BH24 is Zimbabwe's leading online business news and advertising platform published by Zimpapers (1980) Ltd

1. By Tawanda Musarurwa
HARARE – Japanese mining
companies are now likely
to boost their investments
into the Zimbabwean mining
sector following the entrance
of the Japan Oil, Gas and
Metals National Corporation
(JOGMEC), the ambassador
of Japan to Zimbabwe Mr
Yoshinobu Hiraishi has said.
Among other key roles, JOG-
MEC provides financial and
technical support to explo-
ration and development pro-
jects carried out by Japanese
companies
The Government and JOGMEC
last year signed a Memoran-
dum of Understanding that
allowed for the transfer of
state-of-the-art GIS tech-
niques and remote sensing
know-how to local geologists.
Ambassador Hiraishi said the
involvement of JOGMEC in
Zimbabwe could see Japa-
nese mining firms increasing
their investments into the
country.
“JOGMEC works as an advisor
News Update as @ 1530 hours, Thursday 03 March 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Japanese mining firms to boost investments into Zim
Mr Yoshinobu Hiraishi

2. for Japanese mining compa-
nies with a view to securing
their safe and stable activ-
ities in the mining sector
abroad. When necessary,
JOGMEC becomes a pioneer
of Japanese mining compa-
nies so as to pave way for
those companies to follow,”
said the ambassador.
“The active involvement of
JOGMEC in the mining sector
of Zimbabwe will hopefully,
attract Japanese companies’
attention which may lead to
investment in Zimbabwe’s
mining sector by Japanese
mining companies in the
future.”
He was speaking at a ‘Sus-
tainable Development of Min-
eral Resources for the Mining
Sector in Zimbabwe’ seminar
where JOGMEC officials were
sharing their technologies
and experiences on mining
exploration and environ-
mental conservation with
delegates from the Ministry
of Mines and Mining Devel-
opment.
Zimbabwean geologists
from the Geological Survey
Department are currently
receiving training at the
JOGMEC Geologic Remote
Sensing Centre in Botswana.
“I firmly believe that the
Japanese accumulated
experiences and vast tech-
nical know-how in mining
can greatly contribute to the
sustainable and environmen-
tally-friendly exploitation of
Zimbabwe’s abundant min-
eral resources in the future,”
said ambassador Hiraishi.
Zimbabwe is currently final-
izing the transformation
of the Minerals Marketing
Corporation of Zimbabwe
(MMCZ) into an exploration
company - the Mineral Explo-
ration and Promotion Corpo-
ration (MEPC).
The MEPC will have the
important mandate of ascer-
taining the value of the
country's unproven mineral
deposits that have remained
unknown for decades due to
fragmented exploration by
the private sector.
Although Zimbabwe is a min-
eral-rich country, believed to
be endowed with more than
60 different types of miner-
als, the country’s resources
are largely under-explored.●
2 news

3. BH243

4. BH24 Reporter
HARARE – The National
Social Security Authority
Board has begun the hunt
for a new chief executive to
replace James Matiza who
was fired alongside four
other directors in October
last year.
Former BancABC Zimbabwe
group managing director
Hashmon Matemera has been
interim general manager
since then.
The new chief executive is
expected to be appointed by
the end of this month since
Mr Matemera’s tenure does
not extend beyond March
31 according to a statement
that was issued by NSSA last
year.
“Mr Matemera is not a
candidate for the substan-
tive position and his acting
appointment will not extend
beyond the latest date of 31
March 2016 under any cir-
cumstances,” said NSSA in a
statement.
The board is also seeking to
fill three other posts of chief
operating/finance officer,
chief investment officer and
chief property officer.
Yesterday NSSA together
with leading global executive
search and selection con-
sultancy firm Stanton and
Chase and Proserve flighted
adverts for the four posts.
The deadline for the submis-
sion of application is March
4.●
4 news
NSSA Board on the hunt for a new chief executive

5. BH245

6. By Thupeyo Muleya
BEITBRIDGE - The implemen-
tation of new pre-shipment reg-
ulations under the Consignment
Based Conformity Assessment
(CBCA) programme on Tues-
day faced a host of challenges
resulting in delays in the pro-
cessing of cargo at Beitbridge
border post.
The new regulations which were
gazetted into law on December
18 last year and requires that
goods be tested for conformity
with required standards prior
importation into Zimbabwe went
into operation on 1 March.
Government introduced the pro-
gramme with the view to reduce
hazardous and substandard
imported products and improve
customs duty collection.
Bureau Veritas has been
appointed by the Ministry of
Industry and Commerce of Zim-
babwe to verify and the assess
the conformity of goods being
imported into the countries.
The new developments have
seen cargo piling up on the
South African side of the border
with most importers failing to
produce the required transi-
tional certificate of conformity.
Shipping and Forwarding
Agents Association of Zimba-
bwe (SFAAZ) chief executive Mr
Joseph Musariri said Govern-
ment needs to waive the appli-
cation of the CBCA on goods
which were shipped before it
became operational.
“You will note that the Zimba-
bwe Revenue Authority (Zimra)
has failed to enforce the regu-
lations since 18 December last
year only to try and imple-
ment it this week and that has
resulted in a chaotic situation.
“It is sad that cargo is piling
up at Beitbridge border post
where most importers are hav-
ing challenges in acquiring the
transitional CBCA certificates”
he said.
Mr Musariri said the Govern-
ment introduced the idea on
July 27 last year but could not
implement it since there was no
legislation to that effect.
He said under the new dispen-
sation all products regulated
by the Ministry of Industry
and Commerce of Zimbabwe
imported into Zimbabwe must
be accompanied by a CBCA
certificate.
“The categories of goods reg-
ulated under the programme
include food and agriculture,
building and civil engineering,
petroleum & fuels , packaging
material, electrical/electronic
products, body care, automotive
and transportation , clothing
and textile and toys” he said.
Mr Musariri said Zimra was now
refusing to clear goods with-
out the CBCA certificate and
requesting for the conformity
certificates.
“They are telling those import-
ers to contact the nearest
offices of Bureau Veritas for
inspections and issuance of the
requisite certificates. Locally
destined cargo which is being
shipped from various overseas
markets is the worst affected
and importers are incurring
daily demurrage expenses of
between $250 and $5000.
“In some cases duties had been
paid to Zimra but now they
are singing a different song,”
he said. Bureau Veritas liaison
officer for Zimbabwe, Mr Tendai
Malunga said his organisation
was ready for the implementa-
tion of the CBCA programme.
“We have trained various
stakeholders on the new pro-
gramme and are ready to roll.
Furthermore we have hired
more staff in most countries to
conduct inspections and various
conformity tests on the various
countries exporting goods to
Zimbabwe” he said.
Industry and Commerce Min-
ister Mike Bimha could not be
reached for comment yester-
day.●
6 news
Cargo piles at border as new pre-shipment regulations take effect

7. BH247

8. HARARE –The Rural Electrifi-
cation Agency (REA) has set a
target for all public institutions
in the countryside to have
access to some form of energy
by 2018 as it spearheads gov-
ernment efforts to spread devel-
opment equitably throughout the
country.
REA public relations officer
Johannes Nyamayedenga said
rural electrification has brought
remarkable development to the
countryside, improving learn-
ing conditions in government
schools, working conditions for
civil servants as well as conven-
ient domestic use for villagers.
“Our target is that by 2018 all
public institutions must have
electricity one way or the other,
although this depends with the
availability of funds so we need
more funding,” he said.
“By 2030 the whole country
must have access to energy.”
Mr Nyamayedenga said REA had
electrified 428 rural institutions
countrywide last year through
the national grid, solar systems
and biogas energy.
At least 82 of the electrified
institutions were in Manicaland,
while Mashonaland East had
72, Midlands 58, Matabeleland
North 53, Mashonaland West
44, Matabeleland South 43,
Masvingo 42 and Mashonaland
Central 34.
Since its establishment in 2002,
REA has electrified at least 8 300
public institutions in the rural
areas and these include schools,
health centers, government
offices, business centers and
chiefs’ homes.
Manicaland has the highest
number with 1548 electri-
fied institutions followed by
Mashonaland East with 1 186,
Masvingo 1 109, Mashonaland
West 1 75, Mashonaland Central
1071, Mashonaland West 1075,
Midlands 867, Matabeleland
South 810 and Matabeleland
North 719.
REA is playing a significant part
in complimenting the Schools
Computerization Program that
President Robert Mugabe has
been spearheading over the
years through providing electric-
ity in schools.
“It has improved quality of edu-
cation with access to computers
and the internet to an extent
that advantages enjoyed by chil-
dren in urban schools can also
be enjoyed by school children in
rural areas.
“In business centres huge
entrepreneurship is taking
place like welding, modern
carpentry and garment making,
thus contributing to the Gross
Domestic Product,” Ambassador
Nyamayedenga said
“As for workers in rural health
centres and teachers they now
enjoy better working conditions
with the existence of electricity.”
In addition, REA is assisting pub-
lic institutions like hospitals and
schools to use biogas for cooking
and lighting following revelations
that these institutions faced
problems with the Environmental
Management Agency (EMA) over
disposal of waste.
Since it started the Biogas
Digester Program in 2012, the
REA has installed 38 biogas
digesters countrywide in schools,
hospitals and domestic house-
holds with 18 of these installed
in rural boarding schools and
mission hospitals.Since its
establishment, the agency has
installed at least 425 solar mini
grid systems countrywide and
since solar is not powerful to
light a whole hospital or school,
the REA expects to install grid
electricity in these areas soon.
The Zimbabwe government
established the REA in 2002 in
order to speed up development
in rural areas which previ-
ous colonial governments had
neglected as well as to stem
migration of people from those
areas to towns and cities. New
Ziana●
8 news
REA targets 2018 for all public institutions to access some form of energy

9. BH249

10. HARARE - The local bourse
extended yesterday’s losses
as the mainstream industrial
index dropped a further 0.12
to close at 98.82.
Giant cigarette manufac-
turer BAT lost $0,0462 to
trade at $11,0000, while
Hippo traded $0,0095 lower
at $0,3395 and Barclays
dropped $0,0010 to close at
$0,03200.
Four counters traded in the
positive territory. Stara-
fricacorporation gained
$0,0013 to settle at $0,0093
and conglomerate Inns-
cor inched up $0,0008 to
$0,1808.
Telecoms giant Econet was
up $0,0004 to close at
$0,2260 and retailer OK Zim
added $0,003 to trade at
$0,0353.
The mining index was flat
at 19.14 as Bindura, Fal-
gold, Hwange and RioZim
maintained previous price
levels at $0,0095, $0,0050,
$0,0300 and $0,1040
respectively.
- BH24 Reporter ●
ZSE10
Equities extend losses

11. BH2411

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Starafrica 16.25 0.93 Barclays -3.03 3.20
OK Zim 0.85 3.53 Hippo -2.72 33.95
Innscor 0.44 18.08 BAT -0.41 1,100.00
Econet 0.17 22.60
Index Previous Today Move Change
Industrial 98.94 98.82 -0.12 points -0.12%
Mining 19.14 19.14 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange
Previous
02 03
ADD TO CART
Save big on selected
Products of your choice
PAYMENT
You can purchase
whenever, wherever
using:
DELIVERY
Spend $30 or more
on your purchases
and get free
delivery
01 Hello Convenience
www.hammerandtongues.com
BIG CONVENIENCE+
BIG SAVINGS+
BIG OPPORTUNITIES
= BIG HAPPINESS
SHOP ONLINE!!
today

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
03 March 2016
Energy
(Megawatts)
Hwange 270 MW
Kariba 460 MW
Harare 30 MW
Munyati 30 MW
Bulawayo 10 MW
Imports 0 - 500 MW
Total 1145 MW
•Thursday 24 March 2016 - Annual General Meeting of Willdale Limited; Place: Boardroom, Willdale Administration Block,
19.5km peg Lomagundi Road, Mount Hampden; Time: 1100 hours...
THE BH24 DIARY

14. JOHANNESBURG - South
Africa's rand was steady
against the dollar early on
Thursday as risk appetite
subsided and traders awaited
US employment data on Fri-
day that is expected to give
guidance on interest rates
move.
At 0645 GMT, the rand
traded at 15,5600 versus
the dollar, largely unchanged
from Wednesday's New York
close of 15,5580.
Upbeat US economic data
and a rally in a range of
commodities dampened risk
appetites globally, while
traders were cautious ahead
of US unemployment num-
bers on Friday.
"Tomorrow’s data is going to
provide a lot of insight into
the Federal Reserve’s next
move, in conjunction with
the US CPI data that is,"
Standard Bank trader War-
rick Butler said.
Growth in US employment
would strengthen the case
for the Federal Reserve to up
the tempo on its heighten-
ing cycle, which traditionally
has triggered an outflow of
investments from emerging
markets.
Stocks were set to open
higher at 0700 GMT, with the
JSE securities exchange's
Top-40 futures index up 0,62
percent.
Shares in South Africa's MTN
Group were likely to react
to news that it has set aside
around $600 million to cover
the potential settlement of a
fine in Nigeria as it posted a
more than 50 percent drop
in annual profit.
In fixed income, the yield for
the benchmark instrument
due in 2026 was down 2.5
basis points to 9,33 percent-
Reuters●
regioNAL News14
Rand steady, stocks set to open higher
JOHANNESBURG - South
Africa's MTN Group has set
aside around $600 million
to cover the potential settle-
ment of a fine in Nigeria, it
said on Thursday, as it posted
a more than 50 percent drop
in annual profit.
Africa's biggest wireless
phone company is in talks
with Nigerian authorities to
reduce a $3,9 billion fine
imposed last year for failing
to cut off unregistered SIM
card users.
MTN said headline earn-
ings per share (EPS) came
in at 746 cents in the year
to end-December compared
with 1,536 cents a year ear-
lier. Headline EPS is the main
profit measure in South Africa
that strips out certain one-off
items.
The company raised its annual
dividend by 5,2 percent to
1,310 cents per share- Reu-
ters●
MTN sets aside
$600m for Nige-
ria fine, FY profit
drops

15. Standard Bank Group Ltd.,
Africa’s largest lender by
assets, said full-year profit
climbed 34 percent after
boosting net interest income
and reducing its stake in its
loss-making U.K. business.
Normalized net income
climbed to 21,37 billion rand
($1,37 billion) from 15,93
billion rand a year earlier,
the Johannesburg-based
bank said in a statement
on Thursday. Earnings per
share excluding one-time
items increased 27 percent
to 13,59 rand, beating the
13,19 rand median estimate
of 13 analysts surveyed by
Bloomberg. The dividend
rose 13 percent to 6,74
rand.
The bank completed the sale
of a 60 percent stake in its
UK operations to Industrial
and Commercial Bank of
China Ltd. last year, help-
ing boost profit and also
partially exited its London
business which was making
losses. Standard Bank is
focused on tapping growth
across Africa and has opera-
tions in 20 countries on the
continent, some of which are
expanding faster than those
in South Africa where the
economy is slowing.
“The year ahead is likely to
provide a demanding oper-
ating environment in which
consumers and businesses
will have to adapt to higher
interest rates and the full
effect of currency weakness,”
the bank said in the state-
ment. “Our medium-term
return on equity target of
between 15 percent and 18
percent remains intact. The
group’s return on equity
performance will, however,
be affected by factors such
as economic growth in South
Africa and the rest of Africa,
and the retention of a South
African investment grade
sovereign credit rating.”
.-Bloomberg●
internatioNAL News15
Standard Bank full-year profit rises 34 pc after UK disposal

16. By Nawar Alsaadi
Continued from yesterday .
. . thus yet again contributing
to the oversupply. The sizable
increase in Iraqi, Saudi and
Iranian oil exports to the market
in 2015 and 2016 has created
(unintentionally or intentionally)
the reverse of the OPEC price
manipulation episode from 1979
to 1985. This time oil prices are
being forced lower by a geopolit-
ical oil supply increase that has
little to do with market supply
and demand fundamentals; just
as OPEC aggressively withdraw-
ing oil supply from the market in
1979 to 1985 had nothing to do
with supply and demand funda-
mentals.
What now?
The surge in shale oil production
between 2010 and 2014 was
the trigger to this oil crisis, and
thus a reduction in non-OPEC
supply through a reduction in
shale/global oil capex is a proper
response to shale’s oversupply.
This is how free markets balance
themselves.
However, the arrival of the above
mentioned geopolitical oil has
interfered with the natural bal-
ancing mechanism. As oil prices
overshot to the downside (and
stayed low) due to the arrival
of the geopolitically constrained
non-market sensitive oil, the O&G
industry has been forced to under
invest in future oil supply as cash
flows dried up and financing costs
skyrocketed. The extent of under
investment in shale has even
been more severe with capex
cuts averaging double the global
average.
The substantial capex-to-supply
lag for most of non-OPEC oil and
OPEC’s unwillingness to restrict
production or gradually ease back
the increase in geopolitical sup-
plies has forced an undue burden
on shale/tight oil to balance the
market on its own. Yet the shale
balancing mechanism is far from
perfect, shale while relatively fast
moving in comparison to other
sources of supply, is still a much
less efficient balancing tool in
comparison to OPEC. This in turn
means the market is lacking the
proper tools to balance itself in a
timely manner in order to avoid
a supply crisis down the line, as
the ongoing large capex cuts flow
to all non-OPEC supply (as well
as some OPEC supply) through
higher decline rates, and deferred
or cancelled greenfield supply
projects.
This delayed rebalancing caused
a large build up in global inven-
tories; those excess inventories
could act as a shock absorber of
sorts once supply undershoots,
but it remains unclear whether
excess inventories alone or in
combination with OPEC will
be able to compensate for an
eventual dual collapse of both
shale and non-OPEC supply in
the context of sustained demand
growth.
Conclusion
This oil boom-bust cycle is not a
repeat of the 1980s, however the
arrival of shale oil to the global
oil scene has created a new oil
pricing reality.
Nonetheless, it is highly unlikely
that this new oil reality is
anywhere close to $30 or $40
a barrel as the futures curve is
indicating and many forecasters
are forecasting.
Outside of Iran and Libya, OPEC
is producing close to its maxi-
mum capacity, with little prospect
of a sizable increase in supply
over the next several years. In
essence, OPEC alone is not in a
position to compensate for shale
and non-OPEC declines as well as
meet future demand growth. Yet,
for shale and non-OPEC to assist
OPEC and grow a price in the
$60 to $70 range is most likely
required to incent the develop-
ment of marginal oil reserves.
By 2017 as global demand and
supply come into balance, and
inventories start to draw oil
prices may snap back substan-
tially above the $60-$70 price
range as the market transitions
from a flood to a drought at some
point next year, however once
the next price spike period settles
down as shale production catches
up to demand once again, prices
will likely settle in the $60 to
$70 range long term, and remain
there until the next noticeable
change in demand/supply fun-
damentals or until the arrival of
unforeseen geopolitical events. –
Oilprice.com - Oilprice.com●
16 analysis16 analysis
Why oil booms and busts happen