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By Tawanda Musarurwa
HARARE – TelOne contin-
ues to make inroads in the
internet services sector, but
Liquid Telecom Zimba...
leader.
The gain/drop in market
share for the two companies,
respectively was due to their
performances revenue-wise.
TelO...
BH243
BH244
By Munesu Nyakudya
HARARE -Total Zimbabwe
has said the price of its fuel
will remain ‘one or two cents
higher than other f...
BH246
BH247
By Funny Hudzerema
HARARE– All is set for this
year’s tobacco marketing
season which begins at the
end of this month
Sales...
BH249
BH2410
HARARE – Farmers in Zim-
babwe should adopt agro-
forestry for its numerous
advantages in light of the
ravages of climate ...
BH2412
BH2413
HARARE - The equities mar-
ket slipped into negative
territory following today’s
trades after the mainstream
industrial in...
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Econet 3.97 24.05 Dairbord -11.76 6.00
Old Mutual 0.83 208.07...
16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
...
JOHANNESBURG - South
Africa's rand steadied
against the dollar in early
trade today but traders said
it remained vulnerabl...
Oil traded near $41 as OPEC
said prices will rebound to a
“moderate” level even if Iran
doesn’t join other producers
in fr...
By George Rautenbach
RECENTLY Cape Town hosted
the first Bloomberg Africa
Business and Economic
Summit. The presentations
...
20 analysis20 analysis
need no introduction in the
business world, as they are
some of the wealthiest in
France. From that...
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TelOne closing in on Liquid Telecom market dominance

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TelOne closing in on Liquid Telecom market dominance

  1. 1. By Tawanda Musarurwa HARARE – TelOne contin- ues to make inroads in the internet services sector, but Liquid Telecom Zimbabwe – although sliding - contin- ues to dominate with 41,8 percent of the local Internet Access Providers (IAPs) mar- ket share. An analysis of the fourth quarter of last year shows that Liquid Telecom lost 11,6 percent of market share to 41,8 percent from 53,4 per- cent in the prior quarter, the latest POTRAZ report shows. At the same time, TelOne`s market share jumped by 15 percent to 32,7 percent to close in on the market News Update as @ 1530 hours, Tuesday 22 March 2016 Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw TelOne closing in on Liquid Telecom’s market dominance
  2. 2. leader. The gain/drop in market share for the two companies, respectively was due to their performances revenue-wise. TelOne`s revenues bumped 114,3 percent to $14,1 million in the period under review from $6,6 million in the third quarter. The State-owned TelOne has been gaining a lot of traction in the local internet services industry, largely due to the introduction of its Fibre to the Home (FTTH) and WiFi Hotspots services in April last year. For the year ended August 31, 2015 the pararstatal posted a 187,1 percent increase in profit before tax from 2014’s $6,2 million to $17,7 million. Revenue for the year was also up 7 percent to $162 million from $152 million in the previous year. Observers credit TelOne’s positive financial perfor- mance to an enhanced focus on internet services, mainly the FTTH and Metro Wifi ser- vice, but also to a strength- ening of its traditional ADSL suite. On the other hand, Liquid Telecom (which part of the Econet Wireless Group)’s revenue declined 9,3 percent from $20 million recorded in the previous quarter to $18,2 million. Last year, the firm secured $150 million for the expan- sion of its fibre network throughout Africa, part of which was aimed at its exist- ing FTTH rollout programme. Liquid Telecom Zim is the largest data, voice and IP provider in Zimbabwe, sup- plying wholesale fibre optic, satellite and international carrier services to telecom- munications operators in the country, and also owns inter- net service provider, Zimba- bwe Online (ZOL). In terms of Zimbabwe’s other IAPs, Powertel comes in third with a 15, 6 percent market share, followed by Dande- mutande with 4,4 percent and Africom with 3,8 per- cent. Telco, Aquiva and Aptics have market share of 1,5 percent, 0,1 percent and 0,05 per- cent, respectively.● 2 news
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  5. 5. By Munesu Nyakudya HARARE -Total Zimbabwe has said the price of its fuel will remain ‘one or two cents higher than other fuel prices’ due to the “better” quality product it offers. Total Zim health safety secu- rity environment and quality director Mr Thomson Midzi told BH24 that its fuel tends to be more expensive due the certification process that it has to undergo. “On quality issues, our fuel is leading in terms of qual- ity, from the refinery; we have the refinery certificate which tells us where this fuel came from. It also goes to Beira for testing and it gets another certificate and it comes to us,” Mr Midzi said. “What happens with ULP, you are supposed to put 5 per- cent ethanol and 95 percent ULP. But sometimes people won’t do that, they can put 20 percent ethanol and 80 percent ULP and they are able to sell at 6 to 7 cents lower.” “In real sense they are selling more expensive oil, because if we give you 5 lit- ers, it is not 5 liters in actual sense and it won’t take you anywhere,” he said. He said Total will remain ‘fuel price setters’ in the economy “Because we are the only remaining global company in Zimbabwe, people use our pricing. Other people become price leaders and the rest will be followers,” said Mr Midzi. “It’s not like we want to be very expensive but if we reduce our prices to 98 cents you will see that the follow- ing day our competitors will be at 96 or 97cents. It is a natural reaction,” he said.● 5 news 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!! Total Zim defend higher fuel prices
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  8. 8. By Funny Hudzerema HARARE– All is set for this year’s tobacco marketing season which begins at the end of this month Sales will start at the auction sales on March 30 followed by contract sales a day later. A tour of both auction and contract floors including Boka Tobacco Sales Floor, Tobacco Sales Floors, Premier Tobacco Auction Floors and Zimbabwe Leaf Tobacco Com- pany by the Tobacco Industry and Marketing Board officials revealed that preparations are now complete Officials from all the floors assured the TIMB officials that banks have adequate cash to pay growers. They also promised that security will be tighter this year with the number of people allowed on the floor being limited to one person per crop. “Previously we had a situa- tion where the whole family would accompany bales when they are delivered to the floors and the whole family would be allowed onto the floors to witness sales but this year we are limiting the number to just one person,” said one official. Speaking after the tour TIMB board chairperson Mrs Monica Chinamasa said this year farmers are not allowed to collect their money at the floors but in the banks so that they can build rela- tionship between banks and farmers to work together. “We want to create a finan- cial inclusion through acquir- ing money from the farmers to the banks since banks are not contributing enough towards economic develop- ment. “Currently 70 percent of the money produced in the country by different peo- ple is circulating among our people, while 30 percent is in the banks so we need to support our banks such that they will support us farmers with loans,” she said. Mrs Chinamasa said that the issue of paying farmers through banks will reduce issues such as side market- ing and the time that farmers spend at the floors. She added that TIMB has negotiated with local banks to reduce their requirements for opening bank account, which will also see the banks charging negligible or no charges at all. This year a total of 75 000 tobacco farmers has regis- tered to grow tobacco this year as compared to 85 000 registered during the same period last year. At least 18 class A buyers and 18 contractors were licenced by the TIMB last year.● 8 news All set for tobacco marketing season · Farms · Mines · Businesses · More! GET A QUOTE We won’t let you down! Delivered in 72hrs, countrywide! NEED FUEL? Blend, Diesel, Paraffin Tel: 04 852517 / 870580 admin@ramafrica.com
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  11. 11. HARARE – Farmers in Zim- babwe should adopt agro- forestry for its numerous advantages in light of the ravages of climate change, an expert said on Friday. Agro-forestry is a land use management system in which trees or shrubs are grown around or among crops or pastureland. It combines shrubs and trees in agri- cultural and forestry tech- nologies to create more diverse, productive, profita- ble, healthy, and sustainable land-use systems. Forestry Commission of Zimbabwe (FCZ) spokesper- son Stephen Zingwena said agro-forestry was worth adopting because of several advantages. “Advantages include mois- ture conservation from tree canopies, exchange of nutri- ents from roots of nitrogen fixing plants and biomass. “Also reduced evapotran- spiration on agricultural crops because crops are not exposed to intense direct sunlight, increased produc- tivity of land due to multiple products and services, hence achieving greater economic benefits and household food security,” he said. Mr Zingwena added that only nitrogen fixing trees were suitable for the practice and farmers should be cautious when choosing the right trees. “Not all trees are suitable for agroforestry but only nitrogen fixing plants like Faiderbia albida, a wide variety of other Acacia trees, Leucaena spp., and pigeon pea, among others,” he said. He said the Forestry Com- mission was in the process of breeding drought resistant species which are likely to face extinction. “ Our Forestry researchers are currently working on six indigenous tree species on propagation methods (with a view to domesticating them), sixteen more on provenance trials, while three are being bred for multiplication as they are threatened with extinction,” he said. Those that are being tar- geted for domestication are fruit trees, namely, Mupfura, Mutohwe, Munyii, Muzhanje, Mutunduru and Muhacha. He said the commission was also carrying out a program of cross breeding Eucalyp- tus trees to come up with high breeds that are drought tolerant, which would benefit tobacco farmers. “There is also a program for breeding pines to a shorter rotation as well as drought tolerance,” he said. He said the commission had introduced some of the pro- grams in high density sub- urbs and around the country as part of food security.- New Ziana● 11 news Agroforestry answer to climate change
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  14. 14. HARARE - The equities mar- ket slipped into negative territory following today’s trades after the mainstream industrial index retreated 0.04 to close at 99.89 on a couple of heavyweight losses. Cigarette producer BAT shed $0,0500 to trade at $10,7000, while Dairibord slipped $0,0080 to close at $0,0600 and beverages giant Delta retreated $0,0052 to $0,5598. Padenga inched down $0,0001 to settle at $0,0605. On the upside giant insurer Old Mutual increased by $0,0173 to trade at $2,0807 and telecoms giant Econet added $0,0092 to close at $0,2405. The mining index was unchanged at 19.53 as Bind- ura, Falgold, Hwange and RioZim all maintained previ- ous price levels at $0,0100, $0,0050, $0,0300 and $0,1040 respectively.` - BH24 Reporter ● ZSE14 Equities slide
  15. 15. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc Econet 3.97 24.05 Dairbord -11.76 6.00 Old Mutual 0.83 208.07 Delta -0.92 55.98 BAT -0.46 1,070.00 Padenga -0.16 6.05 Index Previous Today Move Change Industrial 99.93 99.89 -0.04 points -0.04% Mining 19.53 19.53 +0.00 points +0.00% 15 zse tables ZSE Indices Stock Exchange Previous today
  16. 16. 16 DIARY OF EVENTS The black arrow indicate level of load shedding across the country. POWER GENERATION STATS Gen Station 21 March 2016 Energy (Megawatts) Hwange 420 MW Kariba 475 MW Harare 30 MW Munyati 0 MW Bulawayo 20 MW Imports 0 - 300 MW Total 1120 MW • Thursday 24 March 2016 - Annual General Meeting of Willdale Limited; Place: Boardroom, Willdale Administration Block, 19.5km peg Lomagundi Road, Mount Hampden; Time: 1100 hours... • Analyst briefing - Old Mutual Zimbabwe, Steward Room, Meikles Hotel, March 30, 1430hrs THE BH24 DIARY
  17. 17. JOHANNESBURG - South Africa's rand steadied against the dollar in early trade today but traders said it remained vulnerable to a political crisis and fears of a sovereign credit ratings downgrade. At 0700 GMT, the rand traded at 15,2025 per dollar, not far off its Monday's New York close of 15,2150. "The rand will still remain fragile as the political devel- opments continue to unfold. Local markets have another short week ahead and we could expect liquidity to remain thin," Nedbank ana- lysts said in a note. The rand has come under pressure following allega- tions that a family close to President Jacob Zuma influenced the firing of the finance minister in Decem- ber, but South Africa's ruling party said on Sunday that it had full confidence in Zuma. Investors, however, fear further political uncertainty could hasten a credit ratings downgrade, potentially into "junk" territory, sharply rais- ing South Africa's borrowing costs. On the stock market, the Top-40 index was down 0,47 percent, while the broader all-share fell 0,49 percent in early trade. In fixed income, the yield for the benchmark instrument due in 2026 was down 2 basis points to 9,265 per- cent. - Reuters● regioNAL News17 Rand steady, stocks open lower
  18. 18. Oil traded near $41 as OPEC said prices will rebound to a “moderate” level even if Iran doesn’t join other producers in freezing output. May futures in New York were little changed after ear- lier climbing as much as 0,7 percent. The April contract expired Monday after gaining 1,2 percent. The drop in out- put outside of the Organisa- tion of Petroleum Exporting Countries and a decline in US drilling shows OPEC’s strat- egy of letting the market rebalance itself is working, Secretary General Abdalla El-Badri said. American crude stockpiles are forecast to rise, keeping supplies at the most since 1930. “The market is potentially moving closer to a more balanced situation,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “US production is heading in the right direc- tion. We still have very large inventories, a significant and continuing supply overhang and a period of possible sea- sonal weakness, so there’s scope for volatility.” Oil slumped to a 12-year low this year before rising on speculation that stronger demand and falling US output will ease a global sur- plus. While all OPEC mem- bers have been invited to the freeze talks in Doha next month, not all will attend, El-Badri said in Vienna on Monday, predicting about 15 or 16 nations will participate. West Texas Intermediate for May delivery traded at $41,49 a barrel on the New York Mercantile Exchange, down 3 cents, at 7:58 a.m. London time. Total volume traded was about 38 percent below the 100-day average. The April contract increased 47 cents to close at $39,91 a barrel on Monday. Moderate Prices Brent for May settlement was 5 cents lower at $41,49 a barrel on the London-based ICE Futures Europe exchange. The contract rose 34 cents, or 0,8 percent, to $41,54 Monday. The global benchmark crude was at a 1-cent premium to WTI. Iran has some “conditions” related to its own production and it’s up to them whether they participate in the accord, or even opt to join in at a later date, El-Badri said at OPEC’s headquarters in Vienna. Oil prices will con- tinue to rebound to moderate rather than high levels, he said. US stockpiles and oil price impact: • US crude inventories probably increased by 2,45 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. • Petroleo Brasileiro SA reported a fourth-quarter loss after writing down the value of assets because of the collapse in oil prices. • Iraq ordered North Oil Co. to maintain a suspension on exports from fields in Kirkuk to Ceyhan in Turkey until new settlements are reached with the Kurds, Iraqi Oil Min- ister Adel Abdul Mahdi said on Facebook. - Bloomberg● internatioNAL News18 Oil trades near $41 as OPEC sees moderate gains amid output drop
  19. 19. By George Rautenbach RECENTLY Cape Town hosted the first Bloomberg Africa Business and Economic Summit. The presentations focused on the validity in the argument that Africa is booming. While it certainly was worth the effort to attend, I was surprised and perplexed at our ignorance as South Africans of the world in general and our continent in particular. This was reflected throughout the summit. Why was this event important and what can be learned from it? Strangely enough we can draw conclusions from both the content and the absence of content. A summit that was supposed to answer many questions turned out to raise more questions instead. The noble idea was quite well orchestrated with the obligatory American fanfare so familiar from their politi- cal campaigns, as one would expect from Bloomberg. We cannot blame Americans for living their culture. The problem lies with us South Africans. It was disheartening to see so many white faces in the audience even today, and the black ones were mainly from Nigeria and Kenya. Apart from the limited participation, discussions by the panellists gave the impression that sub-Saharan Africa consists mainly of Nigeria, Kenya, SA and to a lesser extent Bot- swana and Rwanda. The discussions gave some insight into how business is doing in Africa, albeit from a statistical point of view that we all know can be manipu- lated to suit the audience. In sum the summit boiled down to the "African narrative" being at a pause or "lull" in what was earlier perceived to be the continent’s boom time. The subjects ranged from the continent’s challenges and future perspectives to the influence of demographics on aspects of economic growth. According to International Monetary Fund (IMF) pro- jections for 2016 and 2017, overall sub-Saharan Africa is growing much faster than the US, Europe, Japan, the Mid- dle East, North Africa, Latin America and the Caribbean. In all of this SA, in terms of its trade policies with Africa, remains an enigma. Perhaps it is the only country that does not take growth in Africa seri- ously or in simple terms does not want to do business with Africa. Only about 15 percent of our total trade is with the rest of Africa. Other countries, especially those that are traditional partners of SA, don’t think this way; for them the conti- nent merits far more atten- tion. The French parliament established a special com- mittee in 2014 to re-evaluate its relationship with Africa, concluding that it is the new Eldorado of the world. The European Union (EU) is channeling most of its devel- opment aid to Africa, and we know development aid is a political tool that opens doors. The US established the African Growth and Opportunity Act, while China is all over the continent to the frustration of many. SA remains largely absent, has no strategy and no well-defined vision for its relationship with the conti- nent. Let us look at how interests in Africa play out in real life. From own experience France will serve as a perfect example of how government and business should work together. In 2011 France made an enormous contribu- tion to peace and stability in the Ivory Coast. The rightful democratically elected presi- dent was inaugurated as head of state after a short civil war. Nicolas Sarkozy, at the time president of France, came in person to the inauguration of President Alassane Dramane Ouattara. His entourage included the CEOs of Bolloré, Orange and Bouygues. These companies 19 analysis19 analysis SA’s ignorance of Africa does everyone a disservice
  20. 20. 20 analysis20 analysis need no introduction in the business world, as they are some of the wealthiest in France. From that visit alone France walked away with €2,9bn in contracts over a period of 15 years. The French have a strategy and vision. In comparison, how does SA think and feel about the continent? The commissioner of SA’s Competition Commis- sion, Tembinkosi Bonakele, during the summit hinted at the fact that business in SA is still very much owned by a few white privileged fami- lies. During the apartheid era the world isolated SA and SA could not do business in Africa. This suited the interests of many Western countries. At the end of apartheid, there was speculation internation- ally that this "new kid on the block" could pose problems for Western business inter- ests on the continent. Some countries approached SA’s foreign missions and "offered assistance". The broader aim was to gain insights into SA’s business interests on the continent. A few South African compa- nies ventured into Africa and burned their fingers, mainly due to ignorance of the com- plexities of African culture: the role of respect, the role of relationships, and how a hum- ble approach can make friends for a life time. Many South Africans are viewed in Africa as arrogant and paternalistic. We now do some business with Africa but in a very lim- ited way under the pretext of "consolidation", "focus" and "economically unstable". It is nothing but fear of diversity and an arrogance that we "know" Africa. Self-inflicted isolation. We played ourselves out of the equation and the rest of the world enjoys watch- ing SA isolating itself from the continent, SA no longer poses a threat to traditional interests in Africa. We need to be critical and ask: does SA have a strategy where we know what we would like to achieve during, for example, a state visit? The answer is simple: no, we don’t, peo- ple tend to go along as it is either expected or they are curious about their continent. Very little economic benefit is derived from co-operation between the government and the private sector. In the final analysis it is clear that SA does not attach the same importance to Africa as the rest of the world. SA is happy to do business with tra- ditional partners even though sub-Saharan Africa, according to the IMF, is one of the fast- est-growing regions, behind China, India and south-east Asia. This means that the sad state of our internal political situation, which is driven by suspicions and unfounded fears, is playing out in our foreign policy. About 85 percent of SA’s imports and exports are directed towards the rest of the world. We are based on the African continent and while the EU, the US and China are making enormous efforts to invest in Africa and work on the continent, SA is mostly absent. To sum it up we do not trust our own much less the con- tinent. SA should be at the leading edge of summits and conferences about the conti- nent. SA should be a gateway, a knowledge base for those interested in the continent. Others should come and learn from us, but in fact we know very little about our own con- tinent. In this context it is not surprising that it takes a US entity such as Bloomberg to discuss Africa as a whole in Cape Town. More conferences about Africa are held outside the continent than inside the continent. A quick look at the agenda of international con- ferences and seminars in SA on Africa makes one realise that we fail the continent dis- mally. Africa does not appear to be an interesting continent, at least not from a South Afri- can perspective. Our future lies with the continent, so perhaps we should start act- ing that way. – BDLive●

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