Business

MTP off target

MTP OFF TARGET

Harare June 26, 2012 (New Ziana) – Zimbabwe has failed to attain targets set in the Medium Term Plan (MTP) as the economy continues to under perform particularly in agriculture, a cabinet Minister said on Tuesday.
Economic Planning and Investment Promotion Minister Tapiwa Mashakada told the Parliamentary Portfolio Committee on Budget and Finance that set targets had not been achieved in the first year of the plan, which runs until 2015.
Launched in July last year, the MTP set a number of targets across major economic sectors all aimed at improving performance of the economy, slowly recovering from years of meltdown fuelled by economic sanctions.
Mashakada told the committee chaired by Goromonzi North legislator Paddy Zhanda that the Zimbabwean economy had reached a 'plateau.'
“We need a serious injection in our economy by way of foreign direct investment. We need a lot of support in terms of global overseas financing,” he said.
Mashakada said implementation of the MTP had primarily been affected by lack of funding, policy discord and delays in approving tenders by the State Procurement Board.
Lack of implementation of Public Private Partnerships was also affecting performance, especially on infrastructure projects.
Implementation of the MTP requires over US$9 billion with the resultant effect of the failure to finance plans affecting economic growth targets.
While the MTP targets economic growth rate of 7.8 percent this year, government has said there will be a slowdown to around 5.6 percent.
The MTP envisages an average growth rate of 7.1 percent up to 2015.
“The slowdown in economic performance in 2012 is largely due to the poor performance of the agriculture sector,” Mashakada said, adding that the mining sector was however improving its performance.
Mashakada said the manufacturing sector was also failing to improve its performance due to a number of factors revolving around lack of cheap finance.
He said only inflation targets of between four and six percent during the plan period were likely to be achieved.
Mashakada noted that while economic performance was in the positive in 2011 and 2012, no new jobs had however been created.
“The growth that has been registered has been jobless and that is a challenge. We need to create growth that creates jobs,” he said.
He said the government was failing to improve living conditions as “poverty is on the increase.”
“We are fortunate that we dollarised and everything fell into place, but it’s very clear that where we are now is not sustainable,” Mashakada said.
New Ziana

State enterprises urged to commercialisesTATE

PUBLIC ENTITIES URGED TO COMMERCIALISE OPERATIONS
Harare June 15, 2012 (New Ziana) –State enterprises should commercialize their operations to reduce dependence on central government for funding, an official said on Friday.
Commercialization means transforming from being bureaucratic and conservative to market oriented enterprises.
State Enterprises and Parastatals Restructuring Agency (SERA) executive director Edgar Nyoni told New Ziana that commercialization ensured positive returns for the public entities.
“Commercialization has nothing to do with change of ownership. It entails implementing a number of general principles that address problems facing these entities,” he said.
Nyoni said Treasury had various programmes needing financing hence it could not meet all the requirements due to liquidity challenges.
“Debt financing and management is critical where an entity has an accumulation of trading losses and huge debts overhang on balance sheets,” said Nyoni.
He urged public entities to consider disposal of idle or obsolete assets, machinery and all non-core assets to eliminate excess costs.
Meanwhile Nyoni said the commercialization exercise would be undertaken or implemented with support of the line Ministries and other government departments.
Government recently launched a working document aimed at enhancing transparency, accountability and credibility in the restructuring process.
Zimbabwe has 78 state enterprises most of which are operating at a loss due to a variety of factors chiefly under capitalization.
New Ziana

Falgold in hunt for US$10 million

FALGOLD IN HUNT FOR US$10 MILLION
Harare June 14, 2012 (New Ziana)- Gold mining and exploration company Falcon Gold Zimbabwe is exploring ways of mobilizing US$10 million to fund expansion programmes to boost production.
Falgold executive director Ian Saunders said the Bulawayo based gold miner did not have capacity to fund the projects from its cash flows.
The funding will be directed towards restarting subsidiary Venice Mine as well as installing additional capacity at Golden Quary Mine.
“These projects require funding in an amount greater than is practical to provide from the current operating cash flows,” Saunders said in a statement accompanying the company's financials for the half year ended March 2012.
“Accordingly, the company is currently exploring sources of new funding amounting to approximately US$10 million,” he said.
Saunders said Falgold was targeting to improve production from underground mining at Danly Mine.
He said the company had commenced exploration programmes for possible expansion, with results expected in the next nine to twelve months.
He said Falgold, a subsidiary of Toronto Stock Exchange listed concern New Dawn Mining Corp, was working on its indigenization plan to comply with the country's empowerment laws.
Zimbabwe's empowerment laws demand that locals be majority shareholders in major companies across the economy.
Meanwhile, in the review period Falgold realised US$16.4 million from sales of gold bullion.
The company produced 9 819 ounces during the review period sold at an average price of US$1.69 per ounce.
Net profit stood at US$3.2 million while earnings per share were US$0.028.
The results are however not comparable with the prior period as Falgold has changed its financial year from December to September.
New Ziana

Interfin suspended from bourse

INTERFIN SUSPENDED FROM ZSE
Harare June 12, 2012 (New Ziana) – The Zimbabwe Stock Exchange (ZSE) on Tuesday suspended trading in shares of Interfin Financial Services (IFS), the holding company of beleaguered financial institution Interfin Bank Limited.
IFS traded on the local bourse under the banner Interfin.
The Reserve Bank of Zimbabwe (RBZ) on Monday placed Interfin Bank, a key subsidiary of IFS under the management of a curator for six months.
ZSE acting chief executive Martin Matanda told New Ziana that following the placement of the bank under curatorship the ZSE Listings Committee met and decided to suspend trading in Interfin shares until further notice.
“The ZSE Listings Committee met this morning (Tuesday) and decided that the investing public did not have the correct information with regards to Interfin Financial Services,” he said.
“Trading in IFS shares has therefore been suspended.”
IFS becomes the fifth suspended counter on the local bourse joining Barbican, Redstar, Steelnet and TZI.
The firm listed on the ZSE in 2010 through a reverse takeover of CFX Financial Services to become the sixth financial counter on the bourse.
Other financial counters included ABCH, Barclays, CBZ, FBCH and ZBFH.
Explaining the placement of Interfin Bank under curatorship, the RBZ said it followed revelations that the financial institution was not in a safe financial position.
The bank, placed under the care of Peter Bailey of KPMG Chartered Accountants, was also said to be under capitalised, had concentrated shareholding and was abusing corporate structures.
High levels of non-performing insider and related party exposures, chronic liquidity and income generation challenges, poor board and senior management oversight, as well as violation of banking laws and regulations were also discovered at Interfin Bank.
“The primary purpose of the curatorship is to protect depositors, preserve the assets of the Interfin Bank Limited and protect the stability of the financial system,” said the RBZ.
New Ziana



Zim businesses to attend FOCAC

ZIM TO ATTEND CHINA-AFRICA BUSINESS CONFERENCE
Harare June 1, 2012 (New Ziana)-The Zimbabwe business community has been invited to participate at the 4th session Forum of China-Africa Co-operation (FOCAC).
The conference of African and Chinese entrepreneurs is slated for Beijing from July 18 to 19.
The China Council for Promotion of Trade (CCPIT) and the Chinese Ministry of Commerce will co-host the event, which is aimed at promoting cooperation as well as strengthening understanding and communication between China and African entrepreneurs.
The Zimbabwe National Chamber of Commerce said at the event, Chinese industrialists will have extensive exchanges and negotiations with business representatives from Africa on the basis of equality and mutual benefit, seeking potential investment, trade opportunities for cooperation.
Previous FOCAC conferences were held successfully in Addis Ababa, Ethiopia in 2003, Beijing, China in 2006 and Sharm El Sheikh, Egypt in 2009.
“This year FOCAC will surely become another significant event in the history of China-Africa economic and trade relations,” said the ZNCC.
It said the two-day program of FOCAC included the opening ceremony, plenary session, and business match-making and signing.
Trade volume on agricultural products between China and Africa reached $4.78 billion in 2011, a 40.2 percent jump over the 2010 figures and seven times that of 2001.
New Ziana

Photo Gallery 

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/536265img1.jpg

Kids talk to soldier dad in Ir

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/168258img2.jpg

U.S. lacks mechanism to accura

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/133965img3.jpg

US Tank and Cryogenics has ove

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/507035img4.jpg

The Black Hawk helicopter seri

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/371478img5.jpg

Listen to child soldiers, woun

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/774443img7.jpg

Helicopters carried US and Afg

Rioting has erupted at a march to commemorate the killing of a 15-year-old boy who was shot by Greek police in 2008. Officers fired tear gas at scores of hooded See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/571155img14.jpg

We left the observation post t

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/205742img16.jpg

Street Battles As Army Tackles

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/564842img17.jpg

Thousands of Troops Are Deploy

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

Latest comments