A digital copy of the BH24 Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.

1. By Tawanda Musarurwa
HARARE – Zimbabwe’s tel-
ecommunications companies
have agreed to infrastructure
sharing policy, Information
Communication Technology,
Postal and Courier Services
Minister Supa Mandiwanzira
has said.
Sharing mobile infrastructure
is an alternative that lowers
the cost of network deploy-
ment. In an interview, the
ICT minister said telecoms
operators had met an earlier
90-day ultimatum to sign an
agreement on infrastructure
sharing.
He added that regulations
that will govern the infra-
structure sharing had already
been drafted and are set for
promulgation.
“The 90-day ultimatum was
met. We have a document
that has been submitted by
POTRAZ after consultation
News Update as @ 1530 hours, Thursday 10 March 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Telecoms firms agree to infrastructure sharing

2. with all the players in the
industry, a draft regulation
that needs now to be gazet-
ted is now there.
“We are now tabling them at
the attorney-general’s office
to ensure that those regula-
tions are in line with the Act
and that they are within the
confines of our constitution.
Once that process is done,
we will gazette them and
they will become law,” said
Minister Mandiwanzira.
Infrastructure sharing can
take several forms depend-
ing on existing licences and
the regulatory framework in
place.
Broadly, infrastructure
sharing can be based on
the passive elements of a
telecommunications network,
which is often referred to as
‘passive infrastructure shar-
ing’ or can be based on the
active elements.
Minister Mandiwanzira said
the successful implementa-
tion of infrastructure sharing
will preclude the need to
regulate the pricing of data.
Many telecoms services
customers have complained
that local data charges are
too high, compared to the
region, for instance.
“I don’t think we need a pol-
icy that regulates the pricing
of data, what we need is to
encourage things that we are
already working on like infra-
structure sharing.
“Because when we have
infrastructure sharing we
won’t have the costs that
networks are incurring by
each building its own infra-
structure. For instance if you
look between Harare and
Bulawayo we have three fibre
cables when one only one
will be able to serve every-
one.
“Now that means the invest-
ment which has gone into the
two additional fibre cables is
being paid for by the con-
sumer and when you go to
these operators and say you
can’t charge this much they
say we need to cover the
costs of the infrastructure,”
he said.
The minister said the prob-
lem with regulation is that
it creates ‘secondary’ and
‘black’ markets, which is not
ideal.●
2 news

3. BH243

4. BH244

5. BH24 Reporter
HARARE -Listed conglomer-
ate Innscor Africa Holdings’
revenue for the half-year
to December 31, 2015 rose
to $300,6 million up from
$295,7 in the prior compara-
ble period.
The group’s results showed
significant growth in volumes
driven by reduction in price
to the customer, resulted in
improved capacity utilisation
and improved efficiencies.
Operating profit from con-
tinuing operations increased
8 percent to $27,4 million
as operating expenses were
tightly managed resulting in
a decrease in costs compared
to prior year.
And profit before tax was
up by 18 percent to $20,6
million while profit after tax
was up 23 percent to $15,8
million.
Subsidiary National Foods’
revenue for the period was
up 2 percent to $170,9
million on the back of good
volume performance, which
rose 12,6 percent to 291,700
tonnes.
According to management,
the increase in volume was
due to strong performances
in the maize and flour divi-
sions. It said the discrepancy
between volume growth of
12,6 percent and revenue
growth 2 percent was result
of management’s strategy
to lower average selling
prices and grow share in
an increasingly competitive
market.
Gross margins increased
marginally due to changes
in the product mix and
improved operating efficien-
cies in the firm’s plants.
Total operating costs grew by
11,2 percent, profit before
tax was also steady up 1
percent to $8,86 million.
Meat processor Colcom
reported a 9 percent decline
in revenue for the period
under review, going down
to $30,5 million down from
$33,7 million prior year com-
parative.
Colcom’s profit for the period
was flat at $2,84 million.
Innscor declared interim
dividend of 0,30 cents per
share.●
5 news
Innscor posts improved HY results

6. BH246

7. BH247

8. Harare– The Zimbabwe
Asset Management Company
(ZAMCO), Government’s spe-
cial purpose vehicle for debt
takeover, has acquired $371
million worth of Non-Per-
forming Loans (NPLs) from
banks, a Cabinet Minister has
said.
ZAMCO, established last
year, uses a number of
ways to fund acquisition of
NPLs, including government
Treasury Bills and loans from
foreign funders.
Prior to the establishment of
ZAMCO, the Reserve Bank of
Zimbabwe (RBZ) had noted
with concern that NPLs,
which reached 18 percent
in September 2014, had
caused banks to scale down
on new loans especially to
productive sectors of the
economy.
This had the potential of
constraining economic turn-
around efforts. Finance and
Economic Development Min-
ister Patrick Chinamasa said
failure to pay back loans was
one of the biggest chal-
lenges affecting the econ-
omy. He said the ZAMCO
initiative was paying off, and
this would in the long run
increase banks’ “appetite” to
on lend.
“I am informed that some-
thing like $371 million col-
lateralised debt has already
been taken over,” he said.
By end of December last
year the ratio of NPLs had
declined to 10, 87 percent
largely due to loan disposal.
The value of secured NPLs in
the banking sector is esti-
mated at about $500 million
Minister Chinamasa said
the RBZ was engaging local
financial institutions to
reduce the cost of credit.
Meanwhile, the Minister said
the financial services sector
remained safe and sound
despite cash shortages expe-
rienced last week.
He said the cash shortages
had been brought under
control. He also said the
impending exit of Barclays
Bank from African opera-
tions, including Zimbabwe,
would not affect the local
market.
“The financial sector is in a
very good position not-with-
standing that Barclays has
said that it is exiting Africa.
Its closure will not have an
adverse impact on the finan-
cial services sector,” he said.
Minister Chinamasa added:
“It had long since been
apparent to me that Barclays
was on an exit strategy out
of Zimbabwe, I mentioned
this to them, but of course
they denied it, when I was
appointed Minister of Finance
in 2013.”
“The information I used
was basically their lend-
ing portfolio, at their peak
they used to run credit lines
of $800 million and when I
spoke to them and said they
were on an exit strategy it
had been run down to $40
million, from $800 million
to $40 million so I was not
surprised when the decision
was made.” he said.- New
Ziana●
8 news
NPL’s worth $370 million acquired
Minister Chinamasa

9. BH249

10. HARARE – Judges of the
Common Market for Eastern
and Southern Africa Court
of Justice have completed a
training programme aimed
at deepening their under-
standing of regional integra-
tion and dispute settlement
as they adjudicate on trade
and investment issues in the
region
Sponsored by the Trade Law
Centre, a non-profit making
capacity building organisa-
tion, the eight months old
Bench went through inten-
sive two-day training in
international trade law and
policy and dispute resolution
within regional economic
communities.
As Judge President of the
Court Lombe Chibesakunda
observed during the open-
ing of the training South
Africa this week, COMESA
Court judges are appointed
from different judicial back-
grounds to find themselves
thrust into the realm of
regional and international
trade law and policy.
“While this is not to say that
we have not, in one way or
another encountered dis-
putes that would fall into this
realm, the fact is that, as
Judges of a regional Court,
we must not only understand
the environment in which we
are dispensing justice, but
must also equip ourselves
with the necessary knowl-
edge and skills,” said the
Judge President.
She said it is extremely
important for the judges to
gain a sound understanding
of regional integration and
dispute settlement.
Judge President Chibe-
sakunda said the training will
have significant impact on
the quality and relevance of
jurisprudence that will ema-
nate from the Court.
She expressed gratitude to
the TRALAC team for the
generous contribution it was
making towards capacity
building in regional inte-
gration especially to the
COMESA Court judges and
these include;
“The rights granted under
the free movement of goods,
services and people policies
and how the Court inter-
prets the COMESA Treaty and
or decisions, directives of
Council of Ministers or the
Authority (of Heads of State)
when there is an allegation
of breach. This is in addition
to what the Tripartite Free
Trade Area entails and how
this will impact the work of
the Court.”
The training was conducted
by TRALAC team led by
Executive Director, Ms Trudi
Hartzenberg and Professor
Gerhard Erasmus.
The COMESA Court of Jus-
tice is the judicial organ of
COMESA whose core func-
tion is to adjudicate upon all
disputes between Member
States that would arise from
the interpretation and appli-
cation of the COMESA Treaty.
New Ziana●
10 news
COMESA completes training programme for judges

11. HARARE - The Industrial
index gained a further 0.10
points to end the day at
99.07 points.
Gains were in Padenga which
added $0,0020 to trade
at $0,0600, Simbisa was
$0,0012 higher at $0,1295
and Econet was up $0,0008
to close at $0,2308. OLD
MUTUAL inched up $0,0050
to $1,8150.
Cement maker PPC was the
only counter to trade in
the negative territory after
shedding $0,0025 to settle
at $0,7675.
The Mining index was flat
at 19.14 points. Bindura,
Falgold, Hwange and Rio
Zim maintained previous
price levels at $0,0095,
$0,0050, $0,0300 and
$0,1040 respectively- BH24
Reporter ●
ZSE11
Equities in further gains

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Padenga 3,44 6,00 Portland Cement 76,75 -0,32
Simbisa 0,93 12,95
Econet 0,34 23,08
Old Mutual 0,27 181,50
Index Previous Today Move Change
Industrial 98.97 99.07 +0.10 points +0.11%
Mining 19.14 19.14 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange
Previous
02 03
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13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
10 March 2016
Energy
(Megawatts)
Hwange 502 MW
Kariba 443 MW
Harare 30 MW
Munyati 17 MW
Bulawayo 18 MW
Imports 0 - 400 MW
Total 1286 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...
•TSL, Head office, 28 Simon Mazorodze Road, Southerton, 16 March, 1200hrs
• Old Mutual Zimbabwe, Steward Room, Meikles Hotel, March 30, 1430hrs
THE BH24 DIARY

14. JOHANNESBURG -RATING
agency Standard & Poor’s
(S&P) downgraded Bar-
clays Africa’s credit rating
on Wednesday to a level
below that of its rivals, after
reviewing the bank’s stra-
tegic importance to British
parent, Barclays.
The cut to sub-investment
grade follows the British
bank’s announcement that it
would sell down its 62,3 per-
cent stake in the group due
to strict regulatory require-
ments that affected Barclays
Africa’s ultimate returns to
the group.
It plans to do this over the
next two to three years.
S&P’s decision follows similar
action by rival agency Fitch
Ratings earlier this week.
The ratings agency down-
graded the group’s foreign
and local currency ratings
to one level above sub-in-
vestment grade for the same
reason.
Barclays Africa now has an
S&P national scale long-term
rating of zaA, which is in
the same bucket as BB+, a
sub-investment grade rating
on S&P’s ratings map.
The rating falls below those
of rivals Nedbank and Fir-
stRand, which both hold
ratings one notch higher at
zaAA-.
Standard Bank does not
publish its national scale
ratings.
But Barclays Africa said the
changes in ratings brought
the group in line with the
other major banks. "Absa
is rated zaAA-in line with
all the other peer banks in
SA," said Carli Cooke, acting
spokeswoman for the bank-
ing group.
S&P said its ratings on the
banking group no longer
incorporated support from
Barclays. They were also
no longer equal to those
of Absa, its core operating
subsidiary.
The agency affirmed Absa’s
ratings one notch higher,
which is still investment
grade.
"The rating on Absa does not
include any uplift for exter-
nal support, and is based on
our BBB-group credit profile
assessment for the Barclays
Africa group," S&P primary
analyst Samira Mensah said.
S&P believes Absa, which
is regulated by the South
African Reserve Bank, would
receive more protection from
the central bank than Bar-
clays Africa.
"The (Reserve Bank) has the
ability to halt Absa’s divi-
dend payments to Barclays
Africa to protect the bank’s
depositors," Ms Mensah
said.-BDLive●
regioNAL News14
S&P opts to cut Barclays Africa credit rating

15. Mr Michael Horn, leader of
the Volkswagen brand in the
US, abruptly left the auto-
maker as its American sales
continue to fall following
an emissions-test cheating
scandal.
The decision was mutual and
Horn, 54, will be replaced
for now by executive Hinrich
Woebcken, the company said
in a statement.
Mr Horn became the brand’s
US CEO in January 2014 and
improved dealer relations so
much that when the years
of cheating came to light in
September 2015, independ-
ent retailers lobbied for him
to remain on the job and
said his removal would be
“catastrophic.”
He had been a public face
for the brand, apologising
repeatedly at auto shows and
other events, and his depar-
ture caught analysts and key
dealers off-guard. Apologies
aside, US sales have fallen
for four straight months
and the Wolfsburg, Germa-
ny-based company has been
unable to reach an agree-
ment with US and California
regulators.
“People know this scandal
was rooted in Germany,
which is why this is so sur-
prising,” said Rebecca Lind-
land, senior analyst for auto
researcher Kelley Blue Book.
“In terms of scapegoats,
there are other goats out
there who would have been
better” to take the fall.
In October, Mr Horn told
Congress the cheating was
the work of a few employees
and not known by top exec-
utives in Germany -- though
acknowledging at the time:
“I agree it’s hard to believe.”
Two weeks later, Manager
Magazine reported that for-
mer chief executive Martin
Winterkorn and other senior
leaders knew of the manip-
ulation early on. The unre-
solved issues with US and
California regulators include
how to fix some 600 000 cars
on the road in the US and
ways to address environmen-
tal damage as they spew as
much as 40 times the allowa-
ble amount of smog-forming
nitrogen oxide.
The VW brand’s monthly
declines since the scandal
include a 13 percent drop
in February that was larger
than analysts had estimated.
Before the admission that its
diesel-powered cars included
a so-called defeat device
that controlled emissions
only during tests, those
models made up about 20
percent of VW sales in the
US In January, Horn said
that only a relatively small
number of US drivers wanted
to trade in their over-pollut-
ing cars.
“What could he have done,
besides give cars away?”
said Maryann Keller, an
independent auto industry
consultant in Stamford, Con-
necticut. “This is not fixable
by any one person in the
United States. This has to be
fixed by someone in Germa-
ny.”-Reuters●
internatioNAL News15
Volkswagen's US CEO exits group in a huff
Mr Michael Horn

16. By David Fickling
IT IS the best of times in
commodities markets, it is the
worst of times in commodities
markets as dramatic swings
abound.
Iron ore posted its biggest
gains on record on Mon-
day, while Brent crude broke
through $40 a barrel for the
first time in three months.
Then Chinese data on Tuesday
showed dollar-denominated
exports falling 25 percent, the
worst decline since May 2009.
What is going on?
There are reasons to take both
sets of data with a pinch of
salt. Market prices are prone to
speculation, momentum trading
and short squeezes.
Economic indicators can also
be tricky. How much of China’s
export collapse last month had
to do with the timing of Lunar
New Year?
Five indicators are worth
watching for a clearer picture
on where commodities are
headed.
The Baltic Dry index is invalu-
able to understand the state of
real commodities demand. The
benchmark for rates to charter
the ships that carry iron ore,
coal and grain is at depressed
levels, thanks to a global glut
of cargo capacity. As it tracks
real prices being paid to book
ships, there is no speculative
element. If real demand starts
to pick up, the Baltic Dry is one
of the first places it shows up.
Cement prices are a good indi-
cator of construction activity.
One of the reasons cited for
iron ore’s surge on Monday
was news that China’s legisla-
ture was prepared to accept a
larger budget deficit to keep
the economy humming.
The post-2008 building boom
showed that China’s leaders
were prepared to use con-
struction as a tool of economic
management in much the same
way as western central banks
use debt markets. If Chinese
leaders say the economy is
looking weak, pile into con-
struction materials.
Chinese electricity production
figures are seen by Premier Li
Keqiang as more reliable than
gross domestic product. The
numbers are timely, and hard
to fake as a guide to real eco-
nomic activity.
Chinese refinery-utilisation
rates are a useful cross-ref-
erence for real oil demand as
oil import data are muddied
by fuel flowing into strategic
stockpiles.
The thermal coal contract
prices that Japanese utilities
strike with Australian coal pro-
ducers in early April remain an
important benchmark because
they are pretty much quaran-
tined from speculative activ-
ity, giving a clue to where the
big players see coal markets
heading.
It is always worth checking
speculative moves against
more fundamental indicators.
After all, markets managed to
predict nine out of the past five
commodity booms.-Bloomb-
erg●
16 analysis16 analysis
Fundamental figures illuminate muddy commodity markets