News Update as @ 1530 hours, Wednesday 18 June 2014Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw

By Rumbidzayi Zinyuke

Zimre Property Investments Limit-ed’s performance for the five months to May 2014 was subdued due to the severe liquidity challenges that have adversely affected the property sector.

Giving a trading update at the com-pany’s annual general meeting, Zimre managing director Edwin Mavingi said the liquidity constraints had led to subdued rent income, rising voids and debtors, increased lease surrenders as well as limited debt finance.

“Performance for the first five months of 2014 was lower than last year but we remained profitable,” he said.

He said total income for the period went down 22 percent from last year’s $3,2 million to $2,5 million while operating profit was 29 percent lower

at $1 million from $1,4 million in the prior period. Rental income was also 5 percent lower from $1,6 million in May 2013 to $1,5 million in the review period.

“Rental growth has been subdued and we actually have a group of our tenants that have closed operations. This is not

necessarily a ZPI problem alone but it is across the board,” he said.

The group’s project sales were 38 per-cent down from the previous period as the company limited sales in the first half of the year due to low recovery rate. He said the Masvingo and Bul-awayo development projects were the

most affected by low recovery while the project in Harare’s Tynwald surbab was doing well. “The challenge is lack of recovery of costs incurred. Our main worry is in time taken to recover money and realise profit.

"In Masvingo, 47 percent of the 338 stands had been sold to date with a total cost recovery of 63 percent. But low end products sell as is the case with our Tynwald project. We have already sold 64 percent of the stands with a 96 percent cost recovery rate,” he said.

Mavinge added that the company will embark on an extension of Harare’s Zimre Park residential area set to com-mence in September this year and be completed by August 2015. The project will see the building of 229 residential stands measuring 800 square metres each at a total cost of $5,6 million. •

High voids, debts hurt Zimre Property Investments

BH24 Reporter

The deadline for all financial institutions to submit their comprehensive re-cap-italisation plans to meet Cabinet-ap-proved levels is just two weeks away.

Commercial banks were initially required by the central bank to have minimum capitalisation of US$100 million by 2014, but this was later extended to 2020.

The Reserve Bank of Zimbabwe (RBZ) set June 30, 2014 as the deadline for all financial institutions to submit their

plans to meet the Cabinet approved minimum capitalisation levels by 2020.

The $100 million capitalisation dead-line was extended by six years to 2020 after the RBZ noted that the banking sector was generally stable in spite of the various underlying macro-eco-nomic challenges and institution spe-cific weaknesses.

A few institutions may fail to submit acceptable re-capitalisation plans, having failed to source funding and/or strategic alliances, with Capital Bank having relinquished its licence at the

beginning of this month. Other banks appear better prepared, for instance Tetrad Holdings Ltd shareholders last month unanimously approved the acquisition of a controlling stake in its banking unit — Tetrad Investment Bank (TIB) — by a Russian investment group, Horizon Capital Consortium.

On the other hand Atlas Mara's much-publicised acquisition of Ban-cABC, with the deal expected to boost the bank’s capital position.

The other financial intuitions have been going about their business quietly.

Earlier this month, the RBZ proposed plans to increase the threshold for non-financial institutions in local bank shareholding from 10 percent to 25 percent.

“Cognizant of the fact that institutional shareholders, unlike individuals, are more likely able to inject additional cap-ital when called upon to do so, propos-als are being made that shareholding limits for companies be increased from the current 10 percent to 25 percent,” said the Reserve Bank in a statement."

The move will likely be received as a positive development by most banks that have turned to cash-rich foreign investors that are not necessarily finan-cial institutions.

Across the different types of financial institutions, the December 31, 2020 capital thresholds are as follows: $100 million for Commercial and Merchant banks, $80 million for Building Soci-eties, $60 million for Finance Houses and Discount Houses, $10 million for Microfinance Banks and $25 000 for Microfinance Institutions. •

2 NEWS

$100m banks capitalisation plan submission deadline looms

BH24 Reporter

Richard Summers is the new president of the Institute of Chartered Secretaries and Administrators in Zimbabwe (ICSAZ).

Summers, a former Cairns Foods dis-tribution director, was elected president of ICSAZ at the institute’s recent annual general meeting. Prior to his appoint-ment, Summers was vice-president of ICSAZ for the past year. He is a Fellow of the Institute of Chartered Secretaries and Administrators and a registered pub-

lic accountant. He joined Astra Paints as administrative manager in 1981. He was appointed financial director of Astra Wild-life Limited in October 1989.

In April 1990 he was appointed financial director of Astra Trading and Agricul-ture, incorporating Astra Wildlife, Astra Silk, Expeditors and Claver Hill Farm. In July 1993, Summers was promoted to the position of financial director of Astra Industries, incorporating Astra Paints, Henry Dunn Steel, Astra Engineering and Panasonic. He was appointed Astra Group

company secretary in July 1996. He held several other positions within the group.

In February 2000 he became the general manager and director of Paprika Zim-babwe and a director of Cairns Foods. In 2001, Paprika Zimbabwe became a subsidiary of Cairns Foods, following the Astra demerger. He took up the position of Cairns Foods distribution director in August 2005. He retired in December 2010. He was also the chairman of the Cairns Holdings Group Accident Review Committee.

In 2009 Summers was appointed a mem-ber of the Marketing and Strategy Com-mittee and the Investigations Committee of ICSAZ. He was elected an institute council member in 2010 and a member of the institute’s continuous professional development committee. He was also the chairman of the Education and Examina-tion Committee during 2013 to 2014

Meanwhile, the AGM also saw Zimbabwe Economics Society president Lovemore Kadenge and business consultant Simbar-ashe Dziva being elected vice presidents.

3 NEWS

By Lynn Murahwa

The Office of the Minister of State for Liaising on Psychomotor Activities in Education has engaged the Confeder-ation of Zimbabwe Industries to boost technical skills development.

CZI president Charles Msipa acknowl-edged that the current educational system does not benefit the country as many school leavers and graduates are left unemployed. “The current system doesn’t serve the country very well. It is generating many school leavers and

many people labeled as failures. The few that manage to get into University come out and are jobless. “We need to figure out how we can help people and how they can be equipped with skills that they can create opportunities for themselves," he said.

Speaking at the meeting with repre-sentatives of industry Minister of State for Liaising on Psychomotor Activities in Education Josiah Hungwe said the implementation of Psychomotor skills into the education system will improve job creation as well as remove poverty

in line with ZimAsset and the indigeni-sation policy. "Enhancing the infusion of Psychomotor concept into education is expected to improve the relevance of education, increase employment crea-tion and eradicate poverty in line with the new Government thrust regarding Indigenization, empowerment, devel-opment and creation of employment as outlined in Zim Asset" he said.

According to Minister Hungwe, consul-tations are currently under way with the Education Ministries on how to mainstream the psychomotor concept

into the education system.

"Consultations are ongoing with the Education Ministries and other relevant Ministries that constitute the inter-min-isterial committee on mainstreaming the psychomotor concept into educa-tion" he said.

The Office of the Minister of State for Liaising on Psychomotor Activities was set up last year to encourage entrepre-neurship, technical and vocational edu-cation training. •

Psychomotor Ministry engages industry

Summers is new ICSAZ president

4 NEWS

BH24 Reporter

Insurance firms Old Mutual, Zimnat and Nyaradzo have partnered Telecel Zimbabwe for the payment of insur-ance premiums through its mobile electronic wallet service Telecash.

In addition to Eagle Insurance and First Mutual Life, this brings to five the num-ber of insurance companies that Tele-cash subscribers are able to make pay-ments to, said Telecel in a statement.

"As with all Telecash transactions, the subscriber will be required at some point in the transaction to enter his or her Telecash personal identification number (PIN) to confirm that the per-son paying the bill is the holder of the Telecash account linked to the mobile phone that is being used.

"After selecting the service provider whose bill is to be paid, the subscriber is asked to enter his or her account number with the service provider, that is with Old Mutual, Nyaradzo or which-ever company it is whose bill is to be paid, and the amount to be paid," said Telecel.

Recently, TelOne and the City of Bula-wayo also recently signed agreements

with Telecel for the payment of tele-phone bills and municipal bills with Telecash.

The list of service providers accepting payment with Telecash now includes Cimas, DSTV, City of Harare, City of Bulawayo, TelOne, Eagle Insurance, First Mutual Life, which in addition to insurance also has a medical savings fund, and now Old Mutual, Zimnat and Nyaradzo.

Telecash is an electronic wallet into

which money can be deposited and withdrawn at any Telecash agent and from which payments can be made for bills and goods and services. Money can also be transferred from a Telecash account to the mobile phone of anyone else, regardless of network.

Currently there are more than 3 000 Telecash agents, including all Bon Marche, OK Bazaars and TM Super-markets and all post offices. •

Old Mutual, Zimnat and Nyaradzo join Telecash

5 NEWS

Zimbabwean startup ZimStocks has announced an update to its stock per-formance-monitoring platform, allow-ing users to discuss the companies listed on the country’s stock exchange.

HumanIPO reported in March Zim-Stocks hoped to provide a tool to mon-itor performance of stocks and educate current and future investors about the trading on the country’s exchange.

The company has now launched a discussion feature, allowing users to “to create content and participate in discussions for the Zimbabwe Stock Exchange companies that [they] care

about”.

Users have the ability to participate in an already existing discussion or create

a new one from within the ZimStocks app.

A drop down menu enables the user to select what he thinks should be done with the company’s stocks: buy, hold, sell or do nothing.

The updated platform also has a trend-ing section showing which top five companies are currently under discus-sion.

The company has also recently launched an iOS app, adding to its already existing website and Android app. ― Human IPO •

ZimStocks app adds discussion feature

By Elita Chikwati

The 2014 flue cured tobacco selling season will close next week, earlier than the pre-vious seasons with deliveries expected to surpass 200 million kilogrammes.

Auction floors normally close in July. Due to the high deliveries being received at the contract floors, sales will continue until further notice. Tobacco Industry and Mar-keting Board chief executive officer Andrew

Matibiri said this season has been fast. “The flue cured tobacco marketing season will close on Friday June 27 with final deliv-eries accepted on Thursday 26 June.

“All growers who sell on auction floors are therefore advised to complete their grad-ing and baling operations by Wednesday 25 June at the very latest. “Most farmers have delivered their crop for sale and we are confident that the tobacco deliveries will surpass 200 million kgs,” he said. The

flue cured auction tobacco clean up sale for the 2014 marketing season will be held on July 15.

Statistics from the TIMB show that 194 million kgs of flue cured tobacco worth $619 million has been sold since the open-ing of selling season in February. This is an increase of 32 percent from the 147 mil-lion kg of tobacco worth $543 million sold same period last year. Last season 166 mil-lion kgs of tobacco were sold. •

Contract floors push auction floors early closure

BH24

International interest in this year’s Min-ing, Engineering and Transport (Mine Entra) exhibition is high as five foreign nations have so far confirmed partici-pation compared to three countries that participated at the event last year.

Mine Entra 2014 is set to provide an ideal marketing forum for mining, engineering and transport companies to showcase their latest products, tech-nology and services applicable to the fast growing mining sector in Southern Africa. “The show has so far attracted over 100 exhibitors with 3,500 square metres of exhibition space booked. International interest is high as five for-eign nations, represented by 21 com-

panies, have so far confirmed partici-pation. These are Belgium, Botswana, China, Germany and South Africa,” said the Zimbabwe International Trade Fair Company general manager, Noma Ndlovu, during a press conference yesterday. She said exhibition space

was still available adding that the ZITF Company encouraged exhibitors who have not yet taken up stands to do so before the early booking discount offer expires on June 30.

The expo will run from July 23 to 25 at the Zimbabwe International Exhibition Centre in Bulawayo under the theme, “Innovation, Beneficiation, Growth”.

The theme seeks to explore how inno-vative technologies and ideas can be used to beneficiate Zimbabwe’s min-eral resources so as to achieve national economic growth and prosperity. Being a sector-specific exhibition, Ndlovu said a mix of mining, engineering and trans-port products and services would be on display. The exhibition will also promote supporting sectors in order to provide a total solution to the industry.“Some of

the services on show include banking, security, insurance, customs, clearing, medical and chemical supplies. Build-ing and construction equipment exhib-its introduced last year will also be a prominent feature as well as protective clothing and other safety products,” she said.

Small scale miners and representa-tives from Women in Mining have also shown interest in participating at the exhibition. Mine Entra 2014 and Joint Suppliers and Purchasers Conferences are some of the highlights of the exhi-bition.

The official opening ceremony of Mine Entra 2014 will be held on July 24 and the guest of honour is expected to be announced in due course. ― Chroni-cle •

MINING7

5 foreign nations confirm participation at Mine Entra

BH24

The equities market have returned to positive trading after dropping a mar-ginal 0.01 percent yesterday, bumping 0.81 percent in today's trades.

A number of key heavyweights drove the positive performance as the Indus-trials Index added 1.47 points to close at 182.50 points as the gainers exceeded the losers 9 to 3.

Cement producer PPC gained 9 cents to 225 cents, while Hippo advanced 2.01 cents to trade at 70.01 cents.

Telecoms giant Econet was up 1.50 cents to 73.50 cents and beverages producer Delta gained 1.09 cents to 118.10 cents, while Meikles inched up a cent to 21 cents.

On the downside ZBFH slipped 3 cents

to close at 3 cents. GBH and Medtech retreated 0.02 cents each to settle at 0.04 cents and 0.05 cents respectively.

The mining index gained 2.50 points (or 4.80 percent) to close at 54.58 points as Bindura continued in buoyant mood, gaining 0.21 cents to trade at

4.21 cents. The other mining counters, Falgold, Hwange, and Riozim all main-tained previous trading levels. Turnover today was significantly higher at $2,4 million compared to less than 41 mil-lion since the opening of the week.

— BH24 Reporter •

9 ZSE REVIEW

Equities make quick bounce back

World postal service has dwindled as demand has become low. The once-proud postal services that helped build modern society are scaling back operations, risking further declines.

Zimbabwe has not been spared. The post office used to make most of its money from letters but they now contribute only 20 percent of their revenues.

What has happened to the remaining 80 percent?

Zimpost was handling 100 million pieces every year in 2010 but is now carrying only 14 million. Total rev-enues have slumped to $20 million while the employee base has gone from 3000 to 1169.

And this is only because they cannot keep shedding more personnel and cannot close any branches. Opti-mally, the postal service provider should be employing 800 employ-ees.

So what is the strategy to keep the postal service alive? The value of the mail goes beyond money in many places, including rural areas. The

postal carrier serves as a focal point for the community.

A lot of players are going for a digi-tal strategy, and fewer are doing the direct-mail approach,” said Walter Beyleveldt, managing director for Asia Pacific region. “Because of that, the mailbox will get emptier. It will potentially become an exciting place to go and look.”

For now, a boom in internet shop-ping is helping keep alive moribund postal services across the developed world.

It was heartening to hear Zimpost managing director Douglas Zim-bango saying the future of Zimpost will be anchored on e-commerce.

This shows that they are not wait-

ing for technology to beat them to extinction but are maximizing on the digital revolution.

“As long as other businesses are surviving, we will tap into them. We actually encourage the development of e-commerce because we are there to do the physical delivery.

If you buy things over the internet, the internet will not deliver. Zimpost will be there to deliver so we will lev-erage on technology.

"With over 70 percent of our reve-nue coming from agent services, the company’s future is very bright because as we do our business with third parties we also get a share of their revenue,” he said.

Harnessing technology will get them

more revenues considering that they have a big workforce to take care of.

But the problem is that internet shopping has not become that big in Zimbabwe. People still prefer to do their shopping physically.

However, if Zimbabweans take up internet shopping like most devel-oped countries have done, there will be an increase in business for our post offices.

We will never go back to direct mail but the world will keep improving with technology.

So if the post office can take advan-tage of their positioning in the remotest parts of the country then they can benefit more from this dig-ital era. •

10 BH24 COMMENT

Zimpost moving with the times

Programme and Duration Entry Requirements

The Senior Assistant Registrar (Admissions)University of Zimbabwe

P.O. Box MP 167Mount Pleasant, HARARE

Email: admissions@admin.uz.ac.zw

Tel: 04 303211 ext 11116/11181/11112 You can also download our application form from

www.uz.ac.zw and enclose the application fee.

Internationals. Only cash will be accepted.

Faculty of Commerce The closing date for receipt of application forms is 20th June, 2014. Late applications will be considered up to 27th June, 2014

Masters in Accountancy (MACC) (3yrs P/T) A first degree in Accounting or upon payment of a late application fee of US$70. related field with a 2.1 or better. Applicants with 2.2 must

have two years relevant post- Application forms should be obtained from and forwarded to: graduate work experience.

Masters in Strategic Marketing (MSM) (3yrs P/T) A first degree in Marketing or related field with a 2.1 or better.

Applicants with 2.2 must have two years relevant post-graduate

work experience.

Applications and further information

Application forms are available upon payment of a non-refundable fee of US$50 for Zimbabweans and US$70 for

UNIVERSITY OF ZIMBABWE

POSTGRADUATE PROGRAMMES: AUGUST 2014 INTAKE

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Applications are invited for the following programmes commencing in August 2014:

BH24

South Africa’s inflation rate climbed to 6.6 percent in May, the highest in almost five years and exceeding the central bank’s target for a second month.

Inflation accelerated from 6.1 per-cent in April, Pretoria-based Statistics South Africa said on its website today. The median estimate of 25 econo-mists surveyed by Bloomberg was 6.5 percent. Prices rose 0.2 percent in the month.

The Reserve Bank kept its benchmark repurchase unchanged at 5.5 percent last month even as it forecast infla-tion would stay outside the 3 percent to 6 percent target band until the sec-ond quarter of next year.

Africa’s second-biggest economy is threatened with recession after a 20-week platinum strike caused gross domestic product to contract an annualized 0.6 percent in the first three months of the year.

The inflation data “will most certainly continue to highlight the Reserve Bank’s current dilemma of manag-ing an uncomfortable domestic infla-tion environment amid a weakening

economic backdrop,” Jeffrey Schultz, an economist at BNP Paribas Cadiz Securities in Johannesburg, said in an e-mailed note to clients before the

release of the data.

The core inflation rate, which excludes food, non-alcoholic bever-

ages, gasoline and electricity costs, was unchanged at 5.5 percent in May. ― Bloomberg •

12 REGIONAL NEWS

South African inflation accelerates to highest in almost 5 years

enjoy the CAIO ride!

13 DIARY OF EVENTS

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

POWER GENERATION STATSGen Station

18 June 2014

Energy

(Megawatts)

Hwange 418 MW

Kariba 750 MW

Harare 45 MW

Munyati 29 MW

Bulawayo 21 MW

Imports 170 MW

Total 1433 MW

26 June - Pioneer 44th Annual General Meeting of Sharehold-ers, Venue: Pioneer Corporation Africa Limited Boardroom, Corner Hood/Hermes Roads, Southerton, Harare, Time: 10:00 hrs

26 June - Masimba Holdings Limited Thirty-Ninth Annual General Meeting of Mem-bers for the period ended 31 December 2013, Place: 44 Til-

bury Road, Willowvale, Harare, Zimbabwe, Time: 12:00

30 June - TA Holdings 79th Annual General Meeting of the ordinary members Venue: Miti Room, Sango Conference Centre, Cresta Lodge, Harare, Time: 1400 hours

30 June - ZIMRE 16th Annual General Meeting of members, Venue: NICOZDIAMOND Audito-rium, 7th Floor Insurance Centre, 30 Samora Machel Avenue, Time: 1230 hours

THE BH24 DIARY

BH24

15 ZSE

ZSEMOvERS CHANGE TODAY PRICE USC SHAKERS CHANGE TODAY PRICE USC

COTTCO 11.11% 1.00 ZBFH -50.00% 3.00

BNC 5.25% 4.21 GENERAL BELTINGS -33.33% 0.04

MEIKLES 5.00% 21.00 MEDTECH -28.57% 0.05

PPC 4.17% 225.00

NICOZDIAMOND 4.00% 1.30

HIPPO 2.96% 70.01

ECONET 2.08% 73.50

DAIRIBORD 1.18% 8.60

DELTA 0.93% 118.10

Indices

INDEx PREvIOUS TODAY MOvE CHANGE

INDUSTRIAL 181.03 182.50 +1.47 POINTS +0.81%

MINING 52.08 54.58 +2.50 POINTS +4.80%

Stocks Exchange

16 AFRICA STOCkS

Botswana 8,664.65 -11.96 -0.14% 12July

Cote dIvoire 246.37 +2.18 +0.89% 07Mar

Egypt 7,949.60 -75.68 -0.94% 06Mar

Ghana 2,343.98 +9.46 +0.41% 06June

Kenya 4,881.56 +12.30 +0.25% 06June

Malawi 12,662.47 +0.00 +0.00% 07Mar

Mauritius 2,074.51 -3.51 -0.17% 07Mar

Morocco 9,544.10 +21.01 +0.22% 07Mar

Nigeria 41,529.11 -40.98 -0.10% 06June

Rwanda 131.27 +0.00 +0.00% 24Oct

Tanzania 2,018.97 +25.40 +1.27% 07Mar

Tunisia 4,624.39 -39.32 -0.84% 07Mar

Uganda 1,503.90 +0.81 +0.05% 10Sep

Zambia 4,242.74 +14.95 +0.35% 10April

Zimbabwe 178.58 +1.54 +0.87% 06June

African stock round up Commodity Prices

Name Price

Crude Oil 1,300.91 -0.21%

Spot Gold USD/oz 1,292.63 -0.26%

Spot Silver USD/oz 19.38 -0.46%

Spot Platinum USD/oz 1,421.25 -0.33%

Spot Palladium USD/oz 798.50 -0.64%

LME Copper USD/t 6,770 -0.18%

LME Aluminium USD/t 1,780 -1.17%

LME Nickel USD/t 18,230 -1.73%

LME Lead USD/t 2,095 -1.41%

Quote of the day —"The secreT of success is consisTency of purpose." - Benjamin Dis-raeli Globalshareholder.com

BH24

The gold industry will discuss changes to the century-old gold fixing bench-mark that’s used by mining companies to central banks to trade and value the metal.

Banks to refiners to exchanges are being invited by the World Gold Coun-cil to meet on July 7 in London to talk about reforming the rate set daily by four banks, the industry group said in an e-mailed statement today. The U.K’s Financial Conduct Authority will attend as an observer.

The gold fix is set twice a day on a call between Societe Generale SA, Bank of Nova Scotia, HSBC Holdings Plc and Barclays Plc. A similar silver

price-setting ritual will end in August when Deutsche Bank AG quits the daily meetings, with companies due to make proposals for an alternative mechanism this week. The regulatory focus on financial benchmarks is inten-sifying after rigging was uncovered

in everything from interbank lending rates to currencies.

“It is not surprising that it needs to change to meet today’s market expectations for enhanced regulation, transparency and technology,” Natalie Dempster, managing director, central

banks and public policy, said in the statement. “Modernisation is impera-tive in order to maintain trust across the industry.” A reformed gold fixing process or alternative method should be based on executed trades rather than submitted quotes, tradeable and not just a reference price, the council said. Data should be transparent, pub-lished and subject to audit.

There could be “reform to the fix to bring it in line with the IOSCO princi-ples or it could see an alternative price benchmark emerge,” Dempster said, referring to the International Organi-zation of Securities Commissions. ―- Bloomberg •

Militants have attacked Iraq's largest oil refinery. The governments of multiple countries have reported missing citi-zens and vowed to do everything they can to protect national interests within Iraq.

The attack on the refinery by rebels from the Islamic State of Iraq and the

Levant (ISIS) started at 4 a.m. (0100 UTC) in Baiji, security sources and employees told news agencies. One mortar hit a spare-parts warehouse and smoke billowed from the building, the sources told the news agency Reu-ters. Authorities evacuated foreigners from the refinery Tuesday as forces braced for the attack. Late Tuesday,

reports had suggested that the com-pound was still being held by elite gov-ernment troops, while the nearby town fell to ISIS fighters.

On Wednesday, Saudi Arabia's foreign minister warned of potential civil war in Iraq as Sunni militants pulled within 60 kilometers (40 miles) of Baghdad. The

ISIS insurgents, who launched their lightning assault on June 9, have since captured Mosul, a city of more than 2 million inhabitants, and a large area of land north of the capital.

Soldiers from the Iraqi army and Shiite militias have joined forces to repel the ISIS fighters. ― DW •

18 INTERNATIONAL NEWS

ISIS attacks Iraq's Baiji oil refinery

Gold industry to discuss century-old fixing benchmark

The Group of 77 (G77) plus China summit concluded Sunday in the east-ern Bolivian city of Santa Cruz with the adoption of a declaration calling for a new world order that is equitable, sta-ble and peaceful.

The Santa Cruz declaration underlined their commitment to reducing poverty and inequality, fostering sustainable development, protecting sovereignty over natural resources and promoting fair trade.

With the theme of New World Order for Living Well, the two-day summit also marks the 50th anniversary of the establishment of the G77, which has grown into a coalition of 133 UN devel-oping member states.

UN secretary-general Ban Ki-moon said at the summit that the G77 has enabled the Southern Hemisphere to speak with a common voice.

"Acting together, member states can eradicate extreme poverty and pro-vide opportunity for all within the finite bounds of our planet's resources," Ban said. More than 100 delegations of the

G77 block attended the summit, pre-sided over by Bolivian president Evo Morales.

Morales said that the G77 will follow a sustainable development paradigm that seeks not only balance between human beings but also balance between man and nature.

In the Santa Cruz declaration, the G77 also underlined its pledge to strive for a fair world order that would better meet the needs of developing countries.

Poverty was another issue on top of the summit's agenda. The G77 has pro-

posed a new goal to eradicate extreme poverty within its member states by 2030.

Chen Zhu, a vice chairman of the Standing Committee of the National People's Congress of China, attended the summit as a special envoy of Chi-na's president xi Jinping.

Chen pledged that China will strengthen coordination and cooperation with the G77 to promote common development and prosperity. At the conclusion of the summit, Le Hoai Trung, Vietnam's permanent representative to the UN, claimed that China operated a drilling

rig "in the exclusive economic zone of Vietnam" and sent warships to drive away Vietnamese vessels, which "infringed on Vietnam's sovereignty and territorial integrity." The Vietnam-ese official even demanded his claim be incorporated into the declaration.

Rebutting Vietnam's accusations, La Yifan, a deputy director-general of the Chinese Foreign Ministry's Interna-tional Organizations and Conferences Department, said the xisha (Paracel) Islands are an integral part of Chinese territory under the jurisdiction of the Chinese government.

He emphasized that all the successive Vietnamese governments prior to 1974 had formally acknowledged the islands as part of China's territory since ancient times. Participants in the summit turned down Vietnam's demands. The G77, the largest intergovernmental organization of developing countries, is aimed at promoting collective eco-nomic interests and gaining leverage within the international community. ― Xinhua •

19 ANALYSIS

G77+China summit calls for new world order

UN secretary-general Ban Ki-moon