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By Tawanda Musarurwa HARARE -The Central African Power Corporation (CAPCO) debt that Zimbabwe owed to Zambia, which has been threatening commencement of work on the $3 billion Batoka Hydro power project, has been fully paid off, an official has said. The Batoka Hydro power pro- ject is expected to generate 2 400 megawatts (MW) - a joint project between the two coun- tries. The debt was for the shared cost of the Kariba Dam construction and associated infrastructure in the early 1950s. It also included proceeds of the sale of assets belonging to CAPCO, a power firm jointly owned by Zimbabwe and Zam- bia when the two countries were still members of the Fed- eration of Rhodesia and Nyas- aland, which was dissolved in News Update as @ 1530 hours, Tuesday 16 February 2016 Feedback: [email protected] Email: [email protected] CAPCO debt fully paid off

CAPCO debt fully paid off

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Page 1: CAPCO debt fully paid off

By Tawanda Musarurwa

HARARE -The Central African Power Corporation (CAPCO) debt that Zimbabwe owed to Zambia, which has been threatening commencement of work on the $3 billion Batoka Hydro power project, has been fully paid off, an official has said.

The Batoka Hydro power pro-ject is expected to generate 2 400 megawatts (MW) - a joint project between the two coun-tries. The debt was for the shared cost of the Kariba Dam construction and associated infrastructure in the early 1950s.

It also included proceeds of the sale of assets belonging

to CAPCO, a power firm jointly owned by Zimbabwe and Zam-

bia when the two countries were still members of the Fed-

eration of Rhodesia and Nyas-aland, which was dissolved in

News Update as @ 1530 hours, Tuesday 16 February 2016Feedback: [email protected]: [email protected]

CAPCO debt fully paid off

Page 2: CAPCO debt fully paid off

1963.

Capco was running the Kar-iba power project for the two countries, but was disbanded in 1987. Zimbabwe Electricity Supply Authority (ZESA) busi-ness development planning executive Engineer Simon Mutambi told a ZimAsset Con-ference that the local power utility had paid off the CAPCO debt.

“The strategies which we have employed to achieve this is, the first one is what we call the ex-CAPCO assets. Basi-cally these are the assets which belonged to the prede-cessor of ZESA, CAPCO.

“After the break-up of CAPCO there areas where there was no agreement between Zam-bia and Zimbabwe, so as a result to develop Batoka there was need to come to a con-sensus and one of the issues standing in the way was the payment of the outstand-ing debt with regards to this power company.

“And I am happy to say that this debt is fully paid and we are now ready to go ahead and implement the Batoka project,” he said.

Last week, Energy and Power Development Minister Sam-uel Undenge told reporters that the Batoka project would commence next year, follow-ing ongoing feasibility studies by the World Bank that should be completed around June this year.

Zimbabwe and Zambia have already signed a Memoran-dum of Understanding (MoU) to jointly construct the Batoka hydro plant.

The Batoka project will come as a long-term solution to Zimbabwe’s debilitating power shortages where available capacity tends to reach circa 1 300MW compared to peak demand of 2 200MW.

2 NEws

Page 3: CAPCO debt fully paid off

BH243

Page 4: CAPCO debt fully paid off

BH24 Reporter

HARARE - Multi-commodity mining and resource devel-opment company – Premier African Minerals – says a local bank has offered to pro-vide direct finance to its 49 percent-owned RHA tungsten mine.

The project is owned by RHA Tungsten, a joint-venture between ZimDiv Holdings, a subsidiary of Premier, and the National Indigenisation and Economic Empowerment Fund (NIEEF) on behalf of the Government of Zimbabwe (51 percent).

Without specifically men-tioning the name of the local financial institution, the min-ing group said:

“As part of the continuing preparations in respect of underground ore processing, RHA has increased its work-ing capital facilities with a $200 000 general credit facil-ity from a local bank, which

may be util ised for payment of direct operating expenses associated with the produc-tion of wolframite concen-trates.

“The facility bears interest at the bank’s costs of funds plus a margin of 8,75 percent and is guaranteed by Premier.

“The on-demand facility is for

an initial term until October 31, 2016.”

Premier CEO Mr George Roach said it was a new develop-ment that the RHA project from a Zimbabwean financial institution instead of internal resources.

“It is most encouraging that a local banking institution has a level of confidence in RHA such that they are prepared to extend a facility for normal working capital requirements linked to shipment of concen-trates.

“Historically, Premier has met 100 percent of all expenses incurred by RHA,” he said.

The RHA tungsten mine, which is located approximately 20 kilometres south-east of Hwange and 270km north of Bulawayo is Premier’s flag-ship operation, although the AIM-listed group has several operations in Southern and Western Africa.●

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Local bank finances RHA tungsten project

Page 5: CAPCO debt fully paid off

BH24

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Page 6: CAPCO debt fully paid off

By F unny Hudzerema

HARARE - ZimTrade is set to participate at the Agritech Expo to be held in Chisamba, Zambia from April 14 to16, 2016, which is aimed at bringing experts in the agriculture sector together.

ZimTrade is mobilising local com-panies to participate at the Expo, which showcases farm equip-ment, agricultural inputs, poultry and fish farming, agro processing, among others.

According to the organisers of the expo, the event is focused on bringing together end users and

farming professionals to meet directly with vendor companies. It is a business to-business platform for agricultural professionals,

small scale farmers and commer-cial enterprises.

This year’s Expo will incorporate

more interactive feature areas. The new interactive features include, but are not limited to, crop trials, combine harvester arable farming trials as well as irrigation demonstrations.

International players from coun-tries such as Germany, United Arab Emirates, United States of America and UK, will be partici-pating at the Show.

In 2015, about 12 000 agricultural business decision makers and over 110 exhibitors from 29 coun-tries in Africa, America, Europe and Middle East participated at the Expo.●

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Zim companies to participate at Zambian agric export

Page 7: CAPCO debt fully paid off

BH247

Page 8: CAPCO debt fully paid off

BH24 Reporter

HARARE – The value of trans-actions processed through the National Payment Systems (NPS) increased to $1,1 billion in the week ending January 29, 2016 up from $975,52 million in the prior week mainly due to a higher number of transactions processed through the Real Time Gross Settlement (RTGS) sys-tem.

According to a weekly economic update by the Reserve bank of Zimbabwe, RTGS transactions soared 82,70 percent to $968,73 million up from $791,28 million registered in the previous week.

Mobile based transactions increased by 7,58 percent stood at $4,3 million as compared to $4,1 million in the prior week.

The mobile transactions accounted for 3 percent of the total value of transactions pro-cessed.

Transactions processed through Automated Teller Machines and

Point of Sale accounted for 6,10 percent and 3,38 percent of NPS transactions processed in the period under review period at $71,4 million and $39,6 million respectively.

Meanwhile, during the period under review, commercial banks’ weighted lending rates for individuals and corporate clients declined marginally to 12,08 percent and 7,38 percent, respectively.

Savings deposit rates remained unchanged at 3,20 percent dur-ing the period under review.

Average rates for deposits of one-month and three-month tenors, however, decreased from 6,91 percent and 7,22 percent in the previous week, to close the week under review at 6,90 per-cent and 7,21 percent, respec-tively.

.●

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RTGs drive NPs rise

Page 9: CAPCO debt fully paid off

BH249

Page 10: CAPCO debt fully paid off

HARARE - The local bourse losing streak continued today with the mainstream industrial index hitting new lows.

The industrial index registered the lowest level since 30 April 2009 after dropping 0.59 to settle at 99.80 as Innscor

declined by $0,0050 to close at $0,1900 while Barclays and beverages giant Delta each shed $0,0030 to trade at $0,0350 and $0,5200 respec-tively.

Giant retailer OK Zimbabwe closed at $0,0350 after a

$0,0025 loss.

Old Mutual was the only coun-ter to trade in the positive gaining $0,0024 to settle at $1,8024.

First Mutual, Pearl, Simbisa and starafrica remained unchanged at $0,0220, $0,0220, $0,1450

and 0,0080 in that order.

The mining index was steady at 18.74 as Bindura, Falgold, Hwange and RioZim main-tained previous price levels at $0,0090, $0,0050, $0,0300 and $0,1040, respectively

. - BH24 Reporter ●

ZsE10

Equities market hits low ebb

Page 11: CAPCO debt fully paid off

MOvERs CHANGE TOdAy PRiCE UsC sHAKERs CHANGE TOdAy PRiCE UsC

Old Mutual 0.13 180.24 BARCLAyS -7.89 3.50

OK ZIM -6.66 3.50

INNSCOR -2.56 19.00

DELTA -0.57 52.00

iNdEx PREviOUs TOdAy MOvE CHANGE

INDUSTRIAL 100.39 99.80 -0.59 points -0.59%

MINING 18.74 18.74 +0.00 POINTS +0.00%

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Page 12: CAPCO debt fully paid off

12 diARy OF EvENTs

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

POwER GENERATiON sTATs

Gen Station

16 February 2016

Energy

(Megawatts)

Hwange 476 MW

Kariba 285 MW

Harare 30 MW

Munyati 26 MW

Bulawayo 23 MW

Imports 0 - 350 MW

Total 1250 Mw

—18 February 2016 - 70th Annual General Meeting of the members of CAFCA ; Place: Boardroom at the company’s registered office at 54 Lytton Road, Workington, Harare; Time: 12:00 hours

—23 February 2015 - 38th Annual General Meeting of the members of Powerspeed Electrical Limited; Place: Powerspeed Board-room, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside, Harare; Time: 1100 hours

25 February 2016 - Extraordinary General Meeting (“EGM”) of the Shareholders of Radar Holdings Limited; Place: Tanganyika House, 6th Floor Boardroom, Harare; Time: 0900 hours...

25 February 2016 - The 49th Annual General Meeting of Mashonaland Holdings Limited; Place: The Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Avenue, Harare; Time: 1200 hours...

26 February 2016 - The Sixty-ninth Annual General Meeting of Ariston Holdings Limited; Place: Ariston Holdings Limited Main Boardroom, 306 Hillside Road, Msasa Woodlands, Harare: Time: 14.30 hours:

THE BH24 diARy

Page 13: CAPCO debt fully paid off

JOHANNEsBURG - South Africa's rand was weaker in early trade on Tuesday, giv-ing up some of the gains trig-gered by the easing of global risk aversion driven by higher oil prices.

Stocks were set to open flat at 0700 GMT, with the JSE securities exchange's Top-40 futures index inching up 0,16 percent.

By 0645 GMT the rand had slipped 0,12 percent to 15.7360 per dollar, wilting against a greenback boosted by a return of faith in the United States' economic recovery that investors bet will lead to higher interest rates there in 2016.

Bonds were firmer as yields fell, with the benchmark gov-ernment issue due in 2026 shedding 2.5 basis points to 9,135 percent.

Despite gaining more than 3 percent against the dollar in the past two weeks, analysts expect the rand's rally to run into obstacles in the run up to Finance Minister Pravin Gord-han's budget speech next Wednesday.

"Mr Gordhan will l ikely pres-ent an extremely austere Budget next week," analysts at NKC African Economics said.

"He needs to send a strong signal to rating agencies and foreign investors that South Africa is committed to fis-cal consolidation in wake of December's finance minister debacle."

Ratings firms Fitch and Standard and Poor's both have South Africa's debt one level above subinvestment, while fellow agency Moody's rates the country two levels above junk, but with a 'nega-tive' outlook. – Reuters●

REGiONAl NEws 13

Rand backtracks against firmer dollar, stocks flat Moody's downgrades Anglo American's

debt to "junk"

Miner Anglo American Plc's debt was downgraded fur-ther into "junk" territory by Moody's Investor Service, which cited a deterioration in commodities market con-ditions and doubts over how long it would take the com-pany to reduce debt levels.

Moody's downgraded the company to (P)Ba3 from (P)Baa3, and said the outlook on the ratings was negative.

Moody's said it does not expect Anglo American to generate enough operating cash flows to deliver sub-stantial organic debt reduc-tion in the next two years.

"Pending further announce-ments by the company, the rating agency believes that divestments of non-core assets would be difficult to execute in the current environment, particularly at valuations to allow delev-eraging from the current level," Moody's said in a statement.

It added that the negative outlook reflected uncer-tainty that Anglo would be able to execute its restruc-turing.

The commodities slump has sent share prices of mining companies tumbling, with Anglo falling by three-quar-ters in 2015 and the FTSE Mining Index nearly halv-ing.

Peer Glencore Plc, which saw its share price fall 70 percent in 2015, was down-graded by Moody's to one notch above junk in Decem-ber.

Anglo American announced in December that it would sell three-fifths of its assets and cut tens of thousands of jobs to cope with the slump.

Anglo is expected to report full-year results on Tuesday. The company's stock closed up 5 percent at 393.05 pence on Monday

– Reuters●

Page 14: CAPCO debt fully paid off

OBrent crude advanced above $34 a barrel as Saudi Arabia is said to meet with Russia in Doha on Tuesday to discuss the mar-ket.

Futures climbed as much as 4,3 percent in London, rising for a third day. The increase boosted shares of Asian energy compa-nies, which led gains in equities across the region. Saudi Ara-bia’s Oil Minister Ali al-Naimi will speak with his Russian coun-terpart Alexander Novak in the Qatari capital, according to a person familiar with the talks, who asked not to be identi-fied because they are private. Venezuela will also attend and the person didn’t say what the agenda of the meeting will be.

Venezuela has lobbied export-ers including Russia, Iran and Saudi Arabia to arrange a meet-ing between OPEC members and other suppliers in an attempt to reach an agreement to balance the market. Oil is still down about 7 percent this year amid the outlook for increased Iranian exports and BP Plc predicts the market will remain “tough and choppy” in the first half as it con-tends with a surplus of 1 million barrels a day.

“The fact that there is going to be a meeting is an advance,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “There’s obviously a long way to go. The consensus view is that we’re about 12 to 18 months from achieving a balance in the oil market, even by main-taining the status quo. Making a decision to coordinate a supply reduction would just be ceding share to other producers.”

Brent for April settlement advanced as much as $1,44 to $34,83 a barrel on the Lon-don-based ICE Futures Europe exchange and was at $34,74 at 2:45 p.m. in Hong Kong. The contract rose 3 cents Monday to close at $33,39 after an 11 percent gain Friday. The Euro-pean benchmark crude was at a premium of $1,65 to West Texas Intermediate for April.

Russian doubts

WTI for March delivery climbed as much as $1,50, or 5,1 per-cent, to $30,94 a barrel on the New york Mercantile Exchange from the Friday close. There was no settlement Monday because of the US Presidents Day holiday. Trades will be booked Tuesday for settlement purposes. The contract gained 12 percent to settle at $29,44 on Friday after dropping 19 percent the previous six sessions.

Energy companies were the big-gest gainers on the MSCI Asia Pacific Index on Tuesday, with Australia’s Origin Energy Ltd. jumping 7 percent in Sydney, PetroChina Co. increasing 6,6 percent in Hong Kong and PTT Pcl rising 2,6 percent in Bang-kok.

Russia faces numerous obsta-cles in cooperating to cut output, even if President Vladimir Putin decides it’s in the national inter-est. Reducing the flow of crude might damage the nation’s fields and pipelines, require expen-sive new storage tanks or sim-ply take too long. Production from a shut-in well might never be restored in full, according to Maxim Nechaev, director for Rus-sia at consulting firm IHS Inc.

Russia’s largest oil producer Ros-neft OJSC will supply its tradi-tional markets with oil in a “com-petitive battle,” Chief Executive Officer Igor Sechin said in London last week. He expressed doubts about any coordinated action by crude-exporting nations to curb output.

Iran, which was the second-big-gest producer in the Organi-sation of Petroleum Exporting Countries before sanctions were intensified in 2012, is seeking to boost output by 1 million barrels a day and regain market share after penalties were lifted. The nation has loaded its first cargo to Europe, while Chinese and Spanish companies have also booked shipments. - Bloomb-erg●

iNTERNATiONAl NEws 14

Brent jumps above $34 as Saudis said to plan talks with Russia

Page 15: CAPCO debt fully paid off

*Hedge funds are taking profits and world's most accurate gold price fore-caster still sees triple digits this year

By Frik Els

Global equities and crude oil were full rebound mode on Monday and stock futures in the US pointed to another rally when markets re-open after the President's day long week-end.

That gave traders in gold futures in New york a good excuse to take profits after last week's jump in the gold price to a year high above $1 250 an ounce.

In early dealings gold for delivery in April, the most active contract, fell to a low of of $1 202,70 an ounce, a drop of 3 percent or more than $36 compared to Friday's close and nearly 5 percent below last Thursday's intra-day high.

Large futures speculators or "managed money" investors such as hedge funds dramat-

ically raised bearish bets on gold during the final months of 2015. Net short position-ing – bets that gold could be bought back at a lower price in the future – hit a record 2,4 million ounces during the final trading week of 2015.

This year however hedge funds have been non-stop buy-ers pushing overall position-ing firmly back in the black. According to the CFTC's weekly Commitment of Traders data released on Friday speculators doubled net long positions – bets that prices will rise – to 7,3 million ounces.

That figure is now above the three-year average for long positions and represents a remarkable turnaround in sentiment from the unprec-

edented short position at the end of last year. The data is up to 2 February so while hedge funds were well positioned for Thursday's surge, a period of profit-taking was almost inev-itable.

Despite the pull-back gold is still experiencing one of its best starts to a year in dec-ades. Gold is up 13,4 percent year to date thanks to safe haven buying as investors seek cover from turmoil on financial markets, fears over the eco-nomic outlook and the push by central banks around the world into unprecedented negative interest rate territory.

Not everyone believes gold's rally will last. The winner of last year's London Bullion Mar-ket Association gold forecast

competition, Bernard Dahdah of French investment bank Natixis, in his latest prediction expects a gold price in triple digits in 2016.

Dahdah got it exactly right last year with a forecast of an average $1 160 for 2015. This year Dahdah's predicts a low of $900 and a high of $1 300 and an average of $970 for the year with the decline mostly blamed on US rate hikes and a strong dollar: We expect that the biggest influ-ence on the price of gold this year will be the expected path of interest rate hikes. Natixis expects further rate hikes by the Fed this year, which should increase the opportunity cost of holding the metal. Outflows from physically backed ETFs are expected to continue as higher yielding investments and a stronger dollar become more attractive to investors. The upside risk comes from possible delays in rate hike cycle due to a weak US per-formance or more severe eco-nomic issues in China. - Min-ing.com●

15 analysis15 ANAlysis

Well, that was quick. Gold price getting slammed