A digital copy of the BH24 (08 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. BH24 Reporter
HARARE – The Confederation of
Zimbabwe Industries (CZI) will
tomorrow hold a Symposium on
internal devaluation of the dol-
lar, as part of national efforts to
enhance competitiveness of local
industry to drive economic recov-
ery.
The conference will take place
at the Meikles Hotel, in Harare,
and follows call made by the cen-
tral bank on the need to explore
means to internally devalue the
dollar in the absence of monetary
tools for a country using foreign
currencies adopted in February
2009.
Zimbabwe dumped its own cur-
rency to counter the ravaging
impact of hyperinflation, which
peaked at about 231 million at
the height of its economic crisis
in 2008.
There have been concerns from
different circles over the downside
of the multi-currency, dominated
by US dollar; especially its effect
on industry in light of the depreci-
ation of the currencies of Zimba-
bwe’s major trading partners.
Economic analysts have advo-
cated that Zimbabwe joins the
Rand Union, while others called
for return of local currency, but
there has never been unanimity
on which of the suggested solu-
tions works best for the country.
However, CZI believes in the
continued use of the multi-cur-
rency, despite challenges posed
by depreciation of South African
Rand and Zambian Kwacha.
Other experts, including the
Reserve Bank of Zimbabwe have
recently called for internal devalu-
ation of the dominant and national
reporting currency, with lessons
to be borrowed from the experi-
ences of countries such as Latvia
and Lithuania.
Discussions will focus on cost
drivers in Zimbabwe: analysis
and recommendations and debate
on whether internal devaluation
is a strategy Zimbabwe should
actively pursue.●
News Update as @ 1530 hours, Tuesday 08 December 2015
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
CZI internal devaluation symposium set for tomorrow

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3. By Twanda Musarurwa
HARARE – Government has
finalised the legislative frame-
work that will cater to the set-
ting up of special economic
zones (SEZs) across the coun-
try, Industry and Commerce
Minister Mike Bimha has said.
"Government has now finalised
on the legislative framework
to guide the establishment
of special economic zones....
when you have a legislative
framework it helps you in giv-
ing clarity to what you want
to achieve, it also gives the
investors confidence of what
they are going in for, because
it clearly lays out what is
entailed and how the law will
protect those who are going to
play in the special economic
zones," Minister Bimha told a
Zimbabwe National Chamber
of Commerce (ZNCC) meeting
yesterday.
SEZs are designated geo-
graphical areas that operate
under different economic rules
from the rest of the economy.
And Government is consid-
ering replicating the model
used for the Sunway City SEZ
in Harare, which consists of
a residential park, industrial
park and Export Processing
Zone park.
"We have identified Sunway
City, near Ruwa, as an inte-
grated economic zone in terms
of the various activities apart
from manufacturing.
"So we would also like to rep-
licate what you find in Sun-
way City in other areas of the
country...and there are inves-
tors that are interested in
developing the infrastructure
of Sunway City.
"Sunway City's investment is
in two ways. First is invest-
ment in providing the infra-
structure, then you also get
players who come to invest in
those areas where the infra-
structure has been provided.
So we would like to see a
replication of Sunway City in
other centres where this is
necessary.
He added that Government is
considering making the cot-
ton-to clothing value chain
and the leather-to-leather
value chain will be constitute
part of the SEZs strategy.
The Government has identi-
fied the establishment of SEZs
as a strategy to boost eco-
nomic growth and develop-
ment under its five-year eco-
nomic policy, ZimAsset.●
3 news
Minister Bimha
Govt finalises SEZs legislative framework

4. BH244

5. HARARE – Financial tech-
nology firm, Getbucks Zim-
babwe’s initial public offer
(IPO) opened on Monday with
the firm targeting to raise
$3,2 million ahead of its list-
ing on the Zimbabwe Stock
Exchange (ZSE) on January
16, 2016.
Getbucks Zimbabwe is cur-
rently owned 55 percent by
Mauritius registered Getbucks
Limited and 34.06 percent by
local firm Brainworks Capi-
tal Management with pension
funds holding the remaining
shareholding.
The shareholding will however
be diluted after the listing in
line with regulatory require-
ments although the two firms
will remain major sharehold-
ers. To raise the $3,2 million,
Getbucks Zimbabwe said it is
putting on offer 93 567 251
shares for the public to sub-
scribe.
“On conclusion of the IPO, it
is envisaged that the entire
issued share capital of Get-
bucks Zimbabwe of 1 093 567
251 ordinary shares will be
listed on the ZSE,” Getbucks
said.
The public offer, which is
being underwritten by DBF
Capital Partners Limited,
closes on January 8. Get-
bucks Zimbabwe said in the
event of an over subscription,
shares would be allocated on
a pro-rata basis.
The firm said listing on the
local bourse would allow it to
“attract focused and perma-
nent capital,” access more
appropriate risk-adjusted cost
of capital than the company
has currently managed to get
as a private company, unlock
shareholder value as well as
strengthen and enhance the
visibility of its brand.
“The strategic objective of
Getbucks Zimbabwe is to
retain and grow its market
share in Zimbabwe through
a sustainable business model
that offers competitive inter-
est rates while managing its
cost of funds,” the company
said.
Getbucks Zimbabwe com-
menced operations in the
country as a microfinance
institution in 2012, has 56
employees and 13 branches
nationwide. It says its loan
book has over the years grown
to $11 million.
The Reserve Bank of Zimba-
bwe recently upgraded the
company's license to offer
microfinance banking ser-
vices, allowing it to also take
deposits.- New Ziana.●
5 news
Getbucks targets $3,2 million as IPO opens

6. BH246

7. By Twanda Musarurwa
HARARE -The Reserve Bank of
Zimbabwe (RBZ) says it is opti-
mistic towards an improvement
in the country's state of deflation
on the basis of anticipated price
movements in the South African
economy.
ZimStats figures show that the
country's inflation had reached
-3,3 percent this October, and
has been projected to remain in
the negative in 2016.
However, RBZ director for eco-
nomic research and policy
enhancement Mr Simon Nyarota
said the recent currency (rand)
depreciation will inevitably have
an upward impact on that coun-
try's inflation rate in the coming
months if it persists.
And to the extent that South
Africa is Zimbabwe's largest
trading partner, inflation move-
ments in the former should have
implications on the former's price
movements as well.
"I don't think that the deprecia-
tion of the rand is going to con-
tinue affecting us negatively,
because at some point the depre-
ciation of the rand is going to
cause prices in South Africa to
rise. Once that happens then our
imported inflation from South
Africa is going to go up.
7 news
Zim deflation to ease on imported inflation: RBZ

8. 8 news
"In other words we are going
to be importing more expensive
South Africa goods. So as prices
in South Africa will go up and then
we will have that ripple effect in
this country, and at that point we
may have positive inflation," said
Mr Nyarota.
The RBZ official said the only
other option for Zimbabwe to
deal with the scourge of deflation
was to enhance the productivity
of the local manufacturing sector.
"In other countries such as Japan
they used quantitative easing to
deal with deflation, but we can-
not do that in this country and
we have to look at other situa-
tions....I think one of the lim-
ited strategies we can use in this
country are structural reforms
such as the IMF has suggested,
so as to improve productivity," he
said, adding that local manufac-
turers should take advantage of
the weak rand to import capital
goods from our southern-most
neighbour.
"When you have got falling prices
mainly due to volatile global
prices and other international
developments this could be wel-
come in that you will be import-
ing at lower prices. For example
right now we would urge produc-
tive sectors to buy equipment at
cheaper prices due to the weak
rand, and also we know from the
2016 National Budget that VAT
and duties have been removed
for the importation of capital
goods, so that is of benefit to this
country."●

9. BH24
TAA:DI251386-Y22Laz DI324241-D15
9

10. HARARE - Yesterday's gain
proved to be just fleeting as the
mainstream industrial index
slid back in the red, losing 0.21
to close at 114.42.
Activity on the local bourse was
largely subdued.
Two counters traded in nega-
tive territory. Seed producer
SeedCo was $0,0125 weaker
at $0,8500 while sugar proces-
sor starafricacorporation lost a
significant $0,0065 to close at
$0,0015.
Heavyweights BAT, Delta and
Econet remained unchanged
at $12,2000, $0,7200 and
$0,1800 in that order.
Gains were seen in two coun-
ters. Giant insurer Old Mutual
was $0,0050 stronger at
$2,1050 and ART rose $0,0010
to $0,0100.
The mining index was
unchanged at 21.51 as Bindura,
Falgold, Hwange and RioZim
maintained previous price
levels at $0,0125, $0,0050,
$0,0300 and 0,1040, respec-
tively. - BH24 Reporter ●
ZSE10
Equities fall back into the red

11. BH2411

12. Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
ART 11.11 1.00 Starafrica -0.65 0.15
Old Mutual 0.23 210.50 SeedCo -1.25 85.00
Index Previous Today Move Change
Industrial 114.63 114.42 -0.21 points -0.18%
Mining 21.51 21.51 +0.00 points +0.00%
12 zse tables
ZSE
Indices
Stock Exchange

13. BH2413

14. 14 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
08 December 15
Energy
(Megawatts)
Hwange 554 MW
Kariba 468 MW
Harare 30 MW
Munyati 23 MW
Bulawayo 22 MW
Imports 0 MW
Total 1068 MW
•09 December 2015 - Cottco AGM; Venue: Cotton Pavilion, Exhibition Park; Time; 12:00hrs
•09 December 2015 - Border Timbers AGM; Venue: Boardroom, Northern Tobacco (Private)
Limited Complex, 4-12 Paisley Road, Southerton; Time: 9:00hrs
•11 December 2015 - Buy Zimbabwe Awards; Venue: Rainbow Towers, Harare
THE BH24 DIARY

15. ACCRA - Ghana's utility regulator
increased tariffs for electricity and
water by up to 89 percent on Monday
in a renewed bid to attract competi-
tive private investment to the sector
as the West African nation grapples
with a crippling power crisis.
Electricity prices were put up by 59,2
percent and water by between 69
percent and 89 percent depending
on usage, the Public Utilities Regu-
latory Commission (PURC) said in
its first major change in tariffs since
2013.
The main opposition party con-
demned the hikes, which are to take
effect on December 14, and said it
would block implementation.
"It is the highest level of insensitivity
ever witnessed by Ghanaians under
the Fourth Republic, and certainly
just before Christmas and in a year
that Ghanaians have known nothing
but untold sufferings and hardships.
It should not happen," the party said
in a statement.
The PURC said the increases, which
had been delayed for several months
to allow it to sensitise the public
to the need for such a move, were
driven largely by a shift from a
cheaper hydro-dominated genera-
tion mix to thermal power.
They were also to make up for
increasing chemical and power pur-
chase costs incurred by the water
company, it said.
"The significant change and the
increasing dependency on thermal
generation has greatly impacted the
cost of electricity generation by the
utilities service providers," it said.
The West African country is grappling
with a chronic power crisis that has
crippled industrial growth and forced
the government to contract emer-
gency powerships to make up for a
supply shortfall of up to 500 mega-
watts.
Nana Yaa Dzantua, head of exter-
nal affairs at the PURC, told Reuters
that despite the increases, about 32
percent domestic lifeline consumers
would still enjoy subsidies on power.
The rises were also in fulfilment of
Ghana's three-year aid deal with the
International Monetary Fund which
the government signed in April to
restore a fiscal balance and fix the
power crisis. The pact has reduced
the government's popularity.
Monday's tariff hikes are expected to
further push up consumer inflation,
which stood at a four-year high of
17,4 percent in October.
"The utilities constitute basic
expenditure for households and con-
sidering the fact that these increases
are coming in December when there
is already pressure on spending, we
expect to see some additional infla-
tion pressure," said Sampson Akligo
of the Accra-based Investcom group.
-Reuters●
regioNAL News15
Ghana approves major hikes in electricity, water tariffs
For over 120 years we have delivered
home grown financial solutions that
cater for all your needs.
Innovation is good
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A member of the Deposit Protection Corporation

16. Oil traded near the lowest level in
more than six years amid spec-
ulation a global glut will persist
with OPEC having effectively
abandoned its strategy of limiting
output to control prices.
Futures were little changed in
London after falling 5,3 percent
on Monday. The Organisation of
Petroleum Exporting Countries,
which failed to agree to produc-
tion curbs at a Dec. 4 meeting,
is setting aside its quota of 30
million barrels a day until mem-
bers gather again in June. Energy
shares led a 1,1 percent drop
in the MSCI Asia Pacific Index.
US crude stockpiles probably
expanded for an 11th week, a
Bloomberg survey showed before
Energy Information Administra-
tion data Wednesday.
Oil’s slump has deepened as
OPEC extended a fight against
U.S. shale producers amid a sur-
plus estimated by the Interna-
tional Energy Agency at almost
3 billion barrels. The lack of
any limit on the group may lift
the lid on millions more of addi-
tional crude supply in 2016 from
countries including Iran, which is
seeking to reclaim market share
when sanctions are lifted.
“It’s hard to find any bullish fac-
tors that will drive oil prices up,”
Will Yun, a commodities ana-
lyst at Hyundai Futures Corp. in
Seoul, said by phone. “The global
glut is expected to be prolonged
as Saudi Arabia won’t cut its pro-
duction to accommodate Iran’s
return.”
Brent for January settlement was
at $40,97 a barrel on the Lon-
don-based ICE Futures Europe
exchange, up 24 cents, at 4:51
p.m. Seoul time. The contract
slid $2,27 to $40,73 on Monday,
the lowest close since February
2009. The European benchmark
crude was at a $3.24 premium to
West Texas Intermediate, the US
marker grade.
Crude Supplies
WTI for January delivery was
7 cents higher at $37,72 a bar-
rel on the New York Mercantile
Exchange. It declined $2,32, or
5,8 percent, to $37,65 on Mon-
day, also the lowest close since
February 2009. The volume of all
futures traded was about 23 per-
cent above the 100-day average.
Prices are down 29 percent this
year.
The MSCI Asia Pacific Energy
Index decreased for a fifth day,
losing as much as 3.9 percent.
Australian producer Santos Ltd.
sank 13 percent in Sydney while
PetroChina Co. fell 2,6 percent in
Hong Kong.
In China, the customs adminis-
tration reported a drop in exports
for a fifth month in November
while a decline in imports mod-
erated as policy makers sought
to spur domestic spending. The
country imported 27,3 million
metric tons of crude, a 3,8 per-
cent rebound from a five-month
low in October.
Crude inventories in the US, the
world’s biggest oil consumer,
increased by 900 000 barrels in
the week ended Dec. 4, accord-
ing to the median estimate in the
Bloomberg survey of eight ana-
lysts. Supplies climbed to 489,4
million barrels through Nov. 27,
more than 120 million above the
five-year seasonal average.
- Bloomberg●
internatioNAL News16
Brent trades near 6-year low as OPEC seen lifting lid on supply

17. By Kristen Berman
Imagine you’re a professor. You have
assignments that you release at the
start of the semester but they don’t
need to be turned in until the end. How
should you design your curriculum?
Putting yourself in your students’
shoes, you would likely let each stu-
dent choose how and when they turn
in each assignment.
Since students intimately know their
unique schedules, they should best be
able to decide when to complete the
work. Makes sense, but is it correct?
In 2002, psychologists Dan Ariely and
Klaus Wertenbroch tested this ques-
tion.
They split students in the same class
into three groups. The first group had
freedom to choose their own schedule
for turning in assignments. The second
group was given a specific schedule:
they had to finish each paper by a cer-
tain date, spaced out over the course
of the term. The third group was given
the same assignments, but told they
could set their own deadlines for com-
pleting them.
What happened?
To answer this, let’s first put ourselves
in the viewpoint of the professor. It
would be difficult to dictate when stu-
dents turn in papers, when in reality
there is no actual deadline. To create
a deadline out of thin air would feel
unfair. But if slightly manipulating stu-
dents will actually help them in the long
run, does it make it better?
This dilemma has come up time and
again with the numerous companies
I’ve worked (big and small including
Google,Netflix,LyfttoExpedia,Fidelity,
VolunteerMatch, etc) During almost
every engagement, we’re asked:
Behavioral Economic principles some-
times feel manipulative. How can they
play a role in user-centered product
development and marketing?
To understand this, let’s see what hap-
pened with our professor.
The first group with no deadlines gen-
erally got very little done and turned in
papers late, earning worse grades. The
thirdgroupwhosettheirowndeadlines
did considerably better with both time-
lines and grades.
But the winner? The second group—
the students who were handed a
schedule from someone else. Instead
of endless choices for when to start
writing the papers, external deadlines
enabled the ability to plan. Instead of
burdeningstudentstorememberwhen
to start each assignment, the deadlines
helped curb procrastination.
The well-meaning professor who
doesn’t provide deadlines still ends up
influencing his “users” – just not inten-
tionally.
This lesson is the essence of what
behavioral economics research has
found time and again. It is the person
who designs the environment in which
we live in who has the most influence
on our decisions as opposed to the per-
son who is actually making the deci-
sion.
The conflict between behavioral eco-
nomics and product ethos arises
because this notion of influence
through design many times conflicts
with a typical product team’s mental
model of the user.
The product team’s mental model goes
something like: “It is not our role to
make decisions for the user. It’s our
role to design a product that empow-
ers the user to do what’s right for
them.” This mental model is the heart
of all debates around limiting choices,
defaults,andotherbehavioraleconom-
ics tactics.
This mental model seems strong
because it feels good. It feels like we’re
on the righteous side of the argument
to fight for the user and against manip-
ulative design.
Buttheproblemwiththismentalmodel
is that it’s impossible. One of the major
lessons of the past half century of psy-
chological research is that it’s impos-
sible to design a system in which the
user has full agency on their decisions.
By being the one who designs the
system (however we choose to do
it) we are inherently designing deci-
sions. Sadly, a typical product team’s
high ground stance that neglects this
responsibility may actually be making
the user worse off – a little like our ide-
alistic no-deadlines professor did to his
students.
But we can agree, the professor exam-
ple is easy. We know that it’s good for
studentstogetbettergrades. Aharder
dilemma arises when we don’t know
what’s best for a given user. Or, when
what’s ‘best’ for a user may actually
widely vary across different users.
17 analysis17 analysis
How startups should use behavioral economics

18. 18 analysis18 analysis
The question becomes: Can we use
design to influence a user when we’re
not 100% sure what’s best for them?
Imagine a world where we don’t know
what is the exact method that would
help you prioritize your emails. In this
case, it’s tough. Do we as product
designers help you prioritize and risk
being a little wrong or should we put
the full responsibility on you?
We’d give you all the emails at
once, with no priority distinctions, in
hopes that you would test different
approaches and over time and many
attempts, land on the optimal email
organizational system.
The Google inbox team has thankfully
instituted features, and seems to be
continuing to do so, that help users
prioritize their email.
Instead of making us contemplate the
pros and cons of responding to each
email we receive, Google’s product
team has tried to design the system in
a way that could decrease email stress
and increase productivity and confi-
dence.
Even if Google doesn’t’ know the 100
percent correct method of prioritisation
for you personally, they are 100 per-
cent sure that sitting back and doing
nothing to help you is not the right
answer.
For a second, more extreme example,
think back to the start of mobile App
stores. How should developers decide
the price of their apps? Both Google
and Apple didn’t know.
The product team’s mental model
would say that every user (in this
case, developers), may want to charge
something different.
It would say that it is not Google or
Apple’s role to control the marketplace.
As such, neither App store instituted a
policy regarding free vs. paid. Instead,
they left it up to each developer to set
a price.
So, when one app developer in one
category decided to go free in order to
attract customers, all other developers
in that category had to compete at the
free level. One app regresses to free
and no one in the group gets upfront
revenue.
70 percent of apps are free on the Play
storeandthelargemajorityoftopapps
are free. While this may be compelling
to end users, it destroys the app devel-
oper’s ability to earn a living wage.
By not designing the system actively
up-front, Google and Apple still
designed the system. Developers now
can’t charge and still expect to attract
users. This is not a defined preference
for the developers – developers had no
choice in their pricing strategy.
These are two cases where guidance
on what to do in the face of uncertainty
is vital. By every measure the engi-
neer, marketer or product designer has
more knowledge than the user, even if
it’s not perfect knowledge.
They have more time to indulge in the
process of deeply considering what the
user can or should do. Users are busy
humans, without the depth of knowl-
edge of the specialised product team.
In these cases the product team’s
high ground moral stance should be to
spend time to narrow on what behav-
ior the user is likely trying to achieve
with their product and then aggres-
sively remove all barriers in the way of
achieving it.
When teams spin discussion cycles
arguing if they should include a default
or not for fear of influencing the user
toomuch,theyareforgettingthecoun-
terfactual. By not including the default,
they are still actively influencing users.
This decision forces the user spend
their time and effort figuring out the
best choice and thus makes it much
harder (maybe impossible) for them to
do the behavior they hired the product
to do.
As social scientists we believe that
there are fundamental reasons to
ensure that we actively create the
choice architecture in order to be help-
ful rather than harmful—and that it
makes people’s lives better and longer.
It’s on us to design the system that
does this.
As a product team you get to decide
if you’re the professor that sets dead-
lines, knowing it helps students learn
more and achieve higher grades, or if
you are the professor that chooses to
leave it up to the students to decide
how to optimize their schedules.
Inbothcaseswearedesigningthesys-
tem on behalf of the students – but in
one case it’s not intentional. -
techcrunch.com●