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.-