more Quotes
Connect with us


Reasons for cautious optimism: From Nigerian banks to Zimbabwean mining

The macroeconomic environment across many African territories remains challenging with most countries still grappling with inflation risks on the back of high food and energy prices. These risks are generally compounded by country-specific issues such as muted economic growth, persistent budget deficits, balance of payment concerns, currency weakness and social risks.

By Kamal Govan, a portfolio manager of the Allan Gray Africa Equity Fund

In Nigeria, the promising start made by President Bola Tinubu was just that – a start. While we too are more optimistic, additional measures and policy corrections are needed to completely reverse the embedded unorthodoxy in the Nigerian financial system. By way of example, the initial easing of restrictions on the foreign exchange market over the last quarter only partially reduced the foreign currency repatriation backlog. Investors will remain wary until this backlog is cleared, liquidity returns to the market, and the currency is allowed to float freely.

A weaker naira inevitably results in a higher inflation print, and Nigeria’s recently reported inflation numbers show just that. Conventionally, we would expect this to be associated with monetary tightening, but we are yet to see the response from the Central Bank of Nigeria (CBN). On that note, the recent appointment of Dr Olayemi Cardoso, an ex-Citibank executive, as the new CBN governor is encouraging but, yet again, just a start. From an equities perspective, the currency devaluation has been positive for the banks with net-long US dollar positions. Guaranty Trust Bank, Zenith Bank and Stanbic IBTC Bank fit this bill and reported significantly higher first-half profits on the back of large foreign exchange gains. The CBN has since prevented these gains from being paid out to shareholders, instead directing banks to use them as counter-cyclical buffers. The Nigerian banks in the fund continue to trade on attractive valuations, be that from a price-to-earnings, dividend yield or price-to-book perspective.

In Egypt, tobacco manufacturer Eastern Company has been a significant performer, with a total US dollar return of 35%. In a bid to raise fiscal funding and reduce its role in the economy, the Egyptian government sold a 30% stake in Eastern to a UAE investment firm. The implied transaction price was EGP28.90 per share, which is above the spot share price. Subsequently, the company announced its intention to spin off its real estate assets to investors in a bid to unlock further value. We continue to find the company fundamentally attractive, not least for its track record in growing US dollar profits over time.

Zimbabwean mining company Zimplats has been weak on a relative basis since January (-5% US dollar total return) but has held up significantly better than the South African-listed platinum group metal (PGM) miners (between -56% and -38% total return in US dollars). The PGM industry is being impacted by a combination of a weak PGM basket price (due to the rising threat of electric vehicles), significant input cost pressures and production risks at their South African assets. Zimplats is not immune to these risks, but its position near the bottom of the cost curve adds an element of defensiveness to its prospects. Furthermore, Zimplats’ strong balance sheet, which we consider to be crucial to our investment thesis, will support their multi-year, US$1.8 billion investment programme to replace depleting mines, add mining and processing capacity and build solar projects. Zimplats has an enviable production track record, having organically grown production approximately three-fold since 2009.

We are under no illusions about the macroeconomic and idiosyncratic risks facing such businesses operating throughout Africa. However, we remain cautiously optimistic on the long-term prospects of these opportunities as attractive starting valuations and poor sentiment often provide the cocktail for meaningful future performance.

Source: How We Made It In Africa

Continue Reading
Click to comment

Notice: Undefined variable: user_ID in /home/zimfocusco/public_html/wp-content/themes/zox-news/comments.php on line 49

You must be logged in to post a comment Login

Leave a Reply


Chamisa and Tshabangu emissaries in inter-faction talks

CCC leader Mr Nelson Chamisa co-opted Mr Sengezo Tshabangu into the party’s national executive committee

There have been at least two formal meetings between Nelson Chamisa and Sengezo Tshabangu “parties”, on 15 November 2023 and 16 November 2023, both in Bulawayo.

By Prof. Moyo

The meeting on 15 November was attended by Hon. Kucaca Phulu and Alderman Collect Ndlovu from SengezoTshabangu’s team, identified in the minutes as “The First Party”; while Nelson Chamisa’s team had Hon Prince Dubeko Sibanda and Tinashe Runganga, a legal practitioner, who are described in the minutes as “The Second Party”.

Regarding the crucial question of their respective mandates, “The First Party” said that its mandate was from its Interim Secretary General, Sengezo Tshabangu and the team that he leads; whereas “The Second Party” indicated that its mandate was from “the Leadership of the CCC and the Caucus of Parliament”, and that in any case its mandate was “drawn broadly from the Party”.

The minutes of 15 November indicate that the source of conflict was the candidate selection processes which were said to have involved various “offenses”, among them factionalism, tribalism, nepotism, corruption and bribery; with claims that party members across the country generally feel they were used after CCC indicated that those who had actively recruited voters under the Mugwazo (targeted) campaign would be given safe passage to be the party’s general election candidates, only for the opposite to happen. It is said that, when they returned from Mugwazo and after they used their personal resources, they found new, and often unknown “candidates” in their wards or constituencies who had been imposed on the communities as the CCC candidates for the 2023 harmonised general election.

To make a bad situation worse, it was said that there were widespread instances of the imposition of mayors and council office bearers across the country, and that these actually triggered the current turmoil in CCC, whose major symptom are the recalls of MPs and Councillors.


But, and crucially, while the above is given in the minutes as the mediate cause of the rupture in CCC, the minutes are also clear that the main genesis of the differences and mayhem that have led to the apparent split of CCC into two parties, to a point where now there is “Party One” and “Party Two” as captured in the minutes – was engendered by Nelson Chamisa’s unilateral dissolution of party structures that founded CCC on 22 January 2022 and the wanton disregard of CCC’s founding interim constitution; after the 23/24 August 2023 harmonised general election.

The second formal meeting was on 16 November. This was attended by Hon. Kucaca Phulu and Advocate Nqobizitha Mlilo from Sengezo Tshabangu’s team, “The First Party”; while Nelson Chamisa’s team had Hon Prince Dubeko Sibanda and Tinashe Runganga, “The Second Party”.

Notably, at this meeting, Hon Sibanda tendered apologies for Hon Amos Chibaya and Hon Gift Ostallos Siziva who he said could no longer be in attendance in the meeting as previously confirmed, because Hon Chibaya had been assigned some urgent tasks in Harare; while Hon Siziva had contracted a flu infection.

In the meeting, “The First Party” made it clear that the major issue for it was that CCC should return to the structures of the party as they were immediately after the 2019 Gweru Congress, and that other issues could then be negotiated from that starting premise. As far as “The First Party” – the Tshabangu team – was concerned, it was important and paramount for CCC to return to constitutionalism as at 2019, which was the situation that obtained when CCC was founded on 22 January 2022.

On the other hand, “The Second Party” – the Chamisa team – was adamant that the position of “The First Party” would not be acceptable because everyone “was now in 2023”, and that therefore the situation [of a new recently unveiled post-general election 2023 constitution] should prevail in 2023. While insisting on this posture, “The Second Party” intimated that “maybe there could be a mixture of 2023 and 2019” structures; but still maintained that “a return to 2019 was inconceivable for the Second Party”.

In the result, there was a stalemate which the two parties resolved to refer back to their principals.

Interestingly, two days later on 18 November 2023 – and this is also documented – Hon Agency Gumbo met with Tshabangu’s team at Zonkizizwe Complex, in Bulawayo, and reported that he had been sent with a mandate from Chamisa to make contact to ascertain what the key sticky issues really were, and to request the postponement of the interdict case that is before Justice Tawanda Chitapi, in the Harare High Court, to allow the politicians in both parties to resolve the contentious issues that have engulfed CCC. Gumbo also indicated that Chamisa was particularly troubled by the recall of his key aides, Amos Chibaya and Gift Ostallos Siziva, and that he was very keen to have their recall reversed!

Link to Minutes of Chamisa-Tshabangu Talks [Bulawayo, 15 November 2023] 

Link to Minutes of Chamisa-Tshabangu Talks [Bulawayo, 16 November 2023]

Continue Reading


Neville Mutsvangwa delivers inspiring speech at Founders Awards Gala

IN a powerful address at the prestigious Founders Awards Gala, Neville Mutsvangwa, Chairman of Mumba Money Africa, urged young people across Africa to come together and work towards enhancing intra-Africa trade. The event, held in Lusaka, Zambia, brought together numerous business tycoons, entrepreneurs, and esteemed guests from the African continent.

Mutsvangwa’s speech resonated with attendees as he emphasized the necessity of collaboration and focus among African youth. The Chairman highlighted that for Africa to progress economically and socially, the younger generation must unite their efforts and channel their energies toward developing the continent from within.

“Our continent boasts abundant resources and potential. To harness these opportunities effectively, we need to think and act collectively,” Mutsvangwa passionately stated in his address. “It is crucial for young Africans to recognize the strength in unity and work together towards a common goal of transforming the African narrative.”

Mutsvangwa stressed the significance of intra-Africa trade as a catalyst for economic growth, job creation, and sustainable development. He noted that Africa has long been dependent on external markets for trade, exports, and imports, thereby limiting its ability to fully capitalize on its own potential.

“By strengthening and expanding intra-Africa trade, we can break free from economic dependency and maximize the value and wealth within our borders. This will not only create new opportunities for entrepreneurs and investors but also foster a sense of pride and self-reliance among African nations,” Mutsvangwa emphasized.

The Chairman’s message was met with great enthusiasm and applause from the audience, as it perfectly aligned with the gala’s theme of celebrating excellence and innovation across various sectors in Africa. Mutsvangwa’s call for collaboration resonated with many attendees who recognized the potential impact of intra-Africa trade on boosting economic growth and prosperity.

Following his stirring address, Mutsvangwa was honored with an accolade for his outstanding contributions to promoting economic partnerships and empowering African youth. The award solidified his position as a catalyst for change and a visionary advocate for intra-Africa trade.

As Chairman of Mumba Money Africa, Neville Mutsvangwa has been instrumental in spearheading initiatives that facilitate financial inclusivity and support entrepreneurship across the African continent. His dedication to empowering young people and fostering economic growth has earned him a reputation as a trailblazer in the business and financial sectors.

With his inspiring words at the Founders Awards Gala, Neville Mutsvangwa has ignited a spark of motivation and determination among African youth. By emphasizing the importance of unity and collaboration, he has set the stage for a brighter future, where young Africans join hands to shape the continent’s destiny, unlocking its immense potential for collective prosperity.

Source – Byo24

Continue Reading


Mawaba primary school unveils e-learning classroom block

The Bulawayo City Council (BCC), Thursday, commissioned an e-learning classroom block at Mawaba Primary School in Lobengula West.

The new facility will provide learners with access to information and communication technologies (ICTs).

The classroom block was renovated for US$5,000 through a collaboration between the school and its parents. The classroom is equipped with 45 laptops, which the school won under a merit award from the Ministry of Primary and Secondary Education.

Speaking during the commissioning ceremony held at the school under the theme, “Empowering Learners Through E-Learning,” Ward 14 Councillor Dumisani Netha, who was standing in for Mayor David Coltart, said that the city of Bulawayo strives to be a leading smart and transformative city by 2024. He said that empowering education through e-learning facilities is essential to achieving this vision.

Netha applauded the school and the parents for putting together the resources to convert the classroom into such a magnificent learning facility.

“This is a befitting facility to train our learners in Information Communication Technologies (ICTs) as set out in the smart city concept, national outcomes and requirements provided for by the National Development Strategy (NDS1) and Vision 2030,” said Netha.

“We might pride ourselves on providing our children with such remarkable facilities for e-learning, this is because it is a powerful tool in the modern-day learning experiences as it is a convenient and flexible platform for individuals to acquire skills.”

Netha said that e-learning has great accessibility potential as it offers a wide range of courses and resources. “This accessibility ensures that no one is left behind and learners have an opportunity to enhance their knowledge and skills while being flexible in scheduling and pacing,” he said.

He said that, unlike traditional fixed classrooms with fixed timetables, in e-learning, individuals can balance education with other responsibilities such as home, sports, and family chores. This allows learners to take control of their learning journey, resulting in a personalized learning experience and increased motivation.

“In the face of envisaged high breed learning, we congratulate Mawaba school and credit to all schools with such projects or are in the process of putting up their internet classrooms. The Education Sector Strategic Plan demands that all schools have user-friendly facilities including disability ramps, ECD classroom blocks, and libraries among other facilities,” said Clr Netha.

“I desire to ensure all council schools and others in our beautiful city implement these requirements as we strive for a smart Bulawayo,” he added.

Meanwhile, the Deputy Provincial Education Director for Bulawayo, Sibongile Khumalo, congratulated the school for successfully venturing into e-learning, saying that it is a powerful way to achieve good results.

“Schools are encouraged to embrace online learning as we might appreciate, it comes with several benefits. E-learning is about being able to access education whenever one needs to and from wherever one is. Our competency-based curriculum has embraced ICT and the concept of e-learning is topical,” said Khumalo.

She said that the curriculum has seen the transition of education from being predominantly a face-to-face approach to digital learning platforms where a teacher has merely become a facilitator.

“Through e-learning, learners should be able to take responsibility for their educational progress and access the numerous Ministry endeavours to expose them to as much educational material as possible. These include such platforms as online catch-up strategies, e-learning passport, imfundo endlini, and blended learning, just to mention a few, which are all digital learning programs,” Khumalo said.

She encouraged all schools and their communities to make e-learning a priority in their school development committee budgets.

Source: Cite

Continue Reading


Copyright © 2021 ZimFocus.

One Zimbabwe Classifieds | ZimMarket

Zimbabwe Market Classifieds | ZimMarket

1 Zimbabwe Market Classifieds | ZimMarket

Linking Buyers To Sellers Is Our Business Tradition