africa watch

Africa is fully endowed with resources but what is still disheartening is the situation that it has still the most poorest economies in the world. I think the time has now arrived that we need to take a view of the causes of such a trail as Africans and come up with our own African solution to the situation. First of all it is better for us to understand the difference between the economy and politics. It is clearly notable that the economies of almost all African countries are in the hands of the ruling governments hence the risks of poor steward ship.The best move here which can left us as a continent in a better position is by forming African centered organizations which can come up with different positive views which can help us form a road map to the trimphuant. One issue the panel should take into consideration is the readjustment of the AFRICA DVT BANK so that the bank can be able to issue a currency which will find its way to circulate in all counties providing borrowing by different governments. Since dollarization is not only about adopting the US dollar but any other currency i think Africa should dollarize without disallowing member countries to use their own currencies to provide room for localized adjustments of the monetary policy. Africa has a lot to learn from the European union in order

sisco finance: financial innovation

sisco finance: financial innovation

financial innovation

 It is high time that we should spare a thought for our ailing economy.
It has been cited that there is need for fresh capital in order for our economy to be viable.
While it is true, it is also undeniable that Zimbabwe needs not only financial injection but also financial innovation.
Seeking for funds is not about sitting and yelling for help, but is all about revolutionarising our financial markets and coming up with new products which can then  attract investors.
This can be achieved through restructuring our financial markets and developing new systems of transferring high risk investments into low risk investment through repackaging and over collaterisation and the development of new investment vehicles for instance of high yield mutual funds.
Therefore boosting the competiveness of our local financial market which is currently running on an informal platform by a certain factor of transformation will attract global players and will automatically mark the end of the crisis.

Francis Chinjekure

savings and the economy

Saving is an important activity in every economy and it entails the ability of citizens or corporates to save their excess money with the banking system which can then pool those funds which can later be borrowed by investors at an interest hence earning an income. Savers can also benefit from that investment by earning an interest based on the investments made.Mutual Funds, Unit Trusts and Commercial Banks acts as the intermediaries or custodians of the funds and make loans which they can offer to the public, government institutions and companies. This will bring us to a new conception of financial markets entailing the platform where the trade of notes, stocks and bonds actually takes place. Different products can then be tailor made to suit the existing or future markets.These products are the ones which will give a clear distinction of the financial markets based on their tenure, interest rate and whether they are being traded for the first time or not. Financial assets can take the form of Treasury bonds, Treasury bills, bankers acceptances, negotiable certificates of deposit, commercial paper, REPO agreements and general loans. From these assets there can be derived other forms of tradable assets which are called financial derivatives for example forwards, futures, swaps and options. This information and all other kinds of information prevailling in the market need to be taken in to consideration for the best of decision making for example the government can cut income tax there by improving disposable incomes and savings, by borrowing from the financial institutions in form of bonds the government can also bring hope to the sector and improve efficience

financial markets

A financial market is a market where the trade of newly and already existing  financial assets takes place. They act as a mechanism which bring buyers and sellers of financial assets together. There are several types of financial markets which are money markets, commodity markets, derivatives markets, exchange rate markets and capital markets. In money markets securities which takes a life of one year or less are traded whilst those which have a greater life which exceeds one year upto thirty years are traded. Bonds, notes and stocks are the most common assets traded. The capital market can also be called a bond/stock market.  Derivatives markets encompass the trade of assets which derive their existence from other assets such as forwards, futures, swaps and options. Markets are also defined upon whether they have a central location or they can take place anywhere (not organized), organized markets take the form of stock exchanges such as the New York Stock Exchange(NYSE) and the Zimbabwe Stock Exchange(ZSE).Over The Counter markets are actually informal markets such as the National Association of Securities Dealers Automated Quotation(NASDAQ). The exchange rate market entails the trade of currencies between two countries to facilitate trade of goods, manpower and ideas between those countries.These kind of markets are further divided into secondary and primary markets. In the primary market there takes place the trade of newly issued assets which are for the first time finding their way into the markets and subsequently the secondary markets accommodates already existing stocks which are being traded for the second time or more than that. When dealing in these kinds of markets it is better that you first establish a better understanding of the risks involved. It i also advised to get the upto date information about all the variables characterising the markets so that it will be possible to manage a portfolio of assets.