Reports

  • RBZ issues administrative guidance for outstanding auction and retention balances

    RBZ issues administrative guidance for outstanding auction and retention balances

    HARARE, The Reserve Bank of Zimbabwe (RBZ) has issued through the Exchange Control department administrative guidance and compliance parameters to authorised dealers of foreign currency.

    Exchange Control acting director, Tafadzwa Muvevi through section 35 (1) of the exchange control regulations statutory instrument 109 of 1996 issued exchange control directive RZ56/2024 on the dealings of outstanding auction disbursements and foreign currency retentions.

    “All auction allotments arrears that accumulated from non-funding by the auction will be refunded to recipients at the current inter-bank exchange rate.

    “To allow the new structured currency system to start on a clean slate, the refund will entail conversion of all outstanding auction allotments into a 2-year ZiG denominated investment instrument at an interest rate of 7,5% per annum.”

    The bank clarified that for Exchange Control purposes, converting foreign exchange auction allotment arrears to ZiG-denominated investment instruments absolves the Reserve Bank of its foreign exchange obligation and liability.

    Likewise, this conversion grants the beneficiary the advantage of preserving the value while holding the investment instrument.

    In terms of outstanding payments on foreign currency surrender obligations the acting director said the bank will issue another instrument.

    “All outstanding payments for foreign exchange purchased by Treasury under the 25% surrender requirement will be converted, using the prevailing US$/ZiG exchange rate, into a ZiG-denominated investment instrument with a tenor of one year at an interest rate of 7,5% per annum.

    “The Reserve Bank Financial Markets Division will communicate with banks on the respective implementation framework,” Muvevi said.

    The central bank stated that authorised dealers must persist in submitting the Daily Exporters Retention Return by 1000hrs, explicitly indicating both the 25% surrender portion and the precise amount transferred to the Reserve Bank.

    “The afore-mentioned Exchange Control operational guide and compliance parameters shall be read with the Operational Guidelines for Structured Currency (ZiG) issued by the Reserve Bank’s Financial Markets Division to banks dated April 5, 2024.”

    Authorized Dealers and market participants were instructed to guarantee the full implementation of the compliance criteria outlined in this Exchange Control Directive.

    Exchange Control will conduct on-site, off-site, and focused ad-hoc inspections to oversee Authorized Dealers’ compliance with the measures outlined to facilitate the structured currency’s operationalisation.

    “Market players that shall be found to be in violation of Exchange Control rules and regulations, shall be penalised in terms of Section 5(1) of the Exchange Control Act [Chapter 22:05] and Section 37 (i), (ii), and (iii) of the Exchange Control Regulations, Statutory Instrument 109 of 1996.”

     

  • AFC Insurance affirms its role in driving agricultural solutions

    AFC Insurance affirms its role in driving agricultural solutions

    Staff Writer

    AFC Insurance Company, together with AfC Land and Development Bank and AFC Leasing Company, are expected to continue providing accessible solutions to the agricultural sector as part of AFC Holdings’ business continuity and growth plan.

    This comes as the group says it has continued to implement the plan, including adaptation of disaster recovery plans, with regulators having been updated.

    The AFC insurance company started operations in 2022 after being granted a licence by the Insurance and Pensions Commission.

    In a statement accompanying financial results for FY23, AFC Holdings said prospects for business were good notwithstanding the current volatile environment.

    “The group will sustain business growth initiatives for profitability. The AFC commercial BDMK will expand support to exporters across all sectors of the economy while targeting new SBD energy frontiers through digital platforms.

    “The AFC land and development company, the AFC leasing company, and the AFC insurance company will continue to provide accessible financial solutions to the agricultural sector, the group said.

    AFC Insurance endeavours to create tailor-made agricultural insurance solutions for emerging and established farmers in order to meet their needs.

    As part of its endeavours, it recently partnered with the Tobacco Industry and Marketing Board (TIMB) to expand the reach of insurance services to ensure the viability and sustainability of farming projects by providing farmers with improved access to insurance coverage.

    This saw 6,500 small-scale tobacco farmers take up insurance for the 2023–2024 season. The insurance facility covers field-to-floor risks, which include hail and wind damage.

    During FY23, AFC Insurance recorded an inflation-adjusted profit before tax of ZWL36,2 billion.
    The group said this was besides the fair valuation gains on investment property due to increased insurance business underwriting.

    “The company’s capital position is currently above the regulated position,” the group said.

    The company’s revenues surged to ZWL39.7 billion, compared to ZWL1.4 billion the previous year.

     

  • Breaking the glass ceiling:Chinyuku and Patsika Excell in Nairobi’s Angaza Awards

    Breaking the glass ceiling:Chinyuku and Patsika Excell in Nairobi’s Angaza Awards

    Staff writer

    EMERITUS Re, Head of Reassurance at Emeritus Reinsurance, Clementine Chinyuku, and Managing Director at Zibuko Capital, Nonceba Patsika, have been recognised by Nairobi’s Angaza Awards as women to watch in Africa’s financial services sector and will be celebrated at the Angaza forum slated for October this year in Kenya.

    The awards recognise the seamless efforts of women who are steering and shaping Africa’s financial services sector across Africa, and in excess of 30 women leaders from 16 countries have been honoured since the inception of the awards.

    In a statement, the awards conveners said Chinyuku was celebrated for significantly increasing the company’s gross written premiums, despite challenges posed by the coronavirus (COVID-19) pandemic as well as her contributions to building capacity within the insurance sector.

    Meanwhile, in the microfinance sector, Patsika showed visionary leadership during the pandemic when she led her institution in implementing innovative digital platforms to drive financial inclusion.

    Patsika is one of the youngest executives leading a financial institution in the country.

    “Among the Top 10 are Zimbabwe’s Clementine Chinyuku, Head of Reassurance at Emeritus Reinsurance, and Nonceba Patsika, Managing Director at Zibuko Capital Private Limited. Previous winners include Marjorie Mayida, Managing Director of Old Mutual Investment Group Zimbabwe, and Alice Shumba, Managing Director of FBC Insurance, who were recognized in 2022 and 2023, respectively. Chinyuku was celebrated for significantly increasing the company’s gross written premiums, despite challenges posed by the coronavirus (COVID-19) pandemic as well as her contributions to building capacity within the insurance sector, Angaza Forum said.

    Through the Angaza Forum chairperson Nuru Mugambi’s Angaza Awards, the forum uncovered the hidden gems of Africa’s financial landscape—wwomen whose impact transcends boardrooms and industries to create shared value.

    “Their stories inspire us, reminding us that financial inclusion and empowerment are not just sustainable finance goals but catalysts for transformative change. As we amplify their voices, we pave the way for a future where women rise to the C-suite and beyond by driving impactful initiatives that reshape the fabric of our economies,” she said.

    The Angaza Awards Judges Panel is constituted by Mutumboi Mundia, Chief Executive Officer of Prospero, an SME-focused impact investment organisation in Zambia; Catherine Musakali, CoFounder of Women on Boards Network Kenya; Hedwige Nuyens, Managing Director, International Banking Federation; Yawa Hansen-Quao, Founder, Leading Ladies’ Network (Ghana); Joanita Lunkuse-Jaggwe, a risk management specialist with UNDP; Luke Ombara, Director of Regulatory Affairs, Capital Markets Authority of Kenya; Esohe Denise Odaro, Head of ESG and Sustainability, PAI Partners (UK); Maxwell Pirikisi, Immediate Past President – South Africa-Nigeria Business Chamber (SA-NBC) and Director SA Chamber of Commerce and Industry (SACCI); and Jo-Ann Pöhl, Senior Advisor at Kearney (South Africa)

     

     

  • Risk mitigation a necessity for SMEs long-term success: Gvnmt

    Risk mitigation a necessity for SMEs long-term success: Gvnmt

    Staff Writer

    The government says there is a general lack of appreciation for risk mitigation and insurance among MSMEs as a tool to mitigate risk, putting the continuity of economic activities within the sector in doubt should mishaps occur.

    This was said by Dr Mavis Sibanda Permanent Secretary Ministry of Women Affairs, Community, Small and Medium Enterprises Development at a risk management and business insurance training in Harare.

    The inaugural Training of Trainers on Risk Management and Business Insurance for Business Development Officers in the Ministry was aimed at capacitating Ministry officials on risk mitigation and the use of insurance as a security tool for MSMES.

    “Risk management is not a luxury but a necessity for SMEs striving for long-term success. By adopting a proactive and comprehensive approach to risk management, SMEs can mitigate potential threats, seize opportunities, and enhance their resilience.

    “I therefore want to encourage the trainees to fully embrace the skills and knowledge that will be imparted to them today. I urge you to learn and have a deeper understanding of insurance and risk mitigation measures, which I positively believe will enable you to competently train SMEs when you go back to your stations,” she said.

    According to Dr Sibanda, the MSMEs sector remains a key component of Zimbabwe’s economy, which is estimated to constitute more than 60% of the economic activity in the country.

    MSMEs are found in almost all sectors of the economy, including manufacturing, retailing and transport, mining, energy, construction, and service sectors, among others.

    The National Development Strategy (NDS1) has recognised the emergence and unprecedented role played by the MSME sector in contributing not only to employment creation, with the 2021 MSME Survey indicating that the sector employed 4.8 million full-time employees, but also to the nation’s industrial development through the provision of key ancillary products and services to value chains in key economic sectors.

    “Although the sector is immensely contributing to the national economy, SMEs continue to face a number of challenges, which include a lack of business management skills, mentorship, coaching, markets, workspace businesses, and financial linkages,” said Dr Sibanda.

    The Insurance Council of Zimbabwe (ICZ), working together with the Insurance and Pensions Commission, partnered with the Ministry to offer training to Ministry officials who are involved in training MSMEs throughout the country.

    “The Ministry has over the years been providing training to MSMEs on other facets of business, excluding insurance,” she said.

    On average, about 35 000 MSMEs are trained on business management and other business-related issues annually, with 40 000 MSMEs having been trained in 2023.

    “The training being conducted today is going to empower you to also include insurance and risk management in our training programmes,” she added.

    ICZ visited Glenview Home Industry Complex on Tuesday in a fact-finding mission to see how they can work together to mitigate the risk of fires that have become a perennial incident at the complex.

     

     

     

  • ICZ considering working with the Glenview Home industry to mitigate perennial fires

    ICZ considering working with the Glenview Home industry to mitigate perennial fires

    Staff Writer

    The Insurance Council of Zimbabwe (ICZ) is considering working together with Glen View Home Industry Complex operators to come up with and implement risk mitigation solutions to prevent perennial fires, which have become the norm at the complex.

    ICZ today toured the complex to appreciate the operating environment and the challenges faced that result in frequent fire outbreaks.

    “Most people operating in the area have limited knowledge or awareness of risk identification and mitigation. This is also hindered by limited financial resources.

    “Implementation of tailor-made risk identification and mitigation initiatives with the input of the operators will be crucial as it will address their needs based on the nature of the business operations they run,” Ringisai Batiya, the ICZ Public Relations and Marketing Manager, told Insurance24.

    She said the presence of ICZ is not to promote insurance products but to work together with the operators on risk management.

    The complex houses over 500 informal economy enterprises that specialise in the production and sale of furniture.

    Management committee chair Tawanda Utete said the fires could be minimised by having proper structures.

    He said the National Social Security Authority (NSSA) could be assisting, but the informal nature of the setup made it difficult given the fact that they were not contributing anything.

    He noted that the real causes of fire remained largely unknown, ranging from cigar disposal to accidental fires.

    “NSSA should be funding us, but we don’t contribute anything. We use highly flammable things, so there is a is a need for proper mechanisms to minimise fires.

    “The biggest challenge is that we don’t have proper structures that stop the fire from spreading. We need proper structures and proper waste disposal mechanisms,” he said.

    ICZ is an association of short-term insurers and reinsurers in Zimbabwe who are registered and duly licenced by the Insurance and Pensions Commission.