RTG records a 4% increase in revenue in H1 2016 by refining business model

00HARARE Rainbow Tourism Group (RTG) says the remodelling of its pricing and reduced expenditure driven by the domestic market resulted in group revenues for the first half of 2016 increasing by 4% to  $11.75 mln from $11.27 mln same period in 2015. Group chief executive officer Tendai Madziwanyika in a presentation said the price remodelling…

Pearl Properties H1 to June 2016 weighed down by property portfolio impairments

00HARARE Pearl Properties revenue in the six months to June 2016 declined by 2.41% to $4.16 mln from $4.26 mln same period last year as the property sector remained depressed due to weakening aggregate demand, increasingly affecting the ability of tenants to service their lease obligations. Managing Director Francis Nyambiri told analysts that persistent illiquidity and deflationary pressures adversely…

National Payment Systems transaction down 9%, RTGS value decline 13% in July

00HARARE Transactions processed through the National Payment System declined 9% in July largely reflective of the illiquid state of the economy particularly on high value transactions. According to the Reserve Bank of Zimbabwe (RBZ) monthly economic review for July, the value of NPS transactions declined to $6.31 billion from $6.94 billion in June. With increasingly…

BNC sales rise 53% in five months to August as industry says nickel is now in bull cycle

00HARARE Bindura Nickel Company recorded a 53% increase in tonnes of nickel sold in the first five months of the financial year. In the period, the mining company sold 2 852.17 tonnes compared to the same period in 2015 where 1 864.12t were sold. Chairman Yim Chiu Kwan told the AGM that there had been…

Enhancing Monetary Policy Flexibility Through `De-dollarization’

00By Marcello Estevão and Greetje Everaert BORROWING and saving in foreign currencies—so-called dollarization—seems like a rational response by citizens in some emerging market economies to financial crises and runaway inflation. But dollarization usually persists many years after the problems that triggered it are alleviated and limits the effect that central banks can have on economic…

Agents and receivers to split Diaspora incentive says RBZ as Ecocash partners Mukuru

00HARARE Mobile money firm, Ecocash on Wednesday announced a partnership with remittance service provider Mukuru targeting mostly Zimbabweans living in South Africa. The partnership comes a week after the Zimbabwe government announced it was incentivising international remittances through a bonus of between 2.5 percent and 5 percent of the value of the money sent that…

High country risk affecting partnership deal says FML as group records improved H1 profit

00HARARE First Mutual Holdings says strategic partnerships or capital raise for the group are dependent on country risk perception changes.Speaking at the half year ended 30 June 2016 results briefing yesterday, Group CEO, Douglas Hoto said the planned introduction of bond notes as well as the challenging economic environment, has seen potential investors taking a…

Cash at banks at $120 mln, Nostro balances at $250 mln

00HARARE In order to correct the mismatch between the expected Nostro position, the Reserve Bank of Zimbabwe has arranged $215million stabilisation facilities from international financiers. According to the RBZ, ideally, a certain proportion of funds held under RTGS should be supported by funds in the Nostro accounts at a level equivalent to the import dependence…

August inflation gains 0.18 percentage points to -1.43%

00HARARE The country’s annual inflation rate for August gained 0.18 percentage points but remained in the negative at -1.43% from the July rate of -1.60%. According to data from Zimstat inflationary pressures were seen in the Non Food category in particular education in preparation for the new September school term.  The year on year Non…

Bond notes issuance to start with smaller notes; diaspora remittances incentivised

00HARARE The Reserve Bank of Zimbabwe has unveiled new policy measures to buttress its push towards a production narrative while also ensuring sustained financial stability in the absence of deep austerity measures from Government. The central bank also announced that bond notes, which are due to start circulating at the end of October will be…

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