BUSINESS TIMES
31 August - 6 September 2023
Companies & Markets
Pressure on Govt to deal with post
election headwinds - PAGE 5
Zim debt clearance
deal in limbo
Industry push for monetary deal
LIVINGSTONE MARUFU
Pressure from business is
mounting on the Reserve Bank
of Zimbabwe to ease its strict
monetary policy following the
elections, which they claim will
increase liquidity and boost
sagging aggregate demand,
Business Times can report.
Prior to harmonised elections
held on August 23, the RBZ
and the Ministry of Finance and
Economic Development, vowed
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REDEFINING BUSINESS
Inside Politics
ANC honcho red flags
Hichilema, Chamisa alliance
— PAGE 29
...polls dispute jeopardizes re-engagement
LIVINGSTONE MARUFU
Z
imbabwe’s re-
engagement campaign
and debt resolution plan
with Bretton Woods
institutions and other
international creditors could be in
jeopardy following elections held last
week that have resulted in political
tensions amid fears of instability,
multiple analysts said yesterday.
President Emmerson Mnangagwa
won last week’s elections ahead of
his closest rival Nelson Chamisa of
the Citizens’ Coalition for Change
(CCC) in the polls that also saw
Zanu PF garnering 136 seats against
the opposition’s 77 in the National
Assembly.
However, Chamisa has refused to
concede defeat while some election
observers, particularly those who
the monetary and fiscal policies address the current liquidity
will remain tighter for long. squeeze to improve on our
Business leaders, however, capacity utilisation and aggregate
said contractionary measures demand,” the Confederation of
were hurting the economy as Zimbabwe Industries president
companies are operating at Kurai Matsheza told Business
reduced capacity. Times this week.
“Now that the elections He said the monetary
are over, we have now turned authorities must strike an
our focus to production and equilibrium when managing
this will (only) happen when liquidity, not too much tightening
liquidity has improved. It is our of liquidity and not putting
hope that the authorities will excessive liquidity in the market.
World Markets
Stock Markets
Index LAST CHANGE % CHG
DJIA 32,579.67 -77.03 -0.24
NASDAQ 11,374.58 -80.97 -0.71
S&P 500 3,948.28 -21.87 -0.55
*RUSS 2K 1,892.15 -4.84 -0.26
ZSE Market Cap Indices - Index Value Change
All Share 29,299.06 +2.63%
Top 10 17,151.32 +0.99%
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Small Cap 631,770.39 +0.09%
Medium Cap 64,025.40 +1.68%
www.businesstimes.co.zw
represented SADC, arguing the
elections fell short of being credible,
free and fair as per international and
regional standards.
The international creditors
imposed a number of stringent
conditions precedent, one of which
was that Zimbabwe hold free and fair
elections.
With arrears of about US$6.68m
Zimbabwe has been working to pay
off its external debt which stands at
US$12.8bn. The conditions were
reached during a recent conference
call between the Mnangagwa’s
administration and its foreign
creditors.
Out of this, Zimbabwe owes the
World Bank about US$1.4bn, African
Development Bank (US$671m),
the European Investment Bank
(US$372m), while the Paris Club and
non -Paris Club are owed US$3.55bn
The calls by Matsheza come
as a number of Zimbabwe Stock
Exchange listed companies are
also advocating for an improved
liquidity during the post-election
period.
Willdale company secretary
Mavuto Munginga said the
operating environment remained
uncertain. He however, is hoping
that liquidity will improve post
election.
“The tight liquidity conditions
Currencies LAST CHANGE % CHG
JPY/USD 0.734 +0 +0.04
USD INDEX 104.48 -0.39 -0.37
USD/JPY 136.14 -0.06 -0.044
GBP/USD 1.202 -0 -0.033
Commodities
LAST CHANGE % CHG
OIL 77.63 +0.58 +0.75
NAT GAS 2.811 +0.064 +2.33
GOLD 1,845.5 +8.8 +0.48
SILVER 21.105 +0.034 +0.16
WHEAT 712 +6.5 +0.92
*COPPER 4.169 +0.079 +1.92
Sports
Why Hermoso, Spain’s bravery
could forever change football
— PAGE 32
and US$2.22bn respectively.
Zimbabwe’s credit rating has been
impacted by the debt, making it an
outcast on global capital markets.
Therefore, paying off the debt is
a mandatory requirement before
obtaining new international funding.
Due to the impasse, the agreement
might not be approved, analysts
argue.
Ibbo Mandaza, a political analyst,
told Business Times yesterday that
Zimbabwe missed a chance to make a
significant diplomatic impact abroad.
“The elections were not only
disputed by SADC but by majority
observer missions which include
Commonwealth and EU resulting in a
flawed process. By these explanations
the elections were not free, fair and
credible,” Mandaza said.
 To Page 2
will heighten competitiveness
in the market. However, it
is expected that the liquidity
situation will improve post
general elections,” Munginga
said.
He said the tight monetary
measures implemented to stabilise
the economy will affect cash flow
generation and operations hence
there is a need to ease liquidity to
keep the economy running.
 To Page 2
Established in 2018
US$2
Briefs
Zim dollar option for Econet
shareholders in Right Offer
Zimbabwe’s largest mobile telecommunications
network operator, Econet Wireless Zimbabwe
Limited has given its shareholders the choice
of paying their subscription to rights offer
in Zimbabwe dollars. It comes after Econet
received Exchange Control Approvals in US
dollars for its rights issue, which aims to raise
US$30.3m to redeem outstanding debentures.
In a notice to shareholders released yesterday,
Econet Wireless Zimbabwe company
secretary,Tatenda Ngowe said: “Members
are hereby advised that the company has now
obtained Exchange Control Approval for the
rights offer to be made in United States Dollars.
However, in terms of the Exchange Control
Approval, members who are designated as
resident in the register of members of the
company as at September 1, 2023 shall have an
option to follow their rights in local currency.”
-Page 4
NSSA plans to revive dead assets
The National Social Security Authority (NSSA),
a deep-pocketed State-owned pay-as-you-go
pension scheme, is planning to turn its dormant
or dead assets nationwide into productive assets, a
move that will help unlock badly needed cash for
pensioners, Business Times can report. NSSA owns
about 111 properties across the country. However,
NSSA will also put three more assets into service
in Harare and Mutare before the year is out. Paul
Mavima, the outgoing Minister of Labor, Public
Service, and Social Services, claimed that a list
of dead assets had been found throughout the
country, including the Beitbridge Hotel and the
Ekusileni Medical Centre in Bulawayo, among
many others. -Page 5
RBZ’s tight monetary policy stance
put squeeze on CAFCA volumes
Listed cable manufacturer CAFCA says the
Reserve Bank of Zimbabwe (RBZ)’s restrictive
monetary policy stance has suppressed its local
trading volumes in the quarter to June 30, 2023.
In a trading update, CAFCA company secretary
Caroline Kangara said local volumes went down
6%. She said conductors sold declined to 659
tonnes in the period under review from 680
tonnes sold in the prior comparative period.
Year-to-date, CAFCA sold 1799 tonnes, down
from 1879 tonnes, sold in 2022. “Local volumes
for the quarter were 6% down on the same
quarter last year with the largest drop being in
the Utilities sector but a marked drop in all the
other sectors towards the end of the quarter due
to the tight Zimbabwe dollar monetary policy,”
Kangara said. -Page 6
US$1.5bn steel project now
70% complete
Construction works on the US$1.5bn steel
plant in Manhize, near Mvuma is now at 70%
complete, which is on schedule to be completed
by November of this year, Business Times can
report. When finished, the steel project, which
is being carried out by Dinson Iron and Steel
Company (DISCO), a division of a Chinese
company Tsingshan Holdings Group Limited,
is expected to be the largest integrated steel
plant in Africa. Production of steel is anticipated
to commence in November of this year. -Page 6
2 Business Times
News
Tax dragnet closes in as govt
targets informal traders
LIVINGSTONE MARUFU
G
overnment is targeting
informal traders across
the country as part of
efforts to expand the
tax net in a desperate
bid to rake in more revenue
required to fund government’s
tottering operations, Business Times
can report.
Zimbabwe’s economy is largely
informal, which causes the
Zimbabwe Revenue Authority
(ZIMRA), the country’s tax
collection agency, to face a number
of issues including unprecedented
high rates of non-compliance, fraud,
lack of cooperation, and failure to
submit returns, among many other
problems.
For the government, which
depends on taxes to fund operations,
these problems are a problem.
The administration is in a
precarious position as a result of
informalization and the rising
dollarization, given that the
government receives no external
budgetary support.
A budget deficit of ZWL$2.3
trillion (1.5% of GDP) is expected in
2024 as a result of the government’s
projected revenue of ZWL$30.7
trillion falling short of its projected
expenditures of ZWL$33.1 trillion.
According to government
Zim debt clearance
deal in limbo
 From Page 1
Mandaza added: “This will
certainly affect Harare’s engagement
and re-engagement drive as it failed
to hold an incredible election which
was a requirement for the arrears
clearance and debt resolution plan
approval.”
The re-engagement and debt
arrears clearance deal is being
championed by the President of
the African Development Bank,
Akinyumwi Adesina, and supported
by the former President of the
Republic of Mozambique, Joachim
Chissano. Eldred Masunungure, a
political scientist at the University of
Zimbabwe stated that the difficulties
related to the Zimbabwean elections
are probably going to have an impact
on the debt resolution strategy as the
Zim’s export projections ambitious
Mthuli Ncube
projections, total revenue collections
will total 19.2% of GDP, with tax
receipts accounting for 95% of that
total and non-tax revenue making up
the remaining 5%.
The development was confirmed
by trusted Treasury sources, who
stated that the fiscal authorities were
looking for additional strategies to
broaden the tax base.
“The government has a programme
that is targeted towards compliance
procedure was part of the important
future discussions.
“The multilateral and bilateral
institutions are still reviewing the
electoral processes and electoral
outcomes on what steps to take in
order to either move forward on
arrears clearance and debt resolution.
“I would think they would want
to digest what this means in terms
of the governance requirements
that are in the framework that they
agreed with Zimbabwe.
“But the EU as the key player
and key actor among other key
stakeholders appear not to be overly
satisfied with the results of the
elections and the processes leading
to the results may complicate
the negotiations going forward,”
Masungure said. However, the
Confederation of Zimbabwe
with reserved sector regulations with
particular attention to foreign owned
shops in the downtown area.
“For those that have not complied
are duly required and requested to
comply with the law,” a Treasury
source told Business Times.
He added: “Definitely this will
increase tax revenue into fiscus while
reducing a lot of illicit transactions
that have also been taking place at
that area.”
The Treasury worries that as the
Retailers president Denford Mutashu
said the elections were free and fair.
“The elections were conducted
in a free and fair manner.This is an
utmost win against neo-colonialism
and imperialism,” Mutashu said.
He added: “The President Elect’s
win is a firm foundation for the
continuation of robust infrastructure
development and economic growth.
The victory symbolises the trust that
the people of Zimbabwe have in
President ED Mnangagwa’s astute
leadership. The business community
endorses the outcome and promises
to continue working with him in
the coming exciting five years.
Zimbabwe has won.”
LIVINGSTONE MARUFU
Zimbabwe is unlikely to meet
its ambitious US$7.12bn export
receipts projections by the year end
largely due to anticipated low global
mineral commodity prices that will
dominate this second half of the
year.
Last year, Zimbabwe made
US$7bn in export revenue.
“There are downside risks to the
current projections, particularly with
regard to decline in international
mineral commodity prices that
could impact the mining sector,
adverse weather conditions, as
well as continued disruptions of
international supply chains that
could constrain global demand
conditions,” outgoing Finance and
Economic Development Minister,
Mthuli Ncube said.
Following his election to a
second term, President Emmerson
Mnangagwa is yet to form a new
government.
However, Ncube, is expected to
be a part of President Mnangagwa’s
new administration.
“Commodity prices are expected
to decline during 2023 in the face
of slowing demand globally,” Ncube
economy becomes more dollarized,
the tax base could decrease by 25%
as the informalized fail to pay their
taxes to ZIMRA.
Mthuli Ncube, the outgoing
minister of finance and economic
development, stated in his mid-
term budget strategy paper that the
government would come up with a
number of ways to increase its tax
base.
“Achieving the target collections is
underpinned by tax administration
Industry push for
monetary deal
 From Page 1
Kurai Matsheza
The country’s biggest seed
producer, Seed Co Limited company
secretary Tineyi Chatiza said the
said.
He claimed that due to expected
sharp declines in the prices of zinc
and tin, metal prices are predicted to
fall by 8.9% and 3.4%, respectively,
in 2023 and 2024.
In contrast, precious mineral
prices are anticipated to maintain
their upward trend and are forecast
to increase by 5.5% in 2023 as
demand for gold as a safe haven rises
amid increased uncertainty regarding
future growth prospects, ongoing
worries about global inflation, as
well as the financial stress seen in the
first quarter.
However, because prices are
anticipated to drop to their pre-
pandemic levels in 2024, there will
be a 7.2% expected taper in the price
of precious mineral commodities.
As a result of the weak performance
of mineral exports, merchandise
exports fell by 8.2% to US$3.19bn
in the first half of this year from
US$3.48bn in the prior comparative
period.
Mineral, which account for the
largest component of merchandise
exports, declined by 12.5%, from
US$2.90bn in the first half of 2022
to US$2.58bn during the period
under review.
initiatives that enhance enforcement
and tax compliance, in particular,
of business processes and adoption
of new technology, among other
initiatives.
“Expansion of the base through
embracing emerging industries,
including those in the informal
sector, as well as capturing the digital
market place where sellers and buyers
of goods and services converge
through e-platforms will ensure that
current state of Zimbabwe’s socio-
economic environment is marked
by the ongoing familiar uncertainty
that often precedes elections with
liquidity challenges in the market
expected to continue as authorities
try to anchor the local currency.
“Tight liquidity management is
however negatively affecting the
availability of productive working
capital for businesses as well as
aggregate demand but we hope
for an improved liquidity going
forward,” he said.
Also, Ariston Holdings chairman
Alexander Jongwe said the liquidity
crunch has worsened the operating
environment.
“ The group continues to hope
for more stable policies [liquidity
management] that will improve
quality of business decisions and
planning,” Jongwe said.
Exports fell after key commodity
prices continued to soften, which
was largely caused by dimming
prospects for global growth.
As a result of the export of tobacco,
the nation’s agricultural exports
increased by 15.9% to US$463.5m
in 2023 from US$399.9m in the
first half of 2022.
Horticultural exports were,
however, muted because of the
lingering effects of higher input costs
for labour, fuel, fertilizer, chemicals,
and packaging as well as higher fuel
prices in 2022.
Manufacturing exports increased
by 7.6%, from US$180.6m in the
first half of 2022 to US$193.84m in
the same period of 2023, primarily
due to rising tobacco cigarette
exports.
According to John Mangudya,
governor of the Reserve Bank of
Zimbabwe, manufactured exports
continue to suffer from low
competitiveness, which is caused
by high production and market
development costs as well as outdated
machinery.
On the other hand, he stated that
increases in the imports of grain,
fuel, machinery, and electricity
are expected to push merchandise
31 August - 6 September 2023
BT
eligible taxpayers contribute towards
national development,” Ncube said.
He claimed that ZIMRA has also
implemented strict measures to stop
money being lost to corruption.
“Furthermore, consistent with
reforms to contain tax expenditures
and minimise leakages, the
government is prioritising review
of concessions and contracts that
undermine revenue collections as
well as adjusting fees, levies and
charges in line with the cost recovery
principle,” Ncube said.
The integration of informal traders
into the economy was welcomed by
retailers.
“We encourage all the businesses
that have not registered to take the
opportunity to begin the process of
registering their firms.
“During the last quarter of this
year, we are going to create a national
Retail and wholesale database which
will enable every business operating
within this space to be formally
registered,” the Confederation of
Zimbabwe Retailers president
Denford Mutashu told Business
Times.
The effort to broaden the tax
base arises from the increased use of
US dollars in the economy, which
increases the risk of the tax base
contracting and the possibility of tax
losses.
He added: “We expect a more
stable socio-economic environment,
soon after the elections, that is more
conducive for business and general
economic activities to thrive.”
Banks are also concerned with
the liquidity squeeze as this has
increased dollarisation. The Bankers
Association of Zimbabwe (BAZ)
Fanwell Mutogo said liquidity
management is essential, but the
challenge is to find a balance to
keep the economy running. He
said the banks understand the
government’s position as regards
the liquidity measures which have
been implemented given what was
happening in the economy, however,
banks believe the current tight
liquidity situation is an unintended
consequence of the measures.
imports to close the year at
US$8.34bn, a 2.6% increase from
US$8.13bn in 2022.
The current account balance is
estimated to have narrowed to a
surplus of US$38.3m in the first
half of 2023, compared to a surplus
of US$397.9 m for the same period
in 2022.
“This followed a more significant
trade deficit, as exports contracted,
while imports increased. The current
account was further weighed down
by services and a primary income
account that also registered the
deficits.
“Remittances and other transfers
(secondary income flows), however,
remained resilient, thereby offsetting
the deficits in the services and
primary income accounts.This,
notwithstanding, the estimated
current account balance is projected
to strengthen in the second half of
the year on account of projected
bullish tobacco, gold and lithium
export performance and resilient
diaspora remittances,” Mangudya
said.
31 August - 6 September 2023 Business Times 3

(Border Timbers Limited, incorporated in Zimbabwe on 28 June 1945 under Company Registration Number 35/1945)

ANNOUNCEMENT OF RESULTS OF EXTRAORDINARY GENERAL

MEETING AND REVISED TRANSACTION DATES AND TIMES

Announcement of the results of voting at the Extraordinary General Meeting of shareholders of Border Timbers Limited (“the Company”)
held at 10:00 hrs on Monday, 28 August 2023 relating to and seeking approvals for the terms and conditions of an offer to the Border
Timbers Limited shareholders for the acquisition of the entire issued ordinary shares of Border Timbers Limited by Cicada Plantations
Zimbabwe (Private) Limited, and resultant revised indicative dates and times.

Shareholders are advised that all resolutions put to the vote at the Extraordinary General Meeting of Shareholders of Border Timbers
Limited held on Monday, 28 August 2023 were passed as tabulated below:

ORDINARY RESOLUTIONS RESULT

1 ORDINARY RESOLUTION 1 – APPROVAL OF THE TERMS OF THE OFFER PASSED

To approve the terms and conditions of the proposed Offer made by Cicada Plantations Zimbabwe (Private)
Limited to the Border Timbers Limited shareholders to acquire up to 100% of the issued share capital of Border
Timbers Limited by means of a share swap at a swap ratio of 1 new Cicada Plantations Zimbabwe (Private)
Limited ordinary share for every 1.1079 Border Timbers Limited ordinary shares held, resulting in the issuance
of 38,758,568 new CPZ shares being issued to the shareholders of Border Timbers Limited, with the result
that Border Timbers Limited shareholders who accept the offer will become shareholders in Cicada Plantations
Zimbabwe (Private) Limited and Border Timbers Limited may become a subsidiary of Cicada Plantations
Zimbabwe (Private) Limited, and otherwise for the implementation of the Proposed Transaction described in the
Circular to shareholders.
2 ORDINARY RESOLUTION 2 – DIRECTORS AUTHORISED TO GIVE EFFECT TO THE RESOLUTIONS PASSED

To authorise the directors to do any and all such things as may be necessary to give effect to the above resolutions.

REVISED IMPORTANT DATES AND TIMES

Shareholders are advised that the important dates and times disclosed in the Circular to shareholders have been revised as shown below:

Important Dates
Border Timbers Limited EGM (at 1000 hours) Monday, 28 August 2023
Publication of Border Timbers Limited EGM resolution results Wednesday, 30 August 2023
Primary Offer opens at 0900 Monday, 4 September 2023
Primary Offer closes at 1600 Monday, 25 September 2023
Primary Offer Results released Wednesday, 27 September 2023
Termination of Border Timbers Limited ZSE listing Friday, 3 November 2023

BY ORDER OF THE BOARD

Border Timbers Limited

4-12 Paisley Road
Southerton
Harare, Zimbabwe

28 August 2023
4 Business Times 31 August - 6 September 2023

Editorial BT
BT Editorial comment Dilbert cartoon

Violence, NEWS ON THE GO

instability must First Capital Bank seeks

be avoided at additional offshore credit lines LIVINGSTONE MARUFU

all costs
Operating expenses increased by

F
22% from US$16.6m in the first
irst Capital Bank, a half of 2022 to US$20.3m in the
publicly traded provider period under review.

T
of financial services, is This resulted in the cost to income
ensions have risen since the results of the harmonised elections looking for more offshore ratio moving from 58% in June
in which President Emmerson Mnangagwa triumphed over his credit lines to protect 2022 to 63% in June 2023.
closest rival Nelson Chamisa who fronts the Citizens Coalition itself from economic downturns The adjusted total comprehensive
for Change (CCC). and support the expansion of the income for the period, amounted to
Chamisa has refused to concede defeat, true to his pre- productive sector. US$8.2m for the six months to June
election declaration that he will not accept any results outside that which As part of its plan to survive the 2023, 43% lower than the US$14.4m
declares him as the victor. inflationary environment, the lender total comprehensive income reported
Mnangagwa received 2 350 111 votes overall, winning 52.6% of the vote obtained more than US$90m in for the corresponding period in
and Chamisa received 1 967 343 votes, or 44% of the vote. credit lines from the European 2022.
Some election observers have criticized the results for lacking credibility Investment Bank and Afreximbank The bank’s capital adequacy ratio
and failing to follow national, regional, and international standards for last year. Now, the financial remained strong, closing the period
holding free, fair, and credible elections. institution is looking for additional at 37% well above the regulatory
Dr Nevers Mumba, appointed by Zambian President Hakainde Hichilema credit lines. minimum of 12%. With a liquid
has triggered the tension and has been talk of the polls adding to tensions. Financing the productive sectors assets ratio of 49%, the bank
A possibilities of violence is looming as the opposition is calling for of the economy continues to be a carried a comfortable buffer above
demonstrations that the police however, says is ready to quash if it is to major area of focus for First Capital key to the economy,” Kapanje said. our capacity to offer top-notch the regulatory minimum of 30%
happen. Bank, according to CFO Fanuel The bank reported an adjusted banking solutions that will support representing capacity to underwrite
President Mnangagwa has set the ball rolling in calling for peace and at Kapanje (pictured). profit of US$9.05m, which was sustainable economic growth. Our more business.
this stage, Chamisa should join in. “Our strategic partnerships and supported by income growth of well-designed framework for service Shareholder returns were attained
“My dear Zimbabweans, fellow country men and women in this post- mutually beneficial relationships with US$32.1m over the six months delivery is intended to offer solutions seeing them declare an interim
election period let us remain vigilant and jealously guard the prevailing other global financial institutions to June 30 2023. This growth was that are both market-relevant and dividend of US$0.14cents per share.
peaceful and tranquil environment in our motherland. That which unites us have secured a steady stream of fuelled by an improvement in the distinctively convenient, efficient, First Capital Bank was the first
is much greater than that which could divide us. foreign lines of credit that have underlying business, specifically an and more secure. bank to list on the Victoria Falls
“There is much work to be done together as one united , we shall continue nurtured the growth of our client’s increase in customer base, growth in To control their overall cost base, Stock Exchange in May this year.
on the growth trajectory witnessed over the past five years with no one and business in the current environment. loan book, and exchange gains. First Capital continues to actively This was part of the bank’s efforts
no place behind,” Mnangagwa said. We will continue to structure similar Ciaran McSharry, managing pursue cost-optimization strategies. to unlock value for shareholders
Gift “Ostallos” Siziba, a CCC deputy spokesperson, however, asserted transactions to create a solid reservoir director of First Capital, stated: During the period under review whilst providing great opportunities
that the party was using every legal tool at its disposal to have the results for drawdowns and leverage on “Our clients and customers are net interest income and net fees and for investors.
overturned, inflaming tensions after the election. opportunities that will contribute to central to everything we do. They commissions increased by 35% and
The ZANU-PF, on the other hand, rejected assertions that the elections key developmental projects that are inspire us, and we are inspired by 23% respectively.
were not free and fair.

Zim dollar option for Econet

The reality is that violence will inevitably rear its ugly head.
At all costs, we should avoid electoral or political violence, which is a
general term for violence committed by either individuals or groups to
further political objectives.

shareholders in Right Offer

They consequently think that using violence to further their political goals
is not only acceptable but also essential.
Therefore, we reiterate that using violence to address issues is not a solution,
as incidents of election-related violence have the potential to be catastrophic.
Experience has taught us that violence can be avoided.
Our recommendation is that political elites never approach elections with BUSINESS REPORTER States Dollars. However, in terms 10% margin, a subscribing member to be secured with effect from the
a garrison mentality or a win-it-all-costs mentality because neither of these of the Exchange Control Approval, shall be issued and allotted each date the company is allocated foreign
mindsets ever results in a successful democracy. Zimbabwe’s largest mobile members who are designated as share to which the deposit relates as currency on the interbank market.
There shouldn’t be any electoral rougies despite errors by the electoral telecommunications network resident in the register of members not fully paid and subject to a capital The interest shall be deemed
commission, ZEC, as this could further isolate Zimbabwe. operator, Econet Wireless Zimbabwe of the company as at September 1, call and to the company’s lien over to be part of the balance of the
Political violence must be avoided at all costs. Limited has given its shareholders the 2023 shall have an option to follow shares issued but not fully paid for in subscription price and shall be part
choice of paying their subscription their rights in local currency.” terms of the articles.” of the capital call.
to rights offer in Zimbabwe dollars. She added: “The final Zimbabwe She said the capital call on the “In the event of an exchange rate

TODAY
IN FINANCIAL HISTORY
In 1928, a new service
connecting Chicago and the twin
cities of St Paul and Minneapolis
began on September 1 with an
integrated rail and Air service from
Northwest Airways connecting
with express trains to the cities,
the new service cut 8 hrs off the
changes in Climate is influenced
by pollution.
In 1998, Dow Jones index
dropped 512 points in a single day,
finishing at 7539.
In 2005, US authorities released
It comes after Econet received
Exchange Control Approvals in US
dollars for its rights issue, which
aims to raise US$30.3m to redeem
outstanding debentures.
In a notice to shareholders released
yesterday, Econet Wireless Zimbabwe
company secretary,Tatenda Ngowe
said:
“Members are hereby advised
that the company has now obtained
Exchange Control Approval for the
rights offer to be made in United
dollars price for the shares shall
be determined on the date that
the company is allocated foreign
currency on the interbank market
for the purpose of redeeming the
debentures in accordance with
the Exchange Control laws of the
country.
“Upon payment of a deposit in
respect of each share, calculated by
multiplying the United States dollar
subscription price for each share by
the prevailing interbank rate, plus a
balance shall be made when the
foreign currency has been secured
and allocated to the company, and
the applicable exchange rate shall be
the prevailing interbank rate plus a
margin of 10%.
In the event of an exchange
rate depreciation, interest shall be
payable on the ZWL$ balance of
the subscription price calculated at
the average rate at which Steward
Bank Limited and Stanbic Bank
Zimbabwe Limited would be lending
appreciation, the shareholder will
be refunded with the remaining
Zimbabwe dollars without accruing
any interest, after allocation of the
foreign currency. The attention of
members is drawn to the provisions
of the articles relating to the issue
and allotment of unpaid or not
fully paid shares, the company’s lien
on such shares and the provisions
relating to capital calls and the
forfeiture of shares in the event of
nonpayment,”Ngowe said.

Invest in smart city concepts: Sharpe

current travel time saving a whole
day of travelling.
In 1934, the value of the pound
sterling dropped below the $5.00
mark for the first time since
devaluation.
In 1978, 400 of the world’s
top climatologists met in Geneva
to discuss climate change and if
additional oil from the country’s
emergency stocks to provide some
relief from the damage Hurricane
Katrina did to oil rigs and oil
platforms based in the Gulf of
Mexico. VIMBAI TANDI in smart city concepts powered by At least 1000 apartment units
technology. We can work together to are planned for Millennium
In 2007, Australia and India Property developer and WestProp make this dream a reality.” Heights over a 10 year period. Each
agreed to study the possibility of a Holdings Chief Executive Officer Construction of the picturesque apartment brings with it unique
free trade agreement. Ken Sharpe has challenged developers entrance gatehouse to Millennium features that differentiate it with the
to adopt smart city concepts and Heights apartments has begun and is rest to avoid monotony and to bring
follow the company lead to build expected to be launched at the end of diversity in architectural designs.

DIARY OF EVENTS
vertically and accommodate more
families on small pieces of land.
He was speaking as his company
will soon officially open its signature
September 20 2023 mark Millennium Heights entrance
Seed Co Limited will host 28th Annual General Meeting at 14:00 gate ahead of the beginning of huge
hours at SAZ Office Park, No.1 Northend Close, Northridge Park, construction of…
Borrowdale, Harare. “I urge other developers to follow
our lead by building more vertically
11-14 October and in the process accommodate
CEO Roundtable Africa, will be held at Elephant Hills, Victoria Falls more families on smaller pieces of
land,” Sharpe said.
“We have to look at investment
January next year.
He said all the company’s
developments should have a
signature mark that affirms the
company’s vision of bringing Dubai
style developments to Zimbabwe.
Pomona gatehouse where dozens
of beneficiaries attended.
Two blocks of apartments already
have occupation at Millennium
Heights where builders are presently
working on block 3 which has four
floors and 112 units.
The blocks of apartments adorn
the Millennium Park, one of the
company’s largest mixed use lifestyle
estates that includes Millennium
Heights, Pokugara Residential
Estate, the Mall of Zimbabwe and
several office parks combining the
live, work, play and shop concept in
one area.
WestProp Holdings Chief Executive
Officer Ken Sharpe

BT
BUSINESS TIMES
Business Times is published by: AB Communications, 6 Williams Way, Msasa, Harare Tel: 0242- 446990-6 www.businesstimes.co.zw Editor-in-Chief : Moses Matenga Acting Editor: Phillimon Mhlanga Managing Editor: Livingstone Marufu, Copy Editor: Godwell Gwavava
Sub-Editor: Sowell Chikwari Sales Executives: Vusi - vusi@businesstimes.co.zw, Merrylin - merrylin@abcommunications.co.zw, sales@zifmstereo.co.zw Production: Stephen Musoro General Manager: Albert Mushonga - amushonga@businesstimes.co.zw Feedback: letters@businesstimes.co.zw
Companies&Markets
31 August - 6 September 2023 5

BUSINESS TIMES

Makomo Resources resumes Tobacco exports earn US$564.07m

operations, eyes export market - PAGE 6
- PAGE 6

Pressure on Govt to deal with

post election headwinds
LIVINGSTONE MARUFU commercial operation, Zimbabwe’s of the government as it engenders eliminate arbitrage opportunities

P
resident Emmerson
Mnangagwa’s new
administration will be
under intense pressure to
come up with strategies
to deal with a myriad of risks
the economy is facing including
foreign currency headwinds amid
grave concerns fresh price hikes
and exchange rate volatility in the
post-election period may stunt the
projected 5.3% economic growth.
President Mnangagwa has not yet
announced the members of his new
administration after being elected to
a second term last week.
The initial forecast for Zimbabwe’s
economic growth rate for this year
was 3.8%, but it has now been
revised to 5.3% in light of the
country’s robust performance in the
mining and agricultural sectors as
well as the country’s lessened power
shortages.
After units 7 and 8 of the Hwange
Power Station were recently put into
power situation significantly
improved. The units are currently
supplying the national grid with 600
megawatts.
But, Mthuli Ncube, the outgoing
minister for finance and economic
development who is expected
to make a comeback in the new
Cabinet, has cautioned that the
prospects for economic growth
could be jeopardised by a potential
resurgence of exchange rate and price
volatility.
In the first half of this year, price
and exchange volatility battered
many companies’ balance sheets and
budgets, putting many businesses on
the brink due to exchange losses.
“In spite of the positive economic
outlook, the economy still faces
some risks, mainly arising from
price and exchange rate volatility,
which complicates policy choices
between stability and growth.
Containing exchange rate volatility
and domestic inflation pressures
remains an overriding objective
market confidence, investment and
competitiveness of the economy,”
Ncube said.
Kurai Matsheza, president of
the Confederation of Zimbabwe
Industries, told Business Times that
the government should balance
liquidity to promote economic
growth.
“The authorities should balance
fiscal and monetary policy stances
to enable economic growth as too
much liquidity squeeze could affect
aggregate demand and excess
liquidity could trigger inflation,”
Matsheza said.
The local currency experienced
a sharp decline from ZWL$671.44
per US$1 on January 3 2023 to
ZWL$6926.58 per US$1 in June of
this year, sparking a public outcry for
its elimination.
In order to control the situation,
the government implemented harsh
measures.
According to Ncube, foreign
exchange stability and convergence
and other economic distortions,
lessen uncertainty, and facilitate
businesses’ ability to plan and budget
for future transactions.
He said the tight fiscal and
monetary stance being implemented
by the government was to avoid full
dollarisation of the economy, which
Ncube said was detrimental to
domestic industry competitiveness in
international and domestic markets.
According to Ncube, the tight
fiscal and monetary conditions will
be maintained going forward, as the
government seeks to stabilise the
macro-economic environment and
improve market confidence.
Mthuli Ncube

NSSA plans to
revive dead assets
LIVINGSTONE MARUFU
The National Social Security
Authority (NSSA), a deep-
pocketed State-owned pay-
as-you-go pension scheme, is
planning to turn its dormant
or dead assets nationwide into
productive assets, a move that
will help unlock badly needed
cash for pensioners, Business
Times can report.
NSSA owns about 111
properties across the country.
However, NSSA will also put
three more assets into service in
Harare and Mutare before the
year is out.
Paul Mavima, the outgoing
Minister of Labor, Public
Service, and Social Services,
claimed that a list of dead assets
had been found throughout
the country, including the
Beitbridge Hotel and the
Ekusileni Medical Centre in
Bulawayo, among many others.
President Mnangagwa has
not yet announced the members
of his new administration after
being elected to a second term
last week.
However, it is anticipated
that Mavima will be appointed
into the new administration.
The development follows
NSSA’s recent restoration of
St. Tropez in Harare’s Eastlea
neighborhood.
Mavima claimed the
Authority developed a Borrowdale Brook Township,
refocused strategy as a result
of criticism for adopting a
laissez-faire attitude toward the
management of its property
portfolio, which cost NSSA
millions of dollars in shoddy
deals.
“We should turn our current
dead assets into productive assets
for the benefit of the pensioner.
I believe this asset from now on
will be sweated for the benefit
of the pension. The renovation
of the St Tropez apartments is
a perfect piece of the Authority
concerted effort to provide
decent accomodation facilities
to the urban population.
“It’s a concerted effort for the
authority to sweat its assets for
the benefit of the pensioners.
It is a pleasure St Tropez asset
which has lied idle for seven
years to be soon seen productive
again for the benefit of NSSA
and pensioners,” Mavima said.
“It is also a strategy we have
for NSSA which will see the
transformation of a dead asset
into cash cows. As a matter of
fact there are quite a number of
these idle assets for NSSA.
“We are pushing for the
NSSA Beitbridge Hotel,
Ekusileni Medical Centre in
Bulawayo and some of the
land in upmarket places to get
some returns out of it and there
are so many in Victoria Falls
and everywhere around the
country,” he said.
Mavima stated that
preparations for the
operationalization of Ekusileni
Medical Center following the
Covid-19 pandemic were well
under way. To this end, NSSA
invested US$50m in 2021 to
help equip the building, which
is currently designated as a
Covid-19 treatment center.
He said after the pandemic,
Ekusileni will be converted into
a training centre for medical
specialists, in collaboration
with the National University of
Science and Technology.
“NSSA is working on
developing a multi-functional
conference centre at Stand 71
better known as Borrowdale
Country Manor. This is being
done to derive value from the
property.
“These are some of the ills that
the new NSSA seeks to correct
because we have a fiduciary
responsibility to safeguard the
funds we manage on behalf
of members and beneficiaries
who include pensioners, the
disabled, widows and orphans,”
he said.
NSSA is working on
establishing an upmarket
cluster housing scheme on
Stand 14 of Lot C Borrowdale
Estate (49 Borrowdale Road),
measuring just over 15ha which
has an estimated current market
value of US$2,4m.
Mavima said technocrats
in NSSA should stand up and
see the value in these properties
and make them useful for the
benefit of the pensioners.
“It is my fervent hope
that NSSA’s commitment in
improving infrastructure in the
with Mona-Lisa Dube
entire country will contribute
significantly towards the
attainment of the national goals
that we have.We would like
a kind of hotel arrangement
which gives huge returns,”
Mavima said.
He said the attainment of
Vision 2030 centres around
the deliverance of decent
accommodation which
meets the aspirations of the
Zimbabweans.
“The sweating of the property
Thursdays
portfolio will provide inflation
proof and capital assstes to
the fund.In the past few years
@1930hrs
NSSA has embarked on an
investment strategy to monetise
land banks and resolve some of
its non performing investments
to boost investment income
of returns for the benefit of
pensioners.
“735 Glaudina stands,
49 Borrowdale stands were
already developed and are being
monetised. NSSA is also doing
a partnership on Liberation
City shopping mall where
the service station is already
working,” Mavima said.
The Authority is embracing
its huge responsibility of
creating viable investments
guided by the fundamental
role of the pension fund to pay
living pensions to its members.
7 Kenilworth Road
P.O. Box HG993, Highlands, Harare
tel. +263 242 746688 / 746864 / 08677004701
fax. +263 242 776124
zifmstereo @zifmstereo
www.zifmstereo.co.zw
Paul Mavima
6 Business Times 31 August - 6 September 2023

Companies & Markets BT

Makomo Resources resumes

operations, eyes export market
BUSINESS REPORTER foreign customers.

T
wo years after
being placed under
receivership, struggling
coal miner Makomo
Resources has resumed
operations and is now eager to
supply the export market,Business
Times can report.
Bulisa Mbano of Grant Thornton
Zimbabwe Chartered Accountants is
the lead administrator of Makomo
Resources.
Prior to 2021, when Makomo
was placed under receivership—a
form of bankruptcy protection—
due to operational and financial
difficulties, the resources company
was Zimbabwe’s largest coal miner.
The rehabilitation of a struggling
business is made easier by
receivership.
Zimbabwe’s coal producers had
been crippled by a lopsided pricing
structure and a shortage of foreign
currency, among many other
problems.
Hwange Colliery Company
Limited (HCCL) is another coal
miner that has been placed under
receivership. Dale Sibanda of
Grindale Engineering is in charge
of running the affairs of HCCL,
with assistance from Mutsa Jean
Remba, the managing partner of
Dube, Manikai, and Hwacha, and
Munashe Shava, the COO of Great
Dyke Investments.
The director of Makomo
Resources, Raymond Mutokonyi,
told Business Times this week that the
coal miner had resumed operations
last month and had signed a contract
with the Zimbabwe Power Company
(ZPC), a power generation unit
of ZESA Holdings, to supply coal
to the country ‘s largest coal-fired
power plant, Hwange Power Station,
whose Units 7 and 8 were just
recently connected to the national
grid. A total of 600 megawatts are
being added to the national grid by
the two units.
According to Mutokonyi, the
production model at Makomo is
now based on demand.
“We reorganised ourselves and
resumed operations a month ago,”
Mutokonyi said.
He said that while the company
was focused on serving the market, it
was also eager to expand supplies to
According to Makomo Resources,
the ongoing corporate rescue plan
has been successful in bringing the
miner back to life.
The company’s lead corporate
rescue practitioner, Mbano, recently
released a statement in which he
claimed that the ongoing corporate
rescue proceedings had made
significant progress toward ensuring
the sustainability of the business
operations into the future.
Makomo, which is located
southeast of Hwange town and has
been in operation for more than
ten years, along with HCCL and
quickly became one of Zimbabwe’s
top coal producers.
Additionally, the company has a
sizable local workforce and has made
significant contributions to local
development through a number
of corporate social responsibility
initiatives, such as providing access
to water, constructing schools, and
helping the most vulnerable members
of society with basic necessities.

Tobacco exports RBZ’s tight monetary policy stance

put squeeze on CAFCA volumes
earn US$564.07m
LIVINGSTONE MARUFU industry, which is losing a huge
BUSINESS REPORTER

Listed cable manufacturer CAFCA

Zimbabwe has earned about
US$564.07m from tobacco exports
in the first eight months of this year,
reflecting a 24.35% increase from
US$453.6m made in the prior
comparative period.
Tobacco deliveries this week
increased by 43.21% to 295.67m
kilogrammes (kg) from 206.466m
kg delivered during the same period
last year.
“The country has exported
111.21m kilogrammes to more than
40 countries earning US$564.07m
as of August 28, 2023 while
98.979m kg were exported with
a value of US$453.6m during the
same period in 2022. This year
tobacco is being exported at an
average price of US$5.07/kg from
US$4.60/kg,” reads part of the
Tobacco Industry and Marketing
Board (TIMB) report released this
week.
Today, TIMB will wrap up the
mop-up sales, and the output is
expected to go beyond 296m kg.
The government anticipates
tobacco export revenue to reach
US$1.6bn, up from US$991m
earned last year as a result of the
record production of golden leaf.
The increase in output, according
to TIMB board chairman Patrick
Devenish (pictured), can be
attributed to small-scale growers’
high levels of tobacco-growing
expertise and favorable rainfall
patterns.
After the land reform program,
many communal farmers entered
the lucrative farming sector, making
Zimbabwe the largest producer of
flue-cured tobacco in Africa and the
fifth-ranked country in the world.
This year 148,527 farmers grew
tobacco, up from 122,841 last year,
according to TIMB figures.
The board reported that the area
increased from 110,155 to 117,
928 hectares. Experts claim that
droughts and the effects of climate
change have forced buyers to make
firm offers on the nation’s tobacco
that is flue-cured.
Zimbabwe, however, continues
to face significant difficulties as
there are worries that the tobacco
chunk of profits to offshore lenders,
is causing the nation to lose a
significant portion of its value.
The government is worried that
the nation is losing value because
98% of the tobacco is exported in
a semi-processed state, which means
that the nation is exporting both
value and jobs.
The Reserve Bank of Zimbabwe
has removed limitations on the use
of locally sourced funds to help the
nation’s tobacco production this
year.
“In terms of Section 4 of the
Exchange Control [Tobacco
Finance] Order, Statutory
Instrument 61 of 2004, tobacco
merchants are required to source
offshore financing to produce and
buy back green leaf tobacco.
“Tobacco merchants who fail
to secure offshore financing are
required to apply to the bank (RBZ)
for authority to raise funds on the
local market. Considering this
development, the Exchange Control
[Tobacco Finance] Order,Statutory
Instrument 61 of 2004 shall be
amended to take account of this
change,” RBZ governor John
Mangudya said in his mid-term
Monetary Policy Statement.
says the Reserve Bank of Zimbabwe
(RBZ)’s restrictive monetary policy
stance has suppressed its local
trading volumes in the quarter to
June 30, 2023.
In a trading update, CAFCA
company secretary Caroline Kangara
said local volumes went down 6% .
She said conductors sold declined
to 659 tonnes in the period under
review from 680 tonnes sold in the
prior comparative period.
Year-to-date, CAFCA sold 1799
tonnes, down from 1879 tonnes,
sold in 2022.
“Local volumes for the quarter
in the market, a shift in our United it has a good quarter.
were 6% down on the same quarter
States dollar sales to 85% of turnover The turnover in the period
last year with the largest drop being
thus ensuring adequate foreign under review,however, increased to
in the Utilities sector but a marked
currency for our import needs,” ZWL$37.4bn from ZWL$3.3bn .
drop in all the other sectors towards
company secretary Caroline Kangara Kangara said export volumes were
the end of the quarter due to the
said in a statement accompanying 106 tonnes in the current quarter
tight Zimbabwe dollar monetary
the company’s third quarter trading versus the same quarter last year of
policy,” Kangara said.
update ended June 30, 2023. 91 tonnes.
Owing to tight liquidity
The company lost some The customers in Malawi
challenges, Kangara said CAFCA
production days in April due to continue to experience difficulty
sold the majority of its goods
stockouts of copper cathode, while in obtaining foreign currency so
in United States dollars in the
the non-availability of foreign stock replacement there is slow with
period under review, a move which
currency in the economy was a major Mozambique, Rwanda and Tanzania
negatively impacted the volumes due
concern to the company. sales being in line with forecast.
to reduced aggregate demand.
She said the last quarter of the CAFCA manufactures and
The shift to United States dollar
financial year outlook was mixed supplies cables for transmission
sales comes after the authorities have
with the tight monetary policy and distribution of energy and
tightened liquidity in the market to
impacting negatively on volumes information; it has its primary listing
arrest inflation and local currency
whilst the large project orders the on the Zimbabwe Stock Exchange
depreciation.
company has in the mining sector and its secondary listing on the
“We have seen, with the
were improving volumes to ensure Johannesburg Stock Exchange.
Zimbabwe dollar tightly controlled

US$1.5bn steel project now 70% complete

Set to be complete in November
BUSINESS REPORTER
Construction works on the
US$1.5bn steel plant in Manhize,
near Mvuma is now at 70%
complete, which is on schedule to be
completed by November of this year,
Business Times can report.
When finished, the steel project,
which is being carried out by Dinson
Iron and Steel Company (DISCO),
a division of a Chinese company
Tsingshan Holdings Group Limited,
is expected to be the largest integrated
steel plant in Africa. Production of
steel is anticipated to commence in
November of this year.
When it begins production,
DISCO intends to produce 600
000 tonnes of carbon steel. This
amount will rise as the first phase of
production ramps up to 1.2m tonnes
of steel annually, and it will rise to
5m tonnes when it is operating at
full capacity.
According to estimates, the
Manhize steel project is expected to
cut Zimbabwe’s imports of steel by
90% through local steel production.
While 1 700 jobs have been
created as a result of the ongoing
construction, DISCO anticipates
that 10,000 new jobs will be created
once Manhize operations begin.
According to DISCO, it has
already received orders for more
than 250 000 tonnes of steel from
the domestic market.
When the project is finished,
Zimbabwe’s need to import steel will
be greatly reduced.
The domestic demand for steel
stands at 1.5m tonnes.
“The reality of import substitution
is coming to Zimbabwe as we have
received local orders of 250 000
tonnes, ahead of commencement
of production in November. Some
To cut imports by 90%
products we will produce include pig
iron, steel billets and carbon steel,”
Dinson said.
The collapse of ZISCO, formerly
the largest steel manufacturing plant
north of Limpopo, in 2008 severely
battered Zimbabwe’s iron and steel
engineering sector, which DISCO
will help to revive.
Since ZISCO’s closure, Zimbabwe
has been importing steel products
from the SADC, primarily South
Africa, for over US$400m a year.
ZISCO produced over a million
tonnes of steel at its peak in the
1990s, employing over 5,000 people
directly and thousands more in
downstream industries.
The national requirement for local
market is 1.5m tonnes of steel per
annum.
31 August - 6 Septmber 2023 Business Times 7

BT Markets Data
Daily Price Sheet Wednesday 30 August 2023

2nd Flr, Bank Chambers Dealing : Research & Investments :

76 Samora Machel Manatsa Tagwireyi 263 773 289 120 263 777 193 053
Harare Richard Mashava 263 772 446 789
Tel: +2634797772/75/77; 797761/7/9 4604.6233 Email: stockbrokers@fbc.co.zw MD: 263 735 167 321
30-Aug-2023
Opening Closing Total Volume
COUNTER Isin Market Cap Sector Price (ZW$) Price (ZW$) USD Prices ($) @IBR Price ! Price % ! Traded Total Value Traded Year High Year Low
Afdis ZW0009011025 213,101,627,400 Consumer Staples 1800.0000 1800.0000 0.3909 - - - - 2,000.0000 260.0000
Ariston ZW0009011041 40,786,113,881 Consumer Staples 27.1643 25.0622 0.0054 (2.1021) (7.7385) 48,200 1,208,000.00 36.0000 4.0000
ART ZW000301DR35 24,152,422,257 Materials 51.0000 51.0000 0.0111 - - - - 69.0000 14.0000
BAT ZW0009011710 322,594,273,789 Consumer Staples 13990.0000 15634.4783 3.3954 1,644.4783 11.7547 4,600 71,918,600.00 19,297.6000 2,699.0000
Bridgefort Capital ZW0009012395 199,090,800 Consumer Staples 16.5909 16.5909 0.0036 - - - - 17.1000 8.0000
Bridgefort Capital Class B ZW0009012403 45,158,300 Consumer Staples 33.6500 33.6500 0.0073 - - - - 33.6500 26.0000
Cafca Limited ZW0009011942 79,328,376,400 Industrials 2399.6000 2399.6000 0.5211 - - - - 3,320.2000 200.1000
CBZ ZW0009011967 561,978,148,739 Financials 817.7419 817.7419 0.1776 - - - - 3,564.9000 135.0000
CFI ZW0009011116 233,289,925,000 Consumer Staples 2200.0000 2200.0000 0.4778 - - - - 2,562.8000 430.0000
Dairibord ZW0009011975 230,212,057,936 Consumer Staples 578.6429 643.0489 0.1397 64.4060 11.1305 98,900 63,597,540.00 665.4000 35.0000
Delta ZW0009011199 2,780,752,026,305 Consumer Staples 2199.8803 2152.6145 0.4675 (47.2658) (2.1486) 279,100 600,794,700.00 4,350.0000 361.0500
Ecocash ZW0009012437 357,600,691,770 IT, Communication 138.1589 138.0390 0.0300 (0.1199) (0.0868) 5,900 814,430.00 212.0000 40.0000
Econet ZW0009012122 1,313,369,346,999 IT, Communication 507.6801 506.9795 0.1101 (0.7006) (0.1380) 30,200 15,310,780.00 1,200.0000 97.0000
Edgars ZW0009011231 69,488,494,815 Consumer Discretionary 115.0000 115.0000 0.0250 - - - - 125.9500 9.5000
Fbc ZW0009011926 550,998,940,140 Financials 800.0000 820.0000 0.1781 20.0000 2.5000 100 82,000.00 1,400.0000 51.0000
Fidelity ZW0009011876 14,160,027,830 Financials 130.0000 130.0000 0.0282 - - - - 130.2000 24.0000
FML ZW0009012197 103,521,459,000 Financials 150.0000 150.0000 0.0326 - - - - 274.3000 19.0500
FMP ZW0009012312 124,381,692,706 Real Estate 101.0000 100.4571 0.0218 (0.5429) (0.5375) 54,200 5,444,775.00 126.5000 12.0000
General Beltings ZW0009012049 6,439,063,476 Industrials 11.8000 12.0000 0.0026 0.2000 1.6949 6,100 73,200.00 12.0000 1.6000
Getbucks ZW0009012320 44,198,498,326 Financials 38.0000 38.0000 0.0083 - - - - 43.7000 20.0000
Hippo ZW0009011272 386,041,128,000 Consumer Staples 1900.0000 2000.0000 0.4343 100.0000 5.2632 2,300 4,600,000.00 2,874.0000 182.5993
Mash Holdings ZW0009011348 232,384,243,375 Real Estate 125.0000 125.0000 0.0271 - - - - 140.0000 7.1000
Masimba ZW0009012171 108,829,157,759 Industrials 450.3517 450.3517 0.0978 - - - - 946.0000 79.9557
Meikles ZW0009012114 180,680,118,869 Consumer Staples 700.1000 701.5071 0.1523 1.4071 0.2010 83,800 58,786,300.00 2,500.0000 112.0000
Nampak ZW0009012213 98,271,279,887 Industrials 147.0000 130.0490 0.0282 (16.9510) (11.5313) 1,561,000 203,006,500.00 147.0000 9.0100
Nmbz ZW0009011389 65,246,208,960 Financials 160.0000 160.0000 0.0347 - - - - 330.0000 37.7059
NTS ZW0009011397 5,458,257,030 Consumer Discretionary 21.5000 21.5000 0.0047 - - - - 21.5000 10.2000
Ok Zim ZW0009011785 163,763,105,481 Consumer Staples 144.3802 131.0451 0.0285 (13.3351) (9.2361) 4,373,700 573,152,100.00 347.0000 33.0000
Proplastics ZW0009012247 112,097,346,839 Materials 444.9444 444.9444 0.0966 - - - - 460.0000 32.0000
Riozim ZW0009011959 73,217,682,000 Materials 521.8500 600.0000 0.1303 78.1500 14.9756 300 180,000.00 600.0000 140.0000
RTG ZW0009011470 399,279,286,880 Consumer Discretionary 160.0000 160.0000 0.0347 - - - - 160.0000 9.5000
Seedco Ltd ZW0009011504 239,828,236,863 Consumer Staples 955.6904 988.9113 0.2148 33.2209 3.4761 5,300 5,241,230.00 2,091.0000 74.5205
Starafrica ZW0009011991 26,227,183,553 Consumer Staples 5.5459 5.5624 0.0012 0.0165 0.2975 139,600 776,515.00 7.2000 1.5200
Tanganda ZW0009012411 250,193,260,024 Consumer Discretionary 1081.6583 958.3577 0.2081 (123.3006) (11.3992) 12,300 11,787,800.00 1,682.0000 89.5000
Truworths ZW0009011561 3,840,675,120 Consumer Discretionary 10.0000 10.0000 0.0022 - - - - 12.1000 2.3825
Tsl ZW0009011579 178,551,222,500 Consumer Staples 500.0000 500.0000 0.1086 - - - - 800.0000 44.0047
Turnall ZW0009011835 7,688,624,774 Materials 15.5000 15.5000 0.0034 - - - - 15.5000 3.9475
Unifreight ZW0009012221 23,424,332,140 Industrials 220.0000 220.0000 0.0478 - - 200 44,000.00 238.0000 51.6500
Willdale ZW0009011850 17,780,014,280 Materials 16.1813 10.0000 0.0022 (6.1813) (38.2003) 11,600 116,000.00 21.0000 1.8525
Zb ZW0009012007 111,070,867,028 Financials 634.0000 634.0000 0.1377 - - - - 747.0000 100.0000
Zeco ZW0009012064 15,336,477 Industrials 0.0331 0.0331 0.0000 - - - - 0.0331 0.0331
ZHL ZW0009011611 118,184,221,090 Financials 65.0000 65.0000 0.0141 - - 6,100 396,500.00 105.0000 5.9782
Zimpapers ZW0009011595 6,158,764,800 IT, Communication 10.6923 10.6923 0.0023 - - - - 14.6000 2.4129
6,723,500 1,617,330,970.00

VFEX PRICE SHEET (USD$)

African Sun ZWVX09010070 - Consumer Discretionary 0.0330 0.0330 0.0330 - - 10,155 335.12 0.0900 0.0330
Axia ZWVX09010062 - Consumer Discretionary 0.0566 0.0650 0.0650 0.0084 14.8410 192 12.48 0.1475 0.0500
Bindura ZWVX09010021 - Materials 0.0113 0.0113 0.0113 - - - - 0.0240 0.0101
Caledonia ZWVX301DR012 - Materials 13.5000 13.5000 13.5000 - - - - 17.0000 13.0000
First Capital Bank Limited ZWVX09010096 - Financials 0.0200 0.0200 0.0200 - - 5,500 110.00 0.0400 0.0180
Innscor Africa Limited ZWVX09010054 - Consumer Staples 0.4130 0.4130 0.4130 - - 19,675 8,125.78 0.9300 0.3279
National Foods ZWVX09010047 - Consumer Staples 2.0100 2.0100 2.0100 - - - - 2.5925 1.7899
Nedbank ZDR ZWVX301DR029 - Derivative 12.0000 12.0000 12.0000 - - - - 12.0000 10.8500
Padenga ZWVX09010013 - Consumer Discretionary 0.1790 0.1790 0.1790 - - - - 0.3410 0.1645
Seedco Int BW0000002005 - Consumer Staples 0.2800 0.2800 0.2800 - - - - 0.3425 0.2485
Simbisa ZWVX09010039 - Consumer Staples 0.3734 0.3735 0.3735 0.0001 0.0268 84 31.37 0.7000 0.3300
West Prop Holdings Limited ZWVX09010088 - 10.0000 10.0000 10.0000 - - - - 10.0000 10.0000
Zimplow Holdings Limited ZWVX09010104 - Industrials 0.0389 0.0385 0.0385 (0.0004) (1.0283) 500 19.25 0.0500 0.0385

VFEX BONDS (USD$)

Karo ZWVXC0060017 Fixed Term Bond 100.0000 100.0000 - - - - 100.0000 100.0000

ETF PRICES (ZWL$)

Cass Saddle Agriculture ETF ZW0009020059 - Derivative 7.2500 7.2500 0.0016 - - 16,900 122,525.00 7.2500 1.8000
Datvest ETF ZW0009020034 - Derivative 5.6853 5.6853 0.0012 - - - - 15.0000 1.4700
Morgan & CO Made in Zim ETF ZW0009020042 - Derivative 5.5000 5.5000 0.0012 - - - - 8.0000 1.1400
Morgan & CO Multi Sector ETF ZW0009020026 - Derivative 172.9297 172.9297 0.0376 - - - - 245.0000 21.5000
OML ETF ZW0009020018 - Derivative 23.6500 23.6500 0.0051 - - 41,400 979,110.00 53.0000 6.4500

REIT PRICES (ZWL$)

Tigere Reit ZW0009030017 - Reit 204.9900 204.0549 0.0443 (0.9351) (0.4562) 302,823 61,792,510 330.0000 43.0000

Day's Risers Day's losers

COMPANY Price (ZWL$) % ! COMPANY Price (ZWL$) %"
Riozim 600.0000 14.98 Willdale 10.0000 (38.20)
BAT 15634.4783 11.75 Nampak 130.0490 (11.53)
Dairibord 643.0489 11.13 Tanganda 958.3577 (11.40)
Hippo 2000.0000 5.26 Ok Zim 131.0451 (9.24)
Seedco Ltd 988.9113 3.48 Ariston 25.0622 (7.74)

This Price Sheet is based on PROVISIONAL information obtained during trading. No liability is accepted by FBC Securities (Private) Limited for any errors in this report.

The Bank of England is facing major losses on its

bond purchases — and it’s set to get much worse
The Bank of England’s losses
on bonds bought to shore up the
U.K. economy after the financial
crisis will be “materially higher
than projected until the middle
of the decade,” according to
Deutsche Bank.
In late July, the central bank
estimated that it would require the
U.K. Treasury to backstop £150
billion ($189 billion) of losses on
its asset purchase facility (APF).
The programme ran from
2009 to 2022 and was designed
to improve financing conditions
for companies hit by the 2008
financial crisis. It saw the BOE
accrue £895 billion worth of bond
holdings while interest rates were
historically low.
However, the central bank
began unwinding that position
late last year, initially through
halting reinvestments of maturing
assets and then by actively selling
the bonds at a projected pace of
£80 billion per year from October
2022.
Both the Treasury and the
BOE knew when the APF was
implemented that its early profits
(£123.8 billion as of September
last year) would become losses as
interest rates rose.
However, the pace at which
the central bank has had to
tighten monetary policy in a bid
to tame inflation means the costs
have risen more sharply than
anticipated. Higher rates have
driven down the value of the
purchased government bonds —
known as gilts — just as the BOE
began selling them at a loss.
July’s public finances data showed
that the Treasury transferred £14.3
billion over the month to the Bank
of England to cover the losses on its
quantitative easing program, £5.4
billion above the figure projected by
the independent Office for Budget
Responsibility in March.
Sanjay Raja, senior economist at
Deutsche Bank, noted that a total
of £30 billion has so far moved from
the Treasury to the central bank since
September, and the indemnities are
likely to continue to run well above
the government’s forecasts for two
reasons.
“First, interest rates have risen far
above levels assumed in the fiscal
watchdog’s spring forecasts. And
second, gilt prices have fallen further
– particularly in the longer end of the
curve, resulting in further valuation
losses as the Bank actively unwinds
the APF through active gilt sales,”
Raja said in a research note Friday.
The Bank of England has hiked
rates at 14 consecutive monetary
policy meetings, taking its benchmark
interest rate from 0.1% in late 2021
to a 15-year high of 5.25%. The
market broadly expects a 15th hike
to 5.5% at the next Monetary Policy
Committee meeting.
A twofold hit
Imogen Bachra, head of U.K.
rates strategy at NatWest, said the hit
to public finances — and therefore
to the government’s coffers — is
twofold.
“On one hand, QT loses money
because the Treasury takes the BoE’s
losses when gilts are sold at a lower
price than paid. This was expected:
the BoE bought bonds in a falling
rate environment due to disinflation,
while ‘success’ was to be defined by
reflation and so higher rates,” Bachra
said in a recent note.
“On the other hand, though, while
QE gilts are not sold, the BoE pays
Bank Rate on the ~£900bn reserves
it created to buy them. The higher
Bank Rate rises, the more costly this
interest expense becomes.”
This could throw a wrench into
the government’s ability to offer
public spending or tax-cutting
pledges ahead of a general election
slated for 2024.
Any profits the Bank of England
generates on printing banknotes or
buying and selling bonds, beyond
its required capital buffers, is passed
to the Treasury to be repurposed for
public spending.
‘Ballooning cost’
Deutsche Bank assessed both the
net interest costs likely to be paid
on central bank reserves and the
deteriorating value of the APF bonds
when the BOE crystallizes the “mark-
to-market” losses by selling them or
redeeming them.
Raja concluded that the cost to the
Treasury of indemnifying the central
bank over the next two fiscal years
will be around £23 billion higher
than the OBR forecast in March,
coming in at £48.7 billion for the
current fiscal year and £38.1 billion
next year before falling sharply across
the following two years as the Bank
rate falls and the overall size of the
APF stock is depleted.
“Not only is inflation running
higher than expected, the indemnity
cost of the BoE’s balance sheet
operations will almost certainly be
higher than what was expected only
five months ago,” Raja said, adding
that this additional weight on the
government’s debt servicing bill will
be reflected in Finance Minister
Jeremy Hunt’s autumn budget
statement.
“The good news is that with
government revenues running a
lot stronger — due to a stronger
economy these last few months —
overall borrowing will still likely
undershoot the OBR’s forecasts
heading into the autumn fiscal
statement, masking the ballooning
cost of the Bank’s APF bill.”
— CNBC
8 31 August - 6 September 2023
Zulu Lithium secures £5m
BUSINESS REPORTER
Z
ulu Lithium Mine,
a unit of Premier
African Minerals, has
received an additional
£5 million in funding
from Canmax Technologies, which
is expected to help the company
meet its goal of generating revenue
by November this year while also
increasing production capacity.
Premier confirmed the
development in a statement released
yesterday.
“Premier Africa Minerals Limited,
is pleased to announce a conditional
subscription for new ordinary
shares by Canmax Technologies Co
to raise £5m before expenses at an
issue price of 0.35 pence per new
Small scale miners seek funding for equipment
LIVINGSTONE MARUFU
Small-scale gold miners are looking
for funding to purchase state-of-the-
art mining machinery so they can
continue to run their operations even
during the rainy season, the Gold
Miners Association of Zimbabwe
CEO, Irvine Chinyenze has said.
According to Chinyenze, small-
scale miners still rely on ineffective,
outmoded equipment.
“It’s not surprising that we have
low gold deliveries in the country
this year because during the first two
months of 2023, there was flooding
in the mines.
“We need state of the art
equipment to continue working
even under these conditions. Going
forward, we are seeking for funds
Stanbic Bank unveils health
sector value proposition
STAFF REPORTER
Leading financial services
company Stanbic Bank recently
unveiled a value proposition for the
health sector that will significantly
improve Zimbabweans’ health and
well-being.
The event was held in Harare and
was attended by health professionals,
representatives of the medical sector
bodies, captains of industry and the
academia.
The bank unveiled its holistic suite
of solutions to enable the health
sector practitioners to focus on the
wellbeing of their patients whilst
the bank looks after their financial
wellbeing.
The health sector is one of the most
important sectors in any country. It
is responsible for ensuring the health
and well-being of the population,
which has a significant impact on
the economy, society, and individual
lives.
Speaking at the launch, Stanbic
Bank’s CFO, Tafadzwa Mahachi
emphasised the importance of the
health sector as a healthy nation
is a productive nation. He also
acknowledged the pressures that
medical professionals face on a
day-to-day basis and Stanbic’s
commitment to offer seamless
banking solutions specifically
curated for the health sector.
He said Stanbic’s dedication to the
health sector was well complemented
by the institution’s partnership with
BT News
ordinary share for the ongoing Zulu
Lithium and Tantalum Project Pilot
Optimisation where the company
is targeting revenue generating
production by November 2023.
“The subscription, together with
the placing funds, funds remaining
expected operational expenditure
and any shortfall in remedial
expenses not met by the plant
supplier for first revenue forecast
for November 2023. Subscription
further not only confirms the
commitment of Canmax, Premier’s
largest shareholder, to the ultimate
successful of Zulu, but is intended
to facilitate increases in production
capability,” reads part of the
statement.
The lithium company said the
open pit mining contractor, JR
to procure machinery that could
enable us to work under very wet
conditions,” Chinyenze said.
In the first seven months of 2023,
Zimbabwe’s gold deliveries to the
country’s sole buyer and marketer
of the yellow metal , Fidelity Gold
Refinery (FGR) , decreased by 11%
to 16.86 tonnes from 18.940 tonnes
delivered in the prior comparative
period.
According to FGR general
manager Peter Magaramombe, the
country hasn’t fully recovered from
the effects of the rainy season slump,
which saw a sharp decline in gold
deliveries in January and February.
“Gold deliveries to FGR stand at
16.855 tonnes during the first seven
months of 2023 from 18.94 tonnes
delivered during the same period
Stanbic Bank’s Chief Financial Officer (CFO), Tafadzwa Mahachi (centre with gold plaque), Stanbic Bank Head Business
and Commercial Banking, Patson Mahatchi (second from left and Stanbic Bank non-executive board member, Valentine
Mushayakarara (third from left), flanked by representatives from Zhejiang International Trading Supply Chain Co Ltd
(which trades as Guomao in China) under the Africa China Trade Import Solution at the launch of the Health Sector Value
Proposition.
Zhejiang International Trading
Supply Chain Co Ltd which trades
as Guomao in China through the
Africa China Trade Import Solution.
“Stanbic Bank’s partnership
with Guomao through the Africa
BUSINESS TIMES
Goddard Contracting (Pvt) Ltd,
and the Zulu design, procurement,
installation, and commissioning
contractor, Stark International
Projects Limited, represent the two
major expenses related to Zulu’s
ongoing development.
It said the contractors had agreed
to collectively accept payment of a
limited number of future invoices
until the end of December 2023 in
new ordinary shares of the company
at the closing middle market price
on the day prior to settlement.
The placing has been arranged
within the company’s existing share
authorities.
“Premier intends to use the
proceeds of the placing principally to
assist with the ongoing optimisation
of the plant at Zulu and general
last year. We were dealt a heavy
blow in January and February due to
the high water table which affected
small-scale mining.
“Given the general improvement
in electricity supply in the country
and the increase of gold centres,
we expect to recover significantly,”
Magaramombe said.
Small-scale miners made up 61%
of all deliveries, contributing 10.28
tonnes of the total gold production.
Over the past seven months, large-
scale miners were responsible for
6.567 tonnes.
According to experts, new
policies must be implemented in
order to increase production and
take advantage of stable, strong
commodity prices that are above
US$62,000.
China Trade Import Solution has
been pivotal in ensuring that health
sector players intending to import
consumables and equipment from
China get matched to suppliers
and manufacturers. As a financial
working capital,” it said.
“In particular, Premier anticipates
using the proceeds to meet the costs
associated with the interim mill
installation and associated thickener
that is expected to collectively increase
production to approximately 50%
of design capacity from October
2023, ongoing pit development
to clear the weathered zone, and
general operational costs to cover the
current interim period until the end
of November when first revenues are
anticipated at Zulu.”
Additionally, they claimed that
deliveries have been hampered
by inconsistency in payments as
incapacitated small-scale miners look
for alternative means of getting paid
immediately.
They claimed that small-scale
mining should have advanced
through mechanisation, the
acquisition of technical know-how,
skills, and resources rather than
remaining antiquated by using a pick
and a shovel.
For miners, taxes also continue to
be a source of frustration, and this
situation has an impact on output
and productivity.
As a result, gold smuggling has
increased and the creation of gold
reserves has been destroyed.
According to experts, it was
services institution, we are becoming
intentional in going beyond banking
to offer holistic banking solutions
for the health sector through a well-
thought-out Health Sector Value
proposition,” said Mahachi.
necessary to review the large-
scale miners’ retention levels and
capacitate the small-scale miners to
increase production.
To assist in achieving US$4bn in
gold export revenue, the government
has moved to provide equipment in
gold centers.
Three gold centers—at Makaha
in the Mashonaland East Province,
Mukaradzi in the Mashonaland
Central Province, and Penhalonga in
the Manicaland Province—will now
be operational thanks to government
funding.
This is believed to go a long
way toward ensuring that the gold
produced by artisanal miners is
efficiently mobilised, increasing
revenues accruing to the government
as part of the process towards the
He said Stanbic bank is committed
to taking care of the clients in the
health sector’s finances and financial
wellness so that they can focus on the
well-being of their patients.
The Africa China Trade Solutions
(ACTS) - Import Solution is directly
linked to Original Equipment
Manufacturers (OEMs)
Guomao’s scope of service
includes sourcing products from
verified suppliers, negotiating price
and payment terms; quality check
and assurance; handling shipping
logistics and delivery to destination;
clearing documents and after-sale
support.
The Chinese entity has a
broad expertise and can handle
procurement of all kinds of products,
raw materials, and goods with the
focus sectors being Agriculture,
industrialisation, transportation,
infrastructure, medical and Health;
manufacturing; construction and
mining.
Each product has a Minimum
Order Quantity (MOQ), to meet
according to factories’ production
requirement. A minimum invoice
value of US$2000.00 or equivalent
is required for the import solution.
Guomao Managing Director,
Chaofeng Deng said the entity
was committed to building a
trustworthy bridge between Africa
and China cognisant of the fact
that industrialisation was the key to
economic growth for Zimbabwe.
Stanbic Bank’s head public
achievement of a US$12bn mining
industry before the end of this year.
Gold is anticipated to contribute
US$4 billion toward the mining
sector’s US$12bn target by 2023.
Irvin Chinyenze
sector,Sarah Charangwa highlighted
that the health sector is served by
dedicated specialist relationship
managers who understand the
clients’ needs and are able to
effectively proffer relevant solutions
to enable the clients’ businesses to
grow and succeed.
“There are many benefits for the
health sector players to bank with
the Stanbic Bank. We have inclusive
solutions that will take care of
everything they need to build and
grow a health practice. Our dedicated
team of healthcare specialists will
look after their banking needs with
the same level care that they extend
to their patients,”
Stanbic Bank has also been very
responsive to the challenges faced by
the health sector through its flagship
CSI project, Usizo-Ruyamuro. Since
its inception in 2019, public health
institutions have received equipment
ranging from dialysis machines,
theatre renovations and cancer
treatment medications.
The bank remains dedicated
to playing its part to support the
government’s goals for the health
sector as it implements the National
Health Strategy 2021-2025. Our
health care solutions are all inclusive
focusing on the both public and
private health sector players. We have
also been deliberate in including
offerings for health sector workers to
enable them to reach their financial
goals.
31 August - 6 September 2023
BT
‘Political ploy’: Activists, experts
rubbish RSF’s Sudan peace proposal
S The paramilitary force, accused of
udanese activists have
lambasted a peace proposal
from the paramilitary
Rapid Support Forces
(RSF), which they accuse
of committing atrocities throughout
the war-torn country.
The head of the RSF, Mohamed
Hamdan “Hemedti” Dagalo,
posted the 10-point plan to X,
formerly Twitter, late on Sunday.
In the proposal, Hemedti called
for federalism, social justice and a
unified army even as his group has
been accused of abducting residents,
looting homes and killing unarmed
civilians in the capital, Khartoum.
“[Hemedti] is the reason for this
war and for so much killing, …
so how could he offer a detailed
solution when he’s the problem?”
asked Zuhair al-Dalee, a member of
a Khartoum resistance committee,
which are neighborhood groups
spearheading local relief and calling
for democracy.
“There will be no peace or
democracy coming from a gangster
like him.”
Activists and analysts say the
RSF’s initiative makes a mockery of
Sudan’s pro-democracy movement,
which has been calling for full-
civilian rule since former President
Omar al-Bashir was ousted from
power in 2019.
Rights groups and the United
Nations have accused the RSF, which
has been fighting the Sudanese army
since April, of torturing civilians,
commiting extrajudicial killings and
using rape as a weapon of war.
The army has also been implicated
by rights organisations of arresting
hundreds of activists, stealing aid
and indiscriminately killing civilians.
It denies the allegations.
Observers accused the RSF of
now using a liberal peace proposal to
portray itself as an indispensable part
of Sudan’s future.
“Nobody in their right minds
thinks this peace proposal is genuine.
It’s a political ploy. This is war by
other means, and it is targeted
towards [possible] mediation actors
and efforts,” said Kholood Khair, a
Sudanese expert and the founding
director of the Confluence Advisory
thinktank.
Coveting legitimacy
Uganda man charged with ‘aggravated
homosexuality’, faces death penalty
A 20-year-old man has become
the first Ugandan to be charged with
“aggravated homosexuality” – an
offence punishable by death under
the country’s recently enacted anti-
gay law.
The defendant was charged
on August 18 with aggravated
homosexuality after he “performed
unlawful sexual intercourse” with a
41-year-old man. The charge sheet
did not specify why the act was
considered aggravated.
“Since it is a capital offence triable
by the High Court, the charge was
read out and explained to him in the
Magistrate’s Court on [the] 18th and
he was remanded,” said Jacqueline
Okui, spokesperson for the office of
the director of public prosecutions.
Okui did not provide additional
details about the case.
She said she was not aware
of anyone else having been
previously charged with aggravated
homosexuality.
Justine Balya, a lawyer for the
defendant, said she believed the
entire law was unconstitutional.
The law has been challenged in
court, but the judges have not yet
taken up the case.
Defying pressure from Western
governments and rights organisations,
Uganda in May enacted one of the
world’s harshest laws targeting the
LGBTQ community.
The legislation has been
atrocities during four months of fighting,
released its peace plan on Sunday.
Mohamed Hamdan ‘Hemedti’ Dagalo, commander of the Rapid Support Forces paramilitary, posted a peach proposal on August
27, 2023 [File: Mohamed Nureldin Abdallah/Reuters]
Sudan’s army has refused to
negotiate an end to the war with the
RSF.
The army has labelled it a rebel
militia and has promised to fight
on against the paramilitary, which
controls most of Khartoum and the
western region of Darfur.
“We do not make deals with
traitors. We do not make deals
with anyone who has betrayed the
Sudanese people,” army commander
Uganda’s anti-LGBT laws: Man faces death penalty for ‘aggravated homosexuality’
condemned by rights groups and
other campaigners.
A group of UN experts described
the law as “an egregious violation
of human rights”, while Amnesty
International called it “draconian
and overly broad”.
It prescribes life in prison for
same-sex intercourse.
The death penalty can apply in
cases deemed “aggravated”, which
include repeat offences, gay sex
that transmits terminal illness, or
Business Times
Abdel Fattah al-Burhan said during a
speech on Monday at an army base
in Port Sudan on the Red Sea.
The army’s refusal to engage in
peace talks may help the RSF appear
to some observers as more reasonable
and cooperative in comparison,
according to Sharath Srinivasan, co-
director of the Centre of Governance
and Human Rights at the University
of Cambridge and an expert on the
failures of peacemaking in Sudan.
same-sex intercourse with a minor,
an elderly person or a person with
disabilities.
Balya said four other people have
been charged under the law since its
enactment and her client was the
first to be prosecuted for aggravated
homosexuality.
She declined to comment on the
specifics of his case.
Uganda has not executed anyone
in about 20 years, but capital
punishment has not been abolished
“[Hemedti] is saying [with this
peace proposal] that we are real
political players and that we deserve
a seat at the mediation table to talk
about the political future of the
country,” Srinivasan told Al Jazeera.
Bedour Zakaria, a human rights
monitor from West Darfur, warned
that the RSF should not be trusted
with ushering in peace or democracy.
She said the paramilitary and
allied Arab militias killed her brother
and President Yoweri Museveni
threatened in 2018 to resume
executions to stop a wave of crime.
The law’s enactment three months
ago drew widespread condemnation
and threats of sanctions.
Earlier this month, the World
Bank suspended new public
financing to Uganda in response to
the law.
Homosexuality is criminalised in
more than 30 of Africa’s 54 countries.
— Al Jazeera
and burned her village as part of
what she described as an ongoing
“genocidal” campaign against the
non-Arab Masalit ethnic group.
Rights groups and the UN have
also accused the RSF of committing
summary executions and burying
bodies in mass graves in West Darfur.
The allegations have prompted
the International Criminal Court
to launch new investigations into
abuses taking place in Darfur.
“The RSF’s peace proposal is
useless,” Zakaria said just days after
fleeing Darfur to Uganda. “After
all the violations that the RSF
committed, the people of Darfur
won’t accept any initiative that is
associated with Hemedti.”
The same mistakes?
Srinivasan suspects that Western
diplomats will hesitate to engage
with Hemedti, but they may do so
at a later time in an attempt to end
the war.
Such a tactic would repeat what
he believes is the same mistake the
international community made in
2019.
After al-Bashir fell from power,
Western countries supported a
civilian-military partnership that
made al-Burhan chairman and
Hemedti deputy chairman of the
Sovereign Council, the highest body
in the transitional government.
The decision was made several
weeks after security forces killed
more than 120 people at a sit-in on
June 3, 2019.
Survivors said the RSF
spearheaded the killings and the
army closed its gates to protesters
trying to escape the violence.
“It’s impossible to imagine that
the international community will
look the other way after all the
atrocities the RSF has committed in
this war. But it is worth remembering
that Hemedti did not enter the
[democratic] transition in 2019
with a squeaky clean record either,”
Srinivasan said.
He added that Hemedti’s use of
liberal and human rights language
in his peace proposal was a clear
attempt to resonate with some
Western leaders.
“Hemedti is trying to play back
to external actors the very language
and the very ideas of peacemaking
Aid agencies
plea for
exemptions to
Niger sanctions
The UN and a host of
humanitarian agencies are calling
on the West African regional bloc,
Ecowas, to grant exemptions to
the sanctions imposed on Niger in
the wake of the coup as they are
threatening the health of some of
the people.
“There is no way to bring
humanitarian aid into the
country,” Emmanuel Gignac, the
UN refugee agency representative
for Niger, is quoted by the Reuters
news agency as saying.
“The immediate goods
(affected) is going to be food and
then it’s going to be access to
medicine, to drugs.”
He painted a picture of a
possible worsening situation
where, with electricity supplies
cut by Nigeria, people are relying
increasingly on generators, but
the supply of fuel could be under
threat.
In the wake of the 26 July coup,
some of Niger’s neighbours shut
their common borders as a means
to put pressure on the junta to
9
Regional
[recycled] from the 2019 transition
and even from further back to
[claim] that I’m still the actor looking
to protect a political transformation
in the country,” Srinivasan told Al
Jazeera.
Deflecting criticism
Despite a sophisticated campaign,
mounting reports of grave human
rights abuses have hurt the RSF’s
political credibility, according to
Khair.
She warned that the group may
exploit mediation efforts as a way
to deflect attention away from its
actions on the ground.
“If they show they are at the
table and being involved in these
mediations, then it allows them
some wiggle room and removes
attention from what they are doing
on the battlefield. It’s a perfect red
herring,” she told Al Jazeera.
During talks in the Saudi Arabian
city of Jeddah, where multiple
ceasefires have been signed and then
violated, the RSF and army were
accused of being more committed to
strengthening their positions on the
battlefield than protecting civilians.
Both sides had inked a declaration
of principles to uphold international
law, yet activists and rights groups
said the RSF is still violating several
of the principles by abducting
civilians, occupying water stations
and hospitals, and looting homes
and markets.
The army has also been accused
of violating the declaration by
impeding relief and resorting to
indiscriminate fire.
Fadel Omer, a spokesperson for a
resistance committee in Khartoum,
said that neither of the sides can
be trusted with bringing peace or
democracy to Sudan.
He specifically criticised
Hemedti’s proposal as being full of
deceit and lies.
“The same words have been
repeated from Hemedti’s tongue
for ages, but he has never been
committed to [democracy] since the
establishment of the RSF,” Omer
told Al Jazeera.
“The RSF continues to kill us and
loot under the guise of democracy.”
— A l Jzaeera
allow a return to civilian rule.
Mr Gignac said that Martin
Griffiths, the head of the UN’s
office for humanitarian affairs,
has written to Ecowas asking for
exemptions, Reuters reports.
The International Rescue
Committee (IRC) is among
the dozens of agencies which
has echoed that call, saying
that “exemptions are vital to
ensure uninterrupted access to
humanitarian assistance services
for vulnerable populations,
particularly children, in Niger”.
“The clock is ticking, and the
lives of Nigerien children are
hanging in the balance,” Paolo
Cernuschi, IRC Niger country
director, said.
“Currently, stocks of vital
supplies, such as nutritional aid
and medical provisions, are held
up at the borders due to sanctions.
In a nation where acute
malnutrition rates are
alarmingly high, these delays
could prove catastrophic.”
— Al Jazeera
10
Team building from animals
COLUMN
PAUL NYAUSARU
CHIEDZA KADARE
M
ankind can learn
a lot about the
importance of
teamwork by
observing animals
in their natural habitats.
Many animals, from tiny insects
to large mammals, depend on
their teammates to survive in harsh
environments and fend off would-be
predators.
Similar principles apply to the
survival of your business.
In order for your business to
withstand the challenges of a free
market, your team must be firing on
all cylinders.
In this article, we talk about some
of mother nature’s best teams and
what we can learn from them.
‍ Clearly defined roles, particularly in
1. Honey bees: role delegation on
a massive scale groups of honey bees,
otherwise known as “swarms”, are
one of the most efficient teams in the
natural world.
In order to pollinate plants and
produce honey, they’ve developed
an ingenious role-delegation system
which ensures maximum efficiency.
Clearly defined roles for every bee
Every bee hive contains three
different types of adult bees, each
with its own dedicated function:
• The Queen Bee: Every honey bee
hive contains just one queen. They
are the only bee in the hive capable
of producing and laying eggs. She has
the unique ability to control which
type of bee she produces, rendering
her one of the natural world’s most
highly skilled HR managers.
Lack of research exacerbates human
trafficking challenges in Zimbabwe
COLUMN
ZORORAI
NKOMO
The majority of people have,
knowingly or unknowingly,
conducted research.
The simple definition of research
is a systematic and organised way of
finding a solution or an answer to a
problem.
The growing cancer of human
trafficking, also known as trafficking
in persons, is a big issue in Zimbabwe.
The solution to be proffered is to
find sustainable ways of suppressing
and fighting this wildfire. It is
an undisputed fact that human
trafficking is a complex crime
committed by well-resourced gangs
with the capacity of even capturing
State departments and other organs
of State which are into the justice
delivery system.
However, we have no choice but
to face this calamity head-on.
Zimbabwe in particular has not
been spared from the vagaries of
modern day slavery.
The first port of call is to
understand how big the problem
is? How do we know? Where is it
happening? How is it happening?
Those are great epistemological
questions which should be frankly
addressed.
If Zimbabwe can be in a position
to answer those questions, that will
be the first positive step towards
BT Insight
• Drones (Males): Drones are the
largest bees in the hive. Their sole
purpose in the colony is to fertilise
the queen’s eggs during her mating
flight. Without drones, the colony
would have no means of reproduction
and would subsequently die out.
• Worker Bees (Females): Worker
bees are responsible for the daily
running and maintenance of the
hive. They clean and polish the cells,
care for the queen, build beeswax
combs, defend the hive and more.
There are approximately 100 worker
bees for every male drone bee in the
hive.
The queen, drones and worker
bees are acutely aware of their
individual tasks and responsibilities.
Through effective communication
and hard-wired genetics, honey bees
have established a clear hierarchical
structure which allows them to
operate at maximum efficiency.
Key takeaways
• Role clarity improves efficiency:
large teams, allow your employees
to develop expertise in their field of
work. By breaking jobs down into
repeatable task lists, your team can
move quickly and efficiently.
• Role clarity boosts job satisfaction:
When employees understand how
their job contributes to the long-
term mission, they’re more likely to
be happy at work and satisfied with
their role.
• Effective communication is
essential for role clarity: In order
for clearly defined roles to work,
your workforce must be able to
communicate effectively. The best
way to improve communication
skills is by playing team-building
games.
• abilities.
fighting trafficking.
The answer to those questions is
research.
A lot of African states have
started investing human capital,
technological and financial resources
in trafficking research. Zimbabwe
should join the bandwagon.
The African Programming and
Research Initiative to End Slavery
(APRIES) is carrying out extensive
research in our neighbouring sister
republics of South Africa, Zambia
and Malawi.
The major aim of the research
is to reduce the high prevalence of
cross-border labour trafficking and
to provide sustainable, reasonable,
practical and comprehensive
solutions to combat and suppress
trafficking.
In this historic research in our
SADC region its baseline and
endline research are the Centre for
Social Research at the University
of Malawi, and the Institute for
Economic and Social Research at the
University of Zambia. These baseline
researches consist of comprehensive
household surveys, respondent-
driven sampling, and qualitative
research in rural and urban districts
of these respective counties.
This is the same type of research
which Zimbabwe needs to carry
out through its various universities
such as University of Zimbabwe,
National University of Science
and Technology, Africa University,
Midlands State University, Great
Zimbabwe University, Bindura
BUSINESS TIMES
‍Drawbacks
• Lack of autonomy: When you
divide responsibilities into rigid
roles, you diminish an employee’s
ability to think and act freely. This
can harm job satisfaction because
it restricts an employee’s ability to
make important decisions.
• Silo mentality: When departments
work independently of one another,
it can create what’s known as a silo
mentality. This typically occurs
when there’s little to no interaction
between teams, which leads to issues
like employee disenfranchisement
and reduced productivity.
‍ Because by trailing at the back,
2. Wolves: a contrarian approach
to leadership
Wolves are natural-born predators,
but the animals they hunt, polar
bears, elk, moose, bison, etc., are
much larger than they are.
In order to successfully take down
these strong animals, wolves must
rely on their superior collaborative
University of Science Education,
Chinhoi University of Technology
just to mention but a few. These
are institutions of higher learning
which are competent and capable
of carrying research of greater
magnitude.
In June 2023, South Africa
through The Human Sciences
Research Council made a historic
study on trafficking in persons
which highlighted that prosecution
of trafficking cases remain minimal
as compared to over 250 000 cases
which are being recorded.
In this report South Africa’s
renowned anti-trafficking expert,
professor Philip Frankel provides that
the research has managed to unearth
various forms of human trafficking
such as labour child trafficking which
is being supplemented by child organ
trafficking, illegal abortion, ‘baby
farming’ of children for the sake of
exploitation by foster parents.
This is a sad chapter in the history
of mankind.
All these are different forms of
trafficking which are being added to
those we normally know.
But, while their team-hunting
skills are undoubtedly impressive, the
most interesting thing about them is
the way they approach leadership.
Leading from behind
Perhaps the biggest lesson we
can learn from the wolves is their
approach to leadership. Wolf leaders,
otherwise known as “alphas”, have a
very unique way of organising their
team.
Instead of guiding the pack from
the front, as you might expect, alpha
wolves follow up from behind.
Why?
wolf leaders can ensure the young,
elderly and infirm members of
the team don’t get left behind and
become vulnerable to attack.
Role delegation and vocational
agility
Contrary to popular belief, alpha
wolves are not always the biggest
and strongest pack members. Alpha
wolves achieve their status simply by
However due to such research
South Africa now knows various
forms of trafficking in persons
currently underway in the backyard
of its various communities.
This ground-breaking research
further went on to unmask rampant
corruption within the police force
and state departments such as Home
Affairs as accomplices due to their
complicity.
The point I want to drive home is
that the majority of African countries
face almost similar challenges
socially, economically and politically.
Therefore, there is a high
probability that Zimbabwe, just like
our neighbouring sister South Africa,
is facing the same challenge.
However, even if Zimbabwe and
South Africa face the same problem
on human trafficking, South Africa
is now on better standing in fighting
the scourge because it has carried
researches which can equip its law
enforcement apparatus and players
in the justice delivery system to
decisively deal with trafficking. It’s
not shooting in the dark.
As things stand for Zimbabwe,
mating and rearing pups.
They’re essentially parents.
Therefore, their role is not to
jostle for the “top-dog” position, but
simply to identify the strongest and
weakest members of the pack and
delegate responsibilities accordingly.
Key takeaways
• Avoid micromanagement:
Effective leaders don’t attempt to
do everything themselves. Instead,
they utilise the individual strengths
of their team members and delegate
tasks accordingly.
• Employee well-being: By taking a
more passive approach to leadership,
leaders are better positioned to
observe the ‘pack’ and offer support
to those who need it.
‍ manager or CEO to jabber on time
Drawbacks
• Overburden: Leaders mustn’t
depend too much on the strongest
members of their team. Putting too
much pressure on strong members
the government and other organs
of the State acknowledge that there
is human trafficking happening,
but it’s difficult to pinpoint exactly
where and how it is happening.
At the same time our women,
young people and vulnerable
members of our respective
communities continue to bear the
brunt of trafficking in persons.
I am a firm believer that public
awareness and consciousness
about trafficking remains limited
and a lot of trafficking. There is
underreporting of these cases.
It is very difficult even for the
government to embark on mass
public awareness about trafficking in
persons because there is no extensive
research to ascertain the magnitude
of the problem.
After accepting that trafficking in
persons is a problem in the country
government created the Zimbabwe
Trafficking in Persons National Plan
of Action (NAPLAC) for 2016-2018
and 2019-2021 which clearly states
that it is an instrument which “will
go a long way in aiding collaborative
regional protection of the vulnerable
in society and general peace and
security”.
In its guiding principles,
NAPLAC, made it very clear that
they will carry evidence-based
research through data collection,
regular monitoring and evaluation
for the development of Zimbabwe’s
response to Trafficking in Persons.
This was a really noble initiative by
the government in a bid to address
31 August - 6 September 2023
in an attempt to relieve others can
lead to exhaustion and ultimately
burnout.
‍
3. Dolphins: a masterclass in
communication
Dolphins live and travel in groups
known as ‘pods’, which typically
consist of about 5-20 members.
Sometimes, multiple pods can come
together to form ‘herds’ of up to
1,000 dolphins.
Dolphins use teamwork to corral
and catch their prey: shoals of smaller
fish such as mackerel and herring.
Without their ability to
communicate, strategise and
organise, dolphins would be easily
outmanoeuvred by their faster, more
agile prey.
Many hands make light work
Dolphins depend on one another
to hunt and survive. Without the
assistance of their fellow huntsmen,
dolphins would never be able to
catch a meal.
But when dolphins hunt together,
their individual strengths are
amplified.
With a common goal in mind,
they’re able to stalk their prey, back
it into a corner and take turns
swimming through the bait ball.
‍
Everyone has a chance to shine
Unlike honey bees, dolphins share
equal responsibility in their roles.
Once the prey has been corralled,
each dolphin takes a chance at
swimming through the bait in the
hopes of catching a fish.
You can mirror this concept in
your team meetings.
Instead of allowing the same old
and again, offer the floor to other
colleagues and give them a chance to
contribute to the discussion.
 To Page 11
the challenge of human trafficking.
However, until and unless there is
comprehensive research conducted
it will be difficult for Zimbabwe
to be able to successfully fight the
complicated scourge of modern-
day slavery-Human Trafficking-
Trafficking in persons.
In 2018 the Statistic Brain
Research Institute published a crime
report which presented results of
people who were sexually exploited
in Mozambique. The research
showed that there is rampant child
prostitution in cities such as Beira,
Namula Nacala, Chimoio and
Maputo.
Mozambique and Zimbabwe
are sister states which share a lot in
common in terms of social, political
and economic standing.
Looking at Mozambique research
finding there is a reasonable inference
which can be drawn for Zimbabwe.
The inference that there is possibility
of high child sexual exploitation
in Zimbabwe, but it’s difficult to
authoritatively pinpoint it due to
lack of research.
However, it’s not safe and proper
for us to draw inferences based on
experiences of other sister states on
such a serious human rights problem
without carrying out an extensive
research exercise to see how big the
problem is.
Zororai Nkomo is a Zimbabwean
Journalist, Lawyer and Social Justice
Activist, he writes in his own personal
capacity. He can be contacted on
zoronkomo@gmail.com
31 August - 6 Septmber 2023
BT
Beneficial Ownership: Legal
Implications under the Companies
and Other Business Entities Act
COLUMN
KELVIN
SABAO
T
he concept of beneficial
ownership has
gained prominence
in recent years as a
crucial mechanism
in combating financial crimes,
promoting transparency, and
preventing the misuse of legal entities
for illicit purposes.
The Companies and Other
Business Entities Act (Chapter
24:31) (hereinafter referred to as
the COBE Act) comprehensively
addresses beneficial ownership,
outlining its definition, disclosure
obligations, and consequences for
non-compliance.
This article delves into the key
sections of the COBE Act that pertain
to beneficial ownership, highlighting
the significance of this concept in
modern corporate governance and
anti-money laundering efforts.
Defining beneficial ownership
Section 2(1) of the COBE Act
provides a comprehensive definition
of “beneficial owner” concerning
a company. A beneficial owner is
understood as a natural person who
has ultimate ownership or control
over property, exercises significant
influence or control, or holds
certain ownership rights within the
company. Specifically, the definition
includes individuals who meet the
Team building from animals
 From Page 10
Who knows what ideas and
insights you’ll uncover?
Key takeaways
• Teamwork makes the dream work:
In business, there are some challenges
that are simply insurmountable when
tackled alone. When you next face
an intimidating hurdle, remember
the power of teamwork.
• Communication is key: Without
crystal-clear communication, the
dolphins would never be able to
organise themselves so strategically.
The same applies to your business.
For your team to work effectively,
you must employ streamlined
channels of communication.
‍ them to hunt seal pups from the
Drawbacks
• Conflict and competition:
Freeform hierarchical structures like
these help your business to innovate
and adjust quickly. However, when
too many ideas come together at
once, it can lead to personality clashes
and arguments. If your team doesn’t
have a clearly defined organisational
hierarchy, you must make efforts
to mediate discussions and quell
disputes before they escalate.
• usually preceded by numerous failed
4. Orcas: knowledge is power
Orcas, otherwise known as “killer
whales”, are some of the most
powerful, dominant and intelligent
creatures on the planet.
They typically live in colder waters
like Alaska, Norway and Antarctica,
where they feed on large prey
including sea lions, squids and seals.
Similarly to dolphins, they live in
“pods” of up to 40 individuals. These
are usually families, and they’re led
by the eldest matriarch.
Continually handing down
information
Orcas learn how to survive in
harsh environments by absorbing
information from the eldest and most
experienced members of the pod—
the mothers and/or grandmothers.
following criteria:
Ownership of shares: A person
who directly or indirectly holds
more than twenty percent of the
company’s shares.
Voting rights: A person who
directly or indirectly holds more than
twenty percent of the company’s
voting rights.
Director appointments: A person
who directly or indirectly holds the
right to appoint or remove a majority
of the company’s directors.
Significant influence or control:
A person who otherwise exercises or
has the right to exercise significant
influence or control over the
company.
Obligations and disclosure
requirements
Section 72 of the COBE Act focuses
on the obligations of companies
regarding the maintenance and
disclosure of beneficial ownership
information. Every company is
required to maintain an accurate
and up-to-date register of beneficial
owners, referred to as the “register
of beneficial owners.” This register
must be kept within Zimbabwe and
at the same office where the register
of members is maintained.
The register of beneficial owners
should contain details such as the
first name, surname, identification
reference number, residential
address, and the nature and extent of
beneficial ownership in the company
for each beneficial owner. The COBE
Act also mandates that companies file
With this continuous transfer of
information, the leaders of the pod
ensure that their group is set up for
future success.
It also means that the Orcas and
continually learning and developing
their skills.
‍ them down into actionable steps and
Disregarding biological and
environmental limitations
One of the most impressive
things about Orcas is their ability to
overcome natural barriers.
At first glance, it seems impossible
that an Orca would be able to hunt
and kill amphibious prey residing on
land.
But they’ve devised an incredible—
not to mention dangerous—strategy
which makes this possible.
Working as a team, the Orcas
create a wave of water which allows
shore.
It’s a huge risk, but it’s a creative
strategy that broadens their horizons
and maximises their chances of
survival.
Learning through trial and error
The execution of such a complex
plan requires accuracy and
precision—something many of the
younger Orcas are yet to possess.
Therefore, a successful hunt is
attempts.
But adult Orcas are forgiving,
despite the fact a failed hunt could
be fatal.
They understand the level of
expertise required to pull off such a
strategy. They are patient with the
younger Orcas and understand the
importance of on-the-job learning.
Key takeaways
• Patience and forgiveness:
Intelligent leaders don’t expect
perfect results from the get-go. They
understand the value of learning
from failure.
• Continuous growth: Training
shouldn’t stop once the onboarding
period has passed. For your employees
to reach their full potential, you need
Business Times
accurate and up-to-date beneficial
ownership information with the
Registrar in a prescribed form. In
case of any material changes to the
information, updates must be filed
with the Companies Registry within
seven days.
Access to beneficial ownership
information
Section 72(3) establishes that
beneficial ownership information
held by companies or the Registrar
must be accessible for inspection by
the Financial Intelligence Unit and
law enforcement agencies as defined
in the Money Laundering and
Proceeds of Crime Act.
Additionally, the COBE Act
requires companies to appoint a
resident in Zimbabwe responsible for
maintaining the register of beneficial
owners and providing information
to relevant authorities upon request.
Public disclosure and
enforcement
One of the notable aspects of the
COBE Act is the public nature of
beneficial ownership information.
Section 72(6) emphasizes that
beneficial ownership and other
company information held by the
Registrar are considered public
information and can be inspected
by members of the public, financial
institutions, and designated non-
financial businesses or professions
as defined in the Money Laundering
and Proceeds of Crime Act.
Non-compliance with the
to offer a well-structured learning
and development programme.
• Creativity and innovation: Just
because something seems impossible
right now, that doesn’t mean you’ll
never achieve it. Set goals, break
be prepared for things to change.
Drawbacks
• Competitiveness: Orcas have
learned that the reward of hunting
on the shore outways the risk.
Before you delve headfirst into the
unknown, ensure you’re not being
foolishly reckless.
‍ of it back to the colony, leaving a
5. Spotted hyenas: an unexpected
genius
They may not seem like it, but
spotted hyenas are some of the
fastest problem-solvers in the animal
kingdom.
This came as a surprise to
researchers who, given the hyena’s
comparatively small brain size,
hadn’t anticipated their intelligence
to be noteworthy.
Compared to animals with
larger brains such as elephants
and chimpanzees, hyenas remain
cognitively limited. Yet, they have
a unique ability to rally around a
problem and find solutions as a team.
‍ into over-competitiveness which
Cooperating to solve problems
A study conducted by Christine
Drea and co-author Allisa N. Carter
at the University of Berkeley tested
the problem-solving capabilities of
hyenas by confronting them with a
series of food-reward tasks.
The test was simple: numerous
pairs of spotted hyenas were led into
a pen where they were confronted
with two identical platforms 10
feet above the ground. Two ropes
dangled from each platform which,
when pulled downwards in unison,
would release a tasty meal of bone
chips and a sticky meatball.
Intelligent beings such as
chimpanzees would require extensive
training before comprehending such
obligations outlined in Section 72
is taken seriously under the COBE
Act. Section 72(10) states that failure
to comply with various requirements
could result in penalties such as
fines not exceeding level 14 or
imprisonment for up to five years,
or both.
Prohibition of concealment of
beneficial ownership
Section 73 of the COBE Act
addresses the prohibition of
concealing beneficial ownership.
It emphasizes that companies
and private business corporations
are prohibited from allotting or
issuing shares, transferring shares,
or registering shares in the name of
a person other than the intended
beneficial owner. This provision
ensures that ownership of shares
cannot be hidden behind nominee
entities.
However, there are exceptions
outlined in Section 73(2),
a task.
But spotted hyenas? Some figured
it out in less than two minutes.
The more experience a hyena had
with the experiment, the less often
he/she would pull down the rope
without its partner. Instead, the
experienced hyenas would quickly
teach their inexperienced partner
what they needed to do.
Interestingly, pairs consisting of
hyenas from opposing ends of the
hierarchical ladder were the quickest
to crack the problem.
Pairs of dominant females,
however, would engage in a power
struggle which prevented them from
solving the task quickly.
Key takeaways
• The importance of diversity:
Filling your team with like-minded
individuals doesn’t guarantee success.
For a team to work well together, you
need diversity. Not just ethnically,
but also culturally and cognitively.
• Experience is irreplaceable: There
is no substitute for on-the-job
experience. Look after your veteran
employees, as they will play a key
role in training the next generation.
‍ when they encounter a gap that must
Drawbacks
• Be wary of aspiration: When too
many people start reaching for the
same thing, it can quickly descend
clouds the collaborative process.
Ensure to keep tabs on the long-term
aspirations of your employees to
avoid these types of conflicts.
‍ • Clearly defined roles: Defining
6. Ants: punching above their
weight
These are tiny insects that live in
huge colonies of up to 10 million
ants. These enormous teams consist
of a queen (sometimes more than
one), female workers and male ants
known as drones.
Similarly to a hive of honey bees,
every ant plays a vital role in the
survival of the colony.
Queens cannot hunt, so they
have female worker ants to do
this for them. Worker ants cannot
which allow for the allotment or
registration of shares in the name of
certain individuals or entities, such
as nominees of beneficial owners
holding less than twenty percent
of shares, managers or trustees of
collective investment schemes,
executors of deceased estates, and
others defined by law.
The COBE Act empowers
companies to request information
from individuals about their
beneficial ownership status to ensure
compliance with Section 73(1).
Failure to comply with such requests
can result in restrictions on voting
and receiving dividends.
Enforcement mechanisms
The COBE Act establishes
strong enforcement mechanisms to
ensure compliance with beneficial
ownership requirements. In cases
where shares or interests are
allotted or transferred to nominees
in contravention of the law, the
reproduce, so they need a queen.
And the males? They play an
important job in scouting out new
locations to start a colony.
Size doesn’t matter
Ants are well-known for their
ability to carry objects much larger
than themselves. In fact, a single ant
is capable of lifting up to 20x its own
body weight.
That’s like you lifting an entire
giraffe above your head.
But despite their immense
strength, ants still rely on each other
to transport food back to the nest.
When a worker ant encounters a
nutritious meal, she will carry a piece
potent scent trail in her wake.
Once she’s alerted her fellow
workers, more ants follow the scent
trail and set about transporting
the food source back to the nest in
preparation for winter.
‍ ‘herds’, are led by matriarchs—the
Overcoming obstacles together
Ants are capable of communicating
complex strategies with just 10 to 20
signals.
Army ants are even capable of
building bridges with their bodies
be crossed.
The lead ant stops when it
encounters the gap, and the other
ants commence building a bridge
with their bodies until the gap is
closed.
Key takeaways
roles clearly, particularly in large
teams, allows employees to develop
expertise in their field of work. By
breaking jobs down into repeatable
task lists, your team can move
quickly and efficiently.
• Forward planning: Planning and
preparation are vital for the long-
term viability of your business.
Instead of resting on your laurels,
you need to be constantly aware
of industry changes and emerging
technology.
11
Insight
Registrar may serve a category 2
civil penalty order on the alleged
nominee. This order may require the
nominee to divest themselves of the
shares within a specified period, and
failure to comply could lead to those
shares becoming vested in the State.
Conclusion
Beneficial ownership is a critical
concept in contemporary corporate
governance and efforts to combat
financial crimes, money laundering,
and corruption. The Companies and
Other Business Entities Act provides
a robust framework for identifying,
disclosing, and regulating beneficial
ownership information. By
imposing obligations on companies
to maintain accurate records
and ensuring public access to
this information, the COBE Act
contributes to greater transparency
and accountability in the business
landscape. Effective implementation
of these provisions can significantly
contribute to a more trustworthy
and secure business environment.
The information and opinions
expressed above are for general
information only. They are not
intended to constitute legal or other
professional advice.
Kelvin Sabao is a registered legal
practitioner and he writes in his
personal capacity. He is a co-author
of a book entitled ‘The Directors’
Handbook in Zimbabwe’. For more
information, you can contact Kelvin
via email at: sabaokelvin@gmail.
com
‍
Drawbacks
· Lack of agility: Being too strict
when defining roles can cause a
team to become stagnant. For your
employees to feel inspired and
satisfied at work, they need to feel
that there are upward mobility
opportunities and chances to get
involved with important decisions.
‍
7. Elephants: surviving in the
wild
Elephants are among the world’s
smartest animals and they exhibit
phenomenal loyalty and teamwork.
Their brains are very large which
gives them high intelligence and
impressive memories. In fact, their
strong memory is a key component
to their survival.
Continuous learning and
development
Elephant groups, known as
eldest female figures. These wise
creatures rely on their knowledge and
experience to survive in dangerous
habitats.
In order to ensure the long-term
survival of the herd, the matriarchal
leaders continually teach the younger
members.
This involves teaching them which
foods are safe to eat, where to find
water, what constitutes a safe shelter,
which predators are most dangerous
and much more.
Paul Nyausaru is an OD
Practitioner and leadership coach.
For all your OD interventions and
leadership development training
you can get in touch with him on
WhatsApp/call +263774062756 or
Email pnyausaru@gmail.com
Chiedza Kadare is an OD
Practitioner. You can get in touch
with her on WhatsApp/call +263 77
283 0986 or Email chiedza.kadare@
gmail.com
12 Business Times 31 August - 6 September 2023

NMB BT
ENQUIRIES:
NMBZ HOLDINGS LIMITED
Gerald Gore, Chief Executive Officer, NMBZ Holdings Limited geraldg@nmbz.co.zw
NMBZ HOLDINGS LIMITED
Margret Chipunza, Chief Finance Officer, NMBZ Holdings Limited margretc@nmbz.co.zw
Website: http://www.nmbz.co.zw
2023 Half Year Condensed Reviewed Results Email: enquiries@nmbz.co.zw
Telephone: +263 8688003347

FINANCIAL SUMMARY

Inflation Adjusted Historical Cost

30 June 30 June 30 June 30 June

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Operating profit before impairment charge and loss on net

monetary position 227 013 391 28 288 773 263 188 345 9 193 500

Total comprehensive income 235 876 714 8 032 471 286 290 898 10 026 973

Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Deposits from customers 366 247 598 166 230 894 366 247 598 53 215 217

Loans and advances 363 276 512 144 583 450 363 276 512 46 285 257

Total shareholders’ funds and shareholders’ liabilities 379 478 035 136 161 554 332 856 879 39 155 091

CHAIRMAN’S STATEMENT

Operating Environment
During the period under review, the economy continued to show signs of resilience and recovery in spite of the economic challenges experienced
towards the end of the period. As of June 2023, month-on-month inflation reached a peak of 74.5% and the exchange rate depreciated by
755% since the beginning of the year. However, timely intervention by the authorities resulted in the issuance of both fiscal and monetary policy
measures resulting in inflation and exchange rate dissipating leading to general stability in prices. Following the implementation of various
measures, premiums on the exchange market dropped by 50% and a total of ZWL 300 billion was mopped out through the wholesale interbank
auction market. Below is a summary of some of the key measures announced by the authorities during the period under review:

a) Introduction of the Wholesale Foreign Currency Auction for the banks.

b) Collection of fees and charges by the Government and its Agencies in local currency.
c) Bank policy rate reviewed from 140 - 150%.
d) Payment of statutory obligations (duties, taxes) in local currency.
e) Issuance of gold-backed tokens.

In spite of the economic challenges experienced during the period, as of April 2023, the country’s total export receipts closed at USD 2 billion
with the mining sector accounting for 73% of the total value. In addition, the completion of the Hwange Power Station 7 and 8 units during the
period under review, added an additional 600MW and this improved the power supply, which is critical to the growth and development of the
economy.

Global Developments
The global economy is set to slow down in 2023 to 2.1% compared to 3.2% in 2022. Tight global financial conditions and subdued external
demand will weigh on growth across emerging and developing economies.

Financial performance
In compliance with International Financial Reporting Standards, inflation adjusted financial statements have been presented. Inflation was
measured using the indices published by ZimStat up to January 2023. Thereafter inflation figures which were not blended were obtained from
the guidelines issued by the Institute of Chartered Accountants of Zimbabwe to enable preparers of financial statements using non-blended
inflation indices derived using Total Consumption Poverty Line (TCPL) as the proxy to approximate the All-items index for the months from
February to June 2023.

The Group achieved operating income of ZWL 283 billion, up from ZWL 51 billion achieved in the comparative period. This was driven by a
significant increase in interest income and continued growth in fees and commission income.

Total assets increased by 145% to close the period at ZWL 1 trillion largely responding to inflation and movements in the exchange rate.
Loans and advances closed the period at ZWL 363 billion, up 151% from December 2022 levels. The Group continues to take a measured
approach to risk, as evidenced by the strong asset quality with an NPL ratio of 0.57% compared to 1.09% as at 31 December 2022. The reversal
in expected credit losses was ZWL 906 million for the period under review.

Deposits and other liabilities grew by 109% from December 2022 levels. This was largely reflecting the impact of the exchange rate depreciation
on USD deposits. The spot inter- bank mid rate has been used to convert foreign currency denominated transactions and the closing inter-bank
mid rate for all the closing balances. During the period under review, the closing exchange rate was 1 USD equivalent to ZWL 5 740. Other
closing rates to note are on note 27 of these financial statements.

Cost discipline remains a core focus for the Group in the wake of increased inflationary pressures.

Capital and leverage

The main subsidiary, NMB Bank Limited remains well capitalized with a total capital adequacy ratio of 27.79%. Risk weighted assets stood at
ZWL 1.2 trillion, up 675% from December 2022 levels.

The bank is in discussion with various providers of debt financing and the discussions are at various stages of completion. It is expected that
draw-downs will commence in the third quarter of 2023.

Corporate Social Investment

The Group contributed to various causes mainly targeted at the education sector during the period under review. 3500 students have benefitted
under the Group’s Skills for Success program which aims to bridge the soft skills gap by partnering with local high schools and institutions to
offer relevant career guidance. NMB conducted financial literacy programs for high school students as part of the 11th edition of Global Money
Week (GMW) celebrations under the theme “Plan your money, plant your future”.

In April 2023 the Group launched the “We Love to Serve” program, a staff-led CSR initiative aimed at building a true culture of service at NMB.
Activities under this program are to include cleaning old people’s homes, helping at SPCA, volunteering at prisons hospitals, children’s homes,
conservation and sustainability initiatives etc. This initiative will see every staff member participating in the Groups CSR initiatives.

Families and communities affected by children’s cancer were supported by sponsoring KidsCan Zimbabwe.

Digitalization Strategy
The Group is continuing to forge ahead with digitalization initiatives which are expected to reduce costs while increasing efficiencies. The
Group’s main subsidiary, NMB Bank Limited, has strengthened its core product offering by introducing a virtual card application platform which
eliminates paper from the card application process. An online query resolution platform was introduced which has made it easier for our clients
to lodge any queries they may have with timely resolution assured.

Dividend
The directors have resolved to declare an interim dividend of ZWL 556 cents per share. A notice with all relevant details will be sent to
shareholders in this regard.

Directorate
Mr. Pearson Gowero was appointed to the Board with effect from 26 April 2023. We look forward to his contribution to the Group. There were
no other changes to the directorate during the period under review.

Outlook
The domestic economy in 2023 is projected to grow by 6% compared to the initial projection of 3.8%. Strong economic performance will be
on the back of a recovery in the agricultural sector, improved power generation, mining, accommodation and services, ongoing infrastructure
projects, and diaspora remittances. Going forward, attainment of the macroeconomic stability will be primarily hinged on the continued tight
stance on money supply and accelerated liberalization of the foreign exchange market. The recently secured Afreximbank facility offers a
lifeline, sustained economic recovery.

The Group will continue to explore opportunities for revenue growth and value preservation while forging ahead to achieve its strategic
objectives.

Appreciation
I thank our valued clients, funding partners, shareholders, regulatory authorities and other key stakeholders for their continued support. To my
fellow board members, management and staff, I extend my heartfelt gratitude.

MR. B. A. CHIKWANHA
CHAIRMAN
22 August 2023

1 IN PURSUIT OF EXCELLENCE
31 August - 6 September 2023 Business Times 13

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Continued from Page 1

CHIEF EXECUTIVE OFFICER’S STATEMENT REVIEWER’S STATEMENT

Introduction These interim condensed consolidated financial statements have been reviewed by Ernst & Young Chartered Accountants (Zimbabwe) and
a qualified review conclusion issued thereon due to non-compliance with International Financial Reporting Standards IAS 21 “The Effects
The first half of 2023 was characterized by volatility on the macroeconomic side as inflation soared and the ZWL deteriorated steeply against
of Changes in Foreign Exchange Rates”; International Accounting Standards 8 “Accounting Polices, Changes in Accounting Estimates and
major currencies particularly in the second quarter of 2023. Despite these challenges, the Group successfully pursued its growth strategy as we
Errors”, International Financial Reporting Standards 9 “Financial instruments”, International Financial Reporting Standards 13 “Fair Valuation
setup new verticals and strengthened the core business. Post the reporting period, we have noted stability on the exchange rate and in-turn,
Measurement” and International Accounting Standards 29 “Financial Reporting in Hyper-inflationary Economies”. The reviewer’s report is
inflation as the authorities intervened with a raft of measures to strengthen and drive demand for the local currency.
available for inspection at the Holding Company’s registered office. The Reviewer did not issue a review report for the subsidiaries. The
engagement partner for this review is Mr Walter Mupanguri (PAAB Practicing Number 0367).
During the period under review, we realised our diversification strategy following the setup of two new standalone subsidiaries. In May 2023,
we launched our Property Company, NMB Properties Limited. This subsidiary was a spin-off from our property division under the Bank and by
the time we launched, we had established critical mass. The property company already has a number of development projects and properties CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
on the market with a pipeline that should keep them busy for the next two years. The Group is set to contribute significantly to the housing FOR THE SIX MONTHS ENDED 30 JUNE 2023
market covering all the spectrums including affordable low income, medium density and luxurious residential properties as well as commercial
real estate.
Inflation Adjusted Historical Cost*
The Group also set up a technology company, XPlug Solutions Limited which was launched in July 2023. The subsidiary was setup on the
backdrop of the successful in-house development of technology solutions for the banking subsidiary. These solutions range from mobile apps, Note 30 June 30 June 30 June 30 June
USSD, Internet banking solutions, digital customer on-boarding, agency banking, workflow, Robotics Processes Automation (RPA) solutions 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
and cybersecurity management tools. The capacity within the Group is immense and in line with the group expansion drive, we are now offering
technology solutions to organisations outside the Group, both in the financial and non-financial space. The subsidiary will also serve customers Restated
in the region and we have current engagements with financial institutions in Tanzania, Zambia and Mozambique who have signed up for our Reviewed Reviewed
digital transformation solutions. With the success registered to date, Xplug Solutions is targeting to provide technology solutions to all the 54
African countries and beyond, hence our mantra - “54 and more”.
Interest income 3 42 046 879 22 652 680 20 170 882 3 033 435

Interest expense ( 10 794 382) ( 7 661 570) ( 5 764 682) ( 1 038 645)

Net interest income 31 252 497 14 991 110 14 406 200 1 994 790

Fee and commission income 4.1 53 608 260 21 992 923 29 069 038 2 944 823

Net foreign exchange gains 97 700 137 7 246 171 100 018 213 1 458 922

Revenue 182 560 894 44 230 206 143 493 451 6 398 535

Other income 4.2 100 504 563 6 766 846 148 336 715 5 864 619

Operating income 283 065 458 50 997 052 291 830 166 12 263 153

Operating expenditure 5 ( 56 052 067) ( 22 708 279) ( 28 641 820) ( 3 069 654)

Operating income before impairment charge

and loss on net monetary position 227 013 391 28 288 773 263 188 346 9 193 500

Impairment losses on financial assets measured

at amortised cost 18.3 906 714 ( 1 270 604) 906 714 ( 259 036)

Loss on net monetary position ( 3 330 828) ( 10 566 560) - -

Profit before tax 224 589 278 16 451 608 264 095 060 8 934 464

Taxation 6 ( 29 645 012) ( 8 057 262) ( 32 082 376) ( 1 563 755)

PERFORMANCE REVIEW
The Group traded profitably for the period under review while the Balance sheet remained robust, anchored by USD denominated assets. Total
Profit for the period 194 944 266 8 394 347 232 012 684 7 370 709
comprehensive income amounted to ZWL 236 billion, which was a 2 837 % increase compared to ZWL 8 billion for the previous period. This was
largely driven by growth in non-funded income, revaluation gains on investment and foreign exchange gains on USD denominated net monetary
assets. Operating costs increased by 147% compared to the previous period. The Group continues to put in place measures to contain costs
Other comprehensive income
anchored on the digitalisation strategy.
Total assets closed the period at ZWL 1 trillion dollars again driven by revaluation gains and foreign exchange gains. The Group’s value Revaluation (Losses)/gains on land and
buildings, net of tax 4.3 40 932 448 ( 361 876) 54 278 214 2 656 264
preservation strategies paid off as the balance sheet and capital position remained solid notwithstanding the significant deterioration in the
exchange rate.

Total comprehensive income for the period 235 876 714 8 032 471 286 290 898 10 026 973
BUSINESS REVIEW
The banking subsidiary continued to make inroads into new markets and cement relationships with existing clients through the following main Earnings per share (ZWL cents)
business units:
- Basic 8.3 47 435 2 077 56 455 1 823

- Diluted 8.3 46 293 2 054 55 095 1 803

Digital Banking
-Headline 8.3 28 542 1 093 28 744 777
NMB Bank’s broader digital banking strategy has been to maximize value creation from the digital channels. To further enhance the
channels proposition, the bank is creating an ecosystem of value added services around the existing innovations. The first half of the
* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms of
year saw the launch of NMB Remit in May 2023, a local money transfer platform which is riding on our existing Connect digital platform/.
International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”. The Auditors have not expressed an opinion
To bring convenience to our customers, we added more billers on our connect platforms from a number of sectors including insurance,
on the Historical Cost information.
telecommunication and e-commerce. The digital channels have exhibited resilience and remained profitable despite the challenging
macro-economic environment. Generally volume growth has been experienced across all the digital platforms with digital banking
contributing ZWL 17.1 billion in revenue for the period under review.

Consumer Banking
The Retail bank continues to focus on increasing channels through which customers can access banking services. Our partnership with
ZimPost and other agencies continues to provide convenience to our customers while assist us in meeting our financial inclusion goals.
Our customers can access NMB Services in over 120 ZimPost branches and all this is done digitally via our Agency banking Portal.
All our agencies are riding on the same technology platforms as our branches and offering fast and convenient ways of banking. We
reopened the Kwekwe branch in February 2023 with a brand new digital feel to augment our presence in the Midlands province. The
Bancassurance unit launched the Gadziriro funeral cover on the 1st of April 2023 under our multiple agency license as we provide more
insurance options for our customers. Under the same thrust, the Bank is working on various new products and product enhancements
which will be launched in the second half of the year.

Business Banking
The exporters’ book continues to grow through various partnerships created during the previous financial period in particular the foreign
credit lines. In the current year, we are in negotiations with various providers of funding and we expect to conclude these discussions
in the last quarter of the year. The bank has been working with international and local institutions to meet the technical and funding
requirements of our business banking customers. We have signed up a number of partnerships in the Agriculture space which will be
rolled out in the second half of the year.

HUMAN CAPITAL
The diversification of the Group also underscores the need for the Group to recruit and retain the best skills in the various businesses. This
speaks to one of the key strategic pillars of People and Culture. Training and up-skilling of staff is a key priority within the Group. A number
of key staff have completed leadership courses through partnerships with ODDO BHF Bank (of Germany) as well as Rabo Bank (of the
Netherlands) during the period under review. We also run various staff exchange programs riding on the regional presence of some of our major
shareholders. Staff engagement continues to be one of my key priorities as this ensures that we move together with all staff members as we
implement our growth strategy.

STRATEGIC PRIORITIES
The Group is now focused on ensuring that the newly formed subsidiaries grow their market share and contribute meaningfully to the bottom line.
Value preservation remains one of our key priorities given the prevailing macroeconomic environment. We will continue to exploit opportunities
that come up locally and regionally while managing the attendant risks.

OUTLOOK
We will continue to closely watch the environment, in order to take advantage of opportunities while managing the downside. Running an
efficient and cost effective business will be key across the Group subsidiaries.

APPRECIATION
I am sincerely grateful to our valued clients, funding partners, shareholders, stakeholders and regulatory authorities for their various contributions
in our pursuit of delivering on our vision. I thank the NMBZ Holdings team, Board and Shareholders for their unwavering support.

MR. G. GORE
CHIEF EXECUTIVE OFFICER
22 August 2023

2 IN PURS UIT O F EXCELLENCE

14 Business Times 31 August - 6 September 2023

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Continued from Page 2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2023 FOR THE SIX MONTHS ENDED 30 JUNE 2023

Inflation Adjusted
Inflation Adjusted Historical Cost*
Share Capital Share Treasury Functional Share Option Revaluation Retained Total
Note 30 June 31 Dec 30 June 31 Dec Premium Shares Currency Reserve Reserve Earnings
2023 2022 2023 2022 Translation
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 Reserve

Restated ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
SHAREHOLDERS’ FUNDS Reviewed Reviewed

Balance as at 1 January 2022 61 700 13 057 786 ( 91) 4 962 835 354 876 15 582 108 60 348 844 94 368 060

Share capital 9.2.1 61 864 61 850 121 115

Share Premium 10 15 811 258 13 590 328 1 145 123 172 496 Total comprehensive income for the period - - - - - - 8 394 347 8 394 347

Treasury shares reserve 10 ( 1 331) ( 1 331) ( 394) ( 394) Revaluation of land and buildings,
net of tax - - - - - ( 361 876) - ( 361 876)
Functional currency translation reserve 10 4 962 835 4 962 835 11 620 11 620
Share issue - 28 089 ( 7 338) 20 751
Revaluation reserve 10 58 193 676 17 261 228 62 027 897 7 749 682
Employee share schemes – value of
employee services - - - - 226 183 - - 226 183
Share Option Reserve 10 4 462 145 803 559 1 566 306 129 569

Retained earnings 307 896 728 96 589 483 261 029 875 30 165 681
Balance at 30 June 2022 61 700 13 085 874 ( 91) 4 962 835 573 721 15 220 232 68 743 191 102 647 463

Total equity 372 401 701 133 267 954 325 780 545 38 228 768
Total comprehensive income for the period - - - - - - 29 097 960 29 097 960

Revaluation of land and buildings,

Subordinated term loan 11 7 076 334 2 893 599 7 076 334 926 323 net of tax - - - - - 2 040 996 - 2 040 996

Share buyback ( 1 240) ( 658 870) ( 660 110)

Scrip dividend paid 6 434 279 ( 434 285) -

Total shareholders’ funds and shareholders’
liabilities 379 478 035 136 161 553 332 856 879 39 155 091 Dividend paid - - - - - - ( 158 511) ( 158 511)

Redeemable ordinary shares 144 70 175 70 319

LIABILITIES Employee share schemes – value of

employee services - - - - 229 838 - - 229 838
Deposits 12 366 247 598 166 230 894 366 247 598 53 215 217

Other liabilities 13 58 919 077 36 835 807 57 938 192 11 792 185
Balance at 1 January 2023 61 850 13 590 328 ( 1 331) 4 962 835 803 559 17 261 228 96 589 483 133 267 954
Borrowings 14 178 713 850 66 461 630 178 713 850 21 276 250

Current tax liabilities 2 963 983 - 2 963 983 - Total comprehensive income for the period - - - - - - 194 944 266 194 944 266

Deferred tax liabilities 48 293 388 16 933 307 44 253 426 3 964 776 Revaluation of land and buildings,
net of tax - - - - - 40 932 438 - 40 932 438

Scrip dividend paid 13 2 220 930 - - - - ( 2 220 943) -

Total liabilities 655 137 896 286 461 638 650 117 050 90 248 428
Dividend paid - - - - - - ( 401 552) ( 401 552)

Employee share schemes – value of

employee services - - - - 3 658 585 - - 3 658 585

Total shareholders’ funds and liabilities 1 034 615 932 422 623 191 982 973 929 129 403 519
Balance at 30 June 2023 61 864 15 811 258 ( 1 331) 4 962 835 4 462 145 58 193 676 288 911 254 372 401 701

ASSETS Historical Cost*

Cash and cash equivalents 17 229 201 836 67 281 847 229 201 836 21 538 825 Share Capital Share Treasury Functional Share Option Revaluation Retained Total
Premium Shares Currency Reserve Reserve Earnings
Translation
Investment securities 15 96 249 484 52 335 782 96 249 484 16 754 166 Reserve

Other short term investments 16 17 490 353 - 17 490 353 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Loans and advances 18 363 276 512 144 583 450 363 276 512 46 285 257

Other assets 19 39 570 081 27 622 145 17 540 063 8 504 329 Balance as at 1 January 2022 84 19 122 ( 7) 11 620 27 768 1 915 997 5 085 120 7 059 704

Assets held for sale 380 629 1 188 987 380 629 380 629
Total comprehensive income for the period - - - - - - 7 370 709 7 370 709
Trade and other investments 2 383 082 796 731 2 383 082 255 056
Revaluation of land and buildings,
Current tax assets - 137 592 - 44 048 net of tax - - - - - 2 656 264 - 2 656 264

Investment properties 20 169 290 624 70 653 418 169 290 624 22 618 160 Share issue 0 5 727 ( 1 496) 4 231

Intangible assets 21 3 041 337 3 094 879 20 095 23 147 Employee share schemes – value of
employee services - - - - 72 407 - - 72 407
Property and equipment 22 113 731 993 54 928 358 87 141 252 12 999 902

Balance at 30 June 2022 84 24 848 ( 7) 11 620 98 680 4 572 261 12 455 829 17 163 315

Total assets 1 034 615 932 422 623 191 982 973 929 129 403 519

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms Total comprehensive income for the period - - - - - - 18 097 797 18 097 797

of International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”. Revaluation of land and buildings,
net of tax - - - - - 3 177 421 - 3 177 421

Share buy back - - ( 387) - - - ( 205 933) ( 206 320)

Scrip dividend paid 2 133 341 ( 133 343) -

MR. B. A. CHIKWANHA MR. G. GORE Dividend paid ( 48 670) ( 48 670)

CHAIRMAN CEO
22 August 2023 22 August 2023 Redeemable ordinary shares 29 14 306 14 335

Employee share schemes – value of

employee services - - - - 30 890 - - 30 890

Balance at 1 January 2023 115 172 495 ( 394) 11 620 129 570 7 749 682 30 165 680 38 228 767

Total comprehensive income for the period - - - - - - 232 012 684 232 012 684

Revaluation of land and buildings,

net of tax - - - - - 54 278 214 - 54 278 214

Scrip dividends 6 972 628 - - - - ( 972 634) ( 0)

Dividend paid - - - - - - ( 175 855) ( 175 855)

Employee share schemes – value of

employee services 1 436 735 - 1 436 735

Balance at 30 June 2023 121 1 145 123 ( 394) 11 620 1 566 306 62 027 897 261 029 875 325 780 544

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms
of International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”.

3 I N P U R SU I T O F E X C E L L E N C E
31 August - 6 September 2023 Business Times 15

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Continued from Page 3

CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2023

1. GENERAL INFORMATION
Inflation Adjusted Historical Cost*

Notes 30 June 30 June 30 June 30 June The NMBZ Holdings Limited Group (the Group) comprises the company (NMBZ Holdings Limited) and wholly owned subsidiaries, NMB
2023 2022 2023 2022 Bank Limited (the Bank), NMB Properties Limited and Xplug Solutions Limited.
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Reviewed Restated
NMB Bank Limited was established in 1993 as a merchant bank incorporated under the Companies and Other Business Entities Act
CASH FLOWS FROM OPERATING
ACTIVITIES Reviewed (Chapter 24:31) of Zimbabwe and is now registered as a commercial bank in terms of the Banking Act (Chapter 24:20) of Zimbabwe.
It operates through branches and agency network in Harare, Bulawayo, Masvingo, Kwekwe, Mutare, Gweru, Bindura, Chitungwiza and
Chinhoyi.
Profit before taxation 224 589 278 16 451 608 264 095 061 8 934 464
NMB Properties Limited is a property development and services company established in 2023. It was set up to broaden the NMBZ
Holdings product offering suite and optimize a significant portfolio of properties and real estate opportunities within and beyond the Group.
Xplug Solutions Limited services is a subsidiary of the NMBZ Holding Group whose main thrust is to use technology to transform any size
Non-cash items: of business into achieving business growth, agility and composability.
- Net monetary loss 3 330 828 10 566 560 - -
The Holding Company is incorporated and domiciled in Zimbabwe and is an investment holding company. Its registered office address is
- Depreciation (excluding right of use assets) 5 1 321 998 254 196 602 948 32 877 19207 Liberation Legacy Way, Borrowdale, Harare. The Bank is exposed to the following risks in its operations: liquidity risk, credit risk,
market risk, operational risk, foreign currency exchange rate risk and interest rate risk.
- Depreciation –Right of use assets 5 419 074 507 567 164 571 84 405

- Amortisation of intangible assets 5 53 534 151 929 3 051 20 054

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Impairment losses on financial assets
measured at amortised costs 18.3 ( 906 714) 1 270 604 ( 906 714) 259 036
2.1. ACCOUNTING CONVENTION

- Investment properties fair value movement 20 ( 98 681 619) ( 6 486 195) ( 146 657 504) ( 5 828 904)
Statement Of Compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard
- Trade and other investments fair value (IAS) 34, Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant
movements adjustment - ( 1 636 177) - ( 99 532) to an understanding of the changes in financial position of the Group since the last annual consolidated financial statements as at 31
December 2022 and for the half year ended 30 June 2023. These condensed consolidated interim financial statements do not include all
- Profit on disposal of property and equipment ( 288 773) - ( 158 794) - the information required for the full annual financial statements prepared in accordance with International Financial Reporting Standards.
These condensed consolidated interim financial statements were approved by the Board of Directors on 22 August 2023.
- Unrealised foreign exchange gain ( 102 113 214) ( 3 570 773) ( 102 113 214) ( 727 966)

- Interest capitalised on subordinated term loan - - - -

2.1.1. BASIS OF PREPARATION
- Non-cash employee benefits expense – share-
based payments 3 658 585 355 168 1 436 735 72 407 The condensed consolidated financial statements including comparatives, have been prepared under the inflation adjusted accounting
basis to account for changes in the general purchasing power of the ZWL. IAS 29 requires that financial statements prepared in the
currency of a hyper-inflationary economy be “stated in terms of a measured unit current at the balance sheet date and that corresponding
Operating cash flows before changes in figures for previous periods be stated in the same terms as the “ latest balance sheet date. The restatement has been calculated by means
operating assets and liabilities 31 382 976 17 864 488 16 466 138 2 746 840 of conversion factors derived from the consumer price index (CPI) prepared by the Zimbabwean Statistical Office up to 31 January 2023.

On the 3rd of March, government issued SI 27 of 2023 which defined the term “rate of inflation” and introduced a new inflation measurement
Changes in operating assets and liabilities method. Consequently, Zimbabwe National Statistics Agency (ZimStat), stopped reporting ZWL inflation and CPI figures and only released
blended CPI figures. This change created a challenge for the Group as it had been using the ZWL CPI for reporting inflation adjusted
Increase/(decrease) in deposits 798 232 572 281 631 710 313 032 381 22 974 708 historical figures. The use of indices issued by ZimStat makes comparability possible for the banking sector as a whole and the same
applies to other industries. The standard provides that each business may determine an index for the purpose of compliance with IFRS
Increase/(decrease) in other liabilities 47 126 893 ( 102 451 394) 46 146 008 12 201 028
in the absence of official statistics.
(Increase)/decrease in loans and advances ( 830 369 812) ( 154 767 573) ( 325 635 220) ( 12 460 893)
The Group has considered different approaches for coming up with the appropriate indices also taking into account guidance from the
(Increase)/decrease in other assets ( 11 947 935) 6 203 006 ( 9 035 734) ( 4 952 778) Institute of Chartered Accountants of Zimbabwe (ICAZ). We consider the indices we have adopted reasonable for use in restating our
(Increase)/decrease in assets held for sale - - ( 0) - historical numbers. It is still unclear as to when ZimStat will start publishing the CPI indices again. It is acknowledged that the determination
of CPI is an area of significant judgement.

The indices used in the restatement of financial statements are shown below
Net cash generated from operations 34 424 692 48 480 237 40 973 572 20 508 905

Dates Indices Conversion factor

Tax and dividends
31-Dec-20 2474.52 17.26
Corporate tax paid ( 2 749 320) ( 5 442 313) ( 1 583 226) ( 434 520)
30-Jun-21 2986.44 14.30
Dividends paid ( 401 552) ( 175 855)
31-Dec-21 3977.46 10.74

30-Jun-22 8707.35 14.30

Net cash inflow from operations 31 273 821 43 037 924 39 214 491 20 074 385
31-Dec-22 13672.91 3.12

30-Jun-23 42710.72 1.00

CASH FLOWS FROM INVESTING ACTIVITIES

(Acquisition) of investment securities ( 220 761 280) - ( 86 693 450) -

The indices have been applied to the historical costs of transactions and balances as follows:
Disposal of investment securities 18 788 341 - 7 707 610 -
• All comparative figures as of and for the periods ended 30 June 2022, 31 December 2022, have been restated by applying the change
Proceeds on disposal of property and in the index to 30 June 2023;
equipment 288 773 - 158 794 -
• Income statement transactions have been restated by applying the change in the index from the approximate date of the transactions to
Acquisition of property and equipment 22 ( 9 563 833) ( 2 972 326) ( 3 676 967) ( 423 075) 30 June 2023;
• Gains and losses arising from the monetary assets or liability positions have been included in the income statement;
Investment securities held to maturity - ( 17 541 961) - ( 2 181 183) • Non-monetary assets and liabilities have been restated by applying the change in the index from the date of the transaction to 30 June
Acquisition of investment properties 20 ( 208 955) ( 5 088 489) ( 96 933) ( 714 478)
2023;
• Cost and accumulated depreciation for property and equipment have been restated by applying the change in the index from the date of
their purchase or re-assessment to 30 June 2023;
• Equity has been restated by applying the change in index from the date of issue to 30 June 2023;
Net cash used in investing activities ( 211 456 953) ( 25 602 777) ( 82 600 946) ( 3 318 736)
The net impact of applying the procedures above is shown in the statement of comprehensive income as the gain or loss on net monetary
position.
CASH FLOWS FROM FINANCING
ACTIVITIES IAS 29 discourages the publication of historical results as a supplement to the inflation adjusted results. However, historical results have been
Repayment of lease liabilities ( 11 410 734) ( 565 156) ( 4 481 021) ( 71 009) published as additional information for the users of the Group’s financial statements. The Auditors have not expressed an opinion on the
historical results.
Borrowings raised 28 406 577 380 233 878 655 159 663 849 29 385 632
Functional and presentation currency
Borrowings repaid 28 ( 5 426 783) ( 111 615 994) ( 2 226 249) ( 14 023 967)
For the purposes of the condensed consolidated financial statements, the results and financial position of the Group are expressed in Zimbabwe
Subordinated loans term repaid ( 492 597) ( 185 312) dollars (ZWL) which is the functional currency of the Group, and the presentation currency for the consolidated financial statements.

Proceeds from issues of shares - 20 753 ( 0) 4 231 Comparative financial information

The interim financial statements comprise the consolidated statement of financial position, comprehensive income, statement of changes in
equity and cash flows. The comparative information covers a period of six months to 30 June 2022.
Net cash outflow from financing activities 389 247 266 121 718 258 152 771 267 15 294 887

2.2. Basis Of Consolidation

Net increase in cash and cash equivalents 209 064 133 139 153 405 109 384 812 32 050 536 The Group financial results incorporate the financial results of the Company and its subsidiaries. Subsidiaries are investees controlled by the
Group. The Group controls an investee if it is exposed to, or has rights to, variable returns from its involvement with the investee. The financial
Net foreign exchange and monetary statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date when
adjustments on cash and cash equivalents ( 47 144 145) 19 251 464 98 278 200 245 793
control ceases. The financial results of the subsidiaries are prepared for the same reporting period as the parent company, using consistent
Cash and cash equivalents at beginning of accounting policies. All intra-group balances, transactions, income and expenses; profits and losses resulting from intra-group transactions that
the period 67 281 847 138 966 21 538 825 4 872 262 are recognised in assets and liabilities are eliminated in full. When the Group loses control over a subsidiary, it derecognises the assets and
liabilities of the subsidiary, and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognised in
profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
Cash and cash equivalents at the end of the
period 229 201 836 158 543 835 229 201 836 37 168 591
2.3. Use of estimates and judgements

ADDITIONAL INFORMATION ON OPERATING In preparation of the Group financial statements, Directors have made judgments, estimates and assumptions that affect the application of
CASH FLOWS FROM INTEREST accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Interest received** 36 462 136 22 240 060 14 586 139 2 620 815
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Interest paid (excluding interest on leases) ** ( 4 791 940) ( 7 412 683) 5 464 ( 796 162)
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the six months
Lease finance costs paid** ( 323 338) ( 28 144) ( 91 041) ( 21 740) ended 30 June 2023 is included in the following notes:

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms
of International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”.
** The prior year comparatives have been retrospectively restated to present interest received, interest paid and interest on leases separately.
The line items were previously aggregated as a single line item in the prior period cash flow statement and have now been retrospectively
disclosed separately.
2.3.1. Deferred tax
Provision for deferred taxation is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Temporary differences arising out of the initial recognition of assets
or liabilities and temporary differences on initial recognition of business combinations that affect neither accounting nor taxable profit are not
recognised. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets
and liabilities, using tax rates enacted or substantively enacted at the reporting date. Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.

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2.3.2. Valuation of properties 2.4. STANDARDS ISSUED AND EFFECTIVE DATE

Land and buildings are measured at revalued amount less accumulated depreciation on buildings and any impairment losses. Revaluation of a) New standards and amendments – applicable 1 January 2023
property was performed, by a registered professional valuer.
The following standards and interpretations apply for the first time to financial reporting periods commencing on or after 1 January 2023:

2.3.3. Intangible assets Standard Effective Date Executive Summary

IFRS 17 Insurance 1 January 2023 IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. It requires a current
Intangible assets are initially recognised at cost. Subsequently the assets are measured at cost less accumulated amortisation and any
Contracts (deferred from 1 January measurement model where estimates are remeasured in each reporting period. Contracts are measured using
impairment loss. 2021) the building blocks of:

2.3.4. Impairment losses on financial instruments • discounted probability-weighted cash flows

• an explicit risk adjustment, and
• a contractual service margin (CSM) representing the unearned profit of the contract which is
The Group and Bank recognises loss allowances for Expected Credit Losses (ECLs) on the following financial instruments that are not measured recognised as revenue over the coverage period.
at Fair Value through Profit or Loss (FVTPL):
• loans and advances to banks; The standard allows a choice between recognising changes in discount rates either in the statement of profit
• loans and advances to customers; or loss or directly in other comprehensive income. The choice is likely to reflect how insurers account for their
financial assets under IFRS 9.
• debt investment securities;
• lease receivables; An optional, simplified premium allocation approach is permitted for the liability for the remaining coverage for
• loan commitments issued; and short duration contracts, which are often written by non-life insurers
• financial guarantee contracts issued.
There is a modification of the general measurement model called the ‘variable fee approach’ for certain
contracts written by life insurers where policyholders share in the returns from underlying items. When applying
No impairment loss is recognised on equity investments. With the exception of purchased or originated credit-impaired (POCI) financial assets the variable fee approach, the entity’s share of the fair value changes of the underlying items is included in
(which are considered separately below), ECLs are measured through a loss allowance at an amount equal to: the CSM. The results of insurers using this model are therefore likely to be less volatile than under the general
• 12-month ECL, i.e. lifetime ECL that result from those default events on the financial instrument that are possible within 12 months after model.
the reporting date, (referred to as Stage 1); or
• Full lifetime ECL, i.e. lifetime ECL that result from all possible default events over the life of the financial instrument, (referred to as Stage The new rules will affect the financial statements and key performance indicators of all entities that issue
insurance contracts or investment contracts with discretionary participation features.
2 and Stage 3).
Targeted amendments made in July 2020 aimed to ease the implementation of the standard by reducing
A loss allowance for full lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has increased significantly implementation costs and making it easier for entities to explain the results from applying IFRS 17 to investors
since initial recognition. For all other financial instruments, ECLs are measured at an amount equal to the 12-month ECL. and others. The amendments also deferred the application date of IFRS 17 to 1 January 2023.

2.3.5. Determination of the functional currency
In October 2018, the Monetary Authorities instructed financial institutions to separate bond notes and USD accounts and indicated that
corporates and individuals could proceed to open Nostro Foreign Currency Accounts (FCA), for foreign currency holdings, which were now being
exclusively distinguished from the existing RTGS based accounts. However, it should be noted that at the time of this policy pronouncement, the
Monetary Authorities did not state that they had introduced a new currency for Zimbabwe, which actually meant that the USD remained as the
currency of reference. By 31 December 2018, there had been no pronouncement by the Monetary Authorities to the effect that there had been
a new currency introduced, which could be considered as the country’s functional currency.
On 22 February 2019, the Reserve Bank of Zimbabwe (RBZ) issued an Exchange Control Directive, RU 28 of 2019 which established an
interbank foreign exchange market to formalise the buying and selling of foreign currency through the Banks and Bureau de change. In order
to establish an exchange rate between the current monetary balances and foreign currency, the Monetary Authorities denominated the existing
RTGS balances in circulation as RTGS Dollars. Initial trades on 22 February 2019 were at USD1: RTGS$2.5.
Further amendments made in December 2021 added a transition option that permits an entity to apply an
optional classification overlay in the comparative period(s) presented on initial application of IFRS 17. The
classification overlay applies to all financial assets, including those held in respect of activities not connected
to contracts within the scope of IFRS 17. It allows those assets to be classified in the comparative period(s) in
a way that aligns with how the entity expects those assets to be classified on initial application of IFRS 9. The
classification can be applied on an instrument-by-instrument basis.
No significant impact is expected from these amendments.
Disclosure of Accounting 1 January 2023 The IASB amended IAS 1 to require entities to disclose their material rather than their significant accounting
Policies – Amendments policies. The amendments define what is ‘material accounting policy information’ and explain how to identify
to IAS 1 and IFRS when accounting policy information is material. They further clarify that immaterial accounting policy information
Practice “Statement 2” does not need to be disclosed. If it is disclosed, it should not obscure material accounting information.
To support this amendment, the IASB also amended IFRS Practice Statement 2 Making Materiality
Judgements to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
No significant impact has resulted from these amendments.

On the same date, Statutory Instrument 33 of 2019 was also issued and it specified that for accounting and other purposes, all assets and Definition of Accounting 1 January 2023 The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors clarifies how
liabilities that were in USD immediately before the 22nd of February 2019 were deemed to have been valued in RTGS Dollars at a rate of 1:1 Estimates – companies should distinguish changes in accounting policies from changes in accounting estimates.
with the USD. Amendments to The distinction is important, because changes in accounting estimates are applied prospectively to future
IAS 8 transactions and other future events, whereas changes in accounting policies are generally applied
retrospectively to past transactions and other past events as well as the current period.
On 24 June 2019, the Monetary Authorities announced that the multi-currency regime, which the country was operating in since February 2009
had been discontinued and the country had adopted a mono-currency regime meaning that the sole legal tender would be the Zimbabwe Dollar No significant impact has resulted from these amendments.
(ZWL).
Deferred Tax related to 1 January 2023 The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that,
Assets and Liabilities on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will
On 26 March 2020, the Reserve Bank of Zimbabwe in a press statement announced various interventions in response to the financial arising from a Single typically apply to transactions such as leases of lessees and decommissioning obligations, and will require the
vulnerabilities caused by the COVID-19 pandemic. One of the measures announced therein was the authorization of the use of free-funds in Transaction – recognition of additional deferred tax assets and liabilities.
paying for goods and services, in terms of Statutory Instrument (SI) 85 of 2020. On 24 July 2020, the Government of Zimbabwe issued Statutory Amendments to IAS 12
Instrument (SI) 185 of 2020, which granted permission to display, quote or offer prices for all goods and services in both Zimbabwe dollars and The amendment should be applied to transactions that occur on or after the beginning of the earliest
foreign currency at the interbank exchange rate. comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is
probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period
for all deductible and taxable temporary differences associated with:
On 23 June 2020, the Reserve Bank of Zimbabwe introduced the Foreign Exchange Auction System, effectively abandoning the fixed foreign • right-of-use assets and lease liabilities, and
currency exchange rate regime which had been prevailing for the greater part of 2020. Significant trades have been recorded on the platform • decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part
and significant movements in the exchange rate have been resultantly recorded. of the cost of the related assets

The cumulative effect of recognising these adjustments is recognised in retained earnings, or another
In light of the developments summarised above, the Directors concluded that the Group’s functional currency remains the Zimbabwe dollar component of equity, as appropriate.
(ZWL) following its change from USD with effect from 22 February 2019.
IAS 12 did not previously address how to account for the tax effects of on-balance sheet leases and
similar transactions and various approaches were considered acceptable. Some entities may have already
accounted for such transactions consistent with the new requirements. These entities will not be affected by
2.3.6. Lease arrangements the amendments.

The Directors exercised significant judgement on determining whether the various contractual relationships which the Group is party to, contain No significant impact has resulted from these amendments.
lease arrangements which fall into the scope of IFRS 16. Significant judgement was also exercised in determining whether the Group is
Sale or contribution N/A The IASB has made limited scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28
reasonably certain that it will exercise extension options present in lease contracts as well as the determination of incremental borrowing rates of assets between Investments in Associates and Joint Ventures.
applied in determining the lease liability. an investor and its
associate or joint venture The amendments clarify the accounting treatment for sales or contribution of assets between an investor
– Amendments to IFRS and their associates or joint ventures. They confirm that the accounting treatment depends on whether the
10 and IAS 28 non-monetary assets sold or contributed to an associate or joint venture constitute a ‘business’ (as defined in
IFRS 3 Business Combinations).

Where the non-monetary assets constitute a business, the investor will recognise the full gain or loss on
the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is
recognised by the investor only to the extent of the other investor’s interests in the associate or joint venture.
The amendments apply prospectively.

In December 2015, the IASB decided to defer the application date of this amendment until such time as the
IASB has finalised its research project on the equity method.

No significant impact has resulted from these amendments.

b) Forthcoming requirements
The following standards and interpretations had been issued but were not mandatory for reporting periods ending on 30 June 2023

Standard Effective Date Executive Summary

Classification of 1 January 2024 The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are
Liabilities as Current or (deferred from 1 January classified as either current or non-current, depending on the rights that exist at the end of the reporting period.
Non-current – 2023 having been Classification is unaffected by the entity’s expectations or events after the reporting date (e.g. the receipt
Amendments to IAS 1 deferred again from 01 of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the
January 2022) ‘settlement’ of a liability.

The amendments could affect the classification of liabilities, particularly for entities that previously considered
management’s intentions to determine classification and for some liabilities that can be converted into equity.

They must be applied retrospectively in accordance with the normal requirements in IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors.

Since issuing these amendments, the IASB issued an exposure draft proposing further changes and the
deferral of the amendments until at least 1 January 2024.

No significant impact has resulted from these amendments.

Non-current liabilities 1 January 2024 Amendments made to IAS 1 Presentation of Financial Statements in 2020 clarified that liabilities are classified
with covenants – as either current or non-current, depending on the rights that exist at the end of the reporting period.
Amendments to IAS 1 Classification is unaffected by the entity’s expectations or events after the reporting date (e.g. the receipt
of a waiver or a breach of covenant). The amendments also clarified what IAS 1 means when it refers to
the ‘settlement’ of a liability. The amendments were due to be applied from 1 January 2022. However, the
effective date was subsequently deferred to 1 January 2023 and then further to 1 January 2024. In October
2022, the IASB made further amendments to IAS 1 in response to concerns raised about these changes to
the classification of liabilities as current or non-current. The new amendments clarify that covenants of loan
arrangements will not affect classification of a liability as current or non-current at the reporting date if the
entity must only comply with the covenants after the reporting date. However, if the entity must comply with a
covenant either before or at the reporting date, this will affect the classification as current or non-current, even
if the covenant is only tested for compliance after the reporting date. The amendments require disclosures if
an entity classifies a liability as non-current and that liability is subject to covenants that the entity must comply
with within 12 months of the reporting date. The disclosures include:

• the carrying amount of the liability

• information about the covenants, and
• facts and circumstances, if any, that indicate that the entity may have difficulty complying with the
covenants.

The amendments must be applied retrospectively in accordance with the normal requirements in IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors. Special transitional rules apply if an entity
had early adopted the 2020 amendments regarding the classification of liabilities as current or non-current

Lease liability in sale 1 January 2024 In September 2022, the IASB finalised narrow-scope amendments to the requirements for sale and leaseback
and leaseback – transactions in IFRS 16 Leases which explain how an entity accounts for a sale and leaseback after the date
amendments to IFRS 16 of the transaction.

The amendments specify that, in measuring the lease liability subsequent to the sale and leaseback, the
seller-lessee determines ‘lease payments’ and ‘revised lease payments’ in a way that does not result in the
seller-lessee recognising any amount of the gain or loss that relates to the right of use that it retains. This could
particularly impact sale and leaseback transactions where the lease payments include variable payments that
do not depend on an index or a rate.

5 I N P URSUI T O F E XCE L L E NCE

31 August - 6 September 2023 Business Times 17

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* Included in Staff costs - salaries, allowances and related costs are employee benefit costs relating share based payments which are as follows;
Standard Effective Date Executive Summary

Sale or contribution N/A The IASB has made limited scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Employee benefit costs - share based payments 3 658 585 355 168 1 436 735 72 407
of assets between an Investments in Associates and Joint Ventures.
investor and its associate
or joint venture – The amendments clarify the accounting treatment for sales or contribution of assets between an investor
Amendments to IFRS 10 and their associates or joint ventures. They confirm that the accounting treatment depends on whether the 6. TAXATION
and IAS 28 non-monetary assets sold or contributed to an associate or joint venture constitute a ‘business’ (as defined in
IFRS 3 Business Combinations).
Inflation Adjusted Historical Cost
Where the non-monetary assets constitute a business, the investor will recognise the full gain or loss on
the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is
recognised by the investor only to the extent of the other investor’s interests in the associate or joint venture. 30 June 30 June 30 June 30 June
The amendments apply prospectively. *** In December 2015, the IASB decided to defer the application date of 2023 2022 2023 2022
this amendment until such time as the IASB has finalised its research project on the equity method. ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Income tax expense

2.5. GOING CONCERN Current tax 4 380 403 1 776 192 4 380 403 362 109

Deferred tax 25 264 608 6 281 070 27 701 973 1 201 647
The Directors have assessed the ability of the Group and Company to continue operating as a going concern and believe that the preparation
of these financial statements on a going concern basis is still appropriate.
29 645 012 8 057 262 32 082 376 1 563 755
3. INTEREST INCOME

Inflation Adjusted Historical Cost 7. IMPAIRMENT LOSSES ON FINANCIAL ASSETS MEASURED AT AMORTISED COST

30 June 30 June 30 June 30 June Impairment losses are calculated by estimating the expected credit losses for all financial assets (including loan commitments and guarantees)
2023 2022 2023 2022 measured at amortised cost or fair value through OCI (FVOCI). ECLs arising from financial assets measured at armotised cost and at FVOCI
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
are recognized in profit or loss. However, the loss allowance in respect of assets measured at FVOCI shall not reduce the carrying amount of
the financial asset in the Statement of Financial Position but will be accumulated in a reserve through OCI. The aggregate impairment losses
which are made during the year are dealt with as per paragraph 19.3.
Loans and advances to banks 642 893 159 236 446 204 21 962
7.1. Lifetime expected credit losses
Loans and advances to customers 38 694 111 18 441 408 18 486 383 2 479 482

Investment securities 2 709 876 4 052 036 1 238 295 531 990 Lifetime ECLs are recognized where the Bank’s counter-party to a financial asset has been classified as default as defined in the Bank’s
accounting and credit policies. Financial assets are written off against lifetime ECL provisions once the probability of recovering any significant
amounts becomes remote.
42 046 879 22 652 680 20 170 882 3 033 435
7.2. Twelve month expected credit losses

4. NON INTEREST INCOME AND OTHER COMPREHENSIVE INCOME The 12-Month ECL relates to the day 1 impairment provisions on financial assets as well as financial assets which are considered not to have
had a significant increase in credit risk as defined in the Bank’s accounting and credit policies.

7.3. Regulatory guidelines and International Financial Reporting Standards requirements

4.1. Fee and Commission Income
The Banking Regulations 2000 gives guidance on provisioning for doubtful debts and stipulates certain minimum percentages to be applied to
the respective categories of the loan book.
Inflation Adjusted Historical Cost

30 June 30 June 30 June 30 June Financial Instruments IFRS 9, prescribes the provisioning for impairment losses based on the expected credit losses from the expected cash
2023 2022 2023 2022 flows from financial assets held by the bank, including guarantees and loan commitments.
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
The two prescriptions are likely to give different results. The Group has taken the view that where the IFRS 9 charge is less than the amount
provided for in the Banking Regulations, the difference is recognised directly in equity as a transfer from retained earnings to a regulatory
Retail banking customer fees 33 781 635 4 418 220 19 290 543 619 776 reserve and where it is more, the full amount will be charged to the profit or loss.

Corporate banking credit related fees 531 269 1 138 417 205 504 146 764 7.4. Suspended interest
Financial guarantee fees 2 039 851 760 182 1 429 640 101 403
Interest on loans and advances is accrued to income until such time as reasonable doubt exists about its collectability, thereafter and until all
International banking commissions 359 188 3 417 074 194 786 482 097 or part of the loan is written off, interest continues to accrue on customers’ accounts, but is not included in income. Such suspended interest is
deducted from loans and advances in the statement of financial position. This policy meets the requirements of the Banking Regulations 2000
Digital banking fees 16 896 316 12 259 031 7 948 564 1 594 783
issued by the RBZ.

8. EARNINGS PER SHARE

53 608 260 21 992 922 29 069 038 2 944 823

Basic earnings per share is calculated by dividing the profit for the period attributable to ordinary equity holders of NMBZ Holdings Limited by
the weighted average number of ordinary shares outstanding during the period.
Timing of revenue recognition:

- At a point in time 53 076 991 20 854 506 28 863 534 2 798 058
Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of NMBZ Holdings Limited adjusted for the
after tax effect of:
- Over time 531 269 1 138 417 205 504 146 764 a) any dividends or other items related to dilutive potential ordinary shares deducted in arriving at profit or loss attributable to ordinary equity
holders of the parent entity;
b) any interest recognised in the period related to dilutive potential ordinary shares; and
53 608 260 21 992 922 29 069 038 2 944 823 c) any other changes in income or expense that would result from the conversion of the dilutive potential ordinary shares; by the weighted
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued
on the conversion of all the dilutive potential ordinary shares into ordinary shares.

4.2. Other Income

Headline earnings per share are calculated by dividing the profit attributable for the period to the ordinary equity holders adjusted for the after
tax effect of;
a) fair value gains/ (losses) on trade and other investments;
Inflation Adjusted Historical Cost
b) profit /(loss) on disposal of property and equipment during the period under review.
30 June 30 June 30 June 30 June
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 8.1. Earnings

Fair value gains on investment properties 98 681 619 6 486 195 146 657 504 5 828 904 Inflation Adjusted Historical Cost*

Rental income 532 825 267 363 330 543 34 125 30 June 30 June 30 June 30 June
2023 2022 2023 2022
Other operating income 1 290 120 13 288 1 348 669 1 590 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

100 504 563 6 766 846 148 336 717 5 864 619 Profit for the period 194 944 266 8 394 347 232 012 684 7 370 709

Headline earnings 120 191 557 4 468 050 121 045 880 3 177 712

4.3. Other comprehensive income/(loss)

8.2. Number of shares

Inflation Adjusted Historical Cost

30 June 30 June 30 June 30 June 8.2.1. Basic earnings per share

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Inflation Adjusted Historical Cost*

30 June 30 June 30 June 30 June

Revaluations of land and buildings 47 027 921 ( 480 706) 69 679 569 3 470 879 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Tax effect ( 6 095 473) 118 831 ( 15 401 354) ( 814 615)

Weighted average number of ordinary shares for

40 932 448 ( 361 876) 54 278 214 2 656 264 basic earnings per share 404 397 333 404 171 689 404 397 333 404 171 689

Scrip dividend 6 571 417 50 404 6 571 417 50 404

5. OPERATING EXPENDITURE Treasury shares - ( 14 000) - ( 14 000)

The operating profit is after recognising the following:

410 968 749 404 208 093 410 968 749 404 208 093
Inflation Adjusted Historical Cost

30 June 30 June 30 June 30 June

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Administration costs 27 066 034 10 339 244 14 199 465 1 418 133

Depreciation (excluding right of use assets) 1 321 998 254 196 602 948 32 877

Amortisation of intangible assets 53 534 151 929 3 051 20 054

Depreciation – right of use assets 419 074 507 567 164 571 84 405

Staff costs – salaries, allowances and related

costs* 27 191 426 11 455 343 13 671 784 1 514 186

56 052 067 22 708 279 28 641 820 3 069 654

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8.2.2. Diluted earnings per share 10. CAPITAL RESERVES

Inflation Adjusted Historical Cost Inflation Adjusted Historical Cost

30 June 30 June 30 June 30 June 30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

GROUP

Number of shares for basic earnings 410 968 749 404 208 093 410 968 749 404 208 093 Share premium 15 811 258 13 590 328 1 145 123 172 496

Effect of dilution: Treasury shares ( 1 331) ( 1 331) ( 394) ( 394)

Share options approved but not granted (ESOS) 10 141 568 4 565 840 10 141 568 4 565 840 Share option reserve 4 462 145 803 559 1 566 306 129 569

Revaluation reserve 58 193 676 17 261 228 62 027 897 7 749 682

421 110 317 408 773 933 421 110 317 408 773 933
78 465 749 31 653 786 64 738 931 8 051 352
The Company issues share options to certain employees in terms of the Employee Share Option Scheme which is an equity settled share-
based payment scheme. Share options are measured at fair value of the equity instruments at the grant date. The fair value determined at the Functional currency translation reserve 4 962 835 4 962 835 11 620 11 620
grant date of the options is expensed over the vesting period, based on the Company’s estimate of shares that will eventually vest. Fair value
is measured using the Black-Scholes option pricing model. The expected life used in the model is adjusted, based on management’s best
estimate, for the effects of non-transferability, exercise restrictions and other behavioural considerations. Total capital reserve 83 428 583 36 616 621 64 750 551 8 062 972

8.2.3. Headline earnings

11. SUBORDINATED TERM LOAN

Inflation Adjusted Historical Cost

Inflation Adjusted Historical Cost
30 June 30 June 30 June 30 June
2023 2022 2023 2022 30 June 31 Dec 30 June 31 Dec
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

GROUP
Profit for the period 194 944 266 8 394 347 232 012 684 7 370 709
At 1 January 2 893 599 2 395 849 926 323 223 115
Add/(deduct) non-recurring items
Monetary adjustment ( 11 215 615) ( 3 491 565) - -
Trade and other investments fair value gains ( 906 714) 1 270 604 ( 906 714) 259 036
Exchange revaluation 15 721 492 3 989 316 6 165 869 703 208
Profit on disposal of property and equipment 288 773 - 158 794 -
Interest accrued 169 454 169 454
Fair value gains on investment properties ( 98 681 619) ( 6 486 195) ( 146 657 504) ( 5 828 904)
Loans repaid ( 492 597) - ( 185 312) -
Tax effect thereon 24 546 851 1 289 294 36 438 621 1 376 871

120 191 557 4 468 050 121 045 880 3 177 712 7 076 334 2 893 599 7 076 334 926 323

In 2013, the Bank received a subordinated term loan amounting to USD 1.4 million from a Development Financial Institution which attracts an
8.3. Earnings per share (ZWL cents) interest rate of SOFR plus 10% and has a seven year maturity date (13 June 2020) from the first disbursement date.

The above liability would, in the event of the winding up of the issuer, be subordinated to the claims of depositors and all other creditors of the
Inflation Adjusted Historical Cost issuer. The Group defaulted on principal repayments with respect to this subordinated loan during the year ended 31 December 2019 as a result
of the prevailing nostro funding challenges affecting the economy.
30 June 30 June 30 June 30 June
2023 2022 2023 2022 On 22 February 2019, the Reserve Bank of Zimbabwe (RBZ) issued an Exchange Control directive, RU 28 of 2019 which established an
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
interbank foreign exchange market to formalise the buying and selling of foreign currency through the Banks and Bureau de change. In order
to establish an exchange rate between the current monetary balances and foreign currency, the Monetary Authorities denominated the existing
RTGS balances in circulation, as RTGS dollars. The RBZ pegged the initial trades at US$/RTGS 1:2.5. In order to manage the transition, the
Basic 47 435 2 077 56 455 1 823 RBZ also advised on the same date that all foreign liabilities or legacy debts due to suppliers and service providers, declared dividends e.t.c
Diluted 46 293 2 054 55 095 1 803
would be treated separately after registering such debts with the RBZ Exchange Control Department for an orderly expunging of these debts.

Headline 28 542 1 093 28 744 777 The Group has since received Treasury Bills worth USD 1.4 million in terms of this deposit.

9. SHARE CAPITAL 12. DEPOSITS

9.1. Authorised 12.1. Deposits

Inflation Adjusted Historical Cost Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022 2023 2022 2023 2022
Shares Shares ZWL ZWL ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

GROUP

Ordinary shares of ZWL0.00028 each 600 000 000 600 000 000 168 168 Current and deposit accounts from customers 366 247 598 166 230 895 366 247 598 53 215 217

12.2. Maturity analysis

9.2. Issues and fully paid

Inflation Adjusted Historical Cost

9.2.1. Ordinary shares
30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Inflation Adjusted

30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022 Less than 1 month 309 050 198 146 962 937 309 050 198 47 046 998
Shares Shares ZWL ZWL
1 to 3 months 34 350 142 20 284 232 34 350 142 6 493 557

3 to 6 months 1 951 595 2 205 1 951 595 706

Balance at 01 January 404 397 333 300 334 654 61 850 61 700
6 months to 1 year 2 413 426 2 895 986 2 413 426 927 087
Share options exercised - 302 428 - -
1 to 5 years 111 112 373 74 295 111 112 373 23 784
Scrip dividends 19 714 250 7 998 500 13 6
Over 5 years 72 199 784 72 199 784 -
Redeemable ordinary shares conversion - 103 914 286 - 144

Treasury shares - ( 8 152 535) - -

531 077 518 170 219 655 531 077 518 54 492 132

424 111 583 404 397 333 61 863 61 850

12.3. Sectoral analysis of deposits

Inflation Adjusted
Inflation Adjusted Historical Cost
30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022 30 June 31 Dec 30 June 31 Dec
Shares Shares ZWL ZWL 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Balance at 01 January 404 397 333 300 334 654 115 84

Agriculture 507 585 22 045 691 507 585 7 057 450
Share options exercised - 302 428 - -
Banks and other financial institutions 19 879 172 17 185 062 19 879 172 5 501 425
Scrip dividends 19 714 250 7 998 500 6 2
Distribution 28 769 750 35 360 224 28 769 750 11 319 809
Redeemable ordinary shares conversion - 103 914 286 29
Individuals 68 986 821 13 541 732 68 986 821 4 335 092
Treasury shares - ( 8 152 535) - -
Manufacturing 17 936 930 17 572 179 17 936 930 5 625 352

Mining companies 6 068 797 - 6 068 797 -

424 111 583 404 397 333 121 115
Municipalities and parastatals 28 588 830 18 922 265 28 588 830 6 057 553

Services 194 986 612 26 089 504 194 986 612 8 351 989

Transport and telecommunications 523 101 15 514 235 523 101 4 966 546

366 247 598 166 230 892 366 247 598 53 215 215

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13. OTHER LIABILITIES Holders were issued with digital gold tokens in exchange of their ZWL monetary balances. As mentioned the tokens move in line with exchange
rate and no interest is paid on them. Upon maturity or liquidation the tokens are liquidated to ZWL balances at the spot exchange rate on the
date of conversion.
Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec 16.1. Fair values of financial instruments

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 The fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price
quotations. For all other financial instruments, the Group determines fair values using other valuation techniques.

Trade and other payables 58 919 077 36 835 807 57 938 192 11 792 185 For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of
judgement depending on liquidity, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument.
The carrying amounts of trade and other payables approximate the related fair values due to their short term nature. These relate to the Group’s
operational liabilities to suppliers, employees and regulators. Expense provisions are also included. Included in trade and other payables are The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or
lease liabilities ranging from 1 to 5 years in respect of leased properties in which the Group is a lease. paid to transfer the liability in an orderly transaction between market participants at the measurement date.

Valuation models
13.1. Lease Liabilities The Group measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in making the
measurements.

Inflation Adjusted Historical Cost

Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments;
30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022 Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 (i.e. derived from prices).

This category includes instruments valued using: quoted market prices in active markets for similar instruments;
quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation
At 1 January 1 144 903 302 763 366 516 96 923 techniques in which all significant inputs are directly or indirectly observable from market data; and

Re-measurements 15 113 367 1 393 304 8 962 042 446 036 Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes
inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s
Finance costs accrual 101 166 22 366 101 166 7 160 valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which
significant unobservable adjustments or assumptions are required to reflect differences between the instruments.
Payment of lease liabilities ( 11 410 734) ( 573 529) ( 4 481 021) ( 183 603)
The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or
paid to transfer the liability in an orderly transaction between market participants at the measurement date.
4 948 702 1 144 903 4 948 703 366 516
During the reporting periods ended 30 June 2023 and 31 December 2022, there were no transfers between Level 1 and Level 2 fair value
measurements, and no transfers into and out of Level 3 fair value measurements.
14. BORROWINGS
16.1.1. Financial instruments measured at fair value – fair value hierarchy

Inflation Adjusted Historical Cost*

Inflation Adjusted
30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022 2023 Level 1 Level 2 Level 3
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Banks and financial institutions 2 000 929 1 874 248 2 000 929 600 000 Trade and other investments 2 383 082 - - 2 383 082

Offshore borrowings 176 670 011 59 589 448 176 670 011 19 076 270

Other institutions 42 910 4 997 933 42 910 1 599 980

Inflation Adjusted

2022 Level 1 Level 2 Level 3

178 713 850 66 461 630 178 713 850 21 276 250 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Opening balances of borrowings 66 461 630 18 475 670 21 276 250 5 914 585 Trade and other investments 796 731 - - 796 731

Loans raised 406 577 380 181 465 327 159 663 849 29 385 632

Repayments made ( 5 426 783) 86 602 315 ( 2 226 249) ( 14 023 967)
Historical Cost
Monetary effect of inflation ( 288 898 377) ( 220 081 682)
2023 Level 1 Level 2 Level 3
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Closing balance 178 713 850 66 461 630 178 713 850 21 276 250

Trade and other investments 2 383 082 - - 2 383 082

* Included in Offshore borrowings are loan balances of ZWL 43 071 823 799 (2022 ZWL 5 641 749 953) and ZWL 23 224 272 692 (2022 ZWL
3 158 604 705) due to Nederlandse Financierings-Maatschappij Voor Ontiwikkelingslanden (FMO) and Swedfund respectively. The carrying
amounts of borrowings, approximate the related fair values. The above listed loan balances are part of the Group’s Blocked Funds which were
registered with the Reserve Bank of Zimbabwe (RBZ) for an orderly expunging of the debts. Consequently, in terms of section 52 of the Finance Historical Cost
Act no 7 of 2021, the bank was issued with Treasury Bills amounting to USD 13 840 413 at a 0% coupon rate with varying maturity profiles of
between three to twenty years in respect of the legacy debts for the three funders. Of these, a total of USD 1 342 863 was redeemed during 2022 Level 1 Level 2 Level 3
the period under review. ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

The line of credit balances have been translated at 30 June 2023 at the closing rate of USD 1 / ZWL 5740.
Trade and other investments 255 056 - - 255 056

15. INVESTMENT SECURITIES

16.1.2. Financial instruments not measured at fair value

Inflation Adjusted Historical Cost*

30 June 31 Dec 30 June 31 Dec

Below is a list of the Group’s financial investments not measured at fair value, but whose carrying amounts approximate fair value.
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Inflation Adjusted Historical Cost

Amortised cost – Gross 64 592 883 43 064 815 16 754 166 4 010 434 30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022
Additions 220 761 280 94 555 536 86 693 450 12 743 732 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Redeemed during the period ( 18 788 341) - ( 7 707 610) -

Interest receivable on bills 684 443 - 684 443 - Assets

Monetary adjustment ( 170 825 815) ( 73 027 469) - - Cash and cash equivalents 229 201 836 67 281 847 229 201 836 21 538 825

Loans, advances and other accounts 363 276 512 144 583 450 363 276 512 46 285 257

96 424 449 64 592 883 96 424 449 16 754 166 Other short term investments 17 490 353 - 17 490 353

Less 12 month ECL ( 174 966) - ( 174 966) - Investment securities 96 249 484 52 335 782 96 249 484 16 754 166

96 249 483 64 592 883 96 249 483 16 754 166 Total 706 218 185 264 201 081 706 218 185 84 578 248

The Group holds Treasury Bills and Government Bonds amounting to ZWL 79 172 752 985 ( 2022 - ZWL17 100 575 255) with interest rates
ranging from 0% to 18%. The Treasury Bills are measured at amortised cost in line with the Bank’s business model to collect contractual cash
flows and the contractual terms are such that the financial assets give rise to cash flows that are solely payments of principal and interest. Of
this amount ZWL 71 733 538 948 is with respect to blocked funds.

Included in interest income is interest from Investment securities held by the Bank.

Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Interest income from investment securities 2 709 876 8 064 844 1 238 293 1 755 252

16. OTHER SHORT TERM INVESTMENTS

Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Digital Gold Tokens 17 490 353 - 17 490 353 -

During the period under review, the Central Bank introduced digital gold tokens in a way to control market liquidity and at the same time help
individuals and institutions to store value. These tokens are linked the interbank market exchange rate. In liquidation the holder will receive
value equivalent to the token’s intrinsic value which amount is denominated in USD and converted at the ruling interbank market rate at the
date of the transaction.

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17. CASH AND CASH EQUIVALENTS 18.3. Impairment analysis of financial assets measured at amortised cost

Inflation Adjusted Historical Cost Inflation Adjusted

30 June 31 Dec 30 June 31 Dec
Stage 1 Stage 2 Stage 3 Total
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

GROUP
Gross carrying amount at 1 January 2023 167 235 826 3 808 888 1 630 365 172 675 079
Balances with the Central Bank** 36 897 537 21 623 763 36 897 537 6 922 379
Monetary adjustment ( 225 025 452) ( 7 842 502) ( 168 059) ( 233 036 013)
Current, nostro accounts* and cash 188 604 299 38 944 043 188 604 299 12 467 091

Interbank placements 3 700 000 6 714 039 3 700 000 2 149 354
Transfers ( 121 521) 27 083 94 439 -

- to 12 months to ECL 59 520 ( 37 343) ( 22 176) -

229 201 837 67 281 845 229 201 837 21 538 825
- to lifetime ECL not credit impaired ( 75 390) 76 236 ( 846) -

- to lifetime ECL credit impaired ( 105 650) ( 11 811) 117 461 -

* Nostro accounts are foreign domiciled bank accounts operated by the Bank for the facilitation of offshore transactions on behalf of clients.

** Balances with the Central Bank, other banks and cash are used to facilitate customer and the Bank’s transactions which include payments Net movement in financial assets 332 597 793 8 005 876 1 441 859 342 045 528
and cash withdrawals.

Balance as at 30 June 2023 274 686 647 3 999 345 2 998 604 281 684 594
18. LOANS AND ADVANCES

Inflation Adjusted Historical Cost Loss allowance analysis

30 June 31 Dec 30 June 31 Dec At 1 January 2023 2 908 439 1 455 922 1 099 718 5 464 080
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Monetary adjustment ( 1 528 755) ( 1 306 523) ( 879 594) ( 3 714 872)

Fixed term loans – Corporate 311 972 736 113 938 492 311 972 736 36 474 938

Fixed term loans – Retail 22 796 050 28 949 376 22 796 050 9 267 515 Transfers 9 559 ( 2 052) ( 7 507) -

Mortgages 2 597 617 1 660 690 2 597 617 531 634 - to 12 month ECL 11 940 ( 2 506) ( 9 434) -

Overdrafts 25 910 109 34 892 25 910 109 11 170 - to lifetime ECL not credit impaired ( 495) 671 ( 176) -

- to lifetime ECL credit impaired ( 1 886) ( 217) 2 103 -

Other assets 363 276 512 144 583 450 363 276 512 46 285 257
Net increase/(decrease) in ECL 731 025 96 158 79 532 906 714

18.1. Maturity analysis

Revaluation (exchange rate) on loans and
advances ECL 5 583 004 1 355 845 652 798 7 591 647
Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022 Balance as at 30 June 2023 7 703 272 1 599 350 944 948 10 247 568
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Impairment analysis of financial assets measured at amortised cost (continued)

Less than 1 month 228 169 293 23 935 639 228 169 293 7 662 476
Inflation Adjusted
1 to 3 months 93 224 178 54 558 825 93 224 178 17 465 825
Stage 1 Stage 2 Stage 3 Total
3 to 6 months 34 080 706 5 434 752 34 080 706 1 739 818

6 months to 1 year 34 673 426 40 651 702 34 673 426 13 013 761
Gross carrying amount at 1 January 2022 133 760 622 2 041 085 1 432 947 137 234 653
1 to 5 years 225 057 673 136 279 799 225 057 673 43 627 023
Monetary adjustment ( 90 816 817) ( 2 430) ( 995 029) ( 91 814 276)
Over 5 years 54 956 483 - 54 956 483 -

670 161 758 260 860 716 670 161 758 83 508 904
Transfers ( 1 697 426) 1 437 583 259 843 -

- to 12 months to ECL 437 540 ( 414 684) ( 22 856) -

Allowances for impairment losses on loans and
advance ( 10 247 568) ( 5 464 080) ( 10 247 568) ( 1 603 602) - to lifetime ECL not credit impaired ( 1 938 769) 1 944 292 ( 5 523) -

ECL at 1 January ( 5 464 080) ( 1 287 637) ( 9 340 854) ( 412 209) - to lifetime ECL credit impaired ( 196 196) ( 92 026) 288 222 -

Monetary adjustment ( 3 876 774) ( 454 831) - -

ECL charged through profit or loss ( 931 504) ( 4 759 313) ( 931 504) ( 1 523 591) Net movement in financial assets 125 989 447 332 651 932 604 127 254 703

Bad debts written off 24 789 1 037 703 24 789 332 198

Balance as at 31 December 2022 167 235 826 3 808 888 1 630 365 172 675 079

Suspended interest on credit impaired financial

assets ( 44 084) - ( 44 084) -
Loss allowance analysis
659 870 106 255 396 636 659 870 106 81 905 302
At 1 January 2022 3 649 708 195 372 581 298 4 426 378
Other assets* 8 302 945 234 6 092 984 434 7 218 132 265 2 265 354 415

30 348 447 228 27 075 362 394 29 263 634 259 11 849 962 849
Monetary adjustment 1 672 126 898 421 - 2 570 547

18.2. Sectoral analysis of utilisations

Transfers ( 50 349) 55 768 ( 5 420) ( 0)

- to 12 month ECL 48 521 ( 39 206) ( 9 315) -

Inflation Adjusted
- to lifetime ECL not credit impaired ( 96 405) 99 785 ( 3 380) ( 0)
30 June % 31 Dec %
2023 2022 - to lifetime ECL credit impaired ( 2 465) ( 4 811) 7 275 -
ZWL ‘000 ZWL ‘000

Net increase/(decrease) in ECL 207 501 306 362 523 840 1 037 703
Agriculture 99 046 599 27% 38 250 427 26%

Distribution 76 981 885 21% 29 886 391 21%

Revaluation (exchange rate) on loans and
Individuals 28 754 956 8% 25 396 372 18% advances ECL ( 2 570 547) - - ( 2 570 547)

Manufacturing 73 867 519 20% 5 308 343 4%

Mining 11 234 906 3% 3 102 175 2% Balance as at 31 December 2022 2 908 439 1 455 922 1 099 718 5 464 080

Services 73 390 647 20% 42 639 742 29%

19. OTHER ASSETS

363 276 512 100% 144 583 451 100%

Historical Cost Inflation Adjusted

30 June % 31 Dec % 30 June 31 Dec 30 June 31 Dec

2023 2022 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Agriculture 99 046 599 27% 12 245 045 26% Trade and other receivables 3 642 848 6 334 029 2 163 847 2 366 004

Distribution 76 981 885 21% 9 567 480 21% Prepayments and stocks 1 146 539 234 312 656 279 100 682

Individuals 28 754 956 8% 8 130 098 18% Collateral repossessions 3 923 843 12 257 094 3 923 843 3 923 843

Manufacturing 73 867 519 20% 1 699 351 4% Other receivables 30 856 850 7 739 940 10 796 095 2 113 799

Mining 11 234 906 3% 993 094 2%

Services 73 390 647 20% 13 650 189 29% 39 570 081 26 565 375 17 540 063 8 504 329

363 276 512 100% 46 285 257 100%

The material concentration of loans and advances is with the agriculture sector at 27% (2022 - 21%) and distribution sector at 21 % (2022 -
21%).

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20. INVESTMENT PROPERTIES 22. PROPERTY AND EQUIPMENT

Inflation Adjusted Historical Cost Inflation Adjusted

30 June 31 Dec 30 June 31 Dec Capital Work Computers Motor Furniture & Right of Use Freehold Total
2023 2022 2023 2022 in Progress Vehicles Equipment Assets** Land &
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 Buildings*

GROUP ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

At 1 January 70 653 418 10 989 759 22 618 161 3 518 133

Additions 208 955 8 635 122 96 933 2 764 347 Cost/Revaluation amount

Disposals ( 253 368) ( 140 725) ( 81 974) ( 45 050) At 1 January 2022 7 774 092 8 257 423 738 451 4 233 574 2 312 979 30 821 497 54 138 016

Fair value gains 98 681 619 51 169 262 146 657 504 16 380 731 Additions 3 299 562 3 056 971 1 095 540 395 029 - - 7 847 101

Monetary adjustment - - - - Remeasurement – Right of use assets - - - - 2 639 155 - 2 639 155

Revaluations - - - - - 2 230 498 2 230 498

169 290 625 70 653 418 169 290 624 22 618 161 Disposals - ( 2 972) ( 53 486) - - - ( 56 459)

Investment properties comprise commercial properties and residential properties that are leased out to third parties and land held for future
development. No properties were encumbered. At 31 December 2022 11 073 654 11 311 421 1 780 505 4 628 603 4 952 135 33 051 995 66 798 312

Additions 6 412 846 1 098 042 1 515 232 537 713 - - 9 563 833
The Bank has no restrictions on the sale of its investment properties and no contractual obligations to purchase, construct or develop the
investment properties or for repairs, maintenance and enhancements. Remeasurement – Right of use assets - - - - 3 952 956 - 3 952 956

Capitalisations - - - - - - -
Measurement of fair value
Revaluations - - - - - 47 027 921 47 027 921
Fair value hierarchy
The fair value of the Group’s investment properties as at 30 June 2023 has been arrived at on the basis of valuations carried out by independent Disposals - - ( 148 226) - - - ( 148 226)
professional valuers, Integrated Properties Real Estate (Private) Limited. The valuation which conforms to International Valuation Standards,
was derived with reference to market information close to the date of the valuation.
At 30 June 2023 17 486 498 12 409 463 3 147 511 5 166 316 8 905 091 80 079 916 127 194 796

21. INTANGIBLE ASSETS

Accumulated depreciation

Inflation Adjusted Historical Cost At 1 January 2022 - 4 452 012 608 194 2 958 720 962 383 263 782 9 245 090

Charge for the year – Property and

Total Total
equipment - 1 307 754 179 072 360 877 - 14 719 1 862 422
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Charge for period – Right of use assets - - - - 818 903 - 818 903

Disposals - ( 2 974) ( 53 485) - - - ( 56 459)

Cost

Balance 1 January 2022 7 207 719 7 207 719 21 261 21 261

Acquisitions 49 087 49 087 14 133 14 133 At 31 December 2022 - 5 756 793 733 781 3 319 597 1 781 286 278 501 11 869 956

Balance at 31 December 2022 7 256 806 7 256 806 35 394 35 394 Charge for the year – Property and
equipment - 794 129 294 260 226 195 - 7 415 1 321 998

Charge for period – Right of use assets - - - - 419 074 - 419 074
Balance at 30 June 2023 7 256 806 7 256 806 35 394 35 394
Remeasurement – Right of use assets - - - - - - -

Disposals - - ( 148 226) - - - ( 148 226)

Accumulated amortisation

Balance 1 January 2022 3 257 013 3 257 013 7 853 7 853

At 30 June 2023 - 6 550 922 879 814 3 545 792 2 200 360 285 916 13 462 802
Amortisation for the year 904 922 904 922 4 395 4 395

Carrying amount
Balance at 31 December 2022 4 161 934 4 161 935 12 248 12 248
At 30 June 2023 17 486 498 5 858 542 2 267 697 1 620 525 6 704 731 79 794 000 113 731 993
Amortisation for the period 53 534 53 534 3 051 3 051
-

At 31 December 2022 11 073 654 5 554 629 1 046 724 1 309 006 3 170 849 32 773 494 54 928 356
Balance at 30 June 2023 4 215 468 4 215 469 15 299 15 299

* Assets measured using the revaluation model

Carrying amount ** Right-of-Use Assets recognised in respect of leased properties if the Group is a lessee. The Right-of-Use Assets are depreciated over the
At 30 June 2023 3 041 337 3 041 336 20 095 20 095 shorter of the lease term including extension options where the Group is certain to exercise such and the useful life of the underlying asset.

At 31 December 2022 3 094 871 3 094 870 23 147 23 147

Tribe 28

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22 Business Times 31 August - 6 September 2023

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Continued from Page 10

PROPERTY AND EQUIPMENT (continued) 25. CAPITAL COMMITMENTS

Historical Cost
There were no capital commitments during the period under review.

Capital Work Computers Motor Furniture & Right of Use Freehold Total
in Progress Vehicles Equipment Assets** Land &
26. RELATED PARTIES
Buildings*

ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 As required by IAS 24 Related Party Disclosure, the Board’s view is that non-executive Directors, executive Directors
and executive management constitute the key management of the Group. Accordingly, key management remuneration is
disclosed as follows.
Cost/Revaluation amount

At 1 January 2022 34 182 137 793 3 329 62 975 95 141 2 890 149 3 223 569
26.1. Compensation of key management personnel of the Group
Additions 1 056 283 740 557 263 968 101 967 - - 2 162 776

Remeasurement – Right of use assets - - - - 277 945 - 277 945

Inflation Adjusted Historical Cost
Disposals - ( 331) ( 76) - - - ( 407)
30 June 31 Dec 30 June 31 Dec
Revaluations - - - - - 7 749 051 7 749 051 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

At 31 December 2022 1 090 465 878 019 267 221 164 942 373 086 10 639 200 13 412 932
Short term employee benefits 9 999 788 1 196 082 4 938 386 166 179
Additions 2 518 339 430 204 522 814 205 610 - - 3 676 967
Post employment benefits 209 504 285 567 622 860 171 647
Remeasurement – Right of use assets - - - - 1 552 335 - 1 552 335

Capitalisations - - - - - - -
10 209 292 1 481 649 5 561 246 337 826
Disposals - - ( 210) - - - ( 210)

Revaluations - - - - - 69 679 568 69 679 568

26.2. Balances of loans to Directors, officers and others

At 30 June 2023 3 608 804 1 308 223 789 825 370 552 1 925 420 80 318 768 88 321 592
Inflation Adjusted Historical Cost

30 June 31 Dec 30 June 31 Dec

Accumulated depreciation 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
At 1 January 2022 - 32 048 1 799 16 865 62 917 44 446 158 075

Charge for the year – Property and

equipment - 77 470 20 885 16 965 - 103 029 218 350 Included in advances and other accounts are
loans to officers:-
Charge for period – Right of use assets - - - - 71 926 - 71 926
At 1 January 549 305 834 846 175 848 77 745
Remeasurement – Right of use assets - - - - ( 35 200) - ( 35 200)
Monetary adjustment ( 546 560) ( 842 081) - -
Disposals - ( 44) ( 76) - - - ( 120)
Net additions during the year 285 038 556 539 111 935 98 103

287 783 549 305 287 783 175 848

At 31 December 2022 - 109 475 22 608 33 830 99 643 147 475 413 030
Expected credit loss allowance on loans to
officers - - - -
Charge for the year – Property and
equipment - 117 954 79 675 28 028 - 377 292 602 949

Charge for period – Right of use assets - - - - 164 571 - 164 571 287 783 549 305 287 783 175 848

Remeasurement – Right of use assets - - - - - - -

Disposals - - ( 210) - - ( 210) 26.3. Borrowing powers

At 30 June 2023 - 227 428 102 073 61 858 264 214 524 768 1 180 340 Holding Company
In terms of the existing Articles of Association, Article 102, the Directors may from time to time, at their discretion, borrow or secure the payment
of any sum or sums of money for the purposes of the Company without any limitation.
Carrying amount

At 30 June 2023 3 608 804 1 080 795 687 752 308 694 1 661 206 79 794 000 87 141 251 27. EXCHANGE RATES

The following exchange rates have been used to translate the foreign currency balances to Zimbabwean dollars (ZWL) at period end:-
At 31 December 2022 1 090 465 768 545 244 612 131 113 273 443 10 491 724 12 999 901

30 June 31 Dec
2023 2022
23. LEASES Mid - rate Mid - rate
ZWL ZWL
The Group leases various buildings for the carrying out its trade. Lease terms are negotiated on an individual basis and contain a wide range of United States Dollar USD 5 740 684
different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that
are held by the lessor. Leased assets may not be used as security for borrowing purposes. British Sterling GBP 7 251 825

The Group’s leases are recognised as a right-of-use asset and a corresponding liability is also recognised in the Statement of Financial Position
South African Rand ZAR 308 40
from the date at which the leased asset is available for use by the Group.
European Euro EUR 6 180 729
Assets and liabilities arising from a leasing arrangement are initially measured on a present value basis. Lease liabilities include the net present
value of the following lease payments:
Botswana Pula BWP 426 54
• fixed payments, less any lease incentives receivable;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and;
• payments of penalties for terminating the lease, if it is provided in the leasing agreement. 28. STATEMENT OF CASH FLOWS
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
Included in Cash flows from operating activities for the half year ended 30 June 2022, were movements on borrowings amounting to
The Right-of-Use Assets represent the Group’s rights to occupy land and buildings in various lease arrangements in which the Group is a lessee.
ZWL 34.64 billion (Historical - ZWL 10.61 billion). These arose due to the fact that deposits and other liabilities were inclusive of borrowings and
therefore reported as a single line item on the face of the financial statements.
The Right-of-Use Assets are depreciated over the lease term including extension options where the Group is certain to exercise such and the
useful life of the underlying asset.
Due to the current year disaggregation of the financial statements line items which saw Deposits, other liabilities and borrowings reporting
separately, on the face of financial statements, the movement on borrowings is now reported as part of cash flows from financing activities.
The lease payments are discounted using the Group’s incremental borrowing rate. The Group does not recognise Right of Use Assets or lease
Below is a summary of the impact of the disaggregation.
liabilities or short term leases which are expensed on a straight line basis.
There was no effect on the Statement of Financial Position, Statement of Comprehensive Income and the Statement of changes in equity as a
result of this disaggregation of the line item.
24. CONTINGENT LIABILITIES
The impact of the disaggregation on cash flows is as detailed below for the half year ended 30 June 2022;
Inflation Adjusted Historical Cost
Impact on Working capital Impact on Working capital
30 June 31 Dec 30 June 31 Dec Overall net impact on Cash
changes changes
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

GROUP 2022
Guarantees 13 564 605 2 320 151 13 564 605 742 746 Inflation adjusted
Expected credit losses on guarantees ( 278 015) ( 47 553) ( 278 015) ( 15 223) Borrowings ( 122 262 661) 122 262 661 -

Loans raised ( 233 878 655) 233 878 655 -

13 286 590 2 272 599 13 286 590 727 523 Loans repaid 111 615 994 ( 111 615 994) -

The Group enters into various irrevocable commitments and contingent liabilities in its normal course of business in order to meet financial -
needs of customers. These obligations are not recognised on the statement of financial position, but contain credit risk and are therefore part
Historical
of the overall risk of the Group.
Borrowings ( 15 361 665) 15 361 665 -
Guarantees commit the Group to make payments on behalf of clients in the event of specified acts. Guarantees carry the same credit risk a
loans and advances to customers. Loans raised ( 29 385 632) 29 385 632 -

Loans repaid 14 023 967 ( 14 023 967) -

Facilities approved but not drawn down represent contractual commitments to advance loans and revolving credits. These have fixed expiry
dates and may expire without being drawn upon, hence total contract amounts do not necessarily represent future cash requirements.

11 IN PURSUIT OF EXCELLENCE
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29. SEGMENT INFORMATION

For management purposes, the Group is organised into five operating segments based on products and services as follows:

Retail banking Individual customers deposits and consumer loans, overdrafts, credit card facilities and funds transfer facilities.

Corporate banking Loans and other credit facilities and deposit and current accounts for corporate and institutional customers.

Treasury Money market investment, securities trading, accepting and discounting of instruments and foreign currency trading.

International banking Handles the Group’s foreign currency denominated banking business and manages relationships with correspondent
banks.

Digital Banking Handles the Bank’s Digital Banking products including Card and POS services.

Other Includes other items like real estate, head office related transactions and developing business lines for the Group

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and
performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects is measured differently
from operating profit or loss in the consolidated financial statements. Income taxes are managed on a company basis and are not allocated to
operating segments.

Interest income is reported net as management primarily relies on net interest revenue as a performance measure, not the gross income and
expense.

Transfer prices between operating segments are on arm’s length basis in a manner similar to transactions with third parties.
No revenue from transactions with a single external customer or counter party amounted to 10% or more of the Group’s total revenue in 2023
or 2022.
The following table presents income and profit and certain asset and liability information regarding the Group’s operating segments and service
units:

Inflation Adjusted

Consumer
Banking & Value Business Treasury International
Added Services Banking Banking Banking Digital Banking Other Total

ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000

FOR THE SIX MONTHS ENDED 30 JUNE 2023

Income

Third party income (interest and fees) 33 781 635 19 203 157 5 423 071 1 573 651 17 173 068 236 386 729 313 541 311

Interest and similar expense ( 7 563 746) ( 1 776 599) ( 6 512 279) ( 2 770 114) ( 3 524 851) ( 42 957 786) ( 65 105 375)

26 217 888 17 426 558 ( 1 089 208) ( 1 196 463) 13 648 217 193 428 943 248 435 936

Net operating income

Other material non-cash items

Impairment losses on financial assets measured

at amortised cost 113 202 793 379 133 - - - 906 715

Depreciation of property and equipment ( 167 942) ( 2 141) ( 124) ( 167) ( 123 957) ( 1 027 668) ( 1 321 998)

Depreciation of right of use assets - - - - - ( 419 074) ( 419 074)

Amortisation of intangible assets - - - - - - -

Segment profit/(loss) 26 163 148 18 217 797 ( 1 089 199) ( 1 196 630) 13 524 260 191 982 201 247 601 577

Income tax charge - - - - - ( 33 671 838) ( 33 671 838)

Revaluation of land and buildings, net of tax - - - - - 37 622 337 37 622 337

Total comprehensive income for the year 26 163 148 18 217 797 ( 1 089 199) ( 1 196 630) 13 524 260 195 932 701 251 552 077

AS AT 30 JUNE 2023

Assets and liabilities

Capital expenditure (property and equipment and

intangible assets) 197 790 13 097 2 728 - 206 253 768 827 1 188 695

Total assets 153 476 920 391 955 696 102 229 734 - - 386 953 582 1 034 615 932

Total liabilities 93 795 497 194 576 144 71 487 648 105 061 150 - 174 542 094 639 462 533

Inflation Adjusted

Consumer
Banking & Value Business Treasury International
Added Services Banking Banking Banking Digital Banking Other Total

ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000 ZWL’000

FOR THE SIX MONTHS ENDED 30 JUNE 2022

Income

Third party income (interest and fees) 12 342 214 16 890 983 2 774 766 704 614 12 249 844 1 509 592 46 472 012

Interest and similar expense ( 4 840 894) ( 1 163 626) ( 7 558 441) ( 956 985) ( 2 249 757) ( 18 770 931) ( 35 540 635)

7 501 320 15 727 357 ( 4 783 675) ( 252 372) 10 000 086 ( 17 261 339) 10 931 377

Net operating income

Other material non-cash items

Impairment losses on financial assets measured

at amortised cost ( 247 851) ( 1 737 072) ( 291) - - - ( 1 985 215)

Depreciation of property and equipment ( 108 664) ( 3 686) ( 92 889) ( 747 766) ( 19 416 776) ( 273 518) ( 20 643 299)

Depreciation of right of use assets - - - - - ( 507 567) ( 507 567)

Amortisation of intangible assets - - - - - - -

Segment profit/(loss) 7 144 804 13 986 599 ( 4 876 855) ( 1 000 138) ( 9 416 690) ( 18 042 424) ( 12 204 703)

Income tax charge - - - - - - -

Revaluation of land and buildings, net of tax - - - - - - -

Total comprehensive income for the period 7 144 804 13 986 599 ( 4 876 855) ( 1 000 138) ( 9 416 690) ( 18 042 424) ( 12 204 703)

AS AT 31 DECEMBER 2022

Assets and liabilities

Capital expenditure (property and equipment and

intangible assets) - - - - - - -

Total assets 61 035 843 99 805 378 51 091 416 31 465 866 2 235 378 94 816 172 340 450 052

Total liabilities 63 173 896 52 251 521 40 883 907 32 874 575 - 44 806 263 233 990 161

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STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION

FOR THE SIX MONTHS ENDED 30 JUNE 2023 AS AT 30 JUNE 2023

Inflation Adjusted Historical Cost* Inflation Adjusted Historical Cost*

Note 30 June 30 June 30 June 30 June Note 30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

SHAREHOLDERS’ FUNDS

Interest income 42 046 879 22 652 680 20 170 882 3 033 435 Share capital d 12 536 12 536 17 17

Interest expense ( 10 794 383) ( 7 661 570) ( 5 764 682) ( 1 038 645) Share Premium 22 224 725 22 224 725 31 475 31 475

Functional currency translation reserve 4 962 835 4 962 835 11 620 11 620

Net interest income 31 252 497 14 991 110 14 406 201 1 994 790 Revaluation reserve 58 192 154 17 259 707 62 027 896 7 749 682

Fee and commissions income 53 608 260 21 992 923 29 069 038 2 944 823 Employee share option reserve 4 453 110 794 525 1 564 808 128 073

Net foreign exchange gains 97 700 137 7 246 171 100 018 213 1 458 922 Retained earnings 263 123 124 86 788 654 252 846 942 30 254 039

Revenue 182 560 894 44 230 205 143 493 452 6 398 535
Total shareholders’ funds 352 968 484 132 042 982 316 482 759 38 174 906
Other income a 100 084 045 6 766 846 136 269 626 5 864 619

LIABILITIES
Operating income 282 644 939 50 997 051 279 763 077 12 263 153
Deposits 366 330 620 166 892 236 366 330 620 53 426 931
Operating expenditure b ( 55 729 150) ( 22 353 111) ( 28 391 267) ( 2 997 246)
Other liabilities 58 919 077 37 772 931 57 933 598 12 092 185

Borrowings 178 713 850 66 461 630 178 713 850 21 276 250
Operating income before impairment charge and
Current tax liabilities 2 964 053 ( 137 357) 2 964 053 ( 43 972)
loss on net monetary position 226 915 789 28 643 940 251 371 810 9 265 907
Deferred tax liabilities 47 598 531 16 933 307 40 174 639 3 964 790

Subordinated term loan 7 076 334 2 893 599 7 076 334 926 323
Impairment losses on financial assets measured
at amortised cost 906 714 ( 1 270 604) 906 714 ( 259 036)
Amount owing to Holding company - ( 662 263) - ( 212 009)
Loss on net monetary position ( 22 537 879) ( 29 493 759) - -

Total liabilities 661 602 466 290 154 083 653 193 094 91 430 499
Profit before tax 205 284 626 ( 2 120 422) 252 278 525 9 006 872

Taxation ( 28 950 155) ( 8 057 262) ( 29 685 621) ( 1 563 755)

Total shareholders’ funds and liabilities 1 014 570 950 422 197 065 969 675 853 129 605 405

Profit for the period 176 334 471 ( 10 177 683) 222 592 903 7 443 116

ASSETS
Other comprehensive income
Cash and cash equivalents e 229 201 836 67 281 848 229 201 836 21 538 825
Revaluation gains on land and buildings, net
Investment securities 96 249 484 52 335 785 96 249 484 16 754 167
of tax 40 392 448 ( 361 876) 54 278 214 2 656 264
Other short term investments 17 490 353 - 17 490 353 -

Loans and advances 364 351 676 145 351 686 364 351 676 46 531 190
Total comprehensive income for the period 217 266 918 ( 10 539 559) 276 871 118 10 099 380
Other assets 39 570 081 26 565 375 24 286 965 8 504 329

Assets held for sale 380 629 1 188 989 380 629 380 629

Trade and other investments 2 383 082 796 731 2 383 082 255 056
Earnings per share (ZWL cents)
Investment properties 148 170 480 70 653 418 148 170 480 22 618 160
- Basic c.3 1 068 62 1 349 45
Intangible assets 3 041 337 3 094 875 20 095 23 147

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms of Property and equipment 113 731 993 54 928 358 87 141 252 12 999 902
International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”.

Total assets 1 014 570 950 422 197 065 969 675 853 129 605 405

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms of
International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”.

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Continued from Page 13

STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2023 FOR THE SIX MONTHS ENDED 30 JUNE 2023

Inflation Adjusted
Inflation Adjusted Historical Cost*
Share Translation Revaluation Share Option Retained
Share Capital Premium Reserve Reserve Reserve Earnings Total 30 June 30 June 30 June 30 June
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000

Balance as at 1 January 2022 12 536 22 224 725 4 962 835 15 581 033 - 51 717 399 94 498 528 CASH FLOWS FROM OPERATING
ACTIVITIES

Profit for the period - - - - ( 10 177 683) ( 10 177 683)

Profit before taxation 205 284 626 ( 2 120 422) 252 278 525 9 006 872
Revaluation gains on land and buildings, net of tax - - - ( 361 876) - ( 361 876)

Balance at 30 June 2022 12 536 22 224 725 4 962 835 15 219 158 - 41 539 715 83 958 968 Non-cash items:

- Net monetary loss 22 537 879 29 493 759 - -

Profit for the period - - - - 46 186 063 46 186 063 - Depreciation (excluding right of use assets) 1 321 998 254 196 602 948 32 877
Dividends declared ( 937 124) ( 937 124)
- Depreciation – Right of use assets 419 074 507 567 164 571 84 405
Employee scheme - value of employee services 794 525 794 525
- Amortisation of intangible assets 53 534 151 929 3 051 20 054
Revaluation gains on land and buildings, net of tax - - - 2 040 549 - 2 040 549
- Impairment losses on financial assets
measured at amortised costs ( 906 714) 1 270 604 ( 906 714) 259 036

Balance at 1 January 2023 12 536 22 224 725 4 962 835 17 259 707 794 525 86 788 653 132 042 981 - Investment properties fair value gains ( 98 681 619) ( 6 486 195) ( 146 657 504) ( 5 828 904)

- Trade and other investments fair value

movements adjustment - - - ( 99 532)
Total comprehensive income for the period - - - - 176 334 471 176 334 471
- Profit on disposal of property and equipment ( 288 773) - ( 158 794) -
Revaluation gains on land and buildings, net of tax - - - 40 932 448 - 40 932 448
- Loss/(profit) on disposal of investment
Employee scheme - value of employee services 3 658 585 3 658 585
properties - - - -

- - - -

- Non-cash employee benefits expense – share-

Balance at 30 June 2023 12 536 22 224 725 4 962 835 58 192 154 4 453 110 263 123 124 352 968 483 based payments 3 658 585 355 168 1 436 735 72 407

- Interest capitalised on subordinated term loan - - - -

- Unrealised foreign exchange gain ( 102 113 214) ( 3 570 773) ( 102 113 214) ( 727 966)
Historical Cost*

Share Translation Revaluation Share Option Retained

Share Capital Premium Reserve Reserve Reserve Earnings Total
Operating cash flows before changes in
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 operating assets and liabilities 31 285 375 19 855 831 4 649 604 2 819 248

Balance as at 1 January 2022 17 31 475 11 620 1 915 997 - 5 112 719 7 071 828 Changes in operating assets and liabilities

Increase/(decrease) in deposits 798 232 572 213 867 509 313 032 381 14 685 556

Total comprehensive income for the period - - - - 7 443 116 7 443 116 Increase/(decrease) in other liabilities 46 189 768 17 543 139 45 841 413 2 511 864
Revaluation gains on land and buildings, net of tax - - - 2 656 264 - 2 656 264
(Increase)/decrease in loans and advances ( 830 369 812) ( 120 876 085) ( 325 635 220) ( 14 935 952)

(Increase)/decrease in other assets ( 13 004 705) ( 27 652 371) ( 15 782 635) ( 2 486 770)
Balance at 30 June 2022 17 31 475 11 620 4 572 261 - 12 555 835 17 171 208
(Increase)/decrease in assets held for sale 808 360 - ( 0) -

Profit for the period - - - - 17 998 204 17 998 204

Net cash generated/(used) from operations 33 141 559 102 738 023 22 105 543 2 593 946
Dividends declared ( 300 000) ( 300 000)

Employee scheme - value of employee services 128 073 128 073

Taxation
Revaluation gains on land and buildings, net of tax - - - 3 177 421 - - 3 177 421
Tax on dividends paid - - - -

Corporate tax paid ( 401 552) ( 5 477 327) ( 175 855) ( 434 520)
Balance at 1 January 2023 17 31 475 11 620 7 749 682 128 073 30 254 039 38 174 907

Total comprehensive income for the period - - - - 222 592 903 222 592 903 Net cash inflow/(outflow) from operations 32 740 007 97 260 696 21 929 688 2 159 426

Revaluation gains on land and buildings, net of tax - - - 54 278 214 - 54 278 214

Employee scheme - value of employee services 1 436 735 1 436 735

CASH FLOWS FROM INVESTING ACTIVITIES

Balance at 30 June 2023 17 31 475 11 620 62 027 896 1 564 808 252 846 942 316 482 760
(Acquisition) of investment securities ( 220 761 280) - ( 86 693 450) ( 2 181 183)

Disposal of investment securities 18 788 341 7 707 610

* The Historical Cost information has been shown as supplementary information for the benefit of users. These are not required in terms of
Acquisition of short term investments ( 17 490 353) - ( 17 490 353) -
International Accounting Standard (IAS) 29 “Financial Reporting in Hyper-inflationary Economies”.
Proceeds on disposal of property and
equipment 288 773 - 158 794 -

Acquisition of trade and other investments - - - -

Acquisition of property and equipment ( 9 563 833) ( 2 977) ( 3 676 967) ( 423 075)

Acquisition of investment properties ( 208 955) ( 5 088 489) ( 96 933) ( 714 478)

Dividends received - - - -

Net cash (used)/generated in investing activities ( 228 947 306) ( 5 091 467) ( 100 091 299) ( 3 318 736)

CASH FLOWS FROM FINANCING

ACTIVITIES

Repayment of lease liabilities ( 11 410 734) ( 565 156) ( 4 481 021) ( 71 009)

Borrowings raised 406 577 380 233 878 655 159 663 849 29 385 632

Borrowings repaid ( 5 426 783) ( 111 615 994) ( 2 226 249) ( 14 023 967)

Increase/(decrease) in borrowings 112 252 220 70 658 569 157 437 600 7 385 043

Repayment of subordinated term loans ( 492 597) - ( 185 312) -

Net cash outflow from financing activities 501 499 486 192 356 073 310 208 867 22 675 699

Net (decrease)/increase in cash and cash

equivalents 305 292 186 284 525 303 232 047 256 21 516 389

Net foreign exchange and monetary

adjustments on cash and cash equivalents ( 143 372 198) 19 192 230 ( 24 384 245) 247 048

Cash and cash equivalents at beginning of

the year 67 281 848 139 860 21 538 825 4 872 262

Cash and cash equivalents at the end of the

year 229 201 836 303 857 392 229 201 836 26 635 699

There are no material differences between the Bank and the Holding company as the Bank is the principal operating subsidiary of the Group.
The notes to the financial statements under NMBZ Holdings Limited are therefore the same as those of the Bank in every material respect
where applicable.

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a) Other income weaknesses noted. Remedial plans are invoked to address identified weaknesses with a view to continually improve the performance and
effectiveness of the Board and its members.

Inflation Adjusted Historical Cost*

30 June 30 June 30 June 30 June 3.1. Directors’ attendance at NMB Bank Limited Board meetings
2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
NAME OF DIRECTOR MAIN BOARD AUDIT CREDIT ALCO & FINANCE

Number of meetings held 2 2 2 2

Fair value gains on investment properties 98 681 619 6 486 195 134 996 048 5 828 904

Rental income 532 825 267 363 330 543 34 125

B.A. Chikwanha I 2 N 2 N
Other operating income 869 603 13 288 943 034 1 590
D. Matenga I 2 N N 2

G. Taputaira I 1 2 N N
100 084 046 6 766 846 136 269 626 5 864 619
J. Maguranyanga I 2 2 N N

E. Chisango I 2 2 2 2
b) OPERATING EXPENDITURE
P. Gowero * I 1 N N 1
The net operating income is after charging the following:
C. Glover NE 2 N N 2

J. Tichelaar NE 2 N N 2
Inflation Adjusted Historical Cost*
J. De la Fargue NE 2 N 1 2
30 June 30 June 30 June 30 June
2023 2022 2023 2022 G. Gore E 2 N 2 2
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
M. Chipunza E 2 N N 2

Administration costs 26 743 117 9 984 076 13 948 912 1 345 725
NAME OF DIRECTOR LOANS REVIEW HUMAN CAPITAL, RISK & COMPLIANCE ICT & DIGITAL
Depreciation (excluding right of use assets) 1 321 998 254 196 602 948 32 877 REMUNERATION
& NOMINATIONS
Amortisation of intangible assets 53 534 151 929 3 051 20 054
Number of meetings held 2 2 2 4
Depreciation – right of use assets 419 074 507 567 164 571 84 405

Staff costs – salaries, allowances and related

costs 27 191 426 11 455 343 13 671 784 1 514 186 B.A. Chikwanha I N 2 N 4

D. Matenga I 2 N 2 4

55 729 150 22 353 111 28 391 267 2 997 246 G. Taputaira I 1 N 1 2

J. Maguranyanga I 2 2 2 N

c) EARNINGS PER SHARE E. Chisango I N 2 N N

P. Gowero * I 1 1 1 N
The calculation of earnings per share is based on the following figures:
C. Glover NE N 2 2 4

Inflation Adjusted Historical Cost* J. Tichelaar NE 1 1 N 4

30 June 30 June 30 June 30 June J. De la Fargue NE N 2 2 N

2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 G. Gore E N N N 4

M. Chipunza E N N N N

c.1. Earnings
N = Not a member I = Independent Non - Executive Director NE = Non - Executive Director E = Executive Director
Profit for the year 176 334 471 ( 10 177 683) 222 592 903 7 443 116
* Mr. P. Gowero was appointed on 26 April 2023

c.2. Number of shares

4. RISK MANAGEMENT
Weighted average shares in issue 16 506 050 16 506 050 16 506 050 16 506 050

The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk management framework. The Board has
established the Board Asset and Liability Management Committee (ALCO) and Board Risk and Compliance Committee, which are responsible
c.3. Earnings per share (ZWL cents)
for defining the Group’s risk universe, developing policies and monitoring implementation.
Basic and diluted 1 068 302 ( 61 660) 1 348 553 45 093
Risk management is linked logically from the level of individual transactions to the Bank level. Risk management activities broadly take place
simultaneously at the following different hierarchy levels:
d. SHARE CAPITAL
a) Strategic Level: This involves risk management functions performed by senior management and the board of directors. It includes
the definition of risk, ascertaining the Bank’s risk appetite, formulating strategy and policy for managing risk and establishes adequate
systems and controls to ensure overall risk remains within acceptable levels and is adequately compensated.
d.1. Authorised
b) Macro Level: It encompasses risk management within a business area or across business lines. These risk management functions are
performed by middle management.
The authorised ordinary share capital at 30 June 2023 is at the historical cost figure of ZWL25 000 (2022 - ZWL25 000) comprising 25 million c) Micro Level: This involves “On-the-line” risk management where risks are actually created. These are the risk management activities
ordinary shares of ZWL0.001 each. performed by individuals who assume risk on behalf of the organization such as Treasury Front Office, Corporate Banking, Retail banking
etc. The risk management in these areas is confined to operational procedures set by management.

d.2. Issued and fully paid Risk management is premised on four (4) mutually reinforcing pillars, namely:
a) adequate board and senior management oversight;
The issued share capital at 30 June 2023 is at the inflation adjusted figure of ZWL 12 536 000 (2022 restated – ZWL 12 536 000) and historical b) adequate strategy, policies, procedures and limits;
cost of ZWL 16 506 (2022 – 16 506) comprising 16 506 050 (2022 – 16 506 050) ordinary shares of ZWL0.001 each in historical cost terms. c) adequate risk identification, measurement, monitoring and information systems; and
d) comprehensive internal controls and independent reviews.

e) CASH AND CASH EQUIVALENTS 4.1. Credit risk

Credit risk is the risk that a financial contract will not be honoured according to the original set of terms. The risk arises when borrowers or
Inflation Adjusted Historical Cost*
counter-parties to a financial instrument fail to meet their contractual obligations. The Bank’s general credit strategies centre on sound credit
30 June 31 Dec 30 June 31 Dec granting process, diligent credit monitoring and strong loan collection and recovery. There is a separation between loan collection and recovery.
2023 2022 2023 2022 There is a separation between loan granting and credit monitoring to ensure independence and effective management of the loan portfolio. The
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000 Board has put in place sanctioning committees with specific credit approval limits. The Credit Management department does the initial review
of all applications before recommending them to the Executive Credit Committee and finally the Board Credit Committee depending on the loan
amount. The Bank has in place a Board Loans Review Committee responsible for reviewing the quality of the loan book and adequacy or loan
Balances with the Central Bank** 36 897 537 21 623 763 36 897 537 6 922 379 loss provisions.

Current, nostro accounts* and cash 188 604 299 38 944 043 188 604 299 12 467 091 The Bank has automated credit processes from loan origination, appraisal, monitoring and collections. The system has a robust loan monitoring
Interbank placements 3 700 000 6 714 039 3 700 000 2 149 354 and reporting module which is critical in managing credit risk. In view of the Bank’s move into the mass market, retail credit has become a key
area of focus. The Bank has put in place robust personal loan monitoring systems and structures to mitigate retail loan delinquencies.

Credit Management
229 201 837 67 281 845 229 201 837 21 538 825
• Responsible for evaluating & approving credit proposals from the business units.
* Nostro accounts are foreign domiciled bank accounts operated by the Bank for the facilitation of offshore transactions on behalf of clients. • Together with business units, has primary responsibility on the quality of the loan book.
• Reviewing credit policy for approval by the Board Credit Committee.
** Balances with the Central Bank, other banks and cash are used to facilitate customer and the Bank’s transactions which include payments • Reviewing business unit level credit portfolios to ascertain changes in the credit quality of individual customers or other counter-parties as
and cash withdrawals. well as the overall portfolio and detect unusual developments.
• Approve initial customer internal credit grades or recommend to the Credit Committees for approval.
• Setting the credit risk appetite parameters.
f) CORPORATE GOVERNANCE AND RISK MANAGEMENT • Ensure the Group adheres to limits, mandates and its credit policy.
• Ensure adherence to facility covenants and conditions of sanction e.g. annual audits, gearing levels, management accounts.
• Manage trends in asset and portfolio composition, quality and growth and non-performing loans.
• Manage concentration risk both in terms of single borrowers or group as well as sector concentrations and the review of such limits.
1. RESPONSIBILITY
Credit Monitoring and Financial Modelling
These condensed financial statements are the responsibility of the directors. This responsibility includes the setting up of internal control and • Independent credit risk management.
risk management processes, which are monitored independently. The information contained in these condensed financial statements has been • Independent on-going monitoring of individual credit and portfolios.
prepared on the going concern basis and is in accordance with the provisions of the Companies and Other Business Entities Act (Chapter • Triggers remedial actions to protect the interests of the Group, if appropriate (e.g. in relation to deteriorated credits).
24:31), the Banking Act (Chapter 24:20) and International Financial Reporting Standards. • Monitors the on-going development and enhancement of credit risk management across the Group.
• Reviews the Internal Credit Rating System.
• On-going championing of the Basel II methodologies across the Group.
2. CORPORATE GOVERNANCE • Ensures consistency in the rating processes and performs independent review of credit grades to ensure they conform to the rating
standards.
The Bank adheres to some principles of corporate governance derived from the King IV Report, the United Kingdom Combined Code and RBZ • Confirm the appropriateness of the credit risk strategy and policy or recommends necessary revisions in response to changes/trends
corporate governance guidelines. The Bank is cognisant of its duty to conduct business with due care and in good faith in order to safeguard identified.
all stakeholders’ interests.
Credit Administration
• Prepares and keeps custody of all facility letters.
3. BOARD OF DIRECTORS • Security registration.
• Safe custody of security documents.
Board appointments are made to ensure a variety of skills and expertise on the Board. Non-executive directors are of such calibre as to provide • Ensures all conditions of sanction are fulfilled before allowing draw-down or limit marking.
independence to the Board. The Chairman of the Board is an independent non-executive director. The Board is supported by mandatory • Review of credit files for documentation compliance e.g. call reports, management accounts.
committees in executing its responsibilities. The Board meets at least quarterly to assess risk, review performance and provide guidance to
management on both operational and policy issues. Recoveries

The Board conducts an annual peer based evaluation on the effectiveness of its activities. The process involves the members evaluating The recoveries unit is responsible for all collections and ensures that the Group maximises recoveries from Non-Performing Loans (NPLs) and
each other collectively as a board and individually as members. The evaluation, as prescribed by the RBZ, takes into account the structure loans and advances written off.
of the board, effectiveness of committees, strategic leadership, corporate social responsibility, attendance and participation of members and

15 I N P URSUI T O F E XCE L L E NCE

31 August - 6 September 2023 Business Times 27

NMB BT
Continued from Page 15

4.2. Market risk KEY

This is the exposure of the Group’s on and off balance sheet positions to adverse movement in market prices resulting in a loss in earnings and High Moderate/Acceptable Low
capital. The market prices will range from money market (interest rate risk), foreign exchange and equity markets in which the bank operates.
The Group has in place a Management Asset and Liability Committee (ALCO) which monitors market risk and recommends the appropriate Level of Inherent Risk
levels to which the Group should be exposed at any time. Net Interest Margin is the primary measure of interest rate risk, supported by periodic Low – reflects a lower than average probability of an adverse impact on a banking institution’s capital and earnings. Losses in a functional area
stress tests to assess the Group’s ability to withstand stressed market conditions. On foreign exchange risk, the bank monitors currency with low inherent risk would have little negative impact on the banking institution’s overall financial condition.
mismatches and make adjustments depending on exchange rate movement forecast. The mismatches per currency are contained within 5%
of the Group’s capital position. Moderate – could reasonably be expected to result in a loss which could be absorbed by a banking institution in the normal course of business.

Management ALCO meets on a monthly basis and operates within the prudential guidelines and policies established by the Board ALCO. The High – reflects a higher than average probability of potential loss. High inherent risk could reasonably be expected to result in a significant and
Board ALCO is responsible for setting exposure thresholds and limits, and meets on a quarterly basis. The following table demonstrates the harmful loss to the banking institution.
sensitivity to a reasonable change in interest rates, with all other variables held constant, of the Group’s statement of comprehensive income.
Adequacy of Risk Management Systems
The sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on the profit or loss for the year,
based on the variable and fixed interest rate financial assets and liabilities held at 31 December 2021.
Weak – risk management systems are inadequate or inappropriate given the size, complexity and risk profile of the banking institution.
4.3. Liquidity risk Institution’s risk management systems are lacking in important ways and therefore a cause of more than normal supervisory attention. The
internal control systems will be lacking in important aspects particularly as indicated by continued control exceptions or by the failure to adhere
to written policies and procedures.
Liquidity risk is the risk of financial loss arising from the inability of the Group to fund asset increases or meet obligations as they fall due without
incurring unacceptable costs or losses. The Group identifies this risk through maturity profiling of assets and liabilities and assessment of
Acceptable – management of risk is largely effective but lacking to some modest degree. While the institution might be having some minor risk
expected cash flows and the availability of collateral which could be used if additional funding is required.
management weaknesses, these have been recognised and are being addressed. Management information systems are generally adequate.
The daily liquidity position is monitored and regular liquidity stress testing is conducted under a variety of scenarios covering both normal and
Strong - management effectively identifies and controls all types of risk posed by the relevant functional areas or per inherent risk. The board
more severe market conditions. All liquidity policies and procedures are subject to review and approval by the Board ALCO.
and senior management are active participants in managing risk and ensure appropriate policies and limits are put in place. The policies
comprehensively define the bank’s risk tolerance, responsibilities and accountabilities are effectively communicated.
The key measure used by the bank for managing liquidity risk is the ratio of net liquid assets to deposits to customers. The Group also actively
monitors its loans to deposit ratio against a set threshold in a bid to monitor and limit funding risk. The group monitors funding concentration risk
Overall Composite Risk
by reviewing the ratio of top 20 depositors to the total funding. Funding mix is also monitored by monitoring the contribution of wholesale and
demand deposits to the total funding for the bank. Liquidity risk is monitored through a daily liquidity reports produced by the Risk Management Low – would be assigned to low inherent risk areas. Moderate risk areas may be assigned a low composite risk where internal controls and risk
department. This is augmented by a monthly management ALCO and a quarterly board ALCO meetings. management systems are strong and effectively mitigate much of the risk.

The key measure used by the Group for managing liquidity risk is the ratio of net liquid assets to deposits from customers. The Group monitors
its liquidity ratio in compliance with Banking Regulations to ensure that it is not less than 30% of the liabilities to the public. Liquid assets consist
of cash and cash equivalents, short term bank deposits and liquid investment securities available for immediate sale.
4.4. Operational risk
Moderate – risk management systems appropriately mitigates inherent risk. For a given low risk area, significant weaknesses in the risk
management systems may result in a moderate composite risk assessment.
On the other hand, a strong risk management system may reduce the risk so that any potential financial loss from the activity would have only
a moderate negative impact on the financial condition of the organisation.

This risk is inherent in all business activities and is the risk of loss arising from inadequate or failed internal processes, people, systems or from High – risk management systems do not significantly mitigate the high inherent risk. Thus, the activity could potentially result in a financial loss
external events. The Bank utilises monthly Key Risk Indicators to monitor operational risk in all units. Further to this, the Bank has an elaborate that would have a significant impact on the bank’s overall condition.
Operational Loss reporting system in which all incidents with a material impact on the well-being of the Bank are reported to risk management.
The risk department conducts periodic risk assessments on all the units within the Bank aimed at identifying the top risks and ways to minimise Direction of Overall Composite Risk
their impact. There is a Board Risk and Compliance Committee whose function is to ensure that this risk is minimized. The Committee, with the
assistance of the internal audit function and the Risk Management department assesses the adequacy of the internal controls and makes the • Increasing – based on the current information, risk is expected to increase in the next 12 months.
necessary recommendations to the Board. • Decreasing – based on current information, risk is expected to decrease in the next 12 months.
• Stable – based on the current information, risk is expected to be stable in the next 12 months.
4.5. Legal and compliance risk
4.8.2. External Credit Ratings
Legal risk is risk from uncertainty due to legal actions or uncertainty in the applicability or interpretation of contracts, laws or regulations. Legal
risk may entail such issues as contract formation, capacity and contract frustration. Compliance risk is the risk arising from non - compliance with The external credit ratings were given by Global Credit Rating (GCR), a credit rating agency accredited with the Reserve Bank of Zimbabwe.
laws and regulations. To manage this risk, permanent relationships are maintained with firms of legal practitioners and access to legal advice
is readily available to all departments. The Bank has an independent compliance function which is responsible for identifying and monitoring all
Security Class 2023 2022 2021
compliance issues and ensures the Bank complies with all regulatory and statutory requirements.
Long Term BB+ BB+ BB+
4.6. Reputational risk

Reputation risk is the risk of loss of business as a result of negative publicity or negative perceptions by the market with regards to the way
the Bank conducts its business. To manage this risk, the Bank strictly monitors customers’ complaints, continuously train staff at all levels,
conducts market surveys and periodic reviews of business practices through its Internal Audit department. The directors are satisfied with the
risk management processes in the Bank as these have contributed to the minimisation of losses arising from risky exposures.
4.7. Strategic risk
The 2023 external ratings were obtained during the month of June 2023 with a long term rating of BB+.
4.9. Regulatory Compliance
The Group has generally complied with all regulatory requirements that govern its operations. In line with its capital preservation strategy, the
Bank is holding a portfolio of investment property under authorization from the Reserve Bank of Zimbabwe.

This refers to current and prospective impact on a Bank’s earnings and capital arising from adverse business decisions or implementing 5. CAPITAL MANAGEMENT
strategies that are not consistent with the internal and external environment. To manage this risk, the Bank always has a strategic plan
that is adopted by the Board of Directors. Further, attainment of strategic objectives by the various departments is monitored periodically at The primary objective of the Bank’s capital management is to ensure that the Bank complies with the RBZ requirements. In implementing the
management level. current capital requirements, the RBZ requires the Banking subsidiary to maintain a prescribed ratio of total capital to total risk weighted assets.

4.8. Risk Ratings Regulatory capital consists of Tier 1 capital, which comprises share capital, share premium, retained earnings (including current year profit)
and other equity reserves.
The other component of regulatory capital is Tier 2 capital, which includes subordinated term debt, revaluation reserves and portfolio provisions.
4.8.1. Reserve Bank of Zimbabwe Ratings
Tier 3 capital relates to an allocation of capital to market and operational risk.
The Reserve Bank of Zimbabwe conducted an on-site inspection on the Group’s banking subsidiary on 30 June 2021. Below are the final ratings
from the on-site examination. Various limits are applied to elements of the capital base. The core capital (Tier 1) shall comprise not less than 50% of the capital base and the
regulatory reserves and portfolio provisions are limited to 1.25% of total risk weighted assets.
4.8.1.1. CAMELS* Ratings
The Bank’s regulatory capital position at 30 June 2023 was as follows:

Latest RBS** Previous RBS Previous RBS Previous RBS

Ratings Ratings Ratings Ratings Inflation Adjusted Historical Cost*
CAMELS Component 30/06/21 24/11/2016 30/06/2013 31/01/2008
30 June 31 Dec 30 June 31 Dec
Capital Adequacy 2 2 2 4 2023 2022 2023 2022
ZWL ‘000 ZWL ‘000 ZWL ‘000 ZWL ‘000
Asset Quality 2 3 4 2
Restated
Management 2 3 3 3 Reviewed Audited

Earnings 2 2 2 3

Liquidity 2 3 2 3 Share capital 12 536 12 536 17 17

Sensitivity to Market Risk 2 2 2 3 Share Premium 22 224 725 22 224 725 31 475 31 475

Composite Rating 2 3 3 3 Functional currency translation reserve 4 962 835 4 962 835 11 620 11 620

Retained earnings 263 123 124 86 788 654 252 846 942 30 254 039
* CAMELS is an acronym for Capital Adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to Market Risk. CAMELS rating
system uses a rating scale of 1-5, where ‘1’ is Strong, ‘2’ is Satisfactory, ‘3’ is Fair, ‘4’ is Weak and ‘5’ is Critical. 290 323 220 113 988 750 252 890 054 30 297 151

** RBS stands for Risk-Based Supervision. Less: capital allocated for market and operational risk ( 46 446 896) ( 12 922 669) ( 46 446 896) ( 4 136 912)

4.8.1.2. Summary RAS ratings Tier 1 capital 243 876 324 101 066 081 206 443 158 26 160 239

Tier 2 capital (subject to limit as per Banking Regulations) 75 516 058 20 225 270 79 351 800 8 699 043
Latest RBS** Previous RBS Previous RBS Previous RBS
Revaluation reserve 58 192 154 17 259 707 62 027 896 7 749 682
Ratings Ratings Ratings Ratings
RAS Component 30/06/21 24/11/2016 30/06/2013 31/01/2008 Subordinated term loans 7 076 334 2 893 599 7 076 334 926 323
Overall Inherent Risk Moderate High High High Stage 1 & 2 ECL provisions – (limited to 1,25% of risk weighted
assets) 10 247 570 71 964 10 247 570 23 038
Overall Risk Management Systems Acceptable Acceptable Acceptable Acceptable
Tier 1 & 2 capital 319 392 381 121 291 351 285 794 959 34 859 282
Overall Composite Risk Moderate Moderate Moderate Moderate
Tier 3 capital (sum of market and operational risk capital) 46 446 896 12 922 669 46 446 896 4 136 912
Direction of Overall Composite Risk Stable Stable Stable Stable

*** RAS stands for Risk Assessment System.

Total capital base 365 839 277 134 214 020 332 241 855 38 996 195

4.8.1.3. Summary Risk Matrix – 30 June 2021 on - Site Examination

Total risk weighted assets 1 195 612 258 481 807 948 1 195 612 258 154 240 369

Level of Inherent Adequacy of Risk Overall Direction of Overall

Risk Management Composite Composite Risk
Type of Risk Systems Risk Tier 1 ratio 20.40% 20.98% 17.27% 16.96%

Credit Moderate Acceptable Moderate Stable Tier 2 ratio 6.32% 4.20% 6.64% 5.64%

Liquidity Moderate Acceptable Moderate Stable Tier 3 ratio 3.88% 2.68% 3.88% 2.68%

Interest Rate Low Strong Low Stable Total capital adequacy ratio 30.60% 27.86% 27.79% 25.28%

Foreign Exchange Moderate Strong Low Stable RBZ minimum required 12.00% 12.00% 12.00% 12.00%

Strategic Risk Moderate Acceptable Moderate Stable

Operational Risk Moderate Acceptable Moderate Stable

Legal & Compliance Moderate Acceptable Moderate Stable

Reputation Moderate Acceptable Moderate Stable

Overall Moderate Acceptable Moderate Stable

16 I N P URSUI T O F E XCE L L E NCE

28 Business Times 31 August - 6 September 2023

NMB BT
Continued from Page 16

6. GEOGRAPHICAL INFORMATION

The Bank operates in one geographical market, Zimbabwe.

SECRETARY AND REGISTERED OFFICE

Company Secretary
V. T. MUTANDWA

Registered Offices

NMB Head Office NMB Centre

19207 Liberation Legacy Way George Silundika Avenue/Leopold Takawira Street
Borrowdale Bulawayo
Harare Zimbabwe
Zimbabwe

Telephone: +263 08688003347 / 08677008565 - 6 / +(263) (2922) 701169 / +(263) (2922) 68535
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw

Transfer Secretaries
First Transfer Secretaries
1 Armagh Avenue
(Off Enterprise Road)
Eastlea

P O Box 11
Harare
Zimbabwe

17 I N P URSUI T O F E XCE L L E NCE

31 August - 6 September 2023
ANC honcho red flags
Hichilema, Chamisa alliance
BRIAN SITHOLE
A
senior South African
ruling party official has
raised a red flag over
a perceived alliance
between Citizens
Coalition for Change (CCC) leader
Nelson Chamisa and Zambian
leader Hakainde Hichilema working
with some elements to discredit the
just concluded Zimbabwean polls.
This also comes as the Namibian
Election Observer Mission accused
some fellow observers within
the region of working towards
a deliberate agenda to destroy
liberation movements across the
continent hence a vicious attack on
the credibility of the just concluded
elections.
Zimbabwe has been subjected to
attacks by observer missions who
questioned the credibility of last
week’s elections that saw President
Emmerson Mnangagwa emerging
victorious with a 52.6% margin
ahead of his nearest rival Nelson
Chamisa who garnered 44%.
The opposition leader has rejected
the poll outcome and pleaded
with regional and international
intervention to push for new
elections without the Zimbabwe
Electoral Commission (ZEC) a
proposal Zanu PF only scoffed at.
ANC Secretary General Fikile
Mbalula has been on a warpath
attacking the opposition in
Zimbabwe, the Dr Nevers Mumba-
led SADC observer mission and
former Democratic Alliance leader
Mmusi Maimane for working
together with a “grand plan” to
Gabon coup: Army seizes power from Ali
Bongo and puts him under house arrest
Gabon’s President Ali Bongo has
appealed for help after the army
deposed him in a coup and put him
under house arrest.
Speaking from what he said was
his residence, he urged supporters to
“raise your voice”.
Earlier, army officers appeared on
TV to say they had taken power.
They said they were annulling
the results of Saturday’s election in
which Mr Bongo was declared the
winner but the opposition said was
fraudulent.
The officers also said they had
arrested one of Mr Bongo’s sons for
treason.
Mr Bongo’s overthrow would end
his family’s 53-year hold on power in
Gabon.
The country is one of Africa’s
major oil producers, while nearly
90% of it is covered by forests. It
joined the Commonwealth in June
2022, becoming one of the group’s
few members not to have been a
British colony.
In his video message, Mr Bongo
confirmed he was under house arrest.
“My son is somewhere, my wife
is in another place... Nothing is
happening. I don’t know what is
going on,” he said in English, before
again asking for help.
A communications company
that was working for the presidency
during the election has been in
contact with the BBC to confirm the
authenticity of the footage. It said it
had been asked by Mr Bongo’s office
to circulate the video.
InsidePolitics
Wave of drone strikes hits
several Russian regions
— BBC
ANC Secretary General Fikile Mbalula
discredit the polls.
Ironically, Hichilema, Chamisa
and Maimane are close friends with
the Zambian leader now under fire
A coup attempt has unfolded in Gabon as a group of mutinous soldiers announced on national television the cancellation of
recent election results and the dissolution of all state institutions.
In their TV statement the coup
leaders said they were cancelling the
results of the election and dissolving
“all the institutions of the republic”.
It came after Gabon’s electoral
commission said Mr Bongo had won
just under two-thirds of the votes
BUSINESS TIMES
for allegedly sending Mumba on a
mission to discredit the polls to force
a fresh election.
“Grand plan went sour assisted
in Saturday’s election, which the
opposition argued was fraudulent.
One of the soldiers said they
had “put an end to the current
regime” because of “irresponsible,
unpredictable governance resulting
in a continuing deterioration in
China map: India lodges ‘strong
protest’ over territory claims
— BBC
by wannabes like Chris, one fellow
dismissed at SABC,” wrote Mbalula
on microblogging site X.
Mbalula has been consistent
social cohesion that risks leading the
country into chaos”.
Mr Bongo would be replaced by
the head of the presidential guard,
Gen Brice Oligui Nguema, and
that certain officials would “answer
for their actions” following an
in calling for non-interference on
Zimbabwean issues by the West and
now regional bodies he suspects are
pushing an agenda.
investigation.
The country’s borders had been
closed “until further notice”, they
added.
This is the eighth coup in former
French colonies in Africa in the
past three years. However, most
of the others have been further
north, in the Sahel region, where an
Islamist insurgency has led to rising
complaints that the democratically
elected governments were failing to
protect the civilian populations.
In Gabon there is no doubt that
having been in power since 1967,
many have had enough of the Bongo
family dynasty. People were quick to
take to the streets, appearing to be
genuinely delighted. So far there is
little sign of a pushback.
The French government has
condemned the takeover, with a
spokesman calling for the election
results to be respected.
However, French influence in
Africa has waned significantly in
recent years, and a call for yet more
years of Ali Bongo is unlikely to go
down well.
Indeed the military may have
seen French power ebbing and felt
empowered to step in as a result,
with Paris less likely to act in support
of Mr Bongo.
Mr Bongo’s use of English in his
video, rather than French which is
Gabon’s official language, suggests he
was addressing the Commonwealth
rather than France.
Russia and China are among the
other countries that have expressed
29
“I support democracy,” he said.
“We need to support the democratic
outcome and stop meddling in
Zimbabwe’s affairs by way of seeking
to subvert democratic outcomes.
Lift sanctions so that the Zimbabwe
economy can flourish and
Zimbabweans go and work in their
country,” he said in a separate post.
Addressing journalists in Harare,
head of the Namibian observer
mission, Ndali Che Kamati said
similar attempts of dislodging
revolutionary parties are happening
in his home country as well as in
South Africa adding that the strategy
will not work.
“We are former liberation
movements (that is) Zanu PF,
SWAPO, ANC, FRELIMO and
so on and some other countries in
the West especially Europe want
to unseat liberation movements
and that is why you will hear these
pronouncements like the ones we
had now here,” he said in apparent
reference to Mumba’s statement that
has been condemned by Zanu PF
and the ANC.
“There is an agenda and this
agenda is for all our countries. So we
don’t rule out that in Namibia, they
are trying the same, in South Africa,
they are trying the same. So we keep
on inviting them because we are not
hiding anything. We are transparent,
we are free and we want fair elections
but we do not appreciate such kind
of pronouncements. It’s an attack,
a direct attack on our liberation
movements and our governments
and our systems.”
their concern. The European Union’s
foreign policy chief said a military
takeover would increase instability
in Africa.
“This is a big issue for Europe,”
said Josep Borrell.
Internet access was suspended
following Saturday’s election for
security reasons, but was restored
shortly after the apparent takeover. A
curfew is also in place.
As in previous general elections in
Gabon, there were serious concerns
about the process in Saturday’s vote.
Main opposition candidate Albert
Ondo Ossa complained that many
polling stations lacked ballot papers
bearing his name, while the coalition
he represents said the names of some
of those who had withdrawn from
the presidential race had still been
on the ballot sheet.
Campaign group Reporters
Without Borders said foreign media
had been banned from setting foot in
the country to cover the vote.
Both of Mr Bongo’s previous
wins were disputed as fraudulent by
opponents. This time, controversial
changes were made to voting papers
just weeks before election day.
Mr Bongo came to power when
his father Omar died in 2009.
In 2018, he suffered a stroke
which sidelined him for almost a
year and led to calls for him to step
aside.
The following year, a failed
coup attempt saw mutinying
soldiers sent to prison.
— BBC
 31 August - 6 September 2023

BOOKS MUSIC TRAVEL MOTORING

Life Arts
Jorge Vilda: Spanish FA Luis Rubiales: UN Human
exploring options to sack Rights office says Jenni
World Cup-winning head Hermoso stance on kiss can
coach be ‘a turning point’

Eminem and Vivek Ramaswamy revive

battle between pop stars and politicians
W
henever election
season comes
around, it’s a
safe bet that a
politician will try
to glean credibility by using a pop
song on the campaign trail - only
for the star who recorded it to “ban”
them from doing so.
The latest example came when
biotech multi-millionaire and
prospective US Republican candidate
Vivek Ramaswamy launched into
Eminem’s Lose Yourself on stage
at the Iowa State Fair earlier this
month.
At least the 38-year-old can claim
to be a genuine fan. He picked the
song as his “life’s theme song” while
studying at Harvard in 2006, and
often belted out the 2002 hit at open
mic nights and karaoke bars.
“I saw myself, honestly, making
it big through American capitalism,
and that’s why the Eminem story
spoke to me,” Mr Ramaswamy
recently told Politico.
“He’s growing up in the trailers,
with a single mom, and he wants
to make it… I didn’t grow up in a
trailer, but I also didn’t grow up in
the same circumstances that most
of my peers at Harvard did either. I
aspired to achieve what many of their
parents did. It kind of spoke to me, I
would say.”
Soren Baker, author of The History
of Gangster Rap, told the New York
Times: “What Vivek is doing is trying
to align himself with the struggle of
overcoming adversity. From what I
know of Vivek’s policies, objectives
and goals, they’re not in alignment
with Eminem at all.”
The rapper himself seems to agree.
He has now told Mr Ramaswamy,
via performing rights organisation
BMI, to stop using his music.
Still, Mr Ramaswamy may have
already achieved his desired result.
His recent performance managed
to “separate him culturally from his
generally more awkward and older
competitors in the still-early race for
the presidency”, the New York Times
wrote.
Other politicians who angered
pop stars
Mr Ramaswamy has joined a long
list of political figures who have
incurred the wrath of rock, pop and
rap stars. He’s not even the first to get
on the wrong side of Eminem.
In 2014, the rapper and his
publishing company filed a
copyright infringement suit against
New Zealand’s National Party after “This opportunity comes once in a lifetime, yo” - Eminem’s motivational message is now a political rallying cry

Prime Minister John Key used Lose
Yourself in a campaign ad.
The issue goes back much further.
Bruce Springsteen castigated
President Ronald Reagan for
planning to use Born in the USA for
his 1984 election campaign.
When Donald Trump first ran for
president in 2016, Adele, Aerosmith,
the Rolling Stones and REM were all
unhappy at unwittingly providing
his soundtrack.
“Do not use our music or my
voice for your moronic charade of
a campaign,” REM singer Michael
Stipe instructed.
In 2020, Neil Young sued Mr
Trump’s re-election campaign for
using of Rockin’ in the Free World
and Devil’s Sidewalk for what he
called an “un-American campaign of
ignorance and hate”.
In January, Eminem’s mate Dr Dre
Neil Young distanced himself from what he called Donald Trump’s “un-American sent a cease-and-desist letter to US
campaign of ignorance and hate” right-wing congresswoman Marjorie
Taylor Greene, after she used one of
his songs in a promotional video.
Examples of left-wing politicians
angering musicians are rarer, perhaps
because many artists lean that way
and feel less need to publicly make
the point that they haven’t given
approval.
In the UK, Fatboy Slim did
furiously denounce Labour’s use
of Right Here, Right Now at their
2004 conference, the year after the
Iraq War.
When Boris Johnson walked onto
a Conservative Party conference stage
to the sound of indie band Friendly
Fires in 2021, they responded
sarcastically: “If Boris Johnson
needed something uplifting to walk
on to, perhaps he should have used
the sound of a busy food bank.”
At the following year’s conference,
his successor as prime minister Liz
Truss angered M People by walking
out to their hit Moving On Up.
As it turned out, the 1993 hit was
in the UK top 20 for longer than she
lasted as PM.
Can politicians use pop songs?
Legally, US politicians don’t
always need direct permission from
artists. Their campaigns can buy
licensing packages from music rights
organisations like BMI and ASCAP,
which gives them legal access to more
than 20 million songs for political
rallies.
However, artists have the right
to remove their music from that
list. The Rolling Stones have done
so, and Eminem has followed suit
after objecting to Mr Ramaswamy’s
apparently impromptu rendition of
Lose Yourself.
It seems that the rapper didn’t
know his music was covered by
the blanket licence until then - an
apparent problem with the US
model, which resulted in artists like
Adele, Neil Young, Phil Collins and
the estates of Tom Petty and Prince
objecting to Mr Trump’s use of their
music in 2016 and 2020 after the
fact.
More than 50 musicians,
including Sir Mick Jagger, Lorde, Sia
and Blondie, signed an open letter
complaining about that loophole in
2020.
“Being dragged unwillingly into
politics in this way can compromise
an artist’s personal values while
disappointing and alienating fans
- with great moral and economic
cost,” they said.
In the UK, the situation is clearer.
PPL - the body that licences the use
of recorded music - requires political
events like party conferences to
“obtain permission from the relevant
rights holder” before using a song.
— BBC

The Idol: HBO show cancelled after one season

TV drama The Idol - which had
some of the worst reviews of the year
- has been cancelled.
The music industry satire, starring
Lily-Rose Depp and Abel “The
Weeknd” Tesfaye, was blasted by
critics when it was released.
Audiences were also unimpressed,
and rumours of the show’s
cancellation began before its finale
had even aired.
Studio HBO has now officially
confirmed that The Idol won’t be
getting a second season.
A spokesperson said the show
was one of its “most provocative
original programmes” and it had
been “pleased by the strong audience
response”.
They added that the company,
creators and producers had agreed
“not to proceed” with a second
season, and thanked all involved for
“their incredible work”.
Many people thought The Idol
was doomed when HBO cut its
original six-episode run down to
five, although the company issued a
statement after the finale insisting its
fate hadn’t been decided.
The fall of The Idol
The Idol - created by Euphoria
mastermind Sam Levinson - was met
with excitement when it was first
announced.
It follows the story of Jocelyn, a
popstar played by Lily-Rose who gets
involved with mysterious nightclub
boss figure, Tedros, played by The
Weeknd, who also co-created the
show.
But the hype turned sour when
reports of production troubles and a
“toxic atmosphere” on set emerged.
The cast was forced to defend the
show at a pre-release press conference
where Levinson told reporters The
Idol would be the biggest show of
the summer.
That prediction turned out to be a
little optimistic.
When it finally landed, the
response to the show was almost
universally bad.
It was called “the worst programme
ever made”, “toe-curlingly naff”, and
criticised for alleged misogyny and
shallow characters.
It currently has a 19% critic rating
on review aggregator site Rotten
Tomatoes.
Sam Levinson and the cast haven’t
yet commented on news of the
show’s cancellation.
The Weeknd has been back to his
day job, performing gigs at stadiums
around the world.
Lily-Rose Depp is due to appear
in the upcoming vampire film
Nosferatu.
As for Levinson, he’s been working
on season 3 of Euphoria, but it’s
unclear when it will be released
due to Hollywood strikes and the
death of Fezco actor Angus Cloud.
— BBC
FLOP IDOL: Lily-Rose Depp and Abel “The Weeknd” Tesfaye won’t be reuniting for another season.
31 August - 6 September 2023 Business Times 16

BT International

Belgium to no longer provide shelter

to single male asylum seekers
The Belgian government has
imposed a ban on providing shelter
for single men seeking asylum,
arguing its insufficient reception
capacity should be freed for families,
women and children first.
Belgium has long come under
criticism for failing to provide
enough shelter to the thousands of
people who are seeking protection
from persecution in their home
countries. Long lines of tents along
streets outside the main processing
centre in Brussels have become a
stain on Belgium’s reputation.
On Wednesday, Asylum State
Secretary Nicole de Moor said
increasing pressure on asylum
housing was expected over the
coming months and she “absolutely
wants to avoid” children ending up
on the streets this winter. Instead,
single men will have to fend for
themselves.
The move was met with scathing
criticism from human rights
organisations.
“We thought we’d seen it all,
but no. The Belgian government
isn’t just sitting on human rights.
It’s burying them by ‘suspending’
the reception of single male asylum
seekers,” said Philippe Hensmans,
director of Amnesty International
Belgium.
De Moor said an influx of asylum
seekers over the past two years in
the nation of 11.5 million people
had filled the shelter centres to near
capacity of 33,500.
Last year, Belgium had nearly
37,000 applications for protection,
said Fedasil, the federal agency
responsible for receiving asylum
seekers.
On top of the asylum seekers,
Belgium is also providing help to
about 62,000 Ukrainian refugees.
Last year alone, labour courts
convicted Fedasil more than 5,000
times for failing to provide proper
shelter.
Still, de Moor said, “our country
has already done more than its share
for a long time,” and she called on
other EU nations to increase their
efforts instead.
In December, Europe’s top
human rights body urged Belgian
authorities to provide better
assistance to asylum seekers after
hundreds of people slept on Brussels
streets in freezing temperatures.
The Council of Europe’s
commissioner for human
rights said a lack of available
spots in reception facilities was
damaging asylum seekers’ rights
to health and other basic needs.
— Associated Press Migrants take part in a 2021 hunger strike in Belgium to demand they be regularised by the Belgian government to have access to healthcare.
[File: Yves Herman/Reuters]

Australia to hold historic

referendum in October
A
ustralians will vote in a
historic referendum on
14 October to decide
whether to enact an
Indigenous Voice to
Parliament.
If approved, the vote would
recognise Aboriginal and Torres
Strait Islander people in the
country’s constitution, and establish
a permanent body for them to give
advice on laws.
The proposal is the subject of
Elon Musk has drastically slashed X’s workforce since he acquired the company last fierce debate in Australia.
year [File: Adrees Latif/Reuters].
The country has not had a
successful referendum in almost 50
powers of the body - whose advice
would not be binding - would then
be designed and debated by the
parliament.
Announcing the poll date at a
rally in Adelaide, Prime Minister
Anthony Albanese called the vote
“a once-in-a-generation chance to
bring our country together and to
change it for the better”.
The Voice would be “a committee
of Indigenous Australians, chosen
by Indigenous Australians, giving
advice to government so that we can
get a better result for Indigenous
Australians”, he said.
document in 2017 called the Uluru
Statement from the Heart. Drafted
by more than 250 Indigenous
leaders, the statement is considered
the best - though not unanimous
- call to action for reforms which
affect First Nations Australians.
Australia is the only
Commonwealth country that
has never signed a treaty with its
Indigenous people, and advocates
say the Voice is an important step
towards reconciliation.
Indigenous Australians
face disproportionate levels of
disadvantage across society -
racially divide Australians.
But many No campaigners -
including Mr Dutton - have been
accused of race-baiting and spreading
disinformation.
They have in turn accused the
Yes campaign of elitism and of
dismissing valid concerns of everyday
Australians.
Mental health advocates have
warned the intensity and tone of the
debate is taking a toll on Indigenous
people.
Australia last held a referendum in
1999, when it opted not to become
a republic.

US judge allows years.

For it to succeed, a majority of
Australians need to vote yes. There
“You’re being asked... to say yes
to an idea whose time has come - to
say yes to an invitation that comes
something Australia has long
struggled to address.
Opposition leader Peter Dutton,
Only eight of Australia’s 44
referendums have been successful -
the most recent in 1977. None have

age-discrimination
also needs to be majority support in directly from Aboriginal and Torres a Voice opponent, says there it not passed without bipartisan support.
at least four of Australia’s six states. Strait Islander people themselves.” enough detail behind the proposal, — BBC
The composition, functions and It was recommended by a historic and controversially asserts it could

lawsuit against
Musk’s X to proceed
A California federal judge has
refused to dismiss a lawsuit accusing
X, the social media platform
formerly known as Twitter, of
disproportionately laying off older
workers when Elon Musk acquired
the company last year.
US District Judge Susan Illston
said on Tuesday the plaintiff in the
proposed class action, John Zeman,
had provided enough evidence that
the mass layoffs had a greater impact
on older employees to continue
pursuing the case.
Zeman, for example, claimed X
laid off 60 percent of workers who
were 50 or older and nearly three-
quarters of those who were older
than 60, compared with 54 percent
of employees younger than 50.
Illston ruled that the United
States federal law banning workplace
age bias allows plaintiffs to bring so-
called “disparate impact” claims in a
class action, an issue that has divided
courts.
The judge dismissed a claim
that X intentionally targeted older
workers for layoffs, but gave Zeman
a month to file an amended lawsuit
fleshing out that claim.
Shannon Liss-Riordan, Zeman’s
lawyer, said, “This decision validates
the arguments we are making that
the discrimination claims can go
forward.”
X did not respond to a request
by the Reuters news agency for
comment.
The lawsuit is one of about a
dozen X is facing stemming from
Musk’s decision to lay off about half
of Twitter’s workforce beginning last
November.
Those cases included various
claims, including that X laid off
employees and contractors without
the required advance notice and
that Musk forced out workers
with disabilities by refusing to
allow remote work and calling on
employees to be more “hardcore”.
At least two lawsuits have claimed
the company owes ex-employees
$500m or more in severance pay.
Twitter has denied wrongdoing in
those cases.
Liss-Riordan also represents about
2,000 former Twitter employees
who have filed similar legal claims
against the company in arbitration.
— Reuters
Supporters hold placards during a community event in support of the Voice.
Cole Palmer: Chelsea interested in Ryder Cup: Brooks Koepka and Justin
signing Manchester City forward Thomas among six US wildcard picks

BTSPORT
— BBC Sport — BBC Sport

31 August - 6 September 2023

Why Hermoso, Spain’s bravery

could forever change football
T
he fallout from Luis
Rubiales’ unacceptable
actions between Spain
winning the Women’s
World Cup final on
Aug. 20 and today will continue for
a long time to come. So too will the
accusations and counter-accusations.
But the way in which Spain’s
World Cup-winning women, their
colleagues and union representatives
have acted, and what they’ve already
gained, might well be the single most
important, impressive and impactful
group action by footballers in the
modern history of their sport.
To be clear: I’m talking all football,
men’s or women’s.
Jenni Hermoso, Aitana Bonmati,
Alexia Putellas, Olga Carmona
and Cata Coll, plus their Futpro
Union, have potentially catalysed a
seismic impact -- one that should get
every single professional footballer,
male or female, thinking very hard
indeed about how they approach
such conflict in their careers from
now on. Even with a huge amount
of the objectives set by Spain’s
leading female footballers still to be
achieved -- including the removal of
coach Jorge Vilda as part of a deep-
rooted organisational change -- we
have already witnessed the most
important action taken by workers
against authorities since Jean-Marc
Bosman’s legal case destroyed the old
transfer system nearly 30 years ago.
Bosman’s fight was that of a
mistreated individual using the
law to win a horrifically painful
and costly victory. But unlike the
Hermoso case, neither individual
players nor football unions supported
him during most of his rebellion. I
know because he told me so when I
was sat opposite him, in his parents’
flat in Liege, Belgium, at lunchtime
that day in 1995 when the European
Protests around Spain make clear that Jenni Hermoso and the players have their full support, and that this movement could be
seismic in terms of where it goes from here. ALDARA ZARRAOA/GETTY IMAGES
Court Of Justice provisionally ruled
in his favour.
This case involving the Spanish
national team -- one in which the
law hasn’t even been invoked yet,
the odds were stacked against the
underdogs and where the issue has
become a galvanising one around the
globe in such a short space of time,
might eventually be recognised as
the most significant ever action by a
group of players and their entourage.
What Spain’s World Cup-winning
footballers, plus their colleagues and
representatives, have done is sent out
a set of clear, simple and dramatic
messages.
First: Footballers can unite, work
together and achieve extraordinary
things off the pitch, rather than
saving that type of unity for the field
and then having to stand alone on
the issues, which used to be standard
practice.
Second: Let this be a warning to
any malignant football authority,
individual, club or federation if they
believe they can act autocratically,
falsely or indecently. It’s now clear
that the powers that be can be held
accountable even when the odds
seem overwhelming.
Third: In an age where many
might feel disenfranchised, the Spain
team have taught players all over
the world an indelible lesson about
how clarity, unity, determination
and intelligence can spotlight, and
eradicate, such unacceptable misuses
of power.
Let me make my point clear. Last
Friday, when Rubiales made his
repugnant “she started it” speech
about Jenni Hermoso; unilaterally
announced that Vilda, would get a
renewed, longer, €500k per annum
contract and repeatedly roared that
he would not resign, the odds seemed
stacked against La Roja’s players.
For example: just a year earlier,
they’d begun negotiations with the
Spanish FA (run by Rubiales) about
working conditions that the players’
group stated were deleterious to
the squad’s mental, emotional and
physical well-being. Fifteen players
eventually felt strongly enough
to rebel and state that, until their
complaints were listened to and
working conditions improved, they
were withdrawing from the national
team. They refused to be selected --
a different tactic, please note, from
retiring or resigning in perpetuity.
Yet in the aftermath, Rubiales’
FA publicly stated that rather than
address their concerns or continue
in dialogue, the 15 would only ever
be allowed to return to national team
duty when they “recognised the error
of their ways and apologised.”
The subtext: “you’re at fault
and you’ll only be forgiven if you
say sorry and get back in line.”
Gaslighting, you might argue.
Globally, the conditions didn’t seem
favourable either. Megan Rapinoe,
having missed a penalty for the U.S. in
a shock elimination to Sweden at the
Women’s World Cup, was mocked
by politicians with the suggestion
that her activism distracted her. The
Germany men’s national team began
the Qatar World Cup in December
with pictures showing their hands
over their mouths in protest at not
being allowed to wear rainbow
insignia or armbands in support of
LGBTQIA+ rights. When Germany
were eliminated during the group
stage, many of their critics lined
up to correlate their poor on-pitch
performances with their social
protests.
Last Friday, in light of Rubiales’
extraordinary behaviour at the
Emergency General Meeting, history
was firmly telling Spain’s players,
their club mates, their families,
friends and supporters, that the
struggle to be heard and treated
fairly would be slow, painful and
potentially humiliating, at best; at
worst, it would be a pyrrhic win,
with any gains overshadowed by
what they’d lose in the process.
They didn’t care. They knew better,
which is partly how the “underdogs”
unified and turned in one of the
most remarkable, impactful and
uplifting reactions ever seen in the
history of professional football.
Think of those women in this
context. Many in Spain have
subsequently complained that they
were “caught out” by Rubiales
refusing to resign when, last
Thursday night and Friday morning,
there were many sourced stories that
he was definitely going to quit at the
emergency general meeting.
Spain’s women were not that
complacent. They were unified,
ready and fully prepared to take
extraordinary action. It’s arguable
that they acted with precisely the
level of self-confidence, vision and
control they’d used to win the World
Cup.
Within hours of Rubiales’
excruciating speech at Spanish FA
headquarters, which was given a
standing ovation of applause by Luis
De La Fuente and Vilda -- coaches
of Spain’s men’s and women’s teams
-- Spain’s brilliant women spoke
with clarity and purpose. Hermoso’s
statement defined Rubiales’ kiss
as “non-consensual,” saying she
felt “vulnerable and a victim of an
impulse-driven sexist.”
The World Cup winner continued:
that she’d been falsely quoted in the
so-called joint-statement on the night
of the final, and Hermoso argued
that the Spain team didn’t deserve
to be part of “such a manipulative,
hostile and controlling culture.”
Her statement, mindful of the
need for global impact, was issued
in Spanish and English. A social
media hashtag slogan was launched
#SeAcabó, which means “It’s Over.”
It trended, and it unified their cause.
— ESPN

Following a record-
equalling World Athletics
Championships, a buoyant
British team considered
driving back from Budapest
after being stranded by flight
cancellations.
The team won 10 medals
to finish seventh in the medal
table and match their best haul
at a World Championships,
first achieved in 1993.
The event finished on
Sunday but due to the fallout
caused by a data processing
glitch, which has affected
thousands of flights, several
members of the GB squad
remain in the Hungarian
capital.
“We did a lot of searching.
We were looking at driving
back,” GB coach and former
Olympic and World 4x400m
medallist Martyn Rooney told
BBC Radio 5 Live.
“We were looking at trains.
Everything that we could. As
soon as you started looking,
they started disappearing really
quickly.
“Myself, a couple of athletes,
and a few coaches are going to
be on a flight to Manchester on
Thursday. Hopefully it takes
off, hopefully we’re on it, and
hopefully we’ll be back in the
UK.”
Despite the delays, Rooney,
36, said that the team are
in good spirits, and that the
travel disruptions have not
dampened the mood in the
camp.
World Athletics Championships 2023: GB athletics
team debated driving back from Budapest
“We had a great
championships,” he added.
“The guys are just riding
that wave. There is a real good
camaraderie between the guys
and they are just bouncing
around each other.”
Team GB’s standout
performances in Budapest bode
well for the Paris Olympics in
2024 and Rooney gave a special
mention to Matthew Hudson-
Smith, who broke a British and
European record in the 400m
at the Championships with a
time of 44.31 seconds.
The 28-year-old’s training
before Budapest was impacted
by a foot injury that he said left
him unable to walk.
Rooney described Hudson-
Smith’s performance as
“unbelievable”, adding: “To
go to these championships
with the summer that Matt’s
had and actually still have
the belief that he can go and
deliver was incredible. It’s
a record that stood for so
long. Long may it continue.”
— BBC
Matthew Hudson-Smith fell 0.09 seconds short of a first global title as he was denied gold by Jamaica’s Antonio Watson in the 400m.