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1. By Tawanda Musarurwa
HARARE – The Zimba-
bwe Consolidated Diamond
Company (ZCDC) has been
caught in the eye of a storm
in view of revelations that
there is no legal framework
to support its existence as a
public entity.
Appearing before the Parlia-
mentary Portfolio Committee
on Mines and Energy this
morning Ministry of Mines
and Mining Development per-
manent secretary Professor
Francis Gudyanga admitted
the anomaly.
“The company (ZCDC) was
formed in terms of the Com-
panies Act and registered as
such, and there was no act
of Parliament similar to, say
for ZMDC or other corpora-
tions,” he said.
In terms of the Zimbabwean
Constitution Section 315:
“An Act of Parliament must
provide for the negotiation
and performance of the
following State contracts (a)
joint-venture contracts; (b)
contracts for the construction
and operation of infrastruc-
ture and facilities; and (c)
concessions of mineral and
other rights; to ensure trans-
parency, honesty, cost-ef-
fectiveness and competitive-
ness.”
The ZCDC was formed earlier
in February after the special
grants that were issued to
joint venture companies with
the Zimbabwe Mining Devel-
opment Company (ZMDC)
namely Anjin, DMC, Jinan,
Mbada, DTZ-OZGEO, RERA,
Gye-Nyame, Kusena and
Marange Resources expired
and were not renewed.
The ZCDC’s current special
grant has a specified mining
period running from April 7,
2016 to April 8, 2019.
Prof Gudyanga in eye of
diamond storm
But of apparently greater
concern to the Parly Commit-
tee was ZCDC’s ‘improperly
constituted’ board – with
News Update as @ 1530 hours, Monday 20 June 2016
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ZCDC an illegal entity?
Professor Francis Gudyanga

2. Prof Gudyanga also sitting
on the board as the interim
chairman – and some con-
troversial decisions made
resultantly.
Prof Gudyanga previsouly
held the post interim chair-
man of Marange Resources,
and is currently interim
chairman of the Mineral Mar-
keting Corporation of Zimba-
bwe (MMCZ).
Said Committee chair MP
Daniel Shumba:
“You have no mandate. You
are not properly constituted
as a board, you can’t go and
fire half the company and
go and hire somebody who
is your ex-student as acting
CEO (Dr Ridge Nyashanu)….
You also fired the chief sorter
and sorters and replaced
them with a company called
Heroes Diamond Consulting
Services, which employs two
Namibians, one Tswana and
one Zimbabwean. What’s the
rational?” In response Prof
Gudyanga said the improp-
erly constituted board was a
result of an earlier decision
by Government to establish
the ZCDC as a joint venture
between itself and the pri-
vate diamond companies.
“The formation of ZCDC
was done with anticipation
of partnership between the
Government with 50 per-
cent and the other private
diamond companies holding
the other 50 percent, and
that’s why an interim board
was formed to represent the
Government side with antic-
ipation that the other half
would come from the other
companies together who
would have their appointees
corresponding to their share-
holding.”
Meanwhile, according to fig-
ures provided by the ZCDC’s
acting CEO Dr Nyashanu,
the diamond firm has so far
produced 513 364 carats with
revenues amounting to $21
million to date and a profit of
$6,7 million.
The acting CEO told the same
Committee that out of that
profit ZCDC has declared $1
million to Government, while
the balance went to acquiring
new equipment.
Of the concession that ZCDC
took over, Marange and DMC
are currently operational.
According to Prof Gudyanga,
the establishment of ZCDC
was necessitated by declining
payments to Government and
investment pledges defaults
by the private diamond com-
panies.
Official figures show that
benefits from the diamond
sector have been declining
gradually since 2011. In
2011, Government received
payments from the diamond
firms amounting to $168,5
million, which declined to
$142,4 million in 2012 and
$93,2 million in 2013.
And in 2014 payments to
Government amounted to
$84,3 million, which further
declined to $23,4 million last
year.●
2 news

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5. HARARE -The recently
established National Build-
ing Society (NBA), a wholly
owned subsidiary of the
National Social Security
Authority (NSSA), will soon
take over the pension fund's
land bank for construction of
low cost housing across the
country, a cabinet minister
has said.
Launched last month, the
NBS was specifically set
up to provide not only low
cost housing but affordable
mortgage in an economy
where low income earners
have been elbowed out of
the housing market due to
stringent and costly demands
to qualify for loans and other
housing schemes.
Zimbabwe has a housing
waiting list of over 1,25 mil-
lion. Public Service, Labour
and Social Welfare Minister,
Prisca Mupfumira said NSSA,
which has been criticised for
failing to meet the housing
needs of its members, owned
large tracts of land across
the country.
“NSSA will be looking at all
the land that is available
which will be handed over to
the National Building Society
to ensure that we achieve
the objectives of the NBS,”
she said.
Minister Mupfumira said
workers were free to join the
NBS which would give them
access to mortgages, which
have been pegged at an
interest rate of 9.5 percent
per annum, the lowest on the
market.
The NBS, which currently
has branches in Harare and
Bulawayo, has said it will
embark on at least one or
two housing projects this
year.
Its target is to have at least
2 000 new housing units
on the market every year.
Before establishment of the
NBS, NSSA has financed
housing projects in major
cities but has also sank pen-
sioners funds in other failed
projects, losing millions of
dollars.- New Ziana.●
5 news
NBS to take over NSSA land bank

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8. By Funny Hudzerema
HARARE –The Reserve Bank
of Zimbabwe has engaged
the Confederation of Zim-
babwe Retailers to come up
with solutions to mop large
amounts of cash which are
circulating in the informal
sector.
Currently a total of $7 billion
is estimated to be circulating
in the informal sector, which
is being accused of external-
ising cash since the money is
not being banked.
CZR president Mr Denford
Mutashu said lack a proper
data base for the retail sec-
tor has resulted in large of
sums of money circulating in
the sector and cash exter-
nalisation as most shops are
getting importing the goods
that they sell.
“The RBZ asked the CZR to
come up with proposal on
how it can help mop up the
estimated $7 billion that is
circulating in the informal
sector.
“As CZR we want to create a
data base for shops oper-
ating the informally so that
they are accountable and pay
tax which will aid economic
growth,” he said.
“We are going to work with
RBZ and local banks to install
POS machines around the
country which will promote
the use of plastic money and
reduce cash externalisation
and cash crisis which the
country is experiencing.
“We are also lobbying for
Government to introduce a
less punitive tax regime for
the informal sector like $50
per month which will assist
in formalising the sector,” he
said.
The RBZ assured CZR that it
will introduce a desk to deal
with CZR issues promptly.
He added RBZ said that it
is committed to assist in
capacitating and funding the
activities of CZR.
.●
8 news
RBZ, retailers to mop up unbanked monies

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11. HARARE -Africa needs to
increase its investment in sci-
ence and technology to become
more efficient and competitive
in agriculture and reduce costs
of importing food, an expert has
said.
In a statement, African Develop-
ment Bank president Akinwumi
Adesina said the continent had
great potential which needed to
be unlocked.
“Africa’s potential that requires
being unlocked is massive as it
has 65 percent of the world’s
arable land,” he said.
“But Africa cannot eat potential.”
According to the United Nations
World Population Prospect Report
of 2015, at least 2,4 billion
people are projected to be added
to the global population between
2015 and 2050, with 1,3 billion in
Africa alone.
This means if Africa realises the
potential, it will feed over nine
billion by 2050.
“What Africa does with agricul-
ture has far reaching impact
beyond the region. It will shape
the future of food in the world
that is why greater investment
in the space is a pre-requisite,”
added Adesina. He also lamented
that Africa’s agriculture sector
had been looked at, in the past,
as developmental and part of the
social sector.
“This approach has not been
helpful, the focus has always
been viewed in terms of manag-
ing rural poverty and not wealth
creation,” he added.
“This sector accounts for about
60 percent in the labour force in
many African economies barely
contribute much in terms of reve-
nue for governments.”
Adesina said the high level of
poverty in many rural communi-
ties demonstrated that there was
much lip service being paid.
“Africa spends $35 billion dollars
in importing food; it is projected
that the figure will grow to $110
billion US dollars by 2025.
Africa is importing what it should
be producing, creating poverty
within Africa and exporting jobs
to other continents,” he said.-
New Ziana.●
Africa spends $35 billion importing food
11 news
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14. HARARE -The ZSE opened
the week on a positive note
as the mainstream indus-
trial index opened the week
higher at 93.96 after gaining
0.57 with marginal gains in
Delta, Padenga and BAT lift-
ing the bourse.
BAT was up by $0,0500
to $12,0000, while bev-
erages giant Delta added
$0,0148 to trade at $0,5348
and Padenga was $0,0006
stronger at $0,0762.
Colcom was marginally up by
$0,0002 to settle at $0,1632
and CBZ inched up $0,0001
to $0,1100.
Trading in the negative ter-
ritory was Old Mutual which
eased $0,0269 to trade at
$2,2857 and Edgars came off
$0,0050 to close at $0.0480.
Meikles lost $0,0020 to trade
at $0,0700 while Barclays
shed $0,0005 to settle at
$0,0188.
The mining index was flat
at 26.24 as Bindura, Fal-
gold, Hwange and RioZim
all remained unchanged
on previous price levels at
$0,0120, $0,0050, $0,0300
and $0,1700 in that order -
BH24 Reporter ●
Industrials open on a positive
14 zse

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17. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Delta 2.84 53.48 Edgars -9.43 4.80
Padenga 0.79 7.62 Meikles -2.77 7.00
BAT 0.41 1,200.00 Barclays -2.59 1.88
Colcom 0.12 16.32 Old Mutual -1.16 228.57
CBZ 0.01 11.00
Index Previous Today Move Change
Industrial 93.39 93.96 +0.57 points +0.61%
Mining 26.24 26.24 +0.00 points +0.00%
17 zse tables
ZSE
Indices
Stock Exchange
Previous
today

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20. 20 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
20 June 2016
Energy
(Megawatts)
Hwange 360 MW
Kariba 565 MW
Harare 30 MW
Munyati 0 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1193MW
22 JUNE 2016 -- Zimre Holdings Limited 18th Annual General Meeting; Place: NICOZDIAMOND Auditorium, 7th Floor Insur-
ance Centre, 30 Samora Machel Avenue, Harare; Time: 1430 hours...
22 JUNE 2016 -- GB Holdings Limited Annual General Meeting; Place: Cernol Chemicals Boardroom, 111 Dagenham Road, Wil-
lowvale, Harare; Time: 11.30 hours...
23 JUNE 2016 -- Zimpapers 89th Annual General Meeting; Place: Zimpapers Ltd Boardroom, Sixth Floor Herald House, Cnr. G.
Silundika/Sam Nujoma Street, Harare; Time: 1200hrs…
24 JUNE 2016 -- Dawn Properties Annual General Meeting; Place: Great Indaba Room, at the Monomotapa Hotel, 54 Parklane,
Harare on Friday; Time: 10:00 hours...
22 JUNE -- Lafarge Cement Zimbabwe Annual General Meeting; Place: Manresa Club, Arcturus Road, Harare; Time: 10:30hrs
30 JUNE -- African Sun Annual General Meeting; Place: Inyangani Room, ground floor at Holiday Inn Harare, Corner 5th
Street and Samora Machel Avenue; Time: 12:00hrs
THE BH24 DIARY

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24. JOHANNESBURG - South
Africa's rand strengthened
as much as 1,3 percent
against the dollar on Mon-
day, buoyed along with
other emerging market cur-
rencies by lessening fears of
Britain voting to leave the
European Union.
It rallied to 14,9900/dollar,
its strongest for a week,
and was up 1,2 percent at
15.0100 by 0644 GMT, com-
pared with Friday's close of
15,1950, as investors' appe-
tite for risk improved.
The rand took its cue from
Asian markets which gained
across the board as opinion
polls showed the campaign
to keep Britain in the EU
had recovered momentum.
The referendum is on Thurs-
day.
"EM currencies are strength-
ening this morning on the
back of the new Brexit
polls," Standard Bank said
in a note.
"The rand has strengthened
to trade around 15,00, look-
ing set to break below this
level today."
Government bonds ticked
higher, and the yield on the
2026 benchmark dipped
half a basis point to 9,06
percent.
South African stocks also
looked set to open firmer
at 0700 GMT, with the JSE
exchange's Top-40 futures
index adding 1,3 percent
- Reuters●
24
Rand firms as easing Brexit risk buoys emerging currencies
regioNAL News
JOHANNESBURG - South
African mobile phone
operator MTN named
Vodafone European clus-
ter head Rob Shuter as
its new chief executive on
Monday.
Shuter, who will start
no later than July 2017,
replaces Sifiso Dabengwa,
who resigned last Novem-
ber after a $5,2 billion
fine in Nigeria exposed
corporate governance
flaws at Africa's biggest
mobile phone operator-
Reuters●
MTN names
Vodafone Europe
head as new CEO

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28. Oil gained for a second day
above $48 a barrel as the
dollar retreated, boosting the
appeal of commodities priced
in the US currency.
Futures rose as much as 1,3
percent in New York after
climbing 3,8 percent Friday.
The Bloomberg Dollar Spot
Index fell for a fourth day
after closing at the lowest
since June 9. Russian Presi-
dent Vladimir Putin is consid-
ering selling part of oil pro-
ducer Rosneft OJSC to China
and India as he struggles to
meet spending commitments
before a possible re-election
bid in less than two years.
Crude has advanced more
than 80 percent from the
lowest level in 12 years as
disruptions from Nigeria to
Canada and falling output in
the US trim a global glut.
The UK entered the final
week of campaigning ahead
of its referendum on Euro-
pean Union membership that
is being watched by govern-
ments and investors around
the world amid worries a
so-called Brexit would spark
a wave of turmoil across
global markets.
Bottom of Form
“The biggest factor this
week may well be currency,
particularly given the uncer-
tainty around the Brexit
vote,” Michael McCarthy,
a chief strategist at CMC
Markets in Sydney, said by
phone.
“The widely shared view that
the market will be balanced
by the end of the year is
keeping a bit of support in
place. Oil above $50 will
tempt the highly agile US
shale producers back into
action, so that should keep a
cap on prices.”
West Texas Intermediate for
July delivery, which expires
Tuesday, rose as much as
61 cents to $48,59 a barrel
on the New York Mercantile
Exchange and was at $48,46
at 2:06 p.m. Hong Kong
time. Total volume traded
was about 28 percent below
the 100-day average. The
more-active August contract
gained as much as 63 cents
to $49,19 a barrel.
Rosneft Sale
Brent for August settlement
climbed as much as 57 cents,
or 1,2 percent, to $49,74 a
barrel on the London-based
ICE Futures Europe
exchange. The contract
advanced $1,98 to $49,17 on
Friday. The global benchmark
crude was at a premium of
55 cents to WTI for August.
Russia is seeking buyers for
19,5 percent of Rosneft and
would prefer a joint deal
with the two nations leading
the growth in global energy
demand, two people famil-
iar with the matter said.
Officials in Moscow expect
to raise at least 700 billion
rubles ($11 billion) from
the sale, which would set a
privatization record for the
country.
. – Bloomberg●
28
Oil advances for second day above $48 as dollar extends decline
internatioNAL News

29. By Aurther Shoko.
PayPal, the American online
money transfer, is undoubt-
edly a global online transac-
tions giant. According to its
own account has 179 million
accounts drawn from 190
markets.
In 2014 it gave Zimbabweans
a glimmer of hope by lifting
what, by all definitions, was
an embargo on Zimbabwe by
starting to allow accounts
with Zimbabwean cards and
bank accounts.
Two years later Zimbabwe is
still not fully plugged in into
all PayPal features. Things
don’t look good either.
In view of the current cash
crisis in Zimbabwe I thought
I would revisit PayPal’s sta-
tus on the Zimbabwean mar-
ket and share an update.
To make things easy I
developed a Q & A approach
to hopefully capture what
I think are the key issues
to be aware of concerning
PayPal and Zimbabwe in June
2016.
Why is PayPal such a big
deal?
PayPal is a big issue because
it is dominant player. Millions
of websites worldwide, many
of them exclusively, use Pay-
Pal to receive payments.
This means potential buyers
or customers from markets
without PayPal cannot make
purchases on such websites.
So the gust is both on the
potential customer and the
business, but mostly against
the customer from a country
without PayPal (as Zimba-
bwe was before June 2014),
because most countries now
have PayPal.
PayPal is also a big deal
because it gives extra secu-
rity when shopping online.
Card fraud remains a major
issue across the internet.
By using PayPal you won’t
have to reveal your card
details at every online mar-
ketplace.
You simply pay using the ser-
vice and only PayPal knows
your card details as opposed
to as many sites as you shop
from knowing your details.
This bit is covered for Zimba-
bwe since we can now open
accounts and shop online
using PayPal.
What is the current status
of PayPal in Zimbabwe?
Nothing much has changed
since June 2014 when PayPal
became available in Zimba-
bwe and nine other countries
including Nigeria.
Zimbabwe domiciled users
can still open accounts using
local addresses and send
money to other PayPal users
that can receive money or
buy online on marketplaces
or stores accepting PayPal as
a payment method.
In a nutshell PayPal remains
consumer (outgoing) and not
business (incoming) oriented
service for Zimbabwe.
What does a full feature
PayPal service look like?
When PayPal is at its best as
is the case in Botswana or
South Africa, businesses can
open merchant accounts to
receive payments locally and
abroad via PayPal.
This also applies to solopre-
neurs who may want to sell
single items or run a per-
sonal store on a blog or on
marketplaces such as eBay,
for example.
Peer to peer money trans-
fers are also possible within
the same market. At the
moment, since Zimbabwe
cannot receive money via
PayPal in the first instance,
PayPal account holders
in Zimbabwe cannot send
money to other Zimbabwe
PayPal account holders. ...
To be continued ..
– TechZim●
29 analysis29 analysis
Zimbabwe’s incomplete PayPal experience adds to cash crisis frustrations