ZIMBABWE’S persistent deflationary environment is seen forcing Reserve Bank of Zimbabwe (RBZ) governor John Mangudya to take an inflation-oriented stance in his monetary policy statement that is due early this year.

Leading UK based research unit NKC African Economics (NKC) said the country has no choice but to tackle deflation given that it is detrimental to productive sectors of the economy, consequently reducing economic growth.

John Aglionby in Nairobi
The Kenyan government plans to cut spending by 1 per cent of gross domestic product in the next six months as it seeks to rein in its ballooning budget deficit and create “buffers” to counter emerging market turbulence.

Kenya’s decision to cut its budget mirrors that of South Africa, which is also trying to reduce public sector spending. Ghana, with help from the International Monetary Fund, is seeking to reduce its budget deficit.

In contrast, Nigeria has decided to increase spending in a bid to boost growth while leaders in Uganda and Zambia, which both face elections this year, are also lifting government spending.

According to the latest statistics (2009-2015) from the Zimbabwe Investment Authority, Mauritius is the largest source of investment flows accounting for $4,56 billion, China is the second largest source country at $2,81 billion with the most significant amount of $1,09 billion coming through in 2011, while the British Virgin Islands is on sixth at $760,54 million.

According to the figures, $400 million will be invested in the energy sector, manufacturing $500 million and $300 million in the mining sector.

Total investment approved amounted to $3,16 billion from 170 projects. The projects are forecast to create 13 377 jobs and about $30 million in export earnings.

Zesa is working on a debt recovery strategy to pin consumers, including bigwigs who owe the power utility $1 billion in unpaid bills, Energy and Power Development Minister Dr Samuel Undenge said yesterday.

Some Government Ministers and senior civil servants are not paying their electricity bills, with some owing tens of thousands of dollars at their homes and farms. If they don’t pay for the services, Zesa will come to a stage where it will not be able to deliver that service.

The move would have seen consumers being forced to pay high monthly instalments towards servicing their debts before accessing electricity.

Though Zesa’s proposed tariffs have remained a secret, sources said the utility wanted the price pegged at 14 cents per kilowatt per hour up from 9,86c/Kwh.

The average electricity cost in the Southern African region is 14c/kWh.

MAR 13, 2015 Forbes 

A $400 million cement plant in Zambia owned by Dangote Group will be commissioned and commence operations by the end of March, according to a report by the Lusaka Times.

Speaking to a group of Journalists on Thursday at departure at Simon Mwansa Kapwepwe International Airport in Ndola, Aliko Dangote, Africa’s richest man and owner of the Dangote Group, said that the commissioning of the new cement plantwhich is located in Masaiti district in the Copperbelt, had been delayed as a result of flooding and a delay in getting the requisite permits from the Zambia Environmental Management Agency (ZEMA).

Once operational, the Dangote Cement Plant will have a production capacity of 1.5 million tonnes annually and will create at least 1,000 jobs.

Meanwhile, Dangote is constructing another Cement Plant in Chilanga, a small town 20 km south of Zambia’s capital city, Lusaka. The cement plant in Chilanga will cost an estimated $420 million.

“We have made good progress on the plant in Lusaka, we have already got permission to get into the land and start mining, so hopefully the same contractor might move there and build an identical plant with the one in Masaiti,” Dangote said.

Aliko Dangote has been Africa’s richest man for the past 5 years. His current fortune is estimated at $15.9 billion derived from investments in cement, sugar and flour.