Major International Business Headlines Brief::: 27 December 2020

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Major International Business Headlines Brief::: 27 December 2020

 


 

 

	
 


 

 


ü  Chinese economy to overtake US 'by 2028' due to Covid

ü  At first look, full post-Brexit text goes beyond a 'Canada-style' deal

ü  Brexit: Firms warn 'clock is ticking' to keep goods moving

ü  Covid-19: Irish government authorises Pfizer-BioNTech vaccine

ü  Nuro set to be California's first driverless delivery service

ü  U.S. holiday retail sales rise 3% as online shopping booms- Mastercard
report

ü  'Parting is such sweet sorrow': EU and UK clinch narrow Brexit accord

ü  Air Canada Boeing 737-8 MAX suffers engine issue

ü  MUA named Insurer of the Year at the African Insurance Awards

ü  Malawi Govt to Amend Law to Deal With Cyber Bullying

ü  Tanzania: China to Establish Agri Training Centre in Kongwa

ü  Tanzania: Use of Natural Gas Saves Tanzania $15.6 Billion

ü  Nigeria: Aero Contractors Petitioned Over Stranded Sokoto Passengers

ü  Nigeria: Airlines, Others Await N5bn Bailout 2 Months After

ü  Nigeria: Why Poultry Farmers Not Crowing This Festive Season

 


 

 


Chinese economy to overtake US 'by 2028' due to Covid

China will overtake the US to become the world's largest economy by 2028,
five years earlier than previously forecast, a report says.

 

The UK-based Centre for Economics and Business Research (CEBR) said China's
"skilful" management of Covid-19 would boost its relative growth compared to
the US and Europe in coming years.

 

Meanwhile India is tipped to become the third largest economy by 2030.

 

The CEBR releases its economic league table every year on 26 December.

 

Although China was the first country hit by Covid-19, it controlled the
disease through swift and extremely strict action, meaning it did not need
to repeat economically paralysing lockdowns as European countries have done.

 

As a result, unlike other major economies, it has avoided an economic
recession in 2020 and is in fact estimated to see growth of 2% this year.

 

The US economy, by contrast, has been hit hard by the world's worst
coronavirus epidemic in terms of sheer numbers. More than 330,000 people
have died in the US and there have been some 18.5 million confirmed cases.

 

The economic damage has been cushioned by monetary policy and a huge fiscal
stimulus, but political disagreements over a new stimulus package could
leave around 14 million Americans without unemployment benefit payments in
the new year.

 

US and Chinese economies 2010-2035. Gross domestic product in $US trillions
(constant prices). Chart shows Chinese and US economic output over time with
China overtaking the US around 2028 .

"For some time, an overarching theme of global economics has been the
economic and soft power struggle between the United States and China," says
the CEBR report. "The Covid-19 pandemic and corresponding economic fallout
have certainly tipped this rivalry in China's favour."

 

media captionHow US and China's break-up could affect the world

The report says that after "a strong post-pandemic rebound in 2021", the US
economy will grow by about 1.9% annually from 2022-24 and then slow to 1.6%
in the years after that.

 

By contrast the Chinese economy is tipped to grow by 5.7% annually until
2025, and 4.5% annually from 2026-2030.

 

China's share of the world economy has risen from just 3.6% in 2000 to 17.8%
now and the country will become a "high-income economy" by 2023, the report
says.

 

The Chinese economy is not only benefitting from having controlled Covid-19
early, but also aggressive policymaking targeting industries like advanced
manufacturing, said CEBR deputy chairman Douglas McWilliams.

 

"They seem to be trying to have centralised control at one level, but quite
a free market economy in other areas," he told the BBC. "And it's the free
market bit that's helping them move forward particularly in areas like
tech."

 

But the average Chinese person will remain far poorer in financial terms
than the average American even after China becomes the world's biggest
economy, given that China's population is four times bigger.

 

In other predictions:

The post-Brexit UK economy will grow by 4% annually from 2021-25 and 1.8%
annually from 2026-30 (after shrinking in 2020)

India had overtaken the UK as the fifth-biggest economy in 2019 but has
slipped behind it again due to the pandemic's impact. It won't take over
again until 2024, the CEBR says

India's economy will go on to overtake Germany in 2027 and Japan in 2030—BBC

 

 

 

At first look, full post-Brexit text goes beyond a 'Canada-style' deal

BBC News has obtained a full copy of the post-Brexit trade deal agreed by
the UK and the EU, setting out the shape of their relationship for years to
come. Parliament will vote on the plan next week, but so far Downing Street
has published only a short summary, rather than the full document. Our
economics editor, Faisal Islam, has been looking at the details.

 

Late into Christmas Eve, UK government and European lawyers were hard at
work completing the process of updating the text of the post-Brexit trade
deal into formal language, a process known as legally scrubbing.

 

Because whatever the general relief over the broad outline of this deal,
there are nearly 1,300 pages of legal text that will determine every aspect
of the hundreds of billions in trade between the UK and EU.

 

Some of the thorniest negotiation points have made it into the final text.

 

Innocuous and arcane sounding articles and annexes could have a huge impact
on industry and government policy.

 

For example, the restrictions compensation for unfair subsidies to companies
"do not apply" in situations such as natural disasters, exempting the EU's
huge current pandemic support package for aviation, aerospace, climate
change and electric cars.

 

A late compromise

On electric cars, an annexe reveals a late compromise.

 

The EU had sought to offer tariff-free access only to those British cars
that are made mostly with European parts. That will now be phased in over
six years, but is less generous than the UK ask.

 

This should be just about enough for Japanese owners of massive UK plants
Nissan and Toyota's current production, but raises questions about future
rounds of investment.

 

There is a clear commitment not to lower standards on the environment,
workers' rights and climate change from those that exist now and mechanisms
to enforce it.

 

But there is also a mutual right to "rebalance" the agreement if there are
"significant divergences" in future that is capable of "impacting trade".

 

These go way beyond standard free-trade agreements such as those between the
EU and Canada or Japan, reflecting the UK's history in the single market.

 

The text reads like these mechanisms are designed to be used, and created to
ensure that both sides remain close to each other's regulatory orbit.--BBC

 

 

 

 

Brexit: Firms warn 'clock is ticking' to keep goods moving

Businesses have given a relieved welcome to the Brexit trade deal, but
warned there was more work to be done.

 

In a statement, Number 10 said: "The deal is fantastic news for businesses
in every part of the UK."

 

But Jonathan Geldart, director general of the Institute of Directors, said
"the clock is still very much ticking" for firms and called for guidance.

 

The CBI called for urgent confirmation of grace periods to give firms time
to adapt to new rules from 1 January.

 

"We need to ensure we keep goods moving across borders," said Tony Danker,
CBI director-general.

 

He said the deal "will come as a huge relief to British business at a time
when resilience is at an all-time low".

 

"But coming so late in the day, it is vital that both sides take instant
steps to keep trade moving and services flowing while firms adjust."

 

Mr Geldart echoed the CBI's concerns and said digesting the practical
changes required and adapting "in the middle of a pandemic and the festive
season, while border disruptions continue, is a huge ask" for firms.

 

After a last-minute titanic struggle over the economic minnow that is fish,
a deal has finally been landed.

 

The relief of avoiding no-deal is the perfect Christmas present for UK
business. Having avoided what they considered the calamity of no-deal, minds
will now turn to the detail in nearly 2,000 pages of text.

 

And those who do business with the EU will not have long to peruse it. Even
though a deal has been done, UK traders face a new raft of paperwork and
cost. More than 200 million additional customs forms will need completing at
a cost of more than £7bn a year.

 

Haulage companies warn that many businesses are not ready for this new
normal. That is perhaps understandable when you consider they have had
several previous false alarms when they've stockpiled for no reason. They've
been dealing with the worst health and economic disaster in living memory
and have had precious little detail on exactly what they are facing until
the very last minute.

 

The elephant not in the room and barely mentioned in the deal is services.
There is no automatic access to a market worth £100bn to UK firms last year.
A huge sigh of relief, yes - but any celebrations may be brief.

 

Helen Dickinson, chief executive of the British Retail Consortium, urged the
EU and UK governments to work to implement the new arrangement as soon as
possible.

 

"They must ensure there are no tariffs from Day One and find new ways to
reduce the checks and red tape that we'll see from 1 January," she said.

 

"Businesses are undoubtedly relieved to hear that a deal has been agreed and
will be hoping that it will now be ratified by respective parliaments across
Europe,' said Richard Burge, chief executive of the London Chamber of
Commerce and Industry.

 

"However, in on-the-ground terms for business, there are likely to still be
questions unanswered and operational detail missing."

 

Business group Logistics UK was optimistic about the deal.

 

"It removes the risk of tariffs being placed on almost every item imported
from the EU, which would have raised prices and slowed the rate of economic
growth," said Elizabeth de Jong, the group's policy director.

 

But TUC general secretary Frances O'Grady was scathing. "This deal is better
than nothing, but not by much. It won't protect jobs and puts hard-won
workers' rights on the line."

 

She called on the prime minister to "make good on his promise to level up
Britain", saying: "He needs to act fast. There can be no more pointing the
finger at the EU."

 

Financial services

Concerns were raised over the fact that financial services did not form part
of the trade deal.

 

"The agreement should be less criticised for what it contains than what it
does not contain - namely the future of financial services," said Daniel
Pinto, chief executive of Stanhope Capital Group.

 

He said the City now needed to take its future in its own hands.
"Post-Brexit, it should lure international companies and revamp its
regulatory framework to make it much more flexible."

 

Nicolas Mackel, chief executive of Luxembourg for Finance, said the deal was
positive news for financial services.

 

"While financial services has never been covered by the trade negotiations,
this vital breakthrough bodes well for the conversations happening around
equivalences and delegation," he said.

 

"Until now, the souring negotiating mood on the future relationship was
putting these important financial footbridges across the Channel under great
pressure and there was a risk of collapse."--BBC

 

 

 

Covid-19: Irish government authorises Pfizer-BioNTech vaccine

The Irish government has authorised the use of the Pfizer-BioNTech Covid-19
vaccine.

 

The first delivery of the vaccine will be on 26 December with the first
vaccinations taking place on 30 December, the health minister has said.

 

In a tweet, Stephen Donnelly said: "In what's been such a tough year for so
many, this is really great to see."

 

The Republic of Ireland returns to stricter coronavirus restrictions on
Christmas Eve until 12 January.

 

Under the new restrictions, restaurants and gastro pubs must close for
indoor dining from Christmas Eve and are only permitted to offer takeaway or
delivery services.

 

Hairdressers, nail bars, cinemas, galleries and museums must also close.

 

Authorisation of the Pfizer-BioNTech Covid-19 vaccine in the country comes
at a time when coronavirus cases are rising significantly.

 

Delighted to report that I’ve just signed the regulation authorising the use
of the Pfizer vaccine in Ireland.

 

First delivery will be St. Stephen’s Day, first vaccinations 30th December.

 

"Ireland now has the fastest growing incidence rate in the European Union,"
Chief Medical Officer Dr Tony Holohan has said.

 

There have now been a total of 2,192 Covid-19-related deaths in the Republic
of Ireland, and a total of 83,073 confirmed cases.

 

The 14-day incidence rate of Covid-19 per 100,000 people is 166, which has
risen from 153 recorded on Wednesday.

 

The chief medical officer has said that unfortunately none of the indicators
of the disease are showing encouraging signs, RTE News reports.

 

Further doses of Pfizer vaccine arrive in NI

The National Public Health Emergency Team (NPHET) recommended stricter
measures, including the closure of non-essential retail, amid warnings over
the increase in Covid-19 cases.

 

Taoiseach (Irish PM) Micheál Martin said the measures equated to Level 5 on
Ireland's Covid-19 response plan - with a few adjustments.

 

'Really fast and really hard'

These included non-essential retail remaining open, with guidance that shops
do not run January sales.

 

NPHET said it does not believe the new measures will be sufficient to reduce
the numbers far enough.

 

Professor Philip Nolan said he does not think the measures being introduced
will be enough to bring the virus under control and this time it is coming
"really fast and really hard" and the next few days will determine what
happens in January.

 

Speaking on RTÉ's Morning Ireland, the chair of the Irish Epidemiological
Modelling Advisory Group for NPHET urged people to keep numbers to a minimum
and not to spend too much time together as it is long gatherings in indoor
settings where control of the virus is lost.

 

Under the new restrictions, people in the country may travel beyond their
own county until the end of Stephen's Day, the Irish cabinet announced.

 

However, there will be no new inter-county travel allowed after 26 December.

 

Household visits are also to be reduced to one other household from 27
December, but three households will still be allowed to mix on Christmas
Day.

 

>From 1 January, no household mixing will be allowed, except for essential
family reasons, such as providing care to children, elderly or vulnerable
people.

 

Boat service continues to bring Irish home from GB

Irish agriculture minister has Covid-19

Schools will return as normal in January after the Christmas break, while
childcare services and early learning will also continue as normal.

 

Travel restrictions from Britain will remain until 31 December under the new
rules.

 

media captionHow will the new Pfizer vaccine work?

Weddings can have up to and including 25 guests until 2 January 2020 but
from 3 January you can only have up to six guests.

 

The Irish Foreign Ministry has set up a GB emergency travel helpline for
Irish people who are finding it difficult to get home for Christmas.--BBC

 

 

 

Nuro set to be California's first driverless delivery service

California has given the go-ahead for a commercial driverless delivery
service for the first time.

 

Robotics start-up Nuro plans to start its driverless delivery operations as
early as next year.

 

It previously tested its R2 vehicles in the state in April, but the permit
will let it charge people for its service.

 

The firm's vehicles will be limited to 35mph (56km/h), and will be
restricted to operating in "fair weather" conditions.

 

“Issuing the first deployment permit is a significant milestone in the
evolution of autonomous vehicles in California,” said California Department
of Motor Vehicles director Steve Gordon.

 

“We will continue to keep the safety of the motoring public in mind as this
technology develops.”

 

Nuro was founded by two former Google engineers and has funding from
Japanese firm Softbank.

 

Its vehicles are designed to operate without a driver or passengers in them.

 

The R2 uses radar, thermal imaging and 360-degree cameras to direct its
movement. And it lacks a steering wheel, pedals or side-view mirrors.

 

The vehicle has an egg-shaped frame that is smaller than most cars in the
US. It also has two temperature-controlled compartments for deliveries.
Doors raise up to reveal the items once a code has been entered by the
recipient.

 

During a previous trial in Houston, Texas, in February, the R2 delivered
pizza for Domino's Pizza, groceries from supermarket chain Kroger and goods
for Walmart.

 

Even so, one transport expert said safety issues would continue to be a
concern.

 

"It will be very limited to begin with while the technology is thoroughly
evaluated," said Prof David Bailey from the University of Birmingham.

 

"So, for example, the vehicles will only be allowed on 'surface streets'
with their speed limited to 35mph, and the smaller Nuro delivery bots will
be limited to just 25mph.

 

"It's essentially a limited trial, but still a significant step towards a
driverless future."

 

In October, driverless taxis began operating in Phoenix, Arizona, as part of
Google's Waymo service.

 

A similar service, backed by the online tech and retail giant Alibaba, is
currently being trialled in China's biggest city, Shanghai.

 

They mark just two of numerous trials involving various autonomous vehicles
across the world.--BBC

 

 

 

U.S. holiday retail sales rise 3% as online shopping booms- Mastercard
report

(Reuters) -U.S. retail sales rose 3% during this year’s expanded holiday
shopping season from Oct. 11 to Dec. 24, a report by Mastercard Inc said on
Saturday, powered by a pandemic-driven shift toward online shopping.

 

U.S. ecommerce sales jumped 49% in this year’s holiday shopping season,
according to Mastercard SpendingPulse report, underscoring the COVID-19
pandemic’s role in transforming customers’ shopping habits.

 

Holiday e-commerce sales made up 19.7% of total retail sales this year, the
data showed, noting that options such as buy online and pick-up-in-store,
contactless technologies were key for retailers.

 

The holiday shopping season can account for the majority of certain
retailers’ annual sales, but the health crisis meant several retailers
including Walmart Inc and Target Corp, faced with capacity constraints in
certain stores, rolled out their holiday promotions early.

 

E-commerce giant Amazon.com Inc also pushed back its annual summer
promotional event to October, marking a longer-than-ever holiday season for
retailers who missed out on sales for several weeks during the lockdowns
earlier this year.

 

“This was a healthier holiday season than many had forecast,” senior advisor
for Mastercard Steve Sadove told Reuters in an interview.

 

Sadove believes the digital trend will continue to grow in 2021, with
smaller retailers also embracing new technology to offer customers new ways
to shop.

 

 

People spending longer at home due to extended work-from-home and remote
learning policies have fueled demand for home decor and home-improvement
products, with retail sales in the home furniture and furnishings category
jumping 16.2% according to the report.

 

Electronics and appliances also rose 6% during the period, as a reduction in
spending on dining out, travel and leisure encouraged shoppers to make other
purchases.

 

Sales of apparel and jewelry slumped overall, but e-commerce sales rose
15.7% and 44.6%.

 

The SpendingPulse report tracks spending by combining sales activity in
Mastercard’s payments network with estimates of cash and other payment forms
but excludes automobile sales.

 

 

'Parting is such sweet sorrow': EU and UK clinch narrow Brexit accord

LONDON/BRUSSELS (Reuters) -Britain clinched a narrow Brexit trade deal with
the European Union on Thursday, just seven days before it exits one of the
world’s biggest trading blocs in its most significant global shift since the
loss of empire.

 

Parting 'sweet sorrow': EU, UK clinch trade deal

 

The deal, agreed more than four years after Britain voted by a slim margin
to leave the bloc, offers a way out of a chaotic finale to a divorce that
has shaken the 70-year project to forge European unity from the ruins of
World War Two.

 

It will preserve Britain’s zero-tariff and zero-quota access to the bloc’s
single market of 450 million consumers, but will not prevent economic pain
and disruption for the United Kingdom or for EU member states.

 

Many aspects of Britain’s future relationship with the EU remain to be
hammered out, possibly over years.

 

“We have taken back control of our destiny,” British Prime Minister Boris
Johnson told reporters after posting a picture on Twitter of himself raising
both arms in a thumbs-up gesture of triumph.

 

“People said it was impossible, but we have taken back control.”

 

The UK formally left the EU on Jan. 31 but has since been in a transition
period under which rules on trade, travel and business remained unchanged
until the end of this year.

 

Johnson, the face of the pro-Brexit campaign, had said that since 52% had
voted to leave the EU, he did not want to accept the rules of its single
market or its customs union after Jan. 1.

 

The EU did not want to give unfettered privileges to a freewheeling,
deregulated British economy outside the bloc, and so potentially encourage
others to leave - resulting in a tortuous negotiation.

 

“It was a long and winding road,” European Commission President Ursula von
der Leyen told reporters, quoting the Paul McCartney song. “But we have got
a good deal to show for it... Finally we can leave Brexit behind us and look
to the future. Europe is now moving on.”

 

‘JUMBO’ DEAL

 

Johnson described the last-minute agreement as a “jumbo” free trade deal
along the lines of that done between the European Union and Canada, and
urged Britain to move on from the divisions caused by the 2016 Brexit
referendum.

 

The deal will also support the peace in Northern Ireland - a priority for
U.S. President-elect Joe Biden, who had warned Johnson that he must uphold
the 1998 Good Friday Agreement.

 

EU member Ireland said the deal, which the Commission website said would be
published soon, protected its interests as well as could possibly have been
hoped.

 

But it left much of the detail still to be worked out.

 

The trade pact will not cover services, which make up 80% of the British
economy, including a banking industry that positions London as the only
financial capital to rival New York.

 

Access to the EU market for UK-based banks, insurers and asset managers will
become patchy at best.

 

Johnson said the deal did not contain as much as he would have liked on
regulatory equivalence for financial services, but still contained some
“good language”.

 

JPMorgan said the EU had secured a deal that allowed it to retain nearly all
its advantages from trade with the UK but with the ability to use
regulations to “cherry pick” among sectors where the UK had advantages -
such as services.

 

“The unity and strength of Europe paid off,” French President Emmanuel
Macron said. “The agreement with the United Kingdom is essential to protect
our citizens, our fishermen, our producers. We will make sure that this is
the case.”

 

Brexit campaigner Nigel Farage said the deal would keep the UK far too
closely aligned with the EU, adding that he hoped this would be the
beginning of the end of the bloc.

 

Even with a deal, goods trade will have more rules, more red tape and more
cost. There will be some disruption at ports. Everything from food safety
regulation and exporting rules to product certification will change.

 

INVESTORS TURN TO DETAIL

A U.S. State Department official welcomed the agreement and said Washington
wanted good relations with Britain and the EU.

 

“As we have said, we respect the UK’s sovereign decision to depart the EU,
and we look forward to continued strong relationships with both the UK and
EU,” the official said.

 

When the UK shocked the world by voting to leave the EU, many in Europe
hoped it could stay closely aligned. Von der Leyen, quoting Shakespeare,
said that “parting is such sweet sorrow”.

 

The EU loses its principal military and intelligence power, 15% of GDP, one
of the world’s top two financial capitals and a champion of free markets
that had acted as an important check on the ambitions of Germany and France.

 

Without the collective might of the EU, the United Kingdom will stand
largely alone - and much more reliant on the United States - when
negotiating with China, Russia and India. It will have more autonomy but be
poorer, at least in the short term.

 

Sterling was up just 0.3% on the day by 1630 GMT, having earlier risen to
$1.3618 - just shy of last week’s 2-1/2-year high on news of the deal, as
investors turned to the detail.

 

The Bank of England has said that, even with a trade deal, Britain’s gross
domestic product is likely to suffer a 1% hit from Brexit in the first
quarter of 2021. And Britain’s budget forecasters have said the economy will
be 4% smaller over 15 years than it would have been if Britain had stayed in
the bloc.

 

British businesses, among the world’s worst hit by the coronavirus, were
downbeat.

 

“After four long years of uncertainty and upheaval, and just days before the
end of transition, businesses will be able to muster little more than a
muted and weary cheer,” said Adam Marshall, director general of the British
Chambers of Commerce.

 

The UK, which imports about $107 billion more a year from the EU than it
exports there, had bickered until the end over fish - a totemic issue, but
worth less than 0.1% of GDP.

 

Tony Danker, director general of the Confederation of British Industry, said
time was now critically short.

 

“Coming so late in the day, it is vital that both sides take instant steps
to keep trade moving and services flowing.”

 

The deal governing post-Brexit trade needs the approval of both the European
Parliament and the EU’s 27 member states. Ambassadors from EU countries will
meet on Dec. 25 to start reviewing the deal. The European Parliament said on
Thursday it would analyse the deal in detail before deciding whether to
approve the agreement in the new year.

 

 

 

Air Canada Boeing 737-8 MAX suffers engine issue

(Reuters) - An Air Canada Boeing Co 737-8 Max en route between Arizona and
Montreal with three crew members on board suffered an engine issue that
forced the crew to divert the aircraft to Tucson, Arizona, the Canadian
airline company said in an emailed statement on Friday.

 

Shortly after the take-off, the pilots received an “engine indication” and
“decided to shut down one engine,” an Air Canada spokesman said.

 

“The aircraft then diverted to Tucson, where it landed normally and
remains.” The incident took place on Dec. 22.

 

The crew received a left engine hydraulic low pressure indication and
declared a PAN PAN emergency before diverting the flight, Belgian aviation
news website Aviation24.be here reported.

 

“Modern aircraft are designed to operate with one engine and our crews train
for such operations”, the Air Canada statement added.

 

In a response to a Reuters request for comment, a Boeing spokeswoman
referred to Air Canada for information on the incident and did not provide
any additional comment.

 

Boeing and operators are bracing for heightened scrutiny as the MAX returns
from a 20 month safety grounding, but safety experts say such glitches are
common and usually go unnoticed.

 

The ‘MAX was grounded following two crashes linked in part to flawed cockpit
software. The engines were not implicated.

 

The United States lifted a 20-month-old flight ban on the 737 MAX last
month, with the U.S. Federal Aviation Administration outlining details of
the software, system and training upgrades Boeing and airlines must complete
before carrying passengers.

 

 

 

MUA named Insurer of the Year at the African Insurance Awards

At the 6th edition of the African Insurance Awards held on 18 December,
Mauritian insurer MUA was awarded Insurance Company of the Year. These
annual awards are organised by the African reinsurer Africa Re, with the aim
of promoting best industry practices and good governance whilst championing
innovation and sustainable growth.

 

The awards comprise four categories: Insurance Company of the Year, CEO of
the Year, Innovation of the Year and Insurtech of the Year.

 

The jury, comprised of respected African insurance industry leaders noted
“its strong growth these last three years; successful digitisation of its
services and client centric strategies.” The award was made to a company
that has demonstrated its firm commitment to respond to the needs of its
clients, a level of excellence, solid performances and high standards of
quality. Six insurance companies from across the continent were nominated in
the category.

 

Bertrand Casteres, MUA’s Group CEO, commented: “To win the award for African
Insurance Company of the Year would not have been possible without the
contribution of each member of the big MUA family, across six countries.
Since 2014 we have worked to position MUA as an innovative and dynamic
regional insurer, the acquisition of Saham Kenya being the most recent
milestone. We would like to thank Africa Re for organising this event, which
is key to the insurance sector’s development.”

 

The African Insurance Awards took the form of a virtual awards ceremony this
year, with 1250 insurance industry professionals gathered online. Fifty-two
nominations were submitted in the four categories. Alpha Direct Insurance
Company from Botswana won the category Innovation of the Year ; Valentin
Ojumah from FBN Insurance in Nigeria was named CEO of the Year ; and PULA
from Kenya won the award for AssurTech, destined for start-ups.

 

In his key-note address, Dr Corneille Karekezi, Africa Re CEO commented:
“From our initial assessment of the African insurance sector in 2020, it’s
evident that most insurance companies have been able to rapidly and
successfully adapt to the challenges brought about by the Covid-19 pandemic.
We sincerely hope that the resumption of activities will be characterised by
overwhelmingly positive changes, changes that will accelerate the process of
closing the insurance protection gap that exists today in our different
countries.”

 

Listed on the Stock Exchange of Mauritius, MUA is the largest insurance
company in Mauritius in terms of market capitalisation and features amongst
the top 3 best-performing stocks (since listing in 1993). MUA has over 670
employees in Mauritius, Kenya, Uganda, Rwanda, Tanzania and the Seychelles.

 

 

 

Malawi Govt to Amend Law to Deal With Cyber Bullying

Government says it plans to amend the Communications Act of 2017 to deal
with the new phenomenon of cyber bullying.

 

Minister of Information Gospel Kadzako said the amended Communications Act
would enhance the protection of children from cyber bullying.

 

A survey report by the Malawi Communications Regulatory Authority (Macra)
and the National Statistical Office confirms a high proportion of children
aged between nine and 17 who are connected to the internet without the
knowledge of their parents.

 

The report raises concern that if the authorities do not provide mechanisms
for reporting sexual harassment, children who have access to the internet
would be prone to cyber bullying including sexual harassment.

 

Kazako said that the statistics provide a good ground for the administration
to work out ways to resolve the crisis.

 

However, Kadzako could not say whether the amendment would also involve the
state-controlled Malawi Broadcasting Corporation which some people feel
should be completely out of state control.

 

The current Act gives the minister of Information powers over MBC.-Nyasa
Times.

 

 

 

Tanzania: China to Establish Agri Training Centre in Kongwa

A CHINESE based-Henan Agricultural Vocational College is considering setting
up a training centre in Kongwa District Dodoma region for middle cadre
professionals in agriculture and livestock development.

 

Minister for Education, Science, Technology and Vocational Training, Prof
Joyce Ndalichako said here on Wednesday that the college will collaborate
with government authorities to implement the plan.

 

The Minister, who was in the district to inspect progress of various ongoing
construction projects under her ministry said the new centre will increase
the number of competent professionals in the country.

 

"We are hoping to build the training centre here in collaboration with our
colleagues from Henan in China," she said.

The new project will be a joint work between Henan and the country's
Vocational Education and Training Authority (VETA).

 

The Minister stressed that the government is planning to embark on the
construction of 1000 secondary schools across the country, an initiative
that is expected to help to address the shortage of classrooms.

 

Early this week, the Minister of State President's Office Regional
Administration and Local Governments Selemani Jafo said that thousands of
pupils who passed their Standard Seven national examinations this year will
not all join secondary education next January due to insufficient
classrooms. Mr Jafo said a total of 74,166 pupils have been scheduled for
the end of February next year.

 

Dar es Salaam region topped others in the country with 14,926 pupils, a
large number that will be under the wait list followed by Geita (9,572),
Mara (7,809), Dodoma (7,145), Coast (6,888), Mbeya (5,549) and Kigoma
(5,498). Others are Morogoro (4,686), Kilimanjaro (3,015), Arusha (2,768),
Simiyu (1,837), Tanga (1,537), Iringa (907), Singida (674), Rukwa (564),
Manyara (557) and Shinyanga (234). "Shortage of classrooms is becoming a
serious problem. We want to end this crisis," said Prof Ndalichako further
directing the Tanzania Education Authority (TEA) to complete work on the
construction of hostels at Kibaigwa Secondary school.

The Minister vowed that the government will take all possible measures to
ensure the education infrastructures in the country are up to the required
standards.

 

Explaining on the training centre in Kongwa, the VETA Director-General, Dr
Pancras Bujulu said paper work has been completed and that after the
government approval, the construction work will begin immediately.

 

National Assembly Speaker and Member of Parliament for Kongwa Mr Job Ndugai
thanked the government and the vocational authority for putting up a
training centre plan in the district.

 

He said a number of youngsters in the area and in the nearby communities
will benefit from trainings that will be offered by the vocational centre
notably agriculture and livestock, which are the key economic activities in
the area.-Daily News.

 

 

Tanzania: Use of Natural Gas Saves Tanzania $15.6 Billion

Dar es Salaam — Tanzania has saved up to $15.6 billion (about Sh36 trillion)
in energy costs by switching to natural gas as a source of energy from July
2004 to September 2020, the Tanzania Petroleum Development Corporation
(TPDC) says.

 

The country saved this amount by using natural gas to replace expensive
fuels such as heavy furnace oil (HFO) and other imported petroleum products.

 

Calculations by TPDC show that the country saved $13.21 billion in power
generation, and $2.38 billion in industries that opted for natural gas as a
source of energy. Natural gas - which is more cost-effective compared to
petroleum products such as diesel, petrol and jet fuel - is also used in
some households, institutions and vehicles.

TPDC communications manager Marie Msellemu told The Citizen that at least 48
industries have been connected to, and are fully using, natural gas to power
their operations. Also, four institutions are using natural gas.

 

More than 1,000 households are currently using natural gas in Dar es Salaam
and Mtwara regions, while there is only one CNG vehicle filling station at
Ubungo in Dar, and two vehicle conversion institutions: Bico-UDSM and the
Dar es Salaam Institute of Technology (DIT).

 

The government is planning to construct five more CNG filling stations at
Ubungo, Kibaha, the Ferry Fish Market Area, Muhimbili National Hospital and
the University of Dar es Salaam. "So far, more than 400 vehicles are using
natural gas - thanks to online tax services. We (TPDC) have already designed
the map for the five stations, and are in the process of finding a
contractor," she said.

Tanzania has so far discovered 57.8 trillion cubic feet (tcf) of natural gas
deposits offshore and onshore.

 

However, exploration activities are still ongoing, with the industry
regulators saying only 30 percent of the country has been explored.

 

With the available gas resource, the government is still negotiating with
investors on the planned construction of a liquefied natural gas (LNG) plant
in Lindi Region.

 

The country is yet to conclude its Host Government Agreement (HGA)
negotiations with International Oil and Gas Companies (IOCs) on the LNG
project.

 

Ms Msellem said TPDC is optimistic that the HGA negotiations would resume in
January 2021.

 

"The technical team responsible for the HGA negotiations is currently in
Arusha discussing vital issues regarding the Uganda-Tanzania's East Africa
Crude Oil Pipeline (EACOP), whose preparations towards execution have
reached advanced stages," she said.

According to her, they have already paid Sh5.4 billion as compensation for
land appropriated in Lindi for the $30 billion LNG project.

 

In addition, TPDC has ventured into the petroleum business, competing with
private operators.

 

The corporation's plan is to construct 100 distribution centres countrywide
in the next five years, focusing on remote areas where there are no private
petrol stations.

 

Ms Msellem said they have secured 300 acres of land at Chongoleani in Tanga,
and 100 acres at Zuzu in Dodoma Region for locating special oil reserve
tanks.

 

"The reserve tanks will help to feed the country during times of oil
scarcity. They will also help to control price escalations," she said.

 

The year-2020 was good for the oil sector as Uganda and Tanzania signed the
Host Government Agreement (HGA) for construction of the East Africa Crude
Oil Pipeline project in September, Ms Msellem said.

 

On October 27, 2020, the French oil group Total signed an agreement with the
government of Tanzania (HGA), for the construction of the EACOP.

 

The oil and gas sector offers huge potential for economic growth in the
eastern African region.-Citizen.

 

 

 

Nigeria: Aero Contractors Petitioned Over Stranded Sokoto Passengers

Aero Contractors has been petitioned by the Magajin Garin Sokoto, Alhaji
Hassan Ahmed Danbaba, a ruling class member of the Sokoto Caliphate, over
the alleged deliberate maltreatment of Abuja-Sokoto bound passengers by Aero
Contractors.

 

According to the petition filed to the Chief Executive of the Federal
Competition and Consumer Protection Commission (FCCPC), the petitioner,
Alhaji Danbaba, said: "It is on record that on the 17th of December,
passengers were left stranded from 6 pm to 1.30 am at Nnamdi Azikiwe
International Airport, Abuja.

 

"The airline proffered no valid explanation or apology for the extensive
delay. With the current state of insecurity in the country and its attendant
problems, it is unsafe for passengers travelling beyond the borders of
Sokoto State to places such as Kebbi and Zamfara, to arrive Sokoto at 1.30
am," the Magajin Gari of Sokoto noted.

 

 

The petition urged the FCCPC to intervene and redress the issue.

 

When contacted, the Director, Surveillance and Enforcement, FCCPC, Engr.
Shamm Kolo, said his department, which handles complaints, is yet to receive
the said petition.

 

He however indicated that the Commission would take up the matter with Aero
Contractors.

 

Responding to Daily Trust, the Chief Executive Officer of Aero Contractors,
Capt. Ado Sanusi, clarified the situation.

 

Sanusi said: "That petition has been discussed and he has already seen that
it is not our fault. What happened was that we cancelled the flight. We had
an AOG (aircraft on ground); the aircraft was faulty and we cancelled the
flight but people started pleading with us, begging us to reinstate the
flight, that they had a very important function the following day.

 

"So based on that, we reinstated the flight and told them that the flight
would arrive at 1:00 a.m. They said they didn't have a problem.

 

"So, we reinstated the flight and the people on the flight including some
commissioners called me and thanked me.

 

"He didn't know the story behind it. So I called him and explained to him
what happened. We have resolved it and he now understands the reason why the
flight was delayed," Sanusi concluded.-Daily Trust.

 

 

 

Nigeria: Airlines, Others Await N5bn Bailout 2 Months After

Lagos — Almost two months after the federal government approved a N5 billion
bailout for the aviation sector, operators are worried over the delay in its
release, even as many airlines and allied businesses are on the brink of
collapse.

 

The government had initiated the palliative to help the industry recover
from the headwinds of the COVID-19 pandemic.

 

On November 2, 2020, the Minister of Aviation, Senator Hadi Sirika disclosed
that N5bn has been approved for the industry.

 

Airlines are to get N4bn while N1bn was for allied service providers like
ground handling companies, caterers, among others.

 

 

Some operators yesterday confirmed that although the government promised to
pay the money before the end of December, they were yet to be paid.

 

"We were told it should have been paid by now but Dana Air has not seen
anything so far," said Chief Operating Officer (COO) of Dana Air, Mr Obi
Mbanuzuo.

 

Spokesperson for Azman Air, Mr Nura Aliyu stated that the airline was yet to
also get the palliative but was hopeful that it would be disbursed soon.

 

"All I know is that it is still in the process. Hopefully before January, it
would be disbursed," he said.

 

The ground handling operators said they are yet to access the fund.

 

The Managing Director of the Skyway Aviation Handling Company PLC (SAHCO),
Mr Basil Agboarumi said his firm hasn't accessed the palliative.

 

Mr Ikechi Uko, an aviation stakeholder said the delay in the disbursement
could be dangerous.

 

"Why promise and then not to deliver? Delay is dangerous. The Airlines need
support and they need it now," he said.-Daily Trust.

 

 

 

Nigeria: Why Poultry Farmers Not Crowing This Festive Season

Tomorrow, millions of Christians in Nigeria will join the rest of the world
to celebrate Christmas. These festivities put smiles on the faces of poultry
farmers as they record huge sales and profit during the period.

 

Many farmers specifically raise broilers targeting the Christmas and New
Year celebrations. This year, however, the farmers are rather not happy as
they struggle with low sales because of the high price of chicken influenced
by the cost of feed.

 

Those who spoke with Daily Trust said the little profit they make was not
worth the effort and time while others said they were counting losses.

 

 

A market survey across some major cities indicated that the prices of
chicken have gone up by almost 100 per cent, which also reflected the 100
per cent increase in the prices of feed which farmers had to struggle with
since the beginning of this year.

 

"Nobody was willing to buy my chicken at N5000; buyers wanted to buy at
N3,500. Very few bought at N4,500. After the sales, I was devastated
considering the expenses I incurred: I only made N5,500 gain. It wasn't
worth the effort at all," Austin Ben, a smallholder farmer who raises
broilers for Christmas every year, told Daily Trust on phone from Akwanga
Nasarawa State Wednesday.

 

In Lagos, our correspondent reports that the price of chicken varied,
depending on the farm price, size and the extent of profit the retailer or
farmer is expecting.

 

A Noiler breed in Jakande Estate, Isolo was sold at N6,000 while a broiler
was sold for N4,000 to N5,500. Layers were sold at between N2,200 and
N2,500.

 

 

A poultry farmer in Canoe area of Ajao Estate in Lagos who sold his broilers
at N5,000 each in 2019, said this season, he was selling the same stock at
N7,000.

 

Another poultry farmer based in Epe, Folake Aina, said, "No poultry farmer
is happy this year because most of them are operating at a loss. This is
attributed to the prices of feeds. At the moment, the cost of feeding the
birds is more than the cost of selling eggs or even the birds."

 

He said many targeted the festive season, but the problem is the capability
to restock after the chickens have been sold off."

 

At Oregbeni market in Ipoba Hill in Benin, Edo State, our reporter gathered
that the prices of chickens have gone up with the big sized ones costing
between N7,000 and N9,000.

 

 

An average size chicken that hitherto sold for between N3000 and N4000 now
costs between N4,000 and N5000. The situation is not different at New Benin,
Aduwawa and Ekiosa Satana markets and others across Benin metropolis.

 

Residents who besieged the markets for the Christmas shopping, however,
lamented that with the price increase, many may find it difficult to get
chickens.

 

One of the buyers, Mrs Osademwame Gladys, lamented that she came to the
market with the intention of buying two chickens for the Christmas but found
that she may only afford one.

 

She said: "The chicken we used to buy for N5000 is now N7,000. Everything in
the market has gone up. But we will still celebrate Christmas."

 

In Calabar, the Cross River State capital, chickens are affordable only to a
few, our correspondent gathered.

 

In days close to the Christmas, the prices of big and small chickens are
variously sold at N6000, N7000 and N8000 at the popular markets and
poultries in Calabar depending on size. The smallest chicken generally goes
for N5000.

 

Madam Ikwo Francis, 58, who runs a poultry farm in Mbukpa area of Calabar
South said the "prices of feeds, transport and general inflation have
affected everything, especially in this festive season.

 

With the high cost of chickens, many families who relish eating the birds
mostly at Christmas may not be able to afford many of them as they did in
past years. This apparently will result in low sales and increase losses
many farmers, who months ago stocked their pens targeting the Christmas and
New Year would face.-Daily Trust.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

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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