Regional Human Capital Operations Manager – Human Capital x2 (Harare)

SAP Support Analyst (F1) – ICT: LEVEL 9 (Harare)

ABAP Developer: Level 9 (Harare)

Procurement Manager: D5 (Harare)

Financial Accountant (Harare)

Sales Consultant (Kadoma)

Cervical Cancer & Clinical Service Mentor Nurse

Laboratory Technician (Harare)

Spport Driver (Harare)

Food Security and Livelihoods Head of Department (Harare)

Accountant (Harare)

Accounting Assistants x3 (Harare)

Communications Intern (Harare)

Corporate Legal Counsel (Kamativi)

Company Secretary (Harare)

Marketing Manager (Harare)

Sales Manager (Harare)

Procurement Manager (D5)

Director Policy and Market Development (Harare)

Assistant Valuer Grade 7

Town Planner Grade 10

Till Operator x2 (Bindura)

Ambulance Technician (Bindura)

Business Development Manager

Intellectual Property Manager

Chief Research Officer (Bindura)

Teaching Assistant: Banking and Finance (Bindura)

Technical Assistant: Natural Resource Management (Bindura)

Administrator (Bindura)

Faculties Manager (Harare)

Staff Development Fellow: Department of Veterinary Pathobiology x4 (Harare)

Staff Development Fellow: Department of Construction & Civil Engineering (Harare)

Officer: Student Residential and Logistical Services (Harare)

Student Development Officers (Harare)

Information Manager (Harare)

Graphic Designer x2 (Harare)

Marketing Officer (Harare)

Technical/Copy Editor x2 (Harare)

Proofreader x2 (Harare)

Typesetter x2 (Harare)

Acquisitions Editors x2 (Harare)

General Hand (Harare)

Locum Pharmacists (Mutare & Ngezi)

Drivers x2 (Harare Campus)

Graphic Designer (Gweru)

Drivers (Harare Campus)

Artisan Supervisor – Fleet Maintenance (Gweru)

Transport and Logistics Officer - Tracking (Gweru)

SHEQ Intern/ Attaché (Bulawayo)

Nutrition Officer (Mutare)

Team Leader (Mutare)

Project Field Officer (Mutare)

Monitoring and Evaluation Officer (Mutare)

Assistant Accountant-Retail (Harare)

Trainee Risk Officer (Harare)

Sales Manager (Bulawayo)

The Competition and Tariff Commission (CTC), the competition regulator, has blocked CBZ Holdings Limited’s plan to acquire additional shares in First Mutual Holdings Limited (FMHL).
In 2023, CBZ purchased a 31.2% stake in FMHL from the National Social Security Authority (NSSA), increasing its total ownership to over 36%.
Under Zimbabwe Stock Exchange (ZSE) regulations, this required CBZ to make a mandatory offer to FMHL’s remaining shareholders. However, this proposal has now been halted.
In a notice to FMHL shareholders issued on December 05, CBZ’s Group Chief Governance Officer, Rumbidzayi Angeline Jakanani, said:
<blockquote>
Further to the Notice to Shareholders of First Mutual Holdings Limited (“FMHL”) issued by CBZ Holdings Limited (“CBZHL”) on 31 October 2024 relating to the Mandatory Offer in accordance with the Zimbabwe Stock Exchange Listings Requirements Sl 134 of 2019 and the Companies and Other Business Entities Act (Chapter 24:31), Shareholders are advised that the Competition and Tariff Commission (“CTC”) made its final decision on 29 November 2024 on CBZHL’s application for the approval of the acquisition of additional shareholding in FMHL through a Mandatory Offer.
The CTC has resolved that CBZHL must maintain 31.22% shareholding in FMHL which was initially approved by the Commission.
In light of the decision by the CTC, Shareholders of FMHL are hereby advised that CBZHL will no longer be proceeding with the Mandatory Offer to the Minority Shareholders in First Mutual Holdings Limited.
No further announcements will be made in respect of this issue.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Competition regulator says no to CBZ buying more shares in FMHL. CBZ bought a lot of shares in FMHL in 2023. They had to offer to buy more shares but now they can't. Shareholders of FMHL do not have to sell their shares to CBZ anymore. The Competition and Tariff Commission decided that CBZ can only have 31.22% of FMHL shares. CBZ will not be making any more offers to FMHL shareholders.

Competition Regulator Rejects CBZ's Bid For Additional FMHL Shares

Zimbabwe has received around 2,000 high-tech tractors, 80 combine harvesters, and other agricultural equipment from Belarus over the past three years. This equipment has been provided at concessional rates under the Belarus Farm Mechanisation Facility, to modernise the agricultural sector and increase productivity, <a href="https://www.sundaymail.co.zw/zimbabwe-gets-2-000-tractors-from-belarus">The Sunday Mail</a> reported citing authorities.
The machinery has been distributed to all districts in the country. The implementation of Phase 3 of the facility has begun, and it is expected to deliver an additional 4,000 tractors starting this year.
Eng. Edwin Zimunga, the chief director responsible for agricultural engineering, mechanisation, post-harvest agro-processing, and soil conservation, highlighted that the delivery of this machinery is a significant step towards modernising local agriculture. He said:
<blockquote>
The range of equipment that was delivered through the government-to-government programme covers issues to do with land preparation and tillage, planting and sowing, chemigation, fertigation, as well as weeding.
They also cover issues around harvesting through modern combine harvesters, and post-harvest agro-processing is also not left out . . .
 To date, out of Phase 1 and Phase 2, we now have in excess of 2 000 tractors, 80 combine harvesters and many other attachments that are being used in the agricultural mechanisation space.
</blockquote>
The range of equipment provided covers various aspects of farming, including land preparation, planting, irrigation, harvesting, and post-harvest processing. Modern combine harvesters have been introduced to improve the efficiency of harvesting operations.
Under Phase 3, there will be a focus on extending and upgrading strategic grain reserves. Farmers can access this equipment through farmer-friendly banks, such as CBZ, AFC Land Bank, Women’s Bank, and Youth Bank. They only need to make an initial payment of 15% and pay the remaining balance within an agreed period.
This initiative has resulted in a notable improvement in Zimbabwe’s agricultural machinery fleet, with the country now having 13,486 tractors and 303 combine harvesters, compared to 7,000 tractors in 2019.
Belarus has established BiSON Agro Machinery, a company in Harare that offers after-sales services, to ensure sustained support and maintenance for the equipment. The company also facilitates knowledge exchange and training between Belarusian and local engineers, enabling them to repair, maintain, and operate the machinery effectively.
Five years ago, Zimbabwe announced that it needed 40 000 tractors, at a time when only 9000 were available to work Zimbabwe’s 4 130 000ha of arable land.  The southern African nation looked to Belarus and other suppliers in a bid to plug the gap.
<a href="https://www.pindula.co.zw/2023/02/01/alexander-zingmans-aftrade-a-main-beneficiary-of-agreements-between-zimbabwe-belarus/">One of the main beneficiaries</a> of business agreements between Zimbabwe and Belarus is Aftrade, a business headed by infamous Belarusian tycoon <a href="https://www.pindula.co.zw/Alexander_Zingman">Alexander Zingman.</a> He was made Honourary Consul of Zimbabwe to the Republic of Belarus in January 2019. Aftrade has obtained contracts to develop grain storage facilities, supply tractors and harvesters to the government, and secure equipment deals in the mining and logging industries thanks to the visit of Belarusian President Aleksandr Lukashenko to Zimbabwe.
<div class="in_article">
Zimbabwe also signed a US$51 million deal with US company John Deere for the supply of 1 300 tractors, 80 combine harvesters and other equipment. Zimbabwe engaged with India’s Mahindra, which abandoned a plan in 2018 to set up an assembly plant in Zimbabwe due to forex shortages.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>
</div>

Zimbabwe Has Received 2,000 High-Tech Tractors And Harvesters From Belarus To Boost Agriculture

We encountered some information on Twitter about “flexible and affordable CBZ Diaspora Mortgages” so we got in touch with the bank for more information. 
Here’s the response we got:
<blockquote>
<h2>Housing schemes currently available for sale:-</h2>
<ul>
<li>Nehosho stands/houses – Gweru US$34/m² before vat average size 150m²</li>
<li>Mtausi Park – Gweru US$13/m² before vat average size 2040m² (cash price discounted @ US$11/m²)</li>
<li>Mbizo 21 – Kwekwe US$27/m² before vat average size 320m²</li>
</ul>
Value Added Tax is 14.5%
The bank is also giving mortgage loan to clients who earn in foreign currency. Below are the terms and conditions:-
<ul>
<li>Tenure : 5 years</li>
<li>Interest rate : 12-14% per annum</li>
<li>Administration fees : 1% per annum on reducing balance</li>
<li>Establishment fee : 3% once off</li>
<li>Application fees : USD$100.00</li>
<li>Deposit : 25% of value of property / 10% on Bank projects</li>
</ul>
Maximum tenure for all loans is now at 3 years
</blockquote>
The bank also sent the following PDF which has additional information regarding the mortgages:
<a href="https://zero.pindula.co.zw/wp-content/uploads/2023/02/CBZ-Bank-Mortgage-Finance-Presentation-2023.pdf">CBZ Bank Mortgage Finance Presentation 2023.pdf</a>
CBZ Bank is a subsidiary of the listed financial services group CBZ Holdings. To contact the bank regarding these mortgages, use diasporamortgages@cbz.co.zw
____
A note from Pindula. Are you in the diaspora? Does this sound like a good deal or not? Do you know other diaspora-targeted property or mortgage products that we could share with the Pindula community? Please comment below or send us an email on hello@pindula.com

CBZ Offers Diaspora Mortgages. (PDF Download)

CBZ Bank has launched a local remittance service that enables clients to safely send and receive money within Zimbabwe.
Named CBZ Remit, the service caters not only to existing CBZ clients but also to non-CBZ clients without domiciliary accounts. In a statement, the bank said:
<blockquote>
To access this service, there are no bureaucratic processes to be followed but customers simply need to produce their national ID or passport in order to send or redeem money.
The charge for sending money is 2 per cent of funds being remitted, with a minimum of US$2 and maximum of US$15; these rates are the lowest in the market.
</blockquote>
Over the years, CBZ Bank has partnered with money remittance agents like Western Union, MoneyGram, Mukuru, Express links, Hello Paisa and WorldRemit that CBZ Bank to promote remittance inflow into the country. The bank said:
<blockquote>
Accordingly, the services offered by these International Money Transfer Operators remain in place reiterating the Bank’s recognition of the significant role remittance inflows play in driving economic growth.
</blockquote>
<h4>More: <a href="https://www.herald.co.zw/cbz-bank-launches-local-remittance-service-cbz-remit/">The Herald</a></h4>

CBZ Bank Launches Local Remittance Service, CBZ Remit

CBZ Holdings and ZB Financial Holdings Limited have notified their shareholders of separate potential acquisitions that could have an impact on securities prices.
In a cautionary statement dated 20 June 2022, the financial institution, said negotiations that could have a material impact on its securities prices are ongoing. Part of the statement read:
<blockquote>
ZB Holdings Limited advises its shareholders that one of its company’s shareholders is engaged in negotiations for a potential acquisition of a control block of securities, which if concluded successfully, may have a material effect on the companies’ securities price.
</blockquote>
ZB Financial Holdings Limited Group Company Secretary Tinashe Masiiwa advised shareholders to exercise caution when dealing with the company’s securities until a further announcement is made.
On its part, CBZ said negotiations for a potential acquisition were also ongoing.
In a statement dated 17 June 2022, CBZ Holdings Group Legal Corporate Secretary, Rumbidzai Angeline Jakanani said:
<blockquote>
Shareholders are advised that CBZ Holdings Limited, “the Company”) in negotiations for a potential acquisition which if successfully concluded may have a material effect on the price of the Company’s securities, the full impact of which is currently being determined.
Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.
</blockquote>
<h4>More: <a href="https://www.chronicle.co.zw/cbz-zb-hint-on-potential-merger/">Chronicle</a></h4>

CBZ, ZB Banks Hint On Potential Merger

<blockquote>
<h2>PROPOSED AMALGAMATION OF CBZ BANK LIMITED &amp; CBZ BUILDING SOCIETY</h2>
IT is hereby notified, in terms of section 25(4) of the Banking Act (Chapter 24:20), that CBZ Bank Limited and CBZ Building Society, both incorporated under the laws of Zimbabwe and carrying on banking business, have applied to the Minister of Finance &amp; Economic Development in terms of section 25(2) of the Banking Act, for his approval of the amalgamation of CBZ Bank Limited and CBZ Building Society.
CBZ Bank Limited is registered as a banking institution under the Banking Act while CBZ Building Society is registered as a building society under the Building Societies Act (Chapter 24:02). Both institutions are subsidiaries of CBZ Holdings Limited.
In order to facilitate the amalgamation of the two (2) institutions, CBZ Bank Limited and CBZ Building Society’s assets, liabilities and equity, the two institutions propose to consolidate under one entity, CBZ Bank Limited, in conformity with a Memorandum of Agreement that they have entered into. Subsequent to the merger, CBZ Building Society will cease to exist as an entity.
The Memorandum of Agreement in terms of which the amalgamation is to be effected will be open for inspection by members of the public for a period of 21 days from the date of publication of this notice in the Government Gazette at the following offices:
CBZ Bank Limited 
3rd Floor, Union House 60 
Kwame Nkrumah Avenue 
Harare
This notice was published in the Government Gazette of 28 January 2022.
Any person who has any objection to the proposed amalgamation or intends to make representations or objections in connection therewith is required to lodge the same, in writing, with the Registrar of Banking Institutions, at 80 Samora Machel Avenue P. O. Box 1283, Harare, within twenty-one (21) days of the date of publication of this notice in the Government Gazette.
                                                    Registrar of Banking Institutions
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FKRXN8dXMAAqDtd?format=jpg&amp;name=900x900"/>
</blockquote>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

FULL TEXT: RBZ Statement On The Proposed Amalgamation Of CBZ Bank Limited & CBZ Building Society

Finance and Economic Development Minister Mthuli Ncube has signed the Government of Zimbabwe to be surety on a US$750 000 loan taken by a private business, Luxaflor Roses (Private) Limited from CBZ Bank Limited.
The loan is to finance the procurement of raw materials for the production and export of roses by Luxaflor under the COVID-19 Economic Recovery and Stimulus Package.
In terms of General Notice 854 of 2021 published in the Government Gazette on 30th April 2021, Treasury said:
<blockquote>IT is hereby notified, in terms of section 300(3) of the Constitution of Zimbabwe, as read with section 18(2) of the Public Debt Management Act [Chapter 22:21], that the Minister of Finance and Economic Development hereby issued the following—
(a) Guarantee, binding the Government of Zimbabwe as surety for the repayment of US$750,000,00 (50% of the facility) to Luxaflor Roses (Private) Limited from CBZ Bank Limited to finance the procurement of raw materials for production and export of roses under the COVID-19 Economic Recovery and Stimulus Package;
(b) should there be any outstanding amounts due to Lender at the date of maturity of the Guarantee; the Guarantor undertakes to make full payment of all amounts payable by the Guarantor in terms of this Guarantee upon demand from the Lender within thirty (30) calendar days;
(c) that the total amount of this Guarantee shall be reduced by any payment of the principal, interest and fees by the Lender, or any payment of the principal, interest and fees by the Guarantor;
(d) Guarantee is for the use and benefit of the Lender and the Lender may not without consent of the Guarantor, assign, transfer, mortgage, charge and deal in any matter with or all of its rights and obligations under this Guarantee;
(e) The guarantee shall remain valid and in force until all amounts due under the terms and conditions of the Facility are paid up.</blockquote>
<a href="https://t792ae.c2.acecdn.net/wp-content/uploads/2021/05/Government-Gazette-Extraord-Vol.-54-30.4.2021-final-2pp-New.pdf" rel="noopener" target="_blank">Download the Government Gazette here for more</a>

Govt Guarantees Flower Grower's US$750k CBZ Loan

Finance and Economic Development Minister Mthuli Ncube has signed the Government of Zimbabwe to be surety on a $10 million loan taken by a private business, Mbano Manor Hotel from CBZ.
This means that if Mbano Hotel defaults, taxpayers will have to pay back the loan, thus Zimbabweans will bear the burden of private debts.
In terms of General Notice 370 of 2021 issued on 12 March 2021, Ncube said:
<blockquote>IT is hereby notified, in terms of section 300(3) of the Constitution of Zimbabwe, as read with section 20(1) of the Public Debt Management Act (Chapter 22:21], that the Minister of Finance and Economic Development has issued the following Government Guarantee –
(a) guarantee, binding the Government of Zimbabwe as surety for the repayment of ZWL$10,000,000,00 (50% of the Facility) to Mbano Manor Hotel/Mambano Hotels (Private Limited from the Commercial Bank of Zimbabwe, should there be any outstanding amounts due to Lender at the date of maturity of the guarantee, the guarantor undertakes to make the full payment of all amounts payable by the guarantor in terms of this guarantee upon demand from the Lender within thirty (30) calendar days;
(b) the guarantee shall remain valid until all amounts due under the terms and conditions of the Facility are paid up.</blockquote>
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/EwhPpGvXEAAaGRc?format=jpg&amp;name=large"/>

Zimbabweans To Repay Hotel's CBZ Loans In Case Of Default

CBZ Bank has notified its customers in Gokwe-Nembudziya of its plans to close the Nembudziya branch, located at Mutora Township with effect from the 28th of February 2021.
In a notice dated 6 February 2021, the CBZ Nembudziya Branch Manager, Rumbidzai Mabvudza informed customers that their accounts will be automatically transferred to the Gokwe Branch. She said:
<blockquote>Following a long drawn considered business decision, it is with deep regret that we advise of our intention to close Nembudziya Branch as of 28 February 2021.
Your account(s) currently maintained at this branch will be automatically transferred to our Gokwe Branch.
All services offered at this branch will still be available at our Gokwe Branch as well as through any one of our branches countrywide.
We would like to take this opportunity to thank you for your invaluable support as well as entrusting us for the past years and look forward to continuing serving you.</blockquote>
The closure of the Nembudziya Branch will leave members of the public in the whole of Gokwe North District with no CBZ bank.
This comes as more banks are closing branches countrywide partly in response to the COVID-19 pandemic and to cut operating costs.

CBZ Bank Announces Imminent Closure Of Nembudziya Branch

CBZ has reportedly frozen ZIFA Bulawayo’s official bank account after the signatories to the account changed following the reinstatement of chairman Francis Nhuta, Sunday News reports.
According to a source that spoke to the publication ZIFA did not notify the bank when signatories changed and CBZ froze the account in order to verify who is in charge of the account:
<blockquote>When the officials went to withdraw cash to process salaries for the administrators, they were told the account was frozen as there was a need to verify how the change of signatories was done. Apparently the bank wanted to find out who should be genuinely in charge of the account. Ntuta wrote a letter to the effect that he was the chairman and attached correspondence from Zifa reinstating him but the bank officials needed a confirmation from Zifa head office</blockquote>
When contacted for comment, Xolisani Gwesela refused to comment on the matter and directed all questions to  Ntuta.
The account freeze will see clubs in Matabeleland waiting a little bit longer to receive funds for Covid-19 relief as the body resolves the issue with CBZ since they cannot make any withdrawals at the moment.
More: <a href="https://www.sundaynews.co.zw/zifa-bulawayo-bank-account-frozen/">Sunday News </a>

CBZ Freezes ZIFA Bulawayo's Bank Account

The <a href="https://www.pindula.co.zw/CBZ_Holdings" rel="noopener noreferrer" target="_blank">Commercial Bank of Zimbabwe (CBZ)</a> has announced that it will soon reduce POS charges following concerns raised by its clients.
CBZ released a statement on Monday which reads:
<blockquote>We have heard, we have listened and we have complied.
To our valued clients
We have taken into consideration your concerns regarding POS charges and proud to announce we are in the process of reviewing these downwards.
We will advise as to the new charges as soon as they are effected.
Thank you for your continued support and we value your feedback.</blockquote>
<h4>More: <a href="https://twitter.com/CBZHoldings/status/1226852200644857858?s=20" rel="noopener noreferrer" target="_blank">@CBZHoldings</a></h4>

CBZ Assures Customers That It Will Reduce POS Charges

A guest columnist, John Legat, writing for the Newsday said the Zimbabwe dollar that was introduced on 24 June last year was a disaster for the economy of Zimbabwe.
In his lengthy piece, Legat opined his reasons why he thinks the Zim Dollar is a disaster for the economy:
<blockquote>Funds held in the banking system at RBZ, the interbank market or in cash notes totalled $ 14,8 billion. 
Some $7,4 billion was held in FCA accounts.
The remainder of the assets of the banking sector were held in contingent assets, non-financial assets and other assets. In theory then, the banks could reduce their liquidity to lend more to the private sector or buy more government securities.
Threat of bank failure
The reality is different, however. First, the bulk of bank deposits are demand deposits. This explains the large amount held in the banking system to cover customers’ use of swipe cards and mobile money. Second and more concerning is the level of bank capital and reserves which stood at $3,9 billion or just US$257 million.
This compares with “other liabilities” that have grown rapidly to $4,6 billion (US$300 million), which we have to assume are foreign exchange linked liabilities given their rapid rise since February 2019 when they represented 31% of bank capital.
This is another scary number that we would like to look into in greater detail as it might be highlighting the possibility of a bank or banks failing. Put another way, banks need to maintain very high liquidity levels and restrain from lending medium and long term either to government or the private sector.
We noticed this at the end of last year when a number of the listed companies we speak to highlighted the difficulty of obtaining loans of any meaningful amount from their banks. 
No lending capacity 
Further in our last Notes we made mention of the fact that bank balance sheets were falling rapidly in real terms as compared with their client base as a result of bank assets largely being held in Zimdollar denominated assets, whilst their clients’ revenues and profits could move more in line with inflation. Put simply, banking sector borrowers have become far greater in balance sheet terms than the banks themselves.
This in turn has forced the private sector and government to turn to the pension funds and the insurance sector for liquidity. As we have highlighted above, these two sectors have very little liquidity and it is entirely held in $ denominated assets. The private sector’s needs though are based on the US$ rather than the Zimdollar.
Farmers have no source of funding as liquidity bites 
For example, to plant and grow a hectare of maize is estimated to cost around US$800 for dry land or rain reliant maize which covers mainly diesel, fertiliser, spare parts, among others. All of which are US dollar denominated.
So a crop of one million tonnes, assuming an average yield of say 4,5 tonnes per hectare, would require say US$180 million which, at the interbank rate at the end September, would have equated to $2,7 billion. At the parallel rate of $19 at that time, this number would rise to $3,4 billion and at today’s rate of $24 would imply a need for $4,3 billion.
For large commercial farmers with access to irrigation on the other hand, the cost per hectare would rise to US$1650 per tonne but the yield will rise to maybe 8 tonnes or more per hectare. In reality, Zimbabwe relies on both dry and irrigated land but the amounts involved provide a good illustration that can be compared to the current size of the domestic capital markets.
Anecdotally, we saw this at the end of 2019 as we were approached by a number of agricultural commodity consumers seeking capital to provide farmers for the 2019/2020 planting season, capital that they would normally obtain from the banks. Sadly the pension and insurance industry could not fill those shoes and as such we assume that the number of hectares planted was substantially down on the previous year.
We were very interested to see CBZ Bank last week offering a $500 million bond together with a US$50 million bond in order to raise a total amount of US$80 million at current interbank rates.
Late ‘planting’ 
These funds would be used for the current agricultural season, 2019/2020, specifically to grow maize (170 000 hectares) and soya (30 000 hectares). The offer closed last Friday on January 10. This strikes us as being rather late as we understood planting needed to take place by the end November in time for the rains, which have yet to materialise in any consistent way.
We note, however, in the risk clause within the term-sheet that should farmers not be able to supply the products to the <a href="https://www.pindula.co.zw/Grain_Marketing_Board">Grain Marketing Board</a> for whatever reason, government will step in and supply the necessary amount of Zimdollar to allow for the conversion by the RBZ to cover the US$50 million repayments together with interest at 9,5% in USD terms.
That equates to an unlimited liability in the Zimdollar. The same is true for the local $ bond, with the government guaranteeing the repayment plus an 18% coupon all in $.
There appears to be no risk to CBZ. Given the lateness in the placement of these two bonds from an agricultural perspective and the likelihood of drought, the default risk must surely be high and could therefore prove expensive for government in 270 days’ time which is the maturity date of the two bonds.
That of course assumes that both bonds are subscribed for which given the liquidity numbers we have outlined in these Notes, suggests that this will be a tall order. The Ministry of Finance must be hoping as much!
Starting the printing press 
This brings us back to a point that we made in our last Notes published in October where we surmised that “the RBZ has become the lender of ‘first resort’” given the constraints of the domestic capital markets.
We explained that if government was unable to fund itself through taxation and the issuance of Treasury Bills, then one of the few options would be to print money thereby undermining the currency by boosting reserve money.
This of course happened in August 2019 as we highlighted in our October Notes and resulted in the currency halving on the black market in a matter of weeks. That action by the RBZ has also put at risk the IMF’s Staff Monitored Programme (SMP).
Returning to the domestic capital markets and specifically prescribed assets (‘PAs’), IPEC is encouraging the insurance industry as a whole to move to 15% of assets in PAs. That would require investing an extra 2% or $216m as at September 2019, the equivalent of US$14m at the time.
Pension dilemma 
For the pension fund industry, the IPEC level stated in their quarterly report is 10% (until December 2019) implying a further $230m or US$15m. Although these could be funded out of money market assets, in reality this could not be the case as liquidity is required to pay pensions, insurance claims and run the various businesses.
In the overall scheme of the economy US$29m (at September 2019 rates) does not fund very much even if these sectors coughed up those funds.
IPEC or government could force the insurance/pension sectors to sell down their property and equity assets but in reality that would be very difficult indeed; outside of strategic shareholders local pension and insurance funds are the largest owners of domestic property and equity which implies that foreign investors would be required to purchase these assets from the local institutions. This seems highly unlikely as foreign investors remain net sellers of the Zimbabwe Stock Exchange (ZSE).
Further, as IPEC states in its report, equity and property have proved to be the best performers of local assets even if they haven’t kept pace with the decline in the local currency.
Local debt assets have lost significant value in real terms by contrast. Herein lies the dilemma for pension fund trustees.
On the one hand their fiduciary duty to their stakeholders (employees and pensioners) is to protect the real value of the pension funds under their supervision as best they can.
If they then knowingly buy an asset that will likely lose real value — if not all of it compared to other assets such as property and equity which both have proven to be excellent assets to hold in the event of the demise of the Zimdollar (eg 2009), then they risk being sued for negligence by those stakeholders and maybe their unions. Under the new Company’s Act passed in the latter half of 2019, that would mean being sued in their personal capacity.
On the other hand IPEC may fine the pension fund for not meeting the targets.
For now IPEC is giving trustees the time to attempt to comply with their targets all of which would delay implementation. In a hyperinflationary environment, the longer this implementation takes the better for the stakeholders as value would be preserved to some extent.
Most of the prescribed assets on the market are debt orientated and denominated in $. In the event of the demise in the $ at any point, these assets would cease to exist — and become valueless – as occurred in 2009. We have found few such debt instruments that have a clause that protects investors should such an event occur, by for example an immediate conversion to US$ or into a related equity instrument.
We have seen one such instrument in the making but it is not a prescribed asset. It is even harder to find an equity-related prescribed asset and those that exist may not make economic sense to the investor.
The search for US$ 
As stated in our previous Notes during 2019, we have looked at a number of private equity investments as alternatives to equities and property.
Similar to agriculture though, the difficulty is that all of these projects usually have some need for US$ or the Zimdollar capital requirements are linked to the US$. That implies an unlimited liability for $ investors should the Zimdollar continue to decline.
Take for example, a solar project of which there have been a number approved in recent months. An US$10 million investment either in debt or equity (usually a mix) equates to $170 million at today’s interbank rate or more appropriately $240 million at the black market rate.
That might provide 10 megawatts of power. Since the equipment has to be imported, the solar company may well have US dollar debt on its balance sheet which would need to be funded and eventually repaid.
But Zesa can only pay in Zimdollar even if the tariff paid to the solar company is in some way linked to the US dollar. The risks therefore remain extremely high. As illustrated above, the pension and insurance industry do not have the free funds to invest in such a project. The project may be scaled back into smaller bundles at which point the economics of power generation start to fall away.
A time to sell or buy? 
Meanwhile, as highlighted in our October Notes, the valuations of listed equities in US dollar terms remain extremely low and cheaper arguably as compared with the latter days of the Zimbabwe dollar in 2008. That of course is not surprising; foreign investors have been net sellers of equities over the past twelve months and domestic investors have had little surplus money to buy more.
Valuations of any asset around the World tend to fall when few want to buy whilst they rise to very high levels when investors refuse to sell as prices rise, sometimes to astronomical levels as we have seen on Wall Street in the recent past. The best time to buy an asset is therefore when nobody else wants it, or indeed is able to buy it and that is usually when assets can be bought at a huge discount to their intrinsic or real value.
Equally, the best time to sell is when there are no sellers despite rising valuations.
In this regard we have been asked by a number of our pension fund clients whether now is not a good time to wind up their pension funds as they have lost so much real value since 2016 (US dollar terms). There seems little point they argue in making contributions if they will lose real value, better to spend that money now.
The answer of course is that now is very much not the time to be selling undervalued assets and indeed it is the best time to be buying into such low valuations by continuing to make contributions to their pensions.
Recent history has shown that to be the case when valuations in US$ terms rose exponentially between 2008 and 2013 as the economy recovered. We have no idea when this may occur again but as with 2008, the current economic situation is unsustainable ultimately. Something will have to give.
If what “gives” leads to stability in Zimbabwe’s monetary foundations as occurred in 2009, then the prospects for the domestic pension and insurance industries will be excellent so long as they enter that period with solid or real assets such as the ones they hold today. In other words, valuable stakes in Zimbabwe’s finest companies and secure property assets.
Meaningless numbers 
The International Monetary Fund team was in Harare in early December to continue negotiations with regard the SMP and the Article IV Report, the latter is expected to be published in February 2020. This will give us an idea of how the IMF is thinking and whether indeed the SMP will be extended or cancelled.
With inflation running at 521% per annum (December 2019), the economic numbers that government, the IMF and economists are dealing with are fairly meaningless. This was apparent in the national budget where the numbers both in real and nominal terms bore little resemblance to any prior budgeted figures.
As we write, the rains have been worryingly erratic. Early warnings back in September suggested above or normal rains prior to January with below average for the rest of the season. 
Rains prior to January have been below normal with long periods of no rain and if there is little change to that between now and the end of the rains in April, agriculture will suffer dramatically. Dams are already below 50% whilst the water table has not recovered implying that boreholes will likely struggle through 2020.
This would cause a contraction in the agricultural sector with knock-on effects across the economy. The World Food Programme has already issued an alert to the international community to raise funds for Zimbabwe in the likely event of a severe drought. Even if we receive food aid, the logistics of bringing that food in will be enormous not least in terms of the number of trucks required to ship it in and of course the fuel to drive those trucks.
Low dam levels suggest that electricity from hydro-power plants will remain constrained. Without external assistance, 18 hour power cuts are likely to persist well into 2020 with the consequent strain that this will put on the industrial and farming sectors. With more foreign exchange directed to food imports, the ability to source petrol and diesel will also be tough and hence we expect shortages to continue during 2020. A weaker economy is, therefore, more likely than a stronger one.
2008 rewind? 
The prospects for Zimbabwe in December 2008 looked bleak and uncertain. Industry was devastated after years of neglect and under investment.
The domestic savings industry was in a far worse state than it is now but thanks to the ZSE it was at least invested in non-monetary assets. The banking sector could not lend back then due to the second highest hyperinflation the World had ever seen.
Real disposable incomes had been destroyed with a large part of the population on the poverty line. But then in 2009, something “gave”, and the country dollarised in its entirety providing the economy with a stable monetary foundation from which to grow. It grew rapidly from then on.
We knew back then that the status quo was unstainable and that something would have to “give” but it was hard to predict how it would end. When it did end, asset values grew rapidly in US dollar terms enabling the domestic capital markets to once again provide capital to those that needed it.</blockquote>
Source: <a href="https://www.newsday.co.zw/2020/01/zimdollar-has-been-a-disaster-for-the-economy/">Newsday</a>

OPINION: The Zim Dollar Has Been A Disaster For The Economy

The <a href="https://www.pindula.co.zw/CBZ_Holdings" rel="noopener noreferrer" target="_blank">Commercial Bank of Zimbabwe (CBZ Holdings)</a> will close its <a href="https://www.pindula.co.zw/Joshua_Nkomo" rel="noopener noreferrer" target="_blank">Joshua Mqabuko Nkomo</a> Street branch in Bulawayo on December 31st this year.
The move follows the closure of the Tsholotsho branch recently, as more branches are expected to be shut down.
In a statement on Monday, CBZ said that with effect from January 2020, Bulawayo Fife Street and Bulawayo JMN Nkomo branches, <a href="https://www.pindula.co.zw/Chitungwiza" rel="noopener noreferrer" target="_blank">Chitungwiza</a> Makoni and Chitungwiza Town Centre branches will be merged.
CBZ Holdings has encouraged its customers to use digital platforms such as CBZ Touch Mobile App, CBZ Internet Banking, CBZ Smart Point Point-of-Sale terminals and ATMs.
<h4>More: <a href="https://www.chronicle.co.zw/cbz-trims-branches/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

CBZ Closes More Branches

The Commercial Bank of Zimbabwe has released a statement on pictures of a bin container with bond coins that went viral on social media. Below is the statement in full:
<blockquote>
<h2>                                                 Notice</h2>
STATEMENT ON PICTURES OF BIN CONTAINER WITH BOND COINS CIRCULATING ON SOCIAL MEDIA
In response to social media publications circulating, we would like to advise members of the public that CBZ Bank Limited conducted internal investigations regarding the issue raised.
The results confirm that a withdrawal of $1 and $0.25 bond coins took place at one of our Branches. The withdrawal, by a corporate customer, in the gaming business, was an authorised transaction that fulfilled regulatory requirements.
The funds in the container were a display of a subsequent pay-out to a punter at the aforementioned corporate customers’ premises.
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/EJZJWWQXYAI1zM9?format=jpg&amp;name=medium"/></blockquote>

CBZ Says Coins In Bin Container Were Legitimately Withdrawn By A Corporate

President Emmerson Mnangagwa’s son, Emmerson Mnangagwa Jr, has rejected recent media reports that he borrowed money from CBZ Bank and failed to pay back the money.
Some media publications released names of senior political and business leaders who allegedly borrowed funds amounting to millions of dollars in some cases, from the bank.
CBZ is reported to have roped in lawyers in a bid to recover millions in US dollars that it is owed. Mnangagwa Jr’s name is on the list of defaulters.
However, in a statement on Thursday, Mnangagwa rejected the reports. He said:
<blockquote>In recent days, there has been a systematic attempt, through the media, to link me to certain transactions and conduct, with a clear intent to bear public public judgement on my person.
I would therefore like to make the following facts clear: (a) I do not currently hold, nor have I ever held, an account with the Commercial Bank of Zimbabwe (CBZ) neither have I ever transacted with them, (b) I have no involvement, past or present with a company called Spartan Investments, (c) I fully support the President’s anti-corruption efforts and the work of the Zimbabwe Anti-Corruption Commission (ZACC): I have had absolutely no involvement in any efforts to influence or circumvent its workings.
I take serious note of the timing of allegations, innuendos and attempts to involve my name as not only malicious, but an oblique attack on the President to divert and derail him from his path of fighting corruption and instituting reforms.</blockquote>
More: <a href="https://www.herald.co.zw/emmerson-jnr-distances-self-from-reports/" rel="noopener noreferrer" target="_blank">The Herald</a>

Mnangagwa Jr Denies Reports Of Defaulting On CBZ Loan

A report claims that top ZANU PF officials and opposition leaders allegedly abused office to acquire loans without collateral and owe CBZ bank a cumulative of at least US$160 million accrued between 2010 and 2014.
The Zimbabwe Morning Post claims to have in its possession a copy of the list of names (and amounts owing) of more than 20 high profile politicians to be handed over to the CBZ bank lawyers.
The report further claims that the list will be handed over to CBZ’s legal this week, Biti and Associates.
The legal team will be tasked with starting legal proceedings towards the recovery of the outstanding amounts.
The publication was told by its highly placed source:
<blockquote>The previous management led by former chief executive Never Nyemudzo was not comfortable in giving out names and contacts of the debtors as he (Nyemudzo) cited banker-client confidentiality.
This is because most of these guys are big fish and powerful and the challenge is there was no collateral to back up the loans.
Some of them have fled the country because of their perceived G40 links and recovering that money will be a major hustle.
Biti will be handling the case in a bid to recover the funds.
He is a neutral lawyer who is not conflicted or compromised in this matter since he has no ties whatsoever with the ZANU PF bigwigs on the list.</blockquote>
Below is the list of the bigwigs:
<blockquote>Grace Mugabe $4,5 million
Obert Mpofu $2,5 million
Gideon Gono $2 million
Jocelyn Chiwenga $900k
Andrew Mhlanga $200k
Ignatius Chombo $500k
Douglas Mahiya $75k
Prof Jonathan Moyo $200k
Supa Mandiwanzira $400k
Leo Mugabe $300k
Mandivepi Chimene $100k
Happyton Bonyongwe $800k
Olivia Muchena $200k
Didymus Mutasa $375k
Temba Mliswa $350k
Joseph Chinotimba $100K
Job Sikhala $100k
Edna Madzongwe $650k
Mabel Chinomona  $88k</blockquote>
<h4>More: <a href="https://zimmorningpost.com/zanu-pf-bigwigs-bled-us160-million-cbz-funds-grace-mugabe-obert-mpofu-top-the-list/" rel="noopener noreferrer" target="_blank">Zimbabwe Morning Post</a></h4>

ZANU PF Bigwigs Milked CBZ Bank Of Over US$160 million - Report

In a first for Zimbabwe, the CBZ Financial Holdings group has introduced an insurance product for women. The concept of vehicle insurance targeted at women has been reality globally for decades but Zimbabwe has generally had similar vehicle insurance for all type of customers offer by all the players in the market.
CBZ Insurance product is called Milady. 
Said CBZ in the announcement:
<blockquote>Milady is a very unique motor insurance product  meant not only to celebrate women’s successes but to preserve their hard earned assets too. This product indeed is for all our fashionable ladies out there.
MiLady, is the first ever insurance cover weaved 100% for women in Zimbabwe. It offers the most affordable premium rates and all-encompassing benefits.
There are two great comprehensive/full cover motor insurance packages here, MiLady Motor Premium and MiLady Motor Standard which both come with a whole lot of unique benefits like handbag cover, car seat cover, legal cost cover and medical cost cover.
These benefits are over and above the traditional cover offered under comprehensive motor insurance in the local market.
Under Milady Motor Premium the minimum premium payable per annum is RTGS$300 and the premium rate is 5.5% of vehicle value/sum insured. So for example, if one has a vehicle currently valued at RTGS $15 000, applying a premium rate of 5.5%, the approximate premium payable for a whole year would be RTGS$800 only.
On the other hand, while the minimum premium is the same under Milady Motor Standard, the premium rate is just 5% of the vehicle value/sum insured. This means for the same vehicle as above with a value of RTGS$15 000 for example, the premium under MiLady Motor Standard would be approximately RTGS$700 per annum.</blockquote>
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<h4><a href="https://news.pindula.co.zw/2018/07/12/zimnat-suspends-full-cover-insurance-for-ex-japs-popular-with-pirate-taxi-drivers/">Zimnat Suspends Full Cover Insurance For Imported Cars Popular With Pirate Taxi Drivers</a></h4>
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More: <a href="http://ri.co.zw/2019/03/28/cbz-launches-zims-first-ever-motor-insurance-product-for-women/">RI</a>

CBZ Introduces Car Insurance For Women

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