Zimbabwe | ZSE

The operating environment remained challenging for the group, magnified by the resurgence of the COVID-19 pandemic. Successive episodes of lockdown measures coupled with reduced trading hours crippled the Group’s capacity to aggressively grow revenue lines across business segments. Nevertheless, the Dutch foreign currency auction system which was introduced by the government ameliorated the trading environment as this resulted in relative price and exchange rate stability. In historical terms, net interest income for the Group registered an uptick of 316.16% y/y from ZWL$301.07mn in 1H20 to ZWL$1.25bn in the period under review buoyed by a 12% growth in loans and advances. The Group reduced its minimum lending rate during the period under review to assist customers cope with the Covid-19 induced...

ZSE | IH Securities Monthly Snapshot Report - August 2021

We remain skewed towards consumer names – we note that these businesses are now experiencing actual volumes growth. This is a departure from 2019 revenues which were driven by hyper-inflation pricing amidst falling volumes.

The Group registered strong revenue growth supported by a surge in sales volumes coupled with price adjustments and a decline in monetary loss. The abundant rains received during the main farming season were a big boost for seed demand. Maize remained the flagship seed crop for the Group contributing 55% of the volume and growing by 61% due to strong government and open market demand, and 3,600mt exports to Malawi, Tanzania and Mozambique. Wheat sales increased by 66% buoyed by a once-off 2000mt export order to Nigeria while Soybeans volume went up 17% driven by strong oilseed local demand. The introduction of the Foreign Currency Auction System by the Reserve Bank of Zimbabwe and the accompanying tight monetary policy stance contributed to exchange rate stability and inflation deceleration which allowed the Company to maintain its selling prices throughout the summer planting season. Resultantly, in historical terms, FY21 revenue ...

ZSE | IH Securities Monthly Snapshot Report - July 2021

The Central Bank continues to maintain a hawkish approach towards money supply as evidenced by the introduction of Zero Percent Non-Negotiable Certificates of Deposit (CDs) in a bid to wipe out excess liquidity in the economy. This comes after month-on-month inflation inched up 0.9% from 1.6% in April to 2.5% in May, followed by another uptick to 3.9% in June. In pursuit of the same goal of reducing money supply, the Monetary Policy Committee reviewed reserve money growth target from 22.5% per quarter to 20% per quarter. The Reserve Bank of Zimbabwe also introduced new ZWL$50 notes to help easy trade among consumers and businesses. This was however viewed as self-contradicting by the general public although the Central Bank emphasizes broad money supply multiplier effect is insignificant.