eBusiness Weekly
Kudzanai Sharara
As we head towards the end of 2018, here are some of the numbers that stood out in the year that was. These are the numbers that dominated headlines in the country, bringing joy or despair to Zimbabweans.
Two percent
This is probably the most controversial number for 2018.
Finance and Economic Development Minister Mthuli Ncube, introduced a 2 percent tax for all electronic transactions. Following the move, which came at the same time as separation of bank accounts to FCA Nostro and FCA RTGS, prices of basic products sky rocketed to unprecedented levels.
This led to inflation galloping to double digit levels. Following the public and corporate outcry, the tax has since been amended and some electronic transactions are now exempted from paying the tax.
The tax now applies on transactions of $10 and above only. Other transactions that are now exempt include intra-company transfers, funds for the payment of salaries, transfers for the payment of tax, among others.
President Mnangagwa defended the new tax saying the levy is more than necessary for the country’s debt-ridden economy. Where we stand today as Zimbabwe, for us again to become a viable economy, a solid economy, we are going to take measures that are going to be painful and this is one of such measures, he said.
Five percent
This is the pay cut for senior Government officials including the Presidium.
In announcing the salary cut, Minister Ncube said: “It is critical that we reduce public spending on employment costs, and the move affected all senior positions from principal directors, permanent secretaries and their equivalents up to deputy ministers, ministers and the Presidium.
“This is also extended to basic salaries of those in designated posts in State-Owned Enterprises (CEOs, executive directors and equivalent grades), including Constitutional commissions and grant aided institutions,” said Prof Ncube.
Minister Ncube, however, said the savings from the salary cuts will not be significant but the move is a symbol that Government is serious about reducing its recurrent spending and budget deficit.
30,1 percent
This is the latest inflation figure. Zimbabwe’s annual inflation rate for the month of November continued with its record breaking trend to 31,01 percent, gaining 10,16 percentage points on the October 2018 rate of 20,85 percent.
This rate of prices increases, consumers say, evokes the hyperinflation period of 2008 when inflation reached 500 billion percent. The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 42,71 percent while the non-food inflation rate was 25,40 percent, according to figures released by the Zimbabwe National Statistical Agency (Zimstats).
Despite the huge jump, Zimbabweans still doubt the official inflation figures as most food stuffs have since doubled in price.
“We always take the figures from the Zimstats with a pinch of salt. It’s hard to believe them because we experience the price increases every day and most products have more than doubled in price,” said Walter Mandeya an analyst with Trigrams Investment.
Zimstats and other analysts, however, defend these figures saying they are compiled using the same international guidelines and manuals (United Nations Statistical Commission’s guidelines and manuals) that the other national statistical offices use.
$16 billion
By June this year, the country was reported to have attracted investments commitments worth $16 billion according to President Mnangagwa.
“We have attracted into this country around $16 billion in terms of projects alone and this must go towards the creation of employment and bringing of technology into the country,” said President Mnangagwa back in June.
As usual some were sceptical on the deals and whether they would come to fruition or were just pie in the sky like some of the mega deals announced during the first republic.
However, some of the deals mentioned have since come to fruition. China has since released $1 billion for Hwange 7 and 8.
On the Karo Resources deal, it seems there is some movement with the investor having completed the geophysics programme that will precede mining operations.
The Prospect Resources’ Lithium deal has also come to fruition and exports have already started. The miner, recently exported 100 kilogrammes of lithium carbonate-used in the production of electric vehicles batteries to Australia.
252,5 million
Zimbabwe’s tobacco output for the 2017 /18 cropping season hit a record high of 252,5 million kilogrammes. This amount of tobacco is 34 percent higher than that sold in the previous season and also surpasses the highest amount of tobacco ever sold in the country of 236 million kilograms in the year 2000. The value of the tobacco sold amounted to $737 million.
699,89 points
The ZSE’s main Industrials Index reached an all-time high of 699,89 points on October 11, 2018. On this day, the Industrials Index had a year-to-date gain of 110,16 percent while the ZSE Top 10 index was the biggest mover with a year-to-date gain of 127,30 percent. On the day the market recorded its biggest deal after 4 769 086 Delta Corporation shares valued at $20,8 million changed hands at 436,35 cents.
The market has, however, been volatile since then and has lost value with the main industrials index closing at 494,97 points as of Tuesday this week. The year-to-date gain is now only 48,63 percent and following.
57
The number of listed companies currently trading on the Zimbabwe Stock Exchange following the addition of Seed Co International, Cassava Smart Tech. As of Tuesday, Cassava Smart Tech was the biggest counter on the ZSE at $3,8 billion by market capitalisation.
On its first day of trading, the counter jumped by 240 percent, the highest one-day-gain by any counter since dollarisation. Some counters such as Colcom and NicozDiamond were de-listed from the bourse this year.
