Grateful 7 speech thanking everyone that has helped.pdf
Zimpapers Ltd posts $2,7m profit
1. By Tawanda Musarurwa
HARARE – Zimbabwe's larg-
est media group, Zimpapers
(1980) Ltd has reported an
after tax of $2,7 million in
the full-year to December
31, 2015 as its newspa-
per operation turned on an
improved performance.
The rise to profitability was a
significant upturn in fortunes
from a loss of $11, 4 million
posted in FY2014.
The group's revenue was
essentially flat at $40 million
compared to $41, 6 million
recorded in the prior compa-
rable period.
But a strategy to reduce dis-
tribution and administrative
expenses saw the firm return
to the black.
Administrative costs declined
to $24,2 million from $30,6
million, while selling and dis-
tribution costs was reduced
to $4,1 million from $7,8
million prior year. Other
income was up to $2,2 mil-
lion from $1,8 million in the
prior year comparable year.
In respect of its various
operations, the group's
newspaper division recorded
an operating profit of $3,6
million before finance costs
compared to an operating
loss of $60 000 in FY2014,
on the back of effective cost
management.
The commercial printing
division also registered an
upturn, posting a 71 per-
cent jump in revenue to $3,6
million from $2,1 million last
year.
News Update as @ 1530 hours, Thursday 31 March 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Zimpapers Ltd posts $2,7m profit
Group CEO Mr Pikirayi Deketeke
2. According to management,
the division's growth was
driven by improved capacity
utilisation following refur-
bishment of the printing
press and retooling of the
downstream operations.
The broadcasting division's
revenue rose 10 percent
to $3, 4 million from $3,1
million previously, as the
company implemented new
revenue streams.
Broadcasting recorded an
operating profit before
interest and tax of $200 000
compared to a loss of $1, 1
million in the prior year.
Basic earnings per share was
a positive 0,48 cents up from
a negative 2,05 cents prior
year.●
2 news
BancABC Zim posts $2,4m profit
BH24 Reporter
HARARE -Africa Banking Corpo-
ration of Zimbabwe (BancABC)
recorded a profit after-tax of
$2,38 million for the year ended
December 31, 2015 as the bank
took advantage of lower impair-
ment charges during the period.
The profit outcome was a signif-
icant upturn from a $1,5 million
loss in the prior year. BancABC’s
operating income rose to $47,9
million from $38,9 million in
FY2014.
Net interest income for the period
under review of $95,8 million
was lower than $102,1 million in
FY2014, attributable to marginal
decline in loans and advances as
well as currency depreciation.
Non-interest income was up 10,5
percent to $76,6 million. Accord-
ing to management, the non-in-
terest income was mainly driven
by strong foreign exchange trad-
ing revenue, and a rise in fee and
commission revenues resulting
from retail asset growth. Chair-
man Mr Alvord Mabhena said they
expect fees and commissions
income to increase going forward
in view of “improved delivery
channels.”
The impairment charge of $11,4
million in 2015 was substantially
lower than the $72,2 million in
2014, mainly due to significant
asset recoveries in Zimbabwe
and Tanzania. Meanwhile, the
chairman said the Zimbabwe
Asset Management Corpora-
tion (ZAMCO) contributed to
the bank’s lower loan impair-
ment charges. Loan impairment
charges were $7,1 million, down
76 percent from $30 million in
the prior comparable period.
“Initiatives from Government
through the ZAMCO have assisted
in improving the perennial prob-
lem of high non-performing loans
not only across the sector but for
the bank as well by taking over
some of the debt creating room
for productive credit growth,’ said
Mr Mabhena. The bank however
plans to maintain a “cautious
approach” to lending.●
5. BH24 Reporter
HARARE -Recently listed
micro-finance institution
GetBucks Zimbabwe saw
a decline in profitability
to $1,9 million in the six-
months to December 31,
from $2,1 million in the prior
comparable period.
GetBucks, which is among
Zimbabwe’s first deposit-tak-
ing microfinance institutions,
was weighed down by a rise
in operating expenses during
the period under review.
“Operating expenses grew
from $1,1 million to $2,4
million over the same period
due to necessary staff
increases and increased
information technology sup-
port and development for the
deposit-taking license,” said
the company in a statement
accompanying the results.
In terms of a break-down
of the operating expenses,
the significant shifts were
notable in management fees,
which jumped 200 percent to
$900 000, and employment
costs, which rose 69,33 per-
cent to $519 000.
Interest income for the
period stood at $3,3 million,
up 26 percent from $2,8 mil-
lion from the prior compara-
ble period.
Fee and commission income
also went up by 34 percent
to $2,4 million from $1,8
million.
During the period, GetBucks’
total assets grew by 15
percent from $14 million to
$15,8 million with over 80
percent of the assets being
interest bearing.
The board has declared an
interim dividend of $500
000 being 0,0457 cents per
share.●
5 news
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GetBucks earnings decline
8. By Tawanda Musarurwa
HARARE– Government says
it appreciates the importance
of the World Bank’s Ease
of Doing Business Rankings
and is expediting reforms to
improve the country’s global
standing.
The Ease of Doing Business
index assesses 182 countries’
macro-economic environment,
focusing on indicators includ-
ing: ‘starting a business’,
‘dealing with construction
permits’, ‘getting electric-
ity’, ‘trading across bor-
ders’, ‘paying taxes’, ‘getting
credit’, ‘registering property’,
‘protecting minority inves-
tors’, enforcing contracts’ and
‘resolving insolvency’.
The Minister of Policy Co-or-
dination and Promotion of
Socio-Economic Ventures in
the President’s Office Ambas-
sador Simon Khaya Moyo said
it is important for the country
to improve its ranking on
the index as it contributes
significantly to international
investors’ perceptions.
“This ranking is very criti-
cal in that it is on the basis
of the same that potential
foreign investor’s form an
opinion about how conducive
or otherwise is the country’s
investment climate,” he said.
He added that some progress
had been made in respect of
the country’s latest ranking,
but more needed to be done.
“We used to get ranking
above 170 from 182 coun-
tries. However when we
embarked on reforming the
ease of doing business, we
immediately saw our ranking
improving to 155 out of 182
countries.
“With the sustained efforts
that we are making in
reforming the same, we are
confident that we will see a
further improvement in our
rating in the next assess-
ment.
“Government is quite aware
that the competitiveness
of our companies has been
negatively affected by the
high overhead costs relating
to utilities, transport, energy,
labour, amongst others. A
taskforce was set up with
a view to reviewing these
costs so that the same can
become comparable to those
obtaining in other regional
countries. We have already
witnessed a reduction for
instance, in water tariffs,”
said the minister.
Ambassador Khaya Moyo also
urged private firms to take
advantage of growing global
networks.
“Production networks are now
globally determined. There-
fore it is incumbent upon any
enterprises who are endeav-
oring to produce to prime
their activities in tandem
with this phenomenon. To do
otherwise would be a futile
exercise because one would
not be able to compete on the
global market.”●
8 news
Govt backs World Bank doing business rankings
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11. BH24 Reporter
HARARE – Hospitality group
Rainbow tourism Group
recorded a 2 percent growth
in occupancy to 50 per-
cent during the year ended
December 31 while revenue
declined by a slight 0,03 per-
cent to $30,6 million.
Revenue was largely affected
by the 15 percent value
added tax imposed on for-
eign revenues in January this
year.
According to RTG chairman
John Chikura the value added
tax had diluted foreign reve-
nues by $600 000.
“Had this new tax not been
introduced, the group would
have enjoyed double digit
growth of 12 percent on a
like on like basis.
“Despite this foreign reve-
nues grew 6 percent to $9,28
million from $8,75 million
recorded during the corre-
sponding period last year,”
he said.
Mr Chikura said that the
growth in foreign revenue
was positive for the business
as it minimises shocks of the
depressed local market.
The group recorded a loss
of $29 304. EBITDA grew
by 300 percent from $0,9
million in 2014 to $3,6 mil-
lion in 2015 while operating
profit was up at $1 million
compared to a loss of $800
000 in 2014.
This performance was attrib-
uted to comprehensive and
stern cost reduction meas-
ures which commenced in
2013 as part of the Group's
turnaround strategy.
The Group injected $5,5
million towards CAPEX for
product upgrades and refur-
bishment in the past three
years.
This was achieved through
internal cash flows. In keep-
ing with its bid to ensure
customer satisfaction, RTG
said it will continue with the
refurbishment of the Kadoma
Hotel and Conference Centre
with focus being on soft
room furnishings, while at
Victoria Falls Rainbow Hotel
bathrooms and furniture will
be replaced to refresh the
product.
Cost management will remain
key to the delivery of value,
through the removal of inef-
ficiencies from the system.
The Group restructured the
$13 640 349 loan facilities
with NSSA. The new facility
has a seven year tenor at an
interest rate of 6 percent per
annum.●
11 news
RTG's FY2015 revenues decline
14. HARARE -The mainstream
industrial index closed
March on a higher note, ris-
ing 0.44 to close at 97.61.
Cigarette giant BAT led the
gainers with a $0,0480 gain
to trade at $10,7980, while
giant insurer Old Mutual
was up $0,0312 to trade at
$2,2025 and Padenga added
$0,0110 to close at $0,0710.
Other gains were seen in Inn-
scor, which rose $0,0023 to
$0,1873 and giant telecoms
Econet moved up $0,0013 to
settle at $0,2443.
Cement giant PPC was the
only counter which traded in
the negative territory after
losing $0,0025 to close at
$0,6975.
The mining index was flat
at 19.53 as Bindura, Fal-
gold, Hwange and RioZim
maintained previous price
levels at $0,0100, $0,0050,
$0,0300 and $0,1040 respec-
tively.- BH24 Reporter ●
ZSE14
Industrials close March on a high
16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
31 March 2016
Energy
(Megawatts)
Hwange 469 MW
Kariba 468 MW
Harare 30 MW
Munyati 17 MW
Bulawayo 21 MW
Imports 0 - 400 MW
Total 1287 MW
THE BH24 DIARY
17. JOHANNESBURG - South
Africa's hit a near 4-month
high against the dollar on
Thursday as the country's
top court said President
Jacob Zuma failed to respect
the constitution when he
ignored the instructions
of an anti-graft watchdog
to repay some of the $16
million spent on his private
home.
At 0900 GMT, the rand traded
at 14,8040 per dollar, 0,94
percent firmer from Wednes-
day's New York and its
strongest level since Dec. 9-
Reuters●
regioNAL News17
Rand hits a near 4-month high against the dollar
JOHANNESBURG - Growth
in private sector credit
demand in South Africa
quickened to 9,02 percent
year-on-year in Febru-
ary from 8,54 percent in
January, central bank data
showed on Thursday.
Expansion in the broadly
defined M3 measure of
money supply was at
10,25 percent year-on-
year in February, largely
unchanged from 10,28
percent in January - Reu-
ters●
South Africa's
February credit
growth quickens
to 9,02 pct y/y
18. Euro-area inflation was
negative for a second month
in March, in data released
on the eve of the European
Central Bank’s first day of
expanded debt purchasing to
fight deflation.
The consumer price index in
the 19-nation bloc fell 0,1
percent from a year earlier
after a 0,2 percent drop in
February, according to data
published Thursday.
That matches the median
prediction in a Bloomberg
survey of economists. Core
inflation, which strips out
volatile elements such as
food and energy, was at 1
percent, up from 0,8 percent
in the prior month.
“We have seen energy
putting a lot of downward
pressure on headline infla-
tion,” said Marco Valli, chief
euro-area economist at
UniCredit Bank AG in Milan.
“Monetary policy cannot do
it all, but in the short term
it’s basically the only game
in town. That’s how it is now,
and probably how it will be
if a further shock hits the
economy in next months.”
The ECB will on Friday beef
up monthly bond purchases
to 80 billion euros ($91 bil-
lion) from 60 billion euros,
after President Mario Draghi
this month unveiled a raft of
new measures to spur price
growth, including lower-
ing its deposit interest rate
deeper into negative terri-
tory. Inflation hasn’t come
near the ECB’s goal of just
under 2 percent since 2013,
and a moderate economic
recovery has been insuffi-
cient to counteract falling oil
costs.
An index of executive and
consumer confidence in the
euro area slumped for a third
month to its lowest level in
more than a year in March,
the European Commission
in Brussels said on Wednes-
day. Data on Friday will
probably show the region’s
unemployment rate remained
unchanged at 10,3 percent
that month, according to
economists in a Bloomberg
survey.
The euro-wide number
follows low readings in the
region’s biggest economies.
In Germany, the European
Union-harmonised inflation
rate rose to 0,1 percent from
minus 0,2 percent, according
to data released Wednesday.
The rate in France was minus
0,1 percent, while Spanish
prices fell 1 percent.
Central bankers around the
world been boosting mone-
tary stimulus measures or
slowing the pace of tighten-
ing in response to volatility
in financial markets. Draghi’s
asset purchase plan is driv-
ing down government bond
yields as investors face even
higher demand, with supply
unable to keep up.
“One of the aims of neg-
ative interest rates was
to push investors further
down the risk spectrum into
other assets and boost their
prices,” Stewart Robertson,
an economist at Aviva Inves-
tors, said in a Bloomberg TV
interview with Manus Cranny
and Anna Edwards. “That
hasn’t really happened.” –
Bloomberg●
internatioNAL News18
Euro-area prices drop for second month before ECB beefs up QE
19. By Nigel Gambanga
…just removing WhatsApp
bundles won’t work (sub-
scribers would still use IM)
so banning OTT services like
WhatsApp might just be what
these operators will consider.
If it is presented as an alter-
native from the operators,
the Government, through the
Ministry of Finance (which
is receiving lower taxes
from the operators) would
gladly sign off on that. This
would be a decision based on
revenue and preserving an
industry that has contributed
significantly to state coffers.
Besides, we wouldn’t be the
first country to do this.
That was something we
published in September last
year. We were rightfully
slammed for mounting noth-
ing more than a speculative
argument with a sensational
suggestion. Nobody in their
right minds would want to
ban WhatsApp.
We were wrong. It’s not
the Government that wants
WhatsApp banned, it’s actu-
ally the mobile operators
and the issue is less about
reduced taxes and more
about struggling with inno-
vation.
At the e-Tech Africa 2016
Conference, the Information
Communication Technology,
Postal and Courier Services
Minister, Supa Mandiwanzira
revealed how the Govern-
ment rejected a proposal
presented by the country’s
mobile operators to explore
the possibility of banning or
stifling Over the Top (OTT)
services like WhatsApp,
Skype and Viber.
This regulatory interven-
tion was supposed to help
the operators deal with the
declining voice revenues
in telecoms that have been
accelerated by the same OTT
services.
Minister Mandiwanzira says
the government turned down
this suggestion and instead,
encouraged the operators to
view this as an opportunity
to encourage young Zim-
babweans to develop local
solutions that can rival the
Silicon Valley OTT services
while generating revenue
that can benefit the country.
This is what led to the tele-
coms operators’ commitment
to a fund that will support
Zimbabwean app developers.
Innovation isn’t that easy
So far this revelation has led
to a harsh criticism of local
mobile operators and the
public has chastised these
rich telecoms companies for
failing to innovate around
technology, opting instead to
lobby for the ban of services
that have added so much
value to the lives of people.
Thanks to the Minister’s
disclosure, the “villainous”
nature of mobile operators
has been exposed and their
efforts to stop the inevitable,
or as my colleague would call
it, “standing in the way of
technology’s natural progres-
sion”, have been made clear.
As a consumer, I agree with
this line of thought. Rather
than lobby for the ban of
WhatsApp, Skype, or any
other disruptive OTT service,
telecoms operators should be
figuring out the best way to
make something out of the
unfolding opportunities pre-
sented by mobile broadband
services.
Aren’t there enough
resources in the national tel-
ecoms operators’ war chests
to figure out smart solutions
that can, at least, stem the
tide of communications dis-
ruption while maintaining the
services that we all enjoy?
After all, they did that with
social media bundles, right?
They should have an idea of
what to do next.
The reality, though, is that
these operators are respond-
ing to changes that they
19 analysis19 analysis
Zimbabwe’s failed WhatsApp ban just exposed the mobile operator’s struggle with
innovation
20. 20 analysis20 analysis
never anticipated, whose
effects they can’t control.
The request for the ban, or
regulation is, as has been
the case in countries like
Morocco and most recently
South Africa, a way to con-
tain the damage. That hardly
justifies it, but it puts the
request into context.
Service re-engineering and
the development of new rev-
enue centres don’t happen
that easily, especially within
organisations that are not
grounded in innovation. Our
mobile operators are cer-
tainly not built to respond
in that way, opting instead
to adopt external solutions
before adapting them to local
conditions.
The innovation required cer-
tainly doesn’t happen when
it’s prompted by sudden
changes to the status quo.
This same spirit of sudden
disruption is an extension of
all new age technologies and
is, in some sense, analogous
to what we are seeing with
on-demand services like
Airbnb and Uber that are
upending service lines that
have existed for generations.
There is no quick solution
that can save that situation,
and least of all from the
providers of the traditionally
sound, cash spinning busi-
ness models.
Mobile network operators are
unfortunately stuck in the
middle of a similar industry
metamorphosis storm which
has been accelerated by the
very same technologies that
they have always wanted to
deliver to subscribers.
Over the years, they have
invested fortunes in expand-
ing and improving the
delivery of stable services
like voice communication
while also ploughing into the
future through broadband
services investments which
are now, ironically, rendering
their cash cows irrelevant.
It’s a dramatisation of the
internet and technology’s
two-faced nature. If you cap-
ture it and use it to provide
a solution, it will accelerate
your service’s growth and
development and by riding
that wave successfully you
will be rewarded handsomely.
However, the same wave
that elevates you can just as
easily wipe you out, making
way for a new solution that
makes you redundant.
Mobile operators had their
golden years – opening us to
voice communication and lit-
erally placing the key to the
digital age in the palm of our
hands. They have (at a very
high cost to the consumers)
brought communication and
knowledge to people’s finger-
tips and are still redefining
the possibilities of financial
inclusion faster than would
have been possible in our
lifetimes.
In the process, they built up
new industries and tore down
others, upturning services
that had enjoyed a firm
place in people’s lives. It’s
a script that the postman,
phone shop worker, internet
cafe owner and retail banker
know too well. Now it’s the
telecoms operators’ turn to
be the star of the show.
It’s hard to say just how
quickly mobile telecoms will
be outpaced by OTT services.
With the slow adoption of
mobile broadband and regu-
lators that aren’t as vigilant
about the cost of data, even
the least dynamic operator is
guaranteed to survive for an
extensive period as people
still hold on to “outdated,
low entry technology” like
voice communication and
SMS.
At the same time, you never
know how the next lobby
effort plays out. If the
people with the final say at
the time aren’t as forward
minded or politically savvy,
we just might get WhatsApp
banned. For now, let’s just
be glad that it’s just a
passing debate on telecoms
innovation and sensational
suggestion. – .TechZim
●