Massmart has appointed Walmart Japan’s former interim president and Chief Executive Officer, Mitchell Slape as its new CEO, succeeding Guy Hayward who resigned in May.
While Massmart remains a dominant force – it controls almost 40% of the local market for household appliances – in the past year alone, its headline earnings declined 23%.
Last week, its share price tanked 10% – wiping out almost R2 billion in a morning – after warning that its earnings for the current six months will be at least 50% lower than last year. Sales growth at all of its retail stores are sluggish, and were below 4% for the first twenty weeks of its new financial year.
Increasing competition on price, particularly from rival retailer, Pick N Pay and the rise and rise of Takealot, has also contributed to its woes.
Game and Dion Wired seem to be a particular problem for Massmart. Their trading profit plummeted from R374 million to R33 million in the past year. In its latest trading update, however, sales appear to have slowed at Builders Warehouse.
Slape will begin from the first day of the month following the approval date, Massmart said in a statement.
Zimbabwe declares interim RTGS dollar sole legal tender
The RTGS dollar was introduced in February 2019 as a first step towards a new currency by the year’s end
Zimbabwe has adopted its interim currency as the country’s sole legal tender on Monday in a bid to stem black market demand for foreign currencies.
The RTGS dollar was introduced in February 2019 as a first step towards a new currency by the year’s end. This is a main part of President Emmerson Mnangagwa’s plan to stabilise an economy racked by inflation and widespread shortages.
According to the official statement, “the British pound, United States dollar, South African rand, Botswana pula, and any other foreign currency shall no longer be legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe”.
The latest variation of the domestic currency, the RTGS, has struggled to gain trust among large corporations and everyday Zimbabweans. Economic analysts fear 2009 may repeat itself with the interim currency.
Last week, the International Monetary Fund (IMF) requested that the central bank allows the RTGS to float freely so that exporters could sell dollars at the interbank rate rather than surrender them to the central bank
On the official interbank rate, the RTGS currency was pegged at 6.2 but on Monday, it traded between 11 and 12 against the dollar on the unofficial market.
But, Zimbabweans are complaining that goods and services are still being priced in other currencies. While more than 80% of Zimbabweans earn RTGS dollars, goods ranging from bricks to rentals, car parts and many groceries have their prices pegged in U.S. dollars.
Inflation has climbed to a decade high 97.86%, eroding salaries and savings and causing Zimbabweans to fear a return to the hyperinflation of 2008 when the rate reached 500 billion per cent.
Nigeria’s central bank will keep controversial FX system
Emefiele added that the bank also hopes to continue working with the Deposit Money Banks to improve access to credit
The Central Bank of Nigeria (CBN) has announced its plan for the next five years. The current governor of the bank, Godwin Emefiele stated the five main focal points of his second term to drive the Monetary Policy roadmap throughout 2019-2024 at the CBN Headquarters in Abuja.
In his words, “our priorities at the CBN over the next 5 years are the following; preserve domestic macro-economic and financial stability; foster the development of a robust payments system infrastructure that will increase access to finance for all Nigerians, thereby raising the financial inclusion rate in the country”, he says.
Emefiele added that the bank also hopes to continue working with the Deposit Money Banks to improve access to credit for not only smallholder farmers and MSMEs, but also consumer credit and mortgage facilities for bank customers.
“Our intervention support shall also be extended to our youth population who possess entrepreneurship skills in the creative industry. This group deserves our encouragement. We shall also during this intervening period encourage our Deposit Money Banks to direct more focus in supporting the Education Sector”.
In addition to these, there is also a need to grow the country’s external reserves and lastly, support efforts at diversifying the economy through the various intervention programs in the agriculture and manufacturing sectors.
The CBN Governor said he was confident that when implemented, the aforementioned measures will help to insulate the economy from potential shocks in the global economy.
“In my second term in office, part of my pledge is to work to the best of my abilities in fulfilling these objectives,” he adds.
Emefiele was first appointed by former President Goodluck Jonathan in 2014 and was retained after Buhari assumed office in 2015.
On May 8, President Muhmmdu Buhari informed the Senate in a statement that he had decided to nominate the CBN governor for a second term.
West Africa Crude-Nigerian OSPs boost seller confidence
In Angola, around half a dozen cargoes remain for July loading, while the preliminary programme for August added another 45 cargoes
Nigeria has increased its official selling price (OSP) for major crude grades on perked-up demand. Nigeria’s National Petroleum Corporation significantly raised the July OSP for major grades, Bonny Light 156 cents per barrel last month, to 204 cents and Qua Iboe, from 171 cents per barrel, to 215 cents.
The move shows the new confidence in Nigerian barrels of oil has been selling to Europe in June, due to shortfalls hitting competing North Sea fields. But at least, 20 cargoes remain for July loading, as preliminary August programmes were awaited imminently.
In Angola, around half a dozen cargoes remain for July loading, while the preliminary programme for August added another 45 cargoes.
China’s Unipec is still offering West African cargoes on the Platts Window after doing so for several grades last month, partly to attract market attention due to slow demand and also to offload unwanted crude.
Asian refining margins for 10 parts per million (ppm) gasoil, a key middle distillate refined from heavier Angolan barrels, slipped on Friday as crude prices rose, a sign that Asian demand for heavier West African (WAF) crude may remain sluggish in the interim.
Finalization of state oil company, Sonangol’s term allocations was expected, with sellers keen to see price markdowns for later selling of July cargoes to be continued into August. But as China draws down stocks of Iranian crude it bought in bulk in April ahead of U.S. sanctions, traders say Angola might be sought after especially as new commercial tanks are expected to come online very soon.
DR Congo military kills 16 militiamen in northeastern region
Egyptian authorities detain 8 accused of funding plot to ‘overthrow the state’
Africa in 60 – June 25, 2019
The brain behind West Africa’s premier smart card manufacturers
Zuma’s lawyer says he will attend ‘prejudiced’ graft inquiry
Nigerian musician, Alex Boyé drops two new singles
How unhealthy development will cost generations in Nigeria
Buhari sworn in as Nigeria’s president for second term
Will Nigeria’s economy gather momentum during the second half of 2019?
Zimbabwe’s latest marriage amendment bill
Lifestyle News & Gists5 months ago
Five killed in South Africa coal mine blast, others trapped
Feature Stories & News1 month ago
Egypt’s new Ramadan series-streaming app scrutinised by critics
Op-Ed5 months ago
What are the critical issues facing Africa in 2019?
Top Story5 months ago
Spotting fake news: Which is the real video of VP Osinbajo’s chopper incident?
Op-Ed5 months ago
What Brexit means for Africa
Culture & Tourism6 months ago
The market in Togo where money doesn’t change hands
Top Story2 months ago
Boat capsize: DR Congo declares national mourning over 13 dead, 114 missing
Politics5 months ago
No pay, no news. Guinea Bissau’s journalists go on strike