BY MTHANDAZO NYONI

ZIMBABWE has good quality products that can compete internationally, but the challenge is that local businesses are not well capacitated to satisfy global demand, a new research has revealed.

In its latest research, ZimTrade, the national trade development and promotion organisation, noted that local companies were struggling to make inroads into the global market due to lack of capacity.

“Without doubt, Zimbabwe is home to some of the best quality products that are recognised around the world. Products such as Mazoe Orange Crush, Tanganda Tea and many others have carved a mark in the global export market,” ZimTrade said.

“From formal exporting channels to “suitcase” mode of exporting – where an individual carries a few items as they travel to bring family and friends, locally-produced products have been used around the world, with feedback that Zimbabwean products are competitive,” it said.

In regional countries such as Zambia and Botswana and further afield in England and the Unites States of America, a sizable number of buyers testified to having procured Zimbabwean products.

“The comment is always the same, Zimbabwean products are of good quality and can compete with products from any country.”

But researches done by ZimTrade have indicated that in most cases, local businesses were not well capacitated, leaving customers wondering what happened to the good Zimbabwean product they had gotten used to.

“Thus, it is important for local exporters to understand market requirements and make the necessary arrangements to ensure that they meet demand and have enough distribution reserve in order to increase brand visibility,” ZimTrade said.

“Before engaging with any market, it is important for local companies to understand leverage points for successful market penetration.”

Local businesses are weighed down by a plethora of challenges, chief among them obsolete machinery, shortage of foreign currency for retooling, lack of long-term funding and power cuts, among others.

As a result, manufacturing sector capacity utilisation is sitting at 48%, according to the Confederation of Zimbabwe Industries 2018 survey, and is projected to drop to about 30% this year due to negative macro-economic factors.

ZimTrade said there were opportunities for local businesses in countries such as United Arab Emirates (UAE), Botswana, Zambia, United Kingdom, Mozambique, Democratic Republic of Congo and Namibia among others. For instance, the consumption of fruits, vegetables and meat products in the UAE is growing which, therefore, presents opportunities for Zimbabwean products.

There is also a market for canned fruit and fruit-based products, cabbages, potatoes, citrus and leaf and stem vegetables. ZimTrade said Botswana presents a ready market for fast-moving consumer goods such as dairy products, confectionaries, condiments and cordials, while the Democratic Republic of Congo offers opportunities in the insurance industry which is still in the infancy stage.

“The information technology and banking are other service industries that local players can consider. Opportunities in the banking sector include automation technology and electronic banking facilities; investment and asset management; and accounting and tax consultancy,” ZimTrade said.

The Namibian economy offers opportunities for Zimbabwe to supply products and services in the mining, tourism, fishing, manufacturing and agriculture sectors.

“Zimbabwean firms can export services such as engineering, surveying, instrumentation, transport, plant maintenance, environmental management and artisanal services to the Namibian mining sector,” ZimTrade noted.

There are also opportunities in the tourism industry. ZimTrade said the exit of the United Kingdom from the European Union presents a huge opportunity for Zimbabwe to grow its trade relations with the UK.

Over the years, the United Kingdom has been one of the major source markets and export destinations for Zimbabwean products in the European Union.

“Local products with potential export growth in the UK largely consist in the organic food market with products such as dried fruits and vegetables, fresh fruits and vegetables, among others,” the export promotion body said.

“Organic products have a premium price of about 30% more than other products and could prove profitable to many local producers as this is also a more than billion-dollar business in the UK.”

The Zambian economy also offers opportunities in the mining sector for supplies and services.

Winstone Antonio

THE collapse of the once popular weekly jam session that was commonly known as KaMonday Kanenge Friday, held at City Sports Bar in Harare, appears to have further stifled the country’s untapped music talent.

The jam session used to provide emerging talents a platform to hone and showcase their skills on stage. Female artistes, including Ammie Jamanda and Diana Samkange, at one time, performed at the Jam Session.

Award-winning music promoter Biggie Chinoperekwei of Devine Assignment had come up with the noble idea for budding musicians across genres to showcase their talent, while giving a new lease of life to many “forgotten” musicians at a time some music promoters and venue owners had been targeting seasoned and established artistes to leverage their businesses.

The jam session had become popular on the showbiz scene, with music fanatics gracing the weekly event to see their favourite artistes on stage.

Apart from the performing artistes, the event would also attract arts promoters and stakeholders in the creative sector, according them the opportunity to spot talents.

The music industry has always been considered not to be rosy for upcoming artistes, because they perpetually struggle to get the much-needed exposure that comes with performing at live concerts, and sharing the stage with seasoned performers.

The event had become a “perfect” rendezvous for those arts enthusiasts. There is no doubt the platform would definitely be missed, not only by artistes, but many others.

While it must be appreciated that music promoters are also feeling the heat of the economic meltdown, it is however, a bitter pill to swallow for those artistes who used to perform at the jam session as they struggle to find a “new home” to showcase their talents.

There are suggestions that this could be the right time for the upcoming artistes and female artistes to join hands and take the ball out of the promoters’ hands and try something else on their own.

Many artistes are on record complaining that they are getting peanuts from music promoters, but there is very little they have done to come up with their own initiatives that would wean them from the promoter dependent syndrome.

But if they are to start something, they should come up with initiatives that really market their brands, a total shift from how some used to do business at the jam session.

Also, at the back of their minds, they must remember to really shine when given the opportunity. They must present their potential to the people and not blow away the opportunity by performing cover versions of either departed or surviving music legends or popular international artistes.

Yes, it’s understandable that some rising artistes might not have a catalogue of songs that can last their accorded time at a concert, however, with the few songs they have, they must try at least to sell their own brands to the potential investors and promoters.

Sadly, last year at the Only the Divas Concert organised by music promotions and marketing organisation Jive at Padziva in Harare, both the seasoned and rising female artistes instead of promoting their own music they resorted to cover versions.

This was a great and exclusive opportunity for the female artistes to prove their prowess at a show, where everything was put at their disposal so that they could shine at a time music promoters were being accused of discriminating against female musicians.

Most local female musicians, if not all, have expressed unhappiness over what they termed discriminatory tendencies by male promoters and their bias towards male performers. But sadly, when accorded the opportunity some female musicians decide not to impress and leave footprints for further engagements.

As a recommendation, musicians should try to be pro-active and move from the traditional way of doing business whereby they wait to be paid by the promoter.

BY FIDELITY MHLANGA

THE Zimbabwe Revenue Authority (Zimra) is cracking the whip on officers suspected of prejudicing the taxman millions of dollars in potential revenue, in the wake of reports of an elaborate illegal vehicle importation scandal that has rocked the entity, NewsDay Business has learnt.

This comes following reports by our sister paper, The Standard, that a syndicate comprising the tax authority’s employees and car dealers had manipulated tax clearance systems to fraudulently import 200 top of the range vehicles.

The vehicle importation scam, orchestrated by the syndicate was fuelled through the manipulation of the tax authority’s manual customs clearance systems.

Zimra officials are under fire for facilitating the illegal importation of cars and in some cases, smuggling. It is also alleged that prominent individuals and businesses were benefitting from the illicit activity.

Sources said Zimra has undertaken massive recruitment in the ICT department to plug off the haemorrhage.

This was linked to adverts for numerous ICT posts announced by the taxman over the weekend. Some of the crucial posts set to be filled include customs systems support analyst, data warehouse analyst, taxes systems support analyst and SAP support analyst, among others.

The tax authority told NewsDay Business it has started identifying culprits and heads will roll, with some cases currently before the courts.

“Yes, we have managed to identify the culprits and yes, heads will roll. In addition, we will invoke our code of conduct to determine their fate over and above allowing the cases to go through our courts. Some of the cases have already appeared before the courts,” Zimra said in a statement.

The taxman admitted some of its scandalous employees had resigned, while others were now on the run.

“Yes, admittedly, some of our staff members are involved in the scam, however, our crusade against corruption has revealed that members of the public and other parties are involved.
Already, some employees have tendered in their resignations, which does not stop the legal process, while some are on the run,” Zimra said.

A fortnight ago, a Zimra official Tecklar Ndlovu (55) appeared before Plumtree magistrate Sharon Rosemani charged with three counts of fraud.

It is alleged that she was a member of a syndicate that smuggled vehicles worth millions of dollars into the country through Plumtree Border Post.

The smuggled vehicles include Toyota Land Cruisers, Toyota Fortuners and Hummers.

Ndlovu was not asked to plead and was remanded to October 24 on $1 000 bail.

Her alleged accomplice, Semukelwe Maphosa, is still at large.

BY MTHANDAZO NYONI

CALEDONIA Mining Corporation Plc (Caledonia) has commended power utility Zesa for pricing electricity in United States dollars for the mining industry, saying the move had stabilised power supply.

Electricity for the mining industry is now priced in US dollars, at a cost which is slightly lower than the pricing structure prior to the recent monetary devaluation.

The electricity supply authorities have also implemented an uninterrupted power supply agreement for the mining industry in an effort to support the sector and electricity supply has stabilised following these changes.

“The disruptions we experienced early in the third quarter necessitated a larger than normal utilisation of our diesel generator back-up. We have been pleased by the rapid and decisive response from both government and industry which has resulted in the alleviation of the supply shortages and a more stable US dollar-based pricing structure,” Caledonia chief executive officer Steve Curtis said.

The Zimbabwe Energy Regulatory Authority recently approved a 320% electricity tariff increase to 162,16 cents per kilowatt hour (kWh).

Caledonia, which operates Blanket Mine in Zimbabwe, said its mining concern continues to operate normally and electricity pricing in US dollar terms was stable and not affected by the recently-announced increases.

“As previously disclosed, Blanket did experience electricity disruptions during the month of July and in early August and relied heavily on its installed diesel generator back-up capacity. Prior to this time, Blanket had installed back-up generator capacity of approximately 12,5 megawatts (MW), sufficient to run the entire mine at full capacity but insufficient to sustain both the mine and the Central Shaft project,” it said.

In response to the increased risk of electricity supply outages Blanket has purchased an additional 6 MW of diesel generator capacity.

The additional generators are on site and are currently being installed and are expected to be operational within this month after which Blanket’s operations will be fully insulated from the risk of unstable electricity supply, it said.

Caledonia is also in the advanced stages of evaluating a project to install solar photovoltaic generating capacity at Blanket to further reduce dependence on the electricity grid, reduce operating costs and ensure a more environmentally sustainable electricity supply.

It said advanced engineering work is underway and Caledonia is in the process of applying for the relevant regulatory approvals and will shortly embark on a tender process from interested parties to build and operate the project.

“Caledonia expects to fund the project itself, but the tender process will also invite proposals from potential funders who may be able to offer a more cost-effective funding structure,” it said.

“In the future, Caledonia anticipates that Blanket will have a blended electricity supply from grid, solar and back-up diesel generators which will deliver greater levels of operational reliability, lower operating costs and improved environmental sustainability,” the statement read in part.

Caledonia has a 49% stake in Blanket gold mine.

BY STEPHEN CHADENGA

THE Local Government ministry is yet to approve Gweru City Council’s proposed mid-year supplementary budget, a situation that has left the local authority unable to provide effective service delivery, a senior council official has said.

Presenting the council’s state of affairs to the Zimbabwe National Defence University students who were on a study tour, acting finance director, Owen Masimba said: “We did a supplementary budget which hasn’t been approved by the parent ministry which means the technical imbalance continues to manifest and we fail to deliver meaningful service to residents.

“Currently we require about $6 million a month to meet our financial obligations, but we are collecting an average $2,4 million out of an average monthly billing of $3,8 million.”

In June, council proposed a $79 million supplementary budget up from the original $46 million that was adopted earlier this year saying the plan approved by government in February had been eroded by currency distortions and inflation.

The local authority argued then that the $46 million 2019 budget was now underfunded by 67% after government departed from its stance that the bond note was trading at par with the United States dollar.

Speaking at a full council meeting last week, mayor Josiah Makombe revealed that Local Government minister July Moyo had told him that it would be difficult for the council to have its budgets approved if it fails to provide updated financial statements.

Recently, council said it was auditing its 2017 books, but a service level benchmarking peer review committee last year revealed that Gweru last audited its accounts in 2014, a situation that compromises good corporate governance.

BY Tafadzwa Mhlanga/MISHMA CHAKANYUKA

GOVERNMENT has been urged to promote domestic tourism by placing arts and crafts niche markets in the limelight.

Speaking at the Five One Five Luxury Tours and partners product launch in Harare yesterday, Environment, Tourism and Hospitality Industry secretary Munesushe Munodawafa in a speech read on his behalf by Enivah Mutsau said government should introduce polices to improve the visual arts in particular.

“We need the government to come up with a policy that boosts the arts industry, particularly visual arts. I appeal to the corporate world and the government to help me with resources to train the young artists, so that we leave a legacy for them. There is need to train fresh blood,” Munodawafa said.

He said the initiative would provide an interface between artists and tourists as they come to see the developed products.

Exclusive arts tourism will also boost the amount of revenue coming from the tourism sector, which will help in the development of the country.

Five One Five Luxury Tours and partners launched a tourism product called Exclusive Art Tourism, aimed at promoting tourism diversification through incorporating arts and crafts.

The safari operator offers transport services on designated routes, private hire and tours. It has engaged artists from different galleries, including Gallery Delta, The Shona Sculpture, Verandah, Dendera, Silverbox Jewellery and the National Handicraft Centre.

“The drive by Five One Five Luxury Tours is a robust move that will see further promotion of township tourism, which is currently a niche market we are also targeting. This initiative will give our people who are into arts and crafts the much-needed recognition and furthermore enable them to establish a rallying point for the promotion of their wares,” Munodawafa said.

“Communities that invest in public arts in the ‘tourism product’ that is the place and its residents will see a compounding dividend, enhancing civic pride, while also generating significant new tourism revenue.”

BY MISHMA CHAKANYUKA

BORDER Timbers Limited (BTL), posted a 80% increase in revenue to $38,4 million in the 12 months ended June 30, 2019, driven by better average selling prices on timber.

The increase was from a 2018 figure of $21,3 million.

“Revenue saw positive improvement compared to prior comparable period mostly driven by better average selling prices (ASP) on lumber,” the company’s judicial manager, Peter Bailey, said in the group’s trading update.

During the period, BTL’s net loss before tax widened to $12,9 million from $340 696 recorded in the previous year, owing to unrealised exchange loss on a foreign loan.

“Loss for the year is mainly driven by unrealised exchange loss on a foreign loan, the unrealised exchange loss amounts to $24,15 million,” Bailey said.

Bailey said both lumber production and sales volumes were down 11% and 5%, respectively due to incessant power cuts and Cyclone Idai effects.

“Lumber production decreased to 55 800 cubic metres from 62 519 cubic metres while sales declined to 57 595 cubic metres from 60 566 cubic metres. Lumber production is lower compared to the same period prior year due to low production in the months of December 2018 to April 2019 at the Charter Sawmill caused mainly by the general power outages and Cyclone Idai’s devastating effects that occurred on March 15, 2019,” he said.

“The knock-on effect of the cyclone resulted in the Charter Sawmill resuming operations in the first week of May 2019, thereby negatively affecting both production and sales into the market as the road infrastructure was decimated. The incessant power outages, especially in the month of June 2019 negatively affected production at the Sheba Sawmill, thereby exacerbating full year production with the knock-on effect affecting sales volume.”

Treated poles sales volumes declined from 16 952 cubic metres to 14 551 cubic metres during the period.

Poles produced amounted to 12 647 cubic metres in 2019, down from 16 488 cubic metres recorded in prior year.

“Treated poles reflect a decline in both production and sales as they are mostly tender-based and there has been a general slowdown in the export markets, hence low production compared to comparable period June 2018,” Bailey said.

He said the company’s exit from judicial management was being delayed by the settlement and sharing of the US$25 million that was awarded to the company by an International Centre for Settlement of Investment Disputes (ICSID) tribunal.

“As referred to in the trading update for the 11 months to May 2019, the company was awarded approximately US$125 million (in addition to interest plus legal costs) by an ICSID tribunal,” Bailey said.

“Although the award is final and binding, there is currently no clarity around the government’s timetable for settlement and how the award will be shared between the company and the other claimants. The exit of the company from judicial management is delayed as a result of this.”

The company was placed under judicial management in 2016 after failing to service debts to several financial institutions.

BY SHARON SIBINDI

The Environmental Management Agency (EMA) has expressed concern over sand poaching activities around Bulawayo which have left outlying areas with unreclaimed pits that pose a danger to residents.

EMA said the most affected areas were Cowdray Park, Pumula suburbs and council’s Mazwi Farm.

Speaking to Southern Eye, EMA provincial manager for Bulawayo Metropolitan province, Decent Ndlovu said illegal sand abstraction was now rampant in the city.

“We still have a very big problem, as illegal sand extraction has not scaled down. People buy from these sand poachers because it is cheaper to buy from them as they will be charging half the price,” he said.

“This becomes a serious problem, especially during the rainy season, water collects in (the pits created by sand poachers), then you find cases of children and even adults drowning in these open pits that are not filled up after the sand extraction.”

Ndlovu said people were reluctant to expose the poachers.

“What these poachers do is unacceptable and we need to change that and these poachers are known, but some people are scared to name and shame them,” he said.

“We also appeal to residents to buy from licenced people so as to reduce poaching and we also feel the Zimbabwe Republic Police can assist us in arresting these people. We cannot operate in a vacuum, but if they are arrested or legal action is taken, the better.

“We cannot enforce without armed people. For example, council has rangers helping out and whoever we get hold of we will name and shame like what we did in the solid waste management.”

Last year, EMA said anyone caught digging or transporting sand illegally would be fined up to $5 000 or face one-year imprisonment.

BY SILAS NKALA

WOMEN’S rights lobby group, Women’s Academy for Leadership and Political Excellence (Walpe) has expressed concern over the deepening economic and political crisis which it says is taking a toll on women and girls.

In its latest report released on Monday, Walpe said since the elections in July 2018, the country has been on an accelerated descent into the abyss as multiple crises in the political and socio-economic spheres continue to unravel.

“It is women and girls, who are hurting the most from these national crises which have seen a total breakdown in the social contract and all other service sectors which are crucial to the livelihoods and rights of women and girls,” the Walpe report read.

“The political and economic crisis has led to serious human rights abuses. On August 1, 2018, six civilians were shot dead by alleged army officials and one of them was a woman, Silvia Maphosa.”

Walpe indicated that the January 2019 crackdown was heavy on women and the Zimbabwe Human Rights NGO Forum recorded 17 cases of rape of women by alleged State security forces during this period.

The organisation said the dire situation was corroborated by the Zimbabwe Human Rights Commission (ZHRC) which noted in its report that there was a “heavy crackdown characterised by indiscriminate and severe beatings”.

“Since January 2019, a number of women human rights defenders, artists and journalists have also been targeted in attacks by alleged State security agents. Key examples are the women leaders who were part of seven human rights activists who were arrested and charged with treason in May 2019 for attending a peace-building and human rights workshop in Maldives,” Walpe reported.

“These are Walpe director, Sitabile Dewa, Femprist director Rita Nyampinga and activist Farirai Gumbonzvanda. An artist with a local comedy outfit (Bustop TV), Samantha “Gonyeti” Kureya was abducted from her home on August 21, 2019 by suspected State agents, tortured and left for dead in a sewer swamp in Harare. Recently, on October 19, a young female journalist, Ruvimbo Muchenje, with a local media company (Alpha Media Holdings) was brutally assaulted by the police in Harare’s central business district, while going to work.”

Walpe said: “Further, there is no action towards the setting up of a body to investigate abuses by State security forces as set out in Section 210 of the Constitution of Zimbabwe.”

Walpe also added that the health sector weighs heavily on women, some of them dying during child birth or have to care for the sick who are not being treated in hospitals.

The dire water situation in urban areas and power cuts place women in grave danger of rape and sexual harassment while fetching water and firewood, Walpe reported.

“The Zimbabwean crisis bears the face of a woman and we have suffered enough. It’s time there is genuine and inclusive dialogue to provide a soft landing for women. The national inclusive dialogue process must incorporate women in all key decision-making platforms as their voices are important for any way forward and such a process must not be an elite pact,” Walpe said.

BY PATRICIA SIBANDA

A 37-YEAR-OLD refugee from Mozambique, Barbara Nyamunda, has narrated the horror of not having national identification documents since she arrived as a child at Zimbabwe’s Tongogara Refugee Camp in 1984. This was at the height of a war between the Mozambican government and Renamo rebels back home.

Consequently, her children are also undocumented.

Nyamunda made the revelations while testifying before the Zimbabwe Human Rights Commission (ZHRC) inquiry in Bulawayo on Monday.

She said her failure to obtain a birth certificate and identity card forced her into early marriage, which resulted in her bearing children who also do not have national documents.

Nyamunda said she did Grade Seven and failed to proceed with her education because her parents had separated and they never had a chance to help her get identification documents.

“My parents and I escaped from Mozambique to Zimbabwe during the Renamo war when I was two years, to live at Tongogara Refugee Camp. I attended school up to Grade Seven and when they asked for my documents, I failed to produce them. I had to stay at home because they told me I could not proceed with school,” she said.

Nyamunda said she was forced into marriage at a tender age because she could not continue with school.

“I married my husband when I was very young because of lack of documentation . . . I think I was only 16 when I moved in with him,” she said.

She also spoke about her husband trying to help her talk to her parents concerning her identity documents, but they spurned his requests because he had not paid dowry.

“When my husband tried to talk to my parents, they chased him away because they claimed that he had not paid lobola . . . so whenever he tried they would tell him to go away,” she said.

Nyamunda said her husband later took off and told her that he could not stay with someone without IDs.

“I no longer stay with my husband after he left me because of my failure to attain even a birth certificate for myself. He left me with five children who, just like me, have not attended school because they cannot get birth certificates,” she said.

She said her problems were compounded after her parents died during Cyclone Idai in March this year.

ZHRC chairperson Elasto Mugwadi said birth certificates were only issued to aliens’ children if both parents are citizens of Zimbabwe.

Mugwadi advised Nyamunda to visit the Mozambican embassy in Harare for documentation.

“You can go to the Mozambican embassy in Harare and explain yourself to the Refugees Commissioner, but I urge you to go to Tongogara and get your parents’ details first. I am quite sure they have records there concerning them,” Mugwadi said.

He also urged her to ensure her children also get documentation.

Bulawayo provincial registrar, Jane Peters said people do not check registration laws to see what was required of them to become registered citizens.

“Because of lack of knowledge, people grow up in Zimbabwe thinking that they are entitled to have the Zimbabwean documents. In my own perception, if people could observe the child registration laws . . . us as the registration arm of government we do not charge any money for children to get documentation,” Peters said.