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1. By Tawanda Musarurwa
HARARE –Zimbabwe’s rank-
ings on a number of interna-
tional comparative surveys
can be significantly improved
to the extent that the country
enhances its corporate govern-
ance systems, an official has
said.
The country’s image on the
global market – and conse-
quently its capacity to attract
international investors - has
been affected by corporate
governance weaknesses.
Secretary for Corporate
Governance, State Enter-
prises and Delivery Unit in the
Office of the President and
Cabinet Ambassador Stuart
Comberbach said past corpo-
rate governance weaknesses
had resulted in present poor
ratings.
“Corporate governance weak-
nesses….have contributed
to the negative perception
and consistently poor ratings
accorded to Zimbabwe in a
range of international survey
exercises,” he said.
“Notwithstanding the reserva-
tions we and other may have
concerning some of the meth-
odology used in the collection
and analysis of the base data
News Update as @ 1530 hours, Thursday 09 June 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Global comparative surveys critical: Govt
Stuart Comberbach

2. used to determine these rat-
ings, the fact is the ratings are
given, are widely publicized
and are inevitably factored
into a potential visitor’s or a
potential investors’ calcula-
tions as they consider where
to travel, with whom to trade
and where to invest.
“A closer analysis of these
ratings and the data used in
their determination confirms
the prevalence, within that
determination process, of
corporate governance failings,
bureaucratic inefficiency and
corruption.”
Ambassador Comberbach was
speaking at a ‘Baseline Data
Feedback and Corporate Gov-
ernance Review Workshop’ this
morning.
The Government is currently
in the process of enhancing
corporate governance systems
within the public sector.
Key in this respect include
the launch of the National
Code of Corporate Governance
in April last year, as well as
the ongoing preparation of a
Public Sector or Public Entities
Corporate Governance Bill
which will give legal effect and
consequences to the provision
of the National Code.
Ambassador Comberbach said
significant progress had been
made on the drafting of the
Corporate Governance Bill.
“The draft Corporate Govern-
ance Bill is now quite well-ad-
vanced,” he said.
The Government is also in the
process of amending existing
legislation relevant to corpo-
rate governance practices with
a view to enhancing trans-
parency and accountability in
both the public and private
sectors.
The baseline data feedback
and corporate governance
review workshop was aimed
at giving feedback on the
baseline data gathering survey
which is applicable to all 97
State entities, and the corpo-
rate governance compliance
survey which has involved a
group of 30 State entities.
Secretary for Finance and
Economic Development Mr
Willard Manungo said the data
collection procedures allowed
for effective overall overview
of all public enterprises.
“The baseline data has, for
the first time ever enabled
Government to gather and
ascertain a complete picture of
what the state enterprises and
parastatals (SEP) sector is like
and quantify its actual con-
tribution to the economy and
the general socio-economic
discourse for our country,” he
said.
“The data allows Treasury to
assess the overall performance
of the SEP portfolio. This
allows us to quantify the fiscal
risks, contingent liabilities
and other significant budget
implications arising from the
SEP sector.”
●
2 news

3. BH243

4. BH244

5. By Funny Hudzerema
HARARE - The European
Union is set to invest 7
million euros in a project to
enhance Zimbabwe’s eco-
nomic competiveness and
integration into the regional
and international trading
system and address trade
costs.
The EU project is expected
to be implemented next
year running up to 2020
entitled the Zimbabwe-Eco-
nomic Partnership Agreement
Implementation Support
Project (Zi-EPA).
Head of EU delegation to
Zimbabwe Ambassador
Philippe Van Damme said the
project will assist the whole
business sector through pro-
viding trade information and
how to export to different
markets.
“Just last week we concluded
work to formulate a trade
project funded from the
regional envelopes of the
11th European Development
Fund.
“The project is for a total
amount of 7 million euros
and will come in addition to
the funds earmarked for Zim-
babwe at a national level,”
he said.
He added that the over-
all objective of the project
is to enhance Zimbabwe’s
economic competitiveness
through addressing pol-
icy barriers and regulatory
costs.
The fund will also be used to
address high trade costs and
strengthening the capacity
of trade related institutions
to help SMEs access export
support service providers and
the project is expected to
feed and increase the impact
of the Trade Information
Portal.
He said this while speaking
during the official launch of
the Zimbabwe Trade Informa-
tion Portal (ZTIP) an inter-
net-based platform for the
provision of trade informa-
tion services.
“ZTIP has an ambition to
provide a comprehensive
single-point access of up
to-date trade, investment,
economic and regulatory
information including infor-
mation on duties taxes and
other trade facilitation type
of information.
“As you know Zimbabwe
products have a completely
duty and quota free access
to EU market under the Eco-
nomic Partnership Agreement
ratified in 2012 but it is
important to understand this
market and its quality and
safety standards in order to
fully exploit its potentiali-
ties,” he said.
He added that the portal will
increase the visibility of Zim-
babwe companies engaged
in international trade and
provide reliable information
on the local trade environ-
ment and this will assist
Government to come up with
policies which promote trade.
Minister of Industry and
Commerce Mike Bimha said
local companies should
embrace the trade portal
to increase their exports
through gathering market
information of different mar-
kets.
“I urge Zimbabwean business
particularly the manufactur-
ing sector to make use of the
ZTIP to access quality market
information and data in order
to make informed business
decisions,” he said.●
EU to fund Zim economic competiveness & regional integration programme
5 news
Philippe Van Damme

6. BH246

7. BH247

8. HARARE –The International
Air Transport Association
(IATA) has said it had revised
up its 2016 profit outlook
for the global air transport
industry, to $39,4 billion
from $35,3 billion last year.
IATA represents some 260
airlines accounting for 83
percent of global air traffic.
In its financial outlook, 2016
is expected to be the fifth
consecutive year of improv-
ing aggregate industry prof-
its. Revenues are expected at
$709 billion, and net profit
margin of 5,6 percent.
In 2015, airlines generated
a global total profit of $35,3
billion. Passenger demand
was robust last year, and this
year it is expected to grow
by 6,2 percent to reach 3,8
billion.
The passenger business is
this year projected to gener-
ate $511 billion in revenues,
accounting for the bulk of
total revenue, but down from
$518 billion recorded last
year.
Airline capacity is, on the
other hand, expected to grow
slightly ahead of demand at
6,8 percent. African air-
lines capacity growth at 5,3
percent was anticipated to
outpace demand growth of
4,5 percent.
In the outlook, over half of
the industry profits will be
generated in North America
at $22,9 billion while African
carriers are forecast to incur
a combined loss of $500
million.
“It will be a slight improve-
ment on the $700 million
that the region’s carriers lost
last year,” Tony Tyler, IATA’s
Director General and
chief executive, said.
Tyler said carriers in Africa
faced a “plethora” of chal-
lenges including intense
competition on long-haul
routes, political barriers,
high costs and infrastructure
deficiencies.
“In addition many major
economies (in Africa) have
been hit hard by the collapse
of commodity prices..."
“Unresolved foreign exchange
crises are adding to the
economic difficulties facing
airlines in this region,” he
said.-New Ziana ●
8 news
Air industry profitability outlook improves – IATA

9. BH249

10. BH2410

11. By Funny Hudzerema
HARARE - Government is targeting
to have power surplus by 2018
through the ongoing implemen-
tation of a number of projects, an
official has said.
Ministry of Energy and Power
Development director for policy and
planning Mr Benson Munyaradzi
said power demand is also declining
through efficient use of power by
stakeholders.
“Going forward we don’t antici-
pate power shortages up to 2018
through a number of power projects
which we are carrying out. Actually
we are going to have power sur-
plus.
“Government has put in place long
term and short term measures
targeting to increase power in the
country. The short term measures
include the use of diesel genera-
tors with the one at Dema which is
expected to produce 100 mega-
watts for the grid,” he said.
He added that the demand for
power in Zimbabwe reached a max-
imum demand of 2 200 megawatts
in 1996 that is the highest demand
that we have ever reached and
today maximum demand is aver-
aging 1300 to 1500 megawatts.
“There is a decline in demand for
power especially in the former
major consumers which is the
mining, agricultural and manufac-
turing sector,” he said. He also said
that Government have registered
a number of power companies we
hope that if they manage to have
funds to successfully complete the
projects we will have surplus power
because we will be able to produce
up to 4 000 megawatts.
“There is expansion at Kariba
which is now 45 percent complete
and the first unit is going to be
commissioned in 2018, so we are
on schedule and after completion
we will get an extra 300 megawatts
from Kariba,” he said. The demand
for electricity is growing by 3 to 4
percent every year.
“As a ministry we have some policy
interventions we going through set-
ting targets using the SDGs mainly
focusing on power, we have started
working on the SDG through a UN
project called sustainable energy for
all and we are creating the action
agenda is expected to be completed
in 2018.
“We are also developing the bio-fu-
els policy and is completed is set
for approval from cabinet and the
IPP policy just to mention a few,” he
added●
11 news
‘Zim to have power surplus by 2018’
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12. BH2412

13. HARARE - The mainstream
industrial index dropped
3.30 to settle at 99.56 as
beverages giant Delta lost a
significant $0,0670 to close
at $0,6030 while OK Zim
decreased by $0,0080 to
$0,0350.
On the upside, cigarette
giant BAT surged $0,0787
to close at $11,8787, while
Natfoods added $0,0200 to
trade at $2,1000 while meat
processor Colcom was up
$0,0055 to close at 0,1605.
Also on the up was Masimba
Holdings which inched up
$0,0001 to trade at $0,0076.
The mining index was flat at
26.24 as Bindura, Falgold,
Hwange and RioZim remained
unchanged on previous price
levels at $0,0120, $0,0050,
$0,0300 and $0,1700 in that
order
BH24 Reporter ●
Industrials remain bearish
13 zse

14. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Colcom 3.54 16.05 OK Zim -18.60 3.50
Masimba 1.33 0.76 Delta -10.00 60.30
Natfoods 0.96 210.00
BAT 0.66 1,187.87
Index Previous Today Move Change
Industrial 102.86 99.56 -3.30 points -3.21%
Mining 26.24 26.24 +0.00 points +0.00%
14 zse tables
ZSE
Indices
Stock Exchange
Previous
today

15. 15 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
09 June 2016
Energy
(Megawatts)
Hwange 586 MW
Kariba 557 MW
Harare 20 MW
Munyati 18 MW
Bulawayo 24 MW
Imports 0 - 400 MW
Total 1490 MW
15 JUNE 2016 -- Rainbow Tourism Group 7th Annual
General Meeting; Time: Jacaranda Rooms 2 and 3 at the Rainbow Tourism Hotel and Conference Centre, 1 Pennefather Avenue,
Samora Machel Avenue West, Harare; Time: 1200 hours...
16 JUNE 2016 -- RioZim 60th Annual General Meeting; Place: No. 1 Kenilworth Road, Highlands, Harare; Time: 10.30 hours...
22 JUNE 2016 -- Zimre Holdings Limited 18th Annual General Meeting; Place: NICOZDIAMOND Auditorium, 7th Floor Insur-
ance Centre, 30 Samora Machel Avenue, Harare; Time: 1430 hours...
22 JUNE 2016 -- GB Holdings Limited Annual General Meeting; Place: Cernol Chemicals Boardroom, 111 Dagenham Road, Wil-
lowvale, Harare; Time: 11.30 hours...
23 JUNE 2016 -- Zimpapers 89th Annual General Meeting; Place: Zimpapers Ltd Boardroom, Sixth Floor Herald House, Cnr. G.
Silundika/Sam Nujoma Street, Harare; Time: 1200hrs…
24 JUNE 2016 -- Dawn Properties Annual General Meeting; Place: Great Indaba Room, at the Monomotapa Hotel, 54 Parklane,
Harare on Friday; Time: 10:00 hours...
THE BH24 DIARY

16. ABUJA - Nigeria's govern-
ment will next week pump
much of the 350 billion naira
($1.76 billion) earmarked
for capital projects this
quarter into Africa's biggest
economy, the budget minis-
ter said on Wednesday.
The spending is part of
efforts by the OPEC member
to stimulate an economy
that contracted by 0.4 per-
cent in the first quarter of
the year. It is going through
its deepest crisis in dec-
ades, brought on by the fall
in crude prices.
In May, Finance Minister
Kemi Adeosun said 350 bil-
lion naira would be injected
into the economy "every
quarter until we stimulate
growth".
"We expect ... the Ministry
of Works ...(to) have quite
a substantial release in the
next week or so," Budget
Minister Udoma Udo Udoma
told reporters.
The cabinet expects that
various ministries, depart-
ments and agencies "should
fast track processes for the
capital budgets releases so
that the economy can be
quickly reflated," he said,
adding that the impact
would be seen "by the third
quarter".
Last month Nigeria's central
bank governor said a reces-
sion appeared to be "immi-
nent".
President Muhammadu
Buhari signed the delayed
2016 budget into law last
month. The record 6.06
trillion naira ($30.6 bil-
lion) budget triples capital
expenditure compared with
the previous year.
The government plans to
generate 3.38 trillion naira
this year from non-oil
sources, up 87 percent from
1.81 trillion in 2015.
- Reuters●
16
Rand stumbles after economy contracts
sharplyNigeria plans to put up to $1.7 billion into
capital projects in coming days
regioNAL News
JOHANNESBURG -South
Africa's rand retreated on
Thursday as investor con-
fidence was rattled by data
showing the economy had
contracted sharply in the
first quarter, raising the
risk of recession just as the
country dodged downgrades
to subinvestment grade.
By 0645 GMT the rand had
slipped 0.29 percent to
14.7675 per dollar, wiping
out gains that saw the unit
climb to a five-week high
after Fitch affirmed South
Africa's investment grade
credit rating and main-
tained its stable outlook.
Bonds also backtracked
with yields on government
paper edging back up, with
the benchmark paper due in
2026 adding 2 basis points
to 9.07 percent.
Africa's most industrial-
ised economy now looks on
track for its first reces-
sion in seven years after
economic output fell by 1.2
percent, according to Stats
SA, as mining and agricul-
tural sectors contracted
sharply.
Traders, however, said the
rand was likely to resume
its rally as high-yielding
emerging assets remained
in favour with investors
betting the United States
would only raise lending
rates later in the year.
"If local factors are mixed,
global factors are certainly
positive. The environment
has been risk-on ever since
(Federal Reserve Chair
Janet) Yellen’s Monday
speech," said currency
strategist at Rand Merchant
Bank John Cairns in a note.
Cairns said the weak
growth data also suggested
the South African Reserve
Bank's tightening cycle,
which has seen the bank
lift rates by 200 basis
points since 2014, was over
- Reuters●

17. Oil traded near the highest
closing level in more than 10
months amid declining U.S.
crude stockpiles and disrup-
tions in producing nations
such as Canada and Nigeria.
Futures were little changed
in New York, paring an ear-
lier increase of 0.9 percent,
after settling on Wednesday
at the highest since July 15.
Crude stockpiles dropped
by 3.23 million barrels last
week to the lowest in two
months, the U.S. Energy
Information Administration
said on Wednesday. A new
wildfire prompted Canadian
oil producers Cenovus Energy
Inc. and Canadian Natural
Resources Ltd. to shut pro-
duction.
Crude has surged more than
95 percent from a 12-year
low in February amid unex-
pected disruptions and a
steady slide in U.S. output,
which is under pressure from
the Organization of Petro-
leum Exporting Countries’
policy of pumping without
limits. Militant attacks have
hobbled production in OPEC
member Nigeria.
“It was the crude draw that
caught the eye” as refin-
ers boosted operations and
used more oil from storage,
Tamas Varga, an analyst at
PVM Oil Associates Ltd. in
London, said in a report.
Price gains “would have been
moderate without some help
from Nigeria,” where a new
militant group, the Niger
Delta Avengers, is targeting
facilities.
West Texas Intermediate for
July delivery traded 12 cents
lower at $51.11 a barrel
on the New York Mercantile
Exchange as of 9:23 a.m.
London time, having risen
as much 44 cents to $51.67.
Total volume traded was
about 20 percent below the
100-day average. The con-
tract rose 87 cents, or 1.7
percent, to close at $51.23
on Wednesday, the highest
since July 15.
Brent for August settlement
gained as much as 35 cents,
or 0.7 percent, to $52.86 a
barrel on the London-based
ICE Futures Europe
exchange.
The global benchmark crude
traded at a 55-cent premium
to WTI for August delivery.
U.S. Supplies
Bottom of Form
U.S. oil stockpiles declined
for a third week, to 532.5
million barrels, EIA data
showed. The drop exceeded
the 3 million barrel slide
forecast in a Bloomberg
survey. Crude inventories
at Cushing, Oklahoma, the
delivery point for WTI and
the nation’s biggest oil-stor-
age hub, fell for a third week
to 65.6 million barrels. U.S.
production increased 0.1
percent last week, halting 12
weeks of declines.
A new wildfire in Canada
forced Cenovus to evacuate
workers and shut its Peli-
can Lake operations while
Canadian Natural Resources
brought down output from a
nearby site, the companies
said Wednesday. Fires in
Canada’s oil-sands region of
Alberta are expected to dis-
rupt supplies by an average
of 400,000 barrels a day this
month, according to the EIA.
- Bloomberg●
17
Oil trades near 10-month high as U.S. crude stockpiles decline
internatioNAL News

18. By Indra de Lanerolle
When most people think or
speak about internet freedom,
they are often concerned with
the right, for example, to say
what you want online without
censorship and without being
subject to the chilling effects
of surveillance. These kind of
freedoms are sometimes called
"negative freedoms" or "free-
doms from…". They address
the right not to be interfered
with or obstructed in living your
life. But there are also "positive
freedoms" — "freedoms to…"
Some constitutions — notably
the US Constitution — only
protect negative rights. But
SA’s includes both negative and
positive rights. Positive rights
include, for example, the soci-
oeconomic rights to food and
shelter.
In its Internet Freedom Index
Freedom House ranks SA as
"free" alongside the UK, Argen-
tina and Kenya. The ranking is
largely because Freedom House
weighs negative freedoms above
positive ones. But how "free"
is the internet in SA? For most,
it is positive internet freedoms
that may be more urgent.
Freedom is access
The South African Constitution
in the Bill of Rights does not
explicitly protect internet free-
dom but section 16(1) states
that everyone has the right to
"freedom to receive or impart
information or ideas". This is a
right for everyone and it is not
just a freedom from interfer-
ence — a "freedom from" — but
also a "freedom to": a right to
be able to reach others and be
reached by others. In this it fol-
lows Article 19 of the Universal
Declaration of Human Rights.
In his book Development
as Freedom, Amartya Sen
describes freedom as "our capa-
bility to lead the kind of lives we
have reason to value". In many
ways, the internet is extending
such capabilities.
More people now go online daily
than read a newspaper. They
are able to read a much greater
variety of voices than are seen
in print or on television. And
public services are offering
improved responsiveness on
social media.
But we are also seeing a new
development — instances where
internet access is now a require-
ment. Examples include regis-
tering a company; the Gauteng
education department now
requiring parents with children
entering primary or high school
to apply online (previously they
could apply at the local school);
and the SABC announcing that it
will no longer advertise its jobs
in newspapers, directing job
seekers to its own website.
Indications from the govern-
ment are that we are likely
to see more such initiatives.
The result will be that South
Africans’ ability to lead the kind
of lives they value will become
increasingly dependent on the
physical, procedural, economic
and social networks that we call
"the internet".
The question of cost
According to the All Media
Products Survey (AMPS) of
June 2015, fewer than half of
South African adults had used
the internet in the previous four
weeks. More than half did not
use it.
When a representative sample
of nonusers in SA was asked in
2012 why they had not gone
online, the main reason was
that they had no device with
which to connect to the internet
(87 percent). The second reason
was that they did not know how
to use it (76 percent) and the
third was that it was too expen-
sive (60 percent).
According to the survey, nine
out of 10 South Africans use a
mobile phone but only half of
those have access to smart-
phones. The most popular phone
brand in SA is still Nokia. Most
of the models in use have lim-
ited or no ability to connect to
the internet. And because only
the better-off have access to
fixed lines at home or at work,
the majority of South Africans,
when they do get online, are
dependent on mobile networks.
18 analysis18 analysis
Ability to lead the type of life we value is increasingly dependent on internet access

19. 19 analysis19 analysis
Mobile data is costly
The International Telecommu-
nications Union and the UN’s
Educational, Scientific and
Cultural Organisation have set
a goal for affordable broadband
internet access. It is that entry-
level broadband service should
not cost more than 5 percent
of average monthly income.
Because of a flawed methodol-
ogy, they state in a 2015 annual
report that SA falls well within
that target. But digging into the
figures shows how unaffordable
the internet is for most South
Africans.
Statistics SA sets an upper
bound poverty line of R779
per month per person (in
2011 prices). Most — about 53
percent — of the South Afri-
can population live on income
below this, according to the last
census. So this poverty line is
more or less the average income
in the country. The poverty line
adjusted for inflation to 2016
would be R1,031 per month.
Taking the international 5
percent of income goal gives
a maximum budget of about
R52 per month. On three major
networks (which account for
more than 95 percent of all
mobile customers) 500MB —
the amount of data they set
as a minimum — of data costs
between R85 and R105. So
for the average South African
500MB per month is unafforda-
ble. In fact, mobile data prices
would have to fall by about half
to be affordable. And is 500MB
per month enough? It is enough
for a lot of instant messaging,
or say about half an hour a day
of browsing the web or using
Facebook. But it is not enough
to participate in otherwise free
online courses such as Kahn
Academy that often rely heavily
on video.
This is affecting usage. The
most popular online activity
is instant messaging, through
applications such as WhatsApp.
But only one in five people
downloads music online. Could
mobile data be much cheaper
in SA? Evidence suggests that
the answer is yes. Research ICT
Africa’s price index shows that
SA’s data prices are more than
20 percent more expensive than
Nigeria, Uganda and Mozam-
bique’s, and three times as
expensive as Kenya’s.
It is also worth noting that the
poor in SA pay much more for
data than the better-off. If you
have a fixed line in your home
you can buy pre-paid data bun-
dles for R7 per GB or even less,
a small fraction of what mobile
network users pay.
Free internet?
We could go further and ask if
the internet could and should
not only be cheaper but free. In
some places and for some peo-
ple it already is. That includes
university students, thanks to a
network for tertiary institutions
funded by the government. It
also includes many residents
in the metropole of Tshwane —
including townships — where
there are more than 600 WiFi
hotspots offering 500MB of data
per day at fast speeds for free.
Just as South African munici-
palities give poor households a
minimum amount of 600 litres
of water and 50kwh of electric-
ity for free, they could extend
this model to the internet.
As lawyers sometimes say, the
right to freedom of expression
is an "enabling right" — a right
that enables people to access
or defend other rights. In the
same way, the internet itself is
now an enabling technology that
is increasingly required to par-
ticipate in social, political and
economic life.
For many or most South Afri-
cans whether or not the Films
and Publications Board inter-
feres with their right to view
video material online does not
affect "their capability to lead
the lives they value", because
they cannot afford to access
video or audio content online.
At present, defending "negative"
internet rights is protecting the
rights of the few. We need to
move to demanding the "posi-
tive right" of affordable access
if we want internet freedom for
all – The Conversation●