A digital copy of the Business News 24 (01 August edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.

1. News Update as @ 1530 hours, Friday 1 August 2014
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By Lloyd Gumbo
Move expected to reduce passport
costs
The Registrar-General’s Office has
bought a state-of-the-art printing press
that produces electronic and ordinary
passports, a development that will see
prices significantly go down, Deputy
Home Affairs Minister Ziyambi Ziyambi
has said.
The department is currently sub letting
printing of passports at Fidelity Printers.
Speaking on the sidelines of a party that
PresidentMugabehostedatStateHouse
to celebrate Zanu-PF victory in the July
31 harmonised elections, Deputy Min-
ister Ziyambi said acquiring a printing
press was one of the major successes of
theZanu-PFGovernmentsincethepolls.
“Very soon we will be producing our own
booklet in terms of passport production.
We now have our own production cen-
tre for passports. We got one of the best
printers in the world. Very soon it should
be commissioned by His Excellency
(President Mugabe).
“We have been using Fidelity Printers
whichisthereasonwehavebeenhaving
shortages and the price was also high.
Butwehopethatwewillnowclearallthe
backlog because we will be doing it our-
selves and the prices should also come
down.” Currently, applying for an exec-
utive passport (one day) costs $315, an
urgentone(threeworkingdays)goesfor
$250withanordinarypassportgoingfor
$50.
Temporary Travel Document costs $35,
passport application forms go for $3 as
well as Temporary Travel Document
Forms.
An electronic passport is a booklet with
an electronic chip that enables immigra-
tion officials to authenticate a traveller’s
identity digitally.
Deputy Minister Ziyambi recently said
the new system would make it unnec-
essary for passport applicants to bring
photosastheywouldbetakenwhenone
getstotheofficeandthentransmittedto
the production centre. There has been a
general outcry throughout the country
that passport prices were still too high
compared to others in the region despite
reduction of prices to $50 for ordinary
passports from $140.
However, the department contends that
its prices were reasonable considering
the costs involved.
The RG’s Office has of late been efficient
in processing passport applications with
applicants getting them on time.
Registrar-General Tobaiwa Mudede
recently told the Parliamentary Portfolio
Committee on Women’s Affairs, Gender
and Community Development that his
departmentwouldworkhardtomanage
queues at the passport offices.
He said the challenge was unlikely to
come to an end as long as the economy
was not performing as citizens would
continue searching for greener pastures.
•
RG’s office acquires printing press

2. BH24

3. 3 NEWS
By Funny Hudzerema
Government needs to relook a combi-
nation of entry incentives that include
liberalisation of air access and landing
cost structures to encourage more air-
linestocomeintoZimbabwe,anofficial
has said.
This comes as Royal Dutch Airline KLM
onWednesdayannouncedthatitwould
discontinue direct flights from Amster-
dam to Harare in October, dealing a
major blow to the country’s tourism
industry.
High landing fees have been cited as
the major reason for the airline’s pull-
out from the country.
In a written response to questions
sent by BH24, Tourism Minister Walter
Mzembi said the decision by KLM calls
for Government to interrogate the way
they want to earn income and make
sure it does not create entry barriers.
“They (KLM) explained it was purely
a business decision. High operating
cost model and low demand especially
inbound. (But the) decision does not
inspire other airlines to look at us as
we unroll and implement our open sky
policy in line with new tourism policy,”
he said.
“But it calls for Government to inter-
rogate where exactly it wants to earn
income in the value chain in a manner
that does not constitute entry barriers.
A combination of entry incentives that
include visa and air access liberalisation
should unlock value,” he added. KLM
resumed flights to Zimbabwe in 2012
after 13 years of absence but said high
fees would be a major determinant on
whether or not to increase direct flights
to Zimbabwe.
Minister Mzembi said Zimbabwe needs
to stimulate demand so that more air-
lines can come into Zimbabwe.
He added that the reintroduction Kari-
ba-Victoria Falls route by Air Zimbabwe
was a welcome internal distribution
move.
“The tourism sector is going to benefit
through efficient cost effective internal
distributionofinternationalarrivalswho
do not want idle time travelling long
distance. “Too much idle time on this
route especially for business tourism,
clearing agents and legislators from
this part of the world. What we need to
stimulate demand are budget airlines
and corresponding fees,” he said.
He said the national airliner should also
consider resuscitating the Harare-Mas-
vingo-Buffalo Range route and as well
as extending to Beitbridge. .•
Gvt should relook at airport cost structures: Mzembi
Harare International Airport

4. By Lynn Murahwa
The European Union (EU) has part-
nered with ZimTrade to give the coun-
try's small and medium enterprises
(SMES) more access to the European
market through the launch of the Zim-
babwe-EU Business Information Cen-
tre (Zim-EBIC).
The facility aims at increasing the
capacity of Zimbabwe business oper-
ators to establish mutually beneficial
linkages with European counterparts
along with public and private sector
agencies of the EU member states and
of Zimbabwe. Speaking at the launch
EU ambassador to Zimbabwe Aldo
Dell'Ariccia said the business centre
is the last stage of 2012 interim Eco-
nomic Partnership Agreement with
Zimbabwe.
"This is the last flower of a bouquet of
actions that we have been implement-
ing together with ZimTrade, the private
sector and the Ministry of Industry and
Commerce to make sure that indeed
the economic partnership agreement
that started in 2012 can indeed bear all
its fruits," he said. He said job creation
is fundamental within Zimbabwe and it
is imperative to create job opportuni-
ties wherever possible.
"We hope that the main beneficiaries of
this centre will be small and medium
enterprises (SMEs), which are the
backbone of the re-activation of the
economy of the country and those will
produce more employment," he said.
He added that the centre will bring
foreign and local investors together
through information sharing. Dell'Aric-
cia reiterated that Zimbabwe needs
to create transparency in policies to
increase foreign direct investment
inflows.
"We know that you are working on that
but the clock is ticking and I think that
it is very important that the Govern-
ment gives clear messages in terms of
legislation, to make sure that the envi-
ronment will be conducive to recipro-
cate action for the arrival of European
investment in this country because it is
absolutely needed," he said.
The Executive Director of the Inter-
national Trade Centre (ITC) Arancha
González said her organisation will as
well help the country's trade through
its technical cooperation programmes.
"ITC will build the capacity of Zimba-
bwean trade support institutions such
as ZimTrade to access information and
create opportunities that would be of
use to traders in Zimbabwe," she said
She concluded by saying the 'cotton to
clothing' industry initiative is now in its
final design stages.
"The design stage will be concluded
with the launch of this home-grown
strategy in September at the Bulawayo
Clothing Indaba event," she said. •
4 NEWS
EU creates new link for local SMEs to European Market

5. BH24

6. By Farai Rugeje
Industry and Commerce Minister Mike
Bimha says Zimbabwe needs more
investments in agribusiness to increase
agricultural exports and generate more
income for the country.
Minister Bimha was commissioning a
US$250 000 avocado packing shed at
Enhoeks Estate in Chipinge, which will
pack the fruit for export market and
has created 500 jobs in the area.
He said such projects had a positive
impact in turning around the economy.
“When you get a company investing
in a project worth US$250 000, it is a
sign of confidence in the country. This
investment will go a long way in pro-
moting utilisation of available local raw
materials in revenue generation.
“This is what we would want to see
a lot of our farmers doing if they can
get funding so that they are able to
invest in projects that promote exports
because it is through exports that we
generate foreign currency,” he said.
He said farmers in Chipinge have con-
tributed so much in terms of diversifi-
cation of agricultural activities which
have helped boost the country’s econ-
omy.
Enhoek’s Estate has 125 hactares
under plantation of which, 65 hactares
has been dedicated to planting avo-
cado while the rest is under gum and
macadamia.
“I am glad that this company has a
international certification in terms of
export quality and that alone filters
through the out growers because in
turn they will expect them to be able to
produce whatever they are producing
at certain quality and in turn the com-
munitybeingabletomeetinternational
standards,” he said
TheEstateownerStaleEnhoeksaidthe
project was a success in boosting the
livelihoods of the people in the com-
munity. “It is through the investment
of these plantations crops that we will
be able to create more employment
that will not ultimately benefit the local
community but the district as well. We
hope to increase the employment from
450workersto600workersinthenext
two years,” he said. •
6 AGRICULTURE
Zim needs more investment in agribusiness

7. BH24

8. Wheat farmers should be on the look-
out for quelea birds as they frequently
invade Zimbabwe during
winter every year, an expert said on
Friday. Quelea birds destroy sorghum,
wheat, barley, oats and millet during
winter every year.
The Red-billed Quelea (quelea bird) is
the world's most abundant wild bird
species. Although quelea birds prefer
the seeds of wild grasses to those of
cultivated crops, their large numbers
make them a constant threat to fields
of sorghum, wheat, barley, millet and
rice. Zimbabwe Commercial Farmers
Union president Wonder Chabikwa said
wheat farmers should take precautions
againstqueleabirdstoreduce destruc-
tion of crops. “The most common way
of controlling the pest is by large-
scale spraying of areas, usually with a
chemical called Fenthion (also known
as quelea-tox) where they breed or
roost,” he said.
Traditionally quelea birds were con-
trolled through scaring with people
going into the fields when their grain
crop was vulnerable and use anything
from catapults to banging tins as well
as making noise.
“It is quite effective in the majority of
cases,” said Chabikwa. Quelea birds
move in millions and can destroy crops
in a short space of time.
Chabikwa said the red-headed birds
were rare and came out mostly when
there had been high rainfall and there-
fore abundant food.
Last year the country did not have a
challenge since most crops failed due
to drought. Chabikwa urged the gov-
ernment to dedicate a plane that would
move around wheat farms spraying
the quelea tox. The average quelea
bird eats around 10 grams of grain per
day, roughly half its body weight. ―
New Ziana •
8 AGRICULTURE
Wheat farmers warned against quelea birds
quela birds

9. AdM-DI156506-
BH24

10. BH24

11. The equities market closed the week
on a high note after registering gains
for three consecutive days. The
Industrial index gained 1.23 points
to close the week at 189.31 points.
Meikles added 2 cents to 18.5 cents
and Old Mutual advanced 1.99 cents
to 265 cents.
Hunyani and Innscor picked up 1.01
cents each to 3.51 cents and 76.01
cents respectively. CBZ and Turnall
moved up a cent each to 13 cents and
4 cents in that order.
On the losers, Edgars shed half a
cent to 12.5 cents, CFI dropped
0.11 cents to 2.1 cents while African
Sun and Powerspeed were 0.1 cents
lower each at 2.7 cents and 1.5 cents
respectively. TA Holdings traded 0.02
cents weaker at 16 cents.
Week on week, the index was 5.55
points firmer.
The Mining index, however, shed 0.55
points to close the week at 94.45
points.
Bindura lost 0.1 cents to settle at 8.4
cents while RioZim was bid higher at
25 cents. Falgold and Hwange were
unchanged at previous trading levels,
The mining index gained 27.92 points
in the week. ― BH24 Reporter •
11 ZSE REVIEW
ZSE closes week on a high note

12. The suspension of direct flights from
Amsterdam to Harare by KLM Royal
Dutch Airlines is a blow to Zimbabwe’s
tourism industry.
Over the past years, arrivals from
Europe and America have been
increasing our receipts and we have
been enjoying the return of some
major airlines to our airspace.
We have had airlines such as Egypt Air,
Ethiopian Airways and others return-
ing to Zimbabwe and recently Fastjet
also announced its plan to come into
Zimbabwe with its low-cost flights.
Air Zimbabwe has also been revived
with the resumption of regional routes
as well as local routes like the Hara-
re-Kariba-Victoria Falls
As much as this is good for the coun-
try, the Civil Aviation Authority of Zim-
babwe might have overlooked a few
things. The cost structures for these
airlines to operate in Zimbabwe is one.
They are in business and want to
make a profit, that’s a fact. So we
should create an environment that
enables them to make that profit as
we also make our profit. Trips to Zim-
babwe and Africa in general, become
more expensive than anywhere else in
the world because of high landing and
service fees.
And airlines transfer the cost to the
customer so that they remain in busi-
ness.
Low demand is one of the biggest
factors. Africa has 12 percent of the
world’s population, but only 1 percent
of the world’s air traffic. The demand
is therefore lower in terms of passen-
ger numbers, which for airlines is not
a good thing. Despite our attractive
tourist destinations, demand remains
lower than expected and this drives up
prices a lot. One of the reasons cited
by KLM.
Our infrastructure is also not so good,
with a dysfunctional railroad net-
work and poor road network, flying
becomes the only choice for long dis-
tance travellers. However, getting the
fuel and parts for the aircraft is often
very difficult and very expensive. This
drives up operating costs for airlines.
So if Zimbabwe does not try to under-
stand these issues, then we will have
more airlines that are not realising
profit from this route pull out.
For KLM, it was a purely business deci-
sion, the route was just not viable. But
for us, this is a blow because we rely
on these arrivals for our tourism rev-
enues.
So we should not cry but start looking
at our structures and see how they
can be altered to make doing busi-
ness, even airline business, more via-
ble in Zimbabwe.
Why has Government not done any-
thing? Are we waiting for more airlines
to pull out of the country to realise that
it does not auger well for business.
Government should as a matter of
urgency relook some of these cost
structures.
That way, we will keep the airlines
already coming in and get more play-
ers to come in.
As Tourism Minister Walter Mzembi
said: “It calls for Government to inter-
rogate where exactly it wants to earn
income in the value chain in a manner
that does not constitute entry barriers.
A combination of entry incentives that
include visa and air access liberalisa-
tion should unlock value.” •
12 BH24 COMMENT
Zim tourism needs airlines

13. BH24

14. Standard Chartered is more than dou-
bling its commitment to ‘Power Africa’
by increasing its pledge from $2 billion
to $5 billion, after reaching its initial
commitment in 12 months, the firm
said in a statement.
On President Obama’s launch of Power
Africa in July 2013, Standard Char-
tered initially committed $2 billion.
With its extended commitment, the
bank remains the largest private sec-
tor contributor within the Power Africa
partnership.
The governments of Nigeria, Ghana,
Tanzania, Kenya, Ethiopia, and Liberia,
and a group of private-sector firms are
taking part in the initiative to improve
accesstoclean,reliablepowerinAfrica,
and ultimately deliver electricity to
more than 20 million new households
and companies by 2018.
Peter Sands, group chief executive,
Standard Chartered, said: “Over our
150 years of history in Africa, we have
always strive to contribute to social
and economic development, financing
trade and investment across the con-
tinent. A lack of access to electricity is
one of Africa’s most critical infrastruc-
ture challenges. With our extended
commitment to the “Power Africa” ini-
tiative we expect to add around 7,500
megawatts to Africa’s power grid –
equivalent to the electricity production
capacity of Nigeria and Cote d’Ivoire.”
Projects that Standard Chartered has
been involved with under its Power
Africa commitment include:
Azura-Edo Power Project in Nige-
ria: This privately-owned and funded
green-field independent power plant
(IPP) is setting an industry standard
in legal and regulatory frameworks for
other developing power plants to fol-
low, progressing the Nigerian govern-
ment’s power sector reform.
The Azura-Edo plant will harness the
country’s domestic gas resources to
generate 450MW of power as the first
non-captive IPP in Nigeria in more than
10 years. Standard Chartered is the
global co-ordinating mandated lead
arranger and structuring bank. Total
invested capital in the power plant and
gas supply will exceed $1 billion.
Okija Power Project in Nigeria: This pri-
vately-owned and funded green-field
IPPwillbethesecond(afterAzura-Edo)
to seek long term debt financing on a
limited recourse basis.
This plant of 495MW installed capacity
will also utilise domestic natural gas
to generate electricity in south-east-
ern Nigeria. Standard Chartered is the
Mandated Lead Arranger and Structur-
ing Bank.
Zambian Energy Corporation: Stand-
ard Chartered’s Private Equity Africa
division invested $57million into Zam-
bian Energy Corporation, which will
flow into its regional operation, CEC
Africa (CECA).
CECA has acquired a power plant and
distributor within Nigeria’s privatisation
plans (600MW Shiroro Hydro Plant in
Niger State and Abuja Electricity Dis-
tribution Company). This will support
CECA’s power infrastructure expansion
strategyinNigeriaandothersub-Saha-
ran Africa countries.
On launching Power Africa in July 2013,
the White House said: “More than two-
thirds of the population of sub-Saharan
Africa is without electricity, and more
than 85 percent of those living in rural
areas lack access.
These countries have set ambitious
goals in electric power generation and
are making the utility and energy sec-
tor reforms to pave the way for invest-
ment and growth.”
Over the last two decades, academic
researchhasshownthattheunder-per-
formance of Africa’s power infrastruc-
ture has restricted economic growth,
reducing per capita GDP growth by
0.11 percent per year for the continent
as a whole, and as much as 0.2 per-
cent in Southern Africa, where mining
and manufacturing – the big industrial
users of electricity – have traditionally
been more important.
In Nigeria, current power output is
approximately 4,000 megawatts,
but the country’s demand is sitting at
10,000MW. It is estimated that if Nige-
ria could close this infrastructure gap, it
would raise economic growth by 3 per-
centage points, equating to just over
$15 billion annually.-Business Day •
14 REGIONAL News
Standard Chartered more than doubles commitment to Power Africa to $5bn

15. BH24

16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
1 August 2014
Energy
(Megawatts)
Hwange 669 MW
Kariba 720 MW
Harare 20 MW
Munyati 26 MW
Bulawayo 28 MW
Imports 0 MW
Total 1463 MW
1 August - Sixteenth Annual General Meeting
of the members of Econet Wireless Zimbabwe
Limited, Place: Econet Park, 2 Old Mutare Road,
Msasa, Harare, Time; 10.00am
Seed Co Limited 19th Annual General Meet-
ing Venue: Seed Co Administration Block at Sta-
pleford Date: Wednesday 20 August Time: 12:00
hours
National Tyre Services Limited 52nd Annual
General Meeting Venue : Boardroom, Stand
4608, Corner Cripps/Seke Roads, Granite-
side, Harare Date: 20 August 2014 Time: 14:30
hours
THE BH24 DIARY

17. BH24

18. 18 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Hunyani 40.40 3.51 Powerspeed -6.25 1.50
Turnall 33.33 4.00 CFI -4.98 2.10
starafricacorporation 13.04 2.60 Edgars -3.85 12.50
Meikles 12.12 18.50 African Sun -3.57 2.70
Barclays 9.49 4.50 BNC -1.18 8.40
CBZ 8.33 13.00 TA Holdings -0.12 16.00
Dairibord 4.17 12.50
Padenga 2.50 8.20
Innscor 1.35 76.01
Old Mutual 0.76 265.00
Indices
Index Previous Today Move Change
Industrial 184.95 183.76 -1.19 points -0.64%
Mining 61.13 66.53 +5.40 points +8.83%
Stocks Exchange

19. BH24

20. 20 AFRICA StockS
Botswana 8,664.65 -11.96 -0.14% 12July
Cote dIvoire 246.37 +2.18 +0.89% 07Mar
Egypt 7,949.60 -75.68 -0.94% 06Mar
Ghana 2,295.37 -14.73 -0.64% 24July
Kenya 4,896.77 -13.83 -0.28% 21July
Malawi 12,662.47 +0.00 +0.00% 07Mar
Mauritius 2,074.51 -3.51 -0.17% 07Mar
Morocco 9,544.10 +21.01 +0.22% 07Mar
Nigeria 42,285.85 -258.48 -0.61% 25July
Rwanda 131.27 +0.00 +0.00% 24Oct
Tanzania 2,018.97 +25.40 +1.27% 07Mar
Tunisia 4,624.39 -39.32 -0.84% 07Mar
Uganda 1,503.90 +0.81 +0.05% 10Sep
Zambia 4,242.74 +14.95 +0.35% 10April
Zimbabwe 184.37 +0.77 +0.42% 29July
African stock round up Commodity Prices
Name Price
Crude Oil 1,300.91 -0.21%
Spot Gold USD/oz 1,292.63 -0.26%
Spot Silver USD/oz 19.38 -0.46%
Spot Platinum USD/oz 1,421.25 -0.33%
Spot Palladium USD/oz 798.50 -0.64%
LME Copper USD/t 6,770 -0.18%
LME Aluminium USD/t 1,780 -1.17%
LME Nickel USD/t 18,230 -1.73%
LME Lead USD/t 2,095 -1.41%
Quote of the day — "For it mat-
ters not how small the
beginning may seem to be.
What is once well
done, is well done forev-
er." - Henry David Thoreau
Globalshareholder.com

21. BH24

22. Gold headed for a third weekly loss in
the longest run of declines since Sep-
tember as US employment data may
add to signs that the world’s largest
economy is gaining traction.
Gold for immediate delivery fell as
much as 0.3 percent to $1,279.30 an
ounce, the lowest level since June 19,
and was at $1,283.85 at 2:20 p.m. in
Singapore, according to Bloomberg
generic pricing. The metal declined
3.4 percent in July to post the biggest
monthly loss this year as the Bloomb-
erg Dollar Spot Index completed the
largest advance since May 2013.
Gold slumped 28 percent last year on
speculation that the Federal Reserve
would reduce monthly bond pur-
chases, which were cut this week for
a sixth time.
Data today may show U.S. employers
added more than 200,000 jobs for a
sixth month after a report yesterday
showed claims of unemployment ben-
efitsinthepastmonthsanktoaneight-
yearlow.Bullionfailedtorallythisweek
even as weaker corporate results sent
global equities tumbling amid Argenti-
na’s debt default.
“Gold prices continued to pull back as
stronger-than-expected reports on the
U.S. economy damped demand for
safety plays,” said Sarah Xie, a Hong
Kong-based analyst at Wing Fung
Financial Group Ltd. “Investors are
reluctant to take big positions ahead of
the U.S. jobs data.”
Gold for December delivery climbed
0.2 percent to $1,284.90 an ounce on
the Comex in New York.
Assets in the SPDR Gold Trust, the
largest bullion-backed exchange trad-
ed-product, were unchanged for a fifth
day yesterday at 801.8 metric tons. ―
Bloomberg •
22 INTERNATIONAL NEWS
Gold heads for third weekly drop on US economy signs

23. Southern Africa has made steady pro-
gress towards meeting the Millennium
Development Goals (MDGs) by 2015.
However, a lot more needs to be done
to sustain this momentum well beyond
the MDG timeline to ensure that the
generalsocio-economicconditionscon-
tinue to improve.
A total of eight goals, ranging from
education, health, poverty and the
environment were approved by the
global community in the year 2000
with desirable targets and measurable
indicators.
The targets aim to improve socio-eco-
nomic development in the world, par-
ticularly in developing countries.
“Africa’s substantial progress toward
many goals, targets and indicators is
beyond doubt,” according to the 2013
MDG Report.
TheSADCregionleadsinareassuchas
gender development and health.
Forexample,ofthe11best-performing
countries in achieving Goal 3 on pro-
moting gender equality and empow-
ering women, six are from southern
Africa. These are Angola, Botswana,
Mauritius, Mozambique, Seychelles
and South Africa.
According to the SADC Gender Moni-
tor 2013, all of these countries except
Botswana have achieved more than 30
percent gender representation in par-
liament.
Gender equality is firmly rooted in
SADC’s regional integration agenda
and Member States support the fun-
damental principle that both women
and men must be equally engaged in
decision-making at all levels and in all
positions of leadership.
This is reflected in the SADC Protocol
on Gender and Development that calls
for 50:50 by 2015, and in the constitu-
tions of most SADC countries that pro-
vide legal frameworks against gender
discrimination.
With regard to Goal 6 on combating
HIV and AIDS, tuberculosis, malaria,
and other diseases, five of the 15 best
performing countries are from the
SADC region.
ThefiveareBotswana,Namibia,Mauri-
tius, South Africa and Zimbabwe.
Performance towards achieving other
goals has been mixed due to vari-
ous challenges that have affected the
implementation process of the MDGs.
Thus it remains necessary to define
concrete measures to accelerate the
implementation of some of the tar-
geted goals. ― Sadc Today •
23 Analysis
MDGs: Countdown to 2015