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.

We need partners: Parirenyatwa

HEALTH and Child Care minister David Parirenyatwa says Zimbabwe badly needs the support of partners to improve the health sector.

Speaking during the USAID/Maternal and Child Health Integrated Program (MCHIP) success celebration and commitment renewing meeting, Parirenyatwa said partners were very important but should recognise established leadership in the country.

“We do need partners and stakeholders in the health sector and I am happy that we have a myriad of them who are assisting us,” said Parirenyatwa.

“We certainly cannot do it alone and we recognise that as a country, but you need to also accept our leadership.

“Health and quality life is not the sole mandate of the health sector as we are impacted by a lot of other things like water and even roads.

“For example, if there are no good roads that will enable ambulances to go and carry pregnant women, it’s a road issue that also becomes a health issue.”

Globally, MCHIP is the USAID global flagship which focuses on reducing maternal, newborn and child mortality in 30 countries, contributing to Millennium Development Goals 4 and 5.

It’s goal is to increase access to high-quality Maternal Newborn and Child Health (MNCH) services and strengthen health services in Zimbabwe by supporting the Health ministry and contributing to the scaling up and rollout of evidence-based, high-impact interventions that will reduce maternal, newborn and child morbidity and mortality and malnutrition and support progress towards the attainment of MDGs 4 and 5.

US Ambassador to Zimbabwe Bruce Wharton said his country was giving MCHIP US$15 million for the next three years to help Zimbabwe make progress in health issues.

Ambassador Wharton said it was unacceptable for children to die of preventable diseases and hunger.

“The US is committing US$15 million to MCHIP for the next three years so that they can expand to other five districts in Manicaland.

“No child should die from preventable diseases; no mother should die while giving birth and no person should die of hunger.” 

‘Solve 99 year leases issue’

GOVERNMENT has been urged to quickly resolve the issue surrounding the 99-year leases to make them bankable so that resettled tobacco farmers can easily access funding from banks.

Resettled farmers are unable to fully utilise their land owing to a cocktail of challenges, including a lack of critical resources such as seed, fertilisers and funding.

Even though government issued 99-year leases, farmers can’t use them as collateral as banks say they are unbankable.

Seasoned market watchers Tetrad Securities said solving the issue of leases will go a long way in helping small farmers, especially in tobacco farming, to access funding to buy seeds and fertilisers on time.

“For starters, there is need for the government to assist farmers, especially small-scale farmers who now command the largest percentage, in accessing funding.

“Funding is necessary so that farmers prepare in time and purchase the required chemicals required during the whole process.

“The reason why this is now critical is that there isn’t much scope or benefits to be realised from increasing hectarage but rather enhancing the quality of the leaf (tobacco).

“Thus there is need for funding to be provided so that more resources will be channelled within the land under hectarage.

“This also means that the issue of 99 year leases needs to be solved so that farmers access funding from banking institutions,” Tetrad said.

Zimbabwe’s yields have been drastically falling due to a range of factors.

Currently, about 2 million people require food aid.

Tetrad added that for the country to remain a dominant force in the global tobacco industry its ability lies in improving yields which would require training in the tobacco sector to enhance quality and improve yields which have been low despite the increase in hectarage.

Tobacco decentralisation applauded

MARKET watchers have applauded the Tobacco Industry and Marketing Board (TIMB) for decentralising tobacco auctioning saying the move was a step in the right direction.

Decentralisation comes at a time when more farmers were opting to grow highly rewarding golden leaf resulting in the number of registered tobacco farmers swelling to 91 278 from 70 904 in the previous season.

Zimbabwe is this year expected to produce 170 000 tonnes of tobacco from about 90 000 hectares planted at a yield of 1.88 tonnes per hectare.

In previous selling seasons, farmers were required to transport their produce to Harare where they would spend many nights and days at auction floors.

Tetrad Securities in its weekly market watch ending February 14, 2014 said the decentralisation will help bring buyers closer to farmers.

“During the week under review, TIMB, for the umpteenth time, issued a reminder to the effect that the 2013/14 marketing season will open on the 19th of February 2014.

“Three auction floors were licensed to handle auction sales and these are; Tobacco Sales Floor (TSF), Boka Tobacco Auction

Floors (BTAF) and Premier Tobacco Auction Floors (PTAF).

“In addition, Mashonaland Tobacco Company will handle contracted crop sales through its floors which are located in Harare, Rusape, Mvurwi and Karoi.

“The move by TIMB to slowly decentralise contract sales is a step in the right direction.

“This is so because the sellers will be brought closer to the buyers compared to a scenario where all sales are done in Harare.

“This enhances the quality of the crop compared to a scenario where farmers have to bring the crop to Harare from as far as Karoi,” said Tetrad.

Tobacco last year grossed around US$616.1 million and expectations are high this season that the figure will rise due to massive interest to grow the crop among farmers.

Harare disappoints EMA

 

THE Environmental Management Agency (EMA) says city councils, especially the City of Harare, are not doing enough to manage solid waste.

Statistics show that of all the 57 orders issued by EMA in 2013, 43 of them were issued to Harare City council.

Orders are legally binding documents ordering a city council to clear rubbish in undesignated areas.

Despite the 43 orders, a media tour organised by EMA around Harare’s high density suburbs especially Budiriro and Highfield 3, exposed heaps of rubbish dating back to June 2013 that remain uncollected.

Vendors at Tichagarika Shopping Centre in Highfield 3 said city officials have told them on countless occasions that they have no fuel to collect the accumulating rubbish. 

The media recently exposed the hefty salaries earned by high ranking Harare City Council officials at the expense of service delivery, which has nose dived since the introduction of multiple currencies in February 2009.

Harare City Council is on record saying they have no money and equipment to effectively clear rubbish and provide adequate water to residents alleging non-payment of rates.

EMA’s environmental education and publicity manager Steady Kangata told the media during the tour that Harare and other city councils have let his organisation down by failing to effectively deal with rubbish.

“…in city centres there is no proper solid waste management and in residential areas. We are exposing people to diseases caused by rubbish.

“But our biggest challenge and let down are local authorities; imagine that people at times put litter in bins and they get filled but no one gets to empty them timeously.

“Harare has failed to sustain clearing of rubbish despite the Orders we issued to them. What is happening is that they clear one spot and as they move to other spots, heaps of rubbish start to accumulate where they would have cleared because they take long to do it.

“The situation is not exclusive to Harare but even other cities are failing,” said Kangata.

He also took a swipe at litter bugs especially those that throw litter from their vehicles saying they risk being arrested.

He added that his organisation is working with the Zimbabwe Republic Police and Harare Municipal Police to bring litter bugs to book.

Last year, the agency said about 703 litter bugs was arrested and of that number 203 were people who throw litter from their vehicles, especially those with posh vehicles while 500 were pedestrians.

Trade deficit widens

By Daniel Chigundu

THE gap between imports and exports continues to widen on the back of the country’s collapsing industrial production capacity and poor exports, Zimbabwe Statistical Agency (ZimStat) has revealed.

“Zimbabwe imported goods worth US$6.55 billion against exports of US$2.78 billion in the ten months to October 2013.

“Resultantly, the trade deficit widened by 25 percent to US$3.77 billion from US$3.02 billion recorded in August,”

ZimStat added that South Africa remained the largest trading partner accounting for 48 percent (US$3.17 billion) of the imports and 73 percent (US$2.04 billion) of exports mainly driven by the country's mineral outputs.

Since the land exercise Zimbabwe has been importing food from South Africa and neighbouring countries due to poor farming methods employed by the new farmers, coupled with erratic rains.

Late last year MDC-T shadow finance minister Tendai Biti said the problems facing the country cannot be patched up overnight and that the situation is set to worsen on the back of an under-funded agricultural season.

“I have move around the country and there has not been much in terms of land preparation, it means we are going to experience food deficit, agriculture has been underfunded, inputs distributed under the presidential scheme are too little and banks have only lent less than US$200million.

“Economic indicators show that there will be a serious shrink of 23 percent in the agricultural sector, 32 percent in mining while the economy will grow by between 1.5 percent to 1.8 percent next year,” said Biti.

Capacity utilisation is said to have deteriorated to below 39 percent owing to a cocktail of challenges chief among them expensive but unreliable water and power supplies, lack of spare parts and unavailability of cheap funds for recapitalisation.

The situation has also resulted in retrenchments of at least 300 workers per week with many companies downsizing or folding operations.

Seasoned market watchers Tetrad Securities said the situation is not health and requires immediate attention.

“Solutions are also needed for the widening trade deficit. We remain a net importer owing to capacity constraints in industry. The further 25 percent increase in the deficit to US$3.77billion shows that the situation continues to deteriorate which is not healthy.

“Furthermore, the deficit was mainly affected by the low exports that have been recorded this year. Value from exports was low owing to softening global commodity prices but what is worrying is the fact that production in most minerals has remained very low due to funding issues and this has made Zimbabwe extremely vulnerable,” said Tetrad.

Could this be the solution?

By Daniel chigundu

IN the last weeks of November last year a new political party (Transform Zimbabwe) was formed out of a prayer network and claims to be God’s own project to walk the country out of its political, economic and social misfortunes.

Zimbabwe is currently in a serious economic crisis underpinned by 80 percent unemployment rate, shortage of power, a huge wage bill, an unfunded agriculture season, domestic debt, sovereign debt, deindustrialisation, lack of FDI, lack of domestic savings and vulnerabilities in the Banking sector.

The coming onto the scene by Transform Zimbabwe has however resulted in many people wondering whether this could be the “Moses” set to guide the country’s exodus from poverty to the good times.

Interim president Jacob Chengedzeni Satiya Ngarivhume says his party will focus on re-engagement with western countries, building an inclusive and competitive economy and empowering every Zimbabwean through access to education, training and health facilities.

“In Prayer Network Zimbabwe, we have created a network throughout Zimbabwe to pray for the spiritual renewal of the nation and heal the social and economic fabric of our society. 
“Our objective is to nurture in all our members those values of integrity, trust, transparency, accountability and goodwill we would like to see in our leaders
“Our aim is to cultivate leaders from all walks of life whose inner spiritual transformation, both in their private and public life, makes them exemplars and role models for those they lead,” he said in a statement.

It remains to be seen how the party proposes to tackle the many challenges being experienced in the economy today which according to former finance minister Tendai Biti is a result of dearth of leadership with the craft competence ,the care and the vision to tackle the present challenges.

So dire is the situation in Zimbabwe that in the past few months there has been massive devaluation of business confidence, activity and wealth creation, with retrenchments, company closures and capital flight being the order of the day since elections.

The liquidity crisis is so bad that echoes of 2008 are now reverberating, there are now limitations on cash withdrawals, telegraphic transfers are now taking longer and cash at ATMs is scarce for the bigger Banks and totally extinct for the smaller Banks.

Statistics also indicate that up to August 2013 imports have been around US$5.6 billion against exports of US$2.3 billion resulting in a trade deficit of around US$3 billion

Tendai Biti said the problems facing the country cannot be patched up overnight as they are a structural problem reflecting collapse of the productive sector, adding that it is a supply side issue demanding a supply side solution.