Major International Business Headlines Brief::: 29 November 2020
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Major International Business Headlines Brief::: 29 November 2020
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ü Oil prices post weekly gain ahead of OPEC+ meeting
ü Pandemic fears, online deals thin U.S. Black Friday crowds
ü Wall Street Week Ahead: COVID-19 vaccine adoption rates are 'wildcard' for U.S. stock rally
ü HSBC considers exit from U.S. retail banking: FT
ü Tesla could widen release of 'self-driving' software in two weeks
ü Canada blocks bulk exports of some prescription drugs in response to Trump import plan
ü Allowing border agents to question Huawei CFO before her arrest was best, officer testifies
ü Serum Institute CEO sees AstraZeneca's COVID-19 vaccine as "very good" candidate
ü Hyundai, Kia agree to $210 million U.S. auto safety civil penalty
ü Nigeria: Despite Covid-19, Nigeria's Company Income Tax Increased in 3rd Quarter 2020 - NBS
ü 40,000 Young People in Nigeria to Benefit from Young Africa Works-IITA Project Training Program
ü Africa: Is Timber The Key For Africa's Sustainable Cities?
ü Rwanda's GDP Declines By 12.4% in the Second Quarter
ü Kenya: Youth Sparks Strawberry Movement, Farm At a Time
ü Namibia: Fuel Prices to Decrease in December
ü Sudan: Insecurity in South Sudan Slows Business At Nimule to a Trickle
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Oil prices post weekly gain ahead of OPEC+ meeting
NEW YORK (Reuters) - Oil prices were mixed on Friday but posted a fourth straight week of gains ahead of an OPEC+ meeting early next week.
Brent crude January futures rose 38 cents to settle at $48.18 a barrel, while the more active February contract gained 46 cents to $48.25.
U.S. West Texas Intermediate (WTI) crude futures fell 18 cents to settle at $45.53 a barrel.
Brent rose 7.2% over the week, while WTI gained 8% for the week. Encouraging news on potential COVID-19 vaccines from AstraZeneca and others have lifted the markets. However, questions have been raised over AstraZeneca’s “vaccine for the world,” with several scientists sounding caution over the trial results.
“While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its pre-pandemic run rate by mid-2022,” JP Morgan said.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia are leaning towards delaying next year’s planned increase in oil output, said three sources close to the OPEC+ group.
OPEC+ was planning to raise output by 2 million barrels per day (bpd) in January - about 2% of global consumption - after record supply cuts this year. OPEC+ ministers are due to meet from Monday.
“The market expects prices to see a limited increase if OPEC+ indeed does what is expected and changes its planned route, postponing a planned supply increase from January,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets
A panel of OPEC+ will hold informal online talks on Sunday - a day later than scheduled, a source with the knowledge of the matter told Reuters.
Rising Libyan output is also contributing to concerns about oversupply in the market.
The OPEC member, which is exempt from the oil cuts, has added more than 1.1 million bpd of output since early September.
Pandemic fears, online deals thin U.S. Black Friday crowds
NEW YORK (Reuters) - Masked shoppers turned up in smaller numbers at major U.S. retailers including Macy’s Inc, Walmart Inc and Best Buy Co Inc on Black Friday as early online deals and worry about the spike in COVID-19 cases dulled enthusiasm for trips to the mall.
Black Friday takes new shape amid pandemic
Retailers overhauled the traditionally busy shopping day that comes the day after Thanksgiving. Walmart opened stores at 5 a.m. on Friday, directing shoppers to turn right upon entering and proceed along main aisles to shop deals before paying at registers surrounded by plastic barriers.
Best Buy opened at 5 a.m., employing workers in can’t miss orange vests to serve as traffic cops. Others offered temperature checks and “grab-and-go” merchandise, including toys, bikes and kitchen appliances to discourage lingering in store aisles.
Bill Park, a partner at Deloitte & Touche LP, estimated traffic at the King of Prussia mall outside of Philadelphia was down about 20-30% compared to last year.
“I’m surprised at the traffic. It’s down a little bit but heavier than I thought,” he said but noted shoppers were not loaded down with packages.
Elsewhere, shoppers with empty carts lined up a socially-distant six feet apart before the Walmart in LaGrange, Kentucky opened, but crowds appeared down overall. Stores selling popular computer game consoles had some of the longest lines as gamers tried to land Sony Corp’s PlayStation 5.
Brothers-in-law Gabriel Rojas, 24 and Juan Cabrera, 24 were waiting in line at GameStop in New York’s Bronx borough, since 2 a.m. on Friday, hopeful to snatch up a PS5. They were unsuccessful as there were some 20 people ahead of them and the retailer only had two left in stock, they said.
“We’re bummed” said Rojas. “But that’s ok.”
Some had better luck.
Roger Mustafa, 37, walked out of a Manhattan GameStop with a PS5 in a plastic bag and a huge smile on his face. It cost him $544 and a lot of sleep.
“I’ve been waiting outside of GameStop for two days,” said Bronx resident Mustafa. “Now I’m going to go home and get some sleep.”
At Macy’s New York flagship, Asuncion Peralta, 77, said she was not afraid to shop because she had COVID-19 antibodies.
“I’ve been waiting for this day for a long time to buy towels and sheets, everything else that I need,” said Peralta. “These prices are not Black Friday prices. I came here two days ago and the deals were better.”
DEALS ONLINE
During this pandemic-ridden year, retailers from Target Corp to Kohl’s Corp and Walmart rolled out online winter holiday promotions in October to capture any holiday-related spending as early as possible.
Upscale department store operator Nordstrom, which has seen its sales tumble in the pandemic, offered customers a $15 gift card if they picked up packages curbside at their stores.
Overall, the National Retail Federation (NRF) forecasts U.S. holiday retail sales will increase between 3.6% and 5.2% over 2019, for a total of $755.3 billion to $766.7 billion. That compares with an average annual increase of 2.5% over the past five years.
On Nov. 19, the Center for Disease Control and Prevention (CDC) deemed “going shopping in crowded stores just before, on, or after Thanksgiving” as a high-risk activity.
Target employee Seth Schaffer, 22, from Lufkin, Texas, said shoppers in his store appeared less concerned about taking precautions to prevent the spread of COVID-19.
“Deep east Texas isn’t the type of place where you’ll see everyone respecting mask policies or avoiding close contact.”
Adobe Analytics expects Black Friday and Cyber Monday 2020 to still become the two largest online sales days in history, with Black Friday online sales between $8.9 billion and $10.6 billion.
Melissa Bloss, who works at a bank in Rapid City, South Dakota, said she plans to do all her shopping online this year.
“Most companies have been having sales throughout the month. I really don’t have a need to rush out when I can get the same deal a week later,” she said.
Wall Street Week Ahead: COVID-19 vaccine adoption rates are 'wildcard' for U.S. stock rally
NEW YORK (Reuters) - News this month of three promising coronavirus vaccines has helped push the Dow Jones Industrial Average over 30,000, but some investors worry that slow vaccination rates may weaken next year’s expected economic recovery.
Overall, 58% of Americans said in a Gallup poll here that ended Nov. 1 that they would get vaccinated, up from 50% who were willing in a September poll. Forty-two percent said they would be unwilling to get a vaccine, citing reasons such as the rushed development timeline and concerns about safety.
Delays in vaccine distribution or widespread refusal to be vaccinated would allow the virus to continue to circulate longer and delay the development of herd immunity, which occurs when enough people in a population have some form of protection that prevents the easy spread of a disease.
“To be certain that the world will be back to normal by mid-next year because a vaccine is available is an aggressive assumption,” said David Albrycht, chief investment officer at Newfleet Asset Management.
“There’s a light at the end of the tunnel but we’re not sure how long that the tunnel is going to be,” he said, citing uncertainties including whether a vaccine will be free or covered by insurance plans, its rollout and its public acceptance rate.
Citi Research wrote in a note on Monday that herd immunity would not form until late 2021, boosting global Gross Domestic Product growth by only 0.7% next year compared with an estimated 3% gain in 2022 as vaccination rates rise.
“The answer is not the vaccine; it’s vaccinations. The vaccine needs to be widely adopted and accepted for it to work,” said Ernesto Ramos, head of equities at BMO Global Asset Management.
The U.S. Food and Drug Administration will likely grant approval in mid-December for distribution of the vaccine developed by Pfizer Inc and German partner BioNTech and some healthcare workers could start getting shots a day or two later, Dr. Moncef Slaoui, chief scientific adviser for the U.S. government’s Operation Warp Speed, said on Sunday.
Some 70% of the U.S. population of 330 million would need to be inoculated to achieve herd immunity, which is possible by May, he said.
Ramos said those estimates may be overly optimistic and the economic benefits of vaccinations will not be apparent until the second half of next year, increasing chances that the recent U.S. economic slowdown could worsen.
Investors will get the latest U.S. economic snapshot with data next week, including the monthly employment report. Economists polled by Reuters expect the Dec. 4 jobs report to show unemployment dipped to 6.8% from 6.9%, still well above the 4.5% rate in March, before much of the U.S. economy went into lockdown.
Targeted vaccinations could revive the economy even with delays in widespread adoption, said Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities.
“The successful vaccination of seniors and front-line workers could expedite the renormalization process well before herd immunity is achieved,” he said. The S&P 500 may reach 4,050 by the end of 2021, up about 13% from its current level, he estimated.
While vaccine adoption rates are a “wildcard,” their availability removes the risk of another widespread economic lockdown, said John Buckingham, portfolio manager at Kovitz Investment Group.
He remains bullish on companies that will benefit from an economic recovery, including JPMorgan Chase & Co, Foot Locker Inc and Whirlpool Corp, even if the U.S. economy remains bumpy over the next few months and coronavirus cases keep rising.
The United States recorded its 12 millionth COVID-19 case on Nov. 21, and health experts have warned that Americans traveling for the Thanksgiving holiday will likely push case counts steeply higher.
“If the situation were reversed and you had good data on cases and hospitalizations for COVID but vaccines were flops, the stock market would be cratering,” Buckingham said.
HSBC considers exit from U.S. retail banking: FT
(Reuters) - HSBC Holdings Plc is considering a complete exit from retail banking in the United States after narrowing the options for how to improve performance at its struggling North America business, the Financial Times reported on Saturday.
The bank's senior management aim to present the plan to the board in the coming weeks, the FT reported, citing people familiar with the situation. on.ft.com/37j4470
HSBC declined to comment on the report.
HSBC said last month it planned to reduce annual costs to below $31 billion by 2022, a more ambitious target than it set out in February and well below the operating expenses of $42.3 billion it reported in 2019.
The bank also said it would also accelerate the transformation of its U.S. business, where it has long struggled to compete with much bigger players.
Tesla could widen release of 'self-driving' software in two weeks
(Reuters) - Tesla Inc Chief Executive Officer Elon Musk said on Friday there will probably be a wider roll out of a new “Full Self Driving” software update in two weeks.
In October, Tesla released a beta, or test version, of what it calls a “Full Self Driving” software upgrade to an undisclosed number of “expert, careful” drivers.
“Probably going to a wider beta in 2 weeks,” Musk said on Twitter, in a reply to a user asking if the software would be available in Minnesota.
Musk had said earlier it was planned that the latest upgrade would be widely released by the end of this year, with the system becoming more robust as it collected more data.
Canada blocks bulk exports of some prescription drugs in response to Trump import plan
OTTAWA (Reuters) - Canada on Saturday blocked bulk exports of prescription drugs if they would create a shortage at home, in response to outgoing U.S. President Donald Trump’s efforts to allow imports from Canada to lower some drug prices for Americans.
“Certain drugs intended for the Canadian market are prohibited from being distributed for consumption outside of Canada if that sale would cause or worsen a drug shortage,” Health Minister Patty Hajdu said in a statement.
“Companies will now also be required to provide information to assess existing or potential shortages, when requested, and within 24 hours if there is a serious or imminent health risk,” the statement said.
The Canadian measure went into effect on Friday, just days before a U.S. “Importation Prescription Drugs” rule that would eventually allow licensed U.S. pharmacists or wholesalers to import in bulk certain prescription drugs intended for the Canadian market.
Neither the White House nor the Department of Health and Human Services had an immediate response to a request for comment.
Trump touted the plan in his first debate with President-elect Joe Biden, who has also said during his campaign that he would set up a similar import plan to try to reduce prescription drug costs for Americans.
“Canada is a small market, representing 2% of global drug sales, that sources 68% of its drugs internationally. The need for vigilance in maintaining the national drug supply continues,” the statement said.
Canadian Prime Minister Justin Trudeau said in September he was willing to help other nations with pharmaceutical supplies if possible, adding that his priority was protecting the needs of Canadians.
Many of Canada’s drug suppliers opposed Trump’s plan, saying it could lead to shortages.
Allowing border agents to question Huawei CFO before her arrest was best, officer testifies
VANCOUVER (Reuters) - A Canadian police officer stationed at the Vancouver airport who rejected a plan to arrest Huawei Chief Financial Officer Meng Wanzhou on the plane she arrived on two years ago, on Friday testified that at the time he told other police officers the best course was to allow border agents to interrogate Meng before arresting her.
The testimony from Ross Lundie, a sergeant with the Royal Canadian Mounted Police (RCMP) Vancouver International Airport detachment, came at the end of two weeks of witness cross-examination in Meng’s U.S. extradition case.
Meng, 48, was arrested on a U.S. warrant on charges of bank fraud for allegedly misleading HSBC about Huawei Technologies Co Ltd’s business dealings in Iran, causing the bank to break U.S. sanctions.
She was arrested at the Vancouver airport in December 2018 following a three-hour examination by officials with the Canada Border Services Agency (CBSA). The interrogation has become a flashpoint in the case to extradite Meng to the United States.
Her lawyers allege that Canadian and U.S. authorities conspired to use the additional investigative powers of the CBSA to interrogate Meng without a lawyer present. They further claim that the RCMP passed on identifying details of Meng’s electronic devices to U.S. authorities, in violation of her civil rights.
As evidence, Meng’s lawyers have pointed out that the RCMP could have arrested Meng on the plane but instead chose to allow the CBSA to conduct an investigation first.
Lundie, the sergeant with the RCMP Vancouver airport detachment, testified on Friday about his phone conversations with police officers who had planned to arrest Meng on the plane she arrived on. Lundie said he told police that he didn’t think it was a good idea and that the CBSA needed to be looped in.
He told the court that problems can arise when police do not respect the authority of other partner agencies, and said the RCMP does not normally make arrests aboard planes “unless there’s fighting or something extreme going on.”
Friday marked the end of the second of three legs of witness testimony during which defense lawyers attempted to show that enough abuses of process took place during Meng’s detainment by Canadian authorities to invalidate the extradition. Witness hearing is to resume on Dec. 7.
Meng has said she is innocent and is fighting the extradition while under house arrest in Vancouver.
Prosecutors have argued that Meng’s investigation and arrest followed standard procedures.
On Wednesday the RCMP supervisor in charge of Meng’s arrest testified that she had relayed a suggestion from her superior to arrest Meng on the plane but that she did not think it was a good idea. She also testified that emails she reviewed did not show the RCMP passed serial numbers of Meng’s devices to the U.S. Federal Bureau of Investigation.
Lundie testified Thursday that he had suggested the CBSA conduct its examination of Meng first.
Diplomatic relations between Ottawa and Beijing have deteriorated since Meng’s arrest. China arrested Canadian citizens Michael Spavor and Michael Kovrig on espionage charges days later.
Meng’s extradition hearing is expected to wrap up in April 2021.
Serum Institute CEO sees AstraZeneca's COVID-19 vaccine as "very good" candidate
MUMBAI/NEW DELHI (Reuters) - Serum Institute of India, the world’s largest vaccine producer, sees AstraZeneca Plc’s COVID-19 vaccine candidate as a “very good” option, giving it a major vote of confidence after some experts raised questions around its trial data.
Serum Institute of India (SII), which has partnered with the British drugmaker to conduct trials on its COVISHIELD vaccine in India and produce the vaccine candidate if it secures approval, plans to apply for an emergency use licence for the vaccine in the next two weeks, said SII’s Chief Executive Adar Poonawalla.
“This vaccine is a very good one,” said Poonawalla, via a virtual press briefing following Indian Prime Minister Narendra Modi’s visit to SII’s campus on Saturday.
“What we found with COVISHIELD in its global trial is there were zero hospitalisations, which means even if you do get infected you’re not going to have a severe attack and secondly even those who got the disease were not infecting others,” he said.
Poonawalla’s comments come as a boost to AstraZeneca after some scientists raised doubts about the robustness of results showing the shot was 90% effective in a sub-group of trial participants who, by error initially, received a half dose followed by a full dose.
He also noted that the AstraZeneca vaccine, along with the vaccine from Novavax - the U.S. vaccine developer that SII has also partnered with - offered a significant edge over the vaccine candidates of certain rivals, which need to be stored at much lower temperatures.
“Both our vaccine candidates can be stored in 2 Celsius to 8 Celsius and India has lot of storage and infrastructure for that temperature range. It has slightly less storage capacity for -20 C and almost nothing for -70 C,” said Poonawalla.
U.S. vaccine developers Moderna and Pfizer recently announced strong efficacy results on their respective vaccine candidates, but both of their vaccines need to be stored at very low temperatures that would present challenges for many developing economies.
Moderna has said its vaccine can be stored at normal fridge temperatures of 2 to 8 degrees Celsius for 30 days and it can be stored for up to 6 months at -20C. Pfizer’s experimental vaccine must be stored at -70C over longer durations.
Hyundai, Kia agree to $210 million U.S. auto safety civil penalty
WASHINGTON (Reuters) - Hyundai Motor Co and Kia Motors’ U.S. units on Friday agreed to a record $210 million civil penalty after U.S. auto safety regulators said they failed to recall 1.6 million vehicles for engine issues in a timely fashion.
The U.S. National Highway Traffic Safety Administration (NHTSA) said the two affiliated Korean automakers agreed to consent orders after it said they had inaccurately reported some information to the agency regarding the recalls.
Hyundai agreed to a total civil penalty of $140 million, including an upfront payment of $54 million, an obligation to spend $40 million on safety performance measures, and an additional $46 million deferred penalty if it does not meet requirements.
Kia’s civil penalty totals $70 million, including an upfront payment of $27 million, requirements to spend $16 million on specified safety measures and a potential $27 million deferred penalty.
“It’s critical that manufacturers appropriately recognize the urgency of their safety recall responsibilities and provide timely and candid information to the agency about all safety issues,” said NHTSA Deputy Administrator James Owens.
The settlement covers recalls in 2015 and 2017 for manufacturing issues that could lead to bearing wear and engine failure.
As part of the settlement, Hyundai is investing $40 million to build a safety field test and inspection laboratory in the United States and implementing new IT systems to better analyze safety data.
“We are taking immediate action to enhance our response to potential safety concerns,” said Brian Latouf, chief safety officer, Hyundai Motor North America.
Kia said in statement it “denied the allegations but agreed to settle the matter to avoid a protracted dispute with the government”. It added it has agreed “to restructure and transfer the departments responsible for recall determinations to the United States”.
SAFETY-RELATED DEFECTS
In August 2014, Hyundai agreed to pay a $17.35 million fine to settle an NHTSA investigation that it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai “must change the way they deal with safety-related defects”.
Kia agreed to create a new U.S. safety office headed by a chief safety officer and each automaker will retain an independent, third-party auditor who will directly report to NHTSA and will conduct a comprehensive review of the company’s safety practices.
Hyundai’s consent order will last three years, while Kia’s is for two years, but both can be extended by one year.
The 2015 and 2017 recalls involved the 2011-2014 Hyundai Sonata and 2013-2014 Santa Fe Sport vehicles, while Kia did not recall the vehicles until 2017, when it called back the 2011-2014 Optima, 2012-2014 Sorento, and 2011-2013 Sportage vehicles.
The settlements are separate from ongoing NHTSA investigations into non-crash fires in certain Hyundai and Kia vehicles, some of which have the recalled engines.
In 2019, Reuters reported a group of U.S. states were investigating Hyundai and Kia for potential unfair and deceptive acts related to reports of hundreds of vehicle fires.
In November 2018, Reuters reported that federal prosecutors had launched a criminal investigation into Hyundai and Kia to determine if vehicle recalls linked to engine defects had been conducted properly.
In 2014, Hyundai and Kia agreed to pay $350 million in penalties to the U.S. government for overstating fuel economy ratings, which were billed at the time as the largest ever under the Clean Air Act.
Nigeria: Despite Covid-19, Nigeria's Company Income Tax Increased in 3rd Quarter 2020 - NBS
Although many Nigerian firms struggled to cope with the impact of COVID-19 on their operations, taxes paid to the government by companies increased in the third quarter of 2020.
Nigeria generated N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020, the National Bureau of Statistics (NBS) has said.
This, the agency noted, is an increase of 3.4 per cent from the N402.03 billion generated in the preceding quarter.
This takes the total CIT generated in the first three quarters of this year to N1.11 trillion.
In the whole of 2019, N1.63 trillion was generated as CIT; in 2018, it was N1.42 trillion; in 2017, it was N1.25 trillion.
The 2020 third quarter earnings, nonetheless, is a decrease of about N100 billion (20 per cent) when compared to the N520.89 billion generated in the third quarter of 2019.
The 2019 figure was higher than that of the third quarter of 2018, N362.7 billion, which was higher than the 2017 third quarter figure of N338.9 billion.
In the report published Thursday, NBS further gave a breakdown of the performance by different sectors and agencies on company income tax, with the ICT sector ranking top.
The report showed that professional services, which includes telecoms, generated the highest amount of CIT with N55.52 billion, closely followed by manufacturing, which generated N42.03 billion.
Meanwhile, the ICT sector contributed an increase and the highest amount to GDP in the second quarter amidst economic slowdown.
This, analysts believe, is as a result of high consumer demand for telecommunication services amidst nationwide lockdown due to COVID-19.
But as the movement restrictions were lifted, the sector's contribution slowed in the third quarter after the nation's economy plunged into its worst recession in about 40 years.
Other sectors
Banks and financial institutions generated N24.05 billion while commercial and trading paid N22 billion as company tax, the report showed.
Meanwhile, the mining sector generated, in tax, the least with N120 million, while textile and the garment industry paid the second least tax with N167 million.
Of the total amount generated in this year's third quarter, N244.70 billion was generated as CIT locally while N70.34 billion was generated as foreign CIT payment.
"The balance of N100.97bn was generated as CIT from other payments."
On Saturday, NBS said the Nigerian economy had contracted a negative growth of 3.62 per cent in the third quarter of 2020, slipping into its second recession in five years.
The recession, analysts said, is the worst economic decline in almost four decades.
But, the Nigerian government has, however, dismissed fear and expressed optimism that it would reverse the declining trend and restore the economy in the path of sustainable growth.
The Minister of Finance, Zainab Ahmed, on Monday said, "For the three quarters combined for 2020, aggregate GDP decline is now 2.60 percent, this is a clear signal that the Nigerian economy is improving, that there are economic activities that are being better."
She said the negative growth of 3.62 per cent in the third quarter of 2020 is much better than the -6.01 per cent earlier forecast by the NBS.
"Let me remind you that before the impact of COVID-19, the Nigerian economy was experiencing sustained growth, which has been improving quarter by quarter for three years until the second quarter of 2020 when the impact of the Covid-19 was felt.
"Despite the recession, Nigeria has outperformed many economies in terms of economic growth," she said.
Many Nigerian firms have struggled to cope with the economic situation with some slashing workers' salaries and others laying off staff,-Premium Times.
40,000 Young People in Nigeria to Benefit from Young Africa Works-IITA Project Training Program
Lagos, Nigeria — In May this year, the International Institute of Tropical Agriculture (IITA) partnered with the Mastercard Foundation to start the Young Africa Works-IITA Project. This project was developed in consultation with young people, policymakers, educators, and entrepreneurs as part of the Mastercard Foundation's strategy to enable 30 million young people in Africa to access dignified and fulfilling work over the next 10 years.
In Nigeria, Young Africa Works aims to see 10 million young people, most of them women, in dignified work opportunities by 2030. In line with this strategy, Young Africa Works IITA-project is designed to advance agribusiness opportunities to over 40,000 Nigerian young women and men with a special focus on skills development, decent employment, and entrepreneurship opportunities to secure work in agri-food value chains for the next five years.
"Agriculture is among the most viable potential source of employment for young people in Africa," said Chidinma Lawanson, Country Head for Nigeria, Mastercard Foundation. "We are excited to see how our Young Africa Works partnership with IITA will make the agricultural sector more attractive to young people, particularly women by providing skills training in the agriculture value chain for employment and entrepreneurship opportunities."
To kick off project activities, IITA has launched a call for application to young women and men between the age of 18 and 35 years living in Lagos, Kano, and Kaduna. This training focuses on agribusiness development that will provide young people an opportunity to grow their businesses through coaching and mentoring and learn modern farming and value addition techniques. Young people will also be exposed to agriculture product marketing skills, market linkages, and career orientation through job placements and internship opportunities.
These skills can bridge the gap in establishing viable agribusiness enterprises between youth and potential employers in the agricultural sector. It gives young women—70 percent of all participants—a special opportunity to enhance their participation and adopt entrepreneurship. In highlighting women's participation, the training and the project seek to create productive partnerships between young men and women and apply a gender-based approach to address some of the challenges faced by young women in the agribusiness sector in Nigeria.
Participants will acquire business and soft skills that will facilitate their integration into the professional field and this year's training will cover the following value chains: maize, soybean, rice, horticulture, orange fleshed sweet potato, groundnut, aquaculture, and poultry.
"There will be no development in Nigeria without the youth. The best way to end poverty is to create opportunities, and this is what this project is all about. By creating career opportunities and youth-led enterprises, we are planting a seed of change for the next generation. It is in this line that the Young Africa Works-IITA project was developed by the youth, for the youth, and with the youth," said Aline Mugisho, Executive Manager, Young Africa Works-IITA project.-www.iita.org
Mastercard Foundation | IITA
“We are excited to see how our Young Africa Works partnership with IITA will make the agricultural sector more attractive to young people, particularly women by providing skills training in the agriculture value chain for employment and entrepreneurship opportunities" - Chidinma Lawanson, Country Head for Nigeria, Mastercard Foundation
The International Institute of Tropical Agriculture (IITA) is a not-for-profit institution that generates agricultural innovations to meet Africa's most pressing challenges of hunger, malnutrition, poverty, and natural resource degradation. Working with various partners across sub-Saharan Africa, we improve livelihoods, enhance food and nutrition security, increase employment, and preserve natural resource integrity. IITA is a member of CGIAR, a global agriculture research partnership for a food secure future.
Africa: Is Timber The Key For Africa's Sustainable Cities?
Can the future of Africa's cities be growing on trees?
When I finished architecture school, I was excited to put into practice my training in sustainable architecture. But the reality of Nairobi, Kenya, was a wake up call. The over commercialisation of the industry directly contradicted the abject poverty, the two million housing deficit and ongoing natural disasters brought about by climate change, urbanisation and unemployment.
The current rate of urbanisation in Africa has caused a massive surge in construction. About 60 years ago, Johannesburg was the only African urban centre with more than one million residents. Today there are over 40 such cities and an expected population of 2.4 billion people by 2050 . And, the urgency to build is rising.
This is not just true in Africa. The UN predicts that globally, there will be 230 billion square metres of construction - the equivalent of building a new city of Paris every single week - in the next 40 years.
This means our built environment is responsible for 39% of all global carbon emissions with 28% from operational energy (heating, cooling, lighting, etc.) and 11% is from materials and construction. This is because the most commonly used materials; steel, cement, and concrete, each contribute 5% to global carbon emissions.
To counteract this, high-rise timber projects are the new global trend in sustainable design. For example, the developers of Milwaukee's timber Ascent apartment complex say its use of timber represents the equivalent of taking 2,100 cars off the road.
Other projects include a riverside neighborhood in Toronto with around a dozen timber buildings measuring between 10 to 35 stories tall and, Mj ø st å rnet apartments, in Norway, recently crowned the tallest timber structure in the world rising 18 stories tall.
Now many are looking to Africa' s forest as a homegrown solution.
Timber, as a construction material, is strong, fire-resistant, and carbon positive. Its fire- resistant properties are the most counter-intuitive , but studies show that it forms a protective and self-extinguishing char layer that lets it retain 100% of it ' s structural strength . It is also very difficult to ignite in the first place. With modern engineering techniques, mass timber products such as cross laminated timber(CLT) and glulam improve its qualities to match and even outperform steel or concrete.
Additionally, sustainable commercial forest growth and management reduces deforestation by moving logging away from indigienous conserved forests. In addition to adding forest cover, by giving people economic incentive to continuously plant trees. In Sweden, the commercial forestry sector led to it increasing its forest cover to over 70% in less than 100 years .
When a tree dies the carbon it had absorbed in its lifetime seeps back into the atmosphere. Infact, 17% of all greenhouse emissions come from carbon released from dead trees. If instead the tree is converted to timber for construction, that carbon is "locked in," or sequestered in the building.
Studies show that one cubic meter of wood can store more than a ton of carbon dioxide, so building our future cities from timber can aid in reversing climate change.
Africa is primed to participate in this movement.
Africa's agricultural economy employs 65– 70% of Africa ' s labor force and typically accounts for 30 – 40% of its GDP. With 45% of the global total area suitable for agricultural production and an abundance of labor, land and water, means that Africa has the resources necessary for a massive expansion of agricultural and commercial forestry production.
With commercial forestry, the incentive is not to replace agricultural produce but to grow trees alongside, as a long term investment. In Western Kenya for example, the profits from just ten, six-year-old trees could cover an entire term of a child ' s high school tuition . This will shift the economic stability of millions away from the hand -mouth economy in the sector.
Growing sustainable commercial forests trees will also help reverse deforestation, by moving logging away from conserved indigienous forests and also increasing forest cover in Africa, which is happening four times faster than the global rate. With a loss of 40,000 square kilometers per year.However, to really harness this opportunity to build the sustainable cities of Africa ' s future we need to start planting the trees now.
COVID -19 in its urgency has galvanised global shifts in education, health, lifestyle in just a few months. Climate change has been known for more than 30 years but solutions remain high level and unrelated to people on the ground. Only until we get out of the drawing-room and begin empowering communities to plant and build with timber will real change happen.
Additionally, policymakers need to see trees not just from a forestry and conservation perspective but as an economic opportunity. Which will benefit climate change, increase forest cover, and create employment.
We should start planning now for our cities of the future.
Africa is in a unique position to use its agricultural power to grow the cities of the future - and combat climate change along the way.
Etta Madete is an architectural designer at Buildx Studio, a lecturer(TF) at the University of Nairobi, and an Aspen 2020 fellow. In all capacities, she practices, teaches, and conducts research on architectural design innovation to bring sustainable economic, social, and environmental development to Kenya and beyond.
Most recently she was the Kenyan lead researcher for the 2020/21 Guggenheim-NY exhibition with Rem Koolhaas, OMA, and the Harvard GSD.
Rwanda's GDP Declines By 12.4% in the Second Quarter
Rwanda has recorded a 12.4 percent drop in Growth Domestic Product (GDP) in the second quarter from July to September compared to the same period last year.
This has been attributed mainly to the impact of the Covid-19 pandemic, which led to a total lockdown in the country in March and only a partial reopening from May 4. Many businesses, including bars and entertainment facilities, remain closed as the country fights to stop the spread of the novel coronavirus.
Presenting the Status of the Economy and the Budget in First Quarter of 2020/2021 at Parliament on Monday, Minister of Finance and Economic Planning Uzziel Ndagijimana said the decline was mainly due to a drop in revenues in the transport, trade, education, construction, exports, hotels and restaurants, and agriculture sectors.
The agriculture sector that usually contributes more than over 30 percent in GDP, dropped by 2 percent in the Q2 of 2020 compared to the same quarter in 2019, "due to impact of climate related disasters of 2019 which affected Season A 2020," he said.
However, information and communication increased by 33 percent in this quarter.
"Almost all export categories showed a decline resulting in a 21.4 percent and 15.1 percent decrease in value and volume respectively of export," the minister said.
The country is, however, managing well the crisis, Mr Ndagijimana said.
"Total domestic revenue collections for the July-Sept period amounted to 465.5 billion FRW ($468.6 million) and exceeded the estimated amount for the period by 52.5 billion FRW, around $52.8 million (12.7 percent)," he said. "Both tax and non-tax revenue components contributed to these excess collections".
He noted that at the end of September 2020, provisional data indicates that the government had spent 885.9 billion FRW ($891.8 million), which was 1.6 billion FRW ($1.6million) lower than the estimated amount of 887.6 billion FRW ($893.5 million).
Debt burden
Due to the Coronavirus Pandemic, Rwanda moved from Lower risk of debt status to medium, Minister Ndagijimana said.
Dr. Frank Habineza, Member of the parliament, raised concern about the country's debt portfolio and its ability to remain stable.
"We are receiving a lot of loans. I'm worried if the country will be able to repay. Most of the debts are supposed to be repaid in the near future, five to six years ahead, which could be a burden to the country," he said.
But Minister Ndagijimana assured Parliament that, "The country's debt is sustainable despite the increase... We have adequate measures to track debts procedures; we have no worries of defaulting."
As of the end of June 2020, the total public debt in nominal terms were at 63 percent of GDP, of which 49 percent was external and 13.5 percent domestic. It is projected to reach 66 percent of GDP by the end of December, of which 52 percent will be external debt and 14.5 percent domestic.-East African.
Kenya: Youth Sparks Strawberry Movement, Farm At a Time
Dressed in light-blue overalls and black gumboots, Nimrod Mwenda carries four strawberry punnets and puts them in a container, ready for delivery to a customer.
The farmer, who grows the crop in Kimaogo village in Maara constituency, Tharaka-Nithi County, farms it on a quarter acre.
He started the venture in 2015 after quitting work at an export farm as a greenhouse manager.
"I gained a lot of agricultural knowledge, in particular, on strawberry farming," says the 35-year-old, who holds a diploma in cooperative management.
"I opted to employ myself after realising I could earn more on my own rather than wait for the Sh40,000 I was being paid a month," he says.
Farming strawberry
Armed with the secret of farming strawberry, the ambitious Mwenda bought 500 strawberry splits (seedlings) of the Chandler variety from a farm in Kiambu County.
He notes that while strawberry does well outdoors, in greenhouses they do much better.
"But I grow them in the open field where the soil should have a pH of between 5.5 to 6.5. They can be grown from seeds, or splits, which are the most preferred," he says, adding the seedlings should be planted in holes deep enough to accommodate the entire root system of the crop at a spacing of 20 inches apart and four feet between rows.
He uses manure and DAP fertiliser during planting and later plastic-mulches them to curb weeds and preserve the much-needed moisture.
When he started out, his income was not pleasing but he did not give up because farming the crop was his hope. Later, he entered into a three-year contract with Jaickis Exporters, which bought his produce.
"At the same time I was hawking the fruits in Chogoria and Chuka towns and in supermarkets. I realised that the demand in supermarkets and hotels was high and the price was much better at Sh100 compared to what the exporter was offering, Sh80 a punnet," he recounts, noting after the contract lapsed, he did not renew it.
Value addition
For more than four years, Mwenda was one of the few farmers growing strawberry in Tharaka Nithi. But as he hawked his produce, many people got interested in the venture.
One of the farmers that Mwenda introduced to strawberry farming is Peterson Mwirigi, the current MCA for Ganga ward and the Majority Leader at the county assembly.
"He partnered with me and we have since trained more than 1,100 youths in Maara constituency. We have opened an office at Katharaka market along the Meru-Nairobi highway where hired boda boda riders to deliver the produce from at least 300 farms and we sell them in Nairobi and other towns," says Mwenda, who makes up to Sh100,000 a month.
The other farmers, who work under their Global Welfare Families Farming Group, earn between Sh10,000 and Sh30,000, adds Mwenda, noting they have sought funding from the county government as they eye processing.
"This crop has so far employed many youths and more can get jobs if we start value addition," says Mwirigi.
Highly perishable
Mwirigi notes the crop has few pests but the farmer should be keen to keep off birds and thrips.
Strawberry takes about 70 days to mature and fruits are ready for harvesting four to six weeks after blossoming.
It has high demand in urban centres, supermarkets and factories that manufacture yoghurt.
Dr Geofrey Gathungu, the Dean, Faculty of Agriculture and Environmental Studies at Chuka University, says a strawberry farmer must plant the right variety for maximum production.
"For maximum production, a farmer must plant healthy seeds, water the crop well, control pest and weed, harvest the right time and handle the harvested fruits well," explains Dr Gathungu.
He adds that a strawberry farmer must have a ready market to avoid losses because the fruits are highly perishable.-Nation.
Namibia: Fuel Prices to Decrease in December
The Ministry of Mines and Energy announced a decrease in the price of petrol by 30 cents per litre and that of diesel by 20 cents per litre for the month of December, bringing the new fuel prices to N$11.35 per litre for petrol and N$ 11.38 per litre for diesel, effective midnight of 2 December.
The ministry said the decision is made on the back of over-recoveries seen due to some developments, including the weakening of the American dollar against the Namibian dollar and minor to moderate fluctuations in the prices of petrol and diesel across the international product market.
"These developments, when factored into the basic fuel price calculations by the Ministry, indicated that it was cheaper for the importers to bring fuel to Namibia over the course of the month of November 2020. To that end, the current review has an over-recovery of about 46 cents on petrol and about 27 cents on diesel," spokesperson of the ministry, Andreas Simon said.
Simon said the ministry has also resolved to adjust the industry margin on all products for the fuel importers by 5 cents per litre from 103 cents per litre to 108 cents per litre.
"This adjustment is necessitated after the annual assessment of assets and incomes value levels for the fuel wholesale importers revealed a need for an adjustment," he said.
The ministry further urged the fuel wholesalers to reinforce the efficient use of their assets to ensure fuel price sustainability in the long-term.-Namibia Economist.
Sudan: Insecurity in South Sudan Slows Business At Nimule to a Trickle
The Nimule one-stop border post between Uganda and South Sudan is currently operating at a quarter of its capacity, creating inefficiencies in border operations.
Built at a cost of $5 million, the post was launched 10 months ago, but Ugandan Customs officials say the South Sudan side is still underutilised and risks becoming a white elephant. The Ugandan officials were at the post to hand out personal protection equipment to health workers.
The Nimule one-stop border post (OSBP), also called Elegu on the Ugandan side, was commissioned in February to improve regional and cross-border trade and make it more efficient. In particular, it was expected to reduce congestion at the border, which slowed movement of people and cargo, but also to get rid of duplicated border procedures and non-co-ordination of government services at the Customs point.
Business people say the main problem at Nimule is the lack of skills and insecurity in South Sudan, which has interfered with a programme to train Customs officers.
On the South Sudan side, there is only the presence of the police and army -- who are in charge of immigration as well as collection of some permit levies. The Ugandan side has a functioning fully staffed Customs office, revenue authority, Uganda National Bureau of Standards, immigration officers, inspectors from the ministry of agriculture and health, each with an office and security personnel.
There is also a bank, forex bureaus, an office for clearing and forwarding agents and another for informal cross border women traders.
Trade Mark East Africa acting country director Damali Ssali said they remain committed to supporting the OSBP to reach its expected potential.
"We are hoping to see South Sudan OSBP fully up and running and we will do everything to facilitate that. We will do that in a co-ordinated manner because they are our biggest trading partner," she said.
"The handover and distribution of personal protective equipment to the border frontline officers and informal cross border traders at Elegu border post is part of safe border trade intervention to the government, an emergency response of sorts to help alleviate the impact of Covid-19 on trade and movement of goods and services," said Counsellor Ulrik Jorgensen of the Embassy of Denmark.
The acting immigration-in-charge Elegu Cluster, Prosper Arineitwe Twayaga, has called for trainings to be expedited because it is taking a toll on what should be a well-co-ordinated operation between the two Customs points.
South Sudan is still experiencing a tense political environment, and security and staff at the Nimule OSBP have been affected.
According to Commissioner Customs, Abel Kagumire, the safety of border frontline workers has been prioritised. Elegu was the epicentre of Covid-19 cases in the months of May and June. He assured staff that with PPEs, trade will continue uninterrupted. The PPEs were donated by the embassy of Denmark in Uganda.
Uganda Revenue Authority records show that about 200 trucks cross from Uganda into South Sudan every day.-East African.
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INVESTORS DIARY 2020
Company
Event
Venue
Date & Time
Axia Corporation
AGM
virtual https://escrowagm.com/eagmZim/login.aspx
24/11/2020 | 8:14am
Zimbabwe
National Unity Day
Zimbabwe
22/12/2020
Christmas Day
25/12/2020
Boxing Day
26/12/2020
New Year’s Day
01/01/2021
Companies under Cautionary
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.
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