Major International Business Headlines Brief::: 14 December 2020

Mon Dec 14 10:58:10 CAT 2020

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Major International Business Headlines Brief::: 14 December 2020

ü  Sizewell C: Government in talks to fund £20bn nuclear plant

ü  Honda to resume UK output after problems at ports

ü  Indonesia courts SpaceX as new rocket launch site

ü  Falling plane values, e-commerce rise fuels boom in converting passenger planes to freighters

ü  Stocks hold out hope for vaccine-led recovery, U.S. stimulus

ü  Holiday retail workers seek "temporary lifeline" in warehouse jobs, if they can find one

ü  Reddit to buy TikTok rival Dubsmash

ü  China fines Alibaba, Tencent-backed China Literature for not reporting deals to anti-trust regulators

ü  Electronic Arts to buy UK's Codemasters in deal worth $1.2 billion

ü  EU Commission raises doubts over new Italian media law - paper

ü  Nigerian Economy Faces Threat As States Mull Another Covid-19 Lockdown

ü  Nigeria: Moody's Foresees Negative Outlook for Nigerian Banks, Others in 2021

ü  African Countries Must Be Transparent and Accountable in Managing Sovereign Debt

ü  Kenya: Nairobi Expressway to Be Completed By End of Next Year - CS Macharia

ü  Botswana: Young Farmer Impresses President Masisi

ü  Uganda: Lemon Prices Shoot Up in Western Uganda Thanks to Covid-19

 <http://www.zb.co.zw/> Sizewell C: Government in talks to fund £20bn nuclear plant

The government has begun talks with EDF about the construction of a new £20bn nuclear power plant in Suffolk.

The Sizewell C site could generate 3.2 gigawatts of electricity, enough to provide 7% of the UK's energy needs.

But the project has proved controversial with campaigners saying it is "ridiculously expensive".

The government said any deal would be subject to a range of approvals on areas such as value for money and affordability.

It said negotiations will be dependent on the progress of the Hinkley Point C nuclear energy plant in Somerset which France's EDF is building in partnership with China General Nuclear Power.

If the project proceeds, it could create thousands of new jobs during construction and operation, the government said.

The government has always been clear that it remains committed to new nuclear power to meet its target of net zero emissions by 2050.

With other nuclear projects suffering recent setbacks, and an identical plant already under construction in Somerset, Sizewell was the clear front runner to get approval.

The high cost of big nuclear plants and the plummeting cost of renewables like offshore wind make a £20bn project like this controversial, but the enormous quantities of low carbon non-intermittent electricity it produces is considered by the government to be an essential part of the UK's future energy mix as existing nuclear plants are phased out.

Any final decision to build the plant will be subject to a full regulatory and planning approval process. Some local opposition groups claim the project will damage the surrounding environment and important wildlife habitats, but there is also local support for the number of high quality jobs it will bring to an area which includes areas of high unemployment.

The government has also published its Energy White Paper, which sets out plans to change the UK's energy system as part of the aim of net zero carbon emissions by 2050

It also aims to cut households' bills by including proposals that will mean testing automatically switching consumers to fairer deals to tackle "loyalty penalties".

A programme of retrofitting homes for improved energy efficiency and clean heat is also included.

"Today's plan establishes a decisive and permanent shift away from our dependence on fossil fuels, towards cleaner energy sources that will put our country at the forefront of the global green industrial revolution," said Business and Energy Secretary Alok Sharma.--BBC

Honda to resume UK output after problems at ports

Honda has said its British car plant will restart production on Monday after problems importing parts had halted output since Wednesday.

The Japanese company said in a statement on Sunday it had told staff at its Swindon plant "full production operations will resume in all areas".

Congestion at UK ports and delays in the arrival of ships disrupted Honda's "just-in-time" production schedules.

A number of companies have reported congestion at ports increasing.

Also on Sunday, Ikea apologised to customers after facing stock shortages due to port congestion. Angry shoppers complained they faced delays to orders and could not get through on the retailer's helpline.

The issue at ports has been building in recent weeks, with problems initially at Felixstowe, but recently at Southampton and London Gateway as well.

The backlog has built up as companies increased orders after the initial coronavirus lockdown, while others have looked to stockpile goods before the end of the Brexit transition period on 31 December.

Regardless of whether a trade deal is reached, there is likely to be "significant disruption" at the beginning of next year, according to a House of Lords committee. Some carmakers are thought to have been increasing stocks of components to avoid issues next year.

After last week's temporary halt to production, Honda, which makes the Civic model at Swindon, said it was looking at other arrangements to bring in parts, such as using air freight.

Just-in-time supply chains mean companies bring in components only when they are required, but timetables are vulnerable to disruption.

Congestion at some English container ports is now so bad that some shipping firms have limited the amount of cargo they will bring to the UK. Consignments have reportedly been offloaded at continental ports such as Antwerp, Rotterdam and Zeebrugge.

Honda's Swindon factory built just under 110,000 cars last year, but is due to close permanently next year.--BBC

Indonesia courts SpaceX as new rocket launch site

Indonesia has put itself forward as a possible rocket launch site for Elon Musk's SpaceX venture.

The south-east Asian country is already in talks with Mr Musk's Tesla about a possible electric battery partnership.

According to Indonesia's Coordinating Ministry for Maritime and Investment Affairs, President Joko Widodo has been in discussions with Mr Musk.

The Tesla billionaire is sending a team to Indonesia in January to look at potential investments, it added.

One option to be discussed is building a plant in Central Java.

Indonesia is home to large deposits of copper, nickel and tin, and aims to become the world's biggest producer of electric vehicle batteries.

"Nickel is the biggest challenge for high-volume, long-range batteries! Australia and Canada are doing pretty well. US nickel production is objectively very lame. Indonesia is great!" Mr Musk tweeted earlier this year.

But apart from an investment partnership with Tesla, Mr Widodo also asked Mr Musk to look into the possibility of setting up a space launch station in Indonesia.

"President Joko Widodo invites [Musk] to look into Indonesia as a launching pad for SpaceX," the ministry said.

Indonesia's National Institute of Aeronautics and Space (LAPAN) has plans to construct its first spaceport. It will be located in Biak, on the island of Papua.

Its large-scale aerospace development needs international investors and SpaceX is one of the possible partners it has approached.

media captionMr Musk was delighted with how much the test outing achieved

Tesla already has manufacturing presence in the region through its Shanghai gigafactory. The Chinese plant now makes around 250,000 cars a year.

Mr Musk said it will soon start exporting its Model 3 cars built in the Shanghai factory to Europe.

The US entrepreneur also launched the latest prototype of his Starship vehicle from Texas last week.

Codenamed SN8, the 50m-tall vehicle crashed on touchdown but Mr Musk was delighted with how much the test outing achieved.--BBC

Falling plane values, e-commerce rise fuels boom in converting passenger planes to freighters

SYDNEY/JERUSALEM/MONTREAL (Reuters) - From Air Canada to China’s CDB Aviation, airlines and leasing firms are rushing to permanently convert older passenger jets into freighters, betting on a boom in e-commerce as the value of used planes tumbles amid the pandemic.

That has created a huge opportunity for passenger-to-freighter (P2F) conversion companies, including Singapore Technologies (ST) Engineering Ltd, Israel Aerospace Industries (IAI) and U.S.-based Aeronautical Engineers Inc.

Aviation analytics firm Cirium expects the number of P2F conversions globally will rise by 36% to 90 planes in 2021, and to 109 planes in 2022.

“We estimate that most slots are sold for 2021 and at least 40% for 2022,” Cirium Head of Market Analysis Chris Seymour said. “There is an increase in newer-generation programs, notably the 737-800 and A321 as well as the A330, although older types like the 767 continue to see strong demand, driven in the past few years by Amazon building their own fleet.”

The market value of 15-year-old planes has fallen by 20% to 47% since the start of the year depending on the model, according to advisory firm Ishka, which makes freighter conversions more attractive.

Air Canada is looking to convert several of its Boeing Co 767s, Russia’s S7 Group is acquiring its first 737-800 converted freighters from lessor GECAS, and lessor CDB Aviation has ordered two Airbus SE A330 conversions from ST Engineering’s EFW joint venture with Airbus.

The P2F conversions are a step beyond the cheaper temporary conversions many airlines have implemented during the pandemic, which remove passenger seats to carry more cargo.

Permanent conversions are a financial bet that air freight demand, which was weak before COVID-19, will remain strong for years to come as shoppers turn to e-commerce. The airline industry estimates it will take until 2024 for passenger traffic to recover to 2019 levels.

Freight markets are notoriously volatile, however, and have been beset by extended downturns; shortage can quickly turn into overcapacity, analysts warn.

Normally about half of the world’s cargo is carried in the bellies of passenger planes, but the hit to demand has left the world more reliant on dedicated freighters.

“2020 has seen record high freighter aircraft utilisation, and our view is that the pandemic has accelerated the long-term structural shift towards increased e-commerce demand,” said CDB Aviation chief executive Patrick Hannigan.

Boeing said cargo yields had risen by 40% through September because of the pandemic-related passenger disruptions, and it forecasts more than 60% of freighter deliveries over the next 20 years will be conversions rather than new widebody freighters like the 777. Narrowbody freighters are almost all conversions.

The conversion boom is also helping aviation maintenance, repair and overhaul groups offset some of the lost business from the decline in passenger flights.

Such conversions generally cost millions of dollars on top of the cost of the aircraft and take three to four months, said ST Engineering Aerospace president Jeffrey Lam said.

His company is ramping up capacity, with plans to convert at least 18 A321 planes next year, rising to around 25-30 annually in the future, up from single digits this year.

“We are all booked out for 2021 for aircraft conversions,” Lam said. “The first slots are well into 2022.”

ST Engineering also may add converted freighters to its leasing business, which has focused on passenger planes, he said.

IAI can convert 18 or more 767s a year and produces most of those used by Amazon.com Inc.

“We are investing a lot of effort to meet the market demand,” said Yosef Melamed, general manager of IAI’s aviation group, which is also working on the first-ever P2F conversion of the larger 777-300ER as part of a 15-plane contract with GECAS.

“What happened with the coronavirus outbreak, commercial flights were significantly reduced ... international flights dropped to nearly zero,” he said. “So the only solution for transporting cargo, and with the trend that people are staying at home ordering online, is cargo planes.”

U.S.-based Aeronautical Engineers is also seeing a dramatic increase in demand for conversions, said Robert Convey, its senior vice president for sales and marketing, citing a 30-40% fall in the value of planes.

“We’re seeing younger and younger aircraft being converted due to the large number of passenger aircraft that have been grounded and are not likely to return to service in the near future,” he said.

Grant Stevens, vice president of corporate services at Canada’s KF Aerospace, said increased demand for P2F conversions, which grew from about 10% of its business before the pandemic to about half today, has helped offset a decline in requests for aircraft maintenance.

“We have been able to employ most of our staff by doing conversions,” he said.

Stocks hold out hope for vaccine-led recovery, U.S. stimulus

SYDNEY (Reuters) - Stocks began a busy week with guarded gains as investors gauged the chance of added U.S. fiscal and monetary stimulus, while the British pound rose in relief as a last-gasp extension to Brexit talks dodged a hard divorce.

Progress on coronavirus vaccines cheered risk sentiment, with the first shipments speeding across the United States as part of an historic mission to inoculate more than 100 million people by the end of March.

“The vaccine has and will likely continue to provide a tailwind to the market that is allowing investors to look beyond record case levels, hospitalisations, and deaths,” said analysts at JPMorgan in a note.

E-Mini futures for the S&P 500 responded by rising 0.5%, while March Treasury bond futures slipped 4 ticks. EUROSTOXX 50 futures added 0.5% and FTSE futures 0.1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1%, having hit a string of record highs last week.

Japan’s Nikkei rose 0.5% as a survey showed the mood among hard-hit Japanese businesses had improved in the December quarter.

Sterling firmed on both the euro and the dollar after Britain and the European Union agreed to continue talks on post-Brexit trade beyond Sunday’s deadline.

Against the dollar, the pound rose 0.7% to $1.3321 and away from Friday’s close of $1.3222. The euro slipped 0.5% to 91.09 pence, off a three-month top of 92.29.

“Our base case remains that a ‘thin’ free trade agreement will be reached before the end of the year,” analysts at Goldman Sachs wrote in a note.

“That said, there is plenty of uncertainty and our economists, given the lack of progress in recent weeks, now see rising risks of a no-deal outcome.”

That could see the euro climb to 96.00 pence, while a deal could send the pound rallying to 87.00 per euro, Goldman predicted.

RISK OF FED TWIST

The single currency has already been charging hard against the U.S. dollar, which many analysts believe has entered a cyclical downtrend as the prospect of a vaccine-driven global economic recovery lessens the need for safe havens.

The euro was up 0.2% on Monday at $1.2134 and within striking distance of its recent 31-month top of $1.2177. The dollar index stood at 90.797, near its recent trough of 90.471.

An added hurdle for the dollar will be the Federal Reserve’s policy meeting on Dec. 15-16. The market is assuming the central bank will merely refine its forward guidance on policy rather than buying more bonds or “twisting” its portfolio to add more longer-dated debt.

“The risk is then if the Fed does unveil a surprise twist at this meeting, then Treasuries could rally and the USD could fall,” said Tapas Strickland, a director of economics at NAB.

An extra wrinkle is the chance of a U.S. deal on fiscal stimulus after a top Democrat hinted they might compromise to get an agreement past Republican objections.

Reuters reported the $908 billion relief plan will be split in two in an effort to win approval and could be introduced as early as Monday.

All the talk of stimulus has helped put a floor under gold, leaving it a shade lower at $1,836 an ounce. Considered a hedge against inflation and currency debasement, gold has gained more than 21% this year.

Oil prices moved higher on Monday having now rallied for six weeks straight as investors priced in a global recovery next year.

U.S. crude firmed 33 cents to $46.90 a barrel, while Brent crude futures rose 39 cents to $50.36.

Holiday retail workers seek "temporary lifeline" in warehouse jobs, if they can find one

(Reuters) - This time of year, hundreds of thousands of seasonal retail workers across North America and Europe would usually be wrapping gifts, stirring hot chocolates, tidying Christmas displays or assisting the flurry of last-minute shoppers.

But the balance of available holiday jobs this year has radically shifted from storefront to warehouse and delivery amid record purchases online. And with millions of retail workers in the United States and Europe already laid-off, competition for what remaining jobs are left is fierce, economists say.

The supply of available holiday jobs in U.S. customer-facing retail fell by a third to 302,100 this year from around 466,400 jobs last November, data from the Bureau of Labour Statistics gathered by consultancy Challenger, Gray & Christmas showed.

Macy’s Inc cut seasonal hires to 25,000 this year from 80,000 in 2019. JC Penney Company Inc, narrowly rescued from bankruptcy in early November, is hiring just 1,700 people in contrast to 37,000 last year. For a graphic, click here ‘Tis the season: Fewer retail jobs up for grabs.

Meanwhile, applications for U.S. storefront retail positions have jumped by around 34% year-on-year, according to November data from jobs site Glassdoor.

Kayla Frederick, 31, was laid off from her position as leasing assistant for a tour bus company in Florence, Alabama in April as venues closed and tours were cancelled because of the pandemic. In November, she started her first ever seasonal job in a local clothing boutique’s warehouse, pulling online orders, folding inventory and tagging intake items.

“I never expected to be laid off this long,” Frederick said. “I’m thankful this gave me a job.”

In Europe, data from jobs sites like Indeed, Adzuna, Student Jobs and CV Library paints a similar picture of lower vacancies and rising applications. The number of available seasonal jobs in the UK was down by a third year-on-year in November to 13,600, according to Adzuna data.

CV Library reported a 60% drop in the number of customer-facing retail jobs listed in the UK compared to last year – but clicks per job have doubled. In Germany and the UK, sales associates at jobs site Student Jobs reported increased contact from frustrated students not hearing back from companies inundated in applications.

Data from Indeed in the UK showed a jump of around a third in clicks per posting on seasonal jobs this year compared to last, according to a report by Indeed’s UK in-house economist Jack Kennedy.

“Jobseekers may be looking at Christmas jobs as a potential temporary lifeline as job losses mount,” Kennedy wrote.

‘NEW WORLD OF RETAIL’

UK postal service Royal Mail increased its seasonal hires to 33,000 this year from 20,000 in 2019, while FedEx Corp in the U.S. hired a quarter more seasonal workers, taking total hires to 70,000 from 55,000, labour statistics bureau data showed.

“This is likely a window into the new world of retail,” Daniel Zhao, senior economist at Glassdoor, said. “What was done out of necessity during a pandemic is likely to become an annual online shopping tradition for future holidays.”

Glassdoor saw a 120% year-on-year increase in applications for e-commerce roles like delivery drivers, warehouse workers and order pickers in the United States and a 45% jump in the UK.

Oscar Jiminez, a twenty-two year old college senior in Southern California, is among the lucky ones. He landed seasonal employment in October in a gig he believed would have him working as a customer service agent on an “essential” retailers’ sales floor. But he found himself in a warehouse at the back of the store instead.

“This wasn’t exactly in my job description.” Jiminez said. “So far I’ve been picking orders, going around the store, finding things people purchased online and getting them ready for curbside pickup, ship-to-home... I’m constantly on the move.”

Some supermarkets are also pushing up hiring. In the UK, British supermarket Tesco posted 2,000 more seasonal vacancies than last year. It posted its seasonal vacancies on student jobs site E4S a month later than usual because of lockdown uncertainty, but still received over twice as many applications, according to website data.

German supermarket giant Lidl took on 2,400 apprentices this year in Germany, 40% higher than last year’s intake. Lidl and Amazon.com Inc were already boosting their staff by a significant amount throughout the year to deal with the surge in demand, reducing the need for temporary seasonal hires, the companies said.

Amazon hired just 100,000 seasonal staff this year in the United States, half last year’s total of 200,000, because it had already boosted operational hires by 275,000 throughout the year, it said in September.

Lidl took an opportunistic approach to finding candidates this season in Germany, where a partial lockdown is likely to be toughened in coming days. “Bar work is so yesterday,” read a November 30 recruitment ad. “Look forward to a secure job for €12.50 an hour - switch industries and get into retail.”

Lidl pulled the ad within a day after backlash from the gastronomy sector on social media, it told Reuters, apologizing for the distress the message caused. It declined to say how many new positions it had on offer.

Reddit to buy TikTok rival Dubsmash

(Reuters) - Social network firm Reddit said here on Sunday it would buy short-video platform Dubsmash, becoming the latest company to expand in a space dominated by Chinese-owned TikTok.

The financial terms of the deal were not disclosed, but a spokeswoman for Reddit said the acquisition was based on a combination of cash and stock.

The success of ByteDance’s TikTok has prompted many social media companies to add short-video services to their platforms, with Snapchat Inc rolling out “Spotlight” in November and Facebook Inc launching “Instagram Reels” earlier this year.

Reddit said in a blog post that the deal would give its users, who can already upload and stream videos, access to Dubsmash’s editing and short-video creation tools.

The San Francisco-based company added that Dubsmash would maintain its own platform and brand.

Dubsmash’s entire team, including co-founders Suchit Dash, Jonas Drüppel and Tim Specht, will join Reddit.

China fines Alibaba, Tencent-backed China Literature for not reporting deals to anti-trust regulators

SHANGHAI (Reuters) - China’s market regulator said on Monday it fined Alibaba Group, Tencent Holdings-backed China Literature and Shenzhen Hive Box 500,000 yuan ($76,464.29) each for not reporting deals properly for anti-trust reviews.

The State Administration of Market Regulation (SAMR) said it had taken the decision after reviewing deals by the firms, including Alibaba’s deal with Intime Retail (Group) Co Ltd, China Literature’s acquisition of New Classics Media, and Shenzhen Hive Box’s acquisition of China Post Smart Logistics.

Hive Box’s backers include logistics giant S.F. Holding Co.

Hong Kong-listed shares of Tencent and Alibaba fell in afternoon trade after the news, with Alibaba last down 2.5% at a three-week low and Tencent down 2.8% at a two-week low. The broader market fell half a percent.

China has vowed to strengthen oversight of its big tech giants, citing concerns that they have over the years managed to build monopolies that curb competition and have amassed power to misuse consumer data and violate consumer rights.

Last month, Beijing issued draft rules aimed at preventing monopolistic behaviour by internet companies, which was seen as China’s first serious regulatory move against the sector.

The SAMR warned in a separate statement that “the Internet industry is not outside the oversight of anti-monopoly law”, and urged all companies to strictly abide by laws and regulations and maintain fair market competition.

China market regulator investigates merger between Douyu and Huya

“The fines of the three cases is a signal to society that anti-monopoly supervision in the Internet field will be strengthened,” the SAMR said.

Alibaba invested $692 million in Intime in 2014 and led a $2.6 billion bid in 2017 to privatise Intime, which operated 29 department stores and 17 shopping malls in China.

China Literature announced in August 2018 that it would acquire 100% of New Classics Media.

($1 = 6.5390 Chinese yuan)

Electronic Arts to buy UK's Codemasters in deal worth $1.2 billion

(Reuters) - Computer games firm Electronic Arts said on Monday it had reached an agreement to buy Codemasters in a deal worth $1.2 billion, trumping an earlier agreement between the British company and rival Take-Two Interactive Software.

Under the deal, Codemasters shareholders will receive 604 pence per share, representing a premium of 13.1% to the last closing price of the company’s shares.

The deal price is also higher than the 485 pence per share Take-Two had offered for Codemasters last month.

Take-Two did not immediately respond to a request for comment.

Codemasters, which is known for its Formula One games for the Playstation 4, said its board considers the EA offer to be superior to the Take-Two proposal.

EU Commission raises doubts over new Italian media law - paper

ROME (Reuters) - The European Commission last week raised questions over the validity of a recently approved Italian media law, which could potentially curb French group Vivendi’s interests in the country, daily la Repubblica reported on Monday.

In a letter sent to Italy’s Industry Ministry on Friday, the Commission said the law was not notified to Brussels, making it potentially inapplicable, according to the la Repubblica report.

The new rule could be “incoherent with European treaties,” the report said, citing the document.

Last month, Italy approved stop-gap legislation allowing national communications regulator AGCOM to start a probe into Vivendi’s Italian assets, to evaluate whether these holdings are harmful to media plurality.

Vivendi, controlled by billionaire Vincent Bollore, holds a 29% stake in Italy’s top commercial broadcaster Mediaset, and is also top investor in former phone monopolist Telecom Italia (TIM) with a 24% holding.

The new law could help Mediaset - controlled by the family of former Prime Minister Silvio Berlusconi- in a long-running dispute with its second-largest shareholder Vivendi.

The two groups have been locked in a fight since 2016 when Vivendi ditched an accord to buy Mediaset’s pay-TV unit and built its 29% stake, which the Italian broadcaster considers hostile. Attempts to reach a compromise have been unsuccessful so far.

Nigerian Economy Faces Threat As States Mull Another Covid-19 Lockdown

Lagos — Despite the current recession, the economy may be further threatened as some states plan various forms of lockdown due to the rising second wave of the COVID-19 pandemic.

The Public Health Advisory published on the website of the Nigeria Centre for Disease Control (NCDC) on Friday shows there is an increase in COVID-19 cases.

As of Thursday, over 71,000 confirmed cases and 1,190 deaths had been reported across the 36 states and the Federal Capital Territory (FCT).

The NCDC said "Since the beginning of September to the end of November 2020, Nigeria has recorded a gradual increase in the number of confirmed COVID-19 cases in the country.

"However, in the last week (30th of November to the 6th of December) our surveillance system has recorded a sharp increase in cases."

The advisory analysis shows that the increase is continual in 23 states in the country. The majority (73%) of the cases detected were in Lagos, Kaduna and FCT. Eight of the 23 states reported a record high number of weekly cases last week.

Large parts of Europe are in a second lockdown as a new wave of infection sweeps through the continent.

Taskforce raises alarm

Chairman of the Presidential Task Force (PTF) on the Coronavirus disease (COVID-19) and Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, has also decried the rising cases.

He noted that other countries are already experiencing some form of lockdowns in the second wave of the pandemic.

The Minister of Health, Dr Osagie Ehanire, in a presentation recently said, "The evolving global situation of COVID-19 gives us much reason for concern. Over 2.8 million cases were reported in the last one week, with half of the cases in Europe."

Lagos, Kaduna mull lockdown

Governor Nasir el-Rufai of Kaduna State has expressed concern over the rising cases of COVID-19 and has threatened to impose a second lockdown if the trend continues.

El-Rufai said he was worried that the rate of infections will soon overwhelm the state's health system if nothing is done urgently to contain the spread of the virus.

Kaduna State has so far recorded 30 percent new COVID-19 infections daily in the last two months, records showed.

The Lagos State government has also warned residents that the continuous flagrant disregard of COVID-19 protocols and safety guidelines by citizens could lead to a second wave of new infections in Lagos and subsequent lockdown.

Governor Babajide Sanwo-Olu also contracted the virus and is receiving treatment.

The Lagos Commissioner for Health, Prof. Akin Abayomi warned that resurgence of cases in Lagos could also lead to the reversal of the measures in place.

The International Food Policy Research Institute (IFPRI) in a recent paper which analyzed the economic impacts of the COVID-19 pandemic, estimate that during the lockdown, Nigeria's Gross a domestic Product (GDP) suffered a 34.1 per cent loss due to COVID-19, amounting to $16 billion, with two-thirds of the losses coming from the services sector.

The report also noted that the agriculture sector, which serves as the primary means of livelihood for most Nigerians, suffered 13.1 per cent loss in output ($1.2bn).

"We estimate that households lost on average 33 per cent of their incomes during the period, with the heaviest losses occurring for rural non-farm and for urban households. The economic impacts of COVID-19 include a 14-percentage point temporary increase in the poverty headcount rate for Nigeria, implying that 27 million additional people fell below the poverty line during lockdown," it added.

Lockdown may worsen economy - Experts, CBN

Nigeria is in recession with 14 per cent inflation rate after two consecutive quarters of negative growth. The economy is expected to recover early 2021 with current measures. However, experts who spoke with Daily Trust said the planned lockdown by some states may worsen the economy and delay the recovery period.

Chairman of the Foundation for Economic Research and Training in Lagos, Prof. Akpan Hogan Ekpo said: "We cannot afford another phase of lockdown. It will completely kill the economy. It will be disastrous for households, families and businesses.

"Our economy is not a productive economy. A lot of people depend on the informal sector. They practically live from what they earn daily. What we urgently need is social restrictions.

"Government should enforce the wearing of masks; prohibit gatherings to not more than 20. We have to stop these weddings and parties where people behave as if there is no COVID-19."

Director General of the Lagos Chamber of Commerce and industry (LCCI) Dr Muda Yusuf said a second lockdown is not advisable.

"The social and economic environment is too fragile to withstand the shock of another lockdown. What needs to happen is to intensify the sensitisation and awareness on COVID protocols. Some subtle enforcement should also be put in place."

An economist, Dr. Ifediora Amobi, said the first lockdown did not achieve the desired results because it was terribly abused by the same people that were tasked to ensure its effectiveness.

De Amobi said any state government that wants a second lockdown should do it on their own as long as their State House of Assembly approves it.

"Any attempt at another national lockdown will be catastrophic to the livelihood of the Nigerian family, to business profits, and to the national economy," he said.

Governor of the Central Bank of Nigeria, Godwin Emefiele, has also spoken about this. Responding to Daily Trust enquiry at a recent briefing, he said: "We have seen second and even third phases of the pandemic, and they have been handled in different ways.

"You would observe that most countries are very reluctant in locking down their economies again. They are doing some form of selective retractions on movement and all that but not an entire lockdown that would deeply hurt the fabric of the economic activities in the nation.

"We would see what can be done if there is need for some more support in case there is what I can call a restriction. But an entire lockdown, like what we had for about six to eight weeks, the private sector will be averse to that," he noted citing the efforts of CACOVID, a private sector group that intervened during the first lockdown.

"We will work with PTF if there is a second wave in Nigeria, God forbid it, on how things can be done in a way that does not result in total lockdown with adverse effect on our economy," Emefiele said.-Daily Trust.

Nigeria: Moody's Foresees Negative Outlook for Nigerian Banks, Others in 2021

The outlook for Nigeria's banking sector and for banks in Africa will remain negative into 2021 amid difficult operating conditions and sovereign pressures straining banks' credit profiles, Moody's Investors Service stated in its recent report.

Specifically, it predicted that South African and Nigerian banks would face acute macro challenges, while loan quality and liquidity would be the main issues for Angolan and Tunisian banks, respectively.

On the other hand, it stated that East African and Francophone West African banks are better placed than Central African banks to weather the pandemic, given their more resilient economies, with Egyptian banks facing the least impact.

Overall, banks' financial stability in the region would be broadly maintained.

"Stable local currency deposit funding, high liquidity in local currency, good capital buffers, and gradual improvements in risk management will help to contain banks' risk over the next 12 to 18 month," Moody's added.

According to the rating agency, loan quality, profitability, and foreign currency liquidity would be the main stress points next year for banks in the continent, although stable funding and capital could limit the impact.

It noted in the report that difficult operating conditions were expected to persist for African sovereigns, with the resulting pressures also weighing on banks' credit profiles.

Furthermore, it stated that the economic slowdown in the continent would hamper banks' performance, stating that governments' ability to provide support remains impaired.

Furthermore, banks will remain heavily invested in government securities, which further reinforces the close credit linkages between banks and their respective sovereigns, Moody's added.

"Our outlook for African banks remains negative as we head into 2021, with the difficult operating conditions and banks' close links to their sovereigns being the key driving factors," Senior Vice President at Moody's Investors Service, Constantinos Kypreos said.

Kypreos added: "Heading into next year, we expect nonperforming loans (NPLs) to potentially double from 2019 levels as payment holidays expire, while increased provisioning needs, reduced business generation, and margin pressure will erode banks' profitability."-This Day.

African Countries Must Be Transparent and Accountable in Managing Sovereign Debt

Addis Ababa — African countries must be more transparent and accountable when managing sovereign debt amid rising concerns of impending debt distress engulfing the continent. Experts issued the warning on Thursday during a special session on the final day of this year's African Economic Conference (AEC).

This comes partly because public external debt in sub-Saharan Africa is on the rise. According to World Bank data, 18 countries are at high risk of debt distress - a number that has more than doubled since 2013 - while eight countries are already in distress. The COVID-19 pandemic has worsened the situation.

The experts, representing governmental bodies, development finance institutions, civil society and international think-tanks, were discussing "Harnessing Africa's on-going initiatives to better prepare for future emergencies". The conference, held virtually for the first time, was themed, "Africa beyond COVID-19: Acceleration towards inclusive and sustainable development."

Speaking at the session, Dr. Misheck Mutize, Head of Credit Ratings Department, African Peer Review Mechanism, observed that the COVID-19 pandemic had complicated the current difficult position where countries had already accumulated debt. Now, faced with increasing financing needs for healthcare and reviving the economy, the debt burden is rising.

"The countries give a skeleton of information about why they are borrowing. There is a need for transparency when countries are taking on sovereign debt," Dr. Mutize said.

He pointed out that the issue is not about how much debt has been accumulated, but rather the high servicing cost driven by higher borrowing rates.

This, he noted, is linked to a lack of transparency as many African countries are reluctant to get credit ratings, which provide investors with specific insights into the creditworthiness or the ability to repay, and the level of default risk associated with investing in a particular economy.

"The continent cannot afford to continue borrowing at very high-interest rates," Dr. Mutize said, adding that countries also tend to borrow short-term for long-term projects, including infrastructure projects which are not viable in the short-term, making it difficult to repay.

Theo Chiviru, Team Lead for Africa and Asia, Open Government Partnership, reiterated calls for transparency, pointing out that there is still a lot of secrecy around borrowing and how debt is managed on the continent.

"African citizens need to know there is a need for public oversight over the money borrowed and how the funds are spent. An open government approach is a vital tool in achieving inclusive and sustainable growth," he said.

Chiviru added that fair taxation policies would be critical to protecting the most vulnerable and marginalized, who continue to be disproportionately taxed by consumption taxes.

Elizabeth Ampairwe, Programmes Director, Women and Leadership, Forum for Women in Democracy, Uganda, highlighted the need to appreciate that women have disproportionately been affected by the pandemic due to their multiple roles as frontline workers such as nurses and caregivers.

Hence, there is a need to allocate more resources to help women and craft gender-inclusive policies. Failure to address this, she argued, will see African governments risk reversing gains in gender equality and parity.

Henry Kilonzo, Senior Manager, Foundations Programmes, Safaricom in Kenya, noted that the pandemic had provided the telecom sector with an opportunity to innovate, enabling cashless transactions, micro-credit to the most vulnerable and increased bandwidth coverage to facilitate remote work and learning.

To sustain the momentum, he urged governments to scale up infrastructure investments to improve connectivity to address the existing inequality, which is a threat to inclusive growth.- UNECA.

Kenya: Nairobi Expressway to Be Completed By End of Next Year - CS Macharia

In a years' time, the Nairobi skyline will include a spanking new 27.1-kilometre expressway.

By this time, the project, which is being done by the China Road and Bridge Corporation (CRBC), is expected to have been completed. The road that will link the Jomo Kenyatta International Airport (JKIA) to Nairobi-Nakuru highway is already 15 percent complete.

This was disclosed by Transport Cabinet Secretary James Macharia on Friday during an inspection tour. It was initially to be completed December 2022 but has now been moved to December 2021.

"We want to gift Kenyans this facility as soon as possible, so we discussed with them (contractor) to reduce the time. They first reduced to two and half years, but now we have agreed with them to try and finish the main structures by December 2021," said the CS.

According to Mr Macharia, the Nairobi Expressway project is a very critical piece of infrastructure because it is a link between east of the country and the west. The project will be extended all the way to Machakos.

He added that the country should not lag behind as others progress.

"Most cities are making a lot of infrastructural investment to attract new investors and we do not want to be left behind. We are seeing this project as an integral part of not just our transport system but overall infrastructural development and that is why we are doing it in conjunction with what is happening at the Jomo Kenyatta International Airport and the railway system."

Benefits

The contractor has installed over 69 pillars and earthworks along the stretch. A section of the road from Mlolongo all the way to NextGen Mall, a distance of 18.2 kilometres and which is ongoing, will be a flatbed road, while the section from Nextgen Mall through the City-Centre to St Marks church, covering 8.2 kilometres, will be elevated.

The project has seen over 2,000 Kenyans benefit so far from skilled and unskilled employment opportunities. It is expected to considerably ease traffic flow on the Mlolongo-James Gichuru A8 section and to eventually reduce travel time through Nairobi.

Motorists plying the Sh62 billion highway will be charged between Sh200 to Sh300 in toll fees.

"The private company will be granted a concession to build, operate and transfer the project for 30 years that includes a construction period of three years and thereafter an operation and maintenance period of 27 years," the Kenya National Highways Authority (Kenha) said.

According to Kenha Director-General Peter Mundinia, upon completion, it will see motorists take only 20 minutes to drive across the city from Mlolongo to Rironi near Limuru, through Westlands.

The Nairobi Expressway involves a four-lane and six-lane dual carriageway within the existing median of Mombasa Road/Uhuru Highway/Waiyaki Way and 10 interchanges.

The toll charges will be kept in a special fund to finance maintenance of the highways and repayment of other roads built by private contractors but fail to generate enough funds to pay investors due to low number of users.-Nation.

Botswana: Young Farmer Impresses President Masisi

Kgantshang — It was a dream come true for 36-year-old Mr Joseph Murangi who has been struggling for years to buy a high breed buck to improve his small stock farming.

The young farmer who owns a small stock farm at Kgantsang could not believe it when President Dr Mokgweetsi Masisi delivered a high breed buck at his Modern Way Goat Farm situated 10km from Maun along the Ghanzi road on Saturday.

Mr Murangi who specialises in the rearing of sheep and goats was speechless and emotional as he received his gift.

The young farmer is reported to have raised a good number of goats and sheep through LIMID programme with the number of his stock currently at 38 sheep and 60 goats.

Speaking during the handing over, President Masisi motivated him to soldier on as the donation was meant to help him grow into a renowned commercial farmer and to eventually support others.

He explained that the breed, which is a mixture of a boer and Saanen would improve his breed.

President Masisi was also impressed to learn that the youthful farmer took advantage of several government initiatives such as LIMID, ISPAAD and Youth Development Fund (YDF) to expand his project.

He explained that the country was striving to move from a middle-income economy to a high-income economy hence his initiative to support those who realised that agriculture could butter their daily bread.

He appreciated that what they were doing was in line with vision 2036 pillars.

Earlier on, Dr Ramosamo Rancheke from the department of Agriculture told the President and his entourage that the youthful farmer started small stock farming at the age 22 as he grew up in a family passionate about farming.

The young farmer was said to have started with beekeeping but the project failed along the way and he applied for LIMID programme in 2010.

He was assisted with ten goats and ten sheep which he managed well and multiplied.

In 2013, Mr Murangi's stock was affected by stable fly (lethobo) outbreak which left him with 15 animals.

Dr Rancheke said later he applied for YDF and was funded to the tune of P100 000 and managed to restock while part of the money was invested in developing the farm.

During 2017/18 financial year, Mr Murangi managed to fence his farm through assistance from ISPAAD, he said, adding that he also applied for LIMID again to buy hammer mill machinery.

The youthful farmer is reported to have started horticulture production to boost his income generation.

For his part, Mr Murangi thanked the President for the noble gesture noting that the buck would indeed sustain his production as he had longed to own a high breed to improve his herd.

"I don't know how to thank you, my President, because you made my dream come true," he said with a soft voice and teary eyes.

He assured the President that he would not disappoint him as he would look after the buck.

The assistant minister of Agricultural Development and Food Security, Ms Beauty Manake appreciated Mr Murangi's commitment towards farming.

She said most young people were reluctant to tap into farming opportunities because they lacked commitment while some believed that agriculture was meant for elderly people.

She said it was impressive to see young people coming forth and taking advantage of available government programmes to reduce the high unemployment rate.-Botswana Daily News.

Uganda: Lemon Prices Shoot Up in Western Uganda Thanks to Covid-19

The demand and price of lemons have shot up across food markets in Kasese and Bunyangabu districts in western Uganda. With the belief by local residents that lemons boost their immunity against the coronavirus (COVID-19), more people are now including lemons on their groceries shopping list.

In Kasese municipality, Shs 2,000 can buy between three and four small lemons. A piece of lemon costs Shs 500 and the case isn't any different in Rwimi town council in Bunyangabu district, which is already faced with the scarcity of lemons. Previously, Shs 500 would buy 3-5 lemons.

Rose Kemigisha, a vendor outside Kasese main market, says the demand for lemon and ginger is now higher compared to May this year. She says most of her customers believe lemons and ginger offer natural protection against coronavirus.

"Even right now, I'm just left with a few to sell, people are demanding for lemon like never before," Kemigisha said.

Annet Masiika, a vendor in Mawa market in Nyamwamba division sells a small piece of lemon at Shs 500. She says prior to the COVID-19 outbreak in the country, only a handful of vendors were selling lemons because of low demand. She, however, says this has suddenly changed because of increased demand for the lemons.

Shafik Bitaijukae, a fruits vendor in Rwimi town council, says most of his clients demand that he includes a piece of lemon in their shopping package. David Masereka, a boda boda rider at Kisanyarazi stage, says he has started taking lemon daily after being advised by friends that it can help in the fight against COVID-19.

Masereka says he is at a higher risk of contracting coronavirus because he interacts with various people due to the nature of his work. He, however, said lemons have now become so costly.

"Right here you can't get lemons, you have to buy them from town and even there, they are very expensive for small earners like me," said Masereka.

Dr. James Muliwabyo, the in-charge Kasese Municipal health centre III, says contrary to common belief, lemons haven't been scientifically proved to heal COVID-19. He, however, says the fruits may limit the duration of the common colds in some people. Citrus fruits like lemons are high in vitamin C and have primary antioxidants that help protect cells from damaging free radicals.

Former presidential candidate and opposition Forum for Democratic Change, Rtd. Col Kizza Besigye posted on his social media platforms that one's immunity and fight against coronavirus can be boosted by taking 2 spoons every 8 hours a concoction made from ginger, red pepper, lemons, garlic, onion - all blended together with water.

The World Health Organisation (WHO) recommends wearing of facemasks, social distancing, handwashing and sanitizing of surfaces as the core preventive measures against the coronavirus which continues to ravage the entire world.

Uganda which is now in level 4 (high level) of the pandemic, as of Saturday, December 12 registered 27,071 cumulative confirmed coronavirus cases, 220 deaths and 9,744 recoveries. The country's already sick healthcare has been overstretched with at least 100 coronavirus patients admitted in intensive care units with acute symptoms.-Observer.

Invest Wisely!

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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.

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