A digital copy of the Business News 24 (24 March 2015 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.

1. News Update as @ 1530 hours, Tuesday 24 March 2015
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By Rumbidzai Zinyuke
HARARE - The Government will send a
technical team to Germany in the near
futuretodiscussthecountry’sdebttothe
European country and ways on resolving
it.
The country owes international financial
institutions approximately $7,3 billion
with about $3,7 billion due to the Paris
Club and non-Paris club creditors and the
remaining $2,6 billion to the World Bank,
African Development Bank, EIB and IMF.
Germany is the country’s largest creditor
intheParisClubbeingowed$739million.
Addressing journalists after meeting Ger-
many’s regional director for sub-Saharan
Africa and the Sahel Georg Schmidt,
Finance minister Patrick Chinamasa said
thetriptoBerlinwasattheGermans’invi-
tation.“Wewillengageandhavedialogue
so that we can sort out what needs to be
sorted out in our relationship and that is
what we have primarily agreed. We have
also agreed that they are going to invite
ustovisitBerlin.Initiallywewillsendtech-
nicalpeopletovisittheministryoffinance
inGermanytotalkaboutthedebt,totalk
aboutoureconomicrelationshipandhow
wecanmoveitforward,”hesaid.Minister
Chinamasa said the government is also
committed to maintain the rule of law
and make the country more attractive to
futureinvestors.
“The rule of law is very important in
any legal system, it means that things
become predictable. As we try to woo
investors to come back, they will come
into a system that is predictable, into a
frameworkwheretheycanhaverecourse
into the law and find remedies. And we
will work very strongly to achieve that
end,” he said. Ambassador Schmidt, who
isinthecountrytoattendatwodaycon-
ferenceorganisedbyGermanthinktanks
ontheruleoflawandtheimplementation
of a constitution said Germany was open
todiscussionsontheZimbabweandebt.
He said the debt problem is however
complicated because it involves a mul-
ti-lateral and bi-lateral dimension. “The
multi-lateraldimensionisthatwearepart
of the Paris Club so whatever we do, we
have to coordinate very closely with our
other partners in the Paris club,” he said.
He also said Germany has been following
the IMF’s mission to Zimbabwe closely.
HesaidthesuccessoftheStaffMonitored
Programme will be an important aspect
in dealing with the bilateral debt. “So we
encourage close co-operation with the
IMF and in the future with other financial
institutions which is also one of the main
conditions for us, then to also engage in
the bilateral debt talks. So the idea of sit-
tingdownandtalkingisalwaysanimpor-
tantoneinanopenspirittoseewherewe
aregoingfromhere,”hesaid.
Schmidt said the rule of law is impor-
tant in economic terms because the first
thing foreign investors look into before
they engage is (if there is a problem)
the dispute settlement, the terms and
conditions that they come under. “So the
general framework and the rule of law is
one critical factor for people from the pri-
vate sector to actually get involved in the
Zimbabwean economy and it’s upon the
initiative of the Zimbabwean government
that can regulate and actually create the
conditions and the framework and Zim-
babwe a country that has a lot to offer
can actually attract foreign investment,”
headded.
The IMF recently said there will not be
anyfundsreleasedtoZimbabweuntilthe
countrypaysitsarrearstotheWorldBank
and there is a consensus among mem-
bersoftheParisclubonwhetherornotto
giveZimbabwefunding. ●
Germany invites Zim delegation to Berlin for debt talks
Minister Chinamasa

2. Business Reporter
HARARE - The Central African Build-
ing Society (CABS) posted total com-
prehensive income of $22,6 million
income for the year ended December
31, 2014 on the back of an increase in
loans, advances and deposits during
the period.
Total assets increased by 37 percent
$852,35 million driven by deposits
which went up by 41 percent.
Its loans and advances increased by
38 percent to $443,53 million as mort-
gage funding improved. "The society
delivered strong growth, with net sur-
plusincreasingby31percentto$24,03
million,upfrom$18,30millionin2013.
Net interest income increased by 32
percent, compared to the same period
in2013.Non-interestincomeincreased
by 51 percent, due to the increase of
transactions passing through the Soci-
ety's various delivery channels.
"Comparatively, operating expenses
increased by 37 percent, mainly due
to the impact of business growth
and transformation. Consequently,
the Society's cost to income ratio
decreased from 64 percent in 2013
to 63 percent in 2014," said chairman
Dr Leonard Tsumba in a statement
accompanying its results.
CABS' prudential liquidity ratio was at
36.4 percent, while the minimum reg-
ulatory ratio stood at 30 percent.
In terms of outlook, CABS said it will
focus on expanding its mortgage and
banking roles. ●
2 NEWS2 NEWS
Growth in deposits spur CABS
Zimre Park extension project stalls
Business Reporter
ZimrePropertyInvestments(ZPI)Ltd's
$5,6 million Zimre Park extension pro-
ject in Ruwa is at a stand-still as the
company is still awaiting regulatory
approval, chairman Mr Buzwani Moth-
obi said.
"TheZimreParkextensionproject...has
been delayed by regulatory approvals
and will commence once these are in
place," he said in a statement accom-
panying the property firm's full year
financial results to December 31, 2014
:The project, which was initially set to
beunveiledduringthefourthquarterof
lastyearandhas238residentialstands
on 603 795 square metre lot, was set
to be completed by August this year.
The current delays could see that com-
pletion timeline reviewed. The rate
of return on the project, according to
initial ZPI projections is 22 percent.
In terms of financial performance for
the year under review, ZPI reported a
decline in both revenue and profit for
the year ended 31 December 2014.
Revenue for the period was down 15
percent to $5,7 million, while profit for
the period declined to $252 862 from
$1,812 million in the prior comparable
period. Rental income went down 7
percent to $3,62 million due to a high
level of defaults.
"Tenants are failing to pay current
rental rates and are re-negotiating
existing contracts. This has resulted
in declining revenues as well as the
average rental rates achieved," said Mr
Mothobi. Projects income was down 26
percent to $2,03 million. Total adminis-
trative costs increased by 15 percent to
$2,95 million.
ZPI reported that due to the subdued
revenue performance, operating profit
for the period was $1,10 million , which
was 44 percent lower than the $1,96
million achieved in the previous year.
The ZPI board has recommended
a final dividend of $0,012 cents per
share. ●

3. BH24

4. Financial service group, BancABC
plans to expand its operations to 15
othercountriesinthenextthree years,
an official has said.
The group, which is owned by Atlas
Mara, an investment vehicle co-owned
by former Barclays chief executive Mr
Bob Diamond and African billionaire Mr
Ashish Takkar, currently has operations
in five countries namely Botswana,
Mozambique, Tanzania, Zambia, and
Zimbabwe.
BancABC managing director Mr Joe
Sibanda said the banking group was
performing well in spite of challenges
being faced in some of the economies
in which it was operating.
“The growth strategy of the bank is
quite impressive. We have not listed
the countries we are going to expand
to yet but we are going to look at the
opportunities.
We are going to open new branches in
countries where there are best oppor-
tunities,” he said.
While Mr Sibanda did not name
the countries where the bank would
expand its operations, BancABC has
previously indicated it would explore
new markets in Angola, Uganda and
South Sudan.
He credited the group’s new investors,
Atlas Mara with the idea to grow its
footprint on the continent. The banking
group was dually listed on the Zimba-
bwe Stock Exchange
(ZSE) and the Botswana Stock
Exchange but was delisted on the ZSE
inFebruarythisyearfollowingitsacqui-
sition by Atlas Mara. — New Ziana ●
44 NEWS
BancABC targets expansion into 15 countries

5. BH24

6. The National Social Security Authority
(NSSA) should seriously consider rais-
ing pension payouts from $60 to $150
per month as well as reduce the retire-
ment age by 10 years to between 45
and 50 years.
The compulsory Government pension
fund has been under constant criticism
for its meager payouts and failure to
reduce the retirement age in light of
the low life expectancy in Zimbabwe.
In its report which has been tabled
before Parliament, the Portfolio Com-
mittee on Public Service, Labor and
Social Welfare said NSSA had the
capacity to increase payouts.
“On the basis of the widespread mul-
ti-million dollar projects NSSA is cur-
rently engaged in, the entity has
adequate capital to increase monthly
pension benefits from $60 to $150,
an amount which should be payable
to survivors in the event of the death
of the actual members so that there
is meaningful social impact on lives,” it
said.
The Committee said NSSA should
ensure that pensioners started receiv-
ing their benefits as soon as they
retired,evenbeforereachingtheageof
60, a recommendation which followed
stakeholder complains that pensioners
were dying before they enjoyed their
benefits. AstudybytheUnitedNations
Economic Commission for Africa has
put the life expectancy for Zimbabwe
at 54 years and 52.7 years for males
and females respectively.
To guard against losing public funds,
the committee said NSSA “must be
thorough and cautious” when ventur-
ing into projects using public funds.
The pension fund has already been
caught up in the complex financial
web where it has lost millions of dollars
of pensioners’ funds after investing in
institutions such as banks that have
folded operations as a result of mis-
management.
The committee said it was also impor-
tant that NSSA invested in schemes,
such as housing, that its membership
was also able to participate in. NSSA
housing projects do not benefit lowly
paid members,” the committee noted
as some of the complaints raised by
stakeholders.
As a body surviving on workers funds,
the committee said it was critical that
the pension fund involved workers in
its decision making processes. — New
Ziana ●
66 NEWS
NSSA should increase payouts, reduce retirement age

7. Business Reporters
Agribusiness chief executives have
identified Zimbabwe as one of the Afri-
can countries into which they are plan-
ning to expand.
According to PriceWaterhouseCooper
(PwC)’s latest Agribusinesses Insights
Survey 2014/2015 agribusiness chief
executives are very positive about
the possibility of expansion into other
African countries with 72,7 percent
indicating that they would pursue such
opportunities.
“Furthermore, access to existing and
new markets allows agribusinesses to
broaden their reach and increase their
potential to sell products and services
to more customers.
“African chief executives identified the
following as countries where they are
planning to invest: Ethiopia, Angola,
DRC,SouthAfrica,Zambia,Zimbabwe,
Mozambique, Lesotho, Botswana, and
Tanzania," said PwC National Agribusi-
ness Industry Leader Mr Frans Weil-
bach in the report.
The country’s economy, which is still
largelyagro-basedoffersabroadrange
of investing opportunities, according to
Zimbabwe Economic Policy Analysis
and Research Unit (Zeparu)'s agro-in-
dustries/food and beverages value
chain diagnostic study released last
year.
"After the adoption of the multicur-
rency system, the food processing
sector has seen the emergence of new
players and diversification by already
existing players to expand their prod-
uct range. Most of the upcoming play-
ers are small-medium entrepreneurs
whose processes are partially mecha-
nised," said Zeparu in the study.
Africa is increasingly becoming an
attractive hub for foreign investors,
especially in the agri-business sector in
view of various economic, political and
socialreforms,resultinginanimproved
businessenvironmentthatisconducive
to foreign direct investment, PwC says.
As obstacles to boosting agricultural
output in Africa are overcome and agri-
cultural output is increased, there will
be ample opportunity for the manu-
facturing and marketing of agricultural
products such as fertilizers, pesticides
and seeds, as well as a demand for
food-processing services such as grain
refining.
In the report the biggest challenges to
business growth cited by chief exec-
utives were the scarcity of natural
resources, access to technology and
climate change.
Other concerns raised by businesses
were access to finance, labour unrest,
regulatory restrictions, and energy
costs.
African agribusinesses also feel that
thereisalongwaytogotowardsbetter
support from African governments in
the sector. "To take the African agricul-
tural sector with its enormous potential
to the next level, public-private part-
nerships throughout the value chain as
a whole are key," says Mr Weilbach.
For agribusinesses to remain compet-
itive, they need to be aware of and
respond effectively to the rapid pace
of technological change in the agricul-
tural sector globally. Farm-level data
and precision farming have played an
important role in their operations over
the past ten years.
Additionally, in the last three years
precision farming principles have been
integrated with new technologies such
ascloudcomputing,datamining,mod-
elling, and neural networks, all of which
can be applied very effectively to agri-
culture on a new and higher level of
artificial intelligence (AI) farming.
"The mega-trends may be perceived
as being far removed from us here in
Africa, but their significance should not
be underestimated. They will define
our future and we will do well to pre-
empt their impact rather than sit back
and wait for the results," concludes Mr
Weilbach. ●
77 AGRICULTURE
Agribusiness investors eye Zimbabwe

8. BH24

9. HARARE – Industrial equities on the
local bourse bucked yesterday's bear-
ish trend to push the industrial index
by 0.23 (or 0,14 percent) to close at
161.71 as trades continued to be thin.
NMB gained 0,50 cents to close at 3,50
cents following the announcement of
Mr Benedict Chikwanha's appointment
as the chairman of the group and its
flagship arm, NMB Bank, with effect
from March 19.
Also on the upside, ZHL added 0.20
cents to settle at 1.20 cents.
Trading in the negative was Fidelity
Life, which dropped 0.50 cents to trade
at4.50cents,andOKZimbabwewhich
shed 0,20 cents to 13 cents. Diversi-
fied conglomerate Innscor marginally
dropped by 0,01 cents to 56,50 cents.
The mining index slipped 2.70 points
(or 5,78 percent) to close at 44.01
after Bindura's second loss in as many
days. The nickel producer eased 0.30
cents to close at 4 cents.
Volumes continue to be depressed.
In today's trades, the value of trades
stood at $462 588, mainly propped by
trades in SeedCo, Innscor, and Afdis.
Falgold, Hwange and RioZim main-
tained previous trading levels at 0,50
cents, 4 cents and 7 cents, respec-
tively. —BH24 Reporter •
9 ZSE REVIEW
Equities recover

10. South Africa's Finance Minister Nhlanhla
Nene said on Tuesday the temporary
suspensions of key officials at the state-
owned power utility Eskom was a con-
cern, but the firm's financial stability was
on course.
Standard & Poor's (S&P) downgraded
the struggling Eskom to junk last week,
underliningthefragilestateofSouthAfri-
ca's economy and the suspension of the
utility's chief executive officer and three
other senior executives, which it said
reduced the agency's confidence in the
utility.
South Africans face frequent, controlled
power cuts which Eskom implements
to prevent the national grid from being
overwhelmed as Africa's most advanced
economy faces its worst energy crisis
since 2008.
"We indeed are concerned with those
developments, but equally concerned
we are about the manner in which it
was reported," Nene said in response to
questions from parliamentarians about
the suspension of four senior managers,
including Eskom's chief executive.
The government has said it aimed to
sell "non-core" assets to raise 23 billion
rand ($1.93 billion), for Eskom this year,
which faces a funding gap to 2018 of up
to 200 billion rand as it struggles to keep
thelightsonandbuildnewpowerplants.
"The financial sustainability of Eskom,
which unfortunately also has been
impacted on by the ratings downgrade
we have seen, we are still on track with
regards to the financial sustainability of
Eskom," Nene said.
S&P's rating downgrade is likely to raise
borrowing costs for the cash-strapped
utility. — Reuters ●
REGIONAL News10
South Africa's finance minister concerned about Eskom suspensions

11. 11 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
24 March 15
Energy
(Megawatts)
Hwange 203 MW
Kariba 738 MW
Harare 0 MW
Munyati 30 MW
Bulawayo 24 MW
Imports 20 MW
Total 1020 MW
26 MARCH - Willdale Annual
General Meeting of Willdale
Limited; Place: Boardroom,
Willdale Administration Block,
Tenerife Factory, 19.5km
peg Lomagundi Road, Mount
Hampden;
Time: 1100 hrs...
31 MARCH - African Sun
Ltd's Forty Third Annual
General Meeting of Share-
holders; Place: Kariba Room
at Holiday Inn Harare, Corner
5th Street and Samora Machel
Avenue; Time: 1100 hours...
THE BH24 DIARY

12. 12 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Zimre Holdings 20.00 1.20 Fidelity Life -10.00 4.50
NMBZ 16.66 3.50 BNC -6.97 4.00
OK Zim -1.51 13.00
Innscor -0.01 56.50
Indices
Index Previous Today Move Change
Industrial 161.48 161.71 +0.23 points +0.14%
Mining 46.71 44.01 -2.70 points -5.78%
Stocks Exchange

13. Euro-area business activity expanded
faster than economists forecast this
month, signaling that a fragile recov-
ery in the 19-nation region is becoming
more sustained.
A Purchasing Managers Index for the
manufacturing and services industries
across the region rose to 54.1 from
53.3 in February, London-based Markit
Economics said Tuesday. Economists
forecast a reading of 53.6, according to
a Bloomberg poll. Markit said its sur-
veys suggest the euro-region economy
grew 0.3 percent this quarter, sup-
ported by a 0.4 percent expansion in
Germany, Europe’s largest economy.
The currency bloc’s economy, over-
coming its longest recession, is gath-
ering strength as the European Central
Bank starts its large-scale asset-pur-
chase program. While it may be too
early to declare victory over the threat
of a deflationary spiral of falling prices
and households postponing spending,
ECB President Mr Mario Draghi has
said that a sustained recovery is taking
hold.
“The improvement provides welcome
news to a region awaiting signs that
the ECB’s quantitative easing is stimu-
lating the real economy,” said Mr Chris
Williamson, chief economist at Markit
in London. “Worries persist, however,
in relation to Greece and Russia, which
areareminderthatongoingrecoveryis
by no means assured.”
A gauge of euro-area services rose to
54.3 in March from 53.7 in February,
according to the release. A similar
index for manufacturing increased to
51.9 from 51.
France, Germany
The euro was little changed after the
report and traded at $1.0983 at 10:13
a.m. Frankfurt time.
“We finally start to see the effects of
the weaker oil and cheaper euro on
the real economy, especially in the
manufacturing sector,” said Ms Anna
Maria Grimaldi, an economist at Intesa
Sanpaolo SpA in Milan. “After stalling in
January and February, all signs point to
a recovery that should become more
sustained in coming quarters.”
The composite gauges for Germany
and France were both well above the
50-point mark that divides expansion
from contraction, according to earlier
releases from Markit. The German
index advanced to 55.3 from 53.8,
marking a 23rd straight month of
growth.
In France, the index slipped to 51.7
from 52.2. While that signals “modest”
growth of about 0.2 percent this quar-
ter, the country is still seeing its best
performance since 2011, according to
Markit. The report also showed that
euro-area employment growth picked
up this month, and prices charged for
goods and services fell at a slower
pace.
Deflationary pressure “eased during
the month, linked to higher wages
and rising import costs resulting from
the euro’s depreciation,” Mr Williamson
said. “The survey data therefore indi-
cate that the ECB’s quantitative easing
has been started at a time when the
euro zone’s economic upturn is already
starting to gain traction.” — Bloomb-
erg ●
13 INTERNATIONAL NEWS
Germany lifts Euro-Area economy as stimulus put in action

14. Starting a business just like other
events in a person’s life must be well
planned and timed and a number of
factors must be taken into considera-
tion before launching out the new ven-
ture. Before I delve into those factors
and my opinion of what time is right
to start your business, I would like to
draw your attention to times that peo-
ple commonly start businesses.
Most people commonly start their busi-
nesses about these times;
School Years
This is period of time during which you
are studying for expertise in a chosen
field. It maybe during secondary school
or university (BSc or MSc) you may
suddenly come into a nice idea and you
decide to try your hands out on it. You
may decide to partner with someone
else maybe your school mate, friend or
family member.
Starting a business during this time
is usually with low risk as you have
almost nothing to lose; your parents
probably fund your studies and asso-
ciated costs and you are not at risk
to lose any essentials aside from the
money, time and effort put into starting
the business. Starting a business dur-
ing this time can be risky, in the sense
that you might get so involved with the
idea and begin to neglect school work,
it might affect your studies and lead
you to drop out.
Ironically, a lot of celebrated entrepre-
neurs started their business during this
times e.g. Bill Gates, Mark Zuckerberg,
Steve Jobs and many others.
Post School Years
This is the period when you have fin-
ished your education (at least to a
certain level, usually BSc) and you are
waiting at home hoping to get a good
job soon. Most times, the people who
start businesses at this time have been
waiting for about 2-3 years, and have
gotten tired of hearing the popular
“start your own business, be your own
boss” song.
They usually start out as a freelanc-
ers or part time businesses because
they are still looking out for jobs and
aren’t fully committed to the business
yet. They start the business primarily
to provide themselves with a source of
income and to preserve their dignity
as they can say they started their own
businesses.
They usually go for low cost ideas, as
they may not have access to substan-
tial funding and don’t want to gamble
too much with other people’s money.
Example of businesses that are started
atthistimearesalesofbagsandshoes,
catering businesses, soap/cream mak-
ing, home tutoring, poultry farms etc.
14 analysis
When is the best time to put that great idea to the test?
14 analysis

15. Job Loss
This is the period when you have been
laid off or retired from your job. Most
times, the push for entrepreneurship
maybe for reasons such as putting
their gratuity to good use, creating a
source of stable income and preserving
their dignity among others. Depend-
ing on the jobs they just lost and their
financial intelligence, they usually go
into business with a lot of money.
They are already used to having an
office, a secretary, an official car and an
organised and structured environment
therefore, they start out in business by
getting a shiny business card, renting a
lovely office, employing 10 people and
starting big (all this is good).
Unfortunately they usually run out of
money after a few months and their
business might fail because it wasn’t
properly planned and it started in a
craze at the impulse of the moment.
Example of businesses that are started
at this time are consulting firms, farms,
manufacturing companies etc.
Marriage
This will commonly apply to women
and is usually the time period starting
from when they get married. Some
women may become housewives after
marriage or giving birth so they can
have more time to take care of their
family and new babies. And when the
babies starts rolling in year after year,
getting a job may not be feasible and
so they are thrust into entrepreneur-
ship. These are usually home based
businesses, with offices not far from
home.
They are usually started with capital
from their husbands in an attempt to
set his wife up and eliminate her bore-
dom and loneliness while he is at the
office.
Example of businesses that are started
at this time are retail shops (where
things like shoes, bags, baby things,
food stuff, home supplies etc. are sold),
schools, salons, bars and restaurants,
recreational centres and gyms, phar-
macies etc.
While there are many paths to entre-
preneurship, I chose to highlight the
above. What stage are you at right
now and when do you think is appro-
priate for you to start your own busi-
ness? Now, when the risk is minimal?
After you are laid off from the job you
probably hate? When you get married
and find it hard to keep up with job
responsibilities and family pressures?
Or when you spent your active years
and are retired?
Of course, there are also those who
decide that NOW is the time to change
the direction of things and take charge
of their time, effort and financial
futures.
Yes, there are many factors that can
determine when a person starts a
business such as availability of funds,
support from family and friends, acqui-
sition of relevant skills and education
amongst others; but true entrepre-
neurs know that they can’t be satis-
fied with the status quo and need to
start NOW. This doesn’t mean they
quit school and their jobs or rush into
it without planning; it means they
don’t wait for life to present them with
opportunities, they go out, look for it
and make it happen. It depends on
you. Stop waiting. Start NOW! — Ven-
tures Africa ●
15 analysis