Construction and Property Corner ::: 07 August 2023

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Construction and Property  Corner ::: 07 August 2023 

 


 

 


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ü  Tigere bullish about property sector outlook

ü  Real estate sector, a lucrative investment option

ü  UK house prices drop again as Halifax says first-time buyers are
switching to smaller homes

ü  Huge processing plant construction at advanced stage

ü  Asphalt plant for Byo-Vic Falls road

ü  Lafarge Africa posts 29.02% increase in PBT for Q2

ü  Tackle payment fraud head-on in mining and construction

ü  Iraq’s budget to focus on infrastructure projects

ü  Saudi firms told to hire more nationals to get consultancy deals

ü  Qatari firm to build tourism village in Baghdad

ü  Saudi: 2.54mln employees work in construction and building sector

ü  Egypt, Chinese AVIC INTL complete consultations on Cairo Light Rail
Transit’s 3rd phase

ü  Egypt launches e-system for contracting, awarding to empower private
sector

 


 

 


 <https://www.willdale.co.zw/> Tigere bullish about property sector outlook

Tigere Property Fund is bullish about the outlook period with demand for its
properties strong amid revelations tenants are scrambling for space in its
assets, which currently have a 100 percent occupancy rate.

 

According to Tigere, the first Real Estate Investment Trust (REIT) to list
on the Zimbabwe Stock Exchange (ZSE), there is a strong waiting list of
tenants to take up any available space on its assets.

 

The company indicated that its two properties under the REIT, Highland Park
and Chinamano Corner, have experienced increased customer traffic during the
period under review.

 

“New tenants, among them restaurants, have opened for trade underpinning the
strong performance of the two assets,” said asset manager Brett Abrahamse in
a performance update for the half year to June 30, 2023.

 

“The surrounding areas continue to benefit from having high-quality retail
shopping experiences. Occupancy reached 100 percent during the period under
review due to an upsurge in demand for space at our assets. There is also a
strong waiting list of potential tenants,” said Mr Abrahamse.

 

Tigere Real Estate Investment Trust was incorporated in Zimbabwe in 2022 and
was listed on the ZSE on November 30, 2022.

 

During the half-year period, the REIT registered a net property income of
US$861 949 while distributable income came in at US$567 392. Rental income
totaled US$790 523 for the six-month period. The net asset value stood at
US$22,5 million.

 

The period under review was, however, not easy as the economy experienced
inflationary pressures as a result of the continued decline of the Zimbabwe
dollar against the US dollar.

 

However, the economic measures implemented by authorities in the second
quarter of 2023, have managed to stabilise forex rates through tight
liquidity management.

 

Commodity and agricultural prices remain relatively high, which has provided
a strong source of US dollars into the economy. A general slowdown towards
the end of the second quarter has been attributed to the wait-and-see
investor attitude associated with any election period and monetary policy
tightening.

 

As for the property market, it continues to see transactional growth in the
sale of existing stock and numerous developments taking place across the
country.

 

Steps to improve the regulatory environment for the property market are
being taken by Industry and government, which will make it easier for all
investors to participate.

 

Increased demand for properties due to a growing population as well as
outdated stock has also provided significant growth opportunities. Tenant
demand within most sub-sectors remains strong due to a shortage of quality
stock.

 

Meanwhile, construction of Highland Park Phase 2 is progressing well,
according to the company, and is expected to be completed in the fourth
quarter of 2023. The Tigere REIT holds a pre-emptive right to acquire phase
2 on completion.-herald

 

 

 

 

Real estate sector, a lucrative investment option

Although the real estate sector remains a lucrative investment option in
Zimbabwe offering real returns despite, the obtaining economic headwinds
pose serious threats to its full potential.

 

Since time immemorial, real estate has always been a safe haven for
investment during uncertain periods and a perfect hedge against inflationary
pressures for instance.

 

In the past few years, various real estate projects have been undertaken
across the country to cater for residential, office parks, industrial and
retail space to meet growing demand.

 

Companies like Terrace Africa rank among those that have been active, also
seen by their listing of what became Zimbabwe’s first real estate investment
trust (REIT) on the local bourse.

 

Zimre Holdings Limited (ZHL) has also indicated registering a REIT and plans
major projects for Mazowe area and Victoria Falls.

 

However, experts have noted the prevailing economic challenges characterised
by inflationary pressures, exchange rate volatility, the disparity between
official and parallel market rates and erratic utilities supplies make it
difficult for investors to pour in funding or complete projects on time.

 

“The Zimbabwean economy continues to face inflation, currency and exchange
rate headwinds affecting economic activity which in turn affect the property
sector,” said IH Securities.

 

As of June 2023, the inflation rate stood at 175,8 percent, with a
month-on-month inflation rate of 74,5 percent according to figures from the
Zimbabwe National Statistics Agency (ZIMSTATS).

 

Due to disparities between the official and parallel exchange rate,
suppliers of construction materials practice forward pricing leading to
significant cost pressures on property owners and developers.

 

The market also remains affected by slow space uptake in the central
business districts (CBDs) due to low formal economic activity.

 

After decades of economic meltdown, big businesses downsized operations
while others eventually closed forcing people to turn to the informal
sector. Additionally, the economy also struggled with the adverse impacts of
the Covid-19 pandemic with limited formal employment, thus further boosting
informality.

 

The challenges are not unique to Zimbabwe alone but prevalent across the
region.

 

“Apart from the poor availability of data on transactions, valuations of
properties and lack of international investors, the real estate sector in
Sub-Saharan Africa (SSA) has faced similar problems with the rest of the
world.

 

“The impact of remote work has hit some SSA cities harder than those in the
US, Europe and Asia,” said IH Securities.

 

According to a report by Knight Frank, Johannesburg has a 18,7 percent
office vacancy rate compared to London with a 9 percent vacancy rate.

 

However, the residential sector has seen rapid growth mainly as a result of
urbanisation which has increased demand for housing with Harare in need of
close to a million units to meet demand.

 

The industrial space also presents growth potential as the sector is seeing
increased demand following increased activity in agriculture and mining.

 

Apart from agriculture and mining, retailers are also coming in with strong
demand for space. As e-commerce increases, so does the need for warehouses
and industrial space.

 

“In recent years, there has been a shift from traditional in-store shopping
to online shopping resulting in an increased demand for warehouse space. The
worldwide prevalence of e-commerce has also made industrial real estate,
particularly warehouse real estate, an attractive investment.

 

“The e-commerce boom has given a strong boost to the popularity of
industrial properties and final-mile fulfilment centres,” said IH
Securities.

 

Worldwide, the desire for same-day delivery and the desire to get products
into customers’ hands sooner has helped to drive investments into last-mile
distribution complexes, IH opines.

 

According to JP Morgan, e-commerce accounts for less than 20 percent of
retail sales and there is room for growth.

 

-ebusinessweekly

 

 

 

 

UK house prices drop again as Halifax says first-time buyers are switching
to smaller homes

UK lenders have not, yet, made significant changes to mortgage rates since
the Bank of England lifted base rate to 5.25% last Thursday.

 

Moneyfacts reports that the average 2-year fixed residential mortgage rate
has fallen slightly to 6.84% this morning, down from 6.85% on Friday (and
for most of last week).

 

The average 5-year fixed residential mortgage rate today is 6.35%, unchanged
from Friday.

 

Former UK chancellor Kwasi Kwarteng has revealed he is among those suffering
from the jump in mortgage costs since his mini-budget last autumn, as he has
a tracker mortgage

 

In an interview with GB News last weekend, the former chancellor was asked
whether he felt any sympathy for those affected by the rise in mortgage
rates, before letting on that he was among them.

 

Kwarteng said:

 

“I’m probably revealing too much, but I’m on a tracker as well.

 

My bills have gone up considerably.”

 

Kwasi Kwarteng admits mini-budget turmoil affected his mortgage

 

House buyers should approach the market ‘with caution’, following the four
monthly falls in prices in a row, says Myron Jobson, senior personal finance
analyst at interactive investor:

 

For many, the decision to buy or not to buy hinges on where mortgage
interest rates land, Jobson points out:

 

Inflation is still key to the direction of mortgage rates. Fixed mortgage
rates dipped following the lower-than-expected fall in inflation in June
before creeping higher ahead of the Bank of England’s latest interest rate
hike. Inflation is expected to ease significantly in the coming months, led
by a fall in energy costs - which could pull down mortgage rates in the
process.

 

Put simply, if inflation starts to move meaningfully lower, this takes the
pressure off the Bank of England to continue raising interest rates, so
mortgage rates could follow.

 

“Buyers should proceed with caution. With home prices and mortgage rates
remaining elevated, buyers should be careful to avoid biting off more than
they can chew.”

 

Britain’s chronic problem of poor housing availability may support house
prices, even as it becomes more expensive to get a mortgage.

 

As Gareth Lewis, managing director of property lender MT Finance, points
out, there aren’t enough houses for everyone who would like to buy one:

 

‘The continued decline in house prices is unsurprising as the market remains
impacted by rate uncertainty and affordability issues. Buyers are continuing
to either play the waiting game or become more aggressive when offering on
properties.

 

But there are positive signs - there is still the desire to buy, but with a
realignment with what is realistic or achievable in value.

 

‘The housing market is resilient, there are still not enough houses to go
around so we will likely continue to see strong values, even with so much
uncertainty.’

 

 

 

 

Huge processing plant construction at advanced stage

CONSTRUCTION of the multi-million-dollar Cut Rag Processors Limited tobacco
processing plant is progressing well and likely to add impetus to the
country’s beneficiation and value-addition drive.

 

The first phase of the giant facility, which is located in the Lochinvar
industrial area, Harare, is almost complete.

 

The project — being funded to the tune of between US$80 million and US$100
million — provides huge momentum to the country’s thrust to grow the tobacco
sector to a US$5 billion industry by 2025.

 

“We started a few months ago; we are actually ahead of schedule,” said a
supervisor with one of the contractors at the site, who declined to be
identified because he is not authorised to talk to the press.

 

The company already manufactures cut rag (tobacco cut into fine strips) and
cigarettes (Remington Gold).

 

Repeated efforts to get a comment from Cut Rag managing director Mr Nyasha
Chinhara were unsuccessful.

 

However, in an earlier interview, Mr Chinhara said the plant would consist
of primary processing machines and a surface mount technology (SMD) line for
cigarette production.

 

The tobacco manufacturing process starts with the primary production of cut
rag blends and then secondary production that involves the making of
cigarettes.

 

Zimbabwe has three major cut rag producers — Cut Rag Processors, Amadol and
British American Tobacco (BAT).

 

Major cigarette manufacturers are BAT, Cut Rag Producers and Pacific.

 

“This is in furtherance of the company’s broad strategic direction
underpinned by the Tobacco Value Chain Transformation Plan, which seeks to
boost earnings from tobacco through value addition,” Mr Chinhara said then.

 

Cut Rag Processors was formed in February 2000.

 

It is believed to be the first independent cut rag production facility in
Zimbabwe, servicing both the domestic and export markets.

 

The establishment of the company paved the way for the merger of BAT and
Rothmans in 2000.

 

The Government, through the Competition and Tariff Commission, had rejected
the merger out of concern the merged entity would create a monopoly.

 

 

Between 2012 and 2014, the company scaled down operations when it closed its
cigarette plant. A year later, it decided to exit the tobacco business.

 

Cut Rag Processors provides cut rag processing and supply services to most
of the local cigarette manufacturers, as well as regional and international
customers.

 

Tobacco farming is one of the biggest empowerment stories in the history of
Zimbabwe.

 

Prior to the land reform programme, tobacco farming was a preserve of
large-scale commercial farmers.

 

However, the successful empowerment of the sector at primary level has not
translated into gains further down the value chain, where superior returns
are being made by leaf merchants and cigarette manufactures.

 

About 98 percent of the tobacco produced in Zimbabwe is exported in green
(semi-processed) form by exclusively big tobacco merchants.

 

With one or two exceptions, indigenous merchants have failed to penetrate
this market due to formidable entry barriers.

 

They include difficulties in accessing low-cost funding, long working
capital cycles, challenges in accessing markets in the exclusive “old boys
club” of global tobacco and lack of factory processing capacity.

 

Zimbabwe has three processing facilities owned by Zimbabwe Leaf Tobacco,
Tobacco Processors Zimbabwe and MTC.

 

Overall, Government’s Tobacco Value Chain Transformation Plan, which also
envisages growing tobacco output to 300 million kg by 2025, is premised on
expanding the leaf production base and setting up processing facilities, as
well as cigarette production factories, to maximise revenue from the cash
crop.

 

It also seeks to raise the localisation of tobacco production funding to 70
percent by 2025, and increase the level of beneficiation and value addition
to 30 percent from 2 percent. Approximately 96 percent of tobacco funding is
foreign.

 

Tobacco deliveries rose to a record 293 million kg this year, surpassing the
projected output of 231 million kg.

 

Zimbabwe — the world’s sixth-largest tobacco producer — is processing only 2
percent of the yellow leaf. – Sunday Mail

 

 

 

 

Asphalt plant for Byo-Vic Falls road

BITUMEN World, the company contracted by Government to rehabilitate the
Bulawayo-Victoria Falls Road, has established an asphalt production plant in
the Gwayi area between Lupane and Hwange in Matabeleland North province to
speed up the process.

 

Asphalt refers to a combination of bitumen (tar), sand, cement, and some
chemical additives that are mixed together at high temperatures depending on
engineers’ specifications, and are used for major construction projects.

 

The Government has facilitated the swift deployment of the contractor, which
has since deployed its teams to different points along the highway to
undertake intense pothole patching, resurfacing and repairing damaged road
edges.

 

The total budget for the project is yet to be disclosed.

 

It took President Mnangagwa’s intervention to ensure the speedy response
following an outcry by stakeholders who felt the damaged highway was now
risky to motorists as it caused accidents while businesses were incurring
high costs on fleet repairs with a huge strain on the tourism industry, in
particular.

 

The Bulawayo-Victoria Falls Highway is a strategic trade route on the
regional north-to-south corridor, linking Zimbabwe with South Africa,
Zambia, Botswana, Namibia as well as the DRC. Road construction falls under
the infrastructure clusters and roads are regarded as key economic enablers
in the attainment of Vision 2030, that of achieving an upper-middle-income
society.

 

In an interview on Friday, Asphalt Plant technician, Mr Thomas Nyamuzinga,
said the establishment of the new plant began three days ago as part of
efforts to accelerate the rehabilitation of the road.

 

“This equipment is called an asphalt plant. It is responsible for mixing
bitumen, sand, and other aggregates to produce asphalt that we use to cover
potholes,” said Mr Nyamuzinga.

 

After covering the potholes, we are going to bring other road surfacing
machines that are going to spread again on the surface covering the
potholes.”

 

Mr Nyamuzinga said the process is expected to be complete in about two
months.

 

“So, it’s going to take time, maybe two months from now and the plant will
be ready and we will start bringing in our road surfacing equipment. There
is still more equipment to come, especially the road surfacing equipment,
some tippers to bring it quarry from Jotsholo,” he said.

 

“Obviously, (works) will be very much quicker because we used to source
material from Harare where our biggest plant is. So, this one around here in
Matabeleland is the first one, and it will be closer from here to Bulawayo
and from here to Victoria Falls. It’s on the central position and will serve
the whole highway.”

 

Mr Nyamuzinga said the scope of rehabilitation works includes pothole
patching and resurfacing. He, however, said in other portions of the road,
which are extensively damaged such as in Hwange, the contractor is doing
total reconstruction.

 

He said Bitumen has another bigger asphalt plant in Makuti area along
Chirundu Highway where the company is doing similar upgrade works.

 

Along the highway, the news crew observed that the most dangerous potholes
had been completely sealed between Lupane and Hwange and motorists are
enjoying their drive once again.

 

The stretch between Bulawayo and St Luke’s, while still has some potholes,
major ones have been sealed and the contractor is closing the gap.

 

The Government declared the state of roads infrastructure in the country a
state of emergency following heavy and destructive rains in the last two
years and has been rehabilitating the road network through the Emergency
Road Rehabilitation Programme, which is set to be succeeded by the Road
Development Programme with the aim of developing the country’s roads to meet
world-class standards in line with Vision 2030.

 

Victoria Falls-Bulawayo Road had over the years deteriorated to appalling
levels resulting in a number of fatal accidents as motorists tried to
navigate around the potholes.

 

Bitumen World’s chief executive, Mr Andre Zietsman, last week assured
stakeholders that maintenance works would likely be completed within the
next 11 months. He noted that since the commencement of works in the past
few weeks, they were progressing well and that their estimates were that the
close to 400km highway will be fully repaired in the next 11 months.

 

He said at the moment the contractor was seized with emergency
rehabilitation works between Hwange and Victoria Falls where a 32km stretch
needs complete reconstruction.

 

Haulage trucks, mainly from the coal mining areas in the Hwange district,
have been largely blamed for the rapid deterioration of the load, leading to
legislators calling for the implementation of a resolution that 15 percent
of minerals or cargo from mining houses be transferred to the National
Railways of Zimbabwe (NRZ).

 

However, the railway entity has been facing challenges resulting in most
businesses resorting to using heavy trucks on the roads, which has been
blamed for damaging major highways, which increases the cost of maintenance
and rehabilitation.

 

 

 

Lafarge Africa posts 29.02% increase in PBT for Q2

LAFARGE Africa has reported a 29.02 percent increase in its Profit before
Tax (PBT) in its 2023 second quarter (Q2) results to N32.787 billion, while
the half-year PBT increased to N55.315 billion as against N46.879 billion in
the same period last year.

 

According to the results released at the Nigerian Exchange Limited (NGX),
its revenue also went up by 10.29 percent to N105.860 billion in Q2 2023.

 

In his comment on the released financial results, CEO, Lafarge Africa Plc,
Lolu Alade-Akinyemi, appreciated employees and stakeholders of Lafarge
Africa for another quarter of strong results, despite the challenging
economic environment.

 

“We remain focused on delivering sustainable value to all stakeholders as
the market recovers for the rest of the year.

 

“We achieved strong top-line growth of 10.3 percent in Q2 and 5.9 percent in
H1; operating profit growth of 13.3 percent in Q2 and 7.7 percent in H1 and
Profit Before Tax improvement of 29 percent in Q2 and 18 percent in H1.
Owing to the expiration of the Pioneer Status Incentive, Q2 Profit After Tax
growth was a muted 3.2 percent. This is backed up by a strong free cash flow
position and healthy balance sheet.

 

“The recent launch of our eco label cement brand re-affirms our commitment
to delivering superior value to our customers. This new product has been
certified to be eco-friendly with 30 percent lower carbon emission than the
local industrial standard.

 

“Our strategic and cost management initiatives have contributed to improved
results despite the challenges. We remain steadfast in our commitment to
driving innovation and accelerating green growth in line with our
sustainability ambitions and targets,” he said.

 

It will be recalled that on June 26, Lafarge Africa announced the launch of
Eco Label cement brand. Eco Label represents a broad range of green cement
for high performance, sustainability and circular construction. This
initiative supports the Lafarge Africa’s ambition to accelerate green
construction with the use of eco-friendly products.

 

The products that are certified to be eco-friendly have a 30 percent lower
carbon footprint compared to the local industry standard (Global Concrete
and Cement Association). Lafarge UniCem brand, which contributes about 23
percent of the company’s entire volume is now eco-friendly.

 

By the production of this eco-friendly cement, Lafarge’s end-users have the
opportunity to make greener choices and accelerate the country’s carbon
reduction journey in the manufacturing sector.

 

Giving an outlook, Lafarge Africa, in a statement, said the Nigerian
infrastructure and construction sector is expected to continue to grow
despite inflationary pressure on purchasing power.

 

“As a result, we maintain our positive outlook, with market recovery
expected for the second half of the year. We will continue to maximise
volume opportunities across our markets and actively manage our costs. The
company remains committed to its sustainability ambitions and strategy of
‘Accelerating Green Growth’ through innovative building solutions and
delivery of stakeholder value.”

 

 

 

 

Tackle payment fraud head-on in mining and construction

As one of the top 10 mining countries in the world, South Africa’s economy
relies heavily on this industry as well as those closely related to it, such
as construction. Yet this also makes these industries attractive targets for
cyber criminals.

 

The mining industry is among the most at-risk industries for fraud and in
some countries it tops the list of revenue lost due to fraud, closely
followed by construction. Due to the nature of these industries and the
often-elaborate fraud schemes that target them, huge losses can result from
just one instance of fraud.

 

Furthermore, fraud is on the increase – PwC’s Global Economic Crime and
Fraud Survey 2022 revealed that 51% of organisations have experienced fraud,
corruption, or other economic crimes in the last 24 months.

 

“Clearly, today’s CFO needs to be highly attuned to the constantly evolving
fraud landscape,” says Ryan Mer, CEO of eftsure Africa. “Payment fraud,
supplier fraud and tender-related fraud poses a significant risk in the
mining and construction sectors in South Africa. Companies operating in
these industries need to stay on top of ever-evolving fraud trends and adapt
their defences accordingly, or it could impact their financial stability.”

 

Mer gives these tips to do exactly that:

 

Never neglect background checks

 

Mining and construction companies require comprehensive background checks to
verify the credibility of suppliers. In addition, South Africa’s Mining
Charter, which sets out to achieve inclusive procurement, and supplier and
enterprise development, requires organisations to record and report on these
as part of general due diligence and compliance. These background checks
should involve scrutinising supplier directors, checking for any politically
exposed persons (PEPs) and sanctions, and linking directors to employees.

 

Companies with international suppliers may face limitations in verifying
foreign supplier information, adding complexity to fraud prevention efforts.
Nevertheless, these companies can still utilise onboarding platforms and
automated verification processes for local suppliers to enhance efficiency
and reduce payment fraud risks.

 

Not only will these extensive checks ensure compliance, but also help
identify potential risks and reduce the likelihood of fraudulent activities.

 

Collaborate to reduce costs

 

Mining and construction businesses can consider partnering with specialised
companies to conduct background checks on suppliers. Such companies offer
extensive reports that include crucial information for assessing supplier
credibility.

 

The challenge lies in determining the pricing structure for these reports,
as they typically charge per report. Balancing the costs of these
verification reports while maintaining competitive pricing structures will
be crucial for success. Consider negotiating collaborative contracts with
these companies, or integrate the price into services offered to offset
costs. Once an organisation has credible background reports on its suppliers
and vendors, it’s crucial that continuous payment control and monitoring
measures are in place to protect the integrity of key supplier information,
including payment details.

 

Keep training up to date

 

As threat protection becomes more sophisticated, fraudsters are targeting
people to circumvent digital security measures. Digital security really does
help, but personnel training is crucial. Otherwise, it’s like having the
best security at your house, from beams to alarms to fencing, and letting
someone through the gate without checking their credentials.

 

And don’t stop there: training materials must be regularly updated as fraud
trends change, and employees must be made aware of these updates.

 

Don’t just automate; integrate

 

Because people are often the weakest link in the security chain, most
companies today have automated processes in place to minimise the risks
associated with manual processes. The next step is to not only automate, but
to integrate.

 

A Software as a Service (SaaS) provider like eftsure can help enhance
processes and limit payment fraud risks by providing an integrated
onboarding, verified master data management and payment screening solution
that cross-references the payments an organisation is about to release with
a database of verified bank account details.

 

This can be integrated into anything from ERP and accounting systems to
sales and customer relationship management systems. The platform alerts you
to any potentially compromised payment details, allowing you to deal with
the problem before the flow of funds has occurred.

 

Insure, in case

 

Even with the best mechanisms in place, it’s still possible to become a
victim of fraud. Fidelity insurance is a class of insurance designed to
protect against losses resulting from fraud or theft by an employee and is
crucial to the survival of one’s business in such instances. One of the main
requirements of a fidelity policy is to have mechanisms for checking and
controlling accounting and business processes.

 

“Having the above measures in place will not only help prevent any losses
from occurring in the first place, but will also decrease spend on fidelity
insurance premiums and ensure that any losses that slip through the cracks
will be covered,” notes Mer.

 

 

 

 

Iraq’s budget to focus on infrastructure projects

Iraq’s record spending endorsed by the cabinet and Parliament in June will
give priority to infrastructure projects, an official was quoted on Monday
as saying.

 

New projects in various sectors will be launched by the end of 2023 and in
early 2024 following the approval of the budget which contains large capital
allocations, Planning Ministry Undersecretary Maher Jouhan said.

 

In a statement published by Al-Forat News agency, Jouhan said spending
outlines would be published in the official media at the end of this week.

 

“The larger part of the budget will be dedicated to executing strategic
infrastructure projects, including power, health, education, water sewage
and housing
there are many projects in this sector
when they materialise,
they will largely benefit the services sector,” he said.

 

Jouhan said several projects would be approved this year and in 2024, adding
that priority next year would be given to completing stalled projects.

 

Officials said last month there are more than 1,000 large stalled projects
in Iraq and that they would benefit from the 2023 record spending of $153
billion.

 

 

 

 

Saudi firms told to hire more nationals to get consultancy deals

Saudi Arabia will give priority in consultancy contracts to companies
abiding by a new law to hire more nationals in consulting jobs in the
construction sector, a local newspaper reported on Monday.

 

The Arabic language daily Aliqtisadiha quoted government sources as saying
the decision aims to ensure all consultancy jobs in the construction sector
are occupied by Saudis as part of a drive to tackle national unemployment.

 

The report noted that Saudis accounted for only around 14.5 percent of the
nearly 2.17 million workers in the Gulf Kingdom’s construction sector at the
end of June.

 

It said the Human Resources and Social Development Ministry has recently
started implementing the first phase of a decision for the “Saudisation” of
the consulting jobs in the contracting industry in all parts of the country,
adding that phase 1 includes increasing Saudi consultants to 34 percent of
the total.

 

“The Ministry will offer a package of incentives to companies complying with
the decision including supporting training and rehabilitation of Saudi
workers,” it said.

 

“The Ministry will also ensure that consulting contracts are dependent on
the extent of compliance with that decision
it has also warned that
companies failing to abide by the decision will be subject to penalties,” it
added.

 

 

 

 

Qatari firm to build tourism village in Baghdad

A Qatari investment group is planning to build a large tourism village in
the Iraqi capital Baghdad comprising a hotel, houses and restaurants, Iraq’s
media reported on Monday.

 

The Iraqi cabinet has approved the project proposed by Estithmar Holding, a
public listed group with a diverse portfolio of 51 companies, the report
said.

 

Iraqi Prime Minister Mohammed Al-Sudani on Sunday reviewed an outline of the
project in central Baghdad and said it would receive government support,
Shafaq News agency and other Iraqi publications said, citing a statement by
Sudani’s office.

 

The 47,000-sq-metre project includes the construction of a hotel, public
halls, a chain of international restaurants and houses inspired by the
history and civilisation of Mesopotamia, the report added.

 

In June 2023, Estithmar Holding announced the signing of three memorandums
of understanding worth $7 billion with Iraq’s National Investment Commission
(NIC) to develop new cities, 5-star hotels and manage and operate several
hospitals in Iraq.

 

 

 

 

Saudi: 2.54mln employees work in construction and building sector

RIYADH — The number of employees who are subject to Social Insurance laws
and regulations and work in the construction and building sector has reached
about 2.54 million by the end of the Q1 of 2023.

 

According to Al-Eqtisadiah, the foreign workers, who are subject to Social
Insurance laws, have the highest percentage at about 85.5%, and constitute
about 2.17 workers.

 

As for the Saudis in the sector, they constitute 14.5%, with about 368,000
workers.

 

The number of male workers in sector reached 2.39 million, while the number
of female workers reached 154.2 workers. The highest percentage for the
females in the sector was for the Saudi women workers.

 

The Saudi capital Riyadh has come on top with the highest number of workers
in the sector by 47.3%, with 1.2 million workers, followed by Al-Sharqiyah
region with 673.2 thousand workers, then Makkah region with 447.3 thousand
workers by the end of Q2 of 2023.

 

 

 

 

 

 

Egypt, Chinese AVIC INTL complete consultations on Cairo Light Rail
Transit’s 3rd phase

Beijing – Qian Rong, Chairperson of the Chinese company AVIC International
Holding Corporation (AVIC INTL), which is responsible for carrying out Cairo
Light Rail Transit (LRT), stated that the first project implemented by the
company in Africa was in Egypt, which is the best evidence of the good
relations between the two countries.

 

The LRT is the first light speed train in Egypt and one of the newest means
of transportation in the country. Egypt’s plan for this project is to
connect El Salam City (Cairo’s east side) with the New Administrative
Capital, through the 10th of Ramadan City.

 

During a meeting in Beijing, Rong said that the LRT project is being
developed at an estimated cost of $1.2bn.

 

He added that the company is working hard to complete this project as soon
as possible.

 

He told Daily News Egypt that negotiations and consultations with the
Egyptian government are almost completed in order to execute the third phase
of the LRT but contracts have not been signed, expecting signatures could be
done before the year-end.

 

He commented that the first phase of the project did not face any financial
difficulties in getting their dues due to it being paid by Chinese loan,
however, the company is still waiting for its dues of second phase
implementation cost.

 

The project was planned to begin in 2014 but it has already started in 2019.

 

Rong said the Chinese yuan might be used to conduct financial transactions
with Egypt in the next phases of the project if the two governments agree
on, elaborated that subcontractors who executed civil works could be paid in
local currency [Egyptian pound] nevertheless the other dues should be paid
in dollars for materials and equipment used in the project.

 

He disclosed that the cooperation between Egypt and China is going through a
wonderful stage, describing the Egyptian government at the moment as very
diligent and working hard to complete the LRT project and other transport
projects.

 

“Egypt and the Middle East are very important for the Chinese company, as
there is a great opportunity to increase investments and work in those
areas,” the company’s director said. “We enjoy very strong relations with
Middle East countries, especially Egypt.”

 

Regarding the company’s future plans in Egypt, Rong explained that there is
a plan to execute the third and fourth phases of the LRT project and many
important projects in the field of infrastructure.

 

He revealed that negotiations are underway with the Ministry of Transport of
Egypt to establish a joint venture to manufacture equipment for the LRT in
Egypt.

 

AVIC’s chairperson concluded that the company is cooperating with the
Egyptian government to provide vocational training for students and first
two patches of the graduates of these trainings are working in the LRT
project.

 

 

 

Egypt launches e-system for contracting, awarding to empower private sector

Arab Finance: Egypt has launched the new electronic contracting system and
applied it at the entities transferred to the New Administrative Capital as
of July 1st, Minister of Finance Mohamed Maait stated on August 5th.

 

This aims to enhance the competitiveness of the private sector in government
projects, he said.

 

Maait noted that the country is targeting applying the electronic
contracting system on a larger scale gradually to cover the entire
administrative entities in the country.

 

This would boost electronic connection between government systems as well as
their integration, which contribute to the consolidation of governance
principles and achieving transparency in all procedures to attain the best
offers and tenders, Maait added.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


EcoCash

EGM

virtual

August 7 –  (10am)

 


Econet

EGM

virtual

August 7 –  (2:30pm)

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


Padenga

EGM

Royal Harare Golf Club

August 16 – (10am)

 


Border Timbers

EGM

4 – 12 Paisley Road, Southerton, Harare, or virtually
:https://escrowagm.com/eagmZim/Login.aspx” 

August 18 – (10am)

 


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
subscribe for any securities. The information contained in this report has
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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