Bulls n Bears Investors Notebook Issue 490: 05 May 2020

Tue May 5 10:17:16 CAT 2020

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Bulls n Bears Investors Notebook Issue 490: 05 May 2020

 <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

Zimbabwe pleads with foreign lenders to prevent coronavirus "catastrophe"

HARARE (Reuters) - Zimbabwe is headed for a health and economic catastrophe
from the coronavirus pandemic because its debt arrears mean it cannot access
foreign lenders, the finance minister warned in a letter to the IMF. Mthuli
Ncube said in the letter dated April 2 and seen by Reuters on Monday that
Zimbabwe needed to start talks and normalise ties with foreign creditors to
clear its decades-old arrears and unblock urgently-needed funding.
<http://www.bulls.co.zw/> Read more >

ZIDA to lead economic revival - President   

The Zimbabwe Investment and Development Agency (ZIDA) is expected to lead
the country's economic revival and initiatives aimed at achieving the target
of becoming a middle income economy by 2030, President Mnangagwa told the
new board yesterday. The board of the new agency, which combines in a single
body a number of agencies set up over the years, with a new focus, met the
President at State House. The newly-appointed board is chaired by
Bulawayo-based industrialist Mr Busisa Moyo, who is the chief executive for
United Refineries Limited, a large company that makes cooking oil, soap and
other products.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

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

Outrage over US dollar priced Covid-19 test kits   

While all businesses in the formal sector can now reopen under strict health
conditions as Zimbabwe moves into level 2 lockdown, many were unable to do
so yesterday with the rapid testing of staff being the biggest single
problem as private suppliers were demanding US$25 a test kit, payable only
in foreign currency. The illegal demand for foreign currency, and high
prices of test kits, made it hard for many companies, already hit by cash
flow problems after five weeks of lockdown, to restart. Business owners said
public sector health institutions were not yet ready to handle queries from
employers.  <http://www.bulls.co.zw/> Read more >

$18bn stimulus package team on the cards   

A technical team is being set up to craft operational details of the $18
billion economic recovery, stimulus and social package aimed at reviving
Zimbabwe's economic sectors affected by the global Covid-19 pandemic.
Operational details, which will specify the criteria, institutional
coordination and access points for the facilities, will be announced after
the consultative processes. The stimulus and rescue package, which
constitutes nine percent of GDP, was announced by President Mnangagwa and
cuts across all productive sectors so that they get the critical liquidity
to kick-start their operations and protect jobs.  <http://www.bulls.co.zw/>
Read more >

Zim ranks high on budget transparency   

Zimbabwe has been ranked number three in Africa in terms of budget
transparency by the Open Budget Survey (OBS) 2019, a dramatic confirmation
of the reforms of the Second Republic in its first full year. The country
has a transparency score of 49 out of 100, and comes third after South
Africa which has a score of 87 and Namibia 51. The ranking has excited both
Government and economic commentators since the OBS is the world's only
independent, comparative and fact-based research that uses internationally
accepted criteria to assess public access to central government budget
information, formal opportunities for the public to participate in the
national budget process, and the role of budget oversight institutions such
as the legislature and auditor in the budget process..
<http://www.bulls.co.zw/> Read more >

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

Leaked letter warns Zimbabwe headed towards economic catastrophe

The country's debt arrears mean it cannot access foreign lenders, the
finance minister wrote in a letter to the IMF. Zimbabwe is headed for a
health and economic catastrophe from the coronavirus pandemic because its
debt arrears mean it cannot access foreign lenders, the finance minister has
warned in a letter to the International Monetary Fund (IMF) that was never
intended to be seen by the public. Mthuli Ncube said in the letter dated
April 2 and seen by Reuters news agency on Monday that Zimbabwe needed to
start talks and normalise ties with foreign creditors to clear its
decades-old arrears and unblock urgently-needed funding.
<http://www.bulls.co.zw/> Read more >

Air Zim to capitalise on Covid-19 orders   

Air Zimbabwe has joined airlines offering passenger planes from transporting
freight using cargo holds and cabins following cancellation of flights
across the world due to coronavirus. Airlines have been forced to strip out
seats or adding nets and storage devices to fill in cargo instead of
passengers. About 50 percent of the world's air cargo travels in the bellies
of passenger planes. As a result, the cancellation of passenger flights as
part of measures to contain the spread of coronavirus has reduced the
freight capacity, disrupting the global supply chains. Air Zimbabwe
assistant administrator Mr Tonderai Mukubvu told The Herald Finance &
Business the national carrier had started moving cargo using its Boeing 767
aircraft.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

RBZ to monitor money supply   

THE Reserve Bank of Zimbabwe (RBZ) will maintain tight leash on broad money
supply growth, to avoid fuelling already high inflation and exchange rate
volatility, after loosening screws on key interest rate benchmarks. Last
week the central bank cut the bank policy rate from 25 to 15 percent and the
applicable rate on the medium term bank accommodation (MBA) facility from 15
to 10 percent to lower the domestic cost of borrowing. The measures are
designed to breathe a fresh lease of life into the economy in the face of
constraints emanating from the Covid-19 pandemic, which has forced several
weeks of national lockdowns across the world.  <http://www.bulls.co.zw/>
Read more >

Hwange Colliery Company output remains subdued   

HWANGE Colliery Company Limited (HCCL) has recorded a 27 percent increase in
coal output without the involvement of a contractor, Mota Engil, with
overall output, however, remaining subdued in the year ended December 31,
2019. HCCL was placed under administration by Government in 2018 following
gross and persistent losses, as well as technical insolvency with
liabilities exceeding assets, among others. In a statement accompanying
financial results for the period under review, HCCL administrator Mr
Bekhithemba Moyo said strategic focus was on increasing production and sales
of high value coking coal.  <http://www.bulls.co.zw/> Read more >

Fidelity seeks to hedge assets against inflation   

ZIMBABWE Stock Exchange-listed company, Fidelity Life Assurance, has
reclassified 847 hectares of land to investment property as the group seeks
to hedge its assets against inflation. The 847 hectare-land bank is owned by
Fidelity Life Assurance through its subsidiary, Langford Estates. In a
statement accompanying financial results for the year ended December 31,
2019, the ZSE-listed life assurance group said the land bank was a key
strategic asset for a number of reasons.  <http://www.bulls.co.zw/> Read
more >

Covid-19 creates lucrative window for Zimbabwe exports   

THE national export promotion agency, ZimTrade, says the global lockdown due
to Covid-19 has created supply gaps in the region, which presents huge
opportunities for local companies to seize. The trade agency said it was
engaging local companies and regional buyers with a view to ensure local
business survives the coronavirus onslaught, which has led to closure of
business and job losses. According to ZimTrade, Botswana, Zambia and Namibia
are some of the regional destinations with a ready market for Zimbabwean
products. "The coronavirus-induced global lockdown is negatively affecting
Zimbabwe's exporters in the short- to medium-term as it is beginning to take
a toll on business.  <http://www.bulls.co.zw/> Read more >

RioZim resumes US$17m processing plant project   

DIVERSIFIED resource group, RioZim Limited, has resumed the construction of
a US$17 million Biological Oxidation (BIOX) plant at the firm's Cam and
Motor gold mining operation in Kadoma. Construction of the BIOX plant will
see the mining group beneficiate its precious minerals through processing
pure oxide ores to make good grades and high recoveries and thus generating
more foreign currency. In a statement accompanying financial results for the
year ended December 31, 2019, RioZim chairman Mr Saleem Beebeejaun said the
construction project, which had been stalled by funding challenges, resumed
in the fourth quarter of 2019.  <http://www.bulls.co.zw/> Read more >

Zupco buses overwhelmed   

FOLLOWING the relaxation of the lockdown guidelines by Government, there was
an increase of human traffic in Bulawayo yesterday. President Mnangagwa on
Friday extended the lockdown by a further 14 days but downgraded the
emergency response to Covid-19 to level two which allows industry and
commerce to resume operations if they comply with set health guidelines to
curb the spread of the disease. The relaxation started yesterday. Level four
was the original lockdown under which only essential services were permitted
to operate. Level three was reached when mining, manufacturing and tobacco
sales were authorised to resume operations.  <http://www.bulls.co.zw/> Read
more >

Produce markets move to suburbs   

BULAWAYO City Council (BCC) has identified five fresh produce distribution
hubs and new vending sites for 600 informal vendors who were affected by the
closure of the 5th Avenue market place in the city centre. As part of a raft
of measures in response to Covid-19, the council last month relocated
vendors who operated vending stalls in the area and permanently closed the
popular weekend Khothama Market to bring order in the city beyond the
lockdown period. The areas that had previously been used as vending sites,
were yesterday reopened for vehicular movement and these include 8th Avenue
between Josiah Tongogara Street and Robert Mugabe Way, the portion of 5th
Avenue between Robert Mugabe Way and George Silundika Street, the portion of
5th Avenue between George Silundika Street and Fife Street, the portion of
5th Avenue between Fort Street and Herbert Chitepo Street and the portion of
5th Avenue between Herbert Chitepo Street and Lobengula Street.
<http://www.bulls.co.zw/> Read more >

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

 Bindura Nickel Corp

CBZH

Dawn

Delta

Falgold

Fidelity

MedTech

Meikles

Turnall

Unifreight

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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