Major International Business Headlines Brief::: 06 December 2020

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Major International Business Headlines Brief::: 06 December 2020

 


 

 


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ü  British Airways' memorabilia sale hits snag as demand soars

ü  Brexit: 'Final throw of the dice' as trade talks resume

ü  Covid: Argentina passes tax on wealthy to pay for virus measures

ü  US turns up heat on China's biggest chip-maker

ü  Kia recalls 295,000 U.S. vehicles for fire risks

ü  Tesla says Black people hold just 4% of its U.S. leadership roles

ü  Bezos says Blue Origin will take the first woman to moon's surface

ü  Lufthansa will have shed 29,000 staff by year end: Bild am Sonntag

ü  Ivory Coast lifts suspension of Hershey cocoa sustainability schemes

ü  Sierra Leone: Illegal Fishing Crippling Economy

ü  Kenya Scraps Personal and Corporate Covid-19 Tax Relief Amid Debt Default
Risk

ü  Nigeria: New Export Rule Leaves Tonnes of Cocoa Beans Trapped at Ports

ü  Nigeria: Mitsubishi Launches Virtual Showroom in Nigeria

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 


British Airways' memorabilia sale hits snag as demand soars

They flew off shelves: slippers, cups and saucers, blankets and bedding,
towels, even drinks trolleys.

 

British Airways' online sale of thousands of surplus stock not needed for
its aircraft caused a stampede of buying from aviation enthusiasts and
bargain-hunters.

 

In the first 24 hours, 5,000 purchases were made, with the website getting
250,000 page views. In the first four days, 1,900 six-packs of bread baskets
were snapped up.

 

Meal trolleys were among the first to sell out. Items from the now-retired
Boeing 747s in BA's aircraft fleet were in big demand.

 

Trouble is, the sell-off seems to have been so popular it risks becoming a
PR headache.

 

While there are plenty of satisfied customers, there are also plenty of
dissatisfied ones - just check Twitter, Trustpilot and the frequent flyer
website Head for Points, where buyers are venting annoyance about broken and
missing items, non-deliveries and lack of responses from BA and the company
it used to handle the sale, Whatabuy.

 

"Such an unnecessary own goal," said Nick Hadjinikos, whose girlfriend is
still waiting for her plates and bread baskets.

 

The director at communications consultancy Kallinos said: "During the
ordering process, the site kept crashing after payment information had been
submitted. This was the big worry, so I put in a couple of emails to
Whatabuy and never heard back.

 

"Then I took to Twitter and found we were not alone. BA should have spotted
the problem and headed it off. I think most of the stuff was snapped up by
hawks and ended up on eBay."

 

Another buyer, Simon Saunders, told the BBC: "The whole thing is a shambles.
Whatabuy replied to my third email and simply said, 'You will get your stuff
in due course.'"

 

Comments on the Head for Points website include:

 

"One of my orders has turned up! It's missing one bit of it but they appear
to have added part of another order in there"

"Still no response to any of my emails, and no answer on the phones. Got two
items, both wrong and missing the other three"

"I have lost all patience with them and just want a refund, and for them to
collect the couple of incorrect items they sent in place of my order".

Travel enthusiasts

 

Whatabuy did not respond to BBC requests for comment. But in an email to a
customer complaining about their order, the company said it had seen "an
unprecedented level of demand" and processing was taking longer than usual.
There had also been IT issues, Whatabuy said.

 

Head for Points' Rhys Jones said complaints to his website revealed obvious
problems with the sale, but he still believes the majority of his readers
seem delighted with their purchases.

 

"This sale seems to have captured the imagination of travel enthusiasts. It
offers them a chance to get hold of some authentic BA memorabilia," Mr Jones
said.

 

That's why John Granger bought some mugs, plates and a blanket - a gift for
partner Tim. "It was curiosity and nostalgia. We love flying so much but
have not been able to travel during the pandemic. It's a reminder of our
travels.

 

"The crockery is actually high-quality bone china [designed by William
Edwards]." He paid £44.70 (including P&P) for the lot. "That's remarkable
value. I'm not sure why BA was selling them so cheap."

 

Refunds

Kirill Maksaev and partner Alexander Smotrov bought £100 worth of BA
crockery and would have purchased a lot more, had they been quicker off the
mark. They haven't got the items yet, but are not concerned. "It's fine. We
can wait. We've had the confirmation email," said Kirill.

 

The purchases will be part of the mini-museum Alex has set up in his home -
boarding passes, amenity bags, napkins, crockery and branded goods marking
his years of air travel. "We are plane spotters: we are passionate about
aviation," Kirill said.

 

BA said it had expected a huge amount of interest from aviation fans,
bargain hunters and people looking for "unique" Christmas gifts.

 

"But of course, no one could have predicted quite how popular it would be
and how quickly items would sell out," the airline told the BBC.

 

"We are working hard to ensure all customers receive their orders as quickly
as possible and in time for Christmas. We're in touch with those who may not
have received their items yet to reassure them they're on their way."

 

And the airline promised refunds "for any items that are not in the
condition advertised on the site".

 

Would BA do it again? "We'll consider our options once we've reviewed the
success of the scheme and any learnings," the airline said.--BBC

 

 

 

Brexit: 'Final throw of the dice' as trade talks resume

Crucial negotiations to secure a post-Brexit trade deal between the UK and
the EU are to resume later.

 

UK chief Brexit negotiator Lord Frost will meet EU counterpart Michel
Barnier in Brussels to try to bridge the two sides' "significant
differences".

 

A UK source told the BBC it could be the "final throw of the dice" to agree
a deal before the end of the year.

 

BBC political correspondent Chris Mason said the mood was downbeat, but both
sides still wanted a deal.

 

He quoted a UK government insider as saying: "Often the darkest hour comes
just before dawn."

 

Sunday's meeting comes after talks between Prime Minister Boris Johnson and
European Commission President Ursula von der Leyen failed to deliver
agreement.

 

The pair spoke on the phone for an hour on Saturday but failed to break the
deadlock on "critical issues".

 

In a joint statement issued afterwards they said fishing rights, competition
rules and how any deal would be enforced were still causing problems.

 

They added: "Both sides underlined that no agreement is feasible if these
issues are not resolved."

 

However, Mr Johnson and Ms Von der Leyen said they "welcomed the fact that
progress has been achieved in many areas".

 

Both have agreed to talk again on Monday evening.

 

BBC political editor Laura Kuenssberg said the statements signalled
"clearly" that a trade deal is out of reach right now, and "if no-one budges
in the next few days, it's simply not going to happen".

 

Areas of disagreement

Lord Frost and his team of negotiators are due to travel back to Brussels on
Sunday, where they will to try to work through areas of disagreement with
their EU opposite numbers.

 

One of these is over access to UK waters by the EU's fishing fleets.

 

Another is what measures there should be to ensure a "level playing field"
for businesses on both sides of the Channel.

 

Also outstanding is any consensus on how any new agreements would be
enforced, and about the role of the European Court of Justice.

 

What are the sticking points in Brexit trade talks?

Brexit: What is a level playing field?

If a deal is not reached, border checks and taxes will be introduced for
goods travelling between the UK and the EU.

 

Brexit - The basics

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

Talks are on again: The UK and the EU have until 31 December 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?

 

'Everyone's best interests'

The EU's chief negotiator, Michel Barnier, tweeted after Saturday's
statement was published, saying: "We will see if there is a way forward."

 

Ireland's Taoiseach (Prime Minister) Micheál Martin also tweeted, welcoming
the news that the teams would resume trade talks.

 

He said: "An agreement is in everyone's best interests. Every effort should
be made to reach a deal."

 

Labour's shadow Cabinet Office minister Rachel Reeves said: "The British
people were promised a deal and, with time running out, we urge both sides
to get on with reaching an agreement."

 

It's not over, not yet.

 

The two sides in this complicated and drawn out process have agreed that it
is worth trying one last time to find a way through their profound
differences.

 

But the statements from the prime minister and the EU chief, Ursula von der
Leyen, signal clearly that a trade deal is out of reach right now - spelling
out that if no-one budges in the next few days, it's simply not going to
happen.

 

A feature of Brexit negotiations has often been the last minute stand off,
the political emergency, before suddenly, lo and behold, a deal emerges from
the wreckage.

 

By Monday night, that tradition may have been proven again.

 

Yet it seems there is a lot more to be done than ironing out a few last
minute glitches.

 

Read more from Laura here.

 

Even if the two sides agree a deal, there are still hurdles to overcome.

 

Any agreement reached will need to be turned into legal text and translated
into all EU languages, then ratified by the European Parliament.

 

The UK government is likely to introduce legislation implementing parts of
any deal reached, which MPs will be able to vote on.

 

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

 

The week to come

After the meetings between the teams on Sunday and the leaders' talk on
Monday, the UK Internal Market Bill will return to the House of Commons.

 

Certain clauses could allow the government to break international law, by
overriding elements of the original treaty with the EU for Brexit - the
withdrawal agreement.

 

The EU is unhappy with it, as is the House of Lords, which voted to scrap
those clauses of the bill.

 

But the government is still backing its measures, which could cause tensions
in the trade talks, and it is expected to push them through the Commons on
Monday night.--BBC

 

 

 

Covid: Argentina passes tax on wealthy to pay for virus measures

Argentina has passed a new tax on its wealthiest people to pay for medical
supplies and relief measures amid the ongoing coronavirus pandemic.

 

Senators passed the one-off levy - dubbed the "millionaire's tax" - by 42
votes to 26 on Friday.

 

Those with assets worth more than 200 million pesos ($2.5m; £1.8m) - some
12,000 people - will have to pay.

 

Argentina has recorded close to 1.5 million infections and almost 40,000
deaths from the coronavirus.

 

It has been hit hard by the pandemic, becoming the fifth country worldwide
to report one million confirmed cases in October despite only having a
population of about 45 million people - making it the smallest nation at the
time to surpass that figure.

 

Lockdown measures have further dented an economy struggling with
unemployment, high poverty levels and massive government debt. Argentina has
been in recession since 2018.

 

One of the law's authors said it would only affect about 0.8% of taxpayers.
Those affected will pay a progressive rate of up to 3.5% on wealth in
Argentina and up to 5.25% on that outside the country.

 

AFP news agency reports that of the money raised, 20% will go to medical
supplies, 20% to relief for small and medium-sized businesses, 20% to
scholarships for students, 15% to social developments, and the remaining 25%
to natural gas ventures.

 

How much will coronavirus cost the UK?

Tax home workers 'to help pay those who cannot'

Centre-left President Alberto Fernandez's government hopes to raise 300
billion pesos.

 

But opposition groups fear it will discourage foreign investors, and that it
will not be a one-time tax.

 

Centre-right party Juntos por el Cambio reportedly described it as
"confiscatory".--BBC

 

 

 

US turns up heat on China's biggest chip-maker

The US has added China's biggest computer chip-maker SMIC to a list of
"Chinese military companies", putting further pressure on the company.

 

The move by the Department of Defense means US investors are now barred from
holding or trading shares in SMIC.

 

It said the Chinese government was using the expertise of "civilian
entities", such as companies and universities, to modernise its military
capabilities.

 

SMIC has denied any military links.

 

The company now falls under an executive order signed by President Donald
Trump in November, which sought to prevent US capital from funding the
modernisation of China's military.

 

SMIC has previously said some of its US suppliers have been issued with
letters telling them they will be subject to new export restrictions.

 

This suggests the US Department of Commerce may add the company to its trade
blacklist, known as the entity list, although it has not yet published such
a decision.

 

If that happens, it could have a significant impact on chip production.

 

"Seeing as SMIC is dependent on sourcing from US companies in order to be
able to manufacture silicon chips, this puts SMIC's business in the hands of
the Department of Commerce, which can decide whether to issue licences on a
case-by-case basis," said Richard Windsor, founder of research firm Radio
Free Mobile.

 

"The added designation of SMIC as being owned or controlled by the Chinese
military does not change the situation, other than to make it harder to get
a licence, make it more likely to be added to the entity list and result in
diminished demand for its shares as US investors will no longer be able to
buy them."

 

This is another sign that the Trump administration intends to use its final
days to continue to crank up pressure on China and try and lock in a
hard-line policy for the incoming Biden administration.

 

The definition of what constitutes supporting the military may be
interpreted broadly and is open to dispute - but Washington is using it as a
lever in the battle over chips - a key area of technological competition.

 

Washington knows this is one area that China is relatively behind in and is
desperate to catch up on.

 

The Trump administration will also be counting on it being hard for a Biden
administration to be seen to roll back measures for fear of being accused of
going "soft" on Beijing.

 

SMIC was founded in 2000, and has since become the most prominent
chip-making foundry in mainland China.

 

However, its most advanced products are said to lag two generations behind
what rival manufacturers - including Taiwan Semiconductor Manufacturing
Company (TSMC) and South Korea's Samsung - are capable of.

 

SMIC cannot currently make transistors as small as are made by those rivals,
so it cannot produce state-of-the-art processors for the latest smartphones
and other advanced gadgets.

 

The reason for this is, in part, due to existing restrictions the US has
imposed on the firm.

 

At present, the only way to make the most advanced logic chips is to use
equipment made by a Dutch company, ASML.

 

SMIC had ordered a $150m (£111m) lithography machine - which uses lasers
focused by giant mirrors to print minuscule patterns on silicon - from ASML
in 2018. But Reuters reported the White House convinced the Dutch government
to block the export on security grounds.

 

A spokesman for ASML declined to comment when asked by the BBC whether the
deal was still in limbo.

 

SMIC has told the BBC: "SMIC manufactures semiconductors and provides
services solely for civilian and commercial end-users and end-uses. The
company has no relationship with the Chinese military and does not
manufacture for any military end-users or end-uses."--BBC

 

 

 

Kia recalls 295,000 U.S. vehicles for fire risks

WASHINGTON (Reuters) - Kia Motors Corp said on Saturday it is recalling
295,000 U.S. vehicles for engine fire risks.

 

The Korean automaker said the recall covers some 2012-2013 model year
Sorento, 2012-2015 Forte and Forte Koup, 2011-2013 Optima Hybrid, 2014-2015
Soul, and 2012 Sportage vehicles because an engine compartment fire can
occur while driving.

 

Dealers will inspect the engine compartment for fuel or oil leaks, perform
an engine test and make any repairs including engine replacement, as
necessary. Kia said it is currently developing a Knock Sensor Detection
System software update.

 

Last week, Kia and affiliate Hyundai Motor Co agreed to a record $210
million civil penalty after U.S. auto safety regulators said they failed to
recall 1.6 million vehicles for engine issues in a timely fashion.

 

The Korean automakers agreed to consent orders after the U.S. National
Highway Traffic Safety Administration (NHTSA) said the automakers
inaccurately reported some information to the agency regarding the recalls.

 

Kia’s civil penalty totaled $70 million, including an upfront payment of $27
million, requirements to spend $16 million on specified safety measures, and
a potential $27 million deferred penalty.

 

The settlement covers recalls in 2015 and 2017 for manufacturing issues that
could lead to bearing wear and engine failure.

 

In the new Kia engine recall, NHTSA opened an investigation in 2019 into
non-crash fires in Kia and Hyundai vehicles. The agency in July recommended
Kia conduct recalls on certain models with a higher fire complaint rate, the
automaker said.

 

Kia said “based on NHTSA’s recommendation” it had made the “decision to
recall certain Kia vehicles as a preventative measure to mitigate any
potential fire risk.”

 

Hyundai on Friday recalled 129,000 U.S. vehicles because connecting rod
bearings may wear prematurely, which over time can result in engine damage
and increase fire risks.

 

 

 

Tesla says Black people hold just 4% of its U.S. leadership roles

(Reuters) - Black employees make up just 4% of Tesla Inc’s American
leadership roles and 10% of its total workforce in the country, the electric
carmaker has disclosed in its first U.S. diversity report.

 

Women comprise 17% of the company’s U.S. leadership roles - directors and
vice presidents - and 21% of the overall workforce, according to the report.
The figures for Asian, Black and Hispanic people combined are 33% and 60%.

 

The carmaker noted, though, that leadership roles were a “very small
cohort”, or less than 0.4%, of its workforce.

 

Elon Musk’s Tesla, whose meteoric rise has seen it become the most valuable
auto company in the world and worth about $550 billion, acknowledged the
lack of representation.

 

"We know that our numbers do not represent the deep talent pools of Black
and African American talent that exist in the U.S at every level – from
high-school graduates to professionals," it said in the Diversity, Equity
and Inclusion Impact Report here 2020 published on Friday.

 

“While women are historically underrepresented in the tech and automotive
industries, we recognize we have work to do in this area,” it added.

 

Tesla, based in Palo Alto, California, said it planned to increase
representation of all under-represented groups next year and would be
recruiting at historically Black colleges and universities.

 

Nasdaq Inc filed a proposal with the U.S. Securities and Exchange Commission
on Tuesday that, if approved, would require all Nasdaq-listed companies to
adopt new rules related to board diversity.

 

The rules would require most of the companies to have, or publicly explain
why they do not have, at least two diverse directors, including one who
self-identifies as female and one who self-identifies as either an
underrepresented minority or LGBTQ+.

 

 

 

Bezos says Blue Origin will take the first woman to moon's surface

(Reuters) - Jeff Bezos’ space company Blue Origin will take the first woman
to the moon’s surface, the billionaire said on Friday as NASA nears a
decision to pick its first privately built lunar landers capable of sending
astronauts to the moon by 2024.

 

“This (BE-7) is the engine that will take the first woman to the surface of
the Moon,” Bezos said in a post on Instagram with a video of the engine test
this week at NASA Marshall Space Flight Center in Huntsville, Alabama.

 

The BE-7 engine, which Blue Origin has been developing for years, has
tallied 1,245 seconds of test-fire time and will power the company’s
National Team Human Landing System lunar lander.

 

Blue Origin leads a “national team” as the prime contractor that it
assembled in 2019 to help build its Blue Moon lander. That team includes
Lockheed Martin Corp, Northrop Grumman Corp and Draper.

 

Blue Origin has vied for lucrative government contracts in recent years and
is competing with rival billionaire Elon Musk’s SpaceX and Dynetics, owned
by Leidos Holdings Inc, to win a contract to build NASA’s next human lunar
landing system to ferry humans to the moon in the next decade.

 

In April, NASA awarded a lunar lander development contract to Blue Origin’s
team worth $579 million, as well as two other companies: SpaceX which
received $135 million to help develop its Starship system and Leidos-owned
Dynetics which won $253 million.

 

NASA is poised to pick two of the three companies “in early March” 2021 to
continue building their lander prototypes for crewed missions to the moon
beginning in 2024, an agency spokeswoman has said.

 

But slim funds for the landing systems made available to NASA by Congress,
as well as uncertainty over the incoming Biden administration’s views on
space exploration, have threatened to delay NASA’s decision to advance the
lunar lander contracts.

 

 

 

Lufthansa will have shed 29,000 staff by year end: Bild am Sonntag

BERLIN (Reuters) - Lufthansa will have shed 29,000 staff by the end of the
year and the German airline will cut another 10,000 jobs in its home country
next year as it struggles to cope with the coronavirus, a newspaper reported
on Sunday.

 

The airline and its subsidiaries, Eurowings, Swiss, Austrian and Brussels
Airlines, have slashed their schedules, fleet and staff, with air travel not
expected to recover to pre-pandemic levels before 2025.

 

Citing unnamed company sources, the Bild am Sonntag newspaper said that
Lufthansa would cut 20,000 jobs outside of Germany, while it is also selling
its catering unit LSG, which employs 7,500 people, bringing the total staff
down to 109,000.

 

Next year, a further 10,000 jobs will be cut in Germany. It has already
burned through 3 billion euros ($3.64 billion) of the 9-billion-euro
government bailout it secured earlier in the year, the paper said.

 

Lufthansa has 27,000 too many full-time equivalent staff, Chief Executive
Carsten Spohr said last month, even as the airline promised unions not to
make forced redundancies in return for cuts to bonuses and other payments.

 

A deal to cut costs and save jobs at Lufthansa has won the support of a
majority of the Verdi trade union members who work for the German airline as
ground staff, according to the results of a ballot seen by Reuters on
Friday.

 

A formal announcement is expected on Monday.

 

The deal with Verdi followed months of on-off talks, during which the union
accused management of seeking to cut jobs even after taking a bailout to
keep its planes flying.

 

($1 = 0.8251 euros)

 

 

 

Ivory Coast lifts suspension of Hershey cocoa sustainability schemes

ABIDJAN (Reuters) - Ivory Coast will lift a suspension imposed this week on
cocoa sustainability schemes run by Hershey after the U.S.-based chocolate
maker committed to paying a premium aimed at combating poverty among
farmers.

 

Ivorian and Ghanaian cocoa regulators on Monday suspended the schemes,
alleging Hershey was sourcing large volumes of physical cocoa on the ICE
futures exchange to avoid paying the so-called living income differential
(LID).

 

Hershey, makers of such popular candy items as Hershey chocolate bars,
Hershey’s Kisses and Kit Kat, said it was fully participating in the LID and
would continue to do so.

 

Ivorian regulator, the Coffee and Cocoa council (CCC), has since held a
video meeting with Hershey representatives in which it promised to lift the
suspension, a letter dated Dec. 4 from the CCC to Hershey and seen by
Reuters shows.

 

The move “follows your definitive commitment to pay the LID”, the letter,
whose authenticity was verified by a CCC spokesperson, said.

 

“Our sustainability programs complement and strengthen our shared efforts to
positively impact cocoa-growing communities,” Hershey said, adding it
recognised the importance of the LID.

 

The schemes certify cocoa as sustainably sourced - meaning its production is
free of environmental and human rights abuses, such as using child labour or
being grown in a protected forest.

 

This allows companies to market their chocolate as ethical and charge a
premium for it.

 

Ghana’s cocoa industry regulator, Cocobod, has not yet taken a decision on
whether to lift the suspension, a spokesman said.

 

Ivory Coast and Ghana, which produce two-thirds of the world’s cocoa,
introduced a $400 a tonne LID on cocoa sales for the 2020/21 season, but
have since struggled to sell their beans as chocolate demand has been hit by
the coronavirus crisis.

 

 

 

Sierra Leone: Illegal Fishing Crippling Economy

A group of fishmongers rush towards the dock at Freetown's Funkia Wharf at
the sight of an approaching boat.

 

The boat is one of about half a dozen that went to sea from this wharf in
the west end of the Sierra Leonean capital in 24 hours, according to
Santigie Kargbo, who is visibly happy at the prospect of getting his first
job in two days.

 

Kargbo makes a living these days cleaning fish for people who come to the
wharf to buy for home consumption. He had to sell his boat after failing to
pay a loan he took to buy it.

 

Kargbo says many other fishermen have lost their jobs because those who
owned fishing boats have been forced out of operation due to low fish catch.

The scramble for fish is a sad illustration of this perennial problem, so
much for a country endowed with a vast reserve of marine resources.

 

>From Goderich, where Funkia is, to Tombo in the outskirts of Freetown, to
the southern and northern regions of the country, the complaints of Sierra
Leone's artisanal fishermen are the same -- dwindling fish catch -- and the
anger and frustration is directed at the large industrial fishing trawlers.

 

They say the trawlers encroach into the forbidden 36 km Inshore Exclusive
Zones (IEZ) to fish and, in the event, destroy their nets.

 

The IEZ is an area close to shore that is preserved for small-scale
fishermen, and as a breeding and nursery ground for fish.

 

Invasive foreigners

 

Most fishermen use paddle canoes and small boats with outboard machines. The
size of these boats leave them vulnerable to the effect of the violent sea
waves caused by the larger trawlers.

 

These trawlers are also accused of engaging in a host of illegal fishing
practices, including "pair trawling", that lead to overfishing and
consequent depletion of the country's fish stock.

 

The UN Food and Agriculture Organisation estimates that about 83,000 tonnes
of fish is caught from Sierra Leone's waters annually. But most of this
quantity, according to campaigners, is caught by the foreign-operated
vessels -- mainly Chinese and Koreans -- who sell to foreign markets around
the world, particularly in Europe and the US.

 

Government data show that Sierra Leone loses about $100 million every year
as a result of this phenomenon.-East African.

 

 

 

Kenya Scraps Personal and Corporate Covid-19 Tax Relief Amid Debt Default
Risk

Kenya has terminated part of the tax relief measures extended to cushion
households and businesses from the adverse impact of the Covid-19 in a
desperate move to save an ailing economy closing in on a Ksh9 trillion ($90
billion) debt ceiling, with the risk of debt distress rising to 'high' from
'moderate.'

 

National Treasury Cabinet Secretary Ukur Yatani on Friday issued a statement
saying the corporate tax rate also reverts to 30 percent from 25 percent
while the value added tax (VAT) reverts to 16 percent from 14 per cent.

 

"These are not new tax rates but just a return to the prevailing tax rate
before the pandemic," the Treasury clarified.

 

The government will, however, continue to cushion low-income earners by
retaining 100 percent tax exemption/relief for those earning monthly incomes
of Ksh24,000 ($240) and below.

 

The announcement comes as it emerged that Kenya's risk of debt distress
increased from moderate to high as the government's debt accumulation closes
in on the Ksh9 trillion ($90 billion) ceiling, breaching several debt
sustainability indicators and narrowing the space for additional borrowing.

With close to half of the total revenue collections going towards debt
repayment, Mr Yatani faces an arduous task in financing government
operations and infrastructure development projects.

 

The central bank says the country's risk of debt distress has been
exacerbated by the impact of the pandemic.

 

"The risk of debt distress has increased to high from moderate due to the
impact of Covid-19, exacerbating the existing vulnerabilities.

 

"The rapid pace of debt accumulation has resulted in increased interest and
principal repayments in the past six years. However, revenues and export
earnings have not increased in tandem with debt service. As a result, the
ratio of debt service to exports and debt service to total revenue
increased, signalling potential debt distress," said CBK in its Financial
Stability Report (2019) released last week.

 

Breached indicators

 

Data from the Treasury shows that by August this year the country's stock of
public debt stood at Ksh7.06 trillion ($70.6 billion), accounting for 69.2
per cent of the gross domestic Product, compared to the East African
Community convergence criteria of 50 percent.

 

This $70.6 billion together with committed undisbursed debt of Ksh1.35
billion ($13.5 million) translates to a stock of public debt of Ksh8.41
trillion ($84.1 billion) against a ceiling of Ksh9 trillion ($90 billion)
implying limited space for additional borrowing, according to the National
Treasury's Post-Covid-19 Economic Recovery Strategy (2020-2022).

 

Kenya has already breached the solvency indicator -- present value of the
external debt-to-exports ratio and the liquidity indicator -- external debt
service-to-exports ratio -- which are already above the thresholds,
according to the National Treasury's Quarterly Economic and Budgetary Review
report.-East African.

 

 

 

Nigeria: New Export Rule Leaves Tonnes of Cocoa Beans Trapped at Ports

There are strong indications that federal government's efforts to claw back
some of the foreign-exchange earnings lost to falling oil prices are causing
delays in exports ranging from cocoa beans to cashew nuts, and adding to a
problem the central bank sought to address in the first place.

 

Nigeria is the world's the world's fifth-biggest producer of cocoa beans, a
key ingredient in chocolate. As Africa's largest economy, it also fell into
a recession last quarter.

 

A Bloomberg's report yesterday quoted Pius Ayodele, president of Cocoa
Exporters Association of Nigeria, as saying that about 100,000 tons of cocoa
beans are trapped at the ports and another 100,000 tonnes of a variety of
agricultural commodities are in warehouses around the country, it now takes
an average of 40 days, instead of seven, to get approvals to clear a
container for shipping.

That's after the central bank started insisting on additional documentation
to ensure export proceeds are returned to the country.

 

The documentation process involves Nigerian Export Proceed (NXP) numbers,
Form NXP, which is a mandatory document to be completed by all exporters
through authorised dealer bank for shipment of goods outside Nigeria
irrespective of the value and whether or not payment is involved. Any
customer willing to engage in export business is required to register with
the Nigeria Export Promotion Council.

 

According to the CBN rules, the basic documentary requirements for an export
transaction includes, a duty completed Form NXP, a Proforma Invoice, a Sales
Contract/ Agreement, where applicable, NEPC Registration Certificate,
relevant Certificate of Quality as issued by one or more of the agencies
stated in 1(d)(1)Shipping documents e.g. Bill of Exit, Bill of Lading, etc
and other certificates, e.g. Form EUR-1.

However, in a recent virtual meeting with representatives of some shipping
lines, the CBN Governor, Godwin Emefiele, noted that it has been discovered
that many shipping companies do not comply with the Federal Government's
directives that such shipments carry NXP number.

 

The oil-price plunge is having a biting effect on dollar availability in the
country. While crude contributes less than 10% to Nigeria's gross domestic
product, it accounts for about 90% of foreign-exchange earnings and half of
government revenue.

 

The shortage of hard currency is also adding to the gap between the official
exchange rate and that on the parallel market. That spread, now more than
20%, has created an incentive for exporters to divert dollar proceeds to
unofficial channels.

 

The slowdown in trade flows since October has caused a loss exceeding 500
billion naira ($1.3 billion) in non-oil revenue for exporters, according to
Tola Faseru, president of the National Cashew Association of Nigeria.

 

Some traders have cash-flow problems and default on loans due to the
gridlock at the exporters association's Ayodele said.

 

And while it's a struggle to get shipments out of the country, the 2020-21
cocoa crop in world's fifth-largest producer of the chocolate ingredient
could exceed initial estimates by as much as 27% to reach 270,000 tonnes.

 

Reduced production by global chocolate manufacturers adds to their problems.
Nigerian cocoa sellers are struggling to find buyers willing to enter into
new forward contracts because many factories have shut operations because of
the pandemic, said Mufutau Abolarinwa, president of the Cocoa Association of
Nigeria. International buyers are complaining of heavy stockpiles of unsold
beans, he said.-This Day.

 

 

 

Nigeria: Mitsubishi Launches Virtual Showroom in Nigeria

Visiting a car showroom is just a click away with the newly launched
Massilia Motors virtual showroom displaying Sports Utility Vehicles (SUVs)
and the legendary pick-up.

 

Massilia Motors is the joint venture of the CFAO Group and the Chanrai Group
uniting forces to deliver customer satisfaction. With operations run by the
CFAO group, Massilia Motors is the sole distributor of Mitsubishi Motors in
Nigeria.

 

The Nigerian Line-up includes: ASX, Eclipse Cross, Outlander, Pajero, Pajero
Sport, and the L200 pick-up.

 

The showroom, according to a statement by Massilia, comes with benefits as
it guarantees safety in the face of the covid-19 pandemic, ensuring
potential customers can avoid contact until the last phase of their intended
purchase.

It also enhances convenience because customers are not restricted to the
usual office hours and can take their time to explore the models on display
and specifications without feeling pressured by a sales representative.

 

"Customers are also assured of Ease of Use as the virtual showroom is not
only for the tech-savvy but can be explored by all by just logging on to
www.mitsubishi-motors.com.ng and clicking on the virtual showroom tab.
Exploring a model is as easy as selecting the car of your choice, opening
the door with just one click, and navigating the car in a 360-degree
experience.

 

"Discover the Eclipse Cross, Outlander, Pajero, Pajero Sport, ASX, and the
L200 pick-up.

 

"A virtual showroom is a tool for easier decision making, as a prospective
customer can share the link with family and friends, unlike the physical
visits where only people present can advise.

 

"To enhance interaction with customers, Massilia Motors has also offered a
Whatsapp Business plugin to enable seamless communication with sales
executives."

 

General Manager of Massilia Motors Limited, Mr. Olatunji Itiola, stated that
well-trained sales representatives are available for customers, who want to
make further inquiries, take a test drive or close deals virtually.

 

"With the launch of our virtual showroom, we expect more customers to
explore our models since the challenge associated with physical presence has
been resolved," he stated.-This Day.

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

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Skype:         Bulls.Bears 



 

 

 


 

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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