A few week ago the Zimbabwe Stock Exchange Chairperson Eve Gadzikwa made some very startling revelations. In an interview with the Financial Gazette she said only about 10 of the 74 companies listed on the local bourse were operating at full capacity. She even predicted an ‘industrial Armageddon’ which could see more company closures leading to a rise in unemployment.
AT A few minutes before ten on the morning of August 6th, some two dozen smartly attired men and women slowly assemble on the fourth floor of 101 Union Avenue in downtown Harare. They gather in a small room around a chain of wooden tables waiting for the start of the day’s trading on the Zimbabwe Stock Exchange (ZSE). In
No man is an island, and if the last 30 years of economic history have shown us anything it is that no country is either (metaphorically speaking of course). Globalization is no longer the powerful buzzword it once was – the world is flat, to borrow the title of Thomas Friedman’s 2005 book on the subject, and we all know
The US economy continues to show signs of recovery, and this bodes well for emerging and frontier markets. Federal Reserve Chairman Ben Bernanke announced this week that the central bank was willing to provide a further economic stimulus and is likely to maintain interest rates near zero until late 2014 at the latest. This development, in conjunction with other positive
The risk to banks when they increase lending rates but maintain a short tenure for repayment, is to place the companies they lend to under greater strain. There must be a tipping point when an increase in interest rates beyond some hurdle actually prejudices the bank itself by making default more likely. Of course the interest rate charged to companies
[imageframe lightbox="no" style="none" bordercolor="" bordersize="0px" stylecolor="" align="left" animation_type="0" animation_direction="down" animation_speed="0.1"][/imageframe] The just-ended third quarter has been a rough ride for investors on the ZSE, as well as stock markets globally. A number of analysts have pointed out in recent weeks that Zimbabwe is not immune to the developments occurring in the rest of the world, and this is evident when
The economy appears to be recovering in fits and starts, with different sectors leading the way. A look at the performance of the listed companies on the ZSE provides a glimpse into the economy as a whole, and the factors affecting each sector. Many would have guessed that the retail sector would perform the best this year, rising 35% in
The gold price has soared in recent months over fears of a double dip recession, with investors seeking security in a tangible asset. However, some savvy investors have noticed the effect that the high gold prices will have on gold stocks, and have put their money into mining concerns focused on the precious metal. It’s only logical that as the