A digital copy of the BH24 (11 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.
Value Proposition canvas- Customer needs and pains
Govt to incentivize rand usage in local tourism sector: Minister Mzembi
1. By Tawanda Musarurwa
HARARE - Government has said
it could incentivize the usage of
the South African rand in the
local tourism sector by scratching
the 15 percent value added tax
for foreign accommodation on
rand acceptance.
This comes amid concerns over
declining tourist arrivals from
the region especially as the value
of the rand has been decimated
over the past year.
The rand lost around 25 per-
cent against the United States
(US) dollar during the course of
2015, and as at 08:13 GMT the
rand was 2.85 percent weaker at
16.78 against the US dollar
In an interview, Tourism and Hos-
pitality Industry Minister Engi-
neer Walter Mzembi said the main
problem with rand usage in the
local tourism sector was a lack of
incentives.
"I have already started sponsor-
ing a thinking around acceptance
of rands in the tourism economy
of Zimbabwe.
"And I did not initiate it, it was
News Update as @ 1530 hours, Monday 11 January 2016
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Govt to incentivize rand usage in local tourism sector: Mzembi
Minister Walter Mzembi
2. 2 news
initiated by the Reserve Bank of
Zimbabwe governor Dr Mangudya
three monetary policies ago but
was ignored largely by the sec-
tor, because he announced some-
thing that did not have an incen-
tive for acceptance of the rand
as a transactional currency in
the tourism sector," said Minister
Mzembi.
He added that he would also be
engaging the RBZ governor and
Finance Minister to discuss with
South Africa to make the rand as
a settlement currency for bills.
Zimbabwe uses a multicurrency
system whose basket includes
the currencies of China, India,
Japan, Australia, the US dollar,
the South African Rand, Bot-
swana Pula, British Pound and
the Euro.
Bu it is the US dollar which has
gained the most traction as a
settlement currency, especially in
regional and international trade.
"I am proposing that we probably
quid pro quo a 15 percent value
added tax for foreign accommo-
dation on rand acceptance but
also get Dr Mangudya and team
and (Finance Minister) Patrick
Chinamasa to negotiate with the
South African government that
they accept the rand as a settle-
ment currency for bills.
"Right now we are paying for our
imports, 70 percent of them from
South Africa in US dollars in a
multiple currency regime. So this
multicurrency regime only works
one way. It should work both
ways in terms of transacting."
National Tourism Master Plan
to be ready by June
Meanwhile, the Ministry of Tour-
ism and Hospitality Industry has
engaged a international consul-
tancy firm - Keios Development
Consulting - for the crafting of
the National Tourism Master Plan
(NTMP).
The NTMP, which is being spon-
sored by the African Develop-
ment Bank (AfDB), will act as an
overarching guide to the devel-
opment of tourism in the country.
Keios Development Consulting
associate development consult-
ant and team leader of the Zim-
babwe Tourism Master Plan Mr
Peter Nizette said the plan should
be released within the next six
months and will have a 15 to
20-year implementation rollout.
Minister Mzembi said the Zim-
babwe Tourism Master Plan will
assist in the diversification of
the country's tourism offerings
beyond the traditional and pop-
ular tourist attractions such the
Victoria Falls.●
4. By Munesu Nyakudya
HARARE - The Reserve Bank
of Zimbabwe has announced
that African Century limited
and Get Bucks Financial Ser-
vices (Private) limited have
been licensed and authorised
to conduct deposit-taking
microfinance business.
In a press statement, the two
institutions were licensed
in terms of the Microfinance
Act Chapter 24-29 with effect
from January 6 this year.
“It is hereby notified that
African Century Limited and
Get Bucks Financial Ser-
vices (Private) limited have
been licensed and author-
ised to conduct deposit-tak-
ing microfinance business in
terms of the Microfinance
Act, with effect from January
6, 2016,” Reserve Bank said
in a public notice.
The Microfinance Act states
that persons conducting
microfinance business in
Zimbabwe should be provided
with registration, supervision
and regulations.
Furthermore the Microfinance
Act states that the registrar
shall cause a notice of the
registration after they have
been licensed, or when the
license has been renewed.
“He or she shall cause notice
of registration or cancellation
to be published in the Gazette
and in one or more issues of
a newspaper circulating in
the area in which the microf-
inance intends to conduct its
microfinance business,” reads
the Microfinance Act Chapter
24 to 29.
GetBucks is a fintech com-
pany that embraces technol-
ogy as a means to provide
financial products and ser-
vices to our customers.
According to Getbucks web-
site, Fintech is an emerging
sector within the financial
markets aiming to change
the world of modern banking
through disruptive consumer
technology.
According to the African Cen-
tury Leasing website, the
company is a fore-runner in
equipment leasing supporting
all key sectors of the econ-
omy.●
4 news
Get Bucks Financial Services (Private) limited, African Century Limited
6. By Funny Hudzerema
HARARE - The Ministry of Tour-
ism and Hospitality Industry has
called on for both domestic and
international investors to invest
in the construction of Tourism
Special Economic Zones (SEZ)
to boost the tourism sector.
Minister of Tourism and Hospi-
tality Industry Engineer Walter
Mzembi said the issue of SEZs
is an issue which was approved
by Cabinet and Parliament and
what left is the implementation
of the project.
“Government has allocated land
in Victoria Falls for the tourism
SEZ and we need to start now
to develop the project through
partnerships with other stake-
holders.
“As a ministry we are start-
ing by issuing an interna-
tional expression of interest
to local, regional and interna-
tional investors to respond to
this economic opportunity to
develop an integrated tourism
resort park in the destination of
Victoria Falls,” he said.
He said this in an interview
on the sidelines of a Break-
fast Awareness Meeting on the
National Tourism Master Plan.
“The implementation of the SEZ
will assist in meeting the $5 bil-
lion tourism economy by 2020
through increasing the number
of arrivals.
“We are ready to start and kick
on the project now since Gov-
ernment approved the imple-
mentation of the SEZ work is
now left to the ministry,” he
said.
Last year Government allocated
300 hectares of land towards
the construction of tourism spe-
cial economic zones in Victoria
Falls.
“The project should bring
immense benefits through
expected growth in tourism
arrivals, increase in tourism
generated income and employ-
ment creation across the value
chain.
“The development is likely to
emancipate growth in FDIs
investment in Victoria Falls
and the country at large. One
of the benefits, which come
with a SEZ, is that we will be
exempted from some tax and
this is a relief to us. With such
a development, we will also see
the expansion of the town and
the benefit will not go to insti-
tutions and Government only
but the general populace,” he
said.●
6 news
Tourism Ministry begins investor engagement over tourism SEZs
8. HARARE - The Tobacco Indus-
try and Marketing Board
(TIMB) is pushing for the
release of $7 million collected
from growers last year in
tobacco levies from Treasury.
The tobacco levy on growers
was re-introduced at a rate
of 1,5 percent of the selling
price, with effect from January
1, 2015, with the funds ear-
marked for reforestation activ-
ities.
The tobacco levy had been
scrapped in March 2005 to
encourage smallholder farm-
ers to produce the crop.
Stakeholders welcomed the
re-introduction of the levy,
especially at a time when the
international community is
pushing for tobacco that is
produced in a sustainable way.
Tobacco buyers now want to
purchase the crop from coun-
tries that do not practice
deforestation in the process of
tobacco production.
TIMB public relations man-
ager Isheunesu Moyo told New
Ziana that the board had writ-
ten to Treasury seeking the
release of the fund for onward
transmission to farmers so
they can embark on re-af-
forestation projects.
“TIMB is in the process of com-
piling proposals for affores-
tation projects for financing
under the tobacco levy. We
are pushing the Ministry of
Finance to release the funds
to us but we need a directive
from them on how to use the
levy as well,” he said.
Zimbabwe Commercial Farm-
ers Union president Mr Won-
der Chabikwa said farmers are
getting impatient because the
funds were locked up.
“TIMB says the money is with
treasury, we want to believe
the $7 million is still there and
waiting for afforestation pro-
jects,” he said.
Government had to introduce
the fund because there was an
increase in tobacco produc-
tion, a development that was
threatening the environment.
In recognition of the poten-
tial negative impact of the
El-Nino induced drought on
tobacco production, govern-
ment reduced the tobacco levy
from 1,5 percent to 0,75 per-
cent, with effect from the first
of this month. At least 198, 7
million kg of tobacco were pro-
duced in 2015.-New Ziana●
8 news
TIMB urges Gvt on tobacco levy
10. HARARE -The mainstream indus-
trial index bucked last week's
trend of constant losses to opened
the new week stronger at 112.21
following a 0.05 points gain.
The index was buoyed by gains in
four (4) counters, namely NMBZ
which rose $0,0020 to close at
$0,0350 while giant telecoms
Econetadded$0,0015to$0,2115.
Also in the positive were Medtech
and Willdale, which each inched up
$0,0001 to settle at $0,0002 and
$0,0021, respectively.
On the downside, losses were
recorded in Meikles which lost
$0,0016 to trade at $0,0824 while
construction firm Masimba and
Turnall both shed $0,0010 to close
at $0,0090 and $0,0100, corre-
spondingly.
The mining index retreated 1.66 to
close at 21.82 following a $0,0021
loss in nickel producer Bindura to
trade at $0,0129 respectively.
Falgold, Hwange and RioZim
maintained previous price levels at
$0,0050, $0,0300 and $0,1040,
respectively. - BH24 Reporter ●
ZSE10
Industrials on the up
Peace of mind is good
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14. 14 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
11 January 2016
Energy
(Megawatts)
Hwange 536 MW
Kariba 699 MW
Harare 0 MW
Munyati 16 MW
Bulawayo 0 MW
Imports 100 MW
Total 1272 MW
THE BH24 DIARY
16. JOHANNESBURG - South
Africa's rand pared losses
today after dropping sharply in
erratic Asian trade with dealers
talking of Japanese sellers in a
very illiquid market.
By 0813 GMT the rand was
2,85 percent weaker at 16,78
against the US dollar, stabi-
lising after falling as much as
10,3 percent at one stage in
Asian trade to reach 17,9950
per dollar, by far its weakest
level ever.
"It appears as if yield-hun-
gry Japanese retail investors
decided to cut their ZAR posi-
tions this morning, which trig-
gered a number of stop losses
and sent the currency into
freefall," Barclays Africa cur-
rency strategist Mike Keenan
said in a note.
South Africa's currency has hit
several record lows already
this year on concerns about
slowing growth in Africa's most
developed economy and in-line
with weakness in other emerg-
ing markets.
President Jacob Zuma said on
Sunday that markets overre-
acted to his decision to change
finance ministers twice in a
week last month, comments
likely to worry investors.
"Local sentiment remains poor
and the fact that this week-
end’s ANC conference did not
address investor concerns,
suggests that these fears could
persist," Keenan said.
"The underlying ZAR mood
remains extremely bearish."
The JSE securities exchange's
Top-40 futures index was down
1,04 percent, suggesting the
local bourse would open more
than 450 points lower.
In fixed income, government
bonds mirrored the rand, with
the yield for the benchmark
2026 government bond adding
34 basis points to 9,865 per-
cent- Reuters●
regioNAL News16
Rand pares losses after dive in Asian trade
Egypt's Orascom
Construction says
wins $420 mln
power plant con-
tract
DUBAI - Egypt’s Orascom
Construction has been
awarded a $420 million
contract to revamp two
government-owned power
stations, the company
said on Monday.
Orascom was part of a
consortium that com-
pleted the build of the
Assiut and West Damietta
plants in the third quar-
ter of 2015. The plants,
which are operational and
have a combined capac-
ity of 1,500 megawatts,
will now be converted to a
so-called combined cycle
from a simple cycle.
A combined cycle re-uses
waste products, increas-
ing capacity by 50 percent
with no additional fuel
intake
.- Reuters●
17. Gold climbed near to a two-month
high on increased haven demand
as further signs of slowing growth
in China spurred losses in equi-
ties.
Bullion for immediate delivery
advanced as much as 0,4 percent
to $1 108,65 an ounce and traded
at $1 106,27 at 3:06 p.m. in Sin-
gapore, according to Bloomberg
generic pricing. The metal gained
to $1 113,08 on Friday, the high-
est level since Nov. 4, before end-
ing lower after data showed US
payrolls rose more than expected
in December.
The metal posted the biggest
weekly gain since August last
week as escalating concerns
about China’s outlook, a rout in
equities and increased geopolit-
ical tensions in the Middle East
and North Korea stoked inves-
tors’ aversion to risk. Asian equi-
ties declined on Monday as muted
Chinese inflation data was taken
as further evidence of the slow-
down in the world’s second-larg-
est economy.
“Gold has had a great start to
2016, with equity-market weak-
ness contributing to safe-haven
demand,” Jordan Eliseo, chief
economist at trader Australian
Bullion Co. in Sydney, said by
e-mail. “The fact it held $1 100
despite the strong payrolls print
was a sign of strength. Short-cov-
ering could see this rally push
higher across the next few days.”
Gold Holdings
US employers added 292 000
workers in December, exceeding
the highest estimate in a Bloomb-
erg survey and putting the gain
for all of 2015 at 2,65 million, a
Labor Department report showed
on Friday. The data backed the
case for the Federal Reserve to
continue raising interest rates
this year, boosting the dollar and
undermining gold’s rally.
Still, investors bought the most
through bullion-backed funds in
three weeks on Friday to post
the first back-to-back increase
since Dec. 10, data compiled by
Bloomberg showed. The hold-
ings climbed 9,1 metric tons to 1
475,3 tons on Friday after rising
8,1 tons the day before.
Spot silver gained 0,6 percent,
while platinum fell 0,6 percent.
Palladium slumped as much as
1,9 percent to $485,74 an ounce,
near the lowest level since 2010.-
Bloomberg●
internatioNAL News17
Gold extends `great start to 2016' as risk aversion fans demand
18. By Nigel Gambanga
Free Basics, the service allowing free
access to a bouquet of websites is
headed to Zimbabwe. Most people
will recognise the name from the
noise the zero-rated platform caused
in India for net neutrality violations
and its recent shutdown in Egypt.
However, this has not slowed down
its growth. According to Facebook,
the Free Basics service has already
been accessed by 1 billion world-
wide. Once it becomes active in Zim-
babwe it will have entered a total of
38 countries, giving citizens in these
markets free access to a set of famil-
iar internationally recognised web-
sites, and to the local websites that
sign up to be part of it.
The Internet.org team has been con-
ducting workshops in Harare with
local content developers and propri-
etors of online platforms to explain
how the service will work and to add
a bit clarity on the benefits for every-
one involved.
Any Zimbabwean website can be
included on Free Basics, and Inter-
net.org has asked for the first sub-
missions of sites to be made within
the next fortnight. However, some
conditions have to be met by each
site.
It has to be efficient
In the context of data usage, the site
or application should not use VoIP,
video or file transfer and images
should not be larger than 200KB in
size.
It has to meet technical specifi-
cations
Each site or app should be optimised
for browsing on feature phones and
for cases where there is limited
bandwidth. Thi is meant to accom-
modate the huge percentage of
mobile internet users that are on
such devices and for the strains on
broadband use that the service could
potentially place on the participating
operator’s networks.
The mobile version of the web-
site should work in the absence of
JavaScript, SVG images and WOFF
font types, iframes, Video and large
images and Flash and Java applets.
Site should be tested
Owners are being encouraged to test
their sites to ensure that they meet
these requirements before submis-
sion to ensure that their content is
displayed appropriately through Free
Basics.
Where to submit
Anyone keen on submitting their site
or app for consideration should follow
this link to the Internet.org develop-
er's page where steps for submission
will be laid out, along with additional
information that they might require
before signing up-. TechZim ●
18 analysis18 analysis
Here's what you need to sign up your website for Facebook's Free Basics