A digital copy of the BH24 (20 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 - Government will not
privatise all the state-owned
enterprises (SOEs) and par-
astatals that have been ear-
marked for reform, the acting
Minister of Finance and Eco-
nomic Development Walter
Chidhakwa has said.
Minister Chidhakwa today said
some of these entities remain
critical in their basic concep-
tualisation, but may require
modifications.
The first phase of the (SOEs)
and parastatals reform pro-
gramme has been targeted at
Agribank, Air Zimbabwe, Grain
Marketing Board, Cold Stor-
age Company, NetOne, TelOne,
Zimbabwe Iron and Steel Com-
pany, National Railways of Zim-
babwe, National Oil Company
of Zimbabwe and ZESA Hold-
ings.
Said Minister Chidhakwa:"If
TelOne was a privately-owned
company would it be what it is
today? If CSC was a private-
ly-owned company would it
be what it is today? These are
fundamental questions to ask.
We ask these questions not
because we think the entire
economy should lie in private
hands, but because there are
other issues at stake....
"You can't wish them (para-
statals) away because they
play an important part in the
history of the development of
any country. Even today when
you have corporations whose
annual sales are bigger than
budgets or GDPs of nations
still remain in the developed
countries, because they have a
purpose of looking after social
infrastructure that underpins
the development of the coun-
try. And therefore it is abso-
lutely necessary to have them,"
said Minister Chidhakwa.
"The question is which ones
should you have at any one
point in the development of a
nation. We have an obligation
to study the circumstances
within a country and say this
we cannot have or this we can
have, but not in this form."
Some economic observers have
also conjectured that simple
privatization of SOEs and para-
statals without expunging their
management inefficiencies,
poor governance systems, and
debts will not work.
Meanwhile, the acting Minister
of Finance said Government
would no longer be funding
SOEs and parastatals without
detailed information on the
operations of the entities hav-
ing been provided.●
News Update as @ 1530 hours, Wednesday 20 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
No wholesale privatisation of SOEs, parastatals: Chidhakwa

2. BH242

3. By Tawanda Musarurwa &
Munesu Nyakudya
HARARE – The country's
largest mobile telecoms oper-
ator Econet Wireless Zimba-
bwe's market share dropped
from 55,5 percent in the sec-
ond quarter of 2015 to 53, 9
percent in the third quarter,
according to the latest Post
and Telecommunications Reg-
ulatory Authority of Zimba-
bwe (POTRAZ) quarterly sec-
tor performance report.
Econet however maintained
market dominance, trailed by
state-owned NetOne which
gained 2,4 percentage points
from the second quarter to
30,7 percent.
And Telecel Zimbabwe's mar-
ket share declined from 16,2
percent in the second quarter
to 15,4 percent in the third
quarter.
Over the review period Zim-
babwe’s mobile penetration
rate increased by 1,3 percent
too reach 92,8 percent.
This figure represents the
active mobile subscribers,
whose total came to 12 394
383 subscribers versus the
total registered subscribers
(both active and inactive)
which number 19,054 million.
In respect of active sub-
scriber numbers, Econet had
6 679 million active subscrib-
ers, followed by NetOne with
3,8 million and Telecel with
1,913 million.
According the POTRAZ report
covering the third quarter of
last year, Zimbabwe's mobile
penetration rate rose 1,3 per-
cent to reach 92,8 percent.
The mobile penetration rate
basically represents the num-
ber of active mobile phone
users within a specific popu-
lation
On the other hand, the coun-
try's internet penetration
continues to be low, despite
recording a 2,1 percent bump
in the third quarter to 46,6
percent.
The stats from POTRAZ sug-
gest that the increase in inter-
net penetration can largely
be attributable to LTE rollout
from Econet and NetOne.
For instance internet connec-
tion via LTE rose by a signif-
icant 5424,3 percent during
the period under review.
Telcos revenues decline
Notably, the report showed
that total revenue generated
by the three mobile operators
significantly declined by 2,9
percent to $183 million from
$188 million recorded in the
previous quarter.
Although voice service con-
stituted 60,1 percent of total
mobile operator revenues in
the third quarter, they failed
to push up revenue "due to
net-on-net calls which were
being offered at discounted
promotional rates," said
POTRAZ.●
3 news
Econet market share slips

4. BH244

5. By Funny Hudzerema
HARARE -There is to recon-
figure the Cold Storage Com-
pany (CSC) to an exclusive
beef export company to fight
off stiff competition from local
private abattoirs, an official
has said.
Acting Minister of Finance and
Economic Development Wal-
ter Chidhakwa said CSC must
shift from targeting the local
market and opt for foreign
markets to survive in the meat
business.
“CSC must be re-configured to
be an export company of beef.
Its job must be to go out there
and look for beef markets
everywhere in the world, and
sell beef everywhere in the
world. This is probably where
it belong given the quality of
our beef.
“The increase in private abat-
toirs during the last decades
has affected the operations of
CSC to a last class meat dealer
due to the cheap prices offered
by abattoirs,” he said.
He said this at a break-
fast meeting on state-owned
enterprises reform and data
collection.
“Government allowed private
sectors to go into abattoirs;
CSC was the core provider of
meat in this country, it had
shops across the country,
and it actually had shops in
Mozambique and the private
sector affected everything.
“With flexible little abattoirs in
play it remains harder for CSC
to compete and get a signifi-
cant market share locally,” he
said.
CSC used to play a leading role
in the processing and market-
ing of Zimbabwe’s beef since
its inception in 1937, but has
failed to compete with local
private abattoirs due to a myr-
iad of challenges, that include
failure to raise adequate work-
ing capital, cattle disease out-
breaks, decline in the com-
mercial herd, huge foreign
debt, high staff turnover and
an aged transport fleet.
The parastatal last exported
beef in 2007 due to serious
outbreaks of foot and mouth
diseases.
But Zimbabwe has been
engaging the European Union
(EU) to resume beef exports
into that region.●
5 news
'CSC must squarely focus on export markets'
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6. BH246

7. HARARE - Innscor Africa
Limited said on Tuesday it
has divested out of the Spar
Zimbabwe corporate stores, a
brand that has been synony-
mous with the retail chain in
Zimbabwe for years.
Spar is a global brand, with
operations in 35 countries in
the world with over 12 000
stores and has operated in
the country since 1966. In
Zimbabwe, Innscor Africa,
which runs the popular fast
foods outlets such as Chicken
Inn, Creamy Inn, Steers and
Nandos, was operating six
Spar corporate stores.
Innscor company secretary
Andrew Lorimer said in a
trading update, the divesture
was effective the beginning of
this year and would allow the
group to focus on core busi-
ness.
“Pursuant to Innscor Africa
Limited’s strategy of focusing
on core business, the board of
directors announces that the
group has, with effect from
1 January, 2016, divested its
interest in six Spar corporate
stores which it operated in
Zimbabwe,” he said.
Lorimer did not mention the
firm would take over Innscor
interests in Spar. He said the
Spar corporate stores had
contributed $52,8 million and
$14,6 million respectively in
terms of revenue and total
assets to the group for its
financial year ended June 30,
2015.
Besides the quick service
restaurants, Innscor is also
involved in logistics and dis-
tribution, light manufacturing
and wholesaling. The group’s
other well-known subsidiar-
ies include Colcom, National
Foods, Capri, Irvines, TV
Sales & Home and Shearwater
Victoria Falls.-New Ziana●
7 news
Innscor divests out of Spar

8. BH248

9. HARARE - ZSE indus-
trial shares closed weaker
after shedding 0.67 (or
0,63 percent) to settle
at 105.19 on the back
of selected heavyweight
losses.
Giant insurer Old Mutual
dropped a significant
$0,0350 to close at
$1,8800, while TSL slid
$0,0119 to $0,1475.
Heavyweight Delta
went down $0,0071 to
trade at $0,5732, while
another giant Econet put
off $0,0030 to close at
$0,1980. And Meikles
closed at $0,0766 after a
$0,0028 loss.
Trading in the positive
was cement producer PPC,
which gained $0,0025
to trade at $0,9600
while Powerspeed added
$0,0010 to $0,0240.
Simbisa rose by a mar-
ginal $0,0005 to close at
$0,1600 and conglomerate
Innscor inched up $0,0003
to settle at $0,2103.
The mining index was
unchanged at 21.74 as
Bindura, Falgold, Hwange
and RioZim all main-
tained previous price lev-
els at $0,0128, $0,0050,
$0,0300 and $0,1040,
respectively
- BH24 Reporter ●
ZSE9
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10. BH2410

11. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Powerspeed 4.34 2.40 TSL -7.46 14.75
Simbisa 0.31 16.00 Meikles -3.52 7.66
PPC 0.26 96.00 Old Mutual -1.82 188.00
Innscor 0.14 21.03 Econet -1.49 19.80
Delta -1.22 57.32
Padenga -0.28 6.98
Index Previous Today Move Change
Industrial 105.86 105.19 -0.67 points -0.63%
Mining 21.74 21.74 +0.00 points +0.00%
11 zse tables
ZSE
Indices
Stock Exchange

12. BH2412

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
20 January 2016
Energy
(Megawatts)
Hwange 479 MW
Kariba 285 MW
Harare 30 MW
Munyati 26 MW
Bulawayo 18 MW
Imports 0 - 100 MW
Total 1079 MW
21 January 2016 - CZI/Herald Business Annual Economic Outlook 2016 Half Day Symposium; Venue: Meikles Hotel, Harare; Time:
08:30 to 12:50hrs
10 February 2016 - Nampak Zimbabwe Annual General Meeting: Venue 68 Birmingham Road, Southerton, Harare: Time 12:00
THE BH24 DIARY

14. JOHANNESBURG - South
Africa's rand retreated on
Wednesday hours before the
scheduled release of inflation
data as low liquidity combined
with renewed growth concerns
to halt the currency's short-
lived rally.
The Johannesburg Securi-
ties Exchange's Top-40 index
opened more than 2 percent
lower, tracking global mar-
kets.
By 0645 GMT the rand had
weakened 0,6 percent to
16,8750 per dollar, surrender-
ing gains of the previous ses-
sion that saw the unit reach
16,5750 on the back of hopes
that China would unleash
more stimulus programmes as
growth there stalled.
Yields on government bonds
rose in early trade, with the
benchmark paper due in 2026
adding 6 basis points to 9,805
percent.
On Tuesday the International
Monetary Fund (IMF) cut its
growth forecast for South
Africa to 0,7 percent from 1,3
percent, while also trimming
global growth forecasts, cit-
ing the slowdown in China as
a major concern.
Consumer inflation data for
December due at 0800 GMT is
expected to show prices rising,
with the higher figure putting
pressure on South Africa's
central bank to raise inter-
est rates when it concludes a
three-day policy meeting next
Thursday.
"The implication of this print
on next week's MPC meeting
remains high. We therefore
expect the majority of today’s
volatility to be centred on the
announcement," said trader at
Rand Merchant Bank Gordon
Kerr in a note.
The South African Reserve
Bank (SARB) raised bench-
mark lending rates twice in
2015, by 25 basis points each,
saying it was concerned about
inflation.
At its last policy meeting in
November, the SARB said it
forecast inflation would breach
its upper target of 6 percent
for two consecutive quarters
in 2016 as an ongoing drought
pushed up food prices.
- Reuters●
regioNAL News14
Rand retreats ahead of CPI release, stocks open lower

15. “The outlook for the oil mar-
ket is pretty negative at the
moment,” Angus Nicholson,
an analyst at IG Ltd. in Mel-
bourne, said by phone. “Iran
is adding to the concerns.
Once the market does get a
gauge on Iran’s potential,
there will probably be less
uncertainty affecting the
market.”
Crude is down 26 percent this
year amid volatility in Chinese
markets and speculation the
removal of restrictions that
capped Iran’s oil sales will
help to prolong a worldwide
oversupply. Energy produc-
ers led declines in Asia as the
MSCI Asia Pacific Index lost
2,7 percent in Hong Kong,
heading for the lowest close
since September 2012.
West Texas Intermediate
for February delivery, which
expires Wednesday, fell as
much as 97 cents to $27,49
a barrel on the New York Mer-
cantile Exchange and was at
$27,55 at 2:29 p.m. Hong
Kong time. Monday’s transac-
tions were booked with Tues-
day’s because of the Martin
Luther King Jr. holiday. The
more-active March future slid
77 cents to $28,80.
Oil Supplies
Brent for March settlement
lost as much as 72 cents, or
2.5 percent, to $28,04 a bar-
rel on the London-based ICE
Futures Europe exchange.
The contract rose 21 cents
to $28,76 Tuesday. The Euro-
pean benchmark crude traded
at a discount of 58 cents to
WTI for March.
U.S. crude stockpiles were
about 100 million barrels
above the five-year seasonal
average at the end of 2015,
according to EIA data. Sup-
plies at Cushing, Oklahoma,
the delivery point for WTI
and the biggest US oil-stor-
age hub, increased for a 10th
week through Jan. 8 to a
record 64 million barrels.
The IEA trimmed 2016 esti-
mates for global oil demand
as China’s economic expan-
sion weakens and raised fore-
casts for supplies outside of
the Organisation of Petroleum
Exporting Countries. While
non-OPEC supply is set to
drop 600 000 barrels a day in
2016, Iran’s comeback could
fill that gap by the middle of
the year. As a result, world
markets may be left with a
surplus of 1.5 million barrels
a day in the first half.
- Bloomberg●
internatioNAL News15
Oil extends drop from 12-year low as US supplies seen rising

16. As the chattering chieftains of the
global economy gather this week
in Davos, Switzerland, they’re fac-
ing the darkest outlook since the
financial crisis tipped the world
into recession seven years ago.
The Chinese slowdown and accom-
panying slide in the yuan are
imperiling already sluggish inter-
national growth, oil is trading at
its lowest level in more than a
decade, stocks have suffered their
worst January ever, and the pros-
pects for corporate earnings are
the most pessimistic in years. The
Federal Reserve is also unnerving
financial markets by raising inter-
est rates.
Politics are no help, with tensions
mounting in the Persian Gulf and
on the Korean peninsula, Europe’s
refugee crisis showing no signs of
abating, and terrorists striking four
continents. Economic frustrations
have driven the rise of populists
in the US and France while sowing
doubts about the longevity of Ger-
man Chancellor Angela Merkel and
Britain’s membership in the Euro-
pean Union.
“We have a coming-together of
events that are confusing, volatile
and dangerous,” said David Ger-
gen, an adviser to four US presi-
dents and now a professor at Har-
vard’s Kennedy School.
Watchtowers Erected
As delegates began to arrive in the
Alpine resort for the World Eco-
nomic Forum’s annual meeting,
they were faced with stark evi-
dence of that volatility and danger:
At the congress center that serves
as the hub for events, heavy con-
crete barriers and new watchtow-
ers with armed guards line the
roads -- an addition to the secu-
rity checkpoints inside the building
that have been in place for several
years.
And the bad news just keeps rolling
in. On Tuesday, China confirmed
its weakest quarter since 2009 and
its slowest annual growth since
1990. The International Monetary
Fund, meanwhile, cut its estimate
for expansion in the world econ-
omy this year to 3,4 percent from
3,6 percent.
Meantime, the International Labor
Organisation predicted that global
unemployment will climb this year
by almost 2,3 million to 199,4
million, led by emerging markets.
PriceWaterhouseCoopers LLC said
only about a third of chief exec-
utive officers it polled were "very
confident" about their companies’
growth prospects.
Nasty Cocktail
“I expect it will get worse before
it gets better,” said Nobel laure-
ate Michael Spence, an adviser to
Pacific Investment Management
Co. who will be in Davos.
China, which now accounts for
about 15 percent of global output
and helped propel the world out
of recession in 2009, lies behind
much of the anxiety. President Xi
Jinping’s efforts to shift his coun-
try’s economy toward consumption
and services rather than invest-
ment and manufacturing have
decreased demand from other
countries, and the yuan has weak-
ened. Those factors, combined
with a botched effort to prop up
stocks, have spooked investors.
“The recent China-induced finan-
cial volatility is the result of a nasty
cocktail of major structural prob-
lems, slowing growth, and inept
policies,” said Nariman Behravesh,
chief economist at researcher IHS
Inc.
16 analysis16 analysis
Davos gets jittery as Trump rises, oil falls and China slows

17. 17 analysis17 analysis
Ripple Effects
There are major ripple effects.
Oil is down about a fifth this year,
also undermined by expectations
of a surge in crude exports from
Iran after the removal of sanc-
tions. Equities have slumped, with
almost $7 trillion knocked off their
value globally since the start of
the year. “We are entering a much,
much more challenging macroe-
conomic environment,” said Johan
Burger, chief executive officer of
South African lender FirstRand Ltd.
“It’s a global issue.”
Also causing some concern is
the Fed’s decision to raise inter-
est rates last month for the first
time in nine years even with tame
inflation. That’s pushed up the
dollar, hurting those emerging
markets that boosted borrowing
in greenbacks when rates were at
rock-bottom.
The economic slowdown and
market routs may pressure pol-
icy makers to stimulate growth.
JPMorgan Chase & Co. economists
last week predicted fresh support
from central banks, represented in
Davos by European Central Bank
President Mario Draghi, Bank of
England Governor Mark Carney
and Bank of Japan Governor Haru-
hiko Kuroda.
More Stimulus
JPMorgan reckons the Federal
Reserve will now next raise interest
rates in June rather than March,
and the ECB will cut its deposit
rate and extend asset purchases in
the summer. The Bank of Canada
may ease monetary policy as soon
as Thursday, JPMorgan says. Still,
there are questions over what cen-
tral banks can achieve after years
of keeping rates near zero and
buying bonds, which some econo-
mists predict will spur politicians to
use fiscal policy more aggressively
than they have.
Running deeper budget deficits will
thus join a long list of concerns for
politicians confronting what Ian
Bremmer, founder of consultancy
Eurasia Group and a Davos regu-
lar, calls “more geopolitical insta-
bility, and therefore risk, than at
any point since 9/11.”
In the Middle East, there are
fresh fears over sectarian vio-
lence as the Syrian civil war rages,
Yemen implodes, and the fault line
between Sunni-ruled Saudi Arabia
and Shiite-majority Iran shakes.
North Korea’s fourth nuclear test
has reignited tensions with Seoul,
while terrorism is again a con-
cern after the November assaults
in Paris and Beirut and those this
month in Jakarta, Istanbul and
Burkina Faso.
Have-Lots
In developed countries, there is a
sense of frustration as once-robust
middle classes fall ever further
behind the have-lots. The char-
ity Oxfam said on Monday that
the richest 1 percent of people
on Earth now control more wealth
than the rest of the world’s popu-
lation combined.
The growing inequality, together
with migration from develop-
ing countries, is upending polit-
ical structures in the developed
world. In Germany, Merkel’s pop-
ularity is at a four-year low after
the arrival of more than a million
asylum-seekers in the past year.
Marine Le Pen, head of the anti-im-
migrant National Front, tops many
French opinion polls ahead of the
2017 presidential election, while
surveys in Britain suggest grow-
ing support for the country’s with-
drawal from the EU.
And in the U.S., property magnate
Donald Trump has led the field of
Republican presidential aspirants
for months, attracting support for
positions such as a ban on Muslims
entering the country. That could
destabilize politics in the world’s
largest economy, which large com-
panies and investors have relied
on to drive growth as Europe
stagnates and emerging markets
underperform.
With so many concerns weigh-
ing on the delegates, veteran
attendee Ray Dalio, the billionaire
founder of hedge fund Bridgewater
Associates, said he expects vigor-
ous discussion at Davos. But that,
he says, is the whole point -- and
far better than the attendees being
left speechless.
“I’ve been to so many Davoses,”
Dalio said, “and when it’s quiet,
that’s when you should panic.”
- Bloomberg ●