A digital copy of the Business News 24 (04 May 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. News Update as @ 1530 hours, Monday 04 May 2015
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Exiting Lafarge FD to be replaced by Zimbabwean in the Diaspora
By Tawanda Musarurwa
HARARE-The finance director post
at Lafarge Cement Zimbabwe that
has been vacated by Mr Farai Matan-
hire with effect from the end of last
month, will be taken up by a Zimba-
bwean who has been based outside
the country, the company has said.
"We can confirm that a replacement
for Farai Matanhire has since been
appointed. He is a Zimbabwean
working outside the country who has
decided to return," said the compa-
ny's public relations manager Mrs
Precious Chitapi, skating identifica-
tion of the new FD.
Mr Matanhire's exit is one of several
management changes at Lafarge
over the last couple of years, includ-
ing the replacement of Mr Johnathan
Shoniwa by an expatriate Mr Amal
Tantawi as chief executive officer. This
has raised concerns, especially with
the Affirmative Action Group (AAG),
that Lafarge has "virtually fired all
black managers and has replaced
them with white managers."
However Lafarge has responded by
saying that no manager has been
fired."Lafarge has never fired any
of its top management. Those who
have left, did so, on their own accord
or negotiated their way out, to pursue
personal interests."
Mrs Chitapi on the departure of Mr
Matanhire said:"(Mr) Matanhire is an
active member of the executive com-
mittee team whose contribution will
always be appreciated. After work-
ing for the business for ten years,
he decided to leave Lafarge to pur-
sue personal interests. His departure
from Lafarge was mutually agreed
and he leaves the organisation with
a negotiated package. Discussions
relating to his departure have been
ongoing since November 2014...,"
she said.Contrary to allegations by
the AAG, Lafarge said it maintains a
largely indigenous executive man-
agement structure, with five of the
eight current executive managers
being Zimbabwean.
The French-headquartered Lafarge
Cement Zimbabwe was established
in the country in 1956.●

2. BH24

3. 3
By BH24 Reporter
HARARE-Embattled Telecel Zim-
babwe's employees have said the
decision by the Postal and Telecom-
munication Regulatory Authority of
Zimbabwe (POTRAZ) to close the
operations of the mobile network
operator will hinder them from ben-
efitting from the mobile telecoms
operator's proposed indigenisation
plan.
Last week, POTRAZ revoked Telecel's
licence and ordered them to cease
operations "within 30 days".
The company's employees have now
come out and said POTRAZ's rejec-
tion of Telecel's indigenisation plan
will hurt them.
"It has also come to our attention
that POTRAZ in coming up with a
determination to cancel the Licence,
has rejected Telecel Zimbabwe’s indi-
genisation plan of ceding a 11 per-
cent shareholding to an Employee
Share Ownership Trust (ESOT) as a
way of regularising the shareholding
structure.
"As native Zimbabwean employees,
we will be severely affected by this
decision to immediately close the
operations with no tangible rem-
edy being provided to workers by
POTRAZ," said the employees in a
statement today.
In terms of the proposed indigeni-
sation plan, it is believed that par-
ent company, Vimpelcom had pro-
posed to transfer 11 percent of the
company to Telecel's Zimbabwean
employees.The employees said
beyond the rejection of the indige-
nisation plan, Telecel's closure will
have an impact on them in terms
of job losses, and could have wider
repercussions with respect to down-
stream players.
"We therefore would like to appeal
to the Government of Zimbabwe to
seriously re-consider the decision to
cancel Telecel Zimbabwe’s Licence.
"It is common cause that such a
decision will have a profound neg-
ative impact not only on Telecel’s
+/-1000 employees but also on
the nation as jobs, business, and
revenue to the fiscus will be lost if
this decision is seen through," they
said."Downstream our business
partners, suppliers, airtime vendors,
airtime dealers, agencies and the
social projects we support will also
be adversely affected."●
POTRAZ's rejection of Telecel indigenisation plan damaging: Employees
BH24

4. 4 BH24

5. 5 ANALYSIS5 NEWS
BH24Reporter
Harare-Zimbabwe Platinum Holdings
(Zimplats) has appointed South Africa's
former Minister of Safety and Security Dr
Sydney Mufamadi as a non-executive
director on its board, with effect from the
beginningofthismonth.
Dr Mufamadi has also held the post of
SA's Minister of Provincial and Local Gov-
ernment."Zimplats Holdings Limited is
pleased to announce the appointment
of Dr Sydney Mufamadi as a non-exec-
utive director of Zimplats Holdings Lim-
ited with effect from 1 May 2015," said
the company's CEO Mr Alex Mhembere
in a statement last week. Dr Mufamadi
was initially appointed as an independ-
ent non-executive director of Zimplats'
SA-headquartered parent company,
ImpalaPlatinumHoldingsLtd,on5March
2015.Dr Mufamadi holds an MSc Degree
and a PhD Degree from the University of
London’s School of Oriental and African
Studies.
"He distinguished himself in various
leadership positions that he has held in
the past, including being the Minister of
Safety and Security as well as the Min-
ister of Provincial and Local Government
intheRepublicofSouthAfrica,"readsthe
statement.
Currently, Dr Mufamadi is the director of
theSchoolofLeadershipattheUniversity
ofJohannesburg.
Heservesonthesubsidiaryboardsofthe
Barclays Bank Africa Group in Mozam-
biqueandTanzania.
And he is renowned for his mediation
and conflict resolution skills as well as his
expertiseinbilateralandmultilateraldiplo-
macy.●
Zimplats appoints ex-SA minister to board
DrSydneyMufamadi

6. 6 BH24

7. 7 NEWS7 NEWS
Zim urged to fast-track establishment of Special Economic Zones
Harare– The Government should
hasten the establishment of Spe-
cial Economic Zones (SEZs) to aid
industrial revival and economic
growth, a senior Government offi-
cial has said.
Economic Planning permanent sec-
retary Dr Desire Sibanda said the
Government should move swiftly to
establish the economic zones.
“We have talked a lot about it
(establishment of SEZs) and it is
now time for action. The budget
presented by the Minister of
Finance Patrick Chinamasa actually
gives us a deadline to have put in
place the SEZ Act by mid-year,” he
said.
Dr Sibanda said without the ena-
bling Act, it would be difficult to
attract investors.
“So we hope by the time of the
deadline, we would have put the
Act together,” he said.
The Government has identified the
establishment of SEZs as a strat-
egy to boost economic growth and
development under its five-year
economic policy the Zimbabwe
Agenda for Sustainable Socio-Eco-
nomic Transformation (ZimAsset).
SEZs are designated geographical
areas that operate under different
economic rules from the rest of
the economy. The Government has
identified the second largest city,
Bulawayo among the first SEZs to
be established in the country.
Analysts have commended Zim-
babwe for initiating the process to
establish SEZs, saying these would
assist in improving the invest-
ment climate. African Countries
that have used the SEZs strategy
include Mauritius, Zambia, Algeria,
Nigeria and Ethiopia.
The regions, which could be in the
form of free trade zones, indus-
trial parks and free zones, could
be used as starting points for
national development. However,
key challenges faced in most Afri-
can SEZs include infrastructure,
zone management and continuity
in instances where governments
had changed.- New Ziana●
Dr Desire Sibanda

8. BH24

9. HARARE - The ZSE's industrial
index extended losses by a addi-
tional 0.14 (or 0,09 percent) to
close at 156.26 as volumes con-
tinue to be subdued .
Retail giant OK Zimbabwe dropping
a cent to close at 10 cents, while
ZBFH led the top fallers slipping
16,39 percent to 2,50 cents.
Heavyweights beverages producer
Delta and telecoms firm Econet
traded unchanged at 105 cents and
49 cents, respectively.
On the upside, clothing retailer Tru-
worths' stock bumped 0,70 cents
to trade at 1,80 cents, while RTG
gained 0,30 cents to 1,50 cents.
Dairibord Zimbabwe moved up
0,20 cents to close at 8 cents.
Although volumes traded thin,
trades in Seedco, Old Mutual and
Econet propped up the market,
pushing the value of trades to $206
628. Meanwhile, the local bourse
has announced that Astra Indus-
tries - which obtained approval
from the Zimbabwe Stock Exchange
and the Securities Commission of
Zimbabwe to be delisted - will be
removed from the ZSE official list
with effect from 1600 hours today.
The mining index was flat at 42.93
points as Bindura, Falgold, Hwange
and RioZim all maintained previ-
ous trading levels at 4 cents, 0,40
cents, 3,50 cents and 6 cents,
respectively. - BH24 Reporter●
9 ZSE REVIEW
Equities end short week on low

10. REGIONAL NEWS10
The rand ended a two day los-
ing streak on Monday, although
downside risks were in focus after
China, a key importer of South
African commodities, released
weaker than expected manufac-
turing data.
By 0655 GMT the rand traded at
12.0400 against the greenback,
0,12 percent stronger than its Fri-
day close in New York.
Government debt prices fell, with
the yield on the benchmark instru-
ment maturing in 2026 adding 4.5
basis points to 8 percent.
Traders and analysts said the local
unit was likely to turn weaker --
extending last Thursday and Fri-
day's losses -- after data showed
China's factory activity suffered
the fastest drop in a year in April.
"The rand and local bonds remain
under considerable pressure from
the run on global bonds and the
risk is for a further sell-off this
week in what is likely to be vol-
atile trade," RMB market analyst
John Cairns said. - Reuters●
South Africa's rand slightly firmer

11. 11 ZSE
ZSE
MOVERS CHANGE TODAy PRICE USC SHAKERS CHANGE TODAy PRICE USC
AFDIS -20.00 40.00
RTG -20.00 1.20
DAWN -6.25 1.50
NATFOODS -5.06 300.00
MEIKLES -3.33 8.70
INNSCOR -0.01 59.00
INDICES
INDEx PREVIOUS TODAy MOVE CHANGE
INDUSTRIAL 156.26 155.38 -0.88 POINTS -0.56%
MINING 42.93 42.93 0.00 POINTS 0.00%
Stocks Exchange
TODAY
PREVIOUS

12. 12 DIARy OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
24 April 15
Energy
(Megawatts)
Hwange 442 MW
Kariba 614 MW
Harare 30 MW
Munyati 29 MW
Bulawayo 26 MW
Imports 0 MW
Total 1153 MW
4 May 2015 - Zimplow Holdings' Sixty Fifth Annual General Meeting of shareholders;
Place: Zimplow Holdings Head Office, Northend Close, Northridge Park, Borrowdale; Time:
10:00 hours
THE BH24 DIARy

13. European bonds fell, extending
last week’s selloff, and the euro
weakened from near a three-
month high. Chinese shares
climbed as a bigger-than-esti-
mated drop in a private manu-
facturing gauge spurred stimu-
lus speculation.
The yield on 10-year notes from
Spain surged 13 basis points by
9:14 a.m. in Frankfurt, while
the rate on Italian bonds added
11 basis points and similar
German bunds paid 0.376 per-
cent. The euro weakened 0,3
percent and the Stoxx Europe
600 Index was little changed.
The Shanghai Composite Index
climbed 0,9 percent as the final
April Purchasing Managers’
Index from HSBC Holdings Plc
and Markit Economics fell to
48.9, the lowest in a year. Gold
climbed 0,4 percent. US oil was
little changed.The euro capped
its sixth advance in seven
weeks Friday as bonds from the
region slumped, sending yields
soaring on signs that European
Central Bank asset purchases
may be helping to quell disinfla-
tion. Property stocks led gains
in Shanghai amid speculation
the government will increase
monetary stimulus, with a com-
mentary in the China Securities
Journal saying second-quarter
economic growth will slow to
6,8 percent.
“Basically, this all points to
more easing ahead,” said Helen
Lau, a metals and mining ana-
lyst at Argonaut Securities
Ltd. in Hong Kong. “The slow-
ing growth in China is going
to weigh on growth elsewhere.
Restructuring is still going on,
so the recovery will not be
immediate.”
Equity Losses
About $501 billion was wiped
from global equity markets last
week. The Standard & Poor’s
500 Index slipped 0,4 percent
in the five days through Friday
and the Stoxx Europe 600 Index
plunged 3,4 percent, the big-
gest such drop this year.
More than half the indus-
try groups on the Stoxx 600
climbed today. Syngenta AG
surged 9,7 percent after people
familiar with the matter said the
company has been approached
by Monsanto Co., the world’s
largest seed company, about a
takeover.
China’s factory reading missed
the median estimate of 49.4
in a Bloomberg survey and
was lower than the preliminary
reading of 49.2. Numbers below
50 indicate contraction. The
deterioration contrasts with the
official manufacturing PMI for
April that suggested a stabili-
zation.
Manufacturing gauges for Tai-
wan, South Korea and Indone-
sia showed contraction Mon-
day, while an index from India
signaled a slower expansion.
A Swedish PMI rose more than
estimated, while other Euro-
pean gauges are also due.
Japan, Thailand, Malaysia,
India and the UK are closed for
holidays. - Bloomberg●
13 INTERNATIONAL NEWS
Europe bonds extend drop as Euro slips

14. Southern African leaders have
approved a strategy and roadmap
to promote industrialisation in the
region in a move meant to ensure
member states harness the full
potential of their vast and diverse
natural resources.
The Southern African Develop-
ment Community (SADC) Extraor-
dinary Summit said the Industri-
alisation Strategy and Roadmap is
anchored on three pillars, “namely
Industrialisation, Competitiveness
and Regional Integration.”
“Summit approved the SADC
Industrialisation Strategy and
Roadmap and reaffirmed the
importance of industrial develop-
ment in poverty alleviation and
the economic emancipation of the
people of the region,” read a com-
munique issued at the end of the
summit held in Harare on March
29.The message from the summit
was clear — southern Africa has
the capacity to become a domi-
nant force in global affairs if the
region adds value to its vast nat-
ural resources before exporting
them.
President Mugabe said the strat-
egy will ensure that the SADC
region fully benefits from its vast
natural resources. At present,
SADC member states are getting
very little in return since their
resources are usually exported in
their raw form, with most of the
value-addition and beneficiation
taking place outside the region,
thus benefiting other countries.
“Our region is endowed with
abundant and diverse natural
resources,” said President Mug-
abe, who is the SADC chairperson,
adding that the mineral sector, for
example, contributes about 55
percent of the world diamond pro-
duction while the platinum group
of metals contribute about 72 per-
cent.
“But alas, despite the rich and
diverse endowments of our
region, about 70 percent of our
people continue to live below the
poverty datum line,” he said.
14 ANALYSIS
Huge step towards economic liberation as SADC approves industrial strategy
14 ANALySIS

15. 15 ANALYSIS15 ANALySIS
He said it is, therefore, impera-
tive for the region to address this
disparity to allow SADC countries
to use their natural resources to
finance socio-economic develop-
ments in the region.
“It is only through adding value
to our products that we can make
the first step. If we continue as
net exporters of raw materials, we
are sure to remain trapped in the
jaws of underdevelopment, while
those who add value on our behalf
flourish at our expense,” he said.
The strategy, whose drafting
was spearheaded by a team of
regional and national consultants
appointed by the SADC Secre-
tariat, covers the period 2015-
2063, and aims to provide the
framework for major economic
and technological transformations
at the national and regional lev-
els within the context of deep-
ening regional integration.“I am
confident that the strategy, if
implemented effectively, has the
potential of unlocking opportuni-
ties beyond our borders, leading
to sustained economic growth and
development,” President Mugabe
said.
He noted that during the imple-
mentation phase, it will be impor-
tant for the region to focus more
on key enablers such as infra-
structure development, energy,
as well as research and develop-
ment to enhance the effectiveness
of the strategy.With regard to the
financing model for the strategy,
it is imperative for SADC to work
out an effective mechanism to
fund the action plan, President
Mugabe said.
“We cannot expect those who
benefit from our status as export-
ers of raw materials to fund our
efforts to wean ourselves from the
unequal relationship, a relation-
ship in which they have the pre-
rogative of dictating the terms of
trade,” he said.
“Just as we were our own liber-
ators from the colonial bondage
and oppression, we have to find
the resources to free ourselves
from economic bondage. In short
we have to fund our industrialisa-
tion strategy.”
SADC Executive Secretary Dr
Stergomena Lawrence Tax con-
curred, saying that it was criti-
cal for all stakeholders to work
together in implementing the
strategy.She said it is encouraging
that the private sector has already
shown its commitment to support
governments to boost socio-eco-
nomic development in the region.
“I am happy to inform you that
the private sector is already gear-
ing itself up to walk the journey of
industrialization of the region with
a conference that is taking place
in the margins of this summit.
Such efforts are commendable
and encouraged,” she said.
“I am hopeful that with this
spirit, the region has been set
on the right path for growth and
development. We look forward to
continued commitment by mem-
ber states in the creation of an
enabling environment, including
the provision of the necessary
resources and capacities as criti-
cal success factors for the imple-
mentation of our strategy.”
She said development of the strat-
egy has been instructive in final-
izing the Revised Regional Indic-
ative Strategic Development Plan
(RISDP), which was also approved
by the extraordinary summit.
The RISDP is a 15-year strategic
plan approved by SADC leaders in
2003 as a blueprint for regional
integration and development.
The plan has been under review
as part of efforts to realign the
region’s development agenda in
line with new realities and emerg-
ing global dynamics, and has
now taken into account issues of
industrialisation.
The SADC Extraordinary Summit
is a follow-up to 34th SADC Sum-
mit held in August 2014 that man-
dated the Ministerial Task Force on
Regional Economic Integration to
develop a strategy and roadmap
for industrialisation in the region.
The theme for the 34th SADC
Summit was “SADC Strategy for
Economic Transformation: Lev-
eraging the Region’s Diverse
Resources for Sustainable Eco-
nomic and Social Development
through Beneficiation and Value
Addition.” - Sardc.net●