Zimbabwe Economic News: Inflation, Zim-India investment Conference, Batoka hydropower project, Green Fuels, African Development Corporation, Telecel Zimbabwe
The Zimbabwe-India Investment Conference opens in Harare this morning with the visiting Indian delegation seeking to explore investment opportunities. Secretary for Economic Planning and Investment Promotion Desire Sibanda said the delegation arrived on Sunday and held meetings with various government ministries yesterday, ahead of the conference at the Meikles Hotel – Herald, Tuesday January 10.
India has pledged to transform and grow Zimbabwe's economy after a decade of recession, provided the country guarantees a conducive business environment. First secretary at the Indian Embassy in Harare Mukesh Kumar said India was prepared to share experience and technology that has transformed the Asian country. Kumar pledged Indian companies would transform and set the local economy on a growth trajectory within five years - if the right conditions were put in place. He was speaking at the Zimbabwe-India investment conference in Harare yesterday after the visit by an Indian business delegation to Zimbabwe – Herald, Wednesday January 11.
The Consumer Council of Zimbabwe's low-income urban earner basket for a family of 6 has reflected an increase of $36 between January and December last year. The CCZ said the increase is unjustifiable because inflation has been stable throughout the year and calls for a price freeze.
Meanwhile, the basket for December has shown a marginal decrease from $546, 34 in November 2011 to $545, 35. The food and detergents basket decreased from $177, 34 to $176, 35 in the same period reflecting a 0.01% decrease. CCZ noted that in December 2011 certain products in the food basket have increased from the previous month, while others have maintained or slightly reduced their prices. The following items have increased in prices: cooking oil (15c), tomatoes (10c) and bathing soap (9c) – Herald, Tuesday January 10, NewsDay.
The Batoka hydropower project could soon become a reality as Zimbabwean and Zambian energy ministers are due to meet later this month to formalise the start of the project. According to reports in the Zambian media, the 2 countries' energy ministers are scheduled to meet in Siavonga, Zambia, for a second round of talks on January 22-23 – Herald, Wednesday January 11.
Green Fules’s ethanol blended petrol, E10, has received a huge uptake on the Zimbabwean market with motorists queuing for the product at approved outlets – Daily News, Wednesday January 11.
Essar Africa Middle East and African operations director Firdhose Coovadia says international investors are faced with a challenge of securing funding to set up and sustain operations in Zimbabwe. He told the India-Zimbabwe partnership for growth closing session in Harare yesterday that his biggest disappointment in concluding a steel mining and production partnership with the Zimbabwean government has been the funding glitch – Daily News, Wednesday January 11.
African Development Corporation has successfully negotiated an exit for its 11.5% shareholding in Ecobank Zimbabwe for $5.2 mln. The deal will be executed via a share swop. ADC swaps its shares in Ecobank for a 28% shareholding in Brainworks Capital Management, a local holding focusing on banking, insurance and the mining and fuel sectors. Brainworks, which already has shares in Ecobank will increase its total shareholding to 36% – NewsDay, Wednesday January 11.
Telecel Zimbabwe plans to invest $70 mln this year to expand and upgrade its networks – NewsDay, Thursday January 12.
Logistical challenges have held back work on the fibre optic cable linking Harare and Beitbridge through Bulawayo to the undersea cable in South Africa which was supposed to be completed in December last year, Information Communication Technology Minister Nelson Chamisa has said. When complete, the fibre optic cable, whose installation commenced in May last year, is expected to bolster service provision by state-owned telecommunications companies NetOne and TelOne – Herald, Thursday January 12.