Africa Sun declares dividends

Michael Tome

Zimbabwe Stock Exchange-listed hospitality concern, African Sun Limited, has announced a ZWL0.01 (1 cent) dividend per share for it’s shareholders.

This comes in the wake of a tough 2019 economic environment, which resultantly led a substantial number of listed companies not to declare dividends to their respective shareholders.

2019 saw Government and the central bank institute a number of fiscal and monetary reforms, which were all intended to tweak the macro-economic landscape meant to stabilise the economy in the long run.

Also, multi-currency system was abolished as the Government was determined to re-establish the Zimbabwean dollar (ZWL) as the sole legal tender.

In 2018, the Government had instructed the separation of local bank accounts into domestic and Nostro accounts, subsequently introducing 2 percent intermediary monetary tax on all transactions.

All these policies had a considerable impact on the country’s business environment.

In a notice the African Sun said: “The Board of Directors of African Sun Limited declared an interim dividend of ZWL0.01 (1 cent) per share payable in respect of all ordinary shares of the company.

“This dividend is payable out of the 2019 financial year profits to all shareholders of the company registered at close of business on 20 February 2020.

“The payment of this dividend will take place on or about 28 February, 2020.”

Late last year the Zimbabwe Stock Exchange-listed hospitality concern announced that it was embarking on an intensive refurbishment of most of its hotels countrywide at a cost of US$25 million in a move likely to boost occupancy levels.

On the other hand the 2018 /19 summer cropping season recorded poor rains, extensively affecting the output of agriculture (mainstay of Zimbabwe’s economy).

Dam water levels critical for power generation dwindled leading to unrestrained power cuts adversely affecting key productive sectors.

Ravaging Cyclone Idai hit South Eastern parts of the country adding to an unfortunate economic environment in 2019.