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1. By Tawanda Musarurwa
HARARE - Pan-African invest-
ment managers, Imara Africa
Securities, says the Zimba-
bwe Stock Exchange (ZSE)
maintains significant potential
upside going forward – but
that’s for durable investors.
Although the strategists are
predicting unspectacular
returns from the local bourse
–if any – the focus is on taking
a more long-term approach.
In its Sub-Saharan Africa
Stock Markets 2015 Review
and 2016 Outlook, Imara said
“the performance of the ZSE
in 2016 will depend on the
authorities addressing the
macro-economic fundamen-
tals.”
“Although the economic envi-
ronment is likely to remain
challenging, we believe that
ZSE valuations are generally
attractive for long term inves-
tors.
“In our view, the ZSE still car-
ries good long-term growth
potential given the econo-
my’s strong growth prospects
around the area of mineral
endowment, albeit off a low
base,” said the investment
managers.
“We believe that it will be dif-
ficult for ZSE stocks to post
decent capital appreciation,
instead we urge investors to
be defensive and also consider
dividend yields.
“The market sell-off has
resulted in relatively unde-
manding valuations, espe-
cially in comparison with
regional peers for most blue
chips, although we note that
growth rates for Zimbabwe
have turned negative in some
cases. Given the economic
News Update as @ 1530 hours, Friday 19 February 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Imara forecasts long term uptick potential for ZSE

2. outlook we believe that vol-
atility on the ZSE will stay
high. In that regard, investors
should ride the speed humps,
remembering to maintain a
careful selection policy.
“Investors should note that
the volatility in valuations nor-
mally creates buying oppor-
tunities and we recommend
picking up the blue chips on
weakness. Given the limited
depth of the ZSE, patience is
generally required to build a
position.”
But it is more likely than not
that most corporates will post
negative earnings growth
rates this year, said Imara.
According to Imara, investors
on the local bourse should
adopt “a bottom up strategy.”
“In our view, blue chip stocks
will offer defensive qualities
that can limit the downward
risk of equity portfolios. Our
picks tend to be monopolistic,
lowly geared, well-managed
with strong cash generation
abilities and solid balance
sheets.”
Some of these recommended
stocks include: British Amer-
ican Tobacco Zimbabwe,
Econet, AFDIS, Innscor, Nat-
foods, Old Mutual, Padenga
and SeedCo.
Imara also positively rated
listed financial institutions.
“Given the tight liquidity con-
ditions and limited credit lines
we believe that bank asset
quality pressures will remain
elevated. We rate banks at
best as Spec Buys and our
picks in this space include
Barclays, CBZ Holdings, FBC
Holdings and NMBZ Holdings.”
The ZSE had its shakiest start
to a year ever. Earlier on
Tuesday the equities market
hit its lowest level since April
30, 2009 after dropping 0.59
to settle at 99.80. And it has
declined further in the follow-
ing few trades.
However, the investment man-
ager is determined that its
long-term prospects are good.
“Given the limited depth of
the ZSE, patience is generally
required to build a position,”
added Imara.●
2 news

3. BH243

4. By Munesu Nyakudya
HARARE - About 85 per-
cent of SMEs are yet to be
licensed by the local author-
ities, official figures from the
Ministry of Small and Medium
Enterprises and Co-operative
Development show.
Addressing delegates at the
launch of the Informal Sec-
tor Formalisation and Co-op-
erative Policy (2005) Review
Consultative Processes in
Harare yesterday, the Min-
ister of Small and Medium
Enterprises and Co-opera-
tive Development Sithembiso
Nyoni said her department
was disappointed with the low
levels of compliance.
“I cannot over emphasise the
importance of SMEs to our
country........It is however
disappointing to note that only
15 percent of these MSMEs
businesses were licensed with
the local authorities.
“This figure shows that 85
percent of SMEs businesses
are not registered, reflecting
high levels of informality,”
said the Minister.
“Therefore it is impera-
tive that the Government,
through the Ministry of Small
and Medium Enterprises and
Co-operative Development
take the driving seat to for-
malise the operations of all
small and co-operatives in
Zimbabwe to promote the
growth of this sector.”
Minister Nyoni said her
department is defining for-
malisation of informal enter-
prises and SMEs not as an
imposition of rules or regula-
tory measures but as recogni-
tion of the economic role that
this sector is playing, with
a view of boosting capacity,
growth and contribution of
this sector to economy.
She added that formalisation
will help local SMEs access
regional and global markets.
“Formalisation can be viewed
as transition from the infor-
mal to the formal sector in
Zimbabwe. The Ministry is
aware that for our small and
medium businesses to access
regional and international
markets, and benefit from
preferential trade agree-
ments that we are party to,
there is need for registration
processes as well as quality
validation of products.”
Meanwhile the Ministry is also
reviewing the Co-operative
Policy of 2005. Consultative
workshops will commence
from February 29 to March
18, in all the country’s prov-
inces.●
4 news
Sithembiso Nyoni
85pc of SMEs unlicensed: Minister Nyoni

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6. BH24 Reporter
HARARE - PPC Zimbabwe
cement manufacturing com-
pany has appointed Mr Kelib-
one Masiyane as its new man-
aging director to replace Mr
Njombo Lekula who was rede-
ployed within the group.
PPC Zimbabwe is a subsidiary
of South African cement manu-
facturing giant, PPC. According
to the group, the development
is part of the company’s new
appointment exercise which
was taking place in the group’s
international companies.
“Following the recent re-de-
ployment of former manag-
ing director of PPC Zimbabwe
Njombo Lekula as the manag-
ing director of PPC’s interna-
tional operations the country’s
executive team has been fur-
ther strengthened through a
number of new appointments.
“Most notable is that of former
general manager of Colleen
Bawn and the Bulawayo Fac-
tory, Kelibone Masiyane as PPC
Zimbabwe’s managing direc-
tor,” said PPC in a statement.
Mr Masiyane had worked for
PPC since 1993 in various divi-
sions.
He is a holder of an Honours
Degree in Applied Physics and
an MBA both from NUST. PPC
said Mr Masiyane joined the
company as an attachment
student in 1993 where he was
part of the commissioning
team of the new kiln line and
joined PPC officially in Decem-
ber 1994 after completion of
his first degree as a trainee
electrical engineer.
In 2003 he moved to the pro-
duction department as the
production superintendent
becoming the production man-
ager in 2005 a position he
held until January 2009 when
he was appointed the general
manager of the Colleen Bawn
Plant.
In October 2014 Mr Masiyane
became general manager for
both Colleen Bawn and Bul-
awayo Factories. In terms
of other appointments, PPC
appointed a new executive
which comprises of commer-
cial director Mr Iain Sheasby,
general manager of the finance
Ms Karen Mhazo while Mr Trust
Mabaya was elected group
human resources manager.●
6 news
Lekula exits, Masiyane appointed to lead PPC Zimbabwe

7. BH247

8. By Funny Hudzerema
HARARE – Twenty local women
entrepreneurs are representing
Zimbabwe at the Brilliant Entre-
preneur (BE) Programme in the
Netherlands which started on Feb-
ruary14 and ends on February 21.
The programme, which builds on
women’s individual talents and
offers intensive training, match-
making as well as technical sup-
port in business innovation, was
conducted by the Brilliant Entre-
preneur Program (BEP) in collabo-
ration with ZimTrade, the Embassy
of the Kingdom of the Netherlands
(EKN) in Harare and the Nether-
lands Enterprise Agency (RVO).
The aim is to create business link-
ages for women entrepreneurs,
thereby opening doors to new
ideas, innovations and markets,
among others.
Participants were drawn from var-
ious sectors such as agriculture
and processed foods, horticulture,
fashion and design as well as the
service industry.
ZimTrade chief executive Ms
Sithembile Pilime commended
the Embassy of the Kingdom of
the Netherlands in Harare and the
Netherlands Enterprise Agency
for affording Zimbabwe such an
opportunity.
“We welcome these synergies,
they will assist us to unlock
our potential. The programme
enhances entrepreneurial skills in
molding businesses into innova-
tive, socially responsible, sustain-
able and profitable enterprises.
“We, therefore, challenge our
women entrepreneurs to fully uti-
lise this opportunity and tap into
the expertise at their disposal,”
said Ms Pilime.
According to the programme
co-ordinators, the development
of women entrepreneurs is crucial
for heathy economic and social
development. Women entrepre-
neurs from Macedonia, Kosovo
and Albania are already benefiting
from the same programme.
.●
8 news
20 local entrepreneurs take part in Brilliant Entrepreneur Programme

9. BH249

10. HARARE - The mainstream
industrial index lost 1.92 (or
1,90 percent) on a week-on-
week basis as economic funda-
mentals remained unfavioura-
ble.
Following today’s trades, the
industrial index closed the
week lower at 98.92 0.19 on
the back of losses in NatFoods,
which eased $0.0500 to close
at $2,5500 and cement pro-
ducer PPC, which declined
by $0,0300 to $0,7700 while
Simbisa retreated $0,0020 to
trade at $0,1420.
CAFCA also slid $0,0005 to set-
tle at $0,2795.
Milk processor Dairibord and
beverages giant Delta were
unchanged at $0,0690 and
$0,5200 respectively while
activity was limited to six
counters.
The mining index was steady
at 18.74 points as Bindura,
Falgold, Hwange and RioZim
maintained previous price
levels at $0,0090, $0,0050,
$0,0300 and $0,1040 respec-
tively.
Week-on-week the mining
index was unchanged
. - BH24 Reporter ●
ZSE10
Industrial stocks maintain downturn

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12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
PPC -3.75 77.00
Natfoods -1.92 255.00
Simbisa -1.38 14.20
CAFCA -0.17 27.95
Index Previous Today Move Change
Industrial 99.11 98.92 -0.19 points -0.19%
Mining 18.74 18.74 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange
Previous
02 03
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13. BH2413

14. 14 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
19 February 2016
Energy
(Megawatts)
Hwange 341 MW
Kariba 285 MW
Harare 17 MW
Munyati 28 MW
Bulawayo 0 MW
Imports 0 - 450 MW
Total 1355 MW
—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
25 February 2016 - Extraordinary General Meeting (“EGM”) of the Shareholders of Radar Holdings Limited; Place: Tanganyika
House, 6th Floor Boardroom, Harare; Time: 0900 hours...
25 February 2016 - The 49th Annual General Meeting of Mashonaland Holdings Limited; Place: The Boardroom, 19th Floor, ZB Life
Towers, 77 Jason Moyo Avenue, Harare; Time: 1200 hours...
26 February 2016 - The Sixty-ninth Annual General Meeting of Ariston Holdings Limited; Place: Ariston Holdings Limited Main
Boardroom, 306 Hillside Road, Msasa Woodlands, Harare: Time: 14.30 hours:
THE BH24 DIARY

15. BH2415

16. JOHANNESBURG - South
Africa's rand hovered close to
the previous session's 7 week
high on Friday, supported by
renewed optimism about the
outlook for the global econ-
omy, while MTN led stocks
lower a day after issuing a
profit warning.
Analysts cautioned that the
rand could resume the down-
ward spiral triggered by the
clumsy changing of finance
ministers in December if
next week's budget failed to
convince investors that pru-
dent fiscal policy remains
intact.
At 0712 GMT, the rand traded
at 15,3940 versus the dollar,
up 0,1 percent from Thurs-
day's close in New York.
The local unit had climbed to
its strongest level since late
December during Thursday
trade as receding fears of a
global economic downturn
boosted risk appetite.
Next week's budget poses a
risk for the rand as Finance
Minister Pravin Gordhan must
juggle a series of conflicting
demands with limited reve-
nue, against the backdrop of
sluggish growth for Africa's
most advanced economy.
"The rand may move closer to
15,00 still, but ahead of the
budget next week ... upside
may have become a bit com-
pressed," Standard Bank said
in a note.
"From a risk/return perspec-
tive, adding to long rand
positions at this point does
not add much value given the
lingering event risk."
South African shares got off
to a weak start, with the
Top-40 index down 1,1 per-
cent while the broader all-
share fell 0,8 percent soon
after the market opened at
0700 GMT.
The losses were led by mobile
firm MTN, which tumbled
more than 13 percent after
warning the previous day that
its full year profit had likely
fallen at least 20 percent.
Government bonds also weak-
ened, and the yield for the
benchmark instrument due in
2026 added 5 basis points to
9,135 percent. - Reuters●
regioNAL News16
Rand pauses, MTN leads stocks lower
Keillen Ndlovu

17. BH2417

18. European Central Bank
President Mario Draghi told
European Union leaders that
the bloc must preserve its
powers to regulate financial
markets in all 28 member
nations if needed, according
to three European officials.
During negotiations of the
UK’s membership terms in
the EU at a summit in Brus-
sels on Thursday, Draghi
said the bloc’s financial
markets will remain inte-
grated regardless of how
British involvement in the
union evolves, said the offi-
cials, who asked not to be
named because the talks
were private.
Britain’s relationship with
the euro area’s banking
union is one of the key
areas of debate at the two-
day summit, where British
Prime Minister David Cam-
eron is trying to secure a
deal that will help him win
a referendum later this year
on whether to stay in the
EU. The UK has sought to
shield its banks from being
bound by euro-area regu-
lations, while France has
pushed back that London financial firms shouldn’t get
an unfair advantage from
whatever deal is struck
.-Bloomberg●
internatioNAL News18
Draghi said to urge EU to keep broad powers to regulate markets
Mario Draghi

19. BH2419

20. By Allan Akombo
Thinking of traversing Africa
in search of trade and invest-
ment opportunities? You may
need to consider what parts
of the continent to focus on
in terms of flexibility in travel
and how visa-open the desti-
nation country is.
According to the Africa Visa
Openness Report 2016 pub-
lished by the African Devel-
opment Bank (AfDB), the
most visa-open countries are
found in West Africa and East
Africa. A massive 75 percent
of countries in the top 20
most visa-open countries are
in West Africa or East Africa.
Surprisingly, only one in
North Africa and none in Cen-
tral Africa are in the top 20
most visa-open countries—
underlining the challenges
the continent faces in boost-
ing its trade and investment
profile.
East Africa has the bulk (45
percent) of the top most
visa-open countries includ-
ing Burundi, Comoros, Dji-
bouti, Kenya, Rwanda, Sey-
chelles, Somalia, Tanzania
and Uganda.
West Africa has the second
largest cluster (30 percent)
of the top most visa open
countries including Burkina
Faso, Cape Verde, Gambia,
Guinea-Bissau, Mali and Togo,
according to the index.
The Southern African bloc
is ranked third in terms of
visa openness in four coun-
tries that include Madagascar,
Mauritius, Mozambique and
Zambia.
Seamless borders are no
doubt a boon to trade and
investment world over
because of free movement
labor, goods and capital.
The fruits of an open visa
policy have been supported
by the formal adoption of the
European Union (EU) Schen-
gen Agreement in 1995 that
abolished the EU’s inter-
nal borders, enabling pass-
port-free movement across
most of the bloc.
The deal helped the Schen-
gen countries to ramp up
trade and investment among
themselves thanks to an open
visa policy. According to the
Economist, every year peo-
ple make 1,3 billion crossings
of the EU’s internal borders
along with 57 million trucks
carrying €2,8 trillion ($3,7
20 analysis20 analysis
Integration: Most visa-open countries are found in East and West Africa

21. 21 analysis21 analysis
trillion) of goods.
“Yet Africa largely remains
closed, with Africans still
needing visas to travel to
over half of the continent.
These headlines go against
the continent’s goal to truly
become ‘one Africa.’
And still we know that it is
the free movement of people,
together with the free move-
ment of goods, services and
capital, which is the lifeblood
that will sustain Africa’s inte-
gration,” Akinwumi Adesina,
President African Develop-
ment Bank Group says.
At the November 2015 EU-Af-
rica Vallet Summit, African
leaders committed to support
migration initiatives across
the continent to help spur
trade and investment within
the continent.
“The vision for Africa set out
in Agenda 2063 and its call to
action urge the creation of an
African passport and an end
to visa requirements for all
African citizens in Africa by
2018.
Time is running out to meet
that pledge,” Dr Adesina said
following the launch of the
Visa Openness Report.
Several African countries
have made major strides in
adopting the open visa policy
through a number of smart
solutions that have yielded
huge returns.
For example as a result of
opening up their borders,
countries such as Seychelles,
Mauritius and Rwanda have
seen a big impact on tourism,
investment and financial ser-
vices.
As part of its growth agenda
by 2063, the African Union
(AU) set a goal to be conti-
nent with seamless borders”
where “the free movement
of people, capital, goods and
services will result in signif-
icant increases in trade and
investments amongst African
countries rising to unprece-
dented levels, and strengthen
Africa’s place in global trade.”
“Greater visa openness is a
vital part of the solution in
getting Africa to reach that
vision.
There is a strong business
case for visa openness in
Africa, which in turn promotes
the free movement of people
and is at the foundation of
deeper and closer integration
of the continent,” AfDB said.
“There are huge potential
gains to be had for countries
and regions across Africa
in having more visa-open
policies for other Africans.
That holds true whether it
is to help plug skills gaps in
the labour market, promote
entrepreneurship, diversify
the economy, add value to
services, or whether it is to
attract investment and boost
competitiveness” it added.
The open visa policy is
expected to have more rele-
vance ahead of the planned
merger of three African
economic blocs into a new
27-nation free-trade zone.
A deal signed by Heads of
States in Cairo in June 2015
targets to combine the Com-
mon Market for Eastern and
Southern Africa (Comesa),
the Southern African Devel-
opment Community (SADC),
and the East African Commu-
nity (EAC).
This will create a free trade
union capturing more than
60 per cent of the continent’s
economic activity and inves-
tors will easily reach a mar-
ket of 625 million consumers
from South Africa to Egypt.
The tripartite FTA popularly
known as the grand Free
Trade Area will be the largest
economic bloc on the conti-
nent and the launching pad
for the establishment of the
Continental Free Trade Area
(CFTA) in 2017, Comesa said
in a statement in 2015.
Although African economies
are growing fast, second only
to Asia, the continent has
attracted criticism over its
slow pace of integration. –
AFK Insider●