Bulls n Bears Investors Notebook Issue 187:12 October 2018

Fri Oct 12 08:41:11 CAT 2018

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Bulls n Bears Investors Notebook Issue 187:12 October 2018

 <http://www.nicozdiamond.co.zw/> 

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

Relations are all about: Winning, Losing & Sharing.
Winning Trust, Losing ego

Bank accounts hit six million 

Zimbabwe's financial sector now boasts of over six million bank accounts
reflecting the rise in the uptake of digital payment systems or transactions
by industry and commerce after the introduction of the multi-currency regime
in 2009. Gone are the days when people used to do transactions without
formal banking platforms as evidenced by the rise in the rate at which
Zimbabweans are embracing digital payment systems. The youths, females,
students, corporates, institutions like schools and hospitals among others
have also not been spared from harnessing the digital economy. Despite the
high costs of transactions arising from bank charges, limitations on access
to cash has also seen industry and households resorting to electronic
methods that can be settled through bank accounts.
<http://www.bulls.co.zw/> Read more >

NetOne In Talks With South Africa's Telkom

NetOne, Zimbabwe's second largest mobile operator, has opened talks with
South African telecoms firm Telkom on a possible joint venture. NetOne is
one of 35 state-owned enterprises that have been put up for partial or full
privatisation by Government, which is seeking to prune some of its
loss-making firms. Government announced in the Transitional Stabilisation
Programme announced by Finance Minister Mthuli Ncube last Friday that
Cabinet had approved for NetOne to start negotiations on a joint venture
agreement with Telkom. Speaking at Chatham House in London on Monday, Ncube
said he has set a deadline of six to nine months to complete the
privatisation of state firms. Previously, Telkom had shown interest in a
deal with TelOne. In 2010, another South African firm, MTN, abandoned an
attempt to take over 51 percent of NetOne.  <http://www.bulls.co.zw/> Read
more >

 <http://www.firstmutualproperties.co.zw/> 

For more business & financial updates log onto <http://www.bulls.co.zw/>
www.bulls.co.zw

US firm inks $1bn investment deal   

AN  American company, Hondius Capital Management, yesterday signed a $1
billion investment partnership with the Infrastructure Development Bank of
Zimbabwe (IDBZ), with a view to bankrolling Zimbabwe's mining and
infrastructural development projects. The firm, which is headquartered in
New York, will mobilise funding for the projects in partnership with
Zimbabwe in terms of the agreement. Zimbabwe signed the partnership after a
due diligence exercise that confirmed the financial capacity of Hondius
Capital. Speaking at the signing ceremony in Harare yesterday, chairperson
of the One-Stop Investment Services Centre (OSISC) Dr Washington Mbizvo said
the project would benefit Zimbabwe a great deal.  <http://www.bulls.co.zw/>
Read more >

Zimbabwe businesses rejects bond note

PANICKY retailers and suppliers yesterday started rejecting the surrogate
bond note currency or electronic transfers after its value collapsed on
Zimbabwe's active black market, demanding, instead, to be paid in United
States dollars as government threatened to withdraw licences in a bid to
restore order. People mill at the entrance of the KFC Joina City branch in
Harare, which closed down business yesterday citing a tough operating
environmentSeveral companies and retailers closed shop over fears of a
buyers run using electronic payments as panicky consumers rushed to hoard,
while the cost of restocking would require payment in US dollar, laying bare
the currency distortions in the economy. Despite reintroducing foreign
currency accounts (FCAs) in last week's monetary policy announcement,
authorities maintained that bond notes and electronic transfers were at par
with the US dollars, despite trading at a premium of 260% on the black
market.  <http://www.bulls.co.zw/> Read more >

Enough fuel stocks: Govt   

THE country has enough fuel stocks to last months and provisions are in
place to keep imports pouring in, the Minister of Energy and Power
Development, Dr Joram Gumbo, said yesterday. Dr Gumbo blamed some fuel
suppliers for creating artificial shortages by holding onto the commodity
for speculative purposes in order to profiteer while panic buying was also
fuelling the crisis in the country. Speaking to The Chronicle on the
sidelines of the Mining, Engineering and Transport Expo (Mine Entra) at the
Zimbabwe International Exhibition Centre in Bulawayo, Dr Gumbo said more
fuel was being pumped from Beira.  <http://www.bulls.co.zw/> Read more >

Black market rates tumble   

PARALLEL market rates plummeted in Bulawayo yesterday after Government
guaranteed the 1:1 convertibility value of Real Time Gross Settlement (RTGS)
balances into the United States dollar as well as availability of the
greenback for Nostro foreign currency accounts. US$100 which was being
exchanged for as much as $600 on Wednesday evening, plummeted to as low as
$160 by 7PM last night. The trend is expected to continue today with the
rate expected to self correct to the pre-monetary policy levels. Illegal
forex dealers who spoke to The Chronicle said the drastic changes came soon
after the Ministry of Finance and Economic Development announced that RTGS
balances would be at par with the US dollar.  <http://www.bulls.co.zw/> Read
more >

Govt targets $1bn offshore for mining

Government is seeking to mobilise at least $1 billion offshore for a quick
rebooting exercise of the country's mining sector under the Transitional
Stabilisation Programme spelt out by Finance and Economic Development
Minister Professor Mthuli Ncube recently. The new dispensation, which has
placed economic revival on top of its to-do list, has identified mining as
one of the key sectors that should kick-start recovery after years of
regression in the previous dispensation. The sector, according to
Government's economic revival blueprint, needs over $11 billion in
investments for greenfield and brownfield projects and this will see the
re-opening of closed mines, expansion of mines currently operating below
capacity, opening of new mines as well as mineral beneficiation and value
addition. But before the major investment an initial $1 billion is required.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Delta H2 revenue rises 37 percent . . . Records high lager sales . . .
Demand due to post-election spending

Zimbabwe's largest beer maker, Delta Corporation, recorded 37 percent growth
in revenue in six months to September this year driven by strong lager beer
volumes. In a trading update on Wednesday, Delta that is 40 percent owned by
Anheuser-Busch Inbev, said beer volumes grew by a record 54 percent in the
first half. Half-year results are expected to be published on November 8.
"Consumer demand has been firm due to increased economic activity in the
mining and agriculture, expansionary fiscal and monetary and post-election
related spending," said Delta. Sorghum beer volumes rose 2 percent while
soft drinks grew by 3 percent due to shortages of raw materials resulting in
extended periods of production stoppages. Delta's Zambian unit, National
Breweries recorded volume growth of 13 percent.  <http://www.bulls.co.zw/>
Read more >

Zimra ponders new tax structure for SMEs

The Zimbabwe Revenue Authority (Zimra) is making representations to Treasury
to review the tax structure for small and micro enterprises, the tax
collector's commissioner-general Faith Mazani said this week. Within the
Zimbabwean economic milieu, SMEs are typically defined as small or
medium-sized business ventures in any sector of the economy. These include
small and medium companies, co-operatives, sole traders and the informal
traders. According to ZIMRA, the operations of SMEs may give rise to
obligations for any or all of the following taxes: Presumptive Tax, Income
Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), Withholding Tax (WHT),
among others. This has resulted in numerous small businesses failing to meet
their tax obligations.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

SA automobile firm to set up plant in Zim . . . Firm specialises in
catalytic converters . . . Platinum is the main component

Zimbabwe has opened high level discussions with a major, but unnamed South
African automobile parts producing company, which is interested in setting
up a catalytic converters manufacturing plant in the country, according to
Mines and Mining Development Minister Winston Chitando. This comes as the
Government is also working on a grand scheme of growing the mining sector
from the current $3 billion to $12 billion industry by 2023, and expand its
contribution towards attaining President Mnangagwa's Vision 2030, of
transforming Zimbabwe into a middle income country with per capita income of
above $3 500. Government has designated mining, which accounts for an
estimated 12-16 percent of Zimbabwe's Gross Domestic Product (GDP), to drive
short to medium growth of the domestic economy. Zimbabwe is home to more
than 40 of the world's top minerals, including gold, platinum, chrome,
diamond, nickel and coal.  <http://www.bulls.co.zw/> Read more >

Zim bailout beyond arrears clearance . . . Zidera a major stumbling block .
. . Need for robust, fiscal and monetary reforms

Zimbabwe's chances of accessing financial bailout are not only limited to
arrears clearance to the international financial institutions amid
indications the ongoing re-engagement efforts by the Government might be
scuttled by continued existence of the Zimbabwe Democracy and Economic
Recovery Act (ZIDERA), well-placed sources have said. It also emerged  that
comprehensive and consistent package of policies for sustainable inclusive
growth remain critical to unlock fresh funding for Harare. This comes as
Zimbabwe's external arrears continue mounting with the country owing $2,1
billion to international financial institutions and a further $3,3 billion
from bilateral arrangements. In total the country's external debt amounts to
$8,8 billion with $5,6 billion in arrears. But for the country to clear the
arrears, it will also have to convince the US to remove ZIDERA, which even
after arrears clearance will still be a stumbling block to provide funding
to the southern African state.  <http://www.bulls.co.zw/> Read more >

Outrage as fertiliser prices spike   

The 2018 /19 agricultural season is looking bleak as prices of fertiliser
have drastically shot up beyond the reach of many, farmer organisations
warned yesterday.  The farmers have not been spared from the current wave of
price hikes and would suffer the brunt of the ongoing adverse pricing
environment.  In the past few days, Zimbabwe experienced a spike in prices
of basic goods such as cooking oil and flour following a recent directive by
Reserve Bank allowing banks to separate accounts for local money circulating
in the banking system and foreign currency accounts. Fertiliser producers
have since described the spike in prices as wild and confusing.
<http://www.bulls.co.zw/> Read more >

Chinese firm gets iron ore mining rights   

GOVERNMENT has granted Chinese stainless steel giant Tsingshan a special
grant to iron ore mining rights in an area around Chivhu, Mashonaland East
Province, to enable the company to set up a stainless steel manufacturing
plant, Mines and Mining Development Minister Winston Chitando said. The
development would require significant increase in key feed stock minerals
namely iron ore, nickel and coal. Fortunately, this comes amid an investor
stampede, which will make capital available to expand output. Minister
Chitando, speaking during his official opening address at Mine Entra 2018,
said the Chinese firm had already begun conducting feasibility studies into
the possibility of the stainless steel project. This follows a framework
agreement Government signed with Tsingshan in June this year.
<http://www.bulls.co.zw/> Read more >

Mining sector records strong performance   

ZIMBABWE's mining sector has recorded exceptionally strong performance in
the first eight months of this year, but prospects for further stellar
performance over the remainder of the year are being threatened by a few
challenges. Chamber of Mines of Zimbabwe (CoMZ) chief executive Isaac Kwesu
told delegates at this year's edition of Mine Entra gathering of the most
influential stakeholders in mining, infrastructure and transport - that most
key minerals had performed well so far. However, ongoing shortage of foreign
currency, working capital and rising production input costs have led to
fears that strong gains posted in the first eight to nine months of the year
could be negated if no immediate measures are taken to resolve the
challenges.  <http://www.bulls.co.zw/> Read more >

Zim imports 90% of mining requirements: minister

NEARLY 90% of raw materials and consumables used by the mining sector are
being sourced offshore, an indication that the local manufacturing sector is
in the doldrums, Industry and Commerce deputy minister, Rajeshakumart Modi
has said. Addressing delegates attending the Mining Industry Suppliers Forum
held in Bulawayo on Wednesday, Modi said the local manufacturing industry
was failing to satisfy demands of the mining sector. "I am informed that the
mining sector is a key industry, contributing approximately 8% to the
country's gross domestic product. There is potential for local manufacturers
to supply mining equipment and raw materials such as conveyor belts, hoses,
grinders, crushers, explosives and prospective clothing," Modi said.
<http://www.bulls.co.zw/> Read more >

Delta raps govt on currency policy

BEVERAGE manufacturer, Delta Corporation has urged government to engage with
stakeholders before major policy pronouncements to maintain market
confidence. Delta, the second largest company by market capitalisation on
the Zimbabwe Stock Exchange after Econet Wireless, said latest policy
pronouncements by the central bank were contrary to its earlier promises.
"Post the end of the reporting period, the fiscal and monetary policy
pronouncements have been dampened by the currency policy statements which
seem to contradict the previous undertakings by the Reserve Bank of Zimbabwe
on the multicurrency framework," Delta company secretary Alex Makamure said
in the company's trading update for the half year to September 30 released
yesterday.  <http://www.bulls.co.zw/> Read more > 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

NicozDiamond

Ariston

Barclays

Dawn

Unifreight

Hwange

RTG

Post your event (AGM, EGM, Analysts Briefing, etc) on the Investor Diary
free of charge and reach out to the market. We have annual gold prices since
1900, monthly since January 1971 and daily prices since January 2000. We
also provide historical ZSE prices on request.

DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls 'n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

Invest Wisely!

Bulls n Bears 

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