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1. By Tawanda Musarurwa
HARARE – Milk processor
Dairibord Holdings says it
will commission additional
production capacity for
its Maheu and cartonised
Chimombe products by the
second half of this year.
Addressing shareholders at
the company’s annual gen-
eral meeting this morning,
CEO Mr Anthony Mandiwanza
said going forward into the
year, focus will be on driving
volumes on key products.
“We are quite focused on
areas where we think there
are opportunities of the
growing the business, and of
course reducing our costs.
News Update as @ 1530 hours, Wednesday 18 May 2016
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Dairibord to ramp up capacity for Maheu, Chimombe by H2
CEO Mr Anthony Mandiwanza

2. “In terms of volume initi-
atives as we move forward
Maheu is a product which
is growing and of course
we thank the authorities
for addressing the issue of
unnecessary imports into the
country, so it’s indeed an
opportunity for us to grow in
that space.
“We are in the process of
commissioning additional
capacity which will double
what we had, and of course
the benefits will be felt as we
roll into the second half,” he
said.
Mr Mandiwanza added that
Dairbord was now moving
to internalising cartonised
milk (Chimombe) production,
which previously was being
toll manufactured in South
Africa.
“We are internalising that
production (cartonised milk)
which will contribute towards
volume increase because
we know currently we were
undersupplying the mar-
ket and of course that will
contribute towards volume
growth and it will be commis-
sioned in the second half.”
The company is also plan-
ning to introduce new value
brands as well as extending
current line products.
Meanwhile earlier this month
Dairibord commissioned addi-
tional capacity for its peanut
butter production at Lyons.
“At Lyons, one of our key
products is peanut but-
ter, with significant market
locally as well as exports, we
were heavily constrained by
capacity constraints and we
have commissioned a new
processing line, now it has
been in full production over
the past two weeks and that
will feed into volume and
revenue growth,” Mr Mandi-
wanza said.
For the first four months of
the year, Dairibord Zimbabwe
experienced a 19 percent
upturn in raw milk uptake,
while volumes sold rose 6
percent “in line with projec-
tions,” said Mandiwanza.
But revenue was down 6
percent, and operating profit
margin was almost flat at 1
percent.●
2 news

3. BH243

4. BH244

5. HARARE - Masawara Plc
incurred a loss after tax of
$4.6 million for the year
ended December 31 last year
comparable to $16.1 million
recorded the previous year.
Masawara is a Jersey-regis-
tered investment company
focussed on acquiring inter-
ests in companies and pro-
jects based in Zimbabwe and
the southern African region.
In the period under review,
the group’s net total revenue
amounted to
$101,719 million from $
9,575 million acquired the
previous year.
Total net for the group’s
insurance claims and oper-
ating expenses increased
to $121,304 million from
$16,459 million reported in
the prior period.
The group recorded an over-
all increase in cash and cash
equivalents of
$9.3 million from the previ-
ous year.
In a statement on Monday,
Masawara chairman David
Suratgar said the loss was
primarily as a result of “a
$12.5 million impairment of
the Telerix Communications
Private Limited “Telerix”
loan notes in 2015 (2014:
$2.8 million) and a $2.0
million operating loss from
Sable Chemical Industries
(“Sable”) from 25 June
2015 when the Group took
control of the company and
therefore started consolidat-
ing it as a subsidiary.”
Suratgar said the impairment
of the Telerix loan notes was
prudent in light of uncertain-
ties of when the business
would be in a position to
fully repay the loans.
“The future of this business
looks positive on the back of
the acquisition by Dande-
mutande, Telerix’s operating
company, of the iWay Africa
Zimbabwe (Private) Limited
and Africa Online (Private)
Limited customers and
selected assets and liabilities
in July 2015, as well as the
commencement of a man-
agement contract awarded
to Gondwana International
Networks (Pty) Limited, a
Pan-African IT specialist
based in South Africa, which
now co-owns Dandemutande
following the transaction,”
he said.
During the year, Sable
went through fundamental
changes, following the ces-
sation of bulk power supplies
to its Kwekwe plant, which it
was using for the production
of ammonia through electrol-
ysis.
Going forward the group
chairman said, this year
would be for further consol-
idation.
“Continued emphasis is on
restructuring and optimi-
sation of the investment
portfolio to unlock value and
create a platform for future
growth, a focus on current
investments and ensuring
the companies are better
positioned to grow market
share,” he said-New Ziana●
5 news
Masawara in $4.6 mln loss

6. BH246

7. BH247

8. BH24 Reporter
HARARE-Telecoms operator
Econet Wireless has part-
nered with MTN Zambia to
establish a remittance facility
which enables MTN custom-
ers in Zambia to send money
to Zimbabwe via MTN Money
Wallet and EcoCash.
EcoCash general manager Ms
Natalie Jabangwe-Morris and
MTN Zambia head of mobile
money Mr Wane Ng’ambi of
MTN signed the partnership
in Harare this morning.
Under the partnership, a
Zimbabwean in Zambia will
send money by registering
with MTN Zambia and then
initiating a money trans-
fer request via their USSD
mobile Money short code,
then select EcoCash ZW
mobile number.
Ms Jabangwe-Morris said
the partnership will enhance
EcoCash’s global reach as it
is Sub Saharan Africa’s first
operator to operator cross
border remittance channel.
“EcoCash has been consist-
ently working to expand the
portfolio of international
remittances, from the euro,
US and now covering the
SADC corridor. Remittances
play a major role in Zimba-
bwe’s economy.
“Our role as EcoCash is to
ensure that these remit-
tances are channeled from
as far wide as possible,
through the formal market,
cost effectively, conveniently,
securely and also for the
benefit of the economy," she
said.
Econet Wireless is Zimba-
bwe’s largest mobile phone
company and has the largest
mobile money service busi-
ness in the country and one
of the largest in the region
through EcoCash, while MTN
is Africa’s largest mobile
phone company by customer
numbers, has successfully
launched similar services
with mobile money compa-
nies in East Africa.
Commenting on the develop-
ment Econet CEO Mr Douglas
Mboweni said;
“We are very excited about
this partnership with MTN
Mobile Money. This is just the
first phase. Shortly, Zimba-
bweans from more countries
with MTN footprint will be
able to send money directly
into the receiver’s EcoCash
wallet.”●
8 news
Econet, MTN Zambia launch operator-to-operator cross border remittance channel
Natalie Jabangwe-Morris

9. By Elita Chikwati
HARARE - Contractors have
bought flue cured tobacco
worth $153 million since the
opening of the marketing
season in March with Chinese
company Tian Ze leading the
buyers’ list.
Latest statistics from the
Tobacco Industry and Mar-
keting Board (TIMB) show
that contract companies have
collectively bought 53 million
kg of tobacco while buyers at
the auction floors have bought
13, 4 million kg worth $33
million.
The statistics show that by
May 11, Tian Ze had bought 8,
9 million kg of tobacco worth
$33, 1 at an average price of
$3, 77 per kg.
Tian Ze has also said the
highest price of $6, 25 per kg.
Mashonaland Tobacco Com-
pany bought 8, 7 million kg
worth $23 million, North-
ern Tobacco bought 6, 7 kg
worth 421million and Boost
Africa $6,2 million kg worth
$16,5million.
Chidziva Tobacco floors have
bought 5 million kg worth
$11, 9 million.
TIMB statistics show that the
highest price of tobacco at the
auction floors has remained at
$4, 99 per kg.
The price ceiling has contin-
ued for more than four years
with farmers accusing buyers
of forming a cartel.
Some contract companies said
they paid higher prices to
their contracted growers as an
incentive and also to discour-
age side marketing of the crop
they would have sponsored.
This season most farmers are
satisfied by the prices being
offered by buyers although
they are having challenges
with cash shortages.
Cash shortages have also put
pressure on auction floors as
farmers now spend many days
camping at the floors waiting
for their money.
Boka Tobacco Floors acting
chief executive Mr Moses
Bias said the company had to
increase ablution facilities to
cater for the increasing num-
ber of farmers.
He said some farmers were
not willing to go back home
with less money and would
rather stay at the floors while
they withdraw the money from
the banks.
“The other reasons for the
increase in the number of
people at the auction floors
is that some farmers use
a single growers number to
sell their crop and so they
will only go back home after
withdrawing the whole amount
of money for easy sharing,”
he said.
Parliamentary Portfolio Com-
mittee on Agriculture, Mech-
anisation and Irrigation last
week urged the Reserve Bank
of Zimbabwe to monitor banks
at auction floors to ensure
farmers get their money with-
out limitations. ●
Contractors buy $153m tobacco
9 news

10. HARARE - The equities mar-
ket slid as it dropped 0.12
to settle at 106.78 in trades
that was characterised by
low activity.
Three counters traded in
the red, led by milk proces-
sor Dairibord which lost $0,
0050 to close at $0, 0550.
Giant beverages firm Delta
fell by $0, 0010 to $0, 7490
while telecoms operator
Econet lost a marginal $0,
0002 to trade at $0, 2200.
There were no trades in pos-
itive territory, with activity
limited to just eleven coun-
ters.
The mining index was flat at
23.10 as Bindura, Falgold,
Hwange and RioZim all main-
tained previous price levels
at $0, 0100, $0, 0050, $0,
0300 and $0, 1499, respec-
tively - BH24 Reporter ●
ZSE10
Industrials in the red
02 03
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11. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Dairibord -8.33 5.50
Delta -0.13 74.90
Econet -0.09 22.00
Index Previous Today Move Change
Industrial 106.90 106.78 -0.12 points -0.11%
Mining 23.10 23.10 +0.00 points +0.00%
11 zse tables
ZSE
Indices
Stock Exchange
Previous
today

12. 12 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
17 May 2016
Energy
(Megawatts)
Hwange 435 MW
Kariba 598 MW
Harare 30 MW
Munyati 16 MW
Bulawayo 0 MW
Imports 0 - 400 MW
Total 1425 MW
• 18 May - ZB Building Society AGM; Place: 21 Natal Road,
Avondale, Harare; Time: 12:00hrs
• 18 May - The 76th AGM of Astra Industries Limited; Place: Auditorium at Astra Park, Corner Ridgeway North/Northend
Roads, Highlands, Harare; Time: 12:00hrs
• 19 May - The Fifth Annual General Meeting of Padenga Holdings Limited; Place: Royal Harare Golf Club, 5th Street extension,
Harare; Time: 08.15am
• 19 May - NMBZ AGM; Place: Unity Court, Corner 1st Street Kwame Nkrumah Avenue; Time: 10:00am
• 19 May - Turnall Holdings AGM; Place: Jacaranda Room, Rainbow Towers; Time: 12:00
THE BH24 DIARY

13. JOHANNESBURG - South
Africa's rand fell to its weak-
est in more than two months
on Wednesday as the dollar
rose on revived expectations
of an early Federal Reserve
rate hike after data sug-
gested the U.S. economy is
regaining momentum.
At 0728 GMT, the rand traded
at 15.7700 versus the dollar,
1.4 percent weaker from
Tuesday's New York close.
The currency was trading
at its weakest levels since
March 16, according to
Thomson Reuters data.
"Dollar gains rather than
domestic politics are the
driver," Rand Merchant Bank
analyst John Cairns said in a
note.
"The Fed remains very much
in focus today. The minutes
from the last Fed meeting, to
be released tonight, should
give us an indication of how
strongly voting members
believe in their own forecast
of two rate hikes this year."
The rand has been under
pressure since Monday,
weighed down by domestic
political uncertainty after
a news report that Finance
Minister Pravin Gordhan
faced arrest. The report was
denied by the presidency,
police and prosecutors.
Gordhan is being investi-
gated by police over the cre-
ation of a covert surveillance
unit in the revenue services
during his time as head of
the agency.
Gordhan said on Tuesday
reports of his imminent
arrest amounted to an attack
on the Treasury.
The finance minister was due
in parliament on Wednesday,
his first public appearance
since the arrest reports were
published.
Locally, focus was on April
consumer price inflation at
0800 GMT, March retail sales
numbers due later in the day,
as well as an interest rate
decision on Thursday.
Economists expect the repo
rate to be left unchanged due
to slower inflation.
On the bourse, the Top-
40 index and the broader
all-share were flat in early
trade.
Government bonds weak-
ened, with the yield for the
2026 benchmark adding 10
basis points to 9.485 percent
.-Reuters●
regioNAL News13
Rand falls on revived U.S. rate hike expectations

14. European stocks fell as
investors weighed the
possibility of the Federal
Reserve increasing interest
rates sooner than had been
expected.
The Stoxx Europe 600 Index
slipped 0.2 percent to 334
at 11:34 a.m. in London.
Shares briefly erased losses
as oil rebounded. The equity
benchmark has lost momen-
tum since an April 20 peak
as concerns about slowing
global growth and worries
over central-bank policies
resurfaced amid mixed earn-
ings reports. The index has
gone almost a month without
ending at least 1 percent
higher, signaling a lack of
triggers to boost shares.
Expectations for the U.S.
central bank to add to last
December’s interest-rate
increase are starting to build
after higher-than-expected
consumer-price data, with
comments from Fed presi-
dents Dennis Lockhart and
John Williams that at least
two interest-rate increases
may be warranted this year
also stoking speculation of a
move.
“The Fed talking up rate-
hike expectations is certainly
having a negative effect on
equity markets because the
markets have been pricing in
potentially one rate rise this
year,” said Michael Hewson, a
London-based market analyst
at CMC Markets Plc. “Cer-
tainly not one in June and
maybe one in December and
yet you have Fed officials
talking about two or three
rate hikes. We just appear
to be chopping around at the
moment in the absence of
any real certainty and that’s
likely to be the case at least
for the next few weeks.”
Investors are also await-
ing minutes from the Fed’s
April meeting, which are due
after the close of European
markets today. Traders have
boosted the probability the
central bank will increase
rates in June to 12 percent,
up from 4 percent earlier this
week. The first month with
even odds of higher borrow-
ing costs also moved up to
November from December.
Goldman Sachs Group Inc.
has cut its rating on equi-
ties to neutral, warning that
stocks won’t be attractive
until they exhibit sustained
earnings growth. The key
risks are a slowdown in
China, increased European
political uncertainty, fall-
ing commodity prices and
changes in the Fed’s inter-
est-rate cycle, according to a
strategists’ note.
Among stocks moving on cor-
porate news, Burberry Group
Plc dropped 5.5 percent after
the luxury-goods retailer
posted a second straight
drop in annual profit and cut
its outlook. Sonova Hold-
ing AG tumbled 7.5 percent
after the Swiss hearing-aid
maker’s second-half earnings
missed estimates.
Kuka AG jumped 30 per-
cent after Midea Group Co.
offered to raise its stake in
the industrial-robot maker to
become its largest share-
holder, valuing the German
company at 4.6 billion euros
($5.2 billion).
A gauge of mining-re-
lated companies posted the
biggest decline of the 19
industry groups on the Stoxx
600 as metals prices retreat-
ed.-Bloomberg●
internatioNAL News14
Europe shares drop as investors speculate on early Fed rate hike

15. By Dominic Mhiripiri
More convenience and guar-
anteed privacy when placing
a bet from a remote loca-
tion are some of the reasons
betting houses are set for
another boom when the local
regulations change to allow
online betting.
The Gaming Board of Zimba-
bwe is expected to release
updated regulations within
the next few months, making
it legal for interested Zimba-
bweans to use the internet to
gamble remotely.
Online betting will allow
many people who are not
currently punting to pursue
the hobby from the comforts
of their offices, homes, or
while they’re on the road.
The backdrop to this forth-
coming development is the
rapid growth that is already
being experienced by betting
houses locally. The betting
industry in Zimbabwe is
booming, according to an
analysis of the industry and
15 analysis15 analysis
With online gambling, the local betting industry is set for another boom

16. 16 analysis16 analysis
a subsequent article pub-
lished by Techzim early this
week.
Surging internet penetration
across Zimbabwe, especially
the paced-up unrolling of
fiber links by companies
such as Liquid Telecom and
TelOne, has seen the num-
ber of betting houses – and
the number of Zimbabweans
visiting them to gamble –
rising.
The Internet allows bet-
ting to digitize the infor-
mation-seeking process by
allowing patrons – those who
place bets – to surf the web
for information about sports
teams, news, and other rele-
vant information.
Online as the last frontier
Industry insiders say the
Gaming board has been
dragging their feet as far as
updating the legislation to
allow online betting is con-
cerned.
If a punter walks into a bet-
ting house today, they are
able to not only scour the
internet for information, but
they can also place their bet
online, and only interact with
betting clerks when making
payment/placing their bet.
The infrastructure for online
betting is in place, but can
only be used by a punter who
is inside the betting shop.
But forthcoming legislation
from the Board is set to
change all that, and there
are opportunities every-
where.
With updated legislation,
comes business opportunity
The first of beneficiary of
online betting will obviously
be the betting houses who
will multiply their current
volumes. Betters prefer-
ring anonymity because of
the stigma associated with
the hobby, or those simply
unable to physically walk into
a shop because they’re too
busy, will certainly push the
margins up.
But this is also an opportu-
nity for third party entre-
preneurs providing all kinds
of services. Local software
developers who can recreate
betting systems on virtual
platforms – or create bet-
ting apps – are one obvious
group.
Africalotto (lotto is different
from of betting on sports and
horse-racing, and also has
different regulations) has
already demonstrated how
online gambling might work
with the release of its 2014
Android app. The opportunity
for developers here, given
the numerous betting shops
and houses that Zimbabwe
boasts, is obvious.
Online news outlets are
another potential benefi-
ciary, if they can tailor their
content to the exact needs of
punters (accurate, relevant
information delivered in a
timely manner). Especially if
local betting houses take the
decisive step to cover local
sports games in leagues such
as the highly-popular Castle
Lager Premier Soccer League
(PSL).
That will not limit opportu-
nity as online advertisers
too can chime in if they can
integrate within online bet-
ting platforms (the way Sky
Betting does).
Yet another group with
potential to exploit the forth-
coming legislative changes
are the straight up newbies:
startups whose founders
not only offer betting on a
smaller scale, but who do so
on a wider range of things
beyond just sports.
Zimbabweans in particular
also follow news events, reli-
gious movements (prophets
and their pronouncements),
celebrity culture, and politi-
cal events. These can all be
added to the menu of things
that Zimbabweans can bet
on.
The opportunities to be
presented by forthcoming
developments are just about
endless. – TechZim●