Major International Business Headlines Brief::: 23 December 2020

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Major International Business Headlines Brief::: 23 December 2020

 


 

 

	
 


 

 


ü  Redundancy plans fall after furlough extension

ü  Elon Musk says Apple's boss snubbed takeover deal

ü  How dependent is the UK on the EU for food?

ü  US sues Walmart for alleged role in opioid crisis

ü  Ports chaos 'bad for trust and post-Brexit trade'

ü  Air charter firms see demand surge as companies bid to beat blockages

ü  UK borrowing hits highest November level on record

ü  Tesco puts buying caps on several products

ü  US blacklists companies with possible military ties

ü  Nigeria Has the Highest Number of Poor People Living With Less Than $1.90
a Day - Financial Times

ü  Uganda's Dairy Industry Suffers From Kenyan Ban

ü  Rwandan Entrepreneur Wins Big At 2020 UN Youth Contest

ü  Malawi: Chilima Commends Malawi University of Science for Innovative
Projects - to Produce Electricity

ü  Gambia: Smart Construction Launches Social Housing Project

 


 

 


Redundancy plans fall after furlough extension

November saw the lowest number of planned redundancies in Britain since
Covid lockdowns began, according to Insolvency Service data.

 

In total 36,700 redundancies were proposed last month, down from a peak of
156,000 in June.

 

The figures suggest that the chancellor's decision to extend the furlough
scheme to the spring has helped to protect jobs.

 

The data was released in response to a BBC Freedom of Information request.

 

November saw a lockdown imposed across all of England, and restrictions in
force in Wales and Scotland, as coronavirus levels rose.

 

Though many businesses have been unable to trade during that time, there has
not been a spike in redundancies like the one seen after the first lockdown.

 

November's figure was up 32% on the same month last year, but far below the
peaks seen in the summer.

 

Planned redundancies. Proposed dismissals submitted. Graph of proposed
redundancies by month from March to November 2020, with 2019 figures for
comparison  England, Scotland and Wales.

 

The numbers provide "encouragement that there will be a steady trickle,
rather than a tsunami, of job losses over the next few months," said Ruth
Gregory, senior UK economist at the Capital Economics consultancy.

 

Sainsbury's, Gregg's, John Lewis and Edinburgh Woollen Mill were among the
companies to announce job cuts in November.

 

However, the closures of the big retailers Arcadia and Debenhams, affecting
25,000 jobs, were most likely too late to be included in November's figures.

 

Some 550 employers notified government of plans to cut 20 or more jobs, the
lowest figure since April, but still 80% higher than last November.
Employers cutting fewer than 20 don't have to notify government.

 

Employers planning 20 or more redundancies. HR1 forms submitted. Graph of
the number of HR1 forms notifying redundancy plans submitted by month from
March to November 2020 with 2019 figures for comparison England, Scotland
and Wales.

 

Furlough scheme extension helps to keep redundancies low

The last day of October was meant to see the end of the furlough scheme,
where government pays most of a worker's wages when their employer cannot.

 

Fearing a big rise in job losses if the scheme ended while much of the
country was in lockdown, the chancellor extended it until 30 April.

 

Together with other official data, the redundancy numbers suggest that "the
government's furlough scheme has minimised the labour market damage from
Covid-19 so far," says Ms Gregory.

 

Next year, employers still have to contend with the economic consequences of
the fast-spreading new variant of the coronavirus, which has seen
restrictions brought in over Christmas and more than 40 countries close
their borders to UK visitors.

 

There is also the possibility of disruption following a no-deal Brexit,
which "is probably the greatest risk, as it could lead to redundancies in
firms and sectors that had been less impacted by the pandemic," said Tony
Wilson, director of the Institute for Employment Studies.

 

A government spokesperson said: "We understand the pressure businesses and
individuals are currently under which is why we're helping them through the
pandemic with a £280bn support package, which is among the most generous in
the world."

 

Insolvency Service data gives an early view of jobs market

Employers are obliged to notify the Insolvency Service when they plan to
make 20 or more workers redundant using a form called HR1.

 

These are filed at the start of the redundancy process, so these figures
indicate what is happening months ahead of the redundancy data collected by
the Office for National Statistics (ONS).

 

ONS data showed a record rise in redundancies in the period from August to
October, to hit 370,000, a record level.

 

This was foreshadowed in Insolvency Service redundancy figures for June and
July, which were the highest seen on records going back to 2006.

 

The total number of planned redundancies will be higher than the figures
compiled by the Insolvency Service, as it doesn't include firms cutting
fewer than 20 posts.

 

However, individual employers often find ways to make fewer redundancies
than they initially propose.

 

Employers in Northern Ireland file HR1 forms with the Northern Ireland
Statistics and Research Agency, and they are not included in these figures.

 

More than 10,000 redundancies have been proposed in Northern Ireland since
the pandemic began.--BBC

 

 

 

 

Elon Musk says Apple's boss snubbed takeover deal

Tesla founder Elon Musk says that Apple chief executive Tim Cook snubbed
talks to buy the car company back in 2017.

 

Mr Musk tweeted on Tuesday that he reached out to the Apple boss during his
company's "darkest days".

 

At the time Tesla was valued at $60bn (£45bn), but it has now grown to be
worth 10 times that amount.

 

Mr Musk said he had planned to discuss a possible sale of Tesla to Apple as
it was struggling financially while building its Model 3 electric car.

 

During that cash crisis, the billionaire entrepreneur told his employees
that its factory faced a period of "production hell".

 

Weeks later he tweeted about sleeping on the roof of the factory as he tried
to fix production bottlenecks.

 

However, Tesla overcame the problems and has since posted up a string of
quarterly profits.

 

This week, the electric carmaker became one of the most valuable companies
to join the S&P 500 index.

 

Driving ambitions

Apple has ambitions of its own to build an electric car and has hired a
number of ex-Tesla executives, along with buying companies that specialise
in self-driving technology.

 

Reports that Apple was working on a driverless car appear to have prompted
Mr Musk to tweet about his apparent approach to Mr Cook in 2017.

 

"He refused to take the meeting", Mr Musk replied in a Twitter chain on
suggestions that Apple is looking to produce a passenger vehicle by 2024
with a new battery technology.

 

Shares of both Apple and Tesla have surged since the beginning of 2017.

 

Tesla has gained more in that time, rising roughly 1,400%, but is still
worth less than a third of Apple's market capitalisation.--BBC

 

 

 

How dependent is the UK on the EU for food?

France's decision to close the border with the UK to stop the spread of a
new variant of the coronavirus has highlighted the importance of the
Dover-Calais route for food supplies.

 

French residents and nationals with recent negative coronavirus tests will
be able to travel from Wednesday, and lorry drivers can do so after a rapid
lateral flow test.

 

So just how dependent is the UK on the EU for food? And should British
shoppers be worried?

 

How dependent is UK on food from the EU?

About 30% of all the food we eat in the UK comes from the European Union,
according to the British Retail Consortium (BRC) industry group.

 

Britain imports nearly half of its fresh vegetables and the majority of its
fruit, both mainly from the EU - and that's where the potential problem was.

 

During the summer months, the UK can grow plenty of its own produce like
lettuces and soft berries such as raspberries and strawberries, but when the
weather turns colder Britain is forced to rely much more on imports from the
EU.

 

In January, for example, the UK imports 90% of the lettuces it needs from
the EU. But in June, Britain produces 95% of its own salad leaves.

 

Tomatoes follow the same pattern. In January, the UK buys in 85% of tomatoes
from the European bloc, but by summer it is growing 60% of what the country
needs.

 

By the time winter rolls around, half of all the UK's food is imported,
according to the Food and Drink Federation.

 

It says that while there are no concerns about food supplies over Christmas,
shoppers may have started to see gaps in fresh fruit and vegetable supplies
from next week - had the UK and France not "swiftly restored" their links.

 

Fruit and veg graphic

How does the UK get food here?

When it comes to fresh food, the most efficient and cheapest way to get
produce to the UK is in refrigerated trucks, using the "roll-on roll-off"
method of transport.

 

Food is loaded on the truck at a farm in Spain, for example, and is driven
to Calais where it directly "rolls on" a ferry or the Eurotunnel and "rolls
off" when it gets to Dover in the UK before heading to its final
destination. These trucks are then loaded up with UK goods which are then
sent back across the Channel to EU customers.

 

The driver will stay with the truck - which is known as "accompanied
freight" - and this is why there were some problems in recent days.

 

France was concerned about drivers coming from the UK with the new variant
of the coronavirus. Thousands of lorries got stuck in Kent waiting to get
back into the EU.

 

In the past, the UK has turned to other means when fresh produce has been
under threat.

 

In 2018, a summer heat wave meant the UK was eating more salad than usual
but the hotter weather also made it difficult to actually grow lettuces.

 

Thousands of iceberg lettuces were duly shipped in to the UK from Los
Angeles. But this is an expensive method of replenishing supplies and it is
doubtful businesses will want to pay a premium for shipping at a time when
they could be facing tariffs on buying other goods from the EU depending on
a Brexit deal.

 

What does the UK sell to the EU?

Last year, the UK exported £14.2bn worth of food and drink to the EU, out of
a total £23.6bn worldwide.

 

The Food and Drink Federation says the UK's biggest exports are goods such
as whisky, salmon, chocolate, cheese and gin.

 

The UK also exports a huge amount of the meat it produces to the EU. The
National Farmers' Union says 82% of UK beef exports go to the bloc. The UK
sells 30% of its lamb overseas, most of which goes to the EU.

 

In the EU, Ireland is the UK's biggest customer. It bought £4bn worth of
food and drink from the UK in 2019 - although that was a 3.8% drop on the
previous year.

 

France bought £2.3bn worth of produce from Britain last year, a rise of
3.5%, while the Netherlands imported £1.7bn of UK goods, up 5.2%.

 

Are warnings of food shortages overdone?

The UK found itself in the eye of a perfect storm: France shut its border to
freight from the UK; winter means the UK is more reliant on the EU for fresh
food; Britain will stop trading under EU rules on 31 December; some British
ports are facing severe delays; the coronavirus has changed shopping habits
and it is Christmas so demand is high.

 

However, the UK's major supermarkets say they have plenty of supplies -
following the coronavirus panic-buying earlier this year - and are
encouraging people to "shop as normal".

 

Tesco said: "We've been building our stockholding of key products ahead of
the Christmas peak and are working closely with our hauliers and suppliers
to continue the supply of goods into our stores."

 

However, it did warn supplies of a few fresh items such as lettuce and
citrus fruit might have been reduced "later this week" - had an agreement
not been reached.

 

Sainsbury's said it was looking at alternative ways of sourcing products
from Europe, a spokesman says: "If nothing changes, we will start to see
gaps over the coming days on lettuce, some salad leaves, cauliflowers,
broccoli and citrus fruit, all of which are imported from the Continent at
this time of year."

 

Could supply chain worries mean we produce more food here?

We could - though there would certainly not be the variety consumers are
used to. The National Farmers' Union says the UK imports 45% of its
vegetables, the vast majority of which come from the EU.

 

Britain also buys 84% of its fruit from overseas, although it is less
dependent on the EU for these goods.

 

However, Spain is the biggest supplier of fruit to the UK, accounting for
19% of imports.

 

There are certain things we can grow here in the UK whatever the weather.
For example, the UK produces 70% of cabbage and cauliflower supplies in
January, rising to 90% in June.

 

However, that appears to be more weighted towards cabbage at the moment
given that Tesco and Sainsbury's have both warned that cauliflowers could be
one of the vegetables affected by the disruption.

 

Meanwhile, vegetables like rhubarb will always thrive here given that it
likes damp cold soil.

 

But if difficulties continue at the border with France, or a Brexit deal
makes some produce more expensive to bring into the UK, then people may find
themselves having to eat whatever is seasonal.

 

No doubt, this will please some such as environmentalists as it means food
will not have to travel as far, keeping a lid on emissions.

 

However, it may not agree with everyone's palate.--BBC

 

 

 

US sues Walmart for alleged role in opioid crisis

The US Department of Justice has accused Walmart of helping to fuel
America's opioid crisis.

 

In a lawsuit filed on Tuesday, prosecutors said the retail giant filled
hundreds of thousands of questionable prescriptions, "knowingly" violating
vetting rules.

 

Walmart revealed in October that it had been threatened with such a suit.

 

At the time, Walmart said the US was imposing "unworkable requirements that
are not found in any law".

 

Walmart, the world's largest retailer, operates more than 5,000 pharmacies
at its stores across the US and for years has also acted as a drug
distributor.

 

According to the lawsuit, the company pressured staff to fill prescriptions
as fast as possible and withheld information from pharmacists, collected by
its compliance unit, which indicated such orders did not have valid medical
purposes.

 

Jeffrey Bossert Clark, acting assistant attorney general of the Department
of Justice's civil division, said Walmart's actions "contributed to the
epidemic of opioid abuse throughout the United States".

 

"As one of the largest pharmacy chains and wholesale drug distributors in
the country, Walmart had the responsibility and the means to help prevent
the diversion of prescription opioids," he said.

 

"Instead, for years, it did the opposite - filling thousands of invalid
prescriptions at its pharmacies and failing to report suspicious orders of
opioids and other drugs placed by those pharmacies."

 

For example, when pharmacists reported problematic orders to the compliance
unit, it did not share information about the prescribers more widely,
according to the lawsuit.

 

Walmart also did not respond to concerns from distribution staff that they
did not have enough time to evaluate orders, it said.

 

This created a "defective" detection system, according to the lawsuit, which
said Walmart reported just 204 "suspicious orders" to authorities over four
years, out of an estimated 37.5m shipments.

 

Prosecutors said Walmart "substantially benefited" from its actions,
avoiding the expense of creating proper compliance procedures and profiting
from the extra business - in some cases from so-called "pill mill"
prescribers who steered their patients to the firm's stores.

 

The government is seeking financial penalties for the alleged misconduct,
which it said dated to 2013. It said the fines could amount to "billions of
dollars".

 

Rock and hard place

In its response, Walmart said the Justice Department is "demanding
pharmacists and pharmacies second-guess doctors" and is putting them
"between a rock and a hard place with state health regulators who say they
are already going too far in refusing to fill opioid prescriptions".

 

In a strongly-worded statement, Walmart added the lawsuit "invents a legal
theory that unlawfully forces pharmacists to come between patients and their
doctors, and is riddled with factual inaccuracies and cherry-picked
documents taken out of context."

 

Walmart said it had sent the DEA tens of thousands of investigative leads,
and blocked thousands of questionable doctors from having their opioid
prescriptions filled at its pharmacies.

 

Roughly 450,000 people have died from overdoses related to prescription
painkillers and illegal drugs since 1999.

 

The lawsuit against Walmart is the latest effort by the Department of
Justice to respond to the public health crisis.

 

In October, it announced that Oxycontin-maker Purdue Pharma would pay more
than $8bn and admit to enabling the supply of drugs without legitimate
medical purpose.--BBC

 

 

Ports chaos 'bad for trust and post-Brexit trade'

Chaos at ports caused by EU border closures has set back the UK's efforts to
reassure foreign customers post-Brexit, the food industry has said.

 

Food and Drink Federation boss Ian Wright said UK exporters wanted to make
sure foreign firms could rely on their supply chains after 1 January.

 

But the current crisis had harmed their cause, he told MPs.

 

"We've just proved... that you can't trust British products," he said. "And
that's really unhelpful."

 

Mr Wright was giving evidence to an emergency hearing of the Commons
business committee, called to examine the impact of the border delays on UK
business and security of supply.

 

France shut its UK border for 48 hours on Sunday amid fears of a new
coronavirus variant in the UK. More than 50 countries have now banned UK
arrivals.

 

At the same time, UK-EU talks on a post-Brexit trade deal are continuing,
with nine days left to reach and ratify any agreement.

 

Mr Wright said the current scenes at Dover, where the number of lorries
stranded and unable to cross to France has continued to rise, could be
"replicated at any point".

 

"I think we will see this happen particularly if we get a no-deal Brexit,"
he added.

 

Mr Wright said there were thought to be 4,000 trucks on their way to Dover
at various points. He warned that the number could grow by the end of the
day to possibly as high as 6,000 or 7,000.

 

'Big worry'

He also criticised the government's handling of the announcement at the
weekend and urged it to compensate those who had lost out.

 

The committee also heard that there were concerns over the welfare of lorry
and van drivers caught up in the disruption, as the facilities provided for
them are considered inadequate.

 

"We have no confidence, we have never had any confidence drivers will be
looked after," said Duncan Buchanan of the Road Haulage Association.

 

"This is a very serious problem - whether you have moved trucks from one
place to another, it is irrelevant."

 

Mr Buchanan said it was the start of supply chain disruption "of the like we
have probably never experienced".

 

"Many of the retailers are saying that we are up until Christmas, we will be
fine until Christmas at least, but we must recover very fast to keep the
shops fully stocked after Christmas. It's a big worry," he added.

 

Andrew Opie, of the British Retail Consortium, agreed, saying that if
lorries were not moving within 24 hours, there could be problems with the
availability of fresh food products from 27 December.--BBC

 

 

 

Air charter firms see demand surge as companies bid to beat blockages

Firms have been chartering private jets to move goods as politicians hammer
out a plan to reopen France's border.

 

Charter company Air Charter Service told the BBC it had received more than
800 enquiries from firms looking to avoid disruption around ports.

 

The firm said it was "quite out of the blue", and it had taken 15 bookings.

 

About 1,500 lorries are stuck in Kent after France shut its UK border for 48
hours on Sunday amid fears of a new coronavirus variant.

 

Travel bans due to the coronavirus pandemic have typically included
exemptions for freight, but currently no lorries are leaving the Port of
Dover or Eurotunnel to France.

 

Justin Lancaster, group commercial director at Air Charter Service, said
that the firm was seeing requests from a range of customers as a result.

 

"Most of those we've seen are from customers who are used to chartering
flights, such as automotive firms who need parts.

 

"But some requests have come in from firms who would never normally consider
paying for these services - such as food, textiles, livestock."

 

Mr Lancaster adds that the majority of enquiries are for flights importing
goods to the UK.

 

Haulage firms he has spoken to suggested that drivers were already reluctant
to start on journeys to Europe amid mounting queues at ports.

 

"I imagine that situation only gotten worse," he says. "If you're not sure
if a driver can come back, you're not going to want to take that risk."

 

Back-up plans triggered

Air Partner, one of the world's largest air charter providers, also told the
BBC it had seen a growing number of requests.

 

"If the situation in Dover continues, it's not impossible that some
businesses will consider air freight for lower-value perishable goods, such
as fruit and vegetables, or risk losing their stock altogether," said chief
executive Mark Briffa.

 

The boss of the UK-based firm added that the current closures were "forcing
businesses" to carry out back-up plans they might have had in place for a
potential no-deal Brexit after the transition period ends on 31 December.

 

The EU Commission has urged all of its member states to discontinue train
and flight bans to avoid supply chain disruption. Non-essential travel
should still be discouraged though, it said.

 

In the meantime, smaller firms such as CharterSync have also seen an uplift
in requests for help in transporting cargo.

 

The UK-based firm, which connects freight forwarders with cargo and private
jet operators in Europe via an online platform, told the BBC that on Monday
it saw nearly four times its usual number of enquiries.

 

Its co-founder, Ed Gillett, said that most bookings were coming from the
automotive and pharmaceutical sectors.

 

It is also asking customers to think of alternative methods of transport.

 

"With the constantly evolving border restrictions... we are encouraging our
clients to break down larger pallets into smaller carry-on-boxes so that we
can squeeze any time-critical cargo onto private jets."

 

Any future solution to the border closure is likely to include testing for
lorry drivers, BBC Paris correspondent Hugh Schofield has said.

 

But Mr Lancaster from Air Charter Service points out that testing facilities
or regimes would take time to set up.

 

"We're thinking this issue will be go up to Christmas Day... and Brexit is
around the corner, which could bring more disruption as well as additional
paperwork for customers.

 

"So if this closure carries on with no resolution, I think it's going to get
much, much busier."--BBC

 

 

 

UK borrowing hits highest November level on record

Government borrowing soared in November as the UK continued to support the
economy during the coronavirus pandemic.

 

The Office for National Statistics said borrowing hit £31.6bn last month,
the highest November figure on record.

 

It was also the third-highest figure in any month since records began in
1993.

 

The figures highlight the government's spending-revenue gap, and underline
Chancellor Rishi Sunak's problems as he weighs up bolstering Treasury
coffers.

 

Since the beginning of the financial year in April, borrowing has reached
£240.9bn, £188.6bn more than a year ago, the ONS said.

 

A Budget had been expected to take place in autumn this year, but it was
delayed because of the pandemic and will now take place on 3 March 2021.

 

The independent Office for Budget Responsibility (OBR) has estimated that
borrowing could reach £372.2bn by the end of the financial year in March.

 

However, Mr Sunak made clear on Tuesday that he would not be taking any
hasty action. "When our economy recovers, it's right that we take the
necessary steps to put the public finances on a more sustainable footing so
we are able to respond to future crises in the way we have done this year,"
he said.

 

Borrowing by month

Mr Sunak has already imposed a pay freeze on at least 1.3 million public
sector workers as part of efforts to contain government spending.

 

The increase in borrowing has led to a steep increase in the national debt,
which now stands at just under £2.1 trillion.

 

The UK's overall debt has now reached 99.5% of gross domestic product (GDP)
- a level not seen since the early 1960s.

 

Where does the government borrow?

The government borrows in the financial markets, by selling bonds.

 

A bond is a promise to make payments to whoever holds it on certain dates.
There is a large payment on the final date - in effect, the repayment.

 

The buyers of these bonds, or "gilts", are mainly financial institutions,
like pension funds, investment funds, banks and insurance companies. Private
savers also buy some.

 

You can read more here about how countries borrow money.

 

"We are looking at the highest peacetime deficit and if we look at where the
country's debt is, then we are at the highest levels since the 1960s," said
Sarah Hewin, chief economist at Standard Chartered.

 

"In November alone, borrowing was about six times what it was in November
last year, so these are some absolutely record numbers that we are seeing.

 

"Also, of course, the furlough scheme has been extended, so that will
increase government spending. We could well see the deficit for the
financial year all the way up to 20% of GDP, so around £400bn."

 

Net debt

Separately, the ONS has also revised its figures for the UK's economic
growth this year.

 

The economy shrank a little less in the April-to-June period than previously
indicated, by 18.8% instead of 19.8%.

 

And the rebound from July to September was a little bigger, with growth of
16% instead of 15.5%.

 

Ruth Gregory, senior UK economist at Capital Economics, said a double-dip
recession was a clear possibility if the tier four Covid-19 restrictions
were extended into 2021.

 

However, she said there was optimism that as long as vaccines were effective
and widespread, GDP would "stage a strong rebound" in the second half of
next year.

 

Double-dip recession?

Analysis box by Faisal Islam, economics editor

The extraordinary pandemic shutdown borrowing numbers had begun to recover.
But last month, as some restrictions were reapplied across the UK, the
government borrowed £31.6bn, the third-highest month on record.

 

This was £26bn higher than last November, driven mainly by a £23bn increase
in government spending on a year ago, including the reapplication of the
full jobs wage subsidy furlough scheme.

 

Borrowing so far this financial year since April is already at a record
£240bn and set to hit about £400bn over the full year.

 

Growth in the economy in the third quarter was a little higher than first
calculated, at a record 16%, but that now is firmly old news.

 

The likely spread of new restrictions on retail and hospitality and multiple
forms of chaos at ports mean forecasters fear the UK may already be back in
a double-dip recession.--BBC

 

 

 

Tesco puts buying caps on several products

Tesco has introduced purchasing limits on some products including eggs,
rice, soap and toilet roll.

 

The move is to make sure everyone has access to the products, it said in an
email to customers.

 

Customers are allowed to buy up to three of each item.

 

The move comes as almost 3,000 lorries remain stranded in Kent after
restrictions on travel and freight between the UK and France were
introduced.

 

The supermarket giant also encouraged customers to shop alone to ensure
social distancing in stores.

 

1,500 lorries stuck in Kent as UK and France aim to restart freight

Tesco said it has "good stock levels" and customers should "shop as you
normally would".

 

Tesco introduced limits on some products in September in a bid to prevent a
repeat of the panic-buying that led to shortages in March.

 

France shut its UK border for 48 hours on Sunday amid fears of a new
coronavirus variant.

 

Transport Secretary Grant Shapps has since announcedthat some travel can
resume, although lorry drivers are still advised not to travel to Kent after
days of disruption.

 

Dozens of other countries have banned UK arrivals, including India, Iran and
Canada.

 

'Drop travel bans'

Any solution would probably include testing for lorry drivers, BBC Paris
correspondent Hugh Schofield said.

 

French authorities say some journeys will be allowed for residents and
nationals with a recent negative test. Hauliers are expected to be updated
later on Tuesday.

 

Meanwhile, the EU Commission has urged other countries to drop their travel
bans.

 

In a recommendation to all member states, it said flight and train bans
should be discontinued to avoid supply chain disruption.

 

People should be allowed to travel to their country of residence, provided
they take a Covid-19 test or self-isolate, it said.

 

But the commission added that non-essential travel should still be
discouraged.

 

On Monday, Tesco and Sainsbury's warned that some fresh items could run
short if no way is found to get freight moving again.

 

Much of the UK's fresh vegetable stock comes from continental Europe in the
winter, including tomatoes and cabbages.

 

Tesco anticipated that produce such as lettuces and citrus fruit could be
hit.

 

Sainsbury's told the BBC that it did not currently have any product caps in
place, and said it had "good availability".

 

Andrew Opie, director of food and sustainability at the British Retail
Consortium, pointed out that retailers have stocked up on goods ahead of
Christmas, which should prevent immediate problems.

 

However, he said that if testing is required to reopen borders "we need to
ensure it is quick to avoid adding friction to the supply chain.

 

"We have stressed to government there is no alternative to reopening the
channel ports, given that it is a key supply route for fresh produce at this
time of year."

 

The Channel is a vital trade route, with about 10,000 lorries a day
travelling between Dover and Calais at Christmas, often bringing in the
freshest produce.-BBC

 

 

 

US blacklists companies with possible military ties

The US has placed export restrictions on more than 100 Chinese and Russian
companies with alleged military ties.

 

US exporters will be required to get a licence before they transfer
"designated items" to companies on the blacklist.

 

The list includes a large number of Chinese aerospace companies as well as
Russia's foreign intelligence service.

 

It is part of a wider push by Donald Trump to maintain pressure on China
before he leaves office.

 

Tensions between Washington and Beijing have grown over the past year on a
number of sensitive issues.

 

President Trump blamed China for the coronavirus pandemic, while his
administration has been critical of a new national security law imposed in
Hong Kong.

 

In addition to companies with possible military connections, the US
government has recently added additional restrictions on Chinese technology
companies.

 

On Friday, the US added dozens of Chinese companies to another US trade
blacklist, including the country's top chipmaker, SMIC, and Chinese
drone-maker DJI.

 

Earlier this month, the Federal Communications Commission (FCC) also ordered
US telecommunications providers to remove equipment made by Chinese
communications giant Huawei from their networks.

 

Unacceptable risk

The new list applies to entities that "represent an unacceptable risk of use
in or diversion" for military purposes in China, Russia or Venezuela.

 

"The Department recognises the importance of leveraging its partnerships
with US and global companies to combat efforts by China and Russia to divert
US technology for their destabilising military programmes," said Commerce
Secretary Wilbur Ross in a statement.

 

The initial list includes 103 companies, but an interagency body may add or
delete companies from it.

 

China recently introduced its own tough new laws restricting the export of
"controlled items".

 

The rules primarily focus on the export of military technologies and other
products seen to potentially harm China's national security.

 

US and China have been involved in a trade war since 2018 introducing a
series of taxes on a range of imported goods.--BBC

 

 

 

Nigeria Has the Highest Number of Poor People Living With Less Than $1.90 a
Day - Financial Times

Financial Times, an international business newspaper, Tuesday described
Nigeria as a nation that has the highest number of poor people living with
less than $1.90 a day.

 

The paper equally stated that Nigeria is on the brink of becoming a failed
state, following the spate of kidnappings, killings, insecurity and
violation of human rights.

 

The international business newspaper, stated conspicuously that the
government has lost control of the country.

 

Giving perceived solution to Nigeria's problem, Financial Times said:
"President Muhammadu Buhari must seek to draw a line in the sand. He must
redouble efforts to get a grip on security. He also needs to restore trust
in key institutions, among them the judiciary, the security services and the
electoral commission, which will preside over the 2023 elections.

 

 

Read the full Editorial below:

 

"More than 300 Nigerian schoolboys were reunited with their families last
weekend, days after they had been abducted by kidnappers from their
dormitory in the country's north-west. The kidnapping revived memories of
the 276 Chibok schoolgirls abducted in Borno state in 2014. Just as then,
Boko Haram, the militant Islamist group, claimed responsibility.

 

"The government insists no ransom was paid. Scepticism is warranted. In a
country going backwards economically, carjacking, kidnapping and banditry
are among Nigeria's rare growth industries. Just as the boys were going
home, Nigerian pirates abducted six Ukrainian sailors off the coast.

 

 

"The definition of a failed state is one where the government is no longer
in control. By this yardstick, Africa's most populous country is teetering
on the brink.

 

"President Muhammadu Buhari in 2015 pronounced Boko Haram "technically
defeated". That has proved fanciful. Boko Haram has remained an ever-present
threat. If the latest kidnapping turns out to be its work, it would mark the
spread of the terrorist group from its north-eastern base. Even if the mass
abduction was carried out by "ordinary" bandits -- as now looks possible --
it underlines the fact of chronic criminality and violence. Deadly clashes
between herders and settled farmers have spread to most parts of Nigeria. In
the oil-rich, but impoverished, Delta region, extortion through the sabotage
of pipelines is legendary.

 

 

"Extortion is a potent symbol for a state whose modus operandi is the
extraction of oil revenue from central coffers to pay for a bloated,
ruinously inefficient, political elite. Security is not the only area where
the state is failing. Nigeria has more poor people, defined as those living
on less than $1.90 a day, than any other country, including India. In
non-Covid-19 years, one of every five children in the world out of school
lives in Nigeria, many of them girls.

 

"The population, already above 200m, is growing at a breakneck 3.2 per cent
a year. The economy has stalled since 2015 and real living standards are
declining. This year, the economy will shrink 4 per cent after Covid-19
dealt a further blow to oil prices. In any case, as the world turns greener,
the elite's scramble for oil revenue will become a game of diminishing
returns. The country desperately needs to put its finances, propped up by
foreign borrowing, on a sounder footing.

 

"In its three remaining years, the government of Mr Buhari must seek to draw
a line in the sand. It must redouble efforts to get a grip on security. It
also needs to restore trust in key institutions, among them the judiciary,
the security services and the electoral commission, which will preside over
the 2023 elections.

 

"More than that, Nigeria needs a generational shift. The broad coalition
that found political expression this year in the EndSARS movement against
police brutality provides a shard of optimism. At least Nigeria has a
relatively stable democracy. Now Nigeria's youth -- creative,
entrepreneurial and less tainted by the politics of extraction -- should use
that system to reset the country's narrative.

 

"A new, slimmed-down state -- ideally one with fewer, bankrupt regional
assemblies -- must concentrate on the basics: security, health, education,
power and roads. With those public goods in place, Nigeria's young people
are more than capable of turning the country round. At the present
trajectory, the population will double to 400m by 2050. If nothing is done,
long before then, Nigeria will become a problem far too big for the world to
ignore."-Vanguard News Nigeria

 

 

 

Uganda's Dairy Industry Suffers From Kenyan Ban

That Kenya is a lifeline for the dairy industry in Uganda is not in doubt.

 

Therefore, when Kenya slapped the Mbarara based Lato Milk with an import ban
early in the year, the effects were devastating for farmers in the
neighbouring state.

 

After several complaints by Kenyan farmers over the influx of Ugandan milk,
which had seen a litre touch the historic low of Sh17, the government
reacted by confiscating thousands of tonnes of milk from Uganda and
consequently stopping imports.

 

The move did not only cause an uproar in Uganda, but also saw hundreds of
workers in Pearl Dairies, the makers of Lato Milk sent on leave with
production at the firm cut to bare minimum.

Uganda produces 2.6 billion litres of milk per annum. However, domestic
demand stands at only 800 million litres, creating a huge surplus.

 

It is this surplus that finds its way to the Kenyan market, stepping up
competition for local producers.

 

The attractiveness of Ugandan milk is helped by a lower production cost that
stands at about Sh17 when compared with Kenya's Sh26 on average per litre.

 

By the time Kenya banned Lato Milk from the market, it was retailing at
about Sh40 for a half litre while the local brands traded at Sh45 on
average, leaving processors with unmoving stocks as price sensitive
consumers preferred the cheaper imported product.

 

The bone of contention has been whether Uganda has the capacity to produce
all this surplus, with allegations that much of it comes from third party
countries as powder milk then reconstituted in the neighbouring country
before finding its way to Kenya.

 

Mr Stanley Ng'ombe, the chairperson of the Kenya Dairy Farmers Federation
(KDFF), said imported milk has had a negative impact on farmers, driving
down the volumes that they can afford to produce because of the low prices.

 

Mr Ng'ombe, whose organisation counts a membership of 26 dairy cooperatives
scattered across the country, claims that most of the milk coming from
Uganda is imported into that country as powder from Europe.

 

"We know that Uganda has no capacity to produce all this milk and there is a
likelihood that most of it come from Europe before finding its way to
Kenya," he said.-Business Daily/Monitor.

 

 

Rwandan Entrepreneur Wins Big At 2020 UN Youth Contest

Abdu Usanase, Chief Executive of Agri-research Organization, was last week
recognized among the outstanding 50 continental projects in the United
Nations Sustainable Development Solutions Network (SDSN).

 

SDSN Youth is an initiative of the UN Sustainable Development Solutions
Network, a programme launched by the UN Secretary General to mobilize global
expertise around the Sustainable Development Goals.

 

Usanase, who walked away with an award estimated at $20000-$50,000, leads a
team of 26 Rwandan Agri-business researchers.

 

Commenting about the development, Jeffrey D. Sachs, American economist who
was part of the selecting committee, noted that "Young people are crucial
leaders of change, and we need their ideas and solutions now more than ever
in order to achieve the SDGs by 2030."

He added; "During one of the most difficult times for the world population,
in the midst of the Covid-19 pandemic, these young innovators succeeded in
pivoting their ideas and adapting successfully to the world's critical
challenges. Let us learn from these successes, and shine a light on their
creative ideas and solutions."

 

Usanase's team was awarded for the Smart-Input solution, an android
application that will help farmers precisely use agricultural inputs
including Seed, fertilizers and pesticides.

 

How does Smart Input work?

 

Speaking to The New Times, Usanase explained that Smart Input will among
other things ensure a good safety level use of agrochemicals by farmers.

 

"This will help reduce chemical residues in agricultural products,
protecting consumers from the potentially harmful chemicals. The overall
objective is to make agriculture more efficient and environment-friendly."

According to Usanase, pesticides and chemical fertilizers malpractice among
small-scale farmers have contributed to environmental pollution.

 

Similarly, he added that defective chemical fertilizers application methods
have harmful effects on both our surroundings and health.

 

"This means that equipping farmers and agrochemical dealers with sufficient
knowledge regarding proper use, handling and the potential dangers of
pesticides improper practices is the only practically feasible solution. In
fact, farming communities, especially in developing countries don't have a
good level of this information,"Usanase said.

 

"Agri-research organisation developed a user-friendly, offline android
application that can provide useful information regarding daily on-farm
practices to boost agricultural production while saving the country's
environment," the young entrepreneur said.

 

The award

 

Commenting on the continental recognition, Usanase pointed out that it is an
indicator that his organisation's vision has its work cut off; making
Rwanda's agriculture a less climate-sensitive, environment-friendly,
economically leading sector.

 

"Besides, the cash prize, they will help in boosting our visibility,
connecting to partners for capacity building and funding opportunities," he
said.

 

Going forward, he said that the organization seeks to scale up the project
in order to benefit the global community.

 

"We are ambitious to foster research culture in youth, engage youth in
agriculture, diversify crop production, crop productivity and reduce
post-harvest losses."

 

In Rwanda pesticide and chemical fertilizer malpractice among small-scale
farmers has contributed to environmental pollution.

 

Reports indicate that offsite movement of transformation products of
pesticides and chemical fertilizers contaminate groundwater, exposing human
life that consume water as well as the aquatic eco-system.-New Times.

 

 

Malawi: Chilima Commends Malawi University of Science for Innovative
Projects - to Produce Electricity

Malawi University of Science and Technology (Must) has been commended by the
Vice-president Saulos Chilima for undertaking innovative projects which
include an industrial park, a purpose-built science laboratory, shopping
mall, waste recycling and recreation centre and ambitious plans of
electricity generation.

 

Must, a public university, will be producing 60 kilowatts (kW) electricity
from agricultural waste to power 400 households.

 

The university has since developed a biomass gasification plant, which will
utilise rice husks to produce electricity.

 

Chilima last week inspected various projects being undertaken by must as
part of its growth and development agenda.

 

He said Must is doing well in its projects.

 

"We are pleased with their thinking which is big," Chilima said

 

Chilima, who is also Minister of Economic Planning and Development and
Public sector Reforms, also commended Must for embracing reforms.

 

"We are pleased to see Must going commercial in line with what we have
encouraged about financial independence of these institutions," said the
Veep.

 

Must vice-chancellor Professor Address Malata said the projects the
university is undertaking are in line with Sustainable Development Goals,
the African Union 2063 Agenda and Malawi National Transformational 2063
Agenda.-Nyasa Times.

 

 

 

Gambia: Smart Construction Launches Social Housing Project

In a drive to make housing needs more affordable and accessible to every
Gambian, Smart Construction has recently unveiled a new package with the
launch of its social housing project at a ceremony held at its head office
in Brusubi Phase 2.

 

Established in 2018, the goal of this new housing project is to ensure that
every Gambian owns a home.

 

At the launch of the new service, Ba Samba Drammeh, executive managing
partner for Smart Construction said the move is necessitated due to the
rapid population growth amid housing needs of ordinary Gambians.

 

"There are lots of real estates, but as a company, we want to cater for the
needs of Gambians, because we know that the way housing is going at some
point it would be unaffordable in the country."

Drammeh explained that their plan is to make sure every Gambian owns a home,
despite one's little income, thus the new social housing project. "It is not
just to make money."

 

Velma Wright, business development manager, outlined the objective of Smart
Construction, saying the company focuses mainly on civil engineering,
construction and project management.

 

"We have designated one land side that we are going to start as first
housing project for the people in The Gambia." she said.

 

The risk of housing crisis in Africa, she declared, is increasing due to
population growth and rapid developments.

 

She explained that by 2040, Africa is projected to have the largest
workforce in the world.

 

Papa Njie, who spoke on housing as a human right, disclosed that more than
1.8 billion people worldwide lacks adequate housing and that annually two
million people are forcibly evicted from their houses.

 

'Nigeria remains Destination Gambia key market'

 

'Gov't committed to demystifying misconception on returning migrants'-The
Point.

 

 

 


 


 


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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