Bulls n Bears Investors Notebook Issue 120:19 October 2018

Fri Oct 19 09:29:32 CAT 2018

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Bulls n Bears Investors Notebook Issue 120:19 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

AirZim, ZimAirways to merge

DEBT-RIDDEN Air Zimbabwe's new administrator Grant Thornton has been
assigned the task of merging Air Zimbabwe and controversial carrier Zimbabwe
Airways within the next six months. Transport minister Joel Biggie Matiza
has also tasked the administrator Reggie Saruchera with turning around the
airline within that timeframe by, among other objectives, re-opening
international routes and scouting for partnerships, the Zimbabwe Independent
can report. Matiza met the administrator and management last week where he
emphasised that a quick turnaround of the perennial loss maker was
essential. Officials who attended the meeting said he directed the
administrator to reschedule the parastatal's foreign debt and rationalise
operations within 182 days.  <http://www.bulls.co.zw/> Read more >

Oil companies withholding fuel risk losing licences   

THE Zimbabwe Energy Regulatory Authority (Zera) has warned dealers against
deliberately withholding or limiting fuel supplies for speculative purposes,
saying culprits risk prosecution or will have their trading licences
cancelled. The country has lately been experiencing fuel shortages, with
Energy and Power Development Minister Dr Joram Gumbo insisting that the
market had adequate supplies, while the Reserve Bank of Zimbabwe (RBZ) was
doing its best to release foreign currency to oil companies for fuel
procurement. Zimbabwe needs 2,5 million litres of diesel and 1,5 million
litres of petrol per day. In a statement, Zera said it has come to its
attention that there were isolated cases of service stations charging fuel
prices that were above the regulated threshold.  <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

Econet set to spin off Cassava to create Fintech giant   

ECONET Wireless Zimbabwe (EWZ)'s new stand-alone unit Cassava, born out the
unbundling financial technology (fintech) businesses to be listed separately
on the Zimbabwe Stock Exchange, is set to become one of the biggest
companies in Zimbabwe. Cassava group chief executive Darlington Mandivenga
said the company may not yet be a household name in Zimbabwe, but will over
the next few weeks become one of the largest companies in the country. The
company is be best known through its numerous brands that for years have
been part of Econet's Wireless products and services, but is now set to
emerge as a stand-alone fintech company, Mr Mandivenga said. Cassava, he
said, will be made up of units Econet intends to spin off as part of its
unbundling of well-known brands such as EcoCash, EcoSure, EcoFarmer, Ruzivo,
Steward Bank, TPS and edu-tech training services such as the Muzinda Hub.
The brands, or SBUs, currently account for over 40 percent of EWZ's current
turnover.  <http://www.bulls.co.zw/> Read more >

Zimra collects $7,5m car import duty in 12 days   

The Zimbabwe Revenue Authority (Zimra) collected $7, 5million in 12 days in
car import duty at Beitbridge as vehicle dealers acted on rumours that
Government intends to introduce duty in US dollars. The dealers resorted to
buying cars with bigger engines as a way of keeping their money on valuable
properties. Under normal circumstances Zimra collects an average of $8, 5
million monthly. However, as a result of the panic daily imports from the
neighbouring country have increased to between 500 and 700 cars.
<http://www.bulls.co.zw/> Read more >

ZSE ranked best African market

THE Zimbabwe Stock Exchange (ZSE) has been ranked as the best performing
market in Africa in the last five years. The local bourse has intermittently
surged on the deterioration of economic fundamentals in the country,
resulting in most investors preferring stocks to hedge against cash
shortages and rising inflation. According to InvestingInAfrica, the ZSE's
return over the past five years, as of September 30, 2018, was 98,5 percent,
topping 14 other markets on the continent. The Namibian Stock Exchange was
the second best performing market with a return of 38,5 percent while the
Nigerian Stock Exchange, with a loss of 60,1 percent was the worst
performing market on the continent over the period under review. The
performance of a stock market under normal circumstances is driven by
expectations regarding company performance, which in turn tends to be
related to the projected economic progression.  <http://www.bulls.co.zw/>
Read more >

Zimbabwe govt won't assist resettled farmers anymore, says Mthuli Ncube

Zimbabwe's minister of finance Mthuli Ncube has reportedly said that
resettled farmers will no longer get assistance from government, as the
programme was "riddled with corruption". According to Daily News, Ncube's
decision came after the dramatic failure of the Farm Mechanisation Scheme
that was introduced by former president Robert Mugabe's government in 2007.
The report said that more than $200 million that was pumped into the
four-phase programme "did not produce any results".  A number of unnamed
political elites were said to have given themselves irrigation equipment,
brand new tractors, combine harvesters and other farming materials. The
loans were never paid back, forcing lawmakers to recommend that they be
written off.  <http://www.bulls.co.zw/> Read more >

Brussels businesses eye Zim prospects   

BELGIUM is sending a high-powered business delegation comprising 25
companies to Zimbabwe to explore investment opportunities, in a move
expected to boost Government efforts to make the country an attractive
investment destination. This was confirmed by incoming Belgian Ambassador to
Zimbabwe Mr Didier Vanderhasselt yesterday while briefing journalists after
a closed-door meeting with President Mnangagwa. He was among new envoys who
presented their credentials to President Mnangagwa at State House yesterday.
ther ambassadors who did the same are new head of the European Union Mission
in Zimbabwe Mr Timo Olkkonen and Mr Mahamane Aoudou Cisse of Mali. Mr
Olkkonen replaces Mr Philippe van Damme. "I had the pleasure to announce to
the President that the Chamber of Commerce of Belgium, Luxembourg ACP in
Brussels is considering a trade mission to come to Zimbabwe in the month of
January to assess the situation and to see what kind of economic cooperation
that is possible," said Mr Vanderhasselt.  <http://www.bulls.co.zw/> Read
more >

 <mailto:info at bulls.co.zw> 

Hwange Colliery board and management row escalates

Africa is endowed with some of the world's richest natural resources such as
coal mined at Hwange Colliery. TENSION at Hwange Colliery continues to mount
with allegations and counter allegations of corruption and undue
interference being made between the company's board and management.  The
board, which is led by Juliana Muskwe, maintains that it is cleaning up
deep-seated rot at the coal miner while sources close to the goings-on
allege that the board has effectively displaced the company's management and
taken over day-to-day operations. In June, Mines minister Chitando indicated
government's intention to replace the board, but the motion did not get the
support of the rest of the shareholders.  <http://www.bulls.co.zw/> Read
more >

Change of currency not ideal to revive economy: Mugaga

THE country's economic crisis has deepened since the recent fiscal and
monetary measures announced by Finance minister Mthuli Ncube and Reserve
Bank governor John Mangudya. The economy has plunged into turmoil, amid
shortages of basic commodities and skyrocketing prices, while the parallel
market trade in foreign currency has spiralled out of control. Zimbabwe
Independent business reporter Kudzai Kuwaza (KK) spoke to Zimbabwe National
Chamber of Commerce CE and economist Christopher Mugaga (CM) on currency
reforms, challenges facing the economy and what is needed to kick-start the
troubled economy:  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Zimra surpasses Q3 revenue targets   

The Zimbabwe Revenue Authority (Zimra) has announced gross collections
amounting to $1, 28 billion against a target of $1, 089 billion in the third
quarter of this year, according to the latest quarterly revenue report. Net
revenue collections for the third quarter improved by 22, 56 percent from
the $967,76 million realised during the third quarter of 2017. Major
contributors to the revenue were Excise Duty at 21 percent, Net Value Added
Tax (VAT) on Local Sales at 19 percent and individuals at 18 percent.
Permanent secretary in the Ministry of Finance and Economic Development
George Guvamatanga attributed the positive revenue performance to "concerted
effort by the Authority through rigorous revenue enhancement measures, an
unwavering stance against corruption, increased use of electronic and mobile
money in transacting which resulted in improved compliance." Individual Tax,
Company Tax, VAT on imports, Customs duty, Excise duty, Carbon tax, Mining
royalties and Withholding tax on Contracts surpassed set targets for the
quarter.  <http://www.bulls.co.zw/> Read more >

Amtec diversifies into farm equipment   

India's tractor and farm equipment manufacturer Tafe, through AgriMag of
South Africa has awarded a distribution licence of its products to Amtec
Motors (Zimbabwe). Through the franchise arrangement between Tafe and
AgriMag, Amtec is now selling tractors and an assortment of agro equipment
comprising of boom sprayers, hydraulic offsets, rippers, ridgers, mechanical
and pneumatic planters, an official said. The new farm equipment division
will be launched today with Minister of Lands, Agriculture, Water, Climate
and Rural Resettlement Perrance Shiri expected to be the guest of honour.
The introduction of agro equipment by Amtec is a departure from its
traditional business of selling trucks and luxury vehicles.
<http://www.bulls.co.zw/> Read more >

Chicken Inn to open Gokwe branch   

Simbisa Brands, owners of popular fast foods outlet, Chicken Inn are set to
open a branch in Gokwe. Simbisa Brands Southern Region operations manager,
Mr Xolisani Gama confirmed the development saying it has been necessitated
by an overwhelming turnout of Gokwe customers to their Kwekwe branch. "There
are a number of our customers who travel from as far as Gokwe just to buy
our popular two piecer, so we decided to open a stand-alone branch for them
in town. Gokwe is one of the largest districts and the place is developing
fast," said Mr Gama. He said currently, they were engaging relevant
stakeholders and carrying out a feasibility studies. "We are currently
engaging council and the District Administrator's office as we try to scout
for the best position for the outlet," he said.  <http://www.bulls.co.zw/>
Read more >

Mthuli heads for US over Zidera

Finance and Economic Development Minister Professor Mthuli Ncube will soon
be headed for the United States of America to engage Washington on the
Zimbabwe Democracy and Economic Recovery Amendment Act (Zidera) of 2018, the
piece of legislation that appears to be the major hurdle blocking Harare's
efforts to unlock international funding. In as much as Government is leaving
no stone unturned in implementing far reaching reforms to turn around the
economy, it emerged the US law is holding back all the efforts as it directs
American officials in key international financial institutions to block the
extension of funding to Harare. As such, interactions between Harare and
Washington are understood to be already underway and Minister Ncube is set
to travel to the US in January next year, to deepen the engagements with top
US officials over the ramifications of Zidera.  <http://www.bulls.co.zw/>
Read more >

Investor to inject $50m in Zim gold mine project

Zimbabwe is headed for an investment flood in mining with unnamed foreign
investor having reportedly expressed interest to sink in a staggering $50
million into the gold mining industry, as investor interest in the mineral
rich southern African country continues to boil over. It was not immediately
clear whether the investor was interested in Greenfield or Brownfield
projects, but officials reckon this comes on the back of ever-growing
foreign investor interest in Zimbabwe's mining sector. Zimbabwe has the
second largest gold reserves per square kilometre in the world with 13
million tonnes of proven reserves of which only 580 tonnes have been
exploited since 1980, Reserve Bank of Zimbabwe Governor Dr John Mangudya
disclosed recently. The southern African nation is also home to more than 40
top minerals in the world including gold, platinum, diamonds, nickel, coal,
chrome lithium and coal-bed methane gas.  Fewer than 10 percent, Government
says, of the minerals are commercially exploited.  <http://www.bulls.co.zw/>
Read more >

PPPs critical in agric success: Arda

Public Private Partnerships (PPPs) are critical in unlocking Zimbabwe's
agriculture value chain potential and attaining food security, Agricultural
and Rural Development Authority (Arda), board chairperson Basil Nyabadza has
said. Speaking at the recent inaugural field lecture at Arda Fair Acres in
Zhombe, Nyabadza said private players should come on board and compliment
Government efforts to enhance agriculture sector productivity. "The heart of
the matter is founded in PPPs given we already have the resources in human
capital and infrastructure among others. Partnerships play a key role as
Government and the private sector complement each other and that goes a long
way in improving not only the agriculture sector, but the economy as a
whole," said Nyabadza.  <http://www.bulls.co.zw/> Read more >

TM Supermarkets lifts 'Rest of Africa'

Tm Supermarket boosted profits in the 26-weeks to August 26, 2018,
contributing significantly to South African retailing giant's Pick n Pay
Stores' financial performance during the period. Group management attributed
TM Supermarkets' strong sales and profit growth to competitive promotions
and improved on-shelf availability. The Zimbabwean operation was the best
performer within the Rest of southern Africa division (the group has an
established presence in Botswana, Lesotho, Namibia, Swaziland, Zambia and
Zimbabwe). "Profit before tax was up 7,3 percent to R136,1 million, driven
by an outstanding performance from the group's associate in Zimbabwe, TM
Supermarkets (TM)," said Pick n Pay chief executive officer Richard Brasher
in an analysis of the results for the 26-weeks period.
<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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