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1. By Tawanda Musarurwa
HARARE – Tongaat Hullet’s
Zimbabwe operations saw
their sugar production for
the year ended March 31,
2016 declined 7,4 percent to
412 000 tonnes.
The South Africa-headquar-
tered Tongaat Hulett's Zim-
babwe operations include the
wholly-owned Triangle Sugar
operation and its 50,3 per-
cent holding in Hippo Valley
Estates.
The Zimbabwe operations’
sales also declined to 403
000 tonnes during the period
under review, from 491 000
tonnes in FY2015.
Announcing its audited
News Update as @ 1530 hours, Monday 30 May 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Tongaat's Zim sugar production down 7,4pc
Triangle Sugar Mill

2. results for the year just
ended, Tongaat Hullet
reported that its Zimbabwe
division’s financial perfor-
mance had been affected by
a dip in sugar production as
well as underperformance of
its exports.
But local market sales vol-
umes were flat.
“The Zimbabwe sugar oper-
ating profit reduced to R15
million compared to R386
million in the prior year.
Sugar production of 412 000
tons was below the 445 000
tons of the prior year.
“There were both lower
export sales volumes and
lower export prices. Domes-
tic market sales volume lev-
els have been maintained,”
said Tongaat chairman Mr
Bahle Sibisi.
“The strength of the US
dollar has exerted pressure,
particularly in respect of US
dollar based costs (such as
wages and salaries) and Euro
based revenues.”
Zimbabwe was only one the
countries in the region to
experience declines in sugar
output as the effects of the
El Nino-induced drought hit
home.
“The quantum of irrigation
has been reduced as a miti-
gation measure against poor
rainfall and low dam levels,”
said Tongaat.
Broadly, the group’s sugar
production volumes fell 22
percent to 1,02 million met-
ric tons during the period
under review.
But Tongaat has forecasted
that output could rise to as
much as 12 percent to 1,15
million tonnes in the new
financial year, depending on
the rainfall situation going
forward.
“The estimate for sugar
production in total for the
2016/17 season is between
990 000 and 1 150 000 tons,
compared to 1 023 000 tons
last year.
“Rainfall during the sum-
mer of 2016/17 will deter-
mine whether more regular
production levels return in
2017/18.”
The firm is also upbeat on
revenue performance next
year.
"The next year should see
Tongaat Hulett benefit sub-
stantially from improved
local sugar market revenues
following the import protec-
tion measures implemented
in SA, Mozambique and Zim-
babwe," said the chairman.
In terms of the group’s
financial performance, Ton-
gaat Hullet’s operating profit
from sugar slid significantly
to R124 million during the
year from R806 million in
the prior year. The group’s
overall after-tax profit fell 26
percent to R770 million.
.●
2 news

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5. Papau New Guinea – The
African, Caribbean and
Pacific (ACP) Group of States
is an important platform
which Zimbabwe used to
lobby for the removal of
sanctions which the European
Union (EU) had imposed on
the country, a cabinet Minis-
ter said on Monday.
Foreign Affairs Minister Sim-
barashe Mumbengegwi said
this on the sidelines of the
ongoing 8th ACP summit of
Heads of State and Govern-
ment.
The remarks follow some
local media reports that the
ACP meeting was useless
and President Mugabe was
wasting national resources
travelling to attend it.
The ACP is a grouping of 79
countries from the African,
Caribbean and Pacific, all
of which except Cuba, have
links with the European
Union.
The EU imposed sanctions on
Zimbabwe in 2003 as it sided
with Britain in a dispute with
the Southern African country
over land reforms undertaken
to re-address colonial-era
ownership imbalance that
favoured whites.
Following lobbying at var-
ious ACP meetings, the EU
lifted the sanctions although
it maintained them against
President Robert Mugabe and
his family.
“So it’s a very important
platform because it is the
only group that defines our
relationship with the EU,”
said Minister Mumbengegwi.
Minister Mumbengegwi said
as long as the First Family
remain on sanctions, then
obviously the whole country
is still under sanctions.
The ACP and the EU are
bound together through the
Cotonou Agreement which
provides for countries from
the three regions access to
European markets on prefer-
ential terms.
The two parties have been
negotiating Economic Part-
nership Agreements through
the different regional group-
ings.
The EPAs are at different lev-
els of negotiation with some
almost complete while others
are at the interim stage.
The Agreement that binds
the two parties together
expires in 2020 and the 8th
ACP summit is expected to
discuss the framework of the
future relationship.
A group of Eminent Persons
led by former Nigerian Pres-
ident Olusegun Obasanjo is
expected to present a report
at the summit on the frame-
work of the future relation-
ship.
- New Ziana.●
5 news
ACP meeting important for Zimbabwe

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8. BH24 Reporter
HARARE- The Mines and
Mining Development Minis-
try has intensified efforts
to establish a Computerised
Mining Title Management
System (Cadastre System)
that will facilitate appropri-
ate planning, co-ordination,
communication, control and
decision making in the Min-
istry’s efforts to manage the
country’s mineral resources.
Mines and Mining Devel-
opment Minister Walter
Chidhakwa said recently that
his ministry was keep to
have the system running as
soon as possible.
“Currently consultations are
being done with the consult-
ant hired for this job and
work is being done to ensure
that the Cadastre Mining
Title Management System
becomes operational as soon
as possible. The Ministry is
now moving with speed to
finalise this project,” he said.
The Minister however warned
that the implementation of
the new system will not be
without challenges.
“As we migrate from the old
system to the computerised
Cadastre system, there will
be challenges of disputes
due to overlapping of mining
titles arising out of inherent
inaccuracies. Transitional
measures will be put in place
to address these challenges.
Information will be required
from mining title holders to
ensure that the transition is
smooth,” he said.
The computerised Mining
Cadastre is important in the
management of the entire
mining industry throughout
the value chain; that is from
licensing, actual projects
implementation and market-
ing including accounting of
production by all mining and
mineral entities.
The system will result in the
modernisation of the mining
title management system in
line with regional and inter-
national best practices to
provide for a faster and more
efficient system which also
offers security of tenure to
investors.●
8 news
Ministry of Mines moves on Cadastre System

9. BH249

10. HARARE - Tourism and Hospi-
tality Industry Minister Walter
Mzembi on Monday said he is
now seeking the endorsement
of the African Union (AU) in
his bid to become the next
United Nations World Tourism
Organisation (UNWTO) secre-
tary general.
Minister Mzembi, who
announced his candidature
for the post in April this year,
already has the backing of the
Sadc regional bloc.
The post, which is currently
held by Jordanian Dr Taleb
Rifai, falls vacant next year.
Updating the media on his
campaign, Minister Mzembi
said he was confident of
getting the AU’s endorsement
at its next summit in Kigali,
Rwanda in July.
“The next objective must be to
seek endorsement of the can-
didature by the African Union-
so that this candidate, myself,
officially becomes Africa’s
candidate,” he said.
“I am pleased to share with
you the fact that the requisite
documentation has already
been filed with the AU’s can-
didature committee in Addis
Ababa.”
Minister Mzembi also gave a
brief insight into the vision he
has for the UNWTO if elected
into office, including enhanc-
ing intra and inter-regional
collaboration to boost tourism.
“In essence, I seek to ensure
that the organization achieves
universal membership and
improves affiliate and associ-
ate membership,” he said.
“More broadly still, we are
competing for this position
with a clear vision to ensure
a UNWTO that is responsive
to member states aspirations
for global tourism that is
inclusive, integrative, toler-
ant, responsible, empowering,
equitable, sustainable and is
an effective tool for citizen
diplomacy.”
Minister Mzembi, who is
currently the chairman of the
UNWTO Regional Commission
for Africa, said he and his
support team had stepped up
campaign efforts.
He said he was taking advan-
tage of his current UNWTO
post to campaign at every fora
he is invited to.
Minister Mzembi, who served
as a member of the UNWTO
Executive Council from 2009
to 2013, oversaw the suc-
cessful bidding and co-hosting
of the 20th UNWTO General
Assembly by Zimbabwe and
Zambia in 2013.
The UNWTO was established
as a specialized agency of
the United Nations in 1974
and has a membership of
157 countries, six associate
members and over 480 affil-
iate members representing
the private sector and other
stakeholders. Zimbabwe joined
the organisation in 1982.The
UNWTO is responsible for the
promotion of sustainable and
universally accessible tourism
worldwide.
-New Ziana.●
Mzembi seeks AU support for top UNWTO post
10 news
Minister Walter Mzembi

11. HARARE -The mainstream
industrial index opened the
week on a firm note, adding
0.35 to close at 104.78.
Spirits-maker AFDIS led the
risers with a $0, 0378 gain
to settle at $0, 4378, while
giant telecoms Econet Wire-
less increased by $0, 0082
to close at $0, 2298 while
Simbisa was $0, 0050 higher
at $0, 1400.
Also gaining was conglom-
erate Innscor, which rose by
$0, 0019 to $0, 2025 and
Zimre Holdings was mar-
ginally up at $0, 0179 after
picking up $0, 0012.
On the downside, giant
insurer Old Mutual lost $0,
0078 to trade at $2, 2122
while Barclays went down
$0, 0030 to $0, 0240. FBC
Holdings was $0, 0010 lower
at $0, 0640 with SeedCo
losing $0, 0014 to close at
$0, 5700.
Beverages giant Delta went
down by a marginal $0, 0003
to close at $0, 7097.
The mining index was steady
at 25.24 as Bindura, Falgold,
Hwange and RioZim main-
tained previous price levels
at $0, 0120, $0, 0050, $0,
0300 and $0, 1610 respec-
tively
. BH24 Reporter ●
Equities market firm
11 zse
02 03
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12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
AFDIS 9.45 43.78 Barclays -11.11 2.40
ZIMRE 7.18 1.79 FBC -1.53 6.40
Econet 3.70 22.98 Old Mutual -0.35 221.22
Simbisa 3.70 14.00 SeedCo -0.24 57.00
Innscor 0.94 20.25 Delta -0.04 70.97
Hippo 0.20 20.00
Index Previous Today Move Change
Industrial 104.43 104.78 +0.35 points +0.34%
Mining 25.54 25.54 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange
Previous
today

13. 13 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
30 May 2016
Energy
(Megawatts)
Hwange 423 MW
Kariba 665 MW
Harare 0 MW
Munyati 28 MW
Bulawayo 23 MW
Imports 0 - 400 MW
Total 1314 MW
31 MAY -- Pearl Properties (2006) Limited Annual General Meeting; Place: Royal Harare Golf Club, Harare; Time: 14.30hrs
2 JUNE -- Zimplow Annual General Meeting; Place: Zimplow Holdings Limited Head Office, 36 Birmingham Road, Harare;
Time: 10:00hrs
9 JUNE -- First Mutual Holdings Annual General Meeting; Place: Royal Harare Golf Club, Harare; Time: 14:30hrs
THE BH24 DIARY

14. Most currencies weakening
against the dollar sent Tokyo
Stock Exchange’s major indi-
ces up about 1% and China’s
slightly higher on Monday
morning ahead of the JSE’s
opening.
The dollar strengthened after
US Federal Reserve chair
Janet Yellen said in a speech
on Friday night interest rate
increases in the near future
would be appropriate.
This saw the rand weaken
1,8 percent from about
15,50 before Yellen’s speech
to 15,78 on Monday morning.
Commodities suffered, with
gold falling 1 percent to $1
200 per ounce in Singapore
and oil remaining under $50/
barrel.
Sugar producer Tongaat
Hulett said in a trading
statement on May 20 that it
expected to report on Mon-
day headline earnings per
share for the year to end-
March fell 17,9 percent from
the previous year’s R8,26.
Severe drought saw its
South African sugar crop
fall 40 percent to 323,000
tonnes, its Zimbabwean pro-
duction fall 7 percent to 412
000 tonnes, its Mozambican
production fall 14 percent to
232 000 tonnes and Swa-
ziland 2 percent to 56 000
tonnes.
Tongaat Hulett said it
expected to report an over
R1bn profit from the sale of
121 hectares land. In the
previous financial year, it
reported R829m profit from
selling 108 hectares.
Property developer Acsion
said on Friday it expected
to report on Monday earn-
ings per share for the year
to end-February of between
157,91c and 189,49c.
– BDLive●
regioNAL News14
Weaker rand could boost JSE

15. Gold fell for a ninth day, its
longest losing streak in a year,
and the dollar strengthened
after Federal Reserve Chair
Janet Yellen said an inter-
est-rate hike is likely in coming
months. Japanese shares led
gains in Asia, while European
stocks held near a one-month
high.
Bullion declined with silver
and platinum as the prospect
of higher borrowing costs in
the US damped the appeal of
non-interest-bearing assets.
The Bloomberg Dollar Spot
Index climbed to its highest
since March, while China’s
yuan dropped by the most in
two weeks as the central bank
weakened the currency’s daily
reference rate. The yen sank
to a one-month low versus the
greenback and Japanese shares
posted their highest close in
May after an aide to Prime
Minister Shinzo Abe said a
sales-tax increase will probably
be delayed. Financial markets
in the US and UK are shut for
holidays.
Bloomberg’s gauge of the
greenback’s strength is poised
for its biggest monthly jump
since September 2014, having
surged as Fed Funds futures
showed the odds of a US inter-
est-rate hike by July more than
doubled to 54 percent. Yellen
said Friday that an improving
American economy would prob-
ably warrant another increase
in borrowing costs “in the
coming months,” a view also
expressed by several regional
Fed chiefs in recent weeks. She
was speaking after data showed
growth picked up more than
was previously estimated in the
first quarter.
“The central issue for a lot of
markets, including commodi-
ties, is now the timing of that
next rate hike,” Ric Spooner,
chief market strategist for CMC
Markets Asia Pacific Pty, said by
phone from Sydney. “If we do
see a June or July increase then
that just increases the possibil-
ity of a second one this year.”
Japan released retail sales
figures on Monday showing
that growth stalled in Asia’s
second-biggest economy,
bolstering the case for a
planned sales-tax hike to be
postponed. Sweden is due to
report gross domestic product
data, while economic sentiment
indicators for the euro area
are also scheduled. Germany
has inflation numbers coming
and Finance Minister Wolfgang
Schaeuble will be speaking at a
conference in Berlin
Commodities
Gold for immediate delivery
dropped as much as 1 percent
to $1 200 an ounce, a level
last seen in February. Money
managers’ cut bullish bets on
the metal by the most this year
during the week ended May 24,
according to US Commodity
Futures Trading Commission
data. Silver slid 1,6 percent
as of 8:13 a.m. London time,
while platinum retreated 0,8
percent. Copper futures slipped
1 percent in New York, snap-
ping a four-day advance. The
London Metal Exchange is
closed on Monday.
West Texas Intermediate crude
fell 0,1 percent to $49,28 a
barrel ahead of this week’s
meeting of the Organisation of
Petroleum Exporting Countries.
Issues including a production
freeze will be discussed at the
June 2 talks, said Iraq’s Deputy
Oil Minister Fayyad Al-Nima,
who will head his ministry’s
delegation.
Currencies
The Bloomberg Dollar Spot
Index advanced 0,2 percent,
headed for its best close since
mid-March. South Korea’s won
led losses among major curren-
cies, sliding 1 percent.
The yen fell as much as 0,9
percent to 111,33 per dollar.
The currency’s only back-to-
back quarterly gains since
Prime Minister Abe came to
power occurred when Japan’s
sales tax was last raised in
March 2014. That increase,
aimed at reducing the world’s
largest public-debt burden,
tipped the economy into a
recession.
The yuan slid as much as 0,3
percent to a four-month low
in Shanghai after the People’s
Bank of China weakened its
daily fixing by 0,45 percent.
With the US poised to raise
interest rates and pressure
building on China to ease
monetary policy, cash outflows
will accelerate, said Song Yu,
China economist for Goldman
Sachs/Gao Hua Securities Co.
in Beijing
– Bloomberg●
internatioNAL News15
Gold sinks as dollar gets boost from Yellen; Japan’s stocks rise

16. By Emmanuel Nnandozie
AFRICA’S vulnerability to
shocks from outside the con-
tinent is becoming more and
more obvious. The collapse in
commodity prices has slowed
growth sharply in many coun-
tries.
Increased droughts and
floods linked to climate
change are fuelling food inse-
curity, homelessness and dis-
ease. These shocks have hit
at a time when the continent
is already struggling with
severe financial constraints
that threaten development.
Increasing the region’s resil-
ience to external shocks must
be a priority. As the African
Union (AU) has recognised,
this can best be achieved by
industrialisation, which would
create strong, diversified
economies.
Such progress would also
help tackle the challenge of
non-inclusive growth, rising
inequality and the lack of
jobs for the continent’s young
people. Achieving this transforma-
tion requires a fundamental
review by countries of their
policies to ensure they meet
16 analysis16 analysis
Africa needs strong buffer policies

17. 17 analysis17 analysis
the right priorities and can
deliver the right results.
But the accuracy and thor-
oughness of these reviews
can be undermined by a lack
of skills and capacity. The
African Capacity Building
Foundation (ACBF) aims to
provide this expertise.
Over the last 25 years, we
have trained more than 50
000 people in macro-eco-
nomic policy analysis, finan-
cial management and pub-
lic administration, with the
aim of improving their policy
formulation skills and deci-
sion-making.
The ACBF is now extending
its work to close the skills
gap in science and technol-
ogy. The AU and ACBF have
identified, for example, a
shortfall of 4,3-million engi-
neers across the continent as
a major obstacle to continued
progress.
Only by investing in mathe-
matics, science and technol-
ogy can we create the human
capital needed to build the
"vibrant Africa" set out in the
AU’s Agenda 2063.
What is also needed is a
determined focus on how the
continent better harnesses
its commodity wealth and
responds to the challenges of
climate change. This means
putting right the serious pol-
icy limitations the ACBF has
identified.
On the harnessing of the con-
tinent’s natural resources,
we are particularly concerned
about the "narrow focus on
enforcement; inaction regard-
ing underlying socioeconomic,
political and environmental
issues; and the absence of
strong regional and interna-
tional policy action".
These capacity limitations
have prevented Africa from
earning value from its natural
wealth and have helped unbal-
ance economies. More invest-
ment is required urgently to
build the expertise needed to
smooth out the effect of the
volatile commodity prices on
countries.
Climate change is already
having a devastating effect
across the continent, and
African economies need to
increase the pace at which
they are tackling this chal-
lenge.
The majority of African econo-
mies depend on rain-fed agri-
culture, which is extremely
vulnerable to extreme
weather conditions. Capac-
ity will need to be developed
to ensure there are ear-
ly-warning systems to detect
extreme weather events and
ensure there are systems for
rapid responses to natural
disasters.
The ACBF will be working
closely with African countries
and continental organisations
to strengthen capacities to
collect and analyse data on
climate change.
Tackling these twin chal-
lenges needs extra resources,
but they come at a time
when government budgets
are already under pressure.
Attention must also be given
to developing the capac-
ity to improve tax collec-
tion and mobilise savings for
investment, to encourage the
involvement of the private
sector in development and in
supporting entrepreneurship.
An effective policy reas-
sessment cannot, of course,
be achieved overnight. It
is a long-term process that
requires the evidence to be
collected and studied so pol-
icies are put in place that
meet the continent’s ambi-
tions at both national and
regional level. The ACBF is
committed to continuing to
play its role in this crucial
task. – BDLive●
• Prof Nnandozie is the
executive secretary of the
African Capacity Building
Foundation