BH24 19 January 2016

Download BH24 19 January 2016

Post on 21-Feb-2017




0 download

Embed Size (px)


<ul><li><p>BH24 Reporters </p><p>HARARE -Industry and farmers have rejected the proposed 49 percent elec-tricity hike by Zimbabwe Electricity Transmission and Distribution Company (ZETDC ), saying the power company should improve efficiencies.</p><p>In a joint press statement by Confedera-tion of Zimbabwe Industries, Zimbabwe Farmers Union, Zimbabwe Commercial Farmers Union, Commercial Farmers Union and the Chamber of Mines of Zimbabwe, industry said the ZETDC should dispense with its banking halls and reduce headcount in various depart-ments. </p><p>"Significant cost reduction can be realised within the utility itself. With prepayment system now supposedly working , bank-ing halls can be dispensed of. Head-office overhead can be significantly reduced.</p><p>"Taking depreciation and return on assets (ROA) out of the revenue required, we find that payroll costs are 32 percent at ZPC (Zimbabwe Power Company) and 20 percent at ZETDC which we believe should be reduced like what is happening in all other sectors of the economy," said industry. Industry has also called for a review of the electricity tariff determina-tion model. "How relevant is the current model of tariff determination in the cur-rent circumstance of the Zimbabwean economy?"</p><p>In an earlier study, University of Zim-babwe economics lecturer Dr Takaw-ira Mumvuma posited that the power authoritys current pricing model has been rendered unworkable in terms of ensuring future infrastructure refur-bishment by the extensive debts owed to it by consumers. This limited finan-cial capacity has resulted in the power authority failing to institute significant </p><p>levels of infrastructure refurbishment and upgrades at its power stations.</p><p>The national power utility is currently able to provide around half of Zimba-bwe's 2 200 megawatt (MW) electricity requirement. It is currently dependent on imports from the region insofar as the thermal plant at Hwange is using ageing equipment, while the Kariba hydro-power plant is facing a water shortage challenge. The business community dismissed the proposed 49 percent elec-tricity tariff hike, saying both firms and individuals are currently struggling to pay the present tariff as evidenced by the high debt levels.</p><p>Various consumers owe the ZETDC around $1 billion. "We are seriously per-turbed by the decision that was taken to bring into the tariff equation, the emer-gency power from diesel generation. This proposed 200MW emergency power is </p><p>coming at a huge cost to the economy. "The investment by the economy in this proposed scheme can be better utilised if deployed to give a permanent solution to this energy crisis, even if it means that permanent energy will be realised three to five years down the line.</p><p>"All imported power is coming from util-ities operating in weak currencies, and therefore we believe the cost thereof should be low, not to cause a review of tariffs upwards," said the business repre-sentatives bodies. They added: Regional competitiveness is under serious threat with the currency crises in emerging/regional economies. Strong headwinds are also facing commodities.</p><p>With no monetary ability to devalue cur-rency, there has to be internal devalua-tion to remain competitive. This, by defi-nition, means costs (electricity included) has to come down.</p><p>News Update as @ 1530 hours, Tuesday 19 January 2016Feedback:</p><p>Industry, farmers reject proposed energy tariff hike</p></li><li><p>BH24</p><p>THOUSANDS OF PRIZES TO BE WON!Spend $300 instore and receive a scratch card - and guaranteed prize with every card.</p><p>Visit for more information Like us on</p><p> TERMS &amp; CONDITIONS APPLY. E&amp;OE. SEE IN-STORE FOR DETAILS. WHILE STOCKS LAST UP TO 24 MONTHS CREDIT AVAILABLE. CREDIT APPROVAL SUBJECT TO NORMAL TERMS &amp; CONDITIONS. INSURANCE &amp; FREE FUNERAL COVER IS INCLUDED IN ALL CREDIT OFFERS, GIVING YOU COMPLETE PEACE OF MIND.</p><p>PLUS HU</p><p>GE </p><p>DISCOUN</p><p>TS ON HU</p><p>NDREDS</p><p> OF</p><p>OTHER P</p><p>RODUCT</p><p>S IN-STO</p><p>RE!JANUARY 2016s </p><p>UNBEATABLE PRICES</p><p>RED HOTDEALSARE STILL ON</p><p>ZERO DEPOSIT FOR ALL SSB CUSTOMERS</p><p>YOUSAVE $30</p><p>YOUSAVE</p><p>$20</p><p>HURRY! DEALS</p><p> END 31 JANUARY 2016 OR WHILE </p><p>STOCKS LAST</p><p>$699NOW</p><p>$729WAS</p><p>3 Door Fridge</p><p>ASTRIL Home Entertainment Unit</p><p>$379NOW</p><p>$399WAS</p><p>H420 MWD Fridge</p><p>$629NOW</p><p>YOUSAVE</p><p>$70</p><p>$699WAS</p><p>YOUSAVE $100</p><p>Francesca JW 9pce D/R/S</p><p>$1,049NOW</p><p>$1,149WAS</p><p>2</p></li><li><p>By Tawanda Musarurwa</p><p>HARARE - The Hwange-based RHA tungsten mine is set to be commissioned next month, with plans to convert it from open-pit to underground mine progressing .</p><p>Parent company, AIM-listed Premier African Minerals, said plans to access the 870 under-ground level of the mine are currently on track.</p><p>In view of the on-going, Pre-mier expects to update its resource estimate at the tung-sten mine following the com-pletion of an underground implementation study.</p><p>The study, prepared by RHA and Whaleside Shaft Sinkers Zimbabwe, showed that the company would need $406 000 in capital cost for underground development.</p><p>It also confirmed that the pro-ject schedule for equipping the vertical shaft hoist and com-missioning of operations on </p><p>870 level remained on schedule for next month.</p><p>Premier chief executive Mr George Roach said the move to expedite the conversion of the mine had been necessitated by unpredicted occurrences.</p><p>"RHA was always planned, in the longer term, to be an underground mine. Unfore-seen developments during the initial open-pit operations led the company to accelerate the move to underground mining.</p><p>This change in strategy has resulted in the need to finance company overheads for an extended period with-out recourse to cash flow gen-erated from the open-pit and finance substantial additional debt generated by RHA, he said.</p><p>Mr Roach said Premier had suc-cessfully extracted and stock-piled ore from underground since late November and now anticipated RHA to generate positive operational cash flow during the course of this year.</p><p>According to the company, after February, the aim is to process approximately 32 000 tonnes of run of mine ore at an average grade of 6,20 kilogramme per tonne to produce 249 tonnes of concentrate at 63 percent WO3 over six months.</p><p>First production and positive operating cash flow from RHA before capital expenditure and working capital are now expected later this year.</p><p>3 NEws</p><p>RHA tungsten mine set for February commissioning</p></li><li><p>BH244</p></li><li><p>By Funny Hudzerema</p><p>HARARE - Government says it has stepped up efforts to explore alternative power generation ave-nues such as gas and wind to curb current power shortages that have hit the country.</p><p>Energy and Power Development Minister Dr Samuel Undenge said efforts are under way to exploit gas in different areas across the country to reduce power short-ages.</p><p>We have considered the use of gas which is in Lupane we are developing strategies to exploit it </p><p>for the benefit of the country.</p><p>There is gas which is in Lupane and as we speak now there is a company which is carrying out experimental drilling to see whether we can fully exploit that gas for commercial use so that we can use it to turn the turbines to generate electricity, he said.</p><p>Zimbabwe discovered billions of cubic feet of coal bed methane gas in Lupane and financial and infrastructure investments are required to harness the gas.</p><p>Estimates say the country is home to more than 40 trillion cubic feet </p><p>of potentially recoverable coal bed methane gas which is found in the Lupane - Lubimbi area.</p><p>Work is underway that side and we are expecting to get results in some few months concerning for how long we can use the gas available in the area.</p><p>Use of gas is part of Govern-ments initiatives to do away with power shortages in the country in future.</p><p>As Government we are also call-ing for partnerships to look for ways to use wind and solar to sup-ply power to all the different areas </p><p>around the country, he said.</p><p>He added that if these sources of energy are fully exploited along-side with other projects which are underway in the coming five years we will have enough power in the country.</p><p>The Government is also imple-menting a number of projects around the country to boost power generation projects, including long-term projects such as the Batoka Gorge Hydroelec-tric Power Station, which is being implemented alongside other independent power producers.</p><p>5 NEws</p><p>Zim eyes gas, wind as alternative power sources </p><p>02 03</p><p>ADD TO CARTSave big on selected</p><p>Products of your choice</p><p>PAYMENTYou can purchase</p><p>whenever, wherever using:</p><p>DELIVERYSpend $30 or moreon your purchases</p><p>and get freedelivery</p><p>01 Hello Convenience</p><p></p><p> BIG CONVENIENCE+BIG SAVINGS+BIG OPPORTUNITIES = BIG HAPPINESS</p><p>SHOP ONLINE!!</p></li><li><p>BH246</p></li><li><p>HARARE The United Nations World Tourism Organisation (UNWTO) has ranked Zimbabwe as one of the top 30 countries that have made major efforts to reduce travel restrictions and allow free movement of tourists in the past seven years.</p><p>In its 2015 Visa Openness Report released last week, the 157-member UNWTO, ranked Zimbabwe number 29 out of the top 54 member countries deemed to have made signifi-cant progress in relaxing tourist restrictions.</p><p>Overall, 54 destinations sig-nificantly facilitated travel for citizens of 30 or more countries by changing their visa policies from visa required to eVisa, visa on arrival, or no visa required, the UNWTO said.</p><p>These 54 destinations took a total of 6 357 individual measures, presenting 86 per-cent of all improvements made between 2010 and 2015. This demonstrates that destinations, </p><p>when reviewing their visa poli-cies, tend to thoroughly review and introduce changes.</p><p>According to the report, Zimba-bwe implemented a total of 117 reforms that made it easy for tourists to visit the country dur-ing the period.</p><p>At number one was the island country of Niue with 195 reforms followed by Micronesia, Palau, Djibouti and the Bud-dhist kingdom of Bhutan in the top five.</p><p>Mozambique, which was at number seven with 189 improvements was the top ranked African country with Guinea-Bissau, Togo, Cape Verde, Rwanda, Mali, Maurita-nia, Uganda, Kenya and Tan-zania also among top African reformers.</p><p>The UNTWO said the reforms led to an improvement to the worlds average openness in the period.</p><p>Prioritizing travel facilitation is central to stimulating eco-nomic growth and job creation through tourism.</p><p> We are pleased to see that a growing number of govern-ments around the world think likewise said UNWTO Secre-tary-General, Taleb Rifai.</p><p>UNWTO recommends desti-nations to focus in particular in a stronger segmentation of travellers, in improving visa application processes and entry procedures, in making use of regional integration opportuni-ties, and last but not least, on providing precise and accessi-ble information for tourists.</p><p>The UNWTO hopes that increas-ing openness will help the number of international tourist arrivals grow to around 1.8 bil-lion annually by 2030.</p><p>Zimbabwes Tourism and Hospi-tality Industry Minister, Walter Mzembi has on several occa-sions called for the lifting of </p><p>visa requirements.</p><p>Such a move, he has argued, would allow the country to achieve its target of attracting five million tourists and achiev-ing a $5 billion income for the industry by the year 2020.</p><p>Last year, the country relaxed the visa regime for Chinese tourists who are now allowed to get visas on arrival instead of applying for them while in their homeland.</p><p>In advocating scrapping of the visa, Mzembi quotes the bibli-cal prophet, Isaiah who encour-aged nations to keep their gates open to foreigners if ever they intend to cash in on the visitors wealth.Hostile western media has battered Zimbabwes image over the years, choking efforts to boost tourist arrivals.</p><p>But the industry has largely been resilient, and is continuing to defy the odds. </p><p>- New Ziana</p><p>7 NEws</p><p>UNwTO ranks Zim among top reformers</p></li><li><p>BH248</p></li><li><p>BH249</p></li><li><p>HARARE -The equities market sus-tained a downward trend following today's trades, on the back of prevail-ing weak macro-economic fundamen-tals.</p><p>The mainstream industrial index slipped a further 2.30 (or 2,13 per-cent) to close at 105.86 as giant bev-erages producer Delta lost $0,0303 to trade at $0,5803, while conglom-erate Innscor was down by $0,0300 to $0,2100 after announcing this </p><p>morning that pursuant to the groups strategy of focusing on core business, with effect from January 1, 2016, the group divested its interest in the six SPAR Corporate Stores which it oper-ated in Zimbabwe. Giant retailer OK Zimbabwe decreased by $0,0080 to settle at $0,0400 and Proplastics was $0,0010 weaker at $0,0230.</p><p>On the upside, Fidelity Life rose $0,0024 to close at $0,0974 as insurer NicozDiamond and banker NMBZ </p><p>were each $0,0010 up to $0,0161 and $0,0360, respectively.</p><p>Telecoms giant Econet added a mar-ginal 0,0009 to settle at $0,2010.</p><p>The mining index was again unchanged at 21.74 as Bindura, Fal-gold, Hwange and RioZim maintained previous price levels at $0,0128, $0,0050, $0,0300 and $0,1040, respectively.</p><p> - BH24 Reporter </p><p>ZsE10</p><p>Industrials bear run continues </p><p>Peace of mind is good </p><p> Commercial Bank</p><p>A member of the Deposit Protection Corporation</p><p>underwritten by</p><p>Standard Chartered Bank keeps you covered in more areas than one with our array of Bancassurance products.</p><p>To get the optimum home, motor, life, funeral or business cover, get in touch with us today.</p></li><li><p>BH2411</p></li><li><p>BH2412</p></li><li><p>MOvERs CHANGE TOdAy PRICE UsC sHAKERs CHANGE TOdAy PRICE UsC </p><p>NicozDiamond 6.62 1.61 OK ZIM -16.66 4.00</p><p>NMBZ 2.85 3.60 INNSCOR -12.50 21.00</p><p>FIDELITy LIFE 2.52 9.74 DELTA -4.96 58.03</p><p>ECONET 0.44 20.10 PROPLASTICS -4.16 2.30</p><p>INdEx PREvIOUs TOdAy MOvE CHANGE</p><p>INDUSTRIAL 108.16 105.86 -2.30 points -2.13%</p><p>MINING 21.74 21.74 +0.00 POINTS +0.00%</p><p>13 ZsE TABlEs</p><p>ZsE</p><p>INdICEs</p><p>stock Exchange </p></li><li><p>BH2414</p></li><li><p>15 dIARy OF EvENTs</p><p>The black arrow indicate level of load shedding across the country.</p><p>POwER GENERATION sTATs</p><p>Gen Station</p><p>19 January 2016</p><p>Energy</p><p>(Megawatts)</p><p>Hwange 550 MW</p><p>Kariba 285 MW</p><p>Harare 16 MW</p><p>Munyati 15 MW</p><p>Bulawayo 18 MW</p><p>Imports 0 - 100 MW</p><p>Total 1209 Mw</p><p>21 January 2016 - CZI/Herald Business Annual Economic Outlook 2016 Half day symposium; venue: Meikles Hotel, Harare; Time: 08:30 to 12:50hrs</p><p>10 February 2016 - Nampak Zimbabwe Annual General Meeting: venue 68 Birmingham Road, southerton, Harare: Time 12:00</p><p>THE BH24 dIARy</p></li><li><p>BH2416</p></li><li><p>JOHANNEsBURG - South Afri-ca's rand gained against the dollar early today and could continue to benefit from inves-tors culling their long dollar positions after a recent heavy sell-off.</p><p>The JSE securities exchange's Top-40 futures index was up 1.1 percent, suggesting the local bourse would open more than 470 points higher at 0700 GMT.</p><p>At 0755 GMT the rand was at 16,7400 to the dollar, up 0,65 percent from Tuesday's close at 16,8500.</p><p>"There does seem to be an overhang of long dollar posi-</p><p>tions," Standard Bank trader Warrick Butler said. "On a short term basis there is minor trend line support around 16,6800." The local currency has fallen more than 8 per-cent against the dollar this year, weighed down by con-cerns over the outlook for the si...</p></li></ul>