Cecil Hotel will be home to Club Connect

Bruce Ndlovu
With the festive season around the corner, Connect – a new joint which purports to serve the needs of the mature and well-to-do reveller, is set to open next Friday.

Located inside Cecil Hotel, the joint will seek to bring a new ambience and classy vibe as a contrast to the raunchy pleasures offered in the hotel’s basement at the famed Private Lounge.

To emphasise the point that it will only cater for those that are looking for a different, but relaxed club experience, the joint will only open on Fridays and Saturdays.

“We’re targeting the kind of clientele that doesn’t go out every day, but instead chooses select days to go out and spend their money. The thought behind this is that the kind of reveller we’re going for is one that’s busy working during the week, but wants to have a good time during the weekend. They work hard so that they can play hard,” said the joint’s owner Biggie Chinoperekwei.

He said although some people thought that clubbing was largely a youthful activity, the new joint would place emphasis on the older, mature crowd. This, he said, would be reflected in the music that will dominate the joint’s DJs playlists.

“We want to make sure that the older crowd also feels welcome so the music played by the DJs will be geared towards their tastes. What we want to offer is an international experience and if one can afford it, then we’ll open our doors for them,” he said.

Chinoperekwei said although the joint might seem too elite and expensive for some, the experience and environment it would offer would be worth every penny spent.

“Right now, we’re fixing the stage, but everything will be in order by the time the club opens. From the lighting and décor to the top class DJs that will play at the joint, no one will be disappointed. Our main thrust is to make sure that everyone gets value for their money,” he said.

Although the joint is looking to woo mature revellers, he said, it does not mean that there would be regular live music. He, however added that some of the country’s hottest artistes would be invited periodically to perform.

“The DJs will do the bulk of the work,” he said, “but we’ll bring in some of the country’s best live performers to showcase their skills from time to time.”

Chinoperekwei said the joint will offer an environment that is unavailable at any club in Bulawayo, which he and his team are determined will live up to all their big talk and promise.

Those seeking to enter the new joint will have to pay a fee which is yet to be determined.

@BruciEEye

President Mugabe

Oliver Kazunga, Senior Business Reporter
THE Government will issue Treasury Bills valued at  $10 million to capitalise the Small to Medium Enterprises (SMEs) microfinance bank as part of measures to support growth of young businesses.

President Mugabe said this in Parliament yesterday during the State of the Nation Address in Parliament.

“The Small and Medium Enterprises and Co-operative Development Ministry plays a vital role in the growth of our country’s economy.

Government capacitates the sector through training, infrastructure provision, marketing and the creation of the entrepreneurship development,” said the President.

“In order to improve access to finance by SMEs and co-operatives, Government approved the establishment of a microfinance bank under the Small to Medium Enterprises Development Corporation. The bank will be capitalised through the issuance of Treasury Bills valued at $10 million.”

In the 2016 monetary policy statement, Reserve Bank of Zimbabwe Governor Dr John Mangudya highlighted that the microfinance bank would be required to identify clusters within the SME and co-operatives cluster that can be nurtured throughout the country.

The setting up of the microfinance bank is expected to go a long way in alleviating financial challenges SMEs have been facing.

Despite their critical role in economic development, SMEs in the past have failed to access funding from the banking sector due to tight collateral requirements.

As a result of lack of financial support, SME operations have been hamstrung.

Due to the prevailing economic climate, businesses in the formal sector have either scaled down or closed, leaving thousands of people unemployed.

Against this background, the SMEs contribute close to 60 percent of employment in Zimbabwe.

Players such as the Zimbabwe Association of Microfinance Institutions has said the SMEs sector require strategic guidance and financial support to be able to play a bigger and effective role in driving the economy.

An estimated $5 billion is believed to be circulating within the informal sector and the Government last year announced plans to formalise SMEs operations to tap into the sector.

@okazunga

Bhekimpilo Nyoni

Ricky Zililo, Senior Sports Reporter
THE Premier Soccer League’s disciplinary committee has slapped Bulawayo City FC with a $2 500 for using over-age players in their developmental ranks.

The players concerned, Lewis Ncube, Dean Pelius Sibanda and Bothwell Nyathi were also found guilty and have been hit with 12 month bans.

The trio used fraudulent documents which led to them being registered in the development quota, reserved for Under-20 players at the beginning of the year.

City are expected to pay $2,000 by end of this month, with the remaining $500 suspended for the remainder of the 2017 season on condition the club is not convicted of any offence involving dishonesty.

According to a summary of judgments released yesterday, Amakhosi, as City are affectionately known, contravened order 31.2.8 of the PSL rules and regulations, that is knowingly furnishing incorrect information, of whatsoever nature to the PSL.

City are lucky to escape with just a fine as the league’s disciplinary committee had said issues to do with age cheating deserve stiff penalties.

“Clubs must be at the forefront of confronting and eliminating cheating, not to be seen as aiding or abetting through commission or omission. A severe sentence is the most appropriate under these circumstances as such behavior can easily become cancerous,” reads part of the City’s judgment.

For submitting wrong dates of birth on the forms that were then submitted to PSL by City the players were banned from all football activities for 12 months, three months of which have been suspended on condition the players do not within that period commit a similar offence. The players were instructed to each pay a third of the costs of the hearing by December 31, and neither player shall participate in any PSL officially sanctioned match even after serving the ban until they pay their share of the costs.

Punishment passed on Ncube, Sibanda and Nyathi is likely to be welcomed as the sport has become infested with age cheats.

With the PSL seemingly taking no prisoners with regards to age cheating, most youngsters who have been encouraged to alter their ages so that they compete in junior competitions will have second thoughts about using their fake documents.

Bhekimpilo Nyoni, of BN Academy and also the chairman of the Zimbabwe Soccer Coaches Association (Zisca) applauded the PSL’s decision and challenged Zifa to also come hard on age cheats.

“When the PSL introduced the juniors’ quota, they wanted to give youngsters a chance to play but unscrupulous administrators have defied the spirit of Fair Play by using over-age players under that slot.

“The action taken by PSL’s disciplinary committee showing that they don’t condone age cheating is very good. What Zifa needs to do is to descend on those who influence and corrupt the developmental stages such that we end up having ‘reborn’ youngsters. Even members of the community who know age cheats should come out so that deserving youngsters get opportunities to play and develop,” said Nyoni.

@ZililoR.

PSL chief executive officer, Mr Kennedy Ndebele

THE 2016 season, in football memory, will be remembered as the year that Caps United clinched their fifth league title in their history.

It’s also a year in which the most lethal striker, for lack of a better term, scored the lowest number of goals in the history of the Premiership and possibly since Zimbabwe gained Independence in 1980.

Caps United’s Leonard Tsipa scored only 11 times and for his efforts he was rewarded with $4 000 by sponsors, Delta Beverages, through their Castle Lager brand.

Makepekepe clinched the league title on the last day of the season with a 1-0 win over Chapungu United despite their closest rivals FC Platinum posting a 3-0 win over Tsholotsho on the same day, ending a highly competitive season.

On their way to victory, The Green Machine, under their former skipper Lloyd Chitembwe, scored 42 goals, three less than 2015 champions Chicken Inn. Caps United’s goals were 9,33 percent of the total number of goals scored in the league this season which stands at 450. The figure is a massive 52 goals less than the 2015 figure.

The season was generally a peaceful one administratively that is, with the fixtures running smoothly as per calendar, a huge thumbs up to the leadership, especially the secretariat who run the day to day activities of the league. It is the reason the sponsors of the league actually expressed their satisfaction on how the league was run, with a special mention to the chief executive officer Kennedy Ndebele and suspended chairman Peter Dube.

The sponsors though, dropped a bombshell when they announced through their marketing executive Maxen Karombo that they were finding it difficult to commit themselves to extending their contract which expires this year largely due to the suspension of Dube by Zifa.

Delta Beverages also cited the unresolved promotional issue arguing that it was making life difficult in terms of planning although critics would also argue and ask why negotiations had to wait until the season end.

Fears are growing every day that the biggest league in the country could be unbranded for the second time in 11 years next season, having gone through the agony before.

On the playing field the race became a three-horse dash very early in the season as it became clear that Caps United, FC Platinum and Highlanders would fight tooth and nail to the bitter end.

There was the normal movement of coaches as the season progressed, with notable sackings and engagements at Chicken Inn, Ngezi Platinum, Bulawayo City, Hwange and fallen giants Dynamos.  Just days after the season ended, Harare City parted ways with their coach Moses Chunga while Chapungu’s John Nyikadzino also left.

Another highlight of the season, apart from the league title win by Caps United was Ngezi Platinum winning the top cup competition in the local game, the Chibuku Super Cup, in their first season in the topflight. Ngezi Platinum will be representing the country in the Caf Confederation Cup next year, having secured that right after they clobbered FC Platinum 3-0 in the final played at Baobab Stadium.

For the first time in many years, there was a general acceptance of the 11 soccer stars of the year finalists who were chosen last week. Caps United’s Hardlife Zvirekwi became the 47th Soccer Star of the Year since the inaugural award in 1969 won by the legendary George Shaya.

This indeed was a successful season but we expect the cloud over the relegation/promotion dispute to be resolved expeditiously. We also expect the return of stability in the hierarchy of the league.

Without order we doubt that the sponsors that the league sorely needs would commit to supporting the elite football competition next season.

Without financial backing from a league sponsor, many clubs are likely to struggle in financing their participation. Competition might also be adversely affected.

Anna Mguni

Sikhumbuzo Moyo, Senior Sports Reporter
A MASSIVE doping scandal has rocked the sport of swimming in the country with young swimmers allegedly being injected with banned substances two weeks before major competition events.

Swimmers as young as 14 years have been victims of the dark secret that has also sucked in a top medical centre in the capital (name withheld), which is believed to be charging $140 per single jab.

Investigations by Chronicle Sport have revealed that athletes have been taking banned Vitamin B, through what is known as the Intravenous (IV) infusions.

According to the World Anti Doping Agency, Intravenous (IV) infusions have been included on the WADA List of Prohibited Substances and Methods under section M2.

“The wording in the 2015 Prohibited List states that Intravenous infusions or injections of more than 50 ml per 6 hour period are prohibited except for those legitimately received in the course of hospital admissions, surgical procedures or clinical investigations (1),” says Wada.

Some of the swimmers said to have taken the prohibited substance under the World Anti Doping Agency are part of the Team Zimbabwe that left the country yesterday for the African Union Sports Council Region Five Games. Zimbabwe Olympic Committee (ZOC) last night confirmed getting heed of the matter but said they are yet to get a formal complaint.

Sources however revealed that some influential administrators and parents have made sure the scourge “which has been going on for years” is swept under the carpet.

A source said panic buttons were pressed during the recently held Mashonaland Swimming Championships after an official from the Zimbabwe Swimming Board and Control, Caroline Hawgood made an announcement about doping in the sport.

“The announcement was made by Caroline Hawgood although I don’t know what post she holds in anti- doping in swimming. The ‘Vitamin B’ injections have been going on for years. Parents pay maybe every Thursday and nurses come to inject. Little did we know it was illegal,” said a source.

The source said one parent (name supplied but withheld) owned up and asked for the withdrawal of her son (name withheld due to age) from the national team as he had been injected with the banned substance.

Investigations further revealed that a doctor identified as Austin Jeans was assigned to  investigate the doping allegations.

Contacted for a comment Hawgood said: “Please wait until ZOC medical council have completed their investigations.” However, ZOC chief executive officer Anna Mguni said no formal investigations are being carried out by the organisation.

“The 2015 WADA code allows people to come forward and report suspected cases of doping and such cases can be investigated. No such reports have been formally submitted to ZOC: the allegations provided are speculative and in relation to this, ZOC has not mandated Dr Austin Jeans to investigate. Any consultation he has been undertaking has been principally in his capacity as a sports medical expert, having been approached in his private capacity.

“I refer you specifically to the WADA Code Articles Two and Three, related to Anti-Doping Rule Violations and Proof of Doping as some of the fundamental areas that require investigation and verification, if and when a substantial report is made. The code also outlines the list of prohibited substances that people must know and follow. There are ten specific violations in the code which must be clearly understood and thereafter it has to be seen whether any have been violated by the aforementioned sport code. The plan of Action at this stage is to gather facts out of rumours and engage the swimming federation in a transparent manner,” said Mguni in an emailed response last night.

@Skhumoyo2000

Cde Kasukuwere

Zvamaida Murwira, Harare Bureau
Government has invoked the recently promulgated Local Government Act to deal with Gweru City councillors led by Mr Hamutendi Kombayi who were facing allegations of misconduct, incompetence and abuse of council funds, Parliament heard yesterday.

Local Government Public Works and National Housing Minister Saviour Kasukuwere said Government would now proceed with the relevant law that provided for suspending mayors and councillors through appointment of an independent tribunal.

He was responding to a question from Mkoba MP Mr Amos Chibaya (MDC-T), who wanted to know why the councillors were not being reinstated after Minister Kasukuwere withdrew his appeal recently at the Supreme Court challenging High Court decision to reinstate the 11 councillors.

“We have withdrawn our case. We will now proceed in terms of the Local Government Act. All those facing different allegations will go before a Tribunal in terms of the law. Those who are clean will come back to resume their duties,” said Minister Kasukuwere.

He defended the decision to allow a commission led by Mr Tsunga Mhangami to continue running the city saying the remaining councillors did not constitute a quorum.

Gweru Urban MP Mr Cecil Zvidzai (MDC-T), had alleged that the three councillors that came through a by-election should be allowed to run the affairs of the city.

“The quorum for Gweru is 11 and we have three councillors,” said Minister Kasukuwere.

He said he was happy with the commission running Gweru City Council and he had received a report updating him on several developments about the city.

He said several vehicles had been bought to enhance service delivery.

Meanwhile, legislators rapped the continued absence of Government ministers to field questions saying that impeded their oversight and representative role.

Mutare Central MP Mr Innocent Gonese (MDC-T), said it was prudent that presiding officers briefed the Houses on those ministers who would be absent.

Buhera South MP Cde Joseph Chinotimba (Zanu-PF), said the continued failure by ministers to attend parliament business created international attention as it gave MDC-T ammunition to attack the Government.

“Vice President Mnangagwa should sit down with his ministers. Honourable Gonese will get international attention yet he will not be telling the truth,” said Cde Chinotimba.

VP Mnangagwa who is also Leader of Government Business said he always reminded his colleagues during Cabinet sitting on the importance of them attending question time but said they could all not attend at the same time as there were other commitments demanding their attention.

Minister Patrick Chinamasa

Herald Bureau
FINANCE and Economic Development Minister Patrick Chinamasa is expected to present the 2017 National Budget this afternoon largely oriented towards a cocktail of incentives to boost local production while encouraging foreign direct investment.

Minister Chinamasa’ s budget comes two days after President Mugabe delivered his State of the Nation Address, focusing on initiatives aimed at stimulating production in line with Zimbabwe Agenda for Socio-Economic Transformation and the 10-Point Plan

With little change expected regarding funds allocated to traditional expenditure areas due to tight fiscal space, giving incentives to boost production and investment are critical in driving growth, creating jobs and improving competitiveness.

In the same vein, Minister Chinamasa is expected to provide clarity on the pronouncement he made in 2016 Budget Review Statement on the restructuring of the civil service.

Zimbabweans will also expect to hear actions that the Government will take against abuse of bond notes amid reports of pricing discrepancies between the USD and bond notes.

Analysts and Zimbabweans in general said polices that strengthen the country’s competition landscape would help transform the economy into a vibrant export driven economy.

Already, Government has put in place some policy initiatives aimed at addressing issues relating to the supply side of the economy such as improving the cost of doing business.

About a month ago, President Mugabe passed into law, the Special Economic Zones Bill, a development that is expected to attract foreign direct investment and create thousands of jobs.

The Reserve Bank of Zimbabwe has also put in place production enhancement measures to support selected economic sectors including mining and agriculture.

As such, Minister Chinamasa is expected to come up with complementary policies to reinforce such initiatives. It is also expected that the budget will propose measures to support and increase exports and inflows of foreign currency to ease liquidity problems.

Business Reporter
STANBIC Bank Zimbabwe has achieved the 2020 capital threshold of $100 million for commercial banks in line with the Reserve Bank of Zimbabwe (RBZ) guidelines.

The Standard Bank Group subsidiary has maintained a steady performance over the years and has bagged a number of accolades for efficient financial service.

An analysis in the recent Top Companies Survey shows that Stanbic Bank was second in terms of profitability and overall third in terms of return on assets and operational efficiency ratios.

As at June 30, 2016, the bank’s non-performing loans (NPLs) ratio was at about 5 percent and this was well below the market average of 10 percent. The 5 percent non-performing loan ratio was the third lowest while the bank had the third largest total deposits base.

The bank’s lowest ranking was fifth out of 12, under regulatory capital as at June 30, 2016. However, its regulatory capital position has since improved and was at $ 103 million as at August 31, 2016.

“Stanbic Bank has remained robust, defying the turbulent and low growth in the banking sector to record an increase in total deposits from $484 million as at December 31, 2015 to $ 642 million as at August 31, 2016,” the bank said in a statement yesterday.

“The bank’s low non-performing loans position has enabled it to earn higher profit after taxation and this has helped strengthen the bank’s regulatory capital base. This effectively means Stanbic Bank has already complied with the 2020 minimum capital requirements of $100 million.”

Stanbic has been voted the best bank in two surveys conducted by two of the country’s leading financial services institutions in Zimbabwe. The bank came out tops in the Banks and Banking Survey as well as in the Top Companies Survey conducted by diversified financial and investment giant, Old Mutual.

The two accolades came at a time the banking sector in Zimbabwe is beset by a plethora of problems, chief among them being a liquidity crunch, which has seen confidence in the sector nose dive to all time low.

“Stanbic Bank Zimbabwe Limited continues to outperform on a number of metrics, and this can only be achieved by a strong and dedicated leadership that strives to stick to international banking best practices. We strongly believe that the bank remains on a solid growth path, going forward,” wrote the analysts in the surveys.

Stanbic Bank’s income statement showed a 11 percent growth in net interest income, mainly driven by the growth in its earning assets.

Surprisingly, non-interest income came in lower than prior year despite the massive growth in deposits and this was attributable to decline in transactions due to forex shortages and regulatory directives on charges and surrender requirements on mineral and tobacco exports.

Non-interest income, is however, expected to grow significantly in the next reporting period with the increasing electronic and card transactions as the effects of the cashless banking take its toll.

Internationally, Stanbic Bank was also voted the Best Wealth and Investment Bank at the UK based Wealth and Finance Awards 2016 organised by Wealth & Finance International. Wealth and Finance International is dedicated to providing fund managers, institutional and private investors around the world with the latest industry news across both traditional and alternative investment sectors.

President Mugabe

Industry should complement Government efforts to promote consumption of local products by increasing production to meet demand.

Government early this year came up with Statutory Instrument 64 which removed several commodities from the Open General Import Licence in order to protect local industry.

Under the new law, Government has banned the importation of a number of products that are being produced locally in order to support local industries. Individuals or companies that want to import the listed products need to obtain a licence from Government but individuals that bring in the same products for their own consumption are allowed to do so.

Government has said the new regulation has already started bearing fruit as evidenced by a number of companies that have increased production.

In his State of the Nation address on Tuesday, President Mugabe said since its promulgation last June, S1 64 has started impacting positively on the economic growth. He said the new law had improved the efficient use of foreign currency as well as enhance local production of an assortment of products which the country used to import.

The President said a number of companies in the manufacture of plastic packaging and food commodities that include Tregers, Nampack, Proplastic and several others were immediate beneficiaries of SI 64. He said acceleration of such policy reforms will not only boost local production but will also attract new investment in the various sectors of the economy. We want to commend Government for coming up with SI 64 whose results have been immediate.

Most retail outlets are now stocked with local food commodities following the ban on the importation of these goods. There was a public outcry when Government promulgated SI 64 as many people were not confident that local companies would produce enough to meet demand. Now that local companies have proved that they have the capacity to meet local demand, Government should move to identify more products to be included on the list so that other companies can also benefit.

Companies on their part should ensure that they invest in plant and equipment in order to increase production. Consumption of local products does not only save the much needed foreign currency but also creates jobs. Companies that have increased production as a result of the promulgation of SI 64 have correspondingly increased the number of employees.

The promulgation of the Special Economic Zones Act is expected to attract foreign direct investment which should accelerate the economic turnaround. Financial institutions on their part should avail loans for capital investment especially to those companies that are involved in import substitution.

It is pleasing to note that there are positive signs of a complete revival of the country’s manufacturing sector which is the anchor of our economy.
Zimbabwe had during the past few years been reduced to a retailing nation of imported goods which in most cases were of inferior quality and this was impacting negatively on the country’s economic growth.

We want at this juncture to once again challenge the manufacturing companies to rise up to the challenge and produce not just for national consumption but even surplus for export so that the country can earn the much needed foreign currency. Zimbabwe is endowed with not just the required raw materials but also highly skilled personnel which is sought after globally.

There is therefore no excuse to rely on imports especially of food commodities and other consumables. The year 2017 should see the country’s retail outlets fully stocked with products manufactured by local companies and increased foreign currency earnings from our exports.

The late Sfiso Ncwane and wife Ayanda

SOUTH African gospel singer Sfiso Ncwane will be buried in Durban on Saturday with Zimbabwean gospel musician Tatenda Mahachi saying he will travel to SA to bury his musical brother.

Ncwane’s funeral will take place at the Moses Mabhida Stadium at 9AM before he is buried at the Heroes Acre in Chesterville, Durban.

“Memorial services for the gospel star will take place on Thursday at eThekwini Community Church at 11am and on Friday at the Grace Bible Church in Soweto 11am,” read part of a statement released by Ncwane Communications.

The Kulungile hit-maker died at the Life Fourways Private Hospital on Monday after having been admitted for suspected kidney complications.

Reports indicate that Ncwane, who performed in Limpopo at the weekend, had been ill before eventually being admitted to hospital.

Mahachi who collaborated with Ncwane on the track Ndinoda Jesu said it was only befitting for him to go and bury a man whom he worked well with.

“Ncwane was a humble and humorous man. We had this rapport that transcended from being musicians to brothers. Now he’s gone and I want to pay my last respects to him and also support his family in this time of grief,” said Mahachi.

Meanwhile, Mandisa Mkhize (the late Senzo Meyiwa’s wife) and Savita Mbuli (the late SABC presenter Vuyo Mbuli’s wife), who relate to the pain and devastation Ayanda Ncwane is facing have both extended their support to her.

News of Sfiso’s death on Monday sent ripples of shock and disbelief throughout the Sadc region.

Among the thousands of people who have offered support to Sfiso’s widow, Ayanda, who he often referred to as his ‘Kim Kardashian’ were Mandisa and Savita.

Savita shared a heartfelt tribute about how Sfiso sang at Vuyo’s funeral in 2013 and comforted her during that time.

“I go to bed with a very heavy heart and a painful lump in my throat. I remember how Sfiso Ncwane performed when my Thando passed away.

“He even did a revision singing of Kulungile Mzantsi,” posted Savita on her Facebook wall.

She added that in the days that followed Vuyo’s death, Ayanda gave her an incredible amount of love and support.

“Saint Ayanda. He’ll send his angels and archangels to protect and cover you during this unexplainable period of life. Rest in heavenly peace Sfiso. Usibulisele,” she added.

Mandisa who has had to deal with the pain of losing Senzo Meyiwa when he was shot and killed in 2014 also wished strength upon Ayanda.

“Death you’re bad. You can’t eat in a beautiful dish. Be strong sister Ayanda Ncwane,” posted Mandisa on her Facebook page. — Showbiz Reporter/Sowetan

Prosper Ndlovu, Business Editor
THE Reserve Bank of Zimbabwe (RBZ) will release the second batch of $2 bond notes amounting to $7 million this week in fulfilment of the Government’s drive to improve liquidity in the economy and incentivising export oriented domestic production.

The Government has also said it was interrogating banks on continued withdrawal limits after the release of the first tranche of $10 million bond notes last week.

The injection of $7 million brings the amount of bond notes disbursed into the market so far to $17 million, RBZ Governor Dr John Mangudya said in a statement yesterday.

Bond notes started circulating on Monday last week and have been well received by the market despite negative perception by pessimists and opposition party leaders.

“In line with the strategy to release the bond notes on a measured or drip-feed basis, the bank would like to advise the public that it is releasing the second batch of $2 bond notes amounting to $7 million this week. This brings the total amount of bond notes disbursed to $17 million against a value of $70 million payable to exporters of goods and services under the export incentive scheme,” said Dr Mangudya.

He paid tribute to the transacting public, consumers and the business community for embracing bond notes following the release of the first batch of $10 million new notes on Monday 28 November 2016.

“The bank remains indebted to all the business organisations in Zimbabwe, large and small, that made the introduction of the bond notes a success,” said the Governor.

“The bond notes are of high quality with many security features to make them secure. The rubbing off of ink and the variation of the security thread on the notes are quite normal.”

Dr Mangudya said the $5 bond notes would be released into the market in due course. Going forward, he said the apex bank would continue to publicise information on the release of bond notes into the market in order to uphold its commitment to transparency.

Bond notes are expected to help ease US$ banknote shortage and curb externalisation of foreign currency. The new notes trade at par with the US dollar and can be used for any transaction within Zimbabwe.

The RBZ has said it would release a total of $75 million worth of bond notes by the end of this year, out of a total of $200 million-backed loan facility from Afreximbank.

Bond notes have gained acceptance despite being criticised by a sceptical public who viewed their introduction as a scheme to return the Zimbabwean dollar, which was abandoned in 2009 when the country adopted the multiple currency system.

Long queues continue to be witnessed at banks as financial institutions maintain a $50 withdrawal limit per day. Some depositors in major cities such as Bulawayo are even spending the night on queues in order to be served first.

In view of this members of the House of Assembly asked Vice President Emmerson Mnangagwa, who is the leader of the House on why the introduction of bond notes has not resulted in easing of cash shortages.

In response VP Mnangagwa said the cash shortage was being addressed from both policy and administrative basis. He said the release of the second batch of bond notes was expected to improve the cash situation.

“We are going to add more bond notes and this should address the issue of long queues at banks. We are very concerned about the queues that we see at banks and it is not Government policy that people should queue. That must be resolved,” said VP Mnangagwa.

He said Government wanted to find out why banks were limiting withdrawals.

The new look Victoria Falls international Airport

Leonard Ncube in Victoria Falls
AFRICA’S largest airline group, Ethiopian Airlines will, starting March next year, fly four times a week to Victoria Falls.

The new-look Victoria Falls International Airport continues to attract new airlines since its commissioning by President Mugabe last month.

In a statement, Ethiopian Airlines group chief executive officer Mr Tewolde Gebre Mariam said its latest wide bodied B737-800 will land in Zimbabwe’s prime tourist town on March 26.

“Ethiopian Airlines is pleased to announce that it will start four weekly flights to Victoria Falls as of March 26, 2017, with the latest B737-800 New Generation with Sky Interior,” said the chief executive officer.

The East African airliner is one of the first few companies, alongside RwandaAir, that showed interest and opened discussions with the Civil Aviation Authority of Zimbabwe (CAAZ) at a recent 48th Africa Airlines Association (AFRAA) Annual General Assembly about flying into Zimbabwe taking advantage of refurbished facilities.

“It’s a continuation of our efforts to achieve the goal of connecting Africa to the world by adding multiple points in Africa and serving air connectivity needs of the continent.

“Tourist travellers and vacationers from major cities in the Americas, Europe, Asia and Africa will enjoy hassle-free connections to Victoria Falls via our strategic hub at Addis Ababa,” said Mr Gebre Mariam.

He said their goal was to expand network in Africa to ‘promote and facilitate growth in the business and tourism sectors’ in terms of the airline’s ‘15 years growth strategy, Vision 2025.

The schedule will see Ethiopian Airlines flying between Victoria Falls and Addis Ababa on Tuesdays, Thursdays, Saturdays and Sundays.

It will depart Addis Ababa at 8.15AM and arrive in Victoria Falls at 12.15 PM on a direct flight while departing Victoria Falls at 1PM via Gaborone in Botswana and arrive in Addis Ababa at 9.30PM

Mr Mariam said the airliner will be offering tour packages, that are available to the major African tourist destinations such as Mombasa, Zanzibar, Kilimanjaro, Dar-es-Salaam, Johannesburg, Maputo, Nairobi and Cairo.

Ethiopian Airlines is the fastest growing and leading carrier Airlines in Africa having been in the industry for seven decades.

It commands the biggest pan-African passenger and cargo network operating the youngest and most modern fleet across five continents.

Its fleet includes ultra-modern and environmentally friendly aircraft such as Airbus A350, Boeing 787, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years, which it also owns.

CAAZ public relations manager Mrs Anna Julia Hungwe, who was in Victoria Falls yesterday, said the aviation authority was excited about the development.

She said besides Ethiopian Airlines, RwandaAir had also confirmed that it will start flying into Harare early January while Kenyan Airways was also working on finalising the process of establishing a direct flight into Victoria Falls.

“We are actually excited by the new look airport and the interest shown by airlines,” she said.

While commissioning the airport, President Mugabe challenged the Ministries of Transport and Tourism as well as CAAZ to market the airport and bring in tourists and airlines.

The Government has also facilitated the upgrading of the Joshua Mqabuko Nkomo International Airport in Bulawayo and Buffalo Range Airport in Masvingo province as part of its key infrastructure projects under Zim-Asset.

@ncubeleon

Petros Kausiyo, Harare Bureau
ZIFA are adamant they will not recognise the application filed by the Premier Soccer League with the Court of Arbitration for Sport.

The country’s football mother body insisted the top-flight body needed to first exhaust domestic remedies over the relegation-promotion dispute that has cast a shadow on the closure of the 2016 season.

Despite the PSL receiving confirmation that the Swiss-based CAS had begun proceedings in the arbitration case filed by the elite clubs, Zifa last night argued that the application would be of no force or effect to them.

The Zifa constitutional committee chairman Itai Ndudzo last night said the Association had not been served with any further papers from CAS.

Ndudzo said Zifa would, however, not be intimidated by communication from CAS as they were treating the PSL and the 16 clubs as different entities, arguing that it is the clubs and not the league who are members of the Association.

The Premiership clubs agreed to approach the Swiss court to either arbitrator or mediate on the matter and appointed Caps United chairman Lewis Uriri and London-based lawyer Pat Kachidza to handle the application.

CAS this week then wrote to both parties through top lawyer Jose Luis Andrade outlining the procedure and the options that are available for the soccer mother body and its flagship affiliate.

“The present arbitration procedure presents prima facie characteristics of both appeals procedure before the CAS. In light of the claimants’ option to file a request for arbitration the request for relief contained therein and the priori hybrid nature of this matter, the case has been assigned to the ordinary Arbitration Division and shall be conducted pursuant to the provisions of Articles R38 et Esq. of Code of Sports-related Arbitration,’’ read part of Andrade’s letter.

The CAS lawyer also suggested mediation on the matter.

“I take this opportunity to draw the parties’ attention to the possibility of submitting this dispute to CAS mediation, which would not prejudice the parties’ right to subsequently re-submit the dispute to CAS arbitration, should the dispute remain unresolved at the conclusion of the mediation procedure.

“A successful mediation procedure would result in bringing settlement, the terms of which will have been agreed upon by both parties.

“Mediation has potentially significant time and cost advantages for both the claimants and the respondent and is more a flexible procedure, which facilitates more creative means of resolving the dispute,’’ Andrade said.

Andrade’s letter effectively meant that:

- Zifa have 10 days to reply to the PSL request for interim measures of protection.

- Zifa have 20 days to reply to the substance of the claim.

- Zifa have 5 days to agree to three arbitrators as PSL have suggested and nominate their preferred arbitrator. If they don’t the president of the ordinary arbitration division will decide on the number of arbitrators and appoint them.

- Zifa and PSL may by agreement pursue the cheaper route of mediation by CAS’’.

If the spirit of the communication from CAS is anything to go by then the two parties have 10 days to agree to arbitration failing which the matter would proceed to arbitration.

But Ndudzo claimed Zifa had not received such communication and insisted the Association would not to be moved by any of the parameters set out in the letter.

The Harare lawyer, who has also been advising Zifa in their dispute with the PSL over the number of teams to be promoted into the top-flight for the 2017 season, also maintained that CAS did not have jurisdiction over the matter.

“Zifa has only received one communication from CAS dated 6 December 2016. The letter advises Zifa of a request for arbitration filed by the PSL and 16 PSL clubs.

“The letter from CAS requests Zifa to reply within twenty (20) days. Zifa in the reply has to address whether CAS has jurisdiction.

“Zifa’s position is very clear. CAS has no jurisdiction on two grounds.

“1. Article 59(1) of Zifa’s constitution which clearly establishes an arbitral tribunal headed by advocate Isaiah Mureriwa. That is the body that deals with disputes between Zifa and any of its members.

“2. Zifa does not have any member called PSL. The exhaustive list of Zifa’s members is listed in Article 10 of the Zifa constitution. There is clearly no PSL in that list. The PSL cannot impose itself as a Zifa member outside the constitution. That should be common sense.

“Only individual PSL clubs are members of Zifa. As you know they all freely, willingly and voluntarily participated in the Congress decision which they cannot contest simply because they lost.

“Losing an election in which you fully participate does not give rise to a dispute. You have to be magnanimous in defeat, particularly in sport,’’ Ndudzo said.

Ndudzo also dismissed the mediation bid suggested by Andrade.

“There is no scope for mediation by CAS. Zifa already has a process led by Piraishe Mabhena that is attending to the issue comprising of PSL club representatives.

“Also note Zifa has not been furnished with any interim measure request.

“At this juncture Zifa is not perturbed by the outrightly ill conceived and groundless, baseless embarrassing approach to CAS. It’s a trifle that will expose ignorance of very elementary provisions of the Zifa constitution,’’ said Ndudzo.

The United Nations has warned that northern Nigeria faces the “largest crisis in Africa” as the government’s war with Boko Haram has become increasingly bogged down

In northern Borno state, the epicentre of a conflict that has spread to three neighbouring countries – Chad, Cameroon and Niger — Nigeria’s army has unleashed a barrage of air and land assaults.

The counterinsurgency has clawed back some territory, but Boko Haram has responded by stepping up guerilla tactics, ambushing troops and attacking civilians.

In late November, Major General Leo Irbor hailed his men’s success in freeing “more than 5 200 people” in a month. But the high number of people freed highlighted Boko Haram’s capacity to capture and hold vast, heavily populated areas.

Villagers under siege are typically forced to abandon their crops, devastating local food supplies. Those who escape Boko Haram are generally transported by the army to camps where basic supplies are also desperately scarce.

The UN estimates that 14 million people will need outside help in 2017, particularly in Borno State, after seven years of conflict that has killed at least 20 000 people and left 2.6 million homeless.

The scale of humanitarian suffering has become more apparent as troops recapture and discover the “scorched-earth” conditions of villages that have fallen to the hands of Boko Haram.

But some local people complain that there are not enough security forces deployed to battle the group.

The same day as Irbor made his comments, five people were killed in raids on villages near Chibok, the district that gained notoriety for the Boko Haram kidnapping of more than 200 schoolgirls in 2014.

The Boko Haram raiders looted and burned houses, set fire to crops that were ready for harvesting, and killed the locals — even though the army had been alerted to the assault.

“We’ve heard there are 700 soldiers to secure the zone bordering the Sambisa forest that is the Boko Haram stronghold,” said Ayuba Alamson, a resident of Chibok.

The forest covers an area of about 1 300 square kilometres. “We need another battalion,” said Alamson.

Though Boko Haram has been weakened and casualty numbers followings its attacks are often low, the frequency of their strikes “enable it to keep up the pressure on security forces and force them to deploy”, said Omar Mahmood, a researcher at the Institute for Security Studies, stretching them further.

Troop numbers are also being pulled away to fight on another front in the south where fighters have been sabotaging oil pipelines and other installations vital to the country’s export earnings in a fierce dispute over local autonomy and the distribution of petrodollars.

The number of killings in the northeast, which increases after the end of the rainy season each year, is a particular cause for concern – especially on the border with Niger.

Territory in Niger has become the stronghold of Abu Musab al-Barnawi, who was declared a local leader by the Islamic State of Iraq and the Levant (ISIL, also known as ISIS) armed group after Boko Haram declared allegiance to them.

Yan St-Pierre, director of the Modern Security Consulting Group, said that pressure on ISIL fighters in northern Libya has pushed its activities further south, to countries bordering Nigeria.

As a result, their “effectiveness for supplying [fighters] with weapons and logistic material has greatly improved over several weeks,” he said

While ISIL and Boko Haram fighters battle the Nigerian army, hunger is spreading among both villagers and the swelling ranks of displaced people in the ravaged northeast.

The UN has warned that 75 000 children in the region are at risk of death within “a few months”.

What the World Food Programme has called “famine-like” conditions have prompted experts to warn against seeking victory over the armed groups at all costs.

“The Nigerian army, which has adopted a purely military strategy for seven years, needs to change its approach if it wants to win this war,” said St-Pierre. — AP

A woman casts her ballot for the presidential election at a polling station in Bole district, northern Ghana. — AFP

Counting was underway in Ghana yesterday after presidential and parliamentary polls closed, in what has been touted a close contest between incumbent John Mahama and his rival Nana Akufo-Addo.

The majority of polling stations closed at 5:00PM on Wednesday, officials said.

The elections come at a time of severe economic decline in the West African country, and amid a volley of accusations of financial mismanagement on part of the ruling party.

For years, Ghana was one of Africa’s most dynamic economies. But it slumped in 2014 as commodities prices fell, and a fiscal crisis widened the budget deficit and elevated inflation.

Akufo-Addo’s New Patriotic Party says the government has mismanaged national finances, including revenue from oil from an offshore field operated by British company Tullow that became operational in 2010.

The government has denied the accusations and urged voters for vote it, arguing that growth would return to at least eight percent in 2017.

“Every Ghanaian should exercise their civic responsibility and come out and vote. The destiny of our country depends on it,” Mahama said as he cast his ballot in the town of Bole, Northern region.

Ghanaian voices oncoming presidential elections

At least 15 million people were registered to vote in Wednesday’s election.

A run-off between the top two candidates will follow if no candidate wins a majority.

Reports showed few voting problems, according to the Coalition of Domestic Election Observers. But voting was re-scheduled for yesterday in Jaman North constituency in Brong Ahafo region because of security concerns and logistical problems.

There are seven presidential contenders, including five minor candidates. In a parallel parliamentary vote, 275 seats are being contested.

Elections in Ghana are famously close races, with Mahama narrowly winning in 2012 with 50.7 percent.

Ghana is considered a beacon of democracy in West Africa, and has a history of peaceful elections.

The government of the day has lost power twice since 2000. But ahead of this week’s election there were reports of voter intimidation. Police said one person was beaten to death, with six others left in critical condition, in clashes between supporters of the two main parties after a rally in the north on Monday.

Meanwhile, hackers have targeted the website of Ghana’s electoral commission ahead of the release of results from a narrowly contested presidential election.

The commission reported the incident on Twitter yesterday, saying it deplored the “attempt to hack” the site, which was offline for a few hours early yesterday.

Despite a relatively peaceful election, tensions are growing after the main opposition New Patriotic Party on Thursday urged incumbent President John Dramani Mahama to concede defeat after the NPP’s internal polling data determined the opposition was poised to win.

The incumbent party denounced the press conference, calling it “irresponsible”, according to local media reports.

Election officials have urged Ghanaians to patiently await the official vote tallies and to dismiss purported results from unofficial sources.-AFP

President Mugabe

When President Mugabe commissioned the new look Victoria Falls International Airport last month, he urged the Ministry of Transport and Infrastructural Development, the Ministry of Tourism and the Civil Aviation Authority of Zimbabwe to work closely together so that the country can derive maximum economic benefits from the new facility.

Government spent $150 million to upgrade the airport which now has state-of-the-art specialist aviation equipment. Cde Mugabe said the new airport provided the Ministry of Tourism with a platform to vigorously market its products. He said the upgrading of the airport paved way for Victoria Falls town to become a tourist hub receiving tourists from all corners of the globe.

The completion of the project as the President noted, signals exciting times ahead for the aviation and tourism sectors. The country has already started enjoying the benefits of the new look airport which has the capacity to handle 1,5 million passengers a year, up from 500 000.

The new runway can accommodate wide-bodied aircraft such as Airbus, A340, Boeing 777 and Boeing 787. African’s largest airline group, Ethiopian Airlines on Wednesday announced that it will fly direct to Victoria Falls with effect from March next year.

The airline will be flying four times to Victoria Falls and its coming will result in a significant boost in tourist arrivals. The direct flights from Addis Ababa will enable tourists from major cities in the Americas, Europe, Asia and Africa to fly direct to Victoria Falls.

We are definitely looking forward to more airlines flying direct to Victoria Falls thereby boosting tourist arrivals. Those in the tourism industry should therefore brace for increased tourist arrivals.

We do not want, as the President warned, to be found wanting when it comes to serving our visitors. Those providing tourism products such as accommodation and other services should ensure that they have the capacity to handle more than 1,5 million tourists expected in the resort town every year.

The 1,5 million figure excludes those using other means of transport to travel to Victoria Falls as well as local tourists. Tourism is one of the sectors expected to register rapid growth now that there are few negative reports about the country.

Many tourists that have visited Zimbabwe have proved that the negative reports which were being peddled by the country’s enemies were false and it is the same tourists who have become the country’s true ambassadors helping to rebrand it.

There is no reason why Zimbabwe cannot become a tourist destination of first choice given the many tourist destinations dotted throughout the country that provide world class accommodation and other services. We want to once again implore those in the tourism industry to get ready for the exciting times ahead.

Bruce Kangwa

Ricky Zililo, Senior Sports Reporter
THE stage is set for tonight’s Highlanders’ awards ceremony to be held at the Bulawayo Polytechnic’s School of Hospitality, with 23 club legends confirming their attendance.

Club legend Lawrence “Lofty” Phiri told journalists that they had secured 23 seats for former players at the banquet, which they would also use as a reunion.

He said some former greats expected to attend the banquet include Edward Dzowa, Jeffery Mpofu, Andrew “Skurupata” Jele, Edwards

“Magungubala” Ndlovu, Chris Mhlanga, Mark Watson, Ernest “Maphepha” Sibanda, Alexander Maseko and Josiah Nxumalo.
Phiri said Maseko and Nxumalo are expected in Bulawayo from South Africa this morning.

“We’re coming as former players to just give encouragement to these youngsters. We’re hoping to mingle and rekindle lots of memories at the awards ceremony while celebrating this institution’s 90th year celebrations,” said Phiri.

“Unfortunately there are some players we had hoped will come, but will not be able to attend. We sent an invitation to Bruce Grobbelaar, but we haven’t received his reply and at this stage I don’t think we’ll have a late surprise from him as travelling from Canada needs real commitment.

Hopefully we will have him and other club legends at future functions.”

Football legend Peter Ndlovu has also been ruled out of the Highlanders’ stars awards as his team Mamelodi Sundowns is in Japan for the Fifa Club World Cup.

Bosso have braced for a glamorous celebrations despite Peter and Grobbelaar’s absence.

Highlanders will give out 15 accolades tonight.

Awards will be for the Player of the Season, Top Goal Scorer; Outstanding New-comer; Most Promising Player, Most Disciplined Player; Longest Serving Player; scorer of the most spectacular goal(s); Goalkeeper of the Season; Players’ Player of the Season; Captain’s Award; Most Consistent Player; Most Improved Player; Best Junior Player in Division One; Supporters’ Player of the Year and Supporter of the year.

The club’s vice-captain Erick Mudzingwa is guaranteed the longest player accolade, having made his debut in 2007.

Bruce Kangwa, who scored seven goals before moving to Tanzania’s Azam FC during the mid-season break, will take the top scorer’s award.
Soccer Star of the Year finalist Peter Muduhwa, his defensive partner Tendai Ndlovu, midfielder Rahman Kutsanzira, Simon Munawa, Mudzingwa, goalkeeper Ariel Sibanda and rookie Prince Dube all look set to be honoured. – @ZililoR

Minister Patrick Chinamasa

Oliver Kazunga, Senior Business Reporter
THE Government has increased the list of goods under Statutory Instrument 64 of 2016 among a raft of measures aimed at protecting local industry and stimulating domestic production and exports.

The new measures will take effect at the beginning of next month. SI 64/2016 was promulgated in June this year and removes several goods from the Open General Import Licence (OGIL).

Presenting the 2017 national budget yesterday, Finance and Economic Development Minister Patrick Chinamasa said the measures, which include increasing customs duty on certain products, were short term steps towards revitalising production.

“It is, thus, proposed to amend bilateral rules of origin on flour, to the effect that the preferential treatment is granted to flour milled from wheat grown in the country of export. It is, further, proposed that wheat flour be removed from the Open General Import Licence,” said the minister.

So far, over 40 products are listed on SI 64/2016.

Minister Chinamasa said despite threats to the viability of the milling industry, the sector continues to receive new investment.

“Blue Ribbon Foods has been revived by a new investor, which has increased the level of capacity utilisation and competition, resulting in prices of flour declining from $32 to $27 per 50 kilogrammes.

“Such investments need to be nurtured, in order to enhance value addition and linkages with the agro-processing and packaging industry,” he said.

As part of efforts to boost domestic production and value addition against declining exports, the Government has also supported industry through prioritisation of critical raw material imports and levelling the playing field.

As such, Minister Chinamasa noted that the local textile manufacturers were operating at capacity utilisation levels of between 30-35 percent with the growth of the sector being hampered by competition from imported fabrics.

“Manufacturers of blankets have particularly been negatively affected by imports of semi-finished blankets, whose process of manufacture involves minimal value addition of cutting and trimming.

“I, therefore, propose to increase customs duty on selected fabric, in order to level the playing field for the local industry,” he said.

“Clothing and furniture manufacturers will, however, continue to access fabrics duty free, under the clothing manufacturers rebate.

“Furthermore, it is proposed to avail additional raw materials under a rebate of duty on selected fabrics. It is also proposed to remove luggage ware that includes bags and suitcases from the OGIL. The above measures take effect from 1 January 2017.”

For a number of years, Minister Chinamasa said, manufacturers of uniforms have provided income for small enterprises that operate as cooperatives and thus school uniforms were being removed from the OGIL to promote local production.

He also said the printing industry has begun to make inroads into production as a result of support measures that have been put in place by the Government.

“However, imports of printed and packaging material continue to increase, hence the need to support the industry through reduction in the cost of production.

“It is, therefore, proposed to increase the list of raw materials that are used in the printing and packaging industry that are eligible for importation under the manufacturers’ rebate,” he said.

Minister Chinamasa said customs duty on sanitary wear will be suspended to enable the less-privileged to access affordable products while allowing local companies ample time to invest.

“Following the entry of new local sanitary wear manufacturers, the suspension of duty was lifted and substituted by modest duty rates of 15-20 percent.

“Whereas local companies have potential to grow and meet local demand, the industry still faces challenges such as high cost of raw materials and loyalty of consumers to international brands,” he said.

Minister Chinamasa said the measures to support the resuscitation of industry must be complemented by manufacturers playing their part by guaranteeing quality of goods as well as competitiveness of prices.

Since the liberalisation of the economy in February 2009, the local manufacturing sector has faced stiff competition from imported products.

The imports were mainly coming from the neighbouring South Africa, China, and Brazil.

As a result of the promulgation of SI 64/2016, industry capacity utilisation has improved from 34 percent in 2015 to 47,4 percent this year, the Confederation of Zimbabwe Industries reported recently. — @okazunga.

Ricky Zililo, Senior Sports Reporter
HIGHLANDERS coach Erol Akbay has said his return to the club next year will be determined by Bosso’s ability to pay his 2017 salary.

The Dutchman leaves for his home country on Monday

Akbay, who became a Highlanders fans’ favourite after ending a nine-year jinx against Dynamos by orchestrating back-to-back league wins over DeMbare, said he is committed to the club and his only condition was getting his dues.

“Someone asked me if I know that the club’s sponsorship is coming to an end and I said yes. He went on to ask if I’ll return if my salary is not paid and I asked him if he will go to work without being paid and he said no. It’s too far from home to come here for nothing,” Akbay said at the club’s press conference yesterday.

Highlanders, whose five-year sponsorship deal with BancABC, who have been taking care of the squad salaries, comes to an end this month and the Bulawayo giants are praying the financial institution extends the deal.

The Dutchman, who will be in charge of Highlanders’ last match in 2016 against Dynamos on Sunday in a Bosso 90 celebration challenge game, hopes to be away from Bulawayo for about six weeks.

Responding to his club’s ability to take care of Akbay’s salary, Highlanders’ secretary-general Emmet Ndlovu said: “The question is not about the BancABC sponsorship coming to an end, but about Highlanders paying his salary. There is no way we can bring him down here without his salary. If you see him coming here next year, know we have the money.”

Besides the salary issue, Akbay said he has had a great stay at Highlanders and heaped praises on the players for their hard work.

Under Akbay, Highlanders finished the season in third position behind champions Caps United and FC Platinum.

At some stage, Bosso looked like title contenders, only to falter at the penultimate stage.

“I’m proud of my boys. The way they really wanted to learn really surprised me at times. I’ve seen lots of good things in this squad. You look at Rahman (Kutsanzira), I heard a lot of strange things before coming to Highlanders, but he became a key member of our midfield together with Simon Munawa, who started off badly. Prince Dube also surprised me, and for a 19-year-old, who was making his debut PSL season to do well against giants like Dynamos, surprised me.

“Throughout the year I saw that these boys can do better every day and that is why I decided to show people what the future of the club looks like on the last day when we beat Hwange 3-0. We won because of tactical things, but the youngsters showed in that game that they were learning a lot at training,” Akbay said.

— @ZililoR

Minister Patrick Chinamasa

Happiness Zengeni and Prosper Ndlovu
The Government plans to boost local manufacturing industries and small businesses through pro-production interventions as evidenced by the 2017 National Budget meant to instil greater investor confidence and propel the economy to recovery amid fiscal headwinds.

The Government also seeks to cushion the general public against the high cost of transaction on mobile banking by exempting companies from Value Added Tax and has  frozen increases of prices and fees charged by public enterprises, including electricity, rates and water.

Presenting the $4,1 billion 2017 budget in Parliament yesterday Finance and Economic Development Minister Patrick Chinamasa stressed the need to stimulate domestic production and promote exports which he said was the panacea to economic growth.

Cde Chinamasa unveiled a raft of supply side interventions geared towards enhancing production across all sectors of the economy in the face of limited fiscal space.

The budget was presented under the theme of “Pushing Production Frontiers Across All Sectors of the Economy”.

Minister Chinamasa acknowledged that Zimbabwe was in an unsustainable economic position characterised by low production, import dependency, low savings, low incomes, high formal unemployment as well as liquidity and cash challenges.

As a result, revenue collections have continued to shrink with the 2016 position estimated to close at $3,52 billion from a mid-year revision of $3,69 billion. This is against $4,6 billion expenditures which included items which were outside the vote appropriations initially made at the last budget. Some of the items relate to drought-related grain procurement, $253.5 million; Bonus payments for 2015, $177.8 million; December 2015 salary payment arrears, $138 million; and debt servicing amounting to $512.6 million.

For 2017, Minister Chinamasa said some of the spill over effects of the prevailing economic challenges will constrain revenue collections in the first part of the year. As a result the Government is projecting another budget imbalance for the next year, though much smaller, at $400 million from revenue collections of $3,7 billion and expenditure of $4,1 billion.

“This, therefore, reflects a (new) path towards reducing the budget imbalance through rationalisation and fiscal consolidation measures.

“Mr Speaker Sir, Government should move away from a situation where the perception and expectation that Treasury Bills have become a surrogate currency to meet expenditures and deficit financing,” Minister Chinamasa said. Government has been financing its deficit through the issuance of TBs now estimated at above $2,5 billion.

“The fundamental challenge remains that of under-production, entirely across all sectors of the economy. The major challenge for the 2017 National Budget is, therefore, taking the lead in ‘walking the talk’ with regards to implementing critical reforms.”

Treasury is set to increase customs duty on selected fabric, in order to level the playing field for the local industry.  Clothing and furniture manufacturers will, however, continue to access fabrics duty free, under the clothing manufacturers rebate. Furthermore, it is proposed to avail additional raw materials under a rebate of duty on selected fabrics. This will provide a boost to the textile industry which is currently operating at between 30-35 percent.

The minister also introduced 40 percent excise duty on paraffin to stem illegal blending with diesel by fuel operators.

Further measures to boost revenues include the licencing of additional suppliers to supply fiscalised devices. “Currently, 10 companies are licenced to supply fiscalised devices, of which four are no longer operational. This has constrained the supply of fiscalised devices, thereby undermining progress of the programme.”

The minister also said Government will tighten existing legislative loopholes relating to the taxation of intangibles, general administration and management fees between associated companies, dividends arising from disallowed interest expenses and a permanent establishment.

Standard rating of meat products, rice, margarine and potatoes will be introduced while the debt redemption                       levy on petrol by 1 cent per litre, with effect from January 1, 2017.

The minister also extended VAT zero rating to the supply of pipeline transportation, storage and handling services for purposes of delivery of fuel through the pipeline, with effect from January 1.

For small to medium enterprises, Minister Chinamasa said Government would eliminate double taxation on presumptive taxes payable under informal traders’ tax and make a downward review on the taxes.

“I have already identified inadequate working capital as one of the hindrances to the growth of SMEs.”
“It is, therefore, proposed to ring fence revenue generated from presumptive taxes towards capitalisation of the Small and Medium Enterprises Development Corporation (SMEDCO) for on-lending to SMEs.”

Minister Chinamasa also said in order for efforts to formalise SMEs and enhance taxpayer compliance, particularly with regards to registration, filing of tax returns and payment of tax, the Zimbabwe Revenue Authority will intensify training programmes in collaboration with the responsible Ministry.

Minister Chinamasa projected the economy to grow by 1,7 percent next year from the estimated 0.6 percent for 2016.

In line with Zim-Asset, the Finance Minister said the 2017 budget was anchored on providing an enabling environment for sustainable economic empowerment and social transformation.

In view of the normal to above normal rainfall forecasts in the 2016/17 season, Minister Chinamasa said agriculture was projected to grow by 12 percent driven by higher output from major crops such as maize, cotton and tobacco, as well as milk production. The last season was a failure due to El-Nino induced drought that forced the country to import grain to avert starvation.

Against the background of depressed commodity earnings, coupled with marginal output gains from minerals such as gold and chrome, the budget projected a modest mining growth of 0.9 percent in 2017. The minister pledged to review and standardise Rural District Council fees and charges and further review of Environmental Management Agency charges that affect mining operations.

He also extended the 15 percent platinum export tax waiver to December 2017 pending establishment of local refinery facilities.

The manufacturing sector is projected to grow by 0.3 percent next year despite inherent constraints such as antiquated equipment, capital, low aggregate demand, liquidity, high costs of utilities, and unfair competition from imports. The minister lauded the gains made since promulgation of Statutory Instrument 64 of 2016 in June this year, which has impacted positively on capacity utilisation.

Minister Chinamasa said the five percent export incentive under the bond notes strategy was expected to yield improved production results. As such the minister projected that marginal deflation was expected to continue in 2017 with prices responding to the anticipated improved level of domestic production.

Zimbabwe’s economy suffers relatively high import bill, which remains unsustainable at $5.35 billion in 2016 against exports of                      $3.365 billion, said Chinamasa.

He projected the tourism sector would record a 0.8 percent growth anchored on improved marketing and national branding of Zimbabwe as a competitive tourist destination. The drive will be supported by measures to remove barriers to free movement of tourists into and within the country, including the prevailing unconducive number of non-security/crime roadblocks on the country’s roads.

Minister Chinamasa said the coming fiscal year would prioritise finalising the outstanding components of the re-engagement process with international financial institutions. He reported that as at 31 October 2016, Zimbabwe’s public debt stood at $11.2 billion or 79 percent of GDP of which $7.5 billion, 53 percent of GDP, was external debt.

“Of the $7.5 billion external debt, $5.2 billion is in arrears, and this has resulted in deterioration of relations with major creditors, thereby inhibiting access to finance,” said the minister.

“The next step is resolving early in 2017 arrears to the other multilateral creditors, like the African Development Bank, $610 million; the World Bank, $1.16 billion; the European Investment Bank, $212 million and other multilateral institutions, as well as bilateral official creditors.”

He also said crucial attention would be directed to developing a robust infrastructure and utilities cluster, a critical arm of Zim-Asset, with a bias on energy, transport, housing development, information and communication technology as well as water and sanitation infrastructure as these are critical enablers in the development of the economy.

Minister Chinamasa emphasised the need to embrace e-governance for improved service delivery as well as adoption of joint venture approaches in major capital projects.

Through implementing the highlighted range of measures and reforms, the minister said the Government was committed to improving the domestic business and investment environment so as to restore confidence in the economy. He also said the budget would strengthen social safety nets in support of vulnerable groups, in line with the objectives of the Interim Poverty Reduction Strategy Paper (IPRSP) for 2016-2018.

“The budget, therefore, proposes corrective measures on fiscal and external imbalances to restore fiscal and debt sustainability, which provides a conducive environment for productive activities. This Budget marks a turning point towards a developing economy through fiscal consolidation and stimulation of production.