Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 1-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
The Daily Economic and Business News Update, Monday, 10 June 2019
Foreign Currency, Money, Equities & Commodities Markets Overview
Foreign Currency Markets International Stock Markets Year–On-Year Inflation Rates
Currency 10-06-19 07-06-19 Index 07-06-19 06-06-19 Change Country Rate
USD/RTGS 5.8500 5.6150 Dow Jones 25,983.94 25,720.66 +1.02% Zimbabwe 75.86%Apr
USD/ ZAR 14.9311 15.0671 NASDAQ 7,742.10 7,615.55 +1.66% South Africa 4.4%Apr
EUR/ USD 1.1308 1.1266 FTSE All Share 4,008.15 3,970.37 +0.95% Malawi 9.1%Apr
GBP/USD 1.2712 1.2703 Nikkei 225 21,130.15 20,898.03 +1.11% Zambia 16 8.0% May
USD /BWP 10.9051 10.9529 DAX 12,045.38 11,953.14 +0.77% Botswana 2.5% Apr
Old Mutual Implied Exchange Rates Mozambique 3.27%Apr
Currency 07-06-19 06-06-19 May 2019 Apr 2019 Mar 2019 Feb 2019 Namibia 4.5% Apr
USD/ZWL 9.4820 11.0315 9.7191 6.1291 5.4150 4.4057 Kenya 5.49% May
ZWL/ZAR 1.5704 1.5449 1.2609 1.2938 1.3073 3.1868 Ghana 9.5% Apr
Regional Stock Markets Nigeria 11.37%Apr
Index 07-06-19 06-06-19 Change Interest rates 07-06-19 Brazil 4.66%May
ZSE Industrial Index 632.94 636.93 -0.63% SARB Prime Rate 10.25% China 2.5%Apr
ZSE Mining Index 241.02 229.36 +5.08% BOB Prime Rate 5.00% Canada 2.0%Apr
ZSE All Share 189.60 190.63 -0.54% LIBOR One Month 2.412% Germany 1.4%May
JSE All Share 58,099.84 57,090.53 +1.77% LIBOR Three Month 2.453% Australia 1.3%Apr
Ghana SE-CI 2,463.83 2,451.81 +0.49% LIBOR One Year 2.348% U.K. 2.1%Apr
Nairobi All Share 150.47 151.22 -0.50% Federal Discount Rate 1.000% Japan 0.9% Apr
Nigeria All Share 30,432.13 30,527.07 -0.31% Federal Prime Rate 3.500% U.S.A. 2.0%Apr
ZSE Counter 07-06-19 (US$)
06-06-19 (US$)
Last Traded (US$)
Daily Change (US$)
YTD Change (US$)
YTD Change
(%)
Issued Zimbabwe
Shares Market Cap.
(US$)
ZB Financial Holdings 0.48 0.48 0.48 0.000 +0.12 +33.33% 175,190,642 84,091,508.16
First Capital Bank Limited 0.08 0.087 0.087 -0.007 +0.02 +33.33% 2,156,260,176 172,500,814.08
CBZ Holdings Limited 0.49 0.49 0.49 0.000 +0.34 +226.7% 687,231,691 336,743,528.59
Econet Wireless Zimbabwe 1.7016 1.7438 1.7438 -0.0422 +0.8016 +89.07% 2,590,577,000 4,408,125,823.20
FBC Holdings Limited 0.5 0.5 0.5 0.000 +0.3 +150.0% 671,949,927 335,974,963.50
Fidelity Life Assurance 0.11 0.11 0.11 0.000 0.000 0.00% 108,923,291 11,981,562.01
Get Bucks 0.12 0.12 0.12 0.000 +0.083 +224.3% 1,093,567,251 131,228,070.12
NMBZ Holdings Limited 0.2706 0.2706 0.2706 0.000 +0.1806 +200.7% 392,954,830 106,333,577.00
Old Mutual Plc 13.5 13.7289 13.7289 -0.2289 +8.8 +187.2% 64,173,594 866,343,519.00
First Mutual Holdings 0.18 0.18 0.18 0.000 -0.015 -7.69% 690,143,060 124,225,750.80
Mashonaland Holdings 0.0371 0.0371 0.0371 0.000 +0.0025 7.23% 1,859,073,947 68,971,643.43
ZSE Gainers ZSE Losers
Counter 07-06-19
(US$) Previous
(US$) Change (%) Counter 07-06-19 (US$)
Previous (US$) Change (%)
Ariston 0.0540 0.0450 +20.00% FCB 0.0800 0.0870 -8.05%
Masimba 0.1054 0.0882 +19.50% Cassava 1.6993 1.7439 -2.56%
RioZim 2.000 1.8500 +8.11% Econet 1.7016 1.7438 -2.42%
Nampak 0.3225 0.3000 +7.50% Old Mutual 13.5000 13.7289 -1.67%
ZSE Market Data International Commodity Prices
+0.042%
Index 07-06-19 06-06-19 Commodity 07-06-19 06-06-19 Jan 19 Jan 18
Turnover Value ($m) 1.9971 10.2511 Gold (US$/oz) 1,339.90 1,334.80 1,283.50 1,317.10
Foreign Buys ($m) 0.0077 2.8478 Platinum (US$/oz) 806.00 802.00 792.00 942.00
Foreign Sales ($m) 0.0004 1.5185 Silver ( US$/oz) 14.970 14.870 15.470 17.150
Market Cap ($m) 25,069.77 25,239.35 Palladium ( US$/oz) 1,338.00 1,332.00 1,252.00 1,086.00
YTD Change (Market Cap) +30.64% +31.53% Brent Crude Oil (US$/barrel) 63.29 61.67 53.80 66.55
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 2-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
Local Business News
1. Zimbabwe last year enjoyed a trade surplus of US$445 million with China, in a show of the
positive upshots of the growing relations between Harare and Beijing. China’s Ambassador to
Zimbabwe, Ambassador Gou Shaochun, said this in an exclusive, disclosing that he was eager
to see more Chinese investors in Zimbabwe, particularly in the manufacturing sector, which is
key to the country’s industrialisation and modernisation. He said trade between Zimbabwe and
China stood at US$1.3 billion in 2018, with Zimbabwe enjoying the larger share of exports.
(Herald)
2. Vice President Kembo Mohadi says the country’s economy is on the verge of recovery as
government has stepped up its re-engagement efforts in line with its economic trajectory of
transforming Zimbabwe into an upper middle income economy by 2030. In an interview
yesterday, VP Mohadi said the austerity measures, which Zimbabweans were undergoing, were
part of a painful reform process to achieve transformation and modernisation of the economy.
He said last week’s meeting between the government and the European Union (EU)
ambassadors in Harare marked the beginning of a formal dialogue process for re-engagement
which seeks to reintegrate Zimbabwe into the global family of nations. The meeting was based
on Article 8 of the Cotonou Partnership Agreement which governs relations between member
states of the African-Caribbean-Pacific regions and the EU. (Herald)
3. Finance and Economic Development Minister Mthuli Ncube’s austerity measures are paying
dividends with respect to government finances, once in shambles due to successive budget
deficits, with the latest report on the state of public accounts showing that nearly half a billion
RTGS dollars surplus was achieved in the first quarter of this year. A national budget surplus
means a government’s finances are in a healthy state and the extra financial resources can be
used to pay off debts (which reduces interest payable), can help reduce taxation and help
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 3-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
finance new and existing public programmes (social security or medical care). (Herald)
4. The Zimbabwe Revenue Authority has moved to undertake an employee audit to rationalise and
optimise its staff in line with the organisation’s 2019-2023 strategic plans. The audit may result
in the laying off of some employees. The tax collector is already looking for a local or
international human resources consultancy firm to carry out the audit. This is contained in the
government Gazette published last week on Friday under General Notice 949 of 2019. (Herald)
5. Proposed amendments to the Money Laundering and Proceeds of Crime Act will incorporate
provisions for the High Court to issue out unexplained wealth orders, as Government moves to
consolidate efforts to curtail financial and economic crimes such as tax evasion. This comes
after President Mnangagwa made temporary provisions for such orders in the Presidential
Powers (Temporary Measures) (Amendment of Money Laundering and Proceeds of Crime Act
and Exchange Control Act) Regulations, 2018, gazetted in SI 246/2018, but have since recently
expired. (Herald)
6. High carbon ferrochrome exports have registered a 35% jump in the first quarter of the year
compared to 85 000 tonnes produced the same period last year, earning the country US$100
million, according to official statistics. The industry has continued to heed President
Mnangagwa’s call not to export unbeneficiated chrome. The first four months of the year saw
the Minerals Marketing Corporation of Zimbabwe (MMCZ) shipping out 115 000 tonnes of high
carbon ferrochrome compared to 85 000 tonnes last year. Statistics from MMCZ show that the
exports also earned the country US$95.5 million up from US$84.9 million, which signifies a
12.4% increase in monetary value. The jump in value added high carbon ferrochrome exports
has cushioned the industry against depressed global market prices. (Herald)
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 4-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
7. Government says it is in negotiation with a consortium of local and international dairy investors
with a view of concluding a deal that could see the country augmenting current production
which is in excess of 65 million litres. Zimbabwe has for more than a decade failed to produce
enough milk and has resorted to importing from South Africa, losing foreign currency. High
production costs such as electricity, labour, stock feeds and chemicals have been the major
stumbling blocks to the full recovery of the dairy industry. Despite the myriad of challenges
being experienced in the sector, national milk output has been on a marginal increase over the
past few years. (Herald)
8. The country’s sole yeast manufacturer, Lessafre, has embraced Government’s call for
companies to help reduce the import bill, after growing winter wheat on 64 hectares this
season. Zimbabwe imports wheat valued at US$100 million per annum, but current shortages of
hard currency have seen Government imploring millers, bakers and other companies that can
grow wheat and other crops such as soyabeans and sunflower to do so. In an interview,
Lessafre general manager Munyaradzi Mutsvairo said: “We have planted 64 hectares of wheat
this winter season, with a projected yield of about 450 tonnes. (Herald)
9. The Zimbabwe Diamond and Allied Minerals Workers’ Union (Zdamwu) says workers in the
mining sector should be paid in United States dollars since the sector is one of the top foreign
currency earners in the country. Zdamwu general-secretary Justice Chinhema said mining
workers should be given US$790 per month as salary, and not the ZWL$486 they are currently
getting. “If you go around Zimbabwe, the mining industry is one of the lowest paying industries
despite us producing the foreign currency which government is crying for,” he said. “This 80%
increase is nothing to us. (NewsDay)
10. Tobacco sales are down 44% at $292.8 million after 53 days of trade, compared to $523.5
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 5-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
million achieved last season, data from the industry regulator Tobacco Industry and Marketing
Board (TIMB) shows. Deliveries are down 12% at 157.7 million kg from 180.3 million kg
delivered in the same period last year. The prices being offered for the crop is also lower than
last year at an average of $1.85 per kg, down from $2.87 per kg. So far, the highest price
fetched at the auction floors is $4.66 per kg, down from the $4.99 last year. Zimbabwe Tobacco
Association chief executive Rodney Ambrose said despite the challenges, this year’s target of
220 million kg was still attainable. (NewsDay)
11. As the prices of basic goods continue to go nuts, the president of the Confederation of
Zimbabwe Retailers, Denford Mutashu, has called on suppliers, supermarkets and other retailers
to charge reasonable prices for their stocks. Mutashu’s call comes as long-suffering
Zimbabweans are experiencing a fresh wave of steep price increases on basic consumer goods,
most of which have been priced out of the reach of ordinary citizens. Meanwhile, the prices of
basic commodities continue to sky-rocket on a daily basis, and well beyond the reach of many
people, as the RTGS dollar continues to tumble against the US dollar. (DailyNews)
12. Prospect Resources says it is in discussions with international financial institutions for possible
project financing of its Arcadia Lithium project in Zimbabwe. The Australia-based lithium
developer said the discussions are at various stages of maturity and contemplate a variety of
structures from traditional debt and equity financing through to 100% debt financing. Prospect
said it is also in discussions with a European family office consortium (DailyNews)
13. Workers in the sugar milling industry have been awarded a 45% salary increase to cushion
them against the harsh economic conditions, government has announced. According to the
government gazette, the least paid employee in the Sugar Milling Industry who was earning
$217 a month prior to the adjustment, will now be getting $315. On the other hand, the highest
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 6-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
paid employee who was getting $510.35 will now be earning $740.82 with the new
arrangement. (DailyNews)
Regional News
1. South African Airways (SAA) appointed its head of operations as acting chief executive on
Friday and said it needs 4 billion rand ($265 million) from the government to survive the current
financial year. Zukisa Ramasia becomes interim CEO after Vuyani Jarana unexpectedly resigned
last week after less than two years in the job, saying his turnaround strategy was being
undermined by a lack of state funding and too much bureaucracy. (Reuters)
2. A row within South Africa’s ruling African National Congress (ANC) party about the role of the
country’s central bank is unnerving investors because it is being driven by bitter factional battles
rather than sober policy debate. Broadening the South African Reserve Bank’s remit to promote
jobs and growth as well as taming inflation would not be seen by analysts as a problem per se,
given other central banks including the U.S. Federal Reserve have similar dual mandates.
(Reuters)
3. A group of 30 international and local campaign groups have petitioned two banks to abandon
plans to raise funds to build an oil pipeline to export Ugandan oil, saying the project would
damage local livelihoods, water resources and wildlife. The 1,445 km (900 mile) pipeline, which
will run from fields in the west of Uganda to Tanzania’s Indian Ocean port of Tanga, is vital to
developing the East African nation’s oil reserves. South Africa’s Standard Bank Group and
Japan’s Sumito Mitsui Banking Corporation are helping to raise the debt needed to finance the
$3.5 billion pipeline. (Reuters)
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 7-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
4. South Africa’s net foreign reserves dipped to $43.178 billion in May from $43.245 billion in April,
the Reserve Bank said on Friday. Gross reserves fell to $48.329 billion at the end of May from
$49.538 billion in the prior month, central bank data showed. The forward position, which
represents the central bank’s unsettled or swap transactions, was $1.152 billion in May from
$1.874 billion in April. (Reuters)
5. Ethiopia, Africa’s top coffee producer, is expected to export a record-high 4 million 60-kg bags
of coffee in 2019/20, the U.S. Department of Agriculture attache in Addis Ababa said, as yields
improve and the area dedicated to coffee farming increase. Production of coffee is expected to
rise to 7.35 million tonnes in 2019/20, a 1.4% increase from the 2018/19 season. Exports
account for just over half of overall production, and are forecast to grow 0.5% in 2019/20 from
the previous year to reach 4 million bags. Coffee is Ethiopia’s most important export. Exporters
in the country are facing increased regulation, the USDA said, with the government banning
several exporters in recent months for defaulting on their contracts and hoarding beans.
(Reuters)
6. The Economic Commission for Africa (ECA) Executive Secretary, Vera Songwe, says African
Continental Free Trade Area (AfCFTA) is an exciting and promising stimulant for economic
growth in Africa. She says the trade bloc will boost infrastructure investments as well as help
address the economic causes for African migration to Europe, among others. Songwe said this
when she met and discussed with a European Union delegation in Addis Ababa, Ethiopia on the
role of non-state actors in ensuring the success of the AfCFTA. The EU delegation was led by
the President of the European Economic and Social Committee (EU-EESC), Luca Jahier.
(Mwnation)
7. Malawi, NBS Bank plc has pledged to consolidate gains made over the past two years while
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 8-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
repositioning itself to be among the country’s top three commercial banks. The bank’s board
chairperson Vizenge Kumwenda said this on Wednesday on the sidelines of the bank’s 15th
Annual General Meeting in Blantyre. He said the Malawi Stock Exchange (MSE)-listed bank plans
to continue growing capital organically through profits, optimisation of the statement of
financial position and recovery of previously written-off debt. However, Kumwenda, who is also
managing director of Nico Holdings plc, said with interest rates going down, the bank’s focus
will be on increasing its lending space and moving some of its capital from the money market to
grow the lending book. “Interest rates in the banking industry have gone down significantly
which has cost us margins we get from lending,” he said. (Mwnation)
8. Namibia, The Government Institutions Pension Fund improved its market value by N$6.6 billion,
up N$117 billion during the 2018/19 financial year compared to N$110.4 billion seen during the
2017/18 financial year. Moreover, the fund plans investing N$7.2 billion in the local economy,
and channel the funds largely into infrastructure projects. This investment is in line with the
fund aiming to achieve the 45% domestic asset requirement, as expected by the Namibia
Financial Institutions Supervisory Authority's regulation 13. (Namibian)
9. COCA-Cola Beverages Africa have installed 1 740 solar panels and nine solar inverters at their
Windhoek factory. The inauguration of the sustainable solar power system took place on
Wednesday. Coca-Cola Namibia Bottling Company (CCNBC), a subsidiary of Coca-Cola
Beverages Africa (CCBA), will now derive 9% of the factory's total power requirements from a
clean, sustainable energy source, which is the sun. In a year, the new system will reduce
carbon emissions by 832 tonnes, which is equivalent to planting 80 117 trees. CCBA chief
executive officer, Jacques Vermeulen said the company invested just over US$388 000 (roughly
N$5.7 million) in this project. A feasibility study is also currently being conducted for using solar
power as a clean, sustainable, distributed energy resource across nine of the 12 African
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 9-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
countries in which they currently operate. (Namibian)
10. Bank Windhoek has collaborated with John Deere Financial to offer loans to farmers on an
interest rate that is below the market. According to the bank's head of corporate affairs, Hayley
Allen, the loans are meant for all John Deere agricultural equipment. Allen told The Namibian
this week that the bank signed an agreement with John Deere Financial to provide these loans
to drought-stricken farmers. Interest rate is the cost for money one has to pay back to the
bank/lending institution when they borrow money. A below-market interest rate is lower than
the market-determined cost for borrowing, which will lower the cost for borrowing to the
farmers in this case. (Namibian)
11. The Economics Association of Zambia has commended Power Utility Company ZESCO for its
proactive stance in managing the projected energy deficit across the sectors. Dr. Austin
Mwange, the Association Vice President said the EAZ acknowledges the systemic effects of
drought across the Southern African region as a consequence of climate change effects,
resulting in below average rainfall in areas where the Zambezi and the Kafue rivers flow hence
impacting power generation capacity negatively. (LusakaTimes)
12. The Bank of Zambia has called on business entities and citizens to focus on opportunities that
exist in the country amidst the economic challenges facing the country. Bank of Zambia
Governor Denny Kalyalya has also urged Barclays Bank Zambia and Absa Group to explore ways
in which the Bank can assist in addressing some of the challenges facing the country such as
load shedding. Dr. Kalyalya said this during the groundbreaking ceremony for the Barclays Bank
Zambia new Head office in Lusaka yesterday. (LusakaTimes)
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 10-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
13. Kenya and Tanzania are pushing to resolve their long-standing trade disputes, which have
slowed down the flow of goods across common borders. Trade officials from the two countries
held bilateral meetings in Arusha, in April, to try and resolve the many contentious trade issues,
including rules of origin for some products and persistent suspicion over the quality of products
traded across the borders. People familiar with the negotiations told The EastAfrican that the
first bilateral meeting was held in September 2017 and the next meeting is scheduled for
Mombasa in early July. (AllAfrica)
14. Motorists, traders and businesses in Nairobi City County will now remit their taxes through an
internally managed system from Monday morning. This is after the County officially parted ways
with Webtribe Limited, the company that was contracted to collect revenue on behalf of the
county back in April 2014. Finance Executive Charles Kerich, said the county was now ready to
collect revenue on its own and they are committed to achieving their set revenue collection
targets. "Our aim is to achieve our annual targets and we are working on ways we make it
possible internally," said Kerich. (AllAfrica)
International News
1. The U.S. dollar index fell on Friday to its lowest since March 26 after the U.S. Department of
Labor’s employment report showed that job growth slowed sharply in May and wages rose less
than expected. The weak data suggest that the loss of momentum in economic activity has
spread to the labour market, which will further support forecasts that the Federal Reserve will
cut interest rates this year. Rising expectations of a cut have pulled the dollar 1.2% lower this
week. (Reuters)
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
Tel: +263 (0)8677002001
-Page 11-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
2. China’s exports unexpectedly returned to growth in May despite higher U.S. tariffs, but imports
fell the most in nearly three years in a further sign of weak domestic demand that could prompt
Beijing to step up stimulus measures. Some analysts suspected Chinese exporters may have
rushed out shipments to the United States to avoid new tariffs on $300 billion of goods that
President Donald Trump is threatening to impose in a rapidly escalating trade dispute. (Reuters)
3. Oil prices rose today after Saudi Arabia said producer club OPEC and Russia should keep
supplies restricted at current levels, and in relief that the United States withdrew a tariff threat
against Mexico, removing a cloud over the global economy. Despite Monday’s increases, traders
said concerns about the health of the global economy and its impact on fuel demand still
weighed on oil market sentiment. Front-month Brent crude futures, the international benchmark
for oil prices, were at $63.61 at 0411 GMT, 32 cents, or 0.5%, above Friday’s close. (Reuters)
4. Business sentiment among Singapore firms edged up slightly for the first time after three
consecutive quarters of decline, according to the latest Business Optimism Index by the
Singapore Commercial Credit Bureau (SCCB). The index was +6.91 %age points in Q3 2019, up
from +5.08 percentage points in Q2. However, the index lost ground versus its +10.58 %age
points figure in 2018's third quarter. The figures were derived from polling 200 business owners
and senior executives representing major industry sectors across Singapore, and are calculated
by subtracting the %age of respondents expecting decreases from the percentage expecting
increases. (BusinessTimes)
5. Risks to South Korea's economic growth have risen mostly from outside the country, warranting
stronger policy measures to support growth, the country's top presidential economic policy aide
said. The remarks came as investors have been increasing bets that the central bank would cut
its policy interest rate in the next few months for the first time since mid-2016 to keep Asia's
Group Corporate Strategy
ZB Financial Holdings Limited
1st Floor, 21 Natal
21 Natal Road, Belgravia, Box 3198, Harare
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-Page 12-
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fourth-largest economy from weakening further. "Along with the slowing global economy,
downside risks to the South Korean economy have also risen," Mr Yoon Jong Won told
reporters, although he did not comment on interest rate policy. Mr Yoon made the remarks on
Friday, on condition of publication on Sunday. (BusinessTimes)
6. British Foreign Secretary Jeremy Hunt, a contender to replace Theresa May as prime minister,
said on Sunday that German Chancellor Angela Merkel had indicated the EU would be willing to
renegotiate the Brexit divorce deal. Mr Hunt, one of nearly a dozen Conservatives vying to
succeed Mrs May after she resigned as party leader Friday, said he spoke with Dr Merkel at this
week's D-Day commemorations and was convinced changing Mrs May's agreement was
possible. "She said that of course with a new British prime minister we would want to look at
any solutions you have," he told Sky News. "I'm absolutely clear that if we take the right
approach to this, the Europeans would be willing to negotiate on the package." (BusinessTimes)
7. Bank of Japan Governor Haruhiko Kuroda on Saturday maintained his view the global economy
will recover in the latter half of this year, but warned that uncertainties remain as fallout from
the Sino-US trade war deepens. Mr Kuroda said the global economy is "stabilising somewhat"
from its weakness late last year, as central banks maintain supportive policies and China takes
stimulus measures to prop up growth. "There's no change to the view the global economy will
pick up in the latter half of this year," Mr Kuroda told reporters ahead of the Group of 20
finance leaders' meeting to be held in the southern Japanese city of Fukuoka. "But uncertainties
remain, particularly those regarding trade," he added. (BusinessTimes)
8. US job growth slowed sharply in May and wages rose less than expected, raising fears that a
loss of momentum in economic activity could be spreading to the labour market, which could
put pressure on the Federal Reserve to cut interest rates this year. The broad cool-off in hiring
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
reported by the Labor Department on Friday was before a recent escalation in trade tensions
between the United States and two of its major trading partners, China and Mexico. Analysts
have warned the trade fights could undermine the economy, which will celebrate 10 years of
expansion next month, the longest on record. (BusinessTimes)
9. China’s banking regulator said risks at small- and mid-sized banks are manageable, a central
bank publication reported on Sunday, in the latest move to soothe investors' concerns after the
government took over a troubled regional lender last month. The China Banking and Insurance
Regulatory Commission (CBIRC) took control of Inner Mongolia's Baoshang Bank due to
"serious" credit risks on May 24, rattling Chinese markets and prompting the People's Bank of
China (PBOC) to inject cash into the banking system. While authorities said it was a standalone
case, the seizure came as Beijing is urging banks to boost lending to help cushion an economic
slowdown, fuelling concerns about rising debt and more bad loans. (BusinessTimes)
10. The Reserve Bank of India has eased rules to give lenders laden with bad debt more time to
resolve delinquent accounts and lifted a deadline for pushing defaulters into bankruptcy courts.
The directive, which also covers shadow banks, gives lenders 30 days to review a delinquent
account and a further 180 days to implement a resolution plan, loosening the previous timeline.
Lenders must make additional provisions if there are delays in executing the plan, the central
bank said on Friday. (BusinessTimes)
11. China's foreign exchange reserves unexpectedly bounced back in May after a surprise drop the
previous month, suggesting the central bank intervened only lightly to cushion a sharp fall in
the yuan currency after US-Sino trade ties soured. The country's foreign exchange reserves
rose US$6 billion in May to US$3.101 trillion, central bank data showed today. Economists
polled by Reuters had expected reserves to drop US$5 billion to US$3.090 trillion. The
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Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
unexpected rise in May was due to valuation effects and changes in asset prices, the foreign
exchange regulator said in a statement accompanying the data. (BusinessTimes)
12. Financial leaders of the world's top economies are likely steer clear of promises to avoid
protectionism in their communique on Sunday, amid an escalating trade conflict between the
United States and China, officials said on Saturday. Finance ministers and central bank
governors from the world's 20 biggest economies, the G20, are meeting this weekend in the
Japanese city of Fukuoka to discuss the global economy, with trade tensions between the
world's two biggest economies seen as a key risk to global growth. "As for trade, the language
will be reminiscent of previous communiques," said one G20 official familiar with the draft of
the joint statement. (BusinessTimes)
13. International Monetary Fund (IMF) managing director Christine Lagarde warned on Saturday
that the increasing presence of technology giants using big data and artificial intelligence could
cause a significant disruption to the world's financial system. The rapid development of financial
technology (fintech) has increased access to cheap payment and settlement systems for low-
income households in emerging countries where traditional banking networks are scarce. But it
has raised concern about the increasing dominance of big technology firms in mobile payments,
which could force global policymakers to rethink the way they regulate the banking system and
ensure financial settlements are executed safely. (BusinessTimes)
14. China's central bank governor said there's "tremendous" room to adjust monetary policy if the
trade war deepens, joining counterparts in Europe and the US in displaying readiness to act to
support the economy. In an exclusive interview with Bloomberg in Beijing, People's Bank of
China Governor Yi Gang also signaled that he's not wedded to defending the nation's currency
at a particular level, and stressed that the value of the yuan should be set by market forces.
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1st Floor, 21 Natal
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-Page 15-
Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial
Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document.
(BusinessTimes)
15. The UK and South Korea have signed an in principle free trade agreement (FTA) that seeks to
maintain existing trade arrangements post-Brexit. International Trade Secretary Liam Fox
signed the deal with his South Korean counterpart Yoo Myung-hee in Seoul. The preliminary
agreement marks the first post-Brexit trade deal the UK has secured in Asia. The agreement is
roughly in line with the terms of the existing Korea-EU FTA. It would cover South Korean
exports including cars and auto parts. South Korea exports mostly cars and ships to Britain,
while it imports crude oil and cars. The agreement is designed to provide stability under a no-
deal Brexit, with the UK due to leave the EU on 31 October, with or without a deal. (BBC)