Zimbabwe plans to have an arrears clearance plan ready by the third quarter of 2016 as the IMF board is scheduled to meet in May and receive a positive report on Zimbabwe's Staff Monitoring Program. The IMF meeting in May is expected to pave the way for Zimbabwe to start working on an arrears clearance strategy, with the goal of having a plan ready by September or October. In the interim, Zimbabwe will continue engaging with the IMF, World Bank and AfDB as it works to put together the necessary documentation for an arrears clearance strategy.

1. By Tawanda Musarurwa
HARARE – Zimbabwe says
an arrears clearance plan
should be ready by at least
the third quarter of this
year.
But prior to that the board
of the International Mone-
tary Fund (IMF) is expected
to receive the Article IV mis-
sion's report on Zimbabwe's
concluded Staff Monitoring
Programme (SMP).
The IMF board is set to meet
on May 2.
Minister Chinamasa said to
the extent that the mission's
report is received positively,
that will pave the way for
the country to start work-
ing on a arrears clearance
strategy.
"The IMF board is going
to sit on May 2, to receive
the report of the mission
which is positive. It's just
to receive and not to do
anything else, the report on
News Update as @ 1530 hours, Friday 22 April 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Zim to craft arrears clearance plan by Sept/Oct: Chimamasa
Minister Chinamasa

2. Article IV consultations and
our expectation is that that
report is positive....and we
cannot envisage a situation
where the board will query
the mission with respect to
their report so we are quite
optimistic that the report
will be received well by the
board.
"Now there after we now
begin the process of put-
ting the elements together
towards an arrears clearance
and we are envisaging that
this will be around Septem-
ber-October this year," said
Minister Chinamasa.
Earlier in March an IMF dele-
gation headed by Mr Domen-
ico Fanizza announced that
Zimbabwe had successfully
completed its final leg of the
SMP.
The SMP was a succes-
sor plan to the initial
reform programme that was
approved by IMF in June
2013.
It was initially supposed to
end in December 2013, but
was extended by another six
months to allow Zimbabwe
to meet set targets. The 15
months’ plan was approved
in October 2014.
The Minister added that in
the interim, Zimbabwe will
continue engaging its mul-
ti-lateral lending agencies,
the IMF, World Bank and the
African Development Bank
(AfDB) as the crafting of the
arrears clearance strategy
goes ahead.
"Meanwhile we are going
to have to put in place the
necessary documentation for
us to be able to get into a
position where the respec-
tive boards of the three
multi-lateral institutions can
sit down and hopefully by
November to adopt or accept
or strategy for arrears clear-
ance.
"Also between now and
then we are going to work
feverishly to come up with
a financing programme on
the basis of which we hope,
if we clear our arrears in
tandem, in reciprocation we
hope to get new financing
to support those sectors of
our economy which have a
transformative impact on the
recovery of our economy and
primarily we are looking at
agriculture and private sec-
tor growth," he said.●
2 news
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4. BH24
TAA:DI251386-Y22
4

5. HARARE - Zimbabwean
bakers will next month hold
a congress which is expected
to set up the Zimbabwe
Wheat board, an official has
said.
National Bakers Association
president Givemore Mesoem-
vura said setting up of the
board was decided at a con-
ference held last month.
“In March we held a confer-
ence which made a resolu-
tion that we come up with
a board that regulates the
activities of our value chain.
“We were given permission
to set up that board for the
value chain,” he said.
Mr Mesoemvura said the Zim-
babwe Wheat Board was in
the process of being set up.
“So we will be having a con-
gress in May that will launch
the Zimbabwe Wheat Board,”
he said.
He said the board had an
immediate task of coming up
with beneficial bread value
chain decisions.
“This one will focus on wheat
to bread value chain and try
to come up with amicable
positions and harmony for
the whole value chain for the
baking industry,” he said.
About 107 bakeries closed
shop over the past five years
due to the harsh operating
environment which precip-
itated by illegal sanctions
that Western countries
imposed in retaliation for
agrarian reforms which the
Government imposed to
address a colonial legacy.
The bakery industry is a crit-
ical part of the Zimbabwean
economy, accounting for 2.5
percent of Gross Domestic
Product.
It directly employs 3 500
people. In 2014, bread out-
put grew by over 20 percent
mainly driven by capacity
revamping and expansion of
local bakeries.
Bakeries which raised capac-
ity include Bakers Inn, which
added two bread lines, and
Lobels.- New Ziana.●
Bakers’ congress to set up wheat value chain board
5 news

6. BH246

7. BH247

8. By Funny Hudzerema
HARARE -Zimbabwe National
Water Authority (ZINWA)’s high
water rates have undermined the
growth of the irrigation sector
and deject efforts by Government
to improve agricultural productiv-
ity, farmers have said.
Farmers’ Unions Chairman Joint
Presidency chairperson Mr Stan-
cilous Goredema said the agricul-
ture sector has potential to boost
if the irrigation sector gets the
much needed support through
reducing the cost of water.
“It is therefore in light of the
above that as key stakeholders
in water resources management
as farmers we feel that there is
need to be more complementary
in the diagnosis and evaluation
of institutional and regulatory
arrangements determining or
undermining the success of
agriculture through water and
irrigation management.
“High water charges have
resulted in decline of the irrigated
land annually and it is under-
mining Government’s initiatives
to boost the agricultural sector,
especially horticulture,” he said.
“Currently local horticulture prod-
ucts are very expensive on the
market due high cost of produc-
tion through water costs being
the major contributor of costs.
Mr Goredema added that there is
need to review water policies for
farmers to produce more with the
current climate change.
“We therefore ask ZINWA to
find ways to rebuild its tattered
image with farmers and recon-
sider to lower the cost of water
to agriculture because it is the
major economic driver which if
taxed through high water charges
that will trigger skyrocketing of
all costs in the value chain of pro-
duction,” he said.
“At the moment the cost of
irrigating 1 hectare of wheat is at
$450 up to the harvesting period
which is very expensive. There is
need to continually review these
legislative instruments espe-
cially with the advent of climate
change.
“Adequate mitigatory measures
must be adopted so that farmers
are incentivized to produce,” he
said.●
ZINWA rates affecting irrigation
8 news

9. BH249

10. BH2410

11. Harare- The Zimbabwe
Electricity Transmission and
Distribution Company (ZETDC)
says introduction of pre-paid
meters in August 2012 has
transformed the behavior of
consumers in their power con-
sumption habits, resulting in
a reduction in energy use of
between 21 and 27 percent.
The ZETDC said the pre-paid
electricity meter project had
brought major benefits, such
as forcing customers to avoid
wasting power.
“Customers have been
empowered to manage their
electricity usage. The major-
ity of customers have cut
back consumption by between
21 and 27 percent leading to
considerable savings in both
electricity and money,” it said.
The first phase saw the instal-
lation of about 40 000 pre-
paid meters to both residen-
tial and industrial properties.
ZETDC said it was awaiting
delivery of 130 000 new pre-
paid meters to reduce the
backlog and cater for new
connections in new residential
areas.
“The prepaid meters have
reduced domestic electricity
demand, thus contributing to
the elimination of load-shed-
ding.
“Customers’ habits have
changed, as they now avoid
wastage and use electricity
efficiently. Capacity in the
range of 110 MW was released
as a result of the deployment
of prepaid meters,” it said.
Regarding new connections,
ZETDC said, “There is a boom
in new housing developments
countrywide.
This has resulted in a high
demand for pre-paid meters.
The utility has managed to
reduce the waiting list for new
service connections from over
35 000 to below 10 000 fol-
lowing stop-gap measures.”
To date at least 520 000 cus-
tomers have been migrated to
the pre-paid platform whilst
43 000 new customers have
been added to the platform,
making a total of 563 000
customers countrywide now
on pre-paid metering over a
period of 43 months
.- New Ziana●
11 news
Pre-paid metering has transformed customers’ behavior

12. BH2412

13. BH2413

14. HARARE -The mainstream
industrial index jumped 0.93
(or 0,95 percent) from the
previous week after record-
ing a number gains in the
week.
Industrials added 0.27 to
settle at 99.28 in today's
trades as conglomerate
Innscor shifted up $0,0092
to close at $0,2005, while
giant insurer Old Mutual
rose $0,0068 to $2,2444.
Also on the upside was
Hippo, which gained $0,0045
to trade at $0,2350, bev-
erages giant Delta which
was $0,0041 higher to
$0,5943 and Turnall which
was $0,0010 stronger at
$0,0120.
On the downside, SeedCo
was the sole counter, and
it lost $0,0200 to close at
$0,5600.
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
respectively.
On a week-on-week basis,
the mining index was
unchanged
- BH24 Reporter ●
ZSE14
Industrials close week on a high

15. BH2415

16. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Turnall 9.09 1.20 SeedCo -3.44 56.00
Innscor 4.80 20.05
Hippo 1.95 23.50
Delta 0.69 59.43
Meikles 0.55 7.30
Old Mutual 0.30 224.44
Index Previous Today Move Change
Industrial 99.01 99.28 +0.27 points +0.27%
Mining 20.16 20.16 +0.00 points +0.00%
16 zse tables
ZSE
Indices
Stock Exchange
Previous
today

17. 17 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
21 April 2016
Energy
(Megawatts)
Hwange 409 MW
Kariba 460 MW
Harare 30 MW
Munyati 13 MW
Bulawayo 22 MW
Imports 0 - 400 MW
Total 1189 MW
• 26th April 2016 - The Fifty-Sixth Annual General Meeting of the shareholders of British American Tobacco Zimbabwe (Hold-
ings) Limited; Place: British American Tobacco Zimbabwe Offices, 1 Manchester Road, Southerton, Harare; Time: 10.00 hours...
• CBZ, Stewart Room, Meikles, 28 April, 1500hrs.
• 05 May 2016 - Barclays Bank of Zimbabwe AGM; Place: Meikles Mirabelle Room; Time: 1500hrs
THE BH24 DIARY

18. The International Monetary
Fund has suspended aid and
cancelled a trip to Mozam-
bique, after revelations that the
country has been hiding debt of
about $1 billion.
Mozambique’s prime minister
Agostinho do Rosario travelled
to Washington DC on Tuesday
and confirmed the debts were
not reported to the IMF, accord-
ing to AIM, the national news
agency.
While the finance minister pre-
viously dismissed the reports as
“confusion,” the prime minister
essentially admitted to failing
to declare the hefty loans. The
extent of Mozambique’s debt is
still unclear. Last week, Mozam-
bican finance minister Adriano
Maleiane told journalists in
Washington DC that Mozam-
bique’s public debt was at $11
billion. Back home, his spokes-
man told state television that it
was $8 billion, according to local
reports.
Once buoyed by discoveries of
natural gas deposits, Mozam-
bique has now become high
risk, and the yields on the
bonds it took out to save state-
owned companies have soared
since the IMF’s announcement,
according to Bloomberg.
“The undisclosed borrowing
exceeds $1 billion and signifi-
cantly changes our assessment
of Mozambique’s macroeconomic
outlook,” Anotionette Sayeh,
director of the IMF’s Africa
department said on Friday.
The Mozambican government
borrowed the money from Swiss
multinational financial services
firm Credit Suisse and the
Russian VTB bank, she said. The
IMF was tipped off by reports,
later confirmed by the country’s
finance minister.
Before the loans made head-
lines, the IMF approved a
$282,9 million credit facility
for Mozambique, with $117,9
million paid out in December
to help the southern African
government reduce poverty and
preserve stability in the face of
lower commodity prices, the IMF
said in a statement on Dec. 18.
Praising Mozambique’s struc-
tural reforms, the IMF said that
while the country’s per-capita
income remained low, the econ-
omy remained robust with a
projected medium term growth
of more than 7 percent. The IMF
did, however, warn that Mozam-
bique needed an action plan to
ensure the profitability of EMA-
TUM, the state-owned fishing
company, before it became a
risk to the national budget.
Fishy business
That fishing company is now at
the center of what is becoming
a financial scandal. In 2013,
global investors lent money to
EMATUM to upgrade its tuna
fishing fleet, only to learn
that some of that money was
diverted to build expensive
military speedboats, according
to a Wall Street Journal report
(paywall).
In that same year, EMATUM
made a loss of $25 million.
Last year, the fishing company
refused to hand over its books
after numerous media requests,
according to AIM. The country’s
attorney general is now investi-
gating the fishing company, and
opposition parties have accused
the ruling party of using it as a
front to boost military spending,
according to AIM.
Some reports suggest that the
Mozambican government sold
the bonds on an estimated catch
of 200,000 tons of tuna worth
$200 million, but that year a
catch of only 6,000 tons was
recorded.
Facing default, the Mozam-
bican government restructured
those bonds, due in 2020, to a
longer term. It was only after
a downgrade triggered further
disclosures that bondholders—
and then the IMF—learned that
Mozambique had another loan,
adding to its already strained
debt burden.
In 2013 Credit Suisse and VTB
lent $622 million to another
state-owned company to pur-
chase navy equipment, a loan
which was later expanded to as
much as $900 million, according
to the WSJ.
The bonds and loans amounted
to least $1.47 billion in 2013
alone, representing a 25 per-
cent increase on the roughly $6
billion national debt reported at
the end of 2012, according to
the WSJ report. Credit Suisse
declined to comment.- Quartz●
regioNAL News18
Mozambique could lose hundreds of millions in funds over a hidden $1 billion debt

19. Asian stocks retreated from
an almost five-month high as
a stronger yen weighed on
Japanese shares and inves-
tors assessed earnings.
The MSCI Asia Pacific Index
fell 0,6 percent to 133.41 as
of 9:01 a.m. in Tokyo. The
measure is headed for a 0,9
percent gain this week, its
third straight such advance.
Alphabet Inc. and Microsoft
Corp. missed estimates when
they reported profits after
regular US trading, while
stalling global demand for
smartphones made a dent on
Sony Corp.’s results. Earn-
ings are the next test for an
equity rally that this week
pushed global shares to the
highest level since Decem-
ber.
“There’s been scant evi-
dence of sustained earnings
growth,” said Matthew Sher-
wood, head of investment
strategy at Perpetual Ltd.
in Sydney, which manages
about $21 billion. “Persis-
tent yen strength over the
medium term will be just
another factor weighing
on Japanese earnings-per-
share growth. It’s too soon
to declare that the earn-
ings recession is over in all
regions -- things look better
in the US, but central bank
policy in Europe and Japan
appears increasingly defla-
tionary and the prospect for
strong economic recovery
in emerging markets is still
hard to fathom.”
After a turbulent start to
2016, the rally in Asian
shares since mid-February
has pushed the dollar-de-
nominated benchmark index
back into positive territory.
It’s now up 1,1 percent
for the year, against a 4,4
percent decline for a meas-
ure of European shares and
a 2,3 percent gain for the
Standard & Poor’s 500 Index.
Still, Japanese stocks are
the second-worst performers
among 24 developed markets
tracked by Bloomberg, while
the Shanghai Composite
Index is down 17 percent.
Japan’s Topix index lost 0,9
percent on Friday, sliding
from an almost three-month
high, after the yen extended
Thursday’s 0,4 percent
advance to trade at 109,38
per dollar.
South Korea’s Kospi index
slipped 0,3 percent. Austral-
ia’s S&P/ASX 200 Index fell
0.4 percent. New Zealand’s
S&P/NZX 50 Index dropped
0,3 percent. Markets in China
and Hong Kong have yet to
open.
Futures on the FTSE China
A50 Index dropped 0,3 per-
cent in most recent trad-
ing, while contracts for the
Hang Seng Index slipped
0,6 percent. The Shanghai
Composite fell 0,7 percent
on Thursday, extending a
monthly decline.
The March rebound in main-
land equities is reversing
amid concern that improving
economic data and surging
credit will prevent the gov-
ernment from adding stim-
ulus.
E-mini futures on the S&P
500 slid 0,1 percent. The
US benchmark stock index
dropped 0,5 percent on
Thursday as corporate earn-
ings provided little incentive
for investors to send US
stocks higher.
West Texas Intermediate
crude gained as much as
0,9 percent in early Friday
trading, poised for a third
weekly advance as producers
suggest the door is still open
to agree on limiting supplies
after a proposal to freeze
output failed on Sunday. –
Bloomberg●
internatioNAL News19
Asia stocks drop as Japan falls on yen, investors weigh earnings

20. By Anver Versi
In a lengthy profile in The
Atlantic magazine by journalist
Jeffrey Goldberg, Obama broke
with convention and laid the
blame for the almighty mess that
was unleashed, following the
bombing and subsequent killing
of Muammar Ghaddafi, squarely
on Britain’s David Cameron and
France’s Nicolas Sarkozy’s failure
to plan for the aftermath and the
lack of follow-through.
Having stirred up a massive
hornets’ nest, Cameron, he said,
became ‘distracted’ and Sarkozy,
who used the bombing as a
macho chest-thumping gesture,
lost interest and was, not long
after, to lose the French presi-
dency.
The irony is that African Union
negotiators and political analysts
had warned of just such an out-
come, but no one ‘who mattered’
was listening. “Those who wear
the shoe know where it is pinch-
ing,” says a former ambassador
based in Libya.
“We know and understand Africa
and we say, please, the issue is
here, in this shoe. But the big
powers always know better and
they rush in and often chop off
the other foot!”
At last, the powers that be – or
at least, one of them – have had
the courage to admit that military
might does not equate to ‘know-
ing better’ and that precipitate
action based on wish-fulfilment,
or as Obama reveals so can-
didly in The Atlantic, on ‘what
is expected’ rather than what is
needed, can lead to an explosion
of disastrous consequences.
Some of these consequences are
washing up on Europe’s shores
as countries scramble to put up
barricades against the human
tide fleeing from brutal wars and
the nihilistic destructiveness of
the terrorist armies.
While Europe and the Americas
search their souls over what
to do with the mounting mass
of suffering humanity banging
feebly at their doors, Africa has
had to deal with similar situations
for decades. Ethiopia and Kenya
have some of the largest refugee
camps in the world but the
resources at their disposal are
shockingly meagre.
In the meanwhile, the mess that
was created by the bombing of
Tripoli and the brutal, televised
murder of Gaddafi is still wreak-
ing havoc in Africa.
The ramifications of the scatter-
ing of the former Libyan army,
composed in large part of soldiers
from neighbouring African states;
the disgorging of thousands of
tons of arms and ammunition
from Ghadaffi’s arsenal; the
destruction of all law, order
and social norms in Libya; the
dismantling of a thriving trading
infrastructure centred around
Libya and the creation of a fertile
environment for the worst of
the Islamic State to occupy and
thrive in, are still in full flow.
The Sahel is now on fire. Extrem-
ism is on the march, sweeping
like a scythe with its centre in
Benghazi, slicing up countries,
institutions, communities.
Boko Haram and Al-Shabaab,
both of which had been described
as ‘dying of thirst’ as their energy
sources dwindled prior to the
2011 Nato bombing of Libya,
appear refreshed and more dan-
gerous than ever.
Their appetite for committing
atrocities has increased several
degrees – while the poor girls
kidnapped from Chibok have still
not been found, an ever increas-
ing battalion of little girls is being
sent out to blow up themselves
and as many others as possible in
a macabre frenzy of death.
This forms just one set of the
consequences of poor decisions
and precipitate action by forces
far removed from the theatres of
war over which they hold such
sway. The price for someone
else’s blunders is being paid
by Africa in ruined economies
and shattered nations, lost and
destroyed lives.
Africa is now saying ‘Enough’!
Even before the infamous Berlin
Conference of 1884 which carved
up Africa among the powerful
European nations, the continent
was seen as little more than an
opportunity to exploit to the hilt
20 analysis20 analysis
Why Africa must sit at the global security high table

21. and a backdrop against which
European power struggles could
be projected.
The people, the land, the fauna
and flora of Africa mattered not
in the least, except in terms of
how they could be used for the
‘national interests’ of others.
Hundreds of thousands of Afri-
cans were killed and displaced
during the two world wars, fought
over causes that had nothing
to do with the continent, and
when this phase ended, a new
and perhaps more deadly phase
began – the Cold War, as the
West and the USSR fought their
proxy wars.
The pattern seems set to con-
tinue. Throughout, Africa’s voice
has been shouted down. The
continent is expected to provide
the muscle and personnel for
peace-keeping operations once
the UN steps in, but at the policy
level, the critical agenda-setting
level, Africa has been politely
ignored.
“No longer” say some of Africa’s
most prescient leaders. The
theme for this year’s Tana Forum,
the fifth, is ‘Africa in the Global
Security Agenda’.
The aim is to ensure that Africa
finds its place at the international
security high table and that it can
share its accumulated wisdom on
conflict resolution and peace-
building with the world.
The format of the Tana Forum
(the name derives from the fact
that it is held on the shores of
Lake Tana in Bahir Dar) is original
and very African.
The symbol of the Forum is the
baobab tree, the traditional Afri-
can meeting place during which
conflicts are discussed, ana-
lysed and more often than not,
resolved.
In addition, there is an Akan and
Ewe proverb that says: “Wisdom
is like a baobab tree, no one can
embrace it”. It takes many people
to sit down in a spirit of honesty,
discuss candidly and find solu-
tions acceptable to all.
This is why the format is informal
and the individuals invited, who
range from heads of state to
civil society representatives,
can examine the issues without
feeling national or special interest
constraints.
Nevertheless, the discussion level
is pegged high, with speakers
selected for their outstanding
expertise and experience in con-
flict resolution and peacebuilding.
For example, Kofi Annan, the
former UN Secretary-General, will
deliver the keynote speech this
time around.
Other participants will include
Ethiopia’s Prime Minister
Hailemariam Desalegn; Lou-
ise Mushikiwabo, Minister of
Foreign Affairs, Rwanda; former
presidents Thabo Mbeki (South
Africa), Joaquim Chissano
(Mozambique) and Pierre Buyoya
(Burundi); Dr Carlos Lopes,
Executive Secretary of UNECA;
Wolfgang Ischinger of the Munich
Security Conference, Germany;
Martin Kobler, Special Represent-
ative of the UN Secretary-General
for Libya and Andreas Eshete,
Special Advisor to the Prime Min-
ister of Ethiopia.
There will also be high-level rep-
resentatives from the AU, UN, the
International Crisis Group, the
Woodrow Wilson Centre, USA and
several other organisations and
institutions.
“Africa has become too impor-
tant,” says Tana Chairman,
General Olusegun Obasanjo, “to
be discarded from the global
security agenda and debate.” The
dire consequence of the failure
to consult those who know is
swirling well beyond the actual
theatres of war and threaten-
ing to cast a rabid religious and
right-wing mantle of darkness
over the future.
If Barack Obama is serious about
looking for a different matrix for
solving the world’s problems,
when “dropping bombs on some-
one to prove that you’re willing
to drop bombs on someone is
just about the worst reason to
use force”, then perhaps what
he is looking for is the traditional
African formula of sitting under
the baobab and finding solutions
based on deep wisdom. - New
African ●
21 analysis21 analysis