finance

Cafca volumes decline

AdvertisementsCABLES maker CAFCA says its sales volumes dropped significantly during the three months to June 2019 due to Zimbabwe’s “recessionary monetary policies”. This comes as the central bank has adopted a disinflationary monetary policy after raising interest rates and mopping up liquidity from the market, among other measures. Cafca’s trading update for the quarter under…

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Mauritian firm buys Edgars

AdvertisementsSTRUGGLING South African retail group Edcon says it has sold its shareholding in Edgars Stores in Zimbabwe (Edgars) to service some of its debts.Advertisements The firm, which held a 41 percent stake in Edgars, recently concluded a deal with lenders, South African landlords and the Public Investment Corporation as part of a restructuring plan to…

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Zimbabwe dollar return causes reporting headaches

AdvertisementsFINANCE minister Mthuli Ncube’s decision to re-introduce the Zimbabwean dollar has created reporting headaches for listed firms. This comes as comparisons between financial results for the half year ended June 30, 2019 and the previous corresponding period have been distorted by currency reforms that began in October last year, resulting in an accounting and planning…

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Listed firms count recession losses

AdvertisementsLISTED firms are reporting a slump in volumes due to waning demand as the country’s economy continues to deteriorate. Advertisements While most companies reported profits, which market analysts say are mostly inflationary, the results published so far invariably show a decline in volumes across various sectors. In its trading update for the quarter ended June…

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Sanlam enjoys growth despite subdued economy

AdvertisementsSANLAM Group closed 2,75 percent higher on the JSE to R73.87 a share after saying that its business had grown in the six months to June despite South Africa’s subdued economy that has squeezed consumers. The group said that despite the tough environment in which the economy contracted by 3,2 percent in the first quarter…

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FMHL misses out on regional business

AdvertisementsFIRST Mutual Holdings Limited (FMHL) says the country’s foreign currency shortages have seen its reinsurance business fail to underwrite regional business. Advertisements This comes as the country’s foreign currency shortages, caused by a persistent trade deficit, are threatening the viability of businesses from various sectors in the ailing economy. “First Mutual Reinsurance Company continued to…

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Life assurers called to reinsure

AdvertisementsTHE Insurance and Pensions Commission (IPEC) says Zimbabwean life assurers’ uptake of reinsurance, at about two percent, is very low and could lead to insolvency. Players are encouraged to reinsurer so as to spread portions of their risk portfolios to other parties to reduce the likelihood of paying a large obligation resulting from an insurance…

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Ziscosteel deal drags on

AdvertisementsINDUSTRY minister Mangaliso Ndlovu says government is yet to conclude negotiations with Chinese investor R and F for the resuscitation of Ziscosteel (Zisco), two years after the deal was consummated. Advertisements The deal, which is estimated to be worth over $2 billion, follows a series of similar efforts to restart the Redcliff based steel maker…

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Chartered Accountants relevance under scrutiny

AdvertisementsTHE Institute of Chartered Accountants of Zimbabwe’s (ICAZ) newly elected president Fungai Kuipa, has challenged the profession to reclaim its relevance in the country. According to a research done by former ICAZ president Martin Makaya in 2008, in a sample of 53 Zimbabwe Stock Exchange-listed entities, 67 out of 91 board members were ICAZ members.…

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‘Zimbabwe up to date with loans repayments’

AdvertisementsZIMBABWE is up-to-date with repayment of loans of about $8 billion extended to it by the African Export-Import Bank (Afreximbank) in the past 22 years, The Financial Gazette has learnt. Zimbabwe’s debt to Afreximbank surged by 66 percent to US$1,25 billion in May this year after government incurred a US$500 million loan facility from the…

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