Commercial Law Court on the Cards « Zim2daycom’s Weblog

Commercial Law Court on the Cards « Zim2daycom’s Weblog

WWW.ZIM2DAY.COM – Zimbabwe Inflation running Wild

AN aggressive branch opening strategy, which saw retail customers rising by 54 percent led Barclays to a 34 606 percent growth in the bottomline in the year to December.The group branches rose to 38 after opening 11 branches last year, including three service centres.

Managing director Mr George Guvamatanga said as a result the number of retail customers had grown to 183 000 from 119 000. On the whole Barclays had 114 000 retail, corporate and SME customers.

The bank now has the highest number of ATMs at 71 compared with 10 in 2006 and its share of the deposit market rose to 20 percent from 17 percent.

Net interest income rose 40 987 percent to $15,57 trillion (2006: $38 billion), while non-interest income increased 22 580 percent to $1,134 trillion (2006: $5 billion). The interest margin rose to 220 percent from 101 percent.

Mr Guvamatanga said the 44 407 percent increase in operating expenses reflected the “growth strategy of increasing the branch network”. The key cost to income ratio rose to 40 percent from 36 percent.

Bad debts of $458 billion eased to two percent of the book from three percent ($1 billion) in the comparable period in 2006.

Pretax profit stood at $9,59 trillion from $27 billion. Of that figure, finance director Mr Witness Muchingami said, 81 percent was from wholesale banking while retail banking brought in 19 percent.

Earnings per share were $2 821,19 against $8,49 in 2006 and the group passed on the dividend “as a way of preserving capital”

Sovereign assets market share was down to 16 percent from 22 as a result of the negative yields on the bond market.

The liquidity ratio fell to 27 percent from 85 percent, while capital adequacy stood at 15 percent compared with 33 percent in 2006. Assets on the balance sheet grew 79 794 percent.

The group’s share of the advances market has also improved to 12 percent from 9 percent. Agriculture now accounted for 34 percent of the loan book compared with 14 percent in 2006.

Looking ahead, Mr Guvamatanga said the group would concentrate on “value preservation” in the core banking business and would continue to open more branches. Two had been opened since the beginning of the year.

“We will only be buying properties in line with retail banking expansion. We will not be purchasing properties to hold. We won’t be engaging on other investments and will focus on our core banking business,” he said

On current trading Mr Muchingami said that earnings were strong and ahead of budget.

Commercial Law Court on the Cards

THE High Court Judge president Justice Rita Makarau has proposed the establishment of a Commercial Law Court (CLC) that will deal exclusively with cases arising from trade and commerce.

The motion for this development fell on ready ears of stakeholders who converged in Harare yesterday.

When established, the court will deal with matters such as those arising from contractual relationships, land acquisition and title to agriculture land, among other related issues.

Speaking at a stakeholders breakfast meeting yesterday, Justice Makarau said the primary objective would be to, “deal with commercial actions in a simplified and expeditious manner to achieve speedy resolution of disputes of a commercial character by a specialised court”.

The thrust of this development would be to ensure depth, quality judgments and certainty that will in turn boost investor confidence on the legal machinery.

This also means that the move will help in containing the effects of inflation as firms who incur monetary related losses such as fraud would realise the real value of their dues through speedy resolution of cases.

“In current hyperinflationary environment, most bad debtors find profit in delaying payment until compelled by court order, the longer it takes the better for them,” she said.

Confederation of Zimbabwe Industries president Mr Calisto Jokonya compelled by the initiative, had this to say: “We are in full support of the initiative and appreciate of it as we are the victims under the circumstance”.

Mrs Mara Hativagone, president of Zimbabwe National Chamber of Commerce also expressed the same view adding that she only hoped the project would become a reality soon.

Stakeholders thus have pledged assistance to ensure the vision comes to fruition.

Their commitment was witnessed by the selection of a committee that will be working closely with the Ministry of Justice and Legal Affairs.

Zimbabwe High Court has since 2006 established specialised courts, labour and family law divisions, which contributed immensely in solving backlog challenges.

Makoni needs more defections

Cris Chinaka

Only if other high-profile members of Zimbabwe’s ruling party desert President Robert Mugabe might the scales tip against the veteran leader at this month’s election. The defection of politburo member Dumiso Dabengwa at the weekend to join the presidential campaign of ex-finance minister Simba Makoni has certainly rocked Zanu PF. But political analysts believe Mugabe (84) can still beat a divided opposition despite economic turmoil that has left Zimbabweans struggling with shortages of food, fuel, water and power, as well as the world’s highest inflation. “The fight is still going on, it’s getting exciting but I think it would be foolish and very premature for anyone to write off Mugabe yet,” said John Makumbe, a political commentator and fierce Mugabe critic. Mugabe, who has ruled since independence from Britain in 1980, faces his biggest challenge to power from Makoni, now expelled from Zanu PF and longtime opponent Morgan Tsvangirai.
Dabengwa called Makoni’s bid for the March 29 election a rescue operation for the country, where many blame government policies for the economic disaster. Political analysts said that although Dabengwa could mobilise some support for Makoni in the restless Matabeleland province, the former guerrilla commander’s political clout was already in question there after losing parliamentary elections twice in the past eight years.

 Matabeleland has long been a stronghold of the opposition, mainly over simmering anger stemming from a government crackdown against an insurgency in the 1980s, which human rights groups say killed thousands of people. Dabengwa, a former intelligence chief in Joshua Nkomo’s Zimbabwe People’s Revolutionary Army (Zipra) during the 1970s independence struggle, has also been involved in a turf war with veterans backing Mugabe’s bid for re-election. Affectionately known by his guerrilla name “Black Russian” under his comrades, Dabengwa on Saturday lined up with a number of former senior Zipra fighters to publicly back Makoni.

“There is no doubt this is a big blow against Mugabe, but on its own, and measured against the hesitancy we are seeing in other officials in Zanu PF, and measured against other senior officials coming out in support of Mugabe, it’s not a knockout blow,” said Eldred Masunungure, a political science professor at the University of Zimbabwe. “I think a really devastating blow would be the defection of several top officials, including those generals the (local) media have linked to Makoni,” he said. Makoni has long said his campaign had the support of several senior Zanu PF officials, but they have not come out openly. In fact, many top officials have been at pains to make public their support for Mugabe. Mugabe, who has branded Makoni a political prostitute, has not yet publicly commented on Dabengwa’s defection, but his spokesperson, George Charamba, dismissed it as insignificant. “What is Dabengwa worth by way of supporters? He brought none to Zanu PF and he takes none to the independent (Makoni).”

Zimbabwe inflation out of control

Zimbabwe’s currency has tumbled to a record low of 25 million Zimbabwe dollars to one single US dollar, while Robert Mugabe, Zimbabwe’s president, continues his campaign for re-election. One hundred dollars bought nearly 20kg of local currency on Wednesday as Zimbabwe wrestled with the world’s highest inflation rate at over 100,000 per cent. bodyVariable350=”Htmlphcontrol1_lblError”; Analysts say that inflation is likely to get worse as Zimbabwe’s central bank pumps cash into the economy to fund upcoming elections. There have been reports that the central bank is buying US dollars on the unofficial market to pay for power, petrol and vehicle imports ahead of the election. bodyVariable300=”Htmlphcontrol2_lblError”; Zimbabwe’s black market exchange rate for the US dollar broke the one million Zimbabwe dollar mark for the first time in late October. Black market “There may be a severe shortage of foreign currency to drive the Zimbabwe economy, but that’s not necessarily true of the informal markets,” Al Jazeera’s Supa Mandiwanzira reported from Harare. “Many Zimbabweans receive US dollars from friends and relatives who are working abroad … they actually get it in US dollars cash.” But he said that money fails to make it into Zimbabwe’s banks because the official exchange rate is removed from the actual exchange rate. Instead they change it on the black market. “The [black market] rate is far better than you get in the bank,” he said. The value of the Zimbabwe dollar weakened steadily against hard currencies throughout last year but its fall has quickened dramatically in recent weeks. Food shortages On Wednesday, Mugabe told an election rally that he would tackle hyper-inflation and review the salaries of teachers who frequently strike over low pay. He also said the government was trying to rush in maize imports from southern African states after a government report revealed Zimbabwe would fail to meet its targeted harvest this year. “Maize is [in Zambia] … but we are having problems moving it,” Mugabe told about 8,000 party supporters during a campaign rally in Mahusekwa, a rural settlement 70km south of the capital Harare. With industry and production collapsing, Zimbabweans have become heavily dependent on imports of the corn meal staple and basic goods. Zimbabwe, until last year self-sufficient in canned and processed food, is now facing food shortages.

Hello world!

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!