The AXiS XLIII

The EQUITY AXIS

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CONTENTS The AXiS XLIII 2 September 2022

Economic News & Analysis

4 Zimbabwe’s debt crisis and lessons from Zambia
5 State of the economy:

Why the Zim dollar is strengthening?
7 The Power Of Money:

Zimbabwe On A Stand-still As RBZ Mops Up Liquidity
8 Post Pandemic Fever Digitilazation a must for banks : POSB
9 As Japan commits $30 billion in aid to Africa,

Is Zimbabwe on the radar?

The Cover Business News & Insights

With Zimbabwe in deep debt bondage with an 10 ZB Financial: PAT more than doubles in HY’2022
unsustainable Public and Publicly Guaranteed 11 Smelter completion progress hampered by delays to 62%, BNC reveals
(PPG) external debt what lessons can we take 11 Improvement in total income spurs FBC Holdings’ HY1’2022 profit
from Zambia 12 Zimplats Revenue: plummets 8% at backdrop of a decrease in metal

State of the economy prices
14 Fidelity Life emerges from a loss position to post ZWL 274.9 million profit
Political instability breeds speculative crises in an
economy, and economic crises reduce levels of Markets
satisfaction with democracy for all citizens,
which leads to further speculation and a lack of 20 Markets Watch
confidence. That cycle continues, plunging the 21 ZSE Weekly Commentary
country into a seemingly infinite order of chaos 22 Financial Markets at a Glance
23 Weekly Commodity Pulse
The power of money
World News
Money is a source of status and social prestige, a
giver of physical and psychological security, a 15 Politics around the world
factor in human happiness and well-being, a
foundation for mili- tary strength, a source of 17 Business around the world
public influence, and a source of political power,
to which other social sciences may add. ZSE ASI 14,365.64 ZSE TOP 10 8,720.74 MEDIUM CAP INDEX 29,500.23 ZSE TOP 15 9,695.40 SMALL CAP INDEX 520,512.00 ZWL INTERBANK 528.0554
14,071.03 8,470.26 29,448.41 9,453.99 520,804.34 532.0148
ZB Financial: PAT more than doubles in 13,974.84 8,408.55 29,312.16 9,387.75 501,262.69 535.9859
HY’2022 13,830.34 8,331.69 28,917.19 9,315.71 501,097.71 542.7004
13,705.12 8,209.35 29,026.80 9,199.73 499,251.50 546.8254
ZB Bank Limited’s profit after tax improved by 13,747.45 8,230.73 29,149.75 9,222.06 500,174.12 551.9291
249% from ZW$1.474 billion in 2021 to -4.30% -5.62% -1.19% -4.88% -3.91% 4.52%
ZW$5.148 billion while ZB Building Society
recorded a profit after tax of ZW$1.037 billion
from ZW$191.8 million.



& Analysis

Zimbabwe’s debt crisis
and lessons from Zambia
The extension of a debt relief package to
Zimbabwe’s neighbour Zambia, by IMF, resolution and economic reform. In the recent babwe to the HIPC Initiative. If the HIPC Initia-
announced on Wednesday, is a welcome past, Zambia has cut back excess expenditure, tive is not available, the government of Zimbabwe
development for the debt-distressed Southern reduced the acceptable debt to GDP ratio to 65% pursues a combination of using Zimbabwe’s own
African country, which has been grappling with through a parliamentary bill, stopped some con- resources, and bridge concessional loans from
a myriad of challenges including inflation and struction projects and reimbursed unutilized funds bilateral development partners who are willing to
exchange rate depreciation among other eco- of US$2 billion, and reevaluated all government channel their excess resources to support Zimba-
nomic ills, in years recent. The case for Zambia contracts with suppliers, and shunned corruption. bwe’s Arrears Clearance, Debt Relief and Restruc-
brings back to the fore Zimbabwe’s debt over- Hichilema has also shown the appetite and resolve turing Strategy. Unlike Zambia, Zimbabwe’s debt
hang and the possible scenarios facing the to privatize mining entities taken by the former crisis was not as a result of imprudent borrowing
country as it forges ahead in efforts to clear its government and bring back foreign capital. These but a reflection of growing crisis which comprised
long outstanding debt. On Wednesday the Inter- are some of the initiatives that have prompted the the sources of debt servicing as measured by
national Monetary Fund (IMF) announced that IMF to come to the rescue after 3 years of court- exports and government revenues.
it had approved a US$1.3 billion, 38 months ship. In 2019, the Bank said it was not in a posi- In July, Zimbabwe appointed African Develop-
Elective Credit Facility (ECF) arrangement for tion to bail out Zambia because it saw no resolve ment Bank Group President Dr. Akinwumi Adesi-
Zambia to help restore macroeconomic stability. from authorities to reform the economy. na to spearhead its debt restructuring campaign
The IMF went further to stress that the Zimbabwe, on the other hand, is in deep debt and the initiative reportedly received a nod from
ECF-supported program will help reestablish distress with an unsustainable Public and Publicly representatives of multilateral financial institutions
sustainability through fiscal adjustment and debt Guaranteed (PPG) external debt overhang amount- and other partners who agreed to work together
restructuring, create fiscal space for social ing to US$14.4 billion which is about 90% of to develop an action plan that will resolve the
spending to cushion the burden of adjustment, GDP, as at the end of December 2021. The coun- country’s debt arrears. These maneuvers have not
and strengthen economic governance, including try has been unable to meet its debt servicing yet fully materialized as no credible plan has yet
by improving public financial management. It obligations and has, therefore, been accumulating been tabled outside of the debt clearance plan
said the program will also catalyze much external debt arrears since 2000, which are now outlined above, which has been in position for
needed financial support from development estimated at US$6.6 billion as at the end of more than a year with little success to show for
partners. The IMF Executive Board’s decision December 2021. Public and Publicly Guaranteed it.
will enable an immediate disbursement equiva- external debt owed to the multilateral creditors, as It is paramount that the government of Zimbabwe
lent of about US$185 million. Zambia’s official at the end of December 2021, amounted to pursues concrete fiscal and broad economic
external debt is estimated at US14.4 billion US$2.7 billion, of which US$1.5 billion is owed reforms to get international approval and buy-in
while unofficially quoted in the region’s US$17 to the World Bank Group, US$711 million to the and also debt forgiveness. On the fiscal front, the
billion. China alone accounts for about 40% of African Development Bank, US$358 million to Treasury has been more robust restructuring its
the total debt or US$6.6 billion. At its peak, the European Investment Bank, and US$66 mil- spending and enhancing its revenues, but more so
Zambia’s debt to GDP ratio was 120% and the lion to other multilateral creditors. On the other not in sustainable ways. Over the short term, the
country spend between 30% to 40% of its hand, bilateral PPG external debt at the end of aggressive fiscal tightening measures have lowered
fiscus resources on debt servicing. December 2021 amounted to US$5.6 billion, with spend and with-it aggregate demand which in turn
US$3.9 billion owed to the Paris Club creditors drove the economy into a 2-year recession. Once
Most of Zambia’s unsustainable debt was and US$1.8 billion owed to Non-Paris Club credi- the measures were loosened, the government went
accrued under the last regime of Edgar Lungu, tors. into overdrive financing its infrastructure projects
who lost power to the incumbent Hakainde The arrears, default and accumulation of Zimba- with domestic credit and its own resources, fuel-
Hichilema in 2021. Much of the funds were bwe traces to the late 90’s when Zimbabwe ing inflation and exchange rate depreciation.
channeled towards mega infrastructure projects undertook unsustainable fiscal spending towards Clearly, the economy is on an unsustainable path
such as Highway roads and airport expansion. the funding of DRC war and the payment of war that needs broader restructuring beyond the fiscus.
However, Zambia’s Chinese debt is believed to veterans. Subsequently, the eruption of land inva- Much of the fiscal resources are still being chan-
have unfavourable terms, the chief being higher sion curtailed production and GDP for the agricul- neled towards loss making quasi government and
interest rates. Moreover, the debt was not ture-based economy. These factors together with parastatal entities, which would otherwise have
utilized efficiently as construction contracts the imposition of Western sanctions and capital been channeled towards economic growth. The
were grossly inflated and awarded to proxies of flight weighed on the country’s ability to generate demise of parastatal is largely because of corrup-
the ruling elites. Some of the debt was chan- forex and fiscal resources to clear its international tion which is fueled by nepotistic tendencies in
neled towards the nationalization of copper obligation. Economic growth has been sluggish the employment of
mining companies. In 2020, as COVID-19 hit, ever since with bouts of positive growth and defi- key personnel.
Zambia became the first country to default in cits. The country had at its disposal, monetary Once government demonstrates that it is increas-
the COVID-19 era, as it reneged on its Euro- policy, to steer growth and qual recessions. The ing transparency in terms of public fund manage-
bond commitment. period 2003 to 2008 witnessed gross stress of ment and not mortgaging precious resources for
The awarding of a US$1.3 bailout package by monetary policy as authorities experimented with grossly low values, while routing out corruption
IMF to Zambia which was conditional on the domestic resources to fight an economic implo- and privatizing some of its entities, rationalizing
G20 Common Framework demanded that the sion. The results were a worse off outturn eco- its workforce, as espoused in the Transition Stabi-
distressed country brings together and forge an nomically, which to date, still shows in scars of lisation Program (TSP), it becomes inevitable for
agreement with both multilateral and bilateral dilapidated infrastructure and poor service deliv- the international community particularly indebted
lenders, in pursuit of a debt restructuring reso- ery. As part of its reform agenda, Zimbabwe is parties to commit to debt restructuring, including
lution. Zambia’s collective lenders, including the exploring 2 ways to resolve the debt crisis. Zim- partial forgiveness. It is also important to make
largest, China, have consented to China taking babwe has been exploring traditional debt relief right with the politics of the day, since multilater-
up a Chairmanship role for the collective lend- options, including the Highly Indebted Poor Coun- al lending is influenced by underlying political
ers. These are huge milestones given that China try (HIPC) Initiative, which provides maximum actors, the US being a major one. Zimbabwe’s
alone has up to 20 both multilateral and bilater- debt relief for beneficiary countries if the window politics has long been polarized and elections
al lenders with exposure to Zambia and also for the HIPC Initiative is availed. This would how- disputed. A political settlement from within is
that the wide strataof lenders from East to West ever require a modification or exception granted by important to posit the country as a competing
typically complicates engagements. One other IDA’s Executive Board, to the World Bank HIPC democracy, eager to uphold the rule of law. The
key condition for the IMF relief wasfor Zambia Initiative eligibility criteria, for the reclassification undertone from maneuvers pursued to date shows that
to demonstrate a key resolve in its debt of Zimbabwe as an IDA-Only country. This will there is less willingness for global partners to come
also require IMF’s Board grandfathering of Zim to the table unless Zimbabwe’s politics is fixed.

5 The AXiS XLIII Friday 02 Sept 2022

State of the economy:

Why the Zim dollar is strengthening?

P olitical instability breeds speculative crises lems created by monetary authorities since the Inflation
in an economy, and economic crises reduce introduction of the Zim dollar. The RBZ and trea- According to Steve Hanke, a renowned economics
levels of satisfaction with democracy for sury are guilty of injecting a reported Z$1 trilli- professor at John Hopkins University, “clowns” in
all citizens, which leads to further speculation oninto circulation. A 100-fold increase in roughly Harare are running Zimstats, which measures
and a lack of confidence. That cycle continues, 30 months! The liquidity crisis has inevitably inflation. Officially, Zimbabwe’s inflation climbed
plunging the country into a seemingly infinite given rise to rent-seeking activities and specula- further to 285% in August, from 256.9% in the
order of chaos. In Zimbabwe, the sheer lack of tion. These activities have then trickled down into prior month. This was yet another record-breaking
confidence and trust in the state, amongst a behe- the black market where economic players have an figure, as it was the highest reading since Febru-
moth of other problems, has in the past given rise insatiable thirst for the greenback, thereby push- ary of 2021, amid rampant price increases, fuelled
to a speculative environment that produced the ing the exchange rate to unprecedented levels. by exchange rate volatility, money supply and
highest inflation rate in the world. Present-day There is still a reported Z$1 trillion in circulation global fuel price hikes. The table and chart below
Zimbabwe still has the highest inflation in the and in order to solve the liquidity crisis, the RBZ reflect the disparity between the inflation figures,
world, in what is still a very speculative policy needs to extract liquidity of around Z$400 billion taking note that these are measured quite differ-
environment. from the market, with the remaining liquidity ently.
Now, to solve a speculative crisis, there either has after that manageable by “open market opera-
to be a drastic shift in the political landscape tions”. It should also be noted that ZimStats has recently
(which is highly unlikely) or a radical alteration Following a number of interventions by the gov- attacked Hanke over his calculations which
of the monetary and fiscal policy environment ernment, a shortage of Zimbabwe dollar notes has according to them paints a gloomy picture of the
(which seems to be happening). This week major hit the market. Although the liquidity crunch has country. Hanke also believes that the gold coins
independent media outlets stated that the RBZ resulted from low demand for goods and services, were put in place to facilitate corruption by gov-
and treasury interventions have saved the Zimba- it was very intentional. A directive by the ernment officials. I for one support Hanke’s PPP
bwe dollar. Is this really true or are we witness- Reserve Bank of Zimbabwe that government method as an alternative source of inflation statis-
ing a temporary phase of relative stability before should suspend payments to its suppliers pending tics. However, looking at M-O-M inflation paints
the possible implosion of the political landscape investigations by the Finance Ministry on suppli- a rather different picture. In August,
next year which may see the economy deteriorate ers who are pegging prices using the parallel month-on-month inflation fell to 12.4% from
again? However, currently, the state of the econo- market exchange rate compounded by the govern- 25.6% in July in response to corrective macroeco-
my is a relatively positive one, depending on ment’s suspension of pay-outs to contractors, and nomic policy measures by the RBZ and treasury.
whether you are talking to the average Zimba- the introduction of gold coins to mop up excess Further, the slowdown is being buttressed by the
bwean or a contractor. liquidity has culminated to strengthen what continued decrease in fuel prices and the overall
But first, let’s delve into the economic theory seemed like a dead local unit. impact of the interventions.
aspect of the crisis. Why does the speculative According to Economist Gift Mugano, “The gov-
crisis exist, and why the gold coins were the per- ernment closed the tap on liquidity, which further
fect instrument to fix it? confirms the long-held belief that government is
Fixing the speculative crisis: The Gold Fix the biggest driver of inflation. So now that they
In his book “A History of Financial Crises”, C.P have stopped pumping money into the market, the
Kindleberger, discloses that many anomalies exist results are clear. Service providers play a very
in financial markets that seem to be driven by important role, so withholding funds is just a
investors' sentiments and may also include irratio- disaster for service delivery. The situation only
nal behaviour. In behavioural finance, such mech- indicates bankruptcy. In future, companies whose
anisms are studied. payments have been delayed will refuse to do
Shiller in his book "Irrational Exuberance" point- business with the government and this will result
ed out that most investors base their financial in a total collapse of public services and the proj-
decisions on personal feelings and random obser- ects that the government is working on."
vations rather than on quantitative analyses. Further, the central bank cleared the backlog of
Concerning currency crises, one can distinguish all allotted amounts in respect of auctions FX94
between informational and speculative crises. An to FX102. It is in the process of settling the
informational crisis explains a currency attack by ring-fenced backlog from main auctions amount-
the appearance of relevant negative news which ing to US$169 million. This clearance of the auc-
has an impact on the valuation of the exchange tion backlog has triggered a recent shrinking of
rate. The deterioration of a country's fundamen- Zimbabwean dollar balances.
tals may e.g., lead to an informational currency If kept unchecked this shortage might cause
crisis. another liquidity crisis, although currently, the
The question is, whether the information is reli- measures are actually working to tame inflation
able and relevant for the intrinsic value of a cur- and the exchange rate. A lot of speculation took
rency and will therefore reflect the rational place in the black market which has been starved
behaviour of investors. With imperfect and asym- of the local unit, causing a drastic appreciation of
metric information, expectation formation may the ZWL on the informal market. In the formal
trigger a self-fulfilling crisis which, under certain markets, the exchange rate continues to climb
circumstances, reflects rational behaviour. with US$1: ZWL 559.8774 as the current rate,
Speculative currency crises involve irrational mo- compared to ZWL750 on the black market, which
tives which may lead to exaggerations. New rele- is reflective of the true exchange rate. As the two
vant information does not arrive shortly before a rates converge, a true market rate will be deter-
currency attack. At the time just before a specula- mined, at which point, the Zim dollar can be
tive crisis occurs, no change in fundamentals termed as stable, or “saved”.
takes place. Such a crisis develops over time
while the instability of the system grows. The
delay rule applies, which means that local contin-
uous adjustments are pursued up to the last
moment when an abrupt movement of the
exchange rate takes place and corrects the inher-
ent imbalance.

Over the last month, we delved into how the Source: RBZ
liquidity crisis is one of if not the biggest prob

6 The AXiS XLIII Friday 02 Sept 2022

The Power Of Money:

Zimbabwe On A Stand-still As RBZ Mops Up Liquidity

E conomists claim that money serves as a the informal exchange decline in demand due to the same factor. One
medium of commerce, a store of value, market. This allowed would ask how pinning down liquidity at the
and a unit of account. It is a source of ZWL holders to dispose RBZ can affect a layman? According to a
status and social prestige, a giver of physical of their local money in random survey by Equity Axis in Harare, most
and psychological security, a factor in human formal channels. Howev- private entities have postponed remuneration dates
happiness and well-being, a foundation for mili- er, the coins have a for their workforce, citing liquidity problems. The
tary strength, a source of public influence, and lock-up period of 180 companies have delayed payment of salaries by
a source of political power, to which other days from the date of at least a week as the month has already come
social sciences may add. However, this terminol- purchase. Since the intro- to its end, while attributing illiquidity due to
ogy only seeks to appraise the availability of duction of the coins, an non-payment by clients. A follow-up with respec-
money while paying a blind eye to the adverse aggregate of 10,000 have tive clients of affected companies in study indi-
impact of unavailability of it in the functioning been minted as at the cated that the clients were also in a dilemma of
of an economy. 26th of August, 2022, liquidity constraints as they are also awaiting
Zimbabwe has become a topic, globally, for according to the Reserve payments from provision of their respective
having series of the worst currencies in the Bank of Zimbabwe’s services. This is a highlight of how one measure
world. The Southern African nation currently Monetary Policy Commit- can affect an entire chain through a ripple effect.
uses the ZWL as its official local currency. tee. Of these, a total of This is also indicative of how the economy can
Since its inception, the currency has been 6,799 have been sold, be halted by a measure which can be applied to
significantly depreciating against other hard cur- representing 68% of the one arm of the chain and yet affect the whole
rencies due to lack of confidence in the Central total minted coins. chain and its attributes.
Bank as citizens are weary of a repetition of Due to affordability Going forward, if the measures are sustained, the
history, along with other weak macro-economic factors, 75% of the economy as a whole will register a record sudden
factors which this paper has been dwelling on disposed coins were sold decline in demand across all sectors. This will
for some time now. Since being introduced to to corporates while the significantly impact on the country’s gross
the US$ and other hard currencies following the remaining 25% were domestic product and result in a wide variance
record inflation of 2008, Zimbabweans have had bought by individuals. As per initial intention of between anticipated economic growth for 2022
a hard time preferring any other currency to the the gold coins, which is value preservation of the and the actual. However, if the measures are
US$. This has led to the rise of currency highly volatile ZWL, 95% of the sold coins were relaxed, viability of the informal currency market
exchange markets in the country, both formal transacted in local currency while the remaining will also be restored. The country will witness
and informal. On both, the formal and the infor- 5% were bought in foreign currency.95% of the another bloodbath of its official local currency
mal currency exchange markets in Zimbabwe, coins sold in local currency represents 6,459 and restart the process of containing its deprecia-
the value of the US$ against the ZWL has gone coins. Basing on an average US$ price of 1,800 tion. Viable measures in the obvious scenarios
up by over 300% since the beginning of the and an average formal market exchange rate of would have been to fully eradicate the potential
year, indicating the high volatility and unde- 500 over the period the coins have been on sale, viability of the informal currency market. This
pendability of the ZWL. Meanwhile, according an estimated ZWL5,8 billion has moved from could be done by ensuring the formal exchange
to official statistics from the Central Bank, circulation into RBZ’s coffers. This has seen the rate catches up with the informal before cash in
annual consumer price inflation rose to 285% in money that would traditionally find its way to the circulation rapidly grows again. The premium
August as economic players chase the value of currency market, going into the reserves of the between the two aforementioned currency markets
money. Central Bank, thereby containing supply of local has since been depressed from over 100% to
The above dilemma of the local currency has currency and manage the exchange rate. However, barely 50%. Taking advantage of this outlook
led to a chain of drastic measures by the Cen- since the figure is quite insignificant comparative will profiteer the Central Bank in the success of
tral Bank in trying to foster confidence in the to total reserve money, the Central Bank had to its measures. The country currently boasts of a
ZWL as well as contain value loss. In the prior introduce other stringent measures, which included 2:3 ratio of foreign currency to local currency.
year, there was an average of one statutory suspension of payments to contractors contracted However, most of the foreign currency barely
instrument in every one and a half days being by the state. Similarly, the billions that would enters formal channels as citizens have lost confi-
issued in a bid to contain economic turmoil. traditionally move from contractors to the curren- dence in the system. If the formal currency
Early in the second quarter of this year, the cy market in search of value, is now piled up in market reduces the premium between the two
government issued more stringent measures the coffers of the Central Bank. This pins down currency markets to zero, then increase availabili-
meant to curb the rampant inflation. However, on ZWL supply even further, comparative to prior ty of foreign currency in formal markets, then
these measures have all been focused on one liquidity levels on the informal currency market. confidence can be restored along with a balance
key element: Money, while ignoring other funda- A random survey by Equity Axis in Harare has in the exchange rates. Any further actions to
mentals the economy is built on. For example, indicated that most private entities have delayed command the economy as was previously the
some of the measures enacted included the sus- with remunerations for their workforce, going past order of the day will reverse the success of the
pension off bank lending (loans) along with their usual deadline for salary disbursement, as containment measures noted thus far.
restricted activities on the local exchange they highlight liquidity constraints. They have
market, the Zimbabwe attributed the chain to be sourced from clients
who have delayed with payment of services while
Stock Exchange (ZSE). As a ripple effect, also raising liquidity challenges.
some companies had to suspend capital projects However, the term “liquidity” as used in econom-
which depended on external sources of capital, ics is also literal. It is also derived from the abili-
while the ZSE turned into a bloodbath which ty of money to easily move from one hand to
saw the bourse plunging from being the best another. Therefore, any arm in the chain of mon-
performing in the world to the worst perform- ey-movement should never be interrupted lest it
ing. Despite this, the government continued to will affect every tributary in the chain. The
apply more measures all aimed at tackling the non-payment to contractors means the contractors
same previous element, money. are not able to pay their service providers and
In the third quarter of 2022, the Central Bank service or fund their operations further. Other
of Zimbabwe introduced the Mosi-oa-Tunya efforts in mopping up liquidity means economic
gold coins. This was after the ZSE has lost its players are left hanging without any money to
viability and options for value preservation in facilitate trade. Scarcity is one of the greatest
ZWL based were running out. Therefore, the “virtues” any money should hold. However, scar-
government had to quickly act in a bid to con- city should not be confused with unavailability.
tain the problem it had started, and prevent The Zimbabwe economy is currently facing a
flooding of the currency markets as people challenge of unavailability of liquidity in both
chase value in hard currencies. The gold coins foreign and local currency. According to some
could be bought in either local or foreign cur- reports, prices of goods have suddenly gone down
rency, at the prevailing formal exchange rate mildly, as liquidity is constrained. This should,
which usually offered a 100% premium against however, also be reported with the sudden sharp



The AXiS XLIII Friday 02 Sept 2022 8

Post Pandemic Fever

Digitilazation a must for banks : POSB
T he COVID-19 pandemic was an unprece-
dented catalyst for digital banking across flexibility but also for more tailored services. So how should banks rethink the digital banking
the globe. With many branches temporarily That said, irrespective of the banking channel experience and expand their digital offerings with
shut down and most physical interactions mini- they use the branch, phone, or a mobile app one an eye on increasing customer loyalty?
mized, bank customers in Zimbabwe had no factor continues to remain important for them: the
choice but to embrace these self-service channels human touch. They could consider many things, from personal-
like never before. In this light of this, we can Some of these episodic interactions may return to izing experiences to alleviating customers’ per-
safely say that the pandemic is continuing to the branches, especially among the elderly who ceived security risks. Equally important, if not
reshape banking preferences and behaviours are more comfortable with live, in-person interac- more, is imperative to humanize banking interac-
among Zimbabwean customers. Digital banking tions. Branches are likely to remain pivotal to tions, whether customers choose to engage with
perhaps for the first time may be contributing to banks’ overall revenue growth and strengthening their bank in person at a branch or digitally with
overall satisfaction with banks, which remains customer relationships. However, banks should a chatbot while banking online.
quite robust overall. capitalize on the digital banking momentum by
POSB has traditionally been known to have the blending digital and human experiences. Zimba- The majority of banks in Zimbabwe still have
elderly as its clientele but with the new trajectory bwean banks have the rare opportunity to lay the fewer people embracing the mobile application
that the bank has taken other age groups are groundwork for a well-digitalized banking sector channel and internet banking whereas the mobile
building more confidence to join the bank. So as an upshot of the pandemic. shortcode-based platform is the most trusted
what needs to be done to aid the bank’s efforts It can be noted however that in Zimbabwe urban among Zimbabweans.
to lure the younger generation and secure the dwellers and those with full-time jobs are also
future of the bank? At the just-ended annual gen- likely to be more open to new banking relation- The pie chart below shows that most customers
eral meeting, the CEO for POSB use the Cell bank platform due to its
of POSB Admore ships. For instance, those who receive their salary ease of use and compatibility with all mobile
Kandlela highlighted in their bank can do without having to go to the devices but it goes
that the bank was bank to get money but all transactions can be without mention that
planning on creating handled using digital platforms. Paperless strate- most urban dwellers
value for the share- gies can increase productivity and post the coro- will be able to use
holder by continuing to navirus pandemic, globally, there is a growing the application and
accelerate the digitali- focus on improving sustainability. Zimbabwean internet banking
zation strategy to pro- banks at this juncture need to start considering hence it’s an area
vide seamless digital the adoption of new technologies like AI, Data that banks should be
financial solutions to Analytics, and RPA (robotic process automation) ready to capitalize on.
its clients at low cost. which then means that the focus is no longer just But how much of this
Most banks in Zimba- about being digital, but rather better equipping digital momentum is
bwe have embraced internal business processes to survive challenging sustainable in a
digital banking and situations. These initiatives can help a bank like post-pandemic Zimba-
POSB is no exception, POSB lure the younger generation and in the pro- bwe? The majority of
Cell bank is the POSB cess secure the bank’s future. Zimbabweans today
USSD/Shortcode-based are using digital
mobile banking plat- banking channels
form. ‘On the Go App much more now com-
is the POSB mobile pared to the prepan-
banking application demic days.
and POSB is the
POSB Internet Banking Many banks saw
Platform. It cannot be record growth in digi-
stressed enough that tal banking usage and
young customers will con- welcomed first-time
tinue to use digital channels for simple transac- users. Not only does
tional activities, but many customers desire this rise in digital
high-touch interactions for more complex products transactions bode well
and services. With POSB ready to go further on for banks’ cost reduction plans, but it is also con-
this journey of digitalization, meeting customers’ tributing to topline growth. For instance, POSB
latent need for the human touch in digital chan- has seen an increase in the bank’s income of
nels is a real opportunity for the bank. 32% through internet banking and a 78% increase
Digitalization can facilitate the luring of the through the mobile application just by comparing
younger generation to join banks. Younger cus- the numbers for the first quarter of 2022 against
tomers demonstrate a preference for both physical the second quarter of 2022.
and digital channels. However, they are less satis-
fied with their primary banks, and they are also Banks are delighted to observe this increased dig-
at a higher risk of switching. Generally, they are ital adoption they had spent the last several years
also more open to financial products from digi- coaxing customers to take up mobile banking.
tal-only banks and large technology companies. Banks however should note that users will likely
Almost every bank, large and small, saw a spike continue to prefer the convenience of digital
in digital banking usage in the past months. But channels for simple, transactional activities, such
will these new digital initiatives lead to sticky as paying bills, transferring funds, or depositing
relationships? checks.
The answers to these questions are not as
straightforward as they may seem. Customers’ Young customers are likely going to use mobile
preferences for digital banking are very much banking apps much more frequently than older
context-dependent. They may use digital channels customers, likely for their “anytime, anywhere”
for many routine transactions, but for services banking functionality. This then means that for the
that are complex many customers will want digitalization process to work banks will need to
in-person interactions, even as their needs are be innovative enough to lure the young genera-
evolving with changing social, economic, cultural, tion to be a part of the journey.
and technological trends. Post-pandemic experi-
ence, customers seem to be looking not only for
instant gratification, increased convenience, and

9 The AXiS XLIII Friday 02 Sept 2022

As Japan commits $30 billion

in aid to Africa, Is Zimbabwe on the radar?

According to AFDB president Adesina, the repayment of interest-free loans as well as
Africa only receives 0.003% of Tokyo's $2 other loans to African nations when those debts
trillion in foreign direct investment world- are due says a lot about how seriously it takes
wide. Africa offers some of the best investment its commitment to work with developing nations.
prospects and returns in the world, and Japanese It would be extremely beneficial for world growth
companies have been urged repeatedly to invest and peace if Japan and other Western nations
more there. By 2050, it is anticipated that Africa could open sincere discussions with China rather
would account for 25% of the global population. than hardening their positions against it to coordi-
Japanese businesses that made audacious invest- nate efforts to address the common problems
ments in Africa were prospering, with Toyota humanity faces, such as the food crisis, climate
Tsusho's investment in auto manufacturing in change, and other issues. If Japan's assistance to
South Africa serving as a significant example. In Africa is not used to undermine China or for
March 2022, Toyota Tsusho reported record reve- other nefarious purposes, such as buying support
nues of $8.5 billion. Komatsu and Mitsubishi for its application to join the UN Security Council
Heavy Industries were among the others. permanently, it will be welcomed and appreciated.
With the best potential to lead the globe, Africa
is home to a thriving fintech ecosystem that is Japan intends to spend $4 billion on the advance- Conference for Africa's Development (TICAD)
driving the digital revolution on the continent. ment of green energy, including increasing the use summit and the 2015 UN catastrophe conference
There are 576 fintech start-ups on the continent, of renewable energy. Japan will also enable held in Japan, both of which were attended by
all of which are led by young people. investment aimed at assisting start-ups. Addition- Abe, helped to facilitate the flow of Japanese
The development of lithium batteries, which ally, Japan will make loans of up to $5 billion, investments into Zimbabwe.
power electric vehicles, agribusiness, and renew- including new money set aside for debt restructur- Tokyo may be able to challenge China's hegemo-
able energy are three more crucial investment sec- ing to invest in infrastructure that will enhance ny over the process of reviving Zimbabwe's econ-
tors that have the potential to advance the conti- people's lives. Over the next three years, Japan omy with increased Japanese development aid. To
nent. To deal with the effects of COVID-19, will train 300,000 skilled people in a variety of reduce food shortages, China has made significant
rapid climate change, and the Russia-Ukraine fields, including industry, health, medical care, investments in boosting Zimbabwean agriculture's
crisis, African countries need substantial financial education, and agriculture. Japan will offer 300 productivity. in reaction to China's initiatives.Giv-
resources. million dollars in new loans to boost the food en that Zimbabwe has long been one of North
In response to Russia's invasion of Ukraine, production system, claiming that the disruption of Korea's closest overseas supporters, strengthening
Japan committed $30 billion in aid for develop- grain exports from Ukraine has made the food ties between Japan and Zimbabwe might likewise
ment in Africa and stated its desire to engage shortages in Africa worse. affect the security of the Korean peninsula.
more closely with the continent. Prime Minister What Zimbabwe sees in Japan Mugabe went to North Korea in 1980, soon after
Fumio Kishida declared during a Japan-Africa A significant trade agreement for the automotive becoming prime minister, and he started to love
summit in Tunisia that Tokyo would do its best sector was signed by Zimbabwe and Japan on the cult of personality that surrounded Kim
to secure grain shipments to Africa despite a June 14, 2016, calling for the delivery of 10,000 Il-sung. Mugabe gave Juche: The Speeches and
global scarcity. Japanese tractors to Harare and the training of 40 Writings of Kim Il-Sung to Zimbabwean officials
Kishida promised lower amounts for food security Zimbabweans in Japanese auto manufacturing after his return to Harare and commended the
in collaboration with the African Development methods. This agreement confirms Japan's aim to North Korean government as a role model for
Bank and stated that the $30 billion will be compete with China for economic dominance in Zimbabwe's state-building efforts. After that, from
distributed over three years. For the continent's sub-Saharan Africa and is a replica of contracts 1983 to 1987, Mugabe repressed the Ndebele
development, this should be excellent news. How- comparable to those inked by China, Zimbabwe's people with the help of North Korean military
ever, that is only accurate if it is applied in that main Asian partner. A 600-million-yen ($5.8 mil- instructors, a crackdown that claimed at least
manner. lion) agreement was struck by Japanese Prime 20,000 lives.
However, if Japan politicizes its aid to counterbal- Minister Shinzo Abe and Zimbabwean President Zim and Japan trade
ance China's influence in Africa, its investment Robert Mugabe at the end of March 2016 to fund In 2020, Japan exported $30.7M to Zimbabwe.
will not be as beneficial to Africa as it should road development in Zimbabwe's resource-rich The main products that Japan exported to Zimba-
be. Africa requires assistance from the interna- north-south corridor. In a gesture that represented bwe are Delivery Trucks ($19.2M), Cars
tional community since it bears the burden of all the expansion of Zimbabwe-Japan collaboration, ($3.87M), and Vaccines, blood, antisera, toxins
global challenges, including the COVID-19 pan- Japanese Emperor Akihito also greeted the presi- and cultures ($2.71M). During the last 25 years,
demic, climate change, and the fallout from the dent and first lady of Zimbabwe in Tokyo. the exports of Japan to Zimbabwe have decreased
Ukraine crisis. Japan's leaders are being nar- In the early 2000s, Japanese businesses left in at an annualized rate of 6.82%, from $179M in
row-minded and misinterpreting China's coopera- response to the rapidly deteriorating economic 1995 to $30.7M in 2020. In 2020, Zimbabwe
tion with African nations if they believe that conditions in Zimbabwe, but under Abe, a resur- exported $29.2M to Japan. The main products that
Japan, like some others, intends to compete with gence of Japanese investment has been fuelled by Zimbabwe exported to Japan were Non-Iron and
China in Africa. Since the goal of the Belt and the removal of trade restrictions. Some Japanese Steel Slag, Ash and Residues ($20.2M), Raw
Road Initiative is to foster connection among business leaders believe that circumstances for Tobacco ($3.31M), and Ferroalloys ($2.01M).
developing nations to support their growth for investment in Zimbabwe are gradually improving During the last 25 years, the exports of Zimbabwe
global common prosperity, China has long stated as a result of significant acquisitions like Kan- to Japan have decreased at an annualized rate of
that it is open to all nations. saiPaint's 2013 purchase of Zimbabwe's largest 7.27%, from $193M in 1995 to $29.2M in 2020.
There is no reason for Japan and other developed paint manufacturer. The 2013 Tokyo International
countries to look at China's rise and what it has
done to help developing countries through the
prism of geopolitics, thinking that China is
expanding its sphere of influence to change the
post war order. China has reiterated that its aid
to African countries has no political strings
attached, and it is meant to promote mutually
beneficial cooperation between China and its Afri-
can partners, and the common development of
developing countries.
Regarding the claims that it is creating "debt
traps," the fact that China has frequently waived

& Insights

ZB Financial:
PAT more than doubles in HY’2022
H arare- Financial services group, ZB
Financial Holdings Limited has recorded However, net income from lending activities fell regime and worsening inflation profile with the
a 165% increase in net profit to by 5% from ZW$1.902 billion to ZW$1.817 local currency depreciating by 237.1% against the
billion in June 2022. The Group’s reporting USD from US$1: ZW$108.67 on 1 January 2022
ZW$6.069 billion during the half year ended 30 period coincided with the partial banning of lend- to US$1: ZW$366.27 on 30 June 2022,” the
June 2022 from ZW$2.287 billion attained in ing by banks and hiking of bank policy rates to Group’s chairperson P Chiromo said in a state-
June 2021 during the same half. global record highs. ment accompanying the half year financials.

The bullish profit surge was due to a massive This was bad news for the banking sectors. Ana- On subsidiary performance, ZB Bank Limited’s
growth in total income by 147% from ZW$8.446 lysts estimated that billions of dollars were lost profit after tax improved by 249% from
billion in 2021 to ZW$20.877 billion during the during the lending suspension period while soar- ZW$1.474 billion in 2021 to ZW$5.148 billion
period under review mainly underpinned by a 1 ing interest rates made borrowing expensive while ZB Building Society recorded a profit after
039% rise in operating income which rose from straining productive sectors and curtailing interest tax of ZW$1.037 billion from ZW$191.8 million.
ZW$0.979 billion to ZW$11.1 billion in half year charges for banks. On insurance operations, ZB Reinsurance’s profit
2022. Meanwhile, operating costs rose by 58% to after tax surged to ZW$990.70 million from
The Group’s net interest income accelerated by ZW$9.413 billion in June 2022, largely emanating ZW$277.6 million while ZB Life sector recorded
55% from ZW$2.649 billion to ZW$4.106 billion from upward pressure on cost structures resulting an increase in profit after tax from ZW$599.20
while the net insurance income increased by 45% from the inflationary environment. million in June 2021 to ZW$1.285bn for the
from ZW$0.698 billion during the prior year to During the reporting period, the local currency period ending 30 June 2022.
ZW$1.016 billion. Growth in net insurance recorded one of the worst performance, dropping “The company maintained good relations with its
income was driven by gross premiums which by 33% in a single day. cedants and retrocession partners during the
increased by 43% from ZW$2.044bn in June “For the half year to 30 June 2022, the major period.”
2021 to ZW$2.933bn in June 2022 Net insurance issues in the domestic operating environment con- The Group said the expansion into the Botswana
income increased by 45% to ZW$1.016 billion tinued to be instability in the exchange rate market is at an advanced stage, after commencing
from ZW$0.698 billion in June 2021 on the back operations in June 2022.
of a 43% rise in gross premiums.

11 The AXiS XLIII Friday 02 Sept 2022

Smelter completion progress

hampered by delays to 62%, BNC reveals
Z SE-listed Bindura Nickel Corporation has
revealed that progress on the completion stock of the work
of the smelter project has gone down to that was done con-
cerning the smelter
62% from the initial known 83% due to the and also determine
delays they encountered to date in completing the the outstanding work
project. and the cost.“So we
have enlisted the
The smelter project which was scheduled to be services of a South
completed in 2018 has been at 83% completion African company
and has remained stagnant for years now with the called Hatch to do
company indicating that its completion depended that technical audit,
on increased supportive international nickel prices and that’s going to
of around US$16 500 per tonne. cost us just under
US$20 000 and they
The prices of nickel have been hovering way are a very advanced
above the US$16 500 that the Company had stage of completing
pinned the smelter project completion on, but that assessment and
BNC has for a time now been indicating that they once we pay that
are waiting to see the stabilisation of that price US$20 000, they
above that threshold, meaning they were going to will come in and get
continue holding the project. that done,” he said.

“We are no longer in that situation where we With regards to the stock from our mining operations bearing in mind
were, where we thought we had done 83% of the resuscitation of the that in the past we used to have four producing
work that need to be done to get the smelter back refinery, Masunda mines, Trojan mine, Madziva Mine, Shangani
on track. also highlighted that mine and Epok. Currently, Epok is gone, Shan-
We are now in a situation where because of the there is to get a gani is still there but it will need to be dewatered
delays that have occurred despite the favourable technical audit done by experts and if there is an if we are thinking of bringing it back into pro-
nickel prices now, we have gone down to about indication of other things that need to be done to duction,” he said.
62%,” BNC Chairman Muchadeyi Masunda said get the refinery back, it gets to be taken note of. Masunda added, “Madziva mine is history, so we
in an interview with Equity Axis. “So we are going to do the same sort of exercise have been sorely dependent on Trojan mine, but
Masunda added that the Company now needs and this is getting the side of the experts and if given where the nickel prices are, we are serious-
another US$25 million to get it back to where there is an indication of other things that need to ly looking into getting Hunters road into produc-
the project should be. be done to get the refinery back to where it used tion and that can be done in two years, so once
At the start, the project was estimated to cost to be back in 2008 or pre 2008 where both the we are sure of getting enough feedstock to get
US$30 million and was accorded national project smelter and refinery were placed in the care main- into the smelter and the refinery.
status, giving BNC several incentives including tenance,” Masunda said. That will give us more than enough incentive to
the duty-free importation of capital equipment. Lastly, Masunda pointed out that there is also a spend the kind of money that needs to be spent
With the drop in work done at the smelter proj- need to make sure that the Company has enough to complete the smelter first and we can look at
ect, the company will now require more money feedstock by the time it decides to complete the completing the resuscitation of the refinery.”
than it initially need to finish the project and this smelter and refinery so that they have enough
will further delay its completion. incentive to spend the money that is needed for the
Masunda further noted that BNC has realised that completion of the two.
there is a need to get experts to come in and take “We need to make sure there will be enough feed

Improvement in total income
spurs FBC Holdings’ HY1’2022 profitSE-listed financial services firm, FBC to increase customer acquisition, convenience and

Holdings Limited posted a 440% surge transaction volumes for the Group,” Nkala said.

Z in profit to ZW$8.1 billion for the half
underwriting in foreign currency.
FBC Holdings’ other income for the period under
The Group’s net earned insurance premium of review amounted to ZW$29.3 billion reflecting
year ended 30 June 2022 buoyed by an improve- ZWL1.9 billion increased by a marginal 5% com- an increase of 520% compared to the same
ment in total income from a comparative 2021 pared with the prior year, reflecting subdued con- period last year.
figure of ZW$1.5 billion. sumer capacity in the face of declining disposable

In a statement accompanying the Group’s finan- incomes. The Group’s overall cost-income ratio, excluding
cial results, Chairman Herbert Nkala said total Nkala highlighted that the use of multi-currencies monetary loss, improved to 53% from 61%
income improved by 212% to ZW$43.2 billion, in the economy has provided an opportunity for recorded for the same period last year, benefiting
and 68% of this amount was in favour of the the Group’s insurance subsidiaries to increase from a higher increase in the total income of
Group’s hedging and investment strategies while 212% compared to 172% for expenses.

32% was derived from core business revenue Administration expens-
lines. es increased by 191%

Net interest and related income for the half year to ZW$20.1 billion,
increased by 89% to ZW$7.3 billion, leveraging mainly due to forward
on the Group’s higher foreign currency lending pricing premiums in a
portfolio proportion. hyperinflationary envi-
ronment while impair-
ment allowance
Loans and advances grew by 34% to ZW$68.8 increased by 201% to
billion as compared to the audited position as of ZW$1.5 billion in line
31 December 2021. with the expected

Net fee and commission income registered a difficulties in the oper-
growth of 44% to ZW$4.7 billion, largely ema- ating environment.

nating from the Group’s digital thrust which has The monetary loss
positively impacted payments and processing sys- increased by 311%
tems. mainly due to the

“Plans are underway to deploy a sizeable number growth

of Point Of Sale (POS) machines in the market, *To Page 13

The AXiS XLIII Friday 02 Sept 2022 12

Zimplats Revenue:

plummets 8% at backdrop of a decrease in metal prices

KEY HIGHLIGHTS -ZIMPLATS crucibles. The manufacture of autocatalysts is one to US$386.2 million. A total of US$44.1 was
of the primary uses for platinum. A cylinder with spent on this project during the year bringing the
When compared to the prior year, which ran from a circular or elliptical cross section that is con- project to date expenditure to US$190.7 million.
1 July 2020 to 30 June 2021, Zimplats' financial structed of ceramic or metal that is shaped into a The mine is scheduled to reach production of
performance during the period from 1 July 2021 fine honeycomb and covered with a chemical and 2.2Mtpa in September 2024.
to 30 June 2022 (FY2022) was generally in the platinum group metal solution is known as an The upgrade of Bimha Mine from the current
center of the pack. Revenue dropped by 8% to autocatalyst. A catalytic converter is an autocata- design capacity of 2.0Mtpa to 3.1Mtpa to replace
US$1.2 billion (FY2021: US$1.4 billion), princi- lyst installed inside a stainless steel canister. part of the tonnage from Mupfuti Mine which
pally as a result of the year's decline in the aver- More financials will deplete in FY2027 is progressing well and
age US$ metal price. According to the graph Due to an increase in withholding taxes, the on schedule. A total of US$27.8 million was
above, metal prices have been subject to some income tax expense rose to US$240 million spent during the year bringing the total project to
changes, with the most of 2022 seeing a down- (FY2021: US$237.4 million). The result was a date expenditure to US$34.7 million. The upgrad-
ward price spiral. drop in profit after tax to US$353.6 million (from ed Bimha Mine is expected to achieve full pro-
US$563.1 million in FY2021). In comparison to duction of 3.1Mtpa in FY2023.
The aforementioned graph also demonstrates that FY2021, net cash provided by operating activities A total of US$64.7 million was spent on the
Palladium, Rhodium, and Platinum make up the grew to US$510.1 million (US$452.7 million). Third Concentrator plant project during the year
majority of Zimplats' revenue sources, whereas A final dividend of US$85 million, or 79 cents bringing the total project to date expenditure to
Cobalt makes up the least amount of revenue at per share, for the fiscal year that ended on June US$79.3 million. The new concentrator plant with
0.06% of the total. In addition, the cost of sales 30, 2021, was declared in August 2021 and planned installed capacity of 0.9Mtpa, will mill
went up by 9% to US$594.3 million (from distributed to securityholders with records as at ore generated from the optimisation of the Life
US$546.7 million in FY2021), mainly as a result 20 August 2021 on September 3, 2021. A of Mine through ramping up replacement mines
of the 15% rise in volume sold. US$120 million interim dividend, or 111 US production (Mupani and Bimha mine upgrades)
Uses of Palladium,Rhodium and Platinum(top 3 cents per share, for the half year that concluded ahead of depletion of the mine being replaced
revenue contributors) on December 31, 2021, was declared in February (Mupfuti Mine). The project commenced in
Palladium has many uses in numerous industries 2022 and paid to securityholders on record as of FY2021 and is on track for commissioning in the
because of its outstanding qualities. Palladium is February 21, 2022, on March 8, 2022. first quarter of FY2023.
used in practically every other industry, from jew-
elry and watches to electronics and dental instru- OPERATIONS During the year, the board approved the construc-
ments. The tint of this silvery-white metal is Due to the careful adherence to Covid-19 man- tion of a new 38MW furnace and an acid plant
unaffected by oxygen exposure and it is resistant agement guidelines, there were no operational at a total cost of US$520.6 million. Currently, the
to corrosion and scratches. Due of all of these disruptions throughout the whole fiscal year. The Group is exporting part of its metal production in
outstanding qualities, it is now more expensive vaccination program that was implemented for all concentrate form as the existing smelter cannot
than gold due to rising global demand. The auto- employees (including contractors) and their depen- process all the concentrate generated from the
motive industry uses over 85% of the world's dents and started in FY2021 was successfully concentrators. Commissioning of the Third Con-
palladium in catalytic converters for cars. Vehicles finished in the year, and all employees and con- centrator plant which is currently under construc-
employ catalytic converters, also known as tractors have now received all necessary vaccina- tion will increase the volume of concentrate pro-
exhaust emission control systems, to redox-con- tions. duced from 144 000 tonnes to 163 000 tonnes
vert harmful air contaminants into less harmful 7.1 million tonnes of mined ore (FY2021: 7.2 per annum at 2.1% mass pull. The new furnace
ones. million tonnes) was 1% less than the previous will increase smelting capacity from the current
Platinum and palladium are hardened and have year, mostly due to production disruption at Mup- 135 000 tonnes of concentrate to 380 000 tonnes
improved corrosion resistance when alloyed with futi Mine during the changeover to a new track- of concentrate. A total of US$18.5 million was
rhodium. These alloys are employed in the manu- less mining equipment maintenance service pro- spent in the year on the project. The project is
facture of thermocouple elements, electrodes for vider. Head grade suffered as a result of the on course for commissioning of the smelter in
aircraft spark plugs, bushings for the production lower production at Mupfuti Mine being replaced January 2024 and the acid plant in August 2024.
of glass fiber, furnace windings, and laboratory by lower quality development ore from Mupani Outlook
Mine. The Group acknowledges that climate change is a
On July 9, 2021, production at the Ngwarati Mine global challenge that requires businesses to reduce
restarted after the high wall had been stabilized greenhouse gas emissions across the value chain,
and the mine entrance had been rebuilt. In June in accordance with the Group's energy and decar-
2022, Rukodzi Mine ceased operations, and the bonization policy, Sustainable Development Goals
teams were transferred to the Bimha and Mupani 7 and 13 on affordable and clean energy and
mines. As full production at Ngwarati Mine climate action, and International Council on
resumed and ore contribution from Mupani
increased as the project ramped up pro-
duction near design capacity, Ngwarati
and Mupani mines produced 50%
and 25% better than the prior
year, respectively.

CAPITAL PROJECTS(ac-
cording to Zimplats)

The Group spent
US$270.3 million on cap-
ital projects including
stay-in-business, replace-
ment and expansion
projects (FY2021:
US$159.1 million). The
development of Mupani
Mine, a replacement
mine for depleted Ruko-
dzi Mine and Ngwarati
Mine which depletes in
FY2025, is progressing
well and on schedule. The
upgrade of Mupani Mine
from the current design
capacity of 2.2Mtpa to 3.6Mt-
pa to replace part of the ton-
nage contribution from Mupfuti
Mine on depletion in FY2027 was
approved, increasing the estimated
total project cost from US$264 million
*To Page 13

13 The AXiS XLIII Friday 02 Sept 2022

*From Page 11 Meanwhile, as of 30 June 2022, all of FBC Hold proposed, totalling ZWL1 billion translates to
ings subsidiaries complied with their regulated approximately 21.8 times the cover.
in the net monetary position of the Group. capital thresholds as the Group’s strategy to invest
FBC Holdings’ total assets for the half year were in inflation-hedging assets has contributed Looking forward, Nkala noted that the domestic
at ZW$186.2 billion, representing a 34% increase immensely to sustainable capital growth for the economic situation will continue to be impacted
on the 31 December 2021 inflation-adjusted figure subsidiaries, thereby withstanding the negative by geo-political developments in the global econ-
of ZW$138.6 billion. effects of the deteriorating exchange rate on the omy but positive developments within the domes-
“Balance sheet growth was largely driven by a capital positions of the banking subsidiaries which tic macro-environment however, signal prospects
22% increase in deposits from ZWL81 billion to are pegged in USD equivalents. of sustainable economic growth and stability.
ZW$98.7 billion.
The Group’s statement of financial position During the half year, the Group ‘proposed an “In line with regulatory statutes, FBC Holdings
includes a significant portion of foreign denomi- interim dividend of 148.82 ZW$ cents per share Limited will continue to seek opportunities to pre-
nated assets and liabilities, which is underpinning after taking into account the performance of serve and grow shareholder value as well as
theGroup and the need to continue strengthening enhance customer experience,” Nkala said.
the Group’s capital position. The interim dividend

*From Page 12 platinum will increase to 95-105 tonnes (3.1-3.4 greater PGM content that helps boost demand, the
million ounces). switch to EVs may cause a long-term drop in
Mining and Metals ('ICMM') Mining Principles. According to producer Heraeus Precious Metals, palladium demand.
Two Independent Power Producer licenses were China's automotive demand for palladium is Equity Axis is bearish on the outlook for 2022,
granted by the regulator for the 185MW solar anticipated to reach a record high of more than predicting that palladium will trade at over $1,900
facilities in keeping with this agreement. 2.5 million ounces in 2022. The World Platinum per t oz in 12 months’ time.“We think there is a
Investment Council anticipates that some auto- good chance that the demand for new vehicles
Mineral Prices outlook makers may switch out palladium for platinum in from consumers and businesses will quickly
select automobiles due to palladium's compara- revive once the Covid storm eventually passes.
In 2022, Nornickel projects that worldwide palla- tively high pricing compared to platinum. Addi- An industry that is operating with low finished
dium production will rise by 5% to 7.1 million tionally, since electric cars (EVs) do not require goods inventories will be able to meet that
ounces, thanks to a rise in African production, the catalysts, even though hybrid vehicles have a demand.”
ongoing release of stockpiled material, and a
recovery in Russian output. In 2022, it is antici-
pated that Nornickel's output of palladium and

Term of The Week

' Advantages:

Command economy • Less inequality: Because the government controls the means of
production in a command economy, it determines who works where and
Definition: A command economy is a key aspect of a political system in for how much pay.
• Low unemployment levels: Unlike the invisible hand of the free market,
which a central governmental authority dictates the levels of production which cannot be manipulated by a single company or individual, a com-
that are permissible and the prices that may be charged for goods and mand economy government can set wages and job openings to create the
services. Most industries are publicly owned. unemployment rate and wage distribution that it sees fit.

Understanding command economy: The command economy, also Disadvantages:

known as a planned economy, requires that a nation's central government • Lack of competition inhibits innovation: Critics argue that the inherent
own and control the means of production. lack of competition in command economies hinders innovation and keeps
Private ownership of land and capital is non-existent or severely limited. prices from resting at an optimal level for consumers.
Central planners set prices, control production levels, and limit or prohibit
competition within the private sector. In a pure command economy, there Inefficiency:
is no private sector, as the central government owns or controls all
business. Efficiency is also compromised when the government acts as a monolith,
In a command economy, government officials set national economic controlling every aspect of a country's economy. The nature of competi-
priorities, including how and when to generate economic growth, how to tion forces private companies in a free market economy to minimize red
allocate resources, and how to distribute the output. This often takes the tape and keep operating and administrative costs to a minimum. If they
form of a multi-year plan. get too bogged down with these expenses, they earn lower profits or
need to raise prices to meet expenses. Ultimately, they are driven out of
the market by competitors capable of operating more efficiently.

14 The AXiS XLIII Friday 02 Sept 2022

Fidelity Life emerges

from a loss position to post ZWL 274.9 million profit

Z imbabwe Stock Exchange (ZSE)- listed diversified The reporting period also marked the worst ever and all stakeholders and to that end, investment portfo-
services group, Fidelity Life Assurance of Zimba- witch hunt on individuals and companies which the lio diversification is a priority in the current financial
bwe has posted a massive profit rebound to ZWL government thought were responsible for putting the year.”
rebound to ZWL 274.9 million during the full year economy in the chamber. Inflation affects the cost for insurance companies to
ended 31 December 2021 from a loss of ZWL 65 pay off a claim, where both materials and labour
million recorded during the prior year which was heavi- It saw more than 28 companies and individuals become more expensive.
ly affected by COVID-19 disruptions. sued and fined for undermining the Statutory Instru- The government on the 25th of July 2022 introduced
ment 127 of 2021 which commanded companies to gold coins as a hedge against the depreciating Zimba-
The growth from a loss position to a profit was necessi- price goods using the overvalued RBZ-governed bwe dollar. These are expected to stabilise exchange
tated by the Group's total income which almost dou- auction market rate. The problem was that raw rates, manage inflation and restore currency stability.
bled after soaring by 90% to ZWL 3.3 billion from materials tracked the parallel market rate causing Business operations review
ZWL 1.7 billion recorded during the prior year. companies to lose millions of dollars. During the period under review, the Group launched a
fully-fledged contact centre. On the other hand, Gwata
Revenue was driven by investment income and net According to the Group, the currency crisis in the said the year witnessed the creation and launch of an
premium written which increased by 99% and 75% country remains the biggest challenge the Group online Micro lending on-boarding platform with Life
from ZWL 866 million to ZWL 1 722.3 billion and net will face in the 2022 new fiscal year as it will con- and Pensions business launching new products such as
premium written increased from ZWL 611.8 million to tinue to drive up inflationary pressures. Vaka Yako and Covid-19 cover under the Employee
ZWL 1 070.1 billion respectively. “The resurgence of high inflation is, in our view, Benefits business.
the biggest threat to the economy in 2022 and the On the customer service front, the Group opened a
“The growth in net premium written was driven by challenge on management is to ensure that revenue new service centre in Beitbridge for the Funeral
aggressive premium reviews and strong organic growth grows faster than costs,” Gwata added. Services business.
of the life book as well as significant inflows from new In 2022 alone, the under-fired Zimbabwe dollar “We have seen enhanced customer communications
products launched which were supported by market depreciated by a milestone 80% on the RBZ-gov- through online and social media platforms for the Life
diversification and enhancement of the distribution chan- erned auction market rate, which is however over- and Pensions and Medical Health businesses, while the
nels,” the Group’s chairperson Livingstone Gwata said valued while on the parallel market, deficits have Bureaux De Change started disbursing the USD50
in a statement accompanying the full year financials. widened to over 200%. Although month-on-month allowances to members of the public,” Gwata said.
“Investment income was mainly driven by fair value inflation decelerated for the second consecutive “We made significant progress in achieving our objec-
gains on investment properties and equities while the month in August 2022, there is no clear picture as tives anchored on the 3 pillars of Growth (Cash), Posi-
subsidiary in Malawi continued to provide a good hedge far as the resuscitation of local currency is con- tioning (Customer) and Transformation (Change). The
to the Group against the unstable currency movements cerned. The takeover of behavioural economics and year also saw the Group reaching yet another major
and the adverse impact of the rate of inflation in Zim- confidence crisis in monetary gaffers is even super- milestone as we saw the completion of the Southview
babwe.” seding the gold coins’ capacity to quickly restore offsite works.”
During the reporting period, the Group said its subsid- the Zimbabwe dollar. As the Group continues with the desire to preserve
iaries in Malawi continued to hedge overall performance Last week saw the local currency shedding 5% internal resources to strengthen the capital position of
against the currency crisis in Zimbabwe which is loom- against the US$ which was a record loss in August the Group through the deployment of earnings to
ing up incessant inflationary pressures. 2022. Because of currency weakness, operating and increase business underwriting capacity, a dividend was
From January 18 2021 to 31 December 2021, the local administrative expenses soared by 75% to ZWL 726 not declared.
currency plummeted by % as the battle for the Zimba- million from ZWL 414 million in 2020.
bwe dollar continued heading southwards. During the Inflation affects the cost for insurance companies to
period, the Treasury and the Reserve Bank of Zimba- pay off a claim, where both materials and labour
bwe (RBZ) continued with their hide-and-seek games, become more expensive “High inflation places on
blaming individuals and companies for poisoning the us the responsibility to ensure that we preserve
nation’s economy which is governed by its policies. value for our policyholders

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Politics Around The World The AXiS XLIII Friday 02 Sept 2022 15

TPLF says Ethiopian, Eritrean forces attack in Thursday that he would continue to dialogue with Russia on Thursday launched weeklong war
northwest Tigray Russia to help prevent the Ukraine conflict esca- games involving forces from China and other
Ethiopian and Eritrean government forces launched lating, but pledged France's unwavering support nations in a show of growing defence coopera-
an attack in Ethiopia's northern region of Tigray for Kyiv in what he said would be a long war. tion between Moscow and Beijing, as they both
on Thursday targeting Tigrayan forces, a spokes- Macron has in the past been criticised by Ukraine face tensions with the United States.
person for the Tigrayan forces said, although Reu- and eastern European allies for what they per- The manoeuvres are also intended to demon-
ters was not able to independently verify the ceived as his ambiguous backing for Kyiv since strate that Moscow has sufficient military might
report. Russia's invasion of its neighbour, and his repeat- for massive drills even as its troops are
Getachew Reda, the Tigrayan forces spokesperson, ed dialogue with Russian President Vladimir engaged in military action in Ukraine.
said on Twitter that the two "forces have launched Putin. The Russian Defense Ministry said that the
massive four-pronged offensive early this morning "We must prepare for a long war," Emmanuel Vostok 2022 (East 2022) exercise will be held
in the #Adyabo area of Northwestern Tigray!" Macron told his diplomatic corps setting out his until Sept. 7 at seven firing ranges in Russia’s
Ethiopian government spokesperson Legesse Tulu, foreign policy goals. Far East and the Sea of Japan and involve
military spokesperson Colonel Getnet Adane and He said France would continue long-term backing more than 50,000 troops and over 5,000 weap-
the prime minister's spokesperson Billene Seyoum for Kyiv economically, militarily and with human- ons units, including 140 aircraft and 60 war-
did not immediately respond to requests for com- itarian aid, but warned that one of the key chal- ships.
ment. Eritrean Information Minister Yemane Geb- lenges would be ensuring European unity in the Russian General Staff chief, Gen. Valery Gera-
remeskel also did not immediately respond to face of Russia. – Reuters simov, will personally oversee the drills involv-
requests for comment. – Reuters Taliban mark first anniversary of U.S. troop ing troops from several ex-Soviet nations,
Taiwan shoots down drone for first time off Chi- withdrawal from Afghanistan China, India, Laos, Mongolia, Nicaragua and
nese coast The Taliban celebrated Wednesday, declared a Syria. – Associated Press
Taiwan's military for the first time shot down an public holiday in Afghanistan, the first anniversa- Iran says it wants stronger guarantees for
unidentified civilian drone that entered its airspace ry of the withdrawal of U.S. troops from the nuclear deal
near an islet off the Chinese coast on Thursday, country, which ended 20 years of foreign military Iran wants stronger guarantees included in a
after the government vowed to take tough mea- presence after the insurgents seized power. text put forward by the EU aiming to salvage
sures to deal with an increase in such intrusions. On the morning of August 31, 2021, Taliban sup- Tehran's landmark 2015 nuclear deal with
Beijing, which claims Taiwan as its own against porters flocked to the airfield of the Afghan capi- world powers, Foreign Minister Hossein
the strong objections of the Taipei government, tal to celebrate the take-off of the last US military Amir-Abdollahian said Wednesday.
has held military exercises around the island since plane, ending the withdrawal of troops announced "We are thinking about how to reach a strong
early last month in reaction to a visit to Taipei by Washington, which had set a deadline of Sep- text on the issue of the guarantee, and to
by U.S. House of Representatives Speaker Nancy tember 11, a particularly symbolic date because of obtain stronger guarantees," he told a joint
Pelosi. the 2001 attacks that triggered the US invasion of news conference in Moscow with his Russian
Taiwan's government has said it will not provoke Afghanistan. counterpart Sergei Lavrov.
or escalate tensions but has been particularly On that Tuesday in August, the Taliban took to "My colleagues are carefully examining the text
angered recently by repeated cases of Chinese the streets of the Afghan capital, Kabul, firing of the American side," Amir-Abdollahian said
drones buzzing islands controlled by Taiwan close into the air to show their "joy" at the withdrawal, of Washington's response to Tehran's sugges-
to China's coast. – Reuters which meant, according to the group's spokesman tions on the EU text that was submitted on
Kenya's Supreme court starts hearing challenges for international affairs, Suhail Shahin, the "full August 8.
to presidential vote independence" of Afghanistan. – News 360 "We want to reinforce in the text the idea that
Kenya's Supreme Court began hearing arguments Angola's main opposition party challenges elec- the International Atomic Energy Agency con-
Wednesday in challenges to the presidential elec- tion results – letter centrates on its technical task and moves away
tion. from its political role," he said. – AFP
The court on Tuesday had a pre-trial where all
parties confirmed their affidavits submissions. Angola's main opposition party has submitted a Biden admin hit for calling MAGA Republi-
Earlier on, the court had ordered a vote recount legal complaint challenging the electoral commis- cans ‘extremist threat’ to democracy: ‘Dehu-
in 15 polling stations which are ongoing.The court sion's finding that the governing party won last manizing rhetoric’
had also thrown out two other petitions on basis week's election, a letter seen by Reuters shows. White House press secretary Karine Jean-Pierre
of lacking a mandate. In a separate statement on Tuesday, the opposition was slammed Wednesday by many Twitter
On Wednesday, lawyers representing the 1st peti- party, the National Union for the Total Indepen- users for damning a major part of the Ameri-
tion, Raila Odinga took the floor to dislodge the dence of Angola (UNITA), said it would file a can electorate on behalf of President Biden.
election of William Ruto and the 5th President. complaint that would have the effect of suspend- "The president thinks that there is an extremist
Odinga is among those challenging the results and ing the declaration of results of the vote. threat to our democracy," Jean-Pierre said in a
alleging a range of problems with the election It was not immediately clear whether UNITA's preview of Biden's planned speech for Thurs-
process. letter to the commission, sent on Monday, was the day. "The MAGA Republicans are the most
Deputy President William Ruto was declared the same complaint. energized part of the Republican Party. That is
winner earlier this month with just over 50% of After the most closely fought election since inde- an extreme threat to our democracy, to our
the votes. – Africanews pendence from Portugal in 1975, the commission freedom, to our rights."
South Sudan's former rebels join unified army reported on Monday that 51.17% of voters had She added further that "they just don't respect
Thousands of former rebels swore an oath of loy- supported the ex-Marxist People's Movement for the rule of law" and are "pursuing an agenda
alty in a ceremony held under tight security in the Liberation of Angola (MPLA), prolonging its that takes away people's rights."
South Sudan. nearly five decades of uninterrupted rule. – Reu- Many Twitter users condemned the White
Nearly 22,000 men and women -- drawn from the ters House press secretary’s statements, suggesting
main parties as well as the South Sudan Opposi- Russia now so short of soldiers it may start using such rhetoric from people like her and Biden
tion Alliance -- participated in Tuesday's proceed- convicted criminals, US official says is what's actually dividing the country. – Fox
ings, which were originally scheduled to take News
place in 2019 according to the peace deal.
South Sudan's President Salva Kiir Mayardit Russia could begin to deploy convicted criminals At least 50 killed in April by Malian army, 'for-
praised the progress made. in its war against Ukraine as it looks to fill a eign troops' -U.N. report
"Out of all the chapters of the agreement, the shortage of manpower in its armed forces, an
graduation of the unified forces under chapter two official in Washington said, citing US intelligence.
has been the most challenging and yet the most The unnamed US official on Wednesday said the At least 50 civilians were killed during a mili-
important", said President of South Sudan, Salva Kremlin is suffering from a “severe” manpower tary operation conducted by Mali's army and
Kiir Mayardit. shortage as the Ukraine invasion bleeds into its "foreign troops" on April 19, the United
"Over two hundred of your comrades have died seventh month. Nations said in a report on Wednesday.
in the eighteen training centres, some died because
of disease and no medication, some died because It is believed that the Russian defence ministry is The U.N. has repeatedly accused Malian
of hunger as food was not available", added Riek looking to deploy short-term contract service soldiers of summarily executing civilians and
Machar, Vice President and opposition leader. – members to the front line to make up for these suspected militants over the course of their
Africanews personnel shortages on the battlefield, the official decade-long fight against groups linked to al
Macron vows long-term support for Ukraine, said, requesting anonymity. Qaeda and Islamic State.
cites need to keep Russia contact
French President Emmanuel Macron said on Russia’s move to bolster its depleted forces could Mali's military government, which took power
include “compelling wounded soldiers to re-enter in a 2020 coup, has been battling Islamist
combat, acquiring personnel from private security insurgents with the help of private military
companies, and paying bonuses to conscripts,” the contractors belonging to Russia's Wagner
official said. – The Independent group.
Russia launches war games with China amid The alleged April massacre took place on
tensions with US market day in Hombori municipality, in the
Russia on Thursday launched weeklong war central region of Douentza, after a Mali mili-
tary convoy hit an improvised explosive device.
– Reuters



17 The AXiS XLIII Friday 02 Sept 2022 Business Around The World

QUguaanlidfiacatAioinrslines' CEO Questioned Over In Maiduguri, the regional capital of northeast plan to support the households by some
TtuhraekCi EhOas obfeeUngaqnudeastiAonireldineosv,erJehnenrifeqruaBliafmicua-- Borno State, the epicentre of the country's 15,000 Czech crowns ($611) on average in the
tions, with a parliamentary committee claiming more than decade-long jihadist insurgency, coming winter and was working on further
she does not have the requisite level of educa- people displaced by the conflict have seen steps to ease the financial pressure.
tion to be appointed CEO of the airline. t–heAirfrifcaarmneswasnd homes destroyed by flooding. The government was also planning to call an
teBonacmperduotdutuorackeriuansaCtyhVse stahoierlcinhisee.cqkSuhatheliafitheadssheabnemdeneeextaspsketerhide- Africa urged to propose action on climate at emergency meeting of other European Union
standards required. conference countries next week to seek a united approach
According to the job requirements, the tAaednfdrtiricaeals'ssthcrleniaamttiaottonestchhemacnuogsntetindweehnvitec’lhsopmpoessgtearsactietaigneise,sexGitaso-- to the issue. The Czech Republic currently
aiinnirlaianndeym'sfiniCeilsEdtOraatsisohnwouellodlr ahsboulpdsoinsatesbgsa.rcahdTeulhaoetrey’strsdaheionguirneldge bon's President Ali Bongo Adimba said at the holds the bloc's rotating presidency. – Associ-
also have at least a decade of experience in third Africa Climate Week conference. ated Press
aviation at a senior level. Members of Parlia- batAhnefenriuhcpaeallondsUitioinnofifntiEecsdgiaytlhpsNetayatiinnodwnNsileolxvcpelpiemmrretbasseteern,sthcsoaoauintdlfdetBrhesoenhncage2rop7.ettonh A promising start: Kosovo's first biomass
ment claim that she only holds a BA in Social The third African climate meeting is bringing heat-and-power station runs on wood scraps
haeWnxaoypvreekrpsi1oe2snatcnyegderaianrdSsuoaaocvtfiieaalettixroApaniednrmiiisneingnlc.aiescAtkrilaintnthigooh.unog,sphaitnsahdlietyl,daochkeessr together more than 1,000 government officials and vine prunings
Along with other senior officials from the aTrenhgdeioysntaaalkreechloimwldaoetrreksirniengspGotaonbsoefsno.'rsmcapstirtaolngLibArefvriicllaen. In the Kosovar city of Gjakova, a co-funded
airline, Bamuturaki appeared before the "Climate change is a profound challenge in biomass heating plant has replaced a
U(sCigoOannsS,dAaSStEPat)aerlciAhamauitrehenodtr’istbiyeCs,oNmaankmdaiwttSaeteaWteoensEtnCMteormepmrmibsieessr- Africa and a great challenge of our time, am- 40-year-old oil-based heating system and is
of Parliament, Hon. – SimpleFlying peinrlaeiflqyuionafglitietehxsei,”stiCPnogamtrsimocicoainawlS, cepoaolttllhaitnicdga,rloSuaepncdreoetfacroyfno-oGrmmeneicr- now generating clean, green energy 24/7.On
Sri Lanka gains IMF's provisional agreement aBtreidtisPhrceosslonies, said to the meeting. – Associ- the outskirts of Gjakova, a city with 40,000
for $2.9 billion loan WHO says traditional medicine key to easing inhabitants in southwestern Kosovo, the first
S(mIrMeinFtL)awnfkoitarh ahtahsleoarnIenatcoehrfneadatbiooanuatplr$eM2li.m9oninebatiarlylriyona,Fgrutenhede- Africa's disease burden biomass heating plant in the Balkans recently
global lender said on Thursday, as the country mAagfeerdmicicaeinnnte catohnuadtnthrciauesrseprsoohvfoeudaldilemffheeancrttnsiveesasfifnlitcrtathidenigtmioatnhnae-l began generating heat and a limited supply of
seeks a way out its worst economic crisis in continent's population, a World Health Organi- power for 2,000 private households, public
decades. zation (WHO) official said on Wednesday. institutions and businesses.
TonheWaegdrneeesmdaeyn,t,iswshuibcjhectRetoutearpsprfoivrsatl rbeypoIrMteFd WMmaneoHddeOitcni ionRuneen-cgdionieomrnslmceaoslusrneDendiiciranetbgchlteeothr cedfrioisbtreiucarAasdlefesrnricoialnoefMtiohnafeftsehhcceitodironbisutaios-l Hidden behind the ordinary façade of four
management and its executive board, and is nent. inconspicuous, gray-tone buildings is a
contingent on Sri Lankan authorities following "Traditional medicine has been the trusted, state-of-the-art heat-and-power plant. The unit,
through with previously agreed measures. rhaiceecasel,t"phtaMcbaoleree,tiaffsofaroidrAdaifnbrilceaanasntapdtoeapmcueclnaettsisoiisnbsslueefdsooruinrcceNentaouif-- which began operating this year, runs entirely
"neTminhegirsgoesftafafrfo-mlloevnegthl eraogacrdreiesimash,e"enatdseinsfiooorrnSlyIrMi tFhLeaonbfkefaigciintao-l robi, the Kenyan capital, marking the 2022 on one of the region's most plentiful energy
Peter Breuer told reporters in Colombo. African Traditional Medicine Day. sources: residual biomass in the form of bio-
"The authorities have already begun the ntEreaigeddhitstiy,onspahelercesmaniteddo,ifcaidnAdefirnicgfao'rtshaptthoepthiurelatcbiooannstiicrneelnihetesahloathns degradable waste such as vine prunings and
reform process and it will be important to prioritized its development through enactment wood scraps.
continue on this path with determination." – of policies, research and training. – XINHUA The EU and the municipality of Gjakova
Reuters Uganda’s debt distress worries MPs funded the plant to the tune of E15 million
UK NGOs want Johnson to condemn moves to roPepatrulrimnamsecethnoatnahisamlsoswastkrhieasdtk twhoefilldgeoebvntesrudnrimesteretnhstes.tocoduenvterly- (just under $15 million). This money bought
overturn ivory trade ban This was after the house, chaired by Deputy two heat boilers, which are basically furnaces,
British Prime Minister Boris Johnson should Speaker of Parliament Thomas Tayebwa, and a combined-heat-and-power steam turbine.
act to thwart Botswana and other southern Gtathiporepnarnapoltesvr,eEfdocarontmnwdoaomnGcryeeupaooornafrtnsttthehoeeefs eSthcatoeantndeComooamnfy.omItnhitdeteerebtoeondneneNsoasn-, The latter converts steam into electricity.
clAeogfnraislcearnivvaotcirooyunnstgarrlieoesu’plisfdteehdsai,rseasatocido.ahlaivtieonthoef bBanritioshn According to Robert Migadde, the vice chair- Meanwhile, the Swiss Economic Cooperation
The statement by Action for Elephants UK, person of the committee, the total public debt is contributing E5 million for the replacement
David Shepherd Wildlife Foundation, Environ- himmaespnlteimnacgerenentaadstaeiodannodvoeftrhetrheeecffeengctotsvyeoerfnarmtsheendtuC'seOVitnoIvDet-shlt9e- awnodrkr.ef–urDbiesuhmtscehnte oWf etlhlee district's heating net-
mental Investigation Agency, Tusk, and Ele- pandemic that caused revenue shortfalls. US chip makers hit by new China export rule
pMothheaemnrtsb,ePr rcoSatltelasctetisoonnof ItnthhieteiatgiUvloKebalOgrbogovadenryinzmarteeigonuntlataainnndgd According to the report, Uganda's public debt Shares of major chipmakers Nvidia and AMD
endangered species trade, CITES, to ensure Stsrthiolslci6ko9n.i5n1ci3rneatrsitelhldeiobnyFbi2ny2anthcpeiearlceenndYteoafrfromth2e0S1Fh9is/n52a60n.9ci3ta8ol have fallen amid concerns of new US restric-
that the global ivory trade, and national mar- Year 2020/21. – New Vision tions on the sale of artificial intelligence chips
kets, do not reopen. Czech government faces no-confidence vote over to China.
tTohetheconimseprlveamtieonntaotirognanoisfattihoens UwKereIvorreyactAincgt energy prices Nvidia says the US government requires a
whichcame into effect on June 6, 2022 under TTvohhtueersCodzvaeeycrhfiatRsceehdpaunabdllipicna’grslicaoomfaetlhintetiaorenyngenrogovyecrconrnmifseiidsnetanoncnde new license, effective immediately, to address
Prime Minister Boris Johnson’s watch. – The a scandal involving the head of one of the the risk of chips being "used in, or diverted
Independent country’s spy agencies. to a 'military end use'... in China and Russia."
mNiagneyriain: nFolorothdesaismteprancrtehgaiolfn ahamrdil-lihoint people, Tdcoohpienegowpeipntohosuitgthihoenthoaigchhceulspperdicpeetsohpefloercoaeanlldeitciotbrniucsiitonyfesansneodst There are fears the rule could lead to millions
Hbyalffloaodms illciaounseNd igbeyrianhseavhyaveraibnesensinacffeecttehde natural gas. of dollars in lost revenue.
start of the year, President Muhammadu The government argues it has introduced a Shares of both chip makers slipped in
Buhari said on Tuesday. after-hours trading in New York.
tiThrnaywgr'd,es-nht3yiw6t-tihttshhrtieaseteysnoeofaarrtrAh.eefraaisfcftaee'rcsntemd osbtsayttepssoeapsuoplnoarautlsicfucloolauorndly-- Nvidia's shares were down by 6.6% while that
Buhari's office said emergency services were of AMD slipped by 3.7%.
providing aid and he was receiving regular The new restrictions are a "gut punch for
muthpiodsraeyteestahra.onn 5th0e0,0f0lo0odNs,igewrhiainchs shianvcee aJfafneucateryd Nvidia," Dan Ives of Wedbush Securities told
"The destructive floods have displaced 73,379 the BBC.
people," caused more than 100 casualties, and The US Commerce Department told the BBC
iinnjuaresdtaatebmouetnta. nother 270 people, Buhari said it was "not in a position to outline specific
policy changes at this time". – BBC News
Visa rules in Mexico don't stop Venezuelans
headed to US
When Mexico imposed a visa requirement on
Venezuelans in January, it briefly had the
desired effect: The number of Venezuelans
detained at the U.S.-Mexico border plunged.
But it’s now clear that it only pushed the
migrants onto more dangerous clandestine
routes.
Suddenly unable to simply fly to Mexico as
tourists, but still desperate to leave their coun-
try, Venezuelan migrants joined others travel-
ing over land through the dense, lawless
jungle on the Colombia-Panama border.
In 2021, when Venezuelans could still fly to
Cancun or Mexico City as tourists, only 3,000
of them crossed the Darien Gap — a literal
gap in the Pan-American Highway that
stretches along 60 miles (97 kilometers) of
mountains, rainforest and rivers. So far this
year, there have been 45,000, according to
Panama’s National Immigration Service. –
Associated Press

Interactive Tincture

Moderating parallel market exchange rates

A beacon of hope for economic agents?

By Zvikomborero Sibanda Hon. Wadyajena and the management of the Cotton gold coins like one-tenth and half ounce gold
Company of Zimbabwe (COTTCO) formed a shelf coins. These gold coins will suffocate the demand
Z imbabwe officially attained independence company and raised an internal store voucher for for the US dollar as a store of value at least in the
from colonial rule in April 1980. At the the supply of special high-carbon bale ties. Never- short run (6-months before the coins become trad-
time, the local currency was valued above theless, to this day COTTCO has not received the able).
the US dollar, a value that quickly fell due to a purported imported bales as the money was report- Consequent to some of the foregoing policy actions,
range of issues particularly, economic mismanage- edly used to buy about 25 Freightliner trucks from parallel market exchange premia are facing down-
ment and ill-advised structural adjustment the USA for the formed shelf company. ward pressures. The average exchange rate that
programs of the 1990s. Over the years, various • Pomona Deal: The Harare City Council ranged between ZWL850-900 to the US dollar in
economic blueprints from ESAP to ZIMPREST to (HCC) entered into a US$400 million waste-to-ener- alternative markets has plunged significantly and is
ZIMASSET to TSP and now to NDS1 have been gy deal with Geogenix BV, a Netherlands-based now quoted at between ZWL650-700 to the green-
introduced to put Zimbabwe on a sure economic company. According to the signed agreement, HCC back. In what has become to be the first since
footing but registered limited success. must pay US$40 per tonne of waste it delivers, April 2021, Zimbabwe is experiencing a disinflation
Changes in economic frameworks have gone with an estimated daily delivery of 550 tonnes. trend as monthly prices have deteriorated for two
alongside, equally failing currency reform mea- However, the deal was reached without public con- (2) consecutive months. In July 2022, prices mount-
sures. The local currency which was disbanded in sultation and without going through the correct ed by 25.6% from 30.7% recorded in June, and in
early 2009 in favour of the US dollar due to public procurement processes. It has not been sub- August, prices mounted by 12.4%. If the ZWL gain
record hyperinflation for a country in peacetime jected to any oversight by Parliament and the that was witnessed in the parallel market in recent
was re-introduced in February 2019 despite a lack processes to solidify the deal were expedited with weeks is sustained, declining parallel market
of macroeconomic fundamentals to support it. undue and unaccountable pressure on Council offi- exchange premia will accelerate disinflation. This is
Generally, a stable currency is a function of strong cials by the Executive. key in reducing rising income inequalities between
animal spirits, that is, the emotions of confidence, • Fire tender Scandal: It is reported in the the haves (those with US dollars) and the have-nots
hope, fear, and pessimism that can affect financial media that the Ministry of Local Government and (those with ZWLs) thus increasing aggregate con-
decision-making, which in turn can fuel or hamper Public Works gave a directive to all Town Clerks, sumer demand, an engine of economic growth.
economic growth. As a result of weak animal spir- Town Secretaries, and Chief Executive Officers to Also, extreme poverty levels currently estimated at
its coupled with fiscal indiscipline and excessive acquire two (2) fire tenders from Belarus using 60% of the total population will decline significant-
money printing, the rebranded Zimbabwe dollar their allocated devolution funds. The price of each ly as consumers will be able to afford basics.
failed to withstand depreciation pressures against fire tender is set at more than US$400,000 despite However, for sustained macroeconomic stability to
other hard currencies. the market price being US$60,000. be a reality, the Executive needs increased political
For instance, in February 2019, the broad money The foregoing cases vividly show that corruption is will to curb massive leakages caused by rampant
supply which stood at ZWL10.4 billion mounted the elephant in the room. The latest revelations white-collar corruption in public procurement and
to ZWL506.13 billion by February 2022, a stag- show that because of poor contract due diligence by illicit financial flows such as transfer pricing and
gering 4 767% growth in just three (3) years. line Ministries, the Treasury has been paying public smuggling of precious minerals. It is reported that
Again, the latest statistics show that during the sector contractors for goods and services supplied Zimbabwe is losing at least US$1.2 billion annually
2019-2020 period, the Treasury overspent its at or above exorbitant parallel rates despite the through the smuggling of gold alone. If directed
approved budgets by a whopping ZWL107 billion existing government regulations which ban the into Treasury coffers, these funds can be used to
after another US$10 billion cumulative budget charging of goods and services at local prices above provide quality & affordable public services, resus-
overrun incurred between 2015 and 2018. official rate plus a 5% margin. This explains the citate dilapidating infrastructure, and help industries
As I highlighted in last week's publication of this exchange rate volatility that was experienced to retool, ceteris paribus. There is also a dire need
column, official statistics are clearly showing that between Jan-July 2022 period. These contractors to strengthen institutions (rules of the game) to
the government has contributed a large part to the have been offloading tons of ZWL balances from ensure the implementation of inclusive and prudent
current currency and price conundrum. From the the government into the alternative markets in market-driven policies. More so, it is high time now
beginning of 2022 to date, this excessive ZWL search of a stable US dollar. Consequently, these for Zimbabwe to undertake deep structural adjust-
liquidity emanating from fiscal indiscipline has actions left households biting the dust as prices of ments to subdue existing pricing distortions. This is
caused the local currency to lose about 78% of its many basic goods skyrocketed beyond the reach of key as it reduces the cost of doing business, culti-
value in the official Willing-Buyer Willing-Seller many. In the worst case, some specific goods and vates business predictability to boost private invest-
(WBWS) interbank market. services are now being sold exclusively in forex as ment, create youth employment, and power aggre-
Endemic corruption and mismanagement of public markets began rejecting the fragile ZWL, a currency gate consumer demand.
procurement processes have played a starring role being earned by the majority of Zimbabweans, All of that being said, it is likely that the modera-
in exacerbating Zimbabwe’s currency and inflation particularly public servants. tion of parallel market rates will be short-lived.
woes. This is greatly stifling public service deliv- With politicians now facing mounting pressure to Generally, government spending pressure is elevated
ery and subduing economic growth and develop- stabilize the economy especially given general elec- and is unsustainable in the second half of the year
ment as public funds are being abused, misused, tions expected next year, the President announced which coincides with the agriculture season and the
embezzled, and diverted for private gain through that he has directed the public sector to suspend all payment of annual bonuses. There is also pressure
economies of affection, nepotism, and tender-pre- payments to government contractors pending due for policymakers to pursue populist policies to
neurship deals. In 2021, Zimbabwe’s corruption diligence reports on pricing. This display of some appease the ruling party’s traditional rural electorate
rank by Transparency International (TI) was political will to clamp currency and price madness ahead of the 2023 general elections. There are
recorded at 157/180 countries meaning that it is is highly commendable as it will buttress the uncertainties around the future path of COVID-19
one of the most corrupt nations globally. The actions being taken by the monetary authority. In and the Russia-Ukraine war. The longer the war,
following are some notable highlights of high-pro- addition to the ongoing open market operations the greater the suffering of net importing countries
file corruption cases: (OMO), setting a high benchmark policy rate and like Zimbabwe as global supply chains are disrupt-
• Honorable Justice Mayor Wadyajena Saga: relatively lower quarterly reserve money growth ed exerting pressure on global energy and food
The Member of Parliament was arrested by the targets, the RBZ has since introduced gold coins in prices.
Zimbabwe Anti-Corruption Commission (ZACC) July 2022 to help mop excess ZWL in circulation Zvikomborero Sibanda is an Economic Analyst for
this month (August 2022) on allegations of fraud by providing an alternative store of value for inves- Zimbabwe Coalition on Debt and Development
and money laundering amounting to US$5.8 tors. To ensure that even low-income individuals (ZIM- CODD). He writes in his capacity, his views
million. It was alleged that, in 2019, equally benefitfrom the gold scheme barring corrup- do not represent those of the organization he works
tion, theBank is set to introduce low denominations for. Email: bravosibanda@g- mail.com.
of Twitter handle @bravon96

The AXiS XLIII Friday 02 Sept 2022 20

Markets
watch

Zimbabwe dollar stumbles by 5%

T he Zimbabwe dollar shed by 5% Sibanye Stillwater reported a 50% slump in Yemi Osinbajo said during a virtual launch
against the United States dollar on the its half-year profit but raised its outlook for of the country’s energy transition road map.
latest RBZ-governed auction market the rest of 2022 after operations at its gold The West African country has already
held on Tuesday according to the data mines in the country resumed. secured a US$1.5 billion pledge from the
released by the Reserve Bank of Zimbabwe World Bank. It is in talks with the US Ex-
(RBZ). The under-fired currency traded Kenyan Shilling steadies at 119 port-Import Bank for an additional $1.5
ZW$521.3451 from 494.9883 registered last billion, according to a government statement.
week. The shilling traded at 119 against the single Nigeria’s energy transition plan is designed
The crush of the Zimbabwe dollar (ZW$) on US$ on Thursday as the energy crisis, to lift 100 million people out of poverty in
the Auction Market comes amidst the intro- hunger and disputed elections continue to a decade, drive economic growth, bring
duction of the gold coins by the RBZ last affect East Africa’s biggest economy. Mean- modern energy services to the people and
month on the 25th as a hedge against infla- while, the Stanbic Bank Kenya PMI edged manage the expected long-term job losses in
tion, a move which is expected to bring the lower to 46.3 in July of 2022 from 46.8 in the oil sector due to global decarbonisation,
ailing currency to order. However, the contin- June, pointing to the fourth consecutive according to the statement.
ued fall raises questions on whom the market month of falling private sector activity and
lacks confidence more in: the Zimbabwe the steepest since April of 2021, as uncer- Kwacha continue firming
dollar or the government. The local currency tainty around the upcoming election and the
has been falling due to a lean back-up of US impact of strong inflationary pressures The currency of Africa’s second-largest
dollar reserves. However, despite the introduc- dampened demand. copper producer continued firming after clos-
tion of the gold coins, the dismal performance Both output and new orders fell at acceler- ing the Thursday session at 16.1800 against
of the local currency on the auction market ated rates, while business confidence the single greenback, also above the perfor-
fails to end. remained muted. More positive was the first mance of the Rand. The kwacha will likely
Despite being backed up by gold coins, the rise in employment for three months. While gain next week due to sustained central bank
Zimbabwe dollar has failed to find a tangible rates of inflation generally eased in July, support and favourable sentiment after Zam-
remorse even for only two weeks. Therefore, they remained elevated as higher costs for bia’s official creditors assured that they
can one say gold is failing the local currency fuel in particular drove prices higher. would restructure its debt.
or it’s a confidence crisis in leadership? Elsewhere, the National Bank of Kenya The Central Bank of Zambia kept its key
(NBK) reported a profit after tax of Ksh interest rate at 9% at its August 2022 meet-
Regional Markets 661.8 million in the first six months of the ing, citing upside inflation risks, lingering
year, a decline compared to Ksh 717.6 mil- vulnerabilities in the financial sectors and
RtigahntdenrienbgouBnadnskopnolpicryospects of further lion reported over the same period last year. weak domestic growth. The annual inflation
Net interest income grew by 18% to Ksh peaked at 24.6% in July last year and
The rand appreciated to 16.8 against the US 4.8 billion from Ksh 4.0 billion, driven by declined steeply until June, when it reached
dollar, the highest since August 17th this gross interest income, which grew by 17per- 9.7%, before edging up to 9.9% in July.
month amid a softer dollar and after domestic cent to Ksh 6.8 billion, owing to increased Meanwhile, inflation forecasts were revised
inflation data raised prospects of further inter- volumes in loans and advances as well as lower to 11.4% in 2022 from 12.5% seen in
est rate hikes. The JSE FTSE All Share Index an improved level of debt recoveries. May, before falling back within the bank's
also closed 0.8% up at 70,341 on Thursday, 6%-8% target range during the first quarter
the highest since August 18th, extending gains Ndeasipraitedienpcrreecaisaeteins faxgasuinpsptlyUS dollar of 2024. The real GDP growth is now seen
for the third straight session, driven by tech at 3.1% in 2022, down from a 3.5% projec-
companies and healthcare stocks. The Nigerian currency, the Nigerian curren- tion in May.
Meanwhile, investors continued to assess the cy, Naira, depreciated against the US dollars
global economic outlook while awaiting direc- at the Investors and Exporters window. Data Pula closes at 12.6a
tion on interest rates by the U.S. Federal Re- from FMDQ securities where Naira is offi-
serve from Chair Jerome Powell's speech at cially traded showed the exchange rate on The Botswana Pula closed at 12.6263 on
Jackson Hole this week. On the domestic data Tuesday closed at N430.67 to a dollar. Nai- Thursday, August 18 from 12.6103 in the
front, South Africa's producer inflation accel- ra’s poor performance occurred despite an previous trading session. The Botswana Pula
erated further to a fresh high of 18% in July, increase in the amount of forex supply to is expected to trade at 12.61 by the end of
surpassing market estimates of 17.6%. On the the market. this quarter, according to Trading Economics
business front, mining group Gold Fields Meanwhile, Nigeria aims to raise an initial global macro models and analysts’ expecta-
posted a jump of 29% in half-year profit, $10 billion in funding to implement its tions.
driven by higher metal prices and increased energy transition plan ahead of COP27 Looking forward, it is estimated to trade at
production. climate talks later this year. Nigeria needs 13.09 in 12 months’ time. Historically, the
Conversely, platinum group metals miner at least an additional US$10 billion a year Botswana Pula reached an all-time low of
and a total of US$410 billion to deliver on 12.85 in July this year.
its net-zero targets by 2060, Vice President

ZSE WEEKLY COMMENTARY

In the week under review, the Zimbabwe Stock Exchange closed the month
of August in a trough as sell-offs continued to pressure demand. The main-
stream ZSE All Share Index fell -4.3% in the week to close at 13,747.45
points, a 6-month low, culminating an August fall of -17.4% which is the sec-
ond-worst monthly performance in exactly 2-years. As investors shun
ZWL-denominated asset classes in favor of safer and viable alternatives,
losses in the week under review were evenly distributed across all of the mar-
ket's major indexes. The US dollar has appreciated by nearly 300% against
the local unit, ZWL, as annual inflation in August reached a world-high of
285%. ZSE year-to-date nominal gains have been reduced overall to 27.03%,
which is a loss of -74% in US dollars. On the upside, the market saw a
modest gain of 0.31% on Thursday as demand increased across all sectors.
However, the recovery cannot be sustained in the short-term as the economy's
liquidity remains constrained.

ZSE ASI 14,365.64 ZSE TOP 10 8,720.74 MEDIUM CAP INDEX 29,500.23
14,071.03 8,470.26 29,448.41

13,974.84 8,408.55 29,312.16

13,830.34 8,331.69 28,917.19

13,705.12 8,209.35 29,026.80

13,747.45 8,230.73 29,149.75

-4.30% -5.62% -1.19%

ZSE TOP 15 9,695.40 SMALL CAP INDEX 520,512.00 ZWL INTERBANK 528.0554

9,453.99 520,804.34 532.0148

9,387.75 501,262.69 535.9859

9,315.71 501,097.71 542.7004

9,199.73 499,251.50 546.8254

9,222.06 500,174.12 551.9291

-4.88% -3.91% 4.52%

On the VFEX exchange, which trades in US dollars, SeedCo International grew
by a staggering 18.7% in the week under review, while BNC decreased by
-0.3%. A total of US$124,626 was traded on VFEX, a 229% increase from
US$37,869 recorded in the week previous. The growth was a result of increas-
ing activity and engagement as SeedCo International recorded a sharp increment.

Despite a few listings, VFEX is now outperforming ZSE as investors are
increasingly seeking value in asset classes denominated in hard currency as the
unit of measure.

On the formal currency markets, the sole legal exchange rate (interbank
exchange rate) went up by a further 4.52% from 528.0554 to 551.9291 per each
US$ while the alternative, the auction market exchange rate, went up by 5.3%

at the close of the most recent auction trading week to ZWL546.825. On the
upside, the local unit has marginally appreciated against the greenback on the
black market as the currency becomes scarce following measures by the Central

Bank to tighten liquidity in the economy.
markets from above 100% to 40–50%.

22 The AXiS XLIII Friday 02 Sept 2022

Weekly

Commoddity Pulse

Gold (US$/oz) Copper (US$/t) Nickel (US$/t)

In the week under review, the gold prices were In the week under review, the copper price slides In the week, nickel prices slumped by
down 1.3% to settle at $1,728 per ounce as risk as the China factory activity slows. This is repre- 0.8% as the demand outlook subdued in
appetite up-tick in the US trades. The safe-haven sented by a further weekly decline of 4.4% to China. In an Aug. 31 webinar, a Shanghai
metals are pressured by an improvement in trader settle at $7,805 per tonne from $8,161 recorded Metals Market (SMM) managing director
and investor risk appetite in the week, as global in the comparative week. predicted a likely ceiling on nickel prices
stock markets rebounded from a two-session The copper price fell on Wednesday as worries in China for the rest of the year. More
sell-off. Negative near-term technical and lower about demand in China were reinforced by the recently, after extreme price volatility in
crude oil prices are also weighing on the precious firmer US dollar. Copper for delivery in Decem- March that caused the LME to temporarily
metals. Meanwhile, the October gold futures were ber fell 3% from Tuesday’s settlement price, suspend trading of the metal, in the inter-
last down $6.4 at $1,734. September Comex silver touching $3.44 per pound ($7,568 per tonne). im the metal is struggling to return to its
futures were last down $0.115 at $18.555 an China’s factory activity contracted for the second record high closing the trading session at
ounce. straight month in August as covid-19 infections, $21,457 per ounce. Regarding the supply
In other news, the global stock markets were the worst heatwave in decades, and an embattled and demand of nickel in China, research-
mostly higher in the week. U.S. stock indexes are property sector weighed on production, suggesting ers pointed to an ongoing supply glut of
pointed toward higher openings when the New the economy is struggling to sustain momentum. NPI and other materials being produced in
York day session begins. Risk appetite is a bit Meanwhile, copper output in Chile, the world’s Indonesia and exported to China. The
improved Tuesday but still not robust. Traders and largest producer of metal, fell 8.6% year on year demand for pure nickel has been squeezed
investors are still concerned about Covid lock- to 430,028 tonnes in July. Moreso, manufacturing by the availability of these materials and
downs in China that are crimping the world’s sec- output in the Andean country fell 5.1% in the by increased recycling activity within
ond-largest economy. The U.S. data point of the month. China.
day is the consumer confidence index.
Brent/Oil (US$/b)
Platinum (US$/oz)
Aluminium (US$/t)

Platinum futures fell to $826 per tonne from $853 Aluminium prices marginally gained 0.2% in the Oil prices fall on global recession worries,
recorded in the prior week, representing a weekly trading week ended 2 September 2022 to ease at thus, extending their weekly slide by 4.6%
decline of 3.1% and a year-to-date loss of 11.9%. $2,365 per tonne. According to analysts, they said to settle at $96 per barrel on investor wor-
This comes as demand for base metal shrunk the price of aluminium is likely to go up in the ries that the global economy would slow
from the largest consumers. In other news, Zimba- medium term due to factors like a surge in further with renewed restrictions to curb
bwe has doubled its mining royalties on platinum demand. Demand and margin worries weigh on COVID-19 in China. Brent crude futures
miners. Mining royalties must now be paid in aluminium producers as crises continue. for October, due to expire on Wednesday,
both local and foreign currency in the ratio of The price of the metal fell 45% from the March were down $2.51 at $96.8 a barrel follow-
50:50. Platinum miners with plants in Zimbabwe 2022 peak to around 2,400 dollars per tonne now ing Tuesday's $5.78 loss. The more active
capable of producing platinum group concentrates due to factors like the lockdown in China. In November contract was down 62 cents to
will now also pay a beneficiation levy on unbene- addition, Equity Axis research expects green $97.2 a barrel. U.S. West Texas Intermedi-
ficial exports. The royalty rate for platinum investments across major economies will lead to ate (WTI) crude futures were down 44
miners – among them units of Anglo Platinum a strong uptick in demand for aluminium. cents, or 0.5%, to $91.20 a barrel. This is
and Impala Platinum has been raised from 2.5% the steepest decline in about a month, on
to 5%. Lithium mining companies must now pay fears that fuel demand could soften as
a new 5% royalty. global central banks hike rates to fight
Copper surging inflation, and as unrest in Iraq
failed to dent the OPEC nation's crude
exports.

FINANCIAL MARKETS AT A GLANCE 2022

ZSE All Share Index ZSE Top 10 Index ZSE Small Cap Index Interbank Market Rate

13,747.45 8,230.73 500,174.12 551.9291
-4.3% -5.6% -3.9% -4.52%

ZSE Top 10 Index ZSE Small Cap Index ZSE Medium Cap Index

All Share index ZSE Top10 index All Share index Small Cap index All Share index

Medium Cap index

13,747.45 500,174.12 29,149.75
8,230.73 13,747.45 13,747.45

WOW -5.6% MOM -16% YTD 20.8% WOW -3.9% MOM -1% YTD 24.2% WOW -1.2% MOM -10% YTD 42.8%

ZSE Financials Sector ZSE Financials index ZSE Consumer Discretionary Index ZSE Consumer Staples Index

All Share index All Share index ZSE Consumer Discretionary index All Share index ZSE Consumers Staples index

24507.59 13,747.45 13,747.45
13,747.45 18819.98 16619.28

WOW 2.8% MOM -2% YTD 74.8% WOW -3.8% MOM -16% YTD 53.6% WOW -4.9% MOM -14% YTD 21.5%

ZSE Industrials Index (New) ZSE ICT Index ZSE Materials Index

All Share index ZSE Industrials Index (new) All Share index ZSE ICT Index All Share index ZSE Materials Index

16608.42 13,747.45 13,747.45
13,747.45 17902.42 10195.47

WOW 3% MOM -7% YTD -12.3% WOW -7.7% MOM -20% YTD 9% WOW -8.4% MOM -17% YTD 16.7%

ZSE Real Estate Index ZSE Real Estate Index Interbank Market 36.5% JSE All Share Index 67257.13
13,747.45
All Share index Interbank All Share index JSE All Share index

9240.94 -14%
13,747.45
WOW -6.7% MOM -4% WOW -4.4% MOM -0.6% YTD -8.8%
YTD 5.4%
BSE All Share Index
LUSE All Share Index NGSE All Share Index

BSE All Share index LUSE All Share index NGSE All Share index

7367.49 7017.34 49836.51
13,747.45 13,747.45 13,747.45

WOW 0.04% MOM 1.8% YTD 5.1% WOW 0.1% MOM 2.% YTD 15.8% WOW 0.4% MOM -4.5% YTD 16.7%

Company Latest Price Previous Week Consumer Latest Price Previous Week Materials Latest Price Previous Week TOP 5 WEEKLY RISERS
Staples ZWL Cents ZWL Cents ZWL Cents ZWL Cents Sector ZWL Cents ZWL Cents
African Sun COUNTER PRICE CENTS CHANGE % CHANGE
AFDIS 31000 32480 AXIA 1580.97 1583.38 ARTZDR 1445 1700
ARISTON 270 210 EDGARS 5806.78 6358.61 LAFARGE 10200 12000 ARISTON 270 59.87 28%
BAT 230000 238500 NTS 658.7 762.5 PROPLASTICS 2140 2125 FCB 862 118.44 16%
CFI 37000 37000 RTG 1300 1300 TURNALL 457 457 G/BELTINGS 161.42 21.21 15%
DELTA 22118.55 22400.92 SIMBISA 820 850 Willdale 200 184.49 MASIMBA 5000 650 15%
DAIRIBORD 2195 2450 TRUWORTHS 15502.19 15974.5 RioZim 8500 9355 OK 3453.52 302.76 10%
HIPPO 20825 24300 170 200
INNSCOR 27004.28 27113.08 ICT Financial Latest Price Previous Week TOP 5 WEEKLY FALLERS
MEDTECH 1020 1200 Sector Latest Price Previous Week Sector ZWL Cents ZWL Cents
MEIKLES 10003.91 10000 Ecocash ZWL Cents ZWL Cents COUNTER PRICE CENTS CHANGE % CHANGE
NATFOODS 134500 134500 ECONET 3882 First Capital Bank 862 700.74
OK 3453.52 3170.74 ZIMPAPERS 3306.21 11376.24 CBZ 15668.12 14363.29 FMP 568 -125 -18%
SEEDCO 7001.24 7900 11061.88 400 FBCH 5785 5875 ZBFH 7050 -1363.33 -16%
STAR AFRICA 164.35 163.16 Real Estate 400 FIDELITY 2200 2200 ECOCASH 3306.21 -604.64 -15%
TSL 6055.56 6125 Sector Previous Week FML 1900 1884.21 EDGARS 658.7 -116.3 -15%
Tanganda 12393.6 12600 MASHHOLD Latest Price ZWL Cents GBFS 1700 1700 TRUWORTHS 170 -30 -15%
FMP ZWL Cents 500 NMBZ 1500 1651.43
709.17 ZBFH 7050 8000
524 ZHL 491.9 491.63
568

JSE All Share Index BSE All Share Index LuSE All Share Index NGSE All Share Index

67257.13 7367.49 7017.34 49836.51
-4.4% 0.04% 0.1% 0.4%

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