Browsing: zimbabwe

Zimbabwe’s Central Bank said the increase in its policy rate to 200 per cent from 80 per cent will take effect from July 1 after annual inflation hit almost 192 per cent this month.

The benchmark interest rate was last raised to 80 per cent in April from a previous 60 per cent.

“The committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years,” central bank governor Dr. John Mangudya said.

The latest figures from the Zimbabwe National Statistics Agency (ZIMSTATS) showed Saturday that the country’s annual inflation rate reached 191 per cent in June. A new blow to the purchasing power of Zimbabweans, stoking fears of a return to the 2008 hyperinflation period where savings were wiped out.…

According to an article by the Herald published on June 27, 2022, popular bullion coins include the American eagle, the Canadian Maple Leaf, the South African Krugerrand, the Isle of Man Gold Cat, the Australian Kangaroo, and the China Mint Panda Bear. They added that gold is a haven against inflation and a gold coin is made mostly of gold while most gold bullion coins are pure gold.

Meanwhile, in an article dated May 27, 2022, Bloomberg described the RBZ as the world’s most aggressive central bank. According to an article by Pindula News published on June 27, 2022, Zimbabwe’s former Finance and Economic Development Minister, Tendai Biti, said the Reserve Bank of Zimbabwe (RBZ) has outlived its usefulness and, therefore, should be abolished.

He made the remarks in response to a cocktail of measures introduced by the government to stabilize the economy. The main duty of the RBZ is …

Fossil Mines is reportedly owned by Obey Chimuka, according to 263Chat Business.

According to a publication by New Zimbabwe dated June 7, 2022, the disposal of Holcim’s Zimbabwean shareholding follows prior disposals of Holcim shareholding in the Northern Ireland, Zambian and Malawian markets amid plans that the group is in the process of disposing of its Indian cement business. The firm told Bloomberg that they are constantly evaluating possibilities to align their portfolio with a vision to open new growth opportunities.

On January 25, 2022, the group announced the intention to dispose of its 76.45 per cent shareholding in LACZ as part of its strategy to divest from the cement manufacturing business before inviting interested bidders to submit their expressions of interest to its Financial Advisors, ABSA Corporate and Investment Banking in South Africa.…

The movement of exchange rates on the parallel market has been caused by the government itself. Firstly, the government introduced a currency that economic agents have no confidence in because it did not have the macroeconomic fundamentals to give it credence. There was no parallel market for foreign currency during the years that the country made use of a basket of currencies.

The parallel market only emerged when the government introduced a surrogate currency called the bond note which was said to be at par with the United States dollar. No sooner than the surrogate currency had been introduced that the parallel market emerged, and United States dollars started trading at a premium.

Secondly, the government reportedly purchases foreign exchange on the parallel market. Through the central bank, the government issues new currency and then purchases foreign currency on the parallel market and drives up the exchange rate. It has …

• Stock broker Morgan and Co to launch Made in Zimbabwe  ETF on June 17, 2022
• Made in Zimbabwe ETF to be listed by way of introduction
• The ETF will initially contain Zimbabwean Manufacturers as constituents

Award-winning stock broker Morgan and Co to launch Morgan and Co Made in Zimbabwe Exchange Traded Fund (ETF) on June 17, 2022, on the Zimbabwe Stock Exchange (ZSE). The ETF is going to be launched on the local bourse by way of introduction. According to a presentation by the broker, the fund is set to be largely constituted by manufacturing companies listed on the ZSE, with exposure to other non-manufacturing counters. In addition, the fund will be an actively managed fund with the objective of providing superior returns.

An exchange-traded fund (ETF) is a basket of securities that can be bought or sold on a stock exchange the same way a regular stock can. According …

The National Association of School Governing Bodies’ general secretary, Matakanye Matakanye, told SowetanLIVE during an interview that many teachers were unemployed and the government should prioritize them over foreign teachers.

Matakanye also accused the government of failing to create a strong local capacity for specialist teachers.

“There are lots and lots of university graduates who are not working and we don’t get the department’s logic of taking people from outside our country when our people are not working. If this was happening five or 10 years after democracy, it would be understandable. It is unacceptable that the department of basic education is still getting educators from Cuba and Zimbabwe after 26 years of democracy,” he said.

Meanwhile, according to the Rwanda Education Board (REB), Rwanda is set to receive close to 500 Zimbabwean teachers by September this year. The teachers will be placed in polytechnics and higher learning institutions.…

• Platinum mining is where Loucas Pouroulis, the chairman of mining outfit Tharisa PLC made and then lost money and then made it again in South Africa. He is looking to make another fortune digging for platinum on the Great Dyke in Zimbabwe
• A look at the rise, fall and rise again of storied platinum mining entrepreneur Loucas Pouroulis.
• Tharisa PLC and Karo Mining Holdings, both Loucas Pourolis backed vehicles are the latest companies to venture into Zimbabwe’s rich Great Dyke platinum field
• Platinum mining is where Loucas Pouroulis and his family have made their wealth however the same mining sector nearly ruined his career 35 years ago
• Tharisa PLC through Karo Mining Holdings is developing a 150,000 platinum ounces a year project in Zimbabwe on the Great Dyke

• Tharisa PLC will be the latest foreign platinum mining firm to enter and invest in the Great Dyke in Zimbabwe.
• The Great Dyke has the second-largest platinum reserves in the world after South Africa.
• Tharisa has entered the Zimbabwean platinum mining sector through Karo Mining Holdings which owns the Karo Platinum Project.
• Tharisa will get into an 85%-15% joint venture with the government of Zimbabwe.
• The Karo Platinum project is expected to come on stream in 2 years and produce at least 150,000 ounces of the precious metal a year.

https://theexchange.africa/investing/investment-in-africa-2022/

Tharisa PLC which is listed on the JSE took control of Karo Mining Holdings when it increased its interest in March from 28% to 85%. The company is building a mine which it has named the Karo Platinum Project and is envisaged to take at least 20 years to complete. The first phase of the mine’s development is expected …

• Zimbabwe’s platinum resources are out of reach for most of the investing public.
• Platinum is one the largest generators of the foreign exchange for the southern African country.
• Zimbabwe has generated the most income in foreign exchange since 2013 due in large part to high platinum prices.
• There is currently no mechanism for investing in platinum for retail investors in Zimbabwe.
• The Great Dyke in Zimbabwe is the second largest platinum resource in the world.

Zimbabwe’s platinum is not for Zimbabwean people. This may at first come across as an outrageous and even preposterous statement however, there is plenty of truth in it. This precious metal has been central to the country achieving a trade surplus as reported in the country’s Monetary Policy Statement in February 2022. The southern African country received US$ 9 billion in foreign exchange receipts in 2021 which was a staggering 53.5% higher than the figure …

Banks provide working capital for the day to day running of the majority of corporate Zimbabwe. Most suppliers work on a 30 to 90-day credit facility where supermarkets get access to products and then pay for the merchandise later. With no line of credit, there has been a shock to the supply chain. A few days after the announcement, companies started issuing press statements stating their failure to honour pre-standing contracts. Within a week, certain products started disappearing from shelves.

Cooking oil, cornmeal, and sugar have vanished from supermarket shelves. A precedent that echoes the dreaded year 2008 when another policy inconsistency made supermarkets into ghost towns. Zimbabweans know the signs of a dying economy and remember how tough life became in 2008.…