The Observer Issue 17 | Page 12

Business 12 - 16 March 2014 - The Observer The Observer The Observer - 16 March 2014 -- 12 08 December 2013 10 Fidelity set to develop 5,800 stands 149 companies apply F liquidation for Business Reporter “Topographical and cadastral need for balance between rewarding IDELITY Life Assurance surveys have been completed and shareholders and conserving cash Limited is targeting to procurement of earth moving for the Fidelity Southview Park develop over 5,800 stands equipment has begun with the development. at Southview Park along bulk of the necessary equipment Regarding non-insurance Masvingo Road, management has having been ordered and being subsidiaries, the micro fiancé revealed. delivered. Significant work on site unit made a profit of US$0,18 The company recorded a 23 will commence once rains subside,” million whilst the medical aid firm percent increase in149 companies filed said. applied for liquidation. The number increased to million tomaterial required to revive them. contributed US$0,16 buy basic the T least gross premiums he for to US$10,8 million for the year toCourt He said 73in 2011 and more than doubledprofit. the High other traditional group’s in 2012 “The major problem we face as judicial liquidation at in to in December 31 failing from US$8,8with high focus will be on reducing markets, to 149. The asset management company of access to capital in order managers is lack 2012, 2013 to keep up million. costs, premiums are performed as to address these The operational costs a local think tank said on ensuringnumber could be higher in 2013well buoyed by theproblems,” he said. Another judicial Friday, and more are seen going under in 2013 the economy maintaining in the aftermath Total revenue, at US$15 million, collected and generally is stuttering positive stock market performance manager, Reggie Saruchera as economic conditions worsen. year market sharea adding that, “We election that extended of Grantyear to of disputed July 31 are to register a profit for the Thornton said the empowerment was 15 percent lower than prior Companies lower stand sales at hopeful President Robert Mugabe’s US$0,18 million. largely due toare battling with high financing that all these initiatives will 33-year rule and law requiring foreign owned companies to be costs, with banksincharging as much result in sustainable growth forhas reduced consumer 51 percent owned by local blacks was making as 20 a cash squeeze that the Fidelity Life Park Manresa. “The non-insurance subsidiaries it difficult made percent interestlocal the Zimbabwe Economic going forward.” and authority and group demand. “To date, led by the micro fiancé unit for potential investors to put their Policy Analysis and Research Unit (ZEPARU) Cecil Madondo had Tudor House money into the companies. of reasonable contributions distressed environmental management agency Chapereka said directors “There must be a difference on how the said most of those that applied for liquidation Consultants who has managed 25 companies Fidelity Life Assurance chief executive Mr Simon Chapereka approvals have been secured,” said recommended maintaining a group’s profit. Micro finance said. were on the basis that they could not pay their in nearly two decades, said most companies company is being bailed out,” heasset The management the low propensity of the economy MD Simon Chapereka about the dividend of US$375,000 unchanged continues to do well especially from were placed under judicial management or He called for acompany’s profitability though to save and low disposable income.■ legislation that forces debts Southview Park project. from previous Labour costs in Zimbabwe are among thethe liquidationyear due to the salary-basedlack shareholders of distressedis companies to due to gross mismanagement, loans,” he said. modest, still commendable given highest in Southern Africa while the electricity of effective corporate governance structures relinquish power for the benefit of creditors. “They don’t want to relinquish shareholding, costs remain prohibitive and most companies and high level of indebtedness. “You find a company technically insolvent they don’t have money to put into the business are stuck with aged machinery that is expensive sometimes with more liabilities than assets and at the same time the depositors and to maintain. Reggie Saruchera of Grant Thornton creditors are suffering, where do we draw the The number of companies seeking regardless of its viability,” he said. employers making it difficult for a judicial liquidation has progressively increased since He said undercapitalisation was a major line?” he said. He also complained needs of Barclay’s customers in to retrench where necessary cashback dollarisation in 2009. In 2010, 50 companies, challenge facing most companies under the about the country’s manager and Family packages. A in order were not and consistent to The company. almost five times more than the prior year judicial management resulting in them failing labour laws which an efficient favourable to way. revive abenefit which is redeemable after plan comes in three main categories five years without a claim is available namely Ordinary, Ultimate and for certain segments. Premier which are tailored for Since its inception at a soft different customer segments launch phase there has been good characterised by flexible options. feedback for the product. There is a waiting period of three Barclays is a major global months for all natural deaths but financial services provider engaged accidental deaths are not subject to in retail and commercial banking, he United States Embassy government officials from the Zimbabwe chapter is to capitalize this. AWEP was established in coincides with investment banking, credit cards, the Africa Growth has supported the launch Ministry of Women Affairs, Gender on providing (opportunity) for JulyUnder the plan, aUnited of four Opportunity Act (AGOA) Forum 2012 by the family States’ wealth mana gement and investment of the Zimbabwean and Community Development; women in business. Department premium of from as when held in Washington, with and may pay a of State through management services, DC, an Chapter of the African Women and the Ministry of Industry and “We believe as AWEP that once international exchange programs is designedinternational presence in little as $3 for a USD500 cover per extensive to help the entrepreneurs Entrepreneurship Program (AWEP) involving American and African build business alliances,and Asia. develop individual. Europe, the USA, Africa at a funtion in Harare recently. women. advocacy and communication “The Funeral cash plan is With over 300 years of history Business Reporter work to expand and aims to provide a cash outlay of We want to offer our support at a The group will The program identifies and builds skills, network, identify resources to designed to make the life of and expertise in banking, Barclays arclays Zimbabwe has and support Zimbabwean women US$500 to US$10 000 per individual time when the customer really needs networks of women entrepreneurs advance women›s entrepreneurship, customers easier by offering operates in over of opportunities in businesslaunched asFuneral them upon claim. as well a assist Cash across sub-Saharan Africa who own and take advantage50 countries and it. financial support to cater for the employs over 150,000 people. export goods and underwritten by Plan, services to other Speaking on the launch of the “As Barclays continues to seek and run small and medium scale for US partnerships through immediate Barclays moves, lends, invests and countries, Zimnat Insurance, as a product, Barclays Banking Director, opportunities through which it can businesses. cash funeral costs, AGOA. including the United States. its Life Assurance product Mrs Valeta Mthimkhulu said: provide convenience, not only to its liability settlements of the bereaved protectsbetween for over 42and the Since its establishment, four Trade money Zimbabwe million part of within 24-hours of the passing on United States continues to blossom “I am excited to see the launch of “Our aim as Barclays is to provide customers but consumers across the Zimbabwean women have customers and clients worldwide.■ suite. of a loved in Mthimkhulu and with Zimbabwe recording a trade thisThe newchapter inCash Plan is solutions to problems that affect country,” she said. AWEP Funeral Zimbabwe,” participatedone,” the programsaid. said Ambassador Bruce Wharton at form the core availablegroup that is surplus in seven of the last nine The plan is of the in Individual available to Barclays account holders our customers in their everyday life. The product is structured to meet the launch. establishing a Zimbabwean chapter. years. According trade data from “I have often said that Zimbabwe’s They, along with four other the United States Department of strongest resource is its people – and participants from other U.S. Commerce, Zimbabwe imported this is a perfect example of those exchange programs such as the US$53 million worth of goods from resources in action. I am confident Fortune/State Department Global the United States while the United that these women, who have taken has said Women’s in building the Christopher Mutsvangwa. HINA’S ambassador Zimbabwe, which holds the world’s as $5.3 billion in investment,Mentoring Program, form States purchased US$52 million of initiative not only to start their the founding committee for the goods. his country is willing to help second-biggest platinum reserves after South plant and boosting output, to make it viable. “It’s now up to the Ministry of Mines to United States Ambassador Bruce Wharton own businesses but to contribute chapter. Zimbabwe establish its first Africa, is demanding that companies mining Finance Minister Patrick Chinamasa in decide,” he said. to the Zimbabwean economy, will Participants to the AWEP For more information please platinum refinery the Commerce. should build a January led a delegation to China to seek make impact the future of asthe country the metal in the country women are given an opportunity to exchange programs travelled to“We want to have a AWEP chairperson, the contact the refinery here, so we attempts to economy.” concessional loans, Lin Lin said. Theweeks where they them to show our good will Lawson Zimbabweanboost its economy by processing refinery there. of House succeed, they will do so,” she said. Barbara Rwodzi, CEO U.S. for three ministry said to AWEP offices, 34 on our the precious metalchapters than exporting rather have of BarRue Knitwear, a successful Anglo American Platinum “AWEP believes insend another delegation next week, policymakers, Avenue; Milton Park; and China Ltd. (AMS), will expanding met business leaders, he relations between Zimbabwe Zimbabwe, Similar AWEP semi-processed in we gave Tel. Platinum a license” to seek been establishedore. countries such business Impala Platinum (IMP) women›s role in shaping national companies and industry associations, Global 08644110932 or visit www. that exports handmade Holdings Ltd. said. “China is and quite sophisticated garments, andfounding chairperson Ltd. (AQP) climates and delegation non-profit groups advocating for in the country. not Zambia. Sylvia in that Aquarius Platinum have The leading met representatives of platinum awepzim.org Twitter : @ as Nigeria is business area, of are trying to African of our operations in Zimbabwe. Sinosure, the women›s economic & Global Platinum Bandabut weZambia, Pan cooperate with the AWEP chapterin the country. the way in social reform.or We China Credit Exportopportunities, awepzim Resources is partAWEP Chairperson, is Ambassador Lin Lin the country’s Chamber aim to transform Zimbabwean and multilateral Zimbabwe partners,” expected to She visited The U.S. through the of Mines said in Insurance Corp., and Export Import Bank development by China’s Norinco International of owned attend conference in Harare Thursday. AWEP exchange in 2012. “The communities through said Deputyorganiza tions. Minister Cooperation Ltd. - Bloomberg News told a the launch ceremony which February that a refinery would need as much China, business Foreign Affairs will also be attended by senior main theme for the launch and the achievements.» The annual exchange program A Barclays launches Funeral Cash Plan T US backs Zim women entrepreneurs to boost trade B Platinum refinery: Zim looks to China C