Zim Economy: GMB Commissions massive plant, Hwange ash plant upgrade, Stock Exchange Growth (provided the political situation remains conducive)

GMB to Commission $30 Mln Stock-feed Plant

The Grain Marketing Board will soon commission a $30 mln stock-feed plant to expand its revenue base in terms of an ongoing commercialisation programme.

GMB corporate communications officer Joseph Katete yesterday said the parastatal would commission the plant in November as it embraces entrepreneurial initiatives to ensure food security and income generation - Herald, Tuesday August 27

Indian Firm Wins Hwange Tender

Indian firm Indure (Private) Limited has won a tender to rehabilitate and upgrade the ash plant at the Hwange Thermal Power Station at cost of about $11 mln. The exercise is being financed by the Zimbabwe Multi-Donor Trust Management Unit, a group of donors established to help Zimbabwe's infrastructure recovery. It is administered by the African Development Bank.

Indure won the contract ahead of Macawber Beekay of India and Hamon J&C Engineering of South Africa - Herald, Tuesday August 27

ZSE to Reach $6,2bn Mark By 2014

THE Zimbabwe Stock Exchange is forecast to reach the $6,2 billion mark in terms of market capitalisation by 2014, provided there is sustained economic development and greater fiscal prudence, a local advisory and securitiesfirm has projected.

FBC Securities, in a report titled Zimbabwe - post-election synopsis, said with a stable government in place, sustained economic development was a distinct possibility and was forecasting a target market capitalisation of $6,2 billion next year - implying an upside potential of 27% on current levels.

The local bourse exhibited a bullish streak in the first half of the year due to sustained movement in heavily capitalised counters. As a result, market capitalisation for the period breached the $5 billion point mark recorded at $5,4 billion which the securities firm said reflected improved market sentiment in the first half of the year.

FBC Securities, however, said there were downside risks largely beholden to the empowerment and indigenisation thrust, with the major concern being an
essential side-way movement of major indices in the post-election era.

"Post-election trading saw the mainstream industrial index coming off a significant 18% from 232,87 points by end of July 31 to 191,11 points as at
August 14 2013, amid political uncertainty in the wake of mixed reactions from varying political fronts and other external bodies," part of the report

FBC Securities said the stock market losses in the post-election period are perception-driven despite immaterial changes in the core macroeconomic
fundamentals. The firm, however, said with a stable government in place, sustained economic development was a distinct possibility.

"We anticipate a period of stable governance and strong growth in Zimbabwe, following the elimination of political quagmires within the inclusive government, through elections," the securities firm said. - Southern Eye 27 August 2013