The Standard 8 June 2014

Business
The Standard June 8 to 14 2014 19
NSSA to proceed with microfinance plans
BY NDAMU SANDU
THE National Social
Security Authority
(NSSA) will proceed to
set up a microfinance
bank notwithstanding
the cancellation of an operating
licence of its banking subsidiary,
a spokesperson has said.
Last week the Reserve Bank of
Zimbabwe (RBZ) announced the
cancellation of Capital Bank’s
operating licence on the grounds
that its major shareholder, NSSA,
was no longer willing to inject additional
capital into the institution.
NSSA has 84% in Capital and
the remainder is owned by Patterson
Timba and his partners.
“NSSA is working with its parent
ministry, the Ministry of Public
Service, Labour and Social
Welfare, and the Reserve Bank of
Zimbabwe to obtain the necessary
regulatory approval,” the spokesperson
said.
The spokesperson said appropriate
notices would be issued in
due course concerning payments
to depositors and other creditors
as per RBZ notice on the cancellation
of Capital Bank’s licence.
The move to surrender the licence
comes after the realisation
that Capital Bank needed huge
capital outlay and had failed to
turn around since NSSA moved in.
A NSSA board resolution called
for the winding up of Capital
Bank and the authority was mandated
to apply for a microfinance
bank licence.
Despite the rebranding exercise,
Capital Bank had failed to gain
market acceptance from its predecessor,
ReNaissance Merchant
Bank (RMB) that had slipped into
curatorship.
RMB was placed under curatorship
in 2011 after an investigation
by the central bank unearthed
the abuse of depositors’ fund by
founding shareholders.
NSSA moved into the then RMB
in 2012 in a US$24 million deal for
84% shareholding.
NSSA said at the time it was
swooping in on RMB as a gateway
to First Mutual Holdings Limited
(formerly Afre Corporation). RMB
had 33% shareholding in Afre.
“What we have lost in Capital
Bank, we have more than gained
in Afre. Our intention was never
in the bank, but Afre,” a board
member said last year.
First Mutual Holdings has interests
in insurance, reinsurance
and property investments, among
others.
Meanwhile, NSSA has gone for
nine months with a board following
the expiry of the term of office
of the one led by Innocent Chagonda
at the end of August last year.
Chagonda was deputised by David
Mutambara. Other members of
the board were Kennias Shamuyarira,
Cecilia Alexander, Chris
Hokonya, James Matiza (general
manager), Rosa Dube, Joseph
Kanyekanye, David Govere, Ephanos
Makiwa and M. Mukondami.
NSSA has interest in banks, insurance
and properties. It has
26,6% in FBC Holdings, the parent
company of FBC Bank, 37,9%
shareholding in ZB Financial
Holdings that wholly owns FBC
Bank and 10% in CBZ Holdings.
The authority also has a controlling
shareholding in hospitality
concern, Rainbow Tourism
Group.
James Matiza
Finance
costs weigh
down
Ariston
BY VICTORIA MTOMBA
ARISTON Holdings Limited’s profit after tax
declined by more than half to US$984 353 in
the six months ending March 31 2014 due to a
48% jump in finance costs.
In the same period last year, the company
posted a profit after tax of US$2 million.
In a statement accompanying the group’s
results, Ariston said the borrowings for the
group increased to US$14,1 million as a result
of the rehabilitation programmes that
the company undertook.
Revenue for the group went up by 29% to
US$8,6 million in the period under review.
During the six-month period, Claremont
Estate turnover of US$849 000 was 10% of
group turnover, an increase of 12% compared
to March 2013. An operating loss of
US$606 000 was reported up from the US$365
000 operating loss recorded in the same period
last year.
Kent Estates recorded an increase of 98%
in turnover to US$631 000 compared to the
previous period and contributed 7% to the
group’s turnover. South Down reported a
turnover of US$4,1 million representing
a 48% of group turnover. South Down recorded
an operating loss of US$300 000 compared
to US$90 000 loss during the same period
last year.
The group said the macadamia harvest
was slightly delayed by the persistent rains.
But despite the late start production was in
line with last year.
“Early season sales have started with firmer
prices than last year. Despite the erratic
power supplies, tea production was 40% up
last year. This trend is expected to continue
into the second half of the year and we expect
forecast production for the season.”
“With half the export teas still to sell, we
expect a modest recovery in international
tea prices in the second half of the year.
Traditionally winter accounts for the bulk of
blended tea sales,” the group said.
The group said restructuring at Favco was
complete and the combination of cost management
and improved marketing of the estates’
produce was now producing acceptable
performance.
“Favco turnover was US$2,996 million and
contributed 35% to group turnover. An operating
profit of US$0,049 million was recorded
compared to a loss of US$0,265 million in
March 2013,” the group said.