via Zimbabwe Stocks Slide to 15-Month Low on Consumer Spending Slump – Businessweek By Brian Latham April 16, 2014
Zimbabwe stocks, Africa’s worst performers in 2014, fell for a sixth day to the lowest since January 2013 as a slump in consumer spending cut company profits and uncertainty over government policy lingered.
The Zimbabwe Industrial Index declined 1.5 percent by the close today in the capital, Harare today. That extended losses this year to 18 percent, the most among 13 sub-Saharan African bourses, according to data compiled by Bloomberg.
The government of President Robert Mugabe, in power for the past 34 years after winning elections last July, is battling a liquidity crunch because of a foreign-exchange shortage and the threat of deflation, according to the Finance Ministry. Mugabe’s administration is trying to revive an economy 49 percent smaller last year than in 2000, according to ZimTrade, a government agency that promotes trade and investment.
“There’s the obvious liquidity crunch that we have seen demonstrated in poor company results,” Lloyd Mlotshwa, head of sales at IH Securities in Harare, said by phone. “Then we have the fact that foreign investors haven’t seen any policy change since the elections.”
Delta Corp., the country’s biggest brewer, said on April 10 that lager sales fell 26 percent in the first quarter of the year, while Pioneer Corp., a transportation and industrial company, said April 1 its full-year loss widened as sales fell. Consumer spending declined about 30 percent in February, the Finance Ministry said April 7.
Concerns over Zimbabwe’s indigenization policy, which compels foreign-owned companies to sell or cede 51 percent of their shares to black citizens, continue to hamper investment, Mlotshwa said.
“We’ve been saying to government that foreign investors want a clear-cut policy that applies across the board, that they don’t like these one-on-one deals,” he said.
Foreign investors make up about 60 percent of the trade on the Harare-based bourse, according to its website. Zimbabwe has the world’s second-biggest platinum and chrome reserves after South Africa. It also has deposits of gold, coal and iron ore.
COMMENTS
One on One deals, the country is being run like a spaza shop. This country will do better without a cabinet and Mugabe, I can tell you. These chaps are behaving like kids in the playground. Boozer weekend footy is better organized.
Trash.
Useless.
Reverse the land grab; repeal indigenisation; repeal exchange control; guarantee returns in forex; guarantee security of freehold title and private property; make labour laws employer friendly; reduce company, personal
and VA tax and duty and simplify collection; widen tax net by indirect tax that captures the informal sector
PICK UP THE SA CONSTITUTION. – RESTORE THE RULE OF LAW- ATTRACT SMART INVESTMENT-CREATE EMPLOYMENT -WORK WITH THE COLONIAL POWER TO REBUILD INSTITUTIONS-EMPOWER THE PEOPLE THROUGH THE DIGNITY OF HONEST LABOUR
Just bring back the white Rhodesians in short they will fix the country without the discrimination and corruption and everyone can all live in prosperity. Not hard. The bad news for Zimbabwe is that the worlds economy is flat lining and will do so for the next year or so at least so don’t expect ANY investment. It’s not going to happen. Zanupf and Mugabe are so far out of touch on world economics its not funny. And the idiot Mugabe is supposed to have an economics degree? Just shows you. We will no doubt hear this weekend how Zimbabwe has been ruined by the west, the whites, sanctions on Mugabe, and everything other than the fact that ex terrorists can’t manage a country. Time to face the fact zimbos it’s only going to get worse for you and future generations. But hey be my guest and vote zanupf next election that way we can go into the record books as being the most stupidest nation ever.