RBZ creates fund to facilitate repatriation of ZSE foreign trades

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The government has identified a new investor to revive operations at Zisco. Industry and Commerce Deputy Minister Chiratidzo Mabuwa told Business Chronicle in Bulawayo where she is touring companies that of the six investors one had been identified as suitable to revive operations at Zisco. She said Industry and Commerce Minister Dr Mike Bimha would soon announce the new investor to revive operations at Zisco at the “right” time. “We have prioritised the resuscitation of Zisco Steel notwithstanding all the lessons that we learnt from the previous deal (with Essar Global), which did not come through. Out of the six shortlisted potential investors, we have now identified what we considered as suitable partner. “The partner is an investor from outside the borders of Zimbabwe but it’s premature now for me to make the disclosure, the honourable minister will make an announcement at the right time,” she said. – Chronicle (Online)

TM Pick n Pay says it is looking at expanding its foot print in Zimbabwe to 60 stores. Speaking at the launch of the promotion in Harare, TM Pick n Pay Zimbabwe managing director, Malcolm Mycroft said in Zimbabwe they always have to come up with a plan.TM Pick n Pay says it is looking at expanding its foor print in Zimbabwe to 60 stores. Speaking at the launch of the promotion in Harare, TM Pick n Pay Zimbabwe managing director, Malcolm Mycroft said in Zimbabwe they always have to come up with a plan. “We, as a business have got a robust capex (capital expenditure) plan for the next 18 months, which is good for both of us (TM Pick n Pay and customers),” he said. “I am going to give more retail space, going to have a bigger footprint in the country, going to get the business up to 60 stores in Zimbabwe, we have got a plan. “We have invested in capital and right now we are busy revamping at least five of our stores as we speak.” Mycroft said he would not dwell on the economic climate or liquidity challenges and instead said it was important to come up with a plan. “I am proud to say our business — our shelves are full. There might be a few items out of stock, missing, but in general we are well stocked,” he said. “I know for a fact that there are certain embassies in this country that use my stores as a barometer to see how good or bad things are by just going inside and checking the shelves.” – NewsDay, 3 August 2017

The Reserve Bank of Zimbabwe has negotiated for a $600 million nostro stabilisation from Afreximbank. RBZ Governor John Mangudya said had been granted a $600 mln Nostro stabilization facility by Afreximbank to help with settling of foreign payments.The RBZ chief said as at June the country had a backlog of $75 mln in dividends and proceeds from sales that are owed to foreign investors. Following the maturity and full settlement of the $200 mln initial African Export-Import Bank Trade Backed Securities (Aftrades) on 13 February 2017 and the positive impact it had on the interbank market, the Bank has renewed the facility at an enhanced level of $400 mln for another two years to mature in 2019. Already more than 75% of that amount has been subscribed. – LES

The Zimbabwe Revenue Authority (Zimra) continues to enjoy the benefits of various initiatives it has been implementing to increase revenue collection with gross collection for July surpassing the $286.49 mln target by 11%. Gross collections for July were $302.86 mln, while net collections – after deducting $16.37 mln refunds – were $286.49 mln representing a 6.34% above target. The net collection were also up 16.36% compared to those for July 2016. Zimra said revenue collections for the 7 months from January 2017 were also above the 2016 collections, except for April and June where revenue targets were marginally missed by 6.70% and 2.24%respectively. – The Herald, 3 August 2017

Monetary Policy Statement Highlights

  • The Reserve Bank of Zimbabwe is set to introduce a Zimbabwe Portfolio Investment Fund that is meant to facilitate repatriation of sale proceeds and dividends for foreign investors on the ZSE.
  • Presenting the 2017 Mid Term Monetary Policy Statement RBZ Governor John Mangudya said the fund is with effect from September 1, 2017 and will prioritize sale proceeds for the initial investment, dividends and then capital gains in that order. The funds will be prorated and dispersed on a FIFO basis.
  • To kick start the fund the RBZ is going provide seed capital amounting to $5 mln.
  • Two banks will be in charge of managing the fund.
  • Meanwhile the RBZ is going to extend the export incentive facility with a further $300 million facility from the Afreximbank. This will result in the introduction of more bond notes to take the facility to $500 million.
  • The RBZ reiterated that the multicurrency is here to stay and this will only change if i) the country has a sustainable forex reserve of at least 1 year import cover, ii) when there is a sustainable national budget, iii) when there is consumer and business confidence, iv) when industrial capacity has reached 75% and employment levels have improved. The Apex bank said these conditions are still at very low levels.
  • RBZ is also set to introduce a Savings Bond for individuals, churches, schools etc at an interest rate of 7%. The minimum investment will be $100. This is meant to encourage a savings culture.
  • The bank will give targeted export incentives to manufacturers at above 5%.
  • Those who get Diaspora remittances and choose to receive it in their “digital systems” electronic accounts will get a 10% incentive while those who receive it as cash will continue to get a 3% incentive.
  • Diaspora remittances amounted to $423 mln between 5 May 2016 and June 2017.

In total the country got $4.9 bln from exports between the same period.

 

By |August 3rd, 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.