The IMF says Zimbabwe's use of multiple currencies will not negatively impact any domestic reform programs. There are indications Zimbabwe and the IMF may start developing a 3-year domestic reform program in the first half of next year to unlock bilateral funding, if the third review is successful. The IMF representative says it will take time to rebuild confidence in a local currency, and the multiple currency system has brought stability, so it is best retained for now while Zimbabwe addresses other areas like competitiveness and productivity to reduce reliance on the US dollar.

1. By Twanda Musarurwa
HARARE -The International Mon-
etary Fund (IMF) has said Zim-
babwe's use of the multicurrency
system will not have an adverse
effect on the implementation of any
homegrown medium or long-term
reform programme that the country
might implement.
There are indications are that Zim-
babwe and the IMF could com-
mence work on the development of
a comprehensive three-year home-
grown reform programme at least in
the first half of next year to unlock
funding from bilateral institutions, if
the third review is successful.
"On the issue of the currency it
takes a long time to rebuild confi-
dence for locals to want to deal with
a local currency again. Yes, the rand
has depreciated against the United
States dollar, and yes South Africa
is your major trading partner. But be
reminded that having the multicur-
rency regime has actually brought
back stability to the economy,"
said IMF resident representative Mr
Christian Beddes while responding
to a question on whether it was ideal
to retain use of the multicurrency
when eventually implementing a
homegrown reform programme
during a Zimbabwe National Cham-
ber of Commerce (ZNCC) Economic
Review Conference this morning.
Zimbabwe introduced the multicur-
rency system in 2009 following a
prolonged period of hyper-inflation,
but the use of a strong currency as
the US dollar - which is the main
currency in the basket of curren-
cies - has made the country's busi-
ness operating environment rather
costly.
The IMF representative said internal
devaluation, among other structural
measures, would reduce the impact
of an overly strong US dollar..
"As painful as it may be now there
are other ways to at least help with
competitiveness. I am not saying it
will fix it but there is to some degree
internal devaluation, adjustment of
prices and costs, Zimbabwe is a high
cost economy and some degree of
being more productive and being
more efficient is required,” he said
"At this point in time, I don't think
that this is a useful discussion to be
had. It is here to stay for while to
maintain stability, the question is
what can we do in other areas to
ensure that Zimbabwe is not com-
pletely entrenched in an over-val-
ued currency."
But he maintained that it was nec-
essary that Zimbabwe implement a
homegrown reform programme.
“What is important is that this pro-
gramme is homegrown. If you look
at the history of other countries that
engaged with the IMF, the ones that
developed homegrown programmes
were the most successful,” he said.
Zimbabwe could start receiving
financial support from bilateral
creditors before mid next year, if it
successfully implement its plan to
clear $1,8 billion in arrears with the
IMF, World Bank and African Devel-
opment Bank, after its arrears strat-
egy was approved in Lima, Peru this
October on the sidelines of the IMF/
World Bank meetings●
News Update as @ 1530 hours, Monday 07 December 2015
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IMF backs multi-currency system

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3. HARARE – Gold producer Blan-
ket Mine’s resource base has
increased by 476 750 tons of ore
following a drilling program car-
ried out over the past six months,
parent company Caledonia Min-
ing Corporation has said.
The Gwanda based mine, which
is currently being re-capital-
ised to the tune of $70 million,
already had about 3,4 million
tons of reserves and indicated
resources.
In a statement, the company
said 222 000 tons of new inven-
tory was added to the Indicated
Resource category while a total of
254 750 tons had been upgraded
from Inferred Resources to Indi-
cated Resources.
A further 283 000 tons has
been upgraded to the Inferred
Resource category.
An indicated mineral resource is
a deposit in which tonnage, den-
sity, shape, physical character-
istics, grade and mineral content
can be estimated with a reason-
able level of confidence.
“The combined total of new and
upgraded Indicated Resources of
476 750 tons is in addition to
the 3 472 000 tons of Reserves
and Indicated Resources follow-
ing the May 2015 upgrade. This
upgrade and addition represents
an increase of 14 percent per
cent in terms of tons and 19 per-
cent in terms of contained gold
and equates to 2 years of produc-
tion at 2014 production levels,”
said Caledonia.
Commenting on the resource
upgrade, Caledonia chief execu-
tive officer Steve Curtis said it
reflected the company's increased
focus on resource development
at Blanket Mine.
Curtis said this would boost
production levels from 2016
onwards.
"The upgrade of 476 750 tons
from Inferred Resource to Indi-
cated Resource represents a sig-
nificant improvement in the over-
all confidence level of Blanket's
resources,” he said.
"Caledonia will continue to look
to increase the life of mine by
further supplementing it with
resource additions and upgrades
as a result of the increased
exploration activity, both at Blan-
ket and also at the satellite pro-
jects."
In November 2014, Caledonia
announced a revised investment
plan for Blanket mine which
is expected to see production
increase to approximately 80
000 ounces of gold by 2021.
This year, Blanket mine is tar-
geting to produce around 42 000
ounces of gold, up from 41 836
ounces achieved last year.- New
Ziana.●
3 news
Caledonia upgrades resource base

4. BH244

5. By Munesu Nyakudya and Funny
Hudzerema
HARARE -The Africa Capacity Building
Foundation (ACBF) has launched the
2015 Africa Capacity Report, which
calls for African countries to exploit
domestic resources for their own
development.
The report calls for African countries
to generate savings and taxes from
domestic resources and channel them
towards economically and socially pro-
ductive activities.
Officially launching the report Finance
and Economic Development Minister
Patrick Chinamasa said Zimbabwe
is intensifying efforts at mobilising
domestic resources.
"For us domestic resource mobilisation
is not just a means to financing our
needsbutisamustborneoutofneces-
sity. It is clear that given the diminish-
ing levels of Overseas Development
Assistance (ODA) to Africa, successful
implementation of Africa's develop-
ment agenda will rely more and more
on internally generated resources.
"Out of necessity, Zimbabwe has in
termsofmobilisationofresourcesbeen
more inward looking than ever before,"
he said.
Minister Chinamasa said the 2015
Africa Capacity Report will assist in
some of the efforts Government is
working on. One of the key messages
from the 2015 Africa Capacity Report
is mobilising and efficiently utilising the
domestic resources to implement the
post-2015 development agenda and
the African Union agenda 2063.
ACBF executive secretary Professor
Emmanuel Nnadozie said that it is
important for governments to look at
how Sustainable Development Goals
will be financed.
"At this point in time more than ever
before enhancing domestic resource
mobilisationinAfricaisnotjustachoice
but a necessity. Besides increasing our
countries' ownership and accounta-
bility, domestic resource mobilisation
reduces the volatility associated with
outside funding.
"Now, given the recent adoption of the
sustainable development goals and the
commitment of our continent to imple-
ment the Agenda 2063, which is Afri-
ca's development blueprint it is equally
important to consider how these wider
agendas will be financed. Domestic
resourcemobilisationappearstobethe
way to go," he said.●
5 news
2015 Africa Capacity Report launched
Mr Patrick Chinamasa

6. BH24
TAA:DI251386-Y22Laz DI324241-D15
6

7. HARARE -The mainstream
industrial index opened the
week firmer after gains in Delta
and BAT as the Industrial index
added 0.21 to close at 114.63
BAT was up by a significant
$0,0500 to trade at $12,2000
while Delta rose by $0,0045 to
$0,7200.
On the downside, AFDIS, Fidel-
ity Life, and Old Mutual were
each $0,0025 weaker to close at
$0,5575, $0,1000 and $2,1000
respectively. Construction
firm Masimba lost $0,0010 to
$0,0100 while Meikles lost a
marginal $0,0001 to close at
$0,0843.
The mining index was
unchanged at 21.51 as all the
mining counters maintained
previous price levels
- BH24 Reporter ●
ZSE7
Delta, BAT gains bump equities market

8. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Delta 0.62 72.00 Masimba -9.09 1.00
BAT 0.41 1,220.00 Fidelity Life -2.43 10.00
AFDIS -0.44 55.75
Meikles -0.11 8.43
Old Mutual -0.11 210.00
Index Previous Today Move Change
Industrial 114.42 114.63 +0.21 points +0.18%
Mining 21.90 21.51 -0.39 points -1.78%
8 zse tables
ZSE
Indices
Stock Exchange

9. BH249

10. 10 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
07 December 15
Energy
(Megawatts)
Hwange 467 MW
Kariba 468 MW
Harare 30 MW
Munyati 23 MW
Bulawayo 22 MW
Imports 0 MW
Total 981 MW
•09 December 2015 - Cottco AGM; Venue: Cotton Pavilion, Exhibition Park; Time; 12:00hrs
•09 December 2015 - Border Timbers AGM; Venue: Boardroom, Northern Tobacco (Private)
Limited Complex, 4-12 Paisley Road, Southerton; Time: 9:00hrs
•11 December 2015 - Buy Zimbabwe Awards; Venue: Rainbow Towers, Harare
THE BH24 DIARY

11. Johannesburg -THE rand was
stable at weaker levels on Mon-
day morning but remained at
risk of further losses following
the rating reviews from agen-
cies Fitch and Standard & Poor’s
(S&P).
Late on Friday night, Fitch down-
graded SA’s sovereign credit rat-
ing from BBB to BBB-, which is
the lowest investment-grade rat-
ing and a level away from junk
status but changed its outlook to
stable from negative.
More concerning, however, was
S&P affirming its BBB-rating but
altering its outlook to negative
from stable, implying a down-
grade to junk was unavoidable if
growth continued to falter.
Rand Merchant Bank analysts
said the possibility of SA being
downgraded to junk status would
be the focus of market attention,
particularly now that most par-
ticipants had priced in a Federal
Reserve rate hike in December.
"Risk for the week is mainly
focused on local issues — the
markets’ reaction to the credit
ratings, tomorrow’s current
account figure and Wednesday’s
inflation print. International
focus is largely on Chinese data,"
the analysts said.
At 8.52am the rand was at
14,3406 against the dollar from
14,3471 previously.
Against the euro it was at
15,5807 from 15,6027 and at
21,6608 against the pound from
21,6780.
The euro was at $1,0865
from a previous close of
$1,0876.-BDLive●
regioNAL News11
Rand at risk of further weakness after rating reviews

12. Johannesburg -TRUWORTHS CEO
designate Jean-Christophe Garbino,
who was officially meant to take the
helm last July has resigned.
The former boss of France’s Kiabi
fashion chain was named the suc-
cessor to Truworths’ longstanding
CEO Michael Mark last November
and joined the company in March.
However, Mr Garbino did not take
the helm as Mr Mark continued to
"support" the transition process in
his CEO capacity.
Mr Mark has been CEO for 23 years
and has been credited with estab-
lishing one of the country’s most suc-
cessful apparel retailers. However,
despite its strong operating metrics,
the fashion player has recently come
under fire for failing to react and pro-
tect its market share against chang-
ing market dynamics and the entry
of global giants such as Cotton On,
H&M and Zara.
Friday’s statement said Mr Mark had
committed himself to remain CEO for
two years. Chris Gilmour, an analyst
at Absa Investments, said Friday’s
shock announcement suggested
something "untoward".
"It doesn’t sound right — something
reeks. I don’t know if he even phys-
ically ever took over from Michael
Mark in the first place. They needed
someone new to breathe life into the
business. Truworths is not what it
once was. It doesn’t hold its iconic
status. Mr Price, Woolies and The
Foschini Group have taken them
over," he said.
One analyst, who declined to be
named, said that Mr Mark did not
seem to want to let go of the reins.
This month, Truworths acquired a
majority stake in UK high-street
footwear retailer Office for £256m.
"Mr Mark was supposed to oversee
the buyout of Office and leave the
SA operation to Garbino, but Tru-
worths is his life — he doesn’t want
to give up control," the analyst said.-
BDLive●
regioNAL News12
Truworths CEO designate quits

13. LONDON — Oil prices edged closer
to 2015 lows on Monday after
Organisation of the Petroleum
Exporting Countries (Opec) failed
to agree on a production curb to
stem sliding prices and a stronger
dollar made it more expensive to
hold crude positions.
The Opec ended its policy meet-
ing on Friday without agreeing to
lower production.
For the first time in decades, oil
ministers dropped any reference
to the group’s output ceiling,
highlighting disagreement among
members about how to accom-
modate Iranian barrels once
Western sanctions are lifted.
"A stronger dollar and the after-
shock of Friday’s Opec meeting
are weighing on the oil market,"
said Tamas Varga, an oil analyst
at brokerage PVM Oil Associates
in London.
Brent crude prices, the globally
traded benchmark, were down
38c at $42,62 a barrel at 9.29am
GMT, close to their 2015 low of
$42,23. US crude was trading at
$39,42 a barrel, down 55c.
The dollar was up against a bas-
ket of currencies. Analysts at
Barclays said the lack of an Opec
production target in its written
announcement was a sign of dis-
cord.
"Past communiqués have at least
included statements to adhere,
strictly adhere, or maintain out-
put in line with the production
target. This one glaringly did
not," they said.
Opec’s output of more than
30-million barrels a day has com-
pounded an oil glut, pushing pro-
duction 0,5-million to 2-million
barrels a day beyond demand and
putting many producers under
pressure, especially small-sized
US shale drillers that have piled
up large amounts of debt.
Saudi Arabia, the world’s biggest
oil exporter, is banking on pro-
ducers of unconventional oil to
buckle for output to fall. Amin
Nasser, CEO of Saudi Aramco,
said at a conference in Doha on
Monday he hoped to see oil prices
adjust at the beginning of next
year as unconventional oil sup-
plies start to decline.
Others disagreed. Patrick Pouy-
anne, CEO of French oil company
Total, said at the same event
that he did not expect prices to
recover next year as production
growth was set to outstrip a rise
in demand.
"It is not unreasonable to assume
that downward pressure on prices
will remain for the foreseeable
future, as it will take time for low
prices to materially scale back
production," said analysts at
Cenkos Securities.
In a sign investors expect prices
to remain weak over years to
come, West Texas Intermediate
forward contracts out to 2024
have dropped below $60 a bar-
rel.-Reuters●
internatioNAL News13
Oil falls towards 2015 low

14. By Munetsi Madakufamba
Since the formation of the China
Africa Forum 15 years ago, rela-
tions between the two sides have
continued to scale new heights in
the areas of economic, cultural,
political and security spheres.
The 2015 Johannesburg Sum-
mit of the Forum on China Africa
Cooperation has taken further
bold steps to cement mutual ben-
efit between the two sides while
taking the ties to even higher lev-
els, including a new US$60 billion
Chinese fund to support develop-
ment on the African continent.
Although relations between China
and Africa span several centuries
– from the precolonial relations
which were largely trade driven
through colonial era relations
when political and military coop-
eration blossomed, to the post-co-
lonial era when economic coop-
eration has taken centre-stage
while political ties have remained
important – China has recently
shown unprecedented interest in
Africa more than any other part of
the world.
The Forum on China Africa Coop-
eration (FOCAC) enunciated in
2000 has provided a more struc-
tured platform for deepening the
ties between the two sides in a
broad spectrum of fields from
political to economic areas.
Latest figures indicate that trade
between the two sides reached
$220 billion in 2014 while China’s
direct investment in Africa topped
US$30 billion in the same year.
In an address to the opening
ceremony of the Johannesburg
Summit of FOCAC on 4 Decem-
ber, Chinese President Xi Jinping
announced 10 China Africa Coop-
eration Projects which will be sup-
ported by a US$60 billion fund.
The plan covers development in a
wide range of sectors of the Afri-
can continent, including improve-
ment of the continent’s industrial
capacity, agricultural modernisa-
tion, infrastructure development,
upgrading rural and urban settle-
ments, green development, trade
and investment facilitation, pov-
erty reduction, health improve-
ment, culture and people to
people exchange, and peace and
security cooperation.
Outlining his country’s vision for
Africa, President Xi said the fund,
which consists of grants, favoura-
ble concessionary loans and other
investment funds, will be chan-
nelled into areas selected by Afri-
14 analysis14 analysis
China-Africa cooperation scales new heights

15. 15 analysis15 analysis
can countries as opposed to prior-
ities imposed by others.
He said China’s foreign policy on
Africa was guided by five princi-
ples that include political equal-
ity and mutual trust, win-win
economic cooperation, mutually
enriching cultural and people to
people exchanges, mutual assis-
tance in peace and security, and
solidarity and cooperation in
international affairs.
President Mugabe, who is the Afri-
can Union chair, led African lead-
ers in thanking the Chinese Pres-
ident for his generous assistance
to the continent.
“Here is a man representing a
country once called poor; a coun-
try that never colonised us, doing
what those who once colonised us
ought to be doing,” he said, calling
on the continent’s erstwhile colo-
nial powers to take notice.
On his part, South African Pres-
ident Jacob Zuma, who by vir-
tue of his country hosting the
2015 FOCAC Summit said China
has been a “consistent friend of
Africa”.
He said the theme of the 2015
Summit, that is, “Africa-China
Progressing Together: Win-Win
Cooperation for Common Devel-
opment”, dovetails with Agenda
2063, the continent’s long term
vision.
Everyone from the United States
of America to Europe is seeking
to do business with China, aiming
for a share of the Asian giant’s
US$4.3 trillion reserves.
Africa is no exception. Much more
important, African leaders are
seeking mutually beneficial coop-
eration with China. Both Presi-
dents Mugabe and Zuma made
this point quite clear.
President Mugabe spoke for the
majority of Africans when he said
the west has a distorted view
of relations between China and
Africa.
He said the west has “sought to
portray and reduce our relations
to purely commercial eyes driven
in their view, as they say, by Chi-
na’s appetite for and desire to
extract raw materials from our
continent… On the contrary, real-
ity, fortunately, does not conform
to such distorted imaginative cre-
ations”. He said the “relations go
much deeper than the extraction
of resources”.
The fact of China not moving
into Africa for the continent’s
resources has been allayed by
Chinese authorities on many
occasions. President Xi in par-
ticular has consistently spoken of
the “new normal” where the world
is undergoing profound changes.
Part of that “new normal” has
no doubt manifested itself in the
maturation of the Chinese econ-
omy, which is now seeking to shift
from one that is resource hungry
to a new economic system that
is consumer-driven with a strong
middle class.
It is an economy that is seeking
to export some of its labour-in-
tensive industries into Africa, for
example building industrial parks
that will take advantage of the
continent’s demographic dividend.
Dr Nkosazana Dlamini-Zuma,
who is AU Commission chairper-
son, said Africa is set to bene-
fit from investment by Chinese
enterprises as the continent “has
a young population in an aging
world”.
She said the move was even more
welcome given the continent’s
quest to beneficiate and val-
ue-add in order to create jobs and
hedge against the volatility of the
prices of its primary commodities
on the international market.
The Johannesburg Summit, run-
ning from 4-5 December, was
preceded by meetings of senior
officials and ministers, as well as
fora for the private sector, aca-
demia and the media, all of which
set the momentum for the sum-
mit.
This is the 6th FOCAC at ministe-
rial level since 2000 and only the
second summit. The first sum-
mit was held in Beijing in 2006.
The Johannesburg Summit was
attended by 50 African countries,
mostly at head of state level, as
well as representatives of the
African Union and its regional
economic communities. - Sardc.
net●