A digital copy of the BH24 (12 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 Funny Hudzerema
HARARE - The Ministry of Tour-
ism and Hospitality Indus-
try is targeting 2, 5 million
tourist arrivals by year end.
This it said will be achieved
through the implementation
of a number of projects aimed
at encouraging tourists to
visit Zimbabwe.
Minister of Tourism and Hos-
pitality Industry Engineer
Walter Mzembi said the target
will be achieved if the whole
country works together to
advertise Zimbabwe as the
best tourist destination in
Africa.
“We are hoping that we can
cross the 2, 5 million mark in
terms of arrivals and progress
within the context of the $5
billion economic paper to $1,
5 million in terms of revenue.
“This will be spearheaded by
the National Tourism Master
Plan which will be assisting
in measuring and monitor-
ing ways which promote the
inflows of tourists,” he said.
During the first quarter of
News Update as @ 1530 hours, Tuesday 12 January 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Zimbabwe targets 2,5 million tourist arrivals

2. 2 news
2015 a total of 390 000 tour-
ists visited Zimbabwe.
“The refurbishment of the
Victoria Falls airport will also
assist in increasing the num-
ber of arrivals in the country.
“By 2017 we will be around
3 million arrivals if we work
hard as we are doing now
tagging Victoria Falls into
consideration thus why we
build it to lend arrivals and
to see them out so it will be a
game charger,” he said.
He added that his Ministry of
tourism is discussing with the
Reserve Bank of Zimbabwe to
accept the rand in the tour-
ism sector by scratching the
15 percent value added tax
for foreign accommodation
since the number of tour-
ists from Namibia and South
Africa were decreasing.
Currently the ministry of
tourism is implementing a
number of projects which
include the construction of
Tourism Special Economic
Zones and the implementa-
tion of Tourism Master Plan
aimed at increasing tourist
arrivals in the country..●

3. BH243

4. By Tawanda Musarurwa
HARARE - Mining conglomerate
Caledonia Mining Corporation has
granted long term incentives to its
directors Messrs Steve Curtis, Mark
Learmonth, Caxton Mangezi and
Dana Roets, through a Omnibus
Equity Incentive Plan.
The Omnibus Equity Incentive Plan
was approved by the company's
shareholders in May last year.
Mr Curtis is Caledonia’s president,
chief executive and director, while
Mr Learmonth is chief financial
officer and vice president, Mr Roets
is the chief operating officer and Mr
Mangezi is general manager and
director of Blanket Mine.
According to the group, the Long
Term Incentive Plan (LTIP) awards
are made in the form of Restricted
Share Units (RSU's) and Perfor-
mance Share Units (PSU's), which
will be settled in cash, reflecting the
prevailing Caledonia share price at
the maturity of the award.
The company said no shares will
be issued as a result of the LTIP
awards.
"The awards are intended to create
a high degree of alignment between
the remuneration of Caledonia's
senior management team and the
interests of shareholders. Accord-
ingly, 80 percent of the award value
for each Participant is made up of
PSU's.
"The final number of PSU's which
vest on maturity of the award will be
adjusted to reflect the actual perfor-
mance of the Company in terms of
three criteria: progress on the sink-
ing of the Central Shaft; gold pro-
duction and production costs.
"In the case of all three criteria, if
actual performance is less than 70
percent of target, no PSU's will vest;
if actual performance is greater
than 70 percent of target, the num-
ber of vesting PSU's will be adjusted
pro rata on a linear basis.
"In the case of Central Shaft pro-
gress, adjustment will be to a
maximum of 100 percent of target
whereas adjustments with respect
to gold production and costs will
increase on a linear pro rata basis
reflecting the extent to which actual
performance exceeds target, sub-
ject to a maximum of 200 percent of
the initial target," said the Toronto
Stock Exchange and London-listed
Caledonia in a statement.
The total annual LTIP award for
Messrs. Learmonth, Mangezi and
Roets is 20 percent of basic salary;
the total annual LTIP award for Mr
Curtis is 30 percent of his basic sal-
ary.
Commenting on the introduction
of the Plan, Caledonia chairman Mr
Leigh Wilson said:
"Caledonia has set in place an
objective and transparent incentiv-
isation system for its senior man-
agement team which closely aligns
the interests of shareholders and
the performance of management.
"Management is now clearly incenti-
vised to deliver on the core aspects
of the Revised Investment Plan
which we announced to the mar-
ket in November 2014 - these core
aspects being gold production, cost
control and progress on sinking the
Central Shaft."
Caledonia's main interest is a 49
percent stake in the Gwanda-based
gold producer, Blanket Mine.●
4 news
Mr Steve Curtis
Caledonia awards long term incentive awards to 4 directors

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6. BH24 Reporter
HARARE - Microfinance insti-
tution, Hillthru Enterprises, has
established several branches
across the country as it seeks
to sustain a market (small
business enterprises) that is
typically seen as high-risk area
by major banks.
The MFI currently has 18
branches spread across all cor-
ners of the country – Harare,
Bulawayo, Mutare, Gweru,
Masvingo, Chipinge, Chiredzi,
Gutu, Zvishavane, Rusape,
Beitbridge, Gwanda, Kwekwe,
Gokwe, Lupane, Marondera,
Chimanimani and Hwange.
Hillthru Enterprises CEO Mr
Taguma Mazarire said the fact
that it remains one of the few
MFIs with a headquarters in
Masvingo is a clear demonstra-
tion that they have a special
focus on the small business
niche in outlaying areas.
Typically most MFIs are based
in the country's two main cities
- Harare and Bulawayo.
According to an RBZ report last
year, of the main cities, Harare
had the highest numbers of
MFIs with 124, followed by Bul-
awayo with 41, Mutare with 28
and Gweru 27.
Mr Mazarire said the company
has grown on the backbone
of accountability, responsibil-
ity, transparency and reliabil-
ity, and that the firm is fully in
compliance with the Core Client
Protection Principles.
“Hillthru Enterprises is fully in
compliance with the Core Cli-
ent Protection Principles and
we actually go an extra mile to
make sure our clients are happy
and that all the regulations con-
cerning protection of clients are
adhered to.
“The strategies we institute in
regard to regulations concern-
ing the protection of clients
include Fair pricing of loans
and transparency in terms of
charges, prevention from over
indebtedness, maintaining
of privacy, as well as fair and
respectful treatment,” he said.
MFIs, especially in the con-
text of the present state of the
local economy, fill a needed
gap within the financial ser-
vices industry by offering small
loans, or micro-loans, to people
unable to access conventional
loan services.●
6 news
MFI spreads wings across Zimbabwe

7. BH247

8. By Elita Chikwati
HARARE - The Tobacco Indus-
try and Marketing Board and
Agritex are conducting a crop
assessment in all tobacco
growing areas to come with
a crop estimate for the 2016
marketing season as well as
determine the opening dates
for the season
TIMB public relations manager,
Mr Isheunesu Moyo said their
officers were on the ground in
all provinces to assess read-
iness of the farmers for the
season.
“The crop estimate will ena-
ble us to prepare adequately
for the season. Most farmers
who had an irrigated crop are
reaping and curing but the
crop quality has been affected
by hot weather and this may
affect the quality of the crop,”
he said.
Mr Moyo said TIMB was going
to use the e-marketing tech-
nology to improve the market-
ing system. The introduction
of e-marketing at Zimbabwe’s
auction floors is aimed at
increasing transparency in the
tobacco business especially
the selling of the crop.
India is facilitating the soft-
ware and the hardware while
the other equipment will be
obtained from local compa-
nies. Tobacco production
has been on the increase for
the past years with farmers
switching from crops such as
maize and cotton to the lucra-
tive golden leaf.
Farmers have however been
complaining about the ceiling
price of $ 4, 99 per kilogramme
at the auction floors while con-
tract floors offer prices above
$5 per kg.
According to contractors, the
prices at the contract floors
are higher to incentives the
farmers and also reward them
for not side marketing the
crop.●
8 news
TIMB, Agritex conduct crop assessment

9. HARARE - Low activity was the
order of the day as only three
counters managed to trade
today.
The mainstream industrial index
lost a marginal 0.03 to close at
112.18 despite only one counter
trading in the red.
Telecoms giant Econet lost
$0,0015 to settle at $0,2100.
BAT, Delta, CBZ, Innscor and
Simbisa were unchanged at
$12,2000, $0,6800, $0,1100,
$0,2400 and $0,1600 respec-
tively.
On the upside, Powerspeed
increased by $0,0010 to close
at $0,0230 while milk processor
Dairibord rose by $0,0005 to
trade at $0,0690.
The mining index was steady
at 21.82 as Bindura, Falgold,
Hwange and RioZim maintained
previous price levels at $0,0129
$0,0050, $0,0300 and $0,1040
respectively
. - BH24 Reporter ●
ZSE9
Low activity haunts industrial index
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10. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Powerspeed 4.54 2.30 Econet -0.70 21.00
Dairibord 0.71 6.90
Index Previous Today Move Change
Industrial 112.21 112.18 -0.03 points -0.03%
Mining 21.82 21.82 +0.00 points +0.00%
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
12 January 2016
Energy
(Megawatts)
Hwange 543 MW
Kariba 699 MW
Harare 0 MW
Munyati 28 MW
Bulawayo 0 MW
Imports 100-150 MW
Total 1291 MW
21 January 2016 - CZI/Herald Business Annual Economic Outlook 2016 Half Day Symposium; Venue: Meikles Hotel, Harare; Time:
08:30 to 12:50hrs
THE BH24 DIARY

12. JOHANNESBURG - South Afri-
ca's rand remained on shaky
ground against the dollar today
after tumbling as much as 9
percent in the previous session
over concerns about both the
Chinese and local economies.
The JSE securities exchange's
Top-40 futures index was down
0,97 percent, suggesting the
local bourse would open more
than 420 points lower at 0700
GMT.
At 0653 GMT, the rand traded
0,51 percent softer at 16,8850
per dollar compared with Mon-
day's close.
The rand had fallen to a record
17,9950 during Asian trade on
Monday, on fears that China
wants to weaken its currency
aggressively and boost its
export competitiveness.
It fared worse than most of
its emerging market peers,
reflecting additional concerns
about the direction of policy
in Africa's most advanced but
struggling economy after Pres-
ident Jacob Zuma inexplicably
fired the finance minister in
December.
"One can only hope that in the
shorter term, the market has
become a little stretched from
all this negativity so far this
year and that we get a bit of
a relief rally," Standard Bank
trader Warrick Butler said.
In fixed income, the yield for
the benchmark government
bond maturing in 2026 added
5.5 basis points to 9,74 per-
cent compared to Monday's
close. It was however still far
off the previous session's four-
week high of 9,89 percent.
- Reuters●
regioNAL News12
Rand still fragile after sharp fall at start of week
Nigeria to sell 80
billion naira of
bonds on Jan 20
LAGOS - Nigeria said on Mon-
day it will sell 80 billion naira
($402,92 million) worth of
bonds denominated in the local
currency at an auction on Jan.
20, its first debt auction of the
year, the Debt Management
Office (DMO) said.
The debt office said it will issue
40 billion naira each of bonds
maturing in 2020 and 2026,
using the Dutch auction sys-
tem. The 2020 debt is a reo-
pening of a previously issued
bond. The 2026 debt is a fresh
issue. Results of the auction are
expected the next day.
Nigeria has proposed a plan to
issue 260 billion to 390 billion
naira in 5-, 10- and 20-year
naira bonds in the first quarter
of the year.
Nigeria said it will borrow about
900 billion naira locally to
finance part of the 2,2 trillion
naira deficit in its 2016 budget.
.- Reuters●

13. Oil extended declines from the
lowest close in more than 12
years before US government data
forecast to show crude supplies
expanded, exacerbating a global
glut.
Futures fell as much as 3,2 per-
cent in New York after dropping
5,3 percent yesterday.
Stockpiles probably rose by
2 million barrels last week, a
Bloomberg survey showed before
a report from the Energy Infor-
mation Administration Wednes-
day. Iran will begin selling a new
grade of crude as soon as March
as it prepares to boost produc-
tion once international sanc-
tions blocking exports are lifted,
according to an official at the
country’s state-run oil company.
“When you have a supply over-
hang, there’s going to be con-
tinued downward pressure on
prices,” Ric Spooner, a chief
analyst at CMC Markets in Syd-
ney, said by phone. “Investors
are looking toward a difficult few
months for oil, especially with
Iran set to boost exports. We are
likely to see production cuts at
these prices, but they may take
some months to come through.”
Oil slid more than 15 percent in
the previous six sessions, the
biggest such drop in more than
four years, as volatility in Chi-
nese markets fueled a rout in
global equities and US supplies
remained about 100 million bar-
rels above the five-year average.
Brent crude, the global bench-
mark, may trade in the $20s if
the dollar rapidly gains, accord-
ing to Morgan Stanley.
West Texas Intermediate for Feb-
ruary delivery fell as much as $1
to $30,41 a barrel on the New
York Mercantile Exchange and
was at $30,65 at 7:48 a.m. Lon-
don time. The contract dropped
$1,75 to $31,41 on Monday, the
lowest close since December
2003. Total volume traded was
about 77 percent above the 100-
day average. Prices lost 30 per-
cent last year.
Oil Supplies
Brent for February settlement lost
as much as $1,12, or 3.6 percent,
to $30,43 a barrel on the Lon-
don-based ICE Futures Europe
exchange. The contract declined
$2, or 6 percent, to $31,55 Mon-
day, the lowest close since April
2004. The European benchmark
crude was at a premium of 10
cents to WTI.
US crude stockpiles probably
increased for the second time
in three weeks, according to
the survey. Gasoline inventories
gained by 1,8 million barrels, the
survey shows. Supplies of the
motor fuel rose by 10,6 million
barrels through Jan. 1, the most
since May 1993, according to
data from the EIA.
Iran is increasing output at fields
in the West Karoun region, near
the Iraqi border, and most of the
crude in the new blend will come
from the Yadavaran, South Aza-
degan and North Azadegan fields,
the National Iranian Oil Co. offi-
cial said, declining to be identi-
fied due to company policy.
Estimates Cut
Oil is particularly leveraged to
the dollar and may fall between
10 to 25 percent if the currency
gains 5 percent, Morgan Stanley
analysts including Adam Longson
said in a research note dated Jan.
11. Societe Generale SA cut its
average 2016 Brent forecast to
$42,50 a barrel from $53,75 on
Monday, while Bank of America
Corp. trimmed its forecast to $46
a barrel from $50.
Petroliam Nasional Bhd. sees
crude prices averaging $30 a bar-
rel this year in its “low-price” sce-
nario and warned the Malaysian
state oil company faces two to
three tough years. The company
just two months ago forecast
a 2016 average price of $48.-
Bloomberg●
internatioNAL News13
Oil extends losses from 12-year low as stockpiles seen expanding

14. By Frank Holmes
Who says gold lost its appeal as a
safe haven asset?
After five straight positive trading ses-
sions, the yellow metal climbed above
$1 100 on a weaker US dollar, its
highest level in nine weeks. The rally
proves that gold still retains its status
as a safe haven among investors, who
were motivated this week by a rocky
Chinese stock market, North Korea’s
announcement that it detonated a
hydrogen bomb on Wednesday and
rising tensions between Saudi Arabia
and Iran.
Here in the US, gold finished 2015
down 10,42 percent, its third straight
negative year. Until the new year, sen-
timent appeared poor, and many gold
bulls were finding it hard to stay opti-
mistic.
But after the price jump this week,
large exchange-traded gold funds saw
massive inflows, confirming a shift in
investors’ attitude toward the precious
metal.
It’s worth remembering that about 90
percent of physical demand comes
from outside the US, mostly in emerg-
ing markets such as China and India.
In many non-dollar economies, buy-
ers are actually seeing either a steady
or even rising gold price.
The metal is up in Russia, Peru, South
Africa, Canada, Mexico, Brazil and
many more. Note the differences in
returns between gold priced in US
dollars and gold priced in the Brazil-
ian real, Turkish lira, Canadian dollar,
Russian ruble and Indonesian rupiah.
Gold demand in China was very robust
last year. A record 2,596.4 tonnes of
the yellow metal, or a whopping 80
percent of total global output for 2015,
were withdrawn from the Shanghai
Gold Exchange. As for the Chinese
central bank, it reported adding 19
more tonnes in December, bringing
the total to over 1,762 tonnes.
Precious metals commentator Law-
rie Williams points out, though, that
China’s total reserve figure is widely
believed to be “hugely understated,”
meaning the central bank might very
well have much more than we’re being
told.
Forget Interest Rates—Real
Rates Are the Key Drivers of Gold
Despite all the talk of rising interest
rates in connection to gold, they’re
not a dominant driver of prices. Sure,
rising nominal rates have tended to
make the metal less attractive, since it
doesn’t pay an income, but the larger
driver by far are real interest rates.
When real rates drop into negative
territory, gold has historically done
well.
As a reminder, real rates, important
for the Fear Trade, are what you get
when you subtract the consumer price
index (CPI), or inflation, from the
10-year Treasury yield.
As of January 6, the 10-year yield was
2,18 percent, while the 12-month CPI
for November—December data will be
released later this month—came in
at a barely-there 0,50 percent. Real
rates, therefore, are running at a posi-
tive 1,68 percent, which is a headwind
for gold.
That’s why we need inflation to pick
up, because then gold would be more
likely to rally. Regardless, the World
Gold Council (WGC) writes in its 2016
outlook that gold’s role as a diversifier
remains “particularly relevant”:
Research shows that, over the long
run, holding 2 percent to 10 percent
of an investor’s portfolio in gold can
improve portfolio performance. The
reason for this is that gold has tended
to have a low correlation to many
other asset classes, making it a val-
uable diversifier. During economic
contractions, for example, gold’s cor-
relation to stocks actually decreased,
according to data between 1987 and
2015.
For the last three years, gold has dis-
appointed many because other invest-
ments, specifically equities, have
seen such huge gains. But with global
markets hitting turbulence, the yellow
metal is looking more attractive as
insurance against the currency wars.
I always recommend 10 percent in
gold: 5 percent in gold stocks or an
actively-managed gold fund, 5 per-
cent in bullion and/or jewelry. It’s also
important to rebalance every year.
This should be the case in both good
times and bad, whether gold is rising
or falling. As highly influential invest-
ment expert Ray Dalio said last year:
“If you don’t own gold, you know nei-
ther history nor economics.” - Mining.
com●
14 analysis14 analysis
How gold got its groove back