BH24 Reporter

HARARE – Diversified listed concern Meikles Limited on Tuesday said its turnover for nine months to December 30, 2015 stood as $347 million, a 12 percent upturn from the $310 million posted a year ago.

In a trading update, the group said overall margins, together with operating income margins at 21,8 per-cent, were marginally better than those of the previous period of 21,2 percent, but highlighted that this was not the complete picture.

“The sales mix in the group as a whole does distort this comparison, as margins do

vary over group activities,” said management.

Expenses expressed as a percentage of turnover

decreased from 21 percent to 19 percent.

News Update as @ 1530 hours, Tuesday 08 March 2016

Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw

Meikles 9-mnth turnover rises 12pc

Earnings before interest, tax, depreciation and amorti-zation (EBITDA) – a measure of a company's operating performance – increased by $9,5 million compared to the prior period.

Meanwhile Meikles told its shareholders that it had reached an agreement with Government which has undertaken to repay the out-standing funds in terms of the Reserve Bank of Zimba-bwe (RBZ) Debt Assumption Act of July 2015, lauding the development as a “progres-sive interaction between Government and a partici-pant in the private sector.”.

“The Government has under-taken to repay the outstand-ing funds in terms of the Reserve Bank of Zimbabwe Debt Assumption Act of July 2015....The group will now be able to grow to its poten-tial and develop its strat-egies, without the specific uncertainties caused in the period when negotiations

were stil l ongoing.”

“The financial implications of the agreement with Govern-ment will be included in the

Group’s audited results for the full year to March 31, 2016,” added Meikles.

.●

2 NEws

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HARARE - Government is now the major shareholder in mobile phone company, Telecel Zimbabwe after fully paying $40 million for the 60 percent stake in the firm previously

owned by Russian telecoms group, Vimpelcom, an official said on Monday.

Government and Vimpelcom signed an agreement for the sale late last year. Zarnet, a telecommunications com-pany owned by government, acquired the stake on its behalf.

Vimpelcom said it would only transfer ownership after the Zimbabwean government, through its proxy, fully met the conditions of the sale. Deputy Minister Information Communication Technology, Postal and Courier Services, Dr Win Mlambo told journal-ists government had fully paid the purchase price last month.

“Government acquired Telecel using a special instrument from Zarnet and that has been completed,” Dr Mlambo said.

Vimpelcom decided to divest from Telecel after struggling to dilute its majority share-holding as required in terms of the country’s indigenisation laws.

Local ownership laws demand that indigenous Zimbabweans

own at least 51 percent in the firm.

The other 40 percent in Telecel was already owned by locals. Dr Mlambo said the acquisition was smooth and did not cause any disruptions for the company.

“Taking over implies hostil-ity, there was not anything hostile about it,” Dr Mlambo said, adding telecoms Minis-ter, Supa Mandiwanzira would

soon disclose in full details pertaining to the acquisition of the stake.

Reports last week indi-cated that pension fund, the National Social Security Authority had contributed $30 million out of the $40 that was required to acquire the stake. Zarnet had earlier paid a $10 million deposit.

Telecel is the country’s small-est mobile phone services provider with an estimated 4.6 million subscribers at the end of October 2015. At the time, about 60 percent of its subscribers were said to be inactive according to the Postal and Telecommunica-tions Regulatory Authority of Zimbabwe.

Through the Telecel acquisi-tion, Government firmed its grip on the mobile telecoms sector as it already wholly owns NetOne, the second big-gest network provider.-New Ziana●

5 NEws

Government concludes Telecel stake acquisition

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BH24 Reporter

HARARE – Regional resources firm Premier African Minerals last week received a direct subscription for £500 000 in new ordinary shares that will be used fur-ther its exploration projects and provide additional work-ing capital.

Premier is in the process of developing its flagship project - the RHA Tungsten Mine that is located approx-imately 270km northwest of Bulawayo..

The AIM-listed resources firm said the subscription consisted of an issue of 100 million new ordinary shares, at a subscription price of 0,5

pence each, conditional on admission.

Premier CEO Mr George Roach said the funds will go a long way in financing the mainly the RHA Tungsten project.

"The capital will support existing project development requirements and general working capital in the period leading up to achieving pos-itive operational cash flow from the RHA Project, that is expected this spring, and we do not currently anticipate

any further need to approach the market for finance to support general working cap-ital in this period," he said.

"In addition, the ongoing market conditions in the nat-ural resources sector will, in our view, continue to present potential attractive oppor-tunities for the company to further expand its portfolio of assets, and the proceeds of the subscription will also provide additional capital to consider any such opportuni-ties as and when they arise," he added.●

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Additional funds for RHA Tungsten Mine

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BH24 Reporter

HARARE –The Zimbabwe Council for Tourism is imple-menting a number of meas-ures aimed at attracting more tourists into the country in order for the sector to meet its 6 percent growth.

ZCT president Mr Francis Ngwenya said the tourism sector is going to achieve growth despite a decline in tourist arrivals in other source markets like South Africa.

“The plan and prediction is that there should be further growth this year, even though the growth might be 1 or 2 percent but we are looking at restoring our growth target of 6 percent every year.

“Tourism is supposed to grow by 6 percent or more so we are trying to restore our overseas markets which in the past produced the highest number of arrivals,” he said.

He was speaking during a press conference to brief the media on the outcomes of Tourism Convention which was held in Victoria Falls last month.

Mr Ngwenya said tourism arrivals fell from 600 000 arrivals between 1990 and 2000 to around 70 thousand per year.

“Currently the bulk of our

tourists are coming from our traditional markets France, UK, US and Australia. The South African market unfor-tunately is declining due to the depreciation of the rand but we hope that market will grow once the rand stabi-lises,” he said.

Statics from the Zimbabwe Tourism Authority indicated that Zimbabwe’s overseas

markets is growing, in 2014 the arrivals from overseas amounted to 283 000.

The Tourism Convention which was held last month has proposed that for the tourism sector to regain growth there is need to improve our roads, reduce number of road blocks and refurbishment of local airports

.●

11 NEws

ZCT eyes tourism sector growth

Mr Francis Ngwenya

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HARARE - The local bourse was back trading in the red today after the mainstream industrial index eased 0.24 to close at 98.96 in trading dominated with losers.

Seed producer SeedCo dropped $0,0073 to trade at $0,7927, while giant retailer OK Zim lost $0,0053 to $0,0300 while Hippo Valley shifted down $0,0025 to set-tle at $0,3370.

Crocodile skin producer Padenga was down by $0,0020 to close at $0,0580 and conglomerate Inns-

cor was $0,0005 weaker at $0,1800.

BAT was the only counter trading in the positive terri-

tory after adding $0,1472 to close at $11,1472.

The mining index was flat again at 19.14 points as all

the mining counters main-tained previous price levels

- BH24 Reporter ●

ZsE14

Industrials back in the red

BH2415

MovERs CHANGE TodAy PRICE UsC sHAKERs CHANGE TodAy PRICE UsC

BAT 1.33 1,114.72 OK ZIM -15.01 3.00

DELTA 0.15 56.50 PADENGA -3.33 5.80

SIMBISA -1.30 12.83

SeedCo -0.91 79.27

HIPPO -0.73 33.70

INNSCOR -0.27 18.00

INdEx PREvIoUs TodAy MovE CHANGE

INDUSTRIAL 99.20 98.96 -0.24 pointS -0.24%

MINING 19.14 19.14 +0.00 POINTS +0.00%

16 ZsE TABlEs

ZsE

INdICEs

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BH2417

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19 dIARy oF EvENTs

The black arrow indicate level of load shedding across the country.

PowER GENERATIoN sTATs

Gen Station

08 March 2016

Energy

(Megawatts)

Hwange 404 MW

Kariba 460 MW

Harare 30 MW

Munyati 17 MW

Bulawayo 0 MW

Imports 0 - 500 MW

Total 1251 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...

THE BH24 dIARy

JoHANNEsBURG -FirstRand Ltd, South Africa's big-gest bank by market value, reported a slight increase in half-year profit on Tues-day as the effects of weak consumption and investment spending in Africa's most advanced economy weighed.

The company said diluted headline earnings per share (EPS) rose to 185,4 cents in the six months to end December compared with 180,5 cents a year earlier.

Headline EPS, the main profit measure in South Afri-can that strips out certain one-off items.

Lending to companies had become the mainstay for banks in South Africa as banks retreated from the high margin but risky business of giving personal unsecured loans.

But a slowing economy, estimated to grow at less than 1 percent in 2016 due to drought and a collapse in commodity prices, has

tempered corporate credit demand, FirstRand said. - Reuters●

REGIoNAl NEws 20

FirstRand H1 headline EPs rises

PREToRIA - South Africa's cur-rent account deficit widened to 5.1 percent of gross domestic product in the fourth quarter of 2015 from a revised shortfall of 4.3 percent in the third quarter, the central bank said on Tuesday.

Economists surveyed by Reuters had expected a 4.35 percent gap for the fourth quarter. Year-on-year, the current account deficit shrunk to 4.4 percent of gross domestic product compared to a 5.4 percent deficit in 2014.

Exports slumped while imports rose during the quarter, leading to a sharp increase in the trade balance deficit to 57 billion rand ($4 billion) compared with a revised 22 billion rand gap in the third quarter, the reserve bank said in its quarterly bulletin.

"The bank has officially identi-fied November 2013 as the upper turning point in the business cycle, implying that the South African economy is now officially in a downward phase," the central bank noted.- Reuters●

sA's Q4 current account deficit

widens to 5,1pc of GdP

Brent oil halted gains above $40 a barrel as forecasts that US stockpiles would remain at the most since 1930 competed with specula-tion producers may agree to an output freeze.

Futures in London lost as much as 1.6 percent after closing above $40 for the first time since December on Monday. US supplies probably rose 3,5 million barrels last week, according to a Bloomberg News sur-vey before government data Wednesday. Ecuador’s foreign ministry said Latin American producers will meet on Friday to discuss oil prices, while Russia said last week major suppliers may meet by April 1. China’s crude imports rose to a record in February, while product exports fell to the lowest in nine months.

“Fundamentals are not there yet, but we’ve also seen a change in sentiment now over the past couple of weeks,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a Bloomb-erg Television interview. “The market is starting to believe

now we have seen the low.”

Oil in London has advanced more than 40 percent since slumping to a 12-year low in January amid speculation a proposal to freeze produc-tion will trim a global glut. A meeting among major producers to discuss cap-ping output may be held in Russia, Doha or Vienna sometime between March 20 and April 1, Russian Energy Minister Alexander Novak said on state television last week.

Brent for May settlement fell as much as 65 cents to $40,19 a barrel on the London-based ICE Futures Europe exchange and traded at $40,30 at 2:40 p.m. Hong Kong time. The contract

climbed $2,12 to $40,84 on Monday, the highest close since Dec. 4. The global benchmark crude was at a premium of 99 cents to West Texas Intermediate for May.

China Imports

WTI for April delivery dropped as much as 1,5 percent to $37,35 a barrel on the New York Mercan-tile Exchange. The contract gained $1,98 to $37,90 on Monday, the highest close since Dec. 24. Total volume traded was about 19 percent above the 100-day average.

China increased crude imports by 19 percent in February to 31,8 million met-ric tons from a month earlier, according to data from

the Beijing-based General Administration of Customs on Tuesday. That’s equivalent to about 8,04 million barrels a day, the highest daily aver-age on record. Oil product exports slid a second month to 2.99 million tons.

Us stockpiles rise as pro-duction falls:

• US crude output fell for a sixth week to 9,08 million barrels a day, according to Energy Information Adminis-tration data. Stockpiles are at 518 million barrels, the most since 1930.

• There will probably be a price correction by the end of the year, Suhail Al Maz-rouei, energy minister of the United Arab Emirates, said Monday.

• Saudi Arabia, Russia, Qatar and Venezuela agreed last month they would freeze output, if other producers followed suit, in an effort to tackle a global oversupply in the oil market.

.-Bloomberg●

INTERNATIoNAl NEws 21

Brent halts gain near $40 as stockpiles counter freeze proposal

By Evans wadongo

The African Development Bank just launched the Africa Visa Openness Report 2016, and it highlights a huge problem: as Africans, we cannot move easily between our countries.

On average, Africans need visas to travel to 55 percent of other African countries and can only get visas on arrival in 25 percent of other countries. This means they can only travel to 20 percent of the countries without a visa. Even though countries such as Seychelles, Mau-ritius, Rwanda, Ghana and Kenya have tried to reduce visa restrictions, other coun-tries are not reciprocating.

This revelation is in sharp contrast to the African Union’s goal to introduce an African passport and abol-ish visa requirements for all African citizens in all African countries by 2018.

What is really appalling is

that it is easier for Europe-ans or Americans to travel within Africa than for many Africans themselves. In 2015, holders of a United States of America passport, for example, could travel to 172 countries and territo-ries visa-free or with visa on arrival, including at least 20

African countries.

Ultimately, the visa restric-tions mean that African countries are losing out.

One of the benefits of free movement of people that visa restrictions inhibit is increased tourism. Tour-

ism contributes to one in every 11 jobs and 9 percent of gross domestic product worldwide. With high youth unemployment, improved tourism could create thou-sands of jobs and help reduce inequality. More visitors mean more hotels, restaurants, shopping malls, and a growth in transport and entertainment sectors. The impact could be felt in both urban areas and rural areas.

Currently, according to the Africa Tourism Monitor report, while Africa accounts for about 15 percent of the world population, it receives only about 3 percent of world tourism receipts and 5 per-cent of tourist arrivals.

The report further says that visa requirements imply missed economic opportuni-ties for intra-regional trade, and the local service econ-omy (such as cross-country medical services or edu-cation). Visa policies are among the most important

22 analysis22 ANAlysIs

we must open up Africa to Africans if we really want to boost growth

23 analysis23 ANAlysIs

governmental formalities negatively influencing inter-national tourism.

This is not just about non-Af-ricans visiting our continent. As the new generation of middle class is ushered into Africa, spending on holidays and shopping is increas-ing, but African countries may not fully benefit. Many of my friends opt to travel to Europe for holidays and shopping as opposed to other African countries.

They cite as major reasons the ease of travelling in the Schengen area, which allows a visitor access to 26 countries within Europe, with one visa. Combined with the cost-effective and easy inter-connectivity through rail, air and road transport, it is no surprise that Europe receives the highest number of tour-ists globally.

Businesses beyond tour-ism are affected, too. As an entrepreneur, when choosing a new country to venture

into, I consider the openness and ease of doing business, with free movement of labor, goods and services as key indicators. I’m not alone.

The ongoing integration in the East African community has seen many businesses that were initially based in one country expand into the others. For instance, a num-ber of Kenyan based banks have expanded into Rwanda, Uganda and South Sudan because of the improved ease of doing business within the region.

According to the paper Economics and Emigration: Tril l ion-Dollar Bills on the Sidewalk? open borders could lead to a one-time boost in world gross domestic product by about 50-150 percent.

Hence, African countries should strive to make the dreams of the founders of the then Organization of African unity (OAU) true by allowing Africans to move easily and encourage intra

Africa trade and investments.

Easier movement could also help the unemployment rates. I have often found European or Chinese ‘expa-triates’ doing jobs that could be done by highly skilled Africans, some of whom lack opportunities in their home countries, if only they could more easily move between countries for work. Move-ment of people can also be a driver of technological change and a fresh source of entrepreneurs.

Much innovation comes from the work of teams of people who have different perspec-tives and experiences. This can also make countries within Africa to be more attractive to foreign direct investment.

While some have argued that strict travel regulations, including visa requirements, are necessary for security purposes, there has been no direct link showing how free movement of people has per-

petuated terrorism.

resident Paul Kagame of Rwanda has been on the forefront saying that a few bad elements should not be used to restrict mill ions of good citizens who want to travel for leisure or business.

Political executive editor of the Telegraph James Kirkup recently argued too that “Simply, all the border checks in the world will not keep us safe.

Passport controls can’t stop the spread of ideas, and it is ideas, not people, that are the essence of the terror-ism that has just killed so many in Paris and Beirut and Baghdad.”

I agree.

Ultimately, there are many more reasons to remove visa restrictions for Africans trav-eling in Africa than keeping them. I hope that by 2018, that truly is a reality. – Quartz Africa●