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1. BH24 Reporter
HARARE – Struggling coal
miner Hwange Colliery Com-
pany has reported a substan-
tial loss of $115 million for
the year ended December 31,
2015 from the loss of $37,8
million in FY2015.
Although the coal-miner
experienced a notable
decline in revenue s during
the period under review, its
loss position was particu-
larly deepened by a six-year
liability to the Zimbabwe
Revenue Authority (ZIMRA)
and a significant bump in
administrative costs.
“The widening of the loss
is mainly attributed to the
recognition of the $69,1 mil-
lion ZIMRA liability covering
the six-year period 2009 to
2015. An amount of $40,6
million had been accrued
resulting in an adjustment
of $28,5 million after the
News Update as @ 1530 hours, Friday 01 April 2016
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Hwange posts hefty $115 million loss

2. conclusion of the ZIMRA
verification exercise,” said
acting chairman Mr Jemister
Chininga in a statement
accompanying the results.
“There was also a $118
increase in administrative
costs mainly attributable
to the adjustment for the
ZIMRA liability,” he added.
Administrative costs for the
period at $60,6 million was
also higher than $27,8 mil-
lion prior year.
Cost of sales of $101,3 mil-
lion was much higher than
the revenue of $67,5 million
prior year.
Hwange Colliery’s current lia-
bilities amounted to $287,3
million during the period
under review compared to
$209,8 million in 2014.
Management said although
some of its creditors have
taken legal action against
the firm, efforts are being
made to contain the negative
effects of such a move.
Borrowings increased from
$11,9 million to $51,1 mil-
lion.
Going forward, the company
expects a $7,5 million coal
pre-financing facility to give
impetus the new business
plan. The company is tar-
geting monthly production
targets of 350 000 tonnes
from July 2016.
Basic loss per share
amounted to 0,63 cents up
from a loss of 0,21 cents
prior year.●
2 news
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5. BH24 Reporter
HARARE -Listed hotelier group
African Sun posted a loss after
tax of $8, 3 million in the
15-month period to December
31, 2015 as revenues during the
period slid.
The low revenue performance
was attributed to the broader
negative performance within the
country’s tourism sector.
“The South African market
which contributes significantly
to Zimbabwe tourist arrivals
has suffered from the depreci-
ation of the South African rand
making Zimbabwe an expensive
destination,’ said chairman Mr
Herbert Nkala in a statement
accompanying the results.
African Sun shifted its financial
year end from September to
December 31 to align it with
that of its major shareholder
- Brainworks Capital. In the
previous period, it had reported
a $2, 2 million loss in the year
to September 30, 2014.
For the year just ended, the
group’s total revenue stood at
$63, 1 million.
“On a like for like, revenue
decreased by 8 percent as the
group experienced noticeable
decline in the average monthly
revenues during the period
under review,” said the com-
pany. Income per available room
dropped from $47 to $45, how-
ever occupancy levels jumped
marginally from 48 percent to
49 percent. Operating expenses
stood at $43,4 million, rising
from $33 million in the prior
12-month period. African Sun
currently operates 11 hotels in
Zimbabwe.
And in October last year, the
group appointed Legacy Group
of hotels to manage five of its
hotels — Elephant Hills, Trout-
beck, Hwange Safari Lodge,
The Kingdom and Monomotopa
Hotel.
At the same time (2015), the
group brought to an end their
regional operations in Ghana,
South Africa, Mauritius and
Nigeria. Management said the
regional operations were weigh-
ing heavy on the local unit,
which was profitable. During the
period under review, the group
reduced staff compliment by 20
percent to 1 179, a move they
anticipate will yield annual sav-
ings of at least $2, 7 million.
Finance costs fell by 16 percent
to $2, 5 million as the group
managed to reduce borrowings
from $17, 3 million to $7, 7
million. Earnings Before Income
Tax Depreciation and Amorti-
sation (EBITDA) amounted to
$7 million compared to $8,3
million in the previous 12 month
period.
Going forward, the chairman
said the group will maintain
implementing the new business
model as well reducing cost of
sales and overheads, as well as
driving volume growth.
The board has resolved not to
declare a dividend for the year
ended.●
5 news
African Sun reports $8,3m loss

6. BH246

7. BH247

8. HARARE –Revenues from
fixed telephony increased by
14,2 percent to $35 million
during the last quarter of
2015 despite a decrease in
investment on infrastructure,
latest statistics from the
Postal and Telecommunica-
tions Regulatory Authority of
Zimbabwe (Potraz) show.
Potraz attributed the per-
formance to an increase in
international incoming traffic
and net on net traffic.
“Revenues registered from
fixed voice service increased
by 14,2 percent to reach
$35,3 million from $30,9 mil-
lion recorded in the previous
quarter,” it said.
“On the other hand invest-
ment declined by 61,1
percent to $1,7 million from
$4,6 million invested in the
previous quarter. The bulk of
investment was in the access
network.”
Potraz said subscribers to
fixed telephony services also
increased during the quarter
under review.
The increase in fixed teleph-
ony subscriptions was driven
by improved demand for
Asymmetric Digital Sub-
scriber Line (ADSL) services.
ADSL is a communications
technology used for connect-
ing to the Internet using a
fixed telephone line.
“The total number of
active fixed telephone lines
increased by 0,5 percent to
reach 333 702 from 332 211
recorded in the third quarter
of 2015.
“Household subscriptions
constituted 71,3 percent of
the total fixed subscriptions
whereas corporate subscrip-
tions made up 28,7 percent
of total fixed network sub-
scriptions,” the report shows.
Active rural lines increased
by 4,3 percent to record
8 998 from 8 629 lines
recorded in the previous
quarter.
On the other hand active
urban lines increased from
323 582 to 323 704 recorded
in the previous quarter.
Companies that offer fixed
telephony services in Zim-
babwe include TelOne and
Africom, but these have
failed to add more people to
their networks mainly due to
stiff competition from mobile
phone companies.
-New Ziana.●
8 news
Fixed telephony revenue increases

9. BH249

10. HARARE–National Railways
of Zimbabwe (NRZ) workers
have gone on strike to push
their employer to pay them
14 months’ salary arrears.
NRZ public relations manager
Fanuel Masikati told New
Ziana the workers downed
tools on Monday.
“The workers are on indus-
trial action over the issue of
salary arrears. As you may
know NRZ owe them over 14
months’ salary,” he said.
He said the parastatal would
pay workers when funds
become available.
“The focus is to make sure
that we pay them something
for now. As you know NRZ
is in the business of moving
goods but due to the shrink-
ing customer base, we have
been unable to meet salary
obligations,” he said.
The workers are on record
saying NRZ has for some
time been paying them 20
percent of their salaries.
Last year, NRZ workers
demonstrated at the parast-
al's headquarters in Bula-
wayo over the issue, and
Transport and Infrastructural
Development Minister Joram
Gumbo intervened by order-
ing the board and manage-
ment to look for funds to pay
employees.
The decline in business has
paralysed operations of the
rail utility over the years.
NRZ is moving an average of
three million tonnes of cargo
annually compared to 12 mil-
lion tonnes in 1992 and 19
million tonnes in 1997.
At least 93 percent of its
revenue used to come from
freight services.
NRZ is also reeling from a
debt of over $30 million,
while parastatals such as
the Grain Marketing Board
(GMB) and Ziscosteel owe
NRZ $7 million and $9 million
respectively.
The parastatal has been
struggling to attract new
investors since the turn of
the millennium.
According to a study done
by a Canadian consultancy
firm in 2012, NRZ requires
$1,9 billion for recapitalisa-
tion.-New Ziana
●
10 news
NRZ workers on industrial action over 14 months’ salary arrears

11. HARARE -The equities mar-
ket extended yesterday’s
gains into the new month,
after the mainstream indus-
trial index gained a further
0.19 to close at 97.80.
A couple of heavyweights
lifted the performance with
telecoms giant Econet add-
ing $0,0057 to trade at
$0,2500, while beverages
giant Delta rose by $0,0025
to $0,5650 and giant retailer
OK Zim increased by $0,0017
to settle at $0,0367.
FBCH was also up, rising by
a marginal $0,0004 to close
at $0,0604.
On the downside, BAT
shed $0,0480 to trade at
$10,7500 and Hippo eased
$0,0191 to $0,2509.
Other losses were seen in
Padenga, which lost $0,0009
to close at $0,0701, Inn-
scor retreated $0,0003 to
$0,1870 and Pearl Proper-
ties inched down $0,0001 to
close at $0,0220.
The mining index was flat
at 19.53 as all the mining
counters maintained previ-
ous price levels.
.- BH24 Reporter ●
ZSE11
Equities market extend gains

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Name Change% Pricetoday Hippo -7.07 25.09
OK Zim 4.85 3.67 Padenga -1.26 7.01
Econet 2.33 25.00 Pearl -0.45 2.20
FBC 0.66 6.04 BAT -0.44 1,075
Delta 0.44 56.50 Innscor -0.16 18.70
Index Previous Today Move Change
Industrial 97.61 97.80 +0.19 points +0.19%
Mining 19.53 19.53 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange
Previous
today

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
31 March 2016
Energy
(Megawatts)
Hwange 518 MW
Kariba 285 MW
Harare 30 MW
Munyati 22 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1332 MW
THE BH24 DIARY

14. JOHANNESBURG -South
Africa's rand steadied
against the dollar early
on Friday, holding on to
its strongest levels in four
months, but traders were
cautious ahead of a US jobs
report that will help inves-
tors gauge the strength of
the world's biggest economy.
At 0645 GMT, the rand traded
at 14,7430 per dollar, 0,16
percent firmer from Thurs-
day's New York close of
14,7670.
The currency rallied to its
firmest level since Dec. 9 on
Thursday after the country's
top court ordered President
Jacob Zuma to repay the
state for some upgrades to
his private home.
"The recent closes in the
rand have been technically
supportive of the local cur-
rency," Nedbank analysts
said in a note.
"However, somewhat exces-
sive euphoria around the
local constitutional court rul-
ing and generally improved
sentiment prevailing will see
markets likely to be some-
what cautious ahead of the
plethora of US data this
afternoon."
Stocks were set to open
lower at 0700 GMT, with the
JSE securities exchange's
Top-40 futures index down
nearly 1 percent.
In fixed income, the yield for
the benchmark instrument
due in 2026 added 2 basis
points to 9,135 percent
- Reuters●
regioNAL News14
Rand steady, focus on US jobs data
WASHINGTON - The Inter-
national Monetary Fund (IMF)
said on Thursday that it has
again cut its growth forecast for
Nigeria as the oil exporter faces
"substantial challenges" from
low crude prices. In its annual
review of Nigeria's economic sit-
uation, the IMF said that gross
domestic product growth would
slow to 2,3 percent in 2016
from an estimated 2,7 percent
in 2015. In February, after IMF
officials visited the country, the
Fund had forecast 3,2 percent
growth for Nigeria in 2016.
"Key risks to the outlook include
lower oil prices, shortfalls in
non-oil revenues, a further
deterioration in finances of
state and local Governments,
deepening disruptions in private
sector activity due to con-
straints on access to foreign
exchange, and resurgence in
security concerns," the IMF said
in a statement. It added that
Nigeria's general government
deficit would grow further after
doubling to 3,7 percent of GDP
in 2015. - Reuters●
IMF cuts Nigeria
growth forecast
again amid oil
slump

15. NEW YORK - Oil prices
jumped more than 10 per-
cent in March in the best
quarter since mid-2015
although some analysts said
the rally could fade soon
as an output freeze plan by
major crude exporters fails
to alleviate worries of a glut.
A weak dollar and data
showing a drawdown in crude
stocks at the US futures
delivery hub helped oil settle
steady to firmer in Thurs-
day's session.
But traders remained worried
that a tentative agreement
among the world's largest
producers to keep oil out-
put at January's levels will
barely make a dent on global
supplies.
Analysts said crude futures
also appear to have over-
extended gains with a 50
percent rally since the deal
was proposed mid-February,
amid little improvement in
fundamentals.
"Oversupply still persists due
to resilient US production,
even if declining moderately;
high OPEC output, led by
Saudi Arabia and Iraq; and
the gradual return of Iran
starting Q1 2016," said Mike
Wittner, global head of oil
research at Societe Generale.
Brent crude for May delivery,
which expired as the front-
month contract, settled up
34 cents, or 0,8 percent, at
$39,60 a barrel. June Brent
closed 0,7 percent higher at
$40,33.
The benchmark's front-month
soared 10 percent higher in
March - its best month since
April 2015 - and jumped 6
percent in the first quar-
ter - its best quarter since
the second quarter in 2015.
US crude futures settled at
$38,34, up 2 cents on the
day, rising 14 percent in
March and 4 percent in the
quarter - also its biggest
quarterly gain since June
2015.
In a Reuters poll, oil ana-
lysts raised their average
price forecasts for 2016 for
the first time in 10 months -
Brent averaging $40,90 and
US crude $39,70 in 2016 -
but cautioned the rally could
fade near term.
On Thursday, the dollar hit
a mid-October low, making
greenback-denominated oil
more attractive to holders of
the euro and other curren-
cies.
Data from market intelli-
gence firm Genscape showed
a 807,496-barrel drawdown
in stocks at the Cushing,
Oklahoma delivery hub for
US crude futures in the week
to March 29, traders said.
Inventories at Cushing have
receded from record highs
for two consecutive weeks,
with US government data on
Wednesday showing a 272
000-barrel drawdown in the
week ending March 25.
Total US crude stocks, how-
ever, rose 2,3 million barrels
last week to 534,8 million
barrels, a record high for a
seventh straight week.
OPEC crude output rose
in March to 32,47 million
barrels per day from 32,37
million bpd in February, a
Reuters survey said.
Analysts also expect an April
17 meeting of major oil pro-
ducers in Doha to discuss the
output freeze to fall short of
expectations.
"There is a clear risk of
disappointment and for a
temporary setback in prices
ahead or immediately after
the Doha meeting," Carsten
Fritsch, commodities analyst
at Commerzbank, told the
Reuters Global Oil Forum.
– Reuters ●
internatioNAL News15
Oil posts best quarter since mid-2015 but glut still worries

16. By Sanjaya Baru
March 2013. Barely three
years ago, South Afri-
ca’s President Jacob Zuma
sported a big smile, standing
in the middle, flanked by
Russia’s President Vladimir
Putin, China’s President Xi
Jinping, Brazil’s President
Dilma Roussef and India’s
Prime Minister Manmohan
Singh.
They had just concluded
their fifth summit meeting in
Durban, completing, as they
called it, “the first cycle of
summits”.
They announced the setting
up of the Brics’ (Brazil-Rus-
sia-India-China-South Africa)
New Development Bank and
declared their arrival on
world stage.
Cut to March 2016. Roussef
faces the distinct prospect of
an ignominious exit before
she can host the Rio Olym-
pics in August.
The first of the ‘Durban
Five’ to go was Manmohan
Singh, whose government
was trounced and had an
equally ignominious exit. In
South Africa, Zuma has also
been charged with economic
mismanagement and humun-
gous corruption and is now
16 analysis16 analysis
BRICS leaders should resist usual temptation of asking what world can do for them

17. 17 analysis17 analysis
accused of trying to perpet-
uate himself in office going
against the spirit of the
Constitution that even Nelson
Mandela respected.
In Russia, Putin continues to
celebrate his recent geopo-
litical victories hoping his
people will not pay too much
attention to Russia’s dim
economic prospects.
Finally, in China, the
so-called ‘most power-
ful leader since Mao’ Xi is
embattled handling an econ-
omy in trouble and a people
on the bubble.
Problems at home have
encouraged Xi to be asser-
tive in China’s neighbourhood
generating a new nervous-
ness across Asia not seen
since the Asian financial
crisis of 1997-98.
It would, however, be wrong
to blame the Brics for all
their woes.
The downward turn of the
commodity super cycle, the
more generalised downturn
of the ‘Kondratiev long wave’
— the 40- to 60-year cycle
of economic upswings and
downswings — and the wave
of inward-orientation and
protectionism in developed
economies too have hurt the
global economy in general
and developing economies in
particular.
To the usual mix of eco-
nomic policies and perfor-
mance anxieties gripping
nations, the International
Monetary Fund (IMF) man-
aging director Christine
Lagarde has added, address-
ing a conference in New
Delhi earlier this month,
“escalated geopolitical ten-
sions” as a challenge for
global economic manage-
ment.
The failure of the Group of
Twenty (G20) to emerge as
an effective board of global
economic management, the
spreading ‘regionalisation’ of
the global trade and financial
systems, and the ‘beg-
gar-my-neighbour’ policies
of several developed and
developing economies have
all contributed to the disin-
tegration of the Brics mortar.
If in the beginning of their
journey, Brics was in search
of mortar, now they worry
about the quality of the
cement in their structure.
Prime Minister Narendra Modi
was correct to claim a few
weeks ago that it is only the
‘I’ in Brics that was doing
well.
Both on the issue of the
handling of the economy and
of corruption, India presents
afar more reassuring picture
compared to the other four.
But Brics is not vital to
India’s economic journey
forward. Rather, India needs
the G7 — especially Japan,
Germany and the US — and
other countries of the South,
more than Russia or China
for its economic modernisa-
tion.
It is against this background
that India assumes the chair-
manship of Brics.
It will host the 8th Brics
Summit in Goa on October
15-16. When they meet in
Delhi, Brics leaders should
resist the usual temptation
of asking what the world can
do for them and see what
they can do for the world,
by addressing problems at
home. Brazil, Russia and
South Africa need domes-
tic political and economic
reform.
All five have to improve
domestic governance,
respect the rule of law and
contain disruptive and jingo-
istic elements at home.
It is only when they get
better at addressing these
challenges at home that their
leadership and views will
be taken more seriously at
home and abroad, inspiring
greater confidence in their
shared aspiration to create
new centres of power and
performance.
– The Economic Times●