Renewable energy gaining ground

RENEWABLE energy has the potential to transform Zimbabwe’s fortunes in particular the agricultural sector.

Zimbabwe experiences abundance of throughout the year and could capitalize on this resource to provide marginalized societies in rural areas with long lasting energy solutions for their daily livelihoods as an escape route from poverty.

Unfortunately government has not done much to take advantage of the natural resources even in the face of untold power shortages which have literally crippled production in industries.

According to power generation statistics from the Zimbabwe Power Company (ZPC), the country is producing something in the region of 1300 Megawatts (MW) against a demand of 2200 MW and this has resulted in massive load-shedding. 

This power deficit has also prevented government from connecting rural areas to the national power grid through the Rural Electrification Agency (REA) thereby slowing down critical development.

While government has been playing a back-benchers role, ChiMuts Solar Zimbabwe and some other individuals and small companies around the country have taken it upon themselves to utilise these environmental friendly resources through bio-gas projects and solar.

The Norton based private enterprise (ChiMuts) has been taking a leading role in providing farmers with solar powered water pumps.

The company says it aims to empower farmers over a long-term, to enable them to use solar to grow top quality crops for at least three seasons annually, as opposed to relying on rain fed agriculture which is usually from November to March.

Addressing the media during a media tour of their demonstration site at Moncris Farm recently, ChiMuts Solar Zimbabwe co-founder Tendai Mutsvangwa said solar powered water pumps is the only way to go because they are low cost.

“…its maintenance free which means it reduces repair headaches. These solar pumps are not just economical solutions but also give peace of mind.

“They are efficient and you don’t need to worry about bills, yes they maybe expensive at the initial stage but in the long run you will discover that they become cheaper than other methods. So far we have installed these pumps since 2012 and all our clients have no complaints or maintenance issues.

“The other thing is that in Zimbabwe we have almost eight hours of sunshine which is great and ideal for these pumps.

“Other countries do not have such privileges but they still use these equipment so why not us when we have the resource readily available to both small and large scale farmers,” he said.

Since 2012 ChiMuts has installed water pumps in about nine sites across the country ranging from farms, schools and game parks.

ChiMuts is using the solar pumps with drip-irrigation which according to the farm’s irrigation engineer Matilda Borerwi, reduces weeds in the fields and also uses less power.    

ChiMuts’ efforts are in line with calls made by finance minister Patrick Chinamasa in his 2015 national budget where he urged local farmers to consider using sustainable energy systems on their farms in an effort to save the environment.

Zinwa ineffective: Murengwa

THE Zimbabwe National Water Authority (Zinwa) has been ineffective in terms of providing adequate water to residents, Mvurwi Town Commission has said.

Addressing the media during an appreciation tour of Mvurwi Town organized by the Environmental Management Agency (EMA), council chairman Vincent Murengwa said the service from Zinwa has been very poor.

“The provision of water is being done by Zinwa in the whole town but is not very adequate since we experience a lot of breakdowns and power outages. The communities can spend two to three days without water hence council augmented by drilling two boreholes in the high density areas.

“Efforts are underway to take over water from Zinwa as a way of improving supply management in the town. We are ready to take over, other processes have been done and we are now waiting for the relevant authorities to accept our bids.

“As town council, we believe we have capacity to manage water if we are given the chance,” said the Town chairman.

If Mvurwi bids are accepted it will join a number of local authorities in the country that have repossessed water management from Zinwa as major cities and some towns are now managing their water.

Zinwa was given charge over all the water management in the country some years ago but failed dismally to ensure effective delivery of water to residents prompting local authorities to bid for takeover.

Experts believe Zinwa which lay claims over all the water bodies in the country does not have capacity to effectively undertake the responsibilities of water supply especially in urban areas where there is huge demand hence its celebrated failures.

Although most authorities are now running their own water management, the some situation has not improved as they are facing challenges in purchasing water purifying chemicals due to lack of funds as the cash strapped residents are not fully paying their rates on time, if at all.

Mvurwi Town Council chairman also revealed that they have not been spared by the non-payment of rates but added the situation was not worse as in other town thanks to various regular engagements they have with the residents.-

Mvurwi courts investors …eyes municipal status by 2025

MVURWI Town Commission says it has been holding investors’ meetings in an effort to lure as much business to the town so that they can qualify for the municipal status by 2025.

Addressing Journalists on the sidelines of an investment conference, Mvurwi Town Commission chairman Vincent Murengwa said they hope to attract as many investors as possible to the town in line with their 2025 vision.

“Our vision is to attain a municipality status by 2025. We are trying to hold as many investor promotions in the form of conferences coupled with other initiatives so that we can lure more investors since this is one of the bases for being given the status.

“We have more land here and water that we are guarding jealously but which we are willing to give to investors. The town boasts of five water bodies and an educated people, thanks to the schools around the area although we do not yet have a university,” he said.

Mvurwi was given a town status in February 2009 and was effectively separated from Mazowe Rural District council in 2011.

Mvurwi is mainly an agro-based town with more farmers growing tobacco which earned it the title “golden leaf town”.

Some of the country’s leading banks such as the Standard Chartered Bank of Zimbabwe and the Commercial Bank of Zimbabwe (CBZ), the Zimbabwe Stock Exchange listed blue-chip company Delta Corporations has a beverages collection Depot, Farm and City and even clothes concern Power Sales have already registered their presence in the town.

Meanwhile, Mvurwi Town Council has been applauded by the Environmental Management Agency (EMA) as being one of the few local authorities in the country that have been able to manage their waste effectively despite the well-documented challenges.

Unlike other well resourced local authorities in the country, Mvurwi only has three tractor drawn dumpers that service the whole town which has an estimated population of 10 492 people.

To make it possible, the innovative town council constructed about 17 communal bins across the sections of the town’s high density areas which serve as garbage collection sites, together with about five make-shift skip-bins and 10 steel bins donated by CBZ which are dotted within the central business district and other strategic areas as market places.

Murengwa said most of their efforts have been made possible by the various initiatives they have taken which include engaging residents on a regular basis which has seen some elderly women-vendors volunteering to clean the market area on Fridays and also watching out for litter-bugs.

The town chairman also revealed that council now has landfill designs in place but lack of funding is hampering progress as they are currently unable to conduct the required Environmental Impact Assessment (EIA).

MDC Renewal blasts demolitions

THE MDC Renewal Team says the current demolitions of homes in Chitungwiza and Epworth are clear acts of cruelty by government.

In a statement the team’s national secretary for social welfare Lucia Matibenga said her team was shocked by the act which resembles another evil Murambatsvina.

“The MDC Renewal Team expresses its dismay at the callous and heartless treatment of citizens by the current government, which has gone on yet another campaign of demolishing people’s homes leaving them without shelter. Hundreds of men, women and children have been left homeless by the government’s demolition of people’s homes in Chitungwiza and Epworth, which are reminiscent of the Murambatsvina   campaign of 2005 that saw the destruction of tens of thousands of homes by the same ZANU (PF) government, leaving over 700 000 people homeless and without access to livelihoods,” She said.

Matibenga said not only are the demolitions illegal but that the same government allocated those stands to people ahead of the July 2013 elections as a campaign tool but are now turning around accusing the occupants of being illegally settled.  

The trade unionist said it is now clear that the multiple housing cooperatives spearheaded by ZANU (PF) ahead of the elections were a vote-buying and rigging gimmick that had nothing to do with fulfilling the government’s social obligation of providing housing to the people. 

The renewal team says the demolitions are a blatant violation of Section 28 of the country’s Constitution, which guarantees the right to shelter for all Zimbabweans and are also ironic to the ZANU PF’s promise to 250 000 houses under the Zimbabwe’s Agenda for Sustainable Socio-economic Transformation (ZimAsset).

Matibenga says her team calls for the unconditional stoppage to the illegal demolitions, provision of alternative shelter to people who are settled illegally before demolition of their shelters, urgent mechanisms to regularize these settlements, stop to government interference with the operations of local authorities.

The team has also called for an independent inquiry and audit of illegal land deals in Zimbabwe’s local authorities and a review of the legal framework that governs the operation of housing cooperatives in Zimbabwe.

No plans for Zim sport: Fly Emirates

 

GIANT airline Fly Emirates says it has no plans to sponsor sport or football clubs in Zimbabwe.

FLY Emirates currently sponsor many topflight football teams largely in Europe and of note is their sponsorship of English Premier Soccer League’s Arsenal Football Club.

In an interview the company said although they have no plans for Zimbabwe, sponsorships help them to connect with their clients across the world interest.

“We continuously evaluate various sponsorship opportunities within the market but we have no plans to sponsor a football club in Zimbabwe at this time. Emirates has been committed to sponsorship in both the UAE and around the world for over twenty years, beginning with the first powerboat race held in Dubai, in 1987.

“His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline & Group, sees sponsorship as vital in the airline’s marketing strategy.

“We believe sponsorships are one of the best ways to connect with our passengers. They allow us to share and support their interests and to build a closer relationship with them,” he said.

The airline group said their marketing spend, which includes sponsorships, is a small percentage of group revenue.

The company said it looks for sponsorships that will help form positive associations of the Emirates brand with its customers, while drawing people and cultures together.

In particular, Emirates looks for sponsorship properties that connect people of different backgrounds with new experiences, based on a shared interest/ passion, provide a high-profile, dynamic platform for integrated communication and consumer engagement.

The airliner said properties should also help to differentiate the Fly Emirates brand from those of its competitors, have the ability to provide/create moments of inspiration and celebration and deliver incremental business opportunities

In 2004, Emirates and Arsenal Football Club signed a deal which included naming rights to the new stadium, which is known as the Emirates Stadium, as well as an eight-year shirt sponsorship deal from season 2006/07.

Fly Emirates currently plies the daily Harare/Zambia- Dubai route using its modern Airbus plane

Mwana applauds royalty reduction

GIANT mining concern Mwana Africa has applauded government for reducing royalty on gold producers adding that the move will go a long way in providing a financial boost to miners.

Finance Minister Patrick Chinamasa last week announced in his maiden but much awaited Mid-term fiscal Policy Review Statement that the royalty percentage for gold producers has been reduced from the current 7 percent to 5 percent with effect from October 1, 2014.

In a statement Mwana chief executive Kalaa Mpinga said they had engaged government on the issue for some time and is pleased that it has finally reacted.

“We have actively engaged with government on this issue and it is very pleasing that – in a spirit of understanding and co-operation – it has recognised the challenges inherent in the gold mining industry at present.

“The reduction in the gold royalty rate will provide a welcome financial boost to Freda Rebecca and Mwana,” he said.

Most companies in the mining sector are lobbying government to review some tax brackets arguing that it is making their operations expensive against falling international metal prices.

Gold and Platinum prices were on the retreating side in the first half of 2014.

Mwana Africa has an 85 percent interest in and operates the Freda Rebecca gold mine at Bindura in Zimbabwe’s Mashonaland Central province.

Pearl properties target SMEs

LISTED property concern Pearl Properties says it is now turning its focus to the growing SMEs market to cover for the falling occupation rate in its properties.

Pearl said the property sector is facing huge challenges as can be evidenced by the 30 to 40 percent occupation rate in most buildings in the central business district owing to the economic problems bedeviling the country.

Presenting company results for the half year ended June 30, 2014 general manager-property services Christopher Manyowa said work has already began to renovate some of their buildings to accommodate small businesses.

“…one of the strategies is to market the vacant space in the CBD. There are various things we want to do in this area so we are working on our buildings to create small spaces to accommodate small players in the market.

“Work has started at Pearl House, but we will not randomly go around demarcating without taking regard of the amount of traffic that will be involved.

“The strategy of creating small space was reached because of the economic situation prevailing in the country were things are going down and as a business we cannot wait and watch as we go down with the economy.

“So as we wait for the economy to improve we are going with this strategy because we have realized that there are a significant number of people starting small businesses these days,” he said.

Since dollarization the country has witnessed a sharp increase in the number of companies that have closed shop because of viability problems and this development has opened way for the sprouting of SMEs as the affected workers look for other means of survival.

However most of these SMEs are operating either at undesignated spaces or in their backyard because they are unable to pay high rentals charged by property own in the CBD area.

SMEs across the country have on countless occasions appealed to government and relevant authorities to avail to them affordable working space if they are to significantly contribute to the country’s gross domestic product but it appears their calls have fallen on deaf ears.

According to the FinScope Survey Zimbabwe 2012, there are over two million registered SMEs in the country and accounting to 5.7 million jobs directly.

SMEs interview by this paper said property owners were inconsiderate of the prevailing economic situation that has been characterized by excessive liquidity problems and high utility bills.

Meanwhile Pearl Properties managing director revealed that rentals have been stagnant in the last six months owing to new tenants who are demanding reduced rentals adding that the situation is hampering rental negotiations on the market.

Improve debt management: IMF

THE executive board of the International Monetary Fund (IMF) has underscored the need for Zimbabwe to improve its debt management strategy and to opt for grants instead of loans.

Zimbabwe owes its creditors such as the IMF, World Bank, Paris Club among others something in the region of US$10 billion including arrears

In their assessment for the 2014 Article IV Consultation with Zimbabwe, IMF directors said an arrears clearance supported by partners was important.

“Directors expressed concern that Zimbabwe’s external position remains precarious. They welcomed the authorities’ commitment to rebuild external buffers. They underscored the need to improve debt management and supported the strategy to seek mainly grants and highly concessional resources, while limiting non-concessional financing to critical development projects with high economic returns.

“They noted that strong macroeconomic policies and a comprehensive arrears clearance framework supported by development partners are essential to addressing Zimbabwe’s debt problems. They encouraged the authorities to engage in coordinated discussions with the World Bank and other international financial institutions (IFIs) and called on them to respect the preferred creditor status of IFIs, avoid selective debt service, and increase payments to the Fund’s Poverty Reduction and Growth Trust as capacity to repay improves,” reads the Assessment report.

The IMF also said enhancing financial sector stability remains a priority and recommended continued vigilance in monitoring weak banks and a proactive approach to ensure an orderly resolution of insolvent non-systematic banks.

Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the executive board.

At the conclusion of the discussion, the managing director, as chairman of the board, summarizes the views of executive directors, and this summary is transmitted to the country's authorities.-

Economic growth slows

SEASONED market watchers Tetrad Securities says the country might not record any growth this year if government does not put measures in place to encourage consumer spending.

Finance Minister Patrick Chinamasa projects a 6 percent growth but the World Bank has indicated that Zimbabwe can only grow by something in the region of 3.3 percent this year.

Consumer spending in the country is very low to the extent that one of the leading supermarkets in the country OK which released its results for the full year ending March 31only recorded a measly increase of 0.8percent to US$483.7 million, despite adding in new four shops.

Economic experts say OK results should a major worry as the supermarket has over the years been one of the better performing supermarket chains, out-competing their biggest rivals TM and Spar.

It is believed that TM and Spar have also suffered the same fate and have perhaps felt it more than OK, while smaller independent players who typically operate just one shop may by now be facing viability problems.

Denenga Supermarkets has closed almost all of its shops in Harare while Gutsai is struggling for market share.

In its weekly market watch report for the week ending June 6, 2014 Tetrad said the decline being recorded by supermarkets should be taken seriously.

“Zimbabwe’s economic growth has definitely slowed down and the evidence is beginning to show in the way people spend money. Retailers are an accurate and convenient point of reference but the lean times are felt far and wide.

“The marked slow-down in supermarket revenue growth is just but one of the many clues that must be taken seriously. If no fundamental change happens soon, it would not be surprising to end the year with no economic growth to speak of,” Tetrad said.

Zimbabwe is facing its worst economic downfall owing to a number of challenges chief among them high production costs, unreliable utilities, lack of fund for recapitalisation and massive imports from Asian countries.

These challenges have forced some companies to closed down while others have reportedly scaled down their operations because they are nolonger competitive against imported products.-

Nicoz shareholders ask for more

NICOZ Diamond shareholders have described the US$0.064 cents dividend as unreasonable and too small especially for the minority shareholders of the company.

Speaking at the company’s 12^th annual general meeting minority shareholders said they expected something reasonable.

“We expected something reasonable above (US$0.064cents) that, but we have no option maybe that’s what is in the market. So I am proposing that small shareholders should be given opportunities to benefit from the company’s operations,” he said.

Another disappointed shareholder who added her voice to the issue said it was more reasonable to exchange their dividend for shares.

“The amounts (dividend) are too small, it is better to get shares than to get small amounts into your bank account,” she said.

Explaining the reason behind the dividend company chairman Albert Nduna said the company performance was the same as prior year and therefore it was prudent to give the same dividend given last year.

“The Board thanks the management and staff for the efforts put to guard the profitability of the company given the operating environment. The performance of the company in 2013 allowed the Board to recommend a dividend of US$0.064 cents per share to the shareholders of the company, the same as that of 2012 as the performance for the two years have relatively been the same.

“Shareholders got their dividend around May 21, 2014 and those who have not are encouraged to contact ZB transfer secretaries and update their banking details,” he said.

Nduna added that the short term insurance sector in Zimbabwe continued to be heavily traded with 24 active players vying for US$200 million worth of premiums, but was quick to point that there is still room for growth.

He said at peak the market used to record almost US$600m worth of premiums and that the prevailing situation is however just mirroring the economy at the moment where many sectors are operating at low capacity utilization levels.

Nicoz said the insurance market grew by 8 percent from 2012 in terms of total premiums and the company grew by 24 percent showing that it is gaining market share of an already existing pool of business.

The company chairman said they have observed an encouraging trend were people are realising the importance of getting insured by tried and tested companies than as compared to going for the prices.

“We have seen clients becoming more discerning and realizing that insurance is more about security than it is about getting the cheapest price. You want to be assured that when an unfortunate event happens; you are quickly financially restored by your insurer, you never know what will happen!

“Nicoz Diamond has been able to pay all its obligations, and its financial strength has been subjected to independent review year after year by Global Credit Rating of South Africa, maintaining an A- rating since 2006,” he said.

Nicoz Diamond optimistic

NICOZ Diamond managing director Grace Muradzikwa says her company remains optimistic of a bright future despite not yet seeing positive signs in the economy.

Muradzikwa told shareholders at the company’s 12^th annual general meeting that she remains hopeful of the economic policies being crafted by government to stir economy out of the murky waters.

“Though the outlook of 2014 is not yet clear, we remain optimistic that policies being put in place by government will go a long way in helping stir the economy forward,” she said.

The macro-economic environment obtaining in Zimbabwe remains a major challenge for businesses operating in the country mainly because of the chronic liquidity constraints coupled with subdued economic performance, which has seen capacity utilisation in industries ranging between 45 and 39 percent.

Majority of companies are seeking funds for recapitalisation but local banks have been unwilling to offer long-term funds and at reasonable rates.

Barclays Bank announced at its annual general meeting a few weeks ago that it is continuing with its safe-lending strategy owing to high levels of defaulting in the country.

The bank also said majority of deposits in the bank are short-term and transitory in nature and cannot be loaned for a long time.

However the unavailability of these funds has resulted in most companies scaling down operation while many others have closed shop.

A few banks that have been a bit generous with their loan book are said to be only giving short-term loans with a maximum of 36 months and at usurious rates.

The under-performance obtaining in the economy at the moment has derailed minister Patrick Chinamasa’s economic growth projection of 6 percent with the World Bank saying the economy will only grow by a mere 3 percent this year.

Economic expects have blamed the country’s high risky status, policy inconsistencies and the controversial indigenisation program being implemented by government as the major reasons that has resulted in foreign investors shunning the country.

Under the Indigenisation and Economic Empowerment Act all foreign owned companies operating in the country and whose value is more than US$1 are required to cede 51 percent shareholding to locals.

And there has been conflicting statements with regards to the 51 percent stake, with some in government saying they will be acquired at market value.

But President Robert Mugabe is on record during his election campaigns arguing that locals will not pay a cent for the shares by virtue of being the owners of the land and resources.

Major mining companies such as Zimplats, Mimosa Mining and Unki Mine among others having already complied with the law.

AfDB reaffirms support to ZIM

THE African Development Bank (AfDB) says it is committed to support efforts by government to turn around the economic and social situation prevailing in the country.

Addressing delegates at the launch of the Youth and Tourism Enhancement Project (YTEP) and the Governance and Institutional Strengthening Project (GISP), AfDB resident representative Mateus Magala said his bank will work with government and other stakeholders in changing the status quo in Zimbabwe.

“…As the AfDB celebrates its 50th anniversary, permit me to seize this opportunity to once again reaffirm the commitment and availability of the African Development Bank Group to support the efforts of the government of Zimbabwe in addressing the major challenges to socio-economic development in the country.

“The AfDB will continue to work with the government and partners to restore business confidence and to help the country to fully reengage,” Magala said.

The projects approved by the executive board of the AfDB in December 2013 will see the YTEP and the GISP projects being financed to the tune of US$4.1million and US$8million respectively.

The funded projects are set to contribute towards improving public sector capacity for economic recovery and inclusive growth as to the reduction of youth unemployment and poverty in Zimbabwe through sustainable pro-poor economic growth and improved socio-economic development led by the private sector.

And Magala said to achieve these goals, the projects will strengthen the enabling environment in order to improve the competitiveness of the private sector and thereby promote broad-based economic growth and development, export diversification and job creation.

The AfDB boss also called for effective leadership from the ministry of finance and economic development who will be managing the implementation of the project to ensure effective collaboration among all stakeholders and ensure that it is efficiently executed.

“I would like to call on all of you that will be implementing these projects to learn from experiences of other Bank supported projects. Issues of rules and procedures, financial management, procurement, monitoring and evaluation should be comprehensively discussed in order to start the implementation of these projects on a good platform.

“So often projects fail because of poor implementation and we hope this will not be the case with this excellent project,” he said.

The bank said its support to YTEP and GISP is consistent with the government’s  priorities as enshrined in the Medium Term Plan (MTP 2011-2015) and the Zimbabwe Agenda for Socio-Economic Transformation (ZimAsset 2013-2018), as well as AfDB’s 2013-2022 strategy that focuses on growth  that is inclusive across age and geographies.

Thus these projects are designed to seize the youth dividend by enhancing the skills of Zimbabwean youth for improved employability, job creation, competitiveness and development of the private sector and poverty reduction.

Empowerment funds exhausted

POSSIBILITY of other youths accessing the youth empowerment loans hangs in the balance as banks have exhausted their allocated funds while some beneficiaries are said to be failing to repay their loans.

Funds under this facility are being handled by CABS, The Commercial Bank of Zimbabwe (CBZ) and The Infrastructure Development Bank of Zimbabwe (IDBZ).

However CBZ (US$1.7milion) and the IDBZ (US$250 000) have indicated that they have utilised all the money allocated to them under the facility.

The soft loan revolving fund set up in 2009 was put in place to build capacity to youths who are not involved in any mainstream economic activity, through income generating projects.

Addressing delegates at a youth fund dialogue meeting organised by the Zimbabwe Youth Council, CBZ Head-Microfinance and Consumer loans Handson Maeresera said although they have exhausted their share of the fund, they are worried by the level of non-repayment.

“The available funds allocated to CBZ were exhausted, but this is a revolving fund which must be repaid but youths think this is money to spend.

“Most of the money is not being spent on projects they were applied for thereby affecting the repayment plans, that’s why most of them have failed to pay back.

“We are let down by the youths,” said Maeresera.

Speaking at the same meeting IDBZ Head-Special Programs Gregory Mupfumira while bemoaning that his organisation had received a small amount he also appealed to the beneficiaries to honour their loans.

“We received US$250 000 in a country that has 10 provinces you can do the sums and you can come to the conclusion that it’s really nothing, though we are not complaining since it is a revolving fund.

“However some people who benefitted from the fund are not being honest with us. If your project was funded do the best to help others being funded by paying your loans.

“We are appealing to those who benefitted that if they are facing challenges they should come and see us so that we can see how best we can help them,” Mupfumira said.

The IDBZ official indicated that while they are aware that due to the prevailing economic situation in the country markets are now depressed and it’s now more difficult to acquire raw materials, beneficiaries are best advised to seek guidance from the banks on the way forward than to hide.-

Cleaners demand duty exemption

COMPANIES in the cleaning sector say they want a duty free regime similar to the one extended to the tourism sector when importing equipment for use.

In terms of the Customs and Excise Tourism Rebate Regulations 2013 published in Statutory Instrument 173 of 2013, new capital equipment for expansion, modernisation and renovations of hotels and restaurants, boat equipment and other goods for the exclusive use in the tourism business by the tourism operator may enter the country duty free and Value Added Tax free.

Cleaning companies say they want to be exempted as well when they import their equipment such as polishers, scrubbers and vacuum cleaners, among others, which are not manufactured in the country.

In an interview, Surdax Investments (Pvt) Limited managing director Roselyn Musarurwa-Charehwa, said the duty regime has helped change fortunes for the country’s tourism sector but added that not extending the same to her sector will be unfair as they also import capital equipment which also creates employment.

“It’s double trouble for us; first there is the cash crisis where no one, including your own banks will give you an overdraft, while companies take long to pay for services,” she said.

“And then there is the issue where we are being charged high import fees when importing capital equipment which is not even manufactured locally.

“It’s a vicious cycle because this equipment is actually helping in employment creation, so I think it’s high time the relevant authorities consider duty exemption for us as well.”

The issue of duty exemption has generated heated debate and controversy in the country, with people expressing mixed feelings over it.

Former finance minister Tendai Biti once cancelled the duty window in his 2010 Mid-Term Fiscal Policy Review Statement citing abuse of the facility by some operators whom he said were importing vehicles for personal use and not tourism purposes.

The move sparked outcry from maverick businessman Phillip Chiyangwa who viewed it as a personal attack on his business empire.

The duty window had been created to help the tourism sector spruce its image ahead of the first Fifa World Cup tournament on African soil hosted by South Africa in 2010.