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World Bank sees Zim econmy growing

WORLD BANK SEES ZIM ECONOMY EXPANDING
Harare July 2, 2012 (New Ziana) -The World Bank on Monday said the Zimbabwean economy has the potential to grow and become industrialized like most countries in Asia despite the challenges that it is going through.
Speaking at a one day policy seminar, former World Bank senior vice president for development economics and also chief economist Professor Justin Lin said the country’s economy was poised for growth.
“There is possibility for the Zimbabwean economy to become the best on the continent and become an African Tiger,” he said.
“The economic transformation has large room to develop the country.”
The seminar, which the Ministry of Economic Planning and Investment Promotion together with Zimbabwe Economic Policy Analysis and Research Unit hosted, was running under the theme, “Policies for fostering growth in Zimbabwe: Lessons from East
Asian Tigers.”
Lin said most of the Asian countries who are now big players in the global economy were once like Zimbabwe.
“If a country experiences economic stagnation for years, right policies can change its fortunes. Most countries were poor at one point,” he said.
He said the country should now target a seven percent economic growth for 25 years.
“China is what it is today because of a 9, 9 percent growth rate for the past 32 years,” Lin said.
Speaking at the same occasion, World Bank country manager, Nginya Mungai Lenneiye commended Zimbabwe for getting inspiration from East Asian economic development experiences.
Lenneiye said the experiences of East Asia during the times of high and low economic growth were relevant to Zimbabwe.
“Today’s seminar is an important building block in a dialogue over what Zimbabwe could do not only to attain, but maintain a high rate of inclusive economic growth in the years to come,” he said.
The Zimbabwean economy is recovering from over a decade of economic melt down.
New Ziana

PROPERTY SECTOR BATTLING TO RECOVER

PROPERTY SECTOR FAILING TO RECOVER
Harare June 30, 2012 (New Ziana) -The Zimbabwe Revenue Authority (ZIMRA) should charge Value Added Tax (VAT) on actual amounts collected and not invoices as this is weighing down revival of the sector, an expert said on Saturday.     
Property investment consultant Vengai Madzima said ZIMRA should be sympathetic to the sector which was battling to recover from a decade long economic meltdown.
“The prevailing tax system which requires upfront payment of VAT on invoiced amounts as opposed to actual collected and a 100 percent penalty plus interest on delayed submissions is not sympathetic to the operations of property companies,” he said.
Madzima said the system was burdensome and impacted negatively on cash flows of real estate agents that still required significant recapitalization.
He said the sector was also struggling to revive as a result of low rental returns, rising utility charges, inconsistent billing of services and limited mortgage.
Madzima said the perpetuation of the high country risk factor was precluding credit facilities from regional and international financing institutions to the property sector.
Meanwhile another property consultant Mike Juru of Integrated Properties said fresh capital injection into the economy would resuscitate the sector.
“Availing funds to the financial sector will have ripple effects of which in turn will avail the much needed mortgage financing,” he said.
Juru said concerted efforts should be made to reduce lending rates as well as resuscitate the manufacturing sector which would create positive downstream effects.
The challenges dogging it, the property sector remains the second most rewarding form of investment after the money market.
The sector has over the years become an investment avenue for middle-class Zimbabweans living abroad.
New Ziana

Genesis depositors to be refunded next month

GENESIS BANK DEPOSITORS TO BE COMPENSATED NEXT MONTH
Harare June29, 2012 (New Ziana) -The Deposit Protection Corporation (DPC)  on Friday said it will next month start  compensating people who had deposited funds in Genesis Investment Bank which closed early this month.
Genesis Bank early this month voluntarily surrendered its banking licence to the Reserve Bank of Zimbabwe after failing to raise minimum capital requirements.
Through a public notice the DPC, formerly known as the Deposit Protection Board, said it was pushing for the interim liquidation of Genesis Bank.
“The DPC wishes to announce that following the closure of Genesis Investment Bank by the Reserve Bank of Zimbabwe on 11 June 2012, the regulatory authorities have filed for Provisional Liquidation of the institution with the high Court.
“Upon confirmation of the Provisional Liquidation by the High Court, a process which should be concluded by 5th July 2012, DPC will immediately upon verification pay all bona fide depositors up to the maximum insurable amount, whilst all creditors will be paid during the liquidation process upon realization of assets,” it said.
The DPC said the exact pay out date would be made public soon.
“A public statement will be issued in due course confirming the pay out dates to all affected depositors and creditors to Genesis Investment Bank,” it said.
The DPC is an autonomous statutory body established under the Banking Act to administer the Deposit Protection Fund.
It commenced operations in 2003, and its primary objective is to provide insurance to depositors in registered deposit-taking institutions including Commercial and Merchant Banks, Finance Houses, Discount Houses, and Building Societies.
The creation of the Fund is a Government policy response to a growing need to moderate instability in the banking sector and to protect the public, especially the small depositors against the worst consequences of bank failure.
New Ziana

Cairns in $1.6 million loss

CAIRNS IN $1.6 MILLION LOSS
Harare June 29, 2012 (New Ziana) – Food and beverage manufacturer Cairns Holdings recorded a $1.6 million loss for the half year ending February 2012 as the group struggles to return to profitability after suffering a similar fate during the same period in 2012.
The group posted a $1.2 million loss during the comparable period last year.
Turnover slumped 32 percent to $7.4 million as depressed volumes impacted on earnings resulting in the group posting an operating loss of $0.8 million loss up from $0.5 million last year.
“Unfortunately the group was unable to take advantage of this relatively stable macro-economic stability due to its debt burden and working capital constraints,” the company said in a statement accompanying its financials.
The group said it requires $20 million for working capital and to retire its debt.
Cairns performance is also being affected by stiff competition from South African products.
The company said it was about to conclude a supply chain management deal which might assist in turning around its fortunes.
In the review period, Cairns increased its shareholding in subsidiary ME Charhons to 100 percent after acquiring 40 percent from minority shareholders.
The group is currently operating at around 20 percent capacity and is envisaging production levels will go up to 75 percent if it manages to get working capital.
Expectations are high that some working capital might come in from new investors as the Finance Trust of Zimbabwe (FTZ), a majority shareholder in the firm, is on the verge of selling its equity.
FTZ, an investment vehicle of the Reserve Bank of Zimbabwe holds 64 percent of the group's shares.
New Ziana

Binha retains ZNCC presidency

BINHA RETAINS ZNCC PRESIDENCY
Harare June 28, 2012 (New Ziana)-Incumbent Zimbabwe National Chamber of Commerce (ZNCC) president Oswell Binha has been re-elected to the post for another one-year term during the chamber’s annual general meeting which opened in Victoria Falls on Wednesday.
The ZNNC congress opened in the resort town of Victoria Falls on Wednesday and ends on Friday.
ZNCC deputy president Hlanganiso Matangaidze also retained his post for the same period.
Binha, who is the managing director of engineering company Orac Systems which has three branches in Zimbabwe, sits on various boards in the private sector both in the country and in the region.
He is also president of the SADC Chambers of Commerce and Industry as well as member of the National Economic Consultative Forum.
Binha is also the current chairperson of the Business against Crime Forum of Zimbabwe, a board member at Buy Zimbabwe and a member of the National Code of Corporate Governance Crafting Committee.
A holder of mechanical engineering crafts certificates including City and Guilds part two, Binha is also a qualified Class One apprenticeship trained fitter and turner including machining and diploma in mechanical engineering.
He is also a trained rigger ropeman and holds of a bachelor of Commerce degree in Marketing.
Binha is currently studying the Executive Masters in Business Administration with the Graduate School of Business Leadership at the Midlands State University.
At the same annual general meeting, Davison Norupiri was elected ZNCC vice president for the Mashonaland Region, while Godfrey Kombo and Dr Alva Senderayi were elected for Manicaland and Midlands clusters respectively.
ZNCC is a non-profit making membership-based organisation that provides services to support its members in business development.
As an independent organisation, the ZNCC represents the interests of its members through lobbying, collaboration and facilitation.
New Ziana

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