By Tawanda Musarurwa

HARARE – The Zimba-bwe Consolidated Diamond Company (ZCDC) has been caught in the eye of a storm in view of revelations that there is no legal framework to support its existence as a public entity.

Appearing before the Parlia-mentary Portfolio Committee on Mines and Energy this morning Ministry of Mines and Mining Development per-manent secretary Professor Francis Gudyanga admitted the anomaly.

“The company (ZCDC) was formed in terms of the Com-panies Act and registered as such, and there was no act

of Parliament similar to, say for ZMDC or other corpora-tions,” he said.

In terms of the Zimbabwean Constitution Section 315:

“An Act of Parliament must provide for the negotiation and performance of the

following State contracts (a) joint-venture contracts; (b) contracts for the construction and operation of infrastruc-ture and facilities; and (c) concessions of mineral and other rights; to ensure trans-parency, honesty, cost-ef-fectiveness and competitive-ness.”

The ZCDC was formed earlier in February after the special grants that were issued to joint venture companies with the Zimbabwe Mining Devel-opment Company (ZMDC) namely Anjin, DMC, Jinan, Mbada, DTZ-OZGEO, RERA, Gye-Nyame, Kusena and Marange Resources expired and were not renewed.

The ZCDC’s current special grant has a specified mining period running from April 7, 2016 to April 8, 2019.

Prof Gudyanga in eye of diamond storm

But of apparently greater concern to the Parly Commit-tee was ZCDC’s ‘improperly constituted’ board – with

News Update as @ 1530 hours, Monday 20 June 2016

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ZCDC an illegal entity?

Professor Francis Gudyanga

Prof Gudyanga also sitting on the board as the interim chairman – and some con-troversial decisions made resultantly.

Prof Gudyanga previsouly held the post interim chair-man of Marange Resources, and is currently interim chairman of the Mineral Mar-keting Corporation of Zimba-bwe (MMCZ).

Said Committee chair MP Daniel Shumba:

“You have no mandate. You are not properly constituted as a board, you can’t go and fire half the company and go and hire somebody who is your ex-student as acting CEO (Dr Ridge Nyashanu)….You also fired the chief sorter and sorters and replaced them with a company called Heroes Diamond Consulting Services, which employs two Namibians, one Tswana and one Zimbabwean. What’s the rational?” In response Prof Gudyanga said the improp-erly constituted board was a

result of an earlier decision by Government to establish the ZCDC as a joint venture between itself and the pri-vate diamond companies.

“The formation of ZCDC was done with anticipation of partnership between the Government with 50 per-cent and the other private diamond companies holding the other 50 percent, and that’s why an interim board was formed to represent the Government side with antic-ipation that the other half would come from the other companies together who would have their appointees corresponding to their share-holding.”

Meanwhile, according to fig-ures provided by the ZCDC’s acting CEO Dr Nyashanu, the diamond firm has so far produced 513 364 carats with revenues amounting to $21 million to date and a profit of $6,7 million.

The acting CEO told the same Committee that out of that

profit ZCDC has declared $1 million to Government, while the balance went to acquiring new equipment.

Of the concession that ZCDC took over, Marange and DMC are currently operational.

According to Prof Gudyanga, the establishment of ZCDC was necessitated by declining payments to Government and investment pledges defaults by the private diamond com-panies.

Official figures show that benefits from the diamond sector have been declining gradually since 2011. In 2011, Government received payments from the diamond firms amounting to $168,5 million, which declined to $142,4 million in 2012 and $93,2 million in 2013.

And in 2014 payments to Government amounted to $84,3 million, which further declined to $23,4 million last year.●

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HARARE -The recently established National Build-ing Society (NBA), a wholly owned subsidiary of the National Social Security Authority (NSSA), will soon take over the pension fund's land bank for construction of low cost housing across the country, a cabinet minister has said.

Launched last month, the NBS was specifically set up to provide not only low cost housing but affordable mortgage in an economy where low income earners have been elbowed out of the housing market due to stringent and costly demands to qualify for loans and other housing schemes.

Zimbabwe has a housing waiting list of over 1,25 mil-lion. Public Service, Labour and Social Welfare Minister, Prisca Mupfumira said NSSA, which has been criticised for failing to meet the housing

needs of its members, owned large tracts of land across the country.

“NSSA will be looking at all the land that is available which will be handed over to

the National Building Society to ensure that we achieve the objectives of the NBS,” she said.

Minister Mupfumira said workers were free to join the NBS which would give them access to mortgages, which have been pegged at an interest rate of 9.5 percent per annum, the lowest on the market.

The NBS, which currently has branches in Harare and Bulawayo, has said it will embark on at least one or two housing projects this year.

Its target is to have at least 2 000 new housing units on the market every year. Before establishment of the NBS, NSSA has financed housing projects in major cities but has also sank pen-sioners funds in other failed projects, losing millions of dollars.- New Ziana.●

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NBs to take over NssA land bank

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By Funny Hudzerema

HARARE –The Reserve Bank of Zimbabwe has engaged the Confederation of Zim-babwe Retailers to come up with solutions to mop large amounts of cash which are circulating in the informal sector.

Currently a total of $7 bill ion is estimated to be circulating in the informal sector, which is being accused of external-ising cash since the money is not being banked.

CZR president Mr Denford Mutashu said lack a proper

data base for the retail sec-tor has resulted in large of sums of money circulating in the sector and cash exter-nalisation as most shops are getting importing the goods that they sell.

“The RBZ asked the CZR to come up with proposal on how it can help mop up the estimated $7 bill ion that is circulating in the informal sector.

“As CZR we want to create a data base for shops oper-ating the informally so that they are accountable and pay tax which will aid economic growth,” he said.

“We are going to work with RBZ and local banks to install POS machines around the country which will promote the use of plastic money and reduce cash externalisation

and cash crisis which the country is experiencing.

“We are also lobbying for Government to introduce a less punitive tax regime for the informal sector like $50 per month which will assist in formalising the sector,” he said.

The RBZ assured CZR that it will introduce a desk to deal with CZR issues promptly. He added RBZ said that it is committed to assist in capacitating and funding the activities of CZR.

.●

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RBZ, retailers to mop up unbanked monies

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HARARE -Africa needs to increase its investment in sci-ence and technology to become more efficient and competitive in agriculture and reduce costs of importing food, an expert has said.

In a statement, African Develop-ment Bank president Akinwumi Adesina said the continent had great potential which needed to be unlocked.

“Africa’s potential that requires being unlocked is massive as it has 65 percent of the world’s arable land,” he said.

“But Africa cannot eat potential.”

According to the United Nations World Population Prospect Report of 2015, at least 2,4 billion people are projected to be added to the global population between 2015 and 2050, with 1,3 billion in Africa alone.

This means if Africa realises the potential, it will feed over nine billion by 2050.

“What Africa does with agricul-ture has far reaching impact beyond the region. It will shape the future of food in the world

that is why greater investment in the space is a pre-requisite,” added Adesina. He also lamented that Africa’s agriculture sector had been looked at, in the past, as developmental and part of the social sector.

“This approach has not been helpful, the focus has always been viewed in terms of manag-ing rural poverty and not wealth creation,” he added.

“This sector accounts for about 60 percent in the labour force in many African economies barely contribute much in terms of reve-

nue for governments.”

Adesina said the high level of poverty in many rural communi-ties demonstrated that there was much lip service being paid.

“Africa spends $35 billion dollars in importing food; it is projected that the figure will grow to $110 billion US dollars by 2025.

Africa is importing what it should be producing, creating poverty within Africa and exporting jobs to other continents,” he said.- New Ziana.●

Africa spends $35 billion importing food

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HARARE -The ZSE opened the week on a positive note as the mainstream indus-trial index opened the week higher at 93.96 after gaining 0.57 with marginal gains in Delta, Padenga and BAT lift-ing the bourse.

BAT was up by $0,0500 to $12,0000, while bev-erages giant Delta added $0,0148 to trade at $0,5348

and Padenga was $0,0006 stronger at $0,0762.

Colcom was marginally up by $0,0002 to settle at $0,1632 and CBZ inched up $0,0001 to $0,1100.

Trading in the negative ter-ritory was Old Mutual which eased $0,0269 to trade at $2,2857 and Edgars came off $0,0050 to close at $0.0480.

Meikles lost $0,0020 to trade at $0,0700 while Barclays shed $0,0005 to settle at $0,0188.

The mining index was flat at 26.24 as Bindura, Fal-gold, Hwange and RioZim all remained unchanged on previous price levels at $0,0120, $0,0050, $0,0300 and $0,1700 in that order - BH24 Reporter ●

Industrials open on a positive

14 ZsE

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MovERs CHANGE ToDAy PRICE UsC sHAKERs CHANGE ToDAy PRICE UsC

DELTA 2.84 53.48 EDGARS -9.43 4.80

PADENGA 0.79 7.62 MEIKLES -2.77 7.00

BAT 0.41 1,200.00 BARCLAYS -2.59 1.88

COLCOM 0.12 16.32 OLD MUTUAL -1.16 228.57

CBZ 0.01 11.00

INDEx PREvIoUs ToDAy MovE CHANGE

INDUSTRIAL 93.39 93.96 +0.57 points +0.61%

MINING 26.24 26.24 +0.00 POINTS +0.00%

17 ZsE TABlEs

ZsE

INDICEs

stock Exchange

Previous

today

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20 DIARy oF EvENTs

The black arrow indicate level of load shedding across the country.

PowER GENERATIoN sTATs

Gen Station

20 June 2016

Energy

(Megawatts)

Hwange 360 MW

Kariba 565 MW

Harare 30 MW

Munyati 0 MW

Bulawayo 22 MW

Imports 0 - 400 MW

Total 1193Mw

22 JUNE 2016 -- Zimre Holdings limited 18th Annual General Meeting; Place: NICoZDIAMoND Auditorium, 7th Floor Insur-ance Centre, 30 samora Machel Avenue, Harare; Time: 1430 hours...

22 JUNE 2016 -- GB Holdings limited Annual General Meeting; Place: Cernol Chemicals Boardroom, 111 Dagenham Road, wil-lowvale, Harare; Time: 11.30 hours...

23 JUNE 2016 -- Zimpapers 89th Annual General Meeting; Place: Zimpapers ltd Boardroom, sixth Floor Herald House, Cnr. G. silundika/sam Nujoma street, Harare; Time: 1200hrs…

24 JUNE 2016 -- Dawn Properties Annual General Meeting; Place: Great Indaba Room, at the Monomotapa Hotel, 54 Parklane, Harare on Friday; Time: 10:00 hours...

22 JUNE -- lafarge Cement Zimbabwe Annual General Meeting; Place: Manresa Club, Arcturus Road, Harare; Time: 10:30hrs

30 JUNE -- African Sun Annual General Meeting; Place: Inyangani Room, ground floor at Holiday Inn Harare, Corner 5th street and samora Machel Avenue; Time: 12:00hrs

THE BH24 DIARy

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JoHANNEsBURG - South Africa's rand strengthened as much as 1,3 percent against the dollar on Mon-day, buoyed along with other emerging market cur-rencies by lessening fears of Britain voting to leave the European Union.

It rallied to 14,9900/dollar, its strongest for a week, and was up 1,2 percent at 15.0100 by 0644 GMT, com-pared with Friday's close of 15,1950, as investors' appe-tite for risk improved.

The rand took its cue from Asian markets which gained across the board as opinion polls showed the campaign to keep Britain in the EU had recovered momentum. The referendum is on Thurs-day.

"EM currencies are strength-ening this morning on the back of the new Brexit polls," Standard Bank said in a note.

"The rand has strengthened to trade around 15,00, look-ing set to break below this

level today."

Government bonds ticked higher, and the yield on the 2026 benchmark dipped half a basis point to 9,06 percent.

South African stocks also looked set to open firmer at 0700 GMT, with the JSE exchange's Top-40 futures index adding 1,3 percent

- Reuters●

24

Rand firms as easing Brexit risk buoys emerging currencies

REGIoNAl NEws

JoHANNEsBURG - South African mobile phone operator MTN named Vodafone European clus-ter head Rob Shuter as its new chief executive on Monday.

Shuter, who will start no later than July 2017, replaces Sifiso Dabengwa, who resigned last Novem-ber after a $5,2 bill ion fine in Nigeria exposed corporate governance flaws at Africa's biggest mobile phone operator- Reuters●

MTN names vodafone Europe head as new CEo

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Oil gained for a second day above $48 a barrel as the dollar retreated, boosting the appeal of commodities priced in the US currency.

Futures rose as much as 1,3 percent in New York after climbing 3,8 percent Friday. The Bloomberg Dollar Spot Index fell for a fourth day after closing at the lowest since June 9. Russian Presi-dent Vladimir Putin is consid-ering selling part of oil pro-ducer Rosneft OJSC to China and India as he struggles to meet spending commitments before a possible re-election bid in less than two years.

Crude has advanced more than 80 percent from the lowest level in 12 years as disruptions from Nigeria to Canada and falling output in the US trim a global glut.

The UK entered the final week of campaigning ahead of its referendum on Euro-pean Union membership that is being watched by govern-ments and investors around the world amid worries a so-called Brexit would spark a wave of turmoil across

global markets.

Bottom of Form

“The biggest factor this week may well be currency, particularly given the uncer-tainty around the Brexit vote,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone.

“The widely shared view that the market will be balanced

by the end of the year is keeping a bit of support in place. Oil above $50 will tempt the highly agile US shale producers back into action, so that should keep a cap on prices.”

West Texas Intermediate for July delivery, which expires Tuesday, rose as much as 61 cents to $48,59 a barrel on the New York Mercantile Exchange and was at $48,46

at 2:06 p.m. Hong Kong time. Total volume traded was about 28 percent below the 100-day average. The more-active August contract gained as much as 63 cents to $49,19 a barrel.

Rosneft sale

Brent for August settlement climbed as much as 57 cents, or 1,2 percent, to $49,74 a barrel on the London-based ICE Futures Europe exchange. The contract advanced $1,98 to $49,17 on Friday. The global benchmark crude was at a premium of 55 cents to WTI for August.

Russia is seeking buyers for 19,5 percent of Rosneft and would prefer a joint deal with the two nations leading the growth in global energy demand, two people famil-iar with the matter said. Officials in Moscow expect to raise at least 700 bill ion rubles ($11 bill ion) from the sale, which would set a privatization record for the country.

. – Bloomberg●

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oil advances for second day above $48 as dollar extends decline

INTERNATIoNAl NEws

By Aurther shoko.

PayPal, the American online money transfer, is undoubt-edly a global online transac-tions giant. According to its own account has 179 million accounts drawn from 190 markets.

In 2014 it gave Zimbabweans a glimmer of hope by lifting what, by all definitions, was an embargo on Zimbabwe by starting to allow accounts with Zimbabwean cards and bank accounts.

Two years later Zimbabwe is stil l not fully plugged in into all PayPal features. Things don’t look good either.

In view of the current cash crisis in Zimbabwe I thought I would revisit PayPal’s sta-tus on the Zimbabwean mar-ket and share an update.

To make things easy I developed a Q & A approach to hopefully capture what I think are the key issues to be aware of concerning

PayPal and Zimbabwe in June 2016.

why is PayPal such a big deal?

PayPal is a big issue because it is dominant player. Mill ions of websites worldwide, many of them exclusively, use Pay-Pal to receive payments.

This means potential buyers or customers from markets without PayPal cannot make purchases on such websites.

So the gust is both on the potential customer and the business, but mostly against the customer from a country without PayPal (as Zimba-bwe was before June 2014), because most countries now have PayPal.

PayPal is also a big deal because it gives extra secu-rity when shopping online. Card fraud remains a major issue across the internet.

By using PayPal you won’t have to reveal your card

details at every online mar-ketplace.

You simply pay using the ser-vice and only PayPal knows your card details as opposed to as many sites as you shop from knowing your details.

This bit is covered for Zimba-bwe since we can now open accounts and shop online using PayPal.

what is the current status of PayPal in Zimbabwe?

Nothing much has changed since June 2014 when PayPal became available in Zimba-bwe and nine other countries including Nigeria.

Zimbabwe domiciled users can stil l open accounts using local addresses and send money to other PayPal users that can receive money or buy online on marketplaces or stores accepting PayPal as a payment method.

In a nutshell PayPal remains consumer (outgoing) and not

business (incoming) oriented service for Zimbabwe.

what does a full feature PayPal service look like?

When PayPal is at its best as is the case in Botswana or South Africa, businesses can open merchant accounts to receive payments locally and abroad via PayPal.

This also applies to solopre-neurs who may want to sell single items or run a per-sonal store on a blog or on marketplaces such as eBay, for example.

Peer to peer money trans-fers are also possible within the same market. At the moment, since Zimbabwe cannot receive money via PayPal in the first instance, PayPal account holders in Zimbabwe cannot send money to other Zimbabwe PayPal account holders. ... To be continued ..

– TechZim●

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Zimbabwe’s incomplete PayPal experience adds to cash crisis frustrations