Browsing: zimbabwe

• The VFEX or Victoria Falls Stock Exchange is Zimbabwe’s exclusively United States dollar only stock market which was launched 3 years ago.
• The Zimbabwe Stock Exchange or ZSE’s main board has been shrinking because of companies migrating to the VFEX.
• Companies in Zimbabwe constantly experience a shortage of foreign exchange to support their increasingly import reliant businesses.

The number of companies that are delisting from the main board of the Zimbabwe Stock Exchange, often known as the ZSE, and moving their operations to the ZSE’s hard currency equivalent, the Victoria Falls Stock Exchange (VFEX), has been growing. When the central bank eliminated the favorable foreign exchange retention levels that had been the primary draw of the VFEX, it is anticipated that the outflow from the ZSE will slow down in 2023. This comes after the central bank eliminated the foreign exchange retention thresholds.

Is Victoria Falls Stock Exchange capital market …

• Zimbabwe’s banking and financial industry reflects the overall health of the economy.
• The country has broadly experienced capital flight and negligible foreign direct investment during the last 2 decades.
• Policy inconsistency has undermined Zimbabwe’s banking and financial industry together with its capital account.

Thungela Resources set to diversify beyond coal in South Africa

Zimbabwe has been dubbed the sick man of southern Africa for the past 25 years. The country has seen capital flight and an outflow of foreign investment. There are numerous causes for this result. The primary cause has been policy blunders and so-called “flip-flopping” by government gatekeepers.

Like to the rest of the world, Zimbabwe’s banking system reflects the activity of the actual economy. Banks and other financial services institutions serve as financial mediators for real economy players. This indicates that banks serve as a vital link between surplus and deficit units.

In economic terms, this means …

• Zimbabwe is experiencing crippling power outages characterized by black-outs that can extend to as much as 19 hours a day.
• The electricity shortage is now common place with South Africa recently announcing Stage 6 power cuts.
• The debt capital markets, specifically the issuance of green bonds is a possible solution to rolling black-outs.

Zimbabwe is in the middle of a power crisis that can be attributed to the low water levels at the country’s Kariba Dam which has in times past been used to supplement the country’s power needs. Power outages are a part of every day living in the country.

However, the latest power crisis seems to be more intense threatening to scupper economic growth. Businesses and citizens have had to adjust to erratic power supply schedules. It is now commonplace for people to wake up at midnight to iron their clothes and use their electric appliances as this …

Zimbabwe’s potential to become the bread basket of Africa again may be possible. The country still possesses fertile soils and a favourable climate, and with the right support, the agricultural sector can be revitalized to once again become a major contributor to the country’s economy, providing food security for the nation and for Southern Africa. What is needed are investments in technology and infrastructure, support for smallholder farmers, encouraging private sector investment, and addressing climate change.

Zimbabwe has a long history of agriculture dating back to the 11th century when the Shona and Ndebele people began cultivating crops such as millet, sorghum, and corn. In the 20th century, the country became known as a major agricultural producer, particularly in the areas of tobacco, wheat, and maize (corn). The country’s fertile soils and favourable climate made it an ideal location for farming, and the government actively promoted and supported the agricultural …

When buying any product what do you really look at on the labels? How often do you check where the products were made? Who knows, maybe some of the products are made on Mars.

One thing for sure is you will come across a tag which reads: ‘Made in Zimbabwe,’ ‘Proudly manufactured in Zimbabwe’ or simply ‘Grown in Zimbabwe.’

Exports continue to grow this year thanks to the increasing popularity of Zimbabwean products in regional markets.

According to statistics recently released by ZIMSTAT, Zimbabwe’s exports grew by 12.8 per cent, from US$3.75 billion to US$4.22 billion, between January and August this year.

This growth has been anchored by export growth in emerging and non-traditional markets in countries such as United Arab Emirates (UAE), China, Belgium, and Italy.

The figures show that Zimbabwe’s products to United Arab have grown to US$1.38 billion in 2022. Exports to China also grew to around …

The commission also approved the Dairibord Zimbabwe/Tavistock Estates deal and the acquisition of 100 per cent shareholding in DSI Underground by Sandvik Holdings.

“The transaction was classified as a horizontal merger since the parties are competitors at the same level and in the same relevant market. Examination of the proposed acquisition by Sandvik of 100 per cent of the shares in DSI sought to establish whether the merger will be contrary to public interest through substantially lessening competition or creating a monopoly situation that will be contrary to public interest in the Zimbabwean market,” read the report on the acquisition.

According to CTC, Sandvik-the acquiring firm, is a public limited company incorporated in Sweden and is into high-tech and global engineering. In Zimbabwe, Sandvik operates through its subsidiary, Sandvik Mining and Construction Zimbabwe (Pty) Ltd (“Sandvik Zimbabwe”), and supplies drill rigs, underground trucks and loaders, aftermarket-parts, service and rock tools, …

The company’s performance was mainly affected by several reasons, including the roof collapse in 2021 which halted production and resulted in low revenues.

Another factor is foreign currency exchange losses incurred on the related party borrowing of US $32 million and related party payables. As a result, the company has not been able to generate sufficient cash fl­ows to settle short-term borrowings due to external parties. The decommissioning of cement mill 1 to make way for the commissioning phase of the VCM also adversely affected cement volumes.

Although the decline in revenue is partly attributed to the decommissioning one of the existing cement ball mills to make way for the installation of the new Vertical Cement Mill (VCM). The new VCM which is anticipated to be fully operational by Q4 2022 is expected to revive production and income.

If you are just wondering what a VCM is, cement mills are …

Fast food giant, Simbisa Brands Ltd., the firm that controls high-profile restaurant chains across African markets, spurred its planned VFEX listing, notifying investors in a comprehensive roadmap that the deal may be through by December 2, 2022.

Simbisa, which has risen from its Zimbabwean roots to establish a formidable African network, executes its strategy through a string of high-end hospitality brands that include the flagship Chicken Inn, Pizza Inn, Creamy Inn and Bakers Inn, one of the country’s biggest bread producers.

It also holds the franchises for quick service restaurant chain; Rocomamas, Nandos and Steers, along with Galito

In a statement that disclosed Simbisa’s rationale to switch from the ZSE, the firm’s board rallied shareholders to give an emphatic nod to the transaction at an extraordinary general meeting scheduled for November 18, 2022.…

Riozim Limited the Zimbabwe based, and Zimbabwe Stock Exchange-listed diversified miner, has more going wrong for it than right.

For a mining company looking at news reports around it, analyst coverage and its financial reports one cannot help but wonder if all is well at one of the oldest ZSE-listed mining companies.

The company has been in the news for poor labour relations with its workers and for poor operational and financial performance and it looks like there is no end in sight for the troubled miner. Investors on the ZSE and in the diversified miner got some reprieve when Bloomberg broke the story that Riozim had bought a diamond miner in Namibia in a move meant to herald the company’s foray into the rest of the continent and increase its investment activities in Zimbabwe.

• RioZim can be reasonably called a beleaguered or troubled company. It is not exactly

Post the Restructure, in January 2018, Probrands disposed of its dairy assets to a newly incorporated company, Prodairy, a dairy and dairy products processor.”

The company has a long history of brushes with the law.

In 2013 Innscor Africa Limited was fined US$ 60 million for not following the proper procedures in its acquisition of majority shareholding in National Foods Limited in 2013. The CTC, after conduction investigations on the transaction, found that Innscor acted against regulations when it purchased a majority interest in National Foods.

Innscor Africa Limited as in its most recent run-in with CTC did not notify them of their intention to acquire a majority stake in National Foods Limited which is a contravention of the Competition Act.…