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1. BH24 Reporter
HARARE – Diversified insur-
ance firm Fidelity Life Assur-
ance Ltd has sent managing
director Mr Simon Chapereka
and finance director Mr Ger-
man Mushoma on leave to
pave way for an audit of the
insurance firm.
There have been allegations
of corporate governance mal-
practices at the firm, which
has forced the Insurance
and Pensions Commission
(IPEC)’s hand in appointing
KPMG Chartered Accountants
(Zimbabwe) to conduct the
audit.
Meanwhile, the company’s
board has appointed Mrs
Nyaradzo Matindike as acting
MD in the interim.
In a statement to stake-
holders today, the company
said IPEC has decided to
take the matter into its own
hands after initial results
of an internal investigation
appeared in the media.
“Preliminary results of the
internal audit review were
unfortunately leaked to the
press. While these internal
processes were ongoing,
IPEC requested an ons-
ite examination. To con-
clude their report, IPEC has
appointed KPMG Chartered
Accountants (Zimbabwe) to
conduct a forensic audit in
terms of Section 67(2) of
the Insurance Act Chapter
24:07. This audit is intended
to clarify issues relating to
business operations, and
allegations of corporate gov-
ernance malpractices at the
company.
“As part of good corporate
governance and in order to
facilitate the swift execution
of this mandate, the manag-
ing director, Mr S. B. Chap-
ereka and the finance direc-
tor, Mr. G. Mushoma, will be
on leave during the tenure of
the audit.
“In the interim the Board has
appointed Mrs Nyaradzo Mat-
indike as acting managing
director,” said the company.
The group reported a 36
percent increase in revenue
in the full-year to December
31, 2015 to $17,2 mil-
lion from $16,5 million in
FY2014.●
News Update as @ 1530 hours, Friday 08 April 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Chapereka, Mushoma sent on forced leave
Mr Simon Chapereka

2. BH24
TAA:DI251386-Y22
2

3. New money not circulating: RBZ
3 news
By Tawanda Musarurwa
HARARE -The Reserve Bank of
Zimbabwe (RBZ) and several
banks have so far imported United
States dollars to the tune of $263
million to enhance liquidity in the
market, but there are concerns
that the new money is not effec-
tively circulating in the economy.
For the first quarter of 2016, the
RBZ imported $145 million, while
several banks have imported a
total of $118 million during the
first four months of the year.
RBZ governor Dr John Mangudya
told the Parliamentary Portfo-
lio Committee on Finance and
Economic Development some indi-
viduals or firms may be holding
onto the money for speculative
purposes.
“Another reason why there is
demand for cash in this economy
is for speculative purposes. Spec-
ulation here is mainly because of
a lack of confidence, and confi-
dence is a function of policies...
it means if people think that their
money is not safe in the banks,
they take it away.
“We can handle the transactional
and contingency requirements
of cash, but the demand for
speculative purposes is too high.
We know the amount we have
imported over the past three
months and we are aware that
under normal circumstances it is
sufficient for this economy,” he
said. Cash shortages have hit the
economy in recent weeks, with
banks placing limitations on cash
that can be accessed at any one
time. “Banks are trying to ration
the available resources to ensure
that at least they can spread it
among their customers, and this
is very critical,” said Dr Mangudya.
“As a Reserve Bank we have
injected a figure of $145 million
in the first three months of the
year....but it’s not circulating as
much as we want because we
don’t see the new money being
deposited, we only see the old
money being deposited.”
“And between January and April
this year, banks have imported
$118 million.”
In addition to the importation of
cash, the RBZ governor said they
were putting in place measures
to improve the liquidity situation
in the country, including work-
ing with the Afreximbank to set
up a ‘nostro stabilisation fund’
to improve the country’s nostro
situation. He also said the central
bank was engaging the business
community to put in place a prior-
ity list of critical imports, in order
to reduce cash outflows through
unnecessary imports. Related to
this, Dr Mangudya added that
reviving the country’s manufac-
turing sector and promoting a buy
local policy would help in improv-
ing reducing cash outflows.
Improving Zimbabwe’s productive
sector will help boost sources of
foreign exchange for the country,
because currently the key sources
of forex are exports of gold,
tobacco, platinum and diamonds,
which constitute about 80 percent
of exports, while another source is
Diaspora remittances. ●
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4. BH244

5. BH245

6. HARARE –The Government has
intervened to end the strike by
National Railways of Zimbabwe
(NRZ) workers through engag-
ing the company's creditors,
pushing them to pay up, a cabi-
net Minister said on Thursday.
The workers downed tools last
week to push their employer
to pay them 14 months’ salary
arrears.
NRZ is reeling from a debt
of over US$30 million, while
parastatals such as the Grain
Marketing Board (GMB) and
Ziscosteel owe it $7 million
and $9 million respectively.
Responding to questions in
Senate, Transport and Infra-
structure Development Minister
Jorum Gumbo said some of NRZ
creditors had started paying
off debts and resultantly work-
ers were being paid.
“As a ministry, we then looked
into NRZ creditors and fol-
lowed them up. Most of them
are Government departments,
so they are now paying using
Treasury Bills.
“We have paid most of the
workers so far. By Friday, we
would have paid the remaining
workers the little money they
agreed with management,” he
said.
Minister Gumbo appealed to
workers return to their work
stations so they could start
moving grain which the govern-
ment imported to alleviate food
shortages.
“We are however insisting pay-
ment first before agreeing to
move any goods,” he said.
A decline in business has
paralyzed operations of the rail
utility over the years.
The NRZ is moving an aver-
age of three million tons of
cargo annually compared to
12 million tons in 1992 and 19
million tons in 1997. At least
93 percent of its revenue used
to come from freight services.
The parastatal has been strug-
gling to attract new investors
since the turn of the millen-
nium. According to a study
done by a Canadian consultancy
firm in 2012, the parastatal
requires $1,9 billion for recapi-
talisation.- New Ziana ●
6 news
Govt seized with NRZ workers strike- Minister

7. HARARE -Retailers in Zimba-
bwe should use conventional
strategies to market products
in the face of stiff competi-
tion rather than resorting to
engaging touts, an expert said
on Thursday.
Confederation of Zimbabwe
Retailers president Denford
Mutashu said retailers should
use orthodox methods to sur-
vive the stiff competition that
has arisen on the market.
Many clothing retailers in the
capital are now employing touts
to lure customers into their
shops, with the practice extend-
ing to butcheries and super-
markets as they battle to out
manoeuvre street vendors.
Mr Mutashu urged retailers to
desist from engaging touts to
attract customers and instead
find holistic market approaches
for survival.
“This is an unconventional
method of marketing and it
causes discomfort to customers
as the touts will be using loud
hailers attached to radio speak-
ers which make a lot of noise,”
he said.
He said the influx of cheap
second hand clothes was leading
shop owners to engage touts to
advertise local products.
“We continue to see the coming
in of the second hand clothes
creating serious competition
and bearing pressure on retail-
ers of local products,” he said.
Mr Mutashu noted that the
import bill on clothing for the
first quota was continuing to
soar at $7 billion while exports
stood at $3,5 billion.
He urged the government to
assist the cotton industry to
develop and be able to add
value to the crop so as to
reduce imports of fabrics - New
Ziana●
7 news
Retailers urged to employ conventional marketing strategies

8. HARARE -Gains over the
last three trades pushed the
equities market to a 0.12
upturn from the previous
week.
The mainstream industrial
index closed the week higher
at 97.92 after adding 0.17
as seed producer SeedCo
added $0,0050 to trade at
$0,6500, while GetBucks
moved up $0,0030 to trade
at $0,0400 and giant insurer
Old Mutual was up $0,0025
to trade at $2,2125.
Also trading in the green was Meikles which gained $0,0010 to settle at
$0,0722.On the downside,
Zimre Holdings was the only
lame duck as it slid $0,0002
to close at $0,0178.The
mining index gained 0.47 to
close at 20.16 after RioZim
rose $0,0060 to trade at
$0,1100.
Bindura, Falgold and Hwange
maintained previous price
levels at $0,0102, $0,0050
and $0,0300 respectively.
On a week-on-week basis,
the mining index strength-
ened by 0.63.
- BH24 Reporter ●
ZSE8
Industrials ends week on a high

9. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
GetBucks 8.10 4.00 Zimre -1.11 1.78
RioZim 5.76 11.00
Meikles 1.40 7.22
SeedCo 0.77 65.00
Old Mutual 0.11 221.25
Index Previous Today Move Change
Industrial 97.75 97.92 +0.17 points +0.17%
Mining 19.69 20.16 +0.47 points +2.39%
9 zse tables
ZSE
Indices
Stock Exchange
Previous
today

10. 10 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
08 April 2016
Energy
(Megawatts)
Hwange 437 MW
Kariba 453 MW
Harare 30 MW
Munyati 24 MW
Bulawayo 24 MW
Imports 0 - 400 MW
Total 1268 MW
Upcoming AGM
• Falgold, KPMG Building, Corner 14th Avenue/Josiah Tongogara Street, Bulawayo,13 April, 1000hrs
THE BH24 DIARY

11. LUANDA - Angola's central
bank has cut the amount of
hard currency travellers can
take abroad under new rules
to cope with a decline in for-
eign exchange reserves.
Under the rules made public
late on Thursday, the bank
cut the sum that can be
taken abroad to $10 000
from $15 000.
Hit by a collapse in the price
of crude oil, Africa's second
largest oil exporter has been
depleting its reserves at a
faster rate to fund imports
and pay down government
debt.
Oil output represents 40
percent of gross domestic
product and more than 95
percent of foreign exchange
revenue. Brent crude traded
below $39 a barrel this week,
down more than 30 percent
compared with a year ago. -
Reuters- Reuters●
regioNAL News11
Angola beefs up currency controls to cope with FX shortage
Improved emerging markets sentiment boosts SA rand
JOHANNESBURG - South
Africa's rand gained 1 percent
against the dollar on Friday, as
improved global risk appetite
offset investors' worries about
the domestic uncertain political
and economic climate.
By 0748 GMT the rand had
gained 1 percent to 15,1355
per dollar in a rally that kicked-
off in offshore trade, where the
unit strengthened as high as
15,1420.
"Its been very choppy trad-
ing. The rand is moving in the
ranges and we've seen a bit of
improvement in sentiment in
emerging markets. But there's
not a lot of liquidity which is
why we are seeing these large
moves," chief dealer at Bidvest
Bank said Ion de Vleeschauwer.
The rand has struggled to hold
on to gains below the 15,2000
technical resistance point, but
looked set to end the week
below the mark as traders
held off bets with a dearth of
domestic and offshore data in
the session.
"There has been a little bit of
tick back with some traders
squaring up before the week-
end. It looks like there is some
support for the rand in higher
15,20's," de Vleeschauwer said.
The rand failed to gain any
traction from positive business
confidence and manufacturing
data in the previous session,
with worries over political ten-
sion weighing on sentiment, but
gradually gained momentum in
overnight trade.
Bonds were flat in early trade,
with the benchmark gov-
ernment issue due in 2026
unmoved at 9,275 percent.
Stocks were higher in early
trade, with the JSE's Top-40
index rising 0,48 percent to
45,239 points. - Reuters●

12. European equities rebounded
from their lowest levels since
February, spurred by gains
in commodity producers and
lenders.
With a 0,7 percent advance
at 8:17 a.m. in London, the
Stoxx Europe 600 Index is
trimming a fourth weekly
loss, its longest streak
since October 2014. All of
its industry groups rose on
Friday, with Anglo Ameri-
can Plc and Rio Tinto Group
leading gains among miners.
Italian lenders rallied, with
the industry now heading for
its biggest gain in almost a
month.
The rally that lifted equities
from a Feb. 11 low has been
losing steam amid renewed
concerns over the strength
of the global economy. The
industry groups that led the
advance then -- automakers,
miners and banks -- were
the ones falling the most this
week. The Stoxx 600 lost
4,8 percent from its high on
March 14 through Thursday’s
close, taking its valuation to
14,5 times estimated earn-
ings, near the lowest in more
than a year relative to US
equities.
As the gains in the Euro-
pean index began stalling, a
gauge of options prices for
the region started to rise.
The VStoxx Index is heading
for a third week of increases,
the longest streak since
January.
UniCredit SpA jumped 5,1
percent after its chief exec-
utive officer said financial
institutions in Italy are
“intensively” working on a
solution that would see pri-
vate investors participate in
a fund aimed at supporting
the recapitalisation of trou-
bled lenders. Banca Popolare
dell’Emilia Romagna SC and
Banca Monte dei Paschi di
Siena SpA climbed more than
3 percent.
Air France-KLM Group added
1,9 percent after reporting
an increase in passengers
for March. Axel Springer SE
jumped 6,4 percent after
JPMorgan Chase & Co. raised
its rating on the stock to the
equivalent of a buy.
Tullow Oil Plc was among the
less than 100 shares in the
Stoxx 600 that fell. It slid
3 percent after saying flows
from a production vessel at
its flagship field offshore
Ghana will be further delayed
- Bloomberg●
internatioNAL News12
Mining stocks lead rebound in Europe equities from February low

13. By Jason Hamlin
The gold price advanced
sharply during the first three
months of 2016 (+16 per-
cent), marking its best quar-
ter in 30 years. However, it
corrected from a high around
$1 287 to $1 200 over the
past few weeks. There was a
nice bounce yesterday, but
gold has once gain dropped
today, back below $1 220.
With this latest pullback
in the gold price, many
investors are wondering if
the 2016 rally was a false
breakout or if the new gold
bull market is just getting
started.
Admittedly, short-term price
movements in the gold
market are very difficult to
predict. But we can get some
idea of how deep the current
correction might go by look-
ing at the technical chart.
This shows the uptrend that
has been in place since
December and the support
this trend line offers at the
$1 200 level. This level gets
additional support from being
a key point of resistance and
support on several occasions
over the past few years.
The RSI momentum indica-
tor is not yet oversold and
suggests there could be more
downside ahead for gold in
the short term. I believe
another drop to test support
at $1 200 is likely and if this
fails, the next stop is at the
confluence of the 100 and
200-day moving averages
around $1 145.
So is there more downside
ahead for gold?
I think so and I have resisted
the urge to buy the dip or
add on yesterday’s rebound.
13 analysis13 analysis
Gold is testing key technical support – is there more downside ahead?

14. 14 analysis14 analysis
My medium-term and long-
term sentiment remain very
bullish, as I believe the odds
that gold has bottomed have
increased substantially over
the past few months. If this
is correct, the gold bull mar-
ket is just getting going and
the upside potential remains
huge.
For those starting to doubt
the sustainability of the gold
rally, please keep in mind
that these types of pullbacks
are healthy for the longer-
term uptrend in the gold
price. A period of consolida-
tion is normal after such a
quick and powerful rally and
helps to rest the bull and
prepare for the next leg up.
Gold would need to drop
below $1 200 and then fail
to find support around $1
145 for us to turn bearish
again. One positive sign
for gold bulls is that min-
ing stocks have not led gold
to the downside during the
current pullback. In fact,
since the top on March 10th,
gold (via GLD) is down 2,2
percent, while mining stocks
(via GDX) are actually up 2,6
percent.
Insiders remain buyers and
have increased their bullish
bets over the past month,
according to Canadianinsider.
com. Nearly twice as many
insiders were buying versus
selling this week (65 buying
vs 36 selling), although it
is down from 79 buying/36
selling yesterday.
Mining stocks have been
offering leverage of 3X the
advance in the gold price
year-to-date. You can see
the bounce in the HUI/Gold
index below, but mining
stocks remain near the most
undervalued levels of the
entire bull market. They are
even more undervalued today
than they were at the depths
of the 2008/09 financial
crisis.
What does all of this mean
for gold investors?
A little patience is warranted
during this pullback given
the technical signals, but the
gold bull market that started
in December of 2015 remains
firmly intact. Those con-
cerned that they have missed
the train, should not worry.
Although many gold stocks
have doubled in the first few
months of the year, mining
stocks still remain near their
most undervalued levels
(relative to the metals) ever.
Even the mining stocks that
have doubled in 2016, would
still need to climb another
5 to 10 times to reach their
2011 highs.
Gold most likely bottomed
around $1 045, central bank
demand and investment
demand remain very robust,
while global output is flat
and the FED has walked back
rate hike expectations signif-
icantly. Precious metals are
one of the only asset classes
that are undervalued at the
current time. We believe that
if stocks turn lower once
again and investors flee the
equity market, the enormity
of funds rushing into the
gold market will overwhelm
the available supply. This
is going to cause a rapid
upwards revaluation of the
gold price.
Furthermore, to whatever
extent that the gold price
has been manipulated and
suppressed, the reality of
price discovery moving to
China will likely reduce the
ability of Western banks and
government to hold down the
gold price.
The bottom line is that I see
this pullback as a buying
opportunity, but believe
buyers are likely to see
better prices by waiting a
bit longer. Over the next
few years, I believe great
amounts of wealth will be
made by those picking up
undervalued mining stocks
near the bottom of this mul-
ti-year correction in precious
metals. Will you be one of
them? - GoldStockBull ●