The AXiS CCXVIII (218)

#Issue : CCXVIII fifffflffiflZimbabwe Breaks Maize RecordSurplus Changes the DownstreamManufacturing Crisis WidensZimbabwe Pushes Debt Clearance DealZimbabwe Brings Crypto Into LawCaledonia Finds Larger Gold Zone..........................................................................................................................................................................................................................................................................................................................................................................................................................

In Focus0406MarketsWorld NewsZSE & VFEX Weekly Markets Dashboard1920212281011Zimbabwe's Diesel Dependency : 17% of Export Earnings at the PumpThe US$150 Million Question : Why The AfDB Loan MattersCrypto Policy Shift : Zim Regulatory Turning PointEconomic News and AnalysisZimbabwe Confirms Historic Harvest : 40-Year Maize Record ShatteredLocal Manufacturing Struggles : Import Reliance DeepensBusiness Around the WorldPolitics Around the WorldRegional Economic Watch171823Theequityaxis.net @equity axis @equity axis zimbabwe @equity axis @equity axis @equity axis 08677 197 791 @ aaronc[at]equityaxis.netEQUITY AXISFinancial Insights at your FingertipsWeekly Commodity PulseMarkets WatchZSE & VFEX WeeklyFinancial Markets At a GlanceThe AXiS CCXVIII Jun 2026Cover PagePage 11Page 11Page 19Capital Markets 131415PPC Zim Declares Historic DividendBeyond Bilboes :Motapa Expands Caledonia's Gold VisionMasimba Q1 Earnings Climb : Profit Grows 12%ZSE ASI VFEX ASI ZWG INTERBANK RATE 05/0608/0609/0610/0611/0612/0605/0608/0609/0610/0611/0612/0605/0608/0609/0610/0611/0612/06388.60 233.57 26.79397.15 236.77 26.80400.40 235.28 26.77397.30 238.02 26.78399.75 239.23 26.78404.30 234.99 26.774.04% 0.61% 0.02%ZSE TOP 10 INDEX 383.26 MEDIUM CAP INDEX 438.79 ZSE TOP 25 INDEX 417.55393.57 439.98 427.16397.39 440.85 431.08394.49 436.69 427.95396.25 442.34 431.04402.83 438.13 436.1705/0608/0609/0610/0611/0612/065.11% 05/0608/0609/0610/0611/0612/06-0.15% 05/0608/0609/0610/0611/0612/064.46%

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*To Page 5imbabwe has just confirmed its highest maize harvest since the 1984/85 Season . Maize harvest has risen from 2,341,857 metric tonnes presented during the 16th Post-Cabinet Briefing to 2,824,110 metric tonnes confirmed at the 18th Post-Cabinet Briefing on 9 June 2026, an upward revision of 482,253 metric tonnes or 20.6% as enumera- tion of the country's 1,928,505 harvested hect- ares reached completion. The revision was presented by Agriculture Minister Dr. Anxious Masuka alongside a confirmed strategic grain reserve surplus of between 550,945 and 964,945 metric tonnes above national con- sumption requirements, the largest documented post-dollarisation grain reserve position Zimba- bwe has assembled.The 2021/22 marketing year corn crop of 2.7 million metric tonnes was confirmed by the USDA Foreign Agricultural Service as Zimba- bwe's largest corn crop since the 1984/85 mar- keting year, a production milestone that stood as the post-independence era benchmark for over forty years. FY2025's confirmed 2,824,110 metric tonnes has now surpassed that figure. What Zimbabwe has produced in the season ending April 2026 is not merely its largest harvest in the post-land-reform era. It is its larg- est harvest in four decades, from a smallholder and emerging commercial farmer base that did not exist in its current form when Zimbabwe last produced at this scale.The Historical LensZimbabwe experienced a boom in smallholder maize and cotton production by the mid-1980s, was touted as a miracle that should be replicat- ed elsewhere, succeeded in producing food surpluses in most years, and became known as the food basket of southern Africa. Since inde- pendence in 1980, Zimbabwe had been a net exporter of maize mainly to neighbouring coun- tries, except during the drought years of 1984, 1992, and 1993, with maize exports peaking at 731,000 tonnes in 1990. That export surplus economy, built on large-scale commercial farm- ing with irrigation, mechanisation, and access to international seed and fertiliser markets, was dismantled progressively from 2002 onward as the fast-track land reform programme restruc- tured the agricultural base and production collapsed toward the 525,000 metric tonne trough recorded in FY2008.The eighteen-year production series from FY2008 through FY2025 documents the recov- ery from that collapse. From 525,000 metric tonnes in FY2008, Zimbabwe's maize produc- tion gradually recovered before hitting repeated weather-related reversals: FY2016's 512,000 metric tonne drought collapse, the FY2023 El Niño trough at 635,000 metric tonnes, and FY2024's partial recovery to 1,082,000 metric tonnes. ZimStat's post-harvest survey for the season ending April 2025 confirmed maize production of approximately 1,819,818 metric tonnes, marking a significant rise from the prior year's 634,699 metric tonnes. The FY2025 con- firmed figure of 2,824,110 metric tonnes now extends that recovery to its highest documented expression since the 1984/85 season, achieved not by large-scale commercial farming with irrigation and mechanisation but by approxi- mately 1.8 million Pfumvudza smallholder households farming conservation agriculture plots under predominantly rainfed conditions.What the USDA SaysThe USDA Foreign Agricultural Service's most recent Zimbabwe Grain and Feed Annual, pub- lished in June 2026, provides the international benchmark against which Zimbabwe's official figures must be read, and the divergence between the two sources is analytically signifi- cant rather than merely a statistical footnote. The USDA estimates Zimbabwe's harvested maize area for the 2025/26 marketing year at approximately 1 million hectares, with a projec- tion that harvested area will rise to 1.4 million hectares in the coming 2026/27 marketing year. Zimbabwe's official Cabinet briefing confirms 1,928,505 harvested hectares for the same season, nearly double the USDA estimate.The USDA estimates Zimbabwe's total domes- tic demand for corn in the 2025/26 marketing year at 2.2 million metric tonnes, reflecting growth in both human consumption and feed demand, with feed corn requirements reaching 450,000 metric tonnes driven by growth in beef, dairy, broiler, and egg production. On this figure, the USDA and Zimbabwe's government are in agreement, both anchoring the national con- sumption requirement at approximately 2.2 million metric tonnes. The divergence is entirely on the supply side: the USDA's harvested area estimate of 1 million hectares at a yield of approximately 1.4 tonnes per hectare implies a production estimate of approximately 1.4 million metric tonnes, roughly half of Zimbabwe's official 2,824,110 metric tonne figure.The explanation for the divergence is method- ological rather than political. The USDA's Zim- babwe estimates are constructed primarily from satellite imagery analysis, formal market procurement data, and large-scale farmer surveys that systematically undercount smallholder Pfumvudza production because the con- servation agriculture plots are small, dispersed, and not concentrated in the commercially moni- tored zones that provide the primary data inputs for USDA's remote sensing methodology. Zimbabwe's FY2025 harvest of 2,824,110 metric tonnes is its national record in four decades but must be placed within a SADC regional agricultural season that has delivered exceptional results across multiple producing countries simultaneously. Zambia recorded its own record national maize harvest of approxi- mately 4.9 million metric tonnes in the 2024/25 season, more than double its own national con- sumption requirement and sufficient to generate exportable surpluses of approximately 2.49 million metric tonnes. South Africa, the region's dominant maize producer, confirmed a bumper harvest of 17.064 million metric tonnes, its sec- ond-largest on record. The USDA projects that most of Zimbabwe's corn imports in 2026/27 will originate from South Africa, which has approxi- mately 3 million metric tonnes available for export, and possibly Zambia with an estimated 1 million tonne surplus.The SADC surplus cycle that has produced Zimbabwe's reserve accumulation opportunity is itself a weather-dependent phenomenon. The La Niña conditions that delivered above-normal rainfall across southern Africa's main cropping zones through the 2024/25 and 2025/26 sea- sons are the same conditions that, when they reverse into El Niño, produce the production collapses that Zimbabwe has experienced in FY2016, FY2019, FY2020, and FY2023. The regional bumper harvest that has suppressed maize import prices and given Zimbabwe's GMB procurement programme favourable sourcing conditions is a temporary condition rather than a structural one.The Irrigation GapThe structural vulnerability embedded in Zimba- bwe's record maize harvest is most precisely stated in a single comparison. Zimbabwe harvested maize from 1,928,505 hectares in Zim Confirms Historic HarvestThe AXiS CCXVIII Friday 12 Jun 2026 440-Year Maize Record ShatteredZ

The AXiS CCXVIII Friday 12 Jun 2026 5*To Page 6year ago, CZI’s research findings on Zimbabwe's manufacturing sector cen- tred on one complexity of a country with established industrial capacity running at barely half its potential, while simultaneously spending more than USD10 billion per year importing goods that domestic factories could, in principle, produce. Fast-forward, the 2025 CZI’s survey on the manufacturing sector which has been partly published (pending the full report’s publi- cation) appears to not resolve that paradox. Rather, it quantifies it with greater granularity, and introduces a new question that last year's findings did not fully pose: what would it actually cost to produce key inputs locally, at what volume does domestic production become price-competitive with importation, and what structural investments are required to cross that threshold?A notable finding of the 2025 survey is the aggregate import dependence level of 54% of raw materials sourced externally, up from 52% in 2023. That two-percentage point increase in two years, against a backdrop of capacity utili- sation declining from 53.2% in 2023 to 52.3% in 2024 before dropping further to 47.7% in the first quarter of 2025, confirms a dynamic I described in last year's publication in the Axis (titled “Manufacturing Sector Sluggish Despite More Investment”) as a structural feedback loop rather than a cyclical dip. The loop runs as follows; undercapitalised factories cannot com- pete on quality with imported finished goods, reduced demand for local output depresses investment in local raw material production, scarce local inputs force manufacturers toward imports, and reliance on imported inputs raises unit production costs, which further reduces competitiveness. The 2025 research confirms the loop is tightening, not loosening. Capacity utilisation recovered to approximately 57% in the first quarter of 2026, but that recovery is sourced largely from tobacco-related demand and seasonal effects rather than from structural improvement in the manufacturing cost base.At subsector-level, paper and paper products, the category that encompasses the entirety of Nampak Zimbabwe's corrugated, carton, and packaging manufacturing, sources 72% of raw materials via import. Rubber and plastics, which includes Mega Pak's PET preforms, HDPE bottles, and injection-moulded closures, sits at 71%. Both subsectors are therefore operating primarily as conversion businesses which import intermediate and semi-processed inputs, add a final manufacturing step within ZimbaLocal Manufacturing StrugglesImport Reliance Deepens FY2025. Zimbabwe has the potential to irrigate 366,000 hectares, of which the equipped area is 181,000 hectares, while the equipped area that is actually irrigated is only 124,000 hectares. Even using the most gener- ous available estimate of currently irrigated agri- cultural land, the irrigated share of Zimbabwe's FY2025 maize harvest area was at most 6.4%. The remaining 93.6% of the harvested area was rainfed. Zimbabwe's national maize record was built almost entirely on rainfall that happened to be exceptionally favourable.Zimbabwe aims to develop 496,000 hectares under irrigation by 2030 to reduce reliance on rain-fed farming, a key pillar of its National Development Strategy, with ZINWA earmarking 4,040 hectares for irrigation development from 2026 to 2030. The ambition is correctly identi- fied and the 496,000 hectare target, if achieved, would represent a fourfold increase in actual irrigated area. The ZINWA commitment of 4,040 hectares for the 2026 to 2030 period represents 0.8% of the target, a pace of delivery that, main- tained consistently, would take 120 years to reach 496,000 hectares. The gap between the target's ambition and the delivery programme's scale is the most important governance chal- lenge in Zimbabwe's agricultural sector, and the FY2025 record harvest must not be allowed to obscure it.Agriculture Minister, Anxious Masuka has acknowledged that conservative climate models predict a potential 33% reduction in yield for rain-fed maize production, Zimbabwe's staple crop, by 2050. At Zimbabwe's current FY2025 yield of approximately 1.46 tonnes per hectare, a 33% reduction produces a yield of approxi- mately 0.98 tonnes per hectare. Applied to the FY2025 harvested area of 1,928,505 hectares, that yield reduction alone would cost Zimbabwe approximately 929,000 metric tonnes of produc- tion from the same land area, eliminating the entire FY2025 surplus and converting it into a deficit of 305,000 metric tonnes. That scenario is the 2050 baseline, not the worst case, and it is the reason irrigation expansion is not merely a development aspiration but a food security imperative whose urgency the 2026/27 El Niño probability at 80% has advanced from 2050 to the immediately forthcoming season.National dam levels remain above 93%, with most dams in Masvingo and Matabeleland South provinces now at 100% capacity, placing the country in a strong position to support irriga- tion-based winter wheat production, with approximately 80% of anticipated wheat hectarage relying on irrigation. The dam levels that have produced optimal conditions for the FY2026 winter wheat programme are them- selves the residual storage from the La Niña rainfall that produced the FY2025 maize record. When El Niño reduces rainfall, it reduces dam inflow, which reduces irrigation water alloca- tions, which reduces the irrigated crop area that dam-dependent farmers can plant. The 2026/27 El Niño risk therefore threatens not only the FY2026 rainfed maize crop that will be planted in October 2026 but also the dam-dependent irrigation schemes that supply the winter wheat programme that Cabinet is currently scaling.The Pfumvudza Achievement and Its LimitationThe Pfumvudza model, a holistic farming approach that moves away from rain-fed, large-scale ploughing to a more precise, inten- sive, and conservation-based approach, has been widely credited with helping Zimbabwe avert food shortages during recent droughts and is a cornerstone of the country's national food security strategy. The FY2025 harvest con- firms that the Pfumvudza methodology, deployed at scale across approximately 1.8 million smallholder households, can deliver production volumes approaching the pre-land-reform era's large-scale commercial farming output. That is an agricultural develop- ment achievement whose significance should not be understated.The limitation that the production data simulta- neously confirms is yield. Zimbabwe's national average maize yield of approximately 1.46 tonnes per hectare in its record harvest year compares unfavourably with South Africa's national average of 5.5 to 6.0 tonnes per hect- are, Zambia's average of approximately 2.5 tonnes per hectare in a good season, and the 8 to 12 tonne per hectare yields achievable under fully irrigated, mechanised production with improved seed. Zimbabwe is achieving its record production by planting more land rather than by extracting more value from each hectare. The 1,928,505 harvested hectares that delivered 2,824,110 metric tonnes would have delivered 10,000,000 to 20,000,000 metric tonnes at South African or commercial irrigation yield levels. The produc- tivity gap between Zimbabwe's current perfor- mance and its agronomic potential is a descrip- tion of the irrigation, mechanisation, seed system, and extension service investment that would convert Zimbabwe from a country that celebrates a 2.8 million tonne record into a country that regards 2.8 million tonnes as its floor.The El Niño Warning and What the Reserve Must Now FinanceZimbabwe's strategic grain reserve surplus of 550,945 to 964,945 metric tonnes, built on a harvest that is 93.6% rainfed, is entering a plan- ning period in which Cabinet has confirmed an 80% probability of Super El Niño conditions. The nine preparedness measures adopted, including activating the Africa Risk Capacity sovereign insurance, accelerating irrigation development, duty-free fertiliser importation, and expediting the Sable Chemicals ammonium plant commissioning, represent the correct policy response architecture. Their collective adequacy against a production failure compara- ble to FY2016's 512,000 metric tonnes, which would create a 1,700,000 metric tonne deficit against consumption requirements, is the test that will determine whether FY2025's record represents a genuine step-change in Zimba- bwe's food security resilience or a weather-gift- ed surplus that leaves the underlying structural vulnerability unchanged.*From Page 4A

The AXiS CCXVIII Friday 12 Jun 2026 6 -bwe, and sell the finished product locally. The value addition retained in-country is the conver- sion margin alone, not the full manufacturing chain. In perspective, Nampak Zimbabwe's HY2026 results illustrate the vulnerability of this model precisely as raw materials cost ratio expanded from 53.3% to 60.2% of revenue in a single six-month period, driven entirely by imported resin and paper price movements that the Group had no capacity to hedge domestical- ly. A business with 72% import dependence on its primary input has, by definition, exported 72% of its cost structure to external commodity markets.Notwithstanding, it is imperative to evaluate what Zimbabwe is capable of sourcing locally, and at what cost. Starting with food inputs, where 59% of raw materials are currently imported, Zimbabwe's agricultural endowment includes maize, wheat, soybeans, sunflower, sorghum, cotton, and sugarcane, all of which are either grown domestically or have demon- strated production history. Statutory Instrument 87 of 2025 mandates that millers and food processors source at least 40% of grain inputs locally from April 2026, rising to 100% by 2028. The economics are favourable in this subsector; at current ZWG26 per dollar exchange rates, locally produced maize grain prices of approxi- mately USD280 per tonne compare competi- tively with South African import prices of approx- imately USD230 to USD260 per tonne inclusive of logistics, when transport costs into Zimbabwe are properly accounted for. At scale, meaning at production volumes that reduce the fixed cost per tonne through larger harvests and consoli- dated logistics, domestic food inputs reach import parity or better when the landed cost of South African grain exceeds approximately USD260 per tonne, which it regularly does during drought years or when South African farmers restrict exports. The food inputs case for import substitution is, therefore, economical- ly viable at current production levels and becomes decisively economic above approxi- mately 70% of domestic consumption being met by local production.It is also important to factor demographic factors in assessing viability of self-dependency as we consider investing in local industry going forward. For perspective, we can consider Nampak as case study to depict other indirect factors in the whole complexity. Zimbabwe's forestry base, centred on the Eastern Highlands pine plantations managed by the Forestry Com- mission and private operators, provides the primary raw material for pulp and paper manu- facturing. Hunyani's historical integration with domestic pulp inputs was progressively weak- ened as the forestry base declined and capital investment in pulping capacity was deferred through two decades of economic disruption. Restoring a domestic pulp supply chain to the 55% to 70% local sourcing threshold that would materially reduce Nampak Zimbabwe's import exposure requires capital investment in pulp processing estimated at between USD80 million and USD150 million for a facility sized to serve Zimbabwe's current paper demand of approxi- mately 120,000 tonnes per year. At current elec- tricity costs of approximately USD0.12 per kilo- watt-hour, a domestic pulp mill would produce at roughly USD420 to USD480 per tonne, against South African and Brazilian kraft pulp landed in Zimbabwe at approximately USD380 to USD420 per tonne. Domestic production is currently 10% to 15% more expensive than imports at present capacity, but that differential inverts above approximately 80% utilisation of a new facility, where fixed cost absorption and economies of scale push the domestic produc- tion cost below the landed import price. The crossover point, where local sourcing becomes cheaper than importing, is a production volume of approximately 90,000 to 100,000 tonnes per year for a single integrated facility. Below that threshold, importing remains the more economi- cally rational choice for individual manufactur- ers acting in isolation, and this is true across different industries.This reveals the core structural failure that last year's research identified but did not fully price. The import-versus-local sourcing decision is not resolvable at the level of the individual firm, but rather a market coordination problem. No single Zimbabwean packaging manufacturer, for example, has sufficient demand to justify a USD100 million investment in domestic pulp or resin capacity. But if the collective demand of all Zimbabwean paper and plastics manufacturers were aggregated, the volume would comfort- ably support such a facility and generate returns above the weighted average cost of capital within five to seven years at current paper and resin prices. The CZI's Manufacturing for Manu- facturers initiative is con- ceptually the correct response to this problem as it treats the manufactur- ing sector's collective inter- mediate goods demand as an investable aggregate rather than as an individual procurement decision. What has not been articu- lated publicly is the institu- tional mechanism for con- verting that collective demand into committed offtake agreements suffi- cient to underwrite project finance for new intermedi- ate goods facilities. Without bankable offtake commit- ments, no development financier will fund a green- field pulp mill or resin plant, and without the plant, man- ufacturers will continue importing, which is the real- ity across industries.The employment findings from the 2025 survey intro- duces an additional dimen- sion that the import depen- dence debate tends to omit. Food production created 16% net employ- ment growth in 2025, alongside 18% output growth and 19% revenue growth, making it simultaneously the most labour-intensive and most economically dynam- ic manufacturing subsector. The sectors with the highest import dependence, textiles at 75% and rubber and plastics at 71%, generated net employment growth of 6% and 5% respectively, significantly below the food production rate. This correlation suggests that reducing import dependence in a subsector is positively associ- ated with employment intensity, likely because a more integrated domestic value chain creates jobs at each processing stage rather than only at the final conversion point. The import bill implication is equally concrete as Zimbabwe's total manufactured goods import bill was approximately USD4.5 billion in 2025 on a total import bill of USD10.1 billion. Reducing manu- factured goods imports by 30%, which is the level achievable through domestic import sub- stitution in food, selected chemicals, basic plas- tics, and agro-processing inputs, would gener- ate foreign exchange savings of approximately USD1.35 billion annually. Against Zimbabwe's average annual import deficit of USD1.6 billion between 2021 and 2024, that single structural shift would effectively close the trade gap with- out requiring any additional export growth.The honest assessment of feasibility requires acknowledging the conditions that must be simultaneously true for this transition to occur. Capital access is the binding constraint, not the absence of strategic intent. Interest rates on local borrowing remain at 35% in ZWG terms, making the internal rate of return on manufac- turing investment difficult to clear above a five-year horizon for most projects. Power reliability, with Q1 2025 showing a decline in capacity utilisation partly attributed to electricity shortages, adds a risk premium to any fixed capital investment. The exchange rate dynamic also matters since, if the ZiG appreciates against the rand as it has in recent quarters, the landed cost of South African imports falls rela- tive to domestic production costs, delaying the crossover point at which local sourcing becomes cheaper. The exchange rate is simul- taneously Zimbabwe's most powerful tool for industrial policy, and its most unpredictable lever. The ZiG's current relative stability is an opportunity to invest in import substitution at a moment when the arithmetic is closer to parity than it has been for a decade. Whether that window remains open long enough for the insti- tutional frameworks, the capital mobilisation, and the policy implementation to converge is the defining question for Zimbabwe's industrial decade.*From Page 5

Zimbabwe's Diesel DependencyThe AXiS CCXVIII Friday 12 Jun 2026 8*To Page 9imbabwe's April 2026 diesel import bill reached USD 132.5 million, a 44.6% increase from March 2026's USD 91.6 million and the highest monthly value recorded from December 2022 through April 2026, according to ZimStat merchandise trade data. April 2026’s record diesel import bill of USD 132.5 million is the clearest statistical confirma- tion yet that Zimbabwe’s economy is growing and expanding at a sustained pace. The sharp 44.6% month-on-month surge and the 55.9% premium over 6 years average reflect height- ened economic activity across mining capital expenditure, industrial production, agricultural logistics and construction, all of which require significantly more energy. Far from signalling distress, the elevated diesel demand demon- strates that real output and investment are accelerating, making reliable and adequate energy supply one of the most critical enablers, and constraints of Zimbabwe’s current growth cycle.This is the highest data point in history. The previous high was USD 115.6 million in November 2024. April 2026's figure exceeds that prior record by USD 16.9 million and exceeds the 6-year average of approximately USD 85 million by USD 47.5 million, a 55.9% premium over the mean that cannot be explained by seasonal demand variation alone. Understanding what drove April's record requires reading four demand channels simulta- neously rather than attributing the surge to any single cause.Diesel imports began recording material values only from December 2022, when USD 15.4 million was captured. From December 2022's USD 15.4 million, imports climbed through early 2023, reaching USD 44.9 million in June 2023 and breaking USD 75 million for the first time in July 2023. From that point, a structural floor established itself progressively higher: the imports held predominantly above USD 65 million through the second half of 2023, above USD 80 million through 2024's stronger months, and above USD 90 million consistently from July 2025 onward. The six-month rolling average, which was below USD 50 million through mid-2023, crossed USD 80 million in early 2024 and has been trending above USD 95 million through the twelve months to April 2026. April's USD 132.5 million sits USD 37 million above that rolling average, confirming it as a structural demand event rather than a gradual trend continuation.The most direct explanation for April 2026's diesel surge was the mining sector's capital expenditure cycle whose scale and breadth the April trade data documented with unusual speci- ficity. The same month that diesel imports hit a series record also recorded USD 23.2 million in self-propelled tunnelling and rock-cutting machinery, the highest single-month value in the 64-months by a factor of fourteen. That coincidence was not incidental. Diesel is the working fuel of underground mining opera- tions without qualification. A mine that imports USD 23.2 million of underground development equipment simultaneously requires diesel to commission that equipment, to run the drill rigs and load-haul-dump vehicles deploying it in development headings, to power the ventilation fans circulating air through the development areas, and to operate the pumping systems managing water ingress in the newly opened drives.Renco gold mine's underground expansion, Arcadia Lithium's underground development feeding the Goromonzi processing plant, Bikita Minerals' preparation for its USD 500 million lithium sulphate processing facility, and Zim- plats' Phase 3 underground expansion across its Ngezi and Selous operations on the Great Dyke are the four major underground capital investment programmes running simultaneous- ly in Zimbabwe's mining sector. Each one consumes diesel at the scale that a commercially operating underground mine requires. When all four are in active develop- ment simultaneously rather than sequentially, the aggregate diesel demand from the mining sector alone describes a step-change in month- ly consumption that the trade data confirms.Surface operations add to the underground diesel requirement rather than substituting for it. The self-propelled bulldozers and excavators category, which reached USD 17.2 million in April 2026 and has been on a sustained upward trend from USD 2.8 million in January 2021, represents surface earthmoving, waste rock handling, and infrastructure development across multiple mining operations simultane- ously. Open-pit stripping at mining operations, road construction for haul routes, site prepara- tion for processing plant expansions, and mate- rials handling across the commissioning Arcadia and Bikita lithium processing plants all consume diesel from surface equipment fleets whose scale and activity level the import data confirms is at the highest point in the measurement series.The Generator EconomyZimbabwe's electricity generation deficit is the diesel demand driver that the monthly trade statistics confirm but that policy discourse con- sistently underestimates in terms of its absolute foreign exchange cost. The Zimbabwe Energy Regulatory Authority's load shedding schedule, which persisted through most of 2025 and into 2026, has created an industrial economy in which diesel generator capacity is not a backup contingency but a primary production infrastruc- ture investment. Companies that cannot absorb the production disruption of scheduled power outages, includ- ing manufacturing plants, commercial cold chain operations, data centres, telecommunica- tions infrastructure, hospitals, and hotels, have invested in generator capacity precisely cali- brated to substitute for the grid power that the national utility cannot guarantee.That generator investment has a monthly fuel cost that appears directly in the diesel import line. A manufacturing plant running a 500kVA diesel generator for six to eight hours per day during scheduled load shedding consumes approximately 150 to 200 litres of diesel per day, or 4,500 to 6,000 litres per month, at a cost of approximately USD 9,400 to USD 12,500 per month at ZERA's April 2026 regulated price of USD 2.09 per litre. Scaled across the formal manufacturing sector, the hotel and hospitality sector, the retail sector, and the telecommunications infrastructure base, generator diesel demand represents hun- dreds of millions of dollars in annual import expenditure that tracks the severity of load shedding rather than the level of economic 17% of Export Earnings at the Pump& AnalysisZ

The AXiS CCXVIII Friday 12 Jun 2026 9*From Page 8 production activity.Masimba Holdings' Q1 2026 trading update identified Ruwa as adversely affected by persistent power cuts that worsened in the period under review, resulting in increased plant breakdowns from the stop-start cycle. That disclosure from a single manufacturing facility confirms the mechanism at a specific operation- al level. Multiplied across the breadth of Zimba- bwe's industrial economy, the aggregate gener- ator diesel demand that worsening load shed- ding produces is precisely the baseline con- sumption floor above which mining expansion, agricultural logistics, and construction sector activity add their incremental demand.The solar energy adoption that April 2026's elevated photovoltaic cell import values confirm is the structural long-term response to generator diesel dependency. Solar installa- tion eliminates a manufacturing plant's generator diesel require- ment and converts a recurring monthly foreign exchange cost into a one-time capital expenditure financed through the same solar import budget, but the transition from generator diesel dependency to solar self-generation takes time, requires investment capital, and operates in parallel with continuing load shedding for the period of transition. In April 2026, the solar transition has reduced but not yet eliminated the generator diesel demand that has been building since the load shedding cycle intensified in 2022.The Agricultural and Logis- tics ChannelApril 2026 also marked the transi- tion from Zimbabwe's main crop- ping season's harvest phase to the post-harvest logistics and winter crop preparation period. Maize harvesting and transport, grain drying and storage operations, seed distribution for the 2026 winter wheat and winter vegetable programmes, and the agricultural machinery fleet's seasonal mainte- nance and redeployment all con- sume diesel in volumes whose aggregate is not trivial in the con- text of a 2025/26 bumper harvest season. Cabinet's May 2026 brief- ings confirmed a maize surplus of approximately 141,857 metric tonnes above consumption requirements, a tobacco crop running 17% ahead of 2025 by volume through Day 60, and a soy- abean crop at a six-year produc- tion record. All of that agricultural output requires diesel-powered logistics: tractors, trailers, grain trucks, drying equipment, and the entire cold chain and distribution infrastructure that moves agricultur- al commodities from farm to silo to processor to export point.The winter crop preparation dimension adds further April-specific diesel demand. Winter wheat and winter vegetable cultivation requires irrigation, and Zimbabwe's irrigation infrastruc- ture, where powered pumping systems are used, runs primarily on diesel or grid electricity. In the months of grid electricity shortage, the irrigation pump that would otherwise run on grid power runs on a diesel generator. The Agricul- ture and Rural Development Authority's winter crop programme and the smallholder irrigation expansion programmes documented in the Cabinet briefings both translate into diesel pump operating hours that the trade data cap- tures as import demand.The Iran War Fuel Price TransmissionThe Iran war's impact on Zimbabwe's diesel import bill operates through two distinct chan- nels that the April data makes measurable. The first channel is the price per litre of diesel imported: elevated crude oil prices from Strait of Hormuz supply disruption risk translate into higher refinery gate prices for diesel, which Zim- babwe pays on every litre imported regardless of the source country. ZERA's March 2026 diesel price adjustment of 16%, which was partially offset by a temporary tax removal in April, reflected the global oil market's Iran war premium transmitted directly into Zimbabwe's regulated pump price structure. At ZERA's April 2026 diesel price of USD 2.09 per litre, Zimba- bwe is paying approximately 23% more per litre than the pre-Iran-war price level that prevailed through most of 2024.The second channel is the volume response: higher diesel prices at the pump in Zimbabwe's key sectors, mining and agriculture, have not suppressed diesel demand because both sec- tors are operating at the highest capital expen- diture intensity in years and because their diesel consumption is tied to production commitments rather than discretionary consumption deci- sions. A mine that has imported USD 23.2 million of underground development equipment cannot slow its development programme to reduce diesel consumption without forfeiting the production outcome that the equipment invest- ment was made to achieve. The Iran war's price channel therefore adds a cost dimension to the April diesel import bill without reducing the volume, producing a combined effect on the import value that is larger than either channel alone.The macro-economic significance of April's diesel import record must be stated precisely. Zimbabwe imported USD 132.5 million of a single fuel product in a single month. At Zimba- bwe's April 2026 total merchandise export value of USD 792.3 million, diesel alone consumed 16.7% of gross export revenue. At the April trade deficit of USD 169.6 million, diesel imports represent 78.1% of the entire monthly shortfall. Phrased differently: if Zimbabwe's diesel import bill returned to its series average of USD 85 million while all other import categories remained constant, the April trade deficit would have been USD 122.1 million rather than USD 169.6 million, a 28% improvement in the trade balance from a single commodity's import normalisation.ZERA's regulations place approximately 39.6% of Zimbabwe's pump fuel price in the taxes, levies, and government charges category. Of April's USD 132.5 million diesel import bill, the implicit tax and levy component, embedded in the pric- ing structure that ZERA applies to the landed cost before setting the pump price, represents a signifi- cant government revenue stream that simultaneously reflects the foreign exchange burden that diesel dependency imposes on the economy's reserve base.The ZiG's reserve backing, which the RBZ has maintained at approx- imately USD 1.4 billion, provides approximately 10.6 months of cover against April's diesel import rate, a ratio that is adequate but whose adequacy compresses directly as diesel import volumes trend higher. The E20 ethanol programme's petrol import displacement, which reduced unleaded petrol imports from USD 53.8 million to USD 32.0 million in the same month, provides a mea- surable structural offset whose policy architecture should be extended to the diesel equivalent through biodiesel blending man- dates that Zimbabwe's sugarcane, jatropha, and used cooking oil resources could partially satisfy. The petrol saving from E20 in April was approximately USD 21.8 million. Against a USD 47.5 million diesel import surplus above the series average, a diesel blending programme achieving even a 10% substitution rate would recover approximately USD 13 million per month in foreign exchange at current import levels.Therefore, April 2026's diesel import is the latest and highest expression of a structural depen- dency that the trade data has been documenting since December 2022 with consistent upward pres- sure. The mining capital cycle will sustain elevated diesel demand through 2026 and into 2027 as the underground development programmes at Renco, Arcadia, Bikita, and Zim- plats maintain production momentum. The generator economy will sustain its floor consumption until Zimbabwe's electricity gener- ation deficit is resolved at a scale and reliability level that allows industrial operators to decom- mission their backup diesel capacity rather than merely supplementing it with solar. And the Iran war's price premium will persist as long as the Strait of Hormuz remains a geopolitical risk vari- able in global crude oil supply logistics. The policy instruments available to reduce Zim- babwe's exposure, solar adoption acceleration, biodiesel blending mandates, electricity genera- tion investment, and fuel tax rationalisation, are each individually insufficient. Their combined and coordinated implementation is the only approach whose scale matches the size of the dependency the April 2026 data has quantified.

The AXiS CCXVIII Friday 12 Jun 2026 10imbabwe's request for a US$150 million loan from the African Development Bank (AfDB) is easy to misunderstand. At first glance, it appears to be just another borrowing operation by a country already carrying a sub- stantial public debt burden. However, the signifi- cance of the proposed facility lies not in its size but in its purpose.The loan represents another step in Zimba- bwe's long-running effort to resolve a debt over- hang that has effectively excluded the country from international capital markets for more than two decades. In economic terms, the US$150 million is less a source of financing than a mechanism for unlocking future financing. It is part of a broader arrears clearance strategy designed to restore relationships with interna- tional creditors, rebuild confidence among development partners, and ultimately reconnect Zimbabwe to global financial markets.The distinction is important because the coun- try's debt challenge is no longer simply about how much it owes. It is increasingly about whether Zimbabwe can regain access to the affordable financing required to sustain eco- nomic transformation.According to the latest Public Debt Report, Zim- babwe remains in debt distress, with accumulat- ed external arrears continuing to weigh heavily on the country's debt sustainability indicators. The report notes that debt resolution and arrears clearance remain central pillars of the government's medium-term financing strategy and economic reform programme.The proposed AfDB facility therefore arrives at a critical moment. For much of the past two decades, Zimbabwe has relied primarily on domestic financing, bilateral support arrange- ments, and limited alternative funding mecha- nisms to bridge investment gaps. While these channels have provided temporary relief, they have not been sufficient to meet the country's long-term infrastructure, industrialisation, energy, and social development requirements.Economic growth requires capital. Roads require capital. Power stations require capital. Water infrastructure requires capital. Industrial expansion requires capital.For countries with normal relations with interna- tional creditors, these resources are often accessed through concessional loans from mul- tilateral institutions, development finance agen- cies, and international bond markets. Zimba- bwe's prolonged arrears situation has largely closed those avenues.This has created a paradox. Zimbabwe pos- sesses significant economic potential supported by abundant mineral resources, a highly edu- cated labour force, strategic regional position- ing, and growing investment opportunities in sectors such as mining, agriculture, renewable energy, tourism, and manufacturing. However the country continues to face financing con- straints that limit its ability to fully exploit these advantages.The AfDB loan should therefore be viewed through the lens of economic re-engagement rather than traditional borrowing.The institution's Transition Support Facility is specifically designed to assist countries seeking to normalise relations with creditors. Unlike con- ventional project loans intended to finance infra- structure or public expenditure, the facility is intended to support the arrears clearance process itself.In essence, Zimbabwe is seeking financing to regain access to financing. While this may appear circular, it reflects a common feature of sovereign debt resolution processes. Countries emerging from prolonged debt distress often require bridge financing to settle overdue obli- gations before larger-scale development fund- ing becomes available.The government's broader objective is signifi- cantly larger than US$150 million. Finance Min- ister Mthuli Ncube has previously indicated that authorities are seeking approximately US$2.5 billion in support from various international part- ners as part of the arrears clearance process. The ultimate goal is to facilitate the restructuring of external obligations estimated at around US$23 billion.Viewed against those figures, the AfDB facility represents only a small component of a much larger financial architecture.However, its importance extends beyond its numerical value. Debt resolution is fundamen- tally about trust. Creditors need assurance that policy reforms are credible, institutions are func- tioning effectively, and macroeconomic man- agement is moving in a sustainable direction. In many respects, the willingness of institutions such as the AfDB and IMF to engage construc- tively with Zimbabwe serves as an external vali- dation of ongoing reform efforts.This is particularly important because success- ful arrears clearance could fundamentally alter Zimbabwe's financing landscape. According to the government's Medium-Term Debt Manage- ment Strategy, the objective is to increase access to concessional external financing while reducing reliance on more expensive borrowing sources. The strategy explicitly links future access to affordable financing with successful implementation of the arrears clearance road- map.Concessional financing matters because it dramatically lowers borrowing costs. A country borrowing from commercial markets may face interest rates several percentage points higher than those available through multilateral devel- opment institutions. Over time, the difference translates into billions of dollars in fiscal savings that can instead be directed towards health, education, infrastructure, and social protection.This is where the economic significance of the US$150 million facility becomes clearer.The facility itself will not transform Zimbabwe's economy. What could transform the economy is what follows if the facility contributes to suc- cessful debt normalisation.The benefits would extend far beyond govern- ment finances. Private sector investment is closely linked to perceptions of sovereign risk. International investors often view sovereign creditworthiness as a proxy for broader eco- nomic stability. When a country is excluded from international financial markets, businesses operating within that country frequently face higher financing costs as well.As sovereign risk declines, private sector access to capital typically improves. Banks gain access to cheaper funding. Foreign investors become more willing to commit long-term capi- tal.Infrastructure partnerships become easier to structure. Export-oriented businesses gain greater confidence in expanding productive capacity.These indirect effects are often more economi- cally significant than the debt restructuring itself. There are already signs that Zimbabwe is attempting to create the policy foundations nec- essary for this transition.The government's engagement with the Interna- tional Monetary Fund under a Staff-Monitored Programme reflects an effort to demonstrate commitment to fiscal discipline, transparency, monetary stability, and structural reforms. The latest debt report identifies the IMF programme as a key milestone within the broader arrears clearance roadmap.The importance of this process cannot be over- stated. Historically, successful sovereign debt resolutions rarely occur through financial engi- neering alone. They are usually accompanied by policy reforms designed to convince credi- tors that future borrowing will remain sustain- able.For Zimbabwe, this means maintaining fiscal discipline, preserving macroeconomic stability, strengthening public financial management sys- tems, improving transparency, and sustaining economic growth. The challenge is that debt resolution is not a single event.It is a process. Progress can take years rather than months. The government's own debt strat- egy projects a multi-stage approach involving arrears clearance, enhanced engagement with international financial institutions, and eventual access to broader development financing mechanisms.This means the US$150 million loan should not be evaluated solely by whether it immediately improves public finances. Instead, the relevant question is whether it advances Zimbabwe toward the next stage of financial normalisation.There are reasons for cautious optimism. Zim- babwe's economic fundamentals have improved in several areas over recent years. Fiscal management has become more disci- plined relative to previous periods. The mining sector continues attracting significant invest- ment. Export performance has strengthened, supported by gold, platinum group metals, lithi- um, tobacco, and other commodities. The intro- duction of the ZiG has also been accompanied by efforts to stabilise monetary conditions.However significant risks remain. Debt distress continues to constrain policy flexibility. External vulnerabilities remain elevated. Global financial conditions remain uncertain. Commodity mar- kets remain volatile. Any deterioration in fiscal discipline or macroeconomic stability could undermine progress achieved through the arrears clearance process.This is why credibility remains the central issue. The proposed AfDB facility is ultimately a vote of confidence in Zimbabwe's willingness to contin- ue implementing reforms and pursuing debt normalisation.For businesses, investors, and economic poli- cymakers, the real significance of the US$150 million lies in what it signals rather than what it funds. It signals that international financial insti- tutions remain willing to engage. It signals that debt resolution discussions are progressing. It signals that Zimbabwe's re-engagement agenda continues to move forward. Most impor- tantly, it signals that the country may be approaching a turning point in its relationship with global finance. The road ahead remains long, and debt resolution is never guaranteed. However, after more than two decades of finan- cial isolation, the conversation is increasingly shifting from whether Zimbabwe can re-engage with international creditors to how quickly that re-engagement can be achieved.In that context, the US$150 million loan is not simply another liability on the national balance sheet. It is an investment in credibility. And for a country seeking to regain its place within the international financial system, credibility may be the most valuable asset of all.ZThe US$150 Million QuestionWhy The AfDB Loan Matters

The AXiS CCXVIII Friday 12 Jun 2026 11imbabwe has finally moved from regula- tory ambiguity to formal oversight of the cryptocurrency sector. Through Statutory Instrument (SI) 99 of 2026, the government has established the country's first comprehensive framework governing Virtual Asset Service Pro- viders (VASPs), bringing cryptocurrency exchanges, over-the-counter traders, custodial wallet providers, and even certain decentralised finance (DeFi) operators under the supervision of the Reserve Bank of Zimbabwe's Financial Intelligence Unit (FIU).While the announcement may appear technical, its implications are far-reaching. The new framework fundamentally changes how busi- nesses, investors, financial institutions, remit- tance operators, and technology entrepreneurs interact with digital assets in Zimbabwe.For years, cryptocurrency activity existed in a regulatory grey area. Following the Reserve Bank's 2018 directive that effectively cut off banking services to crypto exchanges such as Golix, formal crypto businesses disappeared from public view. Yet crypto activity never ceased. Instead, it migrated into informal peer-to-peer networks, WhatsApp trading groups, and cash-based over-the-counter trans- actions.SI 99 represents the state's acknowledgement that cryptocurrency has become too economi- cally significant to ignore. The question is no longer whether crypto exists in Zimbabwe. The question is how it should be regulated.A Shift Towards FormalisationAt its core, the regulation seeks to formalise a previously invisible segment of the economy. Every crypto service provider operating com- mercially must now register with the FIU, satisfy anti-money laundering requirements, maintain detailed transaction records, and conduct cus- tomer verification procedures.From an economic perspective, this transition is significant because it moves crypto-related transactions from the informal economy into the formal financial system. Zimbabwe's economy has long been characterised by high levels of informality. Digital assets emerged partly as a response to currency instability, expensive cross-border transactions, and difficulties accessing foreign exchange. Businesses importing goods, freelancers receiving interna- tional payments, and families receiving remit- tances increasingly relied on cryptocurrencies such as USDT to move value across borders. By regulating these activities, authorities gain visibility over financial flows that previously operated beyond official oversight.Why Regulation Matters NowThe timing is not accidental. Zimbabwe's regu- latory approach closely mirrors international standards developed by the Financial Action Task Force (FATF), the global body responsible for combating money laundering and terrorist financing.Countries that fail to implement adequate con- trols over virtual assets risk increased scrutiny from international financial institutions and correspondent banks. Zimbabwe's previous experience with FATF grey-listing demonstrated the eco- nomic costs associated with perceived weaknesses in financial regulation.Consequently, SI 99 should be viewed not only as a cryptocurren- cy regulation but also as part of a broader strategy aimed at maintaining Zimba- bwe's credibility within the international financial system. The government is effectively signalling that digital asset markets will be allowed to operate, but only within a framework consistent with global compliance standards.What It Means For BusinessesFor businesses operating in the digital asset ecosystem, the regulations provide something that has long been missing: legal certainty.Previously, entrepreneurs faced substantial regulatory risk. Start-ups could invest in devel- oping crypto-based products only to face uncer- tainty regarding their legal status. Investors sim- ilarly hesitated to finance ventures operating in an unclear regulatory environment. The new framework reduces this uncertainty. Registered operators can now demonstrate compliance, engage regulators transparently, and potentially attract institutional capital. Venture capital firms and strategic investors generally prefer operat- ing in jurisdictions where rules are clear rather than undefined.However, legal certainty comes with significant compliance costs. Registration fees are rela- tively modest, but the broader requirements are substantial. Firms must maintain compliance systems, conduct customer due diligence, implement cybersecurity safeguards, and appoint compliance officers. For smaller start-ups, these requirements may create barri- ers to entry.As a result, the market may experience consoli- dation, with larger and better-capitalised firms enjoying competitive advantages over smaller operators.The Banking QuestionPerhaps the most important unresolved issue concerns banking access. Although SI 99 creates a registration framework for crypto busi- nesses, it does not explicitly overturn the regu- latory restrictions that previously discouraged banks from servicing crypto-related clients.If commercial banks begin accepting registered VASPs as legitimate customers, Zimbabwe could witness the emergence of formal crypto exchanges, regulated stablecoin services, and integrated digital payment solutions. Such developments would significantly expand the country's fintech ecosystem.However, if banks remain reluctant to engage with the sector, many crypto businesses may continue operating outside traditional financial channels despite the new regulations. The effectiveness of SI 99 will therefore depend heavily on whether banking sector participation follows regulatory recognition.Implications For RemittancesOne of the most promising economic opportuni- ties lies within the remittance market. Zimbabwe receives substantial diaspora inflows annually, making remittances a critical source of house- hold income and foreign currency.Traditional remittance channels often involve high transaction costs and lengthy processing times. Blockchain-based payment sys- tems offer the potential for near-instant cross-border trans- fers at significantly lower costs. By establishing a regulated framework, Zimbabwe creates a pathway for compliant digital remittance solutions to emerge. If implemented effectively, this could reduce transfer costs, increase disposable income for recipient households, and improve financial inclusion.Regional Trends And Competitive Posi- tioningZimbabwe is not pioneering crypto regulation; it is catching up. Several African economies have already established more advanced frame- works. South Africa has licensed crypto service providers through its financial sector regulators, creating one of the continent's most mature regulatory environments.Zambia has introduced registration require- ments for crypto operators under central bank oversight. Ghana recently implemented legisla- tion providing broader regulatory recognition and market supervision.Compared to these jurisdictions, Zimbabwe's framework remains narrower in scope. The primary emphasis is anti-money laundering compliance rather than consumer protection, investor safeguards, market conduct supervi- sion, or digital asset innovation promotion. This distinction matters because investors often evaluate not only whether regulation exists but also the extent to which it supports innovation.Risks And ChallengesWhile regulation offers benefits, it also introduc- es risks. Excessively burdensome compliance requirements could push smaller operators back into informal channels. Users may choose offshore platforms that remain outside Zimba- bwean jurisdiction, reducing the effectiveness of domestic oversight.There is also the challenge of regulating decen- tralised finance. Many DeFi systems operate globally without identifiable corporate struc- tures. Although SI 99 attempts to define \"con- trol\" broadly, practical enforcement may prove difficult. Technology evolves far faster than regulation. Authorities will need ongoing capaci- ty building, blockchain analytics capabilities, and specialised expertise to supervise increas- ingly complex digital asset markets.The Bigger Economic PictureThe significance of SI 99 extends beyond cryp- tocurrency itself. The regulation reflects a broader recognition that digital finance is becoming an increasingly important component of modern economic activity. Rather than attempting to prohibit technological innovation, policymakers are seeking to integrate it into the formal financial architecture.For businesses, the message is clear: crypto is no longer operating entirely in the shadows.For investors, the regulation reduces uncertain- ty and may create new opportunities within Zim- babwe's fintech sector. For financial institutions, it opens the possibility of new products, services, and revenue streams. For policymak- ers, it provides greater visibility over financial flows and strengthens alignment with interna- tional regulatory standards.Ultimately, SI 99 of 2026 does not represent a full endorsement of cryptocurrency. Rather, it represents something potentially more import- ant: the formal recognition that digital assets are now part of Zimbabwe's economic landscape and must be governed accordingly.The success of the framework will depend not on the regula- tions themselves, but on how effectively regula- tors, financial institutions, businesses, and con- sumers adapt to this new reality.Crypto Policy ShiftZim Regulatory Turning Point Z

*To Page 14The AXiS CCXVIII Friday 12 Jun 2026 13marketsretoria Portland Cement Limited's Zimba- bwe subsidiary declared and paid USD 36 million in dividends during FY2026, against USD 13 million in the prior year, from operating cash flow alone. PPC Zimbabwe gen- erated USD 37.6 million in net cash inflow before financing activities from selling cement in Zimbabwe at prices and volumes that covered all capital expenditure, maintenance, and work- ing capital requirements and still left USD 37.6 million on the table. The company then paid USD 36 million of that to its parent. The parent then paid approximately 92% of its total gross dividend to JSE-listed shareholders, funded substantially by the Zimbabwe remittance. An investor in PPC Limited shares on the JSE is, in the most precise commercial sense available, an investor in Zimbabwe's construction sector.The group-level results that frame that dividend payment are themselves exceptional. PPC Lim- ited reported revenue of R10.255 billion for the year ended 31 March 2026, a 3.9% increase from R9.871 billion, with EBITDA rising 31% to R2.079 billion and EBITDA margins expanding 4.2 percentage points to 20.3%. Earnings per share grew 75% to 56 cents and headline earn- ings per share increased 25% to 50 cents. The group declared an ordinary dividend of 30.2 cents per share, a gross cash outlay of R469 million against R274 million in FY2025. Group CEO Matias Cardarelli described FY2026 as the second consecutive year of exceptional results from the Awaken the Giant turnaround strategy, confirming that EBITDA has grown 67% from R1.2 billion in FY2024 to R2.1 billion in FY2026 and that EBITDA margins have expanded eight percentage points from 12.3% to 20.3% over the same two-year period.The specific financial architecture through which PPC Zimbabwe's dividend flowed into the group's capital structure is disclosed in the results with unusual precision and deserves to be read carefully. PPC Limited received R490 million from PPC Zimbabwe as its share of the USD 36 million dividend. Of that R490 million, R433 million flowed through to shareholders as the Zimbabwe component of the total dividend, with R105 million ring-fenced to secure a PPC Zimbabwe guarantee obligation in South Africa. The gross dividend to shareholders of R469 million against a Zimbabwe remittance of R490 million confirms that approximately 92% of the total dividend declared to PPC Limited share- holders originated from or was enabled by PPC Zimbabwe's operating cash generation.The group is simultaneously constructing the RK3 cement plant in the Western Cape at a board-approved total cost of R3.1 billion, with R712 million of capital expenditure incurred in FY2026 alone. The funding arithmetic is direct: the SA and Botswana group received R490 million from PPC Zimbabwe and deployed R712 million on RK3. Without the Zimbabwe dividend inflow, the group would have required either higher external borrowings, reduced RK3 con- struction progress, or a materially smaller shareholder dividend to maintain its conserva- tive gearing position. Zimbabwe's construction boom is generating the cash that is funding the Western Cape capacity expansion whose earn- ings contribution is expected in FY2028. The geographic and financial circle is precisely closed.The Zimbabwe SegmentPPC Zimbabwe delivered EBITDA of R961 million in FY2026, a record for the operation and a 13% increase from R849 million in FY2025. In USD terms, EBITDA grew 19.3%. The EBITDA margin of 26.9% compares with PPC South Africa's 19.1% margin, or 16.9% excluding the R139 million property sale gain, on a revenue base of R6.251 billion against Zimbabwe's R3.567 billion. The South African operation gen- erates more absolute EBITDA because it is sub- stantially larger. The Zimbabwe operation gen- erates a materially higher return on every rand of revenue because Zimbabwe's construction market commands pricing premiums and growth dynamics that South Africa's more com- petitive, lower-growth market does not offer.The 26.9% full-year margin understates the Zimbabwe operation's underlying earnings power. In H2 FY2026, when the Bulawayo plant was operating at full capacity, the EBITDA margin reached 30.9%. The gap between the full-year 26.9% and the H2 30.9% is explained entirely by a single mechanical event: a gearbox breakdown at the Bulawayo plant on 3 February 2026 that disrupted production for two months and compressed H2 volume growth from the 25% year-on-year rate recorded in H1 to 12%. Without that single equipment failure, PPC Zim- babwe's full-year result, combining H1's 25% volume growth with a 30.9% EBITDA margin through H2, would have been materially ahead of the R961 million recorded. The FY2027 base- line therefore carries a mechanical recovery component that requires no improvement in demand conditions to materialise.The turnaround initiatives that drove margin expansion included a 4% increase in own clin- ker production through operational efficiencies. Own clinker production is the most capital-inten- sive and technically demanding component of the cement manufacturing value chain, and a 4% improvement reduces PPC Zimbabwe's clinker import requirement, substituting internal- ly produced input for purchased material and improving the margin on every tonne sold from that clinker. The achievement is a management intervention in the cost structure rather than a passive benefit from the demand environment, and it positions FY2027 with a cost base that has improved from a position already at a 30.9% H2 margin.Meanwhile, Zimbabwe's construction sector absorbed 18.2% more cement volume in 2025 than in the prior year. That figure, sourced from PPC Zimbabwe's own production and sales data, confirms that domestic demand is expand- ing faster than domestic supply can satisfy. Zim- babwe imported USD 12.02 million worth of Portland cement in April 2026 alone, the highest single monthly value in the sixty-four month dataset from January 2021 through April 2026 and more than eight times the USD 1.46 million recorded when the series opened. The cement import rolling average, below USD 4 million through 2022, crossed USD 7 million in mid-2024 and has been trending above USD 9 million through the twelve months to April 2026.Three concurrent forces are driving that demand. The mining sector's capital expendi- ture cycle, confirmed by April 2026's USD 23.2 million tunnelling machinery import, generates direct cement demand for shaft infrastructure, processing plant construction, and surface facil- ity development across the Renco, Arcadia, Bikita, and Zimplats expansion programmes simultaneously active in the current quarter. Government's infrastructure programme, cover- ing road rehabilitation, dam construction, and public building investment, contributes institu- tional demand that moves in multi-year project cycles. The private sector construction boom in Harare's northern suburbs and Bulawayo's expanding commercial and residential zones, supported by diaspora remittances providing construction finance outside the formal banking system, generates the retail demand that PPC Zimbabwe's value-accretive sales mix strategy specifically targets.The diesel import record of USD 132.5 million in April 2026, the same month as the cement import record, confirms that these demand driv- ers are simultaneously active rather than sequential. However, PPC Zimbabwe operates in a contest- ed market. Sino Zimbabwe Cement and Circle Cement supply the Harare and Bulawayo mar- kets from domestic production bases, and imported cement from South African, Zambian, and Mozambican producers enters through the border trading zones of Mutare, Beitbridge, and Chirundu where landed costs can approach domestic pricing depending on exchange rate dynamics and transport logistics. The April 2026 cement import record is therefore not purely an incremental demand signal but includes market share captured from domestic producers by competitive regional pricing at the border zones.PPC Zimbabwe's structural competitive advan- tage against that import competition is the cost structure of a fully integrated cement producer whose fixed cost absorption at high volumes produces unit economics that transported regional cement cannot match when duty and logistics costs are properly accounted for. The more significant medium-term risk is not current import competition but greenfield capacity entry. Zimbabwe's construction demand trajectory is the most compelling demand signal available to an investor evaluating southern African cement market opportunities: Dangote's USD 1 billion commitment, Shuntai's USD 120 million Chegu- tu plant at 80% completion, and the Khayah Cement rehabilitation under Hima's USD 60 million rescue package all confirm that multiple capital allocators have reached the same ana- lytical conclusion about Zimbabwe's cement market that PPC Zimbabwe's FY2026 results PPC Zim Declares HistoricDividend P

The AXiS CCXVIII Friday 12 Jun 2026 14aledonia Mining Corporation, Zimba- bwe's third-largest gold producer, has confirmed significant new gold minerali- sation at its Motapa exploration property in Matabeleland North, strengthening the prospect of developing a larger integrated mining com- plex alongside its flagship Bilboes Gold Project.Results from the company's latest drilling programme returned multiple high-grade gold intersections across Motapa North and Central, including 19 metres grading 8.08 grams per tonne gold, 12 metres at 7.12 grams per tonne, 6.38 metres at 13.95 grams per tonne and 17 metres at 3.25 grams per tonne gold. Additional oxide mineralisation was also encountered at Motapa Central, where drilling returned intersections of 7 metres at 2.39 grams per tonne, 3 metres at 4.79 grams per tonne and 2 metres at 5.25 grams per tonne gold.‘’ The results demonstrate the presence of significant gold mineralisation across multiple zones and highlight the opportunity for Motapa to evolve into a strategic extension of the Bilboes mining complex, potentially enhancing production and extending the life of mine at Bilboes through the development of a combined mining operation,’’ the press reads.On the surface, these are encouraging explora- tion results. The more important development is what they potentially mean for the future scale of Caledonia's operations in Zimbabwe.For the better part of the past decade, Caledo- nia's Zimbabwe strategy has revolved around Blanket Mine in Gwanda. Blanket transformed the company from a junior mining operation into a consistent gold producer generating strong cash flows and dividends. Production has steadily increased from approximately 42,000 ounces in 2014 to around 70,000 to 75,000 ounces annually today, making Blanket one of Zimbabwe's most successful gold mining investments.The challenge facing every successful mine is that ore bodies are finite. Growth therefore requires either extending existing mine life or developing entirely new operations. Bilboes is intended to be Caledonia's answer to that chal- lenge.Located approximately 75 kilometres north-west of Bulawayo, Bilboes represents one of the larg- est undeveloped gold projects in Zimbabwe. The project currently hosts proven and probable reserves grading 2.26 grams per tonne gold and is expected to become a large-scale open pit mining operation. Caledonia is targeting first gold production in the fourth quarter of 2028.Until recently, Bilboes was viewed primarily as a standalone mine development project. Motapa changes that narrative. The exploration property lies directly adjacent to Bilboes and forms part of the same Bubi Greenstone Belt geological system. The latest drilling programme has con- firmed mineralisation continuity across approximately six kilometres of strike length, suggest- ing that the gold-bearing system extends well beyond the current Bilboes resource envelope.For mining investors, continuity is often more important than isolated high-grade results .A spectacular drill hole can generate excitement. A continuous mineralised system stretching across several kilometres creates the founda- tion for a long-life mining district.That distinction explains why management's commentary focused less on individual drill intersections and more on the opportunity to develop a combined mining complex.Chief Executive Officer Mark Learmonth described Motapa as an opportunity to signifi- cantly enhance the long-term value of Bilboes, increase future production and extend mine life through the integration of additional resources into the broader development plan.Those comments reveal an important strategic shift. Mining companies increasingly seek to build mining complexes rather than individual mines. The economics are straightforward, A standalone project requires its own processing plant, power infrastructure, water systems, workshops, roads and administrative facilities. Once that infrastructure exists, nearby deposits become substantially more valuable because they can share those facilities.Motapa's proximity to Bilboes therefore matters enormously. Ore from Motapa could potentially utilise processing infrastructure already planned for Bilboes. Additional ounces can be incorpo- rated without necessarily requiring a second processing facility. Capital costs per ounce decline. Mine life extends. Project economics improve.This is why some of the world's largest mining operations evolved into districts rather than single deposits. Australia's Kalgoorlie Gold- fields, South Africa's Witwatersrand Basin and Ghana's Ashanti Belt all began with individual discoveries before evolving into interconnected mining complexes supported by shared infra- structure.Caledonia is still at a much earlier stage. The comparison nevertheless illustrates why Motapa could become strategically important. The company's latest results indicate that min- eralisation occurs across multiple zones and includes both oxide and sulphide resources. Oxide deposits generally provide opportunities for earlier-stage development because they are easier and cheaper to process. Sulphide depos- its typically support larger-scale long-term oper- ations.The presence of both styles of mineralisation potentially provides flexibility in future mine planning.Another important aspect is timing. Gold prices remain near historic highs , supported by central bank buying, geopolitical uncertainty and grow- ing demand for safe-haven assets. Producers globally are increasingly p r i o r i t i s i n g r e s o u r c e growth and r e s e r v e replacement as investors place greater value on long-life proj- ects capable of generating production over sev- eral decades.Zimbabwe has become a major beneficiary of this trend. Gold remains the country's largest export mineral and one of its most important sources of foreign currency earnings. Official deliveries continue to trend higher while interna- tional producers are expanding exploration activity across several greenstone belts.The Bubi Greenstone Belt is emerging as one of those growth corridors. Caledonia's exploration work began in earnest following the acquisition of Bilboes. Geological mapping, geophysical surveys and historical data reviews were under- taken before drilling programmes accelerated. More than 18,500 metres of reverse circulation drilling and over 1,500 metres of diamond drill- ing have now been completed across the Motapa property.The scale of that programme reflects growing confidence in the geological model. Importantly, the company is moving beyond exploration and towards resource definition. A maiden mineral resource estimate is expected during the third quarter of 2026.Exploration success creates geological poten- tial. Resource estimates begin to establish eco- nomic value.Investors will be looking for evidence that the encouraging drill results translate into sufficient ounces to justify incorporation into the broader Bilboes development strategy. If that occurs, Motapa's significance could extend well beyond the additional resource it contributes.Bilboes has already been positioned as Caledo- nia's next growth engine. Motapa introduces the possibility that Bilboes itself becomes the anchor asset for a much larger mining district capable of supporting production growth for decades.For Caledonia, that could mean a longer mine life, greater production flexibility and improved project economics. For Zimbabwe, it could mean another major step towards expanding gold production at a time when the country is seeking to increase mineral exports, attract mining investment and strengthen foreign currency generation.The immediate focus remains achieving first gold production at Bilboes in late 2028.The latest drilling results nevertheless suggest that the long-term story may be becoming consider- ably larger than Bilboes alone.Beyond BilboesMotapa Expands Caledonia's Gold Vision*From Page 13 articulate in financial terms. The capacity additions that enter service through 2026 and 2027 will test whether Zimbabwe's construction demand can absorb the combined output of existing and new producers without import displacement becoming market price pressure.PPC Zimbabwe's sustainable competitive advantage against that entry risk rests on four durable foundations: its established distribution network across Zimbabwe's urban and peri-ur- ban markets, its brand equity in the building trade, the clinker self-sufficiency improvement programme that progressively reduces its input cost dependence, and its operational flexibility to serve both the formal construction sector and the informal residential building market that con- stitutes a substantial and underserved share of Zimbabwe's total cement demand. C

The AXiS CCXVIII Friday 12 Jun 2026 15asimba Holdings Limited has recorded a 12% increase in profit after tax to US$453,000 for the first quarter ended 31 March 2026 as disciplined project execution, operational efficiency and a diversified order book offset disruptions caused by prolonged rainfall across several construction sites, according to the group's latest trading update. Revenue increased 13% to US$8.8 million, sup- ported by continued activity across infrastruc- ture, mining, housing and industrial projects and a healthy mix of public and private sector con- tracts.The performance places Masimba among a select group of Zimbabwean listed companies currently converting economic activity into earn- ings growth. That achievement is particularly significant within the construction sector, where profitability is highly sensitive to weather condi- tions, liquidity availability, fuel costs and project execution risks.The first quarter presented several of those challenges simultaneously.The company reported that above-normal rain- fall and a prolonged rainy season created diffi- cult operating conditions across multiple proj- ects. Construction activity typically slows during periods of excessive rainfall as site accessibility deteriorates, earthworks become more difficult and project timelines extend. These conditions often result in lower equipment utilisation and weaker productivity across the industry.Masimba's ability to grow both revenue and earnings during such a period highlights the resilience of its project pipeline and execution capability, which management attributed to con- tinued operational efficiency, disciplined project execution and the strength of its diversified proj- ect portfolio.The results also provide an important reading on the state of investment activity within Zimba- bwe's economy.Masimba occupies a strategic position within the country's infrastructure ecosystem. The company operates across civil engineering, road construction, mining infrastructure, indus- trial developments, housing projects and agri- cultural infrastructure. Activity flowing through Masimba therefore provides insight into where capital expenditure is taking place across both the public and private sectors.The trading update sug- gests that project activity remains healthy. Manage- ment described the order book as robust, supported by a balanced mix of private and public sector contracts. For construction companies, order books often provide a stronger indication of future performance than current earnings because they represent contracted work still to be executed. A healthy order book therefore points towards continued infrastructure and construc- tion activity in the coming quarters.The macroeconomic envi- ronment also played a role in supporting performance. The first quarter was char- acterised by continued improvements in inflation and exchange rate stability. United States dollar annual inflation closed the period at 1.3% while Zimbabwe Gold annual inflation ended at 4.4%, both substantial- ly lower than levels recorded at the end of 2025. The ZiG appreciated by 2.5% during the period, reinforcing exchange rate stability and reducing volatility within the operating environment.For construction companies, macroeconomic stability carries particular importance. Infra- structure projects often run over extended peri- ods and require accurate forecasting of costs associated with fuel, machinery, imported mate- rials and labour. Greater price stability improves project planning and reduces the risk of contract margins being eroded by sudden cost move- ments.The group also continued investing in future growth. Capital expenditure reached approxi- mately US$2 million during the quarter, directed primarily towards hauling and trenching equip- ment aimed at increasing operational capacity and improving execution efficiency. The scale of the investment points to management confi- dence in the sustainability of the current project pipeline. Construction companies rarely expand equipment fleets unless they anticipate continu- ing demand.The investment is also consistent with broader developments within the economy. Mining investment continues to expand across gold, lithium, platinum and chrome operations. New mining projects require roads, earthworks, water infrastructure, accommodation and logis- tics facilities. Housing developments continue to emerge around urban centres, while govern- ment infrastructure projects remain active across transport, water and energy networks.Masimba is positioned at the centre of these investment flows. Its diversified exposure allows activity in one sector to offset slower conditions elsewhere, reducing dependence on any single source of revenue. That diversification has increasingly become a competitive advantage within an environment where project cycles vary significantly across sectors.Liquidity remains one area requiring close moni- toring. The company noted that while macro- economic conditions remained stable, limited availability of ZiG within the market continued to place pressure on liquidity. The company responded through proactive working capital management designed to preserve operational flexibility and maintain financial stability. The approach appears to have been effective, with both liquidity and solvency indicators remaining stable during the quarter. The current ratio improved marginally to 1.42 from 1.41 at the end of December 2025, while the quick ratio remained at 1.26.Looking ahead, Masimba enters the remainder of 2026 supported by a strong order book, expanded operational capacity and a diversified portfolio spanning infrastructure, mining, hous- ing and industrial projects. The group's mix of public and private sector contracts provides visibility over future revenue streams and posi- tions the company to benefit from ongoing investment activity across key sectors of the economy.The operating environment remains broadly supportive. Mining expansion, infrastructure development and continued capital investment across productive sectors continue to sustain demand for construction services. These trends underpin management's expectation that the group will remain profitable and maintain its growth trajectory.Several risks nevertheless warrant attention. The sharp increase in global fuel prices follow- ing geopolitical tensions in the Middle East intro- duces a significant cost variable for the con- struction sector. Heavy machinery, haulage fleets and earthmoving equipment consume substantial volumes of diesel, making contrac- tors particularly sensitive to movements in energy markets. Sustained increases in fuel prices would place upward pressure on project costs and margins.Management also highlighted uncertainty surrounding the government's proposal to settle contractors in Zimbabwe Gold. The develop- ment introduces additional considerations for cash flow management, project planning and contract execution, particularly for contractors with imported input requirements. The imple- mentation framework and payment mecha- nisms adopted will remain important variables for the sector over the coming quarters.Despite these headwinds, Masimba's combination of a healthy order book, opera- tional capacity expansion and diversified project expo- sure provides a solid plat- form for continued growth. The group's performance during a difficult first quarter characterised by abnormal rainfall and liquidity con- straints provides further evidence of its ability to exe- cute projects effectively under challenging condi- tions.Masimba's first-quarter performance provides a useful reading on Zimba- bwe's current investment cycle. Infrastructure activity remains resilient, mining-re- lated investment continues to support contractor demand and project pipe- lines remain active despite weather disruptions and liquidity constraints.Masimba Q1 Earnings ClimbProfit Grows 12%M

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Dangote Refinery targets $1 Billion fundrais- ingNigeria’s Dangote Petroleum Refinery is taking a major step toward becoming a publicly traded company. The refinery is seeking to raise around one billion dollars through a private share placement, in a deal that values the com- pany at roughly 39 billion dollars.According to documents seen by investors, Dangote is offering three billion ordinary shares at 35 cents each, with demand already exceed- ing two billion dollars.Investors must purchase at least one million shares, with the funds earmarked for expansion and broader corporate growth.The 650,000-barrel-per-day refinery, owned by billionaire Aliko Dangote, began fuel production in 2024 and has rapidly increased output of petrol, diesel, aviation fuel and other refined products.The facility has helped reduce Nigeria’s depen- dence on imported fuel while expanding exports across Africa and beyond.– nytimesNiger inaugurates new power plant to ease electricity cutsIn Niger, residents of the capital Niamey have become accustomed to daily power outages. Electricity rationing has been a persistent chal- lenge since the July 2023 coup.But the situation now appears to be moving toward a temporary solution, with the launch of the Niger-Algeria solidarity power plant.The facility was officially launched by Nigerien Prime Minister Ali Mahamane Lamine Zeine and his Algerian counterpart, Sifi Ghrieb. It was fully financed and built by Algeria in just 70 days through an air cargo bridge operation.The region where Niger's capital is the largest consumer of electricity in the country, with demand estimated at 200MW.Using a mix of sources such as uranium, coal and solar, Niger has set out plans to become a regional energy powerhouse. - BloombergSouth Africa's Eskom launches renewable energy unitPower utility Eskom on Tuesday launched a renewable unit, part of a vision by the company to reduce dependence on coal plants.Named Eskom Green, the unit will operate under Eskom Holdings before transitioning into a wholly-owned subsidiary operating autono- mously.Eskom set a target to pivot to mainly clean energy sources by 2040. Currently, it supplies the bulk of South Africa's electricity needs from its fleet of coal-fired plants.Eskom Green targets sectors such as mining and maufacturing as its customers.It aims to generate 6 gigawatts of clean energy by 2030.Under the so-called Just Energy Transition Plan (JETP), South African has received financing from the G7 to develop renewable energy proj- ects as a way to reduce reliance on fossil fuels.- reutersFuel shock sparks electric bike boom in KenyaRising fuel prices linked to the conflict in the Middle East are accelerating Kenya’s shift to electric mobility. As petrol costs soar, thousands of riders are abandoning fuel-powered motorcy- cles for cheaper electric alternatives, driving record sales and reshaping urban transport.The conflict in the Middle East has produced an unexpected outcome in Kenya: a surge in elec- tric motorcycle adoption.As fuel prices climbed by more than 20 percent following the outbreak of the war, riders and delivery workers have increasingly turned to electric bikes to cut operating costs.Industry figures estimate sales have jumped by more than 40 percent in recent months.For many Kenyans whose livelihoods depend on motorcycles, the savings are proving impos- sible to ignore. - cnbcCrude oil jumps over 3% as Middle East ten- sions escalateOil prices jumped more than 3% on Monday after Iran launched missiles at Israel, raising fears of a wider regional conflict and renewed disruption to energy supplies. The gains came despite an OPEC+ decision to increase produc- tion quotas for July.Oil markets opened sharply higher after Iran launched ballistic missiles at Israel on Sunday, marking the first direct attack since a ceasefire between the two countries took effect in April.Brent crude rose more than 3% to above $96 a barrel, while U.S. benchmark West Texas Inter- mediate climbed past $93 a barrel.Traders reacted to concerns that the latest escalation could derail diplomatic efforts and prolong disruptions to global energy flows.- wsjTraders disrupted as Uganda closes border due to Ebola outbreak in CongoTraders are facing big losses after Uganda closed its border with the Democratic Republic of the Congo over Ebola contagion fears.Leah Masika was on the verge of tears as she thought of her valuable consignment of plantain stuck in a long convoy of trucks on both sides of the Uganda-Congo border on Thursday.Her cargo, destined for Uganda, was starting to leak water, and would go bad within hours if there was no movement.The Ugandan trader was awaiting clearance from authorities for trucks to pass through the Mpondwe border post on Thursday after they were prevented from entering or leaving Uganda as part of escalating measures to prevent cross-border Ebola contagion.“All our goods are now there rotting,” she said.On May 28, about two weeks after Congo declared an outbreak of Ebola in the eastern Ituri province, Uganda closed its western border in a decision that reflected growing fears of cross-border contagion. - DWFitch lifts South Africa rating in first upgrade in two decadesFitch Ratings raised South Africa's credit rating on Friday, citing stronger fiscal discipline and lower-than-expected debt, marking its first upgrade of the country in more than two decades.The agency lifted the rating one notch to 'BB' from 'BB-', keeping it below investment grade.\"The upgrade primarily reflects South Africa's record of prudent fiscal management and prog- ress on fiscal consolidation, despite weak eco- nomic growth and domestic and external shocks,\" the ratings agency.Africa's largest economy has posted primary fiscal surpluses averaging about one percent of the gross domestic product (GDP) over the past four years, it said.Debt was also expected to stabilise over the next two years at around 80 percent of GDP, it added.The government welcomed the move, saying it was the first upgrade from the New York-based agency in almost 21 years.- MT NewswiresDangote refinery hits 700,000 bpdNigeria’s Dangote Refinery has reached a major milestone, processing 700,000 barrels of crude oil per day during performance testing, surpass- ing its official 650,000 barrel capacity.The refinery says it plans to double output to 1.4 million barrels per day within the next 30 months, a move that could make it one of the largest refining facilities in the world.Since launching fuel production in 2024, the refinery has rapidly expanded exports across Africa, Europe, the United States and Saudi Arabia. Amid global supply disruptions and Middle East tensions, demand for Dangote’s fuel products continues to grow.Analysts say the refinery is reshaping Africa’s fuel trade, with exports more than doubling in recent months and regional buyers increasingly turning to Nigeria as a reliable energy supplier.- Retail Insight NetworkBarbers in Cuban capital offer free haircuts amid economic crisisBarbers in Havana, have been doing their bit to ease things for residents struggling amid Cuba’s economic crisis.Faced with power outages and water shortages, personal hygiene has become a problem, espe- cially for the vulnerable.Armed with mirrors, electric shavers, and scis- sors, a group of barbers has been setting up in a city square every Thursday to cut hair and groom beards for free. - reutersTemu hit with €200m EU fine over consumer safety failuresThe European Commission has fined Chinese online marketplace Temu €200 million, saying it failed to properly protect consumers in the Euro- pean Union from unsafe and illegal products sold on its platform.The penalty was announced on Thursday under the EU’s Digital Services Act, a law that places strict obligations on large online platforms to identify and reduce risks linked to illegal goods and content.EU regulators say Temu did not adequately assess the risks faced by users in the bloc, and underestimated how often consumers could be exposed to unsafe products. - Bloomberg.Benin strengthen laws to combat production of fake bank notesLawmakers in Benin have unanimously adopted a reform which strengthens the fight against fake banknotes.It also increases penalties against traders and individuals refusing to accept notes and coins issued by the Central Bank of West African States.Fines and prison sentences are planned for those who refuse legal tender or who apply excessive fees to exchange them. - cnbcSpaceX set to open at $165 per share, down from initial indication of $175SpaceX begins trading Friday under the ticker SPCX after the biggest initial public offering ever. The latest indicated price is now $165.Elon Musk and SpaceX President and COO Gwynne Shotwell rang the opening bell on Friday, with Musk in Texas and Shotwell at the Nasdaq in New York City.The reusable rocket company said in a filing with the Securities and Exchange Commission late Thursday that it’s raising $75 billion, selling 555.6 million shares for $135 a piece. The deal values SpaceX at $1.77 trillion, making it the seventh most-valuable U.S. company, ahead of Tesla, Musk’s electric vehicle maker.- investing.comBusiness Around The World The AXiS CCXVIII Friday 12 Jun 2026 17

U.S. and Iran reach peace deal to end the Mideast war, with agreement set to be signed FridayThe U.S. and Iran have agreed on a deal to bring their nearly four-month war to an end, with both sides declaring the immediate and perma- nent termination of military operations on all fronts, including in Lebanon, Pakistan Prime Minister Shehbaz Sharif said on Sunday.“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED,” Sharif said in a post on X. Pakistan has served as a mediator between the two countries.“The official signing ceremony will be on Friday, 19 June in Switzerland,” Sharif said. - Bbc.UK to ban social media for under-16s to ‘give kids their childhood back’The U.K. will ban social media from offering services to under-16s, Prime Minister Keir Starmer announced on Monday, as govern- ments around the world face mounting pressure to ensure child safety online.The ban could include platforms like Snapchat, TikTok, YouTube, Instagram, Facebook and X. The first set of regulations could take effect as soon as spring 2027. The U.K. plans to model its approach on land- mark Australian legislation passed late last year, but the country will go further by introducing additional restrictions on features deemed particularly harmful to children. - Abcnews.Trump Administration’s Policy on AfricaThere has been considerable academic debate over how to define Donald Trump’s ‘America First’ foreign policy. President Trump and his Secretary of State, Marco Rubio, have argued that it represents no more than any nation state would normally do in promoting its national interests by ensuring that all foreign policy deci- sions will benefit US citizens or businesses by making America safer, stronger, or more pros- perous. Academic commentators have argued variously that the policies reflect ‘flexible real- ism’; that they represent a return to a more ‘imperialist’ America which gets whatever it can by creating economic or security dependency including through the threat or use of force; that it is simply a more predatory form of contempo- rary American hegemony; or that it is a policy driven primarily by the ambition of the Trump family and its business backers to profit from the presidency.- TheGuardian.Pope Leo asks to confront the legacy of slaveryIn his inaugural encyclical, Magnifica Humanitas (‘magnificent humanity’), issued on 25 May 2026 (Africa Day), Pope Leo XIV offered the first papal apology for the Holy See’s role in legiti- mizing the transatlantic slave trade and for its failure to condemn it for centuries. This historic apology comes just two months after the UN General Assembly passed a landmark resolu- tion classifying the transatlantic slave trade as the gravest crime against humanity.“It is impossible not to feel deep sorrow when contemplating the immense suffering and humil- iation endured by so many in stark contrast to their immeasurable dignity as persons infinitely loved by the Lord,” Pope Leo wrote. “For this, in the name of the Church, I sincerely ask for pardon.” Describing slavery as “a grave viola- tion of human dignity”, the pontiff placed the issue at the heart of the Church’s modern ethi- cal mission. - Npr.Anthropic disables access to Fable 5 and Mythos 5 to comply with government direc- tiveAnthropic on Friday announced it’s disabled access to its Fable 5 and Mythos 5 artificial intel- ligence models to comply with an export control directive from the U.S. government that cited “national security authorities.”The company said it received an order at 5:21 p.m. ET, instructing it to suspend all access to the models “by any foreign national, whether inside or outside the United States, including foreign national Anthropic employees.”Anthropic abruptly disabled the models for all of its customers in order to ensure compliance, but said all of its other models will not be affected. - Aljazeera.Somaliland president visits Jerusalem in defiance of MogadishuIsraeli President Isaac Herzog welcomed his counterpart from Somalia's breakaway region of Somaliland Abdirahman Mohamed Abdillahi in Jerusalem on Sunday.\"Both our countries acted with courage and real- ism. Israel recognized Somaliland as an inde- pendent state, which has been a reality on the ground for several decades,\" Herzog said during a joint news conference.\"Only one country desires to see us and recog- nize Somaliland, and that's the government of Israel and its people,\" said Abdillahi at the same briefing where the two leaders toasted together with orange juice.A number of countries rejected Israel’s recogni- tion of Somalia’s breakaway region of Somalil- and as an independent nation, the first by any country in more than 30 years.Somaliland declared independence from Soma- lia in 1991 during a descent into conflict that continues to leave the east African country frag- ile.Despite having its own government and curren- cy, Somaliland had never been recognized by any nation until Israel did in December 2025. - BBC.DR Congo court sentences 54 to death in final verdict on murder of UN expertsNearly nine years after the killing of two United Nations experts in the Democratic Republic of Congo, the country's High Military Court has delivered its final verdict. All 54 defendants charged in the murder of American investigator Michael Sharp and Swedish-Chilean expert Zaida Catalan have been sentenced to death.The pair were killed in March 2017 while investi- gating violence in Central Kasai. According to the court, they were intercepted, accused of being traitors, and executed after being led into a trap.Among those convicted is Congolese army officer Colonel Jean de Dieu Mambweni. Initially sentenced to ten years in prison, he was handed the death penalty on appeal after judges concluded he played a key role in luring the UN experts to their deaths.While the ruling closes one of Congo's most high-profile cases, critics say justice remains incomplete. The National Human Rights Com- mission argues that senior figures suspected of masterminding the killings were never prosecut- ed. - Reuters.South Africa repatriates 2,745 foreigners in the weekSouth Africa has repatriated 2,745 foreigners in the week after President Cyril Ramaphosa vowed tougher action against illegal immigra- tion, the country's home affairs minister said on Sunday.One of Africa's largest economies, South Africa has long attracted migrant workers from across the continent, both legally and illegally.But saddled with an unemployment rate above 30 percent, it has experienced recurring spurts of anti-immigrant unrest, including fresh violence in recent weeks.Mobs of South Africans carrying sticks, whips and shields have marched through parts of the country ordering foreigners with no residency papers to leave by June 30. - AIM.Iran to bury late Supreme Leader Khamenei on July 9Iran's late supreme leader Ali Khamenei, who was assassinated by Israel and United States on February 28, will be buried on July 9, state television reported Saturday.The burial in his hometown, the northeastern holy city of Mashhad, initially scheduled for March but postponed due to the war, will follow three days of funeral ceremonies in capital Tehran beginning July 4 and another in the holy city of Qom on July 7, it said.July 4, the start date of the national funeral, will coincide with the United States' Independence Day, which this year celebrates its 250th anni- versary.Ali Khamenei's son, Mojtaba, succeeded him as supreme leader in early March, the third since the establishment of the Islamic republic in 1979.- DWSomali President says Israel exploiting row with SomalilandIn an interview with a local TV station, Hassan Sheikh Mohamud said Israel's recognition of Somalliland marked one of the darkest days in Somalia's history.He said Mogadishu remained committed to peace in its pursuit of reunification.Israel recognized the breakaway region of Somaliland as an independent state in late December 2025, becoming the first country to do so.But Mogadishu maintains that the recognition is null and void.In Somaliland too, some are opposed to ties with Israel, citing atrocities in Gaza and the occupation of several Muslim countries.Dozens have been arrested for protesting against the alliance, including religious scholars and youths waving Palestinian flags. - Polity. Angry Nigerians rally against poverty, inse- curity on Democracy DayHundreds of demonstrators gathered in Nige- ria’s commercial capital on Friday to mark Democracy Day, utlising the public anniversary to protest rising living costs and crumbling secu- rity.Protesters assembled in Lagos, carrying plac- ards and chanting slogans that called on the government to address economic hardship, unemployment and what they described as a failure of the country’s democratic system to deliver meaningful improvement to its citizens.Democracy Day honors the June 12, 1993 pres- idential election widely regarded as the coun- try’s freest and fairest vote and won by the late pro-democracy figure Moshood Abiola. - Cnn DRC: Rally against constitution change plan turns violentTwo opposition figures in the DR Congo were injured on Friday at a rally against government plans to change the constitution, broken up by police after clashes with pro-government sup- porters.In power since 2019, President Felix Tshisekedi, 62, comes to the end of his second, and under the current constitution, final five-year mandate in 2028.He recently declared, however, that he would agree to lead the conflict-plagued country for a third term \"if the people wish it\" after a referen- dum on reforming the constitution.The ruling majority has sought for weeks to remove the Congolese constitution's iron-clad two-term limit for presidents. - CNBCPolitics Around The World The AXiS CCXVIII Friday 12 Jun 2026 18

The AXiS CCXVIII Friday 12 Jun 2026 19WeeklyCommodity PulseAluminium declined 0.8% over the week, closing at $3,314/t, a modest retreat from the $3,340/t opening that reflected the broad commodity risk-off tone triggered by the ECB rate decision and US inflation data on 12 June rather than any aluminium-specific funda- mental deterioration. The metal's intraweek low of $3,290/t on 10 June briefly tested the bottom of its recent consolidation range before recovering. Mining.com's 12 June market snapshot recorded aluminium futures at $3,314/t, broadly in line with LME cash levels, reflecting a globally consistent pricing environment with no significant exchange arbitrage. The week's performance capped a period in which aluminium had delivered one of the strongest year-to-date returns of any major commodity, gaining over 65% year-on-year at recent highs according to World Bank Commodity Markets data.Chinese demand fundamentals remained the primary structural anchor for aluminium through the week. Grid investment spending held at its record monthly pace and solar panel manufacturing output continued to expand at double-digit annual rates, both highly aluminium-intensive end uses that are largely insulat- ed from the near-term geopolitical noise of the Iran ceasefire negotiations. Nickel was the most stable commodity in the basket over the week, declining just 0.3% from $17,180/t to close at $17,120/t, a range-bound performance consis- tent with the competing forces of structural supply tightness and near-term demand uncertainty that have characterised the metal throughout 2026. The intraweek low of $16,900/t on 10 June reflected broad commodity risk-off positioning ahead of the ECB rate decision, but the metal recovered almost all of this decline within two sessions as buyers returned at the lower level. IMF price data showed nickel averaging $17,469/t in 2026 to date, with the June week repre- senting a modest consolidation near that average rather than a directional break.Indonesia's RKAB ore quota discipline remained the dominant structural support narrative through the week. PT Weda Bay Nickel, one of Indonesia's largest producers, has had its quota allocation reduced this year, a constraint that is tightening supply of primary nickel feed for the HPAL battery precursor processing chain. The International Nickel Study Group's revised 2026 market balance forecast, which shifted from a projected surplus to a small deficit, continued to anchor medium-term bullish positioning among insti- tutional investors. Platinum declined a modest 0.6% over the week, closing at $1,974/oz, a notably contained move com- pared with gold's 5.0% weekly loss, reflecting the metal's tighter supply-side dynamics and sustained industrial demand. Platinum tracked the broader precious metals complex lower in the first half of the week as the geopolitical risk premium unwound, briefly touching $1,960/oz on 10 June before recovering. The metal's relative resilience was supported by continued autocatalyst procurement from the recovering global automotive sector, where production schedules have been rebuilding after Q1 disruptions linked to the Irani- an supply shock, and by European hydrogen electroly- ser procurement, where platinum-group metals demand has been accelerating as the EU Green Deal infrastructure programme gains momentum.South African supply constraints continued to provide structural support through the week. Logistics premi- ums tied to Cape of Good Hope re-routing of Hormuz-affected shipping lanes, which have added an estimated 12 to 14 days per voyage since March, showed no sign of normalising during the period, even as ceasefire negotiations progressed. Anglo American Platinum and Impala Platinum both cited sustained elevated operational costs in May.Copper retreated 0.9% over the week, closing at $13,603/t on the LME cash settlement, a contained loss relative to the dramatic moves in Brent crude and gold. The metal opened the week at $13,731/t and held broadly within a $13,370–$13,731 range, with the sharpest intraweek move occurring on 10 June when broad commodity risk-off selling driven by the ECB rate decision and US inflation data briefly pushed LME copper to its lowest level in three weeks at $13,370/t. By 12 June, however, copper had partially recovered as rising optimism over a US-Iran peace deal eased concerns about global growth disruption, with Jefferies analysts publishing research during the week noting that copper prices were likely to remain elevated for longer than previously anticipated, citing persistent structural undersupply in the medium term.LME copper warehouse stocks continued their steady decline through the week, falling from 379,225 tonnes on 5 June to 364,100 tonnes by 12 June, a 4.0% draw- down in a single week that reflects ongoing tightness in physical availability despite the near-term price softness. Gold fell 5.0% over the past week, declining from $4,437/oz to close at $4,216/oz, its lowest settlement since November 2025. The primary driver was a rapid unwinding of the geopolitical risk premium that had supported gold through the height of the Iran-US conflict. As the US military confirmed the completion of its latest strikes on Iran on Monday 9 June and Presi- dent Trump announced that a deal with Tehran could be signed as early as the weekend of 14–15 June, safe-haven demand for bullion evaporated. Gold fell a further $89 in a single session on 10 June, the sharpest one-day decline since March. The ECB's decision to raise interest rates for the first time since 2023 on 12 June, citing upwardly revised inflation forecasts for 2026 and 2027, added a further headwind by strength- ening the argument for higher-for-longer rates global- ly.US producer prices climbed 6.5% year-on-year in May 2026, underscoring the persistent inflationary impact of the Middle East energy shock, but this failed to provide the inflation-hedge bid for gold that it might have done in earlier periods, precisely because markets concluded that a ceasefire would structurally reduce the energy price impulse going forward. Brent crude was the defining commodity story of the week, falling 20.6% from $110.00/b on 5 June to $87.33/b on 12 June, the steepest weekly percentage decline since the onset of the COVID-19 pandemic in March 2020. The collapse was driven almost entirely by rapidly escalating optimism that the US and Iran were converging on a peace agreement that would reopen the Strait of Hormuz within 30 days. Trading Economics confirmed Brent at $87.33 on 12 June, down 3.37% on the day alone, as Iran's Mehr News Agency published a 14-point draft agreement including the lifting of oil sanctions and a commitment from Tehran to reopen the Strait, though the proposal still required approval from Iranian authorities. A Trump administration official assessed an 80% probability of a deal being signed soon, while Pakistan's Prime Minister stated a final text had been reached.The market nonetheless retained a residual risk premi- um above pre-conflict levels, Bob Parker of ICMA had earlier in the period reiterated that prices would remain in the $90–$100/b range even with a deal, citing lasting Gulf infrastructure damage and residual shipping security risks.

MarketswatchZim Inflation Retreatshe Zimbabwe Gold continued its tightly managed trajectory through the past week, with the USD/ZiG rate trading in a range of 25.367 to 25.882, with an opening price for the current session of 24.740, suggesting the rate has been edging toward the lower end of its range as the week closes, consistent with a modest official appreciation. Xe's data confirm a ZWG/USD mid-market rate of $0.0373, implying approximately ZiG26.81 at the Xe rate, reflecting the slight variation between data sources on official versus indicative rates, with the interbank market anchoring closer to the Investing.com range. On a 30-day basis, the Xe rate has moved between $0.0371 and $0.0388 per ZWG, confirming the official market remains within a 4.3% band, narrow by any regional comparison.The most important Zimbabwe development of the week is the continued transmission of the ZimStat May CPI data, released on Tuesday 27 May, which confirmed ZiG year-on-year inflation eased to 4.4% from April's 4.8%, with month-on-month ZiG inflation falling sharply to 0.5% from 1.1%. Non-food month-on-month inflation collapsed to 0.1% from 1.2%, the most significant single-month deceleration in core prices since the conflict-related energy shock began in March. These figures are now being absorbed by markets and businesses as confirmation that the peak of the Middle East-driven inflationary impulse appears to have passed for Zimbabwe, without the RBZ having needed to further tighten an already austere 35% policy rate.The parallel market has continued its gradual normalisation, with the street rate trading around ZiG28–33 per dollar, a premium of approximately 10–30% above the official rate. The compression from the 59% post-banknote-launch peak of 7 April has been steady and meaningful, even if the absolute premium remains elevated by the standards of a stable currency. Regional MarketsSouth Africa Earns a Credit Upgrade and a Rate Hike in the Same BreathThe past week will be remembered as one of the most significant in South African monetary and fiscal history in recent years, with two landmark policy events arriving within 48 hours of each other and delivering a combined credibility signal whose effects rippled across regional markets.On Thursday 29 May, SARB Governor Lesetja Kganyago announced that the Monetary Policy Committee had raised the repo rate by 25 basis points to 7.0%, a split 4-2 decision, with two members favouring a hold. The hike was the first since May 2023 and reflected the SARB's assessment that the April CPI reading of 4.0% year-on-year, driven by conflict-related fuel and food costs, had introduced meaningful second-round inflation risks that a pre-emptive tightening was necessary to contain. Kwacha Posts Its Best Dollar Rate in Three YearsThe Zambian Kwacha has continued to write history this week. Investing.com data confirm that the USD/ZMW rate touched 17.51 per dollar during the reporting period, the 52-week low for the dollar and, by extension, the kwacha's strongest sustained position in over three years. Today's trading range of ZMW17.51 to ZMW17.77, with an opening price of ZMW17.75, confirms that the currency is consolidating at these historic levels rather than retreating. The 52-week range of ZMW17.51 to ZMW26.91 encapsulates one of the most dramatic currency recovery arcs anywhere in the world over the past year.The kwacha's 33.45% year-on-year appreciation against the dollar is a performance that requires context to fully appreciate. In early 2025, the kwacha was trading above ZMW28 per dollar, a level that reflected the accumulated distress of Zambia's debt crisis, unresolved external obligations, fiscal slippage, and the absence of an IMF programme anchor. The transformation since then has been structural: the successful completion of debt restructuring in 2024 restored external sustainability and unlocked IMF programme disbursements; copper prices have remained elevated above US$13,000 per tonne on energy-transition demand; inflation has declined from double digits to 7.1% in March 2026; and the Bank of Zambia has maintained the 13.5% policy rate with the discipline needed to anchor expectations.The Pula Rides South Africa's Credibility WaveThe Botswana Pula benefited from a strong week, with the currency firming toward BWP13.20–13.35 per dollar as the rand's rally on the back of the SARB hike and Fitch upgrade pulled the pula higher through the currency basket linkage. The Fitch upgrade of South Africa on 5 June was the week's most significant pula catalyst: the rand strengthened to R16.22 on the upgrade announcement, and the pula moved in near-lockstep, with 1 BWP trading toward approximately $0.0748–$0.0758, approaching the upper end of the year's range. By Saturday 6 June, as the rand retraced to R16.55 on renewed Middle East tensions, the pula followed suit, confirming the tight currency basket co-movement that has characterised both currencies throughout 2026.The 52-week high of 1 BWP = $0.0735 was reached on 31 January 2026, at the peak of pre-conflict optimism and gold-driven rand strength. The 52-week low of 1 BWP = $0.0701 was recorded on 31 March, at the depth of the conflict-driven risk-off episode. The current level of approximately $0.0748–$0.0758 places the pula near the top of its annual range, stronger than it has been for most of the year, reflecting the partial recovery enabled by the ceasefire and now reinforced by the SARB hike and Fitch upgrade. The year-on-year gain of 3.60% is a solid outcome against the structural headwinds of subdued diamond revenues.The Naira Firms to Its Best Official Close Since MayThe Nigerian Naira delivered a quiet but genuinely positive week, with Vanguard's 5 June report confirming the official NFEM rate at approximately N1,361 per dollar, a meaningful strengthening from the N1,373–1,375 range of the prior week. The NFEM traded within a corridor of N1,359 to N1,365 across the full week, reflecting both the improved sentiment from the SARB hike and Fitch upgrade, which reinforced African credibility signals, and sustained CBN management of the official window. Wise's NGN/USD data confirm the naira's 5 June rate as 0.000735, its strongest daily reading of the week, implying approximately N1,360.5 per dollar at the mid-market rate. The 30-day range of 0.000720 to 0.000730 (implying N1,370 to N1,389 per dollar) confirms the naira has been on a gradual strengthening trajectory over the past month, modestly but consistently making new highs against the 30-day average. The parallel market traded between N1,390 and N1,405 on 5 June, maintaining a spread of approximately N29–44 above the official rate, a premium of roughly 2.1–3.2%. The Shilling Holds Its GroundThe Kenyan Shilling maintained its exemplary stability through the week , trading in a band of approximately KSh129.15 to KSh129.20 per dollar, a range so narrow that the week's entire price movement could be rounded to zero without material loss of accuracy. Xe data from 1 June confirm a KES mid-market rate consistent with the 6-month Wise average of KSh129.20, establishing beyond doubt that the shilling has been trading within a whisker of its half-year average for an extended period. The AXiS CCXVIII Friday 12 Jun 2026 20TParallel Premium Narrows as the ZiG Finds Its Footing

ZSE & VFEX WEEKLY COMMENTARYhe ZSE reversed early month losses in the week under review as investors buy in lows amid resurging appetite for penny stocks following the exodus of market heavies to VFEX. The ZSE All Share Index firmed by 4.04% week-on-week to Friday to close at 404.3 points, driven by a recovery in market heavies which outweighed sell-offs in medium caps. Year-to-date, the ZSE All Share Index is up 45.5% (41.2% in US$ terms), which compares to a 27.7% nominal growth (26.8% in US$ terms) registered in 2025, and a 117.6% nominal growth (14.4% in US$ terms) achieved in 2024. The ZSE mainstream index has strengthened by 3.9% (4.4% in USD terms) since the beginning of June, following a nominal 6.6% (0.4% in USD terms) growth recorded in May.The US$ denominated bourse, VFEX, partially recouped early month losses in the week under review as investor morale improves on the back of a slow-down in monthly and annual inflation. The mainstream VFEX All Share Index climbed by 0.61% against prior week to close at 234.99 points, driven by 8 risers which outweighed 5 risers. Month-to-date, the market is down -4.1%, countering a 7.1% growth garnered in May. The All-share index has climbed 32.9% year-to-date, compared to a staggering 70% growth achieved in 2025, and a mild growth of 4.1% registered in 2024. An aggregate of US$5,671,881 exchanged hands this week, up from US$2,413,787 traded in the prior week.On currency markets, the exchange rate has sustained stability for over a year amid a prolonged contractionary monetary policy since September 2024. A policy rate of 35%, since then, which has remained above the exchange premium which presently hovers at an average 31%, has significantly discouraged speculative borrowing and trading. Consequently, the parallel ex-rate has remained stable, with a positive year-to-date movement. The ZiG appreciated by 0.02% against the USD on the interbank market this week to close at ZWG26.77 per each US$.TThe AXiS CCXVII Friday 05 Jun 2026 21ZSE ASI VFEX ASI ZWG INTERBANK RATE 05/0608/0609/0610/0611/0612/0605/0608/0609/0610/0611/0612/0605/0608/0609/0610/0611/0612/06388.60 233.57 26.79397.15 236.77 26.80400.40 235.28 26.77397.30 238.02 26.78399.75 239.23 26.78404.30 234.99 26.774.04% 0.61% 0.02%ZSE TOP 10 INDEX 383.26 MEDIUM CAP INDEX 438.79 ZSE TOP 25 INDEX 417.55393.57 439.98 427.16397.39 440.85 431.08394.49 436.69 427.95396.25 442.34 431.04402.83 438.13 436.1705/0608/0609/0610/0611/0612/065.11% 05/0608/0609/0610/0611/0612/06-0.15% 05/0608/0609/0610/0611/0612/064.46%

TOP 5 WEEKLY RISERSTOP 5 WEEKLY FALLERS FINANCIAL MARKETS AT A GLANCE 2026AFDISARISTONBATCFIDELTADAIRIBORDHIPPOMEIKLESOKSEEDCOSTAR AFRICATSLTanganda 15016.4218136003000.1430086027011.36943924.0333747.4525498.984315806.299515390.16396002871.1361294.51991089.9574294.383111.3694399.954680539.2857Latest PriceZiG CentsPrevious WeekZiG CentsConsumerStaplesRTG 18.009 18.009Latest PriceZWL CentsConsumer Previous WeekZWL CentsCAFCAG/BELTINGSMASIMBANAMPAKUNIFREIGHTZECO140011.25303.333386.251600.00181450.0510.530086.251500.0018Latest PriceZiG CentsIndustrialsSectorPrevious WeekZiG CentsARTZDRPROPLASTICSTURNALLWilldaleRioZim6.8054129.41139.99724856.8054129.41139.02475Latest PriceZiG CentsMaterialsSectorPrevious WeekZiG CentsTN CYBERTECHZIMPAPERS157.0214.57.02Latest PriceZiG CentsICTSectorPrevious WeekZiG CentsMASHHOLDFMP16790167.843790Latest PriceZiG CentsReal EstateSectorPrevious WeekZiG CentsBATCBZRIOZIMTURNALLTSL21813.001935.3585.0010.00747.4564232351016741.7%13.8%13.3%10.8%9.9%COUNTER PRICE CENTS CHANGE % CHANGE HIPPOMEIKLESTANGANDAZSE LTDAFDIS860.00270.00498.98120.001501.00 (230) (24) (40) (8) (79)-21.1%-8.3%-7.5%-6.3%-5.0%COUNTER PRICE CENTS CHANGE ANGE Interbank Market Rate 26.770.02% ZSE Top 10 Index 402.835.11% ZSE All Share Index 404.34.04% NGSE All Share Index 244,738.70.88%11,160.93ConstantBSE All Share Index LuSE All Share Index 25,677.82-0.05%VFEX All Share Index 234.990.61% JSE All Share Index 112,721.31.3%CBZFBCHFIDELITYFMLNMBZZBFHZHLZSE Holdings1935.351095.6959.05214.5548.4659520661201700.2199114559.05217.225453552069128.0347Latest PriceZiG CentsFinancialSectorPrevious WeekZiG Cents404.3333.71ZSE Financials SectorZSE All Share indexZSE Financials indexWOW 3.8% MoM 11.4% YTD 10.1%404.3171.6ZSE Industrials Index (New)ZSE All Share indexZSE Industrials Index (new)WOW 1.1% MoM -1.2% YTD 25%404.3701.65ZSE Real Estate IndexZSE All Share index ZSE Real Estate IndexWOW 3.9% MoM 10.8% YTD 14%11160.93404.3BSE All Share IndexBSE All Share IndexZSE All Share indexWOW 0% MoM 0.3% YTD 1.2%404.3234.99VFEX All Share IndexZSE All Share index VFEX All Share IndexWOW 0.6% MoM 2.7% YTD 32.9%404.3402.83ZSE Top 10 IndexZSE All Share indexZSE Top10 indexWOW 5.1% MoM 10.9% YTD 43%404.3853.98ZSE Consumer Discretionary IndexZSE All Share indexZSE Consumer Discretionary indexWOW 0% MoM -2.3% YTD 13.7%404.3400.34ZSE ICT IndexZSE All Share indexZSE ICT IndexWOW 0% MoM -2.5% YTD 48.8%-5.3%10.7%Interbank MarketInterbank MoM Mvt.ZSE All Share index25677.82404.3LUSE All Share IndexLUSE All Share IndexZSE All Share indexWOW -0.1% MoM -3.9% YTD -0.9%244738.7404.3NGSE All Share Index NGSE All Share IndexZSE All Share indexWOW 0.9% MoM 1% YTD 57.3%112721.3404.3JSE All Share Index JSE All Share IndexZSE All Share indexWOW 1.3% MoM -2.1% YTD -2.7%404.3172.95ZSE Materials IndexZSE All Share indexZSE Materials IndexWOW 5.5% MoM -0.03% YTD 8.1%404.3311.07ZSE Consumer Staples IndexZSE All Share indexZSE Consumers Staples indexWOW 4.5% MoM 12.8% YTD 33.1%404.3438.13ZSE Medium Cap IndexZSE All Share indexMedium Cap indexWOW -0.2% MoM 9.7% YTD 57.5%

Regional Economic WatchWork on the Shamva project, about 100 km (62.14 miles) north-west of Harare, will begin in August, and Mutapa is negotiating with foreign lenders for the balance of the project’s capital requirements, it added.The rest of the additional production will come from a capacity expan- sion at the company’s Jena mine, where work is expected to start in the final quarter of 2026, improved output at its Freda Rebecca mine, and moves to incorporate material from artisanal miners.Mutapa, owned by Zimbabwe’s sovereign wealth fund, is key to the coun- try’s ambitions to raise gold output. The country is targeting 50 metric tons of production this year from last year’s record 46.7 tons.Gold is Zimbabwe’s top foreign currency earner, with export sales reach- ing $1.19 billion in the first quarter of 2026, against $579 million during the same period last year.Zimbabwe earned $4.61 billion from gold exports in 2025, nearly half of the country’s total exports of $9.7 billion.Mozambique The sending of promotional SMS messages in Mozambique will now depend on prior authorisation from users and may be blocked entirely through a mandatory mechanism to be provided by mobile operators, according to new regulations.In a resolution dated 2 June, Mozambique’s communications regulator, the National Communications Institute of Mozambique (INCM), deter- mined that “PROMO messages may only be delivered to users who have previously authorised the respective category (whitelist) through their operator”, effectively ending the sending of advertising SMS messages without the recipient’s consent.According to the INCM, the measure comes amid an increase in the mass and automated sending of advertising SMS messages, including cases of fraud and the use of platforms that send messages indiscriminately to multiple numbers, circumventing control mechanisms and reducing traceability.At the same time, operators will be required to provide, “simply and free of charge”, a global mechanism that blocks the receipt of any promo- tional SMS, regardless of whether it originates from a short code or a mobile number (MSISDN). The blocking mechanism must take effect immediately or within the shortest technically possible timeframe.Once the blocking option has been activated, only messages that are “strictly related to emergencies, firefighters, hospitals and ambulances” will be permitted, provided they originate from previously identified senders. Any promotional, commercial or betting-related content will be prohibited.BurundiBurundi plans to increase its government spending next fiscal year by about one-quarter, helped by extra revenues from the mining sector and a diversification of its exports, the country’s finance minister said.The Central African country will spend 6.7 trillion Burundi francs ($2.26 billion) during the twelve months starting July, up from 5.4 trillion francs this fiscal year, the minister, Alain Ndikumana, said in a budget speech.Economic growth is forecast to rise to 5.5%, up from 4.7% this year. Faster growth will be driven by “intensification of irrigated agricultural produc- tion, … (and) a gradual increase in mineral production” among other things, Ndikumana added.Burundi’s mineral output includes gold, tin, tantalum and tungsten. The government will scrap import taxes on electric and hybrid vehicles as fuel shortages have been exacerbated by the Iran war, the finance minister said.KenyaKenya’s international bonds gained on Friday as investors viewed a poten- tial deal to end the conflict in the Middle East as beneficial to the East African nation, which has experienced retail fuel price jumps that sparked deadly protests last month.The 2048 maturity added more than 2 cents to bid at 95.8 cents on the dollar, its highest in almost four months, Tradeweb data showed. Lon- ger-dated international bonds from other emerging market oil importing nations were also up.“The moderation in oil prices has supported some outperformance by Kenyan Eurobonds after they initially significantly underperformed peers amid the Middle East crisis,” said Samir Gadio, head of Africa strategy at Standard Chartered.ZimbabweZimbabwe’s state-owned gold mining company Mutapa Gold Resources plans to double its annual output to 220,000 ounces by 2029 after secur- ing funding for an expansion project, according to production reports made available to reporters on Friday.Mutapa, the country’s biggest gold producer, had output of 104,626 ounces in the financial year to March 31, according to the documents, a 10% decline from the year before mainly due to lower grades.The company said it had secured $75 million from Zimbabwean banks, half the funding requirements for its Shamva Hill open pit project, which will raise the mine’s output to nearly 80,000 ounces annually from about 24,000 ounces currently.23 The AXiS CCXVIII Friday 12 Jun 2026*From Page 4EQUITY AXISfifffflffiflffiFinancial insights at your fingertips.flflfl flffi fl
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