Colcom issues cautionary

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Colcom today published a further cautionary statement relating to the Innscor’s intention to extend an offer to minority shareholders for the purchase of their Colcom shares in exchange for Innscor shares. It is also the intention of the company to apply for a voluntary delisting in terms of Section 1 of the ZSE Listing Requirements. – The Herald, 11 July 2017

Zimbabwe’s special economic zones will attract foreign investments worth $10 billion in the next 2 years, the newly appointed SEZ board chairman Dr Gideon Gono has said. The former Reserve Bank of Zimbabwe governor said the SEZ Act provided “so much protection” to investors and this would help spur foreign investment. Zimbabwe received $391 million worth of foreign investments Dr Gono emphasised that licensed SEZ investors would be exempted from having to comply with laws such as the Indigenisation and Empowerment Act, which requires foreign owned companies to hold not more than 49 percent stake in local businesses. The Government has identified Sunway City in Ruwa, Bulawayo and Victoria Falls as designated SEZ locations to initially focus on. – The Herald, 11 July 2017

 The Insurance and Pension Commission (Ipec) says the proposed Insurance Bill, set to harmonise the Insurance and Pensions Commission Act with the Insurance Act and the Pensions as well as the Provident Funds Act, is set to be tabled before Parliament soon. Ipec commissioner Tendai Karonga told NewsDay recently that the regulatory framework will protect policyholders and investors. The commissioner said audited financial results for insurance players should be submitted to IPEC by June 30 annually, with errant firms fined in terms of section 30 of the Insurance Act (Chapter 24:07) for insurance companies and section 37 of the Insurance Act for insurance brokers. Karonga said Circular 1 of 2011, which was effected after the commission noticed that some market players were quoting premium rates below minimum agreed rates. – NewsDay, 11 July 2017

International Monetary Fund (IMF) mission chief on Zimbabwe, Ana Lucia Coronel, has expressed concern that growth in bond notes discounts in the parallel sector would increase inflation, which will impact on the supply of certain goods and services. Speaking via satellite conferencing on Friday, Coronel said although the discounts have been relatively stable for some time, they have already caused an increase in inflation. Coronel said there would be a need for limiting the sources of financing the deficit which requires going through fiscal adjustment. In the recently released IMF Article IV consultations on Zimbabwe, bond notes are trading at a 5 to 7% discount vis-à-vis the US dollar, and electronic balances reportedly exchange at a 15 to 20% discounts and continue to grow. – NewsDay, 11 July 2017

President Mugabe’s decision to stop the expropriation of Tongaat Hulett’s sugarcane fields in the Lowveld was influenced by diplomatic pressure from South Africa’s government, analysts have said. This comes after hundreds of illegal settlers invaded sugar estates owned by the Zimbabwe units of South Africa’s Tongaat Hulett. Mugabe ordered police to remove about 600 families who had moved onto sugar estates owned by Tongaat’s Hippo Valley Estates and Triangle Sugar in southern-eastern Zimbabwe. – DailyNews, 11 July 2017

By |July 11th, 2017|Categories: Headlines|

About the Author:

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.