Telecel has launched Zimbabwe's first mobile debit card called the Telecash Gold Card which allows subscribers to make transactions at POS terminals and withdraw cash from ATMs. The card offers direct integration between mobile money and retail services and aims to improve financial inclusion by extending the reach of mobile financial services to rural areas without agents. Telecel plans to expand its mobile financial services into the diaspora market and has started discussions with money transfer agents in major corridors like South Africa, the UK, Australia and the USA.

1. News Update as @ 1530 hours, Wednesday 16 July 2014
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
By Tawanda Musarurwa
Telecel has taken a step further to
drive financial inclusion in the country
by becoming the first local mobile tele-
coms firm to launch a debit card.
The debit card - Telecash Gold Card
- is linked to a subscriber's Telecash
Wallet and allows Telecash subscribers
to make transactions on all ZimSwitch
POS terminals and also enables with-
drawals from every ZimSwitch ATM
facility.
Telecel's debit card is one example of
the transformation of consumer bank-
inginwhichmobileoperatorsarebuild-
ing networks and technologies capable
of rivaling traditional banks for control
of the payment system. Telecel mobile
financial services (MFS) director Nkosi-
nathiNcubesaidthecardoffersadirect
integration between mobile money and
retailing services.
"Through mobile money we want to
improve the transacting of the pub-
lic and to uplift those who have never
really had banking experience before,
not just to give them a mobile wallet
andstoptherebuttoalsoimprovetheir
lifestyles and have more convenience,"
said Ncube.
He added that the debit card will also
extendthereachoftelecashtooutlying
areas without telecash agents. "One of
the issues why we are launching the
telecash gold card is that it broadens
our distribution network where now
you can be serviced by anyone who
has got a point of sale terminal which
is on ZimSwitch." The telecash gold
card integration is the second inte-
gration phase between telecash and
ZimSwitch. When it was launched tel-
ecash integrated to ZimSwitch for the
ZIPIT functionality where funds can
be transferred instantly from any tele-
cash wallet to any ZIPIT certified bank
account (Wallet-to-Bank) or from any
ZIPIT certified bank account to any tel-
ecash wallet (Bank-to-Wallet).
The new development means that
banked individuals can now send funds
instantly to any telecash account from
any of the existing delivery channels
already available in Zimbabwe includ-
ing POS, ATM, Mobile Banking and
Internet.
Ncube said Telecash partnered primar-
ily with CBZ to introduce the service,
with other financial service firms being
included through the ZimSwitch plat-
form. He indicated a long term objec-
tive to integrate the card with interna-
tional payment options such as VISA
Telecel drives Zim financial inclusion with new debit card

2. 2 NEWS
and Mastercard. Meanwhile, Telecel
says it is pushing the Telecash product
into Diaspora markets and that process
had reached an "advanced stage." "We
do have plans for going into the Dias-
pora market. We have already started
talking to a number of money transfer
agents in the major corridors, that is,
South Africa, the United Kingdom, Aus-
tralia, Botswana, USA, and other areas
and we anticipate to be opening up
those corridors in the next few weeks,"
said
Telecel says it has so far registered 3
600 agents on its books. •
By Lynn Murahwa
Government says there is need for
Zimbabwe's use of capital markets as
over-reliance on banking sector has
typically led to the collapse of most
financial systems.
Speaking at the Zimbabwe Stock
Exchange (ZSE) Parliamentary work-
shop this morning Deputy Minister of
Finance and Economic Development
Samuel Undenge said an over reliance
on the banking system for long term
funding can cause the collapse of the
economy because the banking sector
has ever been able to satisfy the need
for capital.
"Over reliance on the banking sec-
tor for long term funding can there-
fore result in damaging mismatches
between short banking assets and
long term lending which has often led
to the collapse of most financial sys-
tems in a number of countries.
"Besides, the banking sector has not
always been able to adequately meet
the need for capital especially long
term capital," said Undenge.
Hesaidthatthedevelopmentofcapital
markets is crucial for long term growth
prospects of the nation because capi-
tal markets affect the condition of the
economy and have become a large
part of financial services.
The ZSE is currently in the process of
setting up an Automated Trading Sys-
tem whcih should become fully opera-
tional in this second half.
The ATS is expected to enhance the
performance of the local capital mar-
kets.
"Capital market development is a crit-
ical factor for long term growth pros-
pects of our country. Capital markets
not only reflect the general condition
of the economy but also smoothen
and accelerate the process of eco-
nomic growth.
"Capital markets have become a sig-
nificant component of the financial
services as they offer a long term
resource mobilisation platform for
business communities for economic
developmental purposes," he said.
Securities and Exchange Commis-
sion of Zimbabwe CEO Tafadzwa Chi-
namo said the economic challenges
being faced are clear but it seems it
is becoming more difficult to come up
with solutions for these problems.
"Economic challenges are evident but
we seem to be running out of ideas on
how to overcome them.
Only Zimbabweans can and should
become masters of their own destiny,
we believe a vibrant and active capi-
tal market is part of the solution," he
said. •
Capital markets are more reliable than the banking sector: Govt

3. BH24

4. 4 NEWS
Zimbabwean companies not taking up excess power
By Rumbidzayi Zinyuke
Zesa Holdings is exporting all the
energy that is being generated at
night because Zimbabwean com-
panies are not taking up the excess
electricity to run their operations
more conveniently, an official said
yesterday.
Giving oral evidence to the Parliamen-
tary Portfolio Committee on Mines
and Energy, Zesa chief executive
Josh Chifamba said power generated
during the night cannot be stored for
use at another time so it is being sold
because there are no takers on the
local market.
“We have seen that customers are
not keen to do off peak work. When
we ask companies why they do not
work off peak, they say they have
no management to supervise work
at night, farmers also say it is a chal-
lenge to irrigate at night.
But big mines run their compressors
and other machinery during the night
so they take up some of the electric-
ity,” he said. Chifamba said although
Zesa had introduced ‘time of use tar-
iffs’ which made it cheaper for com-
panies to use electricity at night when
demand is low, there was still resist-
ance from the consumers.
“You need to have the right pricing
mechanisms so essentially when
demand is low we can sell electricity
at a lower price. But we wait for the
customers to take up that tariff,” he
added.
He said Zesa has had meetings with
sector bodies telling them about the
advantage of working off peak.
Parliamentarians also heard that the
power utility has reactivated the gey-
ser control system which switches of
geysers during peak hours to save
electricity.
Chifamba said they have harvested
42 megawatts from the exercise and
had succeeded in switching demand
from the peak time and placing it
elsewhere. •

5. BH24

6. 6 NEWS
By Sifelani Tsiko
Africa needs to promote the under-
standing of biotechnology to ensure
broad public awareness, dialogue and
debate on current and future poten-
tial agricultural applications, biosafety
experts say.
African Centre for Gene Technologies
(ACGT) director Dr John Becker told
participants at a Assuring Agricultural
and Food Safety of Genetically Mod-
ified Organisms (GMOs) in Southern
Africa (GMASSURE) workshop held
in South Africa recently that greater
awareness of modern biotechnologies
was critical in boosting Africa’s food
output.
“It is only through greater public
awareness of modern biotechnolo-
gies that African can increase agricul-
tural productivity and ensure access
to safe food,” he said. “Once people
are aware, benefits of modern bio-
technology should be balanced with
potential health, environmental and
socio-economic impacts.” Scientific
institutions, government regulators
and other stakeholders from across
Africa met at the workshop organ-
ized by GMASSURE to explore ways
of raising awareness on modern bio-
technologies as well as ways of devel-
oping effective safety and regulatory
systems for biotechnology products.
Dr Jonathan Mufandaedza, head of
the National Biotechnology Authority
of Zimbabwe said concern was raised
at the workshop over the lack the
expertise to support decision mak-
ing on the relevance and applicability
of new biotechnologies, particularly
genetically modified (GM) agricultural
crops that contribute to increased
agricultural productivity and ensure
access to safe food. “African biosafety
regulators were challenged to com-
municate biotech issues more effec-
tively to all people and to separate
biotechnology and GM technology
issues,” he said. Dr Mufandaedza
said the workshop also noted that
there was lack of knowledge among
farmers, businesses and the general
public on how to absorb and use new
biotechnological solutions to increase
agricultural productivity and lower
vulnerability to plant diseases and
pests.
“Africa needs support to strengthen
the capacity of scientists, govern-
ment regulators and policy makers in
biosafety and biotechnology,” he said.
“Zimbabwe could benefit from the
capacity building activities (of GMAS-
SURE and its partners) to promote
the understanding of agricultural
biotechnologies among farmers and
consumers. “We need to involve the
industrial sector because they are
part and parcel of the whole value
chain of biotech products and ser-
vices.”
African biosafety experts also said
knowledge of agricultural value
chain stakeholders (including scien-
tists, regulators and policy makers)
in biosafety assessment and risk
governance was critical to facilitate
informed decision making on the use
of biotech products in agriculture to
promote sustainable agriculture and
food security on the continent. •
African governments urged to promote biotech issues

7. AdM-DI156506-
BH24

8. BH24 Reporter
Government should ensure that the
process of formalising the informal
sector is not beneficial to one side
only but also makes the SMEs com-
fortable to work in a formal environ-
ment.
Tashmia Ismail, a PhD fellow with
GIBS, South Africa told delegates at
a CEO network seminar that SMEs
need to see the benefits of formalis-
ing through improved services from
Government.
“You put people on the radar when
you ask them to formalise. But is the
taxman doing his part to make sure
these informal people get value for
their money? We keep talking about
formalising without talking about
what’s in it for these informal busi-
nesses,” she said.
Government has been on a drive to
tap into the $7,4 billion being gener-
ated by the informal sector annually
through formalising their operations.
However, formalising means SMEs
will be burdened with extra taxes by
while they are already struggling to
pay the 25 percent presumptive tax
they already have to pay to Zimra.
Ismail said SMEs will only formalise if
they know that they will get reliable
services like constant electricity and
water supply as well as good roads.
Speaking at the same event, Minis-
try of Small to Medium Enterprises
Secretary Evelyn Ndlovu said govern-
ment was working on making sure
SMEs benefit from formalising their
operations.
She also said the fastest way to for-
malise SMEs is to link them to large
corporate through their linkages pro-
gramme.
“More than 85 percent of all SME
activities is informal so if you don’t
link your businesses with these small
enterprises, your market will continue
to shrink as they take up more and
more customers,” she said.
She said her ministry was working
with big companies such as Econet,
Cairns and Ok Zimbabwe to ensure
that most SMEs are financially
included in the economy.
“We are already linking Cairns with
small holder farmers who will supply
their fresh produce to them to elim-
inate the need to import. So at the
end of the day both the company and
the small scale farmers benefit from
such a move,” she said. •
8 NEWS
Informal sector needs good service from Govt to formalise

9. BH24

10. Low activity marked today's trades
as the equities market went down
marginally by 0.02 percent to record
a third day of losses since the begin-
ning of the week.
The industrial index slipped 0.04
points to close at 186.08 points.
Fidelity Life lost a cent to close at
8.50 cents, while Zimplow eased 0.50
cents to settle at 8 cents and Mash
retreated 0.20 cents to trade at 2.30
cents.
On the upside, ABC Holdings was the
only counter in the positive territory
as it gained 5 cents to 70 cents after
reports that Altas Mara Co-Nvest Ltd
said negotiations to acquire 50,1 per-
cent controlling stake in ABC's pan
African banking BancABC are still
on-going.
The mining index shed 0.85 points
(or 1.49 percent) to close at 56.12
points on the back of Hwange's loss.
The coal miner slipped 0.70 cents to
trade at 4.80 cents.
Turnover was slightly lower at $730k
from yesterday's $752K.
Bindura, Falgold and Riozim main-
tained previous trading levels. ―
BH24 Reporter •
10 ZSE REVIEW
Equities market in third consecutive losses

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BH24

12. Zimbabwe has always had very strong
political and economic relations with
countries of the South.
This is now the perfect time, perhaps
more than ever, to harness those rela-
tionships for the economic benefit of
the country.
Why now?
The major emerging economies of
India, China, Russia, South Africa and
Brazil have reached advanced stages
of establishing their own financial insti-
tution.
The five nations - or BRICS as they are
commonly known - have taken sig-
nificant steps to break away from the
dominance of Western financial institu-
tions, and therefore control.
Yesterday the BRICS leaders signed
the long-awaited document to estab-
lish the $100 billion BRICS Develop-
mentBankandareservecurrencypool
worth over another $100 billion.
Although one of the main roles of
the new financial institution will be to
financeinfrastructureanddevelopment
projects in BRICS countries, it will also
become one of the major multilateral
development finance institutions in the
world, alongside the World Bank and
the International Monetary Fund.
In this respect and in view of its origins
the BRICS Development Bank strives
for a more multi-polar world, at least
financially.
This should be a new global financier
that understands the situations and
contexts of developing countries. For
countries such as Zimbabwe, this
should be a welcome development and
a relief from the Bretton Woods Institu-
tions (the World Bank and IMF)'s pre-
scriptive approach.
These two Western institutions have
thus far been enjoying a degree of
monopoly in global development
financing services, at the expense of
countries in the developing countries.
But, a competitive international devel-
opment banking configuration - which
the new BRICS Development Bank
seeks to frame - will also benefit
the lesser emerging economies and
developing nations in a number of
ways. First, it will put a check on the
Bretton Woods Institutions' damaging
prescriptive policies (Zimbabwe and
many other countries' experience of
the Economic Structural Adjustment
Programme (ESAP) in the early 1990s
testifies to this).
Second, it could mean greater access
to development facilities at cheaper
rates for developing countries such
as Zimbabwe. Third, as afore-men-
tioned, this will be a global financier
that understands the issues that face
developing countries.
For instance, the fact that the $100 bil-
lion fund will focus on infrastructure is a
indication of this understanding.
Africa, for example needs to overcome
massive infrastructural deficit in the
continent, with studies showing that
the continent requires about $75 bil-
lion in infrastructure investment yearly
to address this deficit. Isn't it a bonus
that Zimbabwe has historically good
ties with most - if not all - of the BRICS
nations? •
12 BH24 COMMENT
BRICS Development Bank can be a boon for Zimbabwe

13. BH24

14. South Africa's rand weakened against
the dollar on Wednesday as a strike
by 220,000 workers in the metals sec-
tor entered its third week and looked
unlikely to be resolved soon.
The rand slipped 0.2 percent from its
close in New York to 10.7300 at 0555
GMT.
The local unit made modest gains
against the U.S. currency in the previ-
ous session buoyed by strong demand
for government bonds, before retreat-
ing towards 10.75, a recent resistance
level.
"Technically the rand is still within the
longer term bull trend. However yes-
terday's move back below 10.6500
should delay the expected move to
10.96-11.00," Standard Bank dealer
Warrick Butler said in market note.
On Tuesday employers in the metals
and engineering sector withdrew their
offer of a 10 percent annual wage
increase after striking union NUMSA
maintained its demand for increases of
between 12 and 15 percent.
The strike has disrupted the supply of
components to automobile makers,
pushing Toyota, GM and Ford to halt
production at their assembly plants.
In fixed income, government bonds
were broadly flat with the paper due in
2015 and the paper maturing in 2026
bothadding1.5basispointstoyieldsof
6.67 percent and 8.27 percent respec-
tively. ― Reuters •
14 REGIONAL News
Rand slips as hopes for end to metals strike fade

15. BH24

16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
14 July 2014
Energy
(Megawatts)
Hwange 421 MW
Kariba 750 MW
Harare 45 MW
Munyati 29 MW
Bulawayo 0 MW
Imports 0 MW
Total 1245 MW
16July -MobileMarkets&TelecomsForumCon-
ference & Exhibition, Place: Holiday Inn (Harare),
Time: 8:00am
23 -25 July - Mine Entra, Place: Zimbabwe Inter-
national Exhibition Centre, Bulawayo
24 July - OK Zimbabwe Thirteenth Annual Gen-
eral Meeting Place: OKMart Functions Room,
First Floor, OKMart, 30 Chiremba Road, Hillside, Time:
15:00 hours.
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
THE BH24 DIARY

17. BH24

18. 18 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
ABC 7.69% 70.00 Hwange -12.72% 4.80
Fidelity -10.52% 8.50
Mashonaland -8.00% 2.30
Zimplow -5.88% 8.00
Indices
Index Previous Today Move Change
Industrial 186.12 186.08 -0.04 points -0.02%
Mining 56.97 56.12 -0.85 points -1.49%
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 2,352.45 +6.43 +0.27% 27June
Kenya 4,885.09 +51.07 +1.06% 30June
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 42,482.49 +714.93 +1.71% 30June
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 186.56 -0.52 -0.28% 30June
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%
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21. BH24

22. Leaders of the five BRICS nations
agreed on the structure of a $50 billion
development bank by granting China its
headquarters and India its first rotating
presidency. Brazil, Russia and South
Africa were also granted posts or units
in the new bank.
The leaders also formalized the crea-
tion of a $100 billion currency exchange
reserve, which member states can tap
in case of balance of payment crises,
according to a statement issued at a
summit in Fortaleza, Brazil.
Both initiatives, which require legislative
approval, are designed to provide an
alternative to financing from the Inter-
national Monetary Fund and the World
Bank, where BRICS countries have
been seeking more say.
Themeasurescoincidewithaslowingof
economic growth in the five countries to
about 5.4 percent this year from 10.7
percent in 2007, according to econo-
mists surveyed by Bloomberg.
“The BRICS are gaining political weight
and demonstrating their role in the
international arena,” Brazilian President
Dilma Rousseff said after a signing cer-
emony.
Until the eve of the summit, India and
South Africa had vied with China to
host the headquarters of the bank,
dubbed the New Development Bank.
The administration of Indian Prime Min-
ister Narendra Modi gave in after it was
reminded that his country’s previous
administration had agreed to Shanghai
as the bank’s headquarter, according to
an Indian official, who requested not to
be named because the talks were not
public. ― Bloomberg •
22 INTERNATIONAL NEWS
BRICS agree on $50 billion bank with something for everyone

23. By Leonid Bershidsky
The new international financial institu-
tions that Brazil, Russia, India, China
and South Africa are creating this week
at their summit meeting in Brazil would
have made little sense in the world of
Western triumph Francis Fukuyama
described in his 1989 article, "The End
of History?" That world, however, didn't
materialize.
In this one, the BRICS nations' rebellion
against Western-run pillars of the global
financial system is more than just a
political gesture: It is a threat and a bar-
gaining tool. The World Bank has a sub-
scribed capital of $223.2 billion, paid in
or payable by 188 countries. The U.S. is
the biggest shareholder with 16 percent.
China is the third biggest, with 5.76 per-
cent, which makes its share of the World
Bank's capital $12.86 billion. So the $10
billion it agreed to put into the BRICS
Development Bank won't be much
smaller. Russia, India, Brazil and South
Africa, all contributing equally, will pay
in more money to the BRICS bank than
theydototheWorldBank.Thecontribu-
tions that nations make to the Interna-
tional Monetary Fund -- which has $315
billion in immediately available resources
andmorethan$1trillionitcangetunder
certain conditions -- are also determined
by the relative sizes of their economies.
The U.S., again, is the biggest contrib-
utor. Russia's IMF quota is $9.19 billion
-- roughly half the $18 billion it will pro-
vide to the BRICS nations' last-resort
pool,the$100billionContingentReserve
Arrangement. China is contributing $41
billion to the reserve, almost three times
its IMF quota.
These new institutions should not be
easily dismissed: They are a big deal
for the contributing countries. They will
not rival the World Bank and the IMF in
size, yet they don't need to: For now, at
least, they will be far less global in terms
of their responsibilities.
The reasons for building up alternatives
totheIMFandtheWorldBankareinpart
political.Ukraine,forexample,isnowthe
IMF's fourth-largest debtor. Funding for
the government, doing its best to leave
the Russian sphere of influence, would
not have been on President Vladimir
Putin's priority list. Indeed, Russia
appearstobefinancingarebellionagainst
the government in Kiev, and Putin must
gnashhisteethwhenhethinksaboutthe
further IMF disbursements -- more than
$13 billion -- that were pushed through
forUkrainebyitsWesternallies.TheIMF
is promising to reform itself, giving more
power to the large developing nations:
By January, China should have the third
biggest quota, and Brazil, India and
Russia should all be in the top 10. Putin,
however, thinks changes to the system
are being "unreasonably delayed." The
U.S. Congress is in no rush to approve
the changes, and the year-end deadline
might be moved again. Besides, even
after the reform, the West will have con-
siderable power in deciding how to allo-
cate funds. Although the IMF says its cri-
teria are purely economic, Putin, for one,
knows that isn't so. He remembers how
Russia begged for a bailout in 1998, just
beforedefaulting,receivingoneatatime
the country did not meet any of the pol-
icy criteria that the international lenders
of last resort usually set out.
The IMF's other big debtors are not ones
the five big developing nations care
about:Whywouldtheygive$23.5billion
to Greece, $22.9 billion to Portugal and
$19.4 billion to Ireland if these nations'
share in their trade balances are negli-
gible? By helping to bankroll bailouts on
the periphery of the European Union,
the BRICS countries propped up a global
financial system that doesn't necessarily
benefit them. The BRICS paid up, but
they could easily exist in a world without
a euro area. They resent the de facto
power the U.S. and EU have over their
money.
The willingness of the BRICS to commit
more resources to their new institutions
than the existing ones suggests they
are serious about changing the system.
The U.S. and its allies are left guessing
whether the BRICS countries might
eventually stop funding the IMF and
the World Bank. That will not happen in
the near future, in part because China,
India and Brazil are among the countries
with the biggest exposure to World Bank
funding, and in part for political reasons:
No one, except perhaps Putin, wants to
split the world into hostile camps. The
threat to abandon the post-World War
II financial system unless it changes
quicklyisreal,however,andtheWestwill
have to accommodate the big emerging
nations if it wants to hold on to a few
shreds of Fukuyama's wishful thinking.
― BloombergView •
23 Analysis
The End of the World Bank?