threshold for strict new EU regulations on market dominance Seven tech giants, including Amazon and Apple, have informed the European Union they meet the threshold to come under landmark new rules to curb their market dominance, Brussels said Tuesday. The firms — Google parent Alphabet, Amazon, Apple, TikTok owner ByteDance, Facebook umbrella Meta, Microsoft and Samsung — said they had revenue and user figures big enough to be classed as "gatekeepers", EU internal market commissioner Thierry Breton said. Under the EU's Digital Markets Act, the desig- nation will subject them to tougher regulation aimed at stopping them from seeking to "lock in users in their ecosystem," Breton said. That involves making messenger services interoperable so users can send messages between different apps, and preventing compa- nies from controlling what apps are pre-in- stalled on phones or directing users to their products. The legislation tries to ensure smaller players will be able to enter the market without Silicon Valley behemoths stomping on them before they get off the ground.- News24 Africa’s giant Kibali mine sets course for next decade Africa’s biggest gold mine, Kibali, stepped up production significantly in the past quarter as part of its planned ramp-up and is well on track to achieve its annual guidance, part owner and operator Barrick Gold reported on Wednes- day. At the same time, successful exploration efforts are anticipated to more than replace reserves depleted by mining again this year. The Democratic Republic of Congo (DRC) mine, which is owned by Barrick and Anglo- Gold Ashanti, is now rolling out its business plan for the next decade, securing its status as one of the company’s elite portfolio of Tier One mines — those capable of producing 500 000 oz or more of gold for at least ten years at a cost below the industry average. In 2023, Kibali is forecast to deliver attribut- able production of 320 000 oz to 360 000 oz for Barrick.-MiningWeekly Latin America’s bonds and currencies lure yield-hungry investors Big asset managers are flocking to Latin Amer- ican bonds and currencies, attracted by the region’s high interest rates, low inflation and more resilient economies than many had expected. Latin America is home to five of the world’s top eight performing currencies this year, which have benefited from the region’s central banks acting early and decisively by raising rates and keeping them high even as inflation recedes. Total returns of local bonds have also surged ahead of their developed market peers, as chunky inflation-adjusted yields draw the atten- tion of investors. “With every month that passes the real yield is getting bigger and bigger,” said Paul Greer, emerging markets debt and FX portfolio man- ager at Fidelity. “So more and more investors want to put their money into Latin American currencies for that reason.” Greer, whose portfolio is overweight in local currency bonds in Brazil, Mexico, Colombia, Peru and Uruguay, said that for both govern- ment debt and pure currency exposure, Latin America is “the place to be”. An exception, he said, was Argentina, which has been cut off from access to international markets after a debt default and where inflation runs at more than 100 per cent.- FinancialTimes Business Around The World The AXiS LXXXIII Fri 07 Jul 2023 21

Zimbabwe would benefit from the stability of the Chinese currency and reduce exchange rate risks, making it easier for Zimbabwean businesses to transact with their Chinese counter- parts. Additionally, the use of nega- tive interest rates could stimulate eco- nomic growth by encouraging increased borrowing and investment. As such, adopting a new currency pegged to the Renminbi, coupled with negative interest rates, could represent a promising path towards revitalizing Zimbabwe's economy. Given Zimbabwe's status as a signifi- cant trade partner of both South Africa and China, the latter of which wields considerable influence through- out the African continent, the adop- tion of the Renminbi as its local cur- rency represents an optimal course of action. Notably, this approach allows Zimbabwe to preserve its dignity, as it would be reluctant to subject itself to the perceived indignity of joining a monetary union with South Africa and adopting the Rand due to considerations of national pride. In light of these factors, China presents itself as a compelling solution. In addition to pegging the currency to the Renminbi, Zimbabwe could also consider the implementation of negative interest rates as a means of curbing inflation. This strategy, which has been successfully employed in other nations, involves depositors paying financial institu- tions to hold their funds, rather than receiving inter- est payments. This incentivizes banks to lend money to individuals and businesses, which can help spur economic growth in the long run. The Zimbabwean financial system is characterized by a significant level of informality, with a large portion of the population having limited access to formal banking services. Consequently, even if neg- ative interest rates were to be introduced, it may not necessarily result in increased lending to busi- nesses and individuals, given that a significant pro- portion of Zimbabweans do not currently have access to formal banking services. Moreover, Zimbabwe's high debt-to-GDP ratio and unstable currency pose significant challenges for banks in terms of lending money at competitive rates, even if negative interest rates were to be implemented. To ensure that negative interest rates are effective, Zimbabwean banks can take steps to encourage deposits from non-bank customers. This could include offering incentives such as higher interest rates in the short run on deposits made by non-bank customers, while also streamlining the account opening process to make it more accessible to those who are currently unbanked. Regrettably, Zimbabwe's debt-to-GDP ratio has escalated to 77.2% from its previous level of 66.2% in December 2019. This implies that the country's outstanding debt is equivalent to more than three-quarters of its annual economic output, which is a cause for concern. A high debt-to-GDP ratio can constrain a country's ability to access credit and can make it more vulnerable to economic shocks, while also potentially leading to higher bor- rowing costs. Furthermore, a high debt-to-GDP ratio can pose significant challenges to the implementation of neg- ative interest rates. In particular, it can make it difficult for banks to lend money at competitive rates, as they may perceive a greater risk of non-re- payment. This, in turn, can limit the effectiveness of negative interest rates in stimulating economic growth and job creation. Therefore, addressing Zim- babwe's debt-to-GDP ratio would likely be neces- sary to facilitate the adoption of negative interest rates as a means of spurring economic growth and reducing inflation. To reduce the high debt-to-GDP ratio in a short period, Zimbabwe would need to undertake a com- prehensive program of fiscal and structural reforms. This could include measures such as reducing gov Politics Around The World UK expanding its powers to sanction Iranian regime Authorities in the UK on Thursday announced plans for a new regime of sanctions against Iran, including expanded powers to target key decision makers in Tehran. The proposals include new criteria for sanctioning individuals and entities, including those implicated in the supply or use of Iranian weapons and mili- tary technologies. The criteria now include activi- ties that undermine regional and international peace, stability and security, or threaten democra- cy, respect for the rule of law and good gover- nance. In addition, they would allow sanctions to be imposed in response to activities hostile to the UK, including threats to people, property or secu- rity. The move follows an increase in attempts by the regime in Tehran to kill or kidnap its enemies outside of Iran. British authorities say they have responded to more than 15 threats in the UK against citizens or other individuals since the beginning of 2022. Iranian intelligence services have also reportedly developed close ties with organized criminal gangs across Europe in an effort to strengthen their networks. “The Iranian regime is oppressing its own people, exporting bloodshed in Ukraine and the Middle East, and threatening to kill and kidnap on UK soil,” Foreign Secretary James Cleverly said. “Today the UK has sent a clear message to the regime: We will not tolerate this malign behavior and we will hold you to account. Our new sanc- tions regime will help to ensure there can be no hiding place for those who seek to do us harm.” -ArabNews Zelensky set to meet Turkey's Erdogan as Ukraine pushes NATO goals President Volodymyr Zelensky is set to hold talks with Turkish leader Recep Tayyip Erdogan on Friday on the latest leg of a tour to push Ukraine's bid to join NATO and secure more weapons from allies. The talks in Istanbul come on the eve of the 500th day since Russian's inva- sion, with Zelensky admitting a widely anticipated Ukrainian counteroffensive was progressing slowly. "But nevertheless, we are advancing, not retreat- ing, like Russians," Zelensky told reporters. "We now have the initiative." The talks with Erdogan -- an important broker in the conflict -- are due to focus on an expiring deal to ship Ukrainian grain across the Black Sea as well as next week's NATO summit. Analysts expect Zelensky to push Erdogan to give a green light for Sweden's NATO membership ahead of the July 11-12 meet in Lithuanian capital Vilnius. Turkey is blocking Sweden's candidacy because of a longstanding dispute about Stock- holm's perceived lax attitude toward alleged Kurd- ish militants living in the Nordic country. - eNCA Brazil’s Jair Bolsonaro is barred from run- ning for office until 2030 Far-right former Brazilian President Jair Bolsonaro was barred Friday from running for office again until 2030 after a panel of judges concluded that he abused his power and cast unfounded doubts on the country’s electronic voting system. The decision upends the 68-year-old’s political future and likely erases any chance for him to regain power. Five judges on the nation’s highest electoral court agreed that Bolsonaro used government communi- cation channels to promote his campaign and sowed distrust about the vote. Two judges voted against the move. “This decision will end Bolsonaro’s chances of being president again, and he knows it,” said Carlos Melo, a political science professor at Insper University in Sao Paulo. “After this, he will try to stay out of jail, elect some of his allies to keep his political capital, but it is very unlikely he will ever return to the presidency.” The case focused on a July 18, 2022, meeting where Bolsonaro used government staffers, the state television chan nel and the presidential palace in Brasilia to tell foreign ambassadors that the country’s electronic voting system was rigged. -CNBC Renamo announces short list for Quelimane – Mozambique Elections The delegation of Mozambique’s main opposition party, Renamo, in the central province of Zambe- zia, has announced a short list of three potential candidates for mayor of the provincial capital, Quelimane, in the municipal elections scheduled for 11 October. The current mayor of Quelimane, Manuel de Araujo, published the short list on Thursday on his Facebook page.Araujo hopes to stand for a further term of office as mayor, a post he has held since 2011. Araujo was a Renamo deputy in the Mozambican parliament, the Assembly of the Republic from 2004 to 2009. But he then defected from Renamo to the second opposition party, the Mozambique Democratic Movement (MDM), and it was as the MDM candidate that he fought and won a mayor- al by-election in Quelimane in 2011. He was re-elected mayor, again on the MDM ticket, in 2013. The MDM wanted to run him as its candidate again in the 2018 municipal elec- tions. Instead, Araujo went back to Renamo, and won the 2018 election as the Renamo candidate. This time there is no guarantee that Araujo will be the candidate. He is challenged by Latifo Xarifo, the current Renamo district political dele- gate in Quelimane, and a former deputy in the Assembly of the Republic. -Club of Mozam- bique Palestinian militant kills Israeli soldier in West Bank, a day after Israel’s military raid in area A Hamas militant on Thursday opened fire near an Israeli settlement in the occupied West Bank, killing an Israeli soldier, a day after Israeli forces withdrew from the largest military operation in the West Bank in two decades. The Palestinian attack- er was shot and killed by Israeli forces, the army said. The shooting came on the heels of the Israeli withdrawal from the nearby Jenin refugee camp after a two-day offensive meant to crack down on Palestinian militants. The operation destroyed the camp’s narrow roads and alleyways, sent thou- sands of people fleeing their homes and killed 12 Palestinians. One Israeli soldier also was killed. Thursday’s shooting near the West Bank settle- ment of Kedumim raised questions about the effectiveness of the Israeli raid, which came after nearly a year and a half of Israeli-Palestinian bloodshed in the area. It also could prompt calls from members of Prime Minister Benjamin Net- anyahu’s far-right government for additional mili- tary incursions.- AP U.S. is expected to announce it will send clus- ter munitions to Ukraine U.S. officials tell NPR that the Biden administra- tion plans to send cluster bombs, or munitions, to Ukraine to target dug-in Russian forces. An announcement is expected tomorrow. The controversial weapons drop dozens of bomblets that human rights groups say endanger civilians. Ukraine and Russia are already using cluster mu- nitions on the battlefield, but Ukraine is running low on ammunition and has pressed the U.S. to send such weapons. Officials say the cluster bombs will be effective against Russian forces in strong defensive posi- tions as well as command and control headquar- ters. More than 100 countries ban such weapons because unexploded bomblets can be picked up by civilians, causing injury or death. Cluster bombs release a larger number of bomblets over a wide area, and they can continue to pose a deadly risk even long after the fighting has ceased. The U.S. has a large stockpile of cluster munitions and used them in both the Afghan and Iraq wars.- NPR US’s Yellen begins China trip aimed at ‘deep- ening communication’ US Treasury Secretary Janet Yellen has arrived in Beijing for the start of a four-day visit that she says aims to deepen communication between the United States and China amid months of simmer- ing tensions. In a series of tweets on Thursday, shortly after she arrived in China’s capital, Yellen said she was “glad” to be there to meet Chinese officials and business leaders. “We seek a healthy economic competition that benefits American workers and firms and to collaborate on global challenges, we will take action to protect our national security when needed, and this trip presents an opportunity to communicate and avoid miscommunication or mis- understanding,” she said. Ties between Beijing and Washington have soured in recent years over a range of issues, from trade and the status of Taiwan to China’s expansive claims in the South China Sea and an ongoing US push against growing Chinese influence in the Indo-Pacific. -Aljazeera UN renews calls for Haiti intervention force, says conditions 'beyond appalling' Representatives of the United Nations on Thursday repeated their plea for an intervention force to stabilize Haiti, highlighting the growing number of extrajudicial killings of suspected gang members as a sign of the crisis-wracked nation's insecurity. Haiti, the Western Hemisphere's poorest nation, has seen compounding humanitarian, political and security crises, with gangs controlling most of the capital and terrorizing the population with frequent kidnappings, rape and murder. For months, UN chief Antonio Guterres and Hai- ti's Prime Minister Ariel Henry have called for an international force to help quell the mounting vio- lence, but there has been little action as no coun- try has stepped up to lead the operation. Without a sufficient security apparatus to combat the rampant gangs, Haitians in the capital Port-au-Prince have begun taking matters into their own hands, UN Haiti envoy Maria Isabel Salvador told the Security Council on Thursday. The UN office in Haiti, known as BINUH, "has documented the killing of at least 264 alleged gang members by vigilante groups," she said, noting the trend as adding "another layer of com- plexity" to the country's security situa- tion.-France24 DRC: at least 8 dead in a new attack in North Kivu At least eight people, including five women and two children, were killed in an attack on Wednes- day in a village in eastern Democratic Republic of Congo (DRC), according to local sources con- tacted by AFP. "Around one o'clock in the morning, eight civil- ians were killed" in Bungushu, in the province of North Kivu, said on condition of anonymity a member of the local Red Cross present on the spot. At least four of them "were killed with axes", he added, adding that the bodies of four others had "been found in toilets" (latrine holes). A member of civil society confirms this assess- ment, also on condition of anonymity. He does not specify the identity of the assailants but declares that Tuesday evening, "elements of the M23 (Movement of March 23, armed group mainly Tutsi) were visible in the city". The Kivu Security Barometer (KST), a network of analysts based in eastern DRC, said on its Twitter account that "the M23 is suspected" of having committed this attack against civilians during "the pursuit of a Nyatura CMC (combatant), a predomi- nantly Hutu armed group operating in the area. Isaac Kibira, an administrative official of the Tongo groupement, in which Bungushu is located, told AFP that "M23 elements made an incursion into the village of Bungushu and massacred the population, more or less nine people lost their life".- Africanews The AXiS LXXXIII Fri 07 Jul 2023 22 limited to hyperinflation, high unemployment rates, and currency instability, among others. Despite multiple attempts by the government to implement policies aimed at curbing inflation, such as the utilization of historically elevated interest rates, the Zimbabwean economy has remained volatile, with three occurrences of hyperinflation since 2008. Against the backdrop of this economic landscape, our researchers have proposed an idea that could serve as a potential solution, namely, the creation of a new currency pegged against the Chinese Renminbi. This would entail Zimbabwe adopting the Ren- minbi as its local currency, which could help mitigate exchange rate risks and currency volatil- ity, while also facilitating transactions between Zimbabwean businesses and their Chinese coun- terparts. Moreover, by pegging the currency to the renminbi, the cost of imports from China could be reduced, thereby stimulating economic growth. Following the de-dollarization process in 2019 and the reintroduction of the Zim Dollar, the Minister of Finance appointed a nine-member panel consisting of academics, bankers, the Gov- ernor and two Deputy Governors of the central bank to form a monetary policy committee. The primary objectives of this panel were to establish a benchmark interest rate and implement infla- tion targeting as Zimbabwe's newly introduced currency was plummeting and consumer prices were surging. However, despite the efforts of this panel, it is clear that the measures imple- mented since 2019 till date have failed to con- trol inflation. As such, this article proposes a new strategy to address the economic challenges facing Zimbabwe. In mid-2022, the central bank even suggested the establishment of a new currency board to revive the ailing Zim Dollar. In July 2022, Zim- babwe implemented a record-breaking bench- mark interest rate of 200%, aimed at curbing inflation. Unfortunately, inflation continues to ravage the economy and even though the interest rates have been set at 150% the current inflation trends will most likely reach the record high of 837.5% in July 2020, indicating that the mea- sures implemented by the Monetary Policy Com- mittee have fallen short of expectations. Zimba- bwe officially adopted recognition of blended inflation as the official inflation rate in February 2022, effectively omitting the computation of ZWL inflation. Based on internal estimates, annual inflation was projected to reach 720% as of June, reflecting hyperinflation. This article proposes the use of a new currency- pegged against the Chinese Renminbi, coupled with the implementation of negative interest rates, as a means of addressing Zimbabwe's eco- nomic challenges. By pegging its currency to the Renminbi,

ZWL INTERBANK Markets watch T notching up 17% gain from ZWL6326.5877 traded last week per dollar. This was a second consecutive gain. This is the biggest appreciation since the Zimbabwe dollar was reintroduced in 2019 and the auction system in 2020. The Zimbabwe dollar gained 9% last week against the greenback and the latest appreciation has taken two-week gains to 26%. From 35 bids last week, number of bids received dropped to 11 and with US$20 million on offer, US$4 million was allotted. A decline in bids and allotted funds means waning demand for the US dollar. This is attributed to the government's fictious efforts to manage liquidity. The Reserve Bank of Zimbabwe and Finance Ministry have been limiting the Zimbabwe dollar liquidity to spur its demand and control inflationary pressures. Money supply has been tightened leading to growing demand for the ailing currency. For the appreciation to remain, the government should not just tighten the money supply but also increase its usage in the system through tax collections. This will increase the circulation of the Zimbabwe dollar in the market. Most taxes are still collected in US dollars and where Zimbabwe dollar component is involved, it is very little. Such a payment system will give the US dollar an upper hand against the Zimbabwe dollar. The auction system has brought a level of transparency to the foreign exchange market, which was previously characterised by a lack of transparency, overvaluation forcing an overreliance on the black market. This has helped to stabilise the Zimbabwean dollar and increase its demand. Regional Markets Rand maintains depreciation streek South African depreciated by 2% week on week to 18.8 this week against the greenback. This was the worst performance in July remaining close to its lowest since June 8th, as the dollar held firm amid concerns over the bleak domestic outlook due to electricity woes. The South African Reserve Bank's models indicated that the energy he Zimbabwe dollar has appreciated to ZWL5395.9619 on the latest auction market held on the 4th of July 2023, crisis may have cut between 0.7 percentage points and 3.2 percentage points off the GDP growth rate in 2022, and is likely to dampen output until at least early 2024. Further losses in the currency were prevented by expectations of further monetary policy tightening in July. South African Reserve Bank Governor Lesetja Kganyago said in an interview that the fight to tame rising prices was delivering results, but stressed the need for a sustained decline in inflation until it reaches the desired target range. South Africa's inflation slowed to a 13-month low of 6.3% in May and is expected to revert to the Reserve Bank’s target range of 3% to 6% either in the second quarter or at the latest in the third quarter. Kwacha offset previous gains The Zambian Kwacha depreciated to 17.85 shedding 3%, offsetting prior week gains when it traded at 17.4 which was a 12% increase. However, it is still close to the 7-year high achieved last week. The recent debt restructuring agreement with China and the West has improved the country's external debt position, which can also have a positive impact on the value of the Kwacha. Also, the rise in copper prices has also been boosting Zambia's foreign reserves and improved its trade balance, which has a positive impact on the value of the Kwacha. Another factor is the improvement in Zambia's economic growth, which has been supported by government policies aimed at promoting investment and diversification. This has attracted foreign investors and increased demand for the Kwacha. Pula decreases to 13.5 From 13.3 last week, the Botswana Pula depre- ciated to 13.5 on the 6th of July 2023. This was a 2% depreciation from last week. One of the factors affecting the Pula is the increase in government spending, which has led to a large fiscal deficit and concerns about the country's debt levels. This has led to a decrease in investor confidence and put pressure on the Pula. Also, the recent decision by the central bank to cut interest rates to stimulate the economy has led to a decrease in the attractiveness of the Pula as an investment option, which can also contribute to its depreciation. Shilling marginally drops on formal market The Kenyan Shilling depreciated by 0.6% week on week on the 6th of July 2023 from 140 against the greenback last week to 140.9 this. Despite being the least depreciation, 140.9 was the worst performance in the Kenyan Shilling’s history. Kenya has a history of trade imbalance, with imports exceeding exports, which puts pressure on the country's foreign exchange reserves and affects the value of the shilling. Also, high levels of public debt and a large fiscal deficit have led to concerns about Kenya's ability to service its debt, which has contributed to the depreciation of the shilling. The recent decision by the Central Bank of Kenya to remove the cap on commercial lending rates has created uncertainty in the banking sector and could have an impact on the value of the shil- ling. Naira depreciates to 774 From 732.8 against the US dollar last week, the Nigerian currency has depreciated further by 5.4% to 577 as the currency continues on a free fall to find its correct position against the dollar. The depreciation of the Nigerian Naira can be attributed to several factors, including the decline in oil prices, which is the country's main source of foreign exchange earnings. As a result, Nigeria's foreign reserves have been depleted, leading to a shortage of foreign currency and making it more expensive to import goods. In addition, the COVID-19 pandemic has had a negative impact on the Nigerian economy, leading to reduced economic activity and a decline in foreign investment. Political instability, insecurity, and weak economic policies have also contributed to the decline of the Naira, creating uncertainty in the market and reducing investor confidence. All of these factors have contributed to the free fall of the Naira. Zim Dollar Maintains Appreciation Streek The AXiS LXXXIII Fri 07 Jul 2023 23

24 The AXiS LXXXIII Fri 07 Jul 2023 ZSE & VFEX WEEKLY COMMENTARY The ZSE opened the month of July in negative territory, reversing prior week's gains as tightened liquidity in the economy weighs on demand. The Central Bank has taken measures to mop-up more than just the excess liquidity in the economy in a bid to curtail inflation and tame the runaway exchange rate. The mainstream ZSE All Share Index slumped -8.83% to close at a 1-month low of 156,728.16 points. Losses were driven by sell-offs in market heavies which saw the ZSE Top 10 Index dwindling -14.96%, outweighing the 14.74% and 9.7% gains in penny stocks and medium caps respectively. The bourse trimmed year-to-date gains to 703.99% in the week under review in nominal terms. However, in US$ terms the ZSE has garnered a mild 1.7% growth since the beginning of the year following the rampant exchange rate loss in May and early June. Meanwhile, the bourse closed the month of June at a monthly nominal return of 58.43%, the second highest in over 14-months. On the downside, the ZSE succumbed to a loss of -29% in June in US$ terms. On the US$ denominated bourse, VFEX, the All Share Index oscillated throughout the week and closed in the negative, shedding off a further -2.36% to settle at 74.97 points. Performance was impacted by uncertainty as we head towards elections, along with the constrained liquidity which drove investors to liquidate portfolios. VFEX was heavily weighed by 6 stocks which countered 1 riser. The bourse closed the week at a month-to-date loss of -1.6% while year-to-date losses stretched to -20.9%. An aggregate of US$1,079,277 exchanged hands on VFEX in the week under review, up from US$938,687 traded in the prior week. On the currency markets, the government's efforts to mop-up excess liquidity have gone in overdrive and this has seen a reduced use of the ZWL. Resultantly, the parallel market has been stable for 2-weeks while official rates have appreciated significantly, thus widening exchange rate premium between the 2 markets, which is a downside. In the week under review, the ZWL gained 17.25% against the US$ on the Auction market to close at ZWL5,395.9619. On the Interbank market, the local unit firmed by 16.38% against the US$ week-on-week to close at ZWL5,412.5484. ZWL INTERBANK ZSE ASI 171,911.82 VFEZ ASI 76.78 ZWL INTERBANK 6,299.3218 171,408.90 76.17 5,739.7961 168,491.91 76.34 5,769.1253 166,809.69 75.02 5,812.1353 162,840.11 75.37 5,395.9619 156,728.16 74.97 5,412.5484 -8.83% -2.36% 16.38% ZSE TOP 10 94,277.71 MEDIUM CAP INDEX 427,532.12 SMALL CAP INDEX 1,911,321.08 93,034.57 436,363.92 1,911,327.14 90,448.05 443,200.33 2,085,302.96 88,617.51 452,115.42 2,193,037.49 84,766.93 466,499.54 2,193,037.49 80,176.59 468,982.25 2,193,037.49 -14.96% 9.70% 14.74%

The AXiS LXXXIII Fri 07 Jul 2023 25 Copper (US$/t) Copper prices exhibited a mixed performance during the week, with a slight week-on-week increase and a marginal year-to-date decline. Starting at US$8,316 per ton last Friday, copper prices edged up to US$8,371 per ton today, representing a modest week-on-week gain of 0.66%. However, on a year-to-date basis, copper prices have experienced a slight dip of 0.02%. The week's copper price move- ments were influenced by a combination of factors. Uncertainties stemming from the ongoing pandemic and geopolitical tensions weighed on copper prices, causing some downward pressure. However, these declines were offset by improving global economic conditions and robust demand from China, which provided support to copper prices. Aluminium (US$/t) Aluminium prices experienced a slight decline in the week ending on Friday, with a week-on-week decrease of 0.28%. The metal, which had been trading at US$2,152 per metric ton the previous Friday, dropped to US$2,146 per metric ton. On a year-to-date basis, aluminium prices have witnessed a significant decrease of 9.78%. This decline can be primarily attributed to the lingering impact of the COVID-19 pandemic, which has disrupted supply chains and dampened demand across various sectors. Additionally, concerns over the efficacy of stimulus measures and the pace of economic rebound have also contributed to the downward pressure on aluminium prices. Despite the week-on-week decrease and the YTD decline, it is important to note that aluminium prices remain rela- tively stable compared to other commodities. Nickel (US$/t) Nickel prices exhibited a mixed performance over the past week, as global economic concerns and a strengthening US dollar weighed on the market. The metal saw a modest week-on-week increase of 1.40%, rising from US$20,516 per metric ton last Friday to US$20,804 per metric ton this Friday. Despite this gain, nickel prices remain under significant pressure, with a year-to-date decline of 30.76%. Ongoing supply cuts and increasing demand have provided some support to nickel prices. However, uncertainties surrounding the global economic recovery, geopolitical tensions, and the impact of the COVID-19 pandemic continue to pose challenges for the market. Analysts suggest that the overall trend for nickel prices is likely to remain upward, driven by demand from the electric vehicle industry and infrastructure projects in emerging markets. Brent(US$/t) Brent oil prices demonstrated a mixed perfor- mance this week, as they witnessed a notable week-on-week surge of 4.77%, climbing from US$75 per barrel to US$78 per barrel. This rise provided a temporary relief for the commodity. However, on a year-to-date basis, Brent oil prices experienced a significant decline of 8.66%, reflecting the ongoing challenges faced by the global oil market. The fluctuating nature of oil prices continues to be influenced by various factors, including geopolitical tensions and con- cerns over global energy demand. Amidst these uncertainties, market participants closely monitor developments to gauge the future trajectory of Brent oil prices. Weekly Commodity Pulse Gold (US$/oz) Spot gold prices experienced a marginal increase of 0.16% week-on-week, closing at US$ 1,933 per ounce this Friday. This rise comes as the US dollar strength- ened and concerns over possible interest rate hikes by the Federal Reserve weighed on the precious metal. However, spot gold prices have shown resilience throughout the year, with a significant year-to-date increase of 5.83%. Investors have turned to gold as a hedge against inflation and economic uncertainties, driving up demand and supporting its upward trajecto- ry. Despite periodic fluctuations, spot gold has main- tained its position as a safe-haven asset amid ongoing geopolitical tensions and the persistent threat of the COVID-19 pandemic. Platinum (US$/oz) Platinum prices showed a modest rebound this week, edging up from US$913 per ounce last Friday to US$919 this Friday. This week-on-week increase of 0.58% provided a slight respite for the metal, which has been grappling with a challenging year so far. Year-to-date, platinum prices have experienced a signif- icant decline of 15.18%. The precious metal has strug- gled to gain momentum amid a stronger US dollar and concerns over the potential tapering of the Federal Reserve's bond-buying program. Additionally, ongoing uncertainties surrounding the pandemic and geopolitical tensions have weighed on investor sentiment, suppress- ing demand for platinum. However, some market participants remain cautiously hopeful about the long-term prospects for platinum, citing its usage in the burgeoning hydrogen fuel cell industry as a poten- tial driver of demand. 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-Jun-23 1,929 3-Jul-23 1,930 4-Jul-23 1,934 5-Jul-23 1,927 6-Jul-23 1,915 7-Jul-23 1,933 WoW 0.16% YTD 5.83% 1,900 1,925 1,950 1,975 2,000 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23 1,082.90 Daily % Change 30-Jun-23 913 3-Jul-23 916 4-Jul-23 926 5-Jul-23 925 6-Jul-23 910 7-Jul-23 919 WoW 0.58% YTD -15.18% 880 930 980 1,030 1,080 1,130 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23 8,372.00 Daily 30-Jun-23 8,316 3-Jul-23 8,398 4-Jul-23 8,360 5-Jul-23 8,319 6-Jul-23 8,262 7-Jul-23 8,371 WoW 0.66% YTD -0.02% 7,800 8,000 8,200 8,400 8,600 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23 30,048 Daily % Change 30-Jun-23 20,516 3-Jul-23 20,580 4-Jul-23 20,508 5-Jul-23 21,207 6-Jul-23 21,209 7-Jul-23 20,804 WoW 1.40% YTD -30.76% 20,000 21,000 22,000 23,000 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23 85.91 Daily % Change 30-Jun-23 75 3-Jul-23 75 4-Jul-23 76 5-Jul-23 77 6-Jul-23 77 7-Jul-23 78 WoW 4.77% YTD -8.66% 70 73 75 78 80 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23 2,378 Daily % Change 30-Jun-23 2,152 3-Jul-23 2,158 4-Jul-23 2,168 5-Jul-23 2,143 6-Jul-23 2,129 7-Jul-23 2,146 WoW -0.28% YTD -9.78% 2,000 2,100 2,200 2,300 2,400 26-May-23 1-Jun-23 7-Jun-23 13-Jun-23 19-Jun-23 25-Jun-23 1-Jul-23 7-Jul-23

FINANCIAL MARKETS AT A GLANCE 2023 ZSE All Share Index ZSE Top 10 Index ZSE Small Cap Index Interbank Market Rate 8049.1 -0.18% 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 200000 3400 1929477.67 256280 288916.95 45807.47 268000 1710 85532.05 21586.95 194414.69 679.63 55735 130000 194096 2965 1548795 256280 310048.11 53500 268700 1710 130000 25896.77 194414.69 631.24 65000 141848.89 Latest Price ZWL Cents Previous Week ZWL Cents EDGARS NTS RTG TRUWORTHS 10895 1850 8485 1015 9977.78 1850 11865 1165 Ecocash ECONET ZIMPAPERS 19914.29 72941.54 1300 21000 88142.61 1000 MASHHOLD FMP 10999.21 10000 11000 11000 ARTZDR LAFARGE PROPLASTICS TURNALL Willdale RioZim 6900 14375 45000 1300 1888.8 42300 6000 14375 44298.25 1150 1916.67 42300 CBZ FBCH FIDELITY FML GBFS NMBZ ZBFH ZHL 110355 119958.69 9200 23855 3800 26551.38 74700 10000 211385 139995 7245 14135 3850 24840 64825 9957 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 FML BAT CAFCA RTG MASIMBA 23855 1929477.67 251060.91 11865 73700 11560 582702.67 74490.91 3385 17954.55 CBZ MEIKLES ECONET FBCH TSL 110355 85532.05 72941.54 119958.69 55735 -138330 -28413.4 -15206.87 -20031.31 -9265 94% 43% 42% 40% 32% -56% -25% -17% -14% -14.3% 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 5,412.5484 16.38% 2,193,037.49 14.74% 80,176.59 -14.96% 156,728.16 -8.83% 75909.5 1.36% COUNTER PRICE CENTS CHANGE % CHANGE % CHANGE 61523.57 2.35% 8238.86 -0.11% 156728.16 80176.59 ZSE Top 10 Index All Share index ZSE Top10 index WOW -14% MOM 37% YTD 551% 156728.16 259006.41 ZSE Financials Sector All Share index ZSE Financials index WOW -26% MOM 173% YTD 803% 156728.16 197122.88 ZSE IndustrialsIndex (New) All Share index ZSE Industrials Index (new) WOW 28% MOM 132% YTD 826% 156728.16 145801.65 ZSE Real Estate Index All Share index ZSE Real Estate Index WOW -8.3% MOM 154% YTD 722% 8049.1 156728.16 BSE All Share Index BSE All Share index WOW -0.2% MOM 0.1% YTD 4.2% 156728.16 2193037.5 ZSE Small Cap Index All Share index Small Cap index WOW 14.7% MOM 124% YTD 385% 156728.16 448641.31 ZSE Consumer Discretionary Index All Share index ZSE Consumer Discretionary index WOW 27% MOM 118% YTD 1164% 156728.16 113047.56 ZSE ICT Index All Share index ZSE ICT Index WOW -15% MOM 26% YTD 545% -64.3% 64% Interbank Market Interbank All Share index 8238.86 156728.16 LUSE All Share Index LUSE All Share index WOW -0.1% MOM 1.1% YTD 12.3% 61523.57 156728.16 NGSE All Share Index NGSE All Share index WOW 2.4% MOM 16.1% YTD 20% 75909.5 156728.16 JSE All Share Index JSE All Share index WOW 1.4% MOM -0.9% YTD 3.9% 156728.16 69682.65 ZSE Materials Index All Share index ZSE Materials Index WOW 2.7% MOM 44% YTD 412% 156728.16 203427.69 ZSE Consumer Staples Index All Share index ZSE Consumers Staples index WOW -4% MOM 49% YTD 733% 156728.16 468982.25 ZSE Medium Cap Index All Share index Medium Cap index WOW 9.7% MOM 168% YTD 1180%

Regional Economic Watch Knowles said it was not just, proportionate or necessary to strike out the complex case, which encompasses 11 sets of proceedings, three months before a London trial scheduled to start on Oct. 2.But he warned: “At trial, all alternatives, including to strike out and in whole or in part, remain available.” The tuna bond or “hidden debt” case has triggered litigation from Maputo to New York, but the London case is due to establish whether one of the world’s poorest countries can revoke a sovereign guarantee on a loan it alleges was corruptly procured, and secure compensation for other alleged wrongdoing.The case dates back to 2013 and three deals between state-owned Mozambican companies and shipbuilder Privinvest – funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees – ostensibly to develop the fishing industry and for maritime security. But hundreds of millions of dollars went missing and, when the state loan guarantees became public in 2016, donors such as the International Monetary Fund halted support, triggering a currency collapse and debt crisis.The judge first raised the prospect of a strike-out in March, when he ordered Mozambique to ensure access to relevant documents in state offices such as the Office of President and SISE, the state security service. Credit Suisse, UAE-Lebanese Privinvest and others argue that a lack of “adequate” disclosure jeopardised a fair trial.Under English litigation rules, each party has to disclose documents on which they rely for their case, those that might damage their own case and those that support the case of others.A spokesperson for Credit Suisse said the bank “continues to defend itself”. Privinvest did not immediately respond to a request for comment. NIGERIA Nigeria will save more than 21 trillion naira ($28 billion) in two years after scrapping gasoline subsidies and allowing its currency to weaken, according to the World Bank. The savings will help President Bola Tinubu’s government cut its record fiscal deficit and a debt-service burden that surpassed revenue in 2022, the Washington-based lender said in a report. The budget shortfall will narrow to 3.9% of gross domestic product by 2025 from 5.1% this year, according to the report. Scrapping the fuel cap will enable Nigeria’s state oil company to export crude instead of setting it aside to pay for the subsidies. Easing foreign-exchange controls will help the government convert overseas earnings at market prices rather than at “overvalued” rates, the bank said. It forecast Africa’s biggest economy will expand 4% from 2024 should it implement urgently required reforms. The continent’s most populous nation has for years resisted calls by the World Bank to do away with its costly gasoline subsidies and myriad exchange rates that have stymied growth.Africa’s largest crude producer should take further steps to increase non-oil revenue, lower inflation and expand the social safety net to protect the poor and most vulnerable, the World Bank said. ZAMBIA Zambia expects to decide on an investor to take over Mopani Copper Mines by the end of this month from a shortlist of four companies, the country’s Finance and National Planning Minister said.China’s Zijin Mining Group, Norinco Group, Sibanye Stillwater and an investment vehicle owned by ex-Glencore officials are short-listed to buy Mopani, Reuters reported last week. Right now, they are being asked to put in their last, final bids,” with the selection of one investor expected by the end of July, Situmbeko Musokotwane said in an interview on state-owned Zambia National Broadcasting Corp on Sunday. Zambia’s majority state-owned ZCCM Investments Holdings agreed in January 2021 to buy Mopani from Glencore for $1 and $1.5 billion in debt, which it has yet to pay.The government expects a similar time frame for a resolution for Konkola Copper Mines, Musokotwane said. Vedanta Resources is bogged down in legal challenges with the Zambian government over its ownership of Konkola, which dates back to 2019.Zambia is Africa’s second-largest copper producer and targets to more than triple its annual production to 3 million tons by 2031. KENYA Local Manufacturers of edible oil are proposing a raft of measures to lower the cost of cooking oil and protect the industry from imports creating uneven competition.An estimated Sh100 billion(US$7.5 million)in capital has been invested in the sector that has a combined installed processing capacity of 7,160 metric tonnes per day. The current market demand and consumption is about 800,000 metric tonne underscoring the sectors commitment to a robust manufacturing agenda and local economic growth.In recent past, the cost of cooking oil has skyrocketed leaving many consumers with limited option on the commodity. In a statement, players in the industry through umbrella body, The Kenya Association of Manufacturers defended the price adjustment saying it is a consequence of global price trends. UGANDA Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of U.S. firm General Electric GE.N lapsed over its failure to mobilise financing in time, its energy and mining ministry said.The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025. In a statement late on Monday, the ministry said the government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering and design and environmental impact assessment.However, the ministry added, there were still “a number of outstanding aspects, including mobilisation of financing for the project.”“The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,” the ministry said. Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.That agreement expired on June 30 without the consortium securing necessary financing for the project. SENEGAL Senegal President Macky Sall will not run for reelection next year, he said in a speech on Monday, ending widespread speculation that he would seek a third term his critics said would have been illegal.Rumours that Sall would try to extend his stay in power have fuelled bouts of unrest since 2021 in which dozens have been killed, shaking Senegal’s reputation for calm in a restive region. “There has been much speculation and commentary on my eventual candidature on this election,” Sall said in a televised speech. “The 2019 term was my second and last term.” “My decision, carefully considered… is not to run as a candidate in the upcoming election on Feb. 25, 2024. And this, even though the constitution grants me the right,” he said.Sall’s announcement will likely quell fears of a democratic backslide in Senegal.Some had worried he would follow other regional leaders, including in Ivory Coast and Togo, who used changes to the constitution as an excuse to reset their mandate and extend their hold on power.Regional leaders including the presidents of Niger, Mohamed Bazoum, Guinea Bissau’s Umaro Sissoco Embalo, and the African Union Commission Chairperson Moussa Faki Mahamat, praised Sall’s decision, while Bazoum added that it will ease tensions.Sall’sdecision will trigger a search for a successor to lead the ruling party just months before the February polls. It is unclear who will run for many of the main parties. MOZAMBIQUE Mozambique’s blockbuster lawsuit against Credit Suisse UBSG.S and others over the $2 billion “tuna bond” scandal can proceed to trial, a London judge ruled on Monday, despite complaints that the African nation has failed to fully disclose documents.High Court Judge Robin The AXiS LXXXIII Fri 07 Jul 2023 27