A digital copy of the Business News 24 (22 July 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. News Update as @ 1530 hours, Tuesday 22 July 2014
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By Rumbidzayi Zinyuke
Finance Minister Patrick Chinamasa
says there have been no takers for
tax incentives he offered in the 2014
national budget for any long term
deposits made in the banking sector.
Giving oral evidence to the Parlia-
mentary Portfolio committee on
Finance and Economic Development
yesterday, Minister Chinamasa said
the tax break was meant to increase
the long term deposits which would in
turn increase long term loans to the
productive sectors.
Zimbabwe’s financial system has
been in crisis since 2000 and the
unstable liquidity situation has forced
banks to provide short-term funding
to industries. Government has, how-
ever, been trying to revive long term
funding which will see the growth of
both the financial and productive sec-
tors.
“In my budget, l said we want to
address the lack of long term funding
to the productive sector by promot-
ing medium to long term instruments
of savings. I gave a tax incentive to
exempt any profits made from par-
ticipating in those instruments from
tax but we are yet to see any takers
for those incentives,” he said. He said
the instruments such as the Paid Up
Permanent Shares, Negotiable Cer-
tificate of Deposit, hire purchase and
Lease hire need to be brought back
if the financial services sector is to
grow. He said the lease hire and hire
purchase instruments were used to
facilitate procurement of industrial
and agricultural equipment and could
be repaid over five years while the
NCDs were for short term trading and
could be paid back over 6 months.
“We need to bring back these instru-
ments; we need to encourage the
public to invest in those long term
instruments. Only then will it be pos-
sible for the financial services sector
to lend long term,” he said. Minister
Chinamasa said although deposits
had grown to about $4,7 billion, 95
percent are demand deposits which
cannot be used for on-lending on a
long term basis. He said demand
deposits were contributing to the
liquidity challenges being faced in the
economy since the money could not
be circulated as freely as long term
deposits.
On indigenous banks struggling to
meet capital requirements, Minister
Chinamasa said those banks should
consider joining the micro-finance
sector.
“Microfinance houses allow deposits
so you loose nothing by becoming a
microfinance bank instead of a big
bank which is requiring $25 million
for capitalisation. I did ask the RBZ
to go easy on enforcing capital ade-
quacy ratios. But what this means
is that banks must at the end of the
day know their capital level and work
with that,” he said. He added that the
country needs a strong indigenous
financial sector in order to mitigate
the liquidity crisis. •
No takers for financial tax breaks
Minister Chinamasa

2. BH24

3. 3 NEWS
By Lynn Murahwa
ZB Financial Holdings says it has taken
a new direction to meet the group’s
thrust of creating value and growing its
business.
In a statement, ZB corporate commu-
nications manager Esther Toto said the
group has realigned itself to reaching
its goals that fit into the constantly
changing business environments.
”With the ever changing environment
, our customer needs and deliberate
shifting in strategy it was important
that we relook at our vision and mis-
sion statement to align them with the
new direction,” said Toto.
She said the previous vision and mis-
sion was relevant to where the busi-
ness was and the strategic focus at
that time.
Toto also said the new vision focuses
on wealth creation and value addition.
”Thenewvisionis‘PassionateFocuson
Wealth Creation for You’, the mission
‘To create unparalleled Value’ and our
values are innovation, service excel-
lence, integrity, learning and sharing.
“It aligns with our strategic focus on
superior customer service delivery, it
aligns with our commitment to being
the best financial services provider
and it ensures that our behaviour and
actions are geared to one cause,” she
said.
She said the group has commenced
training for all employees to improve
on skills and service delivery. Last
month the group disposed of two of its
companies after low performance with
no hope of clear sign of turning prof-
its. •
ZB changes business strategy

4. 4 NEWS
BH24 Reporter
Safeguard Alarms has introduced a
new outdoor wireless security system,
the Safeguard Sentry, that provides
an early warning alert if there is an
intruder on the premises.
The system consists of two or more
“sentry” units with passive infrared
sensors that emit invisible beams in a
100 degrees arc and a hand-held con-
trol station.
The sensors can detect movements up
to 20 metres away but can be adjusted
to monitor shorter distances.
The “sentries” are powered by batter-
ies that last for at least a year but can
last up to two years. They send a signal
to the control station every 20 minutes
to verify signal, battery and operational
status.
Safeguard Alarms managing director
Reason Chitiva said the system can be
installed as a stand-alone system or be
fully integrated with an existing alarm
system on any property.
“Unlike old outdoor alarm systems that
required trenching to place cabling, this
systemiseasytoinstallasitiswireless.
It is battery operated, so there are no
worries that the property is unmoni-
tored in the event of a power cut.
“It is weatherproof and ideal for mon-
itoring areas where there is a swim-
ming pool pump, electric gate motor
or car park or for just monitoring areas
around the outside of a house or other
building.
“It can also be used at commercial
properties, mines, farms and industrial
warehouses,” Chitiva added.
He said an outdoor system such as
this ensures that the alarm is activated
before an intruder enters a building
rather than when he has already bro-
ken into premises.
Chitiva said all units are wireless and
each “sentry” is normally fixed on a
bracket to a wall, post or tree but being
wirelesscanbetakentoadifferentsite.
•
Safeguard introduces wireless beams for improved outdoor security

5. BH24

6. By Rumbidzayi Zinyuke
Beverages giant Delta Corporation
recorded a three percent decline in
revenue for the first quarter to June
30 2014 as demand for lager beer
remains low due to the subdued eco-
nomic activity.
“Consumer demand remains
depressed in line with prevailing sub-
dued economic performance. The
stretched consumer is now focussing
on value for money products,” the
company said.
Total volumes for the quarter were
one percent up on prior year reflect-
ing some changes in the sales mix as
witnessed in the full year to March.
The company’s earnings have been
on a decline after it recorded a 9 per-
cent decline for the full year to March
2014.
For the period under review, Delta
recorded sustained growth in sor-
ghum beer and alternative beverages
against declines in lager beer and
sparkling beverages.
The lager beer volume was 21 per-
cent below prior year while sparkling
beverages are 8 percent down.
The increased production capacity of
Chibuku super resulted in a 15 per-
cent growth in sorghum beer sales
while alternative beverages, mainly
Maheu, were up 22 percent on prior
year with some encouraging uptake
on the new dairy mix and drinking
yoghurt beverages.
Delta controls about 96 percent of the
beer market and about 92 percent of
the sparkling beverages in the coun-
try. •
6 NEWS
Delta Q1 revenue declines

7. BH24

8. AdM-DI156506-
BH24

9. The equities market shed off yes-
terday’s loses after gaining a mar-
ginal 0,08 percent. The Industrial
index gained 0,14 points to close
trade at 185.86 points on the back
of increases in several heavyweight
counters.
First Mutual added a cent to 5 cents
while TA Holdings rose 0.51 cents
to close at 16.51 cents. Telecomms
giant Econet gained half a cent to 73
cents and NicozDiamond picked up
0.2 cents to 1.2 cents. Starafrica was
0.05 cents firmer at 1.15 cents.
Only two counters traded in the red
today with retail giant OK shedding
0.51 cents to close at 16.99 cents and
Padenga trading 0.2 cents weaker at
7.8 cents.
The Mining index was steady at 57.44
points as Bindura, Falgold, Hwange
and Riozim remained unchanged
at previous trading levels. ― BH24
Reporter •
9 ZSE REVIEW
ZSE in marginal gains

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BH24

11. Finance minister Patrick Chinamasa
got it right: there are no quick-fixes for
our economy! This is one little secret
Zimbabweans loathe to face. The
sooner we stop pretending that we
can reverse the decline experienced in
the past decade over the next year or
so, the faster our nation will be able to
safely and soundly recover.
This crisis is not like all others faced
by African countries. It is unique in its
own right and has thousands other
contributing factors like sanctions and
a very negative perception. Thus it
deserves its own solutions.
Massivedebtissuffocatingourgrowth,
having grown to $10 billion and our
huge import bill is not helping either.
We keep importing goods that bring
no value to our economy while the
productive sectors suffer. Worse yet,
Government is the biggest importer,
with the recent importation of vehi-
cles for legislators at a cost of $11
million being one example where our
priorities are wrong. With unemploy-
ment growing to 11 percent and GDP
slipping below average levels and the
housing and consumer sectors, which
usually lead a recovery, worsening by
the day, we have a lot of work to do.
Our problem is abundantly clear: we
want easy solutions that come to us
as we sit back and moan about our
situation and blame everyone but our-
selves for the situation we are in.
We first need to stop moaning about
everything and start working. As the
minister rightly said “the days of burn-
ing money and miracle money are
over. We must exhort our people to
put their shoulders to the wheel and
work for the economic recovery of our
country.” Government should keep
selling the idea that we cannot keep
camouflaging a collapsing economic
structure; rather, we must restore its
integrity
But Zimbabweans cannot just wait for
Government all the time. We need to
work on the perception other coun-
tries have of us. It’s not only Govern-
ment who should do this but every
Zimbabwean who opens their mouth
to talk about the country. Once per-
ception improves, then we start work-
ing on other avenues.
What more can the Government do?
It can increase confidence, which is
the best stimulus hard to quantify but
of enormous benefit. In that regard
Minister Chinamasa has created a
committee that will ensure that the
country’s debt doesn’t grow again by
curbing parastatals’ borrowing capac-
ity. Those that overspend their budget
allocation also face the wrath of the
law.
This plan should set us on a path to
balanced budgets. We also need to
reduce that import bill. Even though
our industries are not producing
enough to meet demand, we should
take up what they produce and then
import the deficit only. Our industries
need to be capacitated so that they
are restored to their former glory.
Instead of Government’s import bill
growing on non-essentials, it should
be dominated by machinery and
inputs for the productive sector.
Health and education, once our best
asset, are also beset by problems in
all levels. We need to capacitate these
sectors so that we can churn out ded-
icated professionals who will not run
for greener pastures once an opportu-
nity presents itself.
Lastly, we also need to produce
enough to export and not only rely on
importing. We are making those coun-
tries all the more richer than us!
These are but some of the areas
that are necessary to secure a bright
future. We can bear our current
malaise. The tragedy would be to pass
the status quo to our children and
grandchildren. •
11 BH24 COMMENT
There is definitely no quick-fix to our economy!
Minister Chinamasa

12. BH24

13. South Africa’s biggest employers group
by number of workers agreed to offer
a 10 percent pay increase to low-level
earners over three years to end a strike
that’s entering its fourth week.
The Steel and Engineering Industries
Federation of Southern Africa “ reluc-
tantly accepted” the proposal from the
LabourMinistryatameetingyesterday,
the Johannesburg-based employers’
lobby said in an emailed statement
today. The offer has been approved by
a “slim majority of employer associa-
tions,” it said.
More than 220,000 metalworker
employees have been on strike since
July 1, affecting about 12,000 com-
panies including Nampak Ltd. (NPK),
Africa’s biggest beverage-can manu-
facturer, and carmakers such as Toyota
Motor Corp.
(7203) and General Motors Co. (GM)
The walk-out is being led by the
National Union of Metalworkers of
South Africa, the country’s biggest
labor group.
“Seifsa is presenting the offer to
the unions, including Numsa today,”
spokesman Ollie Madlala said by
phone. The labor groups have until end
of July 25 to accept the offer. The deal
includes a demand to tighten an agree-
ment that says future employment
issues must be negotiated at national
rather than company or plant level.
“Numsa’s National Executive Commit-
tee will meet later on today to discuss
the new offer,” spokesman Castro
Ngobese said by phone, declining to
comment further. General Secretary
Irvin Jim said July 17 that the union is
willing to accept a two-year wage deal
with a 10 percent per annum increase.
Job Losses
The pay rises proposed by Labor Minis-
ter Mildred Oliphant will probably lead
to “massive job losses,” Seifsa Chief
Executive Officer Kaizer Nyatsumba
said in the statement, as companies
seek to reduce costs that can’t be
passed on to customers. The indus-
try employs about 1.8 million people,
according to Statistics South Africa.
“We expect manufacturing employ-
ment to fall by 220,000 over the next
three to five years as a result of these
excessive wage increases,” Loane
Sharp, labor economist at Adcorp
Holdings Ltd. in Johannesburg, said by
phone.
“Manufacturing employment is very
sensitive to wages because the work-
ers are not particularly skilled and com-
petition among workers is significant,”
he said.
The strike is costing the industry
about 300 million rand ($28 million) a
day, according to Seifsa. The walkout
may lead to a slowdown in economic
growth if it isn’t resolved, Reserve Bank
Governor Gill Marcus said July 17. ―
Bloomberg •
13 REGIONAL News
South Africa Employers Accept 10% Three-Year Deal to End Strike

14. BH24

15. 15 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
14 July 2014
Energy
(Megawatts)
Hwange 421 MW
Kariba 750 MW
Harare 45 MW
Munyati 29 MW
Bulawayo 0 MW
Imports 0 MW
Total 1245 MW
23 -25 July - Mine Entra, Place: Zimbabwe Inter-
national Exhibition Centre, Bulawayo
24 July - OK Zimbabwe Thirteenth Annual Gen-
eral Meeting Place: OKMart Functions Room,
First Floor, OKMart, 30 Chiremba Road, Hillside, Time:
15:00 hours.
1 August - Sixteenth Annual General Meeting
of the members of Econet Wireless Zimbabwe
Limited, Place: Econet Park, 2 Old Mutare Road,
Msasa, Harare, Time; 10.00am
THE BH24 DIARY

16. BH24

17. 17 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
TA 60.00% 16.00 Fidelity Life -6.25% 7.50
Pearl 11.53% 2.90 Riozim -4.76% 20.00
CBZ 8.33% 13.00 OK Zim -2.77% 17.50
Masimba 5.55% 1.90 Econet -2.02% 72.50
Old Mutual 0.15% 258.00 TSL -1.87% 26.10
Seedco -0.01% 78.00
Indices
Index Previous Today Move Change
Industrial 185.93 185.72 -0.21 points -0.11%
Mining 57.83 57.44 -0.39 points -0.67%
Stocks Exchange
Previous

18. BH24

19. 19 AFRICA StockS
Botswana 8,664.65 -11.96 -0.14% 12July
Cote dIvoire 246.37 +2.18 +0.89% 07Mar
Egypt 7,949.60 -75.68 -0.94% 06Mar
Ghana 2,354.16 -7.26 -0.31% 18June
Kenya 4,896.77 -13.83 -0.28% 21July
Malawi 12,662.47 +0.00 +0.00% 07Mar
Mauritius 2,074.51 -3.51 -0.17% 07Mar
Morocco 9,544.10 +21.01 +0.22% 07Mar
Nigeria 42,784.30 -107.52 -0.25% 21July
Rwanda 131.27 +0.00 +0.00% 24Oct
Tanzania 2,018.97 +25.40 +1.27% 07Mar
Tunisia 4,624.39 -39.32 -0.84% 07Mar
Uganda 1,503.90 +0.81 +0.05% 10Sep
Zambia 4,242.74 +14.95 +0.35% 10April
Zimbabwe 185.72 -0.21 -0.11% 21July
African stock round up Commodity Prices
Name Price
Crude Oil 1,300.91 -0.21%
Spot Gold USD/oz 1,292.63 -0.26%
Spot Silver USD/oz 19.38 -0.46%
Spot Platinum USD/oz 1,421.25 -0.33%
Spot Palladium USD/oz 798.50 -0.64%
LME Copper USD/t 6,770 -0.18%
LME Aluminium USD/t 1,780 -1.17%
LME Nickel USD/t 18,230 -1.73%
LME Lead USD/t 2,095 -1.41%
Quote of the day — "In life, as in
a football game, the prin-
ciple to follow is: Hit the
line hard." -
Theodore Roosevelt
Globalshareholder.com

20. BH24

21. Asian stocks touched a three-year peak
on Tuesday, despite lingering concerns
about crises in Ukraine and Gaza, while
theyeneasedagainstthedollarandthe
euro.
MSCI's broadest index of Asia-Pacific
shares outside Japan rose 0.5 percent
to its highest since 2011, while Japan's
Nikkei stock average rose about 1 per-
centafteranationalholidayclosedmar-
kets on Monday.
"Investor sentiment has settled as the
VIXhasstayedcalm,"saidAkioYoshino,
chief economist at equity research and
strategy department at Amundi Japan.
The CBOE Volatility Index, which is a
gauge of market risk aversion, jumped
32.2 percent on Friday in Asia, the big-
gest percentage rise since April 2013.
U.S. shares slumped overnight, as
the rising global tensions offset some
upbeat U.S. earnings. So far this report-
ing period, 66 percent of S&P 500 com-
panies have topped Wall Street's profit
expectations, according to Thomson
Reuters data, above the 63 percent
average since 1994.
But the three major U.S. indexes ended
well off their lows, a sign that some
appetiteforriskierassetsremained,and
S&P 500 E-Mini futures edged higher in
Asian trade.
Malaysia has reached an agreement
with the leader of the separatist group
toretrievethebodiesofthevictimsfrom
last week's downing of a Malaysia Air-
linespassengerjetaswellastheplane's
twoblackboxes,MalaysianPrimeMinis-
ter Najib Razak said on Tuesday.
Meanwhile, in the Gaza Strip, the Pal-
estinian death toll jumped to more than
500 and Israeli losses mounted as well,
as the United States stepped up efforts
to secure a ceasefire. ― Reuters •
21 INTERNATIONAL NEWS
Asian shares push higher, shrug off global tension

22. By Munetsi Madakufamba
Continued from yersterday
Yet such attention, given the tempting
nature of Africa’s resources, may lead
to undesired consequences unless the
leadership of the continent makes cer-
tain major decisions, including insist-
ence on technological transfer in order
to turn the primary commodities into
high-value finished products for inter-
national trade.
Third, the arrival of China and other
BRICS countries (Brazil, Russia, India,
South Africa) on the global stage has
democratised access to capital as well
as widened options.
Gone are the days when decisions on
flow of capital into Africa were dictated
by the former colonial metropoles.
Shanghai and other international cap-
ital markets now offer a much wider
menu for countries wanting to attract
foreign direct investment. Fourth, the
problem of infrastructure has been cor-
rectly identified and therefore receiving
political attention in Africa.
SADC adopted its Regional Infra-
structure Development Master Plan
(RIDMP) in August 2012 as the sub-re-
gion’s strategy for the development of
integrated regional infrastructure to
meet projected demand by 2027.
Fifth, regional integration offers the
best option for member states to
enjoy economies of scale that may be
required to tackle some of the current
challenges.
For example, some of the infrastruc-
ture projects identified under RIDMP
would make economic sense only if
pursued as sub-regional projects.
From a demographic perspective, the
combined population of SADC is about
280 million, while that of the entire
continent is just over one billion people,
which compares favourably with other
regions of the world.
The challenges facing SADC and many
other African economies are as diverse
as the number of countries that make
up the continent, and it is important
to acknowledge from the outset that
while Africa is one continent, it is not
made up of a homogenous group
of countries, and so are the many
regional economic communities spread
across the continent.
All developing countries that have suc-
cessfully made the transition from low
income to middle and high income
status, such as China and the East
Asian Tigers as well as Latin American
countries, have done so by relying on
a strong manufacturing sector as the
driver of an export-oriented growth
22 Analysis
Prospects for industrial development in SADC