Zimbabwe Economic News: Life Assurance Sector, Electricity Generation, New Investment at Turnall, Rail Transport
Life Assurance Sector Surges
We commence by looking at the positive developments as the life assurance continues to rebound:
Business worth $145 mln was written by the country’s life assurance industry during the third quarter ending September 30 2012, reflecting a 171% growth rate from the figures reported in the previous quarter. Total costs grew by 194% to close the third quarter at $96 mln buttressing the imminent need to spread risks through re-insurance and affecting cost-cutting measures. The industry realised $46 mln as technical profit. Expense and combined ratios were 23% and 68% respectively compared with the previous quota ratios of 36% and 63% – NewsDay, Monday January 21.
Energy Company to Construct Coal Power Station
Moreover, energy company Hytoric to build coal power station: Little known energy company Hytoric Enterprises seeks the Zimbabwe Energy Regulatory Authority’s approval to build a 600 megawatt thermal power station in Hwange. Hytoric plans to build, own, operate and maintain the coal-fired power generating station at the Entuba Coalfields – Daily News, Monday January 21.
Turnall invests $2.5 mln in new tile plant
Furthermore, Turnall invests $2.5 mln in new tile plant: Turnall has acquired a $2.5 mln tile-making plant as it angles to ramp up production and increase its market share. The state-of-the-art machinery will ably improve production capacity. The new plant – part of which is already in the country and the other expected by mid-February – is part of the company’s strategy to improve profitability, which has largely been dented by costs associated with the importation of chrysotile fibre, the main ingredient in the manufacture of asbestos, from Brazil and Russia following the closure of Shabanie-Mashava Mines.
The machine, which was acquired from Vortex Hydra in Italy, has the capacity to produce between 45 000 and 50 000 tiles per day and is set to be commissioned in May this year – Sunday Mail, January 20.
KFC eyes return to Zim
Restaurants International continues to expand the footprint of its KFC brand on the African continent, with plans to add stores in Tanzania, Uganda and Zimbabwe this year.
KFC general manager of new African markets Bruce Layzell said Africa is undoubtedly one of the fastest-growing regions globally and KFC is fully committed to harnessing this opportunity and building a sustainable business model on the continent – NewsDay, Thursday January 17.
Zim to benefit from regional railway deal
Zimbabwe is expected to benefit from a deal to construct a railway line passing through the country from Durban, South Africa to the DRC. The railway line also to go through Zambia will allow southern African countries to increase exports through Durban – Daily News, Thursday January 17.