BY TAFADZWA MHLANGA

FINANCE minister Mthuli Ncube has reviewed upwards the minimum capital requirements for insurance entities to $75 million to ensure that they are well-capitalised to protect value for policyholders and pension members.

In a budget presentation on Friday, Ncube said the minimum capital requirements for short-term and funeral insurance entities will be reviewed to $37,5m from $2,5m, life assurance and re-insurance to $75m from $5m and micro-insurance to $4,5m from $0,3m with immediate effect.

“The obtaining macro-economic environment has necessitated upward review of minimum capital requirements for different players in the insurance industry to ensure that entities are well-capitalised for the protection of value for policyholders and pension members,” Ncube said.

Meanwhile, Zimbabwe’s insurance and pensions regulator, Insurance and Pensions Commission (Ipec) is developing a risk-based capital framework called the Zimbabwe Integrated Capital and Risk Project (Zicarp), which will be launched in 2020.

The programme seeks to improve the regulator’s oversight of the industry focusing on compliance based on risks associated with insurance firms shifting from assessing solvency using capital threshold.

The initiative, running under the theme Treating Customer Fairly and Market Disclosure Framework, aims to improve conduct of business in the industry.

Currently, lack of confidence continues to haunt the country’s insurance and pensions industry following the erosion of policyholder accounts due to the conversion of value from Zimbabwean dollar to the United States dollar during the February 2009 period.

A survey conducted recently by African Actuarial Consultants under Zicarp, spearheaded by Ipec, showed that at least 62% of Zimbabwe’s insurance firms do not have software to analyse and debunk risks associated with their business.

Certain entities did not have documented framework for managing underwriting risk.

The survey also revealed that only 54% firms had documented policies and procedure manuals for managing material risk and 42% partially had, suggesting that the industry had challenges in implementing good corporate governance.

The survey was aimed at bringing about transition from capital threshold compliance to a more integrated framework that looks at credit, strategic, operational and insurance risks associated with insurance companies.

FIDELITY MHLANGA

LISTED diversified food processor, Innscor’s volumes plunged in the first quarter ended September 30 as the company reels under one of the worst economic crisis bedevilling the economy.

The company’s financial year starts in July every year.

Zimbabwe’s tanking economy is saddled by power shortages, foreign currency dearth, run-away inflation, skyrocketing prices amid eroded purchasing power.

The company’s subsidiaries that recorded a slump in volumes include Profeeds, Colcom, National Foods, Probottlers, Bakery operations and Probrands.

In a trading update, the firm said production levels in the bakery operations were constrained by reduced availability of wheat supplies into the country, and this affected the ability of the business to adequately service the market demand.

Consequently, total loaf volumes were 38% behind those recorded in the comparative period.

Industry is currently utilising government subsidised flour.

Going forward, the availability and pricing of this stock, will largely determine supply and pricing levels of bread on the market.

This comes as Treasury is set to remove subsidies for maize and wheat, which were being provided to grain millers through the Grain Marketing Board.

“We remain extremely focused on working with the authorities in determining a long-term solution that will allow for more consistent bread supplies to consumers as well as a more sustainable business model for bakers,” Innscor said

Quarter one volumes at National Foods were also subdued, closing the period at 36% below the same period last year.

Although volumes were affected across all categories, flour was heavily impacted, closing 50% below last year, on the back of intermittent supply and increased cost of wheat.

The maize category was the least impacted, with volumes for the quarter closing 5% below the prior period, as subsidies on raw maize assisted with maize meal affordability, driving consumption. Total volumes at Colcom were 17% below those recorded in the comparative period.

Innscor said volumes across the operation’s processed lines were generally subdued, but were partially off-set by continued growth in the fresh lines which grew by 43% over the comparative period.

“Pig supply improved by 26% over the comparative period, as a result of the additional pig unit now supplying at full capacity. In addition to the volume growth levels, this part of the operation continued to see outstanding production metrics being achieved,” Innscor said.

At Probottlers, production was affected by extremely poor power supply and this negatively affected volumes in quarter one, which were 44% down on the comparative period.

In addition, volumes at Profeeds were 11% below those recorded in the comparative period, with increased raw material replacement costs impacting on selling prices.

Both frozen poultry and day old chick volumes saw volume declines against the comparative period, with frozen poultry numbers being 18% lower, and day old chick sales reducing by 44%. Both lines were affected by the steep increases in key raw material costs which subsequently affected overall demand.

Moreso, volumes at Probrands were 40% below those recorded in the comparative period, with much of this decline occurring in the rice category as consumers switched to cheaper local alternatives.

However, there was a silver lining as volumes at Associated Meat Packers (AMP) , Natpak, eggs and raw milk were positive.

AMP, which was previously reported under Colcom, has now been unbundled into a stand-alone operation and has had its overall volumes for the business 18% above the comparative period.

The business consists of a cattle-buying and slaughter operation, a down packing and processing facility and the wholesale network, which operates under the AMP and Texas brands.

Natpak delivered solid financial performance with an overall volume increase of 26% over the comparative period.

Table egg volumes were 39% above the comparative quarter, arising from the operation returning to full production capacity, following the re-building of the layer production base.

Overall raw milk intake volumes achieved in the quarter were 30% above those recorded in the comparative period, with good performances in the Cultured Milk, UHT Milk and Dairy Blend categories, following the completion of capacity enhancement investments.

BY PATRICIA SIBANDA

BULAWAYO provincial education director Olicah Kaira has challenged youths to consider taking up life skills training programmes because government is facing challengers in employment creation.

Speaking at an event to recognise academic achievements of youths held at United Congregational Church of Southern Africa in Mzilikazi, Bulawayo on Sunday, Kaira said the new curriculum’s primary goal is for learners and school dropouts to take life skills training seriously for them to survive in the harsh economic environment.

“Those of us who are familiar with the Ministry of Primary and Secondary Education’s competence-based curriculum will recall that its thrust is on exit profiling. This means, therefore, that if learners leave school at whatever level they will exit with life skills that should enable them to survive and compete with the demands of everyday life,” Kaira said.

“The individuals who are not academically gifted can join the non-formal education which is second chance education. In schools, we have already adopted that in our curriculum through income-generating projects, self-help projects among others. Nowadays in school it’s no longer an issue to find a student running a small business just to make ends meet,” Kaira said.

Kaira urged school dropouts to return to school and acquire life skills.

“All these forms of livelihoods are being celebrated in many countries which we, as Zimbabweans, look down upon. Some of us, especially the young people here present, could be viewing this ceremony with hazy glasses because they don’t envision themselves taking any leading role or being recognised in their life time. What I have mentioned is just the tip of the ice-berg to open up our minds to make us realise that we also have an opportunity to be celebrated,” Kaira said.

BY BLESSED MHLANGA

PRESIDENT Emmerson Mnangagwa yesterday declared that he will implement political and economic reforms at his own pace, and insisted that the impetus for change and reform comes from within.

In a statement reflecting on his two-year rule after taking over power at the back of a coup that toppled long-time ruler, the late Robert Mugabe in November 2017, Mnangagwa said the sanctions being used by the West as a tool to demand reforms, were not achieving their desired effect.

Mnangagwa’s statement came at a time the European Union and United States of America were insisting on reforms as a precondition for the removal of economic sanctions imposed on the country two decades ago over gross human rights abuses by Mugabe’s administration.

The Zanu PF leader, who released the statement after leaving the country for the
United Arab Emirates for an economic forum, said his government had tried to make reforms in line with the demands of the international community, and will continue to do so, not as a result of pressure from sanctions, but for the good of the country.

“These have been key demands of the international community, and should be interpreted as a sign of our commitment to reform,” Mnangagwa said.

“Yet the impetus for change and reform comes from within. We are not reforming to appease the nations of the world, but because reform is necessary to build the future our people desire. Of course, there is still much work to do, but we are heading in the right direction.”

He added: “If the goal of sanctions is to stimulate the reform process, their effect is the opposite. They slow down our progress, inhibit our economic recovery and empower those who do not wish to see Zimbabwe change. Their removal will, therefore, be an important step on the road to a better future for all the people of this country.”

When Mnangagwa took over power, he claimed he was a reformist, promising to embark on a new political journey of reform and international engagement.

Insiders in his government, however, claim there are some hardliners stalling the reform process, warning him that he risked reforming himself out of power.

Upon returning to Zimbabwe last week, EU ambassador Timo Olkkonen raised the ire of Zanu PF supporters, when he said the putting up of expensive billboards to denounce non-existent sanctions was disingenuous.

“Good to return to Harare after a busy week in Brussels. Heard about these billboards (how much do they cost?) on all major airport roads, but hadn’t seen one due to having had few flights recently. Seems there still are things that need to be clarified,” Olkkonen said.

The EU and the US have insisted that Zimbabwe has been hurt more by corruption than the sanctions, calling on government to deal with the scourge instead of hiding behind a finger.

For the sanctions to be lifted, the West has been demanding legislative, political and electoral reforms, including bringing to book members of the army and police involved in the brutal killings of innocent civilians during the post-election demonstration on August 1, 2018 and the January 14 to 16 demonstrations which left a combined 23 civilians dead.

In his statement, Mnangagwa, however, was silent about the killings and the closure of the democratic space, which has seen the opposition being denied their rights to take to the streets through a brutal crackdown by the police.

Instead, he claimed that his presidency had opened up democratic space and done away with the old Mugabe ways.

“Coming into office a few days later, we committed to saying goodbye to the ways of the past, and to doing things differently. I immediately moved to give the people their voices back, opening new channels of communication between the people and their representatives.

“Criticism of the government and the presidency would no longer be taboo, but welcomed, even encouraged. I answered tough questions on my Facebook page, as I promised to be a listening President.”

Mnangagwa’s claims contradict a report by the United Nations Special Rapporteur Clément Nyaletsossi Voule which concluded that human rights violations and stifling of the freedoms of expression were growing under his government.

Currently there are also several cases before the courts of people facing charges of insulting Mnangagwa.

“Just last week, we removed the much-maligned Posa (Public Order and Security Act), a remnant of the old Zimbabwe that limited the right to protest, and replaced it with a new Maintenance of Peace and Order Bill, devised with input from civil society and our friends around the world,” Mnangagwa said.

Turning to the economy, Mnangagwa claimed he took over from Mugabe when the country was in an economic mess and has moved with speed to balance the country’s books through his Finance minister Mthuli Ncube, who he described as an “internationally” recognised minister.

“Of course, too many Zimbabweans still suffer, but austerity is a painful, but necessary part of the recovery process. Led by our internationally recognised Finance minister, Mthuli Ncube, we will continue to restructure, revamp and rebuild our economy. We cannot and will not hold up our hands. We must reform or perish,” he said.

BY TAFADZWA KACHIKO

AFTER making headlines with Operation Restore Regasi last year, Masvingo’s Charles Austin Theatre is bringing another intriguing political piece titled A Live Discussion with the Late Robert Mugabe, set for premiere on Friday evening.

Characters featuring prominently in the play, whose concept was developed by Charles Munganasa, are Mugabe, played by Khetani Banda, and Ruvheneko Parirenyatwa, played by Candyce Masimba.

Munganasa told NewsDay Life & Style that the choice of the character Ruvheneko Parirenyatwa was based on the real person’s excellence in her career.

“It’s one of those ideas which came out of the prison of my imagination two years after Operation Restore Legacy and as we still mourn the death of the former President Robert Mugabe. November 22 marks his resurrection but this time we get to see and understand his deepest thoughts, his other side and above all, his inner soul,” he said.

“It’s a live interview, not really following theatre format. We chose Ruvheneko because she has been moderating interviews very well and currently she is rated among the best in Africa.”

The play introduces a new actress, Tariro Musuvi, playing the character Grace Mugabe. In Operation Restore Regasi Carol Magenga — who is now with Jasen Mphepo Little Theatre —played the role with aplomb.

“This time Grace plays cameo role and only appears towards the end of the show. Magenga now works for another theatre company in Harare so we could not rehearse with her,” Munganasa said.

The play also stars Munganasa as General Chiwenga, FS Mapfumo (Emmerson Mnangagwa) and Hardy as Victor Matemadanda.

Admission is ZWL$10 for children and ZWL$15 adults.

Supporting performances will come from WekwaMaramba, Ngoni the Poet, John Dancer and Cyclone.

BY MISHMA CHAKANYUKA

Finance and Economic Development minister Mthuli Ncube has allocated 5% of the excise duty revenue collected on fuel towards the construction of the Beitbridge-Harare-Chirundu Highway as international financiers remain elusive.

The total cost of the project, that has stalled for years and yet facilitates regional trade and the movement of goods, is estimated at US$1,2 billion.

Presenting the 2020 National Budget last Thursday, Ncube said he was going to fund the rehabilitation of the highway through internally generated funds emanating from 5% fuel excise duty.

“This has undermined rehabilitation and dualisation of the Beitbridge-Harare-Chirundu Highway which government has undertaken to fund from internally-generated resources. It is, therefore, critical to secure additional resources for the Beitbridge-Harare-Chirundu Highway, which facilitates the movement of goods along the North-South Corridor.”

“I, therefore, propose to ring-fence 5% of excise duty revenue collected on fuel towards the construction and rehabilitation of Beitbridge-Harare-Chirundu Highway.”

This comes after it was reported that government had assigned local contractors to undertake roadworks on the highway.

The entire excise duty, fuel included, contributes 20% to total revenue.

Statutory Instrument 161 of 2019, Customs and Excise (Tariff) (Amendment) Notice 10, 2019, Excise Duty on directed fuel imports was pegged in foreign currency at rate of US$0,45 and US$0,40 per litre of petrol and diesel, respectively.

Economist John Robertson said Zimbabwe was not in a position to finance the highway project as it was struggling economically and that it was unrealistic for the 5% to raise enough capital to fund it.

“This is a difficult issue; even now those that had been given contracts to construct the highway have not been paid. The billions needed to finance the project are too much and we are really not in a position to raise such an amount of money. We are really in a difficulty situation considering that we are finding it challenging to pay those that we already have contracts with. It’s hard to believe that this 5% will in anyway raise enough capital,” Robertson said.

“As a country, we are already struggling and cannot borrow money from anywhere. So we are in no position to finance this big project. The statement, which was announced is confusing, as it suggests that this project will be financed by money that is yet to be collected, money that is not already there. I cannot find where the money will come from.”

Economist Persistence Gwanyanya said this was a good move, as the collected revenue was being channelled towards developing the country which benefits the taxpayers.

“I think this is a good approach; collected taxes should contribute to the growth of the economy. As taxpayers, we want to see where the money is going and what it is used for. We have always encouraged the government to channel the money towards something tangible and this addresses the issue of fuel tax and where the revenue collected is going. People will now pay tax knowing that they will get some results from their money,” Gwanyanya said.

He added that the project would not be capitalised by external investors, hence the need to source resources within the country to ensure that it is completed.

“On the sustainability issue, we need to be realistic; the project is one of the risk investments that external investors do not capitalise in. Investors are not going to put any money on this project, hence we need to mobilise domestic resources to ensure that this road is constructed and finished. This move may not be sustainable, because we are over taxing our people. It is bad, but it is also the only way out because we are seriously constrained and do not need any room for leakages.”

The tender to dualise the Chirundu-Harare-Beitbridge Highway, which has been on the drawing board for the past 16 years, was initially awarded to ZimHighways — a consortium of local companies — in 2002, but the company failed to implement the project for over a decade because of hyperinflation.

When the government cancelled the deal, the contractor sought recourse at the High Court before dropping the legal battle in 2013, paving way for the Geiger International deal, which was finalised in 2016 after talks that dragged on for over four years.

Last year, government cancelled the tender after Geiger failed to fulfil its part of the deal even after government invoked a clause giving it a 180-day and later a 60-day ultimatum. Fresh negotiations were launched with Anhui Foreign Economic Construction (Group) Co Limited (AFECC).

BY SHARON SIBINDI

ZIMBABWEAN author and Iowa Writers’ Workshop 2015 graduate Novuyo Rosa Tshuma is scheduled to roll out a project dubbed Kwantuthu Writers’ Workshop to inspire and nurture young writers and foster related cultural activities.

The project was inspired by Tshuma’s experiences from her early days as an aspiring writer in Zimbabwe to her time in South Africa and the United States as well as her numerous travels across the world.

Tshuma told NewsDay Life & Style that the workshop would be a week-long set of intensive lectures that will be held annually in Zimbabwe.

“The workshop aims to bring established writers from Zimbabwe, Africa and the rest of the world to Zimbabwe’s artistic hotbed, Bulawayo, to nurture writing talent and enrich it through cultural exchanges, she said.

“The workshop is a space for emerging writers to convene and learn from more seasoned writers and other cultural practitioners.”

Tshuma said the workshop will commence next year and applications for fiction and non-fiction workshops would open at the beginning of June 2020.

“The inaugural workshop will take place from August 3 to 9 next year and workshops are free and open to all those interested in applying. Writers from across Zimbabwe, as well as outside Zimbabwe, are encouraged to apply,” she said.

“There will be scholarships for selected applicants coming from outside Bulawayo. Food, transport costs in and around Bulawayo, and working materials will be provided for all participants.”

She said applicants were encouraged to prepare a sample of their best work, fiction or non-fiction, of not more than 1 000 words and a short personal statement of 300 words giving insight into their artistic journey.

Tshuma said her dream was to turn the workshop into an annual event since it was essential to keep conversations and cross-fertilisation of ideas among artistes running. Tshuma is the author of the short story collection Shadows and novel House of Stone, in which she re-enacts the Gukurahundi killings in Matabeleland and the Midlands in the early 1980s.

BY PHILLIP CHIDAVAENZI

A DISTURBING video clip of a fight that broke out at a communal borehole in one of Harare’s high-density suburbs over a chance to fetch water attracted laughter and a string of jokes on social media.

But beyond the laughter and fun, it spoke to something more serious and tragic as it was emblematic of the water crisis that has gripped Harare as the city battles to supply clean, potable water to residents.

Residents, who spoke to NewsDay, said the water shortages have, particularly, been acute this year, with many boreholes that served as a safety net during prolonged spells of water rationing having dried up.

The development has left residents in a tight spot. Abigail Makore, a mother of four in the sprawling suburb of Budiriro, said access to clean water had become a major challenge.

She said they had not had access to running water for three years, and have had to rely on borehole water, which was now running out as the dry season prolongs.

“It looks like we are on our own and those that are supposed to help us don’t seem to care,” she said.

Makore’s sentiments, that resonate with many other residents, are a serious indictment on the city fathers, who seem overwhelmed by the call to duty at a time access to other services have become increasingly a challenge.

She said it was painful that she dutifully paid her rates to the city, but there had been no corresponding action from the city fathers in terms of service delivery.

“We are paying for a service that is not there. Our borehole have now virtually run out of water, so we are in trouble,” she said.

Although several houses in the neighbourhood have boreholes, many of them have since dried up and given the apathy by the municipality, many residents are praying for a divine rescue, with hopes that they would be bountiful rains this year to fill up the boreholes and wells once again.

“At least there is hope after we had rains last week,” Tapson Makuvire of Kuwadzana said. “My well was almost running out and we could only get one 20-litre bucket of water, but now it’s better after the rains.”

Urban planning expert, Harvey Muronda, said the water challenges demonstrate urban planning failure on the part of the city authorities.

He said the city’s population has been growing exponentially over the last 20 years, but without corresponding expansion of resources and infrastructure to accommodate the burgeoning population.

“Our city planners should be more forward-looking because it is the nature of cities and towns to grow over time in terms of population. Such growth exerts pressure on the available water infrastructure, which would have been designed for a smaller population,” he said.

He said it was abnormal to have residents dig up boreholes in a city with piped water infrastructure.

“The city authorities should be embarrassed. The fact that residents have resorted to digging their own wells quite clearly demonstrates, beyond anything else, that the city managers have failed.”

Observers attribute the city’s failure to provide a basic service such as water to the endemic corruption and mismanagement in the city.

In his 2020 National Budget last week, Finance minister Ntuli Ncube cited corruption — which has not spared local authorities across the country — as the leading cause of economic malaise and wastage of public resources.

“Based on the Auditor-General’s report, government is losing resources through corrupt activities. In addition, corruption in some parastatals and local authorities has compromised some desired development outcomes,” he said.

Harare Residents Trust (HRT) director Precious Shumba said corruption had contributed to the water management failure in the capital.

“What is not working is the costly arrangements for the provision of water treatment chemicals, involving monopolies and South Africa-based companies created an artificial barrier to the efficient costing of water treatment chemicals and their supplies,” he said.

“The result of these boardroom elitist arrangements make the US$2,5 million monthly payment for water treatment chemicals a deal most beneficial to a few officials, councillors and Local Government bureaucrats. The HRT believes that what is said to be the cost of water treatment chemicals is inflated, unreasonable and a criminal abuse of the procurement system.

This is our major problem.”

Shumba said although government and council were aware of the procurement dilemma, nothing concrete has been done to address the leakages, illegal connections and flawed procurement processes.

In their Water Crisis Fact Sheet No. 2 of 2019, the Zimbabwe Peace Project noted that there was a flagrant violation of Section 77 of the Constitution, which guarantees every citizen’s “right to safe, clean and potable water” and categorically says: “The State must take reasonable legislative and other measures, within the limits of the resources available to it, to achieve the progressive realisation of this right.”

The Harare municipality has singled out foreign currency shortages as the reason for the problem, with deputy mayor, Enock Mupamawonde, recently urging the government to declare the water situation a national disaster.

He said the local authority required at least $40 million (US$2,7 million) a month for water chemicals, against a monthly revenue collection of $15 million.

Against this grim backdrop, water supply has become big business with some enterprising individuals with boreholes selling water to their neighbours for $1,50 per 20-litre bucket.

Desperate residents, like Micheck Mapango of Zengeza 3, have been left with no choice, but to purchase the water — an otherwise free resource from neighbours.

“It is really bad,” he said. “Now we have to include an additional cost to our monthly budget — buying water from neighbours. I have not seen anything like this before.”

In September this year, council spokesperson Michael Chideme said they appealed to the government to declare the water situation a state of emergency.

“We are asking for a bailout, we are asking for the water situation to be declared an emergency or a disaster, so that resources can be pooled together to address the issue. Some of the solutions will include the construction of new water sources like Kunzvi, Musami, Mazowe and Muda dams,” Chideme.

Shumba, however, said the city authorities were not being truthful.

“Their insistence on new water sources is their own way of denying responsibility for their absolute failure to deliver water to plus 60% of connected households. Evidence on the ground suggests that there is sufficient water in Lake Chivero to supply Harare residents with water,” he said.

“What is not working is the costly arrangements for the provision of water treatment chemicals, involving monopolies and South Africa-based companies, which created an artificial barrier to the efficient costing of water treatment chemicals and their supplies.”

Shumba said the identification of Kunzvi and Muda dams as alternative water sources would not be a magic wand that would wipe away the water woes overnight because “they will take five to 10 years to construct and start serving Harare residents.”

BY CHELSEA MUSAFARE

CHIPAWO will on Friday hold a memorial service in honour of the late legendary playwright Stephen Chifunyise for his love for children, who he believed to be the country’s best ambassadors.

Chipawo manager Chipo Basopo told NewsDay Life & Style yesterday that Uncle Steve — as Chifunyise was popularly known in theatre circles — had children at heart.

“The children will talk about their memories of him and read out stories they remember especially from his book Takura and the Talking Branch,” she said.

Basopo said the children will be drawn from Harare, Seke and Bindura and will showcase plays, including Tawanda and the Mystery Dance, Health Project and Takura and the Talking Branch at Theatre in the Park in Harare.

Running under the theme It’s a Time with Uncle Steve Memorial Show, the free-of-charge memorial will include dances, story-telling and the staging of short plays written by Chifunyise.

Over 100 children from different schools, including Alfred Beit and Haig Park Primary School will attend the memorial.

Chipawo, in partnership with New Horizon Theatre Company, has started an initiative to stage at least one play by the late veteran thespian at Theatre in the Park every month.

Chifunyise was the founder of Chipawo and the principal of the Zimbabwean Academy of Arts Education for Development. He was also the chairperson of Chipawo up to the time of his death.