Zim exports fail to meet target – Zimstat

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Zimbabwe’s exports failed to go past the key $3 billion level in 2016 after closing December at $2.83 billion. Total imports for the year were $5.21 billion, subsequently leading to an annual trade deficit of $2.38 billion against $3.29 billion achieved in 2015. Data from Zimstat shows that exports failed to meet the targeted $3.36 billion but were a marginal increase from the $2.7 billion achieved last year.   The country failed to meet the target of the National Trade Policy which was to increase export earnings from $4.3 billion in 2011 to $7 billion in 2016.  – The Herald, 24 January 2017

The Reserve Bank of Zimbabwe (RBZ) redistributed $370 million through the normal banking channels to production companies in the period August to December 2016, out of the $2 billion earned, showing severe foreign currency constraints, which are hampering local producers. Speaking to guests at the inaugural Gold Sector Awards on Friday, RBZ governor, John Mangudya said the remainder of the foreign exchange went to various transactions with a majority gobbled by current transactions through the usage of Visa cards and MasterCard. The economy over the past 5 months to December utilised more than $300 million in current transactions through Visa and MasterCard. – NewsDay, 24 January 2017

Zimbabwe is one of three countries in the region selected to benefit from a $20 million African Development Bank (AfDB) soft commodities facility meant to support farmers improve produce for exports. Malawi and Mozambique will also get funding from the facility meant to provide pre and post shipment finance for soft commodity value chain operations to assist local farmers grow their revenues and produce quality crops for export. A regional firm, Meridian, which focuses on production and supply of various agricultural inputs/outputs through subsidiaries in Malawi, Mozambique, South Africa, Zambia and Zimbabwe, is managing the facility. The company, in which the AfDB has a 20 percent shareholding, employs over 4 200 workers and is one of the Southern African Development Community’s largest commodity aggregators, distributing over 250 000 metric tonnes of goods per annum throughout the region. – The Herald, 24 January 2017

Government will remove royalty fees if gold producers increase output by at least five tonnes, Mines and Mining Development minister Walter Chidakwa has said. Royalty fees on gold are 1% for small scale and 3% for large producers. Chidakwa said there were on-going discussions involving the Gold Mobilisation Technical Committee, Finance minister Patrick Chinamasa and the Reserve Bank of Zimbabwe on how to incentivize gold producers.  The discussions started four weeks ago, he said. He said the government was willing to forgo the royalty fees of about $25 million as the multiplier effect from an increase of gold would allow for such a move. – NewsDay, 24 January 2017

Delta weakened on Thursday with the buyers dictating the trading price. The beverages company closed 1.62% in red at 90.02 cents. The counter is however still trading positive year-to-date with 1.72% gain. We expect downward pressure to persist given the company’s weak trading update released a couple of days ago. Economic fundamentals seem not to be letting up as aggregate demand continues to fall. Cheaper imports also puts pressure on some of the company’s products more so in the soft drinks business. Padenga was, however, on the upside after it gained 2.8% to 16.5 cents. – LES

By |January 24th, 2017|Categories: Company|

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.