Zimbabwe economy: Zisco steel, budget cash surplus



ZISCO sale


Zimbabwe Iron and Steel Company (Zisco) has reportedly been sold to The Mauritius-based Essar Energy Holdings.

And, in a new twist, it is reported that the Government intends to sell an additional 9% in the integrated steel maker to bring the total stake that it is offloading to 60%.

The deal could result in a $355 mln capital injection to revive the steel giant.

51% stake will go to Essar Energy Holdings.

It was not immediately clear who would acquire the other 9% but reports point to a consortium led by Renaissance chief Executive Patterson Timba and Econet Wireless founder Strive Masiyiwa – Herald,

Zimbabwe budget cash surplus


Zimbabwe’s budget is expected to generate a cash surplus in 2010, supported by efforts to strengthen policies, the International Monetary Fund said.

“Governance at the Reserve Bank of Zimbabwe is improving, and the government is working toward strengthening the business climate,” Vitaliy Kramarenko, the fund’s mission chief to Zimbabwe said in a statement published on the IMF’s website following the group’s visit to the capital, Harare, from Oct. 25 to Nov. 3.

“Higher gold and platinum prices boosted exports and government revenues, a significant appreciation of the rand has eased competitiveness pressures, and favorable weather conditions have contributed to higher agricultural output.”

The mission recommended Zimbabwe contain its cash budget spending to $2.5 billion in 2011, saying that under its current assumptions for commodity prices, the budget will be broadly balanced in 2011.

Zimbabwe mining output


Asset managers Imara have said gold output is set to increase from 4 966 tonnes in 2009 to 7 724 tonnes in 2010 as a result of the reopening of a number of mines.

Imara said the mining sector had evolved significantly from the period of hyperinflation and foreign currency shortages.

In the last 20 months, mining has become a critical pillar in the Zimbabwe economy, creating jobs, earning foreign currency and helping the diversification of the country’s economic base through beneficiation projects.

Production of coal is expected to increase from 1,7 million tonnes in 2009 to about2,4 million tonnes in 2010, owing to an improved macroeconomic environment. - NewsDay