Sunday 16 February 2025 *AFTERNOON NEWS UPDATES* _• USD: ZiG Official Exchange – Z$25.69_ • _Black Market Rate - Zig 30:USD1_ • _Innscor in-store – Z$35_ • _KFC, Slice, Eat'n'Lick – Z$35_ https://whatsapp.com/channel/0029VaDbHKp3GJOtlMM4PA39 https://wa.me/263718497005?text=advert____________ *THE HEADLINES* *Mnangagwa On Tight Rope* *Masvingo War Veterans “Humiliate” Mnangagwa…outrightly reject ED’s borehole and solar project, calling it a late and insincere gesture* *Strive Masiyiwa Fires 8 EcoCash Bosses Amid Growing Customer Frustration* *RBZ interventions strengthen ZiG* *Govt’s pension scheme outdated: Mudenda* *Team of technocrats to address funding gaps in critical health programmes* *Scrap metal firm in ZETDC theft storm… Caught with ZETDC-branded angle iron bars* *AU Assembly demands reparations, opens path to action: African leaders unite in demanding reparations* *10 000 new firms register with NSSA* *Nampak records 56% profit drop as revenues shrink* *Critique of Zim’s policy on mandatory electronic payments* *South African landlords demand sex from university students: I had no choice but to accept the landlord’s demands* *“But they have the land”: South Africa Mocks Zimbabwe Over Japan’s US$2.8 Million Food Aid Donation* *THE DETAILS WITH IGNITE MEDIA ZIMBABWE* _*Mnangagwa On Tight Rope*_ Zanu PF Central Committee member, and out-spoken war veteran Blessed Geza said he would soon be announcing the next action ‘we’ are taking against President Emmerson Mnangagwa. Geza, who has emerged as one of the ruling party’s most vocal internal critics, has become a thorn in Mnangagwa’s side, openly challenging his leadership and questioning his grip on power. This is an Ignite Media Zimbabwe news production. He has already publicly demanded that Mnangagwa should resign. Operating under the banner of the Zimbabwe Liberators’ Platform, Geza has consistently accused Mnangagwa of betraying the liberation struggle, mismanaging the country, and using the state apparatus to suppress dissent within the party. His latest remarks come amid deepening factionalism in Zanu PF, with growing tensions between Mnangagwa’s loyalists and those sympathetic to his deputy, Vice President Constantino Chiwenga. Geza and his youthful ally, Cde Nyokayemabhunu, have positioned themselves as voices of discontent, rallying war veterans and disillusioned party members against what they describe as a corrupt and self-serving leadership. Speaking exclusively to ZimEye on Saturday, Geza laughed off claims that he was on the run from Mnangagwa’s security forces. During a seven-minute conversation with journalist Simba Chikanza, he appeared unfazed by the speculation surrounding his safety. “Is this how a person who is on the run appears?” he quipped, dismissing reports that he had gone into hiding. Instead, he suggested that Mnangagwa’s camp was feeling the heat, stating ominously: “They are the ones preparing to set off.” When pressed about his next move, Geza made it clear that action was imminent. “Any time from now, I think in the next two days… do not be alarmed at all, we are on top of the situation, 100 percent,”hedeclared, hinting at a major development in his movement’s operations. Geza has made headlines over the past year with his increasingly bold pronouncements, accusing Mnangagwa of rigging internal party processes, sidelining war veterans, and presiding over a failed state. His defiance has put him in direct confrontation with Zanu PF’s security structures, which have long been used to silence dissenting voices within the party. His latest outburst is expected to further inflame tensions within Zanu PF, where factional battles continue to intensify ahead of a potential leadership transition. While Mnangagwa has sought to consolidate power, figures like Geza represent a growing resistance within the party, emboldened by widespread economic hardship and declining public confidence in the regime. With Geza signalling imminent action, political observers will be watching closely to see what unfolds in the coming days. His defiance adds to the mounting pressure on Mnangagwa, whose hold on power is increasingly being questioned both within and outside Zanu PF. Whether Geza’s movement can translate rhetoric into meaningful political change remains to be seen, but one thing is certain—his bombshell statements are shaking the foundations of an already unstable ruling party. _*Masvingo War Veterans “Humiliate” Mnangagwa…outrightly reject ED’s borehole and solar project, calling it a late and insincere gesture*_ War veterans in Masvingo have outrightly rejected President Emmerson Mnangagwa’s borehole and solar project, calling it a late and insincere gesture. Speaking in Masvingo on Thursday after attending Mrs Auxillia Mnangagwa’s rally, one former freedom fighter expressed frustration: “This project is only meant to hoodwink us. Why did it take so long to implement? They are doing this because war veterans are saying enough is enough.” Another veteran, Cde Hokoyo Puruvheya, added, “Personally, I will not accept the offer because it is insincere.” Cde Sub Mudondo also criticized the initiative, stating, “Mnangagwa is taking us for granted. We don’t want boreholes; we want the country to move forward.” This is an Ignite Media Zimbabwe news production. However, Paul Tungwarara, who is leading the programme, defended the project, stating: “The Presidential War Veterans Fund has been expanded, with the solar and borehole program now extended to all war veterans across the ten provinces.” _*Strive Masiyiwa Fires 8 EcoCash Bosses Amid Growing Customer Frustration*_ EcoCash Holdings Zimbabwe Limited (EHZL) has undergone a major leadership shakeup, with Chief Executive Officer Eddie Chibi and seven top executives resigning amid mounting dissatisfaction over the company’s declining service quality. Chibi, who had served as CEO since 2018, has been replaced by seasoned businessman and longtime Strive Masiyiwa associate, Tawanda Nyambirai. Nyambirai, who played a crucial role in the early days of Econet in the 1990s as a legal advisor and entrepreneur, has also been involved with Steward Bank, a subsidiary of EcoCash, since acquiring it in 2013. Another high-profile departure is Darlington Mandivenga, a key figure in the rapid growth of EcoCash, who also stepped down. Mandivenga was instrumental in establishing EcoCash as Zimbabwe’s leading mobile money service. Eight directors have resigned, including Board Chairperson Sherree Gladys Shereni, while ten new directors have been appointed in a sweeping restructuring of EHZL’s leadership. In a notice to shareholders dated 14 February 2025 and signed by Group Company Secretary C.R. Daniels, EcoCash Holdings announced that Shereni had stepped down. Other directors who have resigned include: The leadership overhaul comes at a time when Econet Wireless, Zimbabwe’s largest telecommunications provider, faces intense scrutiny over declining service quality, exorbitant costs, and frequent system failures—particularly with EcoCash, the country’s most widely used mobile money platform. On February 5, 2025, thousands of Econet subscribers were left stranded after EcoCash crashed, disrupting financial transactions for individuals and businesses. The outage, lasting from 2:00 PM to 3:30 PM, was the latest in a series of system failures that have frustrated customers. Econet acknowledged the failure in a statement but insisted the issue had been resolved: “We experienced some issues on the platforms that enable our subscribers to make calls, use data, or carry out EcoCash transactions, resulting in some of our customers being unable to use the services for about an hour and a half. We sincerely apologise for the inconvenience.” However, many Zimbabweans remain unconvinced, as EcoCash has long been plagued by persistent downtime, failed transactions, and delays in processing payments. The service’s unreliability is especially concerning given that mobile money plays a crucial role in Zimbabwe’s cash-strapped economy. This is an Ignite Media Zimbabwe news production. Beyond EcoCash’s operational failures, Econet’s mobile network has also been criticised for slow internet speeds, dropped calls, and high tariffs. Zimbabweans pay some of the highest mobile data and voice call rates in the region, yet they continue to endure subpar service. Frequent power cuts and inadequate investment in infrastructure have exacerbated the problem, while the company continues to hike prices under the guise of inflationary adjustments. The timing of these service failures is particularly damaging for Econet, as competition in Zimbabwe’s telecom sector is heating up with the anticipated arrival of Starlink, Elon Musk’s satellite internet provider. Starlink is expected to revolutionise Zimbabwe’s digital landscape by offering high-speed, reliable internet access, especially in remote areas where traditional network providers struggle. Unlike Econet’s reliance on terrestrial towers, Starlink’s satellite-based service provides a more stable connection and could offer an affordable alternative to Econet’s expensive and unreliable internet services. The growing frustration with Econet has fueled anticipation for Starlink’s launch, with many consumers eager for an alternative to Zimbabwe’s telecom monopoly. The pressure is now on Econet to improve its services, lower costs, and enhance reliability—or risk losing customers to a new, more efficient competitor. _*Team of technocrats to address funding gaps in critical health programmes*_ THE Government has announced the establishment of a team of technocrats tasked with devising sustainable solutions to address gaps left by the withdrawal of funds in critical health programmes by some of its partners. The development is part of efforts to minimise disruptions to beneficiaries and comes as the nation grapples with the impact of reduced external funding for initiatives targeting HIV and Aids, malaria, tuberculosis and other public health challenges. The funding gap follows an executive order signed by US President Donald Trump, which saw Washington withdraw from the World Health Organisation (WHO) and halt foreign assistance for 90 days as part of a realignment of that country’s foreign aid policy. More than 20 million people globally, accounting for two-thirds of all people living with HIV accessing treatment, are directly supported under Pepfar. In Zimbabwe, Pepfar is the leading funder of HIV programming and the organisation had committed US$210 million to Zimbabwe in 2024 and US$200 million from October 2024 to September 2025. This is an Ignite Media Zimbabwe news production. Responding to questions on Wednesday, the Deputy Minister of Health and Child Care, Sleiman Kwidini emphasised the Government’s commitment to ensuring the continuity of these programmes despite the withdrawal of support from international partners. Deputy Minister Kwidini acknowledged the challenges posed by the funding shortfall but assured citizens that the ministry is working diligently to mitigate the impact. “There might indeed be an impact on the withdrawal of USAid and other stakeholders from supporting the World Health Organisation (WHO) and our national programmes but what I want the nation to be aware of is the policy,” he said. “When the policy is formulated, it is not wholly dependent on other stakeholders. We collaborate with them to improve the lives of our people, but the responsibility ultimately lies with the Government.” Deputy Minister Kwidini explained that the Government had long-standing agreements and collaborations with various stakeholders some of whom have now withdrawn their support. This has left a significant gap in funding for programmes that were previously bolstered by external contributions. However, he stressed that the core policies and frameworks for these programmes remain intact, and the Government is now focused on ensuring their full ownership and implementation. “In terms of issues of HIV and Aids, malaria and tuberculosis, these were wholly Government programmes. We then had stakeholders who came in to fund those programmes. “As we speak right now, our technocrats are making sure that we cover the gap left by these programme implementers. These programmes were designed to feed into our national policies, and we are committed to sustaining them,” he said. He revealed that the team of technocrats is currently exploring innovative solutions, particularly in the areas of budgeting and human capital, which have been significantly affected by the withdrawal of funds. This is an Ignite Media Zimbabwe news production. The goal is to develop a robust plan that ensures the continuity of essential health services while minimising disruption to beneficiaries. “Basically, the policy is already there and was existing, but what has been withdrawn is the support we were receiving from the funders. As policymakers, we are now focused on finding the best possible solutions to address these challenges. Our technocrats are working tirelessly to ensure that we can cover the gap and continue to deliver on our mandate,” he said. As the nation awaits further updates on the technocrats’ recommendations, Deputy Minister Kwidini urged citizens to remain calm and assured them that the Government is fully committed to protecting their health and well-being. He said the Government will be shedding more light on the specific strategies and measures that will be implemented to address the funding gaps and secure the future of its health programmes. The Government’s proactive approach has been welcomed by public health experts, who have long advocated for greater self-reliance in funding and implementing critical health programmes. They believed while the road ahead may be challenging, the mobilisation of technocrats signals a strong commitment to safeguarding the nation’s health and ensuring that no citizen is left behind. The Government has also announced that the country is turning to locally generated revenue to sustain the health sector with Finance and Economic Development Minister Professor Mthuli Ncube recently saying the Government is intensifying the use of levies on alcohol, cigarettes, fast food and sugary beverages, commonly known as sin taxes to bolster health sector funding. _*RBZ interventions strengthen ZiG*_ THE Zimbabwe Gold (ZiG) currency has strengthened on the parallel market, moving from US$1:ZiG40 to US$1:ZiG35, as interventions by the Reserve Bank of Zimbabwe (RBZ) have tightened liquidity in the market and curbed speculation. The central bank’s strict monetary policies and adjustments to the willing-buyer, willing-seller (WBWS) interbank market have reduced demand for foreign currency on the black market, with businesses now accessing the bulk of their forex needs through formal channels, lowering reliance on illicit trade. According to RBZ Governor Dr John Mushayavanhu, monetary authorities have ensured a steady supply of forex on the market, with 60 percent of the funds offered on the WBWS market remaining untapped, proving that official channels can meet market demand. This is an Ignite Media Zimbabwe news production. The apex bank has also restricted money supply growth, a development that has helped stabilise inflation and strengthen the local currency. Responding to questions from The Sunday Mail, Dr Mushayavanhu said a US$500 million current account surplus recorded in 2024 has further reinforced market confidence. “Indeed, the exchange rate has been strengthening on the foreign exchange parallel market, reflecting the effectiveness of the tight monetary policy stance being pursued by the Reserve Bank to consolidate the ongoing price and currency stability,” he said. “The current monetary and financial conditions have, thus, managed to significantly curtail speculative activities in the foreign exchange market. “The drop in the parallel market exchange rate also reflects the effectiveness of the willing-buyer, willing-seller interbank foreign exchange market and the adequacy of foreign exchange due to regular interventions by the Reserve Bank.” Businesses, he said, have been accessing their full foreign currency requirements from the formal WBWS market to meet all bona fide and legitimate forex requirements. “This development reduced demand and activity on the parallel market,” he added. “Reflecting the adequacy of foreign exchange on the WBWS market, the interventions by the Reserve Bank have seen reduced take-up of forex offered at approximately 60 percent, indicating that formal market forex demand is being met in full.” With the 2025 Monetary Policy Statement refining the WBWS market, he said, the RBZ expects continued exchange rate stability and a further decline in parallel market activity. “The current disparity between the official and parallel exchange rates, therefore, reflects extra premiums relating to searching costs and illegality premiums associated with transacting in the parallel market instead of market fundamentals, which are currently favourable. _*Govt’s pension scheme outdated: Mudenda*_ Speaker of Parliament Jacob Mudenda has criticised the government pension scheme as outdated and to blame for the suffering of the country’s pensioners. Zimbabwe’s never ending economic crisis has resulted in the deterioration in the quality of life for pensioners, eroding their monthly pay-outs despite years of service and contribution. The switch to the greenback in 2009 immediately wiped out the value of Zimbabwe dollar-denominated investments, leaving thousands of pensioners destitute. This is an Ignite Media Zimbabwe news production. Since then, senior citizens and pensioners have been victims of the country’s economic decay. Mudenda urged Parliamentarians to speed up the State Services Pensions Bill to ensure the welfare of pensioners is catered for. “I am convinced that the current government pension scheme has served its purpose over the years, but the evolving socio-economic landscape demands its continuous refinement,” Mudenda said during a sensitisation workshop for Parliamentarians centred on the Bill. “It is my considered view that the creation of a State Service Pension Fund, as envisioned in this Bill, is a critical step towards strengthening the financial security of our civil servants and ensuring the sustainability of pension benefits. “Pensioners are a crucial segment of our society, and we must ensure that they are not left behind as we work towards economic transformation.” Mudenda said it was disheartening that pensioners were living miserable lives despite years of contribution to pension schemes. “We have witnessed far too many instances where former civil servants find themselves struggling to maintain even basic dignity in their retirement years which is unfit to their human dignity,” he said. “This Bill demonstrates a clear recognition of the need to overhaul the current pension system and establish a system that truly honours the service and sacrifice of our public servants who give the prime of their lives towards actualising the national development interest.” With Zimbabwe’s food basket ever increasing, pensioners and their dependents are some of the country’s poorest. An unpredictable economic climate, rampant inflation including for goods priced in American dollars and general profiteering have all contributed to making survival hard for pensioners in Zimbabwe. The purpose of the Bill is to establish a State Service Pension Fund to ensure that members enjoy a decent standard of living in their retirement. The Fund will provide for payments of pensions, gratuities and other benefits in respect of retirement of persons employed by the State. The creation of the Fund is also in line with the International Labour Organisation’s promulgation on social security “The establishment of this State Service Pension Fund will allow for a more structured and well managed approach to retirement benefits of our public servants,” Mudenda said. “This will have the ultimate effect of reducing the burden on the fiscus and ensure that pensioners receive fair and timely pay-outs which should arise from the accrued revenue of the fund investments.” Standard _*Team of technocrats to address funding gaps in critical health programmes*_ THE Government has announced the establishment of a team of technocrats tasked with devising sustainable solutions to address gaps left by the withdrawal of funds in critical health programmes by some of its partners. The development is part of efforts to minimise disruptions to beneficiaries and comes as the nation grapples with the impact of reduced external funding for initiatives targeting HIV and Aids, malaria, tuberculosis and other public health challenges. The funding gap follows an executive order signed by US President Donald Trump, which saw Washington withdraw from the World Health Organisation (WHO) and halt foreign assistance for 90 days as part of a realignment of that country’s foreign aid policy. More than 20 million people globally, accounting for two-thirds of all people living with HIV accessing treatment, are directly supported under Pepfar. In Zimbabwe, Pepfar is the leading funder of HIV programming and the organisation had committed US$210 million to Zimbabwe in 2024 and US$200 million from October 2024 to September 2025. _*Scrap metal firm in ZETDC theft storm… Caught with ZETDC-branded angle iron bars*_ A scrap metal dealer has been arrested for allegedly vandalising infrastructure (pylons) belonging to the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). The scrap metal company — Panellink Manufacturing Private Limited based in the Kelvin West industrial area in Bulawayo was found in possession of 74 pieces of angle iron bars, measuring 1,6 metres in length and engraved with ZETDC serial numbers. This is an Ignite Media Zimbabwe news production. Bulawayo police spokesperson Assistant Inspector Nomalanga Msebele confirmed the arrest on 11 February of the company for possession of materials used in the generation, transmission, distribution and supply of electricity. The arrest followed a joint operation by the police and the CID Minerals and Flora Fauna Unit (MFFU) Bulawayo, who conducted a search at the company’s premises. “Police confirm the arrest of Panellink Manufacturing Private Limited, a manufacturing company located in Kelvin West, Bulawayo after being found in possession of material used in the generation, transmission, distribution and supply of electricity. “On 11 February 2025, the team that had members from the CID MFFU Bulawayo went to Kelvin West Industries to conduct searches at possible places of disposal of the Zimbabwe Electricity Transmission Distribution Company. The team proceeded to Panellink — a company which is situated in Kelvin West, Bulawayo. The team requested permission to search the premises from the operations manager and he consented,” said Asst Insp Msebele. During the search, detectives discovered 74 pieces of angle iron bars, measuring 1,6 metres in length, engraved with ZETDC serial numbers. The recovered materials, weighing 360 kilogrammes were identified as ZETDC property by the company’s senior security officer and an engineer who was called to the scene. The company’s operations manager claimed that the angle irons were purchased from scrap metal dealers in November 2024, allegedly concealed among other scrap metal. “The detectives invited ZETDC Bulawayo senior security officer, who came to the scene in the company of the ZETDC engineer and they identified the recovered angle iron as property of ZETDC. “The accused was interviewed and indicated that the company could have bought the angle irons concealed among other scrap metal in November 2024 from scrap metal dealers,” said Asst Insp Msebele. This incident underscores a broader trend of vandalism targeting ZETDC infrastructure, including pylons, transformers and power lines. Scrap metal dealers, driven by the lucrative copper and steel markets, have been accused of dismantling and stealing critical components of the national power grid. Such acts of sabotage not only disrupt electricity supply but also endanger lives and exacerbate the country’s energy crisis. Asst Insp Msebele urged members of the public and companies involved in scrap metal dealing to exercise due diligence by thoroughly vetting the source of materials to avoid involvement in criminal activities. “The police are committed to cracking down on this illegal trade, but we need the co-operation of the public to curb this menace,” she said. The vandalism of ZETDC infrastructure has far-reaching consequences for Zimbabwe’s economy and development. Frequent power outages caused by such acts disrupt industries, healthcare services and households, further straining the energy sector. This is an Ignite Media Zimbabwe news production. The theft of angle irons and other materials also imposes significant financial burdens on ZETDC, which must allocate scarce resources to repair and replace damaged infrastructure. However, the collaboration between law enforcement agencies, ZETDC, and the public has been crucial in combating this growing threat and safeguarding the nation’s energy security. Asst Insp Msebele urged all stakeholders to make the fight against infrastructure vandalism a top priority. _*AU Assembly demands reparations, opens path to action: African leaders unite in demanding reparations*_ Officials and experts from African countries and the African Union (AU) on Friday reaffirmed their commitment to advancing the continent's reparatory justice agenda, urging concrete steps to ensure full accountability for historical injustices against Africans and people of African descent. They made the call during a high-level pre-launch meeting of the AU's 2025 theme, "Justice for Africans and People of African Descent Through Reparations," held on the sidelines of the ongoing 38th AU summit, which is taking place from Feb. 12 to 16 at its headquarters in Addis Ababa, the capital of Ethiopia. Speaking at the meeting, Ghana's Minister for Foreign Affairs Samuel Okudzeto Ablakwa emphasized the significance of dedicating 2025 to the cause of reparatory justice. He emphasized that Ghana, as an AU champion on reparations, supports this "landmark decision," which aligns with the broader objectives of Agenda 2063, the continent's 50-year development blueprint focused on liberation, unity, and socioeconomic empowerment. "This moment marks a significant milestone in our collective pursuit of justice, equity, and the long overdue recognition of historical injustices that continue to shape the lives of Africans and people of African descent worldwide," Ablakwa said. Ablakwa said the consequences of these injustices persist today in the form of economic disparities, social inequalities, systemic discrimination, and racial prejudices. "Addressing these challenges requires more than acknowledgement. It demands action. The 2025 AU theme of the year is, therefore, a call to galvanize efforts toward reparatory justice. It is an appeal to ensure that the dignity, rights, and well-being of Africans and their descendants are fully restored," he stressed. The pre-launch event set a powerful tone ahead of the 38th Ordinary Session of the AU Assembly of the Heads of State and Government, scheduled for Saturday and Sunday, where African leaders are expected to formally launch the 2025 theme and outline concrete steps to advance the reparations agenda. AU Commission Deputy Chairperson Monique Nsanzabaganwa stressed that the "devastating consequences of the deliberate and institutionalized acts" of historical injustices, stemming from enslavement, colonial exploitation, racial discrimination, and systemic economic marginalization, have affected Africans and their descendants for centuries. Noting that the historical injustices have deprived the dignity, sovereignty, and rightful opportunities of generations of Africans, Nsanzabaganwa said the theme of the year is "a continuation of a long-standing struggle grounded in the resilience of our ancestors and the unwavering advocacy of today's leaders." _*10 000 new firms register with NSSA*_ NEARLY 10 000 new companies have registered with the National Social Security Authority (NSSA) over the past two years, highlighting the resilience of Zimbabwe’s economy in generating employment despite challenging conditions. According to NSSA data, 4 675 new companies registered with the authority in 2024, marking a 9 percent increase from the 4 286 recorded in 2023. This growth was largely driven by the formalisation of small to medium enterprises (SMEs), which are playing an increasingly central role in the economy. The law mandates all new companies to register with NSSA to comply with labour laws and ensure social security benefits for their employees. Registration allows employees to contribute to and benefit from NSSA’s pension schemes, worker compensation and other social security programmes. Crucially, being registered enhances a company’s credibility and compliance status, which can improve business opportunities, especially with Government and corporate clients. This is an Ignite Media Zimbabwe news production. Non-compliance, however, can result in fines and legal consequences for businesses. Despite this rise in employer listings, the number of new employees registering with NSSA declined by 53 percent, from 12 257 in 2023 to 5 737 last year. But 1,3 million workers remained active contributors to NSSA schemes in 2024. Commerce, personal services and agriculture led in new employer registrations, though all sectors experienced a decline in absolute employment numbers. NSSA’s deputy director of marketing and communication Mr Tendai Mutseyekwa said while overall employee numbers have marginally declined, the rise in new business registrations reflects the strength of SMEs in driving employment in key sectors. “There was a 9 percent growth in new employer registrations between 2023 and 2024 and this was attributed to growth in small to medium enterprises,” he said. “In 2023, 12 257 new employee registrations were recorded, with 4 286 employers registering with the social security authority. _*Nampak records 56% profit drop as revenues shrink*_ PACKAGING concern, Nampak Zimbabwe Limited (NZL) recorded a 56% decline in its trading profit for the firm’s first quarter ended December 31, 2024, owing to a 23% drop in revenue. This drop in trading profit is from a 2023 comparison. In its trading update for the firm’s first quarter ended December 31, 2024, Nampak blamed the ongoing macroeconomic problems for the reduced demand for its products, which cut revenue. A few days ago, CEO Africa Roundtable revealed that many businesses were on the verge of collapse. The macroeconomic challenges negatively affecting businesses, and therefore demand for Nampak products, include exchange rate volatility, growing informalisation, high taxation, rising utility costs, and policy inconsistency. “Demand for packaging across all business units faced pressure due to intensified competitor activity, especially in the commercial segment,” Nampak said. “Additionally, we encountered supply chain disruptions with raw materials arriving via Beira Port, stemming from the political unrest in Mozambique following the disputed election results. “Although the raw materials were ultimately received, the delays impacted our delivery capabilities during the festive season. “The ongoing macroeconomic challenges are not yet resolved and will inevitably affect demand, as the wholesale and retail sectors navigate considerable branch closures that threaten the sustainability of businesses.” Nampak’s parent company, South African packaging firm Nampak Limited, is already in the process of disposing of its local subsidiary owing to macroeconomic challenges. This is an Ignite Media Zimbabwe news production. “Group revenue for the quarter, expressed in USD terms, was 23% lower than in the prior year period, while trading profit declined by 56%. “This decrease in revenue reflects the reduced demand across all business units,” Nampak said. “Notably, the gross profit margin held steady compared to the previous year, whereas the trading profit margin experienced a 9% drop. This reduction in trading margin is largely attributable to the hyperinflation accounting effects from the prior year’s comparative period.” Nampak transitioned to the US dollar on April 1, 2024, days before the introduction of the Zimbabwe Gold. Under Nampak’s Hunyani Paper and Packaging subsidiary, the first quarter saw the unit’s Corrugated Products Division record a sales volume decline of 35% compared to the 2023 period. This decrease was primarily due to heightened competition within the commercial segment and a reduced carryover of late-season orders from tobacco merchants. However, the unit’s Cartons, Labels, and Sacks Division achieved a 4% increase in sales volumes compared to the prior year, fuelled by a recovery in commercial sales. Regarding Mega Pak, Nampak said this subsidiary experienced a 13% decline in volumes compared to the same period last year. “The intermittent power disruptions from the Zimbabwe Electricity Supply Authority have led to increased operational costs and a rise in plant breakdowns, stemming from the resultant stop-start production process,” Nampak said. Lastly, Nampak’s CarnaudMetalbox subsidiary experienced a 7% decline in sales volumes during the period under review due to a significant reduction in its metals volumes. “The operating environment in Zimbabwe is undeniably complex, impacted by policy changes and currency instability,” Nampak said. “We expect that the government will take decisive steps to effectively address the increasing risks of company closures and retrenchments.” The group said it would continue to focus on cost containment measures to protect margins and drive profitability across all operating units. Standard _*Critique of Zim’s policy on mandatory electronic payments*_ The Zimbabwean government's recent policy mandate requiring all businesses, including the informal sector, to adopt electronic payments represents a significant shift in regulatory measures aimed at increasing tax compliance and formalizing the country's economy. While the intention behind this mandate—as articulated by Information minister Jenfan Muswere and Finance minister Mthuli Ncube—seeks to modernise payment systems, enhance economic stability, and improve tax collection, the policy raises critical concerns regarding its implementation, inclusivity, and potential economic impact. Background: Context of the new policy Zimbabwe's economy has long struggled with hyperinflation, currency volatility, and a large informal sector that accounts for a substantial portion of employment and economic activity. This is an Ignite Media Zimbabwe news production. The government's recent push for electronic payments aims to tackle persistent challenges in tax collection, which have historically stemmed from the informal sector's limited engagement with the formal economy. By mandating electronic transactions, the government envisions greater oversight and control over the informal market, which is crucial for ensuring compliance with tax laws and regulations. Critique of the policy Implications for the informal sector One of the most pressing concerns with the new policy is its impact on the informal sector, which plays a vital role in Zimbabwe's economy. Vendors and small-scale businesses often operate on tight margins, using cash transactions for their convenience and reliability in an economy fraught with the risks of hyperinflation and currency devaluation. Mandating electronic payments may inadvertently exclude a part of the informal sector that lacks access to banking services, reliable electricity, or even the necessary technology such as smartphones and POS machines. Imposing such requirements could lead to economic disenfranchisement, pushing small vendors out of business rather than integrating them into the formal economy. Access to banking and technology The need for businesses to register with local authorities and open bank accounts raises critical questions about access to financial services. In a country where many citizens are unbanked, particularly in rural areas, the policy creates additional barriers to entry for those who already face systemic challenges in accessing financial institutions. For successful implementation, the government must ensure that adequate infrastructure, education, and technological support are provided to those who may struggle to adapt to electronic payments, particularly marginalized populations engaged in informal trading. Cost and burden of compliance For many MSMEs, particularly those in the informal economy, the cost of compliance may outweigh the benefits of being formalised. The requirement to purchase POS machines and maintain a bank account introduces additional financial burdens that could destabilize existing businesses. Many of these enterprises are already vulnerable to economic shocks and operate on unpredictable incomes; adding further financial strain could push them into insolvency or encourage continued reliance on cash transactions outside the purview of the formal economy. Government trust and public perception The order to enforce electronic payments comes at a time when many Zimbabweans harbor mistrust towards government institutions, particularly the Finance ministry. The historical context of economic mismanagement, rampant corruption, and lack of fiscal transparency diminishes public confidence in government initiatives. By pivoting to compulsory electronic payment systems, the government risks facing resistance and backlash from the public, particularly if citizens believe that the reforms are designed primarily to generate revenue for the government rather than improve their economic wellbeing. Administrative capacity and enforcement challenges The establishment of a "Domestic Inter-agency Team" to ensure compliance raises questions about the government's administrative capacity to carry out such enforcement effectively. Zimbabwe has historically struggled with bureaucratic inefficiencies, and the imposition of new regulations demands a competent framework for monitoring and enforcement. Without proper training, resources, and tools to conduct oversight, the government may find it exceedingly challenging to regulate the informal sector. This is an Ignite Media Zimbabwe news production. There is a real risk that the new regulations could exacerbate existing bureaucratic bottlenecks, leading to further frustration among business owners and potentially fueling corruption as vendors seek to navigate compliance challenges. Market disruption and economic impact From a macroeconomic perspective, mandating electronic payments will likely cause disruptions in the market, particularly in urban informal trading spaces that are heavily reliant on cash transactions. Should these vendors be unable to comply with the new rules, it can lead to increased unemployment, and the further fragmentation of informal economies. The ramifications of restricting cash transactions may ripple through the broader economy, leading to decreased purchasing power, slower economic activity, and increased poverty levels among vulnerable populations especially in the already marginalised communities. Potential benefits: Tax compliance and transparency Despite the legitimate concerns surrounding implementation, the potential advantages of such a policy should not be dismissed wholly. The compulsory adoption of electronic payments could pave the way for improved tax compliance, assigning an audit trail to transactions that were previously unrecorded. Enhanced transparency might also contribute to a fairer marketplace, forcing businesses into competition based on merit rather than tax evasion. If effectively managed, this could cultivate an environment of trust that benefits larger, more established businesses while also integrating smaller operations into the formal economy. Consideration of a gradual transition In light of the profound implications of this policy, a more incremental approach may prove beneficial. Gradually inducing sectors of the informal economy to convert to electronic payment systems through incentives rather than compulsion could alleviate burdens and allow time for adjustments. Initiatives like subsidising POS machines or providing education about electronic payments may promote a more organic transition while allowing local businesses to flourish alongside regulatory compliance. Conclusion The government's policy mandating electronic payments for all businesses in Zimbabwe, including small informal vendors, reflects an ambitious attempt to formalise the economy, enhance tax compliance, and stabilise an unstable financial landscape. However, the immediate implications of this policy raise significant concerns for access, affordability, public trust, compliance challenges, and potential economic impacts. To ensure the policy's success, the Zimbabwean government needs to prioritize stakeholder engagement, adequate resource allocation, and a phased implementation strategy that includes direct support for the affected businesses. By addressing these concerns sustainably and inclusively, the government can proceed toward a more formal economy without marginalising those who play an essential role in the existing economic framework. Ultimately, the goal should be to create an environment where all players—formal and informal—can thrive together, contributing to a resilient and growing economy. This is an Ignite Media Zimbabwe news production. Samuel Wadzai is an informal economy expert and currently the executive director for the Vendors Initiative for Social and Economic Transformation (VISET) _*South African landlords demand sex from university students: I had no choice but to accept the landlord’s demands*_ South Africa’s higher education sector is facing a deepening crisis as students reliant on the National Student Financial Aid Scheme (NSFAS) struggle to access accommodation, with some landlords now allegedly demanding sexual favours in exchange for housing. This shocking revelation comes as Universities South Africa (USAF) and other stakeholders criticise NSFAS for its inability to effectively manage student funding and accommodation disbursements, leaving thousands of students in limbo. Shockingly, this development may not affect South Africans only, but foreigners too, especially Zimbabwean students who study in South Africa as they also have to seek accommodation in South Africa. News 24 revealed that that there are around 20,000 Zimbabweans studying in South Africa. At least seven weeks into the academic year, NSFAS has yet to settle thousands of outstanding accommodation claims for 2024, leaving students stranded and accommodation providers frustrated. Advocacy group Youth Capital’s Nape Senong highlighted the dire consequences of this delay, stating, “Young people end up being homeless or resort to very weird ways of surviving. It plunges the poor into even more poverty.” The situation has become so desperate that some students, particularly young women, are reportedly being exploited by unscrupulous landlords. While this issue is not new, the current funding delays have exacerbated the problem, leaving vulnerable students with few options. NSFAS Under Fire for Administrative Failures Universities South Africa (USAF) chief executive officer Phethiwe Matutu has called for urgent reforms to NSFAS, arguing that the scheme lacks the capacity to handle its massive responsibilities. “The centralisation of NSFAS needs recapitalisation, which means better staffing and infrastructure. NSFAS is a small organisation which is expected to administer R50-billion. A lot is at stake, so it is important that money is paid at the appropriate time,” she said. Matutu believes that universities should play a greater role in managing student funding and accommodation disbursements. “The issue of providers not being paid upfront does not make sense. They must pay rates, staff, taxes and all sorts of bills,” she added. USAF is advocating for institutions of higher learning to take up the responsibility of disbursements and the accreditation of student accommodations. Private Student Housing Association chief executive Kagisho Mamabolo echoed these concerns, expressing frustration with NSFAS’s handling of the crisis. “They are sending an email address where we need to send claims, but we cannot be doing this repeatedly. It does not give us confidence that NSFAS is serious about resolving this matter. They must take responsibility and inform us why they cannot resolve the matter,” Mamabolo said. A System in Crisis NSFAS, which is responsible for facilitating the application processes and disbursements of both tuition and accommodation fees, has been plagued by administrative challenges. NSFAS spokesperson Ishmael Mnisi acknowledged the delays, stating that the scheme had initiated a reconciliation of accommodation claims and disbursements due to duplications in some instances. “In 2025, NSFAS is implementing measures to ensure certainty and clarity about claims and disbursements,” Mnisi said. However, this assurance offers little comfort to students and accommodation providers grappling with the current crisis. Preliminary findings from a campaign by Youth Capital, called #fixnsfas, reveal that accommodation remains a critical issue for students. Senong emphasised the importance of NSFAS in providing opportunities for disadvantaged youth. “For us, NSFAS is important because it gives a lot of poor children an opportunity to get tertiary education, which gives them the ability to find work,” he said. This is an Ignite Media Zimbabwe news production. Students Bear the Brunt The delays in NSFAS payments have left many students in precarious situations. Without access to accredited accommodation, some have been forced to seek alternative housing, often in unsafe or exploitative environments. Reports of landlords demanding sex in exchange for accommodation have surfaced, highlighting the vulnerability of students who rely on NSFAS funding. One student, who asked to remain anonymous, shared her experience: “I had no choice but to accept the landlord’s demands because I had nowhere else to go. NSFAS had not paid, and I couldn’t afford to rent a place on my own.” This exploitation is not only a violation of students’ rights but also a stark reminder of the systemic failures within NSFAS. Matutu believes that universities can play a key role in addressing these challenges by mobilising administrative teams, including students, to tackle the red tape. Calls for Systemic Reform Stakeholders are urging NSFAS to collaborate with universities and other organisations to improve its capacity and efficiency. Matutu stressed the need for a decentralised approach, stating, “The organisation believes that the scheme should share responsibilities with the universities instead of trying to spearhead all procedures with a limited staff complement.” Mamabolo also called for greater accountability from NSFAS, emphasising the need for clear communication and timely payments. “They must take responsibility and inform us why they cannot resolve the matter,” he said. This is an Ignite Media Zimbabwe news production. As the crisis deepens, the plight of South Africa’s students underscores the urgent need for systemic reform. Without immediate action, thousands of students will continue to face homelessness, exploitation, and the risk of dropping out of tertiary education altogether. _*”But they have the land”: South Africa Mocks Zimbabwe Over Japan’s US$2.8 Million Food Aid Donation*_ “But they have the land”: South Africa Mocks Zimbabwe Over Japan’s US$2.8 Million Food Aid Donation Zimbabwe is once again facing ridicule from South Africans after receiving a multi-million-dollar food aid donation from Japan to combat hunger. Zimbabwe’s Ongoing Hunger Crisis While the country is currently experiencing good rains, last year’s drought left many rural communities struggling with food shortages. With crop harvests still months away, thousands remain at risk of starvation. To help ease the crisis, the Japanese government, in partnership with the World Food Programme (WFP), has launched a three-month feeding programme worth US$2.8 million. The Lean Season Assistance Campaign will provide food relief to more than 57,000 villagers across seven districts. However, this has sparked a wave of mockery from South Africans, who took to social media to question why Zimbabwe, once the “breadbasket of Africa,” now relies on foreign aid for survival. Here’s what some South Africans had to say about the situation: @Dirtybootsmo: But…..they chased out all the “oppressive foreigners,” and now they have land…. why are they starving? Why do they need different foreigners to feed them? I thought they could do it all themselves, no? The irony is so thick 🤣😂🤣😂😂🤣😂🤣😂 @safferpsyche: Why accept food from foreigners when you can grow your own? @safferpsyche: Isn’t the whole point of living in a rural