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News Update as @ 1530 hours,Tuesday 8 July 2014
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
By Elita Chikwati
Stakeholders in the coffee industry
have come up with a five-year Zim-
babwe Coffee Sector Development
Strategy to revive and boost coffee
production in former and new growing
areas to improve livelihoods of more
than 50 000 people.
This came after a realisation that cof-
fee production which used to be the
fifth foreign currency earner, was
declining due to consecutive droughts,
limited supplementary irrigation infra-
structure, limited funding, cots of
inputs and lack of expertise among
other factors.
The strategy involves the mainte-
nance of existing coffee plantations,
establishment of 4 700- hectares of
coffee with women and youths par-
ticipation and engaging in value addi-
tion and infrastructure development
among other things.
Officiating at the Coffee Strategy Ver-
ification Workshop recently, Acting
Minister of Agriculture, Mechanisation
and Irrigation Development, Dr Igna-
tius Chombo urged investors to take
advantage of the conducive coffee
growing conditions in Zimbabwe to
partner local coffee farmers for the
realisation of profit and growth of the
economy.
He said Zimbabwe had the ideal cli-
matic conditions and good soils to
grow high quality coffee that could
compete very well worldwide.
“Coffee is an important export crop for
Zimbabwe with tremendous potential
for employment creation and genera-
tion of foreign currency.
“The ministry will provide the nec-
essary policy support to enable the
growth of the coffee sub-sector and
support research and development
including a dedicated extension for the
coffee sector,” he said.
Dr Chombo said the coffee strategy
was in line with the national blue print-
the ZimAsset while it was also being
aligned to the Zimbabwe Agriculture
Investment Plan which is being final-
ised.
“Under both ZimAsset and ZAIP, value
addition is an important component.
This needs to be taken on board as
some of the quick wins together with
market access-issues which remain
major concerns for coffee farmers.
“The value chain approach would
create synergies targeted at improv-
ing livelihoods of all coffee farmers,
including women and youth farmers,”
he said.
Zimbabwe produces Arabic coffee
which is grown mostly in the Eastern
Highlands districts of Chipinge, Chim-
animani, Mutare and Mutasa.
About 630 hectares are currently
under cotton with more than 1 000
households depending on the sector
for their livelihoods.
Zimbabwe exports its raw coffee to
Netherlands, United States of Amer-
ica, Germany, South Africa, Canada,
Australia and Britain with potential
markets in Japan and China. •
Zim develops 5-year strategy to revive coffee industry
Minister Chombo
By Lynn Murahwa
Nissan has partnered with five Zimba-
bwean dealerships in Harare as part of
its new Dealer Direct distribution strat-
egy.
Nissan South Africa has set up a new
Dealer Direct distribution strategy that
will allow the South African branch of
the company to conduct dealing with
the five distributors in Zimbabwe. The
dealerships are Amalgamated Motor
Corporation (AMC), Clover Leaf Motors,
Croco Motors, Golden Stairs Garage
and Amtec Motors. Speaking at the
launch of the partnership this morn-
ing, Nissan Sub Saharan Africa general
manager Jim Dando said the partner-
ship would strengthening the brand
within the country.
"Nissan has experienced significant
growth in the Zimbabwean market and
it now commands 22 percent of the
market.
"There is a growing middle class in
Africa and automotive firms similar to
Nissan are targeting this market. Zim-
babwe is an important market in Nis-
san’s Power 88 Africa growth strategy
aimed at doubling sales and signifi-
cantly increasing market share on the
continent by 2016,” he said.
Dando added that Nissan is set to
release 18 new products in the Zim-
babwean market within the next
four years. "Nissan is set to launch
18 new products between now and
2018. Some of the new products to be
launched include new versions of the
Qashqai and the X-Trail. Nissan will also
bring back the Datsun brand through
the Datsun Go hatchback. The Datsun
Go will be available in Zimbabwe from
November. These new products will all
be released through the five local deal-
ers," he said.
Nissan, however said it will not be
establishing a manufacturing plant in
Zimbabwe because the duty environ-
ment does not support a manufactur-
ing plant.
Clover Leaf Motors chief executive
officer Stanford Sibanda said at the
launch the partnership will improve
relations between the Zimbabwean
and South African motor industries as
well as the experience of Nissan cus-
tomers within the country.
“The new Direct Dealer arrangement
will result in significant benefits to Nis-
san customers in Zimbabwe. Direct
dealings with Nissan South Africa will
result in more competitive prices for
Nissan vehicles, improved service lev-
els for Nissan Customers and a better
understanding of the Zimbabwean
motor market by Nissan South Africa,”
said Sibanda. •
2 NEWS
Nissan extends tentacles into Zim
Datsun Go hatchback
BH24
4 NEWS
Zimbabwe-based gold miner Caledo-
nia Mining has declared its fifth div-
idend payment of one and one half
Canadian cents (0.8p).
In 2014, Caledonia repeated it
intends to pay an annual aggregate
dividend of six Canadian cents (3.3p)
per share, payable in quarterly instal-
ments.
The miner is debt-free and at end
March had cash of $26,7mln held
with its bankers in the United King-
dom, Canada and South Africa.
Caledonia's primary asset is a 49 per-
cent interest in the Gwanda-based
Blanket gold mine in Zimbabwe.
Zimbabwean shareholders in Cale-
donia's primary asset - Blanket mine
- do not benefit from the group's
dividend payments since they are
shareholders in Blanket mine and not
in Caledonia.
Besides the Blanket Mine in Zimba-
bwe, Caledonia also has assets in
South Africa and Zambia. ― BH24
Reporter/Proactiveinvestors •
BH24 Reporter
The new Zimbabwe Mining Devel-
opment Corporation (ZMDC) board
is set to make appointments of sub-
stantive employees by end of August
to make for better decision making
within the organisation, an official
said yesterday.
Minister of Mines and Mining Devel-
opment Walter Chidhakwa dissolved
the ZMDC board, along with the
boards of the Minerals Marketing Cor-
poration of Zimbabwe (MMCZ) and
Marange Resources to make way for
assessment of operations at the three
organisations. ZMDC general man-
ager Jerry Ndlovu was also sent on
special leave in January.
A new board, chaired by David
Murangari, was set up in April.
Addressing a question from parlia-
mentarians on why most executives
were in an acting capacity, acting
general manager Wilson Chinzou said
the company was still in a transition
period but the board would make
appointments soon.
“We have been in a transition period
sincetheboard’sappointmentinApril.
The board is actually going through
process of appointing substantive
individuals in these posts, especially
in management. I hope in the next
month or so we will have more sub-
stantive executives,” he said.
Chinzou replace Ndlovu and has
been acting general manager since
January. He said the acting human
resource manager has been acting
since end of June when the former
HR manager retired. He however said
the post of chief operating officer has
been changing hands from one acting
to another since 2010 and the new
board would address the issue. •
Caledonia Mining Corporation pays out fifth dividend
New ZMDC board to make substantive appointments 'soon'
Minister Chidhakwa
5 AGRICULTURE
By Funny Hudzerema
Tobacco production for the upcoming
2015 season is set to reach new highs
as the number of tobacco growers has
risen 16 percent to 106 455 from 91
278 in the prior season.
Tobacco for the current season has
topped 200 million kilogrammes -
whichisZimbabwe'shighestlevelsince
the beginning of the new millennium -
with indications pointing to even higher
yields next year.
Latest figures from the Tobacco Mar-
keting Industry Board (TIMB) show
that Mashonaland West province has
the highest recorded number of new
tobacco growers for the upcoming
season at 11 713. In that province
communal farmers dominate the new
growers list with 8 294 new growers
while A1 and A2 stand at 1 069 and 1
828, respectively. There are 522 new
small-scale communal tobacco grow-
ers in the province to date.
Mashonaland Central province has
recorded a total of 8 231, with the
majority of them being communal
farmers at 4 682. A2 and A1 recorded
2 114 and 921 respectively. Again for
Mashonaland West, small-scale com-
munal farmers constituted the lowest
figure at 514 new growers.
Manicaland province has the third
highest figure of new growers at 5 465,
the majority being communal farmers
at 3 254, followed by A2 and A1 con-
tributing 1,459 and 560 new growers,
respectively. Small-scale communal
growers for the province currently
stand at 192. Mashonaland East has
4 135 new growers for the upcom-
ing season, dominated by communal
farmers at 2 109, while A2 contributed
1 056 and A1 contributing 701 new
tobacco growers this season. Masho-
naland East's small-scale new growers
are 269.
Midlands’s province has recorded a
total number of 338 new growers in
this year’s growing season, while Mas-
vingo has a total number of 265 new
tobacco growers. As per norm tobacco
planting commences on September 1.
Meanwhile, TIMB says eight contrac-
tors are currently active and continue
to receive tobacco from growers, while
the other eight contractors have either
concluded their 2014 purchases or
are now receiving tobacco on selected
days. Official figures show that con-
tractors' seasonal output now stands
at 157 million kg averaging $3,33/kg.
During the same period last year con-
tractors had purchased 103,3 million
kg at an average price of $3,77/kg.
The total seasonal sales have increased
to 207,5 million kg worth $658 million.
•
Registered tobacco growers up 16%
BH24
7 NEWS
By Oliver Kazunga
Zimbabwe Stock Exchange-listed hos-
pitality concern, African Sun will focus
on foreign markets after it incurred a
$0.77 million loss in the half-year end-
ing March 31, 2014 due to a decline in
local business as liquidity challenges
facing the economy persist.
African Sun said its revenue for the
period under review was $25,33 mil-
lion which is a four percent reduction
from the comparable period last year
of $26,44 million.
“The drop is attributed to a five percent
decline in the depressed Zimbabwe
segment. The group reported a loss for
the period of $0,77 million down from
a profit of $0,91 million last year,” the
group’s chairman Bekithemba Nkomo
in a statement accompanying its
interim results.
“Exceptional costs amounted to
$202,945 relating to a affair value
adjustment and selling costs for the
16,54 percent investment in Dawn
Properties Limited which was classified
as a non-current assets held for sale
during the period under review,”
He said the group’s Earnings, Before
Interest, Taxes, Depreciation and
Amortizations for the period reduced
by 38 percent to $2,17 million from
$3,48 million.
“Thedeclineisattributabletodepressed
revenue performance as well as the
opening of a new hotel in Ghana.
Amber Hotel Accra Airport is still in the
'soft opening phase' and the operating
model is yet to achieve optimum effi-
ciencies. Operating costs increased by
two percent from the same period in
2013 to $16,90 million from $16,61
million.”
He said it is envisaged that the foreign
market would continue to sustain the
group’s Average Daily Rate and Reve-
nuePerAvailableRoomasthedomestic
market was likely to remain depressed
into the next 24 months. “To mitigate
the depressed domestic business, the
group will leverage on its aggressive
selling of the foreign market improving
arrivals from our traditional inbound
marketsandanyotherupcominginter-
national markets,” he said.
The group’s net debt went down by
14,5 percent from September 2013
closing at $1,47 million during the
period under review owing to a net
reduction in borrowings amounting to
$5,14 million and reduced cash bal-
ances.
African Sun directors have also
approved the disposal of the remaining
investment in Dawn Properties in order
to reduce borrowings.
“The investment was carried at $6,07
million at September 30, 2013,
and was subsequently adjusted by
$205,943 to a final amount in non-cur-
rent assets held for sale of $5,83 mil-
lion,” he said. •
African Sun records $770 000 loss
AdM-DI156506-
BH24
The equities market marginally
bumped 0.41 percent bucking yes-
terday's dip on the back of increased
volumes.
The industrial index gained 0.77 points
to close at 187.86 points following
gains in a number of counters Pearl
Properties led the top risers industrials
gaining 13.46 percent to close at 2.95
cents, while ZPI was up 6.74 percent
to close at 0.95c. Clothing retailer Tru-
worths gained 3.45 percent to close at
3c and Econet traded at 72 cents after
going up 2.86 percent.
Bankers Barclays went up 2.56 percent
to trade at 4 cents. Seedco and Old
Mutual gained 1.43 percent and 0.12
percent to trade at 71 cents and 255
cents, respectively. On the downside,
Star Africa traded 37.5 percent lower
to close at 0.5c, while Cafca declined
20 percent at 24c.
Mash lost 3.85 percent to close at 2.5c
as OK dropped 2.86 percent to close at
17c and ZHL went down 11.11 percent
to close at 0.8c. Turnover after today's
trades stood at $2,2 million as there
was a special bargain OK for 7.5 million
shares at 18c which boosted the value
of trades.
The mining index was also up 0.77
points (or 1.41 percent) after Hwange
was 0.7 cents higher at 5.5 cents and
Falgold also added 0.2 cents to trade
at 2.2 cents. Bindura and Riozim main-
tained previous trading days’ levels. —
BH24 Reporter •
9 ZSE REVIEW
Equities turn positive on increased volumes
SPECIALISTS IN DRIVESHAFTS AND PROPSHAFTS, STEERING RACKS, BALL JOINTS, DRAGLINKS,
TIE ROD ENDS, CV JOINTS, TRANSMISSIONS, UNIVERSAL JOINTS, FLANGES, BEARINGS,
BUSHES, YOKES, GENERAL ENGINEERING, BELL SPARES, AIR BRAKES AND PNUEMATICS, SUPPLY
AND SERVICE EXCHANGE FOR COMPLETE AXLES, ENGINES AND GEARBOXES.
NATIONAL PROPSHAFTS CENTRE
No. 17033 CEDORA ROAD, P.O. BOX GT 1244,
GRANITESIDE, HARARE, ZIMBABWE.
Website: www.propshaftscenter.co.zw
TEL: 770638-43, 086 4406 8386
CELL: 0772 470665, 0712 204396,
086 44068386, 0712 749578
Email: sales@nationalpropshafts.co.zw
MUTARE PROPSHAFTS CENTRE
12 A RIVERSIDE DRIVE
P.O.BOX 1869, MUTARE, ZIMBABWE
Website: www.propshaftscenter.co.zw
Tel: 66084, 086 4406 8385, Fax: 68597
Cell: 0712 204396,
0772 715388, 0773 782502
Email: sales@mpc.co.zw, mpc@mweb.co.zw
BELL DIFFS
COMPRESSORS UNIVERSAL JOINTS
TA 1919 PUMPS, WATER PLATES &
DOUBLE BOSH PUMPS
MT643 TRANSMISSIONS
STEERING COUPLINGS
FOOT BRAKE & VALVESCENTRE BEARINGS
PROPSHAFTS SPARES
SPIDER BEARINGS
BOOSTERS
PROPSHAFT COUPLINGS
PROPSHAFTS & DRIVE SHAFTS
TRACK RODS &
DRAGLINKS
BH24
Government through the Zimbabwe
Mining Development Corporation con-
trols three of the country’s abounding
gold mines.
However, the fact that these mines are
not bringing in any significant revenues
to the company or the fiscus remains
a big worry.
ZMDC runs Jena Mines in Silobela, Elv-
ington Gold Mine in Chegutu and Sabi
Gold Mine in Zvishavane. Yesterday, a
Parliamentary Portfolio Committee on
Mines and Energy heard that none of
these mines have been operating prof-
itably since dollarisation in 2009.
Jena Mine is the biggest gold mine in
the Midlands area and at its peak it was
producing 60 kilogrammes of gold per
month. But the mine is now producing
only 25kgs every month. The mine has
$16 million worth of liabilities, mainly
made up of debt, which have been
accruing since 2009. To make it worse,
the mine is operating a multi shaft sys-
tem which means ore is being mined
from four shafts which are not linked
and then transported to the plant
which is at least 3 km from the mines.
Talk about inefficiencies! Sabi Mine also
produces 10kgs per months from an
installed capacity of 45kg and bringing
in loses. The mine owes Zesa more
than $1 million and electricity was cut
off resulting in flooding of the mine.
And the saddest case is Elvington Mine,
which was the largest mine in the
ZMDC group and has been mothballed
since a shaft collapsed and under-
ground operations ceased in 2003.
No mining is being done currently, only
dump retreatment which is bringing
in 10kgs per year from a peak of 45
kgs per month that came from mining
operations. What is troubling is that the
mine has not had any funding to resus-
citate operations after the collapse and
even the dump retreatment hasn’t
received any funding.
This is the gloomy picture painted by
ZMDC general manager Wilson Chin-
zou: “Exploration has been neglected
due to undercapitalisation and this has
led to low confidence in the resource
we have. Most money is going to liti-
gation… we have been receiving sum-
mons from creditors and some have
managed to get writs of execution to
attach property.” What this shows us
is that these mines have been grossly
mismanaged and neglected from the
word go. Why should a mine as big
as Elvington remain dormant for more
than 10 years? Or Zesa bills for a mine
that is operating at less that 30 percent
run up to $1 million?
And why are they paying six or more
geologists at these gold mines if they
are not doing their jobs? ZMDC has
made so many mistakes since taking
over the mines and most of these are
coming back to haunt them.
First, if the mines have capacities to
produce 45kgs and 60 kgs of gold,
then why are they still using methods
that make it more expensive for them
to operate? The mines’ machinery has
not been upgraded since they started
operating and this means that it was
only a matter of time before Elvington
collapsed, or Sabi and Jena follow suit.
Second, the mines are operating on
fixed costs. This means the cost of
production will not change despite the
amount of gold produced. And since
dollarization, the mines have been pro-
ducing less and less. So why has the
costs not been altered or aligned to suit
production by now?
Third, Government has been putting
special emphasis on the gold sector
and so many reforms have been made
to make sure the country’s gold pro-
duction increases.
But Government is yet to make sure
its own mining arm contributes mean-
ingfully to the fiscus. Gold plays a sig-
nificant role in the economy and we
believe it should be given its place and
gold mines given the necessary atten-
tion.
Government should not wait for the
collapse of the mines to do something.
That is how ZMDC finds itself in this
predicament. They became compla-
cent when the mines were producing
at full production, and finally woke
up when it was falling to pieces. No
money had been put aside for explora-
tion let alone retooling. This should be
a wakeup call for ZMDC to start pay-
ing attention to all its mining divisions
before they become futile. •
11 BH24 COMMENT
ZMDC should wake up and smell the coffee!
BH24
The South African union leading a
walkout by 220,000 metalworkers is
close to an agreement with employ-
ers on wage increases and will resume
talks to end a weeklong strike, the
Labor Ministry said.
Goverment officials met separately
with the National Union of Metalwork-
ers of South Africa and employers yes-
terday, Mokgadi Pela, a spokesman for
the labor department, said by phone.
The department will continue talks with
Numsa today on unresolved issues,
including the union’s demand to ban
companies that provide temporary
workers, known as labor brokers.
“Talks are at a very advanced and sen-
sitive stage,” Pela said. “We are close to
an agreement when it comes to wage
percentages but the reason we are
saying talks are at a sensitive stage is
we are trying to address sticky issues,”
including labor brokers, youth wage
subsidies and housing allowances,
he said. Numsa last week rejected
an improved offer from the Steel and
Engineering Industries Federation of
Southern Africa, the main employers’
group, to increase the salaries of low-
est-paid workers by 10 percent this
year. Numsa is demanding a 12 per-
cent raise and a ban on labor brokers.
The strike that began on July 1 has
been marred by violence, caused Gen-
eral Motors Co. (GM) to halt production
because of a disruption of auto-com-
ponent supplies, and threatens about
a third of South African manufacturing
output.
Moody’s Investors Service said last
week the nation’s credit rating may be
at risk because of the walkout, which
follows a five-month platinum mining
strike that caused the economy to con-
tract in the first quarter. ― Bloomberg
•
13 REGIONAL News
South Africa metals union close to agreement to end strike
BH24
15 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
7 July 2014
Energy
(Megawatts)
Hwange 352 MW
Kariba 750 MW
Harare 40 MW
Munyati 28 MW
Bulawayo 20 MW
Imports 0 MW
Total 1162 MW
16 July - Mobile Markets & Telecoms Forum Conference & Exhibition, Place: Holiday Inn (Harare),
Time: 8:00am
23 -25 July - Mine Entra, Place: Zimbabwe International Exhibition Centre, Bulawayo
24 July - OK Zimbabwe Thirteenth Annual General Meeting Place: OKMart Functions Room, First
Floor, OKMart, 30 Chiremba Road, Hillside, Time: 15:00 hours.
THE BH24 DIARY
BH24
17 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Hwange 14.58% 5.50 StarAfrica -37.50% 0.50
Pearl 13.46% 2.95 Cafca -20.00% 24.00
Falgold 10.00% 2.20 Zimre -11.11% 0.80
ZPI 6.74% 0.95 Mash -3.85% 2.50
Truworths 3.45% 3.00 Padenga -3.13% 7.75
Econet 2.86% 72.00 OK -2.86% 17.00
Barclays 2.56% 4.00 Fidelity Life -2.17% 9.00
SeedCo 1.43% 71.00
Old Mutual 0.12% 255.30
Indices
Index Previous Today Move Change
Industrial 187.09 187.86 +0.77 points +0.41%
Mining 54.56 55.33 +0.77 points +1.41%
Stocks Exchange
BH24
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 2,352.45 +6.43 +0.27% 27June
Kenya 4,885.09 +51.07 +1.06% 30June
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 42,482.49 +714.93 +1.71% 30June
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 186.56 -0.52 -0.28% 30June
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 — ""No man
is ever whipped until he
quits - in his own mind." -
Napoleon HillGlobalshareholder.com
Banking stocks dampened a tentative
rebound in European shares on Tues-
day as Germany's Commerzbank was
saidtohavebecomethelatestlenderto
be negotiating a costly legal settlement
with U.S. authorities.
Shares in the German lender fell 3 per-
cent as sources told Reuters that U.S.
authorities had begun settlement talks
with the bank and larger competitor
Deutsche Bank, down 0.9 percent, over
their dealings with countries blacklisted
by the United States.
TheNewYorkTimesreportedthatCom-
merzbank's settlement was expected to
includeatleast$500millioninpenalties.
This compares to a nearly $9 billion set-
tlement struck by France's BNP Paribas
in a similar case earlier this year.
"IthinkCommerzbank'sstockwillsuffer
a bit but unless they get a very big fine
likeBNP,Idon'tthinkitwillsufferlikethe
otherbanks(hitbyU.S.investigations),"
Mike Reuter, a broker at Tradition, said.
"If we see something below a billion
(dollars) I think the market will accept
that." At 0743 GMT, the pan-European
FTSEurofirst 300 index was down 0.1
percent at 1,380.32 points after trading
slightly higher in early deals.
Italy's biggest insurer Generali was
another top faller, dropping 2 percent,
as Italian state-lender Cassa Depositi
e Prestiti (CDP) said on Tuesday it had
completed the placement of a 1.9 per-
cent stake in the insurer at a discount
to Monday's closing price. It weighed
on the Euro STOXX 50 index, which
was also down 0.1 percent, at 3,227.21
points, taking its fall over the last three
days to 1.8 percent.
The index has been making higher lows
since December but on Monday it broke
below its 50-day moving average, in
what is often considered a bearish
technical signal. "Our view on the Euro
STOXX50isstillbullishaspricesremain
above a strong ascending trend line
drawn from December 2013 (currently
at3,080points),"PhilippeDelabarre,an
analyst at Trading Central, said.
"Nevertheless, yesterday, the break
below the 50-day simple moving aver-
age was the first weakness signal. Our
targets remain 3,330 and 3,440 points
aslongas3,080isasupportthreshold."
― Reuters •
20 INTERNATIONAL NEWS
European shares fall for 3rd day; Commerzbank hit by potential U.S. fine
An opportunity has arisen to enable HelpAge Zimbabwe to facilitate the
implementation of the Rural WASH project, to improve water, sanitation and hygiene
in Bubi District
1. Carry out an assessment of the WASH related health risks and needs within - General Bookkeeping- Cash book and petty cash management
the targeted population and make recommendations for actions which are - Order and control office stationery
consistent with agreed guidelines and protocols. - Liaise with project staff in procurement and maintenance of project stocks
2. In conjunction with the local authority and relevant government departments records
make recommendations regarding HelpAge Zimbabwe response to unmet - Preparation of Donor Financial reports
needs. - Bank reconciliations
3. Facilitate the implementation of SafPHHE in conjunction with the WASH - Filing all office documents
officer and/or other stakeholders. - Financial and programmes reports, vouchers, program and office meetings
4. Involve affected populations in assessment of the situation and in planning minutes
activities and the design of water and sanitation facilities. - Monitoring and securing adherence to organization and donor administrative
5. Identification and training of ward based SafPHHE facilitators and health club processes
facilitators. - General Office Administration
6. Write regular reports adhering to HelpAge Zimbabwe and donor reporting
formats as required.
- Degree in Accounting or equivalency and/or accounting
- Computer knowledge
1. Degree in Environmental Science or other relevant qualification
- Knowledge in Pastel/accounting package
2. Knowledge of public health and one or more other relevant areas (e.g. health
- Skills to manage own work and meet deadlines
promotion, community development, education, community water supply).
- Clean Class 4 driver's licence
3. The post holder should have at least two years` practical experience in
appropriate community health programmes.
4. Experience and understanding of community mobilisation in relation to water
Send CV and an application letter to info@helpage.co.zwand sanitation activities.
Deadline for application 30th June, 2014.5. Sensitivity to the needs and priorities of disadvantaged populations.
6. Demonstrated experience of integrating gender and diversity issues into
public health promotion.
7. Good oral and written reporting skills.
8. Good communication skills and ability to work well in a team.
9. Ability to work well under pressure and in response to changing needs.
10. Ability to travel at short notice and to work under difficult circumstances
11. Good written and spoken English and Ndebele are essential.
2. Vacancy: Administration Assistant
Station: Bubi District
Key Result Areas Job Description
Qualifications and Person Specification
SKILLS AND COMPETENCIES
To Apply
- 2 years` experience in office administration
1. Vacancy: Participatory Health and Hygiene Education Officer
TLM-DI159207-T26
Two vacancies have arisen in HelpAge Zimbabwe.
BH24
By Kizito Sikuka
The Southern African Development
Community (SADC) has urged stake-
holders to redouble their efforts in sup-
porting farmers to boost production.
Farmers are at the centre of Africa’s
agricultural transformation agenda.
Therefore, clear agricultural policies
such as access to inputs including
seeds and fertilizer, as well as credit
facilities and extension services are
needed to improve yields.
With the momentum now building
towards the 34th SADC Summit to
be held in Victoria Falls, Zimbabwe in
August, regional leaders are expected
to review the general agricultural sit-
uation in the region to ensure that
challenges hindering the sector are
addressed.
The 34th SADC Summit is being held
in the year declared by the African
Union as the “Year of Agriculture and
Food Security,” and will see Zimbabwe
President Robert Mugabe assume the
SADC chair from his Malawian counter-
part, and lead the region for the com-
ing year. The SADC region has adopted
a raft of measures to revolutionize the
agricultural sector, which contributes
between four percent and 27 percent
of the regional Gross Domestic Product
(GDP), and about 13 percent of the
total export earnings.
The measures, which include investing
more in research, improving access
to financial resources for smallholder
farmers, and increasing budget alloca-
tions to agriculture has seen the region
record some impressive advances in
food production. For example, in the
past decade, the agricultural growth
rate in the region has averaged about
2.6 percent, according to the SADC
Secretariat. The general food security
situation has remained relatively stable
with most Member States recording
good harvests every year.
A recent food security assessment for
the 2013/14 agricultural marketing
year reveals that there was an increase
in the production of maize – the sta-
ple food of most countries in the SADC
region.
Cassava production, another staple
food in parts of Angola, the Democratic
Republic of Congo, Malawi, Mozam-
bique, the United Republic of Tanzania
and Zambia, was also above the esti-
mated requirements. In addition, the
regional production of livestock prod-
ucts is increasing, albeit at a slower
pace.
But, what specific interventions has
SADC implemented to achieve such
steady progress towards regional food
security? One major strategy includes
enhancing the capacity for the dis-
semination of research technologies
to farmers, particularly smallholder
farmers, who make up the majority of
farmers in the region. Access to such
information is critical for planning pur-
poses, especially when farmers want
to diversify into new crops or livestock.
In this regard, SADC has invested in
regional organizations such as the
Centre for Coordination of Agricultural
Research and Development for South-
ern Africa (CCARDESA) to ensure the
provision of adequate and relevant ser-
vices to regional farmers.
Speaking at the 1st General Assembly
of CCARDESA, the SADC Executive
Secretary, Dr Stergomena Lawrence
Tax from Tanzania, said the region
should support its farmers as most
continue to experience challenges in
their daily work. “One of the major
weak points in the stimulation of agri-
cultural led growth in SADC has been
the lack of a strong base for technology
generation and public-private partner-
ship models for commercialisation of
technologies,” she said.
Dr Tax said climate change had also
22 Analysis
Agriculture development a priority for SADC: “Let us support our farmers”
become a main challenge threatening
food security in the region, hence the
need to develop appropriate technolo-
gies for adaptation and resilience.
“This calls for careful consideration
of resource allocation and applied
research which can give results of
immediate use to farmers in improv-
ing the resilience of their production
technologies and farming systems to
climate change,” she said.
“In this regard, I wish call upon
CCARDESA and its stakeholders to
place considerable attention on the
needs of farmers in the development
of programmes.” These programmes
include improving the transport net-
work and storage facilities so that agri-
cultural produce can move smoothly
from one place to another.
Storage facilities allow farmers to store
their harvest for use in poor seasons,
but post-harvest crop losses are esti-
mated to be as high as 40 percent in
the region, according to the UN Food
and Agriculture Organization. Regional
water infrastructure development such
asirrigationwillallowtheregiontofarm
all year around and not only depend on
climatic conditions. The potential for
irrigating land in the SADC region is
large as the region is hugely endowed
with watercourses such as the Congo,
Limpopo, and Zambezi rivers.
Agriculture is the backbone of most
economies in southern Africa hence
the sector should be identified as a pri-
ority area of development. For exam-
ple, more than 62 percent of the SADC
region’s277millionpeoplearedepend-
ent on agriculture for their livelihoods,
according to the SADC Secretariat. Dr
Tax also urged the region to increase
food production to keep pace with
growing population.
She said while food production can be
increasedbyincreasingtheareaofland
to be used for agriculture, “this is not a
viable option in the SADC region, the
most desirable and sustainable option
before us is to increase productivity so
that more food can be produced per
unit area of land.”
She said there is need for the region
to engage and co-opt the youths into
agricultural development.
“As we celebrate the African Union
year of Agriculture and Food Security,
we need to launch a SADC-wide youth
programme to create opportunities in
agricultural value chains and building
agricultural entrepreneur.”
The 1st CCARDESA General Assembly
was held in May in Gaborone, Bot-
swana. CCARDESA is a sub-regional
organisation established in July 2011
to coordinate the implementation of
agricultural research and development
in the SADC region.
Located in Botswana, the CCARDESA
aims to coordinate and stimulate agri-
cultural growth through research, tech-
nology development and dissemination
of research information to farmers.
Another key approach by SADC to
boost production has centred on
increasing budget allocations to agri-
culture as well as targeted subsidy
programmes that result in farmers
accessing agricultural inputs and farm
implements at cheaper rates.
This is in line with the Comprehensive
Africa Agriculture Development Pro-
gramme (CAADP) which was formu-
lated in 2003 by the African Union to
encourage countries to reach a higher
path of economic growth through agri-
culture-led development. Under this
continent-wide programme, African
governments made a commitment
to allocate at least 10 percent of their
national budgets to the agricultural
sector each year. Ultimately, this ambi-
tious and broad vision for agricultural
reform in Africa aspires for an average
annual growth rate of six percent in
agriculture.
Most countries in SADC including
Malawi, Zambia and Zimbabwe have
already signed the CAADP agree-
ment and are making vigorous efforts
to meet the targets. Zimbabwe has
crafted a national agricultural and food
security investment plan to attract key
investment in the sector.
In addition, the country has adopted a
blueprint called the Zimbabwe Agenda
for Sustainable Socio-Economic Trans-
formation (ZimAsset) to help shape
economic transformation and develop-
ment for the next five years, spanning
October 2013 to December 2018.
Food Security and Nutrition is one of
the four main clusters identified in
ZimAsset to lead this economic trans-
formation and development. The other
threefocusareasareonSocialServices
and Poverty Eradication, Infrastructure
and Utilities, and Value Addition and
Beneficiation. ― sardc.net •
23 Analysis

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Zimbabwe develops 5-year strategy to revive coffee industry

  • 1. News Update as @ 1530 hours,Tuesday 8 July 2014 Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw By Elita Chikwati Stakeholders in the coffee industry have come up with a five-year Zim- babwe Coffee Sector Development Strategy to revive and boost coffee production in former and new growing areas to improve livelihoods of more than 50 000 people. This came after a realisation that cof- fee production which used to be the fifth foreign currency earner, was declining due to consecutive droughts, limited supplementary irrigation infra- structure, limited funding, cots of inputs and lack of expertise among other factors. The strategy involves the mainte- nance of existing coffee plantations, establishment of 4 700- hectares of coffee with women and youths par- ticipation and engaging in value addi- tion and infrastructure development among other things. Officiating at the Coffee Strategy Ver- ification Workshop recently, Acting Minister of Agriculture, Mechanisation and Irrigation Development, Dr Igna- tius Chombo urged investors to take advantage of the conducive coffee growing conditions in Zimbabwe to partner local coffee farmers for the realisation of profit and growth of the economy. He said Zimbabwe had the ideal cli- matic conditions and good soils to grow high quality coffee that could compete very well worldwide. “Coffee is an important export crop for Zimbabwe with tremendous potential for employment creation and genera- tion of foreign currency. “The ministry will provide the nec- essary policy support to enable the growth of the coffee sub-sector and support research and development including a dedicated extension for the coffee sector,” he said. Dr Chombo said the coffee strategy was in line with the national blue print- the ZimAsset while it was also being aligned to the Zimbabwe Agriculture Investment Plan which is being final- ised. “Under both ZimAsset and ZAIP, value addition is an important component. This needs to be taken on board as some of the quick wins together with market access-issues which remain major concerns for coffee farmers. “The value chain approach would create synergies targeted at improv- ing livelihoods of all coffee farmers, including women and youth farmers,” he said. Zimbabwe produces Arabic coffee which is grown mostly in the Eastern Highlands districts of Chipinge, Chim- animani, Mutare and Mutasa. About 630 hectares are currently under cotton with more than 1 000 households depending on the sector for their livelihoods. Zimbabwe exports its raw coffee to Netherlands, United States of Amer- ica, Germany, South Africa, Canada, Australia and Britain with potential markets in Japan and China. • Zim develops 5-year strategy to revive coffee industry Minister Chombo
  • 2. By Lynn Murahwa Nissan has partnered with five Zimba- bwean dealerships in Harare as part of its new Dealer Direct distribution strat- egy. Nissan South Africa has set up a new Dealer Direct distribution strategy that will allow the South African branch of the company to conduct dealing with the five distributors in Zimbabwe. The dealerships are Amalgamated Motor Corporation (AMC), Clover Leaf Motors, Croco Motors, Golden Stairs Garage and Amtec Motors. Speaking at the launch of the partnership this morn- ing, Nissan Sub Saharan Africa general manager Jim Dando said the partner- ship would strengthening the brand within the country. "Nissan has experienced significant growth in the Zimbabwean market and it now commands 22 percent of the market. "There is a growing middle class in Africa and automotive firms similar to Nissan are targeting this market. Zim- babwe is an important market in Nis- san’s Power 88 Africa growth strategy aimed at doubling sales and signifi- cantly increasing market share on the continent by 2016,” he said. Dando added that Nissan is set to release 18 new products in the Zim- babwean market within the next four years. "Nissan is set to launch 18 new products between now and 2018. Some of the new products to be launched include new versions of the Qashqai and the X-Trail. Nissan will also bring back the Datsun brand through the Datsun Go hatchback. The Datsun Go will be available in Zimbabwe from November. These new products will all be released through the five local deal- ers," he said. Nissan, however said it will not be establishing a manufacturing plant in Zimbabwe because the duty environ- ment does not support a manufactur- ing plant. Clover Leaf Motors chief executive officer Stanford Sibanda said at the launch the partnership will improve relations between the Zimbabwean and South African motor industries as well as the experience of Nissan cus- tomers within the country. “The new Direct Dealer arrangement will result in significant benefits to Nis- san customers in Zimbabwe. Direct dealings with Nissan South Africa will result in more competitive prices for Nissan vehicles, improved service lev- els for Nissan Customers and a better understanding of the Zimbabwean motor market by Nissan South Africa,” said Sibanda. • 2 NEWS Nissan extends tentacles into Zim Datsun Go hatchback
  • 4. 4 NEWS Zimbabwe-based gold miner Caledo- nia Mining has declared its fifth div- idend payment of one and one half Canadian cents (0.8p). In 2014, Caledonia repeated it intends to pay an annual aggregate dividend of six Canadian cents (3.3p) per share, payable in quarterly instal- ments. The miner is debt-free and at end March had cash of $26,7mln held with its bankers in the United King- dom, Canada and South Africa. Caledonia's primary asset is a 49 per- cent interest in the Gwanda-based Blanket gold mine in Zimbabwe. Zimbabwean shareholders in Cale- donia's primary asset - Blanket mine - do not benefit from the group's dividend payments since they are shareholders in Blanket mine and not in Caledonia. Besides the Blanket Mine in Zimba- bwe, Caledonia also has assets in South Africa and Zambia. ― BH24 Reporter/Proactiveinvestors • BH24 Reporter The new Zimbabwe Mining Devel- opment Corporation (ZMDC) board is set to make appointments of sub- stantive employees by end of August to make for better decision making within the organisation, an official said yesterday. Minister of Mines and Mining Devel- opment Walter Chidhakwa dissolved the ZMDC board, along with the boards of the Minerals Marketing Cor- poration of Zimbabwe (MMCZ) and Marange Resources to make way for assessment of operations at the three organisations. ZMDC general man- ager Jerry Ndlovu was also sent on special leave in January. A new board, chaired by David Murangari, was set up in April. Addressing a question from parlia- mentarians on why most executives were in an acting capacity, acting general manager Wilson Chinzou said the company was still in a transition period but the board would make appointments soon. “We have been in a transition period sincetheboard’sappointmentinApril. The board is actually going through process of appointing substantive individuals in these posts, especially in management. I hope in the next month or so we will have more sub- stantive executives,” he said. Chinzou replace Ndlovu and has been acting general manager since January. He said the acting human resource manager has been acting since end of June when the former HR manager retired. He however said the post of chief operating officer has been changing hands from one acting to another since 2010 and the new board would address the issue. • Caledonia Mining Corporation pays out fifth dividend New ZMDC board to make substantive appointments 'soon' Minister Chidhakwa
  • 5. 5 AGRICULTURE By Funny Hudzerema Tobacco production for the upcoming 2015 season is set to reach new highs as the number of tobacco growers has risen 16 percent to 106 455 from 91 278 in the prior season. Tobacco for the current season has topped 200 million kilogrammes - whichisZimbabwe'shighestlevelsince the beginning of the new millennium - with indications pointing to even higher yields next year. Latest figures from the Tobacco Mar- keting Industry Board (TIMB) show that Mashonaland West province has the highest recorded number of new tobacco growers for the upcoming season at 11 713. In that province communal farmers dominate the new growers list with 8 294 new growers while A1 and A2 stand at 1 069 and 1 828, respectively. There are 522 new small-scale communal tobacco grow- ers in the province to date. Mashonaland Central province has recorded a total of 8 231, with the majority of them being communal farmers at 4 682. A2 and A1 recorded 2 114 and 921 respectively. Again for Mashonaland West, small-scale com- munal farmers constituted the lowest figure at 514 new growers. Manicaland province has the third highest figure of new growers at 5 465, the majority being communal farmers at 3 254, followed by A2 and A1 con- tributing 1,459 and 560 new growers, respectively. Small-scale communal growers for the province currently stand at 192. Mashonaland East has 4 135 new growers for the upcom- ing season, dominated by communal farmers at 2 109, while A2 contributed 1 056 and A1 contributing 701 new tobacco growers this season. Masho- naland East's small-scale new growers are 269. Midlands’s province has recorded a total number of 338 new growers in this year’s growing season, while Mas- vingo has a total number of 265 new tobacco growers. As per norm tobacco planting commences on September 1. Meanwhile, TIMB says eight contrac- tors are currently active and continue to receive tobacco from growers, while the other eight contractors have either concluded their 2014 purchases or are now receiving tobacco on selected days. Official figures show that con- tractors' seasonal output now stands at 157 million kg averaging $3,33/kg. During the same period last year con- tractors had purchased 103,3 million kg at an average price of $3,77/kg. The total seasonal sales have increased to 207,5 million kg worth $658 million. • Registered tobacco growers up 16%
  • 7. 7 NEWS By Oliver Kazunga Zimbabwe Stock Exchange-listed hos- pitality concern, African Sun will focus on foreign markets after it incurred a $0.77 million loss in the half-year end- ing March 31, 2014 due to a decline in local business as liquidity challenges facing the economy persist. African Sun said its revenue for the period under review was $25,33 mil- lion which is a four percent reduction from the comparable period last year of $26,44 million. “The drop is attributed to a five percent decline in the depressed Zimbabwe segment. The group reported a loss for the period of $0,77 million down from a profit of $0,91 million last year,” the group’s chairman Bekithemba Nkomo in a statement accompanying its interim results. “Exceptional costs amounted to $202,945 relating to a affair value adjustment and selling costs for the 16,54 percent investment in Dawn Properties Limited which was classified as a non-current assets held for sale during the period under review,” He said the group’s Earnings, Before Interest, Taxes, Depreciation and Amortizations for the period reduced by 38 percent to $2,17 million from $3,48 million. “Thedeclineisattributabletodepressed revenue performance as well as the opening of a new hotel in Ghana. Amber Hotel Accra Airport is still in the 'soft opening phase' and the operating model is yet to achieve optimum effi- ciencies. Operating costs increased by two percent from the same period in 2013 to $16,90 million from $16,61 million.” He said it is envisaged that the foreign market would continue to sustain the group’s Average Daily Rate and Reve- nuePerAvailableRoomasthedomestic market was likely to remain depressed into the next 24 months. “To mitigate the depressed domestic business, the group will leverage on its aggressive selling of the foreign market improving arrivals from our traditional inbound marketsandanyotherupcominginter- national markets,” he said. The group’s net debt went down by 14,5 percent from September 2013 closing at $1,47 million during the period under review owing to a net reduction in borrowings amounting to $5,14 million and reduced cash bal- ances. African Sun directors have also approved the disposal of the remaining investment in Dawn Properties in order to reduce borrowings. “The investment was carried at $6,07 million at September 30, 2013, and was subsequently adjusted by $205,943 to a final amount in non-cur- rent assets held for sale of $5,83 mil- lion,” he said. • African Sun records $770 000 loss
  • 9. The equities market marginally bumped 0.41 percent bucking yes- terday's dip on the back of increased volumes. The industrial index gained 0.77 points to close at 187.86 points following gains in a number of counters Pearl Properties led the top risers industrials gaining 13.46 percent to close at 2.95 cents, while ZPI was up 6.74 percent to close at 0.95c. Clothing retailer Tru- worths gained 3.45 percent to close at 3c and Econet traded at 72 cents after going up 2.86 percent. Bankers Barclays went up 2.56 percent to trade at 4 cents. Seedco and Old Mutual gained 1.43 percent and 0.12 percent to trade at 71 cents and 255 cents, respectively. On the downside, Star Africa traded 37.5 percent lower to close at 0.5c, while Cafca declined 20 percent at 24c. Mash lost 3.85 percent to close at 2.5c as OK dropped 2.86 percent to close at 17c and ZHL went down 11.11 percent to close at 0.8c. Turnover after today's trades stood at $2,2 million as there was a special bargain OK for 7.5 million shares at 18c which boosted the value of trades. The mining index was also up 0.77 points (or 1.41 percent) after Hwange was 0.7 cents higher at 5.5 cents and Falgold also added 0.2 cents to trade at 2.2 cents. Bindura and Riozim main- tained previous trading days’ levels. — BH24 Reporter • 9 ZSE REVIEW Equities turn positive on increased volumes
  • 10. SPECIALISTS IN DRIVESHAFTS AND PROPSHAFTS, STEERING RACKS, BALL JOINTS, DRAGLINKS, TIE ROD ENDS, CV JOINTS, TRANSMISSIONS, UNIVERSAL JOINTS, FLANGES, BEARINGS, BUSHES, YOKES, GENERAL ENGINEERING, BELL SPARES, AIR BRAKES AND PNUEMATICS, SUPPLY AND SERVICE EXCHANGE FOR COMPLETE AXLES, ENGINES AND GEARBOXES. NATIONAL PROPSHAFTS CENTRE No. 17033 CEDORA ROAD, P.O. BOX GT 1244, GRANITESIDE, HARARE, ZIMBABWE. Website: www.propshaftscenter.co.zw TEL: 770638-43, 086 4406 8386 CELL: 0772 470665, 0712 204396, 086 44068386, 0712 749578 Email: sales@nationalpropshafts.co.zw MUTARE PROPSHAFTS CENTRE 12 A RIVERSIDE DRIVE P.O.BOX 1869, MUTARE, ZIMBABWE Website: www.propshaftscenter.co.zw Tel: 66084, 086 4406 8385, Fax: 68597 Cell: 0712 204396, 0772 715388, 0773 782502 Email: sales@mpc.co.zw, mpc@mweb.co.zw BELL DIFFS COMPRESSORS UNIVERSAL JOINTS TA 1919 PUMPS, WATER PLATES & DOUBLE BOSH PUMPS MT643 TRANSMISSIONS STEERING COUPLINGS FOOT BRAKE & VALVESCENTRE BEARINGS PROPSHAFTS SPARES SPIDER BEARINGS BOOSTERS PROPSHAFT COUPLINGS PROPSHAFTS & DRIVE SHAFTS TRACK RODS & DRAGLINKS BH24
  • 11. Government through the Zimbabwe Mining Development Corporation con- trols three of the country’s abounding gold mines. However, the fact that these mines are not bringing in any significant revenues to the company or the fiscus remains a big worry. ZMDC runs Jena Mines in Silobela, Elv- ington Gold Mine in Chegutu and Sabi Gold Mine in Zvishavane. Yesterday, a Parliamentary Portfolio Committee on Mines and Energy heard that none of these mines have been operating prof- itably since dollarisation in 2009. Jena Mine is the biggest gold mine in the Midlands area and at its peak it was producing 60 kilogrammes of gold per month. But the mine is now producing only 25kgs every month. The mine has $16 million worth of liabilities, mainly made up of debt, which have been accruing since 2009. To make it worse, the mine is operating a multi shaft sys- tem which means ore is being mined from four shafts which are not linked and then transported to the plant which is at least 3 km from the mines. Talk about inefficiencies! Sabi Mine also produces 10kgs per months from an installed capacity of 45kg and bringing in loses. The mine owes Zesa more than $1 million and electricity was cut off resulting in flooding of the mine. And the saddest case is Elvington Mine, which was the largest mine in the ZMDC group and has been mothballed since a shaft collapsed and under- ground operations ceased in 2003. No mining is being done currently, only dump retreatment which is bringing in 10kgs per year from a peak of 45 kgs per month that came from mining operations. What is troubling is that the mine has not had any funding to resus- citate operations after the collapse and even the dump retreatment hasn’t received any funding. This is the gloomy picture painted by ZMDC general manager Wilson Chin- zou: “Exploration has been neglected due to undercapitalisation and this has led to low confidence in the resource we have. Most money is going to liti- gation… we have been receiving sum- mons from creditors and some have managed to get writs of execution to attach property.” What this shows us is that these mines have been grossly mismanaged and neglected from the word go. Why should a mine as big as Elvington remain dormant for more than 10 years? Or Zesa bills for a mine that is operating at less that 30 percent run up to $1 million? And why are they paying six or more geologists at these gold mines if they are not doing their jobs? ZMDC has made so many mistakes since taking over the mines and most of these are coming back to haunt them. First, if the mines have capacities to produce 45kgs and 60 kgs of gold, then why are they still using methods that make it more expensive for them to operate? The mines’ machinery has not been upgraded since they started operating and this means that it was only a matter of time before Elvington collapsed, or Sabi and Jena follow suit. Second, the mines are operating on fixed costs. This means the cost of production will not change despite the amount of gold produced. And since dollarization, the mines have been pro- ducing less and less. So why has the costs not been altered or aligned to suit production by now? Third, Government has been putting special emphasis on the gold sector and so many reforms have been made to make sure the country’s gold pro- duction increases. But Government is yet to make sure its own mining arm contributes mean- ingfully to the fiscus. Gold plays a sig- nificant role in the economy and we believe it should be given its place and gold mines given the necessary atten- tion. Government should not wait for the collapse of the mines to do something. That is how ZMDC finds itself in this predicament. They became compla- cent when the mines were producing at full production, and finally woke up when it was falling to pieces. No money had been put aside for explora- tion let alone retooling. This should be a wakeup call for ZMDC to start pay- ing attention to all its mining divisions before they become futile. • 11 BH24 COMMENT ZMDC should wake up and smell the coffee!
  • 12. BH24
  • 13. The South African union leading a walkout by 220,000 metalworkers is close to an agreement with employ- ers on wage increases and will resume talks to end a weeklong strike, the Labor Ministry said. Goverment officials met separately with the National Union of Metalwork- ers of South Africa and employers yes- terday, Mokgadi Pela, a spokesman for the labor department, said by phone. The department will continue talks with Numsa today on unresolved issues, including the union’s demand to ban companies that provide temporary workers, known as labor brokers. “Talks are at a very advanced and sen- sitive stage,” Pela said. “We are close to an agreement when it comes to wage percentages but the reason we are saying talks are at a sensitive stage is we are trying to address sticky issues,” including labor brokers, youth wage subsidies and housing allowances, he said. Numsa last week rejected an improved offer from the Steel and Engineering Industries Federation of Southern Africa, the main employers’ group, to increase the salaries of low- est-paid workers by 10 percent this year. Numsa is demanding a 12 per- cent raise and a ban on labor brokers. The strike that began on July 1 has been marred by violence, caused Gen- eral Motors Co. (GM) to halt production because of a disruption of auto-com- ponent supplies, and threatens about a third of South African manufacturing output. Moody’s Investors Service said last week the nation’s credit rating may be at risk because of the walkout, which follows a five-month platinum mining strike that caused the economy to con- tract in the first quarter. ― Bloomberg • 13 REGIONAL News South Africa metals union close to agreement 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 7 July 2014 Energy (Megawatts) Hwange 352 MW Kariba 750 MW Harare 40 MW Munyati 28 MW Bulawayo 20 MW Imports 0 MW Total 1162 MW 16 July - Mobile Markets & Telecoms Forum Conference & Exhibition, Place: Holiday Inn (Harare), Time: 8:00am 23 -25 July - Mine Entra, Place: Zimbabwe International Exhibition Centre, Bulawayo 24 July - OK Zimbabwe Thirteenth Annual General Meeting Place: OKMart Functions Room, First Floor, OKMart, 30 Chiremba Road, Hillside, Time: 15:00 hours. THE BH24 DIARY
  • 16. BH24
  • 17. 17 zse ZSE Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc Hwange 14.58% 5.50 StarAfrica -37.50% 0.50 Pearl 13.46% 2.95 Cafca -20.00% 24.00 Falgold 10.00% 2.20 Zimre -11.11% 0.80 ZPI 6.74% 0.95 Mash -3.85% 2.50 Truworths 3.45% 3.00 Padenga -3.13% 7.75 Econet 2.86% 72.00 OK -2.86% 17.00 Barclays 2.56% 4.00 Fidelity Life -2.17% 9.00 SeedCo 1.43% 71.00 Old Mutual 0.12% 255.30 Indices Index Previous Today Move Change Industrial 187.09 187.86 +0.77 points +0.41% Mining 54.56 55.33 +0.77 points +1.41% Stocks Exchange
  • 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 2,352.45 +6.43 +0.27% 27June Kenya 4,885.09 +51.07 +1.06% 30June 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 42,482.49 +714.93 +1.71% 30June 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 186.56 -0.52 -0.28% 30June 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 — ""No man is ever whipped until he quits - in his own mind." - Napoleon HillGlobalshareholder.com
  • 20. Banking stocks dampened a tentative rebound in European shares on Tues- day as Germany's Commerzbank was saidtohavebecomethelatestlenderto be negotiating a costly legal settlement with U.S. authorities. Shares in the German lender fell 3 per- cent as sources told Reuters that U.S. authorities had begun settlement talks with the bank and larger competitor Deutsche Bank, down 0.9 percent, over their dealings with countries blacklisted by the United States. TheNewYorkTimesreportedthatCom- merzbank's settlement was expected to includeatleast$500millioninpenalties. This compares to a nearly $9 billion set- tlement struck by France's BNP Paribas in a similar case earlier this year. "IthinkCommerzbank'sstockwillsuffer a bit but unless they get a very big fine likeBNP,Idon'tthinkitwillsufferlikethe otherbanks(hitbyU.S.investigations)," Mike Reuter, a broker at Tradition, said. "If we see something below a billion (dollars) I think the market will accept that." At 0743 GMT, the pan-European FTSEurofirst 300 index was down 0.1 percent at 1,380.32 points after trading slightly higher in early deals. Italy's biggest insurer Generali was another top faller, dropping 2 percent, as Italian state-lender Cassa Depositi e Prestiti (CDP) said on Tuesday it had completed the placement of a 1.9 per- cent stake in the insurer at a discount to Monday's closing price. It weighed on the Euro STOXX 50 index, which was also down 0.1 percent, at 3,227.21 points, taking its fall over the last three days to 1.8 percent. The index has been making higher lows since December but on Monday it broke below its 50-day moving average, in what is often considered a bearish technical signal. "Our view on the Euro STOXX50isstillbullishaspricesremain above a strong ascending trend line drawn from December 2013 (currently at3,080points),"PhilippeDelabarre,an analyst at Trading Central, said. "Nevertheless, yesterday, the break below the 50-day simple moving aver- age was the first weakness signal. Our targets remain 3,330 and 3,440 points aslongas3,080isasupportthreshold." ― Reuters • 20 INTERNATIONAL NEWS European shares fall for 3rd day; Commerzbank hit by potential U.S. fine
  • 21. An opportunity has arisen to enable HelpAge Zimbabwe to facilitate the implementation of the Rural WASH project, to improve water, sanitation and hygiene in Bubi District 1. Carry out an assessment of the WASH related health risks and needs within - General Bookkeeping- Cash book and petty cash management the targeted population and make recommendations for actions which are - Order and control office stationery consistent with agreed guidelines and protocols. - Liaise with project staff in procurement and maintenance of project stocks 2. In conjunction with the local authority and relevant government departments records make recommendations regarding HelpAge Zimbabwe response to unmet - Preparation of Donor Financial reports needs. - Bank reconciliations 3. Facilitate the implementation of SafPHHE in conjunction with the WASH - Filing all office documents officer and/or other stakeholders. - Financial and programmes reports, vouchers, program and office meetings 4. Involve affected populations in assessment of the situation and in planning minutes activities and the design of water and sanitation facilities. - Monitoring and securing adherence to organization and donor administrative 5. Identification and training of ward based SafPHHE facilitators and health club processes facilitators. - General Office Administration 6. Write regular reports adhering to HelpAge Zimbabwe and donor reporting formats as required. - Degree in Accounting or equivalency and/or accounting - Computer knowledge 1. Degree in Environmental Science or other relevant qualification - Knowledge in Pastel/accounting package 2. Knowledge of public health and one or more other relevant areas (e.g. health - Skills to manage own work and meet deadlines promotion, community development, education, community water supply). - Clean Class 4 driver's licence 3. The post holder should have at least two years` practical experience in appropriate community health programmes. 4. Experience and understanding of community mobilisation in relation to water Send CV and an application letter to info@helpage.co.zwand sanitation activities. Deadline for application 30th June, 2014.5. Sensitivity to the needs and priorities of disadvantaged populations. 6. Demonstrated experience of integrating gender and diversity issues into public health promotion. 7. Good oral and written reporting skills. 8. Good communication skills and ability to work well in a team. 9. Ability to work well under pressure and in response to changing needs. 10. Ability to travel at short notice and to work under difficult circumstances 11. Good written and spoken English and Ndebele are essential. 2. Vacancy: Administration Assistant Station: Bubi District Key Result Areas Job Description Qualifications and Person Specification SKILLS AND COMPETENCIES To Apply - 2 years` experience in office administration 1. Vacancy: Participatory Health and Hygiene Education Officer TLM-DI159207-T26 Two vacancies have arisen in HelpAge Zimbabwe. BH24
  • 22. By Kizito Sikuka The Southern African Development Community (SADC) has urged stake- holders to redouble their efforts in sup- porting farmers to boost production. Farmers are at the centre of Africa’s agricultural transformation agenda. Therefore, clear agricultural policies such as access to inputs including seeds and fertilizer, as well as credit facilities and extension services are needed to improve yields. With the momentum now building towards the 34th SADC Summit to be held in Victoria Falls, Zimbabwe in August, regional leaders are expected to review the general agricultural sit- uation in the region to ensure that challenges hindering the sector are addressed. The 34th SADC Summit is being held in the year declared by the African Union as the “Year of Agriculture and Food Security,” and will see Zimbabwe President Robert Mugabe assume the SADC chair from his Malawian counter- part, and lead the region for the com- ing year. The SADC region has adopted a raft of measures to revolutionize the agricultural sector, which contributes between four percent and 27 percent of the regional Gross Domestic Product (GDP), and about 13 percent of the total export earnings. The measures, which include investing more in research, improving access to financial resources for smallholder farmers, and increasing budget alloca- tions to agriculture has seen the region record some impressive advances in food production. For example, in the past decade, the agricultural growth rate in the region has averaged about 2.6 percent, according to the SADC Secretariat. The general food security situation has remained relatively stable with most Member States recording good harvests every year. A recent food security assessment for the 2013/14 agricultural marketing year reveals that there was an increase in the production of maize – the sta- ple food of most countries in the SADC region. Cassava production, another staple food in parts of Angola, the Democratic Republic of Congo, Malawi, Mozam- bique, the United Republic of Tanzania and Zambia, was also above the esti- mated requirements. In addition, the regional production of livestock prod- ucts is increasing, albeit at a slower pace. But, what specific interventions has SADC implemented to achieve such steady progress towards regional food security? One major strategy includes enhancing the capacity for the dis- semination of research technologies to farmers, particularly smallholder farmers, who make up the majority of farmers in the region. Access to such information is critical for planning pur- poses, especially when farmers want to diversify into new crops or livestock. In this regard, SADC has invested in regional organizations such as the Centre for Coordination of Agricultural Research and Development for South- ern Africa (CCARDESA) to ensure the provision of adequate and relevant ser- vices to regional farmers. Speaking at the 1st General Assembly of CCARDESA, the SADC Executive Secretary, Dr Stergomena Lawrence Tax from Tanzania, said the region should support its farmers as most continue to experience challenges in their daily work. “One of the major weak points in the stimulation of agri- cultural led growth in SADC has been the lack of a strong base for technology generation and public-private partner- ship models for commercialisation of technologies,” she said. Dr Tax said climate change had also 22 Analysis Agriculture development a priority for SADC: “Let us support our farmers”
  • 23. become a main challenge threatening food security in the region, hence the need to develop appropriate technolo- gies for adaptation and resilience. “This calls for careful consideration of resource allocation and applied research which can give results of immediate use to farmers in improv- ing the resilience of their production technologies and farming systems to climate change,” she said. “In this regard, I wish call upon CCARDESA and its stakeholders to place considerable attention on the needs of farmers in the development of programmes.” These programmes include improving the transport net- work and storage facilities so that agri- cultural produce can move smoothly from one place to another. Storage facilities allow farmers to store their harvest for use in poor seasons, but post-harvest crop losses are esti- mated to be as high as 40 percent in the region, according to the UN Food and Agriculture Organization. Regional water infrastructure development such asirrigationwillallowtheregiontofarm all year around and not only depend on climatic conditions. The potential for irrigating land in the SADC region is large as the region is hugely endowed with watercourses such as the Congo, Limpopo, and Zambezi rivers. Agriculture is the backbone of most economies in southern Africa hence the sector should be identified as a pri- ority area of development. For exam- ple, more than 62 percent of the SADC region’s277millionpeoplearedepend- ent on agriculture for their livelihoods, according to the SADC Secretariat. Dr Tax also urged the region to increase food production to keep pace with growing population. She said while food production can be increasedbyincreasingtheareaofland to be used for agriculture, “this is not a viable option in the SADC region, the most desirable and sustainable option before us is to increase productivity so that more food can be produced per unit area of land.” She said there is need for the region to engage and co-opt the youths into agricultural development. “As we celebrate the African Union year of Agriculture and Food Security, we need to launch a SADC-wide youth programme to create opportunities in agricultural value chains and building agricultural entrepreneur.” The 1st CCARDESA General Assembly was held in May in Gaborone, Bot- swana. CCARDESA is a sub-regional organisation established in July 2011 to coordinate the implementation of agricultural research and development in the SADC region. Located in Botswana, the CCARDESA aims to coordinate and stimulate agri- cultural growth through research, tech- nology development and dissemination of research information to farmers. Another key approach by SADC to boost production has centred on increasing budget allocations to agri- culture as well as targeted subsidy programmes that result in farmers accessing agricultural inputs and farm implements at cheaper rates. This is in line with the Comprehensive Africa Agriculture Development Pro- gramme (CAADP) which was formu- lated in 2003 by the African Union to encourage countries to reach a higher path of economic growth through agri- culture-led development. Under this continent-wide programme, African governments made a commitment to allocate at least 10 percent of their national budgets to the agricultural sector each year. Ultimately, this ambi- tious and broad vision for agricultural reform in Africa aspires for an average annual growth rate of six percent in agriculture. Most countries in SADC including Malawi, Zambia and Zimbabwe have already signed the CAADP agree- ment and are making vigorous efforts to meet the targets. Zimbabwe has crafted a national agricultural and food security investment plan to attract key investment in the sector. In addition, the country has adopted a blueprint called the Zimbabwe Agenda for Sustainable Socio-Economic Trans- formation (ZimAsset) to help shape economic transformation and develop- ment for the next five years, spanning October 2013 to December 2018. Food Security and Nutrition is one of the four main clusters identified in ZimAsset to lead this economic trans- formation and development. The other threefocusareasareonSocialServices and Poverty Eradication, Infrastructure and Utilities, and Value Addition and Beneficiation. ― sardc.net • 23 Analysis