Bh24 23 july 2014

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<ul><li> News Update as @ 1530 hours, Wednesday 23 2014 Feedback: By Oliver Kazunga Senior Busi- ness Reporter CABINET has approved strategies aimed at promoting value addition and beneficiation in the mining sec- tor to grow the economy in line with the Zimbabwe Agenda for Sustaina- ble Socio-economic Transformation (Zim-Asset). Addressing delegates at the ongoing 2014 Mine Entra Conference in Bula- wayo, Mines and Mining Development Minister, Walter Chidhakwa said in order to drive the economy forward Cabinet agreed to prioritise value addition and beneficiation in the dia- mond sector, implementing the coal- bed methane gas project in Lupane, as well as promoting mineral benefi- ciation on resources such as iron ore, chrome, coal, and nickel deposits. In Cabinet yesterday (Tuesday) we agreed that we institute and imple- ment the three. We cannot continue exporting our rough diamonds with- out value addition but to sell polished diamonds. Over the last two months, we have been looking at negotiations with investors for our diamonds. We are looking at the possibility of trading diamonds for value addition. We know there are people (foreign market) that have the experience for manufacturing jewellery and exten- sive marketing of jewellery, we want to sell to you our diamonds; we must have a foot print to say a certain percentage is going as polished dia- monds; a certain percentage is also going out as Zimbabwe jewellery. Let me assure you that we have done a sufficient amount of work in that regard, he said. He said the second area that Govern- ment was prioritising was the coal- bed methane gas project in Lupane. We have started pumping of the gas out of Lupane, a true historical moment....the gas will be used for the production of energy and ferti- lizer. We also see the significant develop- ment of petrol-chemical industry as we purify the gas, he said, adding that the third area of focus was nat- ural resources such as chrome, coal and nickel deposits. As Government forges ahead with value addition and beneficiation, he said the ban on raw chrome export would be kept in place. He said Government was also looking at restructuring his ministry as well as computerising systems to elimi- nate corruption as well as improving efficiency and mineral output. Chronicle. Cabinet approves value addition strategy Minister Chidhakwa </li> <li> BH24 </li> <li> 3 NEWS By Sifelani Tsiko Listed beverages concern, Delta Cor- poration, is reportedly pressing ahead to close 15 customer collection depots (CCDs) as part of strategies to contain costs and rationalise operations. Sources said this move is likely to lead to hundreds of job losses. This comes as the beverage makers lager and soft drinks volumes fell 21 and 8 percent respectively for the first quarter ending June 2014. However, sorghum beer volumes increased 15 percent as hard pressed consumers resorted to the cheaper opaque beer brands. At least 15 CCDs have been closed in Harare and other parts of the country because of the tight business environ- ment. Jobs are being lost and we sim- plydontknowwhatsgoingtohappen, a source said Delta Corporation company secretary Alex Makamure could neither confirm nor deny the closure of the depots. The company has over the years intensified direct deliveries to custom- ers to improve service and have face to face contact with our retail part- ners. This will invariably result in the throughputatsomeoftheCCDsreduc- ing to unsustainable levels. We therefore review each business unit periodically based on viability, seasonal business trends, customer service and other parameters, including adjust- ments to opening hours. We have no programme for a whole- sale closure of depots, he said in a response Delta has a total of 35 depots country- wide, which act as either customer col- lection depots or distribution centres. The tight liquidity conditions prevailing in the country has hit beer retailers and consumers hardest, resulting in reduced demand for beer at the cus- tomer collection depots. Consumer demand remains depressed in line with prevailing sub- dued economic performance. The stretched consumer is now focusing on value for money products, the com- pany said in its Q1 trading update. The companys earnings have been on a decline after it recorded a 9 percent decline for the full year to March 2014. Delta controls about 96 percent of the beer market and about 92 percent of the sparkling beverages in the country. Delta in depot closures? </li> <li> BH24 </li> <li> 5 NEWS By Rumbidzayi Zinyuke Zimbabwes dairy industry is beginning to show signs of recovery after raw milkproductionforthefirsthalfof2014 went up marginally as the availability of stock feed as well as the number of heifers in the country increase. Production was depressed in the first quarter as producers struggled with a shortage of stock feed exacerbated by the stifling economic situation. Regional dairy officer Addmore Wan- iwa last month said the availability of harvested crop had positively impacted on affordability of stock feed and this would positively affect milk production in the first half and going forward. Figures released by the Dairy Services Department in the Ministry of Agri- culture, Mechanisation and Irrigation reveals that production for the six months to June was 26,7 million litres. This was 1 percent higher than the same period last year. Retailers took up 23,9 million litres dur- ing the period under review up from 23,8 million in the same period last year. Milk retailed by producers totalled 2,8 million litres as compared to 2,6 million litres last year. On a month-on-month basis, produc- tion for June was 3,52 percent up at 4,5 million from 4,3 million litres last year. The countrys dairy industry has been struggling and this has resulted in dairy companies failing to meet national demand of 120 million litres per annum. Last year, producers failed to meet the production targets of 70 million litres after recording 54,6 million litres of milk down from 55,9 million litres in the previous year. The dairy industry is currently oper- ating at 45 percent capacity with an estimated 223 registered dairy opera- tors and a dairy herd of about 26 000 animals. At its peak in 1999, Zimbabwe pro- duced over 150 million litres of milk annually and was exporting into the region and beyond. First half milk production marginally up </li> <li> BH24 </li> <li> By Lynn Murahwa Banking giant Cabs says it will seek to raise at least $70 million dollars in lines of credit by the end of the year from its mortgage securitisation deal. Speaking at the launch of the banks new look, managing director Kevin Terry said the group will raise $50 million by the end of this month with hopes of acquiring a further $20 mil- lion by the end of the year. "By the end of this month we will have access to over $50 million dol- lars in lines of credit and by the year end we hope to access a further $20 million in terms of a mortgage securi- tisation deal we are currently working on, he said. He said the money would be chan- nelled toward the banks housing schemes and other Terry said Cabs was working on launching a Visa MasterCard in the future in line with the groups new vision. "We started a Visa MasterCard pro- ject that will be operating on the Zimswitch network in the near future, we started up our mobile banking unit 'Textacash' which we originally con- ceived as an entry into the unbanked informal sector but we discovered that it subsequently migrated into our traditional customer base," he said. He added that the group will also be launching a mobile phone application at the end of the month to maintain convenience and ease of accessibility. "We will be launching a mobile Smart- phone app at the end of this month to continue this journey to making banking more convenient and more accessible. This is a new beginning for Cabs, we have many new beginnings in life and this is just one," said Terry. He also said the new look by Cabs will be implemented in all its branches starting this September. "Now the time has come and we have a new brand and soon a new look in our branches, the first of those will roll out in September and there will be a gradual rollout throughout the rest of our branch networks over the next couple of years," said Terry. 7 NEWS CABS to raise $70 million lines of credit </li> <li> BH24 </li> <li> AdM-DI156506- BH24 </li> <li> By Funny Hudzerema Communal and A1 resettlement farm- ers dominated this years tobacco deliveries raking in more than half of the $671,5 million realised from the sale of the golden leaf to date. According to latest statistics from the Tobacco Industry Marketing Board, more than 17 000 auction tobacco farmers brought in their crop from the communal areas across Zimbabwe and another 21 562 delivered the con- tracted crop from the same areas. Communal farmers sold tobacco worth $169,2 million this season while A1 resettlementfarmersdeliveredtobacco worth $148.3 million. Over 31 000 A1 farmers delivered their crop to auction floors. TIMB said approximately 9 300 A2 farmers brought in 64 million kilo- grammes of the golden leaf worth $254 million while 7 189 small scale commercial farmers delivered 23,9 million kgs of tobacco worth $71,3 mil- lion. The marketing season ended last month with almost 50 million kg sold through auction, more than 160 million kgs worth $535 million was accounted for by contract sale which continues until end of August. This years average prices have been lower at $3,17 from $3,69 last season. Despite the higher prices of contracted crop at $3,32, the auction crop fetched a significantly lower price of $2,69. Indications, according to experts, are that most of the countrys tobacco pro- duction will continue to be sold under contract as growers are unable to fund their operations 10 AGRICULTURE Communal farmers dominate tobacco deliveries </li> <li> The equity market was back in the red today dipping 0,13 percent despite six counters trading in the positive and only one trading in the negative. The Industrial index lost 0.25 points to close at 185.61 points as retail giant OK dropped 0.99 cents to trade at 16 cents. Gains were recorded in cement maker Larfage which recovered 5 cents to trade at 60 cents and ZB Financial Holdings which added 2 cents to close at 6 cents. Econet was up a cent to trade at 74 cents and ZPI rose by 0.05 cents to settle at 0.85 cents. The Mining index went up 1.80 points to close at 59.24 points as Bindura gained 0.20 cents to 4.80 cents. Falgold , Hwange and RioZim were unchanged at previous trading levels. . BH24 Reporter 11 ZSE REVIEW Equity markets back in the red </li> <li> SPECIALISTS IN DRIVESHAFTS AND PROPSHAFTS, STEERING RACKS, BALL JOINTS, DRAGLINKS, TIE ROD ENDS, CV JOINTS, TRANSMISSIONS, UNIVERSAL JOINTS, FLANGES, BEARINGS, BUSHES, YOKES, GENERAL ENGINEERING, BELL SPARES, AIR BRAKES AND PNUEMATICS, SUPPLY AND SERVICE EXCHANGE FOR COMPLETE AXLES, ENGINES AND GEARBOXES. NATIONAL PROPSHAFTS CENTRE No. 17033 CEDORA ROAD, P.O. BOX GT 1244, GRANITESIDE, HARARE, ZIMBABWE. Website: TEL: 770638-43, 086 4406 8386 CELL: 0772 470665, 0712 204396, 086 44068386, 0712 749578 Email: MUTARE PROPSHAFTS CENTRE 12 A RIVERSIDE DRIVE P.O.BOX 1869, MUTARE, ZIMBABWE Website: Tel: 66084, 086 4406 8385, Fax: 68597 Cell: 0712 204396, 0772 715388, 0773 782502 Email:, BELL DIFFS COMPRESSORS UNIVERSAL JOINTS TA 1919 PUMPS, WATER PLATES &amp; DOUBLE BOSH PUMPS MT643 TRANSMISSIONS STEERING COUPLINGS FOOT BRAKE &amp; VALVESCENTRE BEARINGS PROPSHAFTS SPARES SPIDER BEARINGS BOOSTERS PROPSHAFT COUPLINGS PROPSHAFTS &amp; DRIVE SHAFTS TRACK RODS &amp; DRAGLINKS BH24 </li> <li> Dairy products are one of the strate- gic commodities in the economy of Zimbabwe, since they are not only a major consumer item but also a main source of farm income and employ- ment in various parts of the country. But milk production has been failing to meet demand as the industry grapples with a myriad of challenges brought about by a challenging economic sit- uation. The dairy industry is currently oper- ating at 45 percent capacity with an estimated 223 registered dairy oper- ators. At its peak in 1999, Zimbabwe produced over 150 million litres of milk annually and was exporting into the region and beyond but now we are a net importer of milk and milk prod- ucts. Last year production was 54,6 million litres, a figure far less than the tar- geted 70 million litres which still falls short of the national demand of 120 million litres per annum. The low supply of raw milk is contrib- uting to the high import bill as dairy companies import whole powdered milk to supplement. Although production went slightly up in the first half of 2014 to 26,7 million, the figures are still too low to cover the shortfall by year end. So we are still stuck with a huge import bill for milk and its products. But really, are imports the best solu- tion we can come up with? Zimbabwe already has a huge import bill without adding things like milk to it. Government should put in place measures to eliminate the need to import milk. We have our dairy farm- ers who only need to be capacitated to increase their production. Nestle and Dairiboard have been proactive in increasing the national herd by importing heifers. Dairiboard has many outgrower schemes for its dairy cows especially in Chipinge where their sterilised milk plant is. The move to increase the national herd by importing heifers has contributed to the increased the number of milking cows and subsequently the increase in milk production. The heifer importation scheme is expected to provide an additional four percent of raw milk per month. Although we applaud their initiatives, we feel there is more to be done. The price of local milk and milk prod- ucts is higher than that of imports. This should be addressed as soon as possible. The short-term response of milk out- put to prices will be mainly in the form of yield increases. If the big proces- sors can support the small scale farm- ers, yield will invariably increase and [prices will go down. Government should also work on pol- icies that make dairy farming in Zim- babwe more...</li></ul>