Owning A Car Becomes Harder As Mthuli Ncube ‘Bans’ Importation Of Second Hand Vehicles Older Than 10 Years

Mthuli Ncube

Mthuli Ncube ‘Bans’ Importation Of Second Hand Vehicles

 

Mthuli Ncube
Photographer: Cynthia R Matonhodze/Bloomberg

The 2021 Budget which was presented by the Minister of Finance and Economic Development Mthuli Ncube yesterday, seems to have underwhelmed many. In the budget, Ncube made it harder for the ordinary person to own a car, by putting restrictions on the importation of second-hand vehicles, which had become the staple for many first-time vehicle owners.

According to the Minister, the country has spent a massive US$1.3 billion in 5 years, importing second hard cars and buses. To curb the spending on second-hand cars and to promote the local industry, the Minister removed all cars that are older than 10 years from the Open General Import Licence. This means that from 2021, people will need a special import license if they want to import older cars. The new restrictions do not apply to commercial vehicles, such as trucks, tractors, and earthmoving equipment used in mining or construction.

 

Mthuli Ncube 'Bans' Importation Of Second Hand Vehicles
Mthuli Ncube ‘Bans’ Importation Of Second Hand Vehicles

 

In presenting the 2021 Budget Statement, Mtuli said,

Mr Speaker Sir, about US$1.3 billion was spent on imported buses, light commercial and passenger motor vehicles from 2015 to September.

This is despite the existence of capacity by the local motor industry to assemble the above-mentioned range of motor vehicles.

Furthermore, due to lack of effective standards and regulation, road unworthy vehicles, which, in some instances fail to meet environmental and safety standards, find their way onto the market.

In line with the NDS1, which underscores value addition, I propose to remove second-hand motor vehicles aged 10 years and above, from the date of manufacture at the time of importation, from the Open General
Import Licence.

In the interim, commercial vehicles such as tractors, haulage trucks, earth-moving equipment and other specialised vehicles used in mining and construction will be exempt from this requirement.


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    Haulage Trucks Spend Over 500 Days At Zim Border Posts Awaiting Clearance

    Cargo Trucks Delayed At Border Posts

    Cargo Trucks Delayed At Border Posts
    Cargo Trucks Delayed At Border Posts, AGs report

    A report released by the Comptroller and Auditor-General Mildred Chiri reveals that between 2015 and 2018 cargo trucks that entered the country were taking as long as 586 days at border posts awaiting clearance.

    Mildred Chiri said in the report, that the delays in clearing the trucks were fueling illegal activities involving the goods in transit.

    The illegal offloaded goods will cause unfair competition (the prices would be lower) to the country’s local industry as they would have entered the country without proper duty related to their importation, reads the AG report.

    The report showed in detail how long some trucks were being held up at the country’s port of entry. Five border posts namely: Beitbridge, Nyamapanda, Chirundu, Victoria Falls and Kazungula have been singled out to be the ones with the highest delay for goods in transit.

    Beitbridge Border Post

    Beitbridge border post had a truck with goods in transit which delayed for 586 days in December 2015 from exiting the country through Nyamapanda border posts.”

    The goods in transit departed Beitbridge border post on December 10, 2015, and exited through Nyamapanda border post on July 21, 2017.

    Chirundu Border Post

    At Chirundu border, there was a transit cargo which entered the country and stayed in transit for 552 days before reaching its exit point on December 14, 2016, and exited through Beitbridge on June 22, 2018.

    Victoria Falls Border Post

    Victoria Falls border posts records showed a truck with goods in transit which entered the country in 2017 and delayed for 230 days from exiting the country through Kazungula border posts, despite the fact that the distance between the two border post was only 73 kilometres.

    The goods in transit departed Victoria Falls border on September 14, 2017, and reached Kazungula border post on May 5, 2018.

    Kazungula Border Post

    The goods in transit departed Kazungula border post on December 14, 2017, and exited through Victoria Falls border posts on May 25, 2018,

    However, Chiri said some of the delays were caused by pending court cases, lack of documentation, drivers falling sick as well as accidents and breakdowns.

    Upon enquiry with ZIMRA officials, it was noted that delays were caused by various reasons, for instance, the goods in transit which delayed for 586 days, it was established that it was as a result of a pending court case,

    Another of 552 days was due to clearing agents failing to provide documents in time for the transit cargo to be cleared from the ASYCUDA system.

    General reasons were given for other delays which included drivers getting sick along the way, accidents and break downs and late submissions of documents by shipping agents. she said.

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    ZESA In Another 50% Tariff Hike…Here Are The New Tariffs

    ZESA New Tariffs

    ZESA New Tariffs

    The Zimbabwe Electricity Supply Authority (ZESA) has announced another 50 percent tariff increase.

    In a statement,  Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA Holdings, said it has increased tariffs by 50% effective 01 November 2020.

    ZESA load shedding

    Part of the statement reads:

    The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has adjusted the electricity tariffs by 50%.

    This is in accordance with the Tariff Award of 2 October 2019, which approved the implementation of monthly tariff indexation formula for changes above 10%.

    Before today’s announcement, ZETDC increased electricity tariffs by 50 percent in September before increasing tariffs by another 50 percent on 1 October. This signifies a 150% tariff hike in the last three months.

    New ZESA tariffs

    Consumption Bands kWh Price (ZWL$)
    1 – 50kWh 1.67
    51 – 200kWh 3.65
    201 – 300kWh 9.92
    Above 300kWh 15.57

    Old Tariffs

    Consumption Bands kWh Price (ZWL$)
    1 – 50kWh 1.11
    51 – 200kWh 2.43
    201 – 300kWh 6.62
    Above 300kWh 10.38

    Zimbabweans have reacted to the recent electricity tariff hike with the Progressive Teachers Union of Zimbabwe (PTUZ) saying the increase is unsustainable given what teachers earn at the end of the month. PTUZ wrote:

    You raise electricity tariffs every month, Zinara and insurance by more than 100%, school fees by more 500% +, then say teachers must go back to work without a realistic increment. Do the right thing and we will back at work. Tomorrow shld indicate if gvt wants to reopen or not

    A Twitter user @Dutch_THE_Dutch said the increase by ZESA will lead to other increases. He wrote:

    A 50% increase of a previous 50% increase of zesa will lead to the increase of other products

    Another user asked Information Permanent Secretary Nick Mangwana why ZESA was increasing tariffs when the ZWL: USD rate has stabilized. Mangwana had not responded at the time of publishing.

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    Wondering How US Elections Affect The Markets?

    Wondering How US Elections Affect The Markets?

    The upcoming U.S. presidential election will likely be an important key for the market moves. As the presidential election approaches, traders face uncertainty about the markets.

    If you are wondering how US elections affect the markets and How to take advantage of the current market conditions, find out which instruments are affected due to US elections.

    XM Offers every day Free live sessions about the effects of US elections on the markets.
    It is a great opportunity to learn about the challenges of investing in uncertain times.

    Join XM’s live exclusive debates in the Basic or Advanced room with a panel of experts.
    Watch and ask your questions about the reaction of markets to US elections.

    It is every day on sessions covering the opening of US markets.

    US Elections Affect The Markets

    XM is an online broker operated by the Trading Point of Financial Instruments Ltd, XM Group has a range of brands covered by different international regulators.

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    Commission Based Jobs For Zimbos

    Commission Based Jobs For Zimbos

    Commission Based Jobs For Zimbos

    By Shannon Nyajeka

    Commission based work on Local Zimbos
    Commission Based Jobs For Zimbos

    The life of a post-graduate student getting into the real world is challenging and full of uncertainty. Venturing into the great unknown with the quest for financial independence. The coronavirus only amplified the plight of the industries and unemployment, with pre-existing companies not accepting individuals with no work experience as well as companies downsizing their labour force with mass retrenchment to stay afloat, it is almost impossible to earn and sustain a living.

    The introduction of online freelance platforms like the LocalZimbo seems to be the only solution to combat this plight.

    When I joined LocalZimbo.com, I realised that the freelance website is tailor-made for combating my situation as a post-grad African/Zimbabwean student. I feel to best explain how this platform has helped me I would have to draw a comparison with this platform and other well-recognized platforms.

    Other platforms like Upwork and Fiverr, have an online payment system. So it goes without saying that transferring those funds into your bank account will come with steep charges, as those platforms already take up to 20% of your commission by the time the money is in your personalized account you would have already lost almost half of it in transfer fees.

    Now With the case of LocalZimbo.com, the fees on this platform are less harsh and more compatible with the local payment systems, in this country.

    There is more of a fair deal on this platform as people will become hired guns, for commission based gigs. The payments for gigs on this website are processed manually every Friday. Subscribers are urged to be part of local online financial service providers like Mukuru.com (which functions like Paypal) which allows for the funds to be made available on Ecocash as well as transferred internationally.

    Another advantage of being on Local Zimbo would be the timeliness of the payments. Platforms like Fiverr and Upwork tend to make the seller wait two-three weeks after they have completed the assignment for the funds to be processed and ready to be transferred and ready to be transacted. Whereas with LocalZimbo.com those funds take a shorter time to reflect in your account.

    Opportunities are not just exclusively for the post-grad students, but there are for whoever avails themselves. That’s right, you see other pre-existing platforms like Fiverr and Upwork are only profitable for postgraduates with impressive qualifications and strong portfolios. But even then the requests for orders are few and far between for Africans with credentials.

    Getting duped, now a thing of the past

    The best thing about this platform is that customers are protected from fraudsters. When you order service through the Local Zimbo, your funds are held until the service is delivered, then only can the seller be paid, when you approve the order.

    Now with regards to the platform LocalZimbo.com, the best attribute any subscriber of this platform can have is their availability for the gigs presented.

    Unlike Fiverr, LocalZimbo.com provides jobs for a multitude of industries as well as gigs that don’t necessarily need any qualifications or work experience.

    That’s right, from gigs like graphic design, business services, a legal consultancy that require qualifications, to gigs like domestic work, handy repairs, and hairstylists that only require personal work experience and availability.

    It is no secret that most companies and employment agencies have an influx of people seeking opportunities, however hypothetically speaking if the well dries up on your main claim to fame so to speak, availing yourself for gigs like domestic work and tutoring will still be able to make sure you stay afloat.

    The ‘House call’ feature allows for you to bring whatever services you can provide straight to the consumer making this platform more interpersonal and that benefit is exclusive to LocalZimbo.com.

    Another benefit that comes with the house call feature is how hospitals are not taking any more patients due to the COVID-19 pandemic, thus even nurses, physiotherapists, and doctors who are out of work can be discovered locally and can be paid to do home deliveries for their services which in this current situation is safe and the most ideal.

    LocalZimbo.com to the internet at large is another freelance platform, but in the cases of Zimbabweans, LocalZimbo.com is the ultimate online contingency plan for everyone with or without qualifications, It is the only platform custom made for the realities we face on a day today, it is the only platform where you can trade and engage with people within your national proximity and with provides timeliness of payment to alleviate any outstanding affairs with immediate effect.

    LocalZimbo.com is jobless employment.

    Commission Based Jobs For Zimbos


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    Steward Bank Launches AgroFuture

    Steward Bank Launches AgroFuture

    Steward Bank Launches AgroFuture
    Steward Bank chief executive officer Courage Mashavave(photo credit Herald)

    Steward Bank has in conjunction with businesses under Cassava Smartech Zimbabwe launched “AgroFuture,” an agribusiness product.

    The agribusiness product which is set to be delivered in partnership with Cassava entities Moovah, EcoCash, EcoFarmer EcoSure, and Vaya, will offer tailor-made solutions to specific needs of the agriculture value chain.

    Steward Bank chief executive officer Courage Mashavave who spoke to a local publication The Herald said the new agribusiness product is set to improve agricultural production in the country.

    “Agriculture and food security are at the core of basic survival for the general populace across the country, hence the support of agribusiness activities will certainly have a great economic and social impact,” said Mr. Mashavave, announcing the AgroFuture product.”

    “Our product will offer solutions focused on enhancing agricultural production by providing access to finance and key innovations to farmers, rural agro-dealers, aggregators and manufacturing companies,” he said

    The agricultural production sector in Zimbabwe has declined over the past few years owing to poor farming methods, changing weather patterns, and inadequate financing, among other things. This has seen the country spend hundreds of millions of dollars importing food and agriculture-related products annually.

    Announcing the AgroFuture product, Mashavave said there was a need to boost productivity in agriculture to ensure that the country produces enough to meet national demand and reduce the food import bill.

    “AgroFuture reaffirms Steward Bank’s position as the everyday bank for everyday people, as the package has solutions for all stages of the farming process, from preparations, production to the selling of the product,” he said

    He also revealed that in the near future they are also going to launch  Agric Mobile, which is an instant account-opening service that comes with instant mobile credit, as well as Smart Insure – guaranteeing insurance cover against any loss or damage to crops, livestock, and equipment.


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    Fuel Now Officially Cheaper In US Dollars Than Zimbabwe Dollars

    Fuel Now Officially Cheaper In US Dollars Than Zimbabwe Dollars- iHarare

    Fuel Now Officially Cheaper In US Dollars Than Zimbabwe Dollars

    Govt Orders Businesses To Display Both Zimbabwe Dollar And Foreign Currency Prices- iHarare
    Zimbabwe Forex exchange auction trading system

    Fuel in Zimbabwe is now surprisingly cheaper in United States dollars compared to that priced in Zimbabwean dollars.

    A litre of petrol is retailing at an average $97 against the domestic currency’s trading range of $81 to the United States dollar at the Reserve Bank of Zimbabwe (RBZ)’s weekly auctions and $90 on the black market.

    A weighted or blended price of the commodity (at US$1,19 per unit) using the current rates means local cash fuel is “slightly expensive”, thus spawning a massive phenomenon where motorists prefer to use foreign currency to purchase fuel.

    Besides the exchange rate considerations, the trend is probably being fueled by the fact that it has become so cumbersome to use the Zimbabwe dollar due to daily transaction limits or restrictions — and the pricing chatter has also arisen due to the scrapping of subsidies on the key product.

    Zimbabwe Energy and Regulatory Authority acting chief executive Eddington Mazambani told The Finacial Gazette that they are doing their best to deliver a fairly-priced commodity for the sustenance of the economy and other long-term benefits such as low inflation.

    He said:

    When we announced prices on September 05, we considered the ruling exchange rate. If you check our notice (dealers with a) trading advantage can sell at a lower price, ours (the price) is just a cap, to say you cannot sell at a price higher than this.

    RBZ advisor Eddie Cross however said the prices in foreign currency were way expensive compared to those being charged in the region despite the fact that John Mangudya’s auctions had already guaranteed a steady supply of currency.

    Cross said:

    We need a more market-driven system, with dealers buying their fuel with funds from the auction,” he said, adding he expected August and September’s inflation figures to be very low.It is sustainable (and achievable) if we maintain t he current policies… (and l can safely say) the informal sector rates now represents a minority of transactions, and neither dominant nor representative.

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    Golden Ratio in Stock Market Business: Does It, and How Does It Work?

    The Golden Ratio can only be described as a phenomenal one

    Golden Ratio in Stock Market Business: Does It, and How Does It Work?

    The Golden Ratio can only be described as a phenomenal one. Over the years, this natural phenomenon of proportion and symmetry that results from number patterns referred to as the Fibonacci sequence has been shown to be useful in describing just about anything ranging from nature to universal patterns. 

    What’s more? Its application doesn’t stop there, it extends on to the stock market. The stock market is a very volatile one that requires close study and careful analysis in order to make educated guesses.

    This implies that the stock market is predictable but can only be done with the right tools, and the Golden Ratio has been shown to have great practical application in doing just this. The market operates on the exact same mathematical base as the natural phenomena that the Golden Ratio is found to be applicable to.

     Now to the next big questions, does this Ratio actually work? And if it does, how exactly does it work?

    Does the Golden Ratio Work in Stock Market Business?

    Although there has been a measure of scepticism following the Fibonacci sequence and the Golden Ratio, years of the application shows us that there just might be some truth to it. Now, for sceptics, a great number believe that the pattern of finding the Golden Ratio in different aspects of nature are a mere coincidence. 

    Now, predicting the stock market is basically trying to pinpoint the future value of a particular company’s stock or any other financial instrument that is typically traded on an exchange. There is, therefore, no gainsaying that correct prediction of a stock’s future price could result in a very significant profit. 

    But would the Golden Ratio work for this? And if yes, why would it?

    The first aspect of this is the fact that the stock market is indeed predictable. And this would imply that there should definitely be ways of predicting it. Next is that the markets are said to be perfectly patterned indicating that the only changes would come as a result of human decisions. 

    Stock price changes typically occur as a result of human influence – particularly the higher-ups. This is usually as a result of diverse opinions, valuations, and expectations – all of which are human. A study carried out by mathematical psychologist Vladimir Lefebvre indicated humans distinctly showcased positive and negative opinion evaluation by a Ratio that is very close to phi – numerically 61.8% positive and 38 2% negative. 

    This clearly points out a pattern and goes on to show that the Golden Ratio and Fibonacci series does work in the stock market business. So to the next big question.

     

    How Does the Golden Ratio Work in Stock Business?

    The Golden Ratio is gotten from a pattern of numbers referred to as the Fibonacci sequence. The Fibonacci sequence is such that the next number in its series is derived by summing the two preceding numbers. It therefore typically begins with a zero or a one. Therefore, you would always find two number ones starting every sequence. 

    A representation of the Fibonacci sequence goes like: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc. Therefore by summing the two preceding numbers e.g 5+8=13, you get the next value in the series. 

    Taking two successive numbers from the Fibonacci sequence and dividing the second number by the first results in a value that is very close to the Golden Ratio’s largest positive value of 1.618. 

    Furthermore, switching the division pattern and dividing the first number by the second number in the Fibonacci sequence would bring you very close to the Golden Ratio’s smallest positive value of .618.

    The Application

    Stock Market analysts apply the Golden Ratio in studying significant price movement trends for a particular stock or the market as a whole. They use it for analyzing resistance and support of stocks and this is referred to as Fibonacci Time Zones, Arcs, Fans and Retracements. When these numbers are plotted on a chart, analysts usually include a high number of 100% and a low number of 0%. The resistance is when the stock price should stop increasing and the support level is when the stock price should stop decreasing. 

    The theory that backs this application is that whenever a stock sees a noteworthy price decrease or increase, its support levels and resistance and would be exactly at or very close to the Golden Ratio values. 

    Given that the stock market movement can be predicted using the Golden Ratio, calculating the total expected return on any stock becomes a whole lot easier. This basically goes to show that the Golden Ratio is applicable in the stock market business as well as other forms of trading.

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    Zimbabwe Cotton Farmers Cry Foul After Being Paid In Groceries

    Zimbabwe Cotton Farmers Being Paid In Groceries

    Zimbabwe Cotton Farmers Being Paid In Groceries

     

    Cotton farmers in the country are crying foul and have threatened to stop growing cotton following the Cotton Company of Zimbabwe (Cottco)’s decision to pay them through groceries.

    The farmers are alleging that the move was unilateral and that the company is forcing them to accept groceries that they do not want or need. The farmers are also accusing the company of reneging on an earlier agreement to pay them using United States dollars and local currency.

    Noah Mashava, a young cotton farmer from Chinyamukwakwa, who spoke to The Manica Post said that he was shocked to receive a box of cooking oil as part of the payment for the cotton he delivered to Cottco.

    “I wanted to get married this year after receiving my payment, but now I can’t. Where do I get the money to pay lobola? I appeal to the relevant authorities to address this issue urgently.

    “I am contemplating switching to sesame because those who grew it are reaping good rewards,” said Mashava.

    Another farmer Mrs Eness Khosa from Machona Village who has been growing cotton since 1998 called for a reasonable pricing system.

    “Things have changed and I can no longer send my children to school. If we continue on this path, this will spell doom for the cotton industry. We just want a reasonable pricing regime.

    “No one was consulted before they sent groceries as payment for my cotton. I was given salt as payment and I don’t need it.

    “The receipt they gave me does not even indicate the number of kilogrammes of the cotton I delivered. They are short-changing us. My child has to go to college and this grocery payment is a serious setback,’’ she said.

    Zimbabwe Cotton Farmers Being Paid In Groceries
    Zimbabwe Cotton Farmers Being Paid In Groceries

     

    However, Cottco managing director, Pious Manamike, said that the groceries were not being forced on anyone. He blamed the current situation on liquidity issues and said that farmers were free to wait for the money. He did not give a timeline, however, of when the farmers should expect to get the money.

    “We have been paying some of the farmers using groceries. We are not reneging on the contracts we entered with the farmers, but we are giving them a choice of either receiving cash or groceries.

    “We had committed to pay the farmers in United States dollars, cash in local currency or through mobile transfers, but due to the liquidity crunch, we have been forced to opt for the groceries.

    “We are not forcing anyone to take the groceries. Farmers can either take the groceries or wait for cash,”

    A horticulture expert and Arex officer, Mrs Mary Kafesu, urged farmers to study contracts carefully to avoid being duped by merchants.

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    Air Zimbabwe Set To Resume Domestic And Regional Flights

    Air Zimbabwe Set To Resume Domestic And Regional Flights

    Air Zimbabwe Set To Resume Domestic And Regional Flights

    National airline Air Zimbabwe is set to resume domestic flights from next Wednesday while regional flights are scheduled for October 3, as nations open up the skies for domestic and international travel.

    The announcement follows a Cabinet decision to resume domestic and international flights, although all passengers have to be tested for Covid-19 within 48 hours before traveling.

    Air Zimbabwe had suspended all flights late March due to the COVID-19 pandemic, except a few international ones to repatriate Zimbabweans and other nationals who had been stranded abroad.

    In the past few weeks, Zimbabwe has been relaxing COVID-19 regulations, including re-opening the tourism sector for which the airline industry is a major player.

    In a statement on Wednesday, Air Zimbabwe spokesperson Ms. Firstme Vitori said domestic routes to be serviced are Harare, Bulawayo, and Victoria Falls morning schedule, and Harare/ Victoria Falls/ Bulawayo/Harare evening schedule every Monday, Wednesday, and Friday, with flights between Zimbabwe and Tanzania initially operating every Tuesday and Saturday with an additional frequency expected towards the end of the year.

    Air Zimbabwe said it still awaits confirmation of the opening of South African airspace and airports.

    Air Zimbabwe added that it would publish guidelines issued by the ministry of health, the World Health Organization, and IATA for air travel from time to time.

    Presently, the guidelines include personal masking up, sanitizing, washing hands, temperature checks, as well as disinfection of aircraft before boarding and after passengers, have disembarked.

    The national guidelines for aviation safety and security were developed by the Civil Aviation Authority of Zimbabwe.

    You can read the full statement by Air Zimbabwe below:

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