Zimbabwe business rates fall

Zimbabwe has slipped down two places in the World Bank's ease of doing business 2013 survey, ranking 172 out of 185 economies.

The report, released on January 14, ranks economies based on ease of doing business in registering property, getting electricity, protecting investors, enforcing contracts and trading across borders among others, is a key benchmark to investors.

The country also performed badly in the ease of getting credit ranking, falling 10 places to 126 from 116.

According to the report, Zimbabwe slipped 14 notches on resolving solvency, seven steps on paying taxes, four steps on protecting investors, two steps on getting credit and one step on registering property and dealing with construction permits.

The Doing Business 2013 report, however, shows that the country has improved on getting electricity (+8), starting a business (+2), trading across borders (+5) and enforcing contracts (+1).

In the region, South Africa tops the ranking at 39 in the world, Rwanda on 52, Botswana on 59, Zambia on 94 and Mozambique on 147.

Below Zimbabwe are Democratic Republic of Congo at 181 and Republic of Congo at 183.

Ranked at 168 in 2011, Zimbabwe has been tumbling each year despite a raft of reforms introduced in the economy following the establishment of the multi-currency system in 2009.

Zimbabwe's major weakness is policy inconsistency and political bickering.

This has been exacerbated by the indigenisation law — compelling all foreign-owned companies with a net asset value of at least $500 000 and above to cede 51 percent shareholding to locals.

The indigenisation programme now requires both indigenous and foreign companies to get indigenisation certified, a move analysts say hampers the ease of doing business in the country.

The Economic Planning and Investment Promotion ministry introduced a one-stop-shop in 2010, aimed at reducing bureaucracy in starting a business, but policy inconsistency and political instability has seen foreign investors taking a wait-and-see approach on the country.

Subsequent reforms by the Zimbabwe Investment Authority, implemented in 2011, saw the time required to start a business declining from 97 days to 90 days.

Tapiwa Mashakada, Economic Planning minister, said although a lot of progress had been made in making Zimbabwe an attractive investment destination, the major task was to manage investors' negative perception towards the country.

"The Indigenisation policy must be scrapped, it is irrelevant to our economic situation," said Mashakada.

"For an economy like ours that is very thirsty of fresh capital, we need to have an unencumbered flow of foreign direct investment," he said.

Mashakada said Zimbabwe must come up with an investment charter that persuades investors to commit themselves to work with local people, promote financial sector stability and local procurement.

"That is the modern way of doing business. People must form companies and not the other way round. What we must be doing is broadening the cake and not shrink it," he said.

The City Council, NSSAto partner

The City council and National Social Security Authority are negotiating a housing partnership that will result in servicing and developing 800 stands.

The city mayor, Councillor ThabaMoyo confirmed this partnership adding that it was part of a venture to improve housing delivery. According to him the city is in dire need to have private partners that can chip in with funds towards the improvement of housing.

A NSSA representative  who spoke at the recent Zimbabwe Congress of  Trade Unions held in the city, confirmed that  the negotiations for the development of stands are still in progress. The City council recently reported that it requires more than US$60 million to effectively address the housing problem in the city and reduce the backlog that has increased to nearly 100 000 people awaiting housing.

“As NSSA we are embarking on various partnerships with local authorities in terms of providing funds for the development of stands. I am happy to disclose that that we are having negotiations with Bulawayo City Council with the view of creating a partnership towards housing delivery.” Said the representative.

BCC is also facing problems of an acute shortage of professionals meant to oversee the immediate development of these outstanding houses

GMB on the verge of recovery

The Grain Marketing Board (GMB) is taking an initiative in being one of the fastest recovering parastatals. The company seeks to add three new products to its silo brand this year intensifying its diversification and commercialisation strategy.

The GMB recently opened two state-of- the-art milling plants in Harare and Bulawayo. The Finance used to open up the mills was from the company’s pocket and not financed by the Government. The mills are worth over US$1 million.

 The company’s general manager, Mr Albert Mandizha, announced that this year they will venture into manufacturing bottled water and peanut butter after introducing soya mince and jam last year. They are increasing the number of their products.

He added that, “…We also have a financier whom we are working with who will bring us some equipment that will be producing 100 000 loaves and the first bakery will probably be in Gweru Or Bulawayo.

GMB was forced to close its bakeries in Marondera,  Bindura, Masvingo and Mutare and the hghest of the country’s economic meltdown due to the rampant shortage of wheat.The company is working towards rebranding its silo products as it strives to regain lost market share. It produces rice, mealie-meal, salt, beans, samp, soya mince and jam.

Bulawayo water woes to worsen

The Bulawayo City Council (bcc) has revealed that it is running out of water chemicals and this could be fatal on the issue of water supply in the City.

The local authority revealed that it has completely run out of Ammonia and only has a limited supply of aluminium sulphate.The later is used as a flocculating agent in the purification of drinking water whilst the later is used in conjunction with chlorine to produce potable water.

The City Mayor Councillor Thaba Moyo assured the public that there was no need for them to panic as the situation is under control. He added that the local authouty is working on how to raise funds to purchase the needed chemicals.

Unicef withdrew from a multimillion-dollar water treatment partnership with local authorities in which the United Nations agency assisted councils with procuring water treatment chemicals.

The Deputy Minister of Local Government, Rural and Urban Development, Mr Sesel Zvidzai told The Sunday News team that they are aware that some local authorities are struggling to acquire water chemicals supply after the Unicef pull out and it is for this reason that they are intervening.

He said they were also engaging Unicef authorities in the country to resume full-scale assistance if the situation did not improve.

Standard Chartered Bank opens another branch

Standard Chartered Bank of Zimbabwe is committed is bent on supporting the revival of industries in Bulawayo and will work as hard to facilitate the growth and development of the country’s economy as a whole. The Bank’s chairman, Mr Samuel Rushwaya stated that the opening of the second branch of the bank was a means to support industry revival for the City Of Kings.

He mentioned, at the official opening of another branch on Wednesday, that this was part of the institution’s commitment to invest uS$100 million over the next three years expanding its branch network. Mr Rushwaya also added that at least 20 000 workers lost their jobs due to the scaling down of operations in the city hence his institution is on a mission to provide jobs.

The second branch was designed to meet international standards enabling the bank to deliver superior financial performance and customer service.

He said the opening of this branch is a testimony that the bank is here for good

EcoCash benefits rural folks

EcoCash has come in handy for the rural folks as they can now send money hassle free. THe money transfering technique by Econet has lessened the risks of losng money through previous methods that were being used to send money to the rural areas. 
Atleast US$100 million is being transfered monthly from the country's urban centres to rural areas through Econet Wireless Mobile Money Transfer. resulting in a significant impact on the rural economy.Ecocash has opened up new economic possibilities for people in the rural areas who, up to now, have struggled to circulate money.
Econet is working on introducing a platorm for people in the diaspora to send money home. They believe that this would boost  the economy to recover and at te smae time eliminate problems of liquidity

zitf

ZITF

The Zimbabwe International Trade Fair (ZITF) is one of the key business development sector trade shows in Zimbabwe. The show markets leaders at each of its editions and topical discussions on latest business trend .Potentially profitable investment avenues are highlighted during this event.

The 54^th edition of the ZITF roars into life in a month’s time and the show promises to be fruitful. This year’s edition is likely to be quiet improved as there is a comparative increase in the uptake of exhibition space. To date the space is booked up to 10% higher than what the situation was like last year. 83% of the allocated space has been allocated so far. The ZITF is one of the key businesses development sector trade shows in Zimbabwe. The show welcomes top level corporate executives and market leaders at each of its auditions and topical discussions on latest business trends and prospects are held here.

A large number of renowned exhibiting companies take part in the event displaying a vast range of food and beverage items, agricultural products, apparels, leather goods, furniture, items and several other high quality products.There are top notch networking opportunities

This year’s theme is Building Value, Enhancing Growth weaving a tapestry of international business networks.

DIMAF

DIMAF

Distressed Industries and Marginalised Fund (DIMAF) was set up as an acknowledgement of the difficulties that businesses are presently facing accessing capital for operation and expansion programmes owing limited availability of many on the domestic market. The US$ 40million fund was launched in October 2011 with the objective of resuscitating ailing companies from Bulawayo and other areas.

Bulawayo was known as the country’s hub of industry and at one point was responsible for 75% of the country’s manufacturing activities however; sixty companies in Bulawayo are in the verge of collapse and urgently require $73 million capital according to a report   by the Ministry of Industry and Commerce. Government continuesto struggle to avail funds to revive industry in Bulawayo.

Last week state media reported that only US$13million had been disbursed to companies across the country from the US$40million Distressed Industry and Marginalised Fund.

In Bulawayo,13 companies are reported to have received funds amounting to US$6.5million from DIMAF while 5 more are yet to receive US$2.9million