Major International Business Headlines Brief::: 03 October 2020

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Major International Business Headlines Brief::: 03 October 2020

 


 

 


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

 


 

 


 

 

ü  Trump Covid: US shares slump after president tests positive

ü  Asda bought by billionaire Issa brothers in £6.8bn deal

ü  US jobs growth slower than expected in September

ü  Mozambique: Truck Drivers Go On Strike

ü  Rwanda: Business Leaders Tell Govts to Accelerate AfCFTA Talks

ü  Uganda: 3 Million Slip Into Poverty As Covid Strikes Economy

ü  Nigerian Govt to Complete $1.6bn Lagos-Ibadan Railway in December

ü  South Africa: NUM to Embark On Protected Strikes At De Beers, Exxaro Coal
and Petra Diamonds

ü  Namibia: Backyard Businesses Balloon As Economic Activity Flattens

ü  Namibia: Diesel Down While Petrol Remains Unchanged for October

ü  Nigeria's Maritime Sector Still Struggling After 60 Years

ü  Uganda: Kampala Residential Property Prices Drop

ü  African hotel reopening strategies and recovery responses

ü  Uber's trucking business raises $500 million, valuation jumps to $3.3
billion

 

 

 

 

 

 

 

 

 


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

 


 

Trump Covid: US shares slump after president tests positive

US stock markets slumped on Friday but regained some losses triggered by
news that Donald Trump had tested positive for coronavirus weeks before the
election.

 

All three main indexes - the Dow Jones, the S&P 500 and the Nasdaq - fell
between 1% and 2.2% in early trade.

 

But hopes of aid for the airline industry helped lift shares at mid-day. The
Dow closed down just 0.48%.

 

Top Democrat Nancy Pelosi said relief for airlines was "imminent".

 

While she had previously called for a comprehensive aid bill, she said
Congress was now prepared to advance support focused on the airlines, which
warned this week they were moving forward with plans to cut more than 30,000
jobs.

 

"We will either enact ... stand-alone legislation or achieve this as part of
a comprehensive negotiated relief bill, extending for another six months the
Payroll Support Program," Ms Pelosi said in a statement. "As relief for
airline workers is being advanced, the airline industry must delay these
devastating job cuts."

 

United Airlines and American Airlines, the two firms that ad announced
massive cuts, shot into positive territory following the comments, ending
the day up more than 2%.

 

The gains helped lift shares more widely with the exception of the Nasdaq.
The Dow Jones closed 0.48% lower, the S&P 500 index dropped 0.9%, and the
tech-focused Nasdaq fell 2.2%.

 

 

In London, the FTSE 100 index recovered from falls early in the day, closing
up nearly 0.4% at 5,902.1. In France, the Cac-40 ended essentially flat,
while Germany's Dax index fell 0.3%.

 

 

Stimulus negotiations

Analysts have been surprised at the overall resilience of shares, as the
main US indexes approached or passed their pre-pandemic highs this summer,
despite economic and political uncertainty.

 

But some of that confidence had appeared to slip in recent weeks, amid signs
the US jobs recovery was losing steam, while Washington remained mired in
debate over additional coronavirus spending.

 

Uncertainty about the election and how quickly its outcome will be settled
had added to the economic concerns, with Mr Trump's coronavirus test on
Friday further compounding the political jitters.

 

"This election already had a cloud of uncertainty hanging over it as Trump
has refused to say whether he will accept the final vote and has also said
that the final result may not be known for months," said Fiona Cincotta,
market analyst at City Index UK.

 

"The markets are already fretting about an uncertain election and this just
adds another layer of uncertainty, favouring the risk-off trade."

 

In an interview with broadcaster MSNBC, Ms Pelosi, who has been leading
negotiations with the White House, said she was hopeful that Mr Trump's
illness had "changed the dynamic" on stimulus talks and that a wider
compromise could be reached.

 

Democrats have called for more money than Republicans. Ms Pelosi said the
two sides remain divided on issues such as funding for state and local
governments and unemployment insurance.--BBC

 

 

 

Asda bought by billionaire Issa brothers in £6.8bn deal

Two billionaire brothers from Blackburn have won the battle to buy Asda from
Walmart of the US, in a deal valuing the supermarket chain at £6.8bn.

 

A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital
will take a majority stake in Asda.

 

It means the grocer will return to majority UK ownership for the first time
in two decades.

 

The Issa brothers own EG Group, which has more than 5,200 petrol stations
across the UK and Europe.

 

A spokesperson for the Issa brothers and TDR Capital declined to comment on
how they are funding the deal. Walmart said that, under the new owners, Asda
will invest £1bn in the supermarket over the next three years.

 

The auction process for Asda has lasted for several months. Walmart decided
to sell a controlling stake in Asda after shelving plans to float the
business following a failed £7.3bn merger with Sainsbury's, which was
blocked on competition grounds.

 

Walmart bought Asda in 1999 for £6.7bn and it will retain a minority stake
in the supermarket chain.

 

 

Announcing the deal, Walmart said Asda would keep its headquarters in Leeds
and its chief executive, Roger Burnley, would remain in place.

 

Asda already has a relationship with the Issa brothers through their petrol
forecourt business.

 

The supermarket recently announced its expansion into convenience stores and
will initially trial "Asda On the Move" at three of EG Group's fuel station
forecourts in the Midlands.

 

Mohsin and Zuber Issa said they wanted to support Asda's management to
achieve long-term growth.

 

"We believe that our experience with EG Group, including our expertise
around convenience and brand partnerships and our successful partnership
with TDR Capital, can help to accelerate and execute that growth strategy,"
they said.

 

The speed of growth of their petrol station business marks the Issa brothers
out as "remarkable entrepreneurs", according to Brian Madderson, chairman of
the Petrol Retailers Association (PRA), of which their EG Group is a member.

 

The rapid expansion came as the major oil companies sold off or closed their
High Street petrol outlets to concentrate on production and refining.

 

Industry insiders describe the brothers as softly spoken and modest. At one
industry awards ceremony several years ago, the brothers were present but
were said to be too shy to claim their award on stage.

 

People who know them say that part of their success is in remaining curious
about competitors and being willing to learn and pick up new ideas.

 

The Sunday Times values their fortune at £3.56bn.

 

Initially called Euro Garages, the Issa brothers founded EG in 2001,
expanding it from a single site in Bury, Greater Manchester.

 

TDR Capital now owns half of the group, with Zuber Issa controlling 25% and
Mohsin Issa the remaining 25%.

 

Walmart said it expected to report a $2.5bn (£1.9bn) loss for its next
financial year "reflecting the absence of net income associated with the
Asda business".

 

It added that the "use of cash proceeds" from the sale "will be determined
at a later date".--BBC

 

 

 

 

US jobs growth slower than expected in September

The US added fewer jobs than expected in September in a sign that America's
rebound from the economic collapse triggered by the coronavirus pandemic is
slowing.

 

Employers added 661,000 jobs against the more than 800,000 expected.

 

The jobless rate fell to 7.9%, dropping for a fifth month, but the minority
workers hit hardest saw little change.

 

The gains mean the US has recovered more than half the 22 million jobs lost
in March and April amid lockdowns.

 

But the figures from the US Labor Department on Friday showed the smallest
increase in jobs since employment started picking up again in May.

 

While restaurants and retailers added positions, the number of people on
public payrolls, which had seen a boost in August from temporary hiring for
the US census, dropped, particularly in education.

 

Despite the gains, the jobless rate remains far higher than the 3.5% the US
enjoyed in February.

 

'Sobering statistic'

Friday's figures are the last monthly update on the labour market before the
presidential election in November, and come as politicians in Washington
remain mired in debate over a further stimulus deal.

 

While the initial recovery was stronger than many analysts expected,
economists have warned of the risk of a slowdown, as the burst of hiring
from the initial reopening fades and government support for businesses and
unemployed households winds down.

 

"The easy part of the labour market recovery is largely behind us now," said
Brian Coulton, chief economist at Fitch. "A lot of jobs still came back in
September but the pace of improvement is clearly slowing. The sobering
statistic here is that 36% of unemployed are now classed as permanent job
losers, up from 14% in May."

 

Just this week, Disney announced it would shed some 28,000 workers,
including many at its parks in Florida and California, while major airlines
announced they would move forward with more than 30,000 cuts.

 

The economic collapse has fallen most heavily on African American and
Hispanic workers, whose jobless rates remain higher than that of white
workers.

 

Last month, the unemployment rate for black workers stood at 12.1%, while
that of Hispanics was at 10.3%, compared with 7% among white workers, the
Labor Department said.

 

And worryingly, the overall decline in the unemployment rate from 8.4% in
August was driven partly by a drop in the number of people in the labour
force, as roughly 700,000 stopped working or looking for work entirely.

 

The participation rate was 61.4% in September, down from 61.7% a month
earlier and lower than any pre-pandemic time since the 1970s.

 

"The slowing momentum in the labour market bodes poorly for the broader
recovery and points to increasing scarring effects from the crisis," said
Kathy Bostjancic, chief US financial economist at Oxford Economics.--BBC

 

 

 

Mozambique: Truck Drivers Go On Strike

Maputo — More than 200 Mozambican truck drivers went on strike on Thursday,
demanding better working conditions, and complaining against illegalities
allegedly committed by their employers.

 

They parked their vehicles along the main north-south highway (EN1), at
Bobole, just outside the city. The trucks stretched for about three
kilometres but their drivers made no attempt to obstruct the road.

 

"We are claiming our rights", declared Antonio Ferro, chairperson of the
Mozambican Association of Truck Drivers, cited in Friday's issue of the
independent daily "O Pais".

 

"Our wages are low. When we make long journeys to countries such as Zambia,
they give us an allowance of only 3,000 meticais (42 US dollars), although
they know that we will spend several days on the road", said Ferro.

 

He added that the drivers are fined for irregularities such as bald tyres,
which should be the responsibility of the truck's owner.

 

 

"When the traffic police notice that a truck is not carrying a fire
extinguisher, it is the driver who picks up the fine, not the owner. This is
not right", he declared.

 

Other drivers demanded that Transport Minister Janfar Abdullai and
representatives of the Federation of Road Transport Operators (FEMATRO) come
to Bobole to speak to them.

 

The Maputo provincial governor, Julio Parruque, sent the provincial director
of transport to speak to the drivers. He was pleased to find that the
drivers were not blocking the road, and that their demonstration was
peaceful.

 

"We agreed that, as a government, we shall bring the two sides together so
that there can be a constructive dialogue to solve the dispute", he said.

 

The strikers said they would only leave Bobole when their demands are met. A
complicating factor is that there is no single employer, since the drivers
work for a variety of different companies.-poptel.org.uk/mozambique-news/

 

 

 

 

 

Rwanda: Business Leaders Tell Govts to Accelerate AfCFTA Talks

The East African Business Council is urging the East African Community to
fast track negotiations of the African Continental Free Trade Area (AfCFTA)
in line with private sector positions.

 

If every African country joins, experts say, the AfCFTA will be the world's
largest single market, accounting for $4 trillion in spending and investment
across the 54 countries.

 

During an EABC-GIZ webinar on opportunities for the private sector in the
AfCFTA, held Thursday, October 1, it was noted that the AfCFTA market is
estimated to rise from $1.27 billion to $1.7 billion by 2030, out of which
about $600 million will be in the middle class.

 

 

As noted, the private sector is the real beneficiary of the AfCFTA and there
is an urgent need to fast track the formation of a continental institution
mandated to articulate the views of the private sector on the actualization
of the continental agreement.

 

"EABC in partnership with the regional communities' business councils has
been spearheading the formation of the African Business Council, to champion
private sector views in the continental policy formulation processes," said
Dr. Peter Mathuki, the CEO of EABC said.

 

As noted, the architecture of the AfCFTA provides for the establishment of
an African Business Council, as a necessary continental platform for
aggregating and articulating the views of the private sector in the
continental policy formulation processes.

 

The Business Council will play an advisory role in the continental policy
formulation processes and will communicate its views and positions through
the African Union Commission.

 

The Agreement was first signed at the 10th Extraordinary Summit of the AU
Assembly on March 21, 2018 in Kigali.

 

It entered into force on May 30, 2019. Currently, the AfCFTA is in force but
not implemented.

 

In just three months, however, if all goes according to plan, Africa will
start trading under the AfCFTA, on January 1, 2021, upon completion of rules
of origin and tariff negotiations.

 

Miriam Mondosha, Manager SMEs and market access at the regional body noted
that the agreement provides significant opportunities for the private sector
which calls for coordination at the continental level through the formation
of the African Business Council.

 

She said: "This will facilitate having a common voice towards resolving
policy and policy challenges that may hinder businesses to take full
advantage of the opportunities brought about by the agreement."

 

According to the EABC, the AFCFTA will promote industrial development as
companies will have economies of scale and access to cheaper raw materials
due to the reduction in tariffs, which will also lower the prices of
imported goods for consumers.

 

"Currently, intra-Africa trade is limited to 15 percent of Africa's total
trade, indicating that the intra-regional value chain is very weak in
contrast to Asia, where it stands at 80 percent," said Mathuki.

 

"The trade volume in Africa is also constrained by the relatively slow
economic growth in the continent, which averages at 4.6 percent since 2000
in contrast to Asia's 7.4 percent."

 

The AfCFTA's benefits could be considerable, it was noted, only if
implementation proceeds fully and evenly.

 

Commenting about the regional business group's desire for the region to fast
track negotiations of the Agreement in line with private sector positions,
Manasseh Nshuti, Minister of State in charge of EAC affairs, told The New
Times that the EABC have a point for they are the beneficiaries of AfCFTA.

 

Nshuti said technical teams are working on this "and Ministries of Commerce
in EAC are on it" as well.

 

The Minister added: "It is important to put pressure on each EAC partner
state's Ministry of Commerce to do their part so that, as a region, we fast
track the negotiation of AfCFTA so that it is in line with private sector
positions."

 

The AfCFTA is a framework agreement, covering trade in goods and services,
investment, intellectual property rights and competition policy.

 

Protocols on trade in goods, trade in services, and on rules and procedures
on the settlement of disputes are currently being negotiated in phase one.
The second phase of the negotiations will cover investment, competition and
intellectual property.

 

For AfCFTA, Mondosha noted, most commentary has focused on country
ratifications, drawing attention to how quickly the 22 needed for
enforcement were secured.

 

But, she added: "This has overlooked the negotiations which will be required
to determine how products will be classified - whether fully-liberalized,
sensitive, or exempt - both within the EAC and between the EAC and
continental counterparts; the latter process might be drawn-out."

 

Furthermore, she said, it is important to note that Burundi, South Sudan,
and Tanzania have not yet ratified AfCFTA.-New Times.

 

 

 

Uganda: 3 Million Slip Into Poverty As Covid Strikes Economy

The Covid-19 disruption on the economy is pushing 3.1 million Ugandans into
poverty, the United Nations has warned in a report on socio-economic impact
of the pandemic in Uganda.

 

The "Socio-economic impact of Covid-19 in Uganda" which was released
yesterday in Kampala during a high-level discussion on implementation of
sustainable development goals, shows that the lockdown and containment
measures made 1.9 million non-poor to become insecure and another 1.9
million insecure individuals become poor.

 

"The increase in poverty among wage earners could be felt most in eastern
and northern regions, due to many households already highly vulnerable to
poverty in this regions," the report reads in part.

 

The latest report on poverty comes just days after Civil Society Budget
Advocacy Group (CSBAG) and Advocates Coalition for Development and
Environment (ACODE) in partnership with the Ministry of Finance, Planning
and Economic Development, Ministry of Health, Ministry of Education and
Sports, and Ministry of Local Government held a high-level policy dialogue
on reopening uganda's economy this week and asked authorities to focus on
the wellbeing of the economy.

 

 

According to the report, poverty rate in eastern region is projected to
shoot from 28.8 per cent to 53.3 per cent, northern region will shift from
30.3 per cent to 44.8 per cent, western region will experience a rise from
13.2 per cent to 31.7 per cent and central region will experience a rise
from 8.9 per cent to 18.8 per cent, according to the report.

 

"If the pandemic is not contained in the short term and the social
distancing measures remains in place, the increase in unemployment is
expected to increase the poverty rate among wage earners from 17 per cent to
32.7 per cent," the report stated.

 

The UN recommended: "Cautious borrowing could cushion the economy and
improve industry, innovation, and infrastructure, reduce inequality and
improve the outlook for zero hunger."

 

 

The resident coordinator of the UN, Ms Rosa Malango, asked government to
address the problem of corruption and poor implementation of projects that
has left the population in poverty.

 

Ms Malango said the UN is now engaging private sector players to increase
the impact of its poverty eradication programme at grass roots.

 

"The Covid-19 pandemic has shown us why we must not relax; there will be no
post-Covid-19 time. We need to engage our partners on the discussion around
corruption and integrity to put the interest of people at grassroots and
other vulnerable population at the centre stage," she said during the
conference.

 

"We are not doing business as usual. We are having engagements with private
sector in order to reach the 68 per cent of Ugandans who are in informal
economy into formal economy. The UN has in recent time launched a series of
partnerships with JUMIA, ABSA bank Safe Boda. We are also partnering with
Stanbic bank to teach savings groups in village financial literacy," she
said.

 

 

Ms Malango said they have also partnered with government in the Shs715
billion agro-industrialisation for local development initiative in the
Rwenzori Sub-region to address the problem of poverty.

 

On addressing the poverty and unemployment among youth, the UN Uganda boss
said they have also launched a 'one million sustainable development goal
solutions' from youth in Uganda innovation challenge to support youth
startups that are impacting communities and creating jobs. She said more
than 500 young people have so far expressed interest.

 

"During the past five years of the implementation of the UN Development
Assistance Framework (UNDAF) from 2016-2020, the UN in Uganda has
contributed to several achievements, including in the area of governance
with strengthening the electoral processes and human capital development,"
she said.

 

Through the interventions by UN, learning literacy and numeracy increased at
primary (P.6) from 38 per cent to 52 per cent, among other achievements,
according to Malango.

 

"The subsequent cooperation framework with government of Uganda and other
development partners will focus on empowering youths and skills development,
gender equality climate change mitigation among others," she said.

 

Human capital development

 

Dr Arthur Bainomugisha, the executive director of ACODE, said it is
important for government to ensure the education sector that is central in
human capital development has proper management.

 

"A lot of money has been borrowed in the name of Covid-19 and we want to
know how much it is and how it was used. We must never allow entrepreneurs
of Covid-19 to thrive while other people are thrown by the pandemic into
poverty," he said.

 

However, Mr Julius Mukunda, the executive director of CSBAG, said it is
important the government focuses investment on real economy such as
agriculture that the largest number of the population depend on.

 

Ms Mary Karooro Okurut, the minister in Charge of General Duties at the
Office of the Prime Minister, said government is committed to ensuring
equitable development for all Ugandans.

 

She said government has integrated the sustainable development goals (SDGs)
in the third National Development Plan. The SDGs focus on inclusive
development.- Monitor.

 

 

 

 

Nigerian Govt to Complete $1.6bn Lagos-Ibadan Railway in December

The $1.6billion Lagos-Ibadan railway project will be completed in December
this year or early January 2021, the Minister of Transportation, Mr. Rotimi
Amaechi, has said.

 

Amaechi, who disclosed this yesterday during a live television programme
that also had the Minister of Works and Housing, Babatunde Fashola, in
attendance virtually, said he would work with Fashola and the Lagos State
Government to move heavy duty trucks away from roads.

 

During the programme, which was monitored by our correspondent in Abuja,
Fashola, while responding to a question, insisted that Nigerian roads would
not last without the construction and usage of functional rail lines.

 

"I am his biggest champion when he (Amaechi) is presenting his request in
the cabinet for the rails because I know that without the rail the roads
will not last," Fashola said.

 

He added, "The tankers are plying excess cargo; they are moving 60,000
tonnes instead of 33,000, 40,000 or 45,000 tonnes maximum. So, the best way
is to move all that cargo into the tracks.

 

 

"That is what happens in countries we want to be like and that is where we
are heading. So, he (Amaechi) has my support."

 

Responding, the transportation minister said what his counterpart in the
works ministry stated were correct, adding that he would partner Fashola and
Lagos State to move cargoes from roads to rail.

 

Amaechi said the transfer of cargoes to rail would start majorly with the
Lagos-Ibadan rail line, adding that the line should be completed this
December or early January next year.

 

He said, "I intend to approach him (Fashola) in January and approach the
Lagos State governor so that we can see how we can deal with Apapa. Why I
said that is because by December to first or second week in January, we
should have completed the Lagos-Ibadan.

 

"Then if we do, there will be a need to decide what vehicles can go to Lagos
and the capacity of such vehicles or trucks."

 

Amaechi added, "If we do that, we can then transfer all the cargoes that
come from Apapa seaport to the railway. We believe we could transfer that up
till Ibadan while we are still constructing the rail line from Ibadan to
Kano."

 

The minister stated that in two to three years, the Ibadan-Kano rail line
would have received a lot of work, adding that more cargoes would move on
the rail line.

 

He said, "In the next two to three years, we will see how much we would have
tried to complete the Ibadan to Kano line. The more we are able to move
these cargoes out of the road, then we can save our roads.-This Day.

 

 

 

 

South Africa: NUM to Embark On Protected Strikes At De Beers, Exxaro Coal
and Petra Diamonds

The National Union of Mineworkers (NUM) will embark on strikes at De Beers,
Exxaro Coal and Petra Diamonds. This is after the NUM failed to reach a wage
settlement with the companies at the CCMA. The NUM is currently involved in
a mobilization process amongst its members, preparing them for strikes . The
CCMA has awarded the NUM with certificates of non-resolution of the
disputes.

 

DE BEERS

 

The NUM can confirm that the wage negotiations have collapsed with De Beers.
The NUM has been awarded a certificate to embark on a protected strike. The
NUM is busy finalising the picketing rules with the CCMA. The NUM demands
from the diamond giant an increment of 8% across the board while the company
offers R750 wage increase which is equivalent to 1,5%. The NUM is demanding
that the company unpack the Total Remuneration Package (TRP). The NUM is
also demanding a R30 000 Esops that must be paid in December for 3 years
(2018-2020).

 

De Beers can afford to pay the wage increases and other benefits that the
NUM members are demanding after the company recently recorded a 176% jump in
rough diamond sales.

 

EXXARO COAL

 

At Exxaro Coal, the wage negotiations have collapsed. The NUM is preparing
for a strike after we received a certificate to embark on a protected strike
from the CCMA. The NUM is finalising the picketing rules with the CCMA
before it embarks on a strike at Exxaro Coal. The NUM demands that the
minimum wage increase of 7,5% across the board. The company is only offering
5%.

 

 

Exxaro Coal has recently announced dividends payments of 40% and the company
can afford to pay what the NUM is demanding in terms of wage increases and
other demands.

 

PETRA DIAMONDS

 

The wage negotiations between the NUM and Petra Diamonds have also collapsed
at the CCMA. The NUM has received a certificate to embark on a protected
strike. The NUM is demanding a wage increase of R1000 while the company is
only offering 4%. The NUM is also demanding job alignment in all Petra
Diamonds operations in South Africa.

 

"It is going to be a big, big fight," says William Mabapa, the NUM Chief
Negotiator at the three companies. "Food prices , fuel prices and general
inflation had sky-rocketed. There is just no room for peanuts increases and
for that, we are prepared for war," he says.-COSATU.

 

 

 

 

Namibia: Backyard Businesses Balloon As Economic Activity Flattens

There is no doubt about the severe economic impact of Covid-19, with the
Namibia Statistics Agency (NSA) recently revealing that between April and
June this year alone the country's economic activity decreased by around N$4
billion compared to 2019, representing a reduction of over 11%, making it
the worst downturn in the country's history.

 

This drastic and unexpected economic slump on Namibian households is
undeniable as many businesses closed, leaving many people unemployed and
even more with significantly reduced salaries. However, these factors have
exposed the resilience of Namibian households with many turning to backyard
business to make ends meet.

 

 

One such household in Windhoek, belonging to Martha April, has taken to
manufacturing 'boerseep', literally translated as 'farmer's soap', which is
a traditional soap that has for decades been used by various Namibian
communities. April explained that the soap is an excellent addition to
normal household supplies and has a range of uses including for washing
dishcloths and to whiten laundry and is particularly useful for stubborn
stains.

 

"When the Covid-19 lockdown hit us and we realised that my husband's salary
was severely affected we knew we had to do something," said April,
acknowledging that the lockdown was the main factor for her entrepreneurial
decision.

 

April initially used social media to promote the 'boerseep' product and
eventually managed to secure shelf-space at leading retailer, Spar. Today
April's home-made soap can be found in Spar outlets in Windhoek and Rehoboth
as well as in smaller outlets in Walvis Bay, Otjiwarongo and Elisenheim
outside the capital.

 

 

April also amplified calls for the establishment of a backyard business
association, which she said is necessary to provide support and guidance to
small businesses.

 

"Covid-19 has made us realise that we need to get up and support ourselves.
However, we would like to see more support and promotion through an
association that represents all of us," said April.

 

Another entrepreneur in Windhoek's Rocky Crest neighbourhood, Maria Coetzee,
started jewellery making as a hobby as far back as 2009. Coetzee revealed
that she has since elevated her hobby into a fully-fledged home business.

 

"I feel there is a definite need for a backyard business association to
endorse and support our efforts. The association could perhaps assist us to
find customers, which is currently one of my main challenges," said Coetzee.

 

Meanwhile, retired nurse, Ragel Waters, bakes fresh cookies daily that she
sells to churches, family and friends and that she promotes on social media.
Waters also encouraged everyone negatively affected by the pandemic to start
their own cottage business.

 

"I would advise everyone who is at home right now not to waste time and
start their own business immediately. It is better to support yourself than
to look for handouts or to ask others for assistance," said Waters.

 

She added that a backyard business association would add tremendous value to
home-based initiatives through promotion and even commercial advice. Her
enterprise known as Motherings Home Biscuits, Waters said she bakes daily to
ensure she can offer her customers fresh products.

 

"People immediately notice if something is freshly made and also if it is
home-made which many people prefer," Waters concluded.- New Era.

 

 

 

Namibia: Diesel Down While Petrol Remains Unchanged for October

The mines and energy ministry has decided to provide some relief to
motorists during October by decreasing diesel pump prices countrywide by 40
cents per litre as of next Wednesday, 07 October, 2020. Petrol pump prices
will however remain unchanged.

 

The means new diesel pump prices at the port of entry in Walvis Bay will
become N$11.58 cents per litre and petrol price will remain at N$11.65. A
major factor for the ministry's decision was the international price decline
of the refined petroleum products. The average international price for
refined petrol was US$48.38 per barrel compared in August to US$46.99 in
September 2020; while that of refined diesel was US$48.45 per barrel in
August compared to US$42.79 in September.

 

 

During the same time, the exchange rate between the Namibia Dollar against
the US Dollar strengthened. The local currency appreciated, on average, from
N$17.22 in August to N$1 6.62 in September. Moreover, freight has slightly
increased during the period under review as the cost of shipping product was
91% above flat freight rates in September compared to 74% in August.

 

In a statement, the ministry's spokesperson, Andreas Simon, noted that fuel
pump prices locally are influenced by a host of factors, but stated that
during September only a few of these played out. These included the
international price of refined oil, the exchange rate between the Namibia
Dollar against the US Dollar, and the cost of shipping petroleum products
from the international market to Namibia (freight).

 

"The objective of the review exercise is to ensure that the fuel pump price
is, at all times, reflective of the import price and to do so in an orderly
manner. The review can either reveal an under-recovery, indicating that the
pump price was lower than the import price; or an over-recovery, indicating
that the pump price was higher than the import price. An under-recovery is
ordinarily passed onto the consumer or alternatively it is defrayed from the
National Energy Fund (NEF)," Simon explained.

 

 

He added that during September a combination of over-recovery and
under-recovery was recorded. An under-recovery of 3.854 cents/litre was
recorded on petrol while 50ppm diesel recorded an over-recovery of 62.600
cents/litre. This was an improvement compared to August when only
under-recoveries were recorded.

 

For us to continue to soften the burden on the consumers and at the same
time to ensure the sustainability of the NEF, it has been decided to
decrease the diesel pump prices countrywide by 40 c/l as of OOHOI on
Wednesday, 7th of October, 2020. Petrol pump prices will remain unchanged in
October.-New Era.

 

 

 

Nigeria's Maritime Sector Still Struggling After 60 Years

Eromosele Abiodun writes that the Nigerian maritime industry has been held
back by corruption, policy inconsistencies and decaying infrastructure 60
years after the country gained Independence

 

Nigeria is blessed with a vast coastline that many other country could only
wish they have. Wits 853 nautical miles of coastline located on the corridor
of Gulf of Guinea and the Bright of Benin, 200 nautical miles of Exclusive
Economic Zone, 30,000 kilometres of waterways, comprising over 50 rivers,
eight out of the 36 states having littoral status coupled with vast and fast
growing population estimated at more than 200 million, Nigeria has no reason
not to be a force to be reckoned with in the global maritime community.

However, like many sectors of the economy, the maritime sector is also
bedeviled by many challenges that look impossible to resolve. But a few
government agencies in the sector in the last few years have made efforts to
make things right. The Nigerian Ports Authority (NPA), for instance, has
taken several steps to make Nigeria a hub in West Africa. However, years of
neglect and corruption have made it looked like nothing is been done. The
founding fathers of Nigeria knew that the state of the ports is a critical
factor for efficient maritime operations, hence the establishment of the NPA
by Ports Act (Cap 155 LFN 1954). This created the structural framework for
the management and regulation of port operations. The authority executed its
first wharf extension project between 1956 and 1961 in Lagos and Port
Harcourt ports. Further expansion of Lagos Ports was done between 1970 and
1975 and, in 1977 the Tin-Can Island Port Complex was inaugurated to ease
the pressure of heavy imports (mostly government cargoes) on Apapa Port. In
1979, the new Warri and new Calabar ports were inaugurated. Port
construction and expansion continued between 1981 and 1985 while the new
Sapele port was constructed in 1982. In 1996, Federal Ocean Terminal Onne
Phase 1 was constructed.

 

 

Financing was done through agreement with the International Bank of
Reconstruction and Development and the World Bank. Reliable statistics in
the mid-1980s showed that the public ports operated at 47 per cent of their
capacity at the best and cargo throughput dropped to 28.7 per cent of
previous years. To increase efficiency, enhance capacity and introduce
healthy competition in government enterprise,

 

Government, in 1988, promulgated the Privatisation and Commercialisation
Decree. In 1993, the implementation of the commercialization programme of
the NPA was partially carried out and it became Nigerian Ports Plc. This was
reversed in 1996 as a result of inherent weakness of the policy and
government, through the National Council on Privatisation (NCP), upgraded
the state of NPA from full commercialisation to partial privatisation called
concession, to make room for private sector involvement in port operations.
Following the calamitous multi-year port congestion that gripped the
nation's ports and arrested Nigeria's development for much of the oil boom
years of the 70s, the federal government made efforts to reform the system.
The efforts never yielded any reasonable fruits as corruption and
inefficiency reigned, denying government the needed revenue from the sector.

 

As a result of the painful experiences of congestion in the 70's, the
federal government, again, made efforts to reform the NPA in the 1980s.

 

Consequently, the NPA management was restructured into four zones: Western,
Central, Eastern and Headquarters. The government also created Nigerian
Ports Plc. However, the policy failed abysmally due to rear-guard action
from the die-hard culture of centralisation. Government interference was
rife and patronage and self-enrichment by some government officials
overseeing sizeable part of the maritime sector went to a new level. Foreign
exchange earnings from Nigerian Ports Plc disappeared into private pockets
and port infrastructures were allowed to rot.

 

Port Concession Policy

 

In a bid to arrest the situation, the federal government in 2001, came up
with the idea of concessioning the ports to qualified private operators.

 

Dutch firm Royal Haskoning BV was commissioned to study Nigerian ports
preparatory to the reform.

 

The resulting report, called Haskoning Study, was submitted to the federal
government and was accepted as a cogent x-ray of the Nigerian seaport
system. The report criticised the over-centralisation of administration that
saw NPA function as both regulator and operator; the overlap of authority in
the system and the duplication of efforts. It recommended a "Landlord" port
administration model where government's role would be restricted to policy
formulation while private operators undertake the day to day running of
terminal operations, stevedoring, warehousing; and investments in port
equipment and infrastructure, among other activities. The report called for
NPA to be unbundled into three zones and for concessions by open bidding.
After examining the report, the NCP, endorsed the "landlord" model, and
under a new transport policy NPA was given the role technical regulator to
manage the ports for which there were no bids.

 

The National Transport Commission (NTC) was to become commercial regulator
while National Ports Commission would become overall coordinating agency for
the ports sector. Five landlord port authorities were slated for Lagos; the
Niger Delta; Port Harcourt; Calabar and the inland ports. A total of 25
concessions were identified in 11 ports and there were bids from 110
companies to manage eight ports: Bonny, Calabar, Koko, Port Harcourt,
Sapele, Apapa, Tin Can & RORO.

 

With bids submitted by March 2005, concession commenced in 2006 with 20
concessions concluded. In March 2006 the concessionaires commenced
operations. The flagship concession, Apapa Container Terminal was signed in
March 2006 with APM Terminals, which had taken over P&O Nedlloyd earlier in
the year. The Danish shipping firm, A.P. Moller (APM Terminals' parent
company beat 25 other bidders to the 25-year concession.

 

Prior to the concessioning of ports to private operators in 2006, doing
business in the nation's ports was a hellish experience laced with a myriad
of problems. Some of which were; turnaround time for ships which took too
long making businesses to brace themselves for weeks if not months of
endless waiting before their cargo could be loaded or discharged.

 

Fading Dream

 

However, what is happening today in the industry betrays the plans of the
founders of Nigeria whose lofty aims of using the maritime industry as a
launching pad for economic prosperity when they established institutional
structures to drive the dream.

 

Nigeria once had a national carrier called Nigerian National Shipping Line
(NNSL), which was then the pride of the nation.

 

At the time, indigenous shipping thrived with plethora of indigenous
shipping companies dotting our maritime landscape.

 

Nigeria's seafarers, unarguably among the best in the world, were the toast
of the international shipping community, our cargoes, which we had and still
have in abundance, were being freighted by Nigerian owned ships.

 

The NNSL, which boasted of about 20 vessels, for which Chief Olusegun
Obasanjo prides himself as his legacy and which he is still lamenting their
loss till today, had packed up. It was liquidated in 1995 with all these
vessels gone.

 

Today, more than 80 per cent of our indigenous shipping companies have
equally gone under, swept away by the harsh tide of the inclement economic
climate.

 

While regulators were busy playing politics with the disbursement of the
Cabotage Vessel Financing Funds (CVFF), an interventionist programme meant
to empower the struggling indigenous ship owners, foreigners took over the
coastal trade, ostensibly reserved for the locals through the
instrumentality of the moribund Cabotage law.

 

Recently, government's attempt to revive the National carrier from its ruins
expectedly fell like a pack of cards when the leading investors, Pacific
International Lines, (PIL), pulled out of the inglorious deal.

 

This has further compounded the agony of the country that has cargo but no
vessel to convey them.

 

Ending Foreign Dominance

 

Sadly, the implication of this fundamental system failure was that the
country would be at the mercy of foreigners who now dictate the terms of
trade.

 

Executive Secretary and CEO of the Nigerian Shippers Council (NSC), Hassan
Bello believes effort must be made to reverse the trend.

 

"What we have now is a sector dominated by foreign ships and they dictate to
us. We have no choice than to listen to them, yet we own the cargoes. To
correct this anomaly, we should have the ships. No matter how wide or long
our coastline is, no matter how long our inland water is, and how our ports
are, if we do not have the ships, then we cannot pretend to be a maritime
nation, " he said.

 

He added that Nigeria's claim to having a maritime industry, despite its
huge potentials and great natural attributes, is pretentious.

 

"No serious maritime nation that has cargo will allow foreigners to dominate
and determine their carriage and freight. That is what Nigeria does,
relinquishing its cargo to foreign vessels because it has none. Though
painful, this is the reality of the situation of the industry, 58 years
after independence, "he added.

 

Heaven for Piracy

 

Another issue of the decadence in the industry is the one of piracy and
insecurity, a problem that seem to defy solutions. Over the years, Nigeria
has been designated as one of the most dangerous maritime zones whose waters
are clustered with dare-devil pirates, kidnappers and other sea robbers.

 

International reactions to the rot in the Nigerian maritime sector have been
varied and poignant.

 

The issue of lack of secured waters, despite government efforts to reverse
the trend, has in different times, earned the country an unenviable
sobriquet of 'war zone' with the attendant surcharges and high insurance
premium.

 

At another times, foreign vessels divert cargo to the neighbouring countries
or restrict their voyage to the Lagos ports, which they consider reasonably
safer than their counterparts at the eastern and south- south axis.

 

The culmination of this structural deformity in the sector was the loss of
the membership of category C of the International Maritime Organisation
(IMO) during its elections in 2017, 2018 and last year.

 

That loss is a sad reflection of the level of trust and confidence of the
international maritime community in the nation's maritime sector.

 

These problems have unfortunately reduced Nigeria to a struggling giant
among other competing African countries for a load centre, a status which
should have naturally been conferred on the nation as a natural choice for
maritime hub centre within the Central and West African sub-region.-This Day

 

 

 

Uganda: Kampala Residential Property Prices Drop

The value and price of residential and rental properties in the Greater
Kampala Metropolitan Area fell in the period ended September, according to
Uganda Bureau of Statistics (Ubos).

 

The fall, Ubos said, was occasioned by slowed activity in the general
performance of the economy due to Covid-19.

 

According to data released by Ubos under the Residential Property Price
Index for the first quarter of the 2020/21 financial year, property prices
in the real estate sector, especially rentals, fell by an average of 10.5
per cent with Kampala and Makindye being the worst hit.

 

The Index covers some areas of the Greater Kampala Metropolitan Area, among
them Kampala Central, Wakiso, Makindye, Nakawa, Kawempe and Rubaga.

 

 

During the period, according to Ubos, property prices in Nakawa and Wakiso
were the worst hit, falling by 26.4 per cent and 9.5 per cent, respectively.

 

Kawempe and Rubaga, registered the least decline of 1.6 per cent
respectively, while Kampala Central and Makindye registered a drop of 6.5
per cent.

 

Fall in quality of assets

 

Last month, Bank of Uganda warned that the relative price volatility in the
real estate sector was undermining the quality of assets held by commercial
banks, noting the scenario presents a likelihood of an increase in
non-performing loans in the foreseeable future.

 

The Central Bank noted that assets quality in the real estate sector had,
for the first time since 2007/08, declined in real value, which presented
"risks to credit performance arising from the real estate sector".

 

 

In its performance of the economy report, the Central Bank indicated prices
of residential properties across the country had fallen by an average of 2.9
per in the first half of 2020.

 

However, Ms Judy Rugasira, the Knight Frank managing director, told Daily
Monitor the 2.9 per cent decline was a negligible figure to have a big
impact on non-performing loans.

 

Daily Monitor could not readily ascertain how the new decline in the Greater
Kampala Metropolitan Area is likely to affect the real estate sector.

 

House price indices, also called the Residential Property Price Index,
measures the rental charge or purchase prices of residential properties such
as flats, detached house and terraced house, among others.

 

Mr Sam Kasiromwe, the Ubos principal statistician prices, said the decline
was mostly occasioned by Covid-19 given that prices had been steady or
moving upwards before the pandemic struck.

 

For instance, he said, quarterly prices of residential properties in the
same period in the 2019/20 financial year in Wakiso had increased to 9.5 per
cernt from -1.0 per cent while those in Kampala Central and Makindye had
risen to - 2.5 per cent from - 4.7 per cent.-Monitor.

 

 

African hotel reopening strategies and recovery responses

Unsurprisingly, South Africa suffered the lowest occupancy rates in the
Southern African region YTD July. International border closures and strict
interprovincial travel lockdowns saw the vital regional hub experience a
fall of -48% points in occupancy rates from 57.2% in January to 8.7% in
July.

 

 

Leading hospitality advisory and brokerage consultancy, HTI Consulting
recently hosted its second Pan-African ‘Virtual Hotel Club,’ a digital forum
that saw the operations directors from major brands active in the African
hotel space share their unique insights around hotel re-opening strategies
and ‘lessons learnt’ during the current global pandemic.

 

An introductory session saw key data delivered by CEO of HTI Consulting,
Wayne Troughton, followed by a panel discussion involving the
representatives from major hotel brands including: Accor, Hilton, Radisson
Hotel Group, Cresta Hotels, Onomo and Valor Hospitality Partners.

 

Tourism’s fight for recovery

“The impact of the Covid-19 pandemic on the African tourism Industry has
been both overwhelming and immediate,” stated Troughton. “When comparing
figures to last year, Q1 2020 saw a total of 67 million fewer tourist
arrivals to African countries, coupled with a loss of $80 billion in export
revenue and 100% of destinations imposing travel restrictions of some kind,”
he said.

 

“Data provided by STR Global reveals that hotel occupancy rates (Jan – Jul
2020) fell a staggering 79.2% to 16.9% across Africa, ADR (Average Daily
Rates) dropped 9.8% to US$ 93.98, whilst RevPar (Revenue Per Available Room)
fell 75.8% to US$15.91,” he continued. “The obvious impacts of lockdowns and
the closing of international borders are clearly illustrated in these
numbers,” he said. “But, in the past few weeks we’ve finally begun to see
reassuring signs as restrictions are lifted, international borders reopen
and many hotels come back online,” he said.

 

“From an international travel perspective, its encouraging to see airlines
such as Emirates, Qatar and Kenyan Airways resuming several flights to
African destinations, and Ethiopian Airlines already operating at 40% of
pre-Covid capacity. Hopefully these resumptions signal the start of an
upward trend, although airlines such as KLM, AirFrance and Lufthansa are
still blacklisted in some Africa countries due to EU Covid legislation,” he
stated.

 

Still more encouraging, Troughton acknowledged, was that STR Data (Jan – Jul
2020) revealed that most branded hotels across East, West and Southern
Africa have reopened doors. Occupancy rates in West Africa in July showed
Nigeria (22.1%) as more resilient than other markets due to higher domestic
demand, whilst in East Africa, Ethiopia was the best performer (increasing
to 25.7% in July from a 16.7% low in April) compared to neighbours Tanzania
and Kenya who lack similar international business demand.

 

Unsurprisingly, South Africa suffered the lowest occupancy rates in the
Southern African region YTD July. International border closures and strict
interprovincial travel lockdowns saw the vital regional hub experience a
fall of -48% points in occupancy rates from 57.2% in January to 8.7% in
July. It appears the country has now managed to flatten the curve and
international borders open on 1st October, though with many key source
markets experiencing worrying second wave outbreaks, the results of these
openings await to be seen.

 

“Though the large majority of branded hotels, within the STR portfolio,
across Africa have reopened, the current crisis continues to affect travel
and tourism businesses of all sizes, from the largest international airlines
to the smallest independent hotel owners,” said Troughton. “Immediate
responses have understandably focused on designing plans for short-term
survival. As the crisis evolves, however, the industry is now identifying
key priorities and procedures to facilitate recovery in the medium to
long-term.”

 

Navigating new pathways to open doors

In the panel session, participants shared some of the motivations and
considerations around hotel reopenings:

Samantha Annandale (Regional Operations Director, Onomo Hotels) kicked off
discussions, stating that the key motivation behind Onomo’s decision to
reopen certain properties was, naturally, focused on breakeven parameters.
“A tremendous amount of work went into establishing these base figures, as
well as incorporating the vital human elements aligned to each property,”
she said. “Further considerations centred on lockdown regulations and
assessing the overall ‘appetite for travel,” she continued. “We were also
keenly aware that in remaining ‘risk averse’ for too long, we potentially
risked losing market share and support.” The Onomo group focuses
predominantly on 3-star corporate city hotels or hotels near airports, which
they all own and operate themselves.

 

Jan Van der Putten (VP Operations Africa & Indian Ocean, Hilton Hotels)
emphasised that ascertaining demand and opportunity were also some of the
critical factors behind the group’s decisions to reopen hotels. “Ultimately,
we knew there was no one recipe,” he stressed. “Issues such as cash flow and
obtaining the owner’s agreement as to the right decision for each location
remained imperative to us.”

 

Craig Erasmus (VP Operations, Accor Hotels) was in agreement regarding the
importance of discussions with each property owner concerning the reopening
of certain properties. Much attention was given to aspects such as safety,
sanitisation and ensuring properties were completely prepared to ‘right-side
to the new normal’ in implementing new hygiene protocols, he said. “How
certain hotels are segmented against each other was another important
factor,” he explained. “In Gauteng, South Africa, for example, four of our
Accor Hotels have one owner, so the decision to open only one of these
hotels served as an appropriate initial response.” Twenty-eight out of 67
Accor hotels across the African region continue to remain closed.

 

William McIntyre (Regional Director Southern Africa, Radisson) stated that
the core of the group’s approach to dealing with the Covid crisis centred
upon analysing the ‘cost of closure.’ “We subsequently made the decision
that, apart from 4 hotels closed at owners request, we stayed open!” he
said. “What this meant was that, in South Africa’s Lockdown Level 5, our
properties were able to assist stranded foreign nationals and essential
services personnel,” he said, “We hosted call centre business who needed to
‘spread out their work force’ and, instead of setting up in cubicles, they
worked in hotel rooms. We shut down certain sections and outlets of
properties and changed our operating structures. We also utilised guest
rooms differently by setting up way-lay stations, factory-type settings and
corporate quarantine areas,” he explains. “And, in every circumstance, we
managed to mitigate the costs of dormancy!” he said. “But it was hard!” he
confesses. “We’ve learnt lessons and dealt with scary situations but,
ultimately we’re happy we stayed open" said McIntyre. “On the up side, we’ve
cemented some new key relationships that will help take us into the future.”

 

According to Osbourne Majuru (Group CEO, Cresta Hotels) the reopening of
Cresta hotels in various regions was tackled on a leveled, case-by-case
basis. The group owns and leases properties in Zimbabwe, Zambia and
Botswana. “All leisure properties, such as those at Victoria Falls, Chobe
and the Okavango Delta, were closed from March until now,” he stated. “But
scenarios differed from country to country and our operating team had to
take various factors into account,” he said. “The recovery trajectory for
hotels varies for individual properties, even those within the same market.
For example, two hotels in the same city - one previously filled with
domestic business and another with mainly inbound international demand -
will see their occupancy and market mix rebound differently. In areas where
lockdowns weren’t that stringent (Zambia) we were able to keep certain wings
of hotels open. In other areas, such as CBD’s or parliamentary areas
(Harare, Zimbabwe), we opened sections earlier,” he said. “In Gaborone,
Botswana, we saw no value in opening three properties at once, so we opened
one that relies on local business.” Forty percent of the group’s property
portfolio (and its leased properties) currently remain closed.

 

Euan McGlashan (Owner, Valor Hospitality Partners) emphasised the different
approaches prevalent in different international regions, stating, “In the
USA, our hotels almost never shut down. At its worst, hotels there were
closed for something in the region of a week! ‘Staycation’ markets were
running full capacity in the summer. On the other hand, the group’s UK
portfolio was shut for 4 months (nearly 5) but has just opened," he
remarked.

 

Relevant to African markets, he gave 3 definitive criteria for reopening:

1. Government support (‘In the USA, govt. support effectively meant we could
pay employees, taxes and mortgage’)

2. Cost of opening vs. closing.

3. Not being last to market to open. (‘Spier Hotel in SA remained online
with food and beverage purchases’).

 

Green Shoots of Recovery - Rooted in Lessons - “At Valor we’ve always known
that culture is everything to us,” said McGlashan, “But this pandemic has
just further cemented that fact,” he said. “We knew we simply couldn’t leave
staff behind! Gaining profitability by cutting staff and leaving them
unemployed is not the answer and we’ve tried to keep everyone with some form
of income,” he stated.

 

“There are certainly some green shoots out there; movie crews and businesses
are shortly returning to South Africa, for example. Guest sentiment and
travel sentiment is that there is a pent-up demand for travel and we
anticipate that by mid next year we’ll see a lot of activity in South
Africa, in particular.”

 

Annandale believes the current crisis has brought about real tenacity and
resilience in the hospitality industry. “Onomo’s processes and planning with
regards to implementing new safety protocols, reopening hotels and
maintaining operations has undoubtedly been a collective effort – from
stakeholders, shareholders, employees and third-party suppliers,” she said
“There’s been a real spirit of togetherness,” she says. “Service providers
have stepped up, our employees (who have not always been on full pay), have
also assisted us tremendously in keeping things going and thereby preserving
jobs.”

 

McIntyre expressed that one of the toughest aspects has been the financial
and emotional wellbeing of employees and staff. “One of the hardest things
is knowing that, at Radisson, we are working as hard as we can, adapting
operations to the best of our ability, and knowing that there are still
thousands of staff waiting to come back to work; waiting for unemployment
benefits,” he said. “Aside, from this, the challenging nature of changing
our operations so drastically and bargaining over centralized costs is
another burden we had to overcome.”

 

“But,” he said, “the dedication and effectiveness of our sales teams and
staff was amazing and, ultimately, there are lots of heartwarming stories to
come from this!” “We ultimately took a positive view on what was happening,
took the decision to close away – and we just adapted! By the 1st October
we’ll be fully open across the whole region.”

 

Majuru agreed that, for Cresta Hotels, the toughest aspects were dealing
with human coping strategies and mental health issues. “These are never to
be underestimated,” he said, “We’ve been working with the WHO who’ve brought
in doctors and therapists to help staff. We’ve also addressed the stigma
associated with Covid, especially in Africa.”

 

“As part of our reopening strategy we are integrating a process where we
work to integrate staff back into the workplace. But from an operations
point of view – will we go back to the staff to room ratios that we had? We
don’t know! In many instances too, we found it easier for hotel staff to
stay at the properties and therefore we went into salary negotiations around
certain cash reserves.”

 

Annandale agreed that, along with the positives that have come from working
together with external parties and stakeholders, Onomo will “do everything
to provide an even better experience than pre-Covid, and do it with due
diligence!” Together with the other panelists, she stressed the importance
of continuing to create a welcoming environment for guests that centred
around a safe yet familiar environment.

 

In conclusion

“At HTI Consulting we continue to believe in the tourism potential in the
African region and strongly encourage further support from governments and
brand managers to allow owners to minimise further losses and support
recovery” stated Troughton. “For the time being, the complete reopening of
countries and tourism markets and the various possible scenarios remain very
uncertain. Hotels need to continue with their reopening strategies and adapt
to new markets and changing conditions - through product innovation, hygiene
protocols and cost containment - in order to survive this transition
period.”

 

“African hotels can expect significant uncertainty during the transition
period. Customers will need more flexibility in case situations change, and
some may be fearful of committing to advance purchase rates with inflexible
terms,” he said. “Whilst preparing for the comeback, industry professionals
must not forget one fundamental rule that built their past success: knowing
their guests’ concerns, adapting operational processes to new market
requirements, and continually building competitive advantage around them,”
he concluded.--traveldailynews

 

 

 

Uber's trucking business raises $500 million, valuation jumps to $3.3
billion

Uber on Friday said an investment group led by Greenbriar Equity is pumping
$500 million into its trucking unit.

 

The preferred stock financing values Uber Freight at $3.3 billion, and comes
as the San Francisco-based company's core ride-sharing service is stalled
due to the pandemic.

 

Uber Freight matches truckers to shippers in much the way the ride service
connects passengers with drivers in the so-called on-demand economy.

 

While Uber's ride service has suffered due to people hunkering down or being
reluctant to get into cars with strangers due to Covid-19 risk, the freight
unit, which launched in 2017, has grown.

 

"We have led the industry with technology, transforming dated and analog
processes to ensure that both shippers and carriers are equipped to succeed
in a rapidly changing industry," said Uber Freight chief Lior Ron.

 

Uber said it will retain a majority stake in Freight, using the money to
expand the logistics platform and speed up technology innovation.

 

"We are excited to support Uber Freight in the next stage of its
development," said Greenbriar managing partner Michael Weiss "We believe
that carriers and shippers will be increasingly attracted to the convenience
and simplicity that Uber Freight offers in a complex marketplace."

 

Greenbriar has been involved in the logistics sector for decades and brings
expertise that Uber Freight can tap into, Weiss added.

 

Uber reported a $1.8 billion loss in the second quarter of this year as the
Covid-19 pandemic caused its shared-ride business revenue to plunge.

 

Meanwhile, California has filed lawsuits against Uber and Lyft for alleged
wage theft by misclassifying drivers as independent contractors rather than
employees, in violation of a recently enacted state law.

 

Uber, Lyft and DoorDash are backing a state ballot initiative in November's
election which would classify rideshare drivers and other gig-economy
workers as independent contractors, while offering certain benefits such as
minimum wage, sick leave and workers'
compensation.-tech.economictimes.indiatimes

 

 

 

 

 

 


 


 


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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
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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
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