Zimbabwe has fully paid off its debt to Zambia owed for the Central African Power Corporation (CAPCO), allowing work to commence on the $3 billion Batoka Hydro Power Project, expected to generate 2,400 megawatts. The project aims to address Zimbabwe's power shortages, with an agreement reached between Zimbabwe and Zambia. Additionally, Premier African Minerals announced financing for its RHA Tungsten Mine from a local bank, demonstrating confidence in the project.

1. By Tawanda Musarurwa
HARARE -The Central African
Power Corporation (CAPCO)
debt that Zimbabwe owed
to Zambia, which has been
threatening commencement of
work on the $3 billion Batoka
Hydro power project, has been
fully paid off, an official has
said.
The Batoka Hydro power pro-
ject is expected to generate 2
400 megawatts (MW) - a joint
project between the two coun-
tries. The debt was for the
shared cost of the Kariba Dam
construction and associated
infrastructure in the early
1950s.
It also included proceeds of
the sale of assets belonging
to CAPCO, a power firm jointly
owned by Zimbabwe and Zam-
bia when the two countries
were still members of the Fed-
eration of Rhodesia and Nyas-
aland, which was dissolved in
News Update as @ 1530 hours, Tuesday 16 February 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
CAPCO debt fully paid off

2. 1963.
Capco was running the Kar-
iba power project for the two
countries, but was disbanded
in 1987. Zimbabwe Electricity
Supply Authority (ZESA) busi-
ness development planning
executive Engineer Simon
Mutambi told a ZimAsset Con-
ference that the local power
utility had paid off the CAPCO
debt.
“The strategies which we have
employed to achieve this is,
the first one is what we call
the ex-CAPCO assets. Basi-
cally these are the assets
which belonged to the prede-
cessor of ZESA, CAPCO.
“After the break-up of CAPCO
there areas where there was
no agreement between Zam-
bia and Zimbabwe, so as a
result to develop Batoka there
was need to come to a con-
sensus and one of the issues
standing in the way was the
payment of the outstand-
ing debt with regards to this
power company.
“And I am happy to say that
this debt is fully paid and we
are now ready to go ahead
and implement the Batoka
project,” he said.
Last week, Energy and Power
Development Minister Sam-
uel Undenge told reporters
that the Batoka project would
commence next year, follow-
ing ongoing feasibility studies
by the World Bank that should
be completed around June this
year.
Zimbabwe and Zambia have
already signed a Memoran-
dum of Understanding (MoU)
to jointly construct the Batoka
hydro plant.
The Batoka project will come
as a long-term solution to
Zimbabwe’s debilitating power
shortages where available
capacity tends to reach circa
1 300MW compared to peak
demand of 2 200MW.
●
2 news

3. BH243

4. BH24 Reporter
HARARE - Multi-commodity
mining and resource devel-
opment company – Premier
African Minerals – says a
local bank has offered to pro-
vide direct finance to its 49
percent-owned RHA tungsten
mine.
The project is owned by RHA
Tungsten, a joint-venture
between ZimDiv Holdings,
a subsidiary of Premier, and
the National Indigenisation
and Economic Empowerment
Fund (NIEEF) on behalf of the
Government of Zimbabwe (51
percent).
Without specifically men-
tioning the name of the local
financial institution, the min-
ing group said:
“As part of the continuing
preparations in respect of
underground ore processing,
RHA has increased its work-
ing capital facilities with a
$200 000 general credit facil-
ity from a local bank, which
may be utilised for payment
of direct operating expenses
associated with the produc-
tion of wolframite concen-
trates.
“The facility bears interest at
the bank’s costs of funds plus
a margin of 8,75 percent and
is guaranteed by Premier.
“The on-demand facility is for
an initial term until October
31, 2016.”
Premier CEO Mr George Roach
said it was a new develop-
ment that the RHA project
from a Zimbabwean financial
institution instead of internal
resources.
“It is most encouraging that a
local banking institution has
a level of confidence in RHA
such that they are prepared
to extend a facility for normal
working capital requirements
linked to shipment of concen-
trates.
“Historically, Premier has met
100 percent of all expenses
incurred by RHA,” he said.
The RHA tungsten mine, which
is located approximately
20 kilometres south-east of
Hwange and 270km north of
Bulawayo is Premier’s flag-
ship operation, although the
AIM-listed group has several
operations in Southern and
Western Africa.●
4 news
Local bank finances RHA tungsten project

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6. By F unny Hudzerema
HARARE - ZimTrade is set to
participate at the Agritech Expo
to be held in Chisamba, Zambia
from April 14 to16, 2016, which
is aimed at bringing experts in the
agriculture sector together.
ZimTrade is mobilising local com-
panies to participate at the Expo,
which showcases farm equip-
ment, agricultural inputs, poultry
and fish farming, agro processing,
among others.
According to the organisers of
the expo, the event is focused on
bringing together end users and
farming professionals to meet
directly with vendor companies. It
is a business to-business platform
for agricultural professionals,
small scale farmers and commer-
cial enterprises.
This year’s Expo will incorporate
more interactive feature areas.
The new interactive features
include, but are not limited to,
crop trials, combine harvester
arable farming trials as well as
irrigation demonstrations.
International players from coun-
tries such as Germany, United
Arab Emirates, United States of
America and UK, will be partici-
pating at the Show.
In 2015, about 12 000 agricultural
business decision makers and
over 110 exhibitors from 29 coun-
tries in Africa, America, Europe
and Middle East participated at
the Expo.●
6 news
Zim companies to participate at Zambian agric export

7. BH247

8. BH24 Reporter
HARARE – The value of trans-
actions processed through the
National Payment Systems
(NPS) increased to $1,1 billion
in the week ending January 29,
2016 up from $975,52 million in
the prior week mainly due to a
higher number of transactions
processed through the Real Time
Gross Settlement (RTGS) sys-
tem.
According to a weekly economic
update by the Reserve bank of
Zimbabwe, RTGS transactions
soared 82,70 percent to $968,73
million up from $791,28 million
registered in the previous week.
Mobile based transactions
increased by 7,58 percent stood
at $4,3 million as compared to
$4,1 million in the prior week.
The mobile transactions
accounted for 3 percent of the
total value of transactions pro-
cessed.
Transactions processed through
Automated Teller Machines and
Point of Sale accounted for 6,10
percent and 3,38 percent of NPS
transactions processed in the
period under review period at
$71,4 million and $39,6 million
respectively.
Meanwhile, during the period
under review, commercial
banks’ weighted lending rates
for individuals and corporate
clients declined marginally to
12,08 percent and 7,38 percent,
respectively.
Savings deposit rates remained
unchanged at 3,20 percent dur-
ing the period under review.
Average rates for deposits of
one-month and three-month
tenors, however, decreased from
6,91 percent and 7,22 percent in
the previous week, to close the
week under review at 6,90 per-
cent and 7,21 percent, respec-
tively.
.●
8 news
RTGS drive NPS rise

9. BH249

10. HARARE - The local bourse
losing streak continued today
with the mainstream industrial
index hitting new lows.
The industrial index registered
the lowest level since 30 April
2009 after dropping 0.59 to
settle at 99.80 as Innscor
declined by $0,0050 to close
at $0,1900 while Barclays
and beverages giant Delta
each shed $0,0030 to trade at
$0,0350 and $0,5200 respec-
tively.
Giant retailer OK Zimbabwe
closed at $0,0350 after a
$0,0025 loss.
Old Mutual was the only coun-
ter to trade in the positive
gaining $0,0024 to settle at
$1,8024.
First Mutual, Pearl, Simbisa and
starafrica remained unchanged
at $0,0220, $0,0220, $0,1450
and 0,0080 in that order.
The mining index was steady
at 18.74 as Bindura, Falgold,
Hwange and RioZim main-
tained previous price levels at
$0,0090, $0,0050, $0,0300
and $0,1040, respectively
. - BH24 Reporter ●
ZSE10
Equities market hits low ebb

11. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Old Mutual 0.13 180.24 Barclays -7.89 3.50
OK Zim -6.66 3.50
Innscor -2.56 19.00
Delta -0.57 52.00
Index Previous Today Move Change
Industrial 100.39 99.80 -0.59 points -0.59%
Mining 18.74 18.74 +0.00 points +0.00%
11 zse tables
ZSE
Indices
Stock Exchange
Previous
02 03
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12. 12 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
16 February 2016
Energy
(Megawatts)
Hwange 476 MW
Kariba 285 MW
Harare 30 MW
Munyati 26 MW
Bulawayo 23 MW
Imports 0 - 350 MW
Total 1250 MW
—18 February 2016 - 70th Annual General Meeting of the members of CAFCA ; Place: Boardroom at the company’s registered office
at 54 Lytton Road, Workington, Harare; Time: 12:00 hours
—23 February 2015 - 38th Annual General Meeting of the members of Powerspeed Electrical Limited; Place: Powerspeed Board-
room, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside, Harare; Time: 1100 hours
25 February 2016 - Extraordinary General Meeting (“EGM”) of the Shareholders of Radar Holdings Limited; Place: Tanganyika
House, 6th Floor Boardroom, Harare; Time: 0900 hours...
25 February 2016 - The 49th Annual General Meeting of Mashonaland Holdings Limited; Place: The Boardroom, 19th Floor, ZB Life
Towers, 77 Jason Moyo Avenue, Harare; Time: 1200 hours...
26 February 2016 - The Sixty-ninth Annual General Meeting of Ariston Holdings Limited; Place: Ariston Holdings Limited Main
Boardroom, 306 Hillside Road, Msasa Woodlands, Harare: Time: 14.30 hours:
THE BH24 DIARY

13. JOHANNESBURG - South
Africa's rand was weaker in
early trade on Tuesday, giv-
ing up some of the gains trig-
gered by the easing of global
risk aversion driven by higher
oil prices.
Stocks were set to open flat
at 0700 GMT, with the JSE
securities exchange's Top-40
futures index inching up 0,16
percent.
By 0645 GMT the rand had
slipped 0,12 percent to
15.7360 per dollar, wilting
against a greenback boosted
by a return of faith in the
United States' economic
recovery that investors bet
will lead to higher interest
rates there in 2016.
Bonds were firmer as yields
fell, with the benchmark gov-
ernment issue due in 2026
shedding 2.5 basis points to
9,135 percent.
Despite gaining more than 3
percent against the dollar in
the past two weeks, analysts
expect the rand's rally to run
into obstacles in the run up to
Finance Minister Pravin Gord-
han's budget speech next
Wednesday.
"Mr Gordhan will likely pres-
ent an extremely austere
Budget next week," analysts
at NKC African Economics
said.
"He needs to send a strong
signal to rating agencies and
foreign investors that South
Africa is committed to fis-
cal consolidation in wake of
December's finance minister
debacle."
Ratings firms Fitch and
Standard and Poor's both
have South Africa's debt one
level above subinvestment,
while fellow agency Moody's
rates the country two levels
above junk, but with a 'nega-
tive' outlook. – Reuters●
regioNAL News13
Rand backtracks against firmer dollar,
stocks flat
Moody's downgrades Anglo American's
debt to "junk"
Miner Anglo American Plc's
debt was downgraded fur-
ther into "junk" territory by
Moody's Investor Service,
which cited a deterioration
in commodities market con-
ditions and doubts over how
long it would take the com-
pany to reduce debt levels.
Moody's downgraded the
company to (P)Ba3 from (P)
Baa3, and said the outlook
on the ratings was negative.
Moody's said it does not
expect Anglo American to
generate enough operating
cash flows to deliver sub-
stantial organic debt reduc-
tion in the next two years.
"Pending further announce-
ments by the company, the
rating agency believes that
divestments of non-core
assets would be difficult
to execute in the current
environment, particularly at
valuations to allow delev-
eraging from the current
level," Moody's said in a
statement.
It added that the negative
outlook reflected uncer-
tainty that Anglo would be
able to execute its restruc-
turing.
The commodities slump has
sent share prices of mining
companies tumbling, with
Anglo falling by three-quar-
ters in 2015 and the FTSE
Mining Index nearly halv-
ing.
Peer Glencore Plc, which
saw its share price fall 70
percent in 2015, was down-
graded by Moody's to one
notch above junk in Decem-
ber.
Anglo American announced
in December that it would
sell three-fifths of its assets
and cut tens of thousands of
jobs to cope with the slump.
Anglo is expected to report
full-year results on Tuesday.
The company's stock closed
up 5 percent at 393.05
pence on Monday
– Reuters●

14. OBrent crude advanced above
$34 a barrel as Saudi Arabia is
said to meet with Russia in Doha
on Tuesday to discuss the mar-
ket.
Futures climbed as much as 4,3
percent in London, rising for a
third day. The increase boosted
shares of Asian energy compa-
nies, which led gains in equities
across the region. Saudi Ara-
bia’s Oil Minister Ali al-Naimi will
speak with his Russian coun-
terpart Alexander Novak in the
Qatari capital, according to a
person familiar with the talks,
who asked not to be identi-
fied because they are private.
Venezuela will also attend and
the person didn’t say what the
agenda of the meeting will be.
Venezuela has lobbied export-
ers including Russia, Iran and
Saudi Arabia to arrange a meet-
ing between OPEC members and
other suppliers in an attempt to
reach an agreement to balance
the market. Oil is still down
about 7 percent this year amid
the outlook for increased Iranian
exports and BP Plc predicts the
market will remain “tough and
choppy” in the first half as it con-
tends with a surplus of 1 million
barrels a day.
“The fact that there is going to
be a meeting is an advance,”
Ric Spooner, a chief analyst at
CMC Markets in Sydney, said
by phone. “There’s obviously a
long way to go. The consensus
view is that we’re about 12 to 18
months from achieving a balance
in the oil market, even by main-
taining the status quo. Making a
decision to coordinate a supply
reduction would just be ceding
share to other producers.”
Brent for April settlement
advanced as much as $1,44
to $34,83 a barrel on the Lon-
don-based ICE Futures Europe
exchange and was at $34,74 at
2:45 p.m. in Hong Kong. The
contract rose 3 cents Monday
to close at $33,39 after an 11
percent gain Friday. The Euro-
pean benchmark crude was at a
premium of $1,65 to West Texas
Intermediate for April.
Russian Doubts
WTI for March delivery climbed
as much as $1,50, or 5,1 per-
cent, to $30,94 a barrel on the
New York Mercantile Exchange
from the Friday close. There was
no settlement Monday because
of the US Presidents Day holiday.
Trades will be booked Tuesday
for settlement purposes. The
contract gained 12 percent to
settle at $29,44 on Friday after
dropping 19 percent the previous
six sessions.
Energy companies were the big-
gest gainers on the MSCI Asia
Pacific Index on Tuesday, with
Australia’s Origin Energy Ltd.
jumping 7 percent in Sydney,
PetroChina Co. increasing 6,6
percent in Hong Kong and PTT
Pcl rising 2,6 percent in Bang-
kok.
Russia faces numerous obsta-
cles in cooperating to cut output,
even if President Vladimir Putin
decides it’s in the national inter-
est. Reducing the flow of crude
might damage the nation’s fields
and pipelines, require expen-
sive new storage tanks or sim-
ply take too long. Production
from a shut-in well might never
be restored in full, according to
Maxim Nechaev, director for Rus-
sia at consulting firm IHS Inc.
Russia’s largest oil producer Ros-
neft OJSC will supply its tradi-
tional markets with oil in a “com-
petitive battle,” Chief Executive
Officer Igor Sechin said in London
last week. He expressed doubts
about any coordinated action by
crude-exporting nations to curb
output.
Iran, which was the second-big-
gest producer in the Organi-
sation of Petroleum Exporting
Countries before sanctions were
intensified in 2012, is seeking to
boost output by 1 million barrels
a day and regain market share
after penalties were lifted. The
nation has loaded its first cargo
to Europe, while Chinese and
Spanish companies have also
booked shipments. - Bloomb-
erg●
internatioNAL News14
Brent jumps above $34 as Saudis said to plan talks with Russia

15. *Hedge funds are taking
profits and world's most
accurate gold price fore-
caster still sees triple digits
this year
By Frik Els
Global equities and crude oil
were full rebound mode on
Monday and stock futures in
the US pointed to another rally
when markets re-open after
the President's day long week-
end.
That gave traders in gold
futures in New York a good
excuse to take profits after
last week's jump in the gold
price to a year high above $1
250 an ounce.
In early dealings gold for
delivery in April, the most
active contract, fell to a low of
of $1 202,70 an ounce, a drop
of 3 percent or more than $36
compared to Friday's close and
nearly 5 percent below last
Thursday's intra-day high.
Large futures speculators or
"managed money" investors
such as hedge funds dramat-
ically raised bearish bets on
gold during the final months
of 2015. Net short position-
ing – bets that gold could be
bought back at a lower price
in the future – hit a record 2,4
million ounces during the final
trading week of 2015.
This year however hedge funds
have been non-stop buy-
ers pushing overall position-
ing firmly back in the black.
According to the CFTC's weekly
Commitment of Traders data
released on Friday speculators
doubled net long positions –
bets that prices will rise – to
7,3 million ounces.
That figure is now above the
three-year average for long
positions and represents a
remarkable turnaround in
sentiment from the unprec-
edented short position at the
end of last year. The data is up
to 2 February so while hedge
funds were well positioned for
Thursday's surge, a period of
profit-taking was almost inev-
itable.
Despite the pull-back gold is
still experiencing one of its
best starts to a year in dec-
ades. Gold is up 13,4 percent
year to date thanks to safe
haven buying as investors seek
cover from turmoil on financial
markets, fears over the eco-
nomic outlook and the push by
central banks around the world
into unprecedented negative
interest rate territory.
Not everyone believes gold's
rally will last. The winner of
last year's London Bullion Mar-
ket Association gold forecast
competition, Bernard Dahdah
of French investment bank
Natixis, in his latest prediction
expects a gold price in triple
digits in 2016.
Dahdah got it exactly right
last year with a forecast of
an average $1 160 for 2015.
This year Dahdah's predicts a
low of $900 and a high of $1
300 and an average of $970
for the year with the decline
mostly blamed on US rate
hikes and a strong dollar: We
expect that the biggest influ-
ence on the price of gold this
year will be the expected path
of interest rate hikes. Natixis
expects further rate hikes by
the Fed this year, which should
increase the opportunity cost
of holding the metal. Outflows
from physically backed ETFs
are expected to continue as
higher yielding investments
and a stronger dollar become
more attractive to investors.
The upside risk comes from
possible delays in rate hike
cycle due to a weak US per-
formance or more severe eco-
nomic issues in China. - Min-
ing.com●
15 analysis15 analysis
Well, that was quick. Gold price getting slammed