Bulls n Bears Investors Notebook Issue 174: 14 January 2019

Mon Jan 14 09:09:31 CAT 2019

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Bulls n Bears Investors Notebook Issue 174: 14 January 2019

 <mailto:info at bulls.co.zw> 

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

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

Ncube's indecision on currency reforms worsening situation: Fitch

UNITED KINGDOM-BASED financial services firm Fitch Solutions says Finance
minister Mthuli Ncube's flip-flopping on currency reforms is worsening the
foreign currency crisis.  Zimbabwe is in the throes of an acute cash
shortage caused by a huge trade deficit - which stood at $1,6 billion in the
seven months from February to August 2018, the mismatch between electronic
balances and actual cash in circulation. In his national budget for 2019,
announced in November, Ncube did not address the currency crisis and rather
chose to keep a 1:1 parity between local money and the greenback, despite
the devaluation of the former. .  <http://www.bulls.co.zw/> Read more >

Fuel Price Increase & Price Controls Catastrophic, Shingi Munyeza

Prominent entrepreneur and religious leader, Shingi Munyeza, has said that
the recent fuel price increases and the promise to control prices by the
Zimbabwe government is a "catastrophic" move that will result in shortages.
President Emmerson Mnangagwa announced the fuel price increases yesterday
following a week of acute fuel shortages throughout the country. The prices
have been increased by about 147%. The new price of Petrol is $3.11 per
litre (up from about $1.34) and diesel now costs $3.11 a litre. .
<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

Delta falls short on foreign exchange

Delta Beverages says its Belmont plant in Bulawayo is operating below
capacity as the company has not been able to import spares because of the
foreign currency shortages. During a tour of the Belmont manufacturing
plant, factory manager Enita Moyo said the plant was operating at 80%
capacity and is in dire need of spare parts as most of the machinery has
worn out. Moyo said the state of the plant was impacting productivity and
sales in the market. .  <http://www.bulls.co.zw/> Read more >

Zimbabwe develops new bean variety

ZIMBABWE has developed a new variety of bean seed which is expected to
improve yields and cut the country's reliance on imported varieties for
canning products. The new seed variety was developed by government's
Department of Research and Specialist Services after there were growing
concerns over the standard of imported consignments. According to government
data, the bean industry in Zimbabwe imports about 60% of its canning bean
variery from Dubai, China, Ethiopia, South Africa, Zambia and Malawi. .
<http://www.bulls.co.zw/> Read more >

Council loses $10m to defaulting tenants

HARARE mayor Herbert Gomba has disclosed that council is losing $10 million
annually due to non-payment of rentals by people and organisations leasing
its properties. Gomba told NewsDay that the local authority was now
considering repossessing commercial and residential land leased out to
various institutions over non-payment. "As council, we have identified that
some co-operatives were allocated land, but did not pay anything, including
intrinsic land value. We also have other business, that are not paying
rentals for council properties. We are losing close to $10 million annually.
We are going cancel the leases and repossess our properties," Gomba said. .
<http://www.bulls.co.zw/> Read more >

Byo residents object to ZPC takeover of thermal power plant

BULAWAYO residents are objecting to attempts by the Zimbabwe Power Company
(ZPC) to take over the city council-owned thermal power station arguing this
was against the spirit of devolution. ZPC recently applied for an amendment
of the Bulawayo Power Station license to give it a 20 -year license to
enable it to produce 120 megawatts of power to be fed into the national
grid. .  <http://www.bulls.co.zw/> Read more >

Industrialists want access to forex market   

THE Confederation of Zimbabwe Industries (CZI) insists the economy will not
collapse so long as Government allows manufacturing firms to buy enough
foreign currency to import needed inputs. Most manufacturers need some
imported raw materials even when most of their costs are incurred in
Zimbabwe. They either buy these with allocations from the Reserve Bank of
Zimbabwe, export part of production to earn forex, or use a forex earner as
a middleman and pay his mark-ups. Many want to go a step further and be able
to buy forex when needed on parallel markets if the RBZ cannot allocate
enough for this minority of imported inputs. .  <http://www.bulls.co.zw/>
Read more >

 <mailto:info at bulls.co.zw> 

Insurance industry to unveil new framework   

The insurance industry will soon unveil a new policy framework as part of
efforts to achieve a 20 percent insurance penetration in 2020, as espoused
in the Government's Transnational Stabilisation Programme (TSP). The TSP
highlights some stringent industry licensing requirements, which hinder
growth of the insurance sector in Zimbabwe. Insurance and Pension Commission
(IPEC) chairperson Lynn Mukunoweshuro said the 20 percent penetration
outlined was achievable with a more conducive policy environment that
encourages sector growth. .  <http://www.bulls.co.zw/> Read more >

Fewer women on company boards   

As at October 2018, women held only 17,9 percent of all directorships in
companies on the MSCI All Country World Index (ACWI). While this was
slightly up from 17,3 percent last year, it is below the predictions MSCI
made in 2015. Three years ago the index provider believed that by 2018, 19,4
percent of all directors would be women. However, improvements in female
representation have been slower than MSCI predicted, and at the current pace
of change the company believes it will be another decade before
representation reaches 30 percent. .  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Government works on tax rebate to avert price hikes   

GOVERNMENT yesterday said it is now working on modalities to grant tax
rebates across all sectors to prevent price hikes following fuel price
increases effected at the weekend. The price of petrol rose from around
$1,45 per litre to $3,31 while that of diesel increased to $3,11 from $1,38.
Announcing the new fuel prices on Saturday night, President Emmerson
Mnangagwa said Government would introduce a tax rebate for all registered
business in the manufacturing, mining, commerce, agriculture and transport
sectors to prevent commodity or service price increases. .
<http://www.bulls.co.zw/> Read more >

Fuel price increase meant to eliminate black market   

President Mnangagwa announced a significant fuel price increase on Saturday
night, a decision that isn't too surprising given the prevailing shortage of
the commodity and other market conditions. A litre of petrol now costs
$3,31; more than double the old price of around $1,45. A litre of diesel now
costs $3,11, up from around $1,35. This is the second increase in the price
of fuel in less than two months after the Zimbabwe Energy Regulatory
Authority pegged prices in early December last year. .
<http://www.bulls.co.zw/> Read more >

Explore export markets, breweries challenged   

INDUSTRY and Commerce Deputy Minister Raj Modi has urged local breweries to
maximise on exporting as local liquor products are being smuggled into
neighbouring countries. He made the remarks during his recent tour of
Delta's Fairbridge Chibuku Super Plant in Bulawayo. "A good number of
Zimbabweans in neighbouring countries and indeed citizens of those countries
take Chibuku, therefore, Chibuku breweries should take its market place and
not leave it to smugglers," he said. "Chibuku breweries, is the biggest
opaque beer manufacturing company in the country and should consider
exporting their products that are currently being smuggled to neighbouring
countries. .  <http://www.bulls.co.zw/> Read more >

Petrol blending consistent across country: Zera   

THE Zimbabwe Energy Regulatory Authority (Zera) has dismissed the
allegations being circulated on social media pertaining to the quality of
petrol in the country in particular its ethanol content. In the past few
weeks, messages with statistics revealing ethanol content in blended fuel by
specific service stations have been circulating on social media platforms
such as WhatsApp and Facebook. The social media reports alleged that filling
stations such as Glo Petroleum and Puma blend the fuel with 18 percent and
21 percent ethanol respectively while Zuva (32 percent), Total (21 percent)
and Engen (21percent).  .  <http://www.bulls.co.zw/> Read more >

'Local currency step in the right direction'   

Finance and Economic Development Minister Professor Mthuli Ncube must
address existing loopholes if his plans to introduce a local currency within
the next 12 months are to succeed, economic observers have said. They said
Prof Ncube faced a mammoth task to lay the fundamentals for the successful
launch of a local currency within a short period. Prof Ncube last Friday
indicated Zimbabwe would introduce its own currency in the coming months.
Addressing delegates at the "Road to Davos" townhall meeting in Harare,
Minister Ncube said Government was raising foreign currency to introduce the
new currency. .  <http://www.bulls.co.zw/> Read more >

'Zimbabwe can't afford South African Rand'

Zimbabwe will not adopt the South African Rand as it does not have adequate
resources to do so, Finance and Economic Development Minister Professor
Mthuli Ncube has said. Addressing youth at a townhall meeting held Friday,
Prof Ncube said while he had advocated for the adoption of the rand before
he came into office, he had realised the country will still need to get US
dollars to be able to import the rand. "I also hear about adopting the rand,
I even argued for it a few years ago and there was a reason. .
<http://www.bulls.co.zw/> Read more >

Top Soap, Cooking Oil Producer Olivine Industries Shuts Down Zimbabwe
Operations

Top cooking oil, soap and margarine manufacturer, Olivine Industries, has
shut down operations in Zimbabwe, citing a crippling $11 million debt. A
large number of workers are expected to lose their jobs as the unemployment
rate has reached record levels. In a statement, the company indicated that
it has been struggling of late due to the biting cash crunch in the southern
African nation, which is experiencing serious foreign currency shortages,
skyrocketing prices of basic commodities and the devaluation of the local
quasi-currency, the bond note.  <http://www.bulls.co.zw/> Read more >

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

Border Timbers

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Post your event (AGM, EGM, Analysts Briefing, etc) on the Investor Diary
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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
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investigation into the business, financial condition and future prospects of
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for guideline purposes only and sourced from third parties.

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