Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Chinese firm to set up industrial explosive materials project in Zim
1. By Tawanda Musarurwa
HARARE – Hunan Nanling
Industry Explosive Mate-
rial Co Ltd has announced
plans for its Hong Kong joint
venture (JV) to set up an
industrial explosive materials
production project in Zimba-
bwe.
In terms of the first phase
of the industrial explosive
materials production project
in Zimbabwe, the firm will
invest a total of 1,06 billion
yuan ($1770 million), which
will see the construction of a
12 000 ton emulsion explo-
sives fixed production line.
The expected construction
period of the first phase is
12 months.
Hunan Nanling Industrial
Explosive Materials said the
Hong Kong JV New World
(Hong Kong) International
Development Limited) had
been set up specifically in
line with the Chinese Gov-
ernment's external invest-
ment policy.
"After....careful market
research demonstration pro-
jects, the company intends
to Tianjin
News Update as @ 1530 hours, Tuesday 29 March 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Chinese firm to set up industrial explosive materials project in Zim
industrial explosives
2. Companies Babu Wei Republic
parties established in Hong
Kong joint venture co-opera-
tion (hereinafter "Hong Kong
joint venture"), by the Hong
Kong joint venture with local
Zimbabwe
Construction of Explosive
Materials joint venture
production line project in
Zimbabwe.
"The two sides have reached
consensus on co-operation
matters, signed the minutes
of the meeting, and in Zim-
babwe joint venture produc-
tion line Explosive Materials
related matters written in
the text of the co-operation
agreement," said the com-
pany in statement.
Hunan Nanling Industrial
Explosive Materials is prin-
cipally engaged in research,
development, manufacture
and sale of civil explosive
materials, military products
and civil explosive profes-
sional equipment, as well as
blasting and logistics busi-
ness.
The firm's products and
services can be divided into
industrial explosives, indus-
trial detonating cords, indus-
trial detonators, engineering
blasting operations, and
transportation and distribu-
tion services.
The Zimbabwe project's line
of business will include: pro-
duction of emulsion explo-
sives and ANFO; non-electric
blasting assembly detona-
tor; distribution and sale of
civilian blasting equipment;
civilian blasting equipment
to provide technical advice,
blasting services and mining
services.
According to Hunan Nanling
Industrial Explosive Mate-
rials the setting up of the
joint venture in Hong Kong,
and the investment into
the Zimbabwe project have
been approved by the Hunan
Provincial Department of
Commerce.
Chinese investment into
Zimbabwe has maintained an
upward trajectory, espe-
cially after President Robert
Mugabe's State visit to China
in December last year where
he and Chinese President Xi
Jinping signed 10 investment
deals.●
2 news
5. BH24 Reporter
HARARE -- The mining sector
taxation system has loopholes
that could result mining com-
panies operating in the country
committing tax fraud, a new study
has shown.
According to ‘The Extractive
Industry in Zimbabwe: An Evalua-
tion of Trends in Corporate Social
Investments, Taxes Paid, Stake-
holder Participation and Link-
ages to Service Delivery of Local
Authorities (2009 -2014)’ report,
regulatory authorities themselves
feel that the taxing system for the
mining sector could be tighter.
The report was carried out by the
Institute for Sustainability Africa
in conjunction with Oxfam. Reads
part of the report: “Interviews
with the regulatory authorities
indicated major concern on trans-
fer pricing, trade mis-pricing, over
invoicing of imports and under
invoicing of exports by extractive
companies as major issues con-
tributing to tax avoidance.
“The regulatory authority felt
that the collection systems had
loopholes and the law itself was
lenient to tax fraud. The practice
impacts on natural resource cap-
ital tax bracket. There was a call
for effective and efficient revenue
collection system to insulate the
hard impact of illicit financial
flows particularly by multinational
extractive companies.
“While the regular noted chal-
lenges in collecting taxes from
companies, there was need for
capacity development and collab-
oration with other agencies/actors
in extractive sector.” The research
also explored establishing trends
of taxes paid by mining compa-
nies to the Zimbabwe Revenue
Authority (ZIMRA) and Local
Authorities.
It showed that there has been
decline since 2010 on taxes being
paid by mining firms.The study
reported a 138 percent drop in
the mining sector tax index from
2010 to 2014. Tax figures in this
analysis were based on actual
taxes paid as reflected in the
cash flow statement not accrual
tax figure disclosed in the income
statement or balance sheet.
The total payment disclosed show
that they represent an average
of 4,1 percent of total revenue
of attributable mining companies
participating in this research.
However, there were two com-
panies who could not publish
attributable revenues and taxes
to Zimbabwe specifically, said the
report.●
5 news
02 03
ADD TO CART
Save big on selected
Products of your choice
PAYMENT
You can purchase
whenever, wherever
using:
DELIVERY
Spend $30 or more
on your purchases
and get free
delivery
01 Hello Convenience
www.hammerandtongues.com
BIG CONVENIENCE+
BIG SAVINGS+
BIG OPPORTUNITIES
= BIG HAPPINESS
SHOP ONLINE!!
Mining sector taxation system open to abuse: study
8. HARARE– Government is
working on refining regula-
tory frameworks that govern
mobile banking activities, to
improve the administration
of the sector, an official has
said.
Mobile banking refers to any
system that enables regular
banking services through a
mobile phone. But many of
the mobile banking initiatives
are partially – in some cases
wholly – led by non-bank
organisations that are tradi-
tionally outside the scope of
financial regulation, and with
whom the financial regulator
has traditionally had little or
no contact.
This has naturally led to
concern that the lack of clear
regulation in the sector
could lead to abuse of the
system by operators. The
Deposit Protection Corpo-
ration, which is charged
with refunding depositors
in failed registered depos-
it-taking institutions includ-
ing commercial and finance
houses, has in the past
raised concern about the
continued use of the Banking
Act to regulate mobile bank-
ing activities in Zimbabwe.
And, Postal and Telecommu-
nications Regulatory Author-
ity of Zimbabwe (Potraz)
acting director general Bax-
ton Sirewu said the current
regulatory set-up was not
ideal and was being reviewed
to improve the administra-
tion of the sector.
“The operator today, that is
the mobile banking operator,
has got one leg in the finan-
cial field regulated by the
Reserve Bank of Zimbabwe
(RBZ) and one leg in the
telecoms sector regulated
by ourselves, but for co-or-
dination purposes we meet
quarterly with the RBZ to
address any regulatory gaps
that maybe found or weak-
nesses that may be found in
the system,” he said.
“This matter is being
addressed, we are contin-
uously improving the way
mobile services are provided
and are regulated in Zimba-
bwe.”
Since the adoption of mul-
tiple foreign currencies in
2009, Zimbabwe has wit-
nessed a proliferation of
mobile banking systems
modeled on the one used in
Kenya called M-PESA.
The three mobile operators in
Zimbabwe - Econet, Telecel
and NetOne all offer mobile
banking services. The intro-
duction of mobile banking
services in Zimbabwe has
helped reach out to the
previously unbanked popula-
tion.- New Ziana●
8 news
Zim to improve mobile banking regulatory frameworks
· Farms
· Mines
· Businesses
· More!
VISIT
www.ramafrica.com
OR CALL
+263 4 870 580
We won’t let you
down! Delivered in
72hrs, countrywide!
NEED
FUEL?
Blend, Diesel, Paraffin
Tel: 04 852517 / 870580
admin@ramafrica.com
11. BH24 Reporter
HARARE – Apple authorised
re-seller, Solution Centre will
open a new branch in Arun-
del this week.
The newest information and
communications technology
available to homes, busi-
nesses and other organ-
isations is being brought
closer to the market with the
opening of the new high-
tech retail outlet in Arundel
Village.
The Solution Centre Arundel
branch opens on Thursday
March 31, providing access
to a wide range of ICT prod-
ucts and services, including
Apple hardware, software
and devices, for which the
company is the authorised
reseller in Zimbabwe.
“This is an exciting develop-
ment that will provide easy
access to all our products
and services, “ said Mr Paul
Georgeou, managing director
of the company.
“We already have a princi-
pal operation on the Enter-
prise Road in Harare, as
well as a branch in Hillside
in Bulawayo, but this is the
first wholly retail operation
that we have created and is
aimed at giving customers
access to the products and
services we provide to indi-
viduals and their homes, as
well as to businesses, educa-
tional institutions and other
organisations.”
He said Arundel was well
placed at the centre of Hara-
re’s northern suburbs, with
close proximity to various
shopping and office com-
plexes, schools, diplomatic
missions and NGO head-
quarters, and ease of access
would be matched by user-
friendly opening hours and
the variety of product on
sale.
Solution Centre is best
known for its connection to
the Apple brand, as it is the
authorised reseller of Apple
products and is authorised
as both a service provider of
workshop facilities and as a
training centre. The company
also provide other brands
of products and services to
the local market, including
those of Aruba Networks,
Bose and other leading ICT
brand names. The Arun-
del shop will sell hardware,
software, accessories and
peripheral items essential to
the easy and efficient use of
technology in daily living and
work.●
11 news
Solution Centre opens Arundel branch
Mr Paul Georgeou
14. HARARE -The mainstream
industrial index was flat at
98.18 on the back of low
activity after the Easter Hol-
idays.
Losses included Edgars,
which shed $0,0040 to close
at $0,0500 while beverages
giant Delta lost $0,0021 to
settle at $0,5629.
On the upside giant insurer
Old Mutual lifted $0,0200
to trade at $2,1000, while
seed producer SeedCo rose
by $0,0050 to $0,6400
and conglomerate Innscor
advanced by $0,0021 to
close at $0,1850.
Telecoms giant was also up,
closing $0,2420 higher after
adding a marginal $0,0004.
The mining index was also
unchanged at 19.53 as Bind-
ura, Falgold, Hwange and
RioZim all maintained previ-
ous price levels at $0,0100,
$0,0050, $0,0300 and
$0,1040 respectively- BH24
Reporter ●
ZSE14
Industrials end shortened week on a low
18. 18 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
29 March 2016
Energy
(Megawatts)
Hwange 591 MW
Kariba 421 MW
Harare 30 MW
Munyati 16 MW
Bulawayo 20 MW
Imports 0 - 300 MW
Total 1364 MW
• Analyst briefing - Old Mutual Zimbabwe, Steward Room, Meikles Hotel, March 30, 1430hrs
THE BH24 DIARY
19. WASHINGTON - The United
States said on Monday it
would press Nigeria in talks
this week to adopt a more
flexible foreign exchange
rate to boost growth and
investment in Africa's largest
economy.
US Assistant Secretary
of State for Africa, Linda
Thomas-Greenfield, told an
audience at the US Institute
of Peace that Nigeria should
ensure that the value of the
naira currency versus the US
dollar was "more realistic."
"While most people complain
about the possibility of there
being a devaluation, people
are already operating on a
devalued currency, and the
only people who are not,
are people who are doing it
officially," Thomas-Green-
field said.
"Our recommendation is,
and we will have discus-
sions about it ... that they
should look at the exchange
rate and try to make the
exchange rate more realis-
tic to what the value of the
naira is to the dollar," she
added.
She spoke before talks in
Washington to be launched
by Secretary of State John
Kerry on Wednesday and
which will focus on Nigeria's
economy, security and devel-
opment.
Nigeria faces its worst eco-
nomic crisis in decades as
the falling price of oil has
slashed revenues, prompting
the central bank to peg the
currency and introduce curbs
to protect foreign exchange
reserves, which have fallen
to an 11-year low.... - Reu-
ters●
regioNAL News19
US to press Nigeria on foreign exchange rate flexibility
JOHANNESBURG - South
Africa's rand was softer against
the dollar as trade resumed on
Tuesday after the long Easter
weekend, with dealers expecting
it to take direction mainly from
Federal Reserve comments in the
absence of local data.
At 0651 GMT, the rand was at
15,5295 versus the greenback,
0,48 percent weaker than its
previous close. Markets awaited a
speech by Federal Reserve Chair
Janet Yellen for signals on when
the US central bank is likely to
raise interest rates.
"The tone of the address will
largely dictate direction in coming
sessions," Standard Bank trader
Inshaan Omar said in a market
note.
Stocks were set to open largely
flat at 0700 GMT, with the JSE
securities exchange's Top-40
futures index dipping just 0,17
percent.
Government bonds weakened
slightly, and the yield for paper
due in 2026 edged up 1 basis
point to 9,38 percent
- Reuters●
Rand softer ahead
of Fed speech
20. Oil declined for a fourth day
before weekly US govern-
ment data forecast to show
increasing crude stockpiles
kept supplies at the high-
est level in more than eight
decades.
Futures lost as much as
1,7 percent in New York
after slipping 0,2 percent
Monday. Inventories prob-
ably increased by 3 million
barrels last week, a Bloomb-
erg survey shows before an
Energy Information Admin-
istration report Wednesday.
That would be a seventh
weekly gain. Indonesia will
attend a meeting of major
oil exporters in Doha next
month to consider an output
freeze, according to Energy
and Mineral Resources Minis-
ter Sudirman Said.
“The size of the crude inven-
tories combined with the fact
we’ve seen a significant rally
in prices is going to limit
gains,” Ric Spooner, a chief
analyst at CMC Markets in
Sydney, said by phone. “Oil
is in a short-term down-
trend.”
Oil tumbled to a 12-year low
this year before rebounding
on speculation the global
surplus will ease as US out-
put declines. Saudi Arabia,
Russia, Qatar and Venezuela
agreed last month they
would cap production at Jan-
uary levels if other produc-
ers followed suit to tackle a
global oversupply.
West Texas Intermediate for
May delivery fell as much as
66 cents to $38,73 a barrel
on the New York Mercantile
Exchange and was at $38,85
at 8:46 a.m. London time.
The contract lost 7 cents to
close at $39,39 Monday. A
fourth day of declines would
be the longest run of losses
since Feb. 11.
U.S. Stockpiles
Brent for May settlement slid
as much as 66 cents, or 1,6
percent, to $39,61 a barrel
on the London-based ICE
Futures Europe exchange.
The contract fell 17 cents to
$40,27 Monday, the lowest
close since March 15. The
global benchmark crude was
at a premium of 90 cents to
WTI.
US crude inventories
increased to 532,5 million
barrels through March 18,
according to data from the
EIA. Gasoline stockpiles
probably dropped by 2,5
million barrels last week,
according to the median
estimate in the Bloomberg
survey. That would be a sixth
weekly decline.
Output freeze and oil mar-
ket news:
• Prices need to be at a sus-
tainable level that is attrac-
tive for producers without
creating pressures, Indone-
sia’s Said told reporters in
Jakarta.
• Crude at $45 to $50 a bar-
rel is enough to encourage
India’s own exploration with-
out squeezing fuel consum-
ers, Oil Minister Dharmendra
Pradhan said in an interview
Monday.
• Commodities includ-
ing oil and copper are at
risk of steep declines as
recent advances aren’t fully
grounded in improved fun-
damentals, according to a
report from Barclays Plc. –
Bloomberg●
internatioNAL News20
Oil drops a 4th day as US crude stockpiles seen expanding glut
21. By Dan Steinbock
As the Eurozone is amid
secular stagnation, its old
fiscal, monetary and bank-
ing challenges are escalat-
ing, along with new threats,
including the Brexit, demise
of Schengen, anti-EU opposi-
tion and geopolitical friction.
According to Dan Steinbock,
Brussels can no longer avoid
hard political decisions for or
against an integrated Europe,
with or without the euro.
Since 2010, European leaders
have been deferring the hard
decisions. Occasionally, there
have been political reasons
for delays. Yet, times of cri-
ses cry for leadership.
Economically, procrastination
has sustained the sem-
blance of continuity in the
short-term. Politically, it has
maintained the status quo of
“integration without common
institutions”, which is unsus-
tainable. Strategically, it has
resulted in misguided mili-
tary policies that threaten to
undermine what is left of the
unity of the region.
Time is out and delays are no
longer an option.
From cyclical contraction
to secular stagnation
The numbers are not encour-
aging. While the Eurozone
(EZ) is amid a fragile cycli-
cal rebound, it is barely
breathing as quarterly real
GDP growth is at barely 0,3
percent and inflation close
to zero. After half a decade
of economic pain, the region
will struggle for 1,5 percent
growth. In the coming dec-
ade, that will slow close to 1
percent.
When the global financial cri-
sis hit Europe, its core econ-
omies – Germany, France, the
UK and Italy – relied on rela-
tively generous social models
for cushion, but structural
challenges were deferred. In
spring 2010, the European
sovereign debt crisis was still
seen as a liquidity issue and
a banking crisis. As Brus-
sels launched its €770 billion
“shock and awe” rescue
package, it was expected to
stabilise the EZ.
However, Brussels and the
core economies failed to pro-
vide adequate fiscal adjust-
ment, which made mass
unemployment a lot worse
and continues to penalise
confidence, demand and
investment. Today, unem-
ployment has decreased
to 10,3 percent in the EZ
(and to 8,9 percent in the
EU, respectively). However,
underemployment remains
prohibitively high and youth
unemployment amounts
to 23 in the EZ and is far
higher in crisis countries,
such as Greece (48 percent),
Spain (45 percent) and Italy
(39 percent). In the future,
Europe must cope with a ‘lost
generation.’
Initially, the small crisis
economies (Greece, Portugal)
were seen as “exceptions”
because they were each
less than 3 percent of the
Eurozone GDP. As the crisis
spread to Italy and Spain
and the ailing economies
accounted for almost 30 per-
cent of the EZ economy, bail-
out packages were no longer
a viable option. However,
while the urgency for struc-
21 analysis21 analysis
The European 'Union'?
22. 22 analysis22 analysis
tural reforms has increased
dramatically, they continue to
be deferred.
How has deleveraging suc-
ceeded? Well, it hasn´t,
despite the rhetoric of
austerity. As percentage of
the EZ GDP, general govern-
ment gross debt soared from
70 percent to 93 percent in
2013. It remains at threat
levels in Greece (169 per-
cent) and Portugal (130
percent) and excessively high
in Italy (135 percent) and
France (135 percent), even
Spain (98 percent).
If Brussels had faced head-on
its threats – fiscal, monetary,
liquidity, banking and com-
petitiveness challenges – in
2010, it would have been bet-
ter positioned to do so. The
EU was still stronger econom-
ically, more united politically
and wary strategically. Now
that it must face still new
challenges, it is weaker eco-
nomically, polarised politically
and assertive strategically. In
addition, that does not bode
well for the future.
New threats
The “Brexit”
In February, Prime Minis-
ter David Cameron struck
a deal with EU ministers on
revised terms for UK mem-
bership in the EU. The British
referendum on whether to
stay in the EU or to Brexit
will be held on June 23. In
media, the EU issue has been
overwhelmed by domestic
politics over the post-Cam-
eron future. When London's
Mayor Boris Johnson gave his
support to the Leave vote,
he became Tory activists’
favorite to lead the Conserva-
tive party.
Meanwhile, the UK pound
plunged to a seven-year low
against the dollar. If the
Brexit advances, this is just
taste of things to come. Even
if the surprise resignation of
Cameron’s Work and Pensions
Secretary Iain Duncan Smith
may have had more to do
with his personal ambitions
than anti-EU position, it did
deal another major blow to
Cameron.
British EU-critics argue that
the UK is suffering from
Brussels’s excessive business
regulations and bailouts of
financially fragile countries.
In contrast, EU-support-
ers believe the UK benefits
greatly from the ease of busi-
ness to the huge EU market,
the flow of young migrants
to counter-balance the UK’s
greying population and EU’s
contribution to national secu-
rity.
Cameron’s revised EU deal
won adjustments to block
security-risk migrants, limits
of welfare benefits to EU
migrant workers, and reim-
bursement for British contri-
butions on future Eurozone
bailouts.
The negotiated economic ben-
efits will also allow London
to block amendments to new
regulations. Last year the
UK also won a court case
against the ECB, which would
have limited the clearing of
EZ transactions to within the
EZ (a disadvantage to Brit-
ish banks over German and
French rivals.
Despite close polls, these
positives will be used as
evidence that the UK and the
City can thrive only with the
EU. However, with the British
referendum, Cameron opened
the Pandora’s Box not just for
a potential Brexit but also to
a major shakeup of the EU
with the loss of a core econ-
omy, a major budget contrib-
utor, global financial hub and
a defense dynamo. That has
potential for a series of nega-
tive feedbacks within the EU.
Demise of Schengen
While it took 25 years to
consolidate the Schengen
agreement, which abolished
the EU’s internal borders,
the treaty has been severely
compromised by a refugee
crisis in less than a year. Its
reassessment began amid the
2015 influx of some 1.2 mil-
lion migrants, many of them
from Syria. to be continued
- EconomyWatch●