A digital copy of the BH24 (29 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 - Radar Holdings will
next month seek shareholder
approval to delist the firm
from the Zimbabwe Stock
Exchange.
The struggling firm says it
feels compelled to delist its
shares from the local bourse
in view of prolonged under-
performance, which have - in
turn - constrained its ability
to remain in compliance with
the listing requirements of
the exchange.
"The reason for the proposed
delisting is that the Group
continues to under-per-
form....Furthermore, com-
pounding the group’s under-
performance are the costs
associated with remaining
listed on the Zimbabwe Stock
Exchange that are exuberant,”
said Radar in an abridged
information memorandum to
shareholders and notice of an
extraordinary general meet-
ing today.
News Update as @ 1530 hours, Friday 29 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Radar Holdings to delist from ZSE

2. 2 news
02 03
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The ZSE costs for the group
include (among others)
annual listing fees (amount-
ing to +/-$4 271); auditors’
costs associated with main-
taining a ZSE listing, that is,
interim and final accounts
(amounting to +/-$46 000);
costs associated with publi-
cations of results and notices
and any other corporate
actions (amounting to +/-$18
000), and transfer secretar-
ies maintenance of the com-
pany share register (amount-
ing to +/-$6 000).
"Secondly, trading in the
shares of the company has
been limited and the absence
of sufficient buyers and sell-
ers of the shares has meant
that the shares are relatively
illiquid. During the 2015 cal-
endar year Radar traded a
mere 79 483 shares valued
at $2 302, further reiterating
the illiquidity of the shares.
"Finally, the size of the com-
pany and the illiquidity of
shares do not allow it to
fully take advantage of being
listed on the ZSE. For these
reasons, the board believes
that it is in the best inter-
ests of the company and the
shareholders as a whole if
the approval of the delisting
occurs as soon as possible,"
Radar said.
The proposed delisting will
require - per ZSE require-
ments - approval of at least
75 percent of the company's
minority shareholders, hence
the extraordinary general
meeting having penciled for
the 25th of next month.
Radar said after the delist-
ing, the firm will still remain
a public company but will not
be a listed company, and that
the transaction will have no
impact on its shareholding
structure.
For the full year to June 30,
2015 the group reported a 17
percent decline in revenue to
$6 million. In that period, the
group incurred an after tax
loss of $288 000, similar to
the prior comparable period.
The holding company's opera-
tions currently include: Radar
Properties (Pvt) Ltd, Radar
Investments (Pvt) Ltd and
MacDonald Bricks.●

3. BH243

4. By Funny Hudzerema
HARARE - Zimbabwe's plat-
inum sector requires $3,8
billion in investment capital
over the next five years to
optimise output.
Presenting the State of the
Mining Industry Report 2015
University of Zimbabwe sen-
ior lecturer in the depart-
ment of economics Dr Albert
Makochekanwa said the plat-
inum sector requires more
investments since the sec-
tor’s production is declining.
“The platinum group metals
(PGMs) industry said they
require $3,8 billion to 2020 to
optimise output while exist-
ing players require around
$450 million for 2016.
‘We asked them if they get
the additional funding what
will be the likely impact to
the platinum sector they said
using the 12 500 kg output
of 2014 if we get the addi-
tional funding by 2020 we are
targeting 24 000 kg by 2020
which is 100 percent growth,”
he said.
Currently earnings from the
platinum sector have fallen
in 2015, compared to 2014,
thus earnings from platinum,
for instance, declined by 23
percent in 2015, compared
to 2014 in 2013 the sector
obtained $554 million, 2014
$495,4 million and in 2015
$381 million.
He added that the investment
will be made in value addition
and beneficiation since most
respondents alluded that the
sector is not benefiting from
selling platinum in its raw
form.
In terms of the key find-
ings from the survey plati-
num price declined by around
24 percent from $1 385 per
ounce in 2014 to $1 053 per
ounce last year.
The decline of platinum prices
is being caused by declining
in price on the international
market.
The survey findings revealed
that labour, royalties, sup-
plies and electricity costs
contributed more than 79
percent of production cost
per ounce last year.●
4 news
Zim platinum sector needs $3,8bn in investment

5. BH24
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6. BH24 Reporter
HARARE – The Cotton Com-
pany of Zimbabwe (Cottco),
reported a $8,1 million loss
before taxation for the half-
year to September 30, a
reduction from a loss of $9,2
million last year.
Revenue for the period under
review amounted to $2,3 mil-
lion versus $17,8 million in
the prior comparable period.
Management attributed the
dip in revenue to "the delay
in the start of the buying
season that also affected the
start of the ginning and sales
off take in the industry."
The company expects full year
sales figures to be lower than
last year due to the decline
in volumes by 33 percent and
lower lint prices.
"The international lint prices
remain subdued and the
company concluded con-
tracts at US57c/lb. Producer
prices averaged US32c," said
the company in a statement
accompanying the results.
Notwithstanding the decline
in cotton intake, Cottco's reg-
istered a reduction in losses
by 19 percent from contin-
uing operations due to tight
cost control over the same
period.
The group's borrowings at
$54 million is 7 percent lower
than prior comparable period.
(Included in the total bor-
rowings is a long-term loan
amounting to $3 million).
Meanwhile Cottco - sub-Sa-
haran Africa’s largest ginner
and marketer - said the Gov-
ernment has "started the pro-
cess of rescuing Cottco from
its crippling debt"
Government is taking over
all of company's bank loans
through the Zimbabwe
Asset Management Company
(ZAMCO) in a proposed debt/
equity swap deal.●
6 news
Cottco narrows losses
BH24 Reporter
HARARE –- TSL Limited has
recorded a marginal revenue increase
of $48,6 million for the year ended
October 31, 2015 compared to $48,2
million last year.
In a statement accompanying the
group’s financial results TSL chairman
Mr Anthony Mandiwanza said diver-
sity of operations had mitigated the
decline in revenues.
"The steady performance by the
group in 2015 is, in large measure,
attributable to the diversity of its
operations.
“While the agriculture related busi-
nesses were adversely impacted by
the weather patterns, the logistics
and real estate clusters fared well,"
he said.
Full year profit before tax was how-
ever lower at $6,1 million versus $6,8
million last year
Operating profit (before fair value
adjustments) was down 8 percent on
last year to $6,8 million. Strong per-
formance registered in our logistics
and real estate clusters and new ini-
tiatives in the agro trading businesses
mitigated the decline in revenues and
operating profit in the tobacco related
businesses
Profit before tax, associates and joint
venture was unchanged on prior year.
Profit before tax at $6,1 million dollars
was down 11 percent on 2014.
Whereas in the prior year, share of
associates and joint venture prof-
its contributed 11 percent to group
profit before tax, contributions in the
current year were nil, as these com-
panies were accounted for as invest-
ments
In terms of future prospects the
group the group is targeting to put
efforts to rationalise operations in the
packaging and auctioning business in
response to changing operating envi-
ronment.
The group is also targeting to open
international markets and access
world class practices and increase
efforts to give the logistics business
a stronger regional footprint through
arrangements with international play-
ers.●
TSL revenues almost flat

7. BH247

8. HARARE – Zimbabwe has
chosen to prioritise the
implementation of 10 of the
17 Sustainable Development
Goals as the Government
seeks to uplift the lives of its
citizens, an official said on
Thursday.
The United Nations General
Assembly last year adopted
the 17 SDGs which will run
up to 2030 to replace the Mil-
lennium Development Goals
(MDGs) which ran from 2000
to 2015.
Macro-Economic Planning and
Investment Promotion per-
manent secretary, Dr Desire
Sibanda told stakeholders the
prioritisation was in part due
to budgetary constraints.
“Prioritisation does not mean
we are not going to imple-
ment all of them or that the
others are less important,” he
said.
He said the prioritised SDGs
included Number 8 which
deals with decent work and
economic growth, Number
7 focusing on provision of
affordable and clean energy,
Number 2 on ending hunger,
Number 9 on industry, inno-
vation and infrastructure and
Number 6 on sustainable
management of water.
The others include Number 13
which deals with combating
climate change, Number 17
on global partnerships, Num-
ber 3 on promoting healthy
lives and well-being for all,
Number 4 on quality edu-
cation and Number 5 which
deals with gender equality.
Dr Sibanda said the Govern-
ment was working on mobilis-
ing domestic finance to fund
implementation of the SDGs.
“But that does not mean we
will also not look for support
from donors,” he said.
He said the Government
was working on a communi-
cation strategy that would
ensure that the whole country
adopted and worked towards
adoption of the SGDs and
ensuring their achievement.
The United Nations Develop-
ment Programme (UNDP) had
pledged to assist the govern-
ment with the funding for dis-
seminating information to all
the10 provinces, he said.
“The MDGs were highly cen-
tralised in the cities and we
want to ensure that there
is ownership of the program
across the country,” he said.
UNDP senior economist, who
is also chairman of the UN
SDG Taskforce Amarakoon
Bandara said it was critical
for the Government to mobi-
lise domestic finances as the
developed world was battling
with its own issues.
“The idea behind domestic
financing is to strengthen
domestic capacities to mobi-
lise financing and putting
a stop to illicit financials
flows,” he said, adding devel-
oped countries were battling
with economic woes that had
also seen them shift priorities
in the past 15 years.
“Official development assis-
tance will continue to play its
role but most of the fund-
ing will come from domestic
resources.”
Mr Bandara lauded Zimbabwe
for coming up with a posi-
tion paper on SDGs, some-
thing that a few countries in
the world had done.- New
Ziana●
8 news
Zim to prioritize 10 SDGs
Dr Desire Sibanda

9. BH249

10. HARARE -The mainstream
industrial index closed the
week on a high note adding
0.39 to settle at 103.04
on the back of gains in
selected heavyweight.
Conglomerate Innscor
led the movers with a
$0,0070 gain to close at
$0,2070, while giant tel-
ecoms Econet Wireless
bumped $0,0058 to trade
at $0,2297 while giant
retailer OK Zim gained
$0,0024 to $0,0400.
Trading in the negative
territory was beverages
producer Delta, which
eased $0,0011 to close
at $0,5289, and Simb-
isa which went down by a
marginal $0,0005 to trade
at $0,1585.
Giant insurer Old Mutual
also slid to $1,6999 after
a $0,0001 loss.
Meanwhile the ZSE has
announced that CFI Hold-
ings has been suspended
with effect from today.
Week-on-week, the indus-
trial index shed 0.01 (or
0,01 percent). The min-
ing index was flat at 19.53
points as all the mining
counters maintained pre-
vious price levels.
But on a week-on-week
basis, the mining index
retreated 0.24 (or 1,23
percent)
- BH24 Reporter ●
ZSE10
CFI suspended, equities gain
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11. BH2411

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
OK Zim 6.38 4.00 Simbisa -0.31 15.85
Innscor 3.50 20.70 Delta -0.20 52.89
Econet 2.59 22.97 Old Mutual -0.01 169.99
Index Previous Today Move Change
Industrial 102.65 103.04 +0.39 points +0.38%
Mining 19.53 19.53 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
29 January 2016
Energy
(Megawatts)
Hwange 339 MW
Kariba 285 MW
Harare 30 MW
Munyati 25 MW
Bulawayo 24 MW
Imports 0 - 300 MW
Total 1268 MW
—28 January 2016 – Chamber of Mines Zimbabwe State of the
Mining Industry Report 2015 launch; Venue: Rainbow Towers; Time: 0730hrs -1300hrs
—10 February 2016 - Nampak Zimbabwe Annual General Meeting: Venue 68 Birmingham Road, Southerton, Harare: Time 12:00
—18 February 2016 - 70th Annual General Meeting of the members of CAFCA ; Place: Boardroom at the company’s registered office
at 54 Lytton Road, Workington, Harare; Time: 12:00 hours
—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...
THE BH24 DIARY

14. CAPE TOWN - Domestic bond
yields had compressed on
Friday morning ahead of the
release of local trade data.
At 8.30am, the benchmark
R186 was bid at 9,350 per-
cent and offered at 9,650
percent from Thursday’s close
of 9,455 percent.
The middle-dated R207 was
bid at 8,845 percent and
offered at 8,845 percent from
a close of 8,970 percent pre-
viously.
The trade balance is projected
to have recorded another sur-
plus in December of about
R5bn after a R1,8bn surplus
in November. There are nor-
mally fewer imports during
December as most companies
are closed for the holidays
and there is also usually an
increase in exports.
The South African Revenue
Service will release the data
at 2pm.
Barclays Research analysts
said bonds could strengthen
further if there was a surplus
in the trade balance as the
reading "could reduce con-
cern over SA’s external fund-
ing vulnerabilities, especially
heading to February’s budget
meeting" - BDLive ●
regioNAL News14
S.A bonds firmer ahead of local trade data
Rand rallies more
than 1 pct after
c.bank hikes rates
JOHANNESBURG - The
rand raced to its firmest
in three weeks on Friday
following an aggressive
interest rate hike by the
South African Reserve
Bank (SARB) as it looked
to curb rising inflation.
At 0625 GMT, the rand
had strengthened 1.05
percent to 16.0500 per
dollar, its firmest since
Jan. 8, extending a rally
from the previous ses-
sion following the central
bank's decision on Thurs-
day to push benchmark
lending rates up by 50
basis points.
The unit also gained
against the British pound
and the euro, by 0.4
percent and 0.9 percent
respectively.- Reuters●

15. TOKYO—Japan’s central bank
stunned the markets Friday by
setting the country’s first nega-
tive interest rates, in a desper-
ate attempt to keep the econ-
omy from sliding back into the
stagnation that has dogged it
for much of the last two dec-
ades.
The unexpected move shows
the Bank of Japan's determina-
tion to fight global headwinds
that threaten to tip the country
back into deflation, a damaging
cycle of price falls and weaken-
ing economy.
Yet it also shows how few pol-
icy options are left for the BOJ.
The central bank is already buy-
ing ¥80 trillion ($674 billion) in
assets a year, putting nearly a
third of Japan’s massive bond
market in the hands of the cen-
tral bank and sending Japan’s
debt-to-gross domestic-product
ratio to 230 percent, more than
any other major economy.
After three years of BOJ asset
purchases, inflation expecta-
tions in Japan are sagging, and
recent volatility in global mar-
kets has threatened to undo
some of what the BOJ had
achieved with its extraordi-
nary easing: a weaker yen and
higher stock prices.
The yen fell as much as 2,1 per-
cent following the announce-
ment, hitting 121,33 to the
dollar. The Nikkei Stock Aver-
age seesawed before closing up
2,8 percent. Some government
bonds saw rates turn more
deeply negative. The two- and
five-year yield fell to their most
negative yet, both hitting as
low as 0,085 percent.
The BOJ’s move could also add
further pressure on the U.S
Federal Reserve to hold back
on raising interest rates, less
than a month after it started
tightening again, as economies
throughout the globe show
signs of distress and weakness.
The central bank is now the
second of the world’s major
central banks to set negative
interest rates, joining the Euro-
pean Central Bank, which first
did so in 2014. The central
banks of Sweden, Denmark and
Switzerland also have negative
interest-rate policies.
The introduction of negative
rates once again signaled BOJ
Gov. Haruhiko Kuroda’s willing-
ness to pursue a “shock-and-
awe” strategy. He denied in
recent days that the bank was
considering negative rates.
Mr. Kuroda has maintained
that three years of aggressive
quantitative easing have had
“intended effects,” but they
have failed to produce the tar-
geted 2 percent inflation. Mr.
Kuroda has blamed falling oil
prices for the low inflation and
pointed to a price index that
excludes energy prices as evi-
dence that underlying inflation
is strong.
Many economists have begun
speculating that the asset-buy-
ing program may have reached
the limits of its capacity and
effectiveness.
Shuichi Ohsaki, a rates strat-
egist at Merrill Lynch Japan,
said the move represented a
“change of direction” for the
BOJ, and reflected a decision
to focus on rates instead of the
quantity of assets.
Mr. Ohsaki said the BOJ likely
wanted to take a page out of the
playbook of the European Cen-
tral Bank, but the bigger gap
between lending and deposits
rates at Japanese banks might
limit the measure’s effective-
ness in Japan.
The central bank said it cut the
deposit rate it pays on cash
parked at the BOJ by commer-
cial banks in excess of legally
required reserves, to minus 0,1
percent, from the previous 0,1
percent.
The goal was to push down bor-
rowing costs across a broad
time spectrum to stimulate
inflation, the bank said in a
statement following its two-day
policy meeting. It also said it
would cut the interest rate fur-
ther into negative territory “if
judged as necessary.” - WSJ●
internatioNAL News15
Bank of Japan introduces negative interest rates

16. It’s no blessing for com-
panies that bet on high
prices.
By Asjylyn Loder & Mat-
thew Philips
“For anyone consuming oil,
lower oil prices are a tax
cut,” said US Secretary of
the Treasury Jacob Lew at
the World Economic Forum
in Davos on Jan. 21. “It puts
more money in people’s pock-
ets. It actually has a positive
effect.” Lew was trying to be
reassuring, with good reason.
The day before, crude prices
had dropped to a 12-year
low of $26,55 a barrel, down
from $107 as recently as mid-
2014. The ripple effects in the
stock market briefly wiped as
much as 565 points off the
Dow Jones industrial average.
(Oil rallied back to $32 as of
Jan. 27.)
Lew’s contention that dra-
matically cheaper oil is some-
thing to cheer about makes
a lot of intuitive sense.
China, the world’s largest oil
importer, has capitalized on
lower prices by stockpiling
reserves; for all the country’s
problems as its growth slows,
energy costs aren’t among
them. In the US, consumer
confidence is on the rise.
The benefits of the price cut
“handily outweigh the neg-
atives,” says Jacob Oubina,
senior US economist for RBC
Capital Markets. “It’s just
a matter of when consum-
ers and businesses adjust to
this.”
The meme that cheap oil acts
like a tax cut goes back dec-
ades. As early as 1983, law-
makers asked the Congres-
sional Budget Office to gin
up estimates of the benefi-
cial impact of falling prices.
Revisiting the topic a few
years later the CBO offered
an instructive caveat: “It may
be best not to refer to a ‘tax
cut equivalent’ of an oil price
change.”
Among the reasons the anal-
ogy didn’t work: The drop in
revenue for domestic energy
companies can trigger eco-
nomic contraction not seen
with a tax cut. And, surpris-
ingly, the total economic ben-
efit actually shrinks the fur-
ther prices fall.
Increased US energy inde-
pendence has made the math
even trickier. With domestic
output near a 43-year high
and fuel imports down to 24
percent of consumption, a
glut of crude isn’t a problem
just for OPEC and Texas any-
more. Third-quarter revenue
for U.S. independents, the
little companies that drove
the shale boom, was $26 bil-
lion less than the year before,
according to data compiled
by Bloomberg. Last year’s
spending is on track to be
more than $60 billion lower
than 2014, and oil at $30 a
barrel has prompted a fresh
round of cutting.
Goldman Sachs, which hailed
lower prices as a $125 billion
tax cut in December 2014,
put it this way in a Novem-
ber report retreating from
its bullish prediction: “Shale
states shrank the stimulus”
that usually comes when con-
sumers pay less at the pump.
Instead of tax cut, some ana-
lysts are turning to another
simile: Falling oil prices could
be like falling real estate val-
ues. “This was a Wall Street
bet, and the bet was that the
price of oil, a theoretically
finite commodity, wouldn’t go
below a certain level,” says
Martin Bienenstock, co-head
of bankruptcy and restruc-
turing at law firm Proskauer
Rose. “The bet turned out
wrong. Just like the bet that
housing prices would never
fall.”
During the boom years, some
shale producers spent $2
drilling for every $1 earned
selling oil and gas, according
to data compiled by Bloomb-
erg, and they plugged the
shortfall with debt.
Wall Street extended low-in-
terest credit lines to junk-
rated borrowers, which put up
their oil and gas properties as
collateral. Producers tapped
16 analysis16 analysis
What's not to like about cheap oil? Well....

17. 17 analysis17 analysis
their bank lines to buy prop-
erties and drill wells. When
companies needed to pay
off their loans, their bankers
helped them sell equity and
debt. Investors, hungry for
higher returns after years of
low interest rates, snapped it
all up.
From 2004 through 2014,
the high-yield bond mar-
ket doubled in size while the
amount of bond debt owed
by junk-rated energy produc-
ers expanded elevenfold, to
$112,5 billion, according to
Barclays. Bond buyers were so
eager that provisions meant
to protect them eroded.
It worked beautifully until
oil prices collapsed. Revenue
has plummeted, leaving pro-
ducers short of cash to pay
their debts. Banks have cut
drillers’ credit lines as the
value of their collateral has
fallen. Oil and gas bonds have
pushed debt market distress
to levels not seen since the
2009 recession, according to
Standard & Poor’s, and bond
buyers are selling their hold-
ings at steep discounts to
salvage some part of their
investment.
Those who got out could be
the lucky ones. Last year 42
US oil producers went broke
owing $17 billion, accord-
ing to the law firm Haynes &
Boone, a trend that’s likely to
accelerate at today’s prices.
Many holders of those compa-
nies’ bonds will get nothing.
Banks aren’t immune. Wells
Fargo, Bank of America, Cit-
igroup, and JPMorgan Chase
said this month that they’ve
set aside at least $2,5 billion
to cover potential losses on
souring energy loans. If low
prices persist, the price tag
will get bigger.
The worry is that the pain
spreads from finance to the
broader economy. “Consum-
ers may be doing great until
producers can’t service their
debt,” says Michael Feroli,
chief US economist at JPMor-
gan. “And that creates prob-
lems for everyone, producers
and consumers alike.
” He points out that the com-
modity bust of the 1980s
contributed to the inability of
emerging-market countries to
pay their debts, with world-
wide consequences.
Oil-rich countries that spent
the boom years collecting
bonds, equities, department
stores, and soccer teams are
in selling mode. As they dump
assets, exacerbating the
market rout, “it feels pretty
messy,” wrote David Zervos,
chief market strategist for
Jefferies Group, in a Jan. 18
report.
Saudi Arabia, the world’s
largest oil producer, has seen
its foreign exchange reserves
fall by more than $100 billion
since mid-2015, according to
the Saudi Arabian Monetary
Agency, a bigger drop than
during the financial crisis.
“But outside the energy mar-
ket, this is nothing like 2008,”
Zervos added. “This crash
is a huge transfer of wealth
away from the levered global
energy asset holder to the
unlevered average consumer.”
Similarly, RBC’s Oubina calls
comparisons to the subprime
bust “insanity.” The financial
system, he says, “is ironclad
compared to 2007.”
There’s one more thing low oil
prices might be like: a flash-
ing red warning light. China’s
downshift to annual growth
of 6,8 percent, from 10 per-
cent five years ago, is a big
factor pulling oil prices down.
It points to an increased risk
of deflation and slow growth
throughout the global econ-
omy. In other words, per-
sistently low oil prices could
really be just a symptom,
says JPMorgan’s Feroli.
“This may be the result of a
bad economy,” he says. “Not
a cure for a bad economy.”
The bottom line: While cheap
oil has benefits for consum-
ers, defaults by producers
and pain in oil-rich countries
could stall the world economy
- Bloomberg●