Business Reporter

At least three local suitors (names supplied) have submitted bids to acquire the Industrial Development Corporation of Zimbabwe (IDCZ)’s 74 percent shareholding in car assembler Willowvale Motor Industries (WMI).

Sources with knowledge of the matter told The Sunday Mail Business that a leading car dealer, a funeral assurance company and a local tobacco processor are among companies that have submitted bids for the stake.

IDCZ general manager Mr Ben Kumalo said the company was working with its parent ministry (Industry and Commerce) and the State Enterprises Restructuring Agency (SERA) to evaluate the expressions of interest by the potential suitors.

“The EOIs (expression of interests) have been evaluated and shortlisted,” said Mr Kumalo in an e-mailed response.

“In the case of WMI, the IDCZ now awaits guidance from Government on how to proceed with regards to the shortlisted EOIs.”

The disposal of WMI is in ACD with the Aciate companies under the State Enterprises and Parastatal Reform Framework aimed at injecting fresh capital and re-jigging management.

ACStill, IDCZ, a State-owned entity, will continue engaging several other Original Equipment Manufacturers (OEMs) for the local production of their brands while at the same time pursuing disposal of its majority stake in Willowvale.

However, negotiations with OEMs have been affected by weak demand for new cars and foreign currency shortages.

Analysts say given low disposable incomes, demand for new vehicles would remain a challenge in the short to medium term.

Between 2009 and 2016 (when the US dollar was predominantly a reference currency), Zimbabweans spent as much as US$4,5 billion on second-hand cars, which translates to an average of US$566 million per year, according to Zimbabwe NatioAnal Statistics Agency (Zimstat).

At its peak, WMI was producing 18 000 vehicles per year before production plunged.

Some of the brands which WMI assembled include Madza, Nissan, Mitsubishi and Toyota.

Pre-owned vehicles are fuel inefficient and haemorrhage resources through frequent breakdowns.

Zimbabwe has been facing foreign currency shortages owing to both low exports and foreign direct investments.

Mr Kumalo said WMI will require enough foreign currency to import semi-knocked-down (SKD) kits.

In 2017, the company entered into a joint venture with a Chinese firm to assemble cars from SKD kits.

The partnership resulted in the formation of Beiqi Zimbabwe, a joint venture between Beijing Automobile International Corporation — China’s fifth-largest car maker — and WMI.

However, very few units have been assembled at WMI as it emerged those who ordered the vehicles actually received new cars imported from Chinese plants through local car leaders.

In 2018, the Government launched the Motor Industry Policy, which seeks to attract foreign direct investment into the local vehicle industry by 2030.

By that time, Zimbabwe is hoping to have achieved upper middle-income status.

The policy encourages Government departments to buy local vehicles.

The IDCZ has also short-listed two local firms interested in buying shareholding in Deven Engineering — a local assembler of trucks and buses.

Faramatsi, an investment vehicle linked to Doves Funeral Assurance and Glenwood Investments, has been selected to acquire IDCZ’s 74 shareholding in Deven.

Deven’s core competence is trucks and bus body manufacturing done on rolling chassis or from knocked-down kits.

It can build trailers, tankers and specialised vehicle bodies such as compactors, dumpers, tippers, refuse trucks and repairs.

Faramatsi is also reported to be the investor that acquired IDCZ’s 18 percent shareholding in Amtec Motors.

So far, IDCZ has disposed of its 51 percent shareholding in Almin Metal Industries, 49 percent interest in Stone Holdings, while Zimbabwe Copper Industries was liquidated.

Potential investors for Zimglass, which is under liquidation; Irazim Textiles; and Travan Blankets have been identified.

IDCZ also received bids for Chemplex Holdings, which requires between US$70 and US$100 million for recapitalisation.

Robson Sharuko Senior Sports Editor

NORMAN MAPEZA’S abrupt resignation has shaken the Chippa United establishment with the club’s main sponsors lashing out at arguably the world’s most chaotic football club.

The team’s culture of chaos has seen more than 20 coaches come and go since they first tasted South African Premiership football eight years ago.

The former Warriors captain and coach, who breathed life into the club by guiding them to their first league win this season, and taking them five points clear of relegation trouble, threw in the towel on Monday.

He finally ran out of patience with the repeated influence, in his work, by some club’s leading officials.

Chippa, as expected, have moved swiftly to find a replacement.

“Following the resignation of Norman Mapeza and acceptance of same by the club, Chippa United FC would like to confirm the appointment of Rulani Mokwena as its new head coach,’’ the club said in a statement.

‘‘Rulani will see the Chilli Boys through the remainder of the current season.

“Having worked with both Mamelodi Sundowns and having steered Orlando Pirates during the current season, Chippa United FC is confident that he will prove to be an asset on all facets, including development.

“Chairman of the club, Mr Siviwe Mpengesi welcomes the head coach and would like to express his appreciation to Orlando Pirates FC and pledges to give the necessary support to coach Rulani.

‘‘The coach is expected to be on the bench when Chippa United FC face Bidvest Wits on Saturday March 7, 2020. He will be assisted by Michael Loftman.’’

Mokwena’s parent club, Pirates, also confirmed the deal.

“Orlando Pirates Football Club can confirm that assistant coach Rhulani Mokwena has been seconded to join Absa Premiership outfit Chippa United,” said Pirates in a statement.

“Mokwena, who recently returned from an overseas trip which saw him visiting some European football clubs for a benchmarking exercise; joins the Chilli Boys until the end of the season.

“He will be joined at United by Michael Loftman.”

Mapeza has already returned home although there are reports he could be back in South Africa soon with Amazulu, who put their coach on indefinite leave, eyeing Mapeza’s signature.

But, while Mapeza is back with his family, the earthquake triggered by his sudden departure is now being felt at his former employers with Chippa United’s main sponsors, the Nelson Mandela Municipality, saying the chaos at the club, was simply unacceptable.

Acting Executive Mayor of the Nelson Mandela Municipality, Marlon Daniels, yesterday issued a stern warning that the club should change the way they do their business where it has become very fashionable for coaches to come and go.

‘‘On behalf of the Nelson Mandela Bay Municipality, I would like to express our serious concern about the recent resignation of Chippa United (coach) Norman Mapeza,’’ Daniels said in a statement.

‘‘Over the past two seasons, we have seen the team frequently changing coaches and senior managers. It was Dan Malesela, Eric Tinkler, Joel Masutha, Clinton Larsen, Duran Francis and now Mapeza, whom we are told decided to resign.

‘‘What worries us most is that all these changes or firing of coaches and managers have been characterised by a lack of visionary leadership, a clumsy management style and an obvious lack of understanding of the business of football.

We believe that this style of management is the reason why the team has found itself fighting relegation every season, including the current season.

‘‘As the main sponsor of the team and a partner who really has the best interest of the team at heart, we call upon the management of Chippa United to shape up.

‘‘Our City has invested a lot of ratepayers’ money into this team. This team carries the dreams and aspirations of young footballers of our city and province. If things continue like this, we might not be lucky this time to survive the relegation axe.’’

It’s the first time the sponsors have censured Chippa United, highlighting the extent of the damage which Mapeza’s sudden departure has inflicted on the club.

When Mapeza joined Chippa United in October last year, The Herald warned the relationship was unlikely to last long with this newspaper describing the team as the ‘‘world’s most chaotic football club.’’

‘‘Norman Mapeza’s management team say their client’s interests have been safeguarded after the trailblazing gaffer took a huge gamble and plunged into the lion’s den, joining the world’s most turbulent football club,’’ this newspaper said in its report.

‘‘The 47-year-old coach agreed to a three-year deal to coach South African Premiership side Chippa United, arguably the most chaotic football club in the world in terms of chopping and changing coaches, with more than 20 coaches having come and gone in the past six years.

‘‘The last coach in charge lasted just TWO games.

‘‘The longest-serving coach, Dan Maselela, was at the club for 402 days in which he took charge of 39 matches while Clinton Larsen, who was sacked this season, is the second longest-serving coach at the team after guiding them to 22 matches in 247 days.’’

One coach had even warned Mapeza to come with a packed suitcase suggesting he would need the clothes for a quick return home.

At least, 20 different coaches have been in charge of Chippa United in the past eight years.

Enacy Mapakame

Business Reporter

One of Zimbabwe’s oldest financial institutions, Standard Chartered Bank, has reiterated it has no plans to exit the country but is rationalising its distribution channels, becoming more digital as it strengthens its position with products suited for the changing market dynamics.

The bank has been working on a branch rationalisation programme across the region and Middle East, which has seen it introducing products and services skewed towards digital banking, as opposed to brick and mortar, in line with global trends.

The implementation of this programme has seen the bank reduce branches across the region. Zimbabwe is left with three branches — one in Bulawayo, another in Avondale, Harare and the third at its headquarters – the Africa Unit Square, also in Harare.

Chief executive Ralph Watungwa, said digitalisation was increasingly taking over and as such, the bank embarked on this programme in response to market needs as well as to provide convenience and efficiency, which was lacking in a physical bank.

“We are not going anywhere, we are here for good,” he said in an interview with The Herald Finance & Business, dispelling speculation the bank could be on its way out of the Zimbabwean market.

“As Standard Chartered Bank, we have been in Zimbabwe for over a century and that makes us part of the Zimbabwean story and will make efforts to continue contributing to this economy. We now know what works and what doesn’t.

“We can only come up with more products and services that enhance convenience and efficiency for our customers as well as play an advisory role that helps them grow, so we are not exiting the Zimbabwe market.

“This is a programme being implemented across the region (Africa and Middle East),” he said.

Mr Watungwa added this was one of the initiatives by the bank to cut operational costs and provide more affordable services to its customers.

The branch rationalisation programme has helped reduce costs by a third and other operational risks and losses from between $150 000 and $700 000 a year to only $12 000 as of 2019.

The banking sector has been affected by erratic power supplies that have been affecting the economy, which resulted in increased overheads.

Operating a physical branch on a generator required about 500 litres of diesel each day, which proved to be unsustainable in an economy also facing fuel shortages, over and above limited foreign currency and inflationary pressures.

Said Mr Watungwa: “Our clients are better off with digital banking than visiting a physical branch, this saves time too.

“The banking sector has been lagging in this digitalisation wave and this is what we are doing now. We have opened over 60 000 branches in people’s pockets and handbags — all you need is a phone to do all your banking.

“Over 70 products that our clients need are now on the tip of their fingers and can access them any
time. The brick and mortar branch is fast losing relevance.”

The implementation of the programme has seen employees being redeployed to other roles such as client advisory services while others have left on a voluntary basis.

Standard Chartered Bank is the oldest financial institution in Zimbabwe, having been established as Standard Bank in 1892.

The current bank was created when Standard Bank merged with Chartered Bank in 1969.

Enacy Mapakame

Business Reporter

One of Zimbabwe’s oldest financial institutions, Standard Chartered Bank, has reiterated it has no plans to exit the country but is rationalising its distribution channels, becoming more digital as it strengthens its position with products suited for the changing market dynamics.

The bank has been working on a branch rationalisation programme across the region and Middle East, which has seen it introducing products and services skewed towards digital banking, as opposed to brick and mortar, in line with global trends.

The implementation of this programme has seen the bank reduce branches across the region. Zimbabwe is left with three branches — one in Bulawayo, another in Avondale, Harare and the third at its headquarters – the Africa Unit Square, also in Harare.

Chief executive Ralph Watungwa, said digitalisation was increasingly taking over and as such, the bank embarked on this programme in response to market needs as well as to provide convenience and efficiency, which was lacking in a physical bank.

“We are not going anywhere, we are here for good,” he said in an interview with The Herald Finance & Business, dispelling speculation the bank could be on its way out of the Zimbabwean market.

“As Standard Chartered Bank, we have been in Zimbabwe for over a century and that makes us part of the Zimbabwean story and will make efforts to continue contributing to this economy. We now know what works and what doesn’t.

“We can only come up with more products and services that enhance convenience and efficiency for our customers as well as play an advisory role that helps them grow, so we are not exiting the Zimbabwe market.

“This is a programme being implemented across the region (Africa and Middle East),” he said.

Mr Watungwa added this was one of the initiatives by the bank to cut operational costs and provide more affordable services to its customers.

The branch rationalisation programme has helped reduce costs by a third and other operational risks and losses from between $150 000 and $700 000 a year to only $12 000 as of 2019.

The banking sector has been affected by erratic power supplies that have been affecting the economy, which resulted in increased overheads.

Operating a physical branch on a generator required about 500 litres of diesel each day, which proved to be unsustainable in an economy also facing fuel shortages, over and above limited foreign currency and inflationary pressures.

Said Mr Watungwa: “Our clients are better off with digital banking than visiting a physical branch, this saves time too.

“The banking sector has been lagging in this digitalisation wave and this is what we are doing now. We have opened over 60 000 branches in people’s pockets and handbags — all you need is a phone to do all your banking.

“Over 70 products that our clients need are now on the tip of their fingers and can access them any
time. The brick and mortar branch is fast losing relevance.”

The implementation of the programme has seen employees being redeployed to other roles such as client advisory services while others have left on a voluntary basis.

Standard Chartered Bank is the oldest financial institution in Zimbabwe, having been established as Standard Bank in 1892.

The current bank was created when Standard Bank merged with Chartered Bank in 1969.

Enacy Mapakame

Business Reporter

One of Zimbabwe’s oldest financial institutions, Standard Chartered Bank, has reiterated it has no plans to exit the country but is rationalising its distribution channels, becoming more digital as it strengthens its position with products suited for the changing market dynamics.

The bank has been working on a branch rationalisation programme across the region and Middle East, which has seen it introducing products and services skewed towards digital banking, as opposed to brick and mortar, in line with global trends.

The implementation of this programme has seen the bank reduce branches across the region. Zimbabwe is left with three branches — one in Bulawayo, another in Avondale, Harare and the third at its headquarters – the Africa Unit Square, also in Harare.

Chief executive Ralph Watungwa, said digitalisation was increasingly taking over and as such, the bank embarked on this programme in response to market needs as well as to provide convenience and efficiency, which was lacking in a physical bank.

“We are not going anywhere, we are here for good,” he said in an interview with The Herald Finance & Business, dispelling speculation the bank could be on its way out of the Zimbabwean market.

“As Standard Chartered Bank, we have been in Zimbabwe for over a century and that makes us part of the Zimbabwean story and will make efforts to continue contributing to this economy. We now know what works and what doesn’t.

“We can only come up with more products and services that enhance convenience and efficiency for our customers as well as play an advisory role that helps them grow, so we are not exiting the Zimbabwe market.

“This is a programme being implemented across the region (Africa and Middle East),” he said.

Mr Watungwa added this was one of the initiatives by the bank to cut operational costs and provide more affordable services to its customers.

The branch rationalisation programme has helped reduce costs by a third and other operational risks and losses from between $150 000 and $700 000 a year to only $12 000 as of 2019.

The banking sector has been affected by erratic power supplies that have been affecting the economy, which resulted in increased overheads.

Operating a physical branch on a generator required about 500 litres of diesel each day, which proved to be unsustainable in an economy also facing fuel shortages, over and above limited foreign currency and inflationary pressures.

Said Mr Watungwa: “Our clients are better off with digital banking than visiting a physical branch, this saves time too.

“The banking sector has been lagging in this digitalisation wave and this is what we are doing now. We have opened over 60 000 branches in people’s pockets and handbags — all you need is a phone to do all your banking.

“Over 70 products that our clients need are now on the tip of their fingers and can access them any
time. The brick and mortar branch is fast losing relevance.”

The implementation of the programme has seen employees being redeployed to other roles such as client advisory services while others have left on a voluntary basis.

Standard Chartered Bank is the oldest financial institution in Zimbabwe, having been established as Standard Bank in 1892.

The current bank was created when Standard Bank merged with Chartered Bank in 1969.