Major International Business Headlines Brief::: 12 March 2019

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Major International Business Headlines Brief::: 12 March 2019

 


 

 


 <http://www.nedbank.co.zw/> 

 


 

 


 

 

*  Zimbabwe to allow foreign platinum miners control of local operations

*  Egypt's urban inflation jumps to 14.4 pct in Feb from 12.7 pct in Jan

*  Rwanda aims to sell stake in cement firm Cimerwa this month

*  Gulf stocks hit by global market weakness, IPOs boost Egypt

*  Shares in S.Africa's Aspen plunge on debt, slow sale proceeds

*  Aspen to split South African pharma business after disposal of non-core
assets

*  Botswana sees lower mineral revenues in 2019

*  Tanzania orders cleanup at Acacia gold mine, threatens closure

*  Kenyan shilling firm against the dollar

*  Ex-CEO of Tanzania's Bank M charged with fraud, money laundering

*  China halts flights using same plane as in Africa crash

*  Businesses urged to 'do more' to win public contracts

*  Sir Rocco Forte: 'No point in delaying Brexit'

*  US jobs shock as growth slows

*  Brexit: Could the UK drop tariffs to zero?

 

 


 <http://www.willdale.co.zw/> 

 


 

                                      

Zimbabwe annual inflation to fall by as much as 15 pct by end of year -
cenbank governor

HARARE (Reuters) - Zimbabwe’s average annual inflation should fall to
between 10 and 15 percent after it reached its highest level in a decade in
January, central bank governor John Mangudya said on Monday.

 

Year-on-year inflation accelerated to 56.9 percent in January from 42.09
percent in December, propelled by increases in the price of basic goods and
beer. 

 


 <mailto:info at bulls.co.zw> 

 



Zimbabwe cenbank head hints at more weakening of new currency

HARARE (Reuters) - Zimbabwe’s central bank governor on Monday said the
exchange rate for the new transitional currency is unlikely to remain at 2.5
per U.S. dollar by the time tobacco auctions open next week, suggesting the
local unit will be devalued further.

 

The southern African nation faces a dearth of dollars that has caused
shortages of fuel, drugs and food and hobbled an economy yet to recover from
the disastrous rule of Robert Mugabe, who was removed in a coup in 2017.

 

The Reserve Bank scrapped its discredited 1:1 dollar peg for surrogate bond
notes and electronic dollars last month, merging them into a lower-value
transitional currency called the RTGS dollar, which has been stuck at a rate
of 2.5 to the greenback.

 

Many companies have, however, continued to hold onto their dollars waiting
for the RTGS rate to weaken further, while most individuals sell their
greenbacks on the black market, where US$1 bought 3.8 RTGS dollars on
Monday.

 

Central bank chief John Mangudya said the official exchange rate was
expected to change by the time auctions for tobacco, Zimbabwe’s
second-largest earner of foreign currency after mining, open on March 20.

 

“We do believe that before or on that date the rate will have reached its
equilibrium. We don’t believe it will still be 2.5 (to the U.S. dollar),”
Mangudya said.

 

Mangudya maintained that the market would determine the exchange rate, after
accusations of manipulation by the central bank. But he ruled out a sharp
devaluation, which he said would result in a further spike in annual
inflation.

 

The governor said average annual inflation was expected to fall to 10 to 15
percent by the end of this year. He also said that any huge salary increases
for public workers would add to inflationary pressure. [nJ8N20F00B]

 

Mangudya said an average $12 million had been traded every week at the
current forex interbank rate since Feb. 22, when banks started selling
dollars to large corporates.

 

Exporters, including miners and tobacco farmers, receive half their earnings
in the RTGS currency at the official exchange rate, while the other half,
which is deposited in their foreign currency accounts, must be sold within
30 days.

 

That requirement, which has been criticised by companies, is now being
reviewed to allow exporters to keep their dollars for longer, Mangudya told
a parliamentary committee.

 

Mangudya said last week that the central bank had borrowed $985 million from
pan-African banks against future gold export earnings. He said on Monday
that Zimbabwe was repaying $5 million every month.

 

 

 

Zambia external debt rose to over $10 billion at end 2018: finance minister

LUSAKA (Reuters) - Zambia’s external debt rose to $10.05 billion at the end
of last year from $8.74 billion at the end of 2017, Finance Minister
Margaret Mwanakatwe said on Monday.

 

Mwanakatwe said in a statement that the rise was due to increased
disbursements on previously contracted loans for infrastructure projects
aimed at supporting economic diversification.

 

Zambia’s foreign debt includes money that it raised through Eurobonds and
other loans from bilateral and multilateral partners.

 

Zambia is Africa’s second-largest copper producer and mining is the mainstay
of the nation’s economy, accounting to more than 70 percent of its foreign
exchange earnings.

 

Zambia’s copper production increased to 850,000 tonnes in 2018 from 797,000
tonnes the previous year due to continued investment in the sector and
favourable prices, Mwanakatwe said.

 

She said external debt servicing last year reached $759.9 million and
government guaranteed debt stood at $1.3 billion.

 

Zambia plans to swap its Chinese debt - which accounts for about a third of
its foreign debt - from dollars to yuan in a bid to ease pressure on foreign
reserves, Mwanakatwe said last week.

 

 

South African bank Absa considers Ethiopian entry over time

JOHANNESBURG (Reuters) - South Africa’s Absa is considering entering
Ethiopia, where lenders are hoping reformist Prime Minister Abiy Ahmed will
liberalise an antiquated and state-dominated banking sector.

 

Ethiopia has long prevented foreign ownership in economic sectors including
banking, but Abiy has embarked on rapid political, diplomatic and economic
reforms since coming to power in April.

 

An entrance into the Ethiopian market of 100 million people, while not
imminent, would be part of a strategy Absa laid out after its split from
Britain’s Barclays in 2017.

 

Jason Quinn, the bank’s chief financial officer, told Reuters that Absa was
investigating how and where to enter a number of other growth markets,
including Nigeria and Angola.

 

“We’re not in Ethiopia at all, so those would be the type of markets we’d
look at over time,” he said on Monday.

 

It would be hard to build a retail banking business from scratch so Absa was
more likely to think about acquiring, he added.

 

The bank had already highlighted Nigeria as key to future growth, where
Quinn said there was a “nice opportunity” for Absa in corporate and
investment banking. It had also already flagged Angola as attractive,
alongside Egypt.

 

GROWTH SEARCH

Several South Africa banks have looked to the rest of the continent for
growth, as a slow economy and under-pressure consumer weigh on potential at
home.

 

Absa, which wants to double its share of revenues on the continent to 12
percent, saw earnings from its operations elsewhere in Africa grow by 9
percent in 2018, the fastest of all its divisions, its annual results
showed.

 

Overall however headline earnings per share - the key profit gauge in South
Africa - dipped by 1 percent, largely as a result of 3.2 billion rand
($221.77 million) in costs related to the Barclays separation.

 

Its shares slipped 2.5 percent following the results, but had recovered to
169.81 rand per share by 1009 GMT, a fall of 1.47 percent.

 

The bank is hoping a new CEO, its strategy overhaul and restructuring can
reset its performance, which has lagged competitors and left investors
sceptical.

 

While its retail and corporate and investment banking (CIB) divisions grew
lending, both were held back by rising costs and a spike in impairments, by
as much as 76 percent in CIB.

 

The bank said this was mainly due to a large exposure to a single retailer.

 

($1 = 14.4296 rand)

 

 

Qatar Petroleum takes stake in new exploration block in Mozambique

BEIRUT (Reuters) - Qatar Petroleum said on Monday it had entered into an
agreement with Italy’s ENI to acquire a 25.5 percent participating interest
in block A5A in the Angoche basin, offshore from Mozambique.

 

The agreement between state-owned Qatar Petroleum and ENI, which operates
the block, is subject to regulatory approval by the Mozambique government,
the statement added.

 

 

Barclays Bank Kenya says 2018 full year pre-tax profit rises to 10.65 bln
shillings

NAIROBI (Reuters) - Barclays Bank Kenya said on Monday its pre-tax profit in
2018 rose to 10.65 billion shillings from 10.36 billion shillings a year
earlier, bolstered by higher non-funded income.

 

It said its profit after tax rose to 7.416 billion shillings ($74.50
million) from 6.926 billion shillings in 2017

 

Non-funded income rose 15 percent to 9.7 billion shillings and net interest
income increased 1 percent to 21.99 billion shillings, the bank said.

 

Barclays Kenya, part of South Africa’s Absa Group, said its total assets
rose to 325 billion shillings from 271.77 billion shillings in 2017, while
net loans and advances increased 5 percent to 177.35 billion shillings.

 

The bank had said in March last year it wanted to attract at least five
million new customers over five years through its digital platform that
includes mobile phone-based lending.

 

Jeremy Awori, its chief executive, said the bank had already added 3 million
new customers by the close of 2018 from 300,000 customers in March, with
lending standing at 10 billion shillings at the close of the year.

 

($1 = 99.5500 Kenyan shillings)

 

Shares in South Africa's Tongaat fall to lowest level since 1993

JOHANNESBURG (Reuters) - Shares in South Africa’s Tongaat Hulett fell more
than 14 percent early on Monday, after its announcement last week that it
had appointed PricewaterhouseCoopers (PwC) to review past accounting
practices.

 

The sugar producer, which flagged last month that it would fall to a
full-year loss, traded at its lowest level since 1993 down 14.8 percent to
18.75 rand by 0722 GMT.

 

 

Uganda coffee shipments down slightly in January from year earlier

KAMPALA (Reuters) - Uganda’s coffee exports dipped slightly in January
compared to the same month a year earlier, according to a report by the
state-run regulator Uganda Coffee Development Authority (UCDA).

 

Uganda exported 395,097 60-kg bags of coffee in January, slightly lower than
the 401,930 bags shipped in same month last year, according to a UCDA report
seen by Reuters on Monday.

 

UCDA did not give a reason for the slight decline.

 

Uganda is Africa’s leading exporter of the beans. Earnings from the crop are
one of the East African country’s biggest sources of foreign exchange.

 

 

 

Boeing 737: Singapore bars 737 Max planes from airspace

Singapore's Civil Aviation Authority (CAAS) has temporarily suspended all
Boeing 737 Max models from flying into and out of the country.

 

The decision comes after an Ethiopian Airlines Max 8 crashed on Sunday,
killing all 157 people on board.

 

It was the second fatal accident involving that model in less than five
months.

 

Singapore is a major travel hub, with flights connecting Asia to Europe and
the US.

 

Several airlines and regulators around the world have already grounded the
Max 8 model, following the crash.

 

Singapore is believed to be the first country to ban all variants of the Max
family of aircraft. The suspension goes into effect from 14:00 local time
(06:00 GMT).

 

SilkAir, which operates six Boeing 737 Max aircraft will be affected, as
will China Southern Airlines, Garuda Indonesia, Shandong Airlines and Thai
Lion Air, CAAS said in its statement.

 

The aviation authority said it was working with Singapore's Changi Airport
Group and the affected airlines to minimise any impact to travelling
passengers.

 

In the US, the country's Federal Aviation Administration told airlines on
Monday it believes Boeing's 737 Max 8 model to be airworthy, despite the two
fatal crashes.--BBC

 

 

 

US 'warns Germany a Huawei deal could hurt intelligence sharing'

The US has told Germany it would curb intelligence sharing with Berlin if it
allows Huawei to participate in its 5G mobile network.

 

The warning came in a recent letter from the US ambassador to Germany seen
by the Wall Street Journal.

 

The US has been lobbying its allies to boycott Huawei due to national
security risks.

 

The firm has pushed back against claims it poses a security threat including
suing the US government.

 

US ambassador Richard Grenell said the US would not be able to keep the same
level of co-operation with German security agencies if Germany allowed
Huawei or other Chinese firms to participate in its next-generation 5G
mobile network, the Wall Street Journal reported.

 

The US cannot crush us, says Huawei boss

Should we worry about Huawei?

Could Huawei threaten the Five Eyes?

In the letter to Germany's economics minister dated last Friday, Mr Grenell
said secure communications systems are essential for defence and
intelligence co-operation, and that firms like Huawei could compromise this.

 

The warning marks an escalation in the Trump administration's efforts to
convince allies to boycott the Chinese tech giant.

 

The US, Australia and New Zealand have all blocked local firms from using
Huawei to provide the technology for their 5G networks.

 

Huawei has launched a more aggressive strategy in recent months to counter
what it sees as an American "smear" campaign.

 

Last week, it filed a lawsuit against the US government over a ban that
restricts federal agencies from using its products, arguing it is
"unconstitutional."

 

Huawei has also taken out ads in the foreign press and invited foreign
journalists to visit its campuses.

 

It told Americans in a full-page ad in the Wall Street Journal not to
"believe everything you hear."--BBC

 

 

 

UK audit watchdog to be replaced by new governing body

The Financial Reporting Council (FRC) is to be scrapped and replaced by a
new regulator for accountancy firms, the UK government has announced.

 

The Audit, Reporting and Governance Authority will have enhanced powers and
be able to make direct changes to accounts, instead of applying to court.

 

The government said it wants new "strong" leadership to "change the culture"
of the accounting sector.

 

The role of auditors in Carillion's collapse has been criticised by MPs.

 

KPMG, one of the UK's four largest accountancy firms, had handled
Carillion's accounts since 1999 and signed off its figures in March 2017,
four months before the firm issued its first profit warning.

 

MPs now want to know how KPMG and other big four firms failed to spot
warning signs at several British collapsed businesses in the last few years.

 

This resulted in the Competition and Markets Authority proposing a major
shake-up of the industry, as well as the big four bosses' appearance in
front of MPs on the Business, Energy and Industrial Strategy (BEIS)
Committee in February.

 

The accountancy industry's watchdog has also come under fire for its
handling of recent corporate collapses.

 

In November, the FRC's chief executive Stephen Haddrill announced that he
would be stepping down at some point in 2019, pending the government's
review of the council's remit and role.

 

"This new body will build on our status as a great place to do business and
will form an important part of strengthened public trust in businesses and
the regulations that govern them," said Business Secretary Greg Clark.

 

The new regulator has been announced in response to a government
commissioned review led by Sir John Kingman.

 

For the first time, the new regulator will be able to:

 

Directly regulate the biggest audit firms

Impose greater sanctions in cases of corporate failure

Require rapid explanations from companies

Publish reports about a company's conduct and management

The FRC's chair Sir Win Bischoff said the watchdog welcomed the publication
of the government's consultation.

 

"In line with the consultation document we believe the speedy implementation
of the recommendations can help increase public confidence in audit in the
UK," he said.

 

"We will move forward to implement the agreed proposals as soon as
possible."--BBC

 

 

 

FCA to run no-deal Brexit 'financial war room'

The Financial Conduct Authority has plans in place for a financial war room
to take action in the event of a no-deal Brexit.

 

The war room will keep a close eye on the IT changes that will be required
over the weekend following 29 March.

 

It is understood that the regulator will keep in close contact with leading
City firms to watch for potential disruption in the financial markets.

 

The FCA will also liaise closely with Whitehall and Threadneedle Street.

 

An FCA spokesman said: "As part of our planning for all scenarios we have
put in place contingency measures in the event of a hard Brexit.

 

"We will have teams in place throughout the weekend of exit to monitor the
situation and respond as needed, working closely with the Treasury and the
Bank of England."

 

Passporting rights

The Financial Services Register of authorised firms will need to be updated
constantly as EU providers sign up to deal with UK clients.

 

Hundreds have already applied, knowing that their "passporting right" to
operate here as EU members will expire.

 

Previously, the FCA warned drivers heading across the Channel to make sure
they have Green Cards to prove that they are insured.

 

Holidaymakers are advised to check their travel insurance, to make sure they
are covered for problems with flights.

 

Insurers have been told to treat customers fairly if they make claims for
travel disruption and "not to reject claims unreasonably".

 

Travellers will also need to check that they have the health cover they need
if the EHIC card which entitles UK tourists to treatment across Europe
ceases to function.--BBC

 

 

Brexit 'sees UK finance firms move £900bn to Europe'

A report into the impact of Brexit on banking and finance firms says some
£900bn in financial firms' assets have been moved out of the UK.

 

It adds this has cost £3bn-4bn and involves 5,000 expected staff moves or
local hires, and that figure will rise.

 

The study, by capital markets think tank New Financial, says 275 firms have
moved some or all of their business with Dublin the most popular location.

 

It says the hit to London was bigger than expected and would get worse.

 

"Business will continue to leak from London to the EU, with more activity
being booked through local subsidiaries," said William Wright, founder and
managing director of New Financial.

 

Big Brexit vote: What do I need to know?

Brexit: Who knows what happens next?

He said this would weaken the UK's current pre-eminence in financial
services and would damage tax receipts.

 

Dublin benefits

The think tank, which campaigns for Europe to have bigger capital markets,
says its report is the most comprehensive study of its type yet.

 

Its report said a 10% shift in banking and finance transactions would cut
income from tax receipts by about 1%.

 

Its report highlights:

 

Dublin is by far the biggest beneficiary with 100 relocations, well ahead of
Luxembourg (60), Paris (41), Frankfurt (40) and Amsterdam (32)

The post-Brexit landscape is much more "multipolar" than before: more than
40 firms are moving staff or business to more than one financial centre in
the EU

It did add, though, that arrangements made between regulators in the EU and
the UK meant the industry was well prepared for whatever form Brexit took.

 

New Financial breaks down what it calls its "conservative estimates", and
says banks and investment banks are moving around £800bn in assets, asset
managers have so far transferred more than £65bn in funds and insurance
companies have so far moved £35bn in assets.--BBC

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Mash

AGM

Boardroom, ZB Life Towers, 77 Jason Moyo Avenue

18 March 2019 12pm

 


Zimbabwe 

Independence Day

Zimbabwe

18 Apr 2019 

 


 

Good Friday

 

19 Apr 2019

 


 

Easter Saturday

 

20 Apr 2019

 


 

Easter Sunday

 

21 Apr 2019

 


 

Easter Monday

 

22 Apr 2019

 


 

Workers Day

 

01 May  2019

 


 

Africa Day

 

25 May 2019

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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opinions expressed and recommendations made are subject to change without
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any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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