Major International Business Headlines Brief::: 15 November 2020

[Bulls n Bears]

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 15 November 2020

 


 

 


 <https://www.gemportal.co.zw/> 

 


 

 


 

 

ü  Tata: Concern over future of Port Talbot steelworks

ü  Wells Fargo former boss charged with misleading investors

ü  The small shops in battle with the retail giants

ü  University staff urge probe into e-book pricing 'scandal'

ü  Robots to take on more supermarket tasks

ü  Covid: Watchdog shelves plans to protect loyal savers

ü  Zambia on brink of defaulting on foreign debt

ü  Tesco apologises after online issues amid Christmas rush

ü  S&P boasts record close with earnings reports adding to vaccine fueled
optimism

ü  Qualcomm receives U.S. permission to sell 4G chips to Huawei in exception
to ban

ü  Rwanda: Small Batches of Rwandan Coffee Pack Big Punch in World Market

ü  Nigeria: In Four Years, Budget Proposal for Buhari's Presidential Air
Fleet Increased By 191%

ü  Nigerian Govt Plans to Spend N400 Billion On Npower, Tradermoni, Others
in 2021

ü  Eritrea: Promoting Sustainable Land Management

ü  Kenya: Tullow Oil Submits Work Plan as Govt Threatens to Revoke 15-Month
Licence

 

 


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

 


 

Tata: Concern over future of Port Talbot steelworks

Tata Steel has announced plans to make its UK business, based mainly in Port
Talbot, "self-sustaining" while selling its Netherlands-based operations.

 

Tata Steel said it planned to sell the European arm of its business and keep
the UK business running without financial support from India.

 

Wales' Economy Minister Ken Skates said the news was "extremely worrying"
for Tata's 8,000 UK workers.

 

Tata said it was speaking to the UK government about the business's future.

 

The UK government said: "This is a commercial decision for Tata Steel. We
will continue to work with Tata Steel and other stakeholders as the company
shapes its business strategy for the future.  

 

"The UK government remains committed to supporting a sustainable, long-term
future for steel making in the UK." 

 

The India-based business announced Swedish steel firm SSAB had initiated
talks about the acquisition of its business in the Netherlands, including
its steelworks at Ijmuiden, north-west of Amsterdam.

 

Tata said it plans to separate the UK and Netherlands arms of the business
and "will pursue separate strategic paths for the Netherlands and UK
business in the future".

 

It added: "Tata Steel continues its dialogue with the UK government on
potential measures to safeguard the long-term future of Tata Steel UK and is
also reviewing all options to make the business self-sustaining without the
need for any funding support from Tata Steel India in the future."

 

About half of Tata's 8,000 UK workers are based at Port Talbot, with several
other sites around Wales and the rest of the UK.

 

T V Narendran, CEO and managing director of Tata, said: "We are continuing
our discussions with the UK government regarding the future strategy of our
UK business."

 

What does it mean for Port Talbot's steelworks?

Mr Skates said: "Today's announcement will be extremely worrying for Tata
Steel workers across Wales, their families, local communities and the supply
chain, but we know the steel industry has a future in Wales and the UK.

 

"The first minister and I spoke with Tata today and they said they are
determined to find a sustainable future for operations in the UK and to
safeguard the 8,000 workforce, most of which are in Wales.

 

"The first minister is seeking urgent talks with the prime minister and I
will speak to the secretary of state for BEIS (business, energy and
industrial strategy) and the secretary of state for Wales to call for urgent
action.

 

"The industry is now waiting for the UK government to take immediate action
to safeguard the sector and protect jobs. Every day they are not at the
table is another day lost for workers and for an industry of strategic
importance."

 

Concerns have been issued over Tata's future several times in recent years,
with Aberavon MP Stephen Kinnock saying in July that a plan to shut off two
blast furnaces and replace them with electric arch furnaces raised "massive
questions" about the future of the industry.

 

He also said the company would need a £500m bailout to get through the
coronavirus pandemic.

 

David Rees, the Labour MS for Aberavon, said in a tweet: "Once again our
steelworkers are facing challenging times following this news. Almost five
years ago they and their families went through hell as their livelihoods
came under threat with the then announcement of a proposed sale of the Tata
steel plants in Wales

 

"Today, those concerns have been resurrected with the announcement that Tata
Steel Europe is likely to be split with the Dutch components being sold to
Swedish steelmaker SSAB leaving the UK element to stand alone."

 

Worrying announcement for @TataSteelUK workers and local communities across
Wales.

 

The steel industry has a strong future in Wales and the UK - we will do all
we can to protect it.

 

UK Gov must also take immediate action to safeguard the sector and protect
jobs.

 

Steel industry analyst Dr Kathryn Ringwald-Wildman said she was "not
surprised" by Tata's announcement.

 

She said: "The company has made no secret of the fact it's wanted to offload
the European side of the business.

 

"Previous negotiations have fallen through and we've had the pandemic which
has depressed the market.

 

"It's made things difficult for automotive industry - which is a major steel
customer - and there's still uncertainty in the future."

 

What are the trade unions saying?

Tony Brady, from the Unite union, said it was "essential" that Tata is able
to keep trading with the EU after the end of the Brexit transition period on
31 December.

 

He said: "Today's news effectively means that Tata's European steel business
will now be based solely in the UK.

 

"With Brexit fast approaching it is essential that Tata's UK steel business
is able to continue trading effectively across the European Union.

 

"This means that it is crucial that the UK comes to a trade agreement with
the EU in the coming weeks. The UK government have told us that Brexit will
be good for Britain and British jobs, they must deliver on that promise."

 

Meanwhile, Roy Rickhuss, the general secretary of the Community Union, said
Tata must now "reaffirm their commitment to the UK".

 

He said: "We will challenge Tata at every turn and rest assured we will
protect our members' interests. Should we conclude the separation of Tata
Steel UK would place our members' livelihoods at risk then we will
vigorously oppose the break-up of the company.

 

"There is no doubt a sustainable future for Tata Steel UK depends on Tata
and the government concluding a deal that will support the transition to
low-carbon steelmaking.

 

He added: "There are many challenges ahead but we know Tata Steel UK can
have a bright future.

 

"We take confidence from the fact our steelworkers are the best in the
world. Under the right leadership, given the right tools, and the chance to
compete on a level playing field, we back ourselves to compete with the
world's best."

 

The GMB union said it was "clear" that "manufacturers are expecting the UK
to plot a different path from our European neighbours".--BBC

 

 

 

Wells Fargo former boss charged with misleading investors

US financial regulators have accused the former boss of Wells Fargo bank and
another former executive with misleading investors in the latest charges to
arise from the bank's fake account scandal.

 

The Securities and Exchange Commission said the bank leaders endorsed and
disclosed sales metrics they should have known were false.

 

Ex-chief John Stumpf agreed to pay $2.5m (£1.9m) to settle the charges.

 

He did not admit or deny the claims.

 

Carrie Tolstedt, the former head of Wells Fargo's community banking
operation, is fighting the fraud claims in court.

 

Wells Fargo has been under the scrutiny of regulators since 2016, when it
was revealed the firm had boosted its sales by opening millions of accounts
without authorisation.

 

This year it paid $3bn to settle an investigation by the US Department of
Justice and SEC. It remains under government monitoring and is also subject
to an order by the Federal Reserve that limits its growth.

 

The scandal has led to the departure of two Wells Fargo leaders, including
Mr Stumpf, who stepped down in 2016.

 

Now ex-Wells Fargo CEO John Stumpf testifying at a Senate Banking, Housing,
and Urban Affairs hearing in 2016.

 

 

Earlier this year, he agreed to pay $17.5m to settle charges tied to the
scandal, marking a rare example of a bank executive being personally
punished for failing to stop misconduct. The Office of the Comptroller of
Currency, a US banking regulator, also barred him for life from the banking
industry

 

Ms Tolstedt is facing a $25m fine in a related case, which she is also
fighting in court.

 

"If executives speak about a key performance metric to promote their
business, they must do so fully and accurately," said the SEC's director of
enforcement Stephanie Avakian, when speaking about the latest charges.

 

"The Commission will continue to hold responsible not only the senior
executives who make false and misleading statements but also those who
certify to the accuracy of misleading statements despite warnings to the
contrary."-BBC

 

 

 

The small shops in battle with the retail giants

When Boris Johnson came on television to announce the November lockdown, it
was the final straw for Joh Rindom.

 

Before the prime minister had even finished speaking, the shop owner from
Bristol had hammered out her response on Instagram.

 

"Small businesses will once again suffer immeasurably," she told her
customers.

 

"So PLEASE shop small," she added. "Resist Amazon at all costs, and think
about how you 'vote with your money'."

 

Joh runs That Thing, an independent fashion, homeware and accessories shop.
Like many smaller retailers she's just been through the hardest year she's
ever known.

 

Joh Rindom's Instagram post

It is always hard to compete with the big online brands but this year,
shop-owners like her have had to stand by as rival outlets - deemed
essential - remain open, scooping up Christmas trade.

 

By the end of November non-essential shops will have been closed for 17
weeks of the year. Some say it's a "use it or lose it" situation: shoppers
need to support them or next Christmas they won't be there.

 

"Small businesses have websites too," says Joh. "People just need to wake up
a bit and think outside that box."

 

Perhaps because people have spent more time at home, perhaps because they've
focused on what is important to them, this year there does seem to be a
"fashion for independents", she thinks.

 

A third of us plan to spend more at independent stores this year than we did
in 2019, according to a poll commissioned by Enterprise Nation, an
organisation which supports start-ups. It found younger shoppers are even
more determined, with half of under-35s planning to shop more at
independents.

 

Small scale sellers have been quick to respond to these pledges, offering
everything from vintage handbags to macrame plant hangers. There are more
than 42 million posts tagged #shoplocal on Instagram.

 

Larger independents are showing their agility too. Those who weren't already
trading online have been quick to remedy that, and while their budgets make
it hard to compete with the likes of John Lewis and Marks and Spencer,
they're finding ways to gain traction: reaching out to local online
community groups, tapping into nostalgia with "Hovis-ad style" bicycle
deliveries, and emphasising their environmental credentials.

 

Others are innovating even more: chatting one-to-one with customers on video
calls and offering personal shopping over Zoom.

 

Loki Wine Merchants in Birmingham has held virtual wine tastings, and DJV
Boutique in Ipswich launched online fashion shows and a service that helps
select, wrap and send your gifts for you.

 

DJV's owner Mandy Errington says loyal customers are keen to support them
but it doesn't stop there. "We're attracting new people because of the
personal services," she says.

 

But independents know that still won't be enough to get them noticed in the
run up to Christmas, so some are joining forces.

 

In Bristol Joh Rindom has banded together with 22 other independent outlets
to create an online directory. They are putting posters up around the city
advertising "Bristol Independents Online" with a QR code linking to their
website.

 

Christmas markets, which usually see the streets of many UK towns and cities
crammed with shoppers elbow-to-elbow, have inevitably been cancelled. But
many of those are being replaced with virtual forums, offering the chance to
buy direct from the people who would usually run stalls.

 

More permanently, Bookshop.org has recently launched in the UK. Marketing
themselves as an "ethical" way to fight the might of Amazon, it's hosting
online shopfronts for more than 250 of the UK's independent booksellers,
offering them a large slice of any sales revenue they help generate.

 

For its part, Amazon points out it is not the enemy to small businesses that
it is sometimes painted. More than half of the physical products sold on
Amazon come from small and medium-sized third party businesses, it says.

 

In October it held a small business promotion to drive business their way
and it runs bootcamps and online learning sessions to support small sellers
in conjunction with Enterprise Nation.

 

Emma Jones, the founder of Enterprise Nation, says Amazon and similar forums
can help to build a "broad exposure to customers".

 

"Yes, have your own e-commerce website and social channels, but it also
makes sense to try out selling on Amazon, Etsy or Uber Eats for restaurants
and caterers, as they offer access to a vast customer network," she says.

 

Lavinia Davolio, founder of confectionery boutique Lavolio in London, says
before Covid-19 hit around half of her sales were online, the majority of
them through Amazon. But this year those sales have doubled. Amazon has been
"a lifesaver" she says.

 

So will these strategies be enough to see local retailers through?

 

Oliver Vernon-Harcourt, a partner in Deloitte's retail consulting practice,
says strategies like these - building networks, innovating with digital
technology, reaching out to new customers - could make all the difference.

 

"The businesses that are proactive about trying different things - testing,
learning, failing as quickly as possible - they're the ones who have the
best chance of thriving," he says. What's more they'll then be in a stronger
position to compete in future years.

 

But in the end, says Andrew Goodacre from the British Independent Retailers
Association, it will come down to consumers. Will they put their money where
their mouths are?

 

"It will only be enough if people don't panic and buy everything [for
Christmas] now," he says.

 

"There are two things I'd urge consumers to do: wait until December, you'll
have better choice and better value. And if you are shopping online, look
for the shop you know, not the product you want."-BBC

 

 

 

University staff urge probe into e-book pricing 'scandal'

More than 2,500 UK university staff have called for an investigation into
the "scandal" of excessive pricing of academic e-books.

 

"Price rises are common, sudden and appear arbitrary" with some digital
books increasing by 200%, they say in a letter to Education Committee MPs.

 

Organiser Johanna Anderson said some e-texts can cost 10 times print copies,
with taxpayers and students the losers.

 

Publishers say the costs are due to the different formats and shared-use.

 

But Ms Anderson said the situation had become so financially serious for
university libraries that it was time for MPs and competition authorities to
hold publishers to account.

 

She cited the example of an economics book that costs £44 for a print copy
but is £423 for a single e-book user and £500 for three users. An employment
law book costs £50 for a hard copy, but is £1,600 for three users of the
digital version.

 

In another case, a book on working in childcare is listed at £30 for a hard
copy but online costs £1,045 for unlimited access for a year. "There are
many, many more examples," Ms Anderson said.

 

'Learning suffers'

Prices have been rising for some time, but the University of Gloucestershire
librarian said there were reports of increases during lockdown, when access
to libraries and bookshops was restricted and getting course material
difficult.

 

"It's a scandal. It's public money," she said. "Students are shocked when I
tell them just how much it costs to get them their texts.

 

"People just assume we can get books for the prices they see on Amazon and
Kindle. It just doesn't work like that for universities.

 

"The academic publishing business model is broken, and as you can see from
the number of people who have signed the letter we think it is time for an
investigation," she said.

 

Lectures are increasingly having to be designed around what texts are
available and affordable, not what is best for learning, Ms Anderson said.

 

Buying multiple copies of print books is not the answer and simply not
practical in the digital age when so much is moving online, she added.

 

Licensing, copyright, book-buying "middlemen" and a trend for publishers to
"bundle up" access to books into one expensive package all play a role in
what texts are available and at what cost. "In some cases, it's like having
to buy the whole of Waterstones to get access to a couple of books," Ms
Anderson said.

 

Librarians, lecturers, researchers and other representatives from almost
every university in the UK have attached their names to the letter. It says:

 

·         A monopoly created by copyright law is the root cause of "these
huge pricing differentials" and there is no justification for it

·         Earlier this year at least two well-known academic publishers
raised the cost for a single-user e-book by 200% with no warning

·         Licences of e-books are often confusing and frequently restrictive

Publishers can withdraw e-book licences previously purchased by universities
and enforce new ones.

 

 

The letter says: "Given that much teaching will be conducted online this
term, and university spaces will not be fully open, university librarians
are once again examining reading lists and finding that much of the e-book
content is either unavailable, or prohibitively expensive.

 

"A few key players monopolise the market and with the lack of competition or
alternative options, we can either pay the extortionate prices, or not
purchase the e-books at all. University library budgets are finite, and are
frequently prone to cuts."

 

Free upgrades

Publishers rejected claims of excessive pricing and of using the pandemic as
an excuse to raise prices.

 

Stephen Lotinga, chief executive of the Publishers Association, said the
industry understood the budgetary pressures facing libraries, but added:
"Many of the examples cited by this campaign are not comparing like for
like.

 

"Prices will vary according to the level of use a book receives and the
investment made in creating the product. A digital textbook is often put
together using multiple authors over a long period, is regularly updated,
has additional functionality and might be used by entire cohorts of students
on a course or lent thousands of times."

 

Some publishers declined to comment or did not reply to emails.

 

However, publisher Taylor & Francis, which also owns Routledge, said:
"Comparing individual print costs to a digital licence which gives access to
many readers does not represent the reality of how the different formats are
used.

 

"Taylor & Francis believe our e-textbooks are fairly and competitively
priced for the library market."

 

The company also pointed out that during the pandemic and lockdown it had
provided some free e-book access to students as well as free upgrades to
libraries from single to unlimited user access.

 

Helen Kogan, managing director of publisher Kogan Page, said the firm's
pricing was "consistent with industry standards".

 

"It allows flexible options for multi-user and perpetual access licences
which provide a fair return to authors and ensure investment in
high-quality, rigorous academic e-books to support students' learning."

 

Kogan Page had also been working with educational institutions during the
pandemic to ensure increased access to texts, she added.

 

A spokesman for the Education Committee said its process was to review the
letter and issue, and then decide how to take the matter forward.—BBC

 

 

 

Robots to take on more supermarket tasks

The next time you pack your bags at the supermarket checkout, give yourself
a small pat on the back.

 

A task which is so simple for humans - quickly and efficiently packing a bag
of groceries of different sizes and shapes without crushing anything - is
something that until recently has been beyond the abilities of robots.

 

It requires vision systems to locate the produce, a flexible and strong hand
to grab items and a sophisticated artificial intelligence which knows that a
carton of eggs should not be stacked under a four-pint bottle of milk.

 

It is a problem that James Matthews, the chief executive of Ocado Technology
(part of the Ocado Group) is wrestling with in the warehouses that handle
online orders.

 

The company has a sophisticated warehouse in Erith in east London, which is
already highly automated.

 

Hundreds of robots zip around a grid, collecting groceries and bringing them
to a member of staff who will pack them into boxes, which are then loaded on
to trucks for delivery.

 

"We're typically picking say 50 different items of different shapes and
sizes, and how dense we pack them is absolutely critical to the economics of
our business.

 

"If we put one thing per box on the road, then we're going to use a lot of
vans very inefficiently."

 

Ocado sell its system to supermarkets all over the world, but those
customers are demanding ever greater efficiency, so training robots to pack
the bags would make economic sense.

 

The company had already been working with five robotic arms at the Erith
warehouse,

 

"It's a very challenging space. It's not one where you can plot a very
direct path to a solution there. Some of this stuff is still warm from
academia," says Mr Matthews.

 

But now the process is accelerating with two big acquisitions. Ocado is
paying $262m (£198m) for Kindred Systems, a San Francisco-based firm that
makes a robotic sorting systems.

 

In addition, it is buying Las Vegas-based Haddington Dynamics for $25m
(£19m) which makes lighter-weight, and highly sensitive robotic arms.

 

Kindred's sorting system is already used to pick products in clothing
warehouses, including some owned by Gap.

 

Mr Matthews thinks this tech can be adapted and developed for the grocery
sector.

 

"The two systems, we now intend to bring together. It will have some of our
machine learning models that is very specific to grocery problems, and it
will have some aspects of the Kindred platform that they've gone much deeper
on."

 

In particular, Kindred is more advanced on tele-operation, or supervised
autonomy, which is where humans monitor and control multiple robots
remotely.

 

"They [Kindred] can watch hundreds of these robots. And in the very small
percentage, but critical moments, when the robot needs some help, they can
provide that remote system very, very effectively."

 

So over the next year Ocado will be training the artificial intelligence
used by Kindred, on grocery products.

 

The company hopes to have a robot that can replace human pickers within two
or three years, but people will not be completely replaced.

 

"I think we are going to see an acceleration of the deployment of automation
in the next three to five years. And so that's going to take a big bite out
of those manual tasks. But I suspect in 10 years, there's still going to be
a sizable portion of activities that are human led," says Mr Matthews.

 

Mr Matthew is less forthcoming about the way Ocado plans to use technology
from Haddington Dynamics, the maker of lightweight robotic arms, which can
move very precisely.

 

"We've got some interesting, somewhat 'secret squirrel' use cases where
lighter is a big play," he says.

 

Mr Matthews is not giving much away, but says there is a limit to what a
robotic arm can do if it just uses cameras to sense objects - imagine
packing a bag if you could only use your eyes and not feel the products.

 

Haddington's robotic arms are highly sensitive, so Ocado is researching how
they might be integrated into the warehouse system.

 

There's little doubt that the demand for such technology is only going to
grow.

 

Back in July the chief executive of Ocado Group, Tim Steiner said: "The
world as we know it has changed.

 

"As a result of Covid-19, we have seen years of growth in the online grocery
market condensed into a matter of months; and we won't be going back."

 

Analysts say that means supermarkets will have to upgrade their systems.

 

"I think that what the pandemic has showed is that the infrastructure that
retailers had in place for moving in the e-commerce world, really failed
spectacularly," says Miriam Burt, managing vice-president at the research
firm Gartner.

 

In particular she points to the so-called "last mile" - the picking, packing
and delivery of groceries.

 

"It's very difficult to do last mile fulfilment profitably, partly because
most of it is human labour," she says. So technology from the likes of Ocado
will be in high demand.

 

However, rivals like Norway's AutoStore and US-based Takeoff will also be
looking to take market share.

 

"Companies everywhere will up their game - both those that will want to use
Ocado and those that will want to compete with it," says James Lockyer, a
technology analyst at Peel Hunt, in a recent research report.

 

"It doesn't surprise us that there is more noise from start-ups trying to
take on Ocado at its own game, such as Takeoff. However, that does not take
away from Ocado's chances of being the global leader."

 

In time, Mr Lockyer sees Ocado expanding beyond groceries.

 

"From vertical farming, to automation of fresh food delivery fulfilment, to
the robotic meal prep of ready-to-eat meals, Ocado Group could actually end
up revolutionising the entire supply chain."-BBC

 

 

 

Covid: Watchdog shelves plans to protect loyal savers

Plans to protect savers and investors from ultra-low rates and investment
platform exit fees have been shelved by the financial regulator.

 

The Financial Conduct Authority (FCA) has dropped plans for a single
long-term interest rate as a backstop for non-switching savers.

 

Also gone are proposals to restrict fees when exiting investment platforms.

 

The FCA said the decision came "in light of the ongoing impact of
coronavirus and economic conditions".

 

Loyal savers

Savers who leave their money in the same account with one of the major
providers can receive as little as 0.1% in interest.

 

Such low rates can apply to instant access savings accounts, as well as easy
access cash Individual Savings Accounts (Isas).

 

Under the plans, firms would have been required to pay long-standing
customers the same rate as customers who had recently come off an
introductory offer. This would have been known as the Single Easy Access
Rate (SEAR).

 

The FCA said the current economic situation, in which savings rates have
been slashed, made this less of a problem.

 

"As interest rates for new products fall, so does the gap between rates paid
to new and longstanding customers, and the size of the harm falls," it said.

 

Citizens Advice said the FCA needed to ensure the decision was not
permanent.

 

"When the single easy access rate was proposed in January, the FCA predicted
it would save people £260m a year," said the charity's acting chief
executive Alistair Cromwell.

 

"It's vital the FCA keeps track of how much banks penalise savers just for
staying loyal, and it should be ready to implement the single easy access
rate when interest rates rise."

 

Exit fees

The FCA has also ended a separate investigation into potentially restricting
exit fees charged by investment platforms.

 

It said there had been a shift in the market away from exit fees, and it
would continue to monitor the situation.

 

Richard Wilson, chief executive of investment platform interactive investor
- which charges a flat fee, said: "We are saddened to see this news snuck
out.

 

"There are still platforms out there that have grown far too complacent,
relying on customer inertia and hefty penalties."--BBC

 

 

 

Zambia on brink of defaulting on foreign debt

Zambia is on the brink of defaulting on its foreign debt after it missed a
payment of more than $40m (£30m) last month.

 

A so-called grace period will expire on Friday, which would make it Africa's
first country to default on sovereign debt since the coronavirus pandemic.

 

Zambia was already struggling with its $12bn external debt load.

 

But coronavirus has aggravated pre-existing financial pressures in the
country.

 

The International Monetary Fund (IMF) said on Friday it was in talks with
Zambian authorities about how best to support the country, but its help
would depend on Zambia taking steps to make sure its debt was sustainable.

 

The pandemic has put an additional burden on health services and depressed
economic activity and the government has said that is the cause of its
difficulties.

 

Africa Live: More on this and other African stories

Where do governments borrow money?

But critics have blamed President Edgar Lungu's poor economic management and
there have been concerns about corruption in recent years.

 

Zambia has asked for a delay to interest payments until April next year but
creditors have not yet agreed.

 

The debt includes about $3bn in bonds issued in Europe.

 

'Reckless splurge'

The country has been lent money by China and Chinese institutions amounting
to $3bn, the Reuters news agency reports.

 

The China Development Bank has agreed to a six-month delay in debt
repayments, but creditors outside China complain that the exact terms and
structure of the Chinese loans are unclear.

 

According to Stephen Chan, an expert on African politics at the University
of London, the last five years in Zambia has seen "quite a reckless splurge
in terms of debt accumulation".

 

He told the BBC's Newsday programme that without a plan to repay the debt, a
moratorium may not be forthcoming.

 

Zambia's Finance Minister Bwalya Ng'andu told the Reuters news agency
earlier this week that the country was doing "everything possible" to avoid
a default.

 

For a developing country that defaults, much of the damage is already done
before the event actually happens.

 

If international investment funds know that a default is a real risk, they
may steer clear of the country concerned. If they are prepared to put their
money in they will seek a high return to compensate them for the risk of
losing it.

 

To put it another way, that means higher borrowing costs for the country
concerned and there are other pressing demands on government finances from
the health and economic consequences of the pandemic.

 

The difficulty and cost of borrowing can be aggravated if a default does
occur.

 

Zambia is not alone in struggling with its debts. Many other African
countries have been identified by the IMF and the World Bank as having a
high risk of "debt distress" which can lead to default.

 

A debt-relief initiative by governments of the G20 leading economies has
eased the immediate pressure somewhat for some countries, but looking ahead,
much will depend on whether they extend it and whether private sector
creditors can be persuaded to take part.

 

'Immoral demands'

Sarah-Jayne Clifton, director of the UK-based Jubilee Debt Campaign, which
is calling for debt relief for the world's poorest countries, said creditors
lent to Zambia at high interest rates knowing the debt would probably become
too great.

 

"That risk has now materialised, and bondholders must now accept a
significant debt write-down," she told the Reuters news agency this week.

 

"It is simply immoral for bondholders to demand full repayment and to make
huge profits on Zambia's debt while the country struggles with Covid-19, a
major economic crisis and spiralling poverty levels," she added.

 

But bondholders have so far not expressed support for a delay.

 

Eurobond holders have pointed out that the country has not made headway in
earlier talks with the IMF.

 

Zambia is not the only country in Africa struggling with an increasing
international debt, and other governments will be watching closely as to how
borrowers and creditors deal with the case.--BBC

 

 

 

Tesco apologises after online issues amid Christmas rush

Tesco has apologised to its online customers unable to get on its website as
the supermarket seeks to cope with high demand for Christmas bookings.

 

The UK's largest retailer has had to install a queuing system online to help
it to manage the demand.

 

Some customers complained to Tesco that they had been waiting hours to get
onto the supermarket's website.

 

"We're sorry if things take a bit longer than usual," Tesco said on its
Twitter account.

 

"A lot of customers are using our website and app at the moment."

 

Tesco said it was "using a virtual waiting room to help us manage the flow".

 

Supermarkets have been overwhelmed with demand as people start to plan for
Christmas, and rival Ocado has already sold out of slots after "huge"
demand.

 

One Tesco customer said on Twitter: "We use delivery saver because we have 3
young children and both parents work full time - I'm currently stuck in your
queue while trying to get the children ready for school before I have to
work full time to book my usual weekly slot. I've been staring at that
screen for an hour!"

 

Our website and app are now running normally. We are sorry for any
inconvenience caused.

 

Tesco said that by late morning the waiting room had been removed and slots
should be available again.

 

A Tesco spokesperson said: "Demand for online slots over the festive period
is high, and we have more slots this Christmas than ever before.

 

"We experienced high volumes of traffic to our website and groceries app
this morning and temporarily limited the number of customers using it.

 

"We've now removed the waiting room and customers will be able to log
straight on. We're sorry for any inconvenience this caused and would like to
reassure customers that there are still slots available for home delivery
and Click+Collect over the Christmas period."--BBC

 

 

 

S&P boasts record close with earnings reports adding to vaccine fueled
optimism

NEW YORK (Reuters) - The S&P 500 notched a record closing high on Friday
with upbeat earnings reports helping to drive optimism about the economy
along with hopes for successful COVID-19 vaccines, even as investors
monitored a surge in virus cases and restrictions around the country.

 

After a volatile trading week where the market was whipsawed between hopes
and fears around the virus, Cisco Systems Inc provided the biggest boost to
the S&P 500 after its quarterly report showed a work-from-home driven surge
in demand.

 

Walt Disney Co also rose as its rapidly growing streaming video business,
and a partial recovery at its theme parks tempered its quarterly loss.

 

“At least for today it looks like sentiment regarding the potential for
vaccines combined with very strong earnings announcements from a number of
companies has investors hopeful that the economy can continue to recover,”
said Michael Arone, chief investment strategist at State Street Global
Advisors.

 

The Dow Jones Industrial Average rose 399.64 points, or 1.37%, to 29,479.81,
the S&P 500 gained 48.14 points, or 1.36%, to 3,585.15 and the Nasdaq
Composite added 119.70 points, or 1.02%, to 11,829.29.

 

Along with the S&P, the small cap Russell 2000 also registered a record
closing high on Friday, rising 2.1% on the day.

 

Friday’s outperformance of more economically sensitive cyclical sectors
including energy, real estate and industrials over growth sectors like
technology was a clear indication of “optimism around the economy” said Tom
Martin, senior portfolio manager at Globalt Investments in Atlanta.

 

The Russell 1000 value index, which is heavily weighted toward cyclical
sectors such as banks and energy, rose 1.97% on Friday while the growth
index, with a large tech company weighting, added 0.7%.

 

The three major U.S. stock indexes had fallen on Thursday as more than a
dozen U.S. states reported a doubling of new COVID-19 cases in the last two
weeks, with Chicago’s mayor issuing a month-long stay-at-home advisory.

 

But a senior adviser to President-elect Joe Biden said there were no plans
for nationwide lockdowns next year and instead talked about restrictions for
specific regions when the virus spread is bad there.

 

State Street’s Arone said the aversion to a full lockdown likely cheered up
some investors but that optimism may be overdone. He cited Fed official
warnings about the potential economic damage rising virus cases could do
without a fresh economic stimulus package in sight.

 

“The market is underestimating some of the impact that rising cases and no
stimulus will have on the economy and earnings and they’re over estimating
the potential timeline and breadth of a vaccine distribution,” Arone said.

 

“In the spring folks were bracing for the worst and the worst didn’t happen.
Now they’re expecting the best and they may be a little too rosy.”

 

Positive data from Pfizer’s virus vaccine study on Monday had prompted a
rally that pushed the S&P 500 up 2.2% for the week and gave the Dow a 4%
weekly gain. The indexes also registered their biggest two-week percentage
gains since April.

 

The tech-heavy Nasdaq, however, showed a 0.6% decline for the week as
investors booked profits in technology stocks, which have benefited from a
stay-at-home environment.

 

Globalt’s Martin also pointed to investor hopes for news of more coronavirus
vaccine progress soon, after Moderna Inc said earlier this week that it had
enough data for a first interim analysis of its late-stage trial.

 

With third-quarter reports released from about 90% of S&P 500 companies
Refinitiv IBES estimates now show profits falling 7.8% from last year
compared with an Oct. 1 expectation for a 21.4% slump.

 

Biden solidified his victory over President Donald Trump on Friday after the
state of Georgia went his way, leaving incumbent Donald Trump little hope of
reversing the outcome through legal challenges and recounts.

 

Advancing issues outnumbered declining ones on the NYSE by a 4.76-to-1
ratio; on Nasdaq, a 2.83-to-1 ratio favored advancers.

 

The S&P 500 posted nine new 52-week highs and no new lows; the Nasdaq
Composite recorded 84 new highs and 11 new lows.

 

On U.S. exchanges 9.86 billion shares changed hands compared with the 10.1
billion average for the last 20 sessions.--BBC

 

 

 

 

Qualcomm receives U.S. permission to sell 4G chips to Huawei in exception to
ban

(Reuters) - Qualcomm Inc on Friday received a license from the U.S.
government to sell 4G mobile phone chips to China’s Huawei Technologies Co
Ltd, an exemption to U.S. trade restrictions imposed amid rising tensions
with China.

 

“We received a license for a number of products, which includes some 4G
products,” a Qualcomm spokeswoman told Reuters.

 

Qualcomm and all other American semiconductor companies were forced to stop
selling to the Chinese technology firm in September after U.S. trade
restrictions took effect.

 

The spokeswoman declined to comment on the specific 4G products Qualcomm can
sell to Huawei but said they were related to mobile devices. Qualcomm has
other license applications pending with the U.S. government, she said.

 

In the past Huawei was a relatively small chip customer for Qualcomm, which
is the biggest supplier of mobile phone chips. Huawei used its own
house-designed chips in its flagship handsets but used Qualcomm chips in
lower-priced models.

 

Huawei’s potential to design its own chips was thwarted in September by U.S.
trade restrictions that blocked its access to chip design software and
fabrication tools. Industry analysts believe Huawei’s stockpile of chips
purchased before the ban could run out early next year, crippling its
smartphone business.

 

Bernstein analyst Stacy Rasgon said the Qualcomm license would have a
“limited impact” because it covers only 4G chips while consumers are
shifting to newer 5G devices. Rasgon said it is still unclear whether U.S.
officials will grant Qualcomm licenses for 5G smartphone chips.

 

Representatives for Huawei and the U.S. Department of Commerce, which grants
the licenses, declined to comment.

 

Other U.S. companies such as Micron Technology Inc were also stopped from
selling to Huawei and have said they have applied for licenses. Intel Corp
has also said it has a license to sell to Huawei.--BBC

 

 

 

Rwanda: Small Batches of Rwandan Coffee Pack Big Punch in World Market

Nairobi — They may be from the smallest country in eastern Africa, but
coffee farmers in Rwanda can still compete in the international market with
giant coffee exporters like Colombia, Brazil and Mexico.

 

The way they 'punch above their weight' is to ensure that hey export high
quality coffee, while remaining united through their cooperative movements,
according to Angelique Karekezi, the managing director at the Rwanda Small
Holder Specialty Coffee Company (RWASHOSCCO).

 

"Our farmers do not export much coffee produce, but the little that reaches
the international market is of very high quality. This has enabled their
products to remain competitive amid price fluctuations, which keep changing
every second," says Karekezi.

It is not price fluctuations alone that continue to frustrate coffee farmers
in eastern Africa. Long value chains, exploitative intermediaries and
limited access to lines of credit also stifle the growth of the coffee
sector in the region, according to Samuel Kamau, the executive director at
the African Coffee Association.

 

Climate change, too, affects coffee produce, due to erratic weather, where
strong winds in countries like Rwanda have been known to destroy
plantations.New pests and diseases also leave a destructive trail in their
wake, says Karekezi.

 

But the worst of these challenges reared its head this year when Covid-19
sickened the world, shutting markets and businesses from access to financial
institutions, she says, adding that harvest volumes were low, due to fewer
farmers picking cherries during the lockdown.

 

"It took long for farmers to process produce for export due to the health
protocols put in place by the government to curb the spread of the virus.
The export markets, too, were affected, because there were fewer buyers due
to the lockdown," says Karekezi.

But farmers kept going, united by the cooperative movement which has strong
historical roots in the country.

 

Rebecca Ruzibuka, the managing director at Africa Development Consultant Ltd
(ADC) says communities are held together by the self-help principle, locally
known as Muganda, which has also helped spur the growth of the cooperative
movement in Rwanda.

 

According to Ruzibeka, more than four million farmers are engaged in the
cooperative movement, where 45 percent of them are active in the agriculture
and livestock sector. At RWASHOSCCO, which was founded in 2005, about 13,800
coffee farmers are active in the cooperative movement.

 

One reason cooperatives are attracting smallholder farmers in Rwanda is the
need to access the international market and gain production and management
skills. Another is the support they are getting from development partners
like the United States Development Foundation (USADF),  an independent U.S.
government agency established by Congress to invest directly in African
grassroots enterprises and social entrepreneurs.

By inviting local organizations like ADC to work with cooperatives, USADF
has enabled farmers to gain value addition skills and insights on how they
can expand the coffee sector to compete with bulk producers in eastern
Africa and the rest of the world, says Ruzibuka.

 

"As the project developers, we identify the actual need of cooperatives and
which needs require funding. This ensures the sustainable running of the
project," she says. ADC also trains cooperatives on project monitoring and
evaluation.

 

By working with ADC, she says, Rwanda coffee cooperatives have been able to
adopt the latest technology in coffee processing and develop skills in book
keeping, as well as upgrade their record management.

 

Geoffrey Kayigi, the USADF country program coordinator in Rwanda for the
last 10 years, identifies RWASHOSCCO as the most successful cooperative in
the country, and for a good reason.

 

The cooperative has managed to make world-class coffee brands, including
Café de Maraba, the first Rwandan specialty coffee, and Angelique's Finest,
a brand that stands out for its mix of sweetness laced with a touch of
chocolate and citrus.

 

RWASHOSCCO has branches in five provinces which work through export and
roasting departments, one of which is stationed in Hamburg, Germany. The
cooperative also has coffee washing stations, warehouses and a coffee
capping laboratory.

 

"The adoption of dry coffee processing by farmers in Rwanda has so far been
very successful. Their brands have attracted new buyers and have continued
to raise interest in the international market," says Kayigi.

 

Karekezi, the RWASHOSCCO managing director, says 60 percent of international
buyers the cooperative has been able to net have remained loyal to the
Rwanda brands for over 15 years.

 

Achieving these milestones, however, has not been an easy feat. As an outfit
that in its earlier days did not have well-developed management structures
and value-addition facilities, RWASHOSCCO was struggling to remain afloat.

 

But internal reorganization and an enterprise expansion grant of US$ 392,000
that USADF gave to the cooperative in 2007 helped it transform into a world
class coffee exporter, says Kayigi.

 

Apart from establishing coffee roasters, warehouses and renting premises,
the grant has enabled the cooperative to put in place a system of
traceability, as required by the international market, he says.

 

"Our focus is to work with grassroots communities organized through
cooperatives bringing farmers with shared values together," says Kayigi,
adding that USADF also supports farmers growing maize, beans and rice.

 

The US development agency has also invested in solar off grid energy in the
country, where it supports farmers to acquire home solar units. Here, women
led groups are given the first priority, he says.

 

For groups to qualify for USADF support however, they must be legally
registered with the government and must have operated in their area of
specialization for more than three years. Financial reports and data records
must also be in order.

 

USADF has some 22 active projects in Rwanda, where the agency is working to
promote a new initiative, the Academy for Women Enterprenuers.

 

Kayigi says the greatest challenge USADF has faced while working with
farmers is on skills development, because most of the farmers lack the
necessary education. Although nearly 80 percent of Rwandans under 24 years
of age have been educated by aggressive government initiatives, the literacy
rate among people 65 and older remains below 60 percent.

 

Another challenge had been how to transport produce to the export market.
Rwanda has struggled because of its geographic positioning. The country does
not have direct access to sea ports, as do Kenya and Tanzania. Through
partners like ADC, farmers have been able to gain production, processing and
even infrastructure positioning.

 

With a renewable contract with USADF, Ruzibuka of ADC says her organization
has helped coffee farmers in Rwanda adjust to the pressures of climate
change. ADC trains farmers on how to adapt coffee trees that are less
affected by erratic weather and new pests and diseases, in a particular
region. ADC has trained farmers on water harvesting techniques, where the
water collected is used to wash the coffee, instead of using water sources
that must be purchased.

 

"We have also helped farmers streamline their leadership structure within
the cooperatives, so that they feel they own the process of generating their
products from production to the end market," says Ruzibuka. Farmers are now
able to access health insurance, school fees and farm incentives like
fertilizers.

 

Future prospects are keeping Karekezi's eyes open at RWASHOSCCO. As the
fourth - and the only female - managing director at the cooperative, she is
keen on enabling women build brands from other products for the
international market in the next five years.

 

Through the International Women's Coffee Alliance (IWCA), she says, she is
creating opportunities for RWASHOSCCO to source coffee from the other 22
chapters of the alliance in Africa.

 

Karekezi says RWASHOSCCO has acquired the certification needed for the
international market like Fiartrade, Organic Coffee, UTZ and Rainforest
Alliance. The cooperative is also working to acquire the Food Safety
Management Systems certification.

 

For now, however, she would like Angelique's Finest to flood local and
international markets, while also protecting Rwanda coffee exports by
registering them as international brands.

 

"We want to remove middlemen from the coffee value chain, because they have
been fleecing farmers. This way farmers' incomes will increase, because they
are directly linked with their coffee consumers in Europe and other export
destinations," says Karekezi.

 

 

 

Nigeria: In Four Years, Budget Proposal for Buhari's Presidential Air Fleet
Increased By 191%

The proposed budget for the air fleet has increased annually in the past
four years.

 

The budgetary proposals for the Presidential Air Fleet (PAF) have gone up by
over 190 per cent in the last four years, a PREMIUM TIMES' analysis has
shown.

 

According to details of the 2021 budget proposal, the government proposes to
spend N12.5 billion (12,550,018,897) on the Presidential Air Fleet (PAF).
This consists of N3.9 billion (3,934,390,091) for overhead and N8 billion
(8,175,622,044) capital allocation.

 

The new figure is 190.6 per cent higher than the N4.37 billion appropriation
in the 2017 budget, which consisted of N3.97 billion for recurrent and
N399.5 million for capital projects.

 

Last month, President Muhammadu Buhari presented the 2021 budget proposal to
the National Assembly.

 

The president proposed N13.08 trillion expenditure for 2021, while raising
concerns about the nation's debt and revenue challenges.

 

Based on some fiscal assumptions and parameters, Mr Buhari said that total
federally distributable revenue is estimated at N8.433 trillion in 2021
while the total revenue available to fund the 2021 federal budget is
estimated at N7.886 trillion.

 

This includes grants and aid of N354.85 billion as well as the revenues of
60 government-owned enterprises.

 

The deficit, Mr Buhari said, will be financed mainly by new borrowings
totalling N4.28 trillion, N205.15 billion from privatisation proceeds, and
N709.69 billion in drawdowns on multilateral and bilateral loans secured for
specific projects and programmes.

 

However, compared to the N8.51 billion allocation for PAF in the 2020
budget, the government proposes to spend more on the presidential air fleet
in 2021.

 

PREMIUM TIMES' analysis of the budgetary details on PAF revealed that N440
million (440,006,762) would be spent on personnel, consisting of salary,
wages, social contributions. and related expenses.

 

Similarly, local as well as international travels and training will gulp
N461 million (461,306,000), the proposal showed.

 

Allocation for utilities will gulp N168 million (168,787,359), which
consists of electricity, sewage, water, telephone charges (N10 million) and
internet access (N18 million).

 

On materials and supplies, office stationeries, books and newspapers will
gulp N5 million, N3 million and N1.2 million, respectively. Similarly,
foodstuff and catering material supplies would gulp N160 million.

 

General maintenance of motor vehicles, office furniture, IT equipment,
plant/generators and others would gulp N1.6 billion while training, both
local and international, would gulp N326 million.

A line item tagged "security vote (including operation)" would gulp N260
million while cleaning and fumigation would gulp N5 million.

 

The N467 million (467,860,000) was proposed for oil and lubricants while
financial charges would gulp N264 million (264,150,000).

 

N184 million (184,025,000) was allocated for miscellaneous expenses, within
which N38 million (38,000,000) was allocated for refreshment and meals.

 

Similarly, N3.6 billion (3,680,543,000) was allocated for rehabilitation and
repairs, among other expenses.

 

Rising Trend

 

Since 2017, PREMIUM TIMES' analysis has shown that budgetary proposals for
the presidential air fleet have continued to rise, despite the nation's
shrinking revenue and turbulent economic climate.

 

The sum of N4.37 billion was proposed in the 2017 budget, which consisted of
N3.97 billion for recurrent and N399.5 million for capital projects.

 

In the 2018 budgetary proposal, the figure rose as N7.26 billion
appropriation was put forward for PAF in the 2018 budget, with N4.3 billion
for recurrent expenditure and N2.8 billion for capital expenditure.

 

In 2019, the Nigerian government proposed to spend N7.30 billion
(7,297,022,065) on the PAF, a figure a little higher than in 2018.

 

In 2020, the government increased the proposed allocation to N8.51 billion
(8,517,022,065), with a recurrent appropriation of N4,360,896,853 and
N4,156,125,212 capital appropriation.

 

For the 2021 budgetary proposal, the government has since raised the
appropriation figure to N12.5 billion, representing a 47 per cent increase
from the last allocation.

 

Increased Allocation to PAF amid mounting debt

 

There have been concerns about how Nigeria plans to fund its budget amidst
shrinking revenue and unstable oil prices in the international market.

 

Last October, while presenting the budget to the National Assembly, Mr
Buhari emphasised the effect of poor earnings on budget performance.

 

"Let me emphasise that revenue generation remains our major challenge," he
told federal lawmakers in Abuja.

 

"Nevertheless, the government is determined to tackle the persisting
problems with domestic resource mobilisation, as there is a limit to deficit
financing through borrowing. The time has come for us to maintain a healthy
balance between meeting our growing expenditure commitments and our
long-term public financial health."

 

Since the coronavirus pandemic broke out, Nigeria has been under immense
pressure to maintain fiscal stability amid collapsing oil revenues.

 

As rising debt continues to put a lot of pressure on government's earnings
and performance, analysts opine that there was no better time to cut down on
waste and improve budgetary appropriation than now.

 

Controversial fleet

 

When President Muhamadu Buhari came on board in 2015, he promised to cut
down on the waste of public resources and assured Nigerians his
administration would cut down on the number of aircraft (on the PAF)
inherited from former President Goodluck Jonathan.

 

The PAF is widely considered the second-largest airline in the country,
after Nigeria's biggest but now troubled airline, Arik Air. For years,
maintenance of the PAF has remained a controversial subject, as many
Nigerians considered the fleet a waste of scarce resources.

 

The Jonathan government was heavily criticised for its failure to cut down
on the number of aircraft in the PAF.

 

In November 2015, presidential spokesperson, Garba Shehu, said there were 10
aircraft in the fleet. They included two each of Augusta 149, Augusta 101
and Falcon 7X, as well as one each of HS 4000, G500, G550 and 737 BBJ
series.

 

By October 2016, the Buhari administration advertised the sale of two of the
aircraft - a Falcon 7X executive jet and Hawker 4000. The proposed sale was
however scuttled by negotiations, officials said at the time.

 

When contacted for details of the proposed sale at the time, Mr Shehu told
PREMIUM TIMES that the sale of the Falcon and the Hawker was still to be
concluded.

 

"The bids are being reviewed by both sides. One thing I want to assure
Nigerians is that the present administration is determined to secure the
country's best interest in a market that is sounding hawkish," he said.

 

Nothing has been heard of the proposed sale ever since.

 

When PREMIUM TIMES reached out to Mr Shehu on Wednesday, he did not reply to
a text message nor answer his telephone line.

 

(This report is part of the fulfilment for the ATUPA fellowship by Civic
Hive in collaboration with the U.S Embassy).-Premium Times.

 

 

 

Nigerian Govt Plans to Spend N400 Billion On Npower, Tradermoni, Others in
2021

More than half of the total proposal for recurrent expenditure (52.6 per
cent) would be used for the implementation of programme components of the
Job Creation Unit (JCU), including N-Power and Innovation Hubs.

 

For 2021 fiscal year, the Nigerian government, under the ministry of
humanitarian affairs, has proposed to spend N400 billion on its social
investment programmes (NSIP).

 

This comprises a total recurrent expenditure of N350 billion and N50 billion
for capital spendings, according to a document submitted to the National
Assembly by its joint committees on poverty alleviation which PREMIUM TIMES
exclusively obtained.

The document showed that while the proposed recurrent expenditure for next
year would remain unchanged, the estimate for personnel cost was increased
by 2.31 per cent, from N166.3 billion in 2020 to N170.1 billion in 2021.

 

This increase is "because of (an) increase in the number of NPOWER (NTEACH
Hub) beneficiaries from 400,000 to 450,000," the document said.

 

More than half of the total proposal for recurrent expenditure (that is 52.6
per cent) would be used for the implementation of programme components of
the Job Creation Unit (JCU), including N-Power and Innovation Hubs.

 

This means that NPOWER and its affiliate sub-programmes on job creation for
the enrolment of 450,000 N-Power volunteers and training, tooling and
mentoring of 54,000 non-graduate beneficiaries would cost about N200.3
billion.

Also, the ministry penned N145 billion for the Home-Grown School Feeding
(NHGSFP), which is to feed 9.86 million children, de-worm 7 million children
and recount the pupils.

 

Likewise, N35.8 billion has been billed to be expended on the GEEP -
comprising marketmoni, tradermoni and farmermoni - for recurrent costs and
capital spendings, which includes loan funds and the "programme's setup and
technology."

 

The GEEP offers soft loans to local farmers and traders, and next year, a
total of 1.66 million beneficiaries are intended to be captured in the
programme's net.

 

Meanwhile, for the Conditional Cash Transfer (NCTO and NASSCO), about N10
billion was pencilled for purchasing field kits, biometric capturing and the
implementation of the National Social Safety Net Coordinating Office
National Social Register (NSR) for the poor and vulnerable.

 

This proposed amount is meant for cash transfer to 205,000 rural women,
1,800 IDPs in camps and 50,000 parents of out-of-school children.

 

Other propositions

 

In other planned spending for next year, the ministry would spend N1.83
billion on "monitoring and evaluation devices, consultancies and interactive
dashboard."

 

Other proposed spendings include N1.6 billion for communications, multimedia
equipment and vehicles; and N1.7 billion for office setup, equipment and
vehicles.

 

The remaining fraction of the programme's proposed budget would go into the
"development of SIP Management Information System (NASIMS), Project Raise
Application Software, Community Infrastructure Project Solar Kiosks and ICT
operational support equipment/vehicles for the implementation."

 

This would cost N3.6 billion.-Premium Times.

 

 

 

Eritrea: Promoting Sustainable Land Management

In an attempt to remedy the destructive use of land through overgrazing,
overuse of resources, deforestation, and inefficient land tenure system and
agricultural practices over an extended period of time in Eritrea, the
Ministry of Land and Water and Environment (MLWE) introduced Sustainable
Land Management (SLM) in 2012.

 

SLM was piloted in Serejeka subzone, Central region, in 2012 to test a land
management system that focuses on Xlmi which is believed to be efficient.

 

Xlmi is a system that allows a household to hold onto farmland for a
lifetime. As land allocated this way is passed down from generation to
generation as a family property, farmers are motivated to invest in the
land. Dessa, on the other hand, is a land system that was practiced in the
past which allowed a household to use farmland only for seven years after
which farmlands are redistributed among the farmers. This system did not
encourage farmers to work on their farmlands in a way that would increase
the fertility of the land because they knew their stay on a particular site
was short-lived, seven years.

 

Ownership guarantees an amount of responsibility, and it was in recognition
of this that MLWE has introduced a package of the land management system,
which includes land recovery measures through fertilization, terracing, and
leveling. The newly developed system is anchored in the 58/1994 Land
Proclamation that asserted the application of the Slim land distribution
system.

 

The ownership and overall management responsibility of the wood lots are
given directly to the farmers as the immediate beneficiaries, and this
serves as an incentive for farmers.

The project was piloted in 28 villages of Serejeka Subzone, covering
21,875.79 ha. of land, out of which 3.51% is a high potential, 13.35% medium
potential, and 18.43% low potential agricultural land. The direct
beneficiaries of the intervention are 54,470 farmers in all the villages.

 

Applauding the new system, Mr. Berhane Adem, a resident of Guritat, said,
"The former land system was tiring and unfruitful, but the new system and
management triggers an amount of devotion and hard work. The distribution is
fair in that you either get wide and relatively eroded or small and fertile
land.

 

Besides, the wealth and wellbeing of your village remain yours for
generations to come."

 

Workshops and meetings have been held to raise awareness of village
administrators, farmers, and other stakeholders about the goal and
objectives of the SLM project. Other topics entertained at the events
include land degradation and desertification control measures; the cause of
land degradation and desertification and control measures; the scope of SLM
and land use activities and the role of farmers in the implementation of the
project; and land use and land cover principles and land use classification
procedure.

The training was also given, at sub zone and village levels, to 54 extension
workers and 70 farmers on the Land Proclamation (land proclamation 94/58)
and Procedures of implementing agricultural usufruct.

 

One of the main causes of land degradation is deforestation, which mainly
results from cutting wood to be used as fuel. To mitigate the problem and
support afforestation, 6940 Adhanet Mogogo, an improved energy-saving oven,
has been introduced in the subzone. Two micro dams were also constructed in
the project area in 2014 and 2015 in two villages, Unanalay and Shimanigus
Tahtai. As a result, crop production increased by 30%.

 

According to Mr. Abraham Daniel, SLM Project Coordinator, so far 949.7
hectares of land has been farmed with a survival rate of over 80% as it is
owned by individual households. Out of the 201,038 seedlings planted in
2010, 189,348, about 94.23%, are eucalyptus which is now ready to be
harvested. The farmers can benefit from the sale of wood and grass and are
motivated by the reforestation to start beekeeping in every village.

 

Land leveling and extension of irrigation fields have been done in three
villages - Shimangus Laelay, Mekerka, and Geshnashim. Land leveling, which
is done using heavy machinery after the land is surveyed and graded, ensures
uniform distribution and efficient utilization of water during irrigation.

 

Farmers who have received relatively marginal farmland in the 28 villages
have been given as incentive 8476 sickles, 2738 shovels, 3150 pickaxes, and
945 wheelbarrows.

 

Mr. Eyob Aymut, a farmer at Deqi Petros, a village in Serejeka Subzone, said
the Ministry of Agriculture supported them in leveling formerly eroded land
and constructing dams. Water is now readily available and used well. He
added, "With proper management and hard work, there is no such thing as a
bad land. In addition, we have succeeded in afforesting a measurable amount
of land surrounding the farms; we guard them and take care of them. And we
cut the tree branches and use them for firewood and construction. In
general, the degraded land is being handled well."

 

The project has shown good progress and with more hard work, it should be a
hit in no time. However, this is also a way to showcase the benefits of SLM
to other farmers all over the country and help rehabilitate and make better
use of the land.

 

The vast majority of the Eritrean society lives on farming, which means
there is tremendous dependence on land and water, making land management
essential.-Shabait.

 

 

 

Kenya: Tullow Oil Submits Work Plan as Govt Threatens to Revoke 15-Month
Licence

British firm Tullow Oil recently presented a programme detailing how it will
implement its programmes after the Kenyan government threatened to revoke
its licence.

 

This comes barely two months after Kenya renewed Tullow's licence for 15
months, but with tough conditions due to frustrations over delays. Kenya had
threatened to withdraw the company's licence if it does not deliver a work
programme by October 31.

 

The EastAfrican has established that the company presented the programme two
weeks ago to the Petroleum Cabinet Secretary for review and probable
approval.

 

"When the government renewed Tullow's licence in September, the company was
given until the end of October to come up with a work programme. The
government was categorical that if the programme is not delivered within the
agreed time frame the licence will stand revoked," said a source familiar
with the issue.

He added that Tullow last week presented the programme -- the roadmap for
implementing project oil Kenya -- and should culminate in a comprehensive
field development plan (FDP) by first quarter of 2022 and final investment
decision (FID) by end of 2022.

 

Tullow refused to comment on the matter despite initially agreeing to
respond to questions sent to the new managing director, Madhan Srinivasan.

 

When contacted, Petroleum Principal Secretary Andrew Kamau refused to
discuss the issue.

 

"I have nothing to talk about on the project," he said.

 

Kenya is hoping to get Project Oil Kenya back on track, with the work
programme on budget being a pointer on how Tullow -- the operator of the
project -- intends to move forward.

 

The Kenyan government had put the programme as one of the top conditions for
licence renewal as it sought to have a better understanding about whether
the firm, which is grappling with financial problems, still has the ability
to implement the project.

The government also wanted a clear budgetary breakdown and how Tullow
together with its joint venture partners Africa Oil and Total plan will
mobilise financing for the project. This is even as crude oil prices at the
international market are on a slow recovery trajectory.

 

Conservative estimates show that Kenya requires $3 billion to finance the
development of its Turkana petroleum deposits with $1.8 billion required for
upstream projects and $1.2 billion for the Lokichar-Lamu crude oil pipeline
(LLCOP).

 

Global demand for oil has remained subdued and could drop further as the
world experiences a second wave of Covid-19, and crude prices still hover
around the $40 per barrel mark. On Wednesday the international benchmark
Brent crude futures declined by 2.26 per cent to $40.27 per barrel while US
crude futures also dropped 2.88 per cent to $38.43 per barrel.

 

If the government approves Tullow's programme, the second condition for the
licence renewal was that the UK firm must submit a comprehensive FDP by
first quarter of 2022.

 

Kenya intends to start commercial production of crude in 2024.-East African.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 48248 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 28735 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 108363 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65563 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201115/a2c43886/attachment-0001.obj>