Messina Investments to pay 46 cents for CFI

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BAT reported its half year results for the half year ended 30 June 2017, showing a 22% increase in earnings per share to 22 cents from 18 cents prior comparative. The Group declared an interim dividend of 22 cents, an increase of 22% from what was declared prior year comparative.Total revenue amounted to $16.7 million, a 0.5% reduction from prior year as consumers down traded towards value brands.Total sales volumes grew by 0.2%, spurred by the growth of the low-priced segment brand, Ascot.  The mismatch between revenue decline and sales growth was a result of change in sales mix towards value brands with Ascot the major beneficiary growing volumes by 278%. – LES

Messina Investments today issued a statement to shareholders of CFI Holdings offering to buy their shares at 46 cents per share, higher than the 22 cents being offered, through a mandatory offer by Stalap Investments. – The Herald, 27 July 2017

One more reason why cash shortages in nostro accounts is worsening. We are importing more electricity.

Zimbabwe’s electricity imports rose 260 percent last year as the power utility, Zesa Holdings, moved to avert shortages and cuts, which would have crippled business and industrial operations. Zimbabwe’s commercial power users, including miners, manufacturers and farmers consumed nearly 70 percent of electricity sold last year, according to statistics from Zesa. The country imported 2 600 gigawatt hours of power up from 626,4 GWh purchased in 2015, the figures availed by the management to the group’s AGM show. The value of imports increased to $220 million from about $40,6 million a year earlier. Zesa imports power from regional utilities including Hydro Cahorra Bassa of Mozambique and Eskom of South Africa to cover local supply gaps due to limited capacity. Zimbabwe requires an average of 1 400 megawatts against an average generation of 1 000MW. Power exports decreased by 61,3 percent from 916,2GWh due to constrained local generation. The Reserve Bank allocates $5 million per month to Zesa to import electricity but has been failing to fully provide the money due to the prevailing foreign currency shortages. – The Herald, 27 July 2017 

The Zimbabwe Mining Development Corporation has appointed Demand Gwatinetsa as the general manager who is expected to spearhead the turnaround of the group. ZMDC is a mining entity with a statutory mandate to invest in Zimbabwe’s mining sector. It is also charged with co-ordinating and implementing mining development projects on behalf of the State. Gwatinetsa, a former executive with Hwange Colliery Company Limited, is expected to start his official duties on August 1 this year, sources familiar with the matter said. He is taking over from Gerald Simango, who was dismissed last year alongside other two senior executives for alleged incompetence that saw them failing to turnaround the company despite holding some of “best mining” assets in the country. – The Herald, 27 July 2017 

Meanwhile Mines minister Walter Chidhakwa as reported by the NewsDay, 27 July 2017 says 3,000 workers lost their jobs when government stopped mining operations at Chiadzwa to pave way for the Consolidated Diamond Company. The new company is however currently employing 1,000 people and is expected to have empoyed 1,700 by year end. – NewsDay, 27 July 2017

Reserve Bank of Zimbabwe (RBZ) governor says he is worried about the creation of money through the issuance of Treasury Bills and loans which is causing a mismatch between local RTGS balances and nostro accounts balances. RBZ governor John Mangudya said banks have $1,5 billion in terms of RTGS balances against $350 million cash, adding that the country was creating money through an overdraft. – NewsDay, 27 July 2017

Finance and Economic Development minister, Patrick Chinamasa says Zimbabwe has raised funds to clear $1.7 billion international arrears, but will implement economic reforms first to avoid defaulting again. Zimbabwe has been unable to access fresh credit from global funders after defaulting on its debt at the turn of the century. The country’s long-term economic recovery prospects rest on far-reaching economic reforms, including balancing its primary fiscal accounts, improving the investment climate and restoring confidence in the financial sector. – Fingaz, 27 July 2017 

Industrial Development Corporation (IDC) general manager Mr Mike Ndudzo has been appointed Auditor-General, taking over from Mrs Mildred Chiri who is stepping down following the expiry of her tenure. Ndudzo was appointed by President Mugabe in terms of Section 310 (1) of the Constitution. The section says the Auditor-General is appointed by the President with the approval of Parliament. Finance and Economic Development Minister Patrick Chinamasa made the announcement in the National Assembly yesterday while moving a motion seeking Parliament’s approval for Mr Ndudzo’s appointment. The approval was duly granted.  Ndudzo has been at the helm of IDC since 1991. – The Herald, 27 July 2017 

By |July 27th, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.