Major International Business Headlines Brief::: 05 December 2020

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Major International Business Headlines Brief::: 05 December 2020

 


 

 


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ü  Job growth slows in US as virus cases surge

ü  Denmark set to end all new oil and gas exploration

ü  Covid: Pub alcohol ban sees barrels of beer poured away

ü  Post-Brexit trade talks paused amid 'significant divergences'

ü  Wall Street hits highs as slowing job growth spurs stimulus bets

ü  U.S. not extending TikTok divestiture deadline, but talks expected to
continue - sources

ü  More than 400 lawmakers from 34 countries back 'Make Amazon Pay' campaign

ü  Nissan joins GM in exiting auto group backing Trump

ü  United Airlines unveils rights issue plan to protect tax assets

ü  Activision sues Netflix over poaching of former finance chief

ü  Kenya ' Borrowed U.S.$23 Million Per Day'

ü  African States Lack Funds to Provide Green Energy

ü  South Africa: Explosion Sets Engen Oil Refinery on Fire

ü  Namibia: Time for Namibia to Produce Hydrogen - Jarrett

ü  Uganda: Oil Pipeline Gets Nod From NEMA

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 


Job growth slows in US as virus cases surge

Hiring in the US slowed sharply last month as the country grappled with a
surge in coronavirus cases.

 

Employers added just 245,000 jobs in November, the Labor Department said,
below many economists' expectations.

 

The jobless rate dropped to 6.7% from 6.9% a month earlier, partially
because many people stopped looking for work.

 

The report comes as several key virus relief programmes, including some
unemployment benefits, are set to expire at the end of the month.

 

Unemployed in the USA: 'I don’t know what to do'

 

Analysts said the numbers show the risk that the economic recovery is
stalling and underscore the need for Congress to approve further stimulus.

 

In October, job numbers grew by 610,000 in the US.

 

"The bottom line is that job growth has slowed markedly, and this report
demonstrates yet again that it's not possible to separate the economy from
the virus," said Ian Shepherdson, chief economist at Pantheon
Macroeconomics. "We hope these numbers will increase the pressure on
Congress to act."

 

Unless lawmakers approve additional stimulus, roughly 12 million people are
due to lose access to unemployment benefits at the end of December,
according to a recent report by the Century Foundation, a Left-leaning think
tank.

 

More than four million people have already been cut off, it found.

 

"For Congress to allow this many workers to be cut off
 it's unprecedented,"
says Andrew Stettner, a senior fellow at the foundation, who worked on the
report.

 

Sarah Groome lost her job as an events manager for a Major League Soccer
football team in Pennsylvania in April, after coronavirus disrupted the
season.

 

The 35-year-old received her last unemployment cheque in October after
exhausting the six months of benefits typically allowed.

 

Her efforts to obtain the pandemic-related emergency extension have become
mired in bureaucracy, even though she has called dozens of times a day in an
effort to clear up the problem.

 

She has found a temporary, part-time retail job that brings in about $100 a
week and dug into savings to pay for her rent, health insurance and other
essentials.

 

"I don't know what I'm going to do financially," she says. "I'm applying to
jobs and I've probably applied to over 100 at this point and I've had one
interview."

 

"It's scary," she says. "I don't know what's going to happen."

 

While the US has regained roughly half of the jobs lost this spring at the
height of the lockdowns, about 10.7 million people remain unemployed -
almost 40% of whom have been without work for more than six months, the
Labor Department said.

 

Another 7.1 million would like a job but do not count as unemployed, because
they have given up looking for work, according to Friday's report.

 

In recent weeks, officials in some cities have re-imposed restrictions on
activities responding to new records for infections and hospitalisations.

 

Nationwide, infections in the US have now surpassed 14 million, with more
than 274,000 deaths, according to data from Johns Hopkins University.-BBC

 

 

 

Denmark set to end all new oil and gas exploration

Denmark will end all new oil and gas exploration in the North Sea, as part
of a wider plan to stop extracting fossil fuels by 2050.

 

Its government also agreed to cancel its latest licensing round on Thursday,
which gives firms permission to search for and produce oil and gas.

 

"We are now putting a final end to the fossil era," said Denmark's climate
minister.

 

Greenpeace Denmark described the announcement as a "watershed moment".

 

However, the country's latest licensing round was facing uncertainty, after
Total of France pulled out in October, leaving only one other applicant.

 

Denmark is currently the largest oil producer in the European Union,
although it produces much less than non-EU members Norway or the UK.

 

It pumped 103,000 barrels a day in 2019, according to analysis by UK oil
giant BP

 

There are 55 drilling platforms on its territory, across 20 oil and gas
fields.

 

"We're the European Union's biggest oil producer and this decision will
therefore resonate around the world," Danish climate minister Dan Jorgensen
said on Thursday.

 

The decision will cost Denmark about 13 billion kroner (£1.1bn), according
estimates by the energy ministry, though it said this amount was subject to
substantial uncertainty.

 

This move marks a historic milestone. No other sizeable oil producer has
taken such a step, Dan Jorgensen tells the BBC.

 

Denmark has been positioning itself as a frontrunner fighting climate
change, but its oil production had presented a dilemma.

 

Since the 1970s, Denmark has earned billions of dollars from its North Sea
oil. That's also helped finance the country's generous welfare state.

 

"We want to be climate neutral in 2050. And if we are to have any
credibility in that, then this is a necessary decision," says Mr Jorgensen.

 

When the current government came to power, Prime Minister Mette Frederiksen
called it "the first climate election".

 

But recently it has faced criticism for not taking more ambitious steps to
reach its climate goal. This latest decision now sends a stronger message.

 

Economic factors have played a role. Lower oil prices and higher costs have
seen interest wane in the latest round of oil bloc tenders.

 

Even so, about 4,000 jobs depend on the sector - mostly on Denmark's west
coast.

 

As part of the new plan, Mr Jorgensen says carbon capture and storage
technology will be developed in the area, and new job creation will come
from the country's growing off-shore wind sector.

 

Denmark is regarded as having one of the world's most ambitious climate
targets.

 

It aims to reduce greenhouse gas emissions from 1990 levels by 70% by 2030,
as well as reach net zero emissions by 2050 - both targets which have been
passed into law.

 

Helene Hagel, head of climate and environmental policy at Greenpeace
Denmark, said that the new announcement meant "the country can assert itself
as a green frontrunner and inspire other countries to end our dependence on
climate-wrecking fossil fuels.

 

"This is a huge victory for the climate movement and all the people who have
pushed for many years to make it happen."

 

Governments around the world have also committed to take further action on
climate change as part of a wider plan to meet the goals of the Paris
Agreement.

 

The UK will aim to cut its carbon emissions by at least 68% of what they
were in 1990 by the end of 2030, Prime Minister Boris Johnson announced on
Friday.

 

Scientists have said, however, that even if the UK and other nations keep
their promises on cutting emissions there was no guarantee the world would
avoid serious global warming.-BBC

 

 

 

Covid: Pub alcohol ban sees barrels of beer poured away

Barrels of beer are being poured down drains as Wales' hospitality industry
prepared for the alcohol ban to come into force.

 

Pubs, restaurants and cafes are banned from serving alcohol from Friday
evening and must close at 18:00 GMT, other than for takeaway service.

 

Businesses said it was "a devastating hammer blow" after going to lengths to
keep customers safe.

 

They said the restrictions will also significantly impact the supply chain.

 

At the Glamorgan Brewery in Llantrisant, Rhondda Cynon Taf, staff have been
pouring barrels of beer down the drain because it now cannot be sold in
pubs.

 

On Thursday, 58 of the company's 64 employees went back onto furlough.

 

Director David Atkins said the new measures are "an absolute kick in the
teeth".

 

"This time last year we probably turned over about £1.5m for the month of
December. This year, it's £50,000.

 

He added the majority of their beer - about 45,000 pints - will have to be
thrown away.

 

At The Cricketers pub in Pontcanna, Cardiff, staff were also pouring away
beer on Friday afternoon.

 

Simon Buckley, of Evan Evans Brewery which supplies the pub said: "How can
it be right and safe to open to serve food in pubs but not alcohol? It
defies logic.

 

"Why is 6pm the bewitching hour as opposed to 10pm? In these difficult times
- and the month of December particularly - the lost revenue is significant."

 

James Cunningham, manager of the Ruthin Castle Hotel in Ruthin,
Denbighshire, said customers have appreciated the safety measures put in
place and the new rules were "incredibly frustrating".

 

"Whenever they can, people want to try to come out and enjoy themselves in
these very, very testing times," he said.

 

He described the measures as a "devastating hammer blow" to the hospitality
industry.

 

"Figures show that less than 5% of all settings of infection happen in
hospitality - and yet here we are once again taking the hammer blow," he
said.

 

"There's no guarantee those restrictions are going to be lifted," he
said.--BBC

 

 

 

Post-Brexit trade talks paused amid 'significant divergences'

Talks to reach a post-Brexit trade deal have been paused, because UK and EU
negotiators say "significant divergences" remain.

 

Michel Barnier and David Frost said conditions for a deal between the two
sides have not been met.

 

European Commission President Ursula Von Der Leyen and PM Boris Johnson will
discuss the state of play on Saturday.

 

State aid subsidies, fishing and enforcement of new rules remain the key
sticking points in negotiations.

 

If a deal is not agreed by 31 December, the two sides will trade on World
Trade Organization rules, meaning the introduction of taxes on imports.

 

Releasing identical statements on Twitter, Mr Barnier and Lord Frost said:
"After one week of intense negotiation in London, the two chief negotiators
agreed today that the conditions for an agreement are not met, due to
significant divergences on level playing field, governance and fisheries.

 

"On this basis, they agreed to pause the talks in order to brief their
principals on the state of play of the negotiations."

 

Mr Barnier is negotiating on behalf of the 27 EU member states and can only
act within the mandate set by their leaders.

 

A senior UK government source told BBC News the statement shows how far
apart both sides are and that the trade talks have run into problems.

 

Earlier, Boris Johnson's spokesman said the government was "committed to
working hard to try and reach agreement" but emphasised that the UK couldn't
"agree a deal that doesn't allow us to take back control".

 

He added that "time is in very short supply and we are at a very difficult
point in talks".

 

Brexit happened but rules didn't change at once: The UK left the European
Union on 31 January 2020, but leaders needed time to negotiate a deal for
life afterwards - they got 11 months.

Talks are happening: The UK and the EU have until 31 December 2020 to agree
a trade deal as well as other things, such as fishing rights.

If there is no deal: Border checks and taxes will be introduced for goods
travelling between the UK and the EU. But deal or no deal, we will still see
changes.

What happens next with Brexit?

 

The Irish Prime Minister Micheál Martin said it was important for the 27 EU
member states to give negotiators "the space to conclude these talks". He
added that he "fervently hoped" a trade deal can be agreed.

 

Meanwhile, France's Europe minister, Clement Beaune, warned that his country
could "veto" a deal if it did not satisfy their demands.

 

The European Parliament would need to ratify any deal before it can be
implemented and UK MPs are likely to get the chance to vote on legislation
implementing the agreement.

 

And the 27 EU national parliaments could also need to ratify an agreement -
depending on the actual contents of the deal.--BBC

 

 

 

Wall Street hits highs as slowing job growth spurs stimulus bets

(Reuters) - Wall Street’s main indexes rose to all-time highs on Friday as
data showing the slowest U.S. jobs growth in six months raised investors’
expectations for a new fiscal relief bill to help revive the coronavirus-hit
economy.

 

So-called “cyclical” stocks seen as particularly sensitive to the economy,
such as energy, materials and industrials, shined as most S&P 500 sectors
rose.

 

The Labor Department’s closely watched report showed nonfarm payrolls
increased by 245,000 jobs in November, below economists’ expectations of
469,000 jobs and the smallest gain since the labor recovery started in May.

 

President-elect Joe Biden said Friday’s “grim” jobs report shows the
economic recovery is stalling and warned the “dark winter” ahead would
exacerbate the pain unless the U.S. Congress passes a coronavirus relief
bill immediately.

 

“The bad news of the weakening jobs picture is potentially good news for
investors because it means that the stimulus bill is much more likely to
take place in a fairly short time frame,” said Ryan Detrick, senior market
strategist at LPL Financial in North Carolina.

 

The Dow Jones Industrial Average rose 248.74 points, or 0.83%, to 30,218.26,
the S&P 500 gained 32.40 points, or 0.88%, to 3,699.12 and the Nasdaq
Composite added 87.05 points, or 0.7%, to 12,464.23.

 

The Dow Jones Transportation Average and the small-cap Russell 2000 also
posted record closing highs.

 

The benchmark 10-year yield hit its highest level since March at over 0.98%,
helping support financial shares which are highly sensitive to interest
rates.

 

The energy sector jumped 5.4%, bolstered by gains in oil prices. Shares of
Diamondback Energy Inc surged 12.7% and Occidental Petroleum gained 13.4%.

 

 

“There is just a lot of catch-up happening with those sectors and
sub-sectors that have really struggled year to date,” said Eric Freedman,
chief investment officer at U.S. Bank Wealth Management.

 

Utilities lagged the most among major sectors, falling 1%.

 

Positive coronavirus vaccine updates from drugmakers have raised investor
hopes for an economic recovery next year and overshadowed worries over a
surge in U.S. infections, helping the major indexes to another week of gains
after the benchmark S&P 500 surged over 10% in November.

 

In company news, Boeing shares fell 1.9% as a top company executive said the
company is reducing production of its 787 Dreamliner for the fourth time in
18 months.

 

Advancing issues outnumbered declining ones on the NYSE by a 3.54-to-1
ratio; on Nasdaq, a 2.95-to-1 ratio favored advancers.

 

The S&P 500 posted 50 new 52-week highs and no new lows; the Nasdaq
Composite recorded 222 new highs and 6 new lows.

 

About 11.4 billion shares changed hands in U.S. exchanges, below the 11.8
billion daily average over the last 20 sessions.

 

 

 

U.S. not extending TikTok divestiture deadline, but talks expected to
continue - sources

WASHINGTON/NEW YORK (Reuters) - The Trump administration on Friday opted not
to grant ByteDance a new extension of an order requiring the Chinese company
to divest TikTok’s U.S. assets, but talks between the company and government
are expected to continue over the short video-sharing app’s fate, two
sources briefed on the matter said.

 

Last week, the Committee on Foreign Investment in the United States granted
TikTok parent ByteDance a one-week extension until Friday over the order to
shed TikTok’s U.S. assets. President Donald Trump’s August order gave the
Justice Department the power to enforce the divestiture order once the
deadline expired, but it is unclear when or how the government may seek to
compel divestiture.

 

Trump was said to have personally made the decision not to approve any
additional extensions at a meeting of senior U.S. officials, according to a
person briefed on the meeting. The government had previously issued a 15-day
and 7-day extension of the initial 90-day deadline, which was Nov. 12, in
Trump’s order.

 

The Justice Department and Treasury Department did not immediately respond
to requests for comment, while the White House did not comment. TikTok
declined to comment.

 

The Trump administration contends TikTok poses national security concerns as
the personal data of U.S. users could be obtained by China’s government.
TikTok, which has over 100 million U.S. users, denies the allegation.

 

Under pressure from the U.S. government, ByteDance has been in talks for
months to finalize a deal with Walmart Inc and Oracle Corp to shift TikTok’s
U.S. assets into a new entity.

 

ByteDance made a new proposal aimed at addressing the U.S. government’s
concerns, Reuters reported last week.

 

The U.S. Treasury said last week the seven-day extension was granted to
review a recently received “revised submission.”

 

ByteDance made the proposal after disclosing on Nov. 10 that it submitted
four prior proposals, including one in November, that sought to address U.S.
concerns by “creating a new entity, wholly owned by Oracle, Walmart and
existing U.S. investors in ByteDance, that would be responsible for handling
TikTok’s U.S. user data and content moderation.”

 

In September, TikTok announced it had a preliminary deal for Walmart and
Oracle to take stakes in a new company to oversee U.S. operations. Trump
said the deal had his “blessing.”

 

On Nov. 11, ByteDance filed a petition with a U.S. Appeals Court challenging
the divestiture order and said it planned to file a request “to stay
enforcement of the divestment order only if discussions reach an impasse and
the government indicates an intent to take action to enforce the order.”

 

ByteDance said the Trump order seeks “to compel the wholesale divestment of
TikTok, a multi-billion-dollar business built on technology developed by”
ByteDance “based on the government’s purported national security review of a
three-year-old transaction that involved a different business.”

 

 

 

More than 400 lawmakers from 34 countries back 'Make Amazon Pay' campaign

LONDON (Reuters) - More than 400 lawmakers from 34 countries have signed a
letter to Amazon.com Inc boss Jeff Bezos backing a campaign that claims the
tech giant has “dodged and dismissed 
 debts to workers, societies, and the
planet,” organisers said.

 

The “Make Amazon Pay” campaign was launched on Nov. 27 - the annual Black
Friday shopping bonanza - by a coalition of over 50 organisations, with
demands including improvements to working conditions and full tax
transparency.

 

The letter’s signatories include U.S. Congresswomen Ilhan Omar and Rashida
Tlaib, former UK Labour Party leader Jeremy Corbyn and Vice President of the
European Parliament Heidi Hautala, co-convenors Progressive International
and UNI Global Union said.

 

“We urge you to act decisively to change your policies and priorities to do
right by your workers, their communities, and our planet,” the letter said.

 

“We stand ready to act in our respective legislatures to support the
movement that is growing around the world to Make Amazon Pay.”

 

Amazon, the world’s biggest retailer, has faced criticism for its tax
practices before, including in the UK and the EU. It says its profits remain
low given retail is a highly competitive, low margin business and it invests
heavily.

 

It said on Thursday that while it accepted scrutiny from policymakers, many
of the matters raised in the letter stemmed from misleading assertions.

 

“Amazon has a strong track record of supporting our employees, our
customers, and our communities, including providing safe working conditions,
competitive wages and great benefits,” it said, adding it was “paying
billions of dollars in taxes globally.” The company has also pledged to be
net carbon neutral by 2040.

 

Amazon grew rapidly during the pandemic, with sales soaring as restrictions
to prevent the spread of the coronavirus closed bricks-and-mortar shops and
sent consumers online.

 

Governments worldwide are considering tougher rules for big tech to assuage
worries about competition.

 

The European Union, for example, last month charged Amazon with damaging
retail competition, alleging it used its size, power and data to gain an
unfair advantage over smaller merchants that sell on its online platform.

 

Amazon disagreed with the EU assertions, saying it represented less than 1%
of the global retail market and there were larger retailers in every country
in which it operated.

 

 

 

 

Nissan joins GM in exiting auto group backing Trump

WASHINGTON (Reuters) - Japanese automaker Nissan Motor Co on Friday joined
General Motors Co in exiting a group of automakers that had backed U.S.
President Donald Trump in his bid to prevent California from imposing its
own vehicle emissions rules.

 

GM last week reversed course in an ongoing court fight and abandoned the
outgoing Republican president, winning praise from Democratic
President-elect Joe Biden, who takes office on Jan. 20.

 

“We are confident that productive conversations among the auto industry, the
Biden administration and California can deliver a common-sense set of
national standards that increases efficiency and meets the needs of all
American drivers,” Nissan said in a statement.

 

GM had joined Nissan, Toyota Motor Corp, Fiat Chrysler Automobiles NV and
other automakers in October 2019 in support of Trump effort’s to bar
California from setting its own fuel-efficiency rules, or zero-emission
requirements, for vehicles - separate from federal requirements.

 

Others still backing Trump include Mazda Motor Corp, Hyundai Motor, Kia
Motors Corp Mitsubishi Motors Corp, Subaru Corp and the National Automobile
Dealers Association.

 

The industry still remained split on how to move forward after it held a
meeting Tuesday.

 

Biden has made boosting electric vehicles a top priority and pledged to
spend billions of dollars to add 550,000 charging stations for such
vehicles. He also supports new tax credits for purchases of electric
vehicles and retrofitting factories for their production.

 

Ford Motor Co, Honda Motor Co, Volkswagen AG and BMW AG in July 2019 struck
a voluntary agreement with California on reducing vehicle emissions that is
less stringent than rules previously adopted under President Barack Obama
but higher than the Trump administration’s rollback.

 

Ford has urged other automakers to back the California framework as a way to
move forward.

 

 

 

United Airlines unveils rights issue plan to protect tax assets

(Reuters) - United Airlines Holdings Inc said on Friday it was seeking
shareholder approval for a rights offering as part of a plan to thwart any
hostile takeover moves and preserve a $8.2 billion tax benefit.

 

Chicago-based United said it had net federal operating loss carryforwards of
about $8.2 billion as of the Sept. 30 that would be at risk if the company
changed ownership.

 

Shares in United have declined due to the sharp drop for air travel caused
by the COVID-19 pandemic, making it vulnerable to takeovers.

 

Under the plan, United will issue one preferred share purchase right in the
form of a dividend for each outstanding share of common stock to certain
shareholders.

 

Shareholders that opt for the rights could only exercise them if a person or
group acquires a stake of 4.9% or more without the board’s consent, United
said.

 

United’s stock closed down 1.34% at $49.24 on Friday before the
announcement.

 

 

 

Activision sues Netflix over poaching of former finance chief

(Reuters) - Activision Blizzard Inc sued Netflix Inc on Friday, alleging
that the video-streaming giant engaged in “unlawfully poaching” company
executives, including its former finance chief, Spencer Neumann.

 

Netflix had appointed here Neumann as Chief Financial Officer in January
2019, after Activision terminated his employment for violating legal
obligations to the company.

 

“Netflix has a pattern and practice of unlawfully inducing employees of
other competitors to breach their fixed-term contracts,” Activision said in
a court filing, adding that Netflix knowingly induced Neumann to breach his
employment contract with Activision.

 

Netflix did not immediately respond to a Reuters request for a comment.

 

The document, filed in a state court in California, accused Netflix of
unfair competition, intentional interference with an employee contract as
well as aiding and abetting breach of fiduciary duty.

 

Netflix’s unlawful conduct is reflective of its contempt for the law of the
state of California, the videogame publisher said in the filing while
seeking damages and injunctive relief.

 

 

 

Kenya ' Borrowed U.S.$23 Million Per Day'

The government borrowed an average of Sh2.62 billion daily within four
months this year as its appetite for loans to finance ambitious capital
projects amid the Covid-19 pandemic continues.

 

The borrowing comes despite warnings from the Bretton Woods institutions --
the International Monetary Fund (IMF) and the World Bank -- that the
continued pile up of public debt may prove a challenge to pay back.

 

A document from the National Treasury tabled in the National Assembly
yesterday shows that Sh322,178,194,040 in 15 new loans was procured between
May 1 and August 31 from various commercial and multilateral lenders.

 

This means that the government procured Sh887,308 an hour to finance the
various projects, according to the National Treasury document.

 

Of the 15 new loans, 12 are from multilateral lenders and three from
bilateral lenders.

The latest details come as the country's public debt cruised to Sh7.12
trillion, about 71.2 percent of the Gross Domestic Product (GDP) against a
ceiling of Sh9 trillion.

 

On Tuesday this week, National Treasury Cabinet Secretary Ukur Yatani told
the House Committee on Finance and National Planning that the missed revenue
collection target brought about by Covid-19 pandemic presents the government
with no alternative but to borrow locally and externally to support the
economy and other development projects.

 

"Our revenue is not up to date. The Covid-19 pandemic has really affected
our revenues," Mr Yatani told the committee chaired by Homabay County Woman
Representative Gladys Wanga.

 

The Public Finance Management Act mandates the National Treasury to
periodically update Parliament on the country's debt status.

 

Mr Yatani told the committee that with a deficit of about Sh841 billion in
the Sh3 trillion budget for the current financial year, it means that the
country will borrow more to bridge the gap.

 

As of December last year, Kenya's public debt stood at Sh6.2 trillion
despite concerns from the two Bretton Wood institutions.

 

In May this year, Reuters reported that the IMF shifted Kenya's risk of debt
distress to high from moderate because of the impact of the Covid-19
disease.

 

Kenya, East Africa's economic giant, had her public debt at 61.7 per cent of
her GDP as at the end of 2019, an increase from 50.2 per cent as at the end
of 2015.

 

In 2019, the World Bank warned Kenya against piling up more debt than the
country can repay in the year that the Kenyan parliament increased the
country's debt ceiling to the numerical figure of Sh9 trillion from 50
percent of the GDP.

 

However, while appearing before the committee, Mr Yatani was bullish that
the pileup of public debt will not overwhelm the country's ability to repay.

 

"Our debt strategy is sustainable. We have not defaulted to repay and Kenya
has never been given a debt relief on account of being unable to repay her
loans," said the CS.

 

Of the new loans procured, Sh82.89 billion from the International Monetary
Fund (IMF) is for rapid credit facility financing.

 

About Sh27.12 billion from the International Bank for Reconstruction and
Development (IBRD) provides financing for the affordable housing project, to
enhance farmer incomes and food security and to create fiscal space to
support the government's growth agenda.

 

The Sh81.37 billion from the International Development Association (IDA) is
for support of private investment, affordable housing as well as food
security.-Nation.

 

 

 

African States Lack Funds to Provide Green Energy

With less than a decade to meet global energy goals, sub-Saharan Africa is
ways away to provide affordable, reliable, modern energy due to lack of
financing, according to the latest UN report.

 

The Sustainable Energy for All (SEforALL) report released last week, found
that most African countries have inadequate finance levels and those with
funds are not directing them to the areas of greatest need.

 

The Energising Finance: Understanding the Landscape 2020 and Energising
Finance: Missing the Mark 2020 report shows the world is neglecting
investments in electricity and access to clean cooking energy despite the
critical need to protect the most vulnerable and save lives.

 

The shortage has reached acute levels in many of the 20 High Impact
Countries across Africa and Asia with the largest access gaps that the
reports track using the latest available data from 2018, including Angola,
the Democratic Republic of Congo, Ethiopia, Kenya, Madagascar, Nigeria,
Uganda and Tanzania.

The SEforALL, an international organisation that works in partnership with
the United Nations to drive faster action towards the achievement of
Sustainable Development Goal 7 (SDG7), said fossil fuel financing has
increased substantially while funds for grid-connected renewables have
decreased, despite urgent need for action and pledges made since the Paris
Climate Agreement.

 

The reports found a significant increase in fossil fuel finance commitments
in 2018, accounting for the largest portion of electricity finance flows for
the first time in at least six years.

 

This financing risks locking countries into decades of high carbon
emissions, import dependency and depreciating or stranded assets, posing
fiscal, economic and environmental risks for developing countries.

 

The reports, which examine commitments, disbursements and demand for finance
across two key areas of energy access (electricity and clean cooking)
indicate that an estimated annual investment of $41 billion is needed to
achieve universal residential electrification, but only one-third of this
($16 billion) has been committed.

Further, despite the clear need and opportunity for decentralised renewable
energy to reach the majority of those without access, finance commitments
for mini-grids and off-grid renewable energy systems remain far short of
necessary levels, attracting less than one to 1.5 percent of the total
finance for electricity tracked.

 

Barbara Buchner, global managing director at Climate Policy Initiative (CPI)
expressed pessimism in meeting the SDG7.

 

"Based on this data, and dire lack of progress and reoccurring disbursement
delays, we estimate that the world will be delayed by decades in meeting
SDG7. Year after year, the numbers are showing that we will miss SDG7
targets unless we dramatically increase finance for electricity and clean
cooking," said Dr Buchner during the launch of the report.

 

"We are in the midst of a climate emergency, and it is now more important
that finance is Paris-aligned and committed to clean technologies, including
mini-grids and off-grid solutions, to expand energy access to those that
need it most," she added.

 

According to the study, energy investments are highly concentrated and not
going to the countries with the greatest needs or to the right solutions,
and therefore are not addressing the most urgent sustainable energy gaps.

 

Sub-Saharan Africa which accounts for 70 percent of people in high impact
countries without access to electricity. As at 2018, the 14 high impact
countries in Africa received $8.5 billion, which is less than 20 percent of
the total $43.6 billion finance needed.

 

The six high impact countries with the lowest electricity access rates --
where more than 70 percent of the population is without access -- are
Burkina Faso, Chad, DR Congo, Madagascar, Malawi and Niger, which are all in
the bottom half of countries studied in terms of electricity finance
commitments.

 

The research recommends urgent co-ordinated action from direct financing
investment and donors to increase the share of energy access finance
commitments in sub-Saharan African countries that face chronic
underinvestment.

 

It also urged countries like China, which directed a majority of its
international financing to fossil fuel projects in high impact countries in
2018, to align their external financing activities with their Paris
Agreement and, increasingly, domestic commitments. The report also urged
national governments to expand clean cooking access.-East African.

 

 

 

 

South Africa: Explosion Sets Engen Oil Refinery on Fire

Cape Town — An explosion has set the Engen oil refinery in Durban South
aflame, IOL reports.

 

Emergency services reported to the scene where fire and smoke were seen by
residents. "I first thought it was a tremor, when I heard the windows
rattle, but saw smoke billowing in the sky," one said after hearing the
explosion during the night. The blast was heard in many parts of Durban.
Refinery workers who spoke to TimesLIVE under condition of anonymity said
the explosion occurred in the northern complex of the refinery. "I'm pretty
sure it's the reactor. This plant is old," one employee said.

 

Garrith Jamieson, an Advanced Life Support Paramedic, said a tanker
explosion may have been the cause of the fire and that roads around the
refinery have been closed off while emergency teams attend to the fire.

 

Robert McKenzie, KwaZulu-Natal emergency spokesperson, said that six people
were treated for smoke inhalation, The Sowetan reports.

 

He said a block of flats on Beach Road caught fire though no injuries were
reported after the blaze was extinguished.

 

According to Engen spokesperson Gavin Smith, the fire was extinguished at
08h45, adding: "Engen's emergency response team and eThekwini emergency
services were immediately mobilised to contain the incident. The cause of
the fire is currently under investigation."

 

 

Namibia: Time for Namibia to Produce Hydrogen - Jarrett

With the undeniable impacts of Covid-19 and the need for clean and
sustainable energy sources, hydrogen is becoming more and more relevant.
According to David Jarrett, managing consultant at RDJ Consulting, hydrogen
is vital in transportation fuel, as raw material for chemical and industrial
processes, as a power generation option and as energy storage.

 

"Namibia is an importer of all forms of energy currently. This then means
that hydrogen and its development globally will impact the availability,
cost and usefulness of current energy sources. Think of this, if all vehicle
manufacturers were to shift their engines to use hydrogen, is Namibia ready
to acquire new vehicles that use the only hydrogen?" asked Jarrett.

Energy demand in Namibia's transport sector accounts for approximately 70%
of total energy demand with any domestic savings having a great impact on
foreign exchange payments required to meet these imports demands.

 

Furthermore, Jarrett noted that there is ability for value addition to the
vast solar resource Namibia is blessed with to produce the energy needed for
hydrogen production - and simultaneously, the production of desalinated
water and various chemical salts. Finally, there is the ability to increase
local jobs and create a new sustainable industry with its spin-offs, said
Jarrett.

 

He continued that with the consistent rise and increased demand for
electricity globally, Namibia can be described as "behind the curve" based
on the fact that over the last three to four years, it had to import
approximately 65% of required energy from the region. Jarrett stated that
while importing in and of itself is not a bad thing, the issue of energy
security should be a concern.

 

"The demand growth annually of approximately 4% means that some 160 MWh is
required to meet this and would roughly require 60 MW of Solar PV not taking
into account time of use complexities. Having contracted locally 170 MW of
solar and wind since 2017, Namibia will only be meeting annual growth needs
if not ramped up," he outlined.

 

The local economist by profession stressed that other measures have already
started to impact demand, such as net metering, assumed recently to be
around 45 MW installed nationally, and various energy efficiency campaigns.

 

According to him, time of use now means more aggressive and innovative
measures will be required to create the needed energy security. Some of
these measures will require energy storage, solar thermal replacement of
electric thermal, and new generation.

 

"These needs will thus create new opportunities in all forms of renewable
energies as Namibia moves forward and the modified single buyer market (MSB)
is very timely," Jarrett concluded.-New Era.

 

 

 

Uganda: Oil Pipeline Gets Nod From NEMA

The National Environment Management Authority (Nema) has approved the
Environment and Social Impact Assessment (ESIA) for the construction of the
East African Crude Oil Pipeline (EACOP) project.

 

The environment watchdog yesterday issued the certificate to Total East
Africa Midstream B.V as an approval to pave way for the construction of the
EACOP.

 

EACOP is a 1,443 kilometre crude oil export pipeline system that will
transport Uganda's crude oil from Kabale - Hoima in Uganda to a maritime
port facility on the Chongoleani Peninsula near Tanga in Tanzania.

 

The certificate of approval is specific to the Ugandan section of the
project and follows the November 2019 approval for the Tanzanian Section.

 

ESIA is undertaken to identify and assess the potential environmental,
social and health effects of the project with the aim of identifying the
adequate measures to avoid and mitigate potential impacts as well as enhance
the project's health.

 

The Nema executive director, Dr Tom Okurut, said they will monitor the
project to ensure compliance with the certificate's conditions of approval.

 

"Monitoring is a continuous process and will be undertaken during
construction, operation and decommissioning phases. This, we shall do to
ensure that the health, safety and security of the communities, workers and
the environment are all respected," Dr Okurut said.

 

The EACOP project general manager, Mr Martine Tiffen, said: "This is a
significant milestone for the project and is the result of several years of
collaborative work with many specialists and stakeholders to reach this
point."

 

He added: "EACOP project will yield substantial foreign direct investment in
Uganda and Tanzania during the construction phase."

 

The director for petroleum refining, conversion, transmission and storage at
the Petroleum Authority Uganda, Mr Dozith Abeinomugisha, said the EACOP
project will make a very significant contribution towards unlocking the oil
and gas sector in Uganda and possibly beyond.

 

"EACOP will provide a wide range of social, economic benefits to the country
and the region including serving as a regional infrastructure to deliver
crude oil and other oil fields in the region to the market," Mr
Abeinomugisha said.

 

Acting commissioner for the Midstream Petroleum Project in the Energy
ministry, Ms Irene Pauline Batebe said ESIA is part of the wider
environmental management and conservation plan and that the outcomes of Nema
in the approval are addressed to ensure environmental mitigations are
achieved as planned.-Monitor.

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

Seed co Int.

Dairibord

 


Starafrica

Medtech

Turnall

 


Seed co

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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