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1. By Tawanda Musarurwa
HARARE – Zimbabwe could
be losing out on potential
investment and development
assistance worth millions of
dollars from Kuwait due to
the fact that it has not yet to
ratify a Bilateral Investment
Promotion and Protection
Agreement (BIPPA) between
the two countries.
Parliamentary Portfo-
lio Committee on Foreign
Affairs chairman MP Kindness
Paradza was quizzing a team
from the Ministry of Industry
and Commerce on why the
Zimbabwe was on the verge
of losing investment from
Kuwait due to an undevel-
oped BIPPA.
News Update as @ 1530 hours, Tuesday 10 May 2016
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Zimbabwe-Kuwait BIPPA stalls investment
MP Kindness Paradza

2. “Kuwait has so far put $300
million into Zimbabwe,
and despite this Zimbabwe
has not ratified the BIPPA
between the two.
“The Kuwaitis have been
complaining about the
non-ratification, and Kuwait
is no longer interested in
funding Zimbabwe through
the Kuwait Fund for Arab
Economic Development,” he
said.
In response the director
for International Trade in
the Ministry of Industry
and Commerce Ms Beatrice
Mtetwa said BIPPAs fell under
the auspices of the Ministry
of Macro-economic Planning
and Investment Promotion.
“Regarding on who co-or-
dinates the facilitation of
BIPPAs, it is the Ministry of
Macro-Economic Planning and
Investment Promotion,” said
Ms Mtetwa.
However, acting deputy
director of bilateral trade
relations in the Ministry of
Industry and Commerce Mr
Alexio Chiunye said “the
Kuwait trade agreement with
Zimbabwe was ratified in
2012.”
MP Paradza however said
that had confirmation from
the Speaker of Parliament
(Advocate Jacob Mudenda)
that the house had not rati-
fied the BIPPA. They (Kuwait)
were complaining that they
had signed and that the Zim-
babwean side had not ratified
that BIPPA.
“And I can assure you that as
Parliament we have not had
that ratified, I was with the
Speaker (of Parliament) who
has confirmed that and the
Kuwaitis have also confirmed
that.”
The Kuwait Fund for Arab
Economic Development
(KFAED) is Kuwait’s agency
for the provision and admin-
istration of financial and
technical assistance to the
developing countries.
This fund assists Arab and
other developing countries
to develop their economies,
particularly by providing
them with loans required for
the implementation of their
development programs.
Addressing delegates at a
seminar on the ease of doing
business last week, Advo-
cate Mudenda charged some
ministries for their “lethargic
attitude” towards implement-
ing policies and strategies to
enhance the country’s busi-
ness and investment climate.
Meanwhile Ms Mtetwa said
the Ministry of Industry and
Commerce was looking at
ways to re-invigorate the
old Zimbabwe – South Africa
Trade Agreement.
“The Ministry facilitated the
re-activation of the Zimba-
bwe-South Africa 1964 Trade
Agreement which had become
dysfunctional. We are trying
to see how we can assist
each other and move away
from the old mandate,” he
said.●
2 news

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4. BH244

5. 5 news
CIMAS allays closure fears
HARARE-Cimas Medical Aid
Society on Tuesday said it
is not in danger of losing its
operating licence, dismissing
media reports to the con-
trary.
A local weekly on Sunday
reported that government
had given the health insurer
a seven-day ultimatum to
honour all outstanding claims
or lose its licence.
“We will revoke the tem-
porary licence that we had
given to Cimas if it fails
to settle claims not only to
Corporate 24 but to all other
companies that include
Zimbabwe Medical Associa-
tion and other pharmaceu-
tical companies in the next
seven days,” Health and
Child Care Deputy Minister
Aldrin Musiiwa was quoted as
saying.
Cimas has for months now
refused to cover subscribers
who access Corporate 24’s
medical services, following
receipt of what it termed a
large number of “suspect”
claims.
The dispute has seen Cimas
directing its more than 30
000 members, to use other
service providers despite
having been told by govern-
ment to allow subscribers
to access medical services at
institutions of their choice.
Cimas managing director
Roderick Takawira allayed the
closure fears and said dis-
cussions with the authorities
were taking place to resolve
the stand-off.
“We would like to reassure
members and the public that
we are engaging the author-
ities over the matter and
that the society is in a sound
financial position, and has no
no-compliance issues. Cimas
is licensed until March 31,
2017,” he said.
Mr Takawira said a forensic
audit into claims submitted
by Corporate 24 had been
commissioned.
“We believe that the outcome
of the audit should deter-
mine whether or not Cimas
resumes direct payments to
Corporate 24.”
In February, Secretary for
Health Dr Gerald Gwinji
wrote to both Cimas and
Corporate 24 imploring them
to resolve the issue.
Last year, Cimas also had
disputes with the National
Physicians Association of
Zimbabwe, the Zimbabwe
Hospital Doctors’ Association
and the Retail Pharmacists
Association of Zimbabwe over
various matters.
In 2000, Cimas was locked
in a similar dispute with
laboratory group Lancet and
the matter spilled into the
courts and only took govern-
ment intervention to break
the impasse.- New Ziana●

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7. BH247

8. BH24 Reporter
HARARE -Hotel group Afri-
can Sun Limited is negotiat-
ing with local and interna-
tional banks to acquire fresh
capital for further refurbish-
ment of its hotels.
In September last year,
African Sun contracted Leg-
acy Hotels of South Africa
to manage five of its big-
gest hotels in the country
and instituted a $60 million
facelift of its properties over
three years.
African Sun managing direc-
tor Edwin Shangwa told
journalists after the compa-
ny’s extraordinary general
meeting that negotiation
to secure fresh capital is
underway and the figures will
be disclosed during the next
meeting.
“We have talked to some
financial institutions some
are local and others are
external.
“As soon as the get the
lines of credit which we have
applied for we will carry on
with other refurbishments
and we are taking to the
City of Harare with regards
to what we want to do at
Monomotapa Hotel,” he said.
The hotels under contract
management are the Monom-
otapa Hotel, Elephant Hills,
Troutbeck, The Kingdom
Hotel and Hwange Safari
lodge.
“We have started with the
Elephant Hills hotel, where
we have re-painted both the
interior and exterior; we
have re-done the restaurant
and we are now refurbishing
other rooms.
“The refurbishment is going
to be done over a period of
time and we cannot give a
figure on how much we are
going to invest,” he said.
The group is targeting an
increase in occupancy of the
hotel through taking advan-
tage of the airlines confer-
ence which is going to be
hosted in Victoria Falls.
“Zimbabwe is hosting the
airlines conference in Victo-
ria Falls we are also target-
ing a conference which will
be hosted by four countries
Botswana, Zambia, Namibia
and Zimbabwe in Victoria
Falls.
“There will be the Emason
Young conference 600 to
700 delegates as a country
we haven’t wined but as a
country we are bidding for it
and it is going to happen in
Victoria Falls,” he said.
The Monomotapa Hotel is
planned for a face-lift of all
its 240 rooms, in addition to
the building of an new out-
door pool area and additional
restaurant facilities.
Meanwhile, the EGM sought
shareholder approval to
amending the company’s
Memorandum and Articles of
Association to align them to
the current Companies Act
(24:03).●
African Sun seeks finance for refurbishment of its hotels
8 news

9. BH249

10. BH2410

11. BH24 Reporter
HARARE-A Chinese construction
firm has started working on the
redesigning of Harare Interna-
tional Airport to accommodate
more planes, in anticipation of
an increase in tourist arrivals.
Responding to written questions
from The Herald here, China
Jiangsu International (CJI) said
it was also moving fast on a
feasibility study for the airport’s
expansion project.
The firm recently completed the
$150 million expansion of Vic-
toria Falls International Airport,
which opened up the facility to
accommodate more aircrafts.
“CJI is making great efforts to
advance the expansion project of
Harare International Airport and
it is in the phase of feasibility
study report and initial design,”
said the firm.
Civil Aviation Authority of
Zimbabwe chief executive Mr
David Chiwota was recently
quoted as saying they expected
to construct two more runways
and two terminals at the airport.
Harare International Airport,
with a passenger capacity of
2,5 million per year, was once
expanded and commissioned in
2001.
CJI said it would increase its
input into the infrastructure
in Zimbabwe and expand the
cooperation and “try to launch
projects in the mode of BOT
(Build Operate and Transfer) or
PPP (Public-Private Partnership)
when Zimbabwe faces financial
problems”.
On its expansion of Victoria Falls
International Airport, the firm
said the new facility was ready
to handle more traffic and would
bring a positive impact on travel
in Africa.
“In Zimbabwe or even South-
ern Africa, this airport will be
regarded as a modern interna-
tional airport, for all its techni-
cal and application dimensions
have reached high standards of
today’s international civil avia-
tion services,” said the firm.
“More international routes will
be opened to make easy access
to the worldly renowned Victoria
Falls, the second largest fall
in the world, from major cities
around the globe.”
The expansion of the airport
increased its capacity to han-
dling almost two million tourists
per year from around 500 000,
while wide body airplanes such
as Boeing 747 and 767 and Air-
bus 340 and 380 would be able
to land and take-off.
“The sharp increment in interna-
tional tourists and foreign cur-
rency earnings will boost tourism
and the matching service indus-
try in Victoria Falls,’ said CJI.
“The rapid development of
tourism will also drive up tertiary
industry, including transpor-
tation, post and telecommuni-
cations, real estate, business,
insurance, culture and entertain-
ment and will open up new mar-
kets for industry, agriculture and
construction to become hotspots
of consumption.”
CJI said the expansion of the
airport brought jobs, horned
skills of Zimbabwean techni-
cians, taught “big-time” Chinese
construction techniques and
management to the locals and
helped promote the construction
industry in the country. The
firm said there were difficulties
that needed to be addressed at
the airport like high transport
cost of imported cargo, slow and
complicated customs clearance
and cumbersome procedure of
certification.
CJI said the country needed to
address the slow procedure in
approval of designing and con-
struction drawings, shortage of
local supply of major construc-
tion materials, frequent power
and water failure and lack of
qualified personnel.
The same firm also successfully
worked on the expansion of
Joshua Nkomo Airport in Bula-
wayo recently●
11 news
Chinese firm commences Harare International Airport expansion

12. BH2412

13. HARARE -The mainstream
industrial index closed
higher at 107.25 following
a 0.15 gain to post its 14th
gain on the trot.
Natfoods led the gain-
ers with a $0,0152 rise to
close at $2,0995, while
seed manufacturer SeedCo
added $0,0100 to $0,5700
while conglomerate Inns-
cor advanced by $0,0016 to
trade at $0,2320.
On the downside, giant
insurer Old Mutual eased
$0,0025 to close at $2,1950.
The mining index was steady
at 21.55 as Bindura, Fal-
gold, Hwange and RioZim all
maintained previous price
levels at $0,0100, $0,0050,
$0,0300 and $0,1300 in that
order
. - BH24 Reporter ●
ZSE13
Equities maintain bullish form
02 03
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14. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
SeedCo 1.78 57.00 Old Mutual -0.11 219.50
Natfoods 0.72 209.95
Innscor 0.69 23.20
Index Previous Today Move Change
Industrial 107.10 107.25 +0.15 points +0.14%
Mining 21.55 21.55 +0.00 points +0.00%
14 zse tables
ZSE
Indices
Stock Exchange
Previous
today

15. 15 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
10 May 2016
Energy
(Megawatts)
Hwange 324 MW
Kariba 582 MW
Harare 30 MW
Munyati 18 MW
Bulawayo 0 MW
Imports 0 - 300 MW
Total 1232 MW
• Innscor EGM, Royal Golf Club, 10 May, 0900hrs
• 18 May - ZB Building Society AGM; Place: 21 Natal Road, Avondale, Harare; Time: 12:00hrs
• 18 May - The 76th AGM of Astra Industries Limited; Place: Auditorium at Astra Park, Corner Ridgeway North/Northend
Roads, Highlands, Harare; Time: 12:00hrs
• 19 May - The Fifth Annual General Meeting of Padenga Holdings Limited; Place: Royal Harare Golf Club, 5th Street extension,
Harare; Time: 08.15am
• 19 May - NMBZ AGM; Place: Unity Court, Corner 1st Street Kwame Nkrumah Avenue; Time: 10:00am
• 19 May - Turnall Holdings AGM; Place: Jacaranda Room, Rainbow Towers; Time: 12:00
THE BH24 DIARY

16. JOHANNESBURG- South
Africa's rand steadied on
Tuesday but remained near
one- month lows as gloomy
economic prospects contin-
ued to weigh on sentiment
after the unemployment rate
rose to a record high.
By 0645 GMT, the rand had
inched 0,2 percent firmer to
15,1690 per dollar, the unit's
softest level since April 8.
Government bonds were
weaker, with the benchmark
paper due in 2026 adding 1
basis point to 9,155 percent.
The rand rallied briefly to
below 15,00 in overnight
trade as global commodity
prices recovered and mod-
est consumer inflation data
in China cheered emerging
assets.
Traders however said the
rand was vulnerable to
another bout of weakness
after falling by more than
2 percent in the previous
session as the dollar gained
and concerns over domestic
economic growth weighed.
"Commodity markets are sta-
ble again this morning, and
this has fed into the rand
and other commodity cur-
rencies. However, sentiment
is extremely fragile," said
currency strategist at Rand
Merchant Bank John Cairns in
a note.
Hopes that South Africa
could avoid downgrades to
its sovereign debt evaporated
after the national jobless
rate raced to 26,7 percent in
the first quarter, its highest
level on record.
Moody's kept its rating
unchanged over the week-
end. Fitch and Standard &
Poor's, who both have South
Africa's debt just one step
above subinvestment grade,
are due to make their ratings
decisions in June.
On the stock market, the
Top-40 futures index index
was up 0,46 percent, indicat-
ing the bourse would open
higher when trade resumes
at 0700 GMT. - Reuters●
regioNAL News16
Rand recovers slightly, remains under pressure
JOHANNESBURG - PRETORIA
- South Africa is budgeting
180 billion rand ($12 billion)
for energy investment over
the next three years, accord-
ing to a document released
Monday outlining steps taken
by a government-business
team tasked with finding ways
to spur growth.
The document also says that
the government is looking
at ways to sell non-strategic
state assets. The task team
reported to President Jacob
Zuma on Monday- Bloomb-
erg●
SA budgeting $12bn for energy invest-
ments over next 3 years

17. Emirates Group boosted full-
year profit 50 percent as the
world’s biggest international
airline expanded its wide-
body jet fleet to siphon more
long-haul travelers through
Dubai and benefited from a
decision not to hedge against
fuel-price fluctuations.
Net income for the 12
months ended March 31
rose to 8,2 billion dirhams
($2,2 billion), Emirates said
Tuesday. Emirates Airline’s
profit increased 56 percent
to 7,1 billion dirhams even
as revenue fell 4 percent to
85 billion dirhams. The com-
pany saved 9 billion dirhams
as oil prices declined, while
the strong dollar impacted
revenue by 6 billion dirhams,
Chairman and Chief Execu-
tive Officer Sheikh Ahmed
bin Saeed Al Maktoum said.
"The strong dollar against
major currencies will con-
tinue to be a challenge,"
Sheikh Ahmed said at a
press conference in Dubai.
”We expect low oil prices
to be a double edge sword,
good for operating costs
but bad for global business
and consumer confidence.
There’s pressure on yields,
so we invest profits into the
business."
The airline benefited from a
28 percent oil-price drop in
the fiscal year after opting
not to hedge against crude.
The airline added 29 Airbus
Group NV A380s and Boeing
Co. 777s to what was already
the largest wide-body fleet,
expanding its hub and win-
ning more long-haul transfer
traffic from rivals.
Abu Dhabi-based Etihad Air-
ways, the Gulf No. 3, posted
net income of $103 million
for the 2015 calendar year,
up from $73 million a year
earlier. Qatar Airways, the
No. 2, plans to publish num-
bers in June.
The International Air Trans-
port Association estimated
in December that Middle
Eastern airlines would earn
a collective $1,4 billion in
2015, rising to $1,7 billion
this year – Bloomberg ●
internatioNAL News17
Emirates pofit rises 50 pc on fuel windfall, long-haul traffic

18. By Olusegun Obasanjo
MINING and oil is not a sunset
industry in Africa. The sector
holds great promise — Africa has
a big comparative advantage in
its store of mineral wealth and
human capital. But unlocking
this needs policies that encour-
age long-term, generational
investment, not shortsighted
resource grabs.
Identifying the "right" policies
was the wellspring of a dialogue
on the banks of the Zambezi
River hosted by The Brenthurst
Foundation, which I chair. The
participants, mainly mining
experts and investors, cohered
around legislative certainty, the
provision of reliable services, a
stable and attractive tax regime,
a predictable and transparent
legal system, policy cohesion, a
reliance on administrative regu-
lation rather than political discre-
tion, and honest and competent
officials.
To establish such a framework, a
new narrative of the value of the
industry to Africa is necessary.
This narrative has been defined
by conspiracy and mistrust.
We need to move towards a
shared dialogue based on mutual
dependency and endeavour,
underpinned by a clear belief
that government needs investors
and vice versa.
The main outcome of our meet-
ing is the Zambezi Protocol,
which offers a path for govern-
ment, business and other part-
ners to chart a fresh, positive
future for mining in Africa. The
urgency relates to the state of
the mining sector in Africa: it’s
in crisis.
A lack of trust between mining
companies, governments and the
nations they lead has taken hold.
Failure to tackle this will have
adverse implications for eco-
nomic growth and employment
prospects when the continent’s
needs are increasing rapidly.
Most African governments recog-
nise that much more needs to be
done to diversify our economies,
but we mustn’t lose sight of how
dependent most of us are on the
extractives sector. It comprised
28 percent of the continent’s
combined gross domestic prod-
uct in 2012, 77 percent of total
exports and 42 percent of all
government revenues.
Studies by the International
Council on Mining and Metals
show that for every $1 gen-
erated by mining, at least $3
more is generated elsewhere in
the local economy, and that for
every direct mining employee, as
many as 15 more jobs are cre-
ated elsewhere in that economy.
The end of the commodity
super-cycle has negatively
affected most of Africa, which
had become accustomed to sus-
tained economic growth rates of
above 5 percent.
Economic growth across sub-Sa-
haran Africa, especially in coun-
tries reliant on commodities for
export and government revenue,
is predicted to drop to 3,3 per-
cent this year. Things are set to
become a lot more challenging.
In this new, more competi-
tive and austere environment,
governance and policy attrac-
tiveness will become increasingly
important differentiators in the
performance of African countries.
Just as important will be the reg-
ulatory and administrative pro-
cesses needed to ensure decent
and diversified growth. These
factors will be vital determinants
for attracting investment and
growth in mining projects.
18 analysis18 analysis
The sun has not set on oil and mining industries in Africa

19. As the World Bank has noted,
after geological factors, govern-
ments are the biggest determi-
nant of where mining invest-
ments flow globally.
Negative perceptions in African
societies of the value and role of
mining are amplified in environ-
ments in which there are few
other opportunities.
The narrative on mining is about
big profits at the cost of the
population. Paradoxically, the
communities around mines are
heavily dependent — cradle to
grave — on the firms, to whom
the state often abrogates its
responsibility.
Yet often, the firms bringing
this development have to deal
with interference, corruption
and rent-seeking, reflecting the
difficulty of managing a fixed,
immovable asset where there is
little going on in the economy.
Rather than engage the industry
as a long-term developmen-
tal partner, playing to popular
public pressures and desperate
for revenue, some governments
have sought to target the sector
with high tax regimes and other
redistributive mechanisms
including calls for beneficiation
and value-addition.
Yet the health of the sector is
intrinsically in the interests of
government, not just for reasons
of long-term revenue, jobs and
the prospects of industrialisa-
tion, but because many gov-
ernments hold a direct stake in
mining operations.
While the success of mining
demands a partnership of com-
mon interest and Africa’s young
population demand jobs and
growth, policy instability has
planted the seeds for a vicious
cycle.
The Zambezi Protocol seeks to
improve trust between parties to
ensure longer-term investment
horizons and improved competi-
tiveness for Africa’s mining sec-
tor and thus, jobs and revenue
for mining nations.
As a first step to a wider con-
sensus, we focused on investor
requirements. For this initiative
to be successful, we need to
integrate the voices of govern-
ment and civil society into the
protocol.
Solving the crisis in mining
requires an acknowledgement
that the sector is beset by ten-
sions between government and
business. The African narrative
on mining is fuelled by senti-
ment, emotion and a lack of
information, manifested in the
role of personal discretion in
determining outcomes, rather
than administrative processes,
which invariably increases uncer-
tainty and invites corruption.
Instead of negotiation to moder-
ate and arbitrate regulation and
policy, this results in a tendency
towards litigation.
All parties need to recognise as a
matter of urgency the inevitable
outcomes of the current cycle —
the gradual deflation and down-
sizing of the industry — and the
losers: current and future work-
ers, governments, populations,
and the mining companies.
Such a strategy will need to
build on a number of exist-
ing initiatives, but with much
greater cohesion and commit-
ment. Agreement will have to
be reached on what a successful
mining industry looks like. There
must be recognition that mining
is an inherently risky and long-
term endeavour.
For success, risk needs to be
reduced, by all parties, as far as
possible. But this needs to com-
prise more than an enlightened
business case.
Mining needs to understand
the problems government has
to tackle and make a strategic
contribution to wider issues
(enterprise development, water,
land, education and so on) in an
atmosphere of collaboration, not
confrontation.
All parties must recognise that
trust has broken down. For the
sake of our economies and our
people, it needs to be rebuilt.–
BDLive ●
• Obasanjo, a former pres-
ident of Nigeria, chairs the
Brenthurst Foundation
19 analysis19 analysis