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1. By Tawanda Musarurwa
HARARE – Government is
in the process of putting
in place the requisite legal
framework that will see the
country fully implementing
the Economic Partnership
Agreement (EPA) with the
European Union.
EPAs are basically a scheme
to create a free trade area
(FTA) between the European
Union and the African, Car-
ibbean and Pacific Group of
States (ACP).
Zimbabwe is signatory to
the interim EPA with the EU,
which was signed in August
2009. The country ratified
the EPA in March 2012 along
with several other African
News Update as @ 1530 hours, Friday 27 May 2016
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Industry, Finance ministries working on Zimbabwe tariff order for EPA

2. countries under the umbrella
of the East and Southern
African (ESA) regional group-
ing.
The European Parliament
approving this interim EPA in
January 2013.
Now the Government has
said it is working to set the
legal framework needed for
its localization, according
the director for Interna-
tional Trade in the Ministry of
Industry and Commerce Ms
Beatrice Mtetwa.
“The Ministry is working with
the Ministry of Finance with
a view of putting in place the
necessary legal framework,
that is gazetting of the Zim-
babwe tariff order, which will
pave way for the implemen-
tation of the trade agree-
ment,” she said recently.
The EPA grants duty-free and
quota-free market access
into each other’s markets.
The interim EPA currently
gives Zimbabwe 100 percent
duty free-quota free access
into the EU market with a
transition period for rice and
sugar.
And Zimbabwe is expected to
liberalise 80 percent of her
imports from the EU by 2022
(45 percent by 2012 with
the remaining 35 percent of
imports being liberalised pro-
gressively until 2022).
The country left out 20 per-
cent of sensitive products
of infant industries and this
was to protect industries and
products of animal origin,
cereals, beverages, paper,
plastics and rubber, textiles
and clothing, footwear, glass
and ceramics, consumer elec-
tronic and vehicles.
The EU is Zimbabwe's second
largest trading partner after
South Africa.
Some observers have how-
ever warned that Zimbabwe
may struggle to benefit from
EPAs insofar as it lost inter-
national competitiveness, as
well as its high cost profile.
At the regional level, Zim-
babwe is also participating
in the COMESA-EAC-SADC
Tripartite Free Trade Area as
well as the Continental Free
Trade Area (CFTA).●
2 news

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4. BH244

5. HARARE- Econet Wireless
Zimbabwe will partner
Ericsson to launch NuVu,
a Video-on-Demand (VOD)
platform in Zimbabwe.
The service would become
the latest entrant into the
increasingly popular, high-
ly-competitive sector, and
the first play into video by
telecommunications big shot
Econet.
According to technology news
and blogging site TechZim,
plans to launch NuVu are at
an advanced stage.
“We are reliably informed
that the digital content col-
laboration between the two
companies has been in the
pipeline since late last year,
and the partners are nearly
ready unroll into the local
market.”
The Swedish telecommu-
nication giant Ericsson
announced late last year
that it would be diving head-
long into the realm of con-
tent, quite a departure for a
company known for building
infrastructure.
Ericsson revealed it would
be launching a video-on-de-
mand (VOD) platform that
would target the growing,
but largely yet-to-be-tapped
African market.
It piloted the service, named
NuVu, in the Nigerian unit
of Bharti Airtel Ltd, under
a subscription model target-
ing the telecommunications
company's 30 million users.
Ericsson have also made the
service available to Kenyan
telecommunication compa-
nies.- New Ziana●
5 news
Ericsson and Econet Zimbabwe working on VOD platform NuVu

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8. BH24 Reporter
HARARE - Property firm
Mashonaland Holdings posted
a profit before tax of $1,3
million for the six months to
March 31, 2016.
But a tax expense of $694
505 resulted in a half-year
profit of $650 412.
According to management,
the company’s performance
was negatively affected by
increasing void levels and
downward rental reviews in
the portfolio.
“The declining collection rate
and occupancy levels mirror
the deteriorating economic
environment. Tenants are
finding it difficult to fulfil
their lease obligations,” said
chairman Mr Ron Mutanda-
gayi in a statement accompa-
nying the results.
Mashonaland’s net property
income after administration
expenses of $1, 2 million
down from $1, 4 million due
to a decline in revenue and
rising property expenses.
Administration expenses at
$1 million were down by 5
percent from prior year. The
ratio of net property income
to total income ratio dropped
to 42 percent.
The rental yield fell to 6
percent from 7 percent while
total occupancy fell margin-
ally to 75 percent from 76
percent. The rent collection
rate declined to 68 percent
from 72 percent reported at
end of last year.
In terms of outlook, Mr
Mutandagayi said the group
‘will continue with its efforts
to unlock value on its exist-
ing land banks’.●
8 news
Mash Holdings posts $1,3m profit before tax in H1

9. By Funny Hudzerema
HARARE - Lack of policy coor-
dination between Government
ministries is affecting the
growth of local industry, an
industrialist has said.
Zimbabwe National Chamber
of Commerce (ZNCC) president
Mr Davison Norupiri said there
is need for stakeholder consul-
tations between the Ministry
of Industry and Commerce and
other ministries before setting
policies to ensure that the
policies do not affect the other
ministries.
“As far as you have done much
in terms of policies to control
inputs it is unfortunately that
your policies are not in tan-
dem with what other ministries
are saying.
“If we look at the licenses
which are issued by the Minis-
try of Industry and Commerce
somehow they are declined by
the Ministry of Agriculture and
somehow within the Ministry
of Finance and on the ZIMRA
side.
He said that while speaking
during the breakfast meeting
on import management and
local industry support.
“Industry has developed a
number of policies towards
reviving the industry but the
policies have been hampered
by other ministries’ policies
which are crafted by other
ministries. The issue of poli-
cies speaking to each other is
an important issue concern-
ing the issue of reviving the
industry,” he said.
He added that the issue of
issuing licenses should be
re-visited since a number of
ministries are issuing licenses
to importers on products which
are manufactured locally.
“We need to revise the issuing
of licenses to some of the
products which we can manu-
facture locally.
“As the industry we are facing
challenges with the ministry of
agriculture with other licenses
which they are issuing in the
importation of products such
as soya beans and other things
used in the industry,” he said.
Mr Norupiri also called on
the ministry of industry to
look close to the emerging
companies to monitor their
operations since they have the
capacity to boost the industrial
sector.
“There are a number of com-
panies which have expanded
after Government introduced
measures to protect against
imported products; companies
such as ProBrands, Agrimix
and other companies in the
stock-feeds sector, these are
emerging companies," he
said.●
Need for policy coordination between ministries: ZNCC
9 news
Mr Davison Norupiri

10. HARARE - The mainstream
industrial index dropped 1.37
points on a week-on-week
comparison after additional
losses today.
Industrials lost 0.69 to settle
at 104.43 in today’s trades
as Delta eased $0,0100 to
$0,7100, while conglomer-
ate Innscor dropped $0,0094
to close at $0,2006 and
telecoms giant Econet was
$0,0026 lower at $0,2216.
Hippo also traded in the
red, going down $0,0004 to
$0,1996 and Meikles was marginally lower at $0,0777 after shedding $0,0003.
On the upside, giant insurer
Old Mutual added $0,0375
to trade at $2,2200 and
Masimba Holdings edged up
$0,0001 to $0,0075.
The mining index was steady
at 25.24 as Bindura, Fal-
gold, Hwange and RioZim
maintained previous price
levels at $0,0120, $0,0050,
$0,0300 and $0,1610 respec-
tively.
On a week-on –week basis,
the mining index shed 0.35.
. BH24 Reporter ●
Industrials close week in the red
10 zse
02 03
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11. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Old Mutual 1.71 222.00 Willdale -10.00 0.18
Masimba 1.35 0.75 Innscor -4.47 20.06
Delta -1.38 71.00
Starafrica -1.17 0.84
Econet -1.15 22.16
Meikles -0.38 7.77
Hippo -0.19 19.96
Index Previous Today Move Change
Industrial 105.12 104.43 -0.69 points -0.66%
Mining 25.54 25.54 +0.00 points +0.00%
11 zse tables
ZSE
Indices
Stock Exchange
Previous
today

12. 12 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
27 May 2016
Energy
(Megawatts)
Hwange 336 MW
Kariba 677 MW
Harare 0 MW
Munyati 28 MW
Bulawayo 20 MW
Imports 0 - 400 MW
Total 1237 MW
27 MAY -- ZB Financial Holdings Limited Twenty-Seventh Annual General Meeting; Place: Board Room, Ground Floor, 21
Natal Road, Avondale, Harare; Time: 10:30hrs
31 MAY -- Pearl Properties (2006) Limited Annual General Meeting; Place: Royal Harare Golf Club, Harare; Time: 14.30hrs
2 JUNE -- Zimplow Annual General Meeting; Place: Zimplow Holdings Limited Head Office, 36 Birmingham Road, Harare;
Time: 10:00hrs
9 JUNE -- First Mutual Holdings Annual General Meeting; Place: Royal Harare Golf Club, Harare; Time: 14:30hrs
THE BH24 DIARY

13. JOHANNESBURG - South
Africa's rand edged weaker
on Friday as risk appetite
faded globally before a
speech by the United States
central bank that could
signal higher interest rates,
drawing investor attention
away from domestic issues.
By 0700 GMT the rand
had slipped 0,4 percent to
15,5820 per dollar, weaker
than its close at 15,5200 in
New York.
The rand sunk the session
low as traders anticipated
that Federal Reserve chair-
woman Janet Yellen's would
confirm the bank intentions
to raise interest rates soon.
Data from China showing
profits of industrial firms
slowed in April further damp-
ened sentiment toward com-
modity-exporting emerging
economies.
Traders said they expected
the rand to remain in a
recent narrow range with no
major data releases due in
the session.
"The squaring up of specu-
lative positions has already
commenced," said chief
trader at Standard Bank
Warrick Butler. "Markets are
all about SA (South Africa)
politics, US rates and China
growth."
Ratings agency Fitch warned
on Thursday that political
wrangling ahead of local
elections in August posed a
risk to the country's credit
status.
Fitch and Standard and
Poor's are expected to decide
whether to cut South Africa's
rating to subinvestment
grade next month.
Bonds were flat in early
trade, with the yield on the
benchmark government issue
due in 2026 unmoved at 9,37
percent.
On the bourse, the Top-40
futures index was up 0,5
percent, indicating markets
would open firmer when
trade commences at 0700
GMT
- Reuters●
regioNAL News13
AMCU union on strike at Sibanye's
Kroondaal mine
Rand falters as US rate risk resurfaces
JOHANNESBURG - Mem-
bers of South Africa's Asso-
ciation of Mineworkers and
Construction Union (AMCU)
have begun an indefinite
strike at Sibanye Gold's
Kroondaal mine on Friday
over a lack of transport
for employees, the union's
president said.
"The company doesn't want
to provide transport for its
employees and these are
basic conditions of employ-
ment," Joseph Mathunjwa
told Reuters.
– Reuters●

14. The dollar’s best month in
more than a year faces one
last hurdle: Janet Yellen
speaks on Friday and any
hint of dovishness could spur
a reversal for the greenback.
A gauge of the currency
against 10 major peers was
set to snap a three-week
rally, even after a string of
the Federal Reserve Chair’s
colleagues signaled their
willingness to tighten policy
as soon as next month. The
odds indicated by futures
of an interest-rate increase
at the central bank’s June
14-15 meeting rose as high
as 34 percent this week,
almost tripling this month.
Evidence is mounting the
economy is solid enough
to merit Fed action, with a
measure of data surprises
surging to the highest since
the start of last year.
“The dollar rally has stalled,”
said Imre Speizer, a mar-
kets strategist at Westpac
Banking Corp. in Auckland.
“Yellen’s conversation will be
closely watched, but mone-
tary policy guidance is not
assured.”
The Bloomberg Dollar Spot
Index slipped 0.2 percent
since May 20 as of 7:08 a.m.
in London Friday, after gain-
ing 3,2 percent in previous
three weeks. It’s still set
for the biggest advance this
month since January 2015,
after gaining against 15 of
16 major currencies. US eco-
nomic data have exceeded
analysts’ forecasts, resulting
in the highest reading in the
Bloomberg Economic Surprise
Index since January 2015.
G-7 Statement
The greenback was little
changed at 109.71 yen,
having advanced as much as
0,2 percent after the com-
munique from the Group
of Seven summit meeting
in Ise-Shima, Japan, said
excessive, disorderly for-
eign-exchange moves have a
bad impact on the economy.
Against the euro, the dollar
was at $1,1199 from $1,1194
on Thursday, headed for a
0,2 percent weekly gain.
Japan’s consumer prices
dropped for a second month
in April as central bank
Governor Haruhiko Kuroda
struggles to spur inflation
with record asset purchases
and negative interest rates.
The data is the final set of
consumer price indicators to
be released before the Bank
of Japan’s board meets June
15-16.
“There’s been speculation of
a big-bang easing in June or
July, and that could possibly
drive the yen weaker,” Sim
Moh Siong, a foreign-ex-
change strategist at Bank
of Singapore Ltd., said in a
Bloomberg Television inter-
view. “A lot also depends
on how the feedback from
the Fed’s action affects risk
sentiment. That’s going to
result in a lot of choppiness
in dollar-yen.”
Japan’s currency is set to
trade between 105 and 115
per dollar in the coming
months, Sim said.
Jeffrey Gundlach, chief exec-
utive officer of DoubleLine
Capital LP, said he expects
a dovish speech from Yellen
Friday.
The Fed will refrain from
raising interest rates in
June unless traders in the
futures market assign odds
of at least 50 percent to the
move, he said Thursday in
Beverly Hills, California.
– Bloomberg●
internatioNAL News14
Dollar faces Yellen test on path to biggest advance in 16 months

15. By Robert Gumede
There is a misinformed notion
that Africa’s rise is being
hijacked by China. There are
claims that at the moment
when South Africa, for exam-
ple, has found the momentum
to emerge as a developing
economy amidst the budding
continent, its resources and tal-
ent are routinely exploited by a
nation undertaking a “no strings
attached” integration policy, one
serving as the root of American
investment trepidation.
Our best chance of growth, they
claim, is being cut away from
us by the Chinese, who want to
prune it before it can flower.
This is, of course, nonsense.
China is no doubt in Africa, and
they are looking for business;
win-win partnerships. But
China’s trade and investment is
to be welcomed; if Africa is to
continue its awakening, it needs
to connect with the economic
giants, and China is one of the
best partners we could hope for.
After over 400 years of coloni-
alism, almost every new energy
power station, hospital, school,
roadway, water purification cen-
tre, railway, port or food security
enterprise has been funded and
built by China in unique partner-
ship with African countries.
President of the People’s Repub-
lic of China, Xi Jinping proposed
at the Johannesburg Summit of
the Forum on China-Africa Coop-
eration (FOCAC) in December of
2015 the concept of our strategic
partnership; moreover, its ability
to flourish through governance
offering guidance, business play-
ing a lead role and such win-win
cooperation promoted through-
out the multilateral engagements
in Africa to date and in future.
I have often participated at
similar forums in Beijing, Shang-
hai and of course at home in
Johannesburg, bringing together
officials and business leaders
to discuss the role of Chinese
policy and investment. It has
been enlightening and encourag-
ing to hear about the good that
China has done for Africa, and
the ambitious plans it has for the
years to come. The China-Africa
Development Fund under pan-Af-
ricanist Chairman Chi (for exam-
ple) has been further capitalised
to make innovative investments,
especially in the industrialisation
of African countries in order to
create sustainable jobs. And
since my country joined BRICS,
we have seen partnerships such
as this blossom.
It is true that there have been
tensions in the relationship. But
officials from China have been at
pains to reassure that Chinese
companies will strictly abide by
local laws and regulations, hold
themselves accountable for the
quality of their projects, goods
and to consumers, and “shoulder
due responsibility” for local com-
munities and the environment.
The reality is that China has
been a vital catalyst in African
growth in recent years and this
cannot be overlooked. China’s
trade with Africa has overtaken
that of the traditional partners,
Europe and the US. China-Africa
trade is now at $300bn, with
more than 2 500 Chinese compa-
nies operating on the continent.
Take Nigeria, for example: trade
between Nigeria and China in
1994 was $90m but by 2000, it
had climbed to about $830m.
Last year, it was $15bn.
And, such as in resource-rich
Nigeria, energy is a key area
where Chinese expertise can
help.
Akinwumi Adesina, president of
the African Development Bank,
stated that by 2025 there is
absolutely no reason why Africa
should not be “totally lit up with
the power it needs to industri-
alise”.
“While we must explore every
single opportunity, we will use
the sun until the sun becomes
the moon,” he said. And as the
world’s biggest manufacturer of
solar panels, China is an obvious
partner when it comes to tap-
ping into the ample renewable
energy of sunlight that shines
over Africa. Indeed the Africa
game-changer 40 000 MW Grand
INGA Hydro Project will only see
light if China, the Democratic
15 analysis15 analysis
The next wave of Sino-African opportunities

16. 16 analysis16 analysis
Republic of Congo (DRC), African
Union (AU) and South Africa join
hands.
With Chinese and African entre-
preneurs like me, the days of
“Black Africa” will be a thing of
the past as new energy projects
from Cape Town to Cairo will
power and light up our econo-
mies.
However, while at the end of
last year, China and the African
Union agreed on an ambitious
plan to develop road, rail and
air transport routes to link
capitals across the continent,
social responsibility projects
to coincide have been over-
whelmingly encouraged. Indeed
Takyiwaa Manuh, Director of the
UN Economic Commission for
Africa (UNECA), commented that
Chinese firms will be doing much
more in the sectors of infrastruc-
ture development and impor-
tantly, alongside it, technical
education and training (such as
agricultural training and other
vocational exercises) as part of
a necessary ‘soft infrastructure’
approach to support lasting
economic modernisation and
industrialisation.
No doubt a well-functioning road
network will bring trade to cities
and villages across the conti-
nent, helping African countries
enhance their connectivity
and break their development
bottleneck. And while China
has already completed 1,046
projects in Africa, building 2,233
km of railways, 3,530 km of
roads and over 132 schools and
hospitals, such ‘soft infrastruc-
ture’ initiatives will allow for
sustainable development to be a
mutually-beneficial realisation.
Thirty years ago, China was just
embarking on its programme of
economic reforms under Deng
Xiaoping. Slowly but steadily,
Deng’s reforms opened China
to foreign investment and the
global market, and encouraged
private competition.
They eventually turned China
into one of the fastest-grow-
ing economies in the world for
over 35 years and raising the
standard of living of hundreds of
millions of its citizens; surely we
can learn from China’s example
and support an agenda wholly
tangible and with accountable
benchmarks to enhance our
shared ascendancy.
I have always said that “I
strongly believe the best time to
climb on the back of an elephant
is when it is on its knees, so that
when it rises, you should be on
its back”. This mantra applies to
African economics.
It is thus critical that Chinese
companies partner with African
entrepreneurs to secure their
investment and sustainable
growth, differentiating them-
selves from the former colonial
powers who may have only been
interested in dealing with the
“big man” than local busi-
nesspersons. This mantra will
help rid Africa of being labelled
and stigmatised as corrupt. And
governments are enablers for
such partnerships, whilst ensur-
ing businesses invest properly to
create jobs and grow the middle
class, so as to develop the list of
tax payers towards the fiscus.
Frankly, the days of Africa being
a begging bowl are over; Africa
is so too ready for Chinese
business.
Ultimately, while US foreign
policy has of late hinged largely
on ‘resets’ and ‘pivots’ (and
no doubt coming presidential
elections will shift this dynamic),
Africa and China’s destinies have
been and will remain closely
linked.
The spirit of our founding fathers
Nyerere, Mandela, Krumar,
Lumumba, Kaunda, Marcus Gar-
vey and Chairman Mao lives on.
We supported each other during
the struggle for independence;
we have forged a relationship of
mutual learning in our civilisa-
tions and cultures.
We have respected each other’s
choices in the path of develop-
ment according to our national
conditions, and we are learning
from each other. – Howwema-
deitinafrica.com ●
*Robert Gumede is an entre-
preneur, philanthropist and
executive chairman of South
Africa’s Guma Group of Com-
panies.