ZPI’s executives take 30% pay cut as income drops

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Zimre Property Investments rental income in the year to May decline 15% to $1.17 million on the back of downward reviews on rentals and increased voids. Stands sales at $740 000 were 10% below prior year.  ZPIs average portfolio void rate per annum was at 26% compared to 23% in 2016. Other income was down 2% at $200,000 bringing total income for the five month period to $2.11 million compared to $2.40 million in 2016, a 12% decline. Building and project costs went up 14% to $829 000 due to increased maintenance and vacations as the group ends up assuming the costs after evictions or voluntary space surrenders. Personnel costs were down 9% to $467 000  after the group made a downward review of salaries. Managing director Edson Muvingi said the company’s executive had taken a 30% salary cut while middle management received a 25% cut. Lower level employee got a 20% cut.  Consequently, operating profit declined 43% to $468 000 compared to $819 000. The company is also planning to retrench more employees this July. The company is looking at other ways of cutting personnel costs such as vehicle expenses. – LES

The Postal and Telecommunications Authority of Zimbabwe is evaluating local data charges and major cost drivers amid indications the cost of data in Zimbabwe is too high.POTRAZ director general Dr Gift Machengete said that the ongoing assessment was part of regular exercises by the regulator to ascertain state of the industry. A research done by Research ICT Africa last year and submitted to the Parliament of South Africa, established that Zimbabwe had the third most expensive mobile data in Africa with the cheapest monthly 1GB data package in the country set at $30. Reports indicated that the two most expensive monthly bundles in Africa were South Sudan at $90,83 and Swaziland $30,33. (Listed entity Econet operates in this space) – The Herald, 21 June 2017

Zimbabwe recorded its highest gold deliveries in the year to date, after May produced about two tonnes compared to 1,6 tonnes in January..Latest statistics from Fidelity Printers, the sole gold buyer since 2015, show that in May primary producers and small-scale miners had a combined delivery of 1 920,3 kilogrammes. Of that figure, deliveries by primary producers were the highest at 1 045,3kg while small-scale miners delivered 875,9kg. – The Herald, 21 June 2017

A two-tier black market system has emerged outside most Grain Marketing Board (GMB) depots countrywide where grain rejected for moisture content in excess of the accepted 12,5 percent threshold ends up being sold. This has also resulted in grain produced under Command Agriculture and the Presidential Inputs Support Scheme being sold on the black market for a song. Farmers contracted under Command Agriculture are expected to pay for the inputs from part of their produce through a stop order facility after delivering to GMB. However, with some farmers already selling grain on the black market, it remains to be seen if they will be able to pay for the inputs. Some GMB officials are reportedly turning farmers away so that they sell their grain to black marketers out of desperation. These will then sell the grain to GMB at a profit, while farmers are left counting their losses as they have to choose between selling it outside or paying more for a return trip to dry it. Farmers are paying transporters between $30 and $1 000 per trip, depending on distance and the load. – The Herald, 21 June 2017

By |June 21st, 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.