finance

‘Power key to attaining mining targets’

THE Chamber of Mines says the attainment of Zimbabwe’s target of a US$12 billion mining industry depends on the availability of adequate power. This comes amid revelations that the sector recorded a significantly subdued performance during the fourth quarter of 2022, largely due to acute power cuts in the country. Zimbabwe’s heavy load-shedding has seen…

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Willdale sets sight on regional markets

WILLDALE says it has set its sights on exporting its products to Mozambique and Zambia to boost its foreign currency generation. The brickmaker’s chief executive, Nyasha Matonda, recently told The Financial Gazette that Mozambique will be the starting point for the regional push. “We have had serious inquiries coming through and we have been there…

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Chinese citrus deal excites Zimbabwe

The Zimbabwean government is upbeat about the prospects of local horticulture products gaining access to the Chinese market after the signing of a citrus trade protocol between the two countries. The 2021 protocol was signed amid efforts by Zimbabwe to add China as a major agriculture export market. It will broaden export destinations for Zimbabwean…

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Diamond output surges 62 percent

ZIMBABWE’S diamond production increased by 62,2 percent to 1,52 million carats in the fourth quarter of 2022, from 942 000 carats produced in the fourth quarter of 2021, a new report shows. The southern African country is one of the major diamond producers in Africa. “The increase in output of diamonds was largely due to…

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Tobacco, US$ wages ‘driving’ dollarisation

A LOCAL research firm, Akribos, says transactional dollarisation will likely continue to expand as economic actors try to hedge against currency risk in a high inflationary environment. This comes as experts have continuously warned that the worsening volatility of the Zimbabwe dollar is creating uncertainty within the economy. More than three-quarters of domestic spending is…

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Funding squeeze hits sub-Saharan Africa

PERSISTENT global inflation and tighter monetary policies have led to higher borrowing costs for sub-Saharan African countries and placed greater pressure on exchange rates, the International Monetary Fund (IMF) has said. Last year and the start of this year saw most countries in sub-Saharan Africa, including Zimbabwe, increasing interest rates as a measure to tame…

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Varun seeks more land

VARUN Beverages Zimbabwe (Varun) says it is in talks with the government to obtain more land to allow it to further expand its business. Speaking at the commissioning of the company’s US$20 million water and bottles closure plants, chairman Ravi Jaipuria said the company has run out of space for further expansion. “I don’t think…

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GB Holdings volumes recede

RUBBER and chemicals specialists, GB Holdings, say volumes have declined as Covid-19-related business has gone down after the threat from the pandemic significantly receded over the last year. In its inflation-adjusted financial statements for the year ended December 31, 2022, company chairman Godfrey Nhemachena said total turnover increased to $3 billion, representing a 53 percent…

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TAX MATTERS: Transfer pricing rules: Zimbabwe’s perspective and beyond!

TRANSFER pricing is not an exact science. It involves the pricing of goods or services outside normal commercial parameters so as to gain some tax advantages. Transfer pricing is anchored on the arm’s length principle. The arm’s length principle requires that compensation for any inter-company transaction should conform to the level that would have applied…

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Dollarisation to continue: Think-tank

IH SECURITIES (IH), a local financial services firm, says it expects Zimbabwe’s dollarisation to continue in the foreseeable future despite authorities’ efforts to promote the domestic unit. This comes after the Zimbabwe Statistics Agency (Zimstats) recently revealed that 75 percent of domestic transactions are now being conducted in foreign currency. “Going forward, the theme of…

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