VenturesNow

Zimbabwe looks to private companies to increase rail freight volumes

Published

1 week ago

September 6, 2024

To increase freight volumes that had fallen as a result of decades of underinvestment, Zimbabwe’s state-owned railway operator has opened up its network to private operators, including a division of South Africa’s Grindrod, an official said.

At its height in the 1990s, Zimbabwe’s National Railways handled 12 million tonnes of cargo annually; today, however, due to a shortage of locomotives and inadequate maintenance of its rail system, it handles less than 3 million tonnes.

In addition, the collapse came after a precipitous fall in mineral and agricultural production brought on by the violent takeover of white-owned farms in 2000, which was supported by Robert Mugabe, the former leader of Zimbabwe.

Nonetheless, China’s desire for lithium and chrome is the primary driver of the recovery in mineral output.

Recent years have seen the establishment of iron ore, steel, chrome, and lithium enterprises in Zimbabwe by Chinese corporations including Tsingshan Holdings, Sinosteel, Sinomine, Zhejiang Huayou Cobalt, and Chengxin Lithium.

Through Mozambique’s ports, they export minerals to China, and the NRZ’s present capability isn’t keeping up with the expanding volume of commodities being exported. With the help of private businesses, the state-owned organisation is currently trying to increase its capacity.

“Last year we uplifted 2.8 million tons against the available business of 3 million tons,” NRZ spokesperson Andrew Kunambura told Reuters in an interview on Wednesday.

“So these private companies are coming in with their locomotives and wagons to augment what we have.”

As part of the agreement, Grindrod has deployed three locomotives and 150 waggons through its Zimbabwean subsidiary, Beitbridge Bulawayo Railway, since March.

The logistics company based in South Africa is preparing for goods train partnerships in the region as underfunded state-owned operators allow private players to access its deteriorating networks.

The mineral-rich country is seeing an increase in new mining operations that need more rail capacity. It also contains some of the largest resources of copper and lithium in the world, which are needed for renewable energy.

To capitalise on the growing market potential in the area, Grindrod has reorganised its rail division, CEO Xolani Mbambo informed analysts last week. The DRC’s inland railway business and Transnet, a South African corporation that also intends to open up its network to private operators, are potential partners for the company. Recently, the company reached an agreement to cooperate with Transnet.

VenturesNow

Malawi’s tobacco sales rise 40% despite drought

Published

21 hours ago

September 15, 2024

Ifeoluwa Dada

Malawi’s industry regulator reported on Saturday that tobacco sales, its main export, rose 40% in 2024 despite an El Nino-induced drought.

The Malawi Tobacco Commission (TC) reported a 10% sales growth for the April–August season. Malawi produces some of the most burley tobacco.

The TC reported $396.28 million in leaf sales in its final season report, up from $283.76 the year before. Volumes rose from 120.5 million to 133.1 million kilogrammes.

“This represents a substantial surge. The increase in sales volume, revenue and the average price per kilogram indicates a strong and positive performance compared to the previous year,” the TC said.

The drought devastated Malawi’s agricultural output, especially maize, but the tobacco crop survived, allowing the country to profit from worldwide demand.

“Global demand is high due to consecutive calamitous weather impacts in major producing countries,” said Limbani Kakhome, a spokesperson for Japan Tobacco Leaf, one of the commodity’s top buying companies in Malawi.

VenturesNow

Nigeria’s central bank issues deadline to PoS operators for use of aggregators

Published

2 days ago

September 14, 2024

Ifeoluwa Dada

All point-of-sale operators are required by the Central Bank of Nigeria to route transactions through authorised payment terminal service aggregators. The steps were taken to improve the nation’s electronic transaction tracking and management, according to a circular that was issued by the CBN.

“As part of efforts to mitigate the concerns regarding channelling all Point of Sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited.

“In furtherance of the above, the CBN with this directs as follows: 1 Acquirers are henceforth required to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN,” the apex bank noted.

It was mentioned that a PTSA licence was given to Nigeria Interbank Settlement System Plc in 2011 so that it could manage the aggregate of PoS transactions.

Earlier this year in April, Unified Payment Services Limited was awarded a second PTSA licence by the CBN in response to concerns regarding the routing of all transactions through a single aggregator.

“To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria in August 2011, granted a Payment Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc. As part of efforts to mitigate the concerns regarding channelling all Point of Sale transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited.”

All acquirers—the organisations in charge of handling payments from PoS terminals—must route transactions through one of the two authorised aggregators, under the directive of the CBN.

To provide acquirers with the freedom to select their preferred service providers, licensed processors must also connect with both PTSAs.

It was mentioned that payment terminal service providers, who are in charge of setting up and maintaining PoS terminals, have to make sure their hardware and software are set up to function with any PTSA that the acquirers select.

The CBN states that PTSPs must also provide monthly reports to the CBN that include information on the number of agents and merchants they oversee, as well as the PTSA services that are utilised.

In a similar vein, all PTSAs are required by CBN to submit monthly reports detailing all transactions that are conducted through their systems.

The director of the Payments System Management Department must receive the reports, per the apex bank, within seven days of the end of each month.

The CBN had threatened to take necessary action if any PSPs did not regularise their operations with the PTSAs within 30 days after issuing the instruction.

Recall that on July 7, the Corporate Affairs Commission declared that all Point of Sale providers in the nation needed to register with them by September 5 at the latest.