Southern Africa
Zimbabwe to introduce local ‘ bond ’ currency
Zimbabwe will introduce bond notes , a token currency which will circulate within a basket of multiple currencies despite strong objection from the business community and the public .
Announcement of the plans to introduce the notes — described by President Robert Mugabe as a surrogate currency — were met with stiff resistance , sparking demonstrations and panic withdrawals .
Former Vice-President Joice Mujuru has even taken the government to court , arguing that it “ cannot introduce a bond note and cause it to masquerade as a form of currency . The law has only two options ; either the Zimbabwean dollar or foreign currencies .” Reserve Bank of Zimbabwe governor John Mangudya insisted that the move was necessary to deal with a shortage of bank notes blamed on a widening trade gap and the smuggling out of physical US dollars , Zimbabwe ’ s adopted currency since it dumped its inflation-ravaged currency in 2009 . “ You do not stop a good policy because a group of people does not like them ,” he said .
Mangudya said the bond notes will only be issued as an incentive to exporters . Between May and September , exporters have earned $ 56 million in incentives , which will be paid out in the form of the token currency , central bank data shows .
But analysts point out the denominations being dolled out -- $ 2 and $ 5 bond notes – means that they are meant for public use , and that for all intents and purposes , Zimbabwe has just reintroduced a much hated local currency under disguise .
Fastjet drops Airbus jets for Embraer
Africa-focused discount airline Fastjet will switch to a fleet of Embraer SA regional jets from larger Airbus Group SE planes as new Chief Executive Officer Nico Bezuidenhout seeks to stem losses by better matching capacity to demand .
The fledgling carrier also plans to move its headquarters to Johannesburg from London to pare expenses and bring the company closer to its key markets , Bezuidenhout , who took over as CEO last month , said in an interview in the South African city , the base of his former employer South African Airways .
Fastjet will have returned three leased 145-seat Airbus A319 jets by the end of September and plans to sublease two , with a sixth , which it owns , up for sale . The carrier has agreed short-term leases on three Embraer E190s with 108 seats apiece , the first of which is due in Tanzania within two weeks . Bezuidenhout took over after predecessor Ed Winter quit following clashes with investor Stelios Haji-Ioannou , the EasyJet Plc founder , who had demanded cost cuts . The move to Johannesburg will be made in stages following consultation with the workforce , starting with the commercial department by the end of 2016 . It should reduce head-office expenses by as much as 35 percent .
“ Right now it ’ s about stabilisation ,’’ Bezuidenhout said . “ The right steps are being taken and it ’ s going in the right direction .”
Based on current projections Fastjet should break even in terms of its cash flow from the fourth quarter of next year , he said . The company , which is yet to report an annual profit and lost 16.9 million pounds ($ 22 million ) in 2015 , said in June it remained cash flow negative . It raised 15.2 million pounds in a share sale last month to cover working capital . The shares have dropped 64 percent this year in London .
The initial batch of Embraer planes will be taken on so-called wet-lease terms , including pilots , cabin crew and maintenance staff , so that they can start flying immediately . Bezuidenhout said he plans to replace them , probably with aircraft of the same type , on standard leases and manned by Fastjet employees by April .
2016 Business Times Africa 11