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December 20-26, 2024

Sexual
completes woes hit innuendos in
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agreement
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RBZ governor charts course

ZSE Top Performer to December 18, 2024
Company Name: First Mutual Properties
Sector: Real Estate
Managing director: Christopher Manyowa
Share Price: ZiG 102,54

for stability, growth in 2025

Weekly Change: +7,94 percent
YTD Change: +297,84 percent
Market Cap: ZiG1 267,52 million

About First Mutual Business Writer

Properties Limited R
eserve Bank of Zimbabwe Governor, Dr.
John Mushayavanhu, has outlined his key
priorities for 2025, emphasising a contin-
ued focus on price and currency stability while
supporting economic growth.
In an exclusive interview with Business Weekly,
Dr Mushayavanhu highlighted the anticipated

F
irst Mutual Properties, formerly known as Pearl Prop- rebound in GDP growth, driven by a favourable
erties Limited, is a subsidiary of First Mutual Holdings. agricultural season.
It is a real estate company with vested interests in “Our primary focus will remain fostering price
the development and management of commercial prop- and currency stability while supporting economic
erties in the major towns of Zimbabwe. growth,” Dr Mushayavanhu stated.
First Mutual Properties has a significant property port- “We anticipate a rebound in GDP growth from
folio, comprising some 117 250 square metres of lettable an estimated 2 percent in 2024 to a projected 6
space made up of office parks, retail shops, commercial percent in 2025.”
and industrial property. This projected growth will be driven by a
It owns and manages 41 buildings in the major economic favourable agricultural season, which is expected
hubs of Zimbabwe, including high-rise commercial build- to enhance food security, reduce inflation and
ings, industrial and warehouse properties and retail outlets. moderate the food import bill.
Christopher Kudakwashe Manyowa is the managing Furthermore, Dr Mushayavanhu emphasised
director of First Mutual Properties. He holds a BSc Rural the continued strength of the external sector, with
and Urban Planning Honours Degree as well as a Master’s sustained increases in foreign currency receipts
degree in Business Administration (MBA), both from the and diaspora remittances. These developments, he
University of Zimbabwe. noted, will further solidify the stability achieved
He is a seasoned professional with more than 25 years’ thus far.
experience in town planning, property management, for- “On interest rates, we remain committed to
mulation and management of projects, valuations, property maintaining positive real rates to preserve value
investment analysis including acquisitions and disposal and curb speculative borrowing,” he added.
of properties. The Bank Policy Rate will be reviewed as nec-
Chris started his working career as a town planner in essary, based on inflation trends and economic
the Public Service and Municipal governments, then later output.
qualified as a registered estate agent and property valuer. “Any adjustments will be informed by incoming
He is the former head of property development for Old data and our inflation forecasts.” The stock of the local currency the Zimbabwe ZiG, has remained relatively low in the banking sector
Mutual Property where he served for seven and half years The Bank policy rate was kept at 35 percent at
before joining First Mutual Properties as general manager the last meeting of the central bank’s Monetary
Property Services, a position he held for 5 years before his Policy Committee.

Businesses navigate choppy waters in 2024

appointment as managing director. De-dollarisation, while a key objective, remains
First Mutual Properties also has a residential trading stock a gradual process.
of two- and three-bedroomed garden flats in Avondale, “De-dollarisation is a process, not an event,
Harare. especially given Zimbabwe’s historical context,”
Dr Mushayavanhu acknowledged.
Despite this, he highlighted encouraging pro- Nelson Gahadza
gress, noting that the ZiG has been widely accepted while in the mining and quarrying sector, it mar- Dairibord Holdings chief executive officer

Z
as a medium of exchange, and transactional dol- imbabwe’s operating environment ginally increased, particularly for enterprises in Mercy Ndoro told Business Weekly the year 2024
larisation has declined significantly. has remained largely the same over gold and ferrochrome production. was tough, marked by a myriad of challenges,
He said the ZiG was designed to be fully backed the years, and industry and businesses ZNCC said the respondents were citing chief among them policy inconsistencies that
by a basket of foreign reserves, including gold, other have continued to find ways to manoeuvre the exchange rate distortions, low demand, and affected business performance.
precious minerals, and nostro balances. difficult space to foster growth and make further power outages as the main reasons weighing She said the inconsistencies created uncertain-
“This backing means we can only issue domestic investments. down capacity utilisation. ties in the market that hindered the industry’s
notes and coins when fully covered by verifiable In 2024, several issues continued to be flagged “For some firms, lack of access to foreign ability to enter into long-term commitments.
reserves. We adopted a cautious “drip-feeding” by businesses as factors increasing the cost of currency or accessing foreign currency at the “Government should enhance transparency
approach to circulation, balancing the need for doing business in Zimbabwe, including mon- exorbitant exchange rate on the black market of government’s intended moves, steadfastness
adequate currency with promoting a cash-lite econ- etary and exchange rate distortions, inflation, has resulted in lower capacity utilisation. The in policy stance, and change of critical policies
omy. We started with smaller denominations and limited access to finance, unreliable power sup- other reasons weighing down capacity utilisation after wide consultations with all affected stake-
introduced the ZiG20 note. Higher denominations ply, corruption, and unreliable infrastructure. are the cost of capital and the non-optimal fiscal holders,” she said.
like ZiG50, ZiG100, and ZiG200 will be rolled out Throughout the year, Zimbabwe’s businesses framework,” reads the report. Ndoro said economic challenges such as
only when necessary.” were constantly tweaking operational models As companies struggled to secure adequate liquidity crisis, inflation, and currency volatility
Dr Mushayavanhu said financial dollarisation with a major focus on costs as part of contin- working capital and relied on expensive short- also compounded the situation for companies.
remains high, “but we are addressing this through gency strategies to keep their companies afloat term borrowings, the risk of cutting back on She said the Government should address mac-
policies that increase demand for the local cur- in a volatile operating environment. production, retrenchments, and closures increas- roeconomic challenges for currency stability,
rency”, he explained. According to the Zimbabwe National Cham- ingly became a reality. control inflation, and maintain fiscal discipline.
These policies include requiring tax payments ber of Commerce (ZNCC) 2024 annual state of According to ZNCC, the central bank should In addition to that, Ndoro highlighted that
in ZiG and implementing measures to boost con- industry and commerce survey report, the curtail money supply growth to stabilise the the high tax burden, such as the introduction of
fidence in the currency. year under review was generally economically exchange rate and prices, as excessive liquidity a sugar tax, disallowed VAT claims on milks and
“Over time, as economic fundamentals improve, difficult; capacity utilisation in most sectors fuels inflation and exchange rate instability. other basic commodities, and the IMTT increase
we expect further de-dollarisation.” decreased when compared to the previous It noted that there is also a need to enhance on USD transactions, placed a higher tax burden
Dr Mushayavanhu emphasised the importance year, 2023. the flexibility of the exchange rate to reduce on industry.
of building public confidence in the ZiG. The report noted that in some sectors, it the impact of the parallel market while stabilis- She said the Government must consider, at
Managing director of First Mutual Properties Christopher “The ZiG was designed to be fully backed by a remained unchanged, and in most service sec- ing the currency through well-targeted foreign the very least, designating sugar tax and IMTT as
Kudakwashe Manyowa basket of foreign reserves, including gold, other tors and agriculture, capacity utilisation declined, exchange market interventions. • To Page 2
◆◆ To Page 2

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2 20 — 26 December 2024 Business News BusinessWeekly

ZSE navigates turbulence, VFEX seeks traction

Nelson Gahadza

Z
but capital markets can combat the current rate on marketable securities can make the leveraging technology to improve market offline in USD. “These remain systemic and structural
imbabwe’s capital markets in shrinkage by expanding the markets and investment landscape more appealing to efficiency are also crucial steps. “This phenomenon ignited improved threats to gains and value for investors and
2024 exhibited varied develop- available products to effectively cast the foreign investors looking to invest in the Mundowozi noted that the year 2024 liquidity on the market, but it was discon- impede building confidence in the bourses’
ments depending on the direction of net wider, and the establishment of the market. “This can lead to increased foreign has also been a transformative period for tinued by regulatory authorities,” he said. trading activities,” he said.
obtaining macroeconomic events, market VFEX is a good first step. direct investment, which can benefit the Zimbabwe’s capital markets, marked by Rukarwa added that stock market liquid- According to Mundowozi, offering tax
analysts have said. “It is encouraging to see the proliferation economy as a whole,” he said. significant developments and challenges, ity, depth, and size are key areas of concern incentives to companies that list on the
During the first quarter, the stock mar- of REITs and ETFs as hedge products; it Bgoni added that lowering the capital and both the ZSE and VFEX experienced locally, and all these variables are a func- ZSE can encourage more businesses to go
ket rallied as general local currency liquid- would be good to see more debt products gains withholding tax can lead to improved unique trajectories influenced by local and tion of economic developments, and an public, increasing market diversity and
ity was high, coupled with exchange rate join the Karo Bond. Deeper innovation will market efficiency as investors may be more international events. improvement in general macroeconomic investment opportunities.
volatility. However, the introduction of a also be critical to ensure that our markets willing to engage in trading activities, lead- “Initially, the ZSE All Share Index conditions should transfer positivity onto “Rwanda has implemented tax incen-
new currency brought about relative sta- remain relevant,” he said. ing to enhanced price discovery. achieved a nominal return of 334 percent the stock market. tives to attract junior mining companies,
bility and moderated stock market activity Finance, Economic Development, and Kuda Mundowozi, a market analyst, said in ZWL terms, translating to 15 percent in Financial analyst Malone Gwadu said which focus on exploration and then sell
to a flat to negative outturn. Investment Promotion Minister Professor the year 2024 has been a period of signifi- USD terms due to the ZWL’s depreciation. the ZSE and VFEX went through relatively their assets after making discoveries. Sim-
Lloyd Mlotshwa, the head of research at Mthuli Ncube recently said the Govern- cant change and adaptation for Zimbabwe’s “Post the introduction of the ZiG, the usual stages of runs and stability, which ilarly, Ireland offers a low corporate tax
broking firm IH Securities, told Business ment will institute additional measures capital [Link] said while challenges index realised a nominal return of 28,64 largely mimic the inflation and exchange rate of 12,5 percent to attract multinational
Weekly the headwinds remain broadly the on the VFEX to prop up the bourse, which such as economic instability, low liquidity, percent, equivalent to a 27,38 percent rate dynamics characterising the economy. companies,” he said.
same: currency dynamics, physical liquid- has largely been characterised by limited and regulatory hurdles remain, the steps return in USD terms,” he said. He said ZSE mainly acts as a safe haven Mundowozi said encouraging compa-
ity, and a difficult regulatory environment. trading activity and liquidity. taken towards currency stabilisation and Munowozi said the the VFEX’s ability to for investors in times of volatility, as was nies already listed on other exchanges to
“It has been a difficult year for capital For the ZSE, the minister proposed to debt resolution are promising. raise capital in hard currency and lower the case during the first quarter (Q1) of list on the ZSE can attract foreign invest-
markets; turnover in real terms on the reduce capital gains withholding tax on “To stimulate Zimbabwe’s capital mar- trading fees provided some relief and 2024 and later in 2024. ment and enhance market liquidity.
Zimbabwe Stock Exchange (ZSE) continues marketable securities to 1 percent effective kets in 2025, a strategic and comprehensive potential for growth. “The rush to hedge against exchange rate He said the Johannesburg Stock
to fall significantly, at this point down 35 January 1, 2025. approach is essential. Investment analyst Enock Rukarwa said loss through buying shares also played a Exchange (JSE) in South Africa has suc-
percent year on year and down about 77 ZSE chief executive officer Justin Bgoni, “Key strategies include enhancing the introduction of ZiG, which brought large role in leading to share price move- cessfully implemented a fast-track listing
percent since 2020. in emailed responses, said the reduction liquidity through the introduction of new about relative stability, moderated stock ments. The VFEX remains hampered in process for companies already listed on
“Whilst the Victoria Falls Stock will incentivise investors to trade, which financial instruments, streamlining regu- market activity. performing well due to liquidity issues,” major stock exchanges, allowing them to
Exchange (VFEX) is showing encouraging will lead to increased liquidity in the mar- latory processes, and implementing wide- “What has been topical around stock he said. place a secondary listing on the JSE’s Main
growth, it has not been enough to offset the ket and will also attract more investors, spread investor education programmes,” market developments is the issue to do Gwadu said there is a need to stabilise Board.
overall decline in activity,” he said. ultimately boosting overall investment he said. with foreign currency settlement, wherein inflation and exchange rate volatility if “This approach has diversified the inves-
Mlotshwa noted that the macro envi- activity. He added that encouraging institu- ZSE trades were being settled with statutory the economy is to be able to attract more tor base and improved brand recognition
ronment will require broader solutions, “A reduced capital gains withholding tax tional investors with tax incentives and charges only and settlement happening activity in the capital markets. for companies,” he said.

Businesses navigate
choppy waters
in 2024
◆◆ From Page 1 through well-targeted foreign exchange
allowable deductions for tax purposes. market interventions to avoid depletion,”
Business has over the year grappled with reads the report.
the high cost of and power supply deficit, ZNCC said given the current foreign
which has crippled industry. exchange reserve stock, coupled with fac-
Ndoro said to facilitate the transition to tors such as high inflation, high public debt
more sustainable energy sources, Govern- to GDP ratio, and widespread informality,
mental subsidies for industrial entities are the full adoption of the ZWG and a return
recommended. to a mono-currency system (ZWG) is not
“Furthermore, a concerted effort to advisable in the short to medium term.
rehabilitate critical infrastructure within In order to give industrial support, the
ZETDC and ZPC is imperative to augment Government should move away from blan-
energy generation and transmission capac- ket incentives to sector-specific tax incen-
ities,” she said. tives that target firms creating additional
Most of the challenges resulted in high employment to cater to each economic
costs of production. Ndoro said there player’s needs to boost the rural indus-
should be improvements in infrastructure trialisation agenda and attract and retain
for consistent and reliable power supply, foreign direct investment.
efficient transport networks, and enhanced Malone Gwadu, a financial economist,
access to finance with lower interest rates said particularly the manufacturing sector
and financial inclusion for SMEs. in Zimbabwe is in need of serious retooling
She said in 2025, the business will con- to modernise their equipment in order to
tinue with its growth agenda with par- be competitive.
ticular emphasis on enhancing process- “Outdated technologies currently in our
ing capacity through capital investments market increase the cost structure and, by
aimed at expanding market reach and derivation, business costs, which are in
augmenting sales volumes. US dollars; hence, retooling is quite key
Ndoro said the company will also in arresting costs that render our local
increase commitment to innovation, ded- produce uncompetitive,” he said.
icating significant resources to research Gwadu said the electricity situation is
and development, with the objective of unfortunately here to stay for a while until
Invictus discovered natural gas in the Muzarabani area, northern Zimbabwe growing a robust and diversified product the necessary interventions are finished,

Aussie firm completes

portfolio. such as the Hwange power plants.
“Market expansion with a deliberate, “Alternative sources may need to be
concerted effort on export growth while considered, especially solar energy. We
rigorous cost management strategies will have abundant solar power, which we are
be implemented across the business to not utilising beyond household level even
optimise operational costs,” she said. for our industries,” he said.
Economist Victor Bhoroma told Busi- Last month, Finance, Economic Devel-
ness Weekly that Zimbabwe’s economy opment, and Investment Promotion Min-

Govt oil/gas sharing

remained resilient and competitive in ister Professor Mthuli Ncube announced
some sectors in 2024, and there are a several proposed interventions that will
number of businesses in some economic shape industry and business operations
sectors that have remained attractive for next year.
investment. However, businesses are calling on the
“When you look at high levels of infla- Government to consider reviewing some
tion and distortions in currency, we can of the proposed measures, which they
conclude that the economy is very resilient. believe will erode competitiveness and

agreement
Corporates have found ways of how to drive the cost of production high.
manoeuvre the economic instability to The Confederation of Zimbabwe Indus-
foster growth and to continue investing,” tries (CZI) expressed concern over the
he said. reduction of the degree of export orien-
Bhoroma noted that since 2009, there tation from 100 percent to 80 percent for
should have been serious action in terms manufacturing companies under Special
of investment in energy, which has been Economic Zones (SEZ), as it will be difficult
among the major impediments for com- to penetrate the export market due to high
Golden Sibanda panies during the year. costs of production.

I
“We continue to discuss strategic of condensate,” he said. Getting gas from offshore developments “Using generators, the cost is unimag- “The proposal is that the degree of
NVICTUS Energy, the Australian partnerships and farm-out options with Invictus plans to complete a 3D seis- in Mozambique, Tanzania, Namibia, and inable,” he said. export orientation be further reviewed
firm exploring oil and gas in north- a range of stakeholders that have the mic survey and further appraisal drilling Angola will however require major invest- According to ZNCC, the Government down,” reads the report.
ern Zimbabwe, says its legal counsel potential to provide both the capital and at the Mukuyu Gas Field to determine ment in gas pipelines to the hinterland. should enhance the flexibility of the CZI is also of the view that the 25 percent
has completed the independent review expertise to support further exploration future development well locations and Several such projects are currently exchange rate to reduce the impact of tax on rental income is too high, as there
of the petroleum product sharing agree- and development of the Cabora Bassa commence the planned pilot project to under consideration, linking Dar es the parallel market while stabilising the are other costs to be met by rental income
ment (PPSA) between the firm and the Project,” he said. provide gas to power the nearby Eureka Salaam to Ndola in Zambia and Lobito currency through well-targeted foreign collections, like renovations, maintenance
Government. The Mukuyu field was earlier this year Gold Mine. in Angola to Lusaka. A third potential gas exchange market interventions. costs, and others.
Apart from the PPSA ensuring the equi- declared the second largest oil/gas discov- “We are on the cusp of something pipeline linking Walvis Bay in Namibia to “Continuously build foreign exchange The industry representative body said
table sharing of value generated from the ery in Sub-Saharan Africa in an upstream special, not only in terms of delivering Lusaka is also under consideration. reserves to cover at least six months of the Government should ensure that the tax
Cabora Bassa Project, the agreement will review published by global energy research a long-term, high-value natural resource Tanzania is also on track to become a imports, and efficiently manage the is applied on net rental income as opposed
also provide a robust governing frame- firm Wood Mackenzie last month. development project but helping over- strong gas producer and exporter via the current foreign exchange reserve stock to gross revenue from rentals.
work for Zimbabwe’s oil and gas sector. Mukuyu’s placing as an estimated 230 come critical energy issues that have been Tanzania LNG project, which is currently
Managing director Scott MacMillan million barrels of oil equivalent (boe) and crippling at regional scale for many years,” in the planning stage.
said in a letter that the review, completed 1,3 Trillion cubic feet (Tcf) resource fol- said MacMillan. Africa has large reserves of natural gas,
by external European legal counsel, was a
major milestone for the company and was
now fast approaching execution.
lowed two gas discoveries from the Upper
and Lower Angwa reservoirs declared by
Invictus in December 2023.
A Standard Bank document entitled
South African Gas Optionality published
in December 2023 noted that Africa
with Algeria, Egypt, Libya, and Nigeria
having more than the entire European
[Link] gas is the cleanest burning
RBZ governor charts course
“Once executed, the PPSA will ensure
the long-term success of the Cabora Bassa
Project, which has potential to address the
The review also noted that the regional
exploration yielded seven discoveries from
a total of 17 wells drilled across the subcon-
accounts for 7 percent of the global proven
natural gas reserves, a figure that is on
the rise.
fossil fuel. The gas can help Africa achieve
universal energy access, which is impor-
tant because 600 million people in Africa
for stability, growth in 2025
region’s growing demand for a reliable tinent in 2023, with Invictus accounting “Since 2000, the gas output volume lack access to energy.
energy source,” MacMillan said. for two of the discoveries. in Africa has increased by over 70 per- In 2021, natural gas and oil made up ◆◆ From Page 1 business community that the RBZ remains
Notably, the Mutapa Investment Fund, In September this year, following the cent. In coming years, it is likely that [a] about 40 percent of Africa’s energy mix. precious minerals, and nostro balances.” committed to sound monetary policies that
Zimbabwe’s sovereign wealth fund, which Mukuyu 1&2 successful discoveries, Invic- record annual growth rate in production Countries that use gas for power gen- This backing, coupled with a cautious foster stability and growth,” Dr Mushaya-
committed to underwrite US$5 million of tus announced eight new high-potential of around 3 percent could be reached on eration have seen their electricity supply approach to currency circulation, has been vanhu concluded.
Invictus’ US$10 million capital raise earlier prospects had been defined in the compa- the continent, increasing from around grow faster than countries that don’t use instrumental in strengthening the ZiG’s role “We are building a strong founda-
this year, was assigned the beneficiary of ny’s eastern Cabora Bassa Basin, totalling 230 billion cubic metres (bcm) in 2020 gas. in the economy. tion for medium- to long-term stabil-
the PPSA product/profit share arrange- an estimated 2,9 trillion cubic feet (Tcf) to about 520 bcm in 2050,” says the study. Natural gas can be key to Africa’s indus- He said since April, the central bank has ity, underpinned by a resilient currency,
ment and equity holder, on behalf of the gas and 184 million barrels of condensate. Algeria, Egypt and Nigeria accounted trialisation [Link] with access aggressively mobilised reserves, increasing robust reserves, and a disciplined financial
Government. MacMillan said this was a huge mile- for more than 80 percent of Africa’s gas to natural gas, among them Algeria, Egypt, them from US$285 million to over US$540 sector.”
MacMillan said the company’s tran- stone for Invictus and highlighted the sig- production in 2020, but this is likely to and Tunisia have relatively more devel- million by November. “The progress we have made in the past
sition from explorer to developer con- nificant further potential of the project, in change going forward, particularly with oped economies where gas provides about “This reserve level covers the current nine months demonstrates our resolve to
tinued to progress well and Invictus had addition to the significant Mukuyu Gas new natural gas developments in Mozam- half of all primary energy. stock of ZiG reserve money more than three “walk the talk.”
achieved significant further exploration Field discovered in late 2023. bique. Nigeria, Mozambique, and Angola have times over. At the local currency equivalent Dr Mushayavanhu’s emphasis on price
success this year. “In 2025, our exploration focus will turn Mozambique is now the continent’s historically looked to maximise the export of ZiG13,6 billion, our reserves also exceed and currency stability, coupled with a meas-
The company is still in the process of to the Musuma prospect to test the Dande third-largest source of gas reserves and value of gas. total local currency deposits in the banking ured approach to de-dollarisation, provides
evaluating the well-site of the successful play in eastern Cabora Bassa. has emerged as a major player in the Some African leaders have touted gas sector, which stand at ZiG12,9 billion.” a roadmap for navigating the economic
oil/gas discoveries to determine the exact “This prospect has interpreted seismic global liquefied natural gas (LNG) sector. as a transitional fuel. This strong reserve position reinforces challenges ahead.
quantum of the resource available and amplitude support and is estimated to Standard Bank says Mozambique should Policymakers face questions about how confidence in the ZiG and ensures its sta- As Zimbabwe enters 2025, the success of
negotiating with partners who will extract have a recoverable prospective resource become the dominant provider of LNG for to balance the benefits of gas with the need bility, said Dr Mushayavanhu. these policies will be crucial for sustained
the deposits from the ground. of more than 1 Tcf and 73 million barrels eastern and southern Africa. to transition to clean energy. “I want to assure Zimbabweans and the economic growth and prosperity.
BusinessWeekly Companies0 20 — 26 December 2024 3

Power woes hit OK

Michael Tome
Business Writer

O K Zimbabwe Limited says escalating

cost of electricity, along with heavy
FBC-StanChart
US$23,9m deal
reliance on backup power systems,

Zim, fuelling costs

significantly influenced overall expenses dur-
ing the half-year period ending in September
2024.
This comes as Zimbabwe has been expe-
riencing incessant power outages affecting
the country’s economic growth and compet-
named ZSE’s
‘Deal of the Year’
itiveness.
Management said the increased cost of
energy supply and power outages were the

. . . firm navigates challenges, reports US$3,7m profit

primary drivers behind a significant increase
in their operational expenses, which surged Tapiwanashe Mangwiro however, contextualised the deal within
and Nelson Gahadza

T
by 16, 29 percent during the review period. Zimbabwe’s challenging economic envi-
“Expenses went up by 16,29 percent from he acquisition of Standard Char- ronment.
US$17,3 million in the prior period to US$20,17 Michael Tome tered Bank Zimbabwe (SCBZ) by “The FBC-StanChart acquisition stands
million in the current period largely due to “The group realised growth in both Dollar (ZiG) denominated transactions. FBC Holdings Limited (FBCH) has out as the only publicly concluded merger
the increased cost of energy supply which K Zimbabwe reported positive sales volumes and revenues. Sales This situation has also exacerbated been named the “Deal of the Year” on the and acquisition (M&A) transaction in a
went up from US$5 million in prior year to
US$8,2 million.
“The cost of electricity was driven by
O revenue and sales growth in
the first half of 2024, driven
largely by the success of the OK Grand
volumes went up by 27, 69 percent as
compared to the prior period while the
gross profit margin improved from 16,83
the disparity between official and par-
allel market exchange rates.
Suppliers accepting local currency
Zimbabwe Stock Exchange (ZSE) by market
analysts.
The landmark transaction, completed
market grappling with inflationary pres-
sures, currency instability, and unpredict-
able fiscal policies,” he said.
increased tariffs while power outages resulted Challenge promotion, which this year percent in the prior period to 19, 64 per- for settlements, offered shorter trad- at a final cost of US$23,9 million, which Rukarwa also pointed to the complexi-
in increased dependence on back-up power, included OK Mart stores. cent in the current period. ing terms or prepayments which placed is US$10 million less than initially antic- ties of Zimbabwe’s regulatory framework,
compounding the effects of the increased cost According to the group, this strategic “The growth in volume was bolstered additional pressure on the company’s ipated, has been praised for its transpar- which often deters potential investors.
of utilities in the current period,” said OK Zim- initiative contributed significantly to an by a successful OK Grand Challenge pro- working capital. ency, strategic importance, and smooth “Despite these headwinds, FBCH’s suc-
babwe chairman Herbert Nkala in half-year increase in the bulk sales segment when motion which included the OK Mart Exchange rate fluctuations during this execution. cessful acquisition of SCBZ is a testament
review to September 2024. compared to previous periods, demon- stores for the first time which resulted period also led to pricing distortions, a A Strategic Milestone to their strategic foresight and resilience,”
Speaking at a recent engagement Chamber strating the company’s resilience and in growth in the contribution of bulk position which was further complicated he added.
of Mines Zimbabwe (CoMZ) chief economist adaptability in a challenging economic sales compared to the prior period,” said by the persistent shortage of foreign Farai Gwaka, a financial analyst, The acquisition has significantly bol-
Pardon Chitsuro indicated that the chamber environment. OK Zimbabwe chairman Herbert Nkala currency in the formal banking sector. described the transaction as a “masterclass stered FBCH’s footprint in the banking
expects the Zimbabwe Energy Regulatory The company reported a 27,69 per- in half-year review to September 2024. This exerted additional pressure on in corporate strategy.” sector. Group chairman Herbert Nkala
Authority (ZERA) to license more power pro- cent increase in sales volumes compared However, the rise in the use of the the exchange rate, resulting in greater He noted that the acquisition not only expressed confidence in the growth poten-
jects to support the ever-growing electricity to the same period the previous year United States Dollar (USD) in the market insistence on USD settlements by suppli- strengthened FBCH’s position in the finan- tial brought by the deal.
demand. when it recorded a 22 percent decrease has led to an increase in USD-denomi- ers and market participants alike. cial services sector but also showcased the “The integration process has been seam-
“We see demand increasing in the outlook in sales volumes. nated transactions within the Group. Looking ahead, OK Zimbabwe group’s commitment to delivering share- less, and we are confident in the poten-
as most mining companies are in an expan- There was a marked improvement Multi-currency transactions in the expressed concern regarding the ongo- holder value. tial growth that this brings to the group,”
sion mode, some previously closed mines in the gross profit margin which rose market remain predominantly in USD, ing power outages, which continue to “This deal has elevated FBCH’s market Nkala said.
are reopening given the current commodity to 19, 64 percent from 16,83 percent in a trend that has been corroborated by hinder business operations. presence and set a benchmark for how He emphasised that investments in
price boom so we expect a jump in terms of the prior year in the latest review period. the monetary policy statements issued It also mentioned liquidity challenges mergers and acquisitions should be con- information technology and customer
demand. Overall revenue experienced a nota- by the Central Bank over the past year, saying they might further strain the ducted in Zimbabwe,” he remarked. service will remain central to the bank’s
“We expect that ZERA is going to license ble 46,6 percent increase, to US$177 mil- thereby necessitating a review of the operational environment, making it The transaction was finalised on May strategy.
more power projects as well as facilitating lion from US$122 million recorded in the group’s functional currency at the begin- difficult for the company to maintain 18, 2024, with FBCH acquiring SCBZ and FBC Crown Bank is now poised to serve
direct importation of power to supplement prior comparable period. ning of the reporting period. optimal performance levels. consulting business the Africa Enterprise a broader range of clients, leveraging syn-
what we have, we also advocate for prioriti- Consequently, this surge in revenue “Based on the review, the Directors These challenges are expected to Network Trust (AENT), as part of the deal. ergies from the acquisition to enhance
sation of the industry in terms of the available allowed OK Zimbabwe to have a modest concluded that the functional currency be exacerbated by the tax proposals The newly acquired banking group was service delivery and market segmentation.
power,” said Chitsuro. five percent increase in profit, rising to of the Group had changed from ZWL outlined in the 2025 budget statement, rebranded FBC Crown Bank Limited, sym- The deal is expected to generate substantial
The energy landscape in Zimbabwe is cur- US$3,7 million from US$3,5 million in the (subsequently, ZWG) in prior year to the which may drive up operational costs bolising a new era of growth and innova- value for shareholders while reinforcing
rently plagued by substantial power supply same timeframe last year. USD with effect from April 1, 2024,” said and negatively affect profit margins on tion for the group. FBCH’s reputation as a leader in Zimba-
deficits with peak electricity demand con- The company’s performance was fur- Nkala. certain product lines, including alcoholic Transparency and execution bwe’s financial services industry.
sistently exceeding the available generation ther aided by the introduction of the The notable results achieved by OK beverages and deli products. The FBC-StanChart transaction has set a
capacity, a situation compounded by ongoing Zimbabwe Gold (ZiG) currency at the Zimbabwe were realised against a back- OK Zimbabwe, however, noted that Tafara Mtutu, another financial analyst, new standard for corporate deals in Zim-
systemic inefficiencies. Just this week, some beginning of the group’s financial year drop of economic challenges, marked the company will need to navigate these highlighted the seamless integration of babwe. Analysts agree that its successful
areas where OK Zimbabwe has branches, have which instilled a modicum of stability by accelerated growth in money sup- complexities carefully while striving to SCBZ’s operations into FBCH’s structure execution amidst challenging economic
been going for days without power supply. and helped to lower inflation rates dur- ply during the second quarter, which sustain its positive momentum in the as a standout feature of the deal. conditions underscores the potential for
Power shortages are estimated to cost Zim- ing the first quarter. resulted in an increase in Zimbabwean market. “The FBC-StanChart deal was trans- strategic and well-executed M&A trans-
babwe 6,1 percent of its GDP per year, compris- parent and executed with remarkable actions to thrive in the country.
ing 2, 3 percent in generation inefficiencies and precision. The integration has been very As FBCH continues to integrate SCBZ’s
3, 8 percent in downstream costs which reflect ity demand stands at 1,900 megawatts, how- challenges related to securing reliable elec- percent of the nation’s export earnings and smooth, making it a clear number one for operations, the group’s focus on inno-
the broader economic impacts of unreliable ever, the average daily power generation from tricity supply. making a substantial contribution to the me,” he said. vation and growth promises to reshape
power supply. the country’s major power stations, notably Mines that lack access to dedicated power national GDP. FBCH’s ability to negotiate a low- Zimbabwe’s banking landscape. For now,
The situation has been exacerbated by the Hwange and Kariba, has been around 750 lines are experiencing severe and continuous Addressing energy challenges requires er-than-expected purchase price further the “Deal of the Year” title serves as a
effects of El Niño during the 2023/24 season, megawatts in the last 5 days. outages, which hinder their ability to meet increased investment and more effective underscores the efficiency and diligence well-deserved recognition of FBCH’s stra-
which led to significantly reduced water levels This shortfall has consequently resulted production targets. management strategies to ultimately achieve with which the transaction was handled. tegic vision and operational excellence.
and diminished electricity generation capa- in frequent and prolonged power outages, As a result, mining companies have been universal access to electricity in the country. Initially, US$34 million had been placed Pending deal
bilities at Kariba, one of the primary sources exceeding 24 hours per day in some places. forced to increasingly depend on more costly Government has however been enhancing in an escrow account to facilitate the acqui-
of electricity for the country. Adverse impacts of these outages extend energy sources, such as diesel. its focus on diversifying energy sources by sition, but US$10 million was returned to The TSL Limited US$25 million offer for
Ageing infrastructure is significantly con- beyond the retail and manufacturing indus- Rising costs associated with the procure- investing in new infrastructure. FBCH after the final purchase consideration 51,43 percent stake in Nampak Zimbabwe
tributing to this energy crisis, leading to fre- tries, severely affecting essential sectors such ment of these alternatives have created sig- A noteworthy development is the recent was determined. when consummated will also be a signifi-
quent breakdowns, outages, and decreased as mining, agriculture, and tourism. nificant operational viability issues for mining construction of the Hwange Thermal Power Navigating economic cant deal for the market. Negotiations are
operational capacity across the power gen- This relentless energy crisis has translated entities. Station Units 7 and 8 Project, which success- still ongoing but both parties have since
eration sector. into lower economic growth. The mining sector is crucial to Zimbabwe’s fully added 600 megawatts to the national challenges signed binding transaction agreements,
Currently, Zimbabwe’s daily peak electric- In particular, the mining sector faces acute economy, accounting for approximately 60 grid. Enoch Rukarwa, also a financial export, pending all necessary regulatory approvals.

Powerspeed posts strong

results, focuses on diversification
Business Writer

P
products. of increasing market share and driving prof-
owerspeed has reaffirmed its commit- “The establishment of Electrosales Timber itability.”
ment to growth and diversification, after is a game-changer for us,” Gapare remarked. Looking ahead, Powerspeed is doubling down
closing the year ended September 30, 2024, “Although it is still in its early stages, we see on its growth ambitions. The company plans to
with a profit of US$4,3 million up from US$3.8 tremendous potential for growth. Our invest- expand its product offerings, optimize branch
million and a turnover of US$128,6 million up ment in a timber processing plant in Mutare will operations, and strengthen its market position
from US$127,9 million. allow us to add value and expand our product as Zimbabwe’s leading hardware supplier.
The company’s shareholder equity grew to range significantly.” Gapare highlighted the company’s growth-ori-
US$49,8 million from US$49.3million, under- The company also reported impressive trac- ented approach, “We believe that offering supe-
scoring a strategic focus on long-term value tion with its retail “Benefits Card,” introduced rior service and value is the key to retaining
creation. in November 2023, which has registered over existing customers and attracting new ones.
Victor Gapare, the Board Chairman, empha- 90 000 customers. This initiative not only This strategy will not only drive market share
sised growth as the company’s driving force. strengthens customer loyalty but also positions growth but also ensure sustained profitability
“Our performance this year reflects our unwa- the company for sustained growth. in the years to come.”
vering focus on expanding shareholder equity A “Business Trade Card” tailored for trade In a testament to its strong performance, the
and building a resilient foundation for future customers is set to launch soon, further enhanc- Board declared a dividend of USD 3.74 per share
growth,” he stated. ing customer engagement. for the 12 months ending September 30, 2024.
In line with its growth strategy, Powerspeed Powerspeed’s growth efforts have not been The dividend will be payable to shareholders on
opened a new branch in Madokero in May 2024, without challenges. Access to capital for expan- the register as of January 10, 2025.
adding to its robust retail network. While the sion remains a critical hurdle, with local financial As Powerspeed continues to navigate eco-
company has been cautious with physical expan- institutions constrained by liquidity issues and nomic uncertainties, its focus on growth and
sion, it has aggressively sought to maximise the high interest rates. innovation positions it to seize opportunities
potential of existing branches. Despite these obstacles, Gapare expressed and deliver value to its stakeholders. “We remain
A key driver of growth during the year was confidence in the company’s ability to adapt and fully committed to our growth strategy and will
the building materials segment, which revealed thrive. “Our commitment to growth is unwaver- continue to apply ourselves wholeheartedly to
opportunities for further spatial optimisation ing, even in the face of economic headwinds,” achieving our objectives,” Gapare concluded.
across branches. he said. With its sights set firmly on expansion and
Recognising untapped market potential, “We continue to source the best products diversification, Powerspeed is poised to build
Powerspeed launched Electrosales Timber, a globally to deliver exceptional value to our cus- on its success and maintain its leadership in
new division dedicated to timber and related tomers, which remains central to our strategy Zimbabwe’s hardware sector.

Pambili sees gold sales rise at Golden Valley Mine

Oliver Kazunga underground drilling programme at Golden Valley, cost of the mines and claims will be US$1 million.
Business Writer

P
and the due diligence on the option to purchase The above amount would be satisfied through a
AMBILI Natural Resources Corporation says the London Wall group of mines,” it said. combination of cash and Pambili shares.
its gold consolidation strategy in Zimbabwe Last year in November, Pambili announced that Gold is Zimbabwe’s single export expected to
is bearing fruit evidenced by the revenue it had entered into a share purchase agreement generate US$4 billion next year going forward
outurn reported from gold sales achieved in the to acquire the Golden Valley project from White underpinned by new investments in the gold
quarter at the firm’s Golden Valley Mine project. Satin Investments (Privvincate) Limited signifying sub-sector, re-opening of closed mines as well as
Recently, the Toronto Stock Exchange-listed a critical moment in the firm’s growth plan. expansion projects.
mining group brought the production plant at The group’s chief executive officer Jon Harris Some of the gold mines that have been re-opened
Golden Valley Mine project, situated near Bula- said: “This third-quarter revenue demonstrates in line with the Government’s thrust to ramp up
wayo, back on line. genuine progress for Pambili. production include Eureka Gold Mine in Guruve,
In a statement, Pambili which has identified a “These gold sales help offset our expenses in Mashonaland Central Province, the Pickstone
new high grade vein at the mine following a six- Zimbabwe, as we assess Golden Valley’s commer- Peerless project which is under redevelopment
hole drilling programme aimed at identifying a cial gold potential through our drilling programme and expansion in Kadoma, in Mashonaland West.
gold resource that can be brought into production, and determine our prospects with London Wall.” Mines such as Shamva Gold Mine, a subsidiary
said gold sales from the local asset were just over Last month, Pambili announced the signing of Kuvimba Mining House (KMH), are working
CAD$60 000 (equivalent to US$41 699) in the third of a 12-month Option Agreement with Long towards ramping up production undertaking
quarter this year. Strike Investments (Private) Limited to acquire exploration and mining expansion programmes.
“Revenue numbers demonstrate progress on our gold claims and surrounding mines in Gwanda, Recently, KMH announced that it was seeking
Zimbabwe gold consolidation strategy. During the Matabeleland South Province. US$150 million to set up processing facilities and
third quarter of 2024, Pambili reported gold sales of Under the Option Agreement, the mining group transform Shamva into a world-class resource.
just over CAD$60 000 primarily through our ons- intends to acquire 21 gold assets in Matabeleland Currently, Zimbabwe is generating about US$3
ite toll milling operations at Golden Valley Mine. region that are owned by Long Strike Investments. billion annually from gold exports.
“Until we start processing our own ore, these The 21 gold claims cover 173 hectares and include Last year, Zimbabwe produced 30,1 tonnes of the
quarterly revenue figures are based on the variable the previously producing London Wall and Jessie yellow metal against 35,3 tonnes delivered in 2022.
grade of ore that passes through toll-milling plant mines. The Government is targeting 35 tonnes this year
at Golden Valley, and are likely to fluctuate. During the term of the Option Agreement, and according to Fidelity Gold Refinery, Zimba-
“However, it demonstrates that an ongoing Pambili will conduct extensive due diligence and bwe’s exclusive buyer of the yellow metal, in the
revenue stream that helps to support Pambili’s exploration of the claims, and should the mining first 11 months of 2024 a total of 32 tonnes were
in-country operating costs — which include the group exercise the Option, the total acquisition produced.
4 20 — 26 December 2024 B H24 Round-up BusinessWeekly

Cassava secures $90m

for African expansion
Business Writer

C
mission to become the leading provider sector growth in Sub-Saharan Africa with Pemhiwa said subsidiary, Liquid Intelligent
assava Technologies, a leading of digital solutions in Africa,” said Hardy a particular focus on digital development, Technologies, has signed a US$220 million
African ICT platform, has secured Pemhiwa (pictured right), President and echoed this sentiment. equivalent ZAR debt refinancing with the
a $90 million investment from a Group CEO of Cassava Technologies. “We are excited to support Cassava’s support of Standard Bank Group, RMB —
partnership between the US International Highlighting the company’s existing platform rollout as it fuels the digital rev- Rand Merchant Bank Nedbank and IFC —
Development Finance Corporation (DFC), shareholder support, Pemhiwa further olution across the region,” stated Jaakko International Finance Corporation further
Finnfund, and Google LLC. solidified Cassava’s position as Africa’s Kangasniemi, CEO and managing director strengthening our balance sheet.
The funding will be used to expand Cas- largest technology company. of Finnfund. “This US$310 million of financing, com-
sava’s digital infrastructure across Africa, The investment is expected to have a He further emphasised the investment’s bined with our strategic reorganisation, is
addressing the significant digital divide widespread economic impact, fostering positive impact on micro, small, and medi- part of our repositioning to an integrated
in Sub-Saharan Africa despite the region’s growth across various industries through- um-sized enterprises (MSMEs) through digital solutions platform delivering:
rapidly growing internet demand. out Africa. improved internet access, facilitating digital Broadband Connectivity, Co-location
Cassava plans to use the investment to “Our investment in Cassava Technolo- and financial inclusion. (data centres), Cloud, Cybersecurity, AI
extend its existing network of over 110,000 gies is a prime example of DFC’s commit- According to Pemhiwa, US International Computing and Fintech services in our
kilometres of fibre optic cables and expand ment to expanding digital infrastructure Development Finance Corporation, Google chosen markets.
its network of data centres. This expansion and unlocking economic potential in devel- and Finnfund now join Econet Group, “These milestones are not just numbers
aims to connect millions of more individu- oping markets,” said Scott Nathan, DFC British International Investment, Public — they represent trust from global inves-
als and businesses to the internet, fostering CEO. Investment Corporation, Royal Bafokeng tors, dedication of our teams, trust of our
economic growth and development across “Reliable internet access fosters connec- Holdings, Gateway Partners, and African customers and support of our shareholders
the continent. tions and creates new opportunities for Export-Import Bank (Afreximbank) as and partners who believe in our vision of
“This investment by DFC, Google and prosperity throughout Africa.” shareholders. a digitally connected future that leaves no
Finnfund is a major step forward in our Finnfund, a strong supporter of private Meanwhile, writing on his LinkedIn page, African behind,” said Pemhiwa.

Afreximbank, MIF partner to

unlock US$50m for Zim projects
A significant injection of up to US$50
million is set to bolster project
development in Zimbabwe, thanks
to a new partnership between the African
Export-Import Bank (Afreximbank) and
the Mutapa Investment Fund (MIF), Zim-
babwe’s sovereign wealth fund.
The two entities have signed a Joint Pro-
ject Preparation Facility (JPPF) Framework
Agreement, designed to mobilise crucial
preparatory funding for projects across
key sectors of the Zimbabwean economy.
The agreement was signed by Mrs.
Kanayo Awani, Executive Vice Presi-
dent of Intra-African Trade and Export
Development, Afreximbank, and Dr. John
Mangudya, CEO, Mutapa Investment Fund,
and witnessed by Prof. Benedict Oramah,
President & Chairman of the Board of
Directors, Afreximbank Group, and Mr.
Zitto Alfayo, Director, Project Preparation.
In a post on its linkedIn page, Afrex-
Lawrence Nyazema imbank said this agreement will see the
bank supporting MIF’s portfolio of investee

CBZ targets unbanked

companies in accessing the necessary funds
to prepare projects for investment.
This means creating a pipeline of
well-structured, “bankable” projects that

with new financial are attractive to financiers, including both

Afreximbank and MIF themselves, as well
as other financial institutions.
“Through this partnership, Afreximbank
structuring. These crucial steps are often
a barrier to attracting larger investments,
ment’s Vision 2030 aspirations.”
The agreement comes at a time Afrex-
“We have had approaches where peo-
ple said they want to do certain projects

inclusion initiatives will support MIF’s portfolio of investee

companies to access project preparatory
funding to create a robust pipeline of
and this new facility aims to overcome
that hurdle.
The targeted sectors for this US$50 mil-
imbank has previously expressed concern
over the lack of preparedness among Zim-
babwean firms seeking funding from the
yet they lacked factual information as to
why they want to do it, where it is going
to be situated and what is needed,” Denya

C
bankable projects that Afreximbank, MIF lion investment are crucial for Zimbabwe’s bank. revealed.
BZ Holdings says it is developing said incentivising informal players through and other financial institutions can readily economic development and align with the In an interview during the SADC Indus- “Such shortcomings, he argued, under-
products and solutions targeted at asset protection, rights entitlements, and finance,” reads the statement in part. government’s Vision 2030 aspirations. trialisation Week and Investment Confer- score a broader issue of project preparation
the informal sector as part of the benefits tied to formalisation could encour- The core focus of this partnership is the According to Afreximbank, the collabo- ence that was held mid this year, Denya and execution in the country. To bridge
group’s focus on financial inclusion. age them to transition. mobilisation of up to US$50 million specif- ration marks a bold step towards unlocking highlighted a significant gap in project this gap, Afreximbank intends to deploy its
The country’s informal sector, which “The high cost of formalisation is a ically for project preparation. This funding investments into the energy, transport and development and execution. project preparatory facility to assist poten-
now constitutes the bulk of economic activ- significant barrier. Instead of focusing on will be instrumental in covering the costs logistics, agro-processing, solid minerals “People want to do a lot of things but tial beneficiaries in developing bankable
ity, remains largely unbanked and out of how to tax the informal sector, we should associated with the early stages of project development and beneficiation services, as they have not thought through the pro- proposals.
most formal financial services channels. prioritise making formalisation attractive. development, such as feasibility studies, well as industrial and allied sectors. duction process, market access and the “There is a gap, not only to project
Group chief executive officer Lawrence Conditional incentives such as social insur- technical assessments, environmental “These sectors are key enablers for eco- technology needed to undertake the pro- preparation but even project execution,”
Nyazema, in a recent interview, said ance schemes could be an effective starting impact analyses, and legal and financial nomic growth, aligning with the govern- ject,” Denya said. Denya emphasised then. — BH24
the group’s financial inclusivity will be point,” he said.
expanded not only through the bank but This is, however, different from a Gov-

ART Holdings faces challenging

also through any of the group’s business ernment approach of instituting several tax
units, such as insurance. heads and penalties in an effort to drive
“On financial inclusion, we are coming formalisation.
up with products and solutions that bring Farai Mutambanengwe, founder and

year amid economic headwinds

inclusivity, and these will come through chief executive of the SME Association of
across all the businesses that we operate,” Zimbabwe, said the current tax regime
he said. discourages formalisation.
He said the banking sector needs to Due to the importance of financial
come up with solutions that draw tenable inclusion, the government first developed
Tapiwanashe Mangwiro

A
deposits from the informal sector. and implemented the National Financial deliberate decision to scale down paper imports, with industrial battery volumes remained optimistic, stating, “We have
“When somebody goes to a fast-food Inclusion Strategy (NFIS), which ran from RT Holdings Limited (ART) faced a production. Export volumes also fell by rising 16 percent, driven by demand from identified partners to enhance our capa-
outlet, they take their informal money, they 2016 to 2020, and the country is now in the turbulent financial year ending 30 15 percent, with foreign currency short- the mining, energy, and telecommunica- bilities and technologies to support our
buy fast food, the deposit comes, but the second phase of the NFIS, which began in September 2024, as ongoing eco- ages in Zambia and Malawi exacerbating tions sectors.” innovation pipeline and talent base.”
deposit quickly disappears. 2022 and will run till 2026. nomic challenges impacted its strategic payment delays. He added that ART had launched mainte- Mutare Estates recorded a 3 percent
“Therefore, we need to find ways of keep- Zimbabwe has made notable strides in transformation. Despite these challenges, Dr Wushe nance-free batteries and expanded battery increase in timber sales volumes and
ing those informal sector deposits so that reducing the number of unbanked individ- Dr Thomas Utete Wushe, the group emphasised the group’s commitment to clinics to combat counterfeit imports. improved gross margins, but illegal min-
our overall deposits go up,” he said. uals in the country through various initi- Chairman, acknowledged the difficul- strengthening its foundation. In the Stationery division, volumes fell ing activities remain a concern.
Nyazema said the group will be develop- atives and will continue to take advantage ties but highlighted the resilience of key “The group was relentless in its drive to by 10 percent due to power-induced short- “We will continue to engage law enforce-
ing products in insurance and agriculture of technology to roll out further financial business units and the company’s focus fix, strengthen, and reposition the busi- ages and market disruptions. However, the ment authorities to ensure the Estate is
targeting the informal sector. inclusion interventions. on repositioning for long-term growth. ness,” he said. new Eversharp pens performed strongly, safeguarded,” Dr Wushe said.
However, experts contend that Zimba- Financial technology plays a key “The group had a difficult year and ART registered an operating profit of contributing 10 percent of total revenue. Looking ahead, Dr Wushe acknowl-
bwe’s high cost of compliance is incentiv- role in providing financial services to all was not able to deliver the expected level US$1 million but recorded a loss before “The listing of Eversharp pens in Zam- edged the unpredictable economic envi-
ising informalisation, and the mandatory levels of society, underserved or mar- of financial performance as the ongoing tax of US$1,5 million, weighed down by bia’s formal retail market is expected to ronment but expressed confidence in the
regulatory environment remains tough ginalised groups including women and transformation of the business was severely restructuring costs of US$675 000. boost exports,” Dr Wushe remarked, group’s restructuring efforts.
even for new businesses and investors, youths, micro, small, and medium enter- impacted by changes in the economic envi- The Energy Storage segment showed affirming the brand’s role in the educa- “The Board remains confident that
resulting in some exploring loopholes to prises (MSMEs), rural communities and ronment,” Dr Wushe stated. resilience despite an 8 percent decline in tion sector. ongoing efforts will gradually strengthen
avoid compliance. smallholder farmers, people with Revenue declined by 11 percent com- overall battery volumes. Dr Wushe noted The Paper division faced significant the Group and increase agility in seizing
CZI president Mucha Mkanganwi, speak- disabilities, pensioners, and the elderly. pared to the prior year, largely due to that “Demand in the market remained challenges, with production scaled back opportunities across all business units,”
ing at the post-budget meeting, recently — BH24 product availability challenges and the high despite increased competition from to optimize new equipment. Dr Wushe he concluded.

Nyaradzo, Doves dominate Zim life insurance market

Z imbabwe’s life assurance sector and Doves Life are leading the life sector reads the report. In terms of Zimbabwe Gold currency cent of the market share, primarily due to which accounts for 16,67 percent of total
saw US$42,94 million in foreign with a total market share of 56,2 percent, In terms of assets, three entities domi- (ZIG), direct life assurers reported insurance its funeral assurance business. revenue. Other life products, including
currency revenue during the first with the rest of the players sharing the nate the market, with 72,58 percent of the revenue of ZIG 850,72 million, equivalent The report shows that the top five com- endowment, term assurance, and whole
half of 2024, representing 68 percent of remaining 43,8 percent of the market. life assurance sector, while the remaining to US$63,09 million based on the average panies collectively generated ZiG$689,90 life, accounted for only 7,48 percent of the
total revenue, according to the Insurance IPEC in the report said in order to sup- entities hold the remainder of 27,42 percent. exchange rate for the period. million in revenue, equivalent to US$51,17 business.
and Pensions Commission’s (IPEC) second port business growth, the industry should Old Mutual has the biggest share of the Funeral assurance and group life assur- million based on the average interbank rate IPEC said restoring confidence remains
quarter report. focus on creating products that align with market in terms of assets. ance business remain the two major driv- for the period. a central focus for the Commission, which
The report highlights the dominance of the current business environment and IPEC said life assurance companies are ers of insurance revenue for the life sector, In terms of insurance revenue by prod- is collaborating with the industry to revive
Nyaradzo Life and Doves Life in revenue evolving consumer preferences, among encouraged to maintain assets with appro- which constituted a combined share of uct, funeral assurance is the primary prod- interest in other long-term products.
share, as well as the need for product diver- other factors. priate duration and liquidity profiles that 86,04 percent of the total revenue. uct in the life sector, contributing 69,36 “The industry must innovate to create
sification and innovation within the sector. “The need to diversify product concen- align with their liabilities, ensuring they Nyaradzo Life Assurance Company percent of total revenue. products that meet market needs,” said the
In terms of sector revenue, Nyaradzo Life tration risk cannot be overemphasised,” can meet obligations as they arise. dominates the life sector, holding 41 per- “This is followed by group life assurance, Commission. — BH24
BusinessWeekly Analysis 20 — 26 December 2024 5

Navigating the intersection

ance, attracting foreign investment and
fostering innovation.
The e-taxi conflict is symptomatic of
a deeper systemic issue: the inability of
Zimbabwe’s legislative processes to keep
pace with technological advancements.

of technology and law

This misalignment not only stifles innova-
tion but also exacerbates socio-economic
inequalities.
For instance, the lack of regulation dis-
proportionately affects rural areas, where
access to affordable and reliable transport
services remains a critical challenge. By
addressing these disparities, Zimbabwe

Timothy Pemba
Technological
. . .Zimbabwe’s slow march towards modernity can unlock the full potential of technology
to drive inclusive growth.
Moreover, the interplay between tech-
nology and law extends beyond the trans-
port sector.
advancements reliable services. Apps like InDrive allow By formally recognising e-taxi plat- been profound. By classifying many gig of e-taxis and propose amendments that From fintech innovations to e-com-
continue to disrupt passengers to negotiate fares directly with
drivers, breaking away from rigid pricing
forms, the legislation introduced tailored
licensing requirements and operational
workers as employees rather than inde-
pendent contractors, the legislation has
promote fairness and efficiency. Spe-
cific provisions should address licensing
merce platforms, Zimbabwe faces simi-
lar challenges across multiple industries.
traditional industries structures.
Hwindi, a locally developed platform,
guidelines. This move provided clarity
for all stakeholders, enabling e-taxi plat-
sought to guarantee benefits such as min-
imum wage, health insurance, and paid
requirements, taxation obligations, and
labour rights, ensuring that e-taxi drivers
The lessons learned from the e-taxi debate
could serve as a blueprint for broader reg-
globally, and integrates familiar features tailored to
Zimbabwe’s unique market conditions.
forms to operate legally while ensuring
traditional taxis were not unfairly disad-
leave.
Although controversial, AB5 highlights
operate under the same basic standards as
their metered counterparts.
ulatory reforms, enabling the country to
harness the benefits of the digital age while
Zimbabwe is no Bolt, a major international player, offers vantaged. the necessity of balancing innovation with Stakeholder engagement is crucial in mitigating its risks.
a streamlined experience similar to Uber, The South African model underscores social protections, a consideration often this endeavour. The conflict between e-taxis and metered
exception.
T
further consolidating e-taxis as the go-to the importance of proactive legislation. By overlooked in developing economies like Policymakers must facilitate dialogue taxis in Zimbabwe epitomises the broader
he clash between e-taxi platforms choice for many. addressing potential areas of conflict early, Zimbabwe. between e-taxi operators, metered taxi challenge of aligning regulatory frame-
such as InDrive, Hwindi, and Bolt However, lacking a regulatory frame- the country avoided prolonged market Other nations, such as Estonia, have associations, and consumers to ensure works with technological advancements.
and traditional metered taxis exem- work means these services operate in a disruptions and created a more predictable embraced ride-hailing services as inte- that new regulations are both practical While South Africa and developed nations
plify the difficulties of adapting outdated legal grey zone. While traditional taxis are operating environment. gral to their digital economy strategies. By and inclusive. Public consultations would provide instructive precedents, Zimbabwe’s
regulatory frameworks to innovative busi- bound by stringent licensing processes, Importantly, it also opened the door for integrating e-taxis into broader smart city not only build consensus but also enhance socio-economic context necessitates tai-
ness models. Zimbabwe’s legal system, operational restrictions, and fixed fare sys- enhanced consumer protections, such as initiatives, Estonia has demonstrated how compliance by fostering a sense of shared lored solutions.
entrenched in legacy structures, has yet tems, e-taxis thrives on minimal oversight. mandatory safety measures and driver technology-driven models can coexist with ownership. Adaptive legislation, underpinned by
to align with these transformative changes, This has led to mounting frustration vetting processes—standards that remain traditional industries under a cohesive reg- Regional collaboration could further stakeholder engagement and regional
creating a precarious and inequitable trans- among metered taxi operators, who argue conspicuously absent in Zimbabwe. ulatory framework. Such forward-thinking bolster Zimbabwe’s efforts. As a member of collaboration, is essential not only for
port ecosystem. that they are subjected to unfair compe- Globally, the regulatory responses to approaches stand in stark contrast to Zim- the Southern African Development Com- resolving current disputes but also for
E-taxis offers convenience, transparency, tition. ride-hailing services vary, offering Zim- babwe’s reactive and fragmented stance. munity (SADC), Zimbabwe stands to bene- preparing the nation for future techno-
and competitive pricing, appealing to tech- They point out that e-taxi drivers often babwe valuable lessons. For Zimbabwe to resolve the ongoing fit from harmonised transport regulations logical disruptions.
savvy urban consumers. avoid compliance costs such as vehicle In the United Kingdom, for instance, e-taxi versus metered taxi conflict, a mul- that facilitate cross-border interoperability. At this critical juncture, Zimbabwe’s
Traditional metered taxis, however, face inspections, formal registrations, and ride-hailing platforms are regulated under ti-faceted approach is required. By aligning its policies with regional stand- ability to bridge the gap between tradi-
a regulatory burden that e-taxis largely adherence to safety standards — costs the Private Hire Vehicles (London) Act First and foremost, policymakers must ards, the country could attract investment tion and innovation will determine its
sidesteps due to legislative loopholes. that metered taxis must bear. 1998. This legislation requires app-based acknowledge the transformative potential and stimulate economic growth within the trajectory in an increasingly digital world.
This imbalance fosters unfair competition South Africa provides a pertinent case operators to obtain specific licenses, main- of e-taxi platforms as part of a broader transport sector.
and exposes the state’s inertia in updating study for addressing similar conflicts. tain comprehensive insurance, and comply digital economy strategy. Finally, Zimbabwe’s legislators must ◆◆ Timothy Pemba is a student of the Decol-
transport laws to encompass app-based Initially, the introduction of e-taxi ser- with safety protocols, ensuring public trust Rather than viewing these services adopt a forward-looking perspective. onisation of Africa with a deep interest
services, leaving critical issues such as vices in South Africa faced fierce resistance and accountability. as disruptive anomalies, they should be The global transport landscape is already in the continent’s socio-economic trans-
taxation, licensing, and labour rights from traditional taxi operators, with pro- In the United States, California’s Assem- recognised as essential components of a being reshaped by emerging technologies formation and its role in the global land-
unaddressed. tests and legal battles dominating the dis- bly Bill 5 (AB5) provides another instructive modernised transport system. such as autonomous vehicles and electric scape. He writes in his capacity; that opin-
In Zimbabwe, e-taxis has emerged as a course. However, the South African gov- example. A comprehensive review of existing mobility. ions expressed do not reflect the views of
preferred transport option for many urban ernment’s decision to amend the National While initially aimed at addressing transport laws is imperative. By enacting laws that anticipate these any organizations he may be associated
residents due to their ability to leverage Land Transport Act in 2019 marked a sig- labour rights within the gig economy, the This process should identify regulatory developments, Zimbabwe can position with. He can be contacted via email at
technology to provide affordable and nificant turning point. bill’s implications for e-taxi drivers have gaps that hinder the effective integration itself as a leader in technology govern- pembatimothy@[Link]

Effective leadership style

for modern businesses

Dr Keen Mhlanga
Effective leadership
in modern business
Sexual innuendos in Zimbabwean is a multifaceted
Modern leaders recognise that the best solutions often come from collective input

advertising: Creativity or shortcut? topic that requires a agement, have become less effective in the ship is fostering an inclusive environment.
face of complex business challenges. Modern Diversity in the workplace brings a wealth
deep understanding leaders recognise that the best solutions often
come from collective input. By promoting
of perspectives and ideas that can drive inno-
vation.
A viral campaign might make a brand grows weary of gimmicks? of various styles and a collaborative environment, leaders can Leaders who prioritise inclusion create an
the topic of conversation for weeks, Take the infamous example of a U.S.- harness the diverse skills and perspectives environment where everyone feels respected
approaches.
I
leading to a surge in sales. But at what based fast-food chain that became of their team members. This approach not and valued, regardless of their background.
cost to the brand’s identity? When the known for its racy commercials featur- n an era marked by rapid technological only enhances creativity but also increases This can be achieved through policies that
smoke clears, and the innuendo fades, is ing scantily clad models. advancements, globalisation, and shifting employee engagement, as team members promote diversity in hiring, as well as train-
the brand seen as innovative, trustwor- While the ads grabbed headlines, workforce demographics, the necessity feel their contributions are valued. ing programs that educate employees about
thy, or quality-focused—or just another they didn’t translate into sustained for adaptive and effective leadership has In practice, collaborative leadership unconscious bias and the importance of
entity that relied on shock value? customer loyalty. never been more critical. can manifest in various forms, such as inclusivity.
Where does it fit? Over time, the brand shifted its Leaders today must not only manage their cross-functional teams or brainstorming An inclusive culture not only enhances
strategy, focusing on quality and taste, teams but also inspire and motivate them, sessions that allow for diverse viewpoints. team dynamics but also improves overall
Let’s unpack the disconnect. A fast- admitting that its earlier campaigns had fostering an environment conducive to inno- Adaptability is increasingly recognized business performance, as diverse teams are
food brand that leans on sexual innu- alienated key demographics. vation and success. This essay explores the as a crucial trait for modern leaders. The often more effective at problem-solving and
endos is essentially equating its burgers Is there a better way? essential characteristics of effective leader- business landscape is constantly evolving, creativity.
with indulgence. ship styles that resonate in contemporary influenced by factors such as technological Moreover, leaders must be adept at lever-
Tariro Manamike That might work to an extent, food is Creativity doesn’t have to rely on business settings, emphasising the impor- advancements, economic shifts, and chang- aging technology to enhance their leadership
an emotional experience, after all, but shock value. Zimbabwean brands could tance of emotional intelligence, collabora- ing consumer preferences. Leaders must be practices. In today’s digital world, technology
Lately, I’ve noticed the overtly suggestive tone can quickly take a page from campaigns that use tion, adaptability, and a focus on employee willing to embrace change and pivot their plays a significant role in facilitating com-
veer into the absurd. storytelling, humour, or relatability engagement. strategies as necessary. munication, collaboration, and productivity.
a curious trend Take, for instance, a local campaign to connect with consumers. Consider At the core of effective modern leader- This adaptability also extends to their Leaders should embrace digital tools that
in Zimbabwe’s with the tagline, “Satisfy your hunger
in more ways than one.”
Coca-Cola’s global “Share a Coke” cam-
paign.
ship lies emotional intelligence (EI). Leaders
with high emotional intelligence possess
leadership style; effective leaders are capable
of adjusting their approach based on the
enable remote work, enhance team collabo-
ration, and streamline processes.
advertising Sure, it’s cheeky.
But does it make you think of juicy
By personalising its bottles with
names, the brand created a buzz with-
the ability to recognise their own emotions
and those of others. This skill is vital in
needs of their team and the situation at hand.
For example, during times of crisis, a more
However, it is equally important for lead-
ers to maintain a human touch, ensuring that
landscape. It chicken or something entirely unre-
lated?
out any risqué undertones.
The campaign was creative, personal,
today’s diverse work environments, where
understanding different perspectives can
directive style may be required to provide
clear guidance, while in stable periods, a
technology does not replace genuine human
interaction. Striking this balance is vital for
seems that sexual The message might grab attention, and memorable, and it boosted sales lead to more effective communication and more participative style could encourage maintaining team morale and engagement.
but it also risks alienating consumers significantly. collaboration. team input and innovation. In summary, effective leadership in mod-
innuendos have who want to focus on the food, not the Locally, there is room to create cul- Emotional intelligence encompasses sev- In addition to adaptability, a focus on ern business requires a combination of emo-
become the go-to innuendo.
Compare this to how other markets
turally resonant storytelling that taps
into values like family, community, and
eral competencies, including self-awareness,
self-regulation, social skills, empathy, and
employee well-being is becoming a hall-
mark of effective leadership. The modern
tional intelligence, strong communication
skills, adaptability, a focus on employee
tool for grabbing approach similar products.
In the U.S., some fast-food giants use
authenticity, elements that deeply con-
nect with audiences and build long-
motivation. Leaders who exhibit these
traits can build stronger relationships with
workforce increasingly prioritises work-life
balance, mental health, and job satisfaction.
well-being, and a commitment to inclusivity.
Leaders must be collaborative and open
attention. humour and nostalgia, positioning their term loyalty. their teams, facilitating open dialogue and Leaders who genuinely care about the to input from their teams, recognising that
food as comforting or “finger-licking trust. For instance, a leader who demon- well-being of their employees are likely to the best solutions often arise from diverse

W
The bottom line
hether it’s a fast-food chain good” without pushing boundaries. strates empathy can better understand the foster loyalty and commitment. This can be perspectives. Furthermore, investing in the
promising satisfaction that Similarly, major beverage companies While sexual innuendos might seem challenges their employees face, leading to achieved through initiatives such as flexible development of future leaders and leverag-
“hits the spot” or an energy have long mastered the art of emotion- like an easy win, they come with risks. more personalised support and ultimately work arrangements, mental health support, ing technology while maintaining a human
drink ad winking at “stamina” these cam- ally resonant advertising — highlight- They can make a brand memorable, but improved performance. and opportunities for professional develop- touch are essential components of contem-
paigns are hard to miss. But I can’t help ing family moments, convenience, and often for the wrong reasons. Moreover, effective leaders are also excel- ment. By prioritising the holistic well-being porary leadership.
but ask: is this clever marketing or just value over shock tactics. As Zimbabwean advertisers navigate lent communicators. In a world where infor- of their team members, leaders not only As the business landscape continues to
a lack of creativity? The brand legacy an increasingly competitive landscape, mation flows rapidly and teams often operate enhance individual performance but also evolve, those who embrace these principles
The seduction of the shortcut the challenge lies in finding ways to across various locations, the ability to convey contribute to a more positive organisational will not only navigate challenges effectively
What does this say about the brand stand out without cheapening their clear and compelling messages is essential. culture. but also inspire and empower their teams
Sex sells. This is not groundbreaking in question? message or alienating their audience. Communication in modern business goes Furthermore, effective leaders recognise to achieve remarkable results.
news. From the early days of modern A brand is more than just its product; Ultimately, creativity is about more beyond mere announcements; it involves the importance of developing their succes- The future of business leadership lies
advertising, brands have leaned on it’s a promise, an identity, and a relation- than shock value, it’s about making an active listening, providing constructive feed- sors. A strong leadership pipeline is vital for in the ability to adapt, connect, and inno-
human nature’s most primal instincts ship with its customers. authentic connection. And that’s some- back, and ensuring that all team members organisational sustainability. vate, creating a more resilient and dynamic
to sell everything from cars to cologne. When a brand uses sexual innuendos thing no innuendo can ever replace. feel heard and valued. Leaders should invest time in mentoring workforce ready to meet the challenges of
In Zimbabwe, however, the use of sexual to sell fried chicken or a fizzy drink, it ◆◆ Tariro Manamike is a seasoned media and Leaders who foster an open communica- and coaching their team members, equip- tomorrow.
innuendos seems particularly jarring, risks trivialising itself. Instead of being public relations professional with over a dec- tion culture encourage their teams to share ping them with the skills and knowledge
especially when the product being remembered for its delicious offerings, ade of experience in broadcast journalism and ideas and voice concerns, which can lead needed for future leadership roles. This not ◆◆ Dr Keen Mhlanga is an award winning
pushed is a fast-food burger or a packet it becomes the brand that “went there.” strategic communication. She is passionate to greater innovation and problem-solving. only prepares the next generation of leaders investment advisor with high skills in
of chips. This strategy might work in the short about human-centred design, business com- Collaboration is another key element but also enhances employee engagement, as Finance. He is the executive chairperson
One can argue that these ads are term, but what about the long-term munication, and their impact on the bottom of effective leadership today. Traditional team members see opportunities for growth of FinKing Financial Advisory. Send your
simply “doing what works.” impact? line. Tariro writes in her personal capacity and authoritarian leadership styles, where deci- and advancement within the organisation. feedback to keenmhlanga@[Link], con-
After all, they do get people talking. What happens when the market can be reached at tarimanamike@[Link] sions are made unilaterally by the top man- Another critical aspect of modern leader- tact him on 0777597526.
6 20 — 26 December 2024 Markets BusinessWeekly

Business Weekly Stock Market Update

Zimbawbe Stock Exchange Key Statistics
Weekly 2023 Last Mrkt Cap Indices
Name Closing Price Previous Price YTD %
Change % Price ZiGmln Previous Closing WTD % Dec-23 YTD %
Afdis 691 691.00 0.00 219.9105 +214.22 825.71 ZSE All Share Index 225.67 219.04 -2.94 210,833.92 -99.90
Ariston 5.98 7.02 -14.81 2.6721 +123.79 99.39 ZSE Top 10 Index 220.08 213.23 -3.11 90,085.91 -99.76
Art 32.65 44 -25.80 8.1121 +302.49 154.62 ZSE Top 15 Index 218.31 211.70 -3.03 121,916.39 -99.83
BAT 7700 7865.80 -2.11 2601.305 +196.01 1,658.15 Small Cap 245.26 238.32 -2.83 5,483,703.77 -100.00
Cafca 2050 2050.00 0.00 621.3121 +229.95 677.71
Market Capitalisation
CBZ 1010.1547 1045.00 -3.33 396.728 +154.62 5,279.69
CFI 481.2 481.20 0.00 137.5891 +249.74 510.27
Previous ZiG Closing ZiG WTD % Dec-23 YTD %
Total 68,533,752,854 65,986,156,557 -3.72 15,770,920,684 318.40
Delta 1404.006 1398.2887 0.41 680.3761 +106.36 18,591.40
DZLH 195.25 195 0.13 120.0935 +62.58 699.00 Top 5 Risers
Ecocash Holdings 32 33.05 -3.18 28.4243 +12.58 1,342.34 Name Current Price Previous %
Econet 255.6601 302.5978 -15.51 186.1091 +37.37 7,649.77 FMP 102.54 95.00 7.94
FBC 1070 1099.9516 -2.72 192.8672 +454.79 7,189.86 GB Holdings 6 5.8 3.45
Fidelity Life 73 85 -14.12 43.4918 +67.85 79.51 SeedCo 270.30 265.10 1.96
FML 443.52 443.52 0.00 225.5133 +96.67 3,060.95 Delta 1404.01 1398.29 0.41
FMP 102.54 95.00 7.94 25.7749 +297.84 1,267.52 DZLH 195.25 195.00 0.13
GB Holdings 6.00 5.80 3.45 5.4509 +10.07 32.20
Top 5 Fallers
Hippo 781.39 787.70 -0.80 348.1749 +124.42 1,508.24
Art 32.65 44.00 -25.80
Mash 240.00 250.00 -4.00 14.8074 +1520.81 4,050.20
Star Africa 2.00 2.40 -16.67
Masimba 298.00 298.00 0.00 150.0754 +98.57 713.38
Econet 255.66 302.60 -15.51
Meikles 350.17 350.17 0.00 288.1447 +21.53 896.97
Proplastics 174.20 204.95 -15.00
Nampak 130.00 130.00 0.00 43.2217 +200.77 982.34
ZHL 29.75 35.00 -15.00
NMB 330.02 370.00 -10.81 144.0724 +129.06 1,333.84
NTS 66.53 66.53 0.00 12.8064 +419.47 168.89
Exchange Traded Fund
OK Zimbabwe 60.00 64.43 -6.88 48.364 +24.06 777.79 Current Price Previous Price
Proplastics 174.20 204.95 -15.00 51.6945 +236.98 438.87 Cass Saddle Agric ETF 5 5 0
RTG 65.00 65.00 0.00 18.009 +260.93 1,622.07 Datvest MCS ETF 3.1 3.1 0
SeedCo 270.30 265.10 1.96 207.8222 +30.06 684.13 Morgan&Co Made in Zim 5 5 0
Star Africa 2 2.40 -16.67 0.6763 +195.73 94.30 Morgan&Co Multi-Sector 211 211 0
Tanganda 295.2789 346.90 -14.88 208.1045 +41.89 770.87 OM ZSE Top-10 ETF 21.00 20.00 5
TSL 220.00 253.00 -13.04 105.8532 +107.84 793.49 Top 10 Market Capitalisation
Turnall 5.92 6.00 -1.33 2.768 +113.87 255.49 COUNTER Value % of total mkt cap
Unifreight 249.00 249.00 0.00 25.979 +858.47 265.12 [Link] 18,591,902,065.62 28.18
Willdale 3.50 4.00 -12.50 4.002 -12.54 62.23 [Link] 7,649,767,436.95 11.59
ZBFH 680.00 680.00 0.00 254.2477 +167.46 1,191.30 [Link] 5,279,689,353.79 8.00
Zeco 0.00 0.00 0.00 0.0018 +0.00 0.01 [Link] 5,109,153,895.87 7.74
ZHL 29.75 35.00 -15.00 21.482 +38.49 540.92 [Link] 4,050,201,621.60 6.14
Zimpapers 6.00 6.00 0.00 4.002 +49.93 34.56 [Link] 3,060,946,654.72 4.64
RioZim 130.00 130.00 0.00 55.2277 +135.39 158.64 [Link] 1,658,152,116.87 2.51
[Link] 1,622,072,102.95 2.46
Victoria Falls Stock Exchange [Link] 1,508,237,401.40 2.29
Weekly 2023 Last Mrkt Cap
Name Uscents Uscents YTD % [Link] 1,342,335,337.28 2.03
Change % Price US$mln 49,872,457,987.05 75.58
African Sun 2.95 3 -1.67 3 -29.9 43.60
Axia 8.98 7.5 19.73 9.16 +20.5 49.83
EXCHANGE RATES 19-12-2024
Caledonia 1600.00 1600.00 0.00 16 -1.2 9.94 INTERBANK RATES
Edgars 1.23 1.22 0.82 1.48 +0.00 7.50 CURRENCY BID ASK AVG
FCB 3.99 4 -0.25 2.45 +22.2 86.22 USD/ZWG 25.0981 26.3851 25.7416
Innscor 46 44.55 3.25 45 +1.0 262.14 GBP/ZWG 31.5834 33.2162 32.3998
Invictus Energy ZDRs 10.00 10 0.00 7 +1.0 9.8525 EUR/ZWG 26.0518 27.3930 26.7224

Natfoods 171.25 149 14.93 130 -8.7 117.14 ZWG/ZAR 0.6927 0.7285 0.7106
BWP/ZWG 1.8346 1.9472 1.8909
Nedbank ZDR 1200 1200 0.00 1100 -99.1 1.94
Padenga 17.96 16.96 5.90 16.52 -0.2 97.27 Africa Market Performance | Overview
SeedCo Intl 20.05 21 -4.52 24 -28.7 52.25 Selected 1-week
Index Name Index Level Year-To-Date returns
Simbisa 29.88 30.03 -0.50 35 +12.2 167.98
Markets returns
WestProp 1012.83 1012.83 0.00 1000 303.85
Local (%) Local (%) USD (%) EUR (%) Date
Botswana BSE DCI 10,049.11 +0.31 +12.54 +9.95 +15.85 19-Dec
Zimplow 1.2 1.5 -20.00 2.37 -47.5 4.13 BRVM BRVM-CI 274.34 +0.04 +28.11 +20.55 +27.86 19-Dec
GOLD COIN PRICE/Oz 17-12-2024 Egypt EGX 30 30,503.07 -0.77 +22.53 -25.4 -21.27 18-Dec
Ghana GSE-CI 4,809.63 +1.84 +53.65 +21.79 +28.71 19-Dec
PREVIOUS DAY’S GOLD PM FIX 2,654.20
Kenya NSE ASI 121.34 +2.41 +31.73 +60.13 +70.13 19-Dec
CURRENCY SELLING PRICE Malawi MSE ASI 169,852.58 +2.47 +53.09 +47.93 +57.15 19-Dec
USD 2,786.91 Mauritius SEM ASI 2,136.48 +0.06 +14.08 +7.8 +14.79 19-Dec
Morocco MASI 14,724.00 +0.31 +21.76 +20.33 +27.75 19-Dec
ZAR 49,777.56
Namibia NSX OI 1,801.18 -3.75 +10.28 +11.03 +18.71 19-Dec
BWP 37,917.14 Nigeria NGX ASI 100,477.46 +2 +34.38 -22.02 -18.43 18-Dec
AUD 4,386.76 Rwanda RSE ASI 148.60 +0.22 +3.41 -6.25 -1.66 19-Dec
South Africa JSE ASI 84,465.35 -2.87 +9.85 +9.72 +16.79 19-Dec
GBP 2,198.57
Tanzania DSE ASI 2,106.80 -0.25 +20.35 +26.86 +29.21 19-Dec
EUR 2,652.18 Tunisia TUNINDEX 9,892.58 - +13.05 +8.67 +15.71 19-Dec
ZWG 71,688.80 Uganda USE ASI 1,171.54 +1.77 +34.27 +39.43 +48.43 19-Dec
Zambia LuSE ASI 15,584.52 -1.31 +43.93 +33.85 +42.36 19-Dec
DIGITAL TOKEN PRICE/mg USD0.0811 ZiG2.09 Zimbabwe ZSE ASI 212.72 -4.59 -99.9 +7.42 -74.48 19-Dec

Unlocking wealth: Diversifying your

portfolio with US, Canadian investments
these opportunities How to Get Started for
of all these companies, from tech giants to but come with their own risks due to rapid Diversifying into the US and Canadian
Zimbabwean Investors
Isaac Jonas with just a basic traditional businesses, reducing the risk
compared to picking one stock.
changes in technology.
Canadian natural resources: Canada Education: Learn the basics. Websites,
markets can be a step towards financial
security, offering exposure to stable and
For Zimbabwean understanding of This is where I invest most of my money has vast natural resources. Investing in books, or even local newspaper articles can growing economies. It’s about balancing
and historically, while the past can not this sector can be lucrative, especially with help. My book can be a starting point, “The risk and reward, providing a cushion
investors, the thrill finance. guarantee the future, US S&P 500 has been global demand for energy and minerals. Intelligent Millennial Investor” It’s available against local economic volatility.
Why look here: These sectors have
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shown to beat more than 90 percent pro- on my website :[Link].

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fessional investors in the US. historically shown strong performance, com. ◆◆ Isaac Jonas, a Canadian economist and
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ting all your eggs in one basket.
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Brokerage accounts: Look for online
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BusinessWeekly Analysis 20 — 26 December 2024 7

Nine months in: Is Dr

position reinforces confidence in the ZiG and
ensures its stability.
TM: Looking ahead to 2025, what are your
priorities, and can we expect any shifts in
monetary policy?

Mushayavanhu’s ZiG revolution

JM: Our primary focus will remain fostering
price and currency stability while supporting
economic growth. We anticipate a rebound
in GDP growth from an estimated 2 percent
in 2024 to a projected 6 percent in 2025. This
growth will be driven by a favourable agri-

a bold move or risky bet?

cultural season, which will enhance food
security, reduce inflation, and moderate the
food import bill.
The external sector is also expected to
Tapiwanashe Mangwiro remain strong, with sustained increases
In a year marked by in foreign currency receipts and diaspora
remittances. These developments will fur-
economic uncertainty My focus was clear: restore price and currency We used stringent open market operations, ther cement the stability we’ve achieved so far.
and external shocks, stability while supporting economic activity.
We have made notable progress. Infla-
progressively increasing the Bank Policy Rate
to 35 percent, raising statutory reserve require-
On interest rates, we remain committed
to maintaining positive real rates to preserve
Zimbabwe’s Reserve tionary pressures have been contained, and ments, and aggressively deploying non-nego- value and curb speculative borrowing. The
the exchange rate has stabilised significantly, tiable certificates of deposit (NNCDs) to lock Bank Policy Rate will be reviewed as neces-
Bank Governor, Dr John despite a brief spike in September. The intro- up surplus bank liquidity. sary, based on inflation trends and economic
Mushayavanhu, has duction of the new currency, Zimbabwe These measures yielded positive results. output. Any adjustments will be informed by
Gold (ZiG), was pivotal. It has gained public Month-on-month inflation, which spiked to incoming data and our inflation forecasts.
steered the nation’s confidence and helped reduce transactional 37,2 percent in September due to exchange TM: De-dollarisation remains a sensitive
monetary policy through dollarisation. rate realignment, fell back to 11,7 percent in topic. How optimistic are you about pro-
Equally important, we have built foreign November. We expect inflation to return to gress in this area?
a critical period of reform reserves to back the ZiG, ensuring it is fully single-digit levels by year-end. JM: De-dollarisation is a process, not an
and stabilization. anchored. This strategy has fostered economic TM: How has the financial sector per- event, especially given Zimbabwe’s historical

S
resilience and laid the foundation for medi- formed under your leadership? context. That said, we have seen encouraging
ince assuming office, Dr Mushaya- um-term stability. JM: I am pleased to report that the bank- progress. The ZiG has been widely accepted
vanhu has tackled pressing challenges, TM: The launch of the ZiG has been a sig- ing sector remains safe, sound, and resilient. as a medium of exchange, and transactional
including exchange rate volatility, infla- nificant shift. What measures were taken to Banks have maintained adequate capital dollarisation has declined significantly.
tionary pressures, and the lingering effects of ensure its success? buffers, strong liquidity positions, and steady Financial dollarisation remains high, but
the El Niño-induced drought. Under his lead- JM: Introducing a new currency is never profitability. Asset quality has also been good. we are addressing this through policies that
ership, the introduction of Zimbabwe’s new easy, especially given Zimbabwe’s historical The RBZ has reinforced its financial over- increase demand for the local currency. For
currency, the Zimbabwe Gold (ZiG), has been challenges. The ZiG was designed to be fully sight and surveillance frameworks to safe- example, requiring tax payments in ZiG and
a pivotal step toward restoring confidence in backed by a basket of foreign reserves, includ- guard stability. implementing measures to boost confidence
the local monetary system and addressing ing gold, other precious minerals, and nostro We have implemented measures to foster in the currency. Over time, as economic fun-
transactional dollarisation. balances. This backing means we can only discipline and compliance, which are criti- damentals improve, we expect further de-dol-
Backed by a firm commitment to sound issue domestic notes and coins when fully cal for long-term financial sector health. A larisation.
monetary policy and aggressive foreign covered by verifiable reserves. resilient banking system supports economic TM: Finally, what message do you have for
reserve mobilisation, his first nine months We adopted a cautious “drip-feeding” activity and growth, as banks play a central Zimbabweans and the business community
in office have set the stage for medium-term approach to circulation, balancing the need role in financial intermediation. as we approach 2025?
economic stability. for adequate currency with promoting a TM: Foreign reserves are crucial for cur- JM: I want to assure Zimbabweans and the
In this exclusive Q&A with Business Week- cash-lite economy. We started with smaller Dr Mushayavanhu rency stability. Can you elaborate on the business community that the RBZ remains
ly’s Tapiwa Mangwiro, Dr Mushayavanhu dis- denominations and introduced the ZiG20 JM: Exchange rate volatility was a major bility, but we remain committed to a floating RBZ’s reserve mobilisation strategy? committed to sound monetary policies that
cusses the successes and hurdles of his tenure note. Higher denominations like ZiG50, concern when I assumed office. We adopted exchange rate system. Encouragingly, the par- JM: A key pillar of our monetary policy foster stability and growth. The progress we
so far, from stabilizing the exchange rate to ZiG100, and ZiG200 will be rolled out only a market-determined exchange rate system allel market premium, which once exceeded has been building and managing foreign have made in the past nine months demon-
managing inflation and ensuring financial when necessary. under the Willing-Buyer Willing-Seller 40 percent, has dropped below 40 percent. reserves. When we introduced the ZiG, we strates our resolve to “walk the talk.”
sector resilience. Additionally, we have implemented policies arrangement, which allows greater price TM: Inflation has been another challenge. committed to full backing by foreign assets We are building a strong foundation for
TM: Dr Mushayavanhu, you assumed to boost demand for the ZiG. For example, discovery and flexibility in foreign currency What strategies have been implemented to to maintain confidence. Since April, we have medium- to long-term stability, underpinned
office during a challenging period. How the Government now requires that 50 percent trading. control it, and what results have you seen aggressively mobilised reserves, increasing by a resilient currency, robust reserves, and a
would you summarise your first nine of quarterly tax payments be made in ZiG. This system stabilised the exchange rate so far? them from US$285 million to over US$540 disciplined financial sector.
months as Governor of the Reserve Bank This measure, coupled with growing public around ZiG13-14 per USD between April and JM: Tackling inflation required a multi- million by November. This reserve level covers I urge businesses and individuals to con-
of Zimbabwe (RBZ)? confidence, has strengthened the currency’s August. A once-off depreciation in late Sep- faceted approach. We implemented tight the current stock of ZiG reserve money more tinue supporting the ZiG and to have confi-
JM: My first nine months have been both role in the economy. tember was a necessary adjustment to align monetary policies to manage liquidity and than three times over. dence in our policies. Together, we can drive
insightful and demanding. I took over at a TM: You mentioned exchange rate sta- the exchange rate with market fundamentals, money supply growth. Excess liquidity was At the local currency equivalent of ZiG13,6 Zimbabwe’s economy toward its full potential.
time of heightened exchange rate volatility, ris- bility. How did the RBZ address volatility, particularly on the supply side. wiped out, and reserve money was capped at billion, our reserves also exceed total local TM: Thank you, Dr Mushayavanhu, for
ing inflation, and economic headwinds, par- and what role does the Willing-Buyer Will- The RBZ occasionally intervenes in the mar- ZiG4 billion for 2024, levels consistent with currency deposits in the banking sector, which your insights and leadership.
ticularly from the El Niño-induced drought. ing-Seller system play? ket to address shortfalls and smoothen varia- sustainable economic growth. stand at ZiG12,9 billion. This strong reserve JM: Thank you. It has been a pleasure.

Overview of 2024 Capital Markets

5. Remove taxes for properties
moving into REITs
Eliminating taxes on properties transferred
into Real Estate Investment Trusts (REITs)
can promote the development of the real
nominated, was somewhat insulated from dict future market conditions. Collaborating with private sector entities to as renewable energy, women-run businesses, estate market and provide more investment
local currency issues but still faced global 9. Inflationary Pressures develop infrastructure and other projects can and environmental projects can attract socially options. In Europe, countries like the UK and
market pressures. High inflation erodes the real value of attract investment and stimulate economic responsible investors. These sectors not only Germany have introduced REIT regimes to
Zimbabwe Stock Exchange investment returns, making it less attractive growth. Public-private partnerships (PPPs) can offer growth potential but also align with meet the growing demand for tax-efficient real
for investors to hold assets in the local cur- also help mitigate risks and share resources. global sustainability trends. estate investment vehicles. These regimes offer
challenges rency. This discourages both local and foreign Many of these projects require substantial tax advantages that make REITs an attractive
13. Multi-currency settlement on
1. Declining value propositions for investment and can lead to capital flight. financing, which can be raised through list- option for property investment.
listed entities 10. Currency Risk ing bonds or equity on the ZSE, increasing the ZSE
6. Encouraging Foreign Direct
The attractiveness of listing on the Zimba- The volatility of the Zimbabwean dollar activity on the exchange and bringing in new Introducing multi-currency settlement
bwe Stock Exchange (ZSE) has diminished due poses a significant risk to investors. Currency investors. options would broaden the pool of settlement Investment (FDI)
to economic instability, regulatory hurdles, fluctuations can lead to substantial losses for 5. Migration towards T+0 options and enhance trade activity, addressing Creating a favourable environment for
Kudakwashe Mundowodzi

T
and limited access to capital. Companies may foreign investors and reduce the attractive- the limitation of available funds for trading FDI through policy stability, tax incentives,
he year 2024 has been a transform- find the costs and complexities of maintaining ness of the ZSE as an investment destination. settlement cycle over the next 2 on the ZSE. and streamlined regulatory processes can
ative period for Zimbabwe’s capi- a public listing outweigh the benefits, leading This has however been stabilized by the years 14. Migration towards T+1 attract international capital and expertise.
tal markets, marked by significant to fewer new listings and potentially delistings. introduction of the ZiG but investor percep- Moving towards a T+0 settlement cycle, The European Union (EU) has emphasized
developments and challenges. This reduces the diversity and vibrancy of the tion remains negative and there is need for where transactions are settled on the same day, settlement the importance of sustainable investments
The Zimbabwe Stock Exchange (ZSE) market, limiting investment opportunities. increased road shows. can significantly improve capital efficiency and Cycle shortening the settlement cycle to in Africa, promoting partnerships to attract
and the Victoria Falls Stock Exchange 2. Inactive debt market 11. Long Settlement Cycle of T+3 make the market more attractive to investors. T+1 reduces the time capital is tied up, ena- investors and boost regional integration. Addi-
(VFEX) have both experienced unique The debt market in Zimbabwe is under- The T+3 settlement cycle delays the availa- This requires upgrading market infrastructure bling faster reinvestment and improved mar- tionally, initiatives like the US-Africa Summit
trajectories influenced by local and inter- developed, with limited issuance and trading bility of funds or shares for three business days and ensuring regulatory support. ket liquidity. Investors can quickly recycle their have resulted in significant commitments to
national events. of corporate and government bonds. This after a trade. This reduces capital efficiency 6. Collaboration with commercial funds into new opportunities. expand trade and investment in Africa.
Zimbabwe Stock Exchange inactivity restricts companies’ ability to raise and makes the market less appealing, espe- Other Proposed Market 7. Crafting of a Green Financing
capital through debt instruments and limits cially to institutional investors who require banking representatives
(ZSE) investors’ options for fixed-income invest- quick access to funds. Working closely with commercial banks Development Solutions Framework
The ZSE has shown resilience amidst eco- ments. A vibrant debt market is crucial for [Link] Suspension of PPC and to encourage their participation in IPOs and 1. Tax Breaks for Listed Developing a framework for green financ-
nomic turbulence. The most notable change providing liquidity and stability to the finan- Old Mutual other market activities can help increase Companies ing can attract investment in sustainable pro-
was the replacement of the Zimbabwean Dol- cial system. The suspension of major companies like liquidity and market depth. Banks can provide jects and support environmental goals. The
lar (ZWL) with the Zimbabwe Gold (ZWG) 3. Low investor confidence PPC and Old Mutual from trading on the ZSE underwriting services, liquidity support, and Offering tax incentives to companies that European Green Deal, for example, aims to
in April 2024. This shift aimed to stabilize Investor confidence in the ZSE is low due creates uncertainty and reduces investor con- investment products. list on the ZSE can encourage more businesses make Europe the first climate-neutral conti-
the currency and restore investor confidence. to economic volatility, political instability, fidence. These suspensions diminish market 7. Massive investor education to go public, increasing market diversity and nent by 2050 and includes a green bond stand-
Initially, the ZSE All Share Index achieved a and past instances of market manipulation capitalisation and liquidity, making the ZSE investment opportunities. For example, ard to finance climate change adaptation and
nominal return of 334 percent in ZWL terms, or corporate governance failures. This lack of less attractive. campaigns Rwanda has implemented tax incentives to mitigation projects. In Africa, green finance
translating to 15 percent in USD terms due to confidence discourages both local and foreign 13. Minimal Participation by Banks Implementing widespread investor edu- attract junior mining companies, which focus is seen as key to unlocking the continent’s
the ZWL’s depreciation. Post the introduction investors from participating in the market, on ZSE IPOs cation programmes to improve financial on exploration and then sell their assets after potential in renewable energy and carbon
of the ZiG, the index realised a nominal return reducing overall market activity and liquidity. Banks play a crucial role in underwrit- literacy and investment knowledge among making discoveries. Similarly, Ireland offers sequestration.
of 28,64 percent, equivalent to a 27,38 percent 4. Low liquidity levels ing IPOs and providing liquidity. Minimal the general population can help build a more a low corporate tax rate of 12.5% to attract Conclusion
return in USD terms. This stability attracted Low liquidity on the ZSE means that it is participation by banks in ZSE IPOs limits the sophisticated investor base. This can lead to multinational companies.
both domestic and foreign investors, although difficult for investors to buy or sell shares availability of new capital for companies and increased market participation and stability. 2. Incentives for secondary listings The year 2024 has been a period of signif-
overall liquidity remained tighter compared without significantly impacting the market reduces market dynamism. 8. Enhancing liquidity icant change and adaptation for Zimbabwe’s
to previous years. price. This can lead to higher volatility and 14. Less Sophisticated Investor Base on the ZSE capital markets. While challenges such as
Victoria Falls Stock Exchange increased transaction costs, making the mar- A less sophisticated investor base can lead to Both the ZSE and VFEX need to improve Encouraging companies already listed on economic instability, low liquidity, and regu-
ket less attractive to institutional investors who lower market participation and higher volatil- liquidity. This can be achieved by introducing other exchanges to list on the ZSE can attract latory hurdles remain, the steps taken towards
(VFEX) require the ability to enter and exit positions ity. Limited financial literacy and investment more financial instruments, such as deriva- foreign investment and enhance market currency stabilisation and debt resolution are
The VFEX, operating in USD, faced different efficiently. knowledge among the general population can tives, exchange-traded funds (ETFs), and Real liquidity. The Johannesburg Stock Exchange promising. The introduction of the Zimbabwe
challenges. Despite an increase in listings and a 5. Increased transaction and regula- reduce the effectiveness of the market. Estate Investment Trusts (REITs), to attract a (JSE) in South Africa has successfully imple- Gold (ZiG) and efforts to improve relations
modest 2,7 percent rise in the All Share Index tory costs Strategies for stimulating the broader range of investors. Additionally, pol- mented a fast-track listing process for compa- with international creditors have laid a foun-
in the first half of 2024, the market struggled High transaction costs, including broker- icies that encourage savings and investment nies already listed on major stock exchanges, dation for future growth.
with liquidity constraints. Public mistrust in age fees, taxes, and regulatory charges, make capital market in 2025 in the capital markets should be prioritised. allowing them to place a secondary listing on To stimulate Zimbabwe’s capital markets in
banks and inconsistent monetary policies led trading on the ZSE less attractive. These costs To stimulate Zimbabwe’s capital markets 9. Regulatory reforms the JSE’s Main Board or AltX. This approach 2025, a strategic and comprehensive approach
to decreased real savings and less foreign cash reduce potential profits and discourage fre- in 2025, several strategic initiatives can be has diversified the investor base and improved is essential. Key strategies include enhancing
directed towards capital market investments. quent trading, leading to lower market activity. implemented: Streamlining regulatory processes and brand recognition for companies. liquidity through the introduction of new
However, the VFEX’s ability to raise capital in Regulatory costs can also create barriers to 1. Lobbying the Government ensuring consistent and transparent policies 3. Incentives for independent financial instruments, streamlining regula-
hard currency and lower trading fees provided entry for new market participants. We must will build investor confidence. The approval tory processes, and implementing widespread
some relief and potential for growth. however commend the government for reduc- Engaging with government officials to process for new listings and financial instru- power producers (IPPs) investor education programmes. Encouraging
Impact of local and international ing the capital gains tax. advocate for favourable policies and regula- ments should be expedited to reduce delays Providing incentives for IPPs can help institutional investors with tax incentives and
6. Increased Regulatory tory reforms can help create a more conducive and encourage market participation. address energy shortages and support eco- leveraging technology to improve market effi-
events Environment environment for capital market growth. This nomic growth. In Africa, countries like Kenya ciency are also crucial steps.
10. Incentivising institutional
Several key events in 2024 significantly A stringent regulatory environment can includes reducing transaction costs, streamlin- and South Africa have successfully attracted Promoting sustainable investments and
impacted Zimbabwe’s capital markets: create challenges for companies and investors. ing regulatory processes, and ensuring policy investors IPPs through favorable policies and regula- developing a green financing framework
1. Currency Reform: The introduction While regulations are necessary for market consistency. Providing incentives for institutional inves- tory frameworks. For instance, South Africa’s can attract socially responsible investors and
of the ZiG was a pivotal moment, aimed at integrity, overly burdensome requirements 2. Aggressive client engagements tors, such as pension funds and insurance Renewable Energy Independent Power Pro- align with global sustainability trends. Addi-
curbing hyperinflation and stabilising the can stifle innovation, increase compliance companies, to invest in the capital markets ducer Procurement Programme (REIPPPP) tionally, fostering public-private partnerships
economy. This move was crucial for the ZSE, costs, and deter new listings and investments. Proactively engaging with potential and can significantly boost market activity. This has attracted significant private investment in and encouraging foreign direct investment
as it helped mitigate the volatility associated 7. Unstable Macro existing investors through seminars, work- includes offering tax breaks or other benefits renewable energy projects. These incentives through policy stability and tax incentives
with the ZWL. Economic Environment shops, and personalized consultations can for investments in prescribed assets. include long-term power purchase agree- will be vital for long-term growth.
2. Debt Resolution Efforts: Zimbabwe’s Economic instability, characterised by help build trust and confidence in the market. 11. Leveraging technology ments (PPAs) and government guarantees. By focusing on these strategies and address-
efforts to return to international capital mar- fluctuating exchange rates, high inflation, Providing clear and transparent information 4. Incentives for mining and ing the challenges, Zimbabwe can create a
kets, including a $331 million compensation and inconsistent economic policies, creates about market opportunities and risks is cru- Continuing the digital transformation of more vibrant and resilient capital market.
package for white farmers, aimed to improve an uncertain environment for investors. This cial. the ZSE and VFEX will enhance efficiency and exploring companies The Zimbabwe Stock Exchange (ZSE) and
relations with creditors and attract foreign instability makes it difficult for companies 3. Listing of Government debt accessibility. Implementing advanced trading Offering tax breaks and other incentives to the Victoria Falls Stock Exchange (VFEX) have
investment. These efforts are vital for long- to plan and for investors to make long-term platforms and ensuring robust cybersecurity mining and exploration companies can attract the potential to become robust platforms for
term economic stability and market confi- investment decisions. securities measures will attract tech-savvy investors and investment in the natural resources sector. investment, contributing significantly to the
dence. 8. Perceived Policy Inconsistency Encouraging the government to issue more improve overall market operations including Nigeria, for example, provides tax holidays overall economic development of the country.
[Link] Economic Trends: Interna- Inconsistent Government policies can cre- debt securities on the ZSE can help develop reducing system down times. and other incentives to encourage mining With continued efforts and strategic initia-
tionally, the global economic environment ate uncertainty and deter investment. Fre- the debt market, provide more investment 12. Promoting sustainable exploration. Similarly, British Columbia in tives, Zimbabwe’s capital markets can drive
remained volatile, with fluctuating commod- quent changes in regulations, tax policies, and options, and increase overall market liquidity. Canada has made permanent two existing economic growth and attract both domestic
ity prices and geopolitical tensions affecting economic strategies can make it difficult for investments mining tax credits to support exploration and international investors in the coming
4. Promoting public-private
investor sentiment. The VFEX, being USD-de- businesses to operate and for investors to pre- Encouraging investments in sectors such activities. years.
partnerships
8 20 — 26 December 2024 2024 Top Stories BusinessWeekly
BusinessWeekly Climate 20 — 26 December 2024 9

B
Are we breathing our
reathing: It’s something we all do “The evidence of planet-killing breathing
without thinking, a natural, life-sustain- is pretty clear, but it needs to be viewed in
ing process. But could it also be con- context,” she said.
tributing to global warming? According to a In other words, humans aren’t the villains
new study published in the journal PLOS One, of the climate crisis just because we breathe.
the answer might be yes albeit in a small way. However, the study does serve as a reminder
Researchers in the United Kingdom have that tackling climate change requires a broad

way to global warming?

revealed that humans exhale trace amounts focus, addressing everything from industrial
of methane (CH4) and nitrous oxide (N2O), emissions to individual behaviours.
two powerful greenhouse gases. What can we do to reduce our
While these emissions make up just 0,1 per-
cent of the UK’s total greenhouse gas emissions, carbon footprint?
the findings raise some interesting questions While you don’t need to stop breathing
about our role in climate change — even when (obviously!), there are plenty of other ways
we’re just breathing. to reduce your carbon footprint:
When we breathe in, oxygen enters our Drive less: Walk, bike or use public trans-
lungs and is transferred to our bloodstream. Cowan explained: “We would urge cau- contributes about 0,05 percent of the UK’s the researchers noted. While human contributions are much port when possible.
In return, carbon dioxide (CO2) — a waste tion in the assumption that emissions from methane emissions and 0,1 percent of the UK’s So, while switching to a vegetarian diet has smaller, it’s still a reminder that every organism Switch to renewable energy: Install solar
product of cellular respiration — is released. humans are negligible. Even if small, they add nitrous oxide emissions. While these numbers plenty of environmental benefits, it probably on Earth plays a role in the planet’s delicate panels or choose green energy providers.
This exchange is well-known and, like all up when considered alongside other sources.” sound small, researchers say they shouldn’t be won’t change how much methane or nitrous balance. Reduce waste: Compost food scraps, recy-
CO2 emissions, plays a role in global warming. The researchers collected breath samples dismissed entirely. oxide you’re exhaling. Should we be worried? cle, and cut back on single-use plastics.
But the new study, led by Dr Nicholas from 104 adult volunteers in the UK and What if I changed my diet? Humans aren’t the only ones exhaling Eat sustainably: While your breath won’t
Cowan from the UK Centre for Ecology and analysed the concentrations of methane and greenhouse gases. Livestock and wild animals Before you start holding your breath to change, eating less meat and dairy can sig-
Hydrology in Edinburgh, focused on two nitrous oxide. Here’s what they found: If you’re thinking this might be another also emit methane and nitrous oxide through save the planet, take a deep one and relax. The nificantly reduce emissions from agriculture.
less-discussed gases: methane and nitrous Nitrous oxide (N2O): Every single partic- reason to embrace a plant-based diet or cut their breath, burps and flatulence. Cows, in emissions from human breathing are minus- Support reforestation: Trees absorb CO2
oxide. ipant exhaled nitrous oxide. back on meat, think again. The study found particular, are known for their methane-heavy cule compared to other sources of greenhouse and help offset emissions.
Both are much more potent greenhouse Methane (CH4): Only 31 percent of par- no significant difference in methane or nitrous burps, which are a significant source of global gases, like burning fossil fuels, deforestation, Let’s face it, humans have enough to worry
gases than CO2, even in tiny amounts. Meth- ticipants exhaled methane, but those who oxide emissions between vegetarians and emissions. and industrial agriculture. about without adding “breathing” to the list
ane, for instance, is about 25 times more didn’t were still likely to release it through meat-eaters. The study suggests that emissions from Cowan and her team stressed that their of climate concerns. Still, it’s fascinating to
effective at trapping heat in the atmosphere other means — yes, we’re talking about burp- “Concentration enhancement of both CH4 wild animals and livestock could account for study isn’t meant to alarm people but to learn how even the most mundane aspects
than CO2, while nitrous oxide is 300 times ing and farting. and N2O in the breath of vegetarians and more than 1 percent of nitrous oxide emissions highlight a previously overlooked source of of our lives can connect to global challenges
more potent. The study estimated that human breath meat consumers are similar in magnitude,” in the UK. emissions. like global warming. — IOL

Microsoft unveils zero-water data

centres to reduce AI climate impact
M icrosoft Corp, trying to miti- capital expenditures in the fiscal year that
gate the climate impact of its data ended June 30, the vast majority related to
center building boom, is starting data centre construction fuelled by demand
to roll out a new design that uses zero water for artificial intelligence services.
to cool the facilities’ chips and servers. It plans to top that figure in the current
Launched in August, the new design will year, requiring rapidly rising amounts of
eliminate the more than 125 million litres energy to run the networks and water to
of water each data centre typically uses cool equipment.
per year, the company said in a statement. Many of latest facilities are going up
The new system use a “closed loop” in hot, dry areas like Arizona and Texas,
to recycle water; liquid is added during making it even more critical to find ways
construction and continually circulated to conserve water.
— obviating the need for fresh supplies. Microsoft’s existing data centres will con-
Data centres will still require fresh water tinue to use a mix of older technologies,
for worker facilities like bathrooms and but new projects in Phoenix and Mount
kitchens. Pleasant, Wisconsin, will begin using the
Microsoft spent more than $50 billion on zero-water designs in 2026. — Bloomberg

African Development Bank invests

US$10m to promote climate tech
T
he African Development Bank of 200 MW of renewable energy capac-
(AfDB) has announced a US$10 ity, expanded energy access for 420,000
million investment from its Sus- households and 31,000 businesses, a
tainable Energy Fund for Africa (SEFA) in the reduction in approximately 17 million
Persistent Africa Climate Venture Builder tonnes of CO2e emissions, and the crea-
Fund (ACV Fund) to boost climate tech- tion of over 66 000 jobs, with a significant
nology entrepreneurship in Sub-Saharan portion benefiting women.
Africa. Wairimu Karanja, partner and chief legal
The bank stated that this catalytic invest- officer at Persistent, stated: “This commit-
women and children are forced to travel ever greater distances every day to collect unclean water from the subsoil, which can cause infections and diseases. ment will unlock $70 million in finance for ment reflects the African Development

Kenya’s devastating
African climate-focused ventures. Bank’s confidence in our climate investing
According to AfDB, the ACV Fund will and in-depth Venture Building model in
meet the critical financing needs of ear- Sub-Saharan Africa. The ACV Fund invests
ly-stage climate technology entrepreneurs, financial and human capital in early-stage
with a focus on high-potential ventures in companies led by outstanding entrepre-

drought is worst in 40 years

key sectors such as solar energy solutions, neurs and gender-aligned teams that can
energy efficiency technologies, electric drive meaningful climate impact while
mobility, agricultural technology, and cir- achieving commercial scalability”.
cular economy innovations. João Duarte Cunha, manager of the
The AfDB said the initiative focusses on Bank Group’s Renewable Energy Funds
boosting African entrepreneurs, particu- Division, which oversees SEFA, said:“Africa

D
larly women-owned and operated firms. is at the forefront of both the climate crisis
rought in Kenya has reached According to the United Nations, in this ence (COP29) held in Baku, Azerbaijan this like Kenya, are the most affected by cli- It stated that SEFA’s strategic investment and the climate opportunity.
dramatic levels, with millions of historical phase the Kenyan people are year, Kenya reiterated the need for more mate change – some of which are the least is likely to attract additional private invest- “We are keen to catalyse more risk and
people affected by the lack of water experiencing the worst water crisis in the financial support from developed coun- industrialised, and consequently, those ments while lowering the risks associated venture capital to support promising
and food. This phenomenon, which until a last 40 years and millions of people do not tries to find adaptation solutions and help with the least greenhouse gas emissions. with early-stage climate technology com- African technology start-ups developing
few years ago followed predictable seasonal have stable access to safe water sources. the country overcome such a difficult time. The results of COP29 highlight a strong panies. commercial solutions to complex climate
cycles, has become increasingly frequent Rivers, lakes and aquifers are slowly dry- Among the main outcomes of the con- global commitment to support the most According to AFDB, this mixed finance and development issues.
and intense. ing up. In the northern areas of Kenya, ference was the “Baku Climate Unity Pact”, vulnerable nations, but the main challenge method immediately addresses the “We look forward to our partnership
Recent climate crises have worsened women and children are forced to travel which includes new collective financial remains to transform promises into con- chronic lack of equity financing, which with Persistent as one of the more sea-
the living conditions of the inhabitants ever greater distances every day to collect targets to support vulnerable countries and crete actions to mitigate the effects of frequently stifles the growth of potential soned early-stage investors in the conti-
of arid and semi-arid regions, whose sur- unclean water from the subsoil, which can a roadmap for global climate adaptation. drought and climate change on Kenya climate initiatives. nent, with a strong track record in energy
vival depends heavily on agriculture and cause infections and diseases. This agreement aims to strengthen the and other countries experiencing similar The ACV Fund is expected to have trans- access and clean energy transition”. —
livestock. In the 2024 UN Climate Change Confer- resilience capacity of all countries that, situations. —Al Jazeera formative effects, including the addition Wires

Biden makes final big push to bolster climate action ahead of next Trump era
T he US has unveiled new stronger and belief,” Podesta said. “That’s not wishful
greenhouse gas emissions targets in thinking. It’s happened before.”
the final weeks of Joe Biden’s pres- The Biden administration also granted
idency in a bid to galvanise international California permission on Wednesday to
and state efforts on climate change despite enforce its pollution rules for cars and trucks,
Donald Trump’s return to the White House. against a Trump promise to dismantle the
The upgraded targets are required by the state’s plans to phase out new petrol engine
UN before February as part of the 2015 Paris vehicle sales by 2035. The approval, which
Agreement, from which Trump is widely involves a waiver from federal rules, gives
expected to once again withdraw the US when California more power to oppose in court
he takes office next month. any Trump attempt at a reversal.
The US’ new goal commits to a reduction Podesta said he was also encourag-
of economy-wide greenhouse gas emissions ing China to submit a target for 2035 that
by between 61 and 66 percent by 2035 from would cut all greenhouse gases from across
2005 levels, with the goal of becoming net its economy by about 30 per cent from peak
zero by 2050, alongside a cut in methane emissions.
emissions by 35 percent over the same period. The world’s biggest polluter, China has
This compares with a previous target for a cut pledged to peak its emissions by 2030 but a
in all emissions of 50 to 52 percent by 2030, big push into clean energy and a slowdown
which the US is already short of reaching. in heavily polluting industrial activity this
While Trump’s withdrawal of the US from year is expected to have put it well ahead
the Paris accord signed by almost 200 coun- of this goal.
tries in his first term came as a blow to the Under the next step in the UN accord,
UN process, no other country followed. The countries have a February deadline to file
action he took to unwind federal environ- their so-called nationally determined con-
mental rules and spur the fossil fuel industry tributions, or climate plans outlining how
was countered or reversed by Biden. they will cut emissions by 2035.
John Podesta, Biden’s top climate diplo- But in making the push to set out the fresh
mat, said reaching the new climate target climate plan before Trump comes to power,
would now rely on mayors, governors and US officials carried out an analysis of what
business executives to “show how many could be achieved by the world’s biggest
Americans still care about the future of our economy based on action from states, cities
planet”. and private companies.
Despite Biden’s exit from office, he said, US The WRI non-profit research group said The US’s new goal commits to a reduction of economy-wide greenhouse gas emissions by between 61 and 66 percent by 2035 from 2005 levels
officials were “confident in America’s ability while the 2035 target was “at the lower bound
to rally around this new climate goal”. of what science demands” to cut emissions it sets a north star for what the US should be their new climate targets for 2035. The UK’s The host nation for next year’s UN climate pared with 2019 levels. There are widespread
“While the United States federal govern- enough to limit global warming, it was near aiming for and could help guide the federal Labour government has been among those summit, Brazil has committed to reducing expectations that many countries will miss
ment under President Trump may put cli- the “upper bound of what is realistic if every government’s priorities once Trump leaves to lead the way, saying it would aim to cut its emissions by 59 to 67 percent by 2035 from the February deadline to submit their plans
mate action on the back burner, the work to available policy lever is pulled.” office in 2029,” said WRI’s acting US director emissions by at least 81 per cent by 2035 from 2005 levels, and previous UN summit host as governments around the world face polit-
contain climate change is going to continue “Even though the Trump administration Debbie Weyl. 1990 levels — though it has yet to submit full the United Arab Emirates set a target of a 47 ical challenges and economic constraints.
in the US with commitment and passion may not lift a finger to deliver on this plan, Few other countries have yet to set out details of how it will achieve this. percent reduction in emissions by 2035, com- — Financial Times
10 20-26 December 2024 2024 Executive Movers BusinessWeekly

Benjamin Nkosentya Kumalo appointed chairperson of Zimplow Holdings Limited Farai Sithole appointed executive director at Amalgamated Regional Trading Lucy Irungu appointed financial director at BAT Zimbabwe

Kenneth Gitonga appointed managing director at BAT Lawrence Nyazema appointed CEO CBZ Holdings Limited
Leon Wilhelm appointed chief executive officer of Ariston Holdings Limited

Tichaona Mabeza appointed chairperson of GB Holdings Limited Tineyi Chatiza appointed Group chief financial officer and executive director at
Taurai Chigidi appointed acting chief finance officer Mashonaland Holdings Limited Seed Co

Felistus Ndawi-Gurajena appointed acting managing director Seed Co Zimbabwe

Vimbayi Nyakudya appointed chief executive officer CAFCA Limited William Swan appointed zimplow acting chief executive officer

Kudakwashe Musundire appointed managing director at Mashonaland Holdings

Joseph Gunda appointed Group managing director of GB Holdings Limited Luxon Zembe appointed chairperson of CBZ Holdings Limited Limited
BusinessWeekly Lifestyle 20 — 26 December 2024 11

A study in the Scientific World Journal found that regular yoga practice improves cardiovascular health and supports blood pressure stability

F
Low blood pressure: Fffective
eeling dizzy or fainting on occa-
sion might seem harmless but these
could be early symptoms of low
blood pressure or hypotension.
While medication is often necessary for
managing this condition, incorporating

exercises to manage hypotension

the right exercises into your routine is an
accessible and effective way to boost your
cardiovascular health and regulate blood
pressure naturally.
Physical activity strengthens your heart,
enhances circulation, and helps maintain
a stable blood pressure level.
But before jumping into a new work- Best exercises for low blood
out regime, always consult your doctor,
especially if you have recurring low blood pressure
pressure. Here are five effective and accessible
What is low blood pressure? exercises you can include in your routine
to manage low blood pressure. Remember
According to Harvard Health, low blood to start slowly, listen to your body, and
pressure, medically known as hypotension, avoid overexertion.
occurs when the force of blood flowing Walking
through your arteries drops below the
normal range. Walking is a low-impact activity that
A healthy blood pressure reading typi- significantly benefits your heart and cir-
cally lies around 120/80 mmHg. culation. A study from the Iranian Journal
If your blood pressure consistently falls of Public Health found that brisk walking
below this range, it may be a sign of hypo- increases heart rate and improves blood
tension, which can lead to symptoms like flow, which can help raise blood pressure
dizziness, fainting, fatigue and even shock levels. Aim for at least 30 minutes of brisk
in severe cases. walking five days a week. This gentle yet
While some people naturally have effective exercise is easy to include in your
lower blood pressure without any negative daily routine and can improve overall car-
effects, chronic or sudden hypotension can diovascular health.
pose health risks. Lifestyle changes such as Weightlifting
exercise can play a crucial role in managing
and improving this condition. Lifting weights builds muscle strength,
How does exercise help with which enhances your metabolic rate and
improves circulation. A study published
low blood pressure? in the Journal of Applied Physiology also
Strengthens the heart: Exercise suggests that weightlifting supports heart
improves the efficiency of your heart’s health. Stronger muscles help stabilise your
pumping mechanism. A stronger heart posture and improve blood pressure reg-
can circulate blood more effectively, pre- ulation.
venting sudden drops in blood pressure. Yoga
Boosts blood volume: With consistent
exercise, your body produces more red Yoga combines movement, breathing, Exercise promotes better blood flow throughout the body, which can prevent
blood cells and blood plasma, increas- and mindfulness, making it an excellent Drink plenty of water before, during and after workouts
dizziness and fainting episodes associated with low blood pressure
ing blood volume. This helps maintain a choice for managing low blood pressure.
healthy blood pressure range. Poses like inversions (e.g., downward ity, and posture, all of which promote bet- Squats and lunges are dynamic exercises tial to approach it with caution, especially immediately and rest. Consult your doctor
Reduces Stress: Physical activity stimu- dog) and heart openers (e.g., cobra pose) ter blood circulation. Pilates strengthens that engage major muscle groups like the if you experience frequent symptoms of if symptoms persist.
lates the release of endorphins, your body’s increase blood flow to the brain and heart. your core muscles, improves posture and quadriceps, hamstrings and glutes. hypotension: Low blood pressure can be challenging
natural mood elevators. By reducing stress Additionally, yoga reduces stress and enhances alignment, all of which regulate These movements stimulate blood flow Hydrate: Dehydration can lower blood to manage, but incorporating regular exer-
and anxiety — both of which can exacer- anxiety, common triggers for low blood blood flow and oxygenation. and improve circulation. Squats also cre- pressure, so drink plenty of water before, cise into your lifestyle is a powerful way to
bate hypotension — exercise indirectly pressure. A study in the Scientific World The calming nature of pilates can also ate muscle tension that can help stabilise during and after workouts. support cardiovascular health and regulate
supports stable blood pressure levels. Journal found that regular yoga practice alleviate stress, further supporting blood blood pressure levels during and after the Avoid sudden movement: Rapid blood pressure naturally.
Improves circulation: Exercise pro- improves cardiovascular health and sup- pressure regulation. Beginners can start exercise. changes in posture, such as standing up However, always consult your healthcare
motes better blood flow throughout the ports blood pressure stability. with 15-20 minutes of pilates exercises, Tips for exercising safely with quickly, can cause dizziness. Move slowly provider before starting a new exercise
body, which can prevent dizziness and Pilates gradually increasing intensity. and deliberately during workouts. program, especially if you have chronic
fainting episodes associated with low low blood pressure Monitor symptoms: If you feel light- hypotension or other underlying health
Squats and lunges
blood pressure. Pilates focuses on core strength, flexibil- While exercise is beneficial, it’s essen- headed or faint during exercise, stop conditions. —IOL

Exploring 2024’s biggest travel trends:

From wellness to sustainability
T ravel trends come and go and some relaxation as essential components along with Sustainable travel: a greener
linger on. The impact of the pandemic adventure and discovery. outlook
forever changed the travel landscape From serene spa getaways to invigorating
with the travel industry working to recover yoga retreats, this trend has gained traction. With 69 percent of travellers actively seeking
pre-pandemic numbers. Activities such as hiking, kayaking and even sustainable travel options, eco-consciousness is
On the other hand, the easing of restrictions skiing are framed within the realm of wellness, set to shape the future of tourism. As the sector
saw an increase in revenge travel with travellers reminding travellers that true enjoyment is rebounds from the pandemic, awareness of
expressing the desire and appetite to explore found in the duality of feeling good and looking environmental concerns is sharpening.
again. good. Ultimately, wellness travel champions The popularity of slow travel and unique
The feeling of freedom and independence emotional well-being, making it a vital trend bleisure getaways showcase a more sustainable
drives wanderlust explorers to travel alone and, in 2024. methodology to explore our planet, with night
as a result, solo travel has remained popular and Slow travel: Embracing trains surging in demand.
increased yearly since 2009 making it a notable Countries like France are implementing
travel trend even today. mindfulness and authenticity measures to eliminate short domestic flights to
According to Horasis, 2024 marked a signifi- In a world that thrives on instant gratifica- decrease carbon emissions, setting an example
cant milestone for the global travel and tourism tion, the allure of slow travel becomes ever more for others to follow.
industry with international tourism being slated enticing. This mindful approach encourages Carbon labelling — detailing the ecological
to return to pre-pandemic levels, with estimates travellers to savour their experiences rather footprint of trips — is also becoming increas-
pointing to 2 percent growth above 2019 levels. than rushing through them. ingly common, aiding consumers in making
As we close out the year, here are some of Many tourists moved away from whirlwind informed decisions as they plan their travels.
the biggest travel trends of 2024. tours, preferring to linger at and savour the Experiential travel: immersing in
Intergenerational trips: Bridging places they visit and form deeper connections
with them. It was a shift from seeing everything authentic culture

Are you a man struggling

generations through travel to choosing fewer experiences that resonate Modern explorers are increasingly drawn
One of the most heart-warming trends more. This travel trend also provided an oppor- to experiential travel as a means of connecting
making waves is the rise of intergenerational, tunity for travellers to gain authentic travel more profoundly with their surroundings.
or skip-gen travel. This describes the rising experiences and genuine understanding of the This form of tourism emphasises actively
trend of grandparents holidaying with their world around them. This is also why this travel engaging with history, culture, and the local

with baldness?
grandchildren, usually to places that are of trend is known as mindful travel. environment, moving beyond passive sightsee-
sentimental value to them. Bleisure travel: The best ing. In the wake of the pandemic, shifting con-
With retirement offering newfound free- sumer behaviours reveal a profound shift from
dom, grandparents relish the opportunity to of both worlds material goods towards immersive experiences.

B
bond with younger family members, creating The concept of bleisure, where business The rise of experiential travel underscores a
cherished memories sans guilt while parents meets leisure, has gained substantial traction, desire for emotional connections, with adven- aldness affects millions of men round of treatments. personal.
can make child-free plans and children can particularly post-pandemic. turers seeking journeys that resonate deeply worldwide and is not just a cosmetic PRP uses the patient’s own growth factors “Hair is tied to how they perceive their
eat more ice-cream and go to bed a bit later. This trend allows professionals to seam- through activities that provoke thought, culture issue. from their blood to stimulate hair growth. masculinity, confidence, and even their
This niche travel trend also cemented itself, lessly blend work commitments with personal and adventure. Baldness, or androgenic alopecia, It has been clinically proven to promote identity. Men often don’t talk about it, but
allowing grandparents to spend quality time enjoyment, making the most of their [Link] In conclusion, as the tail end of the year can affect men as young as 20, but often significant improvements in hair density hair loss can have a big impact on their
with their grandchildren, enjoy educational 2017, bleisure travel has consistently grown, approaches, it is clear that the travel industry becomes most noticeable between the ages with minimal side effects. The treatment self-esteem. When they look in the mirror
experiences first-hand in history, culture, and culminating in a surge in 2023 as individuals is not merely bouncing back — it’s transform- of 40 and 60. uses no chemicals and leaves no surgical and see less hair, it can affect how they feel
the geography while sharing adventures. approach their post-Covid plans with new- ing. It stands at a transformative crossroads, There is a growing demand for discreet, scars. in social settings or even in professional
The most popular trips under this category found adventurousness. ripe with opportunities to explore a renewed non-invasive treatments with a short recov- One of the main benefits of PRP therapy environments“.
are action-packed safaris. This blend supports a healthier work-life sense of wanderlust. ery time. A new non-invasive treatment is its minimal maintenance. After an initial Men are often hesitant to seek help for
As modern travellers increasingly yearn for balance, enabling professionals to extend work With a defining shift towards wellness, sus- called Platelet-Rich Plasma (PRP) therapy series of three treatments, patients only baldness because they think it’ll be too
deeper experiences, wellness travel allows for trips and explore new destinations without sac- tainability and authenticity, 2025 promises to is now gaining popularity. It’s a natural, need to return for follow-up sessions every time-consuming or obvious. PRP is dis-
transformative encounters that leave lasting rificing productivity. By merging corporate be a year of rich exploration and unparalleled safe alternative to more invasive proce- six to eight months. creet, with most people not knowing that
impressions. Research indicates that a signifi- travel with recreational activities, employees adventure inviting globetrotters to forge last- dures, and it has shown up to a 45 percent Aesthetics doctor Dr Gideon Alerss men are undergoing treatment. - IOL
cant 37 percent of millennial tourists prioritise find happiness in exotic locations, benefiting ing memories, connect across generations and improvement in hair growth after the first says, “For many men, baldness is deeply Health
wellness-related activities, recognising rest and both themselves and their organisations. redefine personal enjoyment— IOL
12 20 — 26 December 2024 Motoring BUSINESSWEEKLY

Electric Mercedes
G-Class in
SA soon

The Mercedes G580 with EQ Technology will be available in early 2025

F OR the first time ever, the Mercedes The G580 with EQ Technology also has utes. Shielding the battery from rocks and
G-Class will be available with electric a three-speed intelligent off-road crawl other hazards typically encountered on
power, and it’s priced at the same function for intense off-roading, as well off-road trails is a comprehensive under-
level as the new G63 AMG hybrid model. as intelligent torque vectoring that mimics body protection system made from an
The new Mercedes-Benz G580 with the function of conventional differential ‘intelligent’ mix of materials, including
EQ Technology is set to hit local shores locks for those axle-twisting trails. carbon.
during the first quarter of 2025, with the The four e-motors collectively produce The Edition One, available at launch,
Launch Edition priced at R4 647 456. 432kW and 1,164Nm, trouncing the hybrid comes with the AMG Line and Night
That’s just R17,000 more than the updated G63’s outputs of 430kW and 850Nm. Package as standard, including 20-inch
G63 commands. Owing to its three-tonne kerb weight AMG 10-spoke alloy wheels in high-gloss
Mercedes will also offer a “standard” the battery-powered G-Wagon is 0.2 sec- black.
version of the G580 EV, which will pre- onds slower than its AMG sibling from The launch edition is available in five
sumably cost less, but pricing for this 0-100km/h, which comes up in a claimed colours: Obsidian Black Metallic, South
version has yet to be released. 4.7 seconds. Sea Blue Magno, Opalite White Magno,
Although it lacks the roaring V8 that Simulated powertrain sounds are avail- Opalite White Bright and Classic Grey
many G-Class fans have come to love, the able for owners who can stomach them, Solid, the latter four hues being from the
G580 EV does have some rather interesting including “G-Roar”, “aura” and a variety Manufaktur palette.
features. of “event” sounds. Spec-wise, the G580 Edition One is
Featuring an electric motor on each The G580 comes with a 116 kWh lith- equipped with a 12.3-inch (31.2cm) MBUX
wheel, the G580 boasts a “G-TURN” func- ium-ion battery that enables a claimed driver and media display, multi-function
tion that allows it to perform tank turns range of 473km between charges. steering wheel in Nappa leather, ambient
“almost on the spot”, even on loose sur- Its 200kW charging capability allows lighting, “transparent bonnet” and a Bur-
faces. for a DC fast-charge in as little as 32 min- mester 3D surround sound system. — IOL Mercedes G580 interior

Honda, Nissan to start talks on Volkswagen bets on

US startup to save
possible merger, Nikkei says its EV strategy’
H G
ONDA Motor and Nissan Motor any updates at an appropriate time,” well shy of the 5,2 million that Toyota South Korea’s Hyundai Motor.
are preparing to start negotia- Honda said in its statement. sold on its own. Unwinding Renault alliance ERMAN auto giant Volkswagen, and byzantine corporate structure, is a
tions on a possible merger, which American depositary receipts of Honda What Bloomberg Intelligence facing tough competition from particularly difficult task, said Andreas
ultimately could be expanded to include and Nissan shares climbed on the report. Nissan has partially unwound its com- tech-savvy US and Chinese rivals, Nienhaus of consulting firm Oliver
Mitsubishi Motors Corp, Japan’s Nikkei Nissan ADRs rose 11 percent and Hon- Says plex 25-year strategic partnership with has partnered with a Californian electric Wyman.
reported Tuesday. da’s gained 0,9 percent in late New York Should the companies combine along Renault, a fixation of former Chair Carlos vehicle maker to build software and save The “inertia” of such groups holds back
Such a deal would create an automotive trading. with Mitsubishi Motors, as reported by Ghosn. its EV strategy. innovation, Nienhaus said.
rival to Toyota Motor Corp that would Taking on Tesla Nikkei, it would create a 6,7 million-unit Rivalries and mutual suspicion Europe’s biggest carmaker, which is bat- Oliver Blume, who took over as
effectively consolidate the Japanese auto group, bigger than General Motors but mounted over the years and came to a tling falling profits and a wave of labour Volkswagen CEO in 2022, put an end to
industry into two camps. The two major Japanese carmakers plan behind Hyundai, and raise further ques- head when Ghosn openly contemplated strikes at home, last month sealed a part- the “revolution” from within.
It would also provide Honda and Nis- to sign a memorandum of understanding tions for the group’s strategy with Renault. a merger, contributing to his downfall. nership with Irvine-based outfit Rivian. But the new VW chief is in a hurry to
san with more resources to compete with to discuss shared equity stakes in a new Honda’s valuation stood at 6,8 trillion The former chairman and CEO, who Together they plan to build the oper- change things all the same, with the car-
larger peers after downsizing long-held holding company under which the com- yen (US$44,4 billion) as of the close of has filed a suit against his former com- ating system for VW’s battery-powered maker losing market share to new entrants
global partnerships with other carmak- bined company would operate, the Nikkei trading in Tokyo on Tuesday, well above pany for ousting him in 2018, warned of a cars from 2026 onwards — an endeavour at home and abroad — most critically in
ers: France’s Renault SA for Nissan and said, without citing sources. Nissan’s 1,3 trillion yen market capital- “disguised takeover” of Nissan by Honda which has until now sapped the German China.
General Motors Co. for Honda. The merger would help the manufac- isation. But even their combined value in an August interview with Automotive firm’s finances. ‘‘Clearer than ever’’
The move toward a merger would fol- turers compete against rivals in electric is dwarfed by Toyota’s 42,2 trillion yen. News. Nissan also has stepped up restruc- The tie-up between the mammoth
low a decision by the two companies ear- vehicles such as Tesla Inc. and Chinese Honda has long struggled to keep turing efforts to cope with stalled revenue VW group and the West Coast start-up Volkswagen is being rattled by arguably
lier this year to work together on electric automakers, it said. up with bigger capitalised rivals when growth and lower profits. founded in 2009 is a “high risk” move the biggest crisis in its 87-year history.
vehicle batteries and software. It also puts them in a better position to it comes to investments in new tech- It faces pressure from an activist share- for Volkswagen, said from the Center Management went public this year with
At that time, Honda Chief Executive compete at home and abroad with Toyota, nologies. It recently has shifted gears to holder and a daunting debt load that has Automotive Research (CAR). plans to shut factories in Germany,
Officer Toshihiro Mibe floated the pos- the world’s largest carmaker. boost hybrid gas-electric vehicles even as led to speculation in credit markets about But it reflects changing a drastic and unprecedented
sibility of a capital tie-up with Nissan. Toyota has taken stakes in Subaru it spends billions of dollars on all-electric its investment grade rating. times, when increasingly step.
While Honda and Nissan stopped short Corp, Suzuki Motor Corp and Mazda production. The reported merger talks come after complex intangible The threatened
of confirming Tuesday’s report, both auto- Motor Corp, creating a powerhouse of Honda’s arms-length partnership with the Financial Times said last month that components, from plant closures
makers issued statements that reiterated brands backed by its top-notch credit GM has been weakened bit by bit, most Nissan was looking for an anchor investor heads-up displays triggered a wave
their previous pledges for further future rating. Honda, Nissan and Mitsubishi recently earlier this month when their to replace part of Renault’s equity holding to assisted-driv- of strikes with
cooperation. combined sold about 4 million vehicles self-driving car partnership ended. Mean- and that it hadn’t ruled out having Honda ing features, unions prom-
“We will inform our stakeholders of globally in the first six months of the year, while, GM has strengthened its ties with buy some of its shares. — Bloomberg have t a ken ising “bitter”
on g re ater resistance to
importance cuts.
than classic As for
hardware. Cariad,
Competi- the soft-
tors such as ware sub-
Elon Musk’s sidiary has
Tesla and Chi- already cut
nese EV-makers 30 percent of
have built much of administrative
their success on the staff this year with
computing systems and the aim of slashing
digital gizmos built into development costs by
their cars. 20 percent.
Legacy manufacturers have been The unit will continue to have
forced to choose: outsource the software an “important role”, according to Blume,
development, as Swedish carmaker Volvo looking after the tech updates in many of
chose to do, or hire engineers to build their the group’s models.
own systems from the ground up. Around 300 of its employees in China
Working with more established compa- will continue to develop a bespoke soft-
nies like Google parent Alphabet “takes ware system with local partner XPeng.
the risk out” of the software development Another 150 will join the joint venture
that has become a key part of the auto with Rivian, a Cariad spokesperson told
business, Dudenhoeffer told AFP. AFP.
‘‘Inertia’’ vs innovation There they will be managed by Riv-
ian’s software chief Wassym Bensaid,
The latter strategy was the one Volkswa- who is tasked with making Volkswagen’s
gen initially picked, when in 2020 it systems lighter, faster and more compet-
founded its software unit Cariad, a sub- itive.
sidiary which now employs some 5 500 While Rivian is much smaller than VW
people in Europe. — the US group’s production figures are in
But its troubles became a burden for the the tens of thousands, not the millions — it
Wolfsburg-based manufacturer. Devel- is less encumbered by bureaucracy than
opment delays cost former CEO Herbert its German business partner.
Diess his job and the group tens of billions Whether the two together can man-
of euros, said Dudenhoeffer. age to turn things around in time to save
Diess erroneously thought he could turn Volkswagen’s electric strategy remains to
“a classic car manufacturer into a tech be seen.
company”, Dudenhoeffer said. But already, said the Cariad spokesper-
Overhauling a big conglomerate like son, the group’s software strategy is now
Volkswagen, with its 10 different brands “clearer than ever”. — AFP
BusinessWeekly International 20 — 26 December 2024 13

Apple shares on a tear . . . despite sluggish growth, tariff risks

Global ad sales to top
US$1t in 2024, thanks
A pple Inc. has the slowest revenue
growth among Big Tech stocks and
is facing tariff-related risks going
into Donald Trump’s second term. None to digital growth
G
of that is holding back the stock.
The shares are up almost 10 percent in the lobal advertising revenue is Paris Olympics helped boost sales.
past month, making Apple one of the best projected to climb 9,5 percent “It’s the strongest growth in 25 years
performers in the so-called Magnificent 7 to US$1,04 trillion this year, top- if you exclude 2021, the post-Covid
after Tesla Inc. during the period. The recent ping that milestone for the first time, rebound year,” Letang said.
gains come despite a tepid response to the according to a new report from ad buyer Magna’s parent, Interpublic Group
latest iPhone model and a disappointing GroupM. of Cos, is being acquired by fellow ad
earnings report in late October. Investors The results are largely driven by agency Omnicom Group Inc in a deal
seem remarkably calm about these head- online advertising, including sites such announced on Monday.
winds, with the CBOE Apple VIX — which as Alphabet’s Google, Meta Platforms and The emergence of ad-supported tiers
tracks estimated future volatility — recently [Link], according to Kate Scott- for streaming services such as Netflix Inc
touching its lowest in nearly a year. Dawkins, global president of business and Comcast Corp’s Peacock is “great
“It is definitely a head scratcher that the intelligence at GroupM, who presented news” for the advertising industry,
stock is doing so well with China being in the results Monday at the UBS Global Letang said.
the state it’s in, and with the geopolitical Media and Communications Conference Comcast’s showing of the Olympics
face-off we’re entering,” said Andrew Choi, in New York. on broadcast TV, cable and Peacock had
portfolio manager at Parnassus Investments. “You have Google, Meta and Amazon’s “great results,” Letang said, and prompted
“It’s surprising the stock hasn’t been more share of total global ad revenue now at Magna to raise its forecast for the Los
volatile given these are existential issues 41 percent,” she said. Angeles Summer Olympics in 2028.
involving a material part of its business.” The 2024 estimate doesn’t include “It was not obvious that people would
The severity and timing of tariffs under political advertising in the US, which be so tolerant to seeing advertising
President-elect Trump remains unclear, but surged this year due to the presidential because after all, a lot of people didn’t
restrictions are expected to particularly tar- tations pushed back to the iPhone 17 now,” others’ spending, as major AI platforms vie said. election. GroupM forecasts 7,7 percent see many ads for a few years because they
get China, where the majority of Apple’s said Richard Clode, a portfolio manager for to be incorporated into Apple’s ecosystem. “Really, what is going to drive the stock growth industrywide in 2025. shifted to streaming,” he said.
devices are made. Janus Henderson Investors’ Global Technol- “Apple is going to be how AI is brought to higher from here?” Vincent Letang, executive vice pres- “Now, because the bill starts to add
While there is optimism that chief execu- ogy Leaders Fund. millions of consumers,” Parnassus Invest- The shares trade at nearly 33 times for- ident for global marketing intelligence up with all the streaming apps people
tive officer Tim Cook will manage this risk, “The market, having skewed too bearish ments’ Choi said. ward earnings, more than 50 percent above at Magna, a market researcher, told con- get, they can save a few bucks by seeing
as he did during Trump’s first term, Jefferies earlier this year, is probably a bit too opti- “It is so advantaged by owning the choke- their 10-year average. In a sign of how the ference attendees that events such as the some ads.” — Bloomberg
analysts calculated that a worst-case sce- mistic here.” point between AI and the consumer.” multiple is causing some to sour, Warren
nario could add US$256 of cost per iPhone. Some Apple investors don’t seem fazed. The company also offers significant qual- Buffett’s Berkshire Hathaway Inc. has been
Any extra tariff-related costs would They’re betting that Apple will ultimately ity characteristics, including massive free slashing its stake in Apple, as have hedge

Coffee crunch sends

come at a bad time for Apple, which has come out as a winner from AI and that Cook cash flow and steady buybacks, according funds.
seen lukewarm demand for its artificial will again manage to dodge most of the tar- to Greg Halter, director of research for the Meanwhile, fewer than two-thirds of ana-
intelligence-powered iPhone, dashing iffs imposed on China. They also like the Carnegie Investment Counsel. lysts tracked by Bloomberg recommend
hopes that the new models would lead to stock’s defensive traits. He counts Apple as his largest position, buying the stock, making it significantly

Arabica to record
a long-awaited re-acceleration of growth. The company isn’t dedicating as much in though said he has been trimming it given less popular than other megacaps.
Revenue growth has been negative in five capital expenditures toward AI, especially concerns over its valuation and growth. He’s And while only three of 60 analysts
of the company’s past eight quarters. While in comparison with Microsoft Corp., Meta also sceptical on AI iPhone demand. recommend selling, the average price tar-
it’s expected to pick up next year, the pace is Platforms Inc., Alphabet Inc., and Ama- “It is expensive, and I don’t see how get near US$243 suggests that Wall Street

C
seen below that of other megacaps, accord- [Link] Inc., which are dropping tens you can argue that it isn’t, unless you really doesn’t see the stock, which was trading
ing to estimates compiled by Bloomberg. of billions of dollars building out their AI believe a supercycle in AI iPhones is going modestly lower at US$246,38 on Tuesday, offee hit a record high in New and scrapped discounts to protect their
“The hoped-for iPhone 16 replacement infrastructure. to really bump up revenue and earnings going anywhere over the next 12 months. York, on mounting worries over a margins, and have warned there may be
cycle boost has not materialised, with expec- Instead, Apple is expected to benefit from growth over the coming years,” Halter — Bloomberg global supply crunch that have made more to come.
it one of this year’s hottest commodities. Arabica futures were up 3,3 percent at
Futures for the arabica variety that’s US$3,411 a pound in New York. Prices sur-

Dubai’s mega tech IPO solidifies US sees small

favoured in specialty brews have surged passed the previous all-time high set in
80 percent this year amid crop setbacks in 1977, when the market was rattled by Bra-
key growers, threatening to further pinch zil’s devastating frost of 1975 that impacted
consumers’ pockets. They rose as much as future crops.

turnaround that began in 2021 global oil

3,5 percent on Tuesday, touching the highest Record coffee prices are in contrast to
in data going back to 1972 and eclipsing broader wholesale food costs, which are
a peak set that decade when a disastrous well below an all-time high set in early 2022

deficit in 2025
so-called Black Frost decimated Brazilian in the wake of Russia’s invasion of Ukraine.

G
trees. Fears have now grown about future Still, so-called soft commodities account
erman food delivery giant Delivery supplies in top grower Brazil after a severe for some of the year’s best-performing raw
Hero SE’s Middle Eastern unit is set drought earlier this year. That’s in addition materials.

T
to start trading in Dubai next week, he US reversed its forecast for a to worries about output in Vietnam — the Cocoa has soared — hitting a record in
solidifying a years-long turnaround for the crude glut next year and is now largest producer of the cheaper robusta April in New York — after poor harvests in
city’s bourse. calling for a small oil-market defi- bean — after its key coffee belt suffered West Africa fuelled a huge global shortage
Talabat’s US$2 billion initial public offering, cit. from dryness during the growing period and rattled the market. Orange juice futures
the largest in the Middle East this year and the Global oil consumption should exceed and heavy rains arrived at the start of har- are also near the highest ever after droughts
biggest technology listing globally, could also output by 100 000 barrels a day in 2025, vest. and disease hit trees in top producer Brazil.
help kickstart a new chapter in the emirate’s according to a monthly report from the The rally risks further raising costs Output in Florida, the main juice-produc-
push for private listings. Energy Information Administration out for roasters and cafes, which may have ing state in the US, has also plummeted,
“Talabat is definitely not a one-off,” accord- Tuesday. That compares with a 300 000 to pass them on to consumers. Facing a with prices supported by hurricane damage
ing to Prasad Chari, group head of equity capi- barrel-a-day surplus forecast last month. squeeze, sellers have already raised prices as well. — Bloomberg
tal markets at Emirates NBD, which helped lead The forecast comes after Opec and its
the IPO. The bank is in “active discussions” allies deferred supply increases for three
with several issuers and sponsors globally who months, which the EIA expects will tighten
are considering Dubai’s bourse for a potential the market.
listing, Chari said. The US outlook, however, runs counter
Emirates NBD has been among the leading to that of the International Energy Agency,
advisers on new share sales in Dubai since the which last month predicted a 1 million
city embarked on an IPO push towards the barrel-a-day surplus in 2025 despite the
end of 2021. The government’s privatisation Opec+ decision. The IEA is due to update
programme has since raised more than $8 to go public. rebound — Dubai Holding is considering its forecast later this week.
billion and the new additions have helped Those moves coincided with a post-pan- bundling two property portfolios into real The downward revision points to “a
almost double the total market capitalisation demic boom in Dubai’s economy, which was estate investment trusts and listing them, market that got too bearish and has since
of stocks listed on the bourse. bolstered by the World Expo and looser travel Bloomberg News has reported. revised away worst-case-scenario out-
Combined with a similar flurry of deals in restrictions that helped revive the tourism Secondary sell-downs are also expected to comes,”said Jon Byrne, analyst at Strategas
neighbouring Abu Dhabi, the United Arab industry. An influx of expatriates from around follow the IPO wave, according to ENBD’s Chari, Securities.
Emirates as a whole is set to be the busiest the world has since boosted that recovery. adding further liquidity to the exchange. The The forecast reversal likely won’t have a
venue for listings in the broader Europe, All of that has meant a number of Dubai benchmark Dubai Financial Market General major impact, since markets have already
Middle East and Africa region for the third IPOs have seen stellar performances, led by Index has risen nearly 20 percent this year, far priced in an Opec+ production delay, he
year in a row, according to data compiled by firms tied to the city’s economy. Shares in outperforming peers in Abu Dhabi and Saudi added.
Bloomberg. For Dubai, that’s a reversal from toll operator Salik Co. and a public parking Arabia. But as stocks in the city continue to “We maintain our outlook for a range-
just a few short years ago. Back in 2021, new business have more than doubled from their trade near 2014 highs, that also means pricier bound market in the US$65 to US$75 range
share sales had all but dried up and a string of offer prices. valuations. Analysts have previously cautioned for WTI,” Byrne said, referring to West Texas
delistings further dented investor confidence. Talabat’s debut will be closely monitored by that the index could potentially be “more sen- Intermediate. Futures traded just above
Meantime, Abu Dhabi and Riyadh were well other firms, including the operator of classi- sitive to any setbacks than further good news.” US$68 a barrel on Tuesday in New York.
into their privatisation drives that drew in fieds website Dubizzle, the owner of shisha “A key risk for the Dubai economy is softer Investors are closely watching balances
billions of dollars and transformed the region brand Al Fakher and hotel operator FIVE global growth, which would reduce demand for next year, as weak demand and ris-
into a hotspot for IPOs. Holdings, who’re all considering share sales. for key external facing service sectors,” said ing production outside of Opec keep oil
Dubai’s fortunes started to change that It could also be seen as a gauge for gov- Monica Malik, chief economist at Abu Dhabi futures rangebound. Adding to bearish
November, when the deputy ruler unveiled ernment-owned enterprises that are now Commercial Bank. sentiment, Saudi Arabia cut oil prices for
plans to list 10 state-owned companies. At the preparing to list. “However, the investment plans should pro- buyers in Asia over the weekend, under-
same time, the stock exchange saw a sweeping A few years after a string of real estate del- vide support to the economy. Dubai’s fiscal scoring the market’s weakening outlook.
overhaul of its board and the city announced istings amid a sputtering property market, position has also seen a marked strengthen- — Bloomberg
a raft of initiatives to encourage private firms the government is looking to cash in on the ing.” — Moneyweb

Dealmakers await Trump after bouncing back with US$3t haul

M ergers and acquisitions sory firm LionTree LLC. is because he’s also a threat.” chip designer Synopsys Inc.’s agreement to that Elliott Investment Management had “Looking to 2025, we expect companies
bankers got back on their feet in “You’re also seeing some of the really In Europe, bankers say, companies may buy software developer Ansys Inc. built a US$5 billion-plus position in the across a diverse mix of sectors to look to
2024 and are now waiting to see large-cap conversations. Deals that were have to rethink operations to stay compet- “We would expect the regulatory envi- industrial giant. use large M&A to strengthen and reposi-
whether a second Donald Trump presi- not perceived to be actionable two months itive, including by looking at acquiring US ronment under a Trump administration “Activists, most of the time, need multi- tion their portfolios for their next phase of
dency will turbocharge or temper their ago are back on the radar again.” businesses to help mitigate the potential to be more favourable,” Tom Miles, global ple ways to win. Now we’re in an environ- growth,” said Mark McMaster, global head
nascent recovery. There is a strong belief among invest- impact of any tariffs imposed on the EU. co-head of M&A at Morgan Stanley, said ment where they have multiple potential of M&A at Lazard Inc.
Global transaction values have risen 16% ment bankers that Trump’s business agenda “The decisiveness of the election of Don- about the prospect of larger deals on the tools at their disposal,” said Pamela Codo- “Strategic players are likely to remain the
this year to hit $3.1 trillion, according to will fan the flames of the M&A recovery by ald Trump was a wake-up call for European horizon. Lotti, global chief operating officer of activ- dominant force for M&A activity.”
data compiled by Bloomberg, as central freeing up more cash for acquisitions via companies,” said Benoit d’Angelin, founder “That should allow companies that were ism and shareholder advisory at Goldman Alison Harding-Jones, global head of
banks have wrangled inflation and started corporate tax cuts and by lowering regu- and chief executive officer of London-based hesitant to evaluate larger, more transfor- Sachs Group Inc. M&A at Deutsche Bank AG, at Bloomberg’s
to cut interest rates. latory barriers to big deals across sectors. advisory firm d’Angelin & Co. mational mergers to dust off those files and “They can target operational improve- inaugural Women, Money and Power con-
Cheaper borrowing costs and strong “The table is pretty much set for a robust “Now they can’t say that Trump is a tem- help revive that part of the market.” ments, portfolio simplification, M&A, and ference in London on December 10
equity markets have given some companies 2025,” said Dan Grabos, who runs Americas porary phenomenon. Protectionism — as Elsewhere, companies have been tak- also return of capital.” To be sure, while deal volumes are up
the confidence and capital to pursue deals, M&A at Barclays Plc in New York. well as Trumpism — might be more struc- ing steps to cast aside units that have been There’s already the prospect of big M&A year-over-year and a busy end to the year
and others have been using the return of a “We’re past the US election and there’s tural than we initially thought.” weighing on, or distracting from, the per- on the horizon in 2025, with some unre- has come just in time for bonus season,
more normal post-pandemic environment underlying optimism that we’re going to be Road to recovery formance on core business lines. solved deal situations set to bleed into the 2024 will still end with one of the smallest
to simplify their businesses via asset sales in a pro-growth, less-regulation environ- There have been hundreds of billions of new year. deal hauls of the past decade, the Bloomb-
and spinoffs. ment. I think we’re going to continue to see Even amid the uncertainty leading up to dollars worth of spinoffs and asset sales this In Europe, Italian lender UniCredit erg-compiled data show. Against that back-
A flurry of multibillion-dollar M&A in transactions across the spectrum — from the US Presidential election in November, year, especially in Europe from the likes of SpA, under its deal-hungry CEO Andrea drop, some senior bankers are wary of over-
sectors like advertising, building mate- transformational deals of US$10 billion plus dealmakers had begun to find their feet health-care company Sanofi SA, consumer Orcel, continues to pursue a takeover of confidence and are reluctant to predict an
rials and banking in recent weeks, along and more midcap activity.” again after two consecutive years of falling group Unilever Plc and chemicals producer Germany’s Commerzbank AG; a deal could imminent return to the boom times.
with private equity firms reopening their But there is also concern that the incom- deal values. BASF SE. spark a long-awaited consolidation wave “The general mindset is to think of the
checkbooks to hunt for bargains in public ing president’s plans for tariffs could The biggest deal announced in 2024 Those companies that haven’t taken in European banking. In Asia, the future booming wave of dealmaking in 2021 as
markets in the US and Europe, is helping re-stoke US inflation and the need for rate arrived during a busy summer period, such steps could find themselves targets ownership of Seven & i Holdings Co. is where we need to go back to,” said Ali-
dealmakers generate some strong momen- hikes. And the risks and rewards extend when Mars Inc. agreed to buy snack maker of activist investors, which have started uncertain as the Japanese convenience store son Harding-Jones, global M&A head at
tum heading into the new year. beyond the US, according to bankers. Kellanova for nearly US$36 billion includ- to launch more campaigns with an M&A operator’s management looks to counter Deutsche Bank AG.
“You can feel the buzz around the office, “The election of Donald Trump is a ing debt. This was one of three transac- thesis after largely focusing on operational a ¥7,1 trillion (US$46,1 billion) offer from “The reality is that this is not what nor-
deal conversations have picked up and the threat and an opportunity for M&A activ- tions valued at more than US$30 billion improvements and leadership changes in Canada’s Alimentation Couche-Tard Inc. mal volumes look like. We’re optimistic
tone has changed. It’s been happening even ity,” Matthieu Pigasse, Paris-based partner to be struck this year, following Capital recent years. Honeywell International Inc. And in the US, iconic names like chipmaker as the general environment is improving,
in the last 10 days,” said Ehren Stenzler, at Centerview Partners LLC. One Financial Corp.’s proposed takeover is now considering a potential breakup after Intel Corp. and chocolate maker Hershey but getting deals done remains hard.” —
co-founder and managing partner of advi- “The very reason why he’s an opportunity of rival Discover Financial Services and Bloomberg News reported in November Co. have drawn takeover interest. Bloomberg
14 20 — 26 December 2024 Regional BusinessWeekly

Why is the cost of forex so high in SA?

T he cost of sending R1 million to chase up transactions.
the US can come to about R20 500 This is in contrast to the forex call cen-
via the bank, which seems a hefty tres operated by the banks.
price to pay considering that this is all done “We made it our signature that we offer
electronically. a personalised forex service so that none of
So why is the cost of our clients have to deal with an impersonal
call centre or be pushed from pillar to post,”
forex so high in SA? adds Scherzer.
Some of the costs are visible — such “Our priority is stripping away the lack
as the SWIFT fee, which ranges between of human interaction that our customers
R500 and R1 000 regardless of the size of tell us they experience with the banks.
the transaction. More importantly, our account managers
The real pain is in the hidden spread know our clients personally and under-
charged by the banks. The graphic below stand their unique requirements. That
explains what’s going on. It’s easy to see makes a huge difference.”
how banks are able to generate more than Complimentary AIT approvals
R15 billion a year in forex fees for taking
on little or no risk. Future Forex assists clients sending over
Should you want to move R1 million R1 million abroad by providing — at no
abroad, your first port of call would likely charge — ‘‘Approval of International Trans-
be a Google search for the current USD/ fer’’ (AIT ) applications from the South
ZAR exchange rate. African Reserve Bank.
Let’s say the rate comes back as R18 to Future Forex aims to be an all-in-one
$1, but when you enquire with your bank solution for both personal and business
you get a rate of R18,36. forex requirements.
That’s a spread of R0,36c for every dollar “Managing the paperwork for buying
purchased, which leaves plenty fat on the and selling forex can be complex,” explains
table for the banks. Scherzer.
“Most people have little or no idea how “For instance, when sending money
their forex charges are calculated,” says internationally, you need to select a Bal-
Harry Scherzer, CEO of Future Forex. bank-to-bank transfers between the EU and depends on the size of the transaction and to see how these costs were eating into SWIFT fee of R500-R1 000. ance of Payments (BoP) code to specify
In the example shown above, shipping the US, and explains why alternative forex other factors. their profit margins. Paying 1.5-2 percent “We are able to undercut this by taking the transaction’s purpose.
R1 million in US dollars to the US comes service providers such as Future Forex are What this means in practice is that you each time you ship money abroad through advantage of economies of scale, auto- ‘‘At Future Forex, we simplify the entire
in at a cost of more than 2 percent. Some opening up a new front in a market clearly could be paying 30-50 percent more than a bank can quickly impact your bottom mation and sound relationships with the process for our clients. We’re fully digital
corporate companies doing large volumes in need of competition. you should per US dollar, euro, pound and line,” adds Scherzer. banks,” says Scherzer. and will handle all the administrative work
of cross-border payments may be able to A cheaper alternative so on purchased than if you deal with the The same is true for individuals wanting A personalised forex service on your behalf.”
negotiate fees below this, but for most banks, and that can quickly add up when to invest offshore. Future Forex has also recently intro-
South Africans and SMEs, 2 percent (or Future Forex is about 50 percent cheaper the transactions sizes are large. The bottom line: Most forex service pro- Future Forex clients are assigned a ded- duced its mobile app, providing clients
more) is what they will likely pay. for individuals transacting forex, and about “Many of our customers doing high vol- viders typically overcharge on the spread, icated account manager who is readily with a convenient solution to manage their
This is orders of magnitude higher than 30% cheaper for businesses — though this umes of business forex transactions started sometimes as high as 2-3 percent plus a available to deal with any queries or to forex transactions. — Moneyweb

South Africans are being priced

out of holidaying in Cape Town Tesla-supplier closure shows rising
A growing segment of hotels in Cape
Town targeting foreign tourists are
R9 000 for the stay (R1 000 per person per
night), but the latter is squarely an ‘‘econ-
fallout of Mozambique unrest
M
becoming increasingly unafforda- omy’’ hotel, according to owner Southern
ble for South Africans. This is particularly Sun. The City Lodge at the V&A Water- ozambique’s economy is
true of the V&A Waterfront, which is pur- front, which is busy being refurbished, buckling as weeks of intensifying
suing a strategy of owning more and more sits slightly above this rate. election protests evolve into a revolt
of its hotels going forward. There are alternatives such as The Onyx that’s increasingly being felt beyond the bor-
Some hotels in the city, like the new lux- (Newmark) at R16 000 and The Rockefel- ders of the southern African nation.
ury hotel development at the waterfront’s ler at R14 000, which are both apartment The unrest prompted Tesla supplier Syrah
Quay 7 (behind the existing Table Bay hotels — a slightly different offering. Resources to declare force majeure, while
Hotel, towards the helistop) are explicitly And of course Airbnb is an option, hitting output at sub-Saharan Africa’s big-
for the very wealthy. More One&Only than but these short-term rentals are a very gest aluminium smelter and disrupting South
Westin, for example. contentious issue given their impact on Africa’s chrome exports. It’s causing domes-
In December and January in particular, housing prices (purchase or rental) for tic economic wreckage, with Standard Bank
Cape Town is not wallet-friendly to South local residents. Group predicting the first quarterly economic
Africans. Airbnb ‘a small factor in high contraction since 2020.
Flights are hellishly expensive. Try There is no sign of tensions cooling, with
R7 000 return per person for a ‘‘last min- Cape Town rentals’ fears of further delays to a US$20 billion nat-
ute’’ five-night six-day trip after Christmas Plus, there are indications that the ural gas export plan led by TotalEnergies SE.
Day, returning after New Year’s Day. Soon, Department of Tourism will start cracking Venâncio Mondlane, the charismatic oppo-
that’ll be R8 000. down on short-term rentals, which will sition leader commanding the demonstra-
And then the number of available seats likely further constrain supply. A move tions from self-exile via livestream, plans
will dry up completely. such as this is not any different to ones to announce a fresh round of protests on
A midsize rental car such as a Toyota implemented by other cities (Barcelona) December 16.
Corolla Cross will set you back a further and countries globally. Scores of people have been killed by
R13 000. The harsh reality security forces. What started out as a protest election in court, with the Constitutional the country’s top corporate taxpayers. age is less than 18, have little to lose. About
That’s nearly R30 000 for a couple, just against claims of rigging in the October 9 Council yet to verify the results. Observers Fiscal receipts have fallen and outgoing 500 000 school leavers each year compete for
to get there and to be able to get around. With accommodation, that five-night ballot has exploded into an outcry among have pointed to ballot-box stuffing and tally President Filipe Nyusi has warned civil service scarce jobs. One in three remain out of work
(Although hiring a car in Cape Town stay for two in January starts at R40 000 marginalised youth. The revolt is the latest manipulation. Ruling party Frelimo did not salaries may be delayed. in one of the world’s most unequal societies.
over this period makes very little sense, and stretches upwards to R55 000 — or instance of a resurgence of unrest in sub-Sa- rig the vote, said spokesman Edmundo Gal- Bonds drop Climate change adds layers of difficulty,
especially if you’re staying somewhere cen- higher. The numbers just don’t make sense. haran Africa, where gaping inequality and iza Matos Jr, noting the council’s judges are with frequent droughts and severe storms
trally, given the near-constant congestion). Don’t even bother trying to visit Cape perceptions of exclusion have provided fer- considering the complaints. The nation’s dollar bonds have dropped to hurting growth.
Then there’s accommodation Town at the start of February, when it’s tile ground this year in Kenya, Nigeria and “We have social problems, problems that a 12-month low. The government’s reliance Tropical cyclone Chido is set to strike the
Mining Indaba. elsewhere. we need to solve,” he said by phone, adding on local debt markets to finance the deficit nation’s north coast at the weekend, threaten-
... Rates for The Table Bay Hotel (which Mondlane has called for all mines in Mondlane should return to Mozambique to is becoming more challenging. A December ing a trail of destruction in a region already
Moneyweb costed a five-night stay will only close for its refurbishment after Mozambique to be closed until January 15, join talks and end the unrest. 10 bond auction raised less than one-third of suffering from an Islamic State-linked insur-
(including a weekend) in late January for the Indaba), as an example, are already when he said he’d be inaugurated as president. “We cannot destroy our country.” what was offered. Standard Bank’s local unit gency. Anger over official corruption and
two adults. This period was deliberately 33 percent higher than the January dates. His message that the nation’s natural Force Majeure slashed its 2024 economic growth forecast vote rigging adds to the mix that Mondlane
selected as it is after schools return for Soon, there won’t be a bed to be found resources don’t benefit locals resonates among to 2,5 percent, less than half of 2023’s growth has called “a perfect combination for a rev-
2025 but is still in season. in any decent hotel in the city bowl. Even Mozambicans, three in four of whom live on Syrah, which mines graphite in Mozam- rate. The main business lobby sees economic olution”.
Within the Waterfront precinct, the as it continues to add beds, Cape Town less than US$2,15 per day. bique to process in the US, on Thursday losses approaching US$400 million. The presidential candidate, who placed
prices for a Tuesday-to-Sunday stay does not have an adequate number of “The deeper socio-economic factors and declared force majeure at its Balama oper- Logistical constraints are adding to price second and fled the country to an unknown
stretch from R280 000 at the One&Only hotels for a city its size. the election rigging are intertwined as causes ation, blaming intensifying unrest. pressures, said Eduardo Sengo, director at the location, likened the unrest to war. Torched
and R190 000 at The Silo Hotel, down to Then there’s the joke — is it a joke? — of the current unrest,” Roberto Tibana, who Syrah has been sending battery ingredi- Confederation of Economic Associations. police stations and ruling party offices paint
the roughly R25 000 level at the Break- that many Cape Town establishments have helped Mondlane write his election manifesto, ents to Tesla for testing ahead of commercial Cries of “this country is ours! Save Mozam- a picture of conflict.
water Lodge (a Protea/Marriott property) a different, pricier menu for tourist season. said by phone. sales starting next year. Other mines have also bique!” have echoed across the nation since “With urban warfare, normally you don’t
and AC Hotel by Marriott, on the harbour The going rate for 500ml draughts in “People voted for a manifesto and some- faced invasions and blockages. protests started October 21. need a long time,” he said in a phone interview
side nearest the Cape Town International Bree Street nowadays is R65 (you may get one they believe will change their circum- Mozambique’s biggest brewery paused pro- Police have met them with bullets and last month.
Convention Centre (CTICC). away with R60). Good luck finding a glass stances, and now they believe their vote is duction on December 11 after people raided teargas, with at least 110 deaths, monitoring “You can resolve everything in one year, or
The R280 000 for five days sounds of decent wine for less than that. Cocktails being ignored.” the facility, according to a statement from group Platform Decide said. one month or two months — it’s enough.”
insane (as does the R190 000), but that are easily R150-and-up. Starters also tend Opposition parties have challenged the Anheuser-Busch InBev SA’s local unit, among Many Mozambicans, where the median — Bloomberg
works out to R28 000 per night per person, to hover in that R150 range, with mains
which is about $1 500. mostly starting at R300.
Pricey, but relatively comparative to
similar hotels globally. At The Silo Hotel
the price per night is around $1 000.
The new Marble Cape Town, which has
just opened in the Union Square building
at the Waterfront, is certainly not aimed
Congo sues Apple alleging
The Cape Grace, managed by Fairmont,
is around half this rate per night ($500).
Then there is a cluster of hotels — The
primarily at Capetonians.
Given its stunning location, this res-
taurant makes its Rosebank sibling look
‘pillaged’ minerals in products
T
Table Bay Hotel, the Queen Victoria Hotel, plain by comparison.
and the Radisson RED — where the aver- It would’ve required tens of millions he Democratic Republic of Congo referred Bloomberg to a March filing in
age rate per night works out to $250 or of rands in investment, and the business filed lawsuits against Apple in France which it said that all of the smelters and
slightly lower. case will require certain standards (food, and Belgium. In them, it accuses the refiners in its supply chain had participated
Following its R1 billion refurbishment drinks, staff and ambience), which neces- company of using minerals “pillaged” from in an audit, and suppliers who refused or
and conversion to an InterContinental sitate certain margins. the central African nation in its products. failed were removed. The company said it
property, which will be managed by Sun It will almost certainly be fully booked Congo’s lawyers have initiated criminal was reasonably confident that none of its
International, the V&A sees scope to for months to come. complaints against the US tech giant’s sub- tin, tungsten or tantalum suppliers financed
achieve double the rate currently being The ‘new’ Cape Town sidiaries in the two European countries or otherwise benefited armed groups active
achieved by The Table Bay Hotel. “over the contamination of Apple’s supply in the region.
Even as one moves into the city bowl, The reality is that Cape Town is com- chain” with “blood minerals,” according to Congo’s international legal team is tasked
rates remain steep. peting with international destinations like a statement on Tuesday from Amsterdam & with pursuing individuals and companies
The Mount Nelson, an iconic property, Dubai, Berlin, London, Madrid, New York, Partners LLP, a law firm working for Congo’s involved in the “extraction, supply and
competes in the same kind of segment Rio de Janeiro, Paris, Istanbul, Tokyo and government. commercialisation of natural resources”
as The Silo Hotel and The Cape Grace Venice. Eastern Congo, which is rich in tin, that have driven “a cycle of violence and
(around R15 000 a night per person). Pricing — and offerings — need to be tungsten and tantalum, minerals widely conflict by financing militias and terrorist
The Westin (adjacent to the CTICC), the seen in the context of that. This means that used in electronics including the iPhone, groups”, according to the statement.
Taj Hotel and the Hyatt Regency (formerly it is, and will all but certainly remain, unaf- has been wracked by conflicts involving its Government spokesman Patrick Muyaya
the Hilton) are all in the same bracket fordable for most South Africans, even armed forces and dozens of militant groups confirmed the country had filed the lawsuit,
as The Table Bay Hotel, Queen Victoria those who are relatively affluent. for about three decades. The administra- without providing more details.
Hotel and Radisson RED (R3 000 per night This is a classic supply and demand tion of President Felix Tshisekedi accuses This is the first case Congo has filed as
per person). story. It’s common chatter around the neighbouring Rwanda of fuelling the vio- part of a strategy to pressure end users who
After that it does get cheaper, with braai at this time of year that it is cheaper lence and providing a conduit for traders to may be using products reliant on minerals
the Southern Sun Waterfront at around to holiday in Mauritius over the festive smuggle minerals and gold out of Congo. that were smuggled or have contributed to
R24 000 for the stay (R2 500 per per- season than in Cape Town. If you booked Rwanda has long denied the allegations. conflict. According to a spokesperson for
son per night), Sun Square City Bowl at a few months ago, sure. The complaints allege that Apple uses Amsterdam & Partners, the French and
R18 000, Southern Sun Cape Town (the A lot of destinations look substantially minerals that have been “laundered through Belgium judicial systems are well suited
old Cape Sun) at R16 000 and The Pullman more attractive (and kinder on one’s wal- international supply chains”. They also claim for these kinds of legal actions.
(previously Radisson Blu Hotel and Resi- let) than Cape Town over December. that the firm has also deployed “deceptive Last year, Congo and Rwanda produced
dence, converted from offices) at roughly That’s why the whole Garden Route is commercial practices to assure consumers more than 60 percent of the tantalum used
that level too. already bursting at the seams, and it’s not that the tech giant’s supply chains are clean.” in the world’s portable electronics, accord-
Hotel Sky and Southern Sun Stay Easy even the middle of the month. — Mon- Apple didn’t immediately respond to ing to the US Geological Survey. — Mon-
City Bowl are both at a very modest eyweb a request for comment, but previously eyweb
BusinessWeekly 20 — 26 December 2024 15

F ATP Next Gen Finals 2024: Everything

or the second straight year, the world’s
best eight tennis players aged 21 and
under will descend on Jeddah for the
ATP Next Gen Finals 2024.
The tournament, taking place between

to know as tennis starlets vie for title

December 18 and 22, will showcase some
of the hottest prospects in the sport at King
Abdullah Sports City.
Here, Al Arabiya English explores
everything you need to know about the ATP
Next Gen Finals 2024.
What is the Next Gen Finals?
official professional ten- He also featured in nine but knows about pressure tournaments having
The ATP Next Gen Finals is an annual nis tournament to take elite ATP Tour Masters played in two Junior Grand Slam finals in
tournament showcasing the brightest young place in the Kingdom, 1000 tournaments, which 2023 - the Australian Open and the US Open.
talents in men’s tennis. demonstrating a sig- included a first career In 2022 he made his US Open main draw
Launched in 2017, the event is exclusively for nificant shift in Saudi meeting with Serbian debut as a wildcard at the age of just 16, making
players aged 21 and under who rank among interest in the sport. legend Novok Djokovic him the youngest American player to appear
the top-performing competitors on the ATP Through multi-year — to whom he narrowly at Flushing Meadows in almost two decades.
Tour. hosting and sponsor- lost 7-6-7-6 at the Shang- Tien has won three Challenger Tour events
It serves as a platform to highlight future ship deals like the nam- hai Open in October. in successive months this year between August
stars of the sport, with past winners including ing rights of the PIF ATP Talented Czech teen- and October — helping him earn his spot
Stefanos Tsitsipas and, most notably, current World Rankings, Saudi ager Jakub Menšík uses in Jeddah.
World No. 1 Jannik Sinner and four-time Arabia is having an every inch of his 6ft 4in Luca Van Assche faces another reunion
Grand Slam winner Carlos Alcaraz, who won increasing influence on frame to dominate oppo- with fellow Frenchman Fils, who he beat in the
the tournament in 2019 and 2021 respectively. the tennis landscape. nents and he claimed 2021 Junior French Open final at Roland Gar-
Another former World No.1, Daniil Med- As well as the Next big wins in 2024 against ros but lost to in the semi-finals of last year’s
vedev, also competed in the Next Gen Finals Gen Finals, Saudi Ara- established stars like Denis Next Gen Finals. Although the two are singles
back in 2017. bia also hosted the WTA Shapovalov, Andy Murray rivals, they played together at Wimbledon in
Unlike traditional tournaments, the ATP Finals this year, with and Andrey Rublev. 2023 — beating Greek brothers Stefanos and
Next Gen Finals are known for their inno- Coco Gauff claiming the Victory over Rublev at Petros Tsitsipas in the first round.
vative format. Matches are played in a best- season-ending crown the 2024 Qatar ExxonMo- Born in Belgium, but raised in France,
of-five set structure, but with shorter sets that in a thrilling finale in bil Open saw him become Van Assche won consecutive matches at the
go to four games instead of six, adding a fast- Riyadh in November. the youngest competitor Australian Open this year, stunning 25th seed
paced dynamic. The Kingdom also to defeat a top-5 player Lorenzo Misetti in the second round before
Other experimental rules, such as no-ad welcomed an epic exhi- since Carlos Alcaraz in losing to former Next Gen finals champion
scoring, on-court coaching, and the use of bition tournament to its 2021. Menšík also made it Tsitsipas in Melbourne.
electronic line-calling without line judges, capital this year, the Six through to the third round Nishesh Basavareddy made it into the
make the event a testing ground for mod- Kings Slam, which was of the US Open for the sec- Next Gen finals draw courtesy of his second
ernising tennis. won by men’s World ond successive year and in Challenger Tour title of the season, with the
The tournament does not award ranking No. 1 Jannik Sinner and October reached his first American adding the Puerto Vallarta Open
points but offers a significant prize pool — featured stars like Carlos Masters quarter-final in trophy to the one he won in Tiburon, Cali-
US$2,050,000 in 2024 — and invaluable expe- Alcaraz, Novak Djok- For the second straight year, Shanghai. fornia, back in September.
rience against top-tier competition, laying ovic and Rafa Nadal, the world’s best eight tennis He is ranked No. 48 in Basavareddy, who won the Junior US Open
the foundation for exciting rivalries that may for whom it was one of players aged 21 and under the world and No. 3 for the Doubles crown with Ozan Baris in 2022, has
continue for many years. the final singles appear- will descend on Jeddah for ATP Next Gen Finals. enjoyed an impressive 2024 — recently reach-
Players earn their spots through year-round ances of his career before the ATP Next Gen Finals 2024. The son of former Chi- ing a career high ranking of No. 139.
performances, with the season-long ‘Race to retirement. nese national footballer The 19-year-old has been given a wildcard
Jeddah’ rankings determining the qualifiers. Elite events like the Shang Yi and ex-table ten- spot at the 2025 Australian Open for his Grand
Last year’s Next Gen Finals title was won Next Gen Finals are designed to encourage favourite to follow in the footsteps of Sinner, American Alex Michelsen broke into the nis world champion Wu Na, Shang Juncheng Slam debut.
by Serbian outsider Hamad Mededovic, who more Saudis to take up tennis and inspire Alcaraz and Tsitsipas, and take home the ATP top 50 for the first time last month to make has elite sport in his DNA. The eighth and final competitor in Jeddah
became the lowest-ranked champion in tour- youngsters to consider pursuing the sport Next Gen Finals crown. him the No. 2 seed in Jeddah. The former ITF Junior World No. 1 made is João Fonseca who, in 2023, became Brazil’s
nament history at world No. 110 when he beat professionally. Fils, who reached the Boys Singles final at After a disappointing debut at the Next Gen history in 2022 when he became the youngest first Junior World No. 1 as he hit the top of the
No. 1 seed Arthur Fils in the final. At a grassroots level, Saudi tennis has been the 2021 French Open, has quickly made a Finals in 2023, Michelsen comes into the 2024 Chinese player to ever win a Challenger Tour ITF Rankings.
Why is the Next Gen Finals rapidly expanding over the past few years name for himself on the ATP Tour and finished edition with significantly more experience trophy at the age of 17 and at the 2023 Austral- It was a year that saw him beat fellow 2024
under the leadership of Arij Mutabagani, runner-up last year in the Next Gen Finals. after a breakout year. ian Open became the youngest qualifier for Next Gen Finals participant Tien in the US
happening in Jeddah? with overall participation levels more than In 2024, Fils made it to the fourth round of The California-born player progressed to the tournament since Carlos Alcaraz. Open Boys Singles final and make his ATP
The 2023 ATP Next Gen Finals marked the tripling since 2015. Wimbledon and won two ATP 500 titles — the third round on his debut at the Australian Florida-based Shang has continued to Tour debut at the Rio Open.
first time the tournament was held in Jeddah, Who is playing in the beating No. 1 seed Alexander Zverev in the Open and also had maiden appearances at ascend since then, reaching a career-high He returned to his hometown tournament
with tennis becoming an important pillar in Hamburg Open final and compatriot Ugo the French Open and Wimbledon, before ranking of 47 in October 2024 and becom- again in 2024, reaching the quarter-finals and
Saudi Arabia’s emergence as a global hub for Next Gen Finals? Humbert to claim the Japan Open. making it to the second round of his home ing the No. 2 ranked Chinese men’s player. deciding to turn pro soon after — foregoing
sports and entertainment. The No. 1 seed is Frenchman Arthur Fils, A fast-rising star, he is one of the brightest Grand Slam at Flushing Meadows for a second The second of three Americans in the draw, the opportunity to play college tennis for the
It was a milestone event last year as the first whose world ranking of 20 makes him the prospects in French tennis. straight year. Learner Tien is a Next Gen Finals debutant University of Virginia. — [Link]

All Blacks: Two World Cup winners

added to New Zealand Rugby board
F ormer All Blacks Rugby World Cup Cup winner Mealamu, Caren Rangi, Cathe- board and I look forward to the work ahead,” will be held early in 2025 to appoint a ninth
winners David Kirk and Keven Meal- rine Savage, Doug Jones, Grant Jarrold, Greg said Kirk. and final NZR board member.
amu have been ratified as two of the Barclay and Julia Raue are the other members Rachel Taulelei, the chairperson of the NZR Davenport, who is the Otago Rugby Foot-
eight members on New Zealand Rugby’s who will take office as part of the NZR board Appointments and Remuneration panel said ball Union’s chairperson since 2019 and pre-
(NZR) new board. in 2025. she is delighted that eight of the nine board viously served on the NZR board since 2022,
Kirk, who was the All Blacks’ captain when All eight candidates were endorsed by the members ratified but admitted to being dis- said: “While naturally I’m disappointed by the
they won the inaugural Rugby World Cup in New Zealand’s 26 provincial unions and the appointed that a full compliment was not outcome, I remain committed to the organisa-
1987, is NZR’s new chairperson while Rowena New Zealand Maori Rugby Board and Kirk’s appointed. tion and future of New Zealand rugby.
Davenport is the only candidate who was not Kirk’s election means he will step down from “We are over the moon to have eight excep- “I joined the board with great optimism,
ratified. his position as New Zealand Rugby Players tional candidates ratified for appointment to and it’s that perspective I take forward.
The ratification of the new NZR board Association (NZRPA) president. the NZR board,” she said. “The appointments panel ran an incredibly
comes after a period of upheaval in New Zea- Meanwhile, fellow new board members “They are extremely capable, motivated and well-managed and robust process, and the
land in 2023 when the country’s provincial Jones (New Zealand Maori Rugby Board) ready to start a new chapter for the organisa- eight ratified directors are outstanding.
unions and stakeholders such as the Super and Jarrold (Crusaders) will also resign from tion and game. “I’m excited for what they will bring to
Rugby franchises and the NZRPA were involved those governance positions as a prerequisite “The process has been challenging, but NZR and have no doubt they will be able to
in an acrimonious saga over the governance for all NZR board members is that they have rewarding, and the result is testament to every- pick up the mantle quickly and with great
of NZR. to be independent. one’s commitment to move forward positively. effect.
Opposing factions Former All Blacks scrum-half Kirk cur- “Our only disappointment is that Rowena “As someone who has spent the past dec-
rently lives in Sydney but will attend all NZR Davenport’s appointment was not ratified. ade dedicated to inclusion and governance
settled their differences board meetings in New Zealand. He replaces Rowena has contributed an immense amount of rugby in New Zealand, I will continue to
However, the opposing factions agreed to Patsy Reddy, who confirmed last year that she to the board and to the game, and we felt her be involved with the game through the New
settle their differences last September which wouldn’t seek re-appointment. skills and experience complemented the rest Zealand Rugby Foundation board and as an The Showdown will be played for a hefty sum of cash.
allowed for a new board to be elected. “I am honoured and excited to be appointed of the board well.” avid supporter of both the community and
Apart from Kirk and 2011 and 2015 World to the board of NZR. We have an excellent The panel have confirmed that a process professional games.” — Planetrugby
The Showdown money
Spinner Ashwin retires from India duty breakdown: How much the
LIV-PGA Tour match pays out
I I
ndia off-spinner Ravichandran Ashwin second only “He was very came to me.
has retired from international cricket. to Sri Lanka sure about what he “I’ve enjoyed every bit of the journey with t has become en vogue in profes- And in the case of those who have made
The 38-year-old, the seventh-high- great Muttiah wanted to do and you Ash. Your skill and match-winning con- sional golf ’s recent history for players it into The Showdown, the business of golf
est wicket-taker in Test history, made the Muralitharan. the team has com- tributions to Indian cricket are second to none to espouse their belief that money is pays very well.
announcement after the drawn third Test Ashwin plete backing of his and you will always and always be remem- not at the centre of what makes golf great. In addition to a rumoured multimil-
against Australia in Brisbane. was the lead- thought process,” bered as a legend of Indian cricket. At least four of those golfers don the lion-dollar appearance fee paid out to each
Ashwin, who did not play in the game, was ing wick- Rohit said. “Wish you nothing but the best in your life fairways of Tuesday’s made-for-TV golf of the four competitors in Tuesday night’s
widely recognised as one of the greats of the et-taker in “He’s had so with your family and everything else that it match, The Showdown, pitting two of the event, the foursome will play for a hefty
modern game during a 14-year India career. India’s past many big moments unfolds for you. With massive respect and lots PGA Tour’s most well-loved stars (Rory prize: US$10 million.
He took 537 wickets at an average of 24 in three series with the Indian of love to you and your close ones. Thanks for McIlroy and Scottie Scheffler) against Of course, the money comes with a hook.
106 Tests - second only to Anil Kumble’s 619 against Eng- team and he’s been everything buddy.” two of LIV’s (Brooks Koepka and Bryson The purse will be dished in the currency
among India bowlers. He also scored six cen- land, includ- a big match-winner Australia captain Pat Cummins said Ash- DeChambeau). Nevermind that half of the of the evening’s sponsor, [Link].
turies and averaged 25.75 with the bat. ing 24 in the for us. He’s allowed win will “go down as one of the all-time greats”. field wrangled enormous sums to leave The winners will receive the equivalent
“This will be my last day as an Indian 4-1 home to make these deci- “He’s obviously been a fantastic player all their place of work for a new, morally of US$5 million in the crypto-based coin
cricketer in all formats in the international triumph this sions, and if it is around the world,” Cummins said. murky upstart. “CRO.”
level,” Ashwin said at a news conference at year. now, so be it.” “There aren’t that many finger spinners that Nevermind that the other half has hardly (Whether they choose to hold the line,
the Gabba. Captain ‘One of the all- have that kind of longevity. been the picture of pro golf ’s meritocracy. betting on a second crypto renaissance, or
“I do feel there’s a bit of punch left in me as Rohit Sharma “There’s a massive respect from our chang- These four golfers have all admitted at cashout in pursuit of the real thing remains
a cricketer, but I would like to showcase that said Ashwin time greats’ ing room for the career that he’s had.” points both recent and distant that they to be seen.)
in club level cricket.” considered Ashwin’s former India coach Gautam Gambhir, who played play golf for something bigger than money, While the money isn’t quite legacy-defin-
Ashwin took 156 wickets at 33.20 apiece in retiring before captain and current alongside Ashwin, wrote on X: “The privilege and considering their shared competi- ing for those in golf ’s uber-rich modern era
116 one-day internationals and 72 at an aver- the Australia team-mate Virat of seeing you grow from a young bowler to a tive resumes, we are inclined to believe (Scheffler won $62 million on the course in
age of 23.22 in 65 T20s. He was part of the tour but he Kohli said: “I’ve legend of modern cricket is something that them. 2024 alone), it’s still a hefty sum.
squad that won the 2011 World Cup in India, convinced played with you for I wouldn’t trade for the world. I know that Thankfully, though, the business of pro- Good for four of golf ’s best for getting
although he played only two games. him to continue. 14 years and when you told me today you’re generations of bowlers to come will say that fessional golf pays the same for a weekend their piece of that, and good for the rest
He will be remembered largely for his Test Ashwin was left out of the team for the first retiring, it made me a bit emotional and the I became a bowler because of Ashwin.” — full of 65s whether you spend all day long of us for getting a Tuesday evening of golf
exploits - his tally of 37 five-wicket hauls is Test and took one wicket in the second. flashbacks of all those years playing together bbcsport reading John Wooden’s Pyramid of Success entertainment in the middle of December.
or your latest bank statement. — [Link]
16 20 — 26 December 2024 Last Word BusinessWeekly

Royalties
and efficient
way to tax
mining
BusinessWeekly
Last Word
M
ining companies and min- cally own half.
ers are continuing to grumble The royalty income in the meantime
about the royalties they have would be half the dividend income, or
to pay on the gross value of their output the profits, of the mines. Even right
during this time of falling global prices back then most miners could make
which are crimping their profit margins. even the richest mine a losing propo-
No taxpayer likes paying taxes so sition by manipulating accounts, giving
the problems facing miners need to be themselves and their friends high sala-
addressed very carefully, to see if the ries, and buying goods and services at
Editorial Advertising
BusinessWeekly Published by + 263 24 2795771 +263 24 2795771 (Harare)
royalty system needs to be adjusted
to cope with price cycles or whether
extraordinarily high prices from each
other. Basically the miners did their best
Zimbabwe Newspapers (1980) Ltd or +263 29 2888871 +263 29 2888871 (Bulawayo the fact that it is a percentage of gross to make sure there were no dividends
[Link] Circulation value is self-correcting with the royalty to share.
Herald House payment rising and falling in line with There was also reluctance to open
31 George Silundika Avenue @[Link] +263 24 2795771 (Harare)
global prices and growing or falling mines in the Rhodesias with this royalty
Harare, Zimbabwe @businessweeklyzim subscriptions@[Link] volumes. In advance of 50 percent of the shares.
Royalties are a fee charged by the The BSA company eventually backed
Copyright © Zimbabwe owner of the minerals and paid by those down and started giving options of
Weekly Business Zim
Newspapers (1980) Limited who mine the minerals. In some coun- other royalty systems, including a cut
tries a lot of the minerals are privately of the output.
owned, either by the owner of the land Even after Southern Rhodesia gained
or by some concern that acquired the internal self-government in 1923, and
ADVISORY mineral rights through some sort of at the same time took over the public
treaty separate from the land, or main- company lands as public crown or state
Editorial complaints can be sent to the Legal Services Department within 20 working days of the publication of the material. tained ownership of the mineral rights lands, the mineral rights remained with
Email address: complaints@[Link] when selling the land above.
or phone 0242 704 088 /0242 7082 98 the BSA company, a fact confirmed by
In these countries, such as the United British law officers when colonialists
Kingdom, the landowner can demand said they had obtained the minerals with

2024: Dancing through

royalties from anyone who he grants the land when they paid off the national
permission to mine, with the level of debt accumulated by the company.
the royalties fixed like a rent by the Eventually, in 1933, the Southern
landowner or negotiated in a business Rhodesia Government bought the
deal. There is no set percentage, only Southern Rhodesia mineral rights at a
what the traffic will bear. knock-down price since this was when
In other countries, such as Zimbabwe the Great Depression was raging with

hope and hustle

after 1933 the mineral rights have been no end in sight after four years. It was
owned by the State, formally vested in in fact a bargain.
the crown when Southern Rhodesia was The BSA company held the Zambian
formally a British colony and then in rights and made most of its income from
the President when Zimbabwe became the royalties, taking far more out of the
an independent republic, although the copper mines than either the Northern
UDI regime after 1969 made the same Rhodesian authorities or the sharehold-
assertion. ers of the copper mining companies. A
As with everything else vested in a settler revolt at the end of the Second
head of state this has never meant that World War saw an agreement to pay
the British monarch or the Zimbabwean some of the royalties, a minority, to the
President actually owned the mineral Northern Rhodesian authorities and a
rights, only that mining rights could promise to hand over the mineral rights
only be conferred and miners licensed in 1980.
through laws and through officials in They were in fact handed over in 1964
office. after Zambian independence and with-
The actual colonisation of Zimbabwe out really any further reason to exist, the
was built on a spurious treaty involving British South Africa with now only very
mineral rights, the Rudd Concession. modest assets was merged into Anglo
This involved three representatives of a American.
small private company, headed by Cecil In 1933 the Southern Rhodesia Gov-
Rhodes, negotiating in bad faith with ernment, on acquiring the mineral
Lobengula for the mineral rights of all rights, set a zero tariff, planning on
his domains, interpreted by the com- collecting its tax income at the profit
pany as Matabeleland, Mashonaland stage when the mining companies paid
Economy Uncensored with Tapiwanashe and adjacent territories. company tax. That worked for a very
Mangwiro Even if Lobengula had had the pro- long time, five decades at least, without
posed concession accurately translated, much of a problem but then, and by now
As the curtain closes there were oral assurances he had sought it was after independence, the growth
on 2024, we find and been given, which basically gave the
impression that a dozen or so miners
of multinationals, transfer pricing when
multinationals could make their profits
ourselves sitting at the would be active at any one time, which
were not in the concession. He tried
appear in whatever jurisdiction they
preferred, generally one without taxes,
edge of yet another to repudiate the concession within a there were hardly any profits to tax, in
year on the basis that the other side had fact large and prosperous companies
economic precipice, not been genuine, but found in almost were recording losses year after year.
a place both familiar impossible to get round obstructive
British officials, many of which had
Zimbabwe was not alone. Many
mineral rich countries were in the
and unnervingly been paid off by Cecil Rhodes.
But that concession was used to
same boat. This is when the mineral
countries, where the State owned the
unpredictable. launch the British South Africa Com- mining rights, decided to switch back

Z
real exchange rate became oracles of distrust. terclass in brinkmanship as the Government mists, but to the hustlers. To the vendors who pany, with the concession being the pay- the old-fashioned royalties. Australia
imbabwe, with its unique blend “Do you have change?” turned into an played the role of the stern parent, industry the sold tomatoes in the scorching sun, to the min- ment for large blocks of shares in the led the change.
of resilience and chaos, has waltzed existential question, and prices in USD crept rebellious teenager, and taxpayers the helpless ers who dug deep, both underground and into BSA Company by Rhodes and friends. Suddenly tax collection became
through a year that defied conven- up like mischievous shadows. spectators in the backseat. their pockets. To the bus drivers who found Other blocks went to a rival outfit who very simple. Instead of rooms full of
tional rhythm, a year where hope was both It is not that we do not want to believe in When the dust settled, both sides declared change where there was none. To the teachers, had also been negotiating with Loben- accountants having to fight rooms full
a commodity and a gamble. Like a battered the ZiG. It is that we have been here before. victory, though we all know who set the rules the nurses, the artisans, the innovators. gula to buy their agreement and make of accountants all that was needed was
orchestra, we tuned instruments that refused We have had bearer cheques, RTGS dollars, of the game. Zimbabwe’s economy is not driven by sure there would be a united front for a set of scales and the latest metal prices.
to stay in harmony, but somehow, we played bond notes, and now gold-backed promises. The truth is, economic policy making in spreadsheets or press statements. It is driven colonisation and no interminable argu- Zimbabwe does not have a single
on. Currency stability, we have learned, is not an Zimbabwe is rarely about winners and losers. by people, ordinary people who wake up every ments in British courts between rival royalty percentage. Diamonds, and
Economics, much like life, has its cycles, announcement, it is a hard-won trust. It is about survival. The Government needs day and make magic out of nothing. concerns. any other precious stonmes that may
booms and busts, moments of calm before Blackouts and backups: A year in revenue, businesses need breathing room In 2024, we saw pain and progress, despair The BSA Company extended its own- be mined, attract a 10 percent royalty.
the storm. Yet this year, it felt like the cycles and somewhere in between, compromises and determination, but through it all, we saw
spun on fast-forward, a whirlwind of policies, the dark are struck, though the bruises remain. In 2024, hope. Not the loud, flashy kind of hope, but
ership, in British law, of the mineral Platinum group metals are on seven
rights of Southern and then Northern percent. Gold is four percent with the
protests, and promises. If 2024 had a soundtrack, it would be the the dance was tense but necessary, and we the quiet, stubborn kind that refuses to quit. Rhodesia through unequal treaties with first 500g in a month from a small-scale
From the shock of ZiG’s rollout to the slap hum of diesel generators and the occasional emerged with lessons worth remembering, Looking ahead: 2025, bring it on other chiefs. It used its ownership, in miner at 1 percent and the rest from
of fuel taxes, from power blackouts to head- expletive when the lights went out mid-sen- bold policies require trust, and trust is earned, British law, of the mineral rights of that group at 2 percent. Base metals,
line-grabbing fiscal expansions, the economy tence. Power shortages became a defining not imposed. As the sun sets on this year, we look to 2025 Mashonaland and then Matabeleland, including lithium, are 2 percent.
became a theatre where everyone played a feature of this year, as ZESA’s promises flickered The parallel market: Zimbabwe’s with the same mix of skepticism and opti-
then Manicaland then Barotseland and The actual percentages could be rene-
part, willingly or not. on and off like faulty bulbs. Mining compa- mism that has carried us through decades of
But here we are, dear reader, still standing, nies, the backbone of our economy, cried favourite villain economic storms. We do not expect miracles,
then the rest of Northern Rhodesia, just gotiated, but the any deal that allowed
being beaten to Katanga by agents of the a lower rate when prices were down
though perhaps wobbling on one leg. foul as production stalled. Small businesses For all the policy changes, one constant but we do expect progress, measured, mean-
Belgian king. would have to include much higher
The currency chronicles: ZiG’s recalibrated survival strategies: more diesel, remained: the parallel market. Like a shadow ingful progress that touches every corner of
With the backing of British courts, rates when prices rose. Australia, once
fewer profits. that refuses to disappear, it crept through the our society.
debut and our old wounds We were told, of course, that salvation was economy, setting prices and defying controls. To the policymakers, listen to the people.
and so Cape courts, assured in any again, has led the way yet again with a
dispute the company set the terms for significant extra royalty on iron ores
April 2024 will forever be remembered as on the horizon: six captive power projects, The more the authorities tightened the screws, To the people, keep dancing, keep hustling,
mineral exploration and then mining when prices and profits rocketed.
the month Zimbabwe’s Reserve Bank unveiled thousands of megawatts promised by 2025. the more the market slipped through their and keep believing.
concessions. Gold claims were dished Zimbabwe should be careful about
its latest brainchild: the Zimbabwe Gold (ZiG). Sydney Gata’s optimism was admirable, fingers. Zimbabwe’s story is far from over, and if
out as payment to the occupation forces messing with the simple royalty system
Oh, what optimism the “structured currency” even enviable. But we, the people, learned Nostro accounts, forex restrictions, and this year has taught us anything, it is this: we
and others could buy in for fairly low that does work. But having set royalty
inspired at first! We stood in line with a cau- to celebrate small victories. A day without convertibility laws became battlegrounds, may stumble, we may fall, but we will always
fees, the company being keen to have the rates shifting up and down as global
tious curiosity, imagining a monetary mir- load shedding? A miracle. A week where the but the black market simply shrugged and rise again.
mineral resources mapped so wanted to mineral prices moved up and down
acle that would silence the parallel market’s fridge stayed cold? A blessing. carried on. Merry Christmas and Happy New Year,
encourage prospecting. could work, although those adminis-
whispers. In the dark, we danced to the rhythm of It is easy to blame the parallel market for our Zimbabwe. Here is to the hustle, the hope,
But an actual licence to mine was a trating the tax would need to be alert to
The governor spoke of gold reserves, of sta- necessity. We found ways to keep moving, woes, but the truth is more complex. It exists and the journey ahead.
bility, of rebirth, and we wanted to believe him. we always do. because the formal economy leaves gaps we totally different kettle of fish. Those who every potential attempt to manoeuvre
But as the old bond notes clattered in tin cannot afford to ignore. ◆◆ Tapiwanashe Mangwiro is a resident wanted to mine had to form and regis- a company around the rules without
The Chicken Game: Government, ter a company and then assign half the actually breaking the law.
shacks, tossed aside like forgotten relics, the A toast to the hustlers economist with the Business Weekly
familiar smell of panic wafted through the industry, and the art of and writes this in his own capacity. @ shares to the BSA Company. This meant Very simple tax codes have that
streets. Vendors, bus conductors, and infor- compromise So, as we bid farewell to 2024, let us raise a willoe_tee on twitter and Tapiwanashe that if the expected second rand was advantage of not being easy to get
mal traders, those who often determine the Ah, the great tax showdown of 2024, a mas- glass, not to the policymakers or the econo- Willoe Mangwiro on LinkedIn found, the company would automati- around.