Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.

1. BH24 Reporter
HARARE – The Zimbabwe
Stock Exchange’s official
list has just dwindled to 62
listed firms after the bourse
announced today the scratching
of Pelhams and Radar Holdings
from the list.
Earlier this month, the ZSE also
removed Phoenix Consolidated
from its official list.
ZSE chief executive officer
Alban Chirume said the bourse’s
hand had been forced by Pel-
hams’ failure to hold Annual
General Meetings and publish
audited financial statements for
2014 and 2015.
It also failed to settle its listing
fees arrears for 2014 and 2015.
Pelhams applied for voluntary
suspension on November 26,
2015 following its placement
under Provisional Liquidation on
November 18, 2015.
And trading in Pelhams’ shares
on the ZSE was suspended
December 10, 2015.
“Pursuant to paragraph 1.8 (a)
of the ZSE Listings Require-
ments, Pelhams was obliged to
continue to meet its continuing
obligations during the suspen-
sion period. Pelhams failed to
hold Annual General Meetings
and publish audited financial
statements for 2014 and 2015.
Pelhams also failed to publish
quarterly updates as required
and is yet to settle its listing
fees arrears for the aforemen-
tioned years.
“The ZSE initiated the termina-
tion of listing of Pelhams on the
basis of the issuer’s non-com-
pliance with the ZSE’s Listings
Requirements. Pelhams acceded
to the ZSE’s resolution to final-
ise the termination process,”
said Mr Chirume in a notice this
morning.
In the same notice, the ZSE
also said Radar Holdings will be
removed from the ZSE official
list with effect from today.
Radar applied for voluntary
termination on 6 October 2015
pursuant to paragraph 1.7 of
the ZSE Listings Requirements.
Radar minority shareholders
approved the termination of
listing in an Extraordinary
News Update as @ 1530 hours, Friday 29 April 2016
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ZSE official list dwindles to 62

2. General Meeting held on 25
February 2016
“Approval was received for
the termination of Radar’s
listing from the Securities
and Exchange Commission of
Zimbabwe, pursuant to Section
64 (a) (i) of the Securities and
Exchange Act [Cap24.25],” said
ZSE.
The market has seen its fair
share of new listings and
de-listings. From last year to
date, the ZSE witnessed three
new entrances namely Get-
Bucks, Proplastics and Simbisa.
The latter two listed by way
of introduction as they were
results of dividends in specie by
their former parent companies
Masimba and Innscor, respec-
tively.
Besides the above-men-
tioned,there were also some
de-listings as a result of offers
by majority shareholders to
minorities in ABCH and Astra.●
2 news
Zambian president commends Zim products
BH24 Reporter
HARARE - Zimbabwean products
shone during the Agritech Expo
in Zambia recently, with Zambian
president Edgar Lungu com-
mending Zimbabwean firms for
their local products, ZimTrade
has said.
“During his tour of the Zimba-
bwean Pavilion, the Zambian
president applauded Zimbabwe
for supporting regional trade
through participating in shows
such as the Agritech Expo.
“He further commended Zimba-
bwean companies for adapting
their products, which included
tractor-drawn farming imple-
ments, agricultural inputs and
irrigation equipment, to the
specific needs of small-scale
farmers,” said ZimTrade in a
statement following its participa-
tion at the expo.
According to Trade Map, Zambia
imported agricultural equipment
worth $15, 3 million in 2015,
with the main supplying markets
being South Africa (45 percent),
Brazil (9 percent) and China (8
percent).
However, Zimbabwe’s contri-
bution was 3 percent and this
presents a huge potential for
local companies to increase
exports to Zambia as they enjoy
distance advantage over other
competitors. Zimbabwean
companies, who were facilitated
by ZimTrade to participate at the
Expo, expressed optimism on
prospects of making in-roads in
the Zambian market.
Arthur Garden Engineering mar-
keting manager Mr Itayi Kureya
thanked ZimTrade for the role it
is playing in assisting local com-
panies to promote their products
through participation in special-
ised exhibitions.
“Through the expo, we managed
to establish contacts and gain
useful information that will help
us to develop and grow our busi-
ness,” he said..●

3. BH243

4. BH24
TAA:DI251386-Y22
4

5. By Funny Hudzerema
HARARE -The new transfer
pricing tax regulations prom-
ulgated by Government are
going to provide guidance on
how cross border transactions
will be viewed by revenue
authorities and improve their
tax payment, a tax advisor has
said.
Zimbabwe enacted new legis-
lation on transfer pricing that
took effect on January 1, 2016
and its provisions augment
the current anti-tax avoidance
sections of the Income Tax
Act.
The new rules govern domestic
transactions between associ-
ates as well as transactions
with foreign entities.
Ernst and Young business and
tax advisory executive director
Mr Rameck Masaire said the
new pricing regulation will go
a long way in assisting both
tax authorities and business
people to manage their taxes.
“The new tax regulations will
provide guidance clarity on
how cross border transactions
will be viewed by the revenue
authority. In terms of taxes
that are paid locally they are
not losing out they are not
missing transactions.
“Government also wants
to make it clear that when
cross border transactions are
entered into people are clear
on what they are supposed to
do,” he said.
He was speaking at a stake-
holders seminar organised by
Ernst and Young on the issue
of the new transfer pricing
legislation.
“Even when business organi-
sations are entering into busi-
ness strategies they need to
be clear on the issues of cross
boarder in terms of taxes and
how they will deal with the
revenue authorities.
“Business authorities should
start looking at the regula-
tions and come up with clear
producers as entities to make
sure that they are ready when
revenue authorities come with
business,” he said.
He added that new legisla-
tion is a specific rule that the
revenue authority will use in
verifying the pricing of goods
and services between parties
concerned.
The legislation will allow the
Zimbabwe Revenue Authority
(ZIMRA) to be able to adjust
transactions which are not in
line with the arm’s length prin-
ciple, and might create a tax
liability for taxpayers.
The new legislation applies to
international and local trans-
actions between connected
persons.
The transfer pricing rules are
aligned with the guidelines of
the Organisation for Economic
Co-operation and Develop-
ment and the United Nations
Manual.●
New transfer pricing tax regulations to improve tax payment
5 news

6. BH246

7. BH247

8. HARARE-A high powered delega-
tion from Russia led by Industry
and Trade Minister Denis Manturov
is in the country today for the sec-
ond session of the Zimbabwe-Rus-
sia Intergovernmental Commission
meeting.
The first session of the Zimba-
bwe-Russia Intergovernmental
Commission on Economic, Trade,
Scientific and Technical Coop-
eration was held in Harare last
September.
In a statement, the Ministry of
Foreign Affairs said the delegation
from the Russian Federation would
attend the on–going Zimbabwe
International Trade Fair in Bula-
wayo.
“Honorable Manturov is expected
to arrive in the country on 29 April
2016 in Bulawayo in the morn-
ing. He will attend the Zimbabwe
International Trade Fair where
the Russian Federation is also
exhibiting. He will travel to Harare
in the evening of the 29th of April,”
it said.
Senior officials from the two
countries started meeting on April
28 this year in preparation for the
joint commission.
“The senior officials are prepar-
ing for the Intergovernmental
Commission meeting by reviewing
the status of implementation of
the agreements the two countries
signed in September 2014.
“They would also propose meas-
ures to increase momentum in
the implementation of projects
that may be lagging behind, and
identify possible new areas of
cooperation,” said Foreign Affairs.
The Ministry said the Commission
expected to build on the excellent
bilateral political relations between
the two countries and co-operation
in a number of areas, including
trade and investment, mining,
energy, home affairs, tourism and
higher education.
At last year’s meeting, Russia
expressed its commitment to
assist Zimbabwe navigate her
economic recovery efforts through
increased investment in various
sectors of the economy.
Russia’s interest in investing in
Zimbabwe follows that of China
which has already started imple-
menting various infrastructural
projects and has signed numerous
agreements to invest in different
sectors of Zimbabwe’s economy
including energy, mining and the
telecommunications sector.
A member of BRICS grouping of
emerging economies in the world
which includes Brazil, China, India
and South Africa, Russia will be
implementing a $1 billion platinum
mining project in Darwendale
through a joint venture partner-
ship between investors from that
country that include VPB Bank
and Rustec, and the Zimbabwe
Mining Development Corporation.
Russia, the sixth largest economy
in the world, has in recent years
increased its mining interests in
Zimbabwe where it is already
exploiting gold and diamonds.
.- New Ziana.●
8 news
Russian delegation jets in for second Joint Commission

9. BH249

10. BH2410

11. BH24 Reporter
HARARE -The Zimbabwe
Revenue Authority may frus-
trate efforts to formalise the
informal sector if the taxman
continues to demand high
taxes on newly registered
entities, a Cabinet Minister
has said.
Small, Medium and Co-oper-
ative Development Minister
Stembiso Nyoni said Gov-
ernment should procure 25
percent of its supplies from
SMEs to support growth of
the sector, which now employ
and sustain the majority of
people in the country,.
However, the minister
stressed the need to ensure
that the SME’s sector, which
is predominantly made up of
unregistered entities, formal-
ize since Government cannot
contract informal entities.
Addressing delegates to
the annual business confer-
ence of the 57th edition of
the Zimbabwe International
Trade Fair this week, she
said 70 percent to 75 percent
of the SMEs were not regis-
tered.
The Minister said that the
revenue collector must not
hound SMEs that come for-
ward to be registered and
drive them back into hiding,
as it has recently pounced on
the ones that had formalized.
She said in one instance the
tax collector had instantly
demanded $154 000 from
newly registered SMEs in
Gweru, which was eventu-
ally whittled down to $50
000 after some protracted
discussion.
“Zimra need to accompany
and make sure they do not
go back, SMEs said that
once they formalised, Zimra
pounces,” she said.
“They say what is this, if
formalisation means this it is
we have to hide?”
She said the SMEs must be
the ultimate beneficiaries of
the formalization initiative
and should be given recog-
nition as participants in and
part of inclusive process
towards economic growth.
Minister Nyoni challenged
established corporates to
take a cue from what food
processor Cairns Holdings
is doing to support SMEs by
organizing them and con-
tracting small farmers for
raw materials.
Further, the minister said
supporting growth of the
SMEs, was President Mug-
abe’s vision, which he
supported by dedicating a
fully-fledged ministry led by
a Cabinet minister to pro-
mote the SMEs.
As such, she said the for-
malization of the informal
sector to grow SMEs was a
collective effort, which must
see all stakeholders working
hand in glove to foster devel-
opment of the entities.
The minister said the Minis-
try of Local Government and
Urban Development should
facilitate growth of SMEs by
proving workspace to enable
them to thrive and not close
down informal SMEs.
The financial services sector,
she said, must also play its
part by developing finan-
cial instruments tailor made
for the informal sector and
upcoming SMEs, which are
different from those of big
firms.
Minister Nyoni said SMEs
should be regarded as a
blessing, as they create jobs
and sustenance for millions,
and not a curse to the coun-
try.●
Govt urged to support SMEs
11 news
Dr Daniel Shumba

12. BH2412

13. HARARE -The local equi-
ties market closed the week
without a single dip, post-
ing its eighth consecutive
gain today to gain 6.51 on a
week-on-week basis.
The mainstream indus-
trial index added 3.04 to
close the week at 105.79
as s BAT was up by a sig-
nificant $0,9524 to close
at $11,7524, while bever-
ages giant Delta shifted up
$0,0475 to $0,7000 and
giant retailer OK Zimbabwe
advanced by $0,0039 to
trade at $0,0450.
Conglomerate Innscor
was $0,0012 stronger at
$0,2200.
Two counters traded in the
negative as Hippo shed
$0,0150 to $0,2200 while
giant insurer Old Mutual
closed at $2,2000 after a
$0,0026 loss.
The mining index was flat
at 20.16 as Bindura, Fal-
gold, Hwange and RioZim all
maintained previous price
levels at $0,0102, $0,0050,
$0,0300 and $0,1100,
respectively.
Week-on-week, the mining
index was unchanged
- BH24 Reporter ●
ZSE13
Equities market close week on a high

14. BH2414

15. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
OK Zim 9.48 4.50 Hippo -6.38 22.00
BAT 8.81 1,175.24 Mashonaland -0.59 1.67
Delta 7.27 70.00 Old Mutual -0.11 220.00
Innscor 0.54 22.00
OK Zim 0.24 4.11
PPC 0.16 65.00
Index Previous Today Move Change
Industrial 102.75 105.79 +3.04 points +2.96%
Mining 20.16 20.16 +0.00 points +0.00%
15 zse tables
ZSE
Indices
Stock Exchange
Previous
today

16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
25 April 2016
Energy
(Megawatts)
Hwange 509 MW
Kariba 459 MW
Harare 30 MW
Munyati 18 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1494 MW
• African Sun EGM, Holiday Inn, 09 May, 1400hrs,
• Innscor EGM, Royal Golf Club, 10 May, 0900hrs
• 05 May - Barclays Bank of Zimbabwe AGM; Place: Meikles Mirabelle Room; Time: 1500hrs• 18 May - ZB Building Society
AGM; Place: 21 Natal Road, Avondale, Harare; Time: 12:00hrs
• 18 May - The 76th AGM of Astra Industries Limited; Place: Auditorium at Astra Park, Corner Ridgeway North/Northend
Roads, Highlands, Harare; Time: 12:00hrs
• 19 May - The Fifth Annual General Meeting of Padenga Holdings Limited; Place: Royal Harare Golf Club, 5th Street exten-
sion, Harare; Time: 08.15am
• 19 May - NMBZ AGM; Place: Unity Court, Corner 1st Street Kwame Nkrumah Avenue; Time: 10:00am
• 19 May - Turnall Holdings AGM; Place: Jacaranda Room, Rainbow Towers; Time: 12:00
THE BH24 DIARY

17. JOHANNESBURG - South
Africa's rand firmed against
the dollar early on Friday,
holding on to a one-week
high buoyed by risk appetite
after a string of disappoint-
ing data releases from the
United States.
At 0708 GMT, the rand traded
at 14.2015 per dollar, 0.58
percent stronger from Thurs-
day's New York close.
Since the previous session,
the currency has been trad-
ing at its firmest levels since
April 21 as the dollar faded
after economic growth in the
U.S. braked to its slowest in
two years.
The weak growth figures
came after the U.S. cen-
tral bank on Wednesday left
its benchmark lending rate
unchanged and suggested it
was in no hurry to tighten
monetary policy, cheering
global risk appetite in the
process.
"The rand rally is getting
going again, but to acceler-
ate it needs ongoing support
from the dollar, larger capital
flows and a break through
key levels," said Rand Market
Bank currency strategist
John Cairns in a note.
"The dominant issue in the
rand outlook remains the
dollar. Today’s event risk on
this front comes from U.S.
personal income and spend-
ing data this afternoon."
Locally, focus was on March
trade data due at 1200 GMT.
Government bonds also
strengthened, with the yield
for the benchmark instru-
ment due in 2026 falling 5.5
basis points to 8.990 per-
cent.
On the bourse, the Top-
40 fell 0.5 percent in early
trade. - Reuters.●
regioNAL News17
Rand firmer on risk appetite, eyes on local trade data
JOHANNESBURG - Growth in
private sector credit demand
in South Africa slowed to 8.94
percent year-on-year in March
from 9.02 percent in February,
central bank data showed on
Friday.
Expansion in the broadly
defined M3 measure of money
supply was at 10.30 percent
year-on-year in March, slightly
up from 10.25 percent in Febru-
ary. - Reuters
- Bloomberg●
SA’s March credit growth slows to 8.94
pct year-on-year

18. SINGAPORE - Crude oil
prices fell in early trading on
Friday as a looming rise in
Middle East output may drag
on the stronger markets seen
in April, although falling U.S.
production and a weaken-
ing dollar are still offering
support.
International benchmark
Brent crude futures were
trading at $47.92 per barrel
at 0236 GMT, down 22 cents
from their last close.
U.S. West Texas Intermedi-
ate (WTI) crude futures were
down 18 cents at 45.85 a
barrel.
Both contracts remained near
2016 highs of $48.19 and
$46.14 per barrel respec-
tively, and WTI's smaller fall
was a result of declining U.S.
crude output, traders said.
Despite Friday's dips, Brent
and WTI are up almost a
third from April troughs and
are over 75 percent above
their 2016 lows, lifted by
falling output and a weaker
dollar, which has fallen
almost 6 percent against a
basket of other leading cur-
rencies this year.
But Deutsche Bank said that
a looming rise in production
by members of the Organiza-
tion of the Petroleum Export-
ing Countries (OPEC) - with
climbing Iranian output and
following outages in Iraq,
Nigeria and the United Arab
Emirates - could cap recent
oil price rises.
"A sustainable rise in OPEC
production may be just
around the corner, and ...
the rally may pause," the
bank said in a note to cli-
ents.
"Maintenance in the UAE at
fields ... is scheduled to end
in April, implying a rise from
current production of 2.73
million barrels per day (bpd)
to the previous 2.91 million
bpd production rate in May,"
Deutsche said.
For 2017, the bank said it
expected to be around 33.1
million bpd, "with upside
risks originating from Libya
and Saudi Arabia, and down-
side risks from unplanned
outages and spending cuts in
Iraq".
One of the main repercus-
sions of the global oil price
rout between 2014 and
early 2016 has been a deep
economic crisis in crude
export-reliant Venezuela,
where political risk consul-
tancy Eurasia Group said the
government faces default as
the state runs out of cash to
keep the oil pumps running.
"The government needs to
invest about $15 billion per
year to maintain current
production (2.4 million bpd),
and mounting problems will
probably lead to a decline of
100,000-150,000 bpd this
year," Eurasia Group said.
"Barring a meaningful
recovery in oil prices or
fresh loans from China in
the second half of the year,
scarce foreign exchange will
probably force the state to
default later this year, most
likely in the fourth quarter,"
it added. – Reuters.●
internatioNAL News18
Oil prices dip on looming OPEC production rise

19. By Papa Ndiaye
Conversations about Africa
typically focus on growth rates
and the pace of emergence of
the middle class. Meanwhile,
African entrepreneurs have
evolved in their sophistication
and approach to business, far
outpacing, in fact, the growth
and market opportunity that
even optimistic macroeconomic
numbers may suggest.
For that reason, when consid-
ering African private equity,
it is critical to focus not only
on topline, top-down analyses
of opportunities, but to focus
more on the evolution and
needs of African entrepreneurs.
African entrepreneurs are
increasingly embracing glo-
balisation, as they strive to
stay globally competitive, but
locally relevant. These entre-
preneurs continue to tailor their
strategies to the realities of
today's Africa, instead of simply
"cutting and pasting" foreign
methods.
Driven by the desire to become
even more competitive, African
businesses have increasingly
shifted, over the past dec-
ade, from simply trading, to
local production of goods and
services of comparable or
even better quality than their
imported peers. The African
entrepreneur is progressively
coming of age. There are
indeed still many opportunities
for import substitution in Africa,
which if tapped, could serve as
an engine for the next level of
growth on the continent.
Today, when one speaks to a
Ugandan or Rwandan busi-
nessperson whose business is
gaining market share locally,
her ambition is to quickly
serve the Kenyan market, and
increasingly the Ethiopian mar-
ket. This was not the case over
a decade over.
On the back of the progress
made with regional integra-
tion in the past decade, and
the opening of new frontiers,
entrepreneurs now see regional
expansion as a necessity,
and not a luxury. This partly
explains the rapid regional
deployment of banks such as
Equity Bank in East Africa, BGFI
in Central Africa, and most
notably Ecobank throughout
the continent. A growing trend
is also one of cross-regional
integration, where regional
champions in East Africa look
to move west or south towards
ECOWAS and SADC, and vice
versa. We are already seeing
Moroccan groups moving from
the Maghreb into West and
Central Africa.
The difficulties faced by entre-
preneurs in accessing debt
financing have made them
obsess more about getting
funding, than thinking about
their business. This limits the
time they spend on crucial
needs of the business, includ-
ing good governance - which
cannot be narrowed down to
just corruption - proper finan-
cial controls, increasingly solid
and adapted technology, and
good quality and well-managed
human resources, which is
fundamental to their business
growth.
Research and development is
also rapidly joining this list
of success factors, as Afri-
can entrepreneurs have to go
beyond "cut-and-paste" from
other markets, and enter the
regional market. So do gov-
ernance, which has become
increasingly pertinent for suc-
cessful African entrepreneurs
to avail themselves to thoughts
and contributions from well-se-
lected boards of directors to
supplement any shortcomings
a brave entrepreneur is likely
to have.
In their initial years, African
entrepreneurs tend to see
financial management as an
annoying impediment to run-
ning a company, and getting
access to new markets. With
limited human resources,
entrepreneurs tend to focus on
everything except this.
We all know this tends to turn
any success into a nightmare,
because by the time the entre-
preneur decides to address this
issue, the company's DNA has
already been set, and it takes
19 analysis19 analysis
Private Equity's African Time

20. more work to undo the DNA
than to establish it from the
start. In this context, private
equity funds, if not properly
managed could actually be
part of the problem, as they
provide the entrepreneur with
what could likely be the largest
amount of unsecured capital
he would had received in the
company's young life, and
this can therefore lead to high
levels of wastage, as they are
more accustomed to getting
funds with often unfairly strict
covenants.
Technology is today's most
delicate and unused source of
potential competitive advantage
for most African entrepreneurs
who see this as a luxury for
more sophisticated businesses.
On one hand, it is true that
understanding technologi-
cal trends does require a fair
amount of sophistication; on
the other, positive and rapid
changes in technology can be
harnessed by African entrepre-
neurs to enter other continents,
as seen in the case of mobile
money and the proliferation of
prepaid GSM platforms.
This process is being aided by
African governments investing
in basic infrastructure, work-
ing with the private sector to
increase reliability of power and
Internet bandwidth, which are
great enablers in the develop-
ment of local technology hubs.
We have seen the emergence
of a vibrant technology space
in Kenya since the landing of
the Seacom fibre in 2009, and
in Senegal, following Orange
fibre optic. We expect sustained
momentum in this area, with
the expansion of fibre compa-
nies such as Main One.
Most African entrepreneurs
will tell you that their people
are their greatest assets. This
statement in many ways con-
tradicts what is witnessed when
one visits some companies,
sees how people are treated,
and the human resource poli-
cies in place (or not!). Entre-
preneurs or teams with a deep
understanding of local context -
either through family ties, deep
roots and local education - have
a greater chance of success
than those that do not.
The topic of growing African
entrepreneurs is vast, and a
few paragraphs cannot do it
justice. This is a topic we can-
not afford to ignore, as it will
be the linchpin of any sustaina-
ble growth in Africa.
We all know that improved eco-
nomic prospects are the best
way to enhance social cohe-
sion that ultimately will lead to
political stability and better-en-
trenched democracy.
The challenges of African
entrepreneurship are multidi-
mensional. It will therefore be
unrealistic for private equity
funds to view themselves as the
only solution. As a result, it is
critical for private equity funds
to stop operating in what some
see as a bubble, and integrate
into the fiber of the economies
that it serves.
This involves joining business
groups to lobby for a better
business environment, including
keeping an eye on local politics
without being an active partic-
ipant; effectively joining forces
to affect change in the envi-
ronment in which we invest.
That is why organizations such
as the Africa Venture Capital
Association (AVCA) and other
more local emanations are
faced with the challenge, but
at the same time should enjoy
the opportunity to spread the
word. We are now doing just
that in Addis Abeba this week,
bringing hundreds of investors
composed of local and regional
players who represent AVCA
membership with combined
assets of approximately 1.5 tril-
lion dollars.
Ethiopia is one of the largest
countries in Africa, with the
highest economic growth rate
and the most dramatic trans-
formation over the last decade.
As such, it cannot be ignored.
Even more, it has to be
courted. – Addis Fortune●
*Papa Ndiaye is the founder
and chief executive officer
of Advanced Finance &
Investment Group.
20 analysis20 analysis