Construction and Property Corner ::: 01 August 2023

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Construction and Property  Corner ::: 01 August 2023 

 


 

 


 <https://www.hyundai.co.zw/> 

 


 

 


 

ü  Apartment construction slows amid difficult financial conditions

ü  Concerted effort required to tackle construction mafias

ü  OPC applauds STVP management team commended for the largest irrigation
project in Southern Africa 

ü  IFC and Absa Partner to Expand Financing for Green Buildings in South
Africa

ü  Kenya and Uganda forge ahead as construction begins on key SGR projects

ü  Mapping to relocate Gwayi-Shangani families begins

ü  Investors target opportunities across rural Mazowe

ü  Registered estate agents lose business to bogus actors

ü  Zimre Holdings records 510 percent growth

 


 

 


 <https://www.willdale.co.zw/> Apartment construction slows amid difficult
financial conditions

Starts of buildings with five or more units fell 11.2% YOY in June,
according to federal data.

Starts of buildings with five or more units fell 11.2% in June to a
seasonally adjusted annualized pace of 482,000, according to the most recent
starts data report from the U.S. Department of Housing and Urban Development
and the U.S. Census Bureau.

With financing for new apartments proving challenging to obtain, permits for
buildings with five or more units plummeted 33.1% to a seasonally adjusted
rate of 467,000. Completions of properties with five or more units fell 2.5%
to 476,000.

Overall housing starts also fell in June, dropping 8.1% to 1.4 million.
Completions rose 5.5% to 1.5 million, while permits dropped 15.3% to 1.4
million.

 

Dive Insight:

For many apartment developers that started projects in 2021 and 2022, this
year has been a time to pause.

 

Palm Beach Garden, Florida-based Eastwind Development closed a couple of
projects in 2022 that are currently under construction. “We have a number of
deals in the pipeline,” Eastwind President Jack Weir told Multifamily Dive.
“But we're actually not closing any this year. We'll close deals next year.”

 

Interest rate increases and banks tightening their lending are largely to
blame for hindering new development. But they’re not the only culprits. “We
had floating rate construction loans that were at 3%,” Weir said. “Now,
they’re at 8%.”

 

The collapse of Silicon Valley Bank and Signature Bank have also clogged the
debt markets. “The loans that you can get are more conservative,” Weir said.
“They might be 55% loan-to-cost as opposed to 65% loan-to-cost. So we have
projects that we're working on that are good real estate, but we're not
closing on them until next year when we expect some of these conditions to
abate a little bit.”

 

Building costs remain high

Although apartment sales prices have fallen, building costs have remained
stubbornly high and held down starts, according to Weir. “In any type of
slowdown, you would expect there would be a reduction in construction costs,
but that has not been the case,” Weir said. “Homebuilding has picked up
again because existing home buyers don’t want to sell their homes and swap a
3% mortgage for a 7% mortgage.”

 

Single-family starts fell 7.4% to a seasonally adjusted rate of 935,000 in
June. They aren’t the only thing buoying construction costs, according to
Weir. He points to federal dollars from the Infrastructure Investment and
Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act boosting
construction spending.

 

“All of those are sustaining and, in some cases, increasing the price of
concrete and metal,” Weir said. “So even other non-residential uses are
impacting materials costs.”

 

 

 

Concerted effort required to tackle construction mafias

Ending the intricate web of construction site disruptions which threatens
lives and thwarts government’s mission of turning the country into a giant
construction site that creates jobs and grows the economy, requires a
concerted effort from all.

 

Public Works and Infrastructure Minister Sihle Zikalala is acutely aware of
this problem and the importance of the construction sector to the South
African economy.

 

He has condemned these disruptions and subsequent extortions linked with it.

 

“It is important that we all speak with one voice in condemning site
disruptions and extortion affecting this sector.

 

“It is even more important that we act together to root out these illegal
practices which are bringing disrepute and dragging away investment in the
South African construction and property sector,” the Minister told a recent
Creamer Media webinar.

 

This as government and role-players have expressed concern over site
disruptions which over time, have gained media coverage.

 

Zikalala has described the construction sector as the “backbone of the
economy and social development” and a pillar for economic growth and
recovery as per the instruction of President Cyril Ramaphosa when he
presented the Economic Recovery and Reconstruction Plan (ERRP).

 

Head of the Justice and Violence programme at the Institute for Security
Studies (ISS), Gareth Newham said disruptions cause damage and affect the
ability of the country to use construction in a way that drives economic
development and prosperity.

 

Since taking office in March, the Minister has visited several construction
projects to monitor progress.

 

Among these were blocked and delayed projects caused by the hijacking and
disruption of project sites in KwaZulu-Natal.

 

The rising phenomena of so-called construction mafia who invade, intimidate
and disrupt the delivery of projects on the ground has resulted in the
opening of 605 cases.

 

Impact

 

While some arrests have been made, Zikalala has highlighted the importance
of arresting, prosecuting and sentencing of those involved in the scourge
that is mostly affecting KwaZulu-Natal.

 

According to the Minister, site disruptions have cost the economy R68
billion.

 

Vice President of the Black Business Council, Gregory Mofokeng said the
industry is actively cooperating with the police on the matter while
contractors have also obtained court interdicts in efforts to curb the
scourge.

 

“Unfortunately, in most of these instances the very criminals do not respect
the court interdict. So we find ourselves in a situation where once again we
either have to go back and rely on the police to make sure that those court
interdicts are enforced.”

 

He adds that the sector is not seeing “increased activity in terms of making
sure that these very criminals are arrested and brought to book.”

 

Minister Zikalala said that following the intervention of the President, a
police unit is now in place.

 

“I would say that since the unit came into being 
 there are results that
we’ve seen though we have not reached a point where we see kingpins being
arrested and sentenced which is quite key.”

 

Grievances

 

Meanwhile, a number of reasons have been given as to why some people engage
in site disruptions.

 

Some feel marginalised and excluded from participating in economic
opportunities that are available. According to the Minister, these
individuals argue that government contracts are given to one and the same
companies.

 

“They argue that when government says for any contract [awarded] that [is]
above R30 million then 30% must be subcontracted. They argue that they are
not given space to participate, even in that 30%,” said the Minister.

 

This is in light of the 2017 Preferential Procurement Regulations that state
that public works contracts above the R30 million mark, should subcontract
an element of 30%, if feasible to advance designated groups.

 

Commenting on the matter, Director of MDA Attorneys, Euan Massey said
employers should be participative in the identification of work that can be
subcontracted. 

 

“This requires that employers are participative in the process of
identifying work which can be subcontracted. They are therefore required to
undertake a number of things firstly to ensure that the work that's being
awarded in that contract contains sufficient work that can be subcontracted
to advanced designated groups,” he said.

 

While the country continues to battle historic challenges including poverty
and inequality, site disruptions cannot be condoned.

 

“I must hasten to say there is no grievance among these that would justify
site disruptions, extortion and sabotage of the economy,” said the Minister.

 

On the other hand, others are of the view that while they try to accommodate
small business, some of these companies don’t deliver quality work and
therefore fail to fulfil their obligations.

 

“The argument further says that those who are disrupting [sites] are
sometimes given work but don't want to work 
 they demand money. Now we must
be able to confront this situation and deal with it in a way that will
ensure that legality is preserved,” said the Minister.

 

Empowering communities

 

On the other side of the coin, is the imperative to ensure that companies
are committed to transformation agenda of the country in that they should
support small business, the youth, women and people with disabilities.

 

“In doing so, the policy commitment of localisation must be preserved in all
areas.

 

“It is important that we continue to work together to meet the targets that
we've agreed upon in the transformation charter of the built environment,”
said Zikalala.

 

He added that when construction projects are commissioned, communities must
be briefed to ensure their buy-in in the project adding that the Department
of Public Works and Infrastructure (DPWI) will strengthen its internal
social facilitation unit.

 

Mofokeng said the industry is geared towards empowering communities.

 

“As the construction industry we are geared towards empowering local
subcontractors. We are geared towards 
creating employment for the locals
but the problem comes in where people are saying it is me who is not
benefiting therefore this project must stop.”

 

Sector observations

 

Chairperson of the Construction Association of South Africa’s (CASA), John
Matthews said site disruptions largely occur in the post-implementation
stage of a particular contract. That it is often accompanied by the threat
of violence or the act of violence itself.

 

One of the other worrying observations made by the industry when coming to
site disruptions is that in some areas, councillors were also being co-opted
by criminal elements.

 

“[This is] especially at the local level where you find that some of these
criminals in fact pitch up on construction sites to talk to main contractors
with the counsellors.  You find that the counsellors are now also involved
in this whole unfortunate incidents where they are actually encouraging
people to come and stop projects simply because certain individuals in the
community are not directly benefiting,” Mofokeng said.

 

Responding to this, Zikalala said this needs to be addressed. “If we get
that report, we will be able to engage with councils through speakers and
then be able to take disciplinary actions against those councillors.”

 

The Minister also called on contractors to refuse to pay bribes while also
adding that whistleblowers must be protected.

 

The District Development Model said the Minister, could be used as an anchor
to working together with industry.

 

The model is a practical mechanism to enable the three spheres of government
to work together, with communities and stakeholders, to plan, budget and
implement in unison.

 

Mathews also spoke of the cost implications incurred as a result of
disruptions in having to secure project sites and more importantly,
protecting the lives of those working on site.

 

”Such disruptions have many facets from community groups wanting a piece of
the pie so to speak, with real and legitimate concerns, to the extreme
threats of the so-called construction mafia-type organisations wanting 30%
of profits.”

 

Kile Mteto, of the South African Women in Plumbing and Trades, said site
disruptions not only increase the cost of doing business, but their impact
is felt “mostly by the SMMEs, especially women-owned entities as they are at
the bottom of the food chain in accessing opportunities of the sector.”

 

Taking action

 

Despite the various challenges, Massey said it is encouraging to see that
there is interest to tackle this issue.

 

“
 I completely agree with Minister Zikalala that we have to act with one
voice in terms of addressing this issue.

 

“I think that up until now, that hasn't happened. There's been a lack of
unity amongst all role players in how this is addressed and it seems that
more recently, there's been a real desire to work together to get to the
bottom of this problem.”

 

Massey said proactivity is needed in order to “properly remove the scourge
that we are faced with.”

 

The Minister said a thorough discussion on how to grow infrastructure is
necessary.

 

“I believe we do need to look at whether we need a construction sector
master plan.”

 

Removing all the spanners in the works, definitely requires a societal
response. –SAnews.gov.za

 

 

OPC applauds STVP management team commended for the largest irrigation
project in Southern Africa 

After a site visit to Chikwawa to appreciate the progress of the Shire
Valley Transformation Programme (STVP), the Office of the President &
Cabinet, through it Presidential Delivery Unit (PDU) confirmed and applauded
the project’s coordinating unit for doing a commendable job so far in its
phases of construction.

 

Touted as the government’s flagship development programme, which when
completed will be the largest irrigation project in southern Africa, thus is
a 14-year programme (2018-2031) which is being implemented in three
sequential by partially overlapping phases.

 

On site tour

The PDU thus brought together all government Ministries, Departments and
Agencies (MDAs) for the site visit and also for a special engagement at
Sunbird Mount Soche Hotel to discuss the roles and responsibilities expected
from each MDA in the project to “identify gaps to be addressed in order for
the project to achieve its intended goals considering its complex nature”.

 

This was acknowledged by Head of the PDU, Dr. Janet Banda, saying the
project will have “a major impact of the people of Malawi — Chikwawa and
Nsanje specifically”.

 

She emphasized that the engagement with STVP management team as the
coordinating unit is that “all line Ministries should take their roles and
responsibilities with a view to ensuring that all aspects of the Programme
are covered”.

 

Engagement with farmers

And from the site visit and the engagement forum, an agreement was reached
with the MDAs on roles and areas of support and accelerating the project
implementation in order to achieve its intended impact.

 

“The country’s transformative agenda of President Lazarus Chakwera has a
vision to transform Malawi through such projects where it will see job
creation, wealth creation and food security as a result of such high impact
project being implemented,” she said.

 

She also took cognizance that the project is one of the enablers of the
MW2063 national vision in Agriculture Productivity & Commercialisation
Pillar and that an estimated 223,000 farmers from 48,400 farming households
will engage in large scale commercial farming in the Shire Valley districts
of Chikwawa and Nsanje.

The STVP is being financed the World Bank, the African Development Bank,
OPEC Fund for International Development and the Global Environment Facility
as well as the Government of Malawi.

 

The STVP Project Coordinator, Dr. Stanley Khaila took the MDAs through a
presentation of their roles and responsibilities that is expected from each
of them in the project and to identify gaps to be addressed in order for the
project to achieve its intended goals considering its complex nature.

 

Led by the Ministry of Agriculture, the others directly involved are
Ministries of Ministries of Finance & Economic Affairs, Lands, Trade &
Industry, Local Government, Transport & Public Infrastructure, Tourism,
Gender, Youth, Labour, Homeland Security, Energy, Natural Resources, Health,
Water & Sanitation and Education.

 

>From the site visit, the PDU identified “a few immediate challenges being
faced such as shortage of cement in the country to meet the high demand for
the construction of the gravity-fed irrigation facility, land compensation
which PDU together with the MDAs resolved to map a way forward to remove
such bottlenecks”.

 

“The PDU has also committed to assisting the project coordinating unit in
the smooth importation of irrigation equipment and all other things needed
for timely completion of the project so that farmers in the Lower Shire
should start benefiting from the investment,” Banda said.

 

They were also taking to one of the communities which have in place a
commercial farming cooperative who appraised the delegation of how prepared
they were ahead of the completion of the project.

“It is gratifying to see farmers already organising themselves into vibrant
cooperatives in readiness for the launch of this life changing project,”
said the Head of the PDU, while urging the farmers “to own the facilities
being put in place for which a lot of money has been spent.

 

She also asked traditional chiefs and community leaders to guard against
theft of projects materials and equipment, which Khaila had also highlighted
as of serious concern — which is being resolved through engaging the Malawi
Police Service.

The PDU also made an appeal to the private sector take advantage of the
project and identify possible areas for investiment.

In his presentation, Khaila highlighted that for the SVTP to revolutionalise
the economy of Malawi, it is essential that all the relevant sectoral line
ministries should take responsibility in developing their sectors within the
Programme Impact Area.

It was first conceptualised as Shire Valley Project in the 1940s and is the
last of the three development programmes planned on the Shire Valley —
namely: the construction of a barrage at Liwonde; the construction of
Hydro-Power stations on the Shire River; and the establishment of a vast
irrigation programme in the Shire Valley.

It has four developmental components — the provision of a reliable gravity
fed irrigation and drainage services; provision of secure land tenure for
smallholder farmers and creation of large scale farms; and improving
agriculture productivity, commercialization and value chain development.

 

 

IFC and Absa Partner to Expand Financing for Green Buildings in South Africa

To support the development of certified green buildings in South Africa, IFC
today announced a partnership with Absa Bank Limited to help the bank expand
its residential and commercial loans and mortgage finance program for
buildings that are environmentally responsible and resource efficient.

 

IFC will provide a loan of up to 4.5 billion South African rand (about $236
million) to support Absa's strategy to expand its green buildings finance
portfolio which will include new certified green buildings and mortgages.
This will enable Absa to increase access to green building finance for
developers and individual home buyers.

 

In line with its climate strategy, Absa will use the investment to finance
environmentally friendly green buildings certified under IFC's Excellence in
Design for Greater Efficiencies (EDGE) program as well as similar green
building certifications, which helps standardize the design and the
certification for resource efficient and climate friendly buildings.

 

Green buildings represent a significant low-carbon investment opportunity
because they can save electricity and reduce water consumption. An IFC study
estimates that South Africa's green building demand presents a $7 billion
investment opportunity between 2016 and 2030. Although the supply of green
buildings in the country is growing, the green building market is still at a
nascent stage.

 

IFC estimates that the project will help reduce over 12,000 tons of
emissions annually. The investment will also contribute to South Africa's
Nationally Determined Contribution (NDC) targets under the Paris Agreement
to reduce GHG emissions by 42 percent by 2025.

 

"As a responsible corporate citizen, one of our strategic imperatives is to
be an active force for good in everything we do, which is key to delivering
true long-term value linked to our purpose," said Punki Modise, Absa Group
Chief Strategy and Sustainability Officer. "The loan, which includes a
performance-based incentive for clients, significantly enhances the
resources we have available to support clients in making environmentally
responsible and resource-efficient investments in commercial and residential
developments, mainly focused on affordable housing."

 

"Increasing funding for green buildings in South Africa can help the country
address power and water shortages and support sustainable economic growth,"
said Adamou Labara, IFC Country Manager for South Africa. "IFC's partnership
with Absa will make it easier for developers and individuals to access green
building finance and speed the development of environmentally friendly
buildings in the country."

 

As part of the partnership, IFC will provide performance-based incentives to
partly offset the greening and certification costs for green buildings and
mortgages financed by Absa under the project, which will benefit end users
in the form of reduced utility bills, such as power and water bills.

 

The incentives are funded by the IFC-UK Market Accelerator for Green
Construction (MAGC) program, which is sponsored by the United Kingdom, to
scale green construction across emerging markets by incentivizing financial
intermediaries to develop and introduce new green building finance products.

 

IFC will support Absa with advisory services to improve its capacity to
originate and manage loans for the development or retrofits of certified
green buildings. Absa will also leverage IFC's expertise to gain further
knowledge and enhance internal capacity to expand its green buildings
business segment.

 

The investment builds on IFC's 2 billion South African rand (approximately
$124 million) loan in 2022, used to support Absa's growth in affordable
housing finance in South Africa. It aligns with IFC's strategy to enhance
climate change resilience in South Africa by investing in inclusive and
sustainable projects.

 

About IFC

 

IFC—a member of the World Bank, is the largest global development
institution focused on the private sector in emerging markets. We work in
more than 100 countries, using our capital, expertise, and influence to
create markets and opportunities in developing countries. In fiscal year
2022, IFC committed a record $32.8 billion to private companies and
financial institutions in developing countries, leveraging the power of the
private sector to end extreme poverty and boost shared prosperity as
economies grapple with the impacts of global compounding crises.

 

 

 

 

Kenya and Uganda forge ahead as construction begins on key SGR projects

Kenya's SGR extension to Malaba is under scrutiny for its $3.2 billion cost
and value for money concerns. 

Kenya and Uganda signed a joint statement to commence construction on key
railway projects, Malaba-Kampala SGR and Naivasha-Kisumu-Malaba SGR. 

Both countries pursuing individual financing for their SGR portions, with
Kenya signing commercial contracts and Uganda set to finalize its deal soon.

As the Kenyan administration considers extending the SGR to Malaba in order
to establish a connection with Uganda, all eyes are currently focused on
President William Ruto.

 

This is because the building of the Mombasa-Nairobi line and the following
extension to the Suswa (Naivasha) SGR projects continue to be questioned by
the public as to whether they represented good value for money. One of the
Jubilee government's megaprojects, SGR was designed to hasten economic
growth.

 

The government claims that the SGR project was built for a total cost of
$3.2 billion (Sh360 billion); or, at the current currency rate, Sh453.3
billion. The majority of this money was borrowed from the Exim Bank of China
in May 2014.

 

During the campaign last year, one of the key concerns was making the SGR
contract public. After attaining power, the Kenya Kwanza team broke its vow
to provide all of the contract's terms to the public.

 

According to the most recent information, the government intends to invest
at least Sh2.1 trillion in the 2027 completion of two projects: the
expansion of the railway line from Suswa to Malaba and a separate line to
Isiolo.

 

Following the signing of a joint statement on the funding and development of
two key railway projects, the Malaba-Kampala SGR and the
Naivasha-Kisumu-Malaba Standard Gauge Railway, in their respective nations,
Kenya and Uganda, respectively, have begun construction on the projects.

 

With the help of Ugandan colleague Edward Katumba-Wamala and Transport CS
Kipchumba Murkomen, the agreement was formalized on Saturday. Uganda is on
pace to quickly finalize the deal for the Malaba-Kampala stretch, while
Kenya has already inked commercial contracts for its part of the SGR
portions.

 

Both administrations are making a concerted effort to raise money for
development. The two countries had previously intended to finance jointly
but encountered significant difficulties. Since then, they have agreed to
individually pursue finance for their own SGR portions, with Kenya
indicating its intention to do so for the Naivasha-Kisumu-Malaba SGR
stretch.

 

In the next months, the SGR and the meter gauge rail from Naivasha to the
Malaba border will be used more often to transport freight headed for Uganda
under the terms of the agreement.

 

 

 

Mapping to relocate Gwayi-Shangani families begins

Mapping to relocate Gwayi-Shangani families begins Speaking at a recent
International Organisation for Migration workshop for disaster risk
management practitioners from across Sadc in Victoria Falls, Local
Government and Public Works Minister, July Moyo, said different Government
teams were on the ground working on spatial planning for the relocation
areas.

 

Teams have been deployed by the Government to lead the mapping exercise that
will guide the relocation of families living on the area that will be
flooded by Lake Gwayi-Shangani in Matabeleland North, with those being moved
given first priority when the land irrigated by the dam is allocated.

 

The construction of the massive Lake Gwayi-Shangani in Matabeleland North
province is underway and is one of the milestones of infrastructure projects
being undertaken by the Second Republic led by President Mnangagwa.

 

It is the third largest interior dam after Tugwi-Mukosi and Lake Mutirikwi
with a maximum capacity of 650 million cubic meters.

 

The Zimbabwe National Water Authority (Zinwa) is constructing the dam
through China Water and Electric Corporation, a Chinese contractor.

 

Mooted way back in 1912, the dam project is part of the National
Matabeleland Zambezi Water Project that successive administrations failed to
kick start before President Mnangagwa pledged to complete the project.

 

Project implementation has been sluggish until the coming in of the Second
Republic, which has pushed it to over 70 percent completion, through its
vision to uplift livelihoods towards an upper-middle-income society by 2030.

 

Speaking at a recent International Organisation for Migration workshop for
disaster risk management practitioners from across Sadc in Victoria Falls,
Local Government and Public Works Minister, July Moyo, said different
Government teams were on the ground working on spatial planning for the
relocation areas.

 

 

While hazards and natural disasters have been on the increase in most
African countries as a result of climate change, he said Government wants to
make sure it is ready for such risks. 

 

“Our teams are working with the chiefs to properly know the numbers of
people we need to move as we don’t want to guess,” said Minister Moyo. 

 

“People from Zinwa will give us the water levels and how it will affect
people and which people will be affected. It is these issues that we want to
reorganise. We don’t want to talk about relocation but we want to reorganise
so that they can carry on with agriculture.”

 

He said at the moment it is not known how many people will be affected but
said the Government was committed to ensuring no one is displaced without
due diligence.

 

“The project is going to benefit people in the area as irrigation schemes
are going to be constructed by the Ministry of Lands. So, the people who
will be reorganised will be the first beneficiaries,” said Minister Moyo. 

 

“We cannot talk of numbers now because we are still formulating to see where
the water will rise to. We saw Lubimbi School and the business centre, but
we don’t know whether it will be affected until we get the final
recommendation from hydrologists. 

 

“Details of all this are with our planners from Government and we think that
probably we will finish this year and our people will be moved.”

 

The workshop was attended by various stakeholders from across Sadc and
organised to capacitate countries with knowledge and skills to strengthen
disaster risk management, climate change adaptation, and mitigation in
communities for sustainable development while strengthening early warning
systems through harmonised policies.

 

The IOM, a United Nations migration agency, funded the workshop through the
Africa Regional Migration Programme in partnership with the Government of
Zimbabwe.

 

Lake Gwayi-Shangani is viewed as the solution to the perennial water
problems in Bulawayo, and would help create a green belt along the line
where a 256km pipeline is being constructed. Government has already
identified 10 000 hectares of land that will be irrigated in various
districts in Matabeleland North as communities along the pipeline are
expected to benefit from the water passing through their villages.

 

A modest 10MW hydroelectric power station will be established on site, which
will boost electricity generation and add to the grid, while also supporting
the local communities and the planned tourism industry at the lake with
power. Tourism operators around Dete in Hwange have said Lake Gwayi-Shangani
will lead to the introduction of new activities that will help boost
arrivals in the tourism corridor.

 

 

 

 

 

Investors target opportunities across rural Mazowe

GROWING appetite for investment in Zimbabwe, including by locals based in
the diaspora, saw innumerable multimillion-dollar proposals to invest in
various economic sectors in the Mazowe Rural District during an investment
and business expo held on Friday.

 

The expo was attended by investors from the United States of America,
Singapore and South Africa who joined local businesspeople in making
proposals for investments in the area.

 

 

This year’s event, which was hosted by the Mazowe Rural District Council, is
the second investment conference by the local authority after the first one,
which was successfully held in 2019, yielding positive results in mining and
real estate.

 

 

Investor interest in Zimbabwe keeps growing, on account of the pro-business
and investor-friendly policies of the Second Republic, which saws the
country registering a 35,5 percent increase in proposed investment projects
to US$1 836 billion in the first half of the year.

 

 

A Zimbabwean based in the US, Sifiso Mathwasa, intends to bring back home
renewable energy technology and knowledge he acquired abroad through a
proposed US$7,5 million solar plant in Concession.

 

The solar plant will have the capacity to generate 6,2 megawatts.

 

“We will start with 2, 27 megawatts in the first phase and another 2,2
megawatts in the second and third phase. Initially, we wanted to do 25
megawatts but some of the land was not suitable and we scaled down,” he
said.

 

The solar plant will complement other public and private sector initiatives
to increase domestic power generation to close the existing demand gap.

 

“However, there is a new technology, which involves 1000-watt panels to
double the capacity of power in the same area. Getting permits was not
difficult through the support of the Government and local authority.

 

“We will bring three engineers from the (USA) who will train local staff so
that we can transfer the knowledge we picked up abroad. To my colleagues
abroad, business is open and everyone is opening doors for us and we feel
welcome.”

 

Mr Mathwasa said when they finish the first phase of the project they will
open a renewable energy school to educate locals about the future of
renewable energy.

 

Mazowe Citrus also presented their planned investment in Mazowee saying they
have earmarked US$2 million to kick start several projects around the Mazowe
Dam.

 

The company intends to build a conference centre on top of the mountain
opposite their kiosk at Mazowe Dam, which can accommodate more than 300
guests.

 

On the opposite mountain, the company has proposed to invest in the
construction of a helipad with the capacity to accommodate five helicopters.
Mazowe Citrus, represented by Mr Tapera Mazodza, said they have plans for a
bird sanctuary which will have different species.

 

A suspended bridge will be built to connect the two mountains, which will
give nature lovers an opportunity for bird watching.

 

“We also have plans for an upmarket restaurant which will serve
international meals. We want to start these projects as soon as possible so
that we contribute and add value to the tourism sector,” he said.

 

Economist and former chief Investments and corporate affairs officer at
Zimbabwe Investment and Development Agency Mr Tino Kambasha proposed an
investment into building a modern primary school in Mazowe.

 

He has already secured the requisite land totalling 255 hectares and funding
for the project. The school will have a sports academy and retreat centre
big enough to accommodate sports people seeking escape from big city noise.

 

“We are investing in people because that is the best asset that we have,” he
said.

 

Homelux founder Mr Justin Machibaya appealed for 5 to 10 hectares to build
12-floor skyscrapers.

 

He said the company also had plans to invest in cluster homes for the
elderly and retirement estate whose plan will encompass a dam.

 

Although Zimbabwe Tourism Authority stone age archaeologist, Dr Happinos
Marufu, said although little investment had gone into the area’s cultural
tourism, it emerged proposals have been made to build a culture centre at
Shavarunzi Hill in Cristonbank.

 

Mazowe District is where rock paintings, ancient granaries and Mbuya
Nehanda’s cave are found.

 

Dr Marufu said the northern corridor WAS rich in opportunities and the
history of Nyatsimba Mutota and the Mutapa state.

 

“Many of the places of interest are not developed, but they are equivalent
to other famous places across the country. Zimbabwean art is celebrated
outside the country and we are not doing much to promote our art and
culture,” he said.

 

“We need to promote tourism so that people can travel and see. These
destinations need to be accessible and policies put in place to promote
domestic tourism.”

 

 

Registered estate agents lose business to bogus actors

REGISTERED estate agents are losing 60% of business to bogus estate agents
who are also fleecing unsuspecting homeseekers of their hard-earned money,
NewsDay Business can report.

 

Recently, the Estate Agents Council of Zimbabwe (EACZ) blacklisted 74 real
estate companies operating in parts of the country for failure to register
with the council and fleecing people of their money.

 

Many of the estate agents are not in possession of Compensation Fund
Certificates, which are issued yearly by EACZ under the company’s name, and
should include the Principal Registered Estate Agent (PREA)’s name.

 

The certificate is supposed to be displayed in the reception area of every
real estate company.

 

Apart from bogus estate agents, the sector is battling with land barons who
are selling land, which, in some cases does not exist, exposing people and
businesses to risks.

 

EACZ immediate past president Alexander Millini told NewsDay Business on the
sidelines of a Property Management and Investment Masterclass organised by
Global Renaissance Investments (GRI) in Nyanga last week that unscrupulous
estate agents were taking away their business.

 

“The impact is quite devastating. Registered estate agents are losing about
60% of the business that should be going to their doors,” he said.

 

“We have the issues of greed and dishonesty where innocent people are now
losing their money. For example a property is sold to more than one person
and rental money is being received for properties that do not exist.

 

“This is not just in the cities, bogus agents are all over. The public needs
to be aware that estate agents need to be registered and adhere to some laws
and regulations.”

 

In many cases, these fake estate agents are using both mainstream and social
media platforms such as Facebook and Twitter to advertise and fleece
innocent citizens of hard-earned cash.

 

“The Estate Agents Council and the current leadership is seized with this
issue and some actions have been taken which I’m sure will increase
activities that will be shared with the public to warn the public about it,”
he said.

 

Millini said the council was also seized with the issue of land barons.

 

“The town council becomes distorted and now in disarray because now you also
have a place where there are stands parcelled about but there is no
infrastructure. You have houses built but no roads, no water, no sewer.

 

“What does this do? It looks like it is not even urban development. We are
not having social amenities; we are not having our constitutional rights,
for example water. The land barons do not care about such but we care.

 

“Because there is no connection between the old and the new structure that
would pull down the value of the existing structures by as much as 50%
simply because you share a boundary with that.”-newsday

 

 

 

Zimre Holdings records 510 percent growth

Zimre Holdings Limited’s property portfolio recorded 510 percent growth in
total rental income for the five months to May 31, 2023 on the back of USD
leases.

 

The group’s property segment ZPI delisted from the Zimbabwe Stock Exchange
(ZSE) in 2020. However, the segment has announced plans for listing a real
estate investment trust (REIT) on the equities market.

 

This comes as the group is refocusing its investments towards
infrastructure. The group has already registered the REIT known as Eagle
REIT which is expected to launch two projects in Mazoe and the resort town
of Victoria Falls.

 

“The location of these developments is not by chance as the group seeks to
urbanise the communities, address the housing deficit and promote economic
participation at all levels of society.

 

“The group’s property portfolio recorded a 510 percent growth in total
rental income contributing 5 percent to the group’s total income on account
of the conversion to USD leases, indexation and realignment of lease
agreements to optmise value from rental properties,” said ZHL chief
executive officer Stan Kudenga said in a trading update.

 

Overall, the group recorded total income for the period grew 554 percent to
$22,36 billion from $3,42 billion during the same period last year on the
back of an increase in United States dollar revenue inflows from local
entities from 35 percent to 65 percent.

 

Kudenga said regional reinsurance operations contributed 54 percent to the
group’s total gross premium written (GPW) and 36 percent to total income.

 

Life and pensions cluster accounted for 31 percent of the group’s total
income, while local reinsurance and reassurance operations contributed 23
percent.

 

An operating profit of $4 billion was recorded during the period under
review compared to $411 million achieved during the same period last
year.-ebusinessweekly

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


zIMBABWE

 

2023 harmonised elections

August 23

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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
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been compiled from s 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 d from third parties.

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

 


 

 

 

 

 

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