OK Zimbabwe gets new CEO

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OK Zimbabwe Limited chief executive Willard Zireva is set to step down on March 31 this year after serving the leading supermarket chain for over three decades. OK Zimbabwe finance director Alex Siyavora will become the chief executive with effect from April 1 this year, said Zireva in internal memo to staff announcing his departure.   “The remuneration committee of the OK Zimbabwe Limited board of directors has confirmed Alex Edgar Siyavora as my successor in the position of chief executive for the company with effect from 1st April 2017,” read part of the memo. – The Herald, 1 February 2017

The government has imposed a 15% VAT on all meat products and cereals, in a move likely to trigger a sharp increase in the prices of most basic foodstuffs, as retailers are likely to pass the cost to end users. The new tax regime, which becomes effective today, was introduced by Finance minister Patrick Chinamasa under Statutory Instrument 20 of 2017 and affects all meat products, including offals and fish, rice, maheu and margarine. Previously products such as rice, fish and meat were exempt from the 15% VAT, which has largely made the prices of these basic commodities relatively cheap and affordable for low income earners. – The Herald, 1 February 2017

Zimplat’s revenue for the quarter increased by 41% from the previous quarter largely due to the 70% increase in 4E metal sales volumes which was partly offset by lower metal prices.  Operating costs increased by 44% in comparison to the previous quarter due largely to the higher sales volumes.This was partly offset by the reversal of impairment on a long term receivable of $13 mln. Royalties were 39% higher than the previous quarter, in line with the increase in revenue.Local spend in Zimbabwe (excluding payments to government and related institutions) for the quarter increased from $27 mln recorded in the previous quarter to $61m. Total payments to government in direct and indirect taxes increased from $8 mln reported in the previous quarter to $11m. The company recorded a $20 mln profit in the three months to December 2016, compared to $1.8 mln loss in the quarter to December 2015. – Fin24 (Online)

Heavy rains being experienced countrywide have resulted in prolonged tobacco curing and false ripening which is threatening the quality of the crop, the Tobacco Industry and Marketing Board has said. TIMB’s weekly update shows that the rains have caused leaching and water logging problems in tobacco growing areas and this has resulted in false ripening. “Humid conditions have also prolonged tobacco curing periods. Some cases of hail were also reported in Mashonaland West and this can affect yields,” said TIMB in a statement. – The Herald, 1 February 2017

Zimbabwe into the company’s debt account with Afreximbank.Econet Global Limited, who were the guarantors of the foreign debt which amounts to $128.19 million, will underwrite the transaction. Sandura said it had been resolved that Global was a related party, as the majority shareholder of the telecoms company, and therefore should not participate in the voting process. “In the meeting yesterday (Monday), we instituted that management should write to Econet advising them that Global is a related party and should not participate when the matter is put to the vote.” She also said that there were also items put forward that had been made condition precedent. As was moved on this service last night, the telecoms operator has to make exchange control approvals a condition precedent before shareholders can vote. “We maintain that there are certain things that must be done and people should be told before a meeting is held. If certain conditions are not met, then no meeting should be convened.” However, the discussion over Econet’s $130 million rights issue and debenture sale is still ongoing amid reports that the Securities and Exchange Commission of Zimbabwe is holding a meeting this afternoon with the Zimbabwe Stock Exchange to give its deliberations on the matter. Sandura said more meetings were in the pipeline over the Econet issue and the main objective is to make sure that minority shareholder’s interests are well protected. – Financial Express (Online)

London-listed junior miner Vast Resources says it has agreed to sell nearly half of its shares in its Pickstone-Peerless gold mine in Zimbabwe to a Mauritian investment company for $4 million to minimise exposure to economic uncertainty in the country, including the possible impact of bond notes.Vast, previously known as African Consolidated Resources (AFCR), owns 50 percent of the Chegutu mine, with the other half being controlled by Grayfox Investments, a consortium of Zimbabwean investors.Vast chairman Brian Moritz said the introduction of bond notes — a quasi-Zimbawean currency that trades at par with the greenback, proposed new mining taxation and the required forfeiture of mining claims to the state had necessitated the exit from Zimbabwe.SSCG Africa Holdings (SSA) will acquire a 49,99 percent non-controlling interest of Vast’s shareholding.“We are deleveraging our exposure to Zimbabwe……I do believe however that retaining a foothold in Zimbabwe to ensure we are “on the ground” when conditions improve in the country is a sensible approach, particularly when there is little risk to do so, with limited obligations to provide further capital,” Moritz said in a statement.Under the agreement with SSA, Vast will also receive a $4 million loan payable in four years at 12 percent interest rate from the Mauritian investment company. – The Source (Online)

By |February 1st, 2017|Categories: Headlines, OKZ|

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.