A digital copy of the BH24 (04 December 2015 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.

1. By Funny Hudzerema
HARARE -The Ministry of Youth, Indig-
enisation and Economic Empowerment
is negotiating with Old Mutual and its
banking division CABS to unlock $5,1
million under the Youth Fund, which
had been withheld after borrowers
failed to refund initial loans.
In 2011 Government allocated $10
million towards the youth empower-
ment programme, which was accessed
through loans via CABS, but of that
money only $4,9 million was utilised..
Speaking at a National Economic
Empowerment Strategy conference
Youth, Indigenisation and Economic
Empowerment Minister Patrick Zhu-
wao said:
“Government allocated $10 million to
the youth fund and $4,9 million was
loaned and the remaining $5,1 million
was locked after the youth failed to pay
back the loans.
“As the Ministry of Youth, Indigeni-
sation and Economic Empowerment
we are negotiating with Old Mutual to
unlock the remaining $5,1 million so
that it can be to be accessed by the
youth to start their projects,” he said.
Of the $4,9 million loaned out, only
$1,7 million has been paid back, the
minister said.
He said the law will be applied to
defaulters of the initial tranche of loans.
“Government negotiated the loans
from the banks offering state secu-
rity as collateral to the youths and the
banks are demanding their money
from the Government, so this has
forced us to apply laws to the default-
ers starting next year,” he said.
“The financial institutions have
requested the ministry to allow them
to take the normal procedures towards
recovering their facilities and we have
allowed them to start next year,” he
said.
He added that those who have not
repaid the money must negotiate with
the banks and make commitments to
the banks on how they will pay back
the loans.
During the time the youth fund was
allocated to the youths, banks say the
levelofnon-performingloansincreased
to 97 percent.
Minister Zhuwao said those who are
not complying with the laws must
know that Government provided secu-
rity for them and their properties can
and will be attached.
In the 2016 National Budget Finance
Minister Patrick Chinamasa allocated
$2 million towards youth projects; this
means that at least $7,1 million can be
availed to the youth if the Youth Fund
is restored.
This will be in addition to the $10 mil-
lion Localised Empowerment Accelera-
tion Facility (LEAF) that was launched
last month.●
News Update as @ 1530 hours, Friday 04 December 2015
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Govt negotiating with Old Mutual to unlock $5,1m under Youth Fund
Minister Patrick Zhuwao

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4. BH24 Reporter
HARARE - Listed telecoms giant
Econet Wireless Zimbabwe says it
will get the bulk of a new loan facil-
ity that has been extended to parent
company Econet Global by the China
Development Bank and Chinese mul-
tinational telecommunications equip-
ment and systems company ZTE Cor-
poration.
Out of the $500 million loan facil-
ity that has been granted to Econet
Global, the local entity could get over
$300 million.
The telecoms firm has since said it
plans to extend business opera-
tions in the mobile financial services,
banking, insurance and e-commerce
sectors to cushion it against falling to
telecoms revenues.
Econet Zimbabwe has to date
invested in excess of $1,2 billion in
the country, and the new $300 million
investment, which the company said
"would help consolidate its market
position and also introduce new ser-
vices" will take the firm's total invest-
ment to over $1,5 billion.
Said Econet Zimbabwe CEO Mr Doug-
las Mboweni:
"With this facility we will take our
investment to well over $1,5 billion.
This shows our commitment to the
country."
He added that the deal had been
negotiated at group level because
that is where the expertise lies to
raise such significant amounts of
money.
Business has not all been rosy for
Zimbabwe's largest mobile phone
operator by subscribers, with the
firm reporting a 52 percent decline in
after-tax-profit to $23 million for the
six months to August 31, 2015.
The depressed performance was
on the back of waning aggregate
demand as well as the consequences
of voice tariff cut by the Postal and
Telecommunication Regulatory
Authority of Zimbabwe (POTRAZ),
as well as taxes on airtime sales and
mobile handsets.
The tough times have also been
reflected in a raft of cost-cutting
measures that the company has
implemented during the course of the
year.
But the latest loan facility should help
Econet maintain its market domi-
nance, with a current market share
of over 60 percent.●
4 news
Mr Douglas Mboweni
Econet Zim to expand on $300m loan facility

5. BH245

6. BH24
TAA:DI251386-Y22Laz DI324241-D15
6

7. BH24 Reporter
HARARE -Listed seed producer
SeedCo narrowed its loss after tax to
$5,5 million in the six months to Sep-
tember 30, 2015 from $7,6 million in
the prior comparable period.
This was on the back of a rise in vol-
umes, reduced finance charges and
exchange rate gains, said the group,
which has operations in Botswana,
Kenya, Malawi, Tanzania and Zambia.
Revenue for the period amounted to
$18,7 million up from $16 million, with
at least 9 percent of the revenue com-
ing from the newly acquired division,
Prime Seeds.
Cost of sales jumped 33 percent to
$10,5 million, which management
attributed to higher insurance and
depreciation charges.
And operating expenses rose 25,8 per-
cent to $15,7 million due to the addi-
tion of Prime Seeds.
Finance income increased to $877 844
from $68 398 while finance costs came
down to $1,2 million from $2 million
in the prior year, a development that
resulted in loss before tax falling to
$5,3 million from $6,2 million last year.
During the period under review, cur-
rent bank borrowings nearly doubled
from $11,7 million to $20,6 million
while operating costs increased by 25
percent to $15,6 million. Going for-
ward, the group says it expects incre-
mental positive outturn.
"Positive prospects in the medium to
long-term are expected to come from:
quicker product release due to the
strategic technical equity partnership
with Limagrain; the acquisition of Zim-
babwe's leading vegetable seed distri-
bution company and leveraging on the
expertise of LImagrain in this new line
of business in all our markets, increas-
ing market share in East Africa with
Kenya, Tanzania and DRC all continu-
ing on an impressive growth projectile;
new proprietary product releases in the
West African market which are show-
ing promise....," said the company in a
statement accompanying the results.
The board did not declare a dividend
for the half-year, in line with group pol-
icy.●
7 news
SeedCo posts improved H1 results

8. BH248

9. HARARE -Despite a bump in
Friday's trades, the general
downward trend this week
meant that the mainstream
industrial index lost 3.22 (or
2,74 percent) from the prior
week.
The market today registered a
0.34 gain to settle at 114.42
lifted by the two counters that
traded in positive territory.
Beverages giant Delta rose
$0,0154 to trade at $0,7155
while clothing retailer Edgars
was up $0,0020 to close at
$0,0700.
The majority of stocks however
traded in the red, with con-
glomerate TSL lost $0,0100 to
$0,1500 and giant insurer Old
Mutual slid $0,0075 to close at
$2,1025.
Also experiencing a down-
turn was Innscor, which went
down by $0,0050 to trade at
$0,2850, and Nampak which
lost $0,0038 to $0,0155 while
SeedCo was $0,0025 weaker
at $0,8625 after the seed pro-
ducer narrowed its loss after
tax $5,5 million in the six
months to September 30, 2015
from $7,6 million in the prior
comparable period.
The mining index retreated
0.39 to close at 21.51 as Bind-
ura Nickel Corporation lost a
marginal $0,0005 to trade at
$0,0125.
Hwange, Falgold and RioZim
however maintained previ-
ous price levels at $0,0300,
$0,0050 and 0,1040, respec-
tively.
On a week-on-week basis, the
mining index was down 0.82
(or 3,67 percent) compared to
last week - BH24 Reporter ●
ZSE9
Equities markets drops 2,74pc in week

10. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Edgars 2.94 7.00 Nampak -19.68 1.55
Delta 2.19 71.55 Turnall -10.52 0.85
TSL -6.25 15.00
BNC -3.84 1.25
Innscor -1.72 28.50
Fidelity Life -0.48 10.25
Old Mutual -0.35 210.25
SeedCo -0.28 86.25
Index Previous Today Move Change
Industrial 114.08 114.42 +0.34 points +0.30%
Mining 21.90 21.51 -0.39 points -1.78%
10 zse tables
ZSE
Indices
Stock Exchange

11. BH2411

12. 12 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
04 December 15
Energy
(Megawatts)
Hwange 347 MW
Kariba 468 MW
Harare 30 MW
Munyati 16 MW
Bulawayo 22 MW
Imports 0 MW
Total 852 MW
•09 December 2015 - Cottco AGM; Venue: Cotton Pavilion, Exhibition Park; Time; 12:00hrs
•09 December 2015 - Border Timbers AGM; Venue: Boardroom, Northern Tobacco (Private)
Limited Complex, 4-12 Paisley Road, Southerton; Time: 9:00hrs
•11 December 2015 - Buy Zimbabwe Awards; Venue: Rainbow Towers, Harare
THE BH24 DIARY

13. Johannesburg -Nigerian authori-
ties have reduced a fine on South
Africa's MTN Group by 25 percent
to $3.9 billion, MTN said on Friday,
going back on a decision to slash
the fine by more than a third.
MTN was handed a $5.2 billion
penalty in October for failing to
disconnect users with unregistered
SIM cards, prompting five weeks of
pleas from Africa's biggest mobile
phone company that led to the fine
being cut by 35 percent to 3.4 bil-
lion on Thursday.
But a day later, MTN issued a state-
ment saying the Nigerian Commu-
nications Commission (NCC) had
sent it a second letter in which
it said the fine had actually been
reduced by 25 percent to 780 bil-
lion naira ($3.92 billion) and not by
35 percent to 674 billion naira.
"Neither the first letter nor the
second letter sets out any details
on how the reduction was deter-
mined," MTN said, adding that
its chairman, Phuthuma Nhleko,
would immediately hold talks
with Nigerian authorities before
responding.
Nigeria has been pushing telecoms
firms to verify the identity of sub-
scribers amid worries unregistered
SIM cards were being used for
criminal activity in a country facing
the insurgency of militant Islamist
group Boko Haram.
The fine came months after
Muhammadu Buhari swept to
power in Africa's biggest econ-
omy, after a campaign in which he
promised tougher regulation and a
fight against corruption.
MTN said the NCC has given it until
the end of the year to pay the fine.
- Reuters●
regioNAL News13
Nigeria backpedals on MTN fine, cuts penalty by 25 pct $3,9bn

14. BH2414

15. Johannesburg -South Africa's rand
was slightly on the backfoot against the
dollar on Friday and was likely to stay
under pressure ahead of sovereign
credit rating reviews from Fitch and
Standard & Poor's.
Government bonds were also quoted
weaker, with the yield for the bench-
mark instrument maturing in 2026 ris-
ing 6 basis points to 8.695 percent, its
highest since February 2014, according
to Thomson Reuters data.
By 0610 GMT the rand was at 14.3850
against the greenback, 0.14 percent
off Thursday's close of 14.3645 in New
York.
The rand hit an all-time low of 14.4950
earlier in the week after official data
showedtradedeficitwidenedsharplyin
October, underlining sluggish growth in
Africa's second largest and most indus-
trialised economy.
Traders and analysts expected fur-
ther losses on Friday should negative
reviews be forthcoming from Fitch,
which rates South Africa at "BBB" with
a negative outlook and Standard &
Poor's, which has it at "BBB-" with a
stable outlook.
Investors were also eyeing U.S. jobs
numbers which could strengthen the
case for interest rate hike in the world's
biggest economy in December, whit-
tling the appeal of high-yielding but
riskier emerging-market assets.
"It's like Guy Fawkes Day for local mar-
kets," said Rand Merchant Bank's cur-
rency analyst John Cairns.
"Risk is massive, with U.S. non-farm
payrolls this afternoon and rating
actions this evening, while global vola-
tility and risk-off are elevated."
- Reuters●
regioNAL News15
Rand, bonds weaker ahead of rating reviews

16. Automotive demand for platinum is
expected to reach 3.315 million oz
next year for an increase of 2 per-
cent over 2015, according to the
World Platinum Investment Council
(WPIC).
Meanwhile, jewellery sales, industrial
end uses and investment demand
are expected to deliver ‘modest’
growth in 2016.
Total mining supply is thought likely
to achieve year-on-year growth of 4
percent in 2016, with global refined
supply increasing 2 percent year on
year to 5.965 million oz.
‘The outlook is for the market to
move to balance in 2016,’ WPIC
states.
The organisation reports that the
third quarter of 2015 was ‘domi-
nated by the Volkswagen emissions
revelations’. And yet it adds: ‘While
many commentators postulated that
the scandal would inevitably mean a
reduction in platinum demand, cor-
responding to fewer diesel cars, we
do not agree. We believe the con-
sequences could include automaker,
regulator and consumer actions that
are as likely to lead to increases in
automotive uses of platinum in the
coming months and years.’
Automotive demand was up 6 per-
cent year on year in the third quarter
of 2015, primarily due to increased
platinum usage in light and heavy-
duty autocatalysts, research by SFA
Oxford reveals. It also reports that
an estimated platinum deficit of 320
000 oz in the same quarter followed
a 20 000 oz shortfall in the preceding
three months. This presents a ‘stark
contrast’ to the 240 000 oz surplus in
the third quarter of 2014.
Total platinum supply in 2015 is
expected to grow by 6 percent to
7.73 million oz, with recovery from
the 2014 strikes in South Africa
more than offsetting a 7 percent
decline in recycled platinum owing to
lower jewellery demand in China and
weaker platinum group metal prices.
Overall demand, meanwhile, is
forecast to expand slightly to 8.03
million oz as ‘stronger’ automotive,
industrial and investment demand
more than offsets a drop in jewel-
lery offtake. - Recycling Interna-
tional●
internatioNAL News16
Platinum market expected to be balanced in 2016

17. Twelve investment agreements
have been signed by China and
Zimbabwe during the State Visit
of the Chinese President Xi Jin-
ping.
President Xi and his host, Presi-
dent Robert Mugabe, witnessed
the signing by different ministers
of the agreements worth $4 bil-
lion covering aviation, energy, tel-
ecommunications, infrastructure,
and private sector ventures.
The agreements include financ-
ing for expansion of the Hwange
Power Station and a national fibre
optic broadband project, construc-
tion of a new Parliament building
and a pharmaceutical warehouse,
and provision of wildlife monitor-
ing equipment.
During the first half of next year,
the China Eximbank will begin
extending loans to Zimbabwe
of more than $1.1 billion for
the expansion of Hwange Power
Station and TelOne’s fibre optic
broadband project.
Sino-Hydro was contracted to
undertake the Hwange project
that will add 600 Megawatts of
power to the national grid, which
is struggling due to low water lev-
els at Kariba hydropower station
and recurrent faults at Hwange.
The agreements include a grant
of $65 million dollars for the con-
struction of a new Parliament
building and a pharmaceutical
warehouse.
Two of the agreements are private
sector driven. One was signed by
International Business of China
and China Africa Sunlight Energy
on the development of coal and
methane gas mines and a thermal
power station at Gwayi. The other
was signed by AVM Africa and Bei-
jing Automobile Assembly.
The agreements will add momen-
tum to the implementation of
Zimbabwe’s development plan,
the Zimbabwe Agenda for Sus-
tainable Socio-Economic Transfor-
mation (Zim-Asset).
Other general agreements
included one on economic and
technical cooperation between
17 analysis17 analysis
China-Zimbabwe cooperation reaches new high

18. 18 analysis18 analysis
Zimbabwe and China signed by
the ministers of commerce of the
two countries.
Another framework agreement on
enhancement of investment was
signed by the Minister in the Pres-
ident’s Office for Policy Coordina-
tion and Promotion of Socio-Eco-
nomic Ventures with China’s top
planning agency, the National
Development and Reform Com-
mission (NDRC).
China, as the largest developing
country, and Africa, the continent
with the most developing coun-
tries, are increasingly influen-
tial in global affairs and actively
strengthening cooperation.
A recent symposium in Harare on
China-Africa relations addressed
how this “new type of strategic
partnership” can benefit local
development while contributing
to redefining global governance
structures.
President Xi arrived in Zimbabwe
on Tuesday leading a delegation
of more than 200 people includ-
ing senior government and party
officials.
President Mugabe told journalists
that relations between Zimbabwe
and China have reached a new
high following the state visit.
“Although their stay was brief,
but the essence of the visit was
phenomenal and shall always be
remembered by us in Zimbabwe.
The Chinese and Zimbabweans
are excellent friends, friends
not just today, friends that have
established their friendship back
and our future will always be
on the path of that. We are all-
weather friends.”
President Xi thanked Zimbabwe-
ans for the warm reception, say-
ing, “I am satisfied by this visit.”
He said the consolidation of rela-
tions with Zimbabwe and other
African nations remains a corner-
stone of Chinese foreign policy,
adding that he values the impor-
tant contribution by Zimbabwe to
the solidarity and development of
Africa during the past year when
President Mugabe has held the
African Union chair.
“In conducting China’s relations
with Africa, we adhere to the
principles of sincerity, practical
results, affinity and good faith,
and uphold the values of friend-
ship, justice and shared interests.
He said the two leaders would
meet again at the Forum on Chi-
na-Africa Cooperation (FOCAC)
Summit that takes place in Johan-
nesburg, South Africa on 4-5
December.
“We are going to meet again at
the China-Africa Summit in South
Africa and I hope it will be another
resounding success.”
The FOCAC Summit at the Sand-
ton Convention Centre has the
theme “China-Africa Progressing
Together: Win-Win Cooperation
for Common Development”.
FOCAC is an increasingly influ-
ential platform that has played
in important role in enhancing
collective dialogue and practical
cooperation since it was estab-
lished at the turn of millennium
15 years ago.
In a statement on China’s Africa
Policy presented last year at the
African Union headquarters in
Ethiopia, the Premier of the State
Council of China, Li Keqiang,
pledged to promote major pro-
jects in six areas of cooperation
– industrial, financial, poverty
reduction, ecological and environ-
mental protection, cultural and
people-to-people exchanges, and
enhancing peace and security.
These are likely to be key areas
of focus for the FOCAC discussion
and subsequent Plan of Action for
the next three years 2016-2018.
The Action Plan is expected to
have a significant regional dimen-
sion for the first time, in support-
ing the regional structures that
build African unity.
The African and Chinese leaders
are planning to issue a Johannes-
burg Declaration of FOCAC.
The 2nd FOCAC Summit which
takes place on 4-5 December fol-
lowing the 6th ministerial meet-
ing will continue to improve this
mechanism for cooperation,
enrich its content and make the
platform more practical and effi-
cient. - Sardc.net●