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Essar shelves iron ore plant construction

HARARE – Essar Africa Holdings (Essar) has put on hold plans to build an iron ore beneficiation plant in Chivhu as government delays transferring reserves to the Indian firm. The Asian steel giant — holding a 54 percent stake in NewZim Steel, formerly state-owned Ziscosteel —indicated that it could only commence the project after getting…

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World Bank rules out Zim bailout

HARARE – The World Bank has insisted that it will not extend any financial assistance to Zimbabwe under the Highly Indebted Poor Country (HIPC) facility unless the country clears its arrears in excess of $6,1 billion. In its annual report released last December, the Bretton Woods institution noted that the southern African country remains in…

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Equities open year in the red

HARARE – Zimbabwe’s equities market opened 2014 in the red with only one counter trading in the positive as analysts claimed there were little prospects of fresh listings in the new year. In yesterday’s trade — the bourse’s first in 2014 — the benchmark industrials index shed 0,06 percent to close at 201, 99 points…

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Govt to tax mobile money transfers

HARARE – Zimbabwe’s cash-strapped government has imposed a tax on mobile money transfers as part of efforts to raise funds and widen its revenue base. Finance minister Patrick Chinamasa, in his 2014 budget, stated that every mobile money transaction will attract a $0,05 levy. This comes on the back of dwindling government revenues, which have…

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AfDB approves $17m Zim power project

HARARE – The African Development Bank (AfDB) has approved a $17,52 million emergency power infrastructure rehabilitation project phase II (EPIRP II) aimed at providing reliable electricity to over five million Zimbabweans. Alex Rugamba, AfDB’s director of energy, environment and climate change, said EPIRP’s objective is to improve the availability and reliability of electricity supply to…

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‘2014 economic growth a tall order’

HARARE – Listed ZB Financial Holdings Limited (ZBFH) says government’s projected 6,1 percent economic growth target is a tall order as the recently announced 2014 budget does not comprehensively address challenges facing the country. About a fortnight ago, Finance minister Patrick Chinamasa presented a belated $4,1 billion budget under which he predicted Zimbabwe’s “investment-starved” economy…

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Ariston posts $2,4m profit

HARARE – Agro-industrial company Ariston Holdings Limited (Ariston) posted a $2,4 million after tax profit in the year to September 2013 spurred largely by rehabilitation of its farming assets. The positive growth comes as the Zimbabwe Stock Exchange-listed firm had recorded a $531 648 loss in prior year period as a result of control deficiencies…

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Govt engages creditors over debt

HARARE – Cash strapped Zimbabwe government is negotiating with external creditors over its gigantic debt but has ruled out its swift clearance owing to serious economic challenges. Zimbabwe’s external debt is estimated to be $6,1 billion. “We are negotiating with creditors and the development partners for arrears clearance, debt relief and new financing. We do…

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Budget offers no solutions: Industry

HARARE – The recently announced $4 billion 2014 Budget has evoked strong reactions from industrialists, who argue that it does not provide solutions to revive the country’s faltering industry, particularly in the face of slackening economic growth. Market experts say Zimbabwe’s manufacturing sector — currently operating below 40 percent capacity — urgently requires close to…

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Art restructures debt

HARARE – Distressed paper and stationery maker Art Corporation Limited (Art) is pursuing options to restructure and reduce its $8,4 million debt. “The initiatives include working with our bankers to restructure the current short-term debt into long-term, and reduction in cost of debt,” said the group’s chairperson Passmore Matupire yesterday, adding that they were also…

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