A digital copy of the BH24 (02 December 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. By Tawanda Musarurwa
HARARE -Nestlé Zimbabwe has
increased the capacity of its Egron
milk powders and Cremora plant
following an $8 million capital
expenditure on the project this
year .
The $8 million capital expenditure
this year is part of $30 million
investment the Swiss food giant
has undertaken at its Southerton
factory in Harare over the last four
years.
In respect of the upgraded plant,
the company's milk powder (NIDO
and Everyday brands) output will
rise from 900 kilogrammes per
hour to 1 500kgs/hr, while output
of the Cremora brand will rise from
900kgs/hr to 1 600kgs/hr.
Speaking at the commissioning of
the refurbished plant this morning,
Industry and Commerce Minister
Mike Bimha said the investment by
Nestlé was indicative of a business
operating environment that was
still attractive for investors despite
prevailing economic challenges.
"The expansion in milk powders
and Cremora manufacturing line
comes at a time when many Zim-
babwean companies are struggling
News Update as @ 1530 hours, Wednesday 02 December 2015
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Nestlé Zimbabwe spends $8m in milk powders plant upgrade

2. or closing shop mostly because of
lack of capitalisation.
"Nestlé Zimbabwe's resilience in a
difficult environment is a positive
story and is testimony to other
potential investors that Zimbabwe
is a safe destination for invest-
ment," he said.
He however acknowledged the
need for Government to do more
to improve the business operating
environment:
"The currently obtaining low level
of capacity utilisation in the man-
ufacturing sector has resulted in
influx of imported goods in our
supermarkets mostly from the
region thereby offering an unlevel
playing field."
Nestlé South Cluster manager for
Zimbabwe, Zambia and Malawi
Mr Ben Ndiaye said the company
now has capacity to meet national
demand but volumes are still low
due to shortage of raw materials.
As a mitigatory measure, the com-
pany introduced a dairy empow-
erment scheme to economically
empower small scale dairy pro-
ducers as well as rebuild the dairy
industry in Zimbabwe through
increased raw milk supplies.
“For the last two years, 110 small
scale farmers have been trained by
Nestle’ agricultural services in ani-
mal nutrition, hygiene and maize
silage making,” he said.
Last week Nestle’ distributed 100
dairy cows worth $2 000 each to
20 small scale farmers in Chitom-
borwizi.
The Nestle dairy empowerment
scheme is a ten year programme
launched in 2011 in which the
food processor will distribute 4
000 heifers to dairy farmers par-
ticularly in Mashonaland East and
Mashonaland West provinces.
Under the programme, Nestle
trains farmers on milk production
covering subjects like hygiene in
handling milk, caring for the cows
and calves as well as the type of
grass and quantities required for
dairy cows.●
2 news

3. By Funny Hudzerema
HARARE - Zimbabwe should expe-
dite the establishment of a Sover-
eign Wealth Fund (SWF) to drive
long-term economic growth, Zim-
babwe Economic Policy Analysis and
Research Unit (ZEPARU) executive
director Dr Gibson Chigumira has
said.
Dr Chigumira said the SWFs could
be used to develop other sectors of
the economy, similar to what other
countries are doing.
“Zimbabwe has a diverse mineral
sector with immense potential to
anchor inclusive economic growth
and development,” he said. “The
money from minerals can be saved
to create a SWF for future genera-
tion use.”
He was speaking during a 'Global
practice in establishing and manag-
ing a sovereign wealth fund valida-
tion workshop'.
SWFs are most common in resource
rich countries and usually serve two
purposes. The first use of SWFs is
for stability of government revenue
under fluctuations in commodity
prices. When commodity prices are
high, governments set aside some
of the money from commodity sales,
and when prices are weak; this is
injected back into government’s fis-
cal revenues.
The second use of sovereign wealth
funds is to have a national savings
fund in order to have something
left over once the commodity runs
out or is no longer in demand. It is
done to benefit future generations
Countries like Botswana, Norway
and Dubai have introduced the SWF
which have helped to develop other
economic sectors.
“A major proportion of mineral
resource revenues could be accu-
mulated into a stabilisation fund to
be drawn down by the fiscus when
commodity prices fall below pre-
determined long-term projections,
protecting the budget from revenue
shocks.
“This fund could finance the mas-
sive investment required for geo-
logical survey to acquire a better
understanding of the geology and
to uncover new exploration targets,”
he said.
Many countries in South East Asia
like, China, Singapore and Hong
Kong for example have SWFs funded
by budgetary surpluses instead of
commodity exports.
The first sovereign wealth fund to be
created was in Kuwait in 1953, was
funded by oil revenues and today
currently holds assets of US$350 bil-
lion (Over US$100,000 per capita).
In this fund royalties were admin-
istered to this fund, which then
invested the money globally. Since
then, many countries have created
SWFs.
.●
3 news
Sovereign Wealth Fund critical for economic growth: ZEPARU

4. BH244

5. By Munesu Nyakudya
HARARE -The Deposit Protection
Corporation (DPC) has commenced
the payment of demonetisation pro-
ceeds to qualifying Zimbabwe Dollar
account holders for banks under liq-
uidation.
According to DPC the process - which
is in pursuance of the Zimbabwean
Government demonetisation exer-
cise - will run up until the second
quarter of next year.
The DPC shall be paying the equiva-
lent United States dollars amount for
each account balance as at Decem-
ber 31, 2008 converted by the
United Nations exchange rate of $1
to Z$5 quadrillion.
“Accordingly, DPC shall pay any per-
son who was a holder of a Zimbabwe
dollar denominated bank account for
AfrAsia Bank Zimbabwe Limited (In
Liquidation) and Allied Bank Limited
(In Liquidation as at 31 December
2008,” it said in a statement today.
“It will be paid as five United States
dollars for every account that was
held with a balance of zero up to
one hundred dollars and seventy five
quadrillion Zimbabwean dollars and
for any Zimbabwean dollar balances
above one hundred and seventy five
quadrillion Zimbabwe dollars at the
rate of one United States dollar to
thirty five quadrillion Zimbabwe dol-
lars.”
DPC said Zimbabwe dollar account
holders for AfrAsia and Allied Banks
are therefore advised to approach
DPC offices for payment with valid
proof of identification.
Only holders of active deposits and
savings accounts as at December 31,
2008 are eligible for payment whilst
holders of investment accounts are
not eligible for payments.
The broader demonetisation exer-
cise began in June following the
Reserve Bank of Zimbabwe's mid-
term monetary policy.●
5 news
Demonetisation exercise reaches banks under liquidation

6. BH24
TAA:DI251386-Y22Laz DI324241-D15
6

7. HARARE -The mainstream
industrial index was again
affected by selected heavy-
weights, losing 1.69 (or 1,46
percent) to close at 114.39.
Dragging down the bourse was
beverage giant Delta, which
dropped $0,0251 to trade at
$0,7000, while sugar proces-
sor Hippo declined by $0,0200
to $0,3700 while conglomerate
Innscor closed at $0,2900 fol-
lowing a $0,0050 loss.
Crocodile skin producer Padenga
dipped $0,0043 to settle at
$0,0750 and giant retailer OK
Zimbabwe was $0,0030 weaker
$0,0450.
On the upside, Old Mutual
advanced by $0,0012 to trade at
$2,1162 and Turnall was margin-
ally up by $0,0005 to $0,0095.
Activity on the bourse was lim-
ited to 16 counters.
The mining index was flat at
22.33 as Bindura, Falgold,
Hwange and RioZim all main-
tained previous price levels -
BH24 Reporter ●
ZSE7
Equities market extends losses

8. BH248

9. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Masimba 10.00 1.10 OK Zim -6.25 4.50
Turnall 5.55 0.95 Padenga -5.42 7.50
Old Mutual 0.05 211.62 Hippo -5.12 37.00
Delta -3.46 70.00
Edgars -2.85 6.80
Innscor -1.69 29.00
Index Previous Today Move Change
Industrial 116.08 114.39 -1.69 points -1.46%
Mining 22.33 22.33 0.00 0.00%
9 zse tables
ZSE
Indices
Stock Exchange

10. BH2410

11. 11 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
02 December 15
Energy
(Megawatts)
Hwange 296 MW
Kariba 468 MW
Harare 30 MW
Munyati 18 MW
Bulawayo 24 MW
Imports 0 MW
Total 799 MW
•11 December 2015 - Buy Zimbabwe Awards; Venue: Rainbow Towers, Harare
THE BH24 DIARY

12. BH2412

13. Johannesburg -The rand
remained on fragile ground
against the dollar on Wednes-
day, with scope to revisit the
previous day's record lows as
investors fretted about a pos-
sible credit rating downgrade
for South African at the end of
the week.
The JSE securities exchange's
Top-40 futures index was flat,
pointing to a similar start for
the local bourse at 0700 GMT.
By 0652 GMT the rand, which
hit an all-time low of 14.4950
versus the greenback in the
previous session, was trad-
ing at 14.4405, more on less
where it ended Tuesday trade.
Traders said investors were
focused on Friday's reviews
from Fitch, which rates South
Africa at BBB with a negative
outlook and warned of a pos-
sible downgrade in September,
and from Standard & Poor's,
which has it at BBB- with a
stable outlook.
U.S. jobs data also due out
on Friday could add pressure
on the rand if it hardens the
case for interest rates in the
world's biggest economy to
start rising in December.
"The local unit tested technical
resistance around 14.50/dol-
lar (on Tuesday) and further
losses seem unavoidable as
we approach release of sover-
eign credit rating reviews and
U.S. non-farm payrolls data,"
NKC African Economics said in
a note.
In fixed income, the yield for
debt due in 2026 eased 4 basis
points to 8.585 percent
- Reuters●
regioNAL News13
Rand under pressure ahead of ratings reviews

14. European stocks traded at a three-
month high, extending gains after
inflation data reinforced the case for
further central-bank stimulus.
The Stoxx Europe 600 Index rose
0.5 percent at 10:09 a.m. in London,
with all its industry groups up. Infla-
tion in the euro area unexpectedly
remained unchanged at 0.1 percent
in November. While up today, the
equity gauge has been hovering
around the same level for almost
a week, as traders are waiting for
European Central Bank President
Mario Draghi to unveil his monetary
plans tomorrow.
“It’s all about central banks now, but
there’s still substantial upside for
the markets,” said Teis Knuthsen,
chief investment officer at Saxo
Bank A/S’s private-banking unit in
Hellerup, Denmark. “The problem is
that Draghi has to deliver something
quite big. Markets don’t just want a
rate cut, they’re also looking for an
extension of QE in terms of volume,
asset classes and also timeline. He
needs to give us that combo.”
Anticipation for a boost in the ECB’s
quantitative easing pushed the
Stoxx 600 up 13 percent from its low
in September through the Tuesday
close. All the economists surveyed
by Bloomberg predict the central
bank will expand stimulus tomorrow,
and traders are so confident about
the outcome that they saw little need
to hedge: The number of Euro Stoxx
50 Index options changing hands
last month was the lowest since July
2014.
Swedish drugmaker Meda AB
climbed 3.3 percent on Wednesday
after Pareto Bank ASA recommended
buying the stock, while Roche Hold-
ing AG added 1.5 percent as Cit-
igroup Inc. upgraded it to a buy.
Novo Nordisk A/S, whose injected
diabetes therapies are under pres-
sure from pills that may delay the
use of its products, advanced 1.7
percent after saying a new analysis
shows its Victoza helps patients con-
trol their blood-sugar levels better
than tablets.
Restaurant operator Greene King Plc
rallied 9.1 percent after reporting a
jump in quarterly earnings. Wirecard
AG rose 3.6 percent after forecasting
2016 profit will be as much as 300
million euros ($319 million). Inves-
tors had been growing bearish, with
short interest on the stock reaching
18 percent, the highest level since
2013, according to Markit data.
ArcelorMittal tumbled 6.4 percent
after Vale SA predicted steel prices
will slump more next year. Anglo
American Plc lost 1 percent, trading
near a record low.
The Stoxx 600 slipped on Tuesday
from its high, after a report showed
U.S. manufacturing unexpectedly
contracted in November, indicating
some weakness in the economy just
as the Federal Reserve considers
raising interest rates. Traders are
pricing in a 72 percent chance that
the central bank will act this month. -
Bloomberg●
internatioNAL News14
Europe stocks rise toward three-month high after inflation data

15. By Phyllis Johnson
The International Monetary Fund has
recognized the reality of China’s place
in global finance by adding the Chinese
currency to its global basket of curren-
cies.
AnIMFannouncementon30November
said the renminbi (RMB) will be added
toitsSpecialDrawingRights(SDR)bas-
ket which includes four other interna-
tional currencies.
The IMF said the value of SDR will be
basedonaweightedaverageoftheval-
ues of the currencies, and other sources
said the RMB would be weighted at a
value of 10.92, which is below the US
dollar and the euro, but above the Brit-
ish pound and Japanese yen.
The change in the international status
of the Chinese currency in terms of the
Bretton Woods financial institutions,
which is effective from 1 October 2016,
recognizes the RMB (also call the yuan)
as a major reserve currency.
The IMF reviews its basket of currencies
at five-year intervals, and rejected the
RMB five years ago in 2010, saying the
currency did not meet its criteria, which
are essentially two: volume of interna-
tional trade and use of the currency in
international trade.
China without doubt has the largest vol-
ume of international trade, but only 2.5
percent of tabulated international trade
uses the Chinese currency, due to lack
of recognition as a tradable currency,
and RMB is used only in transactions
involving China. For comparison, while
the US dollar is used for US trade, it is
used mainly for trade involving third
parties.
But now, on 30 November 2015, the
IMF says the Chinese currency meets
the “freely usable” standard, and that
trading is up significantly in two of three
international time zones.
Recognition of the currency globally is
more than symbolic and, while not an
objective of Chinese economic policy, is
another step towards a globally traded
currency.
A main result could be that countries in
Africa, such as Zimbabwe and others,
will accept the RMB for exchange.
A contributor to forbes.com said this
announcementtellsusthattheIMF,and
by extension the world financial com-
munity, believes in China as “an unar-
guabletoptierplayerintheglobalecon-
omy; that it supports China’s efforts
to internationalize its currency; that it
believesinBeijing’sprocessofeconomic
reform.”
SanjivShah,thechiefinvestmentofficer
of Sun Global Investments says, “The
longer term impact of the event will
be more significant as it will lead to a
greater use of the yuan in international
transactions.”
A Japanese holding company and
consulting firm, Nomura, said that it
expects the RMB to pass the yen and
sterling within five years in terms of its
level of usage in world trade, and join
the dollar and euro by 2030.
“After years as the world’s largest
exporting nation,” said Nomura, “China
isnowattemptingtoexporttheultimate
‘Made in China’ product: the Renminbi.”
The founder of Hao Capital, Charles Liu,
while positive about the impact of the
decision, told China Central Television
(CCTV) that recognition of the RMB by
the international financial institutions is
“belated” and “begrudging”.
The IMF announcement came just
hours before the Chinese President Xi
Jinping touched down in Harare, Zim-
babwe, the capital of President Robert
Mugabe, who is the current chairperson
of the African Union.
President Mugabe told the media in an
impromptu press conference at State
House that President Xi is “our greatest
friend in the international community”. -
Sardc.net●
15 analysis15 analysis
IMF recognises Chinese currency as global