A digital copy of the Business News 24 (28 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, Monday 28 July 2014
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Belgium based Antwerp World Dia-
mond Centre (AWDC) is among the
close to 200 companies that partic-
ipated at this year’s edition of the
Zimbabwe prime mining exhibition,
Mine Entra, as it sought to nurture its
relations with the country, an official
has said.
Zimbabwe has held two diamond auc-
tions at Antwerp since last year where
it raked in a combined $80 million.
But the country has not committed
to continued auctioning of its gems at
Antwerp as it seeks to maximize its
mineral value by exploring alternative
markets such as the Dubai Diamond
Exchange where one sale was con-
ducted early this year.
The move has put Antwerp, which
wants to be the sole auctioneer of the
country’s gems, under pressure to lure
Zimbabwe to commit to selling its dia-
monds in Belgium.
Antwerp chief executive Ari Epstein
said the global diamond centre was
participating at the exhibition in Bula-
wayo, which ran from July 23-25, for
the first time. The exhibition was held
under the theme, “Innovation, Benefi-
ciation Growth”.
“By participating in this event the Ant-
werp World Diamond Centre wishes to
reaffirm its strong commitment to the
sustainable development of the Zimba-
bwe mining industry to ensure a long
term benefit for the country’s econ-
omy,” said Epstein in a statement.
He said Antwerp remained “an opti-
mal market for Zimbabwean rough
diamonds due to the large number of
potential buyers located in the city.”
About 1 700 diamond companies
operate in Antwerp.
Epstein said improvements in prices of
diamondsatthelastauctionZimbabwe
conductedinFebruarywerepositivefor
local miners.
“The greatly improved prices have had
an overall positive impact on the mar-
ket, the local mining revenues and the
increasing demand for transparency in
the market,” he said.
“These higher revenues are a crucial
element for the sustainable social and
economic development of Zimbabwe.”
― New Ziana •
Antwerp at Zim’s Mine Entra

2. BH24

3. By Funny Hudzerema
The government has called on small-
holder farmers to increase the pro-
duction of small grains to boost food
security in semi-arid regions and the
country as a whole.
In a speech on his behalf at the Agri-
cultural Biodiversity Stewardship and
Award presentation ceremony in
Uzumba Maramba Pfungwe last week,
Minister of Agriculture Joseph Made
said smallholder farmers play a crit-
ical role in developing crop varieties
which suit their climate to produce high
yields.
“These indigenous crops and crop
varieties are making significant contri-
bution to household food and nutrition
security. The same crops have great
potential and can make important con-
tribution towards making Zimbabwe
re-establish its Food Basket status for
the Sadc region a reality again if addi-
tional support and market incentives
are clearly defined,” he said.
He said government would promote
conservation and sustainable utilisa-
tion of the crops grown in the country.
The award ceremony sought to iden-
tify farmers from Tsholotsho, Chiredzi,
Goromonzi, Murehwa, Mutoko and
UMP who promote agricultural bio-di-
versity.
Thefarmershavedevelopedtheirland-
less farmer varieties in different crops
which include rapoko, sorghum, maize
and wheat to suit their areas.
Community Technology Development
Organisation director, Andrew Mush-
ita said government must empower
people to develop their own seeds to
savemoneyspentonpurchasingseeds
every year.
“Theroleofsmallholderfarmersinseed
saving is a crucial part of their learning
and contributes to the preservation of
indigenous knowledge that supports
local foods reliant on traditional breeds
and varieties that bring clear and wider
food security and environmental bene- fits,” he said. •
3 NEWS
Small grains to boost food security: Made
Minister Made

4. AdM-DI156506-
BH24

5. 5 NEWS
By Lynn Murahwa
The Ministry of Tourism and Hospitality
Industry has misused over $ 300 000
that was originally allocated to 9 sep-
arate projects since the beginning of
the year.
According to evidence presented to the
parliament portfolio committee on Pub-
lic Accounts this morning, the Ministry
diverted the funds without approval
from treasury.
Bulawayo South MP Eddie Cross said
the money was spent on unnecessary
goods and services.
"This year the Ministry has misallo-
cated funds over $336 000 that were
meant for nine budgeted programs
but was instead spent on business ser-
vices, maintenance and the acquisition
of extra capital assets. “The Auditor
General has said these misallocations
were conducted deliberately, auditors
do not use that kind of language lightly.
You did not have treasury approval for
this reallocation of resources and this
means you have an officer working for
the Ministry who was responsible for
the deliberate misallocation of budget
resources," he said.
The committee also accused the Minis-
try of failing to adhere to statutory reg-
ulations by failing to respect the Audi-
tor General by not submitting financial
statements since 2011.
The Ministry of Tourism has as well
failed to account for up to $56000 in
expenses and advances since 2011
saying it was largely attributed to
under capitalisation and to a glitch in
the Public Financial Management Sys-
tem (PFMS). Responding to questions
from committee members, perma-
nent secretary Florence Nhekairo said
the amount in question could not be
reconciled due to a malfunction that
occurred with the PFMS. "The amount
that is considered to be irreconcilable is
an amount of $56 219, this is the dif-
ference between appropriation account
and the sub PMG bank accounts. This
resulted from the malfunctioning of the
Public Financial Management System
(PFMS) which made it difficult to recon-
cile the figures.
"The PFMS resulted in some of the
transactions failing to go through in
a number of general ledgers even
though there were adequate funds in
the budget. It has since been rectified,
the system is working very well now,"
she said. Nhekairo said the reason why
the Ministry had failed to submit the
financial statements in a timely man-
ner was attributed to it being under-
capitalised.
She said the unavailability of funds has
hindered the Ministry from reconciling
the amounts in question in a timely
manner. "It all boils down to capacity,
at that time there was really no capac-
ity in the Ministry to follow through
what we were supposed to do.
The money levels are very low and
the structure that we normally sub-
mit during the budget period has not
been honoured due to unavailability of
funds," she said. •
Ministry of Tourism misuses $300 000
MP Cross

6. BH24

7. The equities market has maintained
its bearish trends from last week
after it lost a further 0,09 percent in
today’s trade.
Market watchers say the stocks are
likely to maintain the negative trend
until the end of the year due to
weaker economic growth.
The mainstream industrial index lost
was down 0.16 points to close at
183.60 points. HIPPO lost 9.90 cents
to 55.10 cents while TSL retreated by
1.10 cents to close at 25 cents. CBZ
also dropped a cent to trade at 12
cents.
On the upside; TA Holdings gained
1.02 cents to close at 16.02 cents
whilst Innscor and ZB both traded a
cent higher at 75 cents and 7 cents
respectively. Meikles added 0.50
cents to 16.50 cents and First Mutual
moved up 0.49 cents to close at 6.01
cents.
The mining index rose 8.47 points
to close trade at 75.00 points. Bind-
ura was up by a further 0.94 cents
to trade at 6.55 cents while Falgold,
Hwange And Riozim were unchanged
at previous trading levels. ― BH24
Reporter •
7 ZSE REVIEW
ZSE maintains loses

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Tel: 66084, 086 4406 8385, Fax: 68597
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BH24

9. Zimbabwe has been harping on about
regional integration and trade for the
past decade. The thrust of the matter
is to improve Zimbabwe’s relations
with other countries in the region and
remove the trade barriers that make
exporting local products expensive
and onerous. Hence the participation
in such initiatives as the Tripartite free
trade Area agreement.
The proposed TFTA seeks to combine
the existing Southern African Develop-
ment Community, the Common Mar-
ket for Eastern and Southern Africa
and the East African Community.
Further, it seeks to facilitate the con-
struction of transport infrastructure,
ease border crossings and reduce the
administrative burden and transaction
costs of intra-African trade.
We stand to benefit immensely from
such an initiative considering the state
of our transport infrastructure and
congestion at border posts.
However, apart from deadlines that
are always being extended and
reforms that are taking too long to
implement, there is little progress on
the TFTA.
But that does not mean all hope is lost.
Zimbabwe needs to improve trade
so that it can be reintegrated into the
intra-African trade that is the whole
purpose of such initiatives. At the
moment, we receive goods and ser-
vices from other countries under the
agreement but hardly export any. So
we are definitely on the wrong side of
the equation. It will take some work
on our part to reap the benefits of
being part of the TFTA.
As the World Bank rightly put it, Zim-
babwe should diversify its export
basket and avoid primarily relying on
the mining sector to drive economic
growth in the short to medium term.
“Relying principally on mining as a
source of growth is likely to mute the
poverty-reducing effects of growth
without offsetting measures,” read
part of the report commissioned by
the World Bank titled “Trade in Zimba-
bwe: Changing incentives to enhance
competitiveness.” The country has so
much more it can offer to the world,
particularly the Sub-Saharan region,
and it goes beyond minerals.
A vibrant agriculture sector will be the
first step to that revival.
Let’s get our agriculture going then
the value chain will naturally follow.
Industry, which relies on agriculture,
will definitely receive a boost and
those are the same products we need
to export to other countries and utilise
the TFTA.
We also need a tariff regime that
takes into consideration that we are
still a primary importer and will not
benefit much until we start export-
ing. Although government has made
amendments to the tariff system, we
need to ensure that the agriculture
sector is protected until it is back on
its feet.
Although the TFTA is still a dream,
Zimbabwe needs to level its own play-
ing field and be ready for it when it
becomes reality. •
9 BH24 COMMENT
Zim needs trade reforms

10. BH24

11. funding round from 10 angel investors,
which it will use to accelerate growth
by improving its product offering and
hiring customer support staff.
Angels include local businessmen
Mahendra KD Shah, Ravi Shah and
Ritesh Doshi, as well as four 88mph
investors.
“The majority of travellers in Sub-Sa-
haran Africa use the public bus system,
but accessing information on sched-
ules, pricing, availability of seats as well
as acquiring a bus ticket is too tasking
and can take a whole day,” said Francis
Gesora, co-founder and chief executive
officer (CEO) of BookNow.
“This service intends to, and already
is, bringing advantages in speed, infor-
mation, cost and time savings to bus
travellers and the industry.
We have been able to pull together
an investor pool that brings strategic
advantages to BookNow’s operations
through their skills and expertise,
which we are able to draw upon as we
grow and expand.”
The company estimates the bus
industry in East Africato have a mar-
ket value of US$150 million, and says
it is the first startup to bring web and
mobile technologies to the industry. ―
Human IPO •
The National Union of Metalworkers of
South Africa plans to announce today
whether it accepts the latest offer from
employersandendamonth-longwage
strike in the metals and engineering
industries.
“The strike continues,” Numsa General
Secretary Irvin Jim said by phone. The
union will probably announce its deci-
sion at 4 p.m. local time, he said. The
labour action by 220,000 workers is
costing the engineering industry about
300 million rand ($28.5 million) a day,
according to employers.
The Steel and Engineering Industries
Federation of Southern Africa, the big-
gest group of employers that’s known
as Seifsa, offered a 10 percent annual
wage increase for the lowest-paid
workers for three years. Numsa has
rejected a clause in the proposal that
would prohibit unions from debating
employment issues with individual
businesses.
“We are hoping that their internal dis-
cussion will allow us to conclude an
agreement,” Seifsa Operations Director
Lucio Trentini said by phone.
Central Bank Governor Gill Marcus
warned last week about the effects of
awarding of double-digit pay increases
while inflation breached the bank’s tar-
get for a third month. ― Bloomberg
•
11 REGIONAL News
South Africa Metals strike continues as Union decides on offer
Kenya’s BookNow closes $75k funding round

12. BH24

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
28 July 2014
Energy
(Megawatts)
Hwange 351 MW
Kariba 750 MW
Harare 30 MW
Munyati 32 MW
Bulawayo 28 MW
Imports 170 MW
Total 1331 MW
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

14. BH24

15. 15 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
BNC 16.75 6.55 CBZ -7.69 12.00
ZB 16.66 7.00 Hippo Valley -15.23 55.10
starafricacorporation 11.11 1.50 TSL -4.21 25.00
First Mutual 8.87 6.01
TA Holdings 6.80 16.02
Masimba 5.26 2.00
Meikles 3.12 16.50
Padenga 2.04 7.50
Innscor 1.35 75.00
Indices
Index Previous Today Move Change
Industrial 184.95 183.76 -1.19 points -0.64%
Mining 61.13 66.53 +5.40 points +8.83%
Stocks Exchange
Previous

16. BH24

17. 17 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 — "There is
only one way to succeed
in anything, and that is to
give it everything." -
Vince Lombardi
Globalshareholder.com

18. BH24

19. China’s Commerce Ministry castigated
the United States on Monday for set-
tingnewimportdutiesonChinesesolar
products, saying Washington’s actions
risked damaging the industry in both
countries.
The US Commerce Department on
Friday placed anti-dumping duties as
high as 165.05 percent on solar panels
and cells from China after a preliminary
finding that the products were being
sold too cheaply in the US market.
The move, which must still be con-
firmed, was the latest in a long-running
solar industry trade spat between the
world’s two largest economies, and
comes on top of anti-subsidy duties
levied last month.
The US side disregarded the facts
in its decision, an unnamed Chinese
commerce official from the trade rem-
edies and investigations bureau said
in a statement posted on the minis-
try’s website. “The frequent adoption
of trade remedies cannot resolve the
United States’ solar industry develop-
ment problems. We hope the United
States can prudently handle this
investigation, quickly end investigation
procedures and create a good environ-
ment for competition in the global solar
industry,” the official said.
Trade friction is unavoidable, but gov-
ernments have a responsibility to pre-
vent it from harming China-US rela-
tions, the official said.
“If escalating problems in the China-US
solar industry are ignored, in the end
it will damage up and downstream
industries in both countries.”
The US arm of German solar manufac-
turer SolarWorld AG is seeking to close
a loophole allowing Chinese producers
to sidestep duties imposed in 2012,
complaining that Chinese manufac-
turers dodged those duties by shifting
production of the cells used to make
their panels to Taiwan. Under Friday’s
preliminary ruling, Taiwanese produc-
ers also face anti-dumping duties of up
to 44.18 percent.
But the Coalition for Affordable Solar
Energy, which represents mainly
installers, said the duties would hinder
the deployment of clean energy by
raising the prices of solar products and
hurting consumers.
The solar industry has suffered in
recent years from a glut of prod-
ucts from China, falling prices and a
withdrawal of consumer subsidies in
Europe, which have squeezed margins
and spawned a rash of trade disputes.
U.S. imports of solar products from
China were worth $1.5 billion in 2013,
half the level of 2011, while imports
from Taiwan more than doubled to
$657 million over the period, according
to US data.
The U.S. Commerce Department will
make its final decision by December
15. The US International Trade Com-
mission is due to make a decision on
whether the imports pose or threaten
injury to US producers by January 29.
•
19 INTERNATIONAL NEWS
China condemns US anti-dumping duties on solar imports

20. JUST why is South Africa contributing
$10bn to the $50bn balance sheet of
a proposed new Brics development
bank?
It is a hefty chunk of change, equiva-
lent to one-third of the capital in South
Africa’s entire commercial banking sys-
tem. It is slightly more than the capital
of our biggest domestic development
financier, the Industrial Development
Corporation, and more than the African
Development Bank’s (AfDB’s) paid up
capital of $7.4bn.
There is no doubt that development
takes finance. Finance Minister Nhlan-
hla Nene has said Africa’s current
infrastructure needs will take $100bn
to fund. With $50bn of capital, plus
leverage raised on international capital
markets, the Brics bank will be able to
fund that and more.
The trouble is the New Development
Bank, as it will be branded, will have
to spend some of its capital on getting
itself off the ground. These infrastruc-
ture costs will, to some extent, be
duplicated. One alternative is the AfDB,
and it already has all that infrastructure
in place. But another way could make
the cost to South Africa minimal, and
it involves using our own Development
Bank of Southern Africa (DBSA). The
Brics bank will have to deliver addi-
tional value for it to be worth the extra
cost.
That value may be political. It is clear
from the Fortaleza declaration of the
Brics summit that announced the
bank’s establishment, that the Brics
members are trying to dilute the power
of the World Bank and International
Monetary Fund (IMF) in the world
economy. The Brics bank will over-
lap the World Bank, but with capital
of $223bn, the 70-year-old Bretton
Woods institution will remain the big
daddy. Diluting the power of the IMF
and World Bank could well be worth
it. World Bank policies of the past had
destructiveconsequencesforcountries’
taking facilities. An alternative source
of funding will give future governments
more flexibility on the conditions they
must submit to. Beyond the political
value, South Africa does not appear to
be getting much else.
The headquarters will be in Shanghai
and the starting three principal execu-
tives of the bank will be Indian, Rus-
sian and Brazilian. Africa is, apparently,
going to be a priority for the new bank
and a regional African office is going to
be opened in South Africa.
The Brics bank needs to avoid duplicat-
ing infrastructure as much as possible.
The way to do that is to tie the Africa
office closely to the DBSA. Last year,
the Treasury decided to inject another
R7.4bn into the DBSA as capital to sup-
port its expansion into a major pan-Af-
rican development funder, alongside
its local commitments. So, there is
an obvious step to take: reconstitute
the DBSA as the African branch of the
Brics bank to ensure minimal duplica-
tion. Doing so will also meet much of
South Africa’s funding commitment to
the new bank, though some cash is
also going to have to go into a parent
balance sheet.
Nene has said the capital South Africa
is contributing will amount only to
about $2bn in cash and be staged over
a number of years. Presumably the
other $8bn will be in the form of guar-
antees on other equity commitments.
The savvy civil servants at the Treasury
have probably already figured this out.
What we will contribute is the DBSA
— or at least its regional activities —
which will be able to get on with what it
is set to do anyway. The Brics bank will
have much better credit ratings than
the DBSA could get.
So, the real effect of the Brics bank
could be to take the DBSA and turn
it into a much weightier player with a
globally potent credit rating, allowing it
to raise cheap finance. The cost of such
a strategy is that South Africa would
have to give up political control of one
of its own important African develop-
ment initiatives. •
20 Analysis
Instead of building new Brics bank, revamp what SA already has

21. In a bid to offset the current housing
backlog repetitive layouts of identical
units with just minimum of outside
space to grow vegetables hardly ade-
quate for self-sustenance are strewn
out over vast acres of land.
The Harare City Council and its con-
stant water problems pledging to
ensure that those small gardens never
see the light of day.
Cabs has been steering the project for
a couple of years now, and the Infra-
structure Development Bank of Zimba-
bwe has just said it will follow suit soon.
Why have we chosen the path of
self-denigration? These constructs….
these units (Mobster can hardly call
them homes – for they are really not)
are so reminiscent of the African town-
ships that our fathers and grandfathers
were forced to dwell in exchange for
their labour, in dramatic contrast to
the capacious gardens of houses in the
European suburbs.
Is this what we have chosen for our-
selves, a perpetuation of poverty? A
perpetuation of an unvoiced repression
(this time self-imposed)?
Because we lack a mind of our own
for changing things, and doing them
in a better way? That’s the case, most
apparently. Just look at the continua-
tion of construction of extensive mul-
ti-storey brick and concrete hostel
blocks – that in the colonial era were
meant to accommodate hordes of
black single male workers.
What’s even worse is that we are now
constructing the same hostels for
proper families.
And then there is the increasing pro-
vision of serviced, semi-serviced and
at times even just arid land for self-
built projects – a clear indication that
the councils have reached their limit
(which, I must say had always been
set dreadfully low).
It’s not because the country is now
facing a liquidity challenge, and we are
now failing to cope. This is what has
always been. It’s just that the council
authorities’ technical incompetency is
now more glaring than ever.
The beauty of freedom is choice, and
choice only exists to the extent that
there are options….
Our world is not just. People do not
necessarily get what they deserve and
necessarily deserve what they get.
It hurts to say, but bad things do hap-
pen to some people on the basis of the
bad decisions other people make.
(Mobster is a Zimbabwean philos-
opher who has an opinion on just
about anything. She however has
a particular liking for business
and economics stuff. However her
opinions are not necessarily rep-
resentative of this platform. You
can send your feedback to her on
mobsterzim1980@gmail.com) •
21 MOBSTER’S MONDAY MUSINGS
A perpetuation of repression