GetBucks bullish on bond

Home/Headlines/GetBucks bullish on bond

Listed deposit-taking microfinance firm GetBucks is confident the second tranche of its bond listing, which opened in May to raise $15 mln, will be well received. GetBucks MD Mercy Murevesi said, “The response so far is quite good, most companies have bureaucratic structures and may take long to conclude, but the interest is there. Others have a tendency of doing a last minute rush and want to subscribe on the day it closes. We will confirm the actual uptake when it closes,” she said. A bond is a debt obligation that allows companies or government to raise capital at a fixed interest rate. The GetBucks bond, whose first tranche raised $5.4 mln in April, becomes the first to trade publicly in Zimbabwe in nearly two decades, and is the second opening in a phased $30 mln capital raising drive. The bond has a three-year tenure and a yield of 10.25%. Proceeds will be used to fund the burgeoning SMEs sector, which some estimates say employs 80 percent of the employable population in Southern Africa. – The Sunday Mail, 16 July 2017

Zimbabwe’s retailers are facing a new threat as some companies in the fast-moving consumer goods (FMCG) sector are pushing their products on the streets, bypassing supermarkets and wholesalers in search of the elusive hard cash. As a result, the retailers and wholesalers’ role in the value chain is fast vanishing as manufacturers bypass them to get cash from the street to survive the crippling cash crisis. These products are being sold directly on the streets at discounted prices, a move which may deprive the Zimbabwe Revenue Authority (Zimra). of the much-needed Value Added Tax (VAT). For example, Dairibord’s 1 litre Chimombe fresh milk costs $1 on the streets, while it sells for $1,20 in supermarkets. Dairibord CEO Anthony Mandiwanza confirmed last week that the company was selling its products directly to the consumers at a discounted rate compared to supermarkets. “The van you are referring to is the one we use to sell our products at high traffic places,” he said. “For example, we put a stationary van at state gatherings that will sell our products. They will be retailing lower than credit prices. I have confirmed that at corner Leopold Takawira and Robert Mugabe (in Harare) they park our van there for cash sales. We sell direct to the consumers. However, the Dairibord boss said the practice had been happening for years. – Standard, 16 July 2017

The Zimbabwe Revenue Authority has widened the tax net, registering about 13 000 new small to medium enterprises in the six months to June following a successful collaboration with SMEs and the Ministry of Small and Medium Enterprises and Co-operative Development. SMEs are regarded as Zimbabwe’s new economy and Zimra offered a moratorium to SMEs in collaboration with the SMEs ministry which expired on June 30. Zimra, however, said a “lot more businesses are not tax compliant and Zimra will continue widening the tax net”. In a presentation on Re-Igniting SMEs Development in Zimbabwe through Digital Payments Programmes last week Reserve Bank of Zimbabwe deputy director for Financial Markets –National Payment Systems Josephat Mutepfa said 39% of MSMEs are served by informal financial service providers. Furthermore, only 18% are served by formal financial institutions such as banks and micro finance institutions and 43% do not have access to financial services. – The Herald, 17 July 2017

The Zimbabwe National Tourism Master Plan (ZNTMP) has found that the three major airports in the country, in Harare, Bulawayo and Victoria Falls are underexploited by nearly 75% despite millions of dollars being spent refurbishing them. Combined, these three airports should handle at least 5.4 mln passengers, but only handle 1.42 mln. The ZNTMP, which was released last Thursday, found the passenger volumes were low despite refurbishments made at the Victoria Falls Airport, upgrades at the Harare International Airport and JM Nkomo International Airport in Bulawayo. – NewsDay, 17 July 2017

Construction of the multi-million 1 000km-long 400-kilovolt power line from Mozambique through Zimbabwe to South Africa, a major integral part of the Southern African Power Pool (Sapp), is expected to start anytime soon. In Zimbabwe, the line will link Mutare and Beitbridge via Chiredzi and Mwenezi, where a number of sub-stations will be built on its path. Villagers with homes along the planned line route, which will be 60 metres wide, will be relocated and fully compensation. A senior Zimbabwe Electricity Transmission and Distribution Company official on Thursday said the project, dubbed Mozisa, after the first two letters of the names of the three States involved, will create many downstream jobs for locals.  – NewsDay, 15 July 2017

By |July 17th, 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.