NATIONAL Foods Limited has reported a 36% decline in sales volumes in the first quarter ended September 2019 owing to reduced consumer spending power.
BY TAFADZWA MHLANGA
Zimbabwe has been facing hyperinflation and liquidity challenges, forcing consumers to opt for less value products as prices of basic commodities have been rising almost on a daily basis. In June, annual inflation reached an all high of 175,66% before the publication of inflation figures was banned. In September, month-on-month inflation reportedly decelerated by 0,35 percentage point to 17,72% from 18,07% in August.
“Volumes were subdued, closing 36% below the same period last year. The sustained inflation further restrained consumer spending power, impacting volumes across all categories,” said National Foods in a trading update.
“Flour volumes were most heavily impacted, closing 50% below last year, on the back of intermittent supply and increased cost of wheat. Volume performance in the remaining categories was largely reflective of consumers downing in favour of more affordable commodities, with groceries (mainly rice and salt) closing 47% down, snacks and treats 37% down and stockfeeds 25% down.”
The maize category was least affected with volumes falling by 5% lower than the previous comparable period due to subsidies on raw maize, which assisted maize meal affordability and drove consumption.
The company’s profitability met expectation, driven by the lag in both raw materials and operating costs.
Last week another blue chip company Delta Beverages recorded a plunge in all beverages volumes, the highest being lager beer which declined by 40%.
Economist Christopher Mugaga recently said the decline in companies’ volumes reflected their struggle in the current economic environment, as it shows the shrinking consumer earnings, pushing citizens to go for cheaper products.
National Foods has initiated a programme for both white and yellow maize to cover the expected maize deficit for the first half of 2020. The company said it has a solid pipeline for raw materials, but its replacement will need to be a key focus area for management in the months ahead as subdued local liquidity and devaluation continue to affect them. National Foods launched a new cereal product under the Pearlenta nutri-active brand in October which has been well-received in the market. The company also launched Allegros popcorn and Iris cream biscuits under the snacks and treats category which have also been well-received by consumers.
WITH the current surge in Bitcoin, prices, sellers and holders are struggling to find the perfect break in the market to sell their Bitcoin in order to guarantee the best possible profit.
By Continentino, Our Reader
According to Coinbase’s trading portfolio, Bitcoin passed the US$10 000 mark on October 26, but failed to maintain the price for more than a couple of hours. As of October 24, the prices were stable at between US$9 000 and US$9 500.
Cryptocurrencies were first introduced to the world after the market crash in 2008, but for the most part, were only used and invested upon by a few who saw these new technologies as a future promise. Almost 10 years later, investors have gained thousands, if not millions, in profits from their investments. But the implementation of these currencies in our modern world would not be plausible if not for a big market crash or a huge failure in the banking systems. This statement might be true for developed and stable economies like most in the “West”.
It comes as a very big advantage for the emerging and developing world, with technologies being easily implemented to the foundation of these emerging economies. We can observe this with the implementation of Fintech in Sub-Saharan Africa. For instance, payments can be made to or from individuals with a simple text message. Services like this are being used by millions of people in countries such as Nigeria, Angola, Zimbabwe and Mozambique. A sizeable population of these countries utilise cryptocurrencies every day for simple things, like buying a snack or a soda, to more sophisticated actions, like paying for commodities and making fairly large monetary transactions.
Even though the Fintech market is growing, the transactions are mostly limited to a single country or the same carrier operator, while Bitcoin, for example, can be transferred to another wallet almost instantaneously to an individual in any part of the world.
To make transactions and to purchase a cryptocurrency, the individual must buy the currency through a currency wallet. To purchase the currency, you must find a wallet that allows transactions in your country. There are dozens of websites and apps that already accept the purchase from African countries.
During last year’s SingularityU South Africa Summit, the former CEO of Google Africa, Stafford Masie, spoke about the importance of cryptocurrencies (Bitcoin, more specifically). He mentioned emerging economies, but because of the context of the summit and where it took place, we can assume Masie referred mainly to Africa: “The third economy is an economy where people don’t have access to electronic forms of distributing value or cash … Think of the people who live two hours outside Shanghai, China’s central coast. They will use Bitcoin to trade and unlock international transactions outside of the existing frameworks in a manner that you and I cannot imagine”.
The usage of cryptocurrencies, as said by Masie, is very important to individuals that live far from the main region of a country, and can be very important in countries where transportation is difficult and cities/villages are somewhat isolated from one another.
At the end of October, just a few weeks ago, Bitcoin saw a huge surge in its price. With this huge surge came a large number of speculations regarding the stability of the new price and whether or not it represents a market equilibrium. It turns out that contrary to what many people believe was the result of a huge Chinese investment in Blockchain technology was, actually, nothing but a hoax.
Indeed, China invested millions in Blockchain technology, but the cause of the price increase was much more of a customer response to China’s investment. The fear of another cryptocurrency market collapse led to an increase in over 1 000% the quantity and number of transactions made between October 23 and 24. A drop of a few percent may be inevitable but, considering the elasticity of Bitcoin, investors need to be aware of the risks while trading large amounts.
OPPOSITION MDC leader Nelson Chamisa’s lawyer Advocate Thabani Mpofu has described a break-in at his Harare home on Wednesday last week as “suspicious”, but vowed that the incident would not cow him into silence.
— Online
Mpofu, who represented Chamisa in his 2018 presidential election petition at the Constitutional Court, said the burglars broke in as he slept with his wife.
“They took my laptop, my wife’s phone and cash. They had all the time to even re-arrange stuff. I think we had passed out,” he said.
Mpofu said he had “every reason to believe” that the raid was carried out by State agents looking for information.
“I won’t be cowed into silence,” he added.
In June, Mpofu was slightly hurt after a vehicle in which he was a passenger overturned in Mashonaland Central. He suspected foul play in that incident.
Last month, Chamisa appointed Mpofu to lead an internal “Integrity and Accountability Panel”.
BLOODIED pictures of Catherine Pamuchigere that went viral on social media last Wednesday have outraged many citizens who have called for sterner measures against perpetrators of gender-based violence (GBV).
BY PHYLLIS MBANJE
Catherine was reportedly bashed by her former husband, Livieson.
“This is the man who has been abusing me for 16 years. His name is Livieson Pamuchigere. I have a protection order against him. He beat me on Sunday and I reported the case to police, but he claims the law (enforcement agents) in Norton are in his hands. Help me bring this man to book please, my life is in danger!” she pleaded.
Her case represents many others whose abuses have sadly gone unreported out of fear and/or ignorance.
According to the United Nations Population Fund (UNFPA), despite women playing a critical role in sustainable development, GBV is undermining their opportunities and is denying them the ability to fully realise their basic human rights.
In an effort to reduce GBV, UNFPA is working with the Women Affairs, Gender and Community Development ministry, sister UN agencies and civic society towards increasing availability and utilisation of GBV services by survivors as well as reducing GBV in communities.
Women like Pamuchigere have suffered long periods of abuse, but kept this under wraps as is the norm in this country.
But the Zimbabwe Heads of Christian Denominations has taken the lead by calling on all faith communities to break the silence that surrounds the epidemic of violence against women and girls under the theme Speak Out!
The campaign, which brought together hundreds of congregants and development partners, was launched at the Sacred Heart Cathedral in Harare on Thursday last week as a precursor to the annual 16 Days of Activism against Gender-Based Violence commemorated between November 25 and December 10 each year.
According to the latest Zimbabwe health demographic survey, more than 1 in 3 (35%) of married women aged 15-49 experience spousal violence committed by their husband or partner.
One in three girls is married off before she turns 18, often to older men. The underlying causes are many, ranging from poverty to patriarchy.
Many women and girls live in fear of violence or are experiencing violence and often remain silent, citing religious reasons as the major deterrents from reporting abuse to the authorities.
The Zimbabwe Heads of Christian Denominations also encourages women and girls as well as other members of faith communities who suffer from or witness violence to speak out.
The campaign will also roll out round table discussions, dialogues and through churches measures that safeguard the dignity of women and girls.
TWO Mbire men who snared and killed a lioness and a warthog worth US$22 000 in Mushumbi Pools were on Friday last week jailed to 17 months each by Guruve magistrate Shingirai Mutiro.
BY SIMBARASHE SITHOLE
Clement Hwata (22) and Lameck Kataura (20) both from Chiwapura Village, Mushumbi Pools had 12 months of their sentences set aside on condition that they pay US$22 000 restitution to Angwa Safari, while the remaining five months were also suspended on condition that they pay a fine of $500 to the State.
Prosecutor Carson Kundiona told the court that on October 31, game rangers were on patrol at Angwa Safari in Mushumbi Pools when they saw some footprints which led to the convicts’ home.
The duo was found in possession of 15kg of dried warthog meat and confessed that they had killed it with a snare.
They were then arrested and taken to their trap, where the rangers discovered that the wire snare had also killed a lioness.
In another case, a Bindura burglar will serve seven months behind bars for breaking into two shops at Chipadze shopping centre in the farming town and stealing goods worth $24 000.
Lazarus Chakungama (23) appeared before Bindura magistrate Pamella Chimhini last week.
The court heard that on October 30 at around midnight, Chakungama and his two accomplices, who are still at large, broke into Webster Chakara’s shop and stole two television sets and radios, among other electrical appliances.
They took the goods to a house in Chipadze for safekeeping before proceeding to shop number 105 York Street in the same neighbourhood, where they stole groceries.
They were sold out by residents who bought their loot at cheap prizes. Police only recovered goods worth $6 967.
IF he had still been a bachelor, Alex Mhapare would have packed his bags and left — and perhaps gone back to “squat” with his elderly parents in Chitungwiza, or to settle in their rural home in Mt Darwin where life seemed simpler.
But the 28-year-old father of two and self-employed “computer expert” in Harare’s Highfield suburb cannot afford such fantasies.
Mhapare has to keep hustling, repairing computers and laptops from his backyard workshop in the high-density suburb, although electricity — with power utility Zesa having reverted back to stage 2 load-shedding — has been his major letdown.
“This means there is no business during the day when there is no power,” he said. “And that means less money at the end of the month, but financial responsibilities keep piling up, whether or not there is electricity.”
He can still afford a laugh, but within its fold one senses the bitterness, the frustration of a man fighting forces beyond his strength.
“This is a fight for survival. We just have to make sure there is food on the table at whatever cost,” he said with the resignation of a man who has thrown his last dice on the roulette wheel after a long night of gambling.
With the country going for as much as 20 hours a day without electricity, Mhapare’s story echoes that of other small-scale business players whose operations have virtually ground to a halt because of the extensive power cuts.
Isaac Mareya runs a fairly vibrant printing business in Seke’s Unit O area in Harare’s domitory town of Chitungwiza.
But over the last few months, he said he has also been severely punished by the shortage of power, a key component without which his machines stop running.
“I’ve been forced to use diesel, but that is not sustainable because of the high fuel costs, especially now when fuel prices continue going up,” he said.
“It means most of the day I can’t work. My only option is to push a few jobs at night up until around 1 or 2am. But how much can you do?”
So, what is he going to do? Despite promises by Finance minister Mthuli Ncube that the worst is over after instituting austerity measures ostensibly meant to consolidate fiscal space in the economy, Mareya said he does not feel like he is over the hill yet.
“I am not sure if these leaders are living in the same country and experiencing the same pain with us,” he said, tongue in cheek, reminding one of how Ncube — soon after his appointment as minister, reportedly lived in an upmarket Harare hotel on taxpayers money while awaiting his house to be renovated and flying back to Switzerland almost every week to be with his family.
Neither does Lenny Muchirahondo, who runs a butchery at Budiriro 4 shopping centre in Harare — where his meat business has been reduced into a shell, believe he would ever see brighter days with the current government in charge.
“There is nothing,” he said with a sweep of the hand, indicating the empty refrigerators in the butchery. There have become no more than decorative shelves.
“I’ve had to relieve my three employees of their jobs. It’s useless to run a butchery without reliable supplies of power. Using a generator is costly because it is no longer stop-gap measure as should be the case under normal circumstances. It has become the normal way of life.”
The power cuts have destroyed whatever was left of manufacturing as industrial sites — the supposed hubs of economic development — have not been spared the wrath of load shedding, which has condemned the country to long spells of darkness.
Last month, Zesa hiked the cost of power by 320%, but the parastatal seems to not have secured some breathing space, with the supply of regular power still a herculean task.
In a statement, the Zimbabwe Energy Regulatory Authority (Zera) said the hike was part of efforts to restore normal electricity supply after the 38,61 cents/kWh was rendered ineffective by inflationary pressures.
“The authority analysed the current situation characterised by about 18 hours of load shedding on most consumer groups, the high cost of alternative energy supplies, the deterioration of the tariff being charged against what is deemed cost reflective and made the approval of an average tariff at ZETDC level of $162,16c/kWh effective 3 October 2019,” said Zera.
Although Zesa successfully pleaded lack of capacity to import spare parts due to the paltry tariffs, its long unflattering record of corruption — which saw some managers turning it into a feeding trough before the long arm of the law caught up with them — cannot be ignored, according to social commentator Robert Mhishi.
“If we were indeed going through austerity measures in which everyone had to play a part, then action should have been taken against those people accused of defrauding Zesa,” he said.
In June this year, Energy and Power Development minister Fortune Chasi admitted, during a post-Cabinet Press briefing, that Zesa was hamstrung by a creditors list which has top politicians across the divide and State entities.
“We just have to pay. This is not the time for political banter or what. We have to pay. Zesa is a commercial entity which needs to survive. It is owed in excess of $1,1 billion. Yes, today the Minister of Finance (Mthuli Ncube) has indicated that he would pay $20 million owed by government departments. That is a drop in the ocean,” Chasi said.
But Chasi’s crusade seems to have run out of steam, with a few token arrests designed to appease a restive population unhappy with the endemic corruption that has eaten the power utility at the core like a festering wound.
“As of now, what is clear is no fat cat has been punished for owing Zesa, or made to own up, perhaps except a few spent forces who no longer have any political power to speak of,” Mhishi said.
“Electricity is a critical component of industrial production, and without it, there can be no economic development. This is what should be topping government’s priority list.”
Although Chasi indicated that if pushed to the wall, Zesa would soon name and shame those who owed them regardless of their station in society, that has not happened, except for a few token name releases of politicians who no longer have political currency.
“We need to pay our debts. There is no quick fix here. We are getting about 50 megawatts (MW) from Eskom of South Africa. If we pay, we are able to get something in the region of 400MW,” he said then.
Government, has however, shown great insincerity over its desire to address the power challenges.
“It really does not make sense that the country owes Eskom US$24 million as Zesa has not been settling its debts, but government recently splashed US$16 million on luxury cars for ministers at a time the country is enduring long hour load shedding cycles. Quite clearly, this is a demonstration of confused priorities,” Mhishi added.
Researcher and development economist, Tafara Chiremba, observed that corruption and public funds mismanagement have significantly contributed to endemic levels of poverty, with millions of people crying out for respite.
“The government should make sure it addresses the root cause of the problems, which in this case is the lack of a broader and shared national policy framework, corruption and mismanagement of public resources,” he said.
Load shedding, which in the past spared industrial areas, has become the norm since President Emmerson Mnagagwa came to power two years ago and industrial sites have been hit hard as well, forcing some companies either to close shop or scale down production due to the high cost of fuel for generator power.
The country is facing its most severe power crisis in decades, having only relied on mostly hydropower and thermal energy generation despite the abundant sunshine and huge potential for investment in solar energy.
Zimbabwe has an installed capacity of around 2 000MW with demand at 1 500MW, but power generation from its hydropower station in Kariba, Hwange (thermal), Munyati (thermal), Harare (thermal) and Bulawayo (thermal) is at a combined total of 1 200MW. Kariba Dam, from which the country generates 57% of its electricity, currently has low water levels due to poor rains last year and is currently supplying just about 34% of power to the national grid.
MUCH as we should be rejoicing and dancing mad in the streets that government will, starting today, drip-feed a billion dollars of our already inflation-gnawed currency into the market, the air is murky thick with a sense of despondency. That sense of hopelessness emanates from a strong feeling that the nation has been down this painful path before. The déjà vu is crushingly all too familiar.
NewsDay Comment
The cash injection is coming at a time the country is experiencing its worst economic malaise in a decade punctuated by dwindling production, in the wake of a crippling shortage of electricity, food, water and foreign currency. It would be fooling oneself to believe that increasing money supply will ever ease the southern African country’s woes. Simple economics schools us that “an increase in money supply will lead to an increase in consumer spending”. Period!
And in our case there will be increased consumption of what is already scarce which will mean that there will be increased demand for electricity, water, food, water, foreign currency and all other goods and services one may think of which coincidentally are all largely imported. While the country’s shops currently appear well stocked, those goods (mostly imported) will soon disappear, but not before their prices are hiked as businesses try to raise more foreign currency from the streets at a premium to meet demand. What this means is that Zimbabwe is now firmly stuck in a vicious vortex akin to that which led to the demise of the original Zimbabwe dollar, which was mauled by rabid hyperinflation that topped an all-time official figure of 500 billion percent by the end of 2008.
Thousands of people, who have been queuing for months on end at banks just to access $50 a week, will be trooping to their banks today hoping to get a little more, but it will not surprise us if whatever they get will not make much difference. Zimbabwe is hardly producing given that its industries and farmlands have been made redundant by largely lack of electricity, water and finance for raw materials and inputs. Other critical sectors such as mining and tourism are also suffering, meaning that the country has very little to celebrate. So as much as we welcome more money into the market and as long as the country is not yet able to self-sustain in the basics, the increased money supply might just be a new curse thrust upon us.
TOP local comedian Victor “Doc Vikela” Mpofu is set to raise the country’s flag high at Zed Laugh Festival set for Mlungushi Conference Centre in Lusaka, Zambia on November 29.
Doc Vikela — who wears many hats including those of master of ceremonies, workshop facilitator and brand ambassador — will be part of a glitz constellation made up of several other star jesters from around Africa.
The entertainer behind Simuka Comedy told NewsDay Life & Style at the weekend that he was thrilled to be considered for the festival for the first time as he continues to gain international traction.
“I am so excited. This is my first time to perform at the Zed. It’s amazing how we have managed to groom comedians who include Long John who is a product of Simuka Comedy but now Long John put in a good word for me to go and perform at this festival. I am proud and grateful to him,” he said.
Doc Vikela said he was geared to entertain comedy lovers and make memories on stage in Lusaka.
He said the invitation to perform at the laughter fete would open doors for other comedians to perform there as well and create a partnership with the organisers of the Zambian festival.
Doc Vikela said just like Long John, he was cutting the path for other local jest masters and creating synergies with their Zambian counterparts.
He expressed confidence that he would deliver because his jokes related well with all African countries.
“My jokes are of an African village and I feel they are always going to remain in context with what the Zambians are used to. However, I am going to do my feasibility study through social media and understand what is happening in Zambia in preparation for the fete,” he said.
Long John made history on Friday when he scooped the People’s Choice Award at the Steve Harvey Standup Spotlight Awards, a brainchild of top American comedian and talkshow host, Steve Harvey.
Long John shrugged off stiff competition from across the world to bag the award.
“Oh….. My God… I can’t believe this! I woke up to this today? We won the Steve Harvey’s Spotlight Competition. This is a dream come true. I can’t believe this,” the comedian wrote on his Facebook wall in response to a Twitter post by Harvey.
In his post, Harvey thanked all the participants and singled out Long John as the winner.
“Thank you to all who participated in the Steve Harvey Stand Up Spotlight Competition! The People’s Choice Award Winner is Long John @long_john_ who joined the competition from Zimbabwe! Congratulations man, you were funny, animated, and have great stage presence keep it up champ!” he wrote.
TOP gospel choral outfit Vabati vaJehovha members charmed their fans when they graced Baba Harare’s album launch at Long Cheng’s Food Nest Restaurant in Harare on Friday last week.
The music outfit, which commands a huge following, delighted fans when they staged one of the songs off an album they collaborated with Baba Harare.
“I grew up in a Christian environment. Back home we went to church so it’s a way of being close to God, teaching people about God and practicing what we used to do back then,” Baba Harare said.
Top musicians, including Andy Muridzo, Progress Chipfumo, Peter Moyo, Carlos Green and Gift Amuli also entertained the crowd during the colourful launch. Baba Harare said the six-track album — his fourth offering — was inspired by love, nature and God. The album also features Buffalo Souljah and Peter Moyo in separate collaborations.
The artiste said the production was unique when compared to his previous releases.
“This album has three jit tracks, two Afro-fusion (pieces) and one reggae song. My previous albums had only one jit song,” he explained.
He said the track Generator was a love song dedicated to his girlfriend.
CHIPAWO Trust’s New Horizon Theatre Company and Theatre in the Park will stage a series of plays this month, under the theme: A Time with Uncle Steve, in honour of the late legendary playwright Stephen Chifunyise.
The first play, Vicious, written and directed for UNFPA by Chifunyise will be staged on Friday and Saturday.
The play touches on various issues affecting most Zimbabwean communities — including poverty and HIV from a fresh perspective.
Chipawo manager Chipo Basopo, who features in the play, told NewsDay Life & Style that the plays were a way of honouring Chifunyise and keeping his legacy alive.
“This is to honour and keep Uncle Steve’s legacy alive. Every month Chipawo and Theatre in the Park will present at least one play from him. Vicious is a tragic and classic portrayal of the prevailing poverty where even middle-class families are drawn into poverty by the needs and suffering of their relatives who come to live with them in town or remain in the countryside where many are dying of Aids,” she said.
The cast includes Tafadzwa Munjoma, Kidman Basopo, Kundai Chipagara, Sabinah Rwatizha, Nigel Chindngungwe and Robert Chiyama.
Chifunyise’s longtime friend Robert McLaren, a renowned theatre practitioner, described Vicious as the former’s greatest play.
“Perhaps his greatest masterpiece is Vicious. In most of his plays he treated his topics not only with a deep understanding of the issues, but also a wonderful sense of humour. His themes are all essentially Zimbabwean, exploring Zimbabwe’s culture, its modern mores and topical burning issues, including the political,” he said.
Chifunyise founded Chipawo and remained its chairman until his death in August this year.
