Bulls n Bears Investors Notebook Issue 121:22 October 2018

Mon Oct 22 10:34:58 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Investors Notebook Issue 121:22 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

Inflation increases   

ZIMBABWE'S year-on-year inflation rose to 5,39 percent last month from 4,83
percent in August largely triggered by the parallel market exchange rate
forces. Statistics from the Zimbabwe National Statistics Agency (Zimstat)
released last week also show that the month-on-month, inflation stood at
0,92 percent after gaining 0.53 percentage points from 0.39 percent last
month. In separate interviews yesterday, economic commentators said the
country's rate of inflation was being triggered by parallel market forces
highlighting that the Government needs to take austerity measures to contain
the rate at which inflation was rising.  <http://www.bulls.co.zw/> Read more
>

'Zim to clear WB, IMF debt in 12 months'

ZIMBABWE plans to clear its arrears with the African Development Bank (AfDB)
and World Bank in the next 12 months, with support from an unnamed creditor
country, Finance minister Mthuli Ncube has said. The southern African
country has been frozen out of international debt markets since the turn of
the century after defaulting on loans with multinational lenders, and Ncube
says he has secured the support of international creditors and donour
countries. The country owes the World Bank and AfDB $1,8 billion and needs
to clear the debt before it can access new credit to revive its faltering
economy.  <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

Budget deficit seen topping $3 billion

The Parliament Budget Office (PBO) says the budget deficit could reach a
"record breaking" $3 billion this year as Finance and Economic Development
minister Mthuli Ncube says he will soon announce cost-containment measures
to lower State expenditure. The PBO says rising expenditure has been skewed
towards recurrent spending due to rising government employment costs and
capital transfers, with the deficit accounting for 11,6% of gross domestic
product (GDP). Zimbabwe recorded a budget deficit of $2,6 billion last year,
8,4% of the GDP. Ncube said on his Twitter handle that the 2% transfer tax
imposed with effect from October 13 this year was just the first part of
reducing the budget deficit.  <http://www.bulls.co.zw/> Read more >

Millers come up with programme to avert bread shortages   

THE Grain Millers' Association of Zimbabwe (GMAZ) has come up with a six
months-wheat procurement programme to ensure constant supply and avert bread
shortages in the country. GMAZ chairman Mr Tafadzwa Musarara said this in an
interview at Nkulumane Provincial Heroes' Acre in Bulawayo after the burial
of the association's national vice president Mr Thembinkosi Ndhlovu on
Friday. "We have come up with a six months-wheat procurement plan so that we
build a three-month cover and at an given time in the country, we should
have wheat equivalent to three months cover in order to avoid the
occurrences like now where we have got wheat at the border and then
logistical problems happen and immediately it impacts on the flour supply,"
he said.  <http://www.bulls.co.zw/> Read more >

Metbank mulls pre-business set-up facility   

ONE of Zimbabwe's commercial banks, Metbank, plans to set up a pre-business
set-up facility to fund small-scale miners' operations at the business'
early stage of development. Of late, in some instance small-scale miners
have failed to register mining claims before the first run of their
operations and tapping into the minerals deep-seated underground due to
financial constraints. In an interview at the end of the recently held
small-scale miners' conference in Bulawayo organised by the Zimbabwe Miners'
Federation (ZMF), Metbank executive director Mr Ephraim Chawoneka said:
<http://www.bulls.co.zw/> Read more >

Farmers want tobacco levy scrapped

FARMERS have made fresh calls for the scrapping of the tobacco levy going
into the next season, as $23 million collected under the fund since 2015 has
not been disbursed to serve its purpose. In January 2015, government
introduced an afforestation levy on all tobacco farmers at a rate of 1,5% in
the first year and 0,75% in subsequent years to finance regreening
initiatives in the country. The afforestation fund comes from a 0,75% tax on
gross sales levied on the country's 80 000-plus tobacco farmers who rely on
wood to cure their crop. Upon delivering their tobacco crop, the country's
80 000-plus tobacco farmers are automatically levied based on gross sales.
<http://www.bulls.co.zw/> Read more >

Local firm to float bond for municipal projects

LOCAL financial firm Lloyd Corporate Capital (Private) Limited intends to
float a bond with a three-year tenure to finance infrastructure projects for
local authorities. The company's managing director Bekithemba Nkomo told
delegates attending the Local Government Investment Conference held in
Bulawayo last week that the bond would be financed by the diaspora as well
as local corporates and financial institutions. "We are proposing to split
this bond into local people and local people being local corporates, local
financial institutions, local residents and also to split with diaspora," he
said. <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

'Zimra strategic to fiscal reforms'   

The Zimbabwe Revenue Authority (Zimra) is a strategic entity to Zimbabwe's
attainment of Vision 2030 and must lead development and implementation of
innovative domestic resource mobilisation strategies that will help
transform the country into an upper and middle-income economy, Permanent
Secretary for Finance and Economic Development George Guvamatanga has said.
Economic development is at the centre of Zimbabwe's new political
dispensation with the key goal being transformation of the southern African
country into an upper middle-income economy with a capita gross income of
between $3 500 and $5 000 by 2030. Another important aspect is to undertake
reforms to unlock the potential of public enterprises to effectively
contribute to the country's Gross Domestic Product (GDP).
<http://www.bulls.co.zw/> Read more >

Govt sets up $100m gold sector fund   

Government plans to establish a $100 million gold sector venture fund as it
seeks to boost output and build reserves. The fund is designed to assist
miners to re-tool so they ramp up production. This was said by Finance and
Economic Development Minister Professor Mthuli Ncube last week during his
interface with Young Professionals in Harare. Prof Ncube encouraged the
suave young professionals who included investment banker, Mr Simba Mhungu -
who has worked for top global firm Goldman Sachs in the United States - to
consider setting up venture capital businesses to support various sectors of
the economy. "The Minister of Mines (and Mining Development Winston
Chitando) and I have decided to set up a $100 million gold sector venture
fund," said Prof Ncube. <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Zim economy in typical labour pains   

Some pains are just but a necessary evil and ought to be lived through than
avoided if the benefits are to be harnessed in totality. Joys of motherhood
come with excruciating pain, sweating and energy draining pregnancy, but at
the end of it all is the feeling of fulfilment and self-actualisation. The
economic events of the past two weeks in Zimbabwe bore Zimbabweans
uncertainty, pain and disillusionment, as fuel and basic commodities
disappeared amid exaggerations by political demagogues. Minister of Finance
and Economic Development Professor Mthuli Ncube's submissions saved the
situation as they alleviated the fears that Zimbabwe is reverting back to
2008 economic meltdown. <http://www.bulls.co.zw/> Read more >

Land audit gets underway   

The Zimbabwe Land Commission has deployed teams of 60 enumerators in all
eight farming provinces for the comprehensive agricultural land audit which
begins today. The audit teams will have identity particulars and farmers
will not be asked to pay any money. The exercise, which will be carried out
simultaneously in all eight provinces is expected to end on November 24. The
audit is meant to identify land utilisation patterns and optimal farming
activities which influence appropriate policies for increased agricultural
productivity, poverty alleviation and sustainable utilisation of
agricultural land.  <http://www.bulls.co.zw/> Read more >

Fuel consumption up 100pc: Gumbo   

FUEL consumption in the country has gone up by 100 percent in recent months,
the Minister of Energy and Power Development, Dr Joram Gumbo, said
yesterday. In an interview, Dr Gumbo said the new dispensation had brought
about business confidence which has seen a surge in demand for fuel. He said
Zimbabweans have also imported thousands of vehicles leading to a sharp
demand for petrol and diesel. The minister said everyday, scores of imported
cars are being cleared at the country's borders, leading to an increase in
fuel demand. Dr Gumbo said some elements were also hoarding fuel for
speculative purposes.  <http://www.bulls.co.zw/> Read more >

'New procurement law encourages transparency'

Below is a conversation between the Procurement Regulatory Authority of
Zimbabwe (PRAZ) chief executive Nyasha Chizu (NC) and NewsDay (ND) in which
he outlines how he is enforcing a new way of public procurement in
ministries, parastatals, local authorities, commissions and other government
agencies. ND: A lot is expected from the Procurement Regulatory Authority of
Zimbabwe in terms of inculcating and sustaining efficiency within the public
sector procurement process. May you briefly explain where you are in terms
of bringing in a new culture of procurement efficiency and effectiveness in
the public sector? NC: Indeed, significant strides have been made in terms
of reforming the procurement process in the public sector. So far all
ministries, State-owned enterprises and local authorities have either
established or are in the process of finalizing the establishment of
procurement management units (PMUs). These units are expected to be manned
by professional procurement officers who will be licenced in terms of the
Public Procurement and Disposal of Public Assets Act [Chapter 22:23].
<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 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181022/ed46757b/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 35469 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181022/ed46757b/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29134 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181022/ed46757b/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181022/ed46757b/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181022/ed46757b/attachment-0007.jpg>