A digital copy of the BH24 (22 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 - Listed conglomerate
Innscor Africa Limited is set
to separately list its Speci-
ality Retail and Distribution
Business.
This comes as the company's
board recently approved the
unbundling of the business.
Said Innscor in a statement
today:
"Shareholders are advised
that the Innscor Africa Lim-
ited board of directors has
approved the unbundling and
separate listing of the Com-
pany’s Specialty Retail and
Distribution Business.
"Shareholders will be pro-
vided with more details in due
course."
The conglomerate seem to be
accruing significant benefits
from spin-offs.
Last year, the group unbun-
dled its Quick Service Res-
taurant (QSR) business -
Simbisa Brands Ltd - and
listed it on the Zimbabwe
Stock Exchange In Novem-
ber, on the need to "to pur-
sue strategies that maximise
shareholder value and enable
a clear operational focus that
is attractive to investors,"
said Innscor at the time.
Simbisa's separate listing was
the second Innscor Africa Lim-
ited unit to list on the bourse
over a five year period.
In 2010, another Innscor unit
Padenga listed on the local
bourse.
Innscor has a wide range of
interests spanning from retail
to light manufacturing and
quick service restaurants.
Meanwhile, on Monday, the
group announced that it has
divested from the SPAR Cor-
porate Stores group operat-
ing in Zimbabwe.
In 2014 the company became
the first Zimbabwe Stock
Exchange-listed firm to
breach the $1 billion revenue
mark in the full-year to June
2014. ●
News Update as @ 1530 hours, Friday 22 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Innscor to separately list Speciality Retail business
Innscor CEO Mr Antonio Fourie

2. BH242

3. By Funny Hudzerema
HARARE -Zimbabwe is targeting a
rapid growth in tourist arrivals from
Spain in view of the country's partic-
ipation at the Feria Internacional de
Turismo [FITUR].
Zimbabwe Tourism Authority corpo-
rate affairs Mr Sugar Chagonda said
participating during the FITUR is a
big opportunity for Zimbabwe which
is going to increase tourists from
Spain.
“Our participation during the 36th
edition of the FITUR is big move
which will allow us to meet different
tourist organisations and agencies
and see we can promote and market
our tourism facilities.
“Zimbabwe needs to be well known
to benefit from the tourism sector
advertising electronically is essen-
tial but there are some events which
we need to go physically and meet
face to face with different people,”
he said.
Feria Internacional de Turismo is a
Latin tourism international travel
show which is being held every year
in Spain’s capital Madrid targeting to
market tourism facilities in different
countries.
“Our marketing efforts have seen an
increase in arrivals from about 7500
in 2013 to 9000 in 2014, statistics
for 2015 are not yet available but
indications show a growing trend in
arrivals from this market.
“Participating in these travel shows
allows us to meet with other coun-
tries’ tourism agencies, national
tourism organisations and potential
investors so this is a big milestone
which will bear fruits,” he said.
FITUR is one of the major global
Tourism fairs and this year’s edition
registered 9 500 companies from
165 countries taking up over 60 000
square metres of exhibition space.
Mr Chagonda also added that during
the fair Zimbabwe will engage with
buyers, wholesalers and potential
investors with the aim to attract
mice and business tourism events in
Zimbabwe like Sanganai/Hlanganani
World Tourism Expo to be held in
June this year.
“Zimbabwe has consistently exhib-
ited at FITUR as this tourism fair
gives Zimbabwe the impetus in
reaching the Spanish market,” he
said.
This year Government is targeting
2,5 million tourists arrivals during
the year end through using different
marketing strategies.●
3 news
Zim eyes increase in tourist arrivals from Spain
02 03
ADD TO CART
Save big on selected
Products of your choice
PAYMENT
You can purchase
whenever, wherever
using:
DELIVERY
Spend $30 or more
on your purchases
and get free
delivery
01 Hello Convenience
www.hammerandtongues.com
BIG CONVENIENCE+
BIG SAVINGS+
BIG OPPORTUNITIES
= BIG HAPPINESS
SHOP ONLINE!!

4. BH244

5. HARARE – Business leaders on
Thursday expressed mixed views
on Zimbabwe’s economic outlook
for 2016 amid calls for the Govern-
ment to implement critical reforms
to aid growth.
Government is targeting a 2,7
percent gross domestic product
growth this year buoyed by min-
ing, tourism, construction and
financial sectors.
The Zimbabwean economy
appears to have hit a plateau in
recent times, with the formal sec-
tor slowly collapsing while a vibrant
informal sector is emerging.
Stakeholders at a symposium that
the Confederation of Zimbabwe
Industries (CZI) and the country’s
leading daily newspaper The Busi-
ness Herald organized, noted that
there were many inhibiting factors
which if not addressed, could see
the country missing its growth tar-
get.
The El Nino induced drought which
the country, an agrarian based
economy is facing, was among top
factors that business leaders said
would affect the growth prospects.
CZI president Busisa Moyo said
the government should capitalise
on deals signed and agreed last
year with the Russian, China and
Nigerian billionaire Aliko Dangote
among others to stimulate growth.
“A concerted efforts needs to be
made to arrest the decline regis-
tered in 2015. We need to start
moving towards growth in capacity
utilisation,” he said.
“We would want capacity utilisa-
tion to move to 65 percent from
the current 34 percent. We believe
capacity utilisation can grow and
when it grows, we create employ-
ment,” Mr Moyo said.
Reserve Bank of Zimbabwe gover-
nor, Dr John Mangudya was how-
ever more optimistic.
“I am positive about the out-
look,” he said. “I do believe it is
the impediments that make us
stronger but we need to work very
hard.”
Dr Mangudya said it was critical
that Zimbabwe exploits its abun-
dant natural resource endow-
ment to its advantage, while call-
ing for increased transparency
and accountability in use of the
resources.
He said a deal struck with multilat-
eral creditors last year to address
the country’s debt crisis, would, if
the country meets its end of the
bargain, assist development efforts
through provision of fresh capital.
The central bank, he said, would
at the end of this month also
announce a number of measures
in its monetary policy to drive
expansion in critical sectors of the
economy. Bankers Association of
Zimbabwe president Mr Sam Mal-
aba said it was imperative for the
government to rationalize the civil
service for the country to drive its
own development agenda.
Mr Malaba said with over 80 per-
cent of the country’s budget going
towards employment costs, it was
impossible to fund development
programmes.
“It is a tough issue to deal with
politically,” he said, stressing that
the government should tackle it
head on.
He also said progress made last
year in improving the ease of doing
business in the country, a process
which was still continuing, might
also positively aid the economy’s
growth prospects.
World Bank economist, Dr Johannes
Herderschee said addressing the
country’s huge trade deficit was a
critical success factor.
”Zimbabwe’s current account
deficit is bigger than that of other
countries in the region,” he said,
while urging the government to put
more effort in attracting foreign
direct investment.
Economist Dr Godfrey Kanyenze
called on government to be more
serious about consistent imple-
mentation of its policies rather than
continuing to introduce strategies
that were never applied.
- New Ziana●
5 news
Mixed views on Zimbabwe’s economic outlook

6. BH246

7. HARARE - HarareTransport
and Infrastructural Develop-
ment Minister Joram Gumbo
has ordered the National Rail-
ways of Zimbabwe (NRZ)
board and management to do
everything within their means
to alleviate the plight of work-
ers who have gone for months
without salaries.
Minister Gumbo told a press
conference that his Ministry
had instituted short-term ini-
tiatives to curtail cash flow
challenges at the parastatal.
“In the interim, the Ministry
directs NRZ board and man-
agement to do all that is
within their means to ensure
that the plight of workers is
alleviated,” he said.
He said the initiatives that
the Ministry was undertaking
included engaging NRZ debt-
ors and monitoring payment of
rentals for properties.
“The ministry therefore
implores NRZ members of staff
and other internal stakehold-
ers to exercise restraint and
avoid any form of industrial
and other actions that may
derail Government efforts to
ensure credit lines to recapi-
talize the parastatal,” he said.
Recently, NRZ employees
demonstrated in Bulawayo
over unpaid salaries.
Minister Gumbo, said the gov-
ernment was making frantic
efforts not only to address the
situation, but also to recapital-
ize the ailing public entity.
“Government is making efforts
to recapitalise NRZ, but as will
be appreciated, the benefits
will in the medium to long
term,” he said.
The NRZ is reeling under a
debt of over US$30 million,
while parastatals such as the
Grain Marketing Board (GMB)
and Ziscosteel owe it $7 mil-
lion and $9 million respec-
tively.
“The Ministry of transport and
Infrastructural Development
will approach Government for
resolution of those debts once
Cabinet resumes its sittings,”
said Minister Gumbo.-New
Ziana●
7 news
Ministry orders NRZ management to solve workers dilemma

8. BH248

9. HARARE -- Sustained losses
throughout the week saw the
mainstream industrial index
dropping 6.83 (or 6,22 per-
cent) on a week-on-week
basis.
In today's trades, the indus-
trial index declined 0.33 to
close at 103.05 as selected
heavyweights underper-
formed.
Conglomerate Innscor slid
$0,0053 to trade at $0,2050
after it announced that had
received board approval
unbundle and separately list
its Speciality Retail and Dis-
tribution business.
Banker Barclays shed $0,0025
to $0,0385 while beverages
giant Delta was down $0,0007
to settle at $0,5493. And
telecoms giant Econet was
$0,0005 weaker at $0,1955.
Trading in the positive was
Turnall which bumped $0,0010
to close at $0,0110, and
Zimre Holdings which gained
an insignificant $0,0002 to
$0,0130.
Short-term insurer NicozDi-
amond inched up $0,0001 to
trade at $0,0162.
The mining index lost 1.97 to
settle at 19.77 points as Bind-
ura declined by $0,0025 to
$0,0103.
Falgold, Hwange and RioZim
maintained previous price
levels at $0,0050, $0,0300
and $0,1040 respectively.
Week-on-week, the mining
index retreated 1.97 points
(or 9,06 percent).
- BH24 Reporter ●
ZSE9
Industrials lose 6.83 point week-on-week
Peace of mind is good
www.sc.com/zw
Registered Commercial Bank
A member of the Deposit Protection Corporation
underwritten by
Standard Chartered Bank keeps you covered in more
areas than one with our array of Bancassurance products.
To get the optimum home, motor, life, funeral or business
cover, get in touch with us today.

10. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Turnall 10.00 1.10 Bindura -19.53 1.03
Zimre 1.56 1.30 Barclays -6.09 3.85
NicozDiamond 0.62 1.62 Innscor -2.52 20.50
Econet -0.25 19.55
Delta -0.12 54.93
Index Previous Today Move Change
Industrial 103.38 103.05 -0.33 points -0.32%
Mining 21.74 19.77 +1.97 points +9.06%
10 zse tables
ZSE
Indices
Stock Exchange

11. 11 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
22 January 2016
Energy
(Megawatts)
Hwange 491 MW
Kariba 285 MW
Harare 30 MW
Munyati 32 MW
Bulawayo 20 MW
Imports 0 - 200 MW
Total 1165 MW
10 February 2016 - Nampak Zimbabwe Annual General Meeting: Venue 68 Birmingham Road, Southerton, Harare: Time 12:00
THE BH24 DIARY

12. JOHANNESBURG - South
Africa's rand was mostly flat
against the dollar in early Fri-
day trade, with traders and
analysts expecting it to take
its steer from global trends as
investors await next week's
domestic monetary policy
statement.
The local bourse looked set
for a strong start at 0700
GMT, as indicated by a 1,7
percent jump in the Top-40
futures index.
The rand was changing hands
at 16,5400 to the greenback
by 0655 GMT, just 0,13 per-
cent firmer than its 16,5610
Thursday close in New York.
The rand has had a turbulent
start to 2016, shedding 7 per-
cent after losing about a quar-
ter of its value last year as
investors fretted about South
Africa's economic prospects
and those of China, a major
importer of local commodities.
"We maintain that the trend
for the rand is to move weaker,
and we’d expect pull-backs to
be shortlived," Standard Bank
said in a market note.
The sharply weaker rand is
expected to drive inflation
higher, forcing the South Afri-
can Reserve Bank to raise
interest rates next week
despite sluggish economic
growth of around 1,5 per-
cent, according to economists
polled by Reuters.
On the debt market, govern-
ment bonds edged higher, and
the yield for the instrument
maturing in 2026 dipped 2
basis points to 9,615 percent
.-Reuters●
regioNAL News12
Rand to track global markets as market
awaits rate call
US oil major Chevron looks to dispose of 75
pc of SA business
CAPE TOWN - US oil major
Chevron said on Thursday it
plans to sell 75 percent of
its South African business
unit which includes a 110
000 barrel a day refinery in
Cape Town.
Chevron is a leading refiner
and marketer of petroleum
products in South Africa,
the most industrialised
economy in Africa, where
it has had a presence for
more than a century.
Chevron said its call for
expression of interest was
in line with a three-year
asset sales programme it
announced in 2014.
“This demonstrates Chev-
ron's continuing focus on
balancing our global port-
folio with our long-term
business priorities, and it
is aligned with our previ-
ously announced $15 billion
divestment program,” said
Mark Nelson, the company's
president for international
products, in a statement.
Besides the Cape Town
refinery, Chevron also has
interests in a lubricants
plant in Durban on the east
coast. Its network of Cal-
tex service stations makes
it one of South Africa's
top five petroleum brands,
according to its website.
Chevron has already dis-
posed of several assets in
Africa's top crude exporter
Nigeria, as oil majors glob-
ally looked to cut costs and
streamline business models
in an over-supplied oil mar-
ket and plunging prices. -
Reuters●

13. Oil rallied in its biggest two-
day advance since August
after a slump to a 12-year low
prompted some investors to
buy back record bearish bets.
Front-month futures have
jumped more than 15 per-
cent after sliding to the low-
est since 2003 on Wednesday.
Earlier this month specula-
tors’ amassed the biggest ever
short position in US crude
amid concern that turmoil in
China’s markets will curb fuel
demand while an increase in
exports from Iran will exacer-
bate a global glut. Oil may be
the “trade of the year,” if it can
weather the surge in the Mid-
dle East producer’s shipments,
according to Citigroup Inc.
“After large directional move-
ments like those we’ve seen
over recent weeks there tends
to be a corrective move in
the opposite direction,” Ric
Spooner, a chief analyst at
CMC Markets in Sydney, said
by phone. “It does look like the
next couple of months could be
some sort of a crunch time for
oil, particularly with Iran com-
ing back into the market and
disappointing demand growth.”
Oil is still down about 17 per-
cent this year as turbulence in
global markets adds to concern
over brimming US stockpiles
and the prospect of additional
Iranian barrels. Markets could
"drown in oversupply,” send-
ing prices even lower, accord-
ing to the International Energy
Agency. The energy industry
is facing “very sharp shocks”
as it struggles to deal with a
“flood of oil,” BP Plc Chief Exec-
utive Officer Bob Dudley said at
the World Economic Forum in
Davos, Switzerland.
Energy shares rallied with oil
prices on Friday, leading gains
on the MSCI AC Asia Pacific
Index. Australian oil and gas
producer Santos Ltd. jumped
as much as 12,7 percent while
PetroChina Co. added 7,9 per-
cent in Hong Kong.
Oil Supplies
West Texas Intermediate for
March delivery gained as much
as $1,51, or 5,1 percent, to
$31,04 a barrel on the New
York Mercantile Exchange and
was at $30,63 at 4:05 p.m.
in Singapore. Front-month
futures have surged 15 percent
since the February contract
expired on Wednesday, the
most since August. The volume
of all futures traded was more
than double the 100-day aver-
age.
Brent for March settlement
climbed as much as $1,85, or
6,3 percent, to $31,10 a bar-
rel on the London-based ICE
Futures Europe exchange.
Prices are up almost 10 per-
cent since Wednesday, also the
most since August.
“There will be an initial wave
of supply from Iran, but once
that’s done, it will be flat and
I think that’s when you start
seeing opportunities for oil
to turn,” Ivan Szpakowski, an
analyst at Citigroup in Hong
Kong, said Friday. “Part of the
reason oil is the trade of the
year is because it’s going to
have such a broad affect, it’s
going to take a lot of asset
classes up with it.” - Bloomb-
erg●
internatioNAL News13
Oil rises in biggest rally since August amid volatility surge

14. An eventful year awaits Southern
Africa in 2016 as the region intensi-
fies the implementation of key mile-
stones on industrialisation, trade
and infrastructure development,
as well as the migration to digital
broadcasting.
On the economic front, the South-
ern African Development Commu-
nity (SADC) Member States are
expected to start the process of rat-
ifying the agreement on the Tripar-
tite Free Trade Area (TFTA) signed
in June 2015 to create an enlarged
market extending from Cape to
Cairo.
So far, 16 countries have signed the
Tripartite FTA that covers 27 coun-
tries in three regional communities
— the Common Market for Eastern
and Southern Africa (COMESA),
East African Community (EAC), and
SADC.
Half of these 16 countries are from
SADC. These are Angola, Demo-
cratic Republic of Congo, Malawi,
Namibia, Seychelles, Swaziland,
United Republic of Tanzania, and
Zimbabwe.
The remaining SADC countries
of Botswana, Lesotho, Madagas-
car, Mauritius, Mozambique, South
Africa, and Zambia are expected to
sign the agreement by June 2016.
Following the signing, governments
will initiate a ratification process
through their national procedures.
The agreement will enter into force
after approval is attained by two-
thirds of members of the COMESA-
EAC-SADC tripartite, advancing the
regional law from a stated intention
to actual application.
Creation of an enlarged market with
a combined population of some 600
million people and a Gross Domes-
tic Product (GDP) of about $1 trillion
is expected to boost intra-regional
trade in Africa and deepen integra-
tion through improved infrastruc-
ture development, investment flows
and enhanced competition.
In addition to the TFTA, the year will
witness intensified negotiations for
the establishment of the proposed
Continental FTA (CFTA) aimed at
promoting the smooth movement of
goods, services and people across
the continent.
Negotiations for the CFTA began in
June 2015 and the enlarged conti-
nental market is expected to evolve
from the existing FTAs in sub-re-
gional economic blocs, eventually
creating a continental bloc with
more than one billion people and a
combined GDP of more than $3,4
trillion.
The ratification and implementation
of the TFTA is therefore critical for
the success of the CFTA, targeted
for 2017.
Both FTAs depend heavily on the
industrialisation agenda.
Thus, the year 2016 will see SADC
implement two historic regional
programmes approved last year –
the SADC Industrialisation Strategy
and Roadmap 2015-2063 and the
Revised Regional Indicative Stra-
tegic Development Plan (RISDP)
2015-2020.
A detailed costing plan for the strat-
egy and the alignment of all other
regional activities to the two new
strategic documents is expected to
be finalized this year.
The industrialisation strategy and
roadmap aim to ensure that mem-
ber states harness the full potential
of their vast and diverse natural
resources, as most SADC Mem-
ber States are getting very little
in return for their resources since
these are usually exported in raw
form, with most of the value addi-
tion and beneficiation taking place
outside the region, thus benefiting
other countries.
The RISDP is a blueprint for regional
integration and development, and
the revised document realigns the
region’s development agenda with
new realities and emerging global
dynamics, and takes into account
the issues of industrialisation.
With regard to international trade,
SADC will be looking at ways to ben-
efit from the new US$60 billion fund
pledged by China to support devel-
opment on the African continent.
China made the commitment at
the Johannesburg Summit of the
Forum on China Africa Cooperation
(FOCAC) held in December 2015.
The support covers a wide range of
sectors including agriculture, energy
and information technology.
China is rapidly expanding its port-
14 analysis14 analysis
Eventful year beckons for Southern Africa

15. 15 analysis15 analysis
folio from bilateral support to indi-
vidual countries to regional eco-
nomic communities including SADC.
The year is also expected to see
a group of SADC Member States
begin the implementation of the
Economic Partnership Agreement
(EPA) with the European Union (EU)
signed in July 2014.
The agreement is undergoing legal
vetting, leading to eventual signa-
ture, ratification and implementa-
tion in 2016.
The group of SADC countries that
signed the agreement comprise
Botswana, Lesotho, Mozambique,
Namibia, South Africa and Swazi-
land. In future, Angola may join this
SADC group.
The other mainland SADC countries
are negotiating an EPA with the
EU under the Eastern and South-
ern Africa banner, while the island
nations are negotiating under the
Pacific group.
EPAs are trade and development
agreements that the EU is negoti-
ating to open up its markets with
the Caribbean region; Central
Africa; Eastern and Southern Africa;
Pacific, Southern Africa (the SADC
group) and West Africa.
On energy development, the
recently approved SADC Regional
Centre for Renewable Energy and
Energy Efficiency (SACREEE) is
set to start operations, which are
expected to change the “landscape
of energy development in SADC,” by
allowing the region to fully harness
its vast renewable energy potential.
To be hosted by Namibia, SACREEE
should, among other things, spear-
head the promotion of renewable
energy development in the region.
SADC has an abundance of renew-
ables ranging from wind, solar and
hydro, yet only a small fraction is
being exploited.
The commissioning of new power
will be accelerated to allow the
region to fully recover from the
energy crisis. This year alone, SADC
plans to add a total of 3,680 mega-
watts (MW) of new electricity to the
regional grid. By 2019, the region
aims to have commissioned a mas-
sive 23,580 MW.
On infrastructure development,
the region will continue the imple-
mentation of projects contained in
the SADC Regional Infrastructure
Development Master Plan.
The 15-year Master Plan is intended
to guide the implementation of
cross-border infrastructure projects
between 2013 and 2027 over three
five-year intervals, with the first
phase covering the period 2012-
2017 and costing around $64 billion
in investment.Agriculture and food
security remains a top priority for
SADC in 2016 following low rainfall
and drought conditions.
Countries in the region have already
started importing food.
With regard to the management
of the environment and natural
resources, SADC will host the 17th
Conference of the Parties of the
Convention on International Trade
in Endangered Species in October in
Johannesburg, South Africa.
One of the topical issues SADC
countries want addressed is the
need to lift an international ban
on trade in ivory. The international
community imposed a ban on ivory
trading a few years ago to protect
elephants and rhinoceros, which
were facing extinction.
However, the ban has seriously
eroded the revenue for animal con-
servation, and some countries have
accumulated a lot of elephant tusks
which they cannot dispose of, while
the ban has led to an increase in
poaching as communities are no
longer benefiting from proceeds
from the ivory trade.
Gender will occupy its rightful place
this year as the region and the Afri-
can continent take stock of progress
towards gender equality and equity.
The African Union (AU) has set the
theme for 2016 as the “African Year
of Human Rights with a particular
focus on the Rights of Women”.
SADC has generally done well in
promoting gender development
with an increasing number of
women occupying decision-making
positions.
Presidential candidates will have
to run on a joint ticket with their
vice-presidential candidate. In the
past, a Vice President was appointed
by the president. —Sardc.net●