A digital copy of the BH24 (28 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.

1. By Tawanda Musarurwa
HARARE - Players in Zimba-
bwe's gold sector say they
requires $600 million in cap-
ital investment over the next
four years to boost capacity
and output, a new survey
shows.
According to the Zimbabwe
State of the Mining Indus-
try Report 2015, which was
compiled by The University of
Zimbabwe (UZ) in conjunction
with the Chamber of Mines
Zimbabwe, respondents said
they require $600 million in
capex that will see output in
the gold sector rising to 35
tonnes by 2020.
Last year, the gold sector pro-
duced 20 tonnes.
Presenting the outcomes of
the survey this morning, lead
researcher on the survey, UZ
senior lecturer in the depart-
ment of economics Dr Albert
Makochekanwa said:
"We found that in terms of the
gold sector's capital require-
ments, for rump and develop-
News Update as @ 1530 hours, Thursday 28 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Gold sector requires $600 million capex

2. 2 news
02 03
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ment they need $191 million,
for staying in business they
need $410 million, and for
further investment they need
$601 million.
"And we asked them if they
received the stated capi-
tal requirements in terms of
output is there going to be
any significant change and
they projected that output
would shift from the current
20 tonnes to 35 tonnes," he
said.
Zimbabwe's gold sector cur-
rently constitutes 40 percent
of mining output in terms
of exports, 25 percent of
employment in the mining
industry and accounts for 3,6
percent of gross domestic
product (GDP).
In terms of the other key
outcomes of the survey, a 25
percent of the sampled (gold)
mines have plans to under-
take exploration around their
mines in the next five years,
while 50 percent reported
that they had plans to do both
late stage and Greenfields
exploration programmes.
It was also shown that around
80 percent of the producers
in the gold industry said they
would undertake expansion
projects in the next five years
to increase output.
And that weighted average
capacity utilisation in the gold
industry increased to an esti-
mated 77 percent last year,
up from 71 percent in 2014.
Capacity utilisation, however,
varied across mining houses,
ranging from as low as 30
percent, to 100 percent.
Notwithstanding the improved
capacity utilisation in the
sector, 2015 was a tough year
for gold producers generally
as the survey showed that
profits were diminished dur-
ing the period under review.
"The gold industry was on
average on a loss making
position in 2015, with 90
percent of the respondents
indicating that they failed
to break even," said Dr
Makochekanwa.
Addressing the same event
Mines and Mining Devel-
opment Minister Walter
Chidhakwa said the decision
to make Fidelity Printers and
Refineries the sole buyer
of gold in the country had
contributed to the country's
increased gold output last
year.●

3. BH243

4. By Munesu Nyakudya
HARARE – Innscor's quick
service restaurant business,
Simbisa Brands, last year
made capital investments
amounting to $4 million
This came out during the
launch of the subsidiary's
Drive-through in Greencroft
where Industry and Com-
merce Minister Mike Bimha
appreciated the company's
growing footprint in Zimba-
bwe.
"I am advised that the com-
pany’s capital investments in
Zimbabwe for the year ended
June 30, 2015 amounts to
around $4 million," he said.
And over the past six months,
Simbisa has opened new out-
lets in Masvingo, Bindura,
Kwekwe, Gweru and Bula-
wayo.
He also noted the company's
contribution to employment
creation and engagement of
downstream indigenous play-
ers in the local economy.
"It is pleasing to note that
Simbisa Brands, through its
various brands and third party
licensing, directly employs a
total of 2 500 in Zimbabwe
compared to 2 800 in 5 other
countries where the company
is operating.
Employment creation is one
of the key thrust of ZIMAS-
SET and such initiatives like
this which create employment
are commendable," he said.
"The Government is cognisant
of efforts by your company to
support other industry play-
ers through local procure-
ment. This is evidenced by
local purchases of raw mate-
rials and finished goods to
the tune of about US$57 mil-
lion made by the company for
the year ended 30 June 2015.
"Being an agro-based econ-
omy, Government appreci-
ates support rendered to
local farmers and agro-based
industries through provid-
ing a market for their com-
modities and products. Once
again, this is in support of
the value addition and bene-
ficiation pillar as enunciated
in the ZimAsset blueprint."
Simbisa Brands financial
director Mr Salim Eceo-
laza said the comapny will
be opening another drive-
through in Bulawayo in the
next few days.
"Since listing on the Zim-
babwe Stock Exchange on
6 November 2015, Simbisa
has opened two other drive
throughs, one in Kenya Nai-
robi and the other in Mauri-
tius.
"This Greencroft site is our
third drive through in the
group, but our first drive
through in Zimbabwe. In the
next few days we will open
another drive through in Bul-
awayo," he said.●
4 news
Simbisa invests $4 million in 2015

5. BH24
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to Johannesburg
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6. By Funny Hudzerema
HARARE - Mines and Mining
Development Minister Wal-
ter Chidhakwa says he will
present three Bill aimed at
improving the long-term via-
bility of the local mining sec-
tor to Parliament soon.
Minister Chidhakwa said the
bills are the Pan African Uni-
versity for Science and Tech-
nology for value addition Bill,
the Conversion of Minerals
Marketing Corporation of
Zimbabwe into an exploration
company and the Mines and
mineral amendment Bill.
“The aim of these legislations
is to foster the issues of skill
development because the key
thing when we want to benefit
from mining is through skill
development on how to har-
ness the minerals,” he said.
It has been observed that
some of the country's mining
legislation is not suitable to
contemporary mining trends
since they are now out dated.
He said there was need to
establish a mining institu-
tion to cater for research and
innovation in the sector.
“We must have an institu-
tion that does research of the
mining sector bringing new
ideas and advanced technol-
ogies which are being used in
the mining industry,” he said.
He added that companies
must invest in the explora-
tion for them to benefit in the
mining industry.
The State of the Mining Indus-
try Survey 2015, which was
launched today outlined that
there is need for a restructur-
ing of mining laws and invest-
ing into research in order for
the country to effectively
exploit all its minerals.
The report suggested that
amendment of Mines and
Minerals Act should deal with
challenges affecting the min-
ing sector today and include
clauses on small-scale and
artisanal miners, rural com-
munities affected by mining
activities, corporate social
responsibility by mining com-
panies and rehabilitation of
the environment after mining
activities.●
6 news
3 mining legislation to be presented to Parliament: Chidhakwa
Minister Chidhakwa

7. BH247

8. BH24 reporter
HARARE –Zvishavane based
platinum miner, Mimosa plat-
inum recorded a 2,7 percent
increase in ore blasted dur-
ing the second quarter ended
December 31, 2015 to 651
629 tonnes from 634 396
tonnes in the previous quar-
ter as production was well
ahead of guidance.
Mimosa was Aquarius mine’s
second highest producer after
Kroondal, which recorded its
highest Q2 production since
2011
According to Aquarius Plat-
inum Limited, which jointly
owns the mine with Impala
platinum, most teams mined
through poor ground con-
ditions during the quarter
resulting in preparation con-
straining the ore generation
cycle.
Hoisted tonnage for the quar-
ter at 656 844 tonnes was
0,4 percent above previous
quarter`s tonnage of 654 127
tonnes.
“Hoisting performance is
expected to improve in line
with the anticipated improve-
ment in the amount of blasted
ore, Aquarius said.
Milled tonnage however
declined 5 percent to 638 652
tonnes from 671 507 tonnes
achieved in the previous
quarter.
“Tonnes milled were lower
in the quarter as a result of
plant stoppages associated
with the rainy season mainly
lightning which often results
in power dips as well as a
breakdown of the plant mill
motor,” Aquarius said.
Platinum recovery at 79,1
percent was slightly less than
the 79,2 percent achieved
in the previous quarter with
4Es recovery at 78,6 percent
slightly less than 78,7 per-
cent achieved in the previous
quarter.
“The Process Team contin-
ues to focus on initiatives to
improve recoveries further,”
the platinum company said.
Total capital expenditure for
the second quarter amounted
to $10,8 million with most
of it being spent on mobile
equipment, support & drill
rigs and LHDs, the conveyor
belt extension, down dip
development and ventilation
walls.
Commenting on the results,
Aquarius Platinum CEO Jean
Nel said: “The fact that both
Kroondal and Mimosa’s PGM
unit costs are lower today
than 3 years ago despite
steep increases in labour,
electricity and other costs is
testimony to excellent opera-
tional management for which
Rob Schroder and Winston
Chitando and their teams
deserve credit.”
.●
8 news
Mimosa production 'well ahead of guidance'

9. BH249

10. HARARE - The main-
stream industrial bucked
losses over the past cou-
ple of trading sessions to
recover by 0.35 to close at
102.65.
Giant telecoms Econet
bumped $0,0261 to trade
at $0,2239, while stara-
fricacorporation added
$0,0020 to $0,0080 while
giant retailer OK Zimba-
bwe added $0,0005 to
settle at $0,0376.
On the downside, Hippo
lost $0,0125 to close at
$0,3575 and beverages
manufacturer Delta shed
$0,0100 to $0,5300.
Also losing ground was
Fidelity Life which dropped
$0,0024 to trade at
$0,0950, Simbisa which
shed $0,0005 to $0,1590
while Willdale dropped
$0,0004 to $0,0015.
The mining index was flat
at 19.53 as Bindura, Fal-
gold, Hwange and RioZim
all maintained previ-
ous price levels - BH24
Reporter ●
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11. BH24
MANYAME RURAL DISTRICT COUNCIL
TENDER INVITATION
Tenders are invited from registered companies for the tenders listed below:
TENDER NO. DESCRIPTION TENDER COST
HRD 1/2016 Service of computers, printers, laptops and photocopiers $50
HRD 02/2016 Tender for delivery, Management of Wide Area Network, Internet services, Website and $50
Manyame Domain
FIN01/2016 Insurance $50
RW01/2016 Vehicle Service tender $50
RW02/2016 Earthmoving Equipment service tender $50
Tenders must be enclosed in sealed envelopes and clearly endorsed on the outside with the advertised tender number. Tender documents
can be obtained at Manyame RDC Beatrice offices upon payment of a non-refundable tender fee of $50.
Manyame Rural District Council does not bind itself to accept the lowest or any tender and reserves the right to accept the whole or part of any
tender.
Tenders should be accompanied by the following:
Ÿ Company Profile
Ÿ Certified Copy of Current VAT Clearance Certificate and Certified VAT Registration certificate
Ÿ Physical and Postal address
Ÿ Proof of registration with State Procurement Board
Ÿ Certified copy of Certificate of Incorporation
Ÿ CR14
th
Your submission should be hand delivered to the following address by 0900hours on 29 FEBRUARY, 2016.
The Chief Executive Officer Manyame Rural District Council
Manyame Rural District Council Beatrice Head Office
P. O. Box 99 54km along Harare/Masvingo Road
Beatrice
OR
TARI-DI353390-D2
11

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Starafrica 33.33 0.80 Willdale -21.05 0.15
Econet 13.19 22.39 Hippo -3.37 35.75
OK Zim 1.34 3.76 Fidelity -2.46 9.50
Delta -1.85 53.00
Simbisa -0.31 15.90
Index Previous Today Move Change
Industrial 102.30 102.65 -0.35 points -0.34%
Mining 19.53 19.53 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange

13. BH2413

14. 14 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
28 January 2016
Energy
(Megawatts)
Hwange 427 MW
Kariba 285 MW
Harare 30 MW
Munyati 25 MW
Bulawayo 24 MW
Imports 0 - 300 MW
Total 1348 MW
—28 January 2016 – Chamber of Mines Zimbabwe State of the Mining Industry Report 2015 launch; Venue: Rainbow Towers; Time:
0730hrs -1300hrs
—10 February 2016 - Nampak Zimbabwe Annual General Meeting: Venue 68 Birmingham Road, Southerton, Harare: Time 12:00
—18 February 2016 - 70th Annual General Meeting of the members of CAFCA ; Place: Boardroom at the company’s registered office
at 54 Lytton Road, Workington, Harare; Time: 12:00 hours
—23 February 2015 - 38th Annual General Meeting of the members of Powerspeed Electrical Limited; Place: Powerspeed Board-
room, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside, Harare; Time: 1100 hours
THE BH24 DIARY

15. JOHANNESBURG - Lonmin
today said it would continue
to review its services and
reduce costs, mainly through
job cuts, as the sliding price
of platinum bites further.
The company said labour
costs fell 194 million rand
($11.8 million) in the last
three months of 2015 after it
shed 5 077 jobs, or 84,6 per-
cent of its planned reduction
in headcount.
"Progress continues with the
restructuring programme
due to the new benchmarked
operating model and removal
of high-cost production to
ensure the business remains
viable," Lonmin said in a
statement.
It is targeting savings of 700
million rand in 2016.
Hurt by a 2014 strike, rising
costs and a plunging plat-
inum price, Lonmin raised
$400 million through a cash
call in December which failed
to find favour with share-
holders and priced shares at
about a penny each.
Some of the proceeds of the
rights issue were used to pay
down debt, leaving the com-
pany with $69 million in cash
at end of December.
The miner said production
of refined platinum reached
171 441 ounces in the three
months to the end of Decem-
ber, up 22,6 percent from a
year earlier.
The price of platinum has
been on the decline for about
five years. It fell 26 percent
last year and is trading at
less than half its 2011 peak.
Shares in Lonmin have lost
nearly all of their value over
the last year. It was the
worst-hit of three top plat-
inum miners by the 2014
five-month labour stoppage.
Lonmin maintained its full-
year production guidance
of 700,000 platinum ounces
and its capital expenditure
plan of $132 million despite
projecting sustained weaker
metal prices.- Reuters●
regioNAL News15
Platinum producer Lonmin cuts jobs and costs

16. Oil traded near $32 a bar-
rel after US crude stockpiles
expanded for a third week
to a record, exacerbating a
global glut.
Futures were little changed
in New York after gaining
2,7 percent on Wednesday.
Inventories rose to 494,9
million barrels last week,
the highest in weekly data
from the Energy Information
Administration that started in
August 1982. Russia talked
down the prospect of working
with OPEC to cut output after
the country’s energy minister
met with heads of the nation’s
biggest oil companies to dis-
cuss co-ordinating with the
group.
Oil is down about 13 per-
cent this year as volatility
in global markets adds to
concern over brimming US
stockpiles and the outlook
for increased Iranian exports
after the removal of interna-
tional sanctions. The world-
wide surplus will decline this
year even after Iran adds an
expected 500,000 barrels a
day of output, United Arab
Emirates Energy Minister
Suhail Al Mazrouei said.
“The overall U.S. inventory
situation hasn’t changed, they
are still high,” Ric Spooner, a
chief analyst at CMC Markets
in Sydney, said by phone.
“The higher oil climbs without
any improvement in produc-
tion or stockpiles, the more
vulnerable prices are going to
be to that inexorable supply
pressure.”
West Texas Intermediate for
March delivery lost 1 cent to
$32,29 a barrel on the New
York Mercantile Exchange at
7:51 a.m. London time. The
contract rose 85 cents to
$32,30 on Wednesday. Total
volume traded was about 13
percent above the 100-day
average. WTI has risen more
than 20 percent from the low-
point in the downturn earlier
this month, meeting the com-
mon definition of a bull mar-
ket.
Cushing Stockpiles
Brent for March settlement,
which expires Friday, gained
7 cents, or 0,2 percent,
to $33,17 a barrel on the
London-based ICE Futures
Europe exchange. Prices
gained $1,30 to $33,10 a bar-
rel Wednesday. The European
benchmark crude traded at
premium of 92 cents to WTI.
The more-active April con-
tract increased 10 cents to
$34.03.
Crude supplies at Cushing,
Oklahoma, the delivery point
for WTI and the biggest U.S.
oil-storage hub, dropped by
771 000 barrels to 63,4 mil-
lion through Jan. 22, the
EIA said in a report Wednes-
day. Stockpiles declined for
the first time in 12 weeks.
Nationwide inventories rose
by 8,38 million barrels.
Russian Energy Minister Alex-
ander Novak and the heads
of the nation’s biggest oil
companies discussed the pos-
sibility of working with the
Organization of Petroleum
Exporting Countries, the min-
istry said Wednesday. Presi-
dent Vladimir Putin’s spokes-
man Dmitry Peskov told
reporters earlier in the day
that while consultations with
other producing countries
were regular, there wasn’t
any “specific discussion on
coordination of actions” on
output. - Bloomberg●
internatioNAL News16
Oil trades near $32 as US crude stockpiles expand global glut

17. By Aishetu Fatima Dozie
The private equity or financial
sponsor industry centred on
sub-Saharan Africa (exclud-
ing SA) has had an unprec-
edented fund-raising boom
in recent years, driven by
attractive returns realised on
investments in the region.
But the role of the indus-
try and its developed mar-
ket investment approach may
need to be re-examined and
tailored to better suit current
economic realities and invest-
ment opportunities.
While once alluring sovereign
growth prospects have dimin-
ished in the face of falling
commodity prices and cur-
rency devaluations, capital
continues to chase the few
big deals meeting traditional
investment criteria.
Established funds with
demonstrated track records
in the region, such as The
Abraaj Group, African Cap-
ital Alliance, Development
Partners International, Helios
Investment Partners and oth-
ers, have raised billions of
dollars in capital targeted
towards growth investments
in Africa.
Global private equity jug-
gernauts The Carlyle Group
and General Atlantic Part-
ners and sovereign wealth
funds such as Temasek have
either set up dedicated Africa
funds or hired teams to iden-
tify high-return investment
opportunities. Last year, the
industry closed funds having
raised up to $4bn in new cap-
ital commitments. The mes-
sage is clear — Africa is an
attractive investment des-
tination for discerning and
intelligent capital providers.
Looking at economic and
financial market activity in
sub-Saharan Africa (exclud-
ing SA) in 2013-14, the
region enjoyed high real
gross domestic product (GDP)
growth rates of more than
5.7%, versus global GDP
growth of less than half that
over the same period.
A big driver of the economic
boom was the commod-
ity price rally benefiting the
oil-producing nations of Nige-
ria and Angola, whose econo-
mies jointly represent half of
the region’s GDP.
However, oil prices have
since dropped precipitously
by more than 70 percent fol-
lowed by a sharp decline in
real GDP growth, with Nigeria
expected to grow by a modest
3,3 percent and Angola 3 per-
cent last year.
Both economies have insti-
tuted capital controls and
devalued their currencies
several times to stem the
flow of reserves from their
central coffers. Nigeria, which
became the biggest econ-
omy in sub-Saharan Africa
on a GDP rebasing in 2013,
17 analysis17 analysis
Africa appeals to the discerning

18. 18 analysis18 analysis
has seen its foreign currency
reserves drop to $29bn, from
close to $50bn in mid-2013.
The region needs all the for-
eign direct investment it can
get to climb its way out of the
malaise.
That big pools of private
equity capital are dedicated
to investing in sub-Saharan
Africa is encouraging. But is it
also the case for African firms
in need of capital to fund cap-
ital expansion plans and meet
their operating challenges?
Most of the new funds being
raised are channelling capi-
tal towards growth opportu-
nities. Private equity invest-
ments are considered to be
growth or expansion capital
as they deploy resources to
profit-generating businesses
that seek capital to expand.
These forms of investment
are instrumental in private
sector development, which
leads to economic growth and
advancement. The more that
private equity firms invest
in Africa and leverage their
global relationships for sourc-
ing economies, knowledge
transfer, strategic alliances
and other benefits, the better
for such businesses and their
economies.
Deals include Actis investing
more than $60m in Sigma
Pensions in Nigeria; Helios
Investment Partners acquir-
ing a 70 percent stake in
Telkom Kenya from Orange;
and DPI exiting its stake in
Mansard Insurance to Axa.
These transactions have sent
a signal that smart money is
looking at opportunities in
Africa and getting deals done.
But is this enough? Private
equity firms want to focus
on investment opportunities,
where the minimum cheque is
$50m-$100m. For sub-Saha-
ran Africa, this is a sizeable
investment only applicable to
a few companies.
Evidence suggests there are
fewer than 2,000 firms with
revenues beyond $50m in
sub-Saharan Africa, half in
SA.
Capital needs to flow to the
less established businesses in
greater need of this and other
benefits provided by private
equity investors.
Sub-Saharan Africa needs
to see more private equity
firms looking at investments
of $5m-$15m. This would
require investors to deal with
the management expertise
gap, where private equity
firms have excellent expe-
rience. Sub-Saharan Africa
needs smart, catalytic capi-
tal, as sometimes money on
its own is not enough.
The developed market
approach does not work in
all instances. Moreover, most
of the funds raised in the
past few years have been in
US dollars, which demand
high-return hurdles from their
limited partners. Given the
economic headwinds facing
the region and the resultant
steep currency devaluations/
depreciations, private equity
firms will need to be cautious
as they evaluate new growth
investment opportunities.
One idea would be to see
these firms tap the local asset
management industry to raise
domestic currency funds. This
would help reduce the single
biggest impediment to private
equity investments in sub-Sa-
haran Africa — concern over
currency volatility.
It would reduce pressure on
the funds’ expected returns
as well as ease the anxiety of
the entrepreneur or business
that requires the investment.
A change in the quantum of
investment towards smaller
chunks of capital, realistic
talent and management guid-
ance, patience, and a bit of
courage, would have a sig-
nificant effect on the growth
and development of smaller
businesses in the region. -
BDLive●
• Dozie is the co-head
of investment banking in
West Africa at Rand Mer-
chant Bank Nigeria