By Tawanda Musarurwa

HARARE - Innscor Africa’s bakery unit - Bakers Inn - is targeting to increase its mar-ket share to at least 55 per-cent this year.

The bread producer’s market share rose to around 44 per-cent in July last year from 37 percent previously.

Bakers' Inn chief executive Mr Ngoni Mazango said he expects the company to make further inroads in Zimbabwe's bread market.

"We want to move our mar-ket share to between at least 50 and 55 percent. I under-stand that if you talk to other businesspeople they will tell

you that average spend a day is dwindling, companies are closing and all that, but we are very optimistic that we can achieve that 55 percent market share by producing 600 000 loaves a day, which is our internal set target," said Mr Mazango.

Bakers Inn is currently pro-ducing 500 000 loaves a day.

The CEO said the company was not planning any new invest-ment this year to boost pro-duction capacity as it already has a plant on stand-by that has the potential to meet the targeted volumes.

"Basically, we have another plant which is on stand-by with a capacity of another 100 000 loaves a day, so in terms of expansion in Zimbabwe we have a plant, which is able to cater for any incremental vol-umes," he said.

Mr Mazango was speaking during the launch of a two-pronged promotion for traders and consumers, respectively.

The traders competition is basically a volume growth-based promotion that encour-ages traders to stock more of the Bakers' Inn bread and thus boost their margins, while the consumer competition is basi-cally an off-take strategy for the company's products on the stalls.●

News Update as @ 1530 hours, Thursday 11 February 2016Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw

Bakers Inn targets 55pc market share in 2016

BH242

By Munesu Nyakudya

HARARE - Zimbabwe requires around $100 million by 2030 to implement measures to mitigate the effects of climate change, an official has said.

In an interview, director of climate change management department in the Ministry of Environment, Water and Climate Mr Washington Zhakata said the department is coming up with a framework that can be implemented to come up with the final framework which can be used to raise the funds.

“From the point of view of our nationally determined contribu-tions which we submitted to the United Nations for climate change mitigation towards meeting obli-gations and also adaptation in the country we need about $100 mil-lion by 2030.

“We are working with the World Bank to come up with a frame-work which is conducive which if we present it to the donors and any other institutions we know that we have got all the mecha-

nisms in place and a conducive environment to receive funds,” Mr Zhakata said.

Minister for Environment, Water and Climate Change Oppah Muchinguri-Kashiri said the Gov-ernment views climate change as a serious issue.

“We are signatories to both the cli-mate change convention (UNFCCC) and the Kyoto Protocol, and sub-mitted our Intended Nationally Determined Contributions (INDCs) in time as well.

“It is the Government’s desire to have a National Climate Policy, informed by research and global climate change processes as well, which necessitates all sectors to mainstream climate change in all facets of their strategic planning, budgeting, operations and devel-opment thrust,” she said.

She said that this paves way for the mainstreaming of climate change from policy level to grassroots level in the nation at large. The minister added that there is need

for more resources to be mobi-lised and channelled to the devel-oping world that bear the brunt of the effects of climate change. This is also being demonstrated by the impending food insecu-rity/drought/El Nino situation that befell the country this year.

The National Climate Policy also seeks to guide all sectors on aspects of climate change adapta-tion and mitigation in Zimbabwe in order to achieve sustainable devel-opment as guided by ZimAsset.●

3 NEws

Zim requires $100 million for climate change fight

BH244

BH24 Reporter

HARARE - Wines and spir-its maker African Distillers (Afdis) has reported a decline in revenue for the half-year to December 31, 2015 to $12,7 million from $13,7 million prior year comparative.

Management attributed the decline to shifting consumer spending patterns and price reductions during the period under review.

"Consumer spending patterns continue shifting towards the lower priced products. The

impact of the growth in ciders was due to lower the value per litre when compared to the previous period.

"The decline was compounded by price reductions effected during this period aimed at stimulating demand and main-taining competitiveness," said chairman Mr Pearson Gowero in a statement accompanying the results.

Gross profit margins however improved to 51,1 percent from 50,3 percent prior year. But operating margins declined to 16,6 percent from 18,95 per-cent after operating expenses went up to $3,6 million from $3,4 million.

Afdis' profit for the period

amounted to $1,59 million against $1,94 million prior year. Earnings per share (EPS) for the period amounted to 1,38 cents down from 1,74 cents.

The board has declared an interim dividend of 0,15 cents

South Africa’s Distell and Delta jointly own Afdis Hold-ings, which controls 60,50 percent of the locally listed distiller. Other shareholders include Old Mutual Life Assur-ance, Stanbic Nominees and the Mining Pension Fund.

●

5 NEws

Afdis' H1 revenues slide

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By Funny Hudzerema

HARARE –The National Bakers Association of Zimbabwe (NBAZ) says a total of 100 small baker-ies have been closed since 2010 due to different challenges that include high cost of doing busi-ness and other business related costs.

NBAZ president Mr Givemore Mesoemvura said there is need to support the wheat production and bakery industry to create a value chain which benefits both sides.

“We need to genuine support and transparency from all stakehold-ers starting from the farmers to the suppliers of flour, farmers and others.

He was speaking during the wheat to bread value chain con-ference running under the theme “Driving Zimbabwe’s wheat value chain to self-sustenance” aiming to boost the production of wheat and revive the bakery industry.

“We need to indentify key stake-

holders within this industry and link up with each other and begin the process of value addition and beneficiation across the whole value chain.

“NBAZ is in a process of setting up of a wheat bread value chain

board which will govern, regu-late and make recommendations to the minister for policy direc-tion,” he said.

He added that the wheat produc-tion and bakery industry needs support to recapture those mar-

kets which are being served by foreign suppliers.

In his remarks during the same event Deputy Minister of Agri-culture, Mechanisation and Irri-gation Development (Crop Pro-duction) Davis Marapira said

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100 small bakeries shutdown since 2010: NBAZ

8 NEws

Government is revitalising the agriculture and agro-processing to create a value chain to boost crop production and bakery industry.

“I a m pleased to note that the conference has come at an opportune time when the Gov-ernment has identified 10 pri-ority areas for quick economic growth.

“The first two priority areas deal with revitalizing agriculture and agro- processing in the value chain and advancing benefici-ation or value addition to agri-culture in line with the national economic blueprint.

“The Ministry of Agriculture Mechansation And Irrigation Development therefore recog-nises the importance of all value chain actors in agriculture and is keen to support the participation of the private actors in agricul-ture related industries,” he said

He added that industries must not only focus on profits but total benefits realised from aggregate economic growth for example

employment creation and contri-bution to GDP.

Meanwhile Deputy Minister Marapira said that at least 61 261 metric tonnes of wheat was produced during last year’s win-ter wheat season, which was a slight decline due to the area put under wheat since 2008.

“Wheat production for the 2015 winter season stood at 61 261 metric tonnes. The general trends indicate that there has been a steady decline in the area put under wheat since 2008,” he said.

“The decline in wheat production is largely attributed to intermit-tent power outages, high cost

of production and inadequate financial resources.

“An average area of 16 342 hec-tares has been planted to wheat over the past seven years. Wheat yield per hectare has increased over the years to a record of 4,2 hectares against area of 14 789 hectares put under wheat in 2015,” he said.

Deputy Minister Marapira added that wheat amounting to 40 820 metric tonnes was delivered to GMB since the beginning of the marketing year on1 April 2015 while the country is importing an average of 185 000 metric tonnes of wheat since 2009 against national annual requirement of 400 000 metric tonnes.●

HARARE - The mainstream industrial index was down by a marginal 0.03 to close at 101.03 points as three counters lost ground.

Spirits-maker Afdias dropped by $0,0222 to set-tle at $0,5000 after report-ing a decline in revenue for the half-year to December 31, 2015 to $12,7 million from $13,7 million prior

year comparative.

Simbisa put off $0,0010 to trade at $0,1490 while giant retailer OK Zimbabwe shifted down $0,0007 to close at $0,0375.

Losses were countered by gains in heavyweight Delta which was $0,0025 higher at $0,5250, while giant insurer Old Mutual

gained $0,0010 to $1,8000 and giant telecoms Econet inched up by $0,0002 to close at $0,2202.

The mining index was steady at 19.53 points as Bindura, Falgold, Hwange and RioZim maintained previous price levels at $0,0100, $0,0050, $0,0300 and $0,1040 respectively - BH24 Reporter ●

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MovERs CHANGE TodAy PRICE UsC sHAKERs CHANGE TodAy PRICE UsC

Delta 0.47 52.50 AFDIS -4.25 50.00

ECONET 0.09 22.02 OK ZIM -1.83 3.75

OLD MUTUAL 0.05 180.00 SIMBISA -0.66 14.90

INdEx PREvIoUs TodAy MovE CHANGE

INDUSTRIAL 101.06 101.03 -0.03 points -0.03%

MINING 19.53 19.53 +0.00 POINTS +0.00%

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11 dIARy oF EvENTs

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

PowER GENERATIoN sTATs

Gen Station

10 February 2016

Energy

(Megawatts)

Hwange 548 MW

Kariba 285 MW

Harare 19 MW

Munyati 29 MW

Bulawayo 24 MW

Imports 0 - 300 MW

Total 1395 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

THE crisis facing African mining companies, which have fallen behind their global peers due to declining productivity and return on invested capital, can be turned around, says a McKinsey report released on Monday.

While African companies supply 83 percent of the world’s plat-inum, 73 percent of the world’s cobalt and more than half of the world’s manganese, chromium and diamonds, they have under-performed in terms of value cre-ation, according to the report titled Creating Global Mining Winners in Africa.

The good news is that African mining companies "have access to a range of levers to triple or quadruple their chances of becoming world-class perform-ers".

By taking specific actions in pro-ductivity, strategic merger and acquisitions, and allocation of capital, "African mining com-panies can boost their odds of moving up the power curve by a multiple of three or four", the report said.

Companies should complement these moves by facilitating access to infrastructure, collabo-

rating on regulatory frameworks, investing in local labour and community development and cul-tivating a local supplier base, the report proposed.

Doing so would improve compa-nies’ odds of moving from the mid quintile to the top quintile on the power curve by up to 31 percent, said Lorenz Jüngling, the leader of McKinsey’s global energy and materials practice in Africa.

The report was released to coin-cide with the start of the Mining Indaba in Cape Town on Mon-day, which brings together more than 7 000 mining professionals, investors, executives and gov-ernment officials in African min-ing from more than 100 coun-tries.

The meeting this year takes place amid a bleak outlook for commodities, with China’s slow-

ing demand for raw materials, a reduction in oil prices and global financial uncertainty.

Michael Kloss, McKinsey director and co-author of the report, said even though there was a global downturn in commodity prices, investors should still spend money in this critical sector.

"A downturn is a good time to buy, and at least half of all Afri-can companies have the head-room to fund this growth based on their debt to equity ratio to do it.

"Our analysis shows there are also plenty of targets: 77 percent of mining companies account for just 30% of the industry’s market capitalisation in Africa," said Mr Kloss.

Jonathan Moore, MD of Mining Indaba, said on Monday that the current market forced the African mining industry to take a hard look at how it did business and the aspects that were most criti-cal to its future success.

"Looking ahead, governments and companies are focused on developing strategies to invest in African mining beyond the cur-rent mining cycle," he said. "In

a capital restrained market, it is notable that we have one of the most influential representations from the investment community that we have seen to date.

"It is imperative to explore the possibilities of big, bold strategic moves that offer the best odds of moving companies from good to great," the report explained.

"The industry will have to go beyond the traditional means of collaboration. As such, mining companies should do everything to create a better business envi-ronment — they should support regulators to create the right conditions, collaborate with labour to create a mutually ben-eficial environment for capability building and labour, work with governments to create a more favourable business climate and with communities to build an environment that creates shared value and productivity enhance-ments.

"The time for action is now, and by taking action now, we believe that the odds for the future of African mining companies will be on track as one of the most attractive regions for mining globally."- Fin24●

REGIoNAl NEws 12

African miners can turn crisis around, says McKinsey

sydNEy — Fresh cracks appeared in global markets on Thursday as investors sought the safety of Japanese yen, gold and top-rated bonds while dumping US dollars on bets the US Federal Reserve could be done raising interest rates.

Even the absence of Tokyo for a holiday could not stop the dollar from hitting a 15-month low on the yen, and gold finally broke major chart resistance to reach its highest since May.

Insatiable demand for US treasuries drove longer-term yields to one-year lows and flattened the yield curve in a way that has presaged eco-nomic recession in the past.

"In some ways it is reminis-cent of 2008 with tightening credit markets, bank shares under pressure and worries central banks are powerless," AMP Capital’s head of invest-ment strategy, Shane Oliver, said, although he suspected markets were overly pessimis-tic this time.

The flight from risk told on most Asian shares, with Hong

Kong — a favourite channel for global investors to play China — diving 3,9 percent as investors there returned from the long Lunar New year holi-days. Mainland China markets are closed all week.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1,4 percent, and South Korea resumed with a 2,9 percent drop.

E-mini futures for the S&P 500 fell 0,5 percent. Wall Street had ended Wednesday mixed after Fed chairwoman Janet Yellen sounded optimistic on the US economy, but acknowl-edged risks from market tur-moil and a slowdown in China. Analysts took that to mean a hike in March was unlikely, but further tightening remained possible later in the year.

"Yellen made it clear that while the Fed still expects to continue on its gradual tightening path, policy was not on a preset course and would respond appropriately to developments," ANZ senior economist Justin Fabo said.

"The real test may come later, if markets continue to deterio-

rate and look to central banks to save them. Are policy mak-ers’ guns loaded with blanks?"

yields flattened

It seemed some were already preparing for the worst.

Longer-term US debt rallied hard as investors wagered that either the Fed would be unable to tighten at even a gradual pace, or that if it did hike it would only hasten the arrival of recession and defla-tion.

In a marked turnaround, yields on 10-year treasuries fell to 1,673 percent, from a top of 1,773, almost exactly match-ing the lowest close from Feb-ruary last year. Futures imply further price gains lie ahead.

As a result, the spread over two-year paper shrank to just 98 basis points, the small-est gap since late 2007 just before the global financial cri-sis hit.

Likewise, Fed fund futures are pricing in the shallowest of shallow tightening paths. The market implies a rate of 45 basis points for the end of

this year, 60 basis points at the end of 2017 and 90 by the close of 2018.

The inexorable decline in US yields continued to drag on the dollar, which reached lows last seen in October against a basket of currencies.

The yen was again lifted by safe-haven flows, as befits Japan’s position as the world’s largest creditor nation. The dollar dove through ¥113 to reach depths not delved since November 2014 at ¥112,515.

The euro also weakened against its Japanese peer, sliding to a near three-week low of ¥127,26. Against the greenback, the euro held firm at $1,1292 and within reach of a three-month high of $1,13385 set earlier in the week.

The aversion to risk helped lift gold as far as $1 213 per ounce, clearing stiff resist-ance around $1 200. Oil prices resumed their decline as US crude slid 47c to $26,98 a barrel, while Brent futures lost 18c to $30,66.-Reuters

●

INTERNATIoNAl NEws 13

Yen, bonds and gold benefit as investors dump dollars

By Katia dolmadjian

THE world’s tourism map is being redrawn at lightning speed as hol-idaymakers switch preferences, prompted by terror attacks, epi-demics and migrant crises.

Jihadist attacks on tourists in Tunisia last year and the October 31 crash of a Russian plane that took off from its Egyptian Red Sea resort of Sharm el-Sheikh have devastated the tourism sec-tors in both countries.

Muslim countries everywhere are the main losers of the shift in tastes, sector professionals say, as tourists move to destinations they consider safe — so long as they are also sunny.

Overall, world tourism has never been in better shape. Nearly 1,2-billion people travelled abroad last year, an increase of 4,4 percent over the previous year, but the casual observer could be fooled by the sight of deserted North African beaches — once tourist hotspots.

Tunisia, which built its tourism industry on guaranteed sunshine

and rock-bottom prices, is the most stunning example of the devastating effect of security fears after murderous attacks targeted foreigners.

Visitor numbers to Tunisia fell by 2-million last year, leaving the economy in tatters.

Turkey is another victim of attack fears. Germany’s TUI, the world’s biggest tourism group, said on Tuesday that it had seen book-ings to Turkey drop by 40 percent in the wake of an Islamic State suicide attack in Istanbul.

Turkish media, meanwhile, reported that visitor numbers to the top Turkish resort of Antalya dropped 17 percent last month, the lowest level for the month of January in a decade.

Some destinations are collateral damage from attack fears, as tourists appear to make little dis-tinction between countries within the Middle East or North Africa, as Jordan has found to its cost.

"There was no attack, but we were affected tremendously by a drop of visitors coming from

Europe," Jordan Tourism Minister Nayef al-Fayez said recently.

"All Muslim countries are suffer-ing to a greater or lesser degree, even those which have been made totally secure, like Oman," said Jean-Francois Rial, chairman of French travel operator Voya-geurs du Monde.

"The only exception is Iran, but they’ve started from scratch," he said, noting that many European agencies are offering travel to Iran since western powers have started dismantling sanctions.

"There is no doubt that the whole Middle East region is today asso-ciated with insecurity in the mind of the western tourist," said Wouter Geerts, analyst at the Euromonitor research company.

"We expect countries such as Greece, Portugal and Spain to largely benefit from the situation, offering similar weather, compet-itive prices and security."

Cuba, which already received a boost from the thawing of rela-tions with the US in late 2014, is now also battling with bottle-

necks, with daily arrivals of huge cruise ships in the Havana bay.

Tourism numbers in Cuba rose 17 percent last year, "but the coun-try is not ready, they don’t have the quality to justify prices that have gone up by half in a year. Everybody wants a piece of the cake," Stephane Ferrux, director of travel agency, Cuba Autre-ment, said.

Haiti’s beaches are also becoming a magnet for tourists, six years after the country was devastated by an earthquake.

Battalions of tourists have been going to Colombia, Peru, Mexico and Argentina, but Latin Ameri-can destinations could soon be affected by the Zika crisis, experts say, pointing to the effects on sub-Saharan Africa of Ebola, of the Chikungunya virus in the Car-ribbean and MERS Coronavirus, or Camel flu, in South Korea.

The migrant crisis has also taken a heavy toll on Greek islands, once a very safe bet for opera-tors, but where masses of refu-gees have landed, scaring tour-ists. - AFP●

14 analysis14 ANAlysIs

Fearful tourists seek safer global destinations