ountry needs between US$2,5 billion and $3 billion a year to turnaround around the economy.
Gono’s stunning revelations corroborated oral evidence by small-scale miners to a portfolio committee last month that there was rampant smuggling of minerals by influential politicians.
Gono said the little foreign currency raised was being used to import other basic commodities, such as maize and wheat, as well as settling debts inherited from previous governors.
Merkel condemns crackdown
The European Union (EU) has condemned the Zimbabwean government for intensified crackdown on its perceived enemies and called on the country’s neighbours to assist Zimbabwe’s “suffering” citizens.
Addressing the France-Africa Summit recently in France, the president of the European Union Council, Germany’s Chancellor Angela Merkel, expressed deep concern over the socio-political climate prevailing in Zimbabwe. She said the on-going intimidation of political opponents, harassment, threats against farmers and even destruction of poor people’s homes was not justified in any way.
“I therefore appeal also to Zimbabwe’s neighbours to join us in doing as much as we possibly can to help the suffering people there,” Merkel said.
OM declares dividend
Cash-rich Old Mutual plc, the parent company of Old Mutual (Zimbabwe), has declared a 4,15 pence (Z$21) a share dividend for the year ended December 31 2006 to bring the full dividend to 6,25 pence (Z$31) a share. Old Mutual said an unfavourable currency translation impacted on earnings, but a strong financial position enabled the group to declare a final dividend increase of 13,7%.
Trade in Old Mutual shares cum-dividend on the Namibia, Malawi, South Africa and Zimbabwe exchanges ends on May 4 and on May 7 on the London and Stockholm stock exchanges.
After May 7 the Old Mutual shares will trade ex-dividend on the all the four African exchanges and on the London and Stockholm bourses.
The group said shareholders on the South Africa, Zimbabwe and Malawi branch and the Malawi section of the principal register would be paid the local currency equivalents of the dividend through country trust arrangements. Shareholders of the group who hold shares through VPC AB, the Swedish nominee, will be paid the equivalent of their dividend in Swedish kronor. The dividend declaration rides on the back of a sterling performance by the group in the full year to December 2006.
Barclays network expands
Barclays Zimbabwe is set to roll out a massive expansion programme that will see it increasing its branch network across the country to make banking more convenient.
This is part of Barclays Africa’s initiative to further improve its foothold on the African continent and increase its share of the market. It currently has 26 branches in Zimbabwe.
Barclays managing director Charity Jinya said the expansion programme was set to place the financial institution as the leading bank in the country.
Z$2 billion profit
Construction firm Murray & Roberts (Zimbabwe) Ltd reported a Z$2,1 billion profit before tax in its interim results for the half-year ended December 31, 2006 up 1 041% from $181 million previous year. In a statement accompanying the group financial result, the construction giant posted a turnover of $6,6 billion increasing 1 050% from $580 million in 2005.
Net cash inflow for the period was $624 million up from $11 million while basic EPS increased from $0,61 to $6,88. Overheads went up by 893% during review period. Interest earned was $225 billion.
Total assets increased 3 419% to $23 billion from $13,7 billion. CEO Canada Malunga said the company had a secured order book totalling $9 billion of which 60% is in foreign currency.
Growth for Colcom
Colcom Holdings Ltd registered a Z$15, 6 billion turnover in the half year ended December 31, 2006 up 2 633% from $570 million same period last year. The pork processor’s profit before tax went up 4 572% to $14,5 billion.
Basic EPS increased 4 145% to $63,68 while net cash inflow was $1,3 billion. The company declared an interim dividend of $5,20 payable out of the profits of the company for the year ended June 30, 2007.
Brand refreshment
Kingdom Financial Holdings Ltd has refreshed its brand to best suit its growth in line with strategic intent, as well as local and international trends.
The Kingdom crown has been simplified for easier application and reproduction, housed in a frame or box, which represents the security and care of a treasured asset by the custodians.
Other changes include a lighter green that depicts vivacity, warmth and life. Gold has been dropped from the overall brand to give prominence the new green.
The company also has a new positioning statement: beyond tomorrow – speaking of forward thinking, future growth and staying power. Research demonstrates that branding constitutes 68% of the customers experience with a company.
Profits up for BAT
British American Tobacco announced has announced a 7.3% increase in net profits last year, bolstered by rising sales in Asia and South America.
The manufacturer unveiled plans to increase returns to investors through higher dividend payouts and a larger share buy-back programme.
The news was welcomed by the market, with the share price soaring 3,49% to 1 603,0p in morning trade. The FTSE rebounded 0,93% to 6 228,.80 points following recent heavy losses.
Net profit increased to £1,9bn in 2006, compared with the previous year, BAT said in an official earnings release. Sales rose by 4,7% to £9,8bn. BAT also raised its 2006 dividend payout by a greater-than-expected 19% to 55.90p per share and signalled further increases this year and next.
Meanwhile, the group’s current annual £500m share buyback programme will rise to £750m from this year. The company stressed that it could be suspended in the event of a “significant acquisition.” “The balance sheet is very strong and we think we’re in a position to step up returns to shareholders,” BAT said.
Massive Econet expansion
Econet Wireless is planning to bring into service about 55 base stations in the next two months as part of its US$20 million expansion programme. The exercise will also see the company raising its subscriber base to 800 000, company spokesperson Sure Kamhunga said.
“We plan to bring another 55 base stations into service in the next two months, bringing to an end the current expansion programme worth US$20 million to raise capacity to 800 000 subscribers,” he said. Econet has been progressively installing base stations across the country since it embarked on the project.
Sixty have been put up between December 2006 and February 2007 alone, giving a total of 290 in service countrywide. In addition to the new base stations, the company has doubled the capacity of all existing base stations in the country over the last six months in response to a rapidly expanding subscriber base.
“The new installations have brought service to thousands of people across the country with many of them receiving service from Econet for the first time,” said Kamhunga.
Celsys swoop
Communications and information technology group Celsys is ready to swoop on two companies which will bring valuable technical expertise to the group and increase its product offering in the IT sector.
In its financial statement for the year ended December 31 2006, the group said: “Management is at an advanced stage of talks with two potential acquisitions which, though small, will bring on board valuable technical expertise to the group and increase our product offering in the IT sector.”
In the period under review, interest income from contracts amounted to Z$2,082 billion from a debtor’s base of about $680 million in June last year. However, there are a number of internal structural changes in the cellphone division, which negatively impacted on the volume of cellphone sales during the period. As a result, cellphone sales dropped by 67% over the comparative period.
On Celsys Print, the company said demand for recharge cards and cheques remained high while volumes increased by 54% and 27% respectively.
Price controls destroy business
Zimbabwe’s foreign currency shortage has seen businesses driven to the “parallel market” in search of the hard cash to pay for imports or raw materials.
In the hopes of stopping a currency freefall, the Reserve Bank (RBZ) has fixed the exchange rate at US $1 to Z$250, but shortages have seen the parallel rate fluctuate at over $6,500 for US $1 over the last fortnight.
Economists day government’s move to force companies to surrender half their foreign exchange earnings to the RBZ will destroy businesses and drive the parallel market onto the street corner.
Post published in: Economy