The Deposit Protection Corporation (DPC) has called another creditors' meeting for Allied Bank on May 5. This follows a February meeting where $6 million in claims were provisionally accepted. At a June 2015 meeting, $9.7 million in claims were accepted while $356,196 were rejected. The purpose of the latest meeting is to allow creditors who missed the previous two meetings to submit proof of their claims. Allied Bank is currently under liquidation and the assets were $25.8 million while liabilities were $34.4 million when liquidation began in February 2015. The DPC chief executive acknowledged recovering loans and selling assets has proven difficult due to issues such as loans being transferred to third parties and many facilities lacking

1. By Tawanda Musarurwa
HARARE – The Deposit
Protection Board (DPC) has
set another special meeting
of creditors and members of
the defunct Allied Bank Ltd
on May 5.
This follows an earlier meet-
ing in February where claims
worth over $6 million were
provisionally accepted by
the Master of High Court.
And at the first creditors'
meeting held in June last
year, 93 claims valued at
$9,7 million were provi-
sionally accepted while 15
claims valued at $356 196,
30 were rejected for non-ap-
pearance.
News Update as @ 1530 hours, Monday 25 April 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Last Chance Saloon for Allied Bank creditors
Mr John Chikura

2. Allied Bank is currently
undergoing liquidation, and
the latest meeting is meant
to give creditors who missed
the two previous meetings
an opportunity to prove their
claims.
"The purpose of the meet-
ing is submission of proof
of claims by creditors," said
DPC chief executive officer
Mr John Chikura.
The Reserve Bank of Zimba-
bwe cancelled Allied Bank’s
operating licence in January
last year.
When the High Court
approved the bank’s liqui-
dation the very next month,
the bank's assets were
recorded at $25,8 million
while liabilities stood at
$34,4 million.
But earlier this month Mr
Chikura acknowledged that
disposal of the bank’s assets
and recovery of loans was
proving difficult due to a
number of challenges.
The DPC boss said the fact
that some of Allied Bank's
debts were ceded to third
parties, that most facilities
granted to debtors did not
have not have security had
negatively impacted on the
rate of recoveries.
He also said disposal of the
bank’s assets was being
delayed as all its immovable
assets consisting of land and
buildings with an original
book value of $16,7 million
are currently in dispute and
the matter was before the
Courts.●
2 news
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3. BH243

4. BH24
TAA:DI251386-Y22
4

5. By Funny Hudzerema
HARARE -The African Devel-
opment Bank (AfDB) has
approved a $25 million Trade
Finance Line of Credit facility
to Central Africa Building
Society (CABS) of Zimbabwe.
In a statement AfDB said
the medium-term facility will
help to support the expan-
sion of CABS’ operations as a
provider of trade finance to
local firms as well as Small
and Medium-sized Enter-
prises within Zimbabwe’s
tradable sector.
The resultant credit support
will provide for the importa-
tion of critical inputs such as
agro chemicals, pesticides,
farm machinery, spares and
equipment, which Zimbabwe
is in dire need of to revive
its agricultural and manufac-
turing sectors.
The credit support will
also foster financial sector
strengthening and generate
more tax revenue through
import duties and higher
corporate profits. Including
roll-overs, it is projected
that the facility will finance
approximately $150 million
of trade over a three and half
year period.
This facility contributes to
scaling up of AfDB’s inter-
ventions in supporting the
economic turnaround neces-
sary to reposition Zimbabwe
as a major productive center
in the Southern African
region. The banking group
is currently engaged in a
number of initiatives in the
country.
They include supporting the
external debt and arrears
clearance process, in addi-
tion to infrastructure reha-
bilitation in the Energy and
Water and Sanitation sectors
through the ZIMFUND.
Other initiatives are improve-
ments of governance through
the Governance and Institu-
tional Support Programme
(GISP), and indirectly sup-
porting the private sector
through regional financial
institutions that operate and
invest in the country.
This will be AfDB’s first
non-sovereign intervention in
Zimbabwe’s financial sector
in recent years.
It is a strategic milestone
expected to provide greater
comfort to other interna-
tional lenders to offer addi-
tional support.●
CABS gets $25m credit facility from AfDB
5 news

6. BH246

7. BH247

8. BH24 Reporter
Harare- Stakeholders in the
tobacco industry have begun
consultations on how the $9
million levy that was collected
last season will be distributed
to ensure sustainable produc-
tion of the crop.
Government re-introduced a 1,
5 percent tobacco levy on sales
by growers last year to finance
re-forestation programmes such
as establishment of woodlots,
awareness campaigns and
training.
Since January 2015, the
Tobacco Industry and Marketing
Board has been charging the
levy on tobacco growers at a
rate of $0,015 of each dollar of
the selling price.
Government this season
reduced the levy from 1,5
percent to 0,75 percent of the
sales. The tobacco levy was
initially scrapped in March 2005
to encourage smallholder farm-
ers to produce the crop.
TIMB communications manager,
Mr Isheunesu Moyo, yester-
day said the board had begun
engaging stakeholders and
after finalising on the distri-
bution and use of the money
would forward a proposal to
the Ministry of Finance and Eco-
nomic Development to access
the money.
“We have met with farmers’
representatives, buyers and
traditional leaders among
other stakeholders to delib-
erate on how the fund can be
used towards re -forestation
activities.
“Some stakeholders feel the old
way of promoting re-forestation
by giving farmers tree seedlings
were not effective as there was
no follow up to see whether the
farmers had established the
intended woodlots,” he said.
Mr Moyo said most farmers
were collecting tree seedlings
but not planting them.
Some stakeholders in the
tobacco industry said the rate
of cutting down trees for curing
could reduce if the tobacco levy
was used to transport coal to
farming areas for easy access
by farmers.
Others said planting trees
was a noble idea but the gum
trees required a lot of water
and would use a lot of ground
water.TIMB, however, said the
use of coal was not sustainable
and according to international
standards, coal did not produce
a good crop for the market.
Recently TIMB set aside $500
000 to assist farmers in con-
structing proper curing barns
to improve the quality of the
crop being produced. The
barns dubbed rocket barns are
cheaper, safe and consume less
energy than the conventional
ones.
According to TIMB, the rocket
barns consume half the fire-
wood being used currently.
The barns can also use coal for
curing.●
8 news
TIMB, farmers meet over tobacco levy

9. BH249

10. BH24 Reporter
HARARE -The 10th edition of the
Zimbabwe International Business
Conference (IBC) will focus on
the issue on getting local indus-
tries competitive in the SADC
region.
The IBC is held annually on the
sidelines of the Zimbabwe Inter-
national Trade Fair (ZITF) and is
hosted by the National Economic
Consultative Forum (NECF) in
collaboration with the ZITF Com-
pany.
The business conference will be
held on April 27, and is running
under the theme: 'Innovate-Inte-
grate-Industrialise'
NECF business development
executive Ms Nancy Nyahunzvi
said conference will come up with
a clear set of recommendations
on how the country can optimise
and leverage on its resources and
assets so as to create economic
value.
"The conference will come up
with a clear set of recommen-
dations on how the country
can optimize and leverage on
its resources and assets so as
to create economic value. The
theme aptly captures the regional
aspirations, as enshrined in the
SADC Industrialisation Strategy
and Road Map ratified last year.
"The industrialisation strategy
seeks to ensure that the bloc
achieves some levels of parity
in terms of industrialisation as
well as to ensure that the region
benefits from the sale of value
added products from its resource
endowments," she said.
"The theme also resonates well
with Zimbabwe’s economic blue-
print, the ZimAsset which calls
for various economic players in
the country to shift from reliance
on export of commodities to
export of manufactured goods
through the resuscitation and
revitalisation of industries as
well as to creation of sustainable
value-chains."
A minimum of 350 delegates are
expected to attend the confer-
ence.
IBC is a platform meant to create
an ambient business network-
ing environment that provides
decision makers from business,
government and non-state actors
with an opportunity to discuss
pertinent economic and social
issues and influence policy.
The 57th edition of ZITF will run
from April 26 to 30.
.●
'IBC to focus on creation of sustainable value-chains'
10 news

11. BH2411

12. BH2412

13. HARARE -The equities mar-
ket opened the week on a
high after the mainstream
industrial index jumped 0.35
to closed at 99.63.
Beverages giant Delta rose
$0,0057 to close at $0,6000,
while Amalgamated Regional
Trading and Padenga were
each $0,0020 up at $0,0140
and $0,0740 respectively.
There were no trades in the
negative and activity was
seen in ten counters.
The mining index was steady
at 20.16 as Bindura, Fal-
gold, Hwange and RioZim all
maintained previous price
levels at $0,0102, $0,0050,
$0,0300 and $0,1100 respec- tively - BH24 Reporter ●
ZSE13
Industrials start week on a high

14. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
ART 16.66 1.40
Padenga 2.77 7.40
Delta 0.95 60.00
Index Previous Today Move Change
Industrial 99.28 99.63 +0.35 points +0.35%
Mining 20.16 20.16 +0.00 points +0.00%
14 zse tables
ZSE
Indices
Stock Exchange
Previous
today

15. 15 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
25 April 2016
Energy
(Megawatts)
Hwange 509 MW
Kariba 459 MW
Harare 30 MW
Munyati 18 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1494 MW
• 26th April 2016 - BAT AGM; Place: British American
Tobacco Zimbabwe Offices, 1 Manchester Road, Southerton, Harare; Time: 10.00 hours...
• 29 April - CBZ AGM; Place: Stewart Room. Meikles Premier Hotel, Harare; Time: 15:00pm
• 18 May - ZB Building Society AGM; Place: 21 Natal Road, Avondale, Harare; Time: 12:00hrs
• 19 May - The Fifth Annual General Meeting of Padenga Holdings Limited; Place: Royal Harare Golf Club, 5th Street exten-
sion, Harare; Time: 08.15am
• 19 May - NMBZ AGM; Place: Unity Court, Corner 1st Street Kwame Nkrumah Avenue; Time: 10:00am
• 19 May - Turnall Holdings AGM; Place: Jacaranda Room, Rainbow Towers; Time: 12:00
• 05 May - Barclays Bank of Zimbabwe AGM; Place: Meikles Mirabelle Room; Time: 1500hrs
THE BH24 DIARY

16. JOHANNESBURG - South
Africa's rand edged lower on
Monday, ending a recent rally
built on positive emerging
market sentiment and as
traders looked ahead to a US
interest rate decision later
this week.
Stocks were due to open
flat, with the JSE securities
exchange's Top-40 futures
index inching 0,08 percent
lower.
South Africa's biggest fast-
food restaurant chain Famous
Brands will be in focus after
it said on Monday it will take
a 51 percent stake in Lupa
Osteria, an Italian restaurant
business.
By 0640 GMT the rand had
slipped 0,21 to 14,4300 per
dollar after Friday's close at
14,4000 in New York.
Bonds were flat in early
trade, with the benchmark
bond due in 2026 unmoved
at 9,065 percent.
The rand gained more than
2,5 percent against the
dollar last week, breaking
through key technical mile-
stones on its way to 5-month
highs before stumbling as
global appetite for emerging
assets eased.
Traders said the rand could
resume gains if the Federal
Reserve's policy statement
was dovish on growth and
signalled the bank remained
reluctant to raise lending
rates.
"A holiday-shortened week
will likely lead to a drop
in trading volumes, espe-
cially today and tomorrow
as no major data releases
are scheduled," analysts at
research firm NKC African
Economics said in a note.
"However, US Fed meeting
always have the potential to
invigorate markets."
In the previous week the
rand twice broke through the
14,2000 technical resistance
mark but failed to hold below
the level, and is unlikely to
make progress this week in
low liquidity conditions, trad-
ers said.
South African markets will be
closed on Wednesday for a
national holiday.- Reuters●
regioNAL News16
Rand slides as EM rally stalls, US Fed eyed

17. Low oil prices will spur more
mergers and acquisitions in
the oil and gas industry this
year with some companies
forced to sell to avoid bank-
ruptcy, according to consult-
ants A.T. Kearney.
Private equity firms are
probable buyers, Richard
Forrest, global lead partner
for the company’s energy
practice, said in an interview
in Dubai. The number of oil
and gas transactions declined
37 percent in 2015 as their
value fell 2,5 percent to
$469 billion, led by Royal
Dutch Shell Plc’s acquisition
of BG Group Plc and Energy
Transfer Equity LP’s purchase
of Williams Cos. This year,
the number of transactions
will go up but the value will
probably decline without any
big deals, he said.
“There’s a lot of debt out
there and that’s to some
extent what is going to be
the trigger of the wave of
M&A deals,” Forrest said. The
amount of debt held by oil
and gas companies world-
wide tripled to $3 trillion by
2014 compared from 2006,
he said. “This year we expect
a lot of distressed assets to
become available.”
Crude prices have plunged
almost 60 percent in the past
two years, slashing profit at
the largest oil companies and
causing US shale producers
to scale back output. Bank-
ruptcy filings among compa-
nies with publicly registered
debt in the energy sector are
starting to rise, according to
Bloomberg Intelligence.
Energy-focused oil and gas
private equity firms have
about $38 billion to fund
deals, according to A.T.
Kearney. The largest oil com-
panies will be more focused
on selling assets than buying
this year, while Middle East
national oil companies are
not likely to be active this
year, according to the report.
Activity may pick up at the
end of the year, driven by
more stability and possibly
higher crude prices, Forrest
said. “It does support oil
prices coming back and it
gives investors the needed
confidence to proceed with
deals.” – Bloomberg●
internatioNAL News17
Low crude prices to spur more M&A deals in oil & gas after slump

18. By Dianna Games
The recent "tuna fleet" scan-
dal in Mozambique raises
questions about whether
another African success story
might be heading for choppy
waters.
The country is facing cen-
sure over evidence that the
government may be using a
big chunk of $850m raised on
international capital markets
three years ago to buy arms
and not the large fleet of
fishing boats the money was
earmarked for.
Earlier this month, the Inter-
national Monetary Fund (IMF)
cancelled the second tranche
of a $285m emergency loan
it had granted at the end of
last year and cancelled an
IMF mission to the country
scheduled for later this year.
Mozambique’s credit rat-
ing has also been cut in the
wake of the evidence of mis-
use of the money.
The capital-raising exercise was initiated by the gov-
ernment, which said in its
investment prospectus it
wanted to raise money for
the expansion of the coun-
try’s newly launched and
18 analysis18 analysis
Mozambique's fishy tale does not augur well for the future

19. totally unknown tuna fishing
company, Ematum.
The deal immediately raised
eyebrows, with donors asking
questions about why a coun-
try with significant develop-
ment challenges would raise
its debt profile to this extent
just for fishing boats.
The critics of the deal were
proved right when it later
emerged that most of the
money was, in fact, spent on
security.
Africa Confidential reported
subsequently that the
Mozambican government
raised debt to the tune of
closer to $1.5bn in a series
of undisclosed deals — infor-
mation that has apparently
shocked the IMF, which has
just lent Mozambique funds
to help it with its current
economic woes.
The evidence has come to
light in the wake of Mozam-
bique’s attempt to restruc-
ture the bond, which it is
battling to repay.
This has raised fears of a
default ahead of the sev-
en-year payment term.
Reports say the bond was
sold on the back of the fact
that Mozambique was catch-
ing 200,000 tonnes of tuna a
year worth $200m, but there
are claims that the annual
catch is closer to 6 000
tonnes.
The IMF has expressed high
hopes for Mozambique, say-
ing the country can expect
growth of up to 24 percent
from 2020, once it becomes
an exporter of natural gas,
with annual revenues of
$20bn expected from these
exports.
But in light of the disclo-
sure of what the IMF calls an
unsustainable debt profile,
the organisation has revised
its assessment of the macro-
economic outlook.
The country is focusing on
tackling a worsening security
situation as the main oppo-
sition group, Renamo, steps
up its attacks on civilian and
government targets.
It is also battling with a
declining currency and lower
commodity revenues from
coal in particular.
Although revenues from gas
exports will easily tackle
Mozambique’s debt problems,
the question is whether
Mozambique will dig itself
into a deep hole before pro-
duction begins.
Industry observers say
the start date of 2020 for
exports, which has already
been delayed from a 2018
start, may be pushed out
further due to the decline
in commodity prices and
demand.
The experience of Ghana may
be instructive for Mozam-
bique, providing an example
of how not to spend or bor-
row heavily on the back of
the expectation of resource
revenues.
Ghana had unexpected
problems at the start of oil
production and did not get
the initial expected reve-
nues, which left the West
African country with a large
debt that it is still trying to
attend to.
There are concerns that not
only does the country not
have the institutions, capac-
ity and systems to manage
expected future gas revenue
inflows, but that it has also
not shown a tendency for
responsible spending, as this
latest scandal shows.
The government is now try-
ing to make things right with
the IMF, but it has significant
reputational damage to deal
with.
Mozambique needs to get
serious and realise that it
should not squander the
opportunities that lie ahead
by ill-thought-out behaviour
and short-term thinking. -
BDLive ●
19 analysis19 analysis