The numbers that shaped 2023

While the “sin tax” had been traditionally reserved for tobacco and alcohol, the Treasury chief Mthuli Ncube expanded that to sugar, introducing a levy of US$0,02 per gramme of sugar contained in beverages
Numbers have life; they are not just symbols on paper, said Shakuntala Devi, the highly regarded Indian mental calculator who is known as “Human Computer”. NewDay Business distils some of the key numbers that shaped 2023.

US$0,02

While the “sin tax” had been traditionally reserved for tobacco and alcohol, the Treasury chief Mthuli Ncube expanded that to sugar, introducing a levy of US$0,02 per gramme of sugar contained in beverages, excluding water, with effect from January 1.

Ncube said the consumption of high sugar content beverages was linked to increased risk of non-communicable diseases, adding that other Sadc countries had also introduced the same tax head. Despite protests, Ncube has not relented.

The wealth tax was initially imposed on house owners with properties worth over US$100 000. This excludes those over 70 years. This was later revised to properties worth over US$250 000 after an outcry from citizens.

ZWL$13 billion

This is the value of unclaimed shares due to an absence of a know-your-customer. The shares are earning dividends and the capital markets regulator, the Securities Exchange Commission of Zimbabwe, is working round the clock to “ensure that investors are reconciled with their wealth”.

This is the additional allocation given to Parliament in the 2024 national budget to meet the needs of lawmakers. This brings the total vote to ZWL$700 billion. This came after lawmakers said they wanted to be given Toyota Land Cruiser vehicles and that their spouses should be booked in hotels each time the lawmakers are attending Parliament business. The hapless taxpayer will foot the bill.

5,5%

The projected growth of the economy this year, up from 5,3% that had been earlier projected due to better-than-expected output in agriculture, in particular, tobacco, wheat and cotton.

The economy will slow down next year and is projected to grow by 3,5% due to the anticipated impact of the El Niño phenomenon being forecasted for the 2023/24 summer cropping season and declining mineral prices on the international market arising from a global slowdown.

ZWL$110 trillion

The total bids by ministries, departments and agencies in the 2024 national budget against the available envelope of ZWL$58,2 trillion.

15%

The minimum corporate income tax multinationals are supposed to pay with effect from January 1 under the Global Anti-Base Erosion (GloBE) rules. This was announced in the 2024 national budget presented last month.

Under the GloBE rules, where a tax incentive results in an effective rate of less than 15%, another tax jurisdiction, usually where the multinational is headquartered, will collect the difference between the effective tax under the tax incentive and the minimum effective rate of 15% (the top-up tax).

5 delistings

The number of companies that delisted from the Zimbabwe Stock Exchange (ZSE) and migrated to the Victoria Falls Stock Exchange (VFEX) lured by incentives. These are Innscor Africa Limited, Axia Corporation, African Sun Limited, First Capital Bank and Zimplow. Incentives offered on the VFEX include lower trading costs, allowing shareholders to retain more of their capital and potentially stimulating the liquidity of Innscor shares.

The VFEX trading costs are 2,12%, lower than the 4,63% prevailing on the ZSE. Foreign shareholders have a 5% withholding tax on dividends compared to a withholding tax of 10% for non-resident shareholders on the ZSE.

20

The number of companies transferred to the Mutapa Investment Fund, a sovereign wealth fund to be superintended by the Finance, Economic Development and Investment Promotion ministry.

John Mangudya will become the inaugural CEO of the Mutapa Investment Fund when his term as Reserve Bank of Zimbabwe governor ends in April. Business executive Chipo Mutasa chairs the Mutapa Investment Fund board.

6 CEOs that left their positions

CBZ Holdings announced the departure of CEO Blessing Mudavanhu as the group moves to merge its operations with ZB Holdings Limited.

Mudavanhu has been at the helm for five years. Lawrence Nyazema has been appointed acting group CEO.

In February, Turnall announced the departure of MD Zvidzayi Bikwa to “pursue personal interest” as the majority shareholder, Zimbabwean Brands, flexed muscles. John Mkushi was forced to step down as board chairperson to become the acting MD. He was confirmed as substantive MD in April.

PPC announced last month that MD Kelibone Masiye is leaving the company at the end of December after 29 years with the cement manufacturer. He has been MD for the past seven years. Masiye will be replaced by Albert Sigei, whose reign begins on January 1.

Ciaran McSharry stepped down as First Capital Bank MD in September. He was replaced by Tapera Mushoriwa who began his tenure on September 18.

John Mushayavanhu is leaving his position as FBC Holdings group CEO at the end of the month after his appointment as Reserve Bank of Zimbabwe governor. His tenure at the central bank begins on May 1. Another FBC veteran Trynos Kufazvinei will be Mushayavanhu’s successor.

In October, Edgars said its CEO Tjeludo Ndlovu was leaving the company after three years at the helm. She was replaced by Sevious Mushosho.-newsday