Major International Business Headlines Brief::: 18 October 2020

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Major International Business Headlines Brief::: 18 October 2020

 


 

 


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

 


 

 


 

 

ü  'Hasty' furlough scheme 'left room for fraud' say MPs

ü  Coronavirus: US poverty rises as aid winds down

ü  Wall Street Week Ahead: Big tech nervousness prompts calls to diversify

ü  Frozen food package polluted by living coronavirus could cause infection,
China's CDC says

ü  U.S. retail sales blow expectations in September; dark clouds gathering

ü  Deloitte to shut four UK offices as COVID-19 entrenches remote working

ü  Amid tensions with China, India warns Amazon, Flipkart over country of
origin rule

ü  UK business groups urge Britain, EU to find compromise: FT

ü  Driverless race steps up with Cruise allowed to drive empty in San
Francisco

ü  China's turbo-charged online fashion takes on Zara and H&M

ü  Nigeria: Investigation - How Non-Existent Company Was Awarded
Multi-Billion Naira Railway Contract

ü  East Africa Could Become a Major Cannabis Export Hub

ü  Ethiopia: More French Companies Keen to Invest in Ethiopia in Various
Sectors - French Ambassador

ü  Ethiopia: Chinese Companies Invests Over U.S.$1.1 Billion in Ethiopia

 

 

 

 

 

 

 

 

 

 

 


 <http://www.spidexmedia.com/> 

 


 

'Hasty' furlough scheme 'left room for fraud' say MPs

Rushed-through coronavirus aid may have led to the loss of billions of
pounds of taxpayers' money through fraud and error, MPs have warned.

 

There was an "astonishing lack of economic planning for a pandemic" which
led to "hastily drawn up economic support schemes", the Commons Public
Accounts Committee said.

 

That meant "unacceptable room for fraud against taxpayers," it added.

 

But the government said the schemes "had provided a lifeline to millions".

 

"We make no apology for the speed at which they were delivered," a spokesman
said, adding that the government had rejected "thousands of fraudulent
claims". "Without them lives would have been ruined."

 

Since the spring, the government has approved billions in spending and tax
cuts to cushion the economy from the effects of the pandemic, including
discounts to encourage dining out and income support for furloughed workers.

 

The furlough scheme, which is due to finish at the end of October, was
designed to pay 80% of the wages of employees at firms hit by the pandemic.

 

According to the latest figures, it sent £39.3bn to 1.2 million employers to
the 20 September.

 

But a recent estimate by Her Majesty's Revenue and Customs (HMRC) suggested
that up to 10% of the money delivered by the scheme to mid-August - £3.5bn -
may have been paid out in fraud or error.

 

The Commons Public Accounts Committee, which reviews government expenditure,
described the figure as "very worrying".

 

The government should have been better prepared for the economic fall-out
from the coronavirus outbreak, as a pandemic had been top of the national
risk register for years, Committee chair Meg Hillier said

 

"Our finding of the astonishing lack of economic planning for a pandemic
shows how the unacceptable room for fraud against taxpayers was allowed into
the government's hastily drawn up economic support schemes," she said.

 

"I would like to see the government publish a list of the companies which
received furlough money. Where taxpayers money is being used, transparency
should be a given."

 

The committee also said when the outbreak occurred, HMRC switched staff from
frontline tax collection activities to guiding taxpayers through the various
Covid support schemes. But that has hurt the government's ability to collect
revenue.

 

HMRC has estimated the revenue it collected through its compliance work in
the first three months of the tax year 2020-21 was down 51% on the same
period the previous year, and warned the sums may never be recovered.

 

The committee said HMRC had administered the tax system based on the
assumption that that the "vast majority" of taxpayers would be able to meet
their obligations and that only a "few exceptions" would need to be pursued
for non-compliance.

 

It said HMRC recently started issuing penalties for people not filing tax
returns, because there has been a drop in the numbers being filed.--BBC

 

 

 

 

Coronavirus: US poverty rises as aid winds down

Poverty rates in the US are rising, as government aid winds down despite
ongoing economic distress caused by the pandemic.

 

Nearly 8 million Americans - many of them children and minorities - have
fallen into poverty since May, university researchers have said.

 

Last week, nearly 900,000 people filed new claims for jobless benefits - the
highest number since August.

 

Analysts have called for aid to prevent the economic recovery from stalling.

 

But politicians in Washington have been at odds over a deal for months, with
talks in recent weeks overshadowed by the upcoming presidential election and
disputes over the Supreme Court.

 

"The sobering reality is that it appears further help may not be coming from
elected officials in Washington," said Mark Hamrick, senior economic analyst
at Bankrate.com.

 

Stimulus relief

This spring, as the pandemic cast more than 20 million Americans out of
work, the US government approved more than $3tn (£2.3tn) in relief money.

 

The aid included cheques of up to $1,200 for most individuals and money to
temporarily boost unemployment benefits by an extra $600 per week.

 

The massive spending wave initially blunted the economic upheaval caused by
the virus, prompting poverty rates to decline.

 

But those figures began to tick up again this summer, as the one-time
financial boost from the cheques wore off and the expansion to unemployment
benefits expired at the end of July.

 

'Lockdown was madness at home but saved us financially'

Extreme poverty 'set for first rise since 1998'

'Millions face poverty' in Brazil if handouts stop

As of September, the poverty rate stood at 16.7%, up from 15.3% in February
and 14.3% in May, with higher rates among children and minorities, according
to calculations by researchers at Columbia University.

 

A separate analysis by researchers at the University of Chicago and Notre
Dame estimated the poverty rate at 10.1% in September, up from the 11% seen
in February and 9.3% in May.

 

The increase is in line with rising poverty rates around the world due to
the pandemic. The World Bank this month warned that extreme poverty was set
to rise for the first time in more than two decades.

 

Until the pandemic, 49-year-old Latacha Barnett worked as a substitute
teacher in Louisville, Kentucky during the school year and at a hair salon
in the summer. The virus eliminated both lines of work.

 

For two months this spring, she received unemployment payments. But those
stopped in June, at the end of the school year, forcing her to dip into
savings she had hoped to one day put toward a buying a house, stop her
internet service and go to food banks for groceries for herself for the
first time.

 

Ms Barnett, who is the primary earner for her three children and two
grandchildren, exhausted her savings last month.

 

"I just didn't expect it to go on as long as it has," she says. "It's been
an extremely difficult time for us. I'm behind on everything."

 

Ms Barnett finally started a new job this month as a family advocate - one
she took despite the possible health risks. She says the people she's really
worried about are those who can't get new jobs and don't have savings to see
them through.

 

"I honestly think it's been horrible that no more has been done," she says.

 

In the US, President Donald Trump has celebrated that the economy has so far
rebounded faster than many analysts initially expected.

 

But while the US has regained about half the jobs lost in March and April,
many economists do not expect the labour market to fully recover before the
end of 2023 - and they warn that momentum appears to be slowing.

 

Thursday's Labor Department report showed an unexpected 53,000 increase in
unemployment filings from the week before, sending new claims to a two-month
high.

 

More than 25 million people continued to collect some form of unemployment
payment as of 26 September, the Labor Department said.

 

Wells Fargo economist Sarah House said the report showed "the risk of the
labour market's recovery going into reverse".

 

Democrats in May approved more than $3tn in additional spending, but
Republicans in the Senate have balked at the sums and White House efforts to
broker a compromise have so far failed.

 

On Thursday, Mr Trump said he was willing to agree to more spending, but
Treasury Secretary Steven Mnuchin, who has been leading negotiations on
behalf of the president, said a deal would be difficult before the November
presidential election.

 

Mitch McConnell, who leads Republicans in the Senate, said Congress would
approve more aid, if not before the election then after. But he warned that
his members continue to favour more limited, targeted relief.-BBC

 

 

 

 

Wall Street Week Ahead: Big tech nervousness prompts calls to diversify

NEW YORK (Reuters) - As a technology-driven rally brings U.S. stock indexes
within striking distance of fresh records, concerns that big names are
over-extended and that new regulation might be coming have some investors
diversifying beyond the rally leaders.

 

 

The S&P 500's five biggest companies, Apple Inc AAPL.O, Microsoft Corp
MSFT.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Facebook Inc FB.O
now account for 28% of the index's weighting and have been responsible for
25% of its earnings, Goldman Sachs said earlier this month.

 

On average, these tech and internet-driven stocks have gained 49.23% this
year, compared to a 7% gain for the S&P 500 - and are up 9.6% on average
since Sept. 21, versus 6.6% for the S&P 500. They are expected to report
strong third-quarter earnings in coming weeks, proving their mettle in a
year when the coronavirus pandemic fueled a work-from-home economy while
devastating companies linked to sectors like travel, restaurants, and fossil
fuels.

 

Still, some worry that mega-cap tech companies are exposed to factors that
may cut their allure in the months ahead. Being long technology is the most
crowded trade of all time, according to a recent Bank of America fund
manager survey.

 

“It’s all about trying not to have all your eggs in one basket,” said Laura
Kane, head of Americas thematic investing at UBS Global Wealth Management.
“It’s about trimming certain exposures and rotating into something else.”

 

UBS analysts have recommended diversifying out of mega-cap tech stocks on
signs of an economic recovery and climbing valuations. They urge rebalancing
into U.S. semiconductors, which are more sensitive to economic recovery, as
well as emerging market value stocks and United Kingdom-based equities.

 

Societe Generale analysts also recently cited a challenging regulatory
environment as one reason to diversify out of U.S. tech shares and into
Asian ones and European stocks.

 

Regulatory concerns have heightened following a scathing report here
detailing market power abuses by Google, Apple, Amazon and Facebook issued
earlier this month by the U.S. House Judiciary Committee's antitrust panel.
The report has raised concerns that tough new rules and stricter enforcement
for big tech companies will follow should Democratic presidential candidate
Joe Biden win the White House.

 

A potential breakthrough in the search for a COVID-19 vaccine also could
also spur bets on shares of economically sensitive value and cyclical stocks
that may benefit from a stronger economic recovery, potentially dimming the
appeal of tech, Soc Gen analysts said.

 

The median 12-month forward price-to-earnings ratio for the Big 5 tech
stocks is 31, while the S&P 500 trades at a 12-month forward PE ratio of 22,
according to Refinitiv. Still, they are not as extended as in the dotcom
period, with overall profitability, dividends and balance sheet strength in
much better shape than 20 years ago.

 

Companies investors will be watching next week as they report third-quarter
results include Netflix Inc NFLX.O on Tuesday, Tesla Inc TSLA.O and Verizon
Communication Inc VZ.N on Wednesday, and Intel Corp INTC.O on Thursday.
Apple, Amazon, Alphabet, Microsoft and Facebook report the following week.

 

Many investors still see the big tech names, with their strong balance
sheets and financial results, as havens as coronavirus cases continue to
climb and the economy struggles with a lack of new fiscal stimulus.

 

“These companies deliver powerful profits,” said Jack Ablin, chief
investment officer at Cresset Wealth Advisors. “People have to keep in mind
that the five largest tech companies make more in earnings than the entire
Russell 2000 combined, so this isn’t the internet bubble.”

 

It might be a good idea to trim some tech exposure if the position has
gotten too overweighted, but the sector’s gains are largely being driven by
fundamentals, said Michael Farr, president of Farr, Miller & Washington LLC.

 

To rotate out of tech because of big gains and some recent volatility would
be “a suckers’ trade,” he added. “Reports of their demise have been greatly
exaggerated,” he said of the big tech stocks.

 

 

 

 

Frozen food package polluted by living coronavirus could cause infection,
China's CDC says

BEIJING (Reuters) - China’s disease control authority said on Saturday that
contact with frozen food packaging contaminated by living new coronavirus
could cause infection.

 

 

The conclusion came as the Chinese Center for Disease Control and Prevention
(CDC) detected and isolated living coronavirus on the outer packaging of
frozen cod during efforts to trace the virus in an outbreak reported last
week in the city of Qingdao, the agency said on its website.

 

The finding, a world first, suggests it is possible for the virus to be
conveyed over long distances via frozen goods, it said.

 

Two dock workers in Qingdao who were initially diagnosed as asymptomatic
infections in September brought the virus to a chest hospital during
quarantine due to insufficient disinfection and protection, leading to
another 12 infections linked to the hospital, authorities said last week.

 

However, the CDC’s latest statement does not show solid proof that the two
workers in Qingdao caught the virus from the packaging directly, rather than
contracting the virus from somewhere else and then contaminating the food
packaging they handled, said Jin Dong-Yan, a virology professor at the
University of Hong Kong.

 

The CDC said no instance had been found of any consumer contracting the
virus by having contact with frozen food and the risk of this happening
remained very low.

 

Nonetheless it advised that workers who handle, process and sell frozen
products should avoid direct skin contact with products that could possibly
be polluted.

 

Staff should not touch their mouth or nose before taking off work garments
that could possibly be contaminated without washing their hands and should
take tests regularly, the agency said.

 

Prior to the CDC’s latest findings genetic traces of the virus had been
found in some samples taken from frozen food or food packaging, but the
amount of virus was low and no living virus was isolated, the agency said.

 

Only living virus can infect people, while samples containing dead virus
could also test positive for virus traces, Jin said.

 

 

 

U.S. retail sales blow expectations in September; dark clouds gathering

WASHINGTON (Reuters) - U.S. retail sales accelerated in September, rounding
out a strong quarter of economic activity, but the recovery from the
COVID-19 recession is at a crossroads as government money runs out and
companies continue to layoff workers.

 

New coronavirus cases are also surging across the country, which could lead
to restrictions on businesses like restaurants, gyms and bars, and undercut
consumer spending. The economy is already shifting into lower gear. Other
data on Friday showed an unexpected drop in output at factories last month.

 

“Although sales growth is strong, it will slow through the rest of this year
and into next year,” said Gus Faucher, chief economist at PNC Financial in
Pittsburgh, Pennsylvania. “The slowing will be even larger if Congress does
not pass another stimulus bill. Unemployment remains pervasive throughout
the U.S. economy.”

 

Retail sales jumped 1.9% last month as consumers bought motor vehicles and
clothing, dined out and splashed out on hobbies. That followed an unrevised
0.6% increase in August.

 

Economists polled by Reuters had forecast retail sales would rise 0.7% in
September. Some said September’s surge was likely exaggerated by
difficulties stripping seasonal fluctuations from the data after the shock
caused by COVID-19. Unadjusted retail sales fell 2.8% after dropping 1.0% in
August.

 

Retail sales have bounced back above their February level, with the pandemic
boosting demand for goods that complement life at home, including furniture
and electronics. An aversion to public transportation has boosted motor
vehicle purchases. Retail sales rose 5.4% on a year-on-year basis in
September.

 

They account for the goods component of consumer spending, with services
such as healthcare, education, travel and hotel accommodation making up the
other portion.

 

Excluding automobiles, gasoline, building materials and food services, sales
increased 1.4% last month after a downwardly revised 0.3% drop in August.

 

These so-called core retail sales correspond most closely with the consumer
spending component of gross domestic product. They were previously estimated
to have dipped 0.1% in August.

 

Economists have attributed the strength in retail sales to fiscal stimulus,
especially a weekly subsidy paid to tens of millions of unemployed
Americans. September’s robust sales reinforced expectations for record
consumer spending and economic growth in the third quarter.

 

Growth estimates for the July-September quarter are as high as a 35.2%
annualized rate. That would recoup roughly two-thirds of the output lost
because of COVID-19. The economy contracted at a 31.4% pace in the second
quarter, the deepest decline since the government started keeping records in
1947.

 

U.S. stocks bounced from three straight days of losses on the retail sales
data and Pfizer’s announcement that it could apply for emergency use of its
COVID-19 vaccine candidate as early as November.

 

BROAD SALES GAINS

Last month, sales at auto dealerships surged 3.6%. Receipts at restaurants
and bars increased 2.1%. Receipts at clothing stores jumped 11.0%.

 

“Some of the gain may have reflected increased demand from back to school
sales, but with most schools remote learning the reported strength seems
dramatic and likely unsustainable,” said Kevin Cummins, chief U.S. economist
at NatWest Markets in Stamford, Connecticut.

 

Even with September’s gains, sales at bars, restaurants and clothing stores
remain well below their pre-pandemic levels.

 

Purchases at electronics and appliance stores fell 1.6%.

 

Online and mail-order retail sales rose 0.5%. Furniture store sales gained
0.5%. Sales at sporting goods, hobby, musical instrument and book stores
rebounded 5.7%. These categories notched big year-on-year increases in
September, which economists said showed the uneven impact of the recession.

 

“It’s further evidence of how many top earners have managed to dodge the
pandemic by working from home, while most lower- paid workers have been
forced to choose between jobs putting them at risk, when they can find them,
and unemployment,” said Chris Low, chief economist at FHN Financial in New
York.

 

The White House and Congress are struggling to reach a deal on another
rescue package for businesses and the unemployed. The government reported on
Thursday that new claims for unemployment benefits increased to a two-month
high last week.

 

Last month’s jump in retail sales set consumer spending on a higher growth
path heading into the fourth quarter, which will likely ensure that the
economy continues to expand, though at a moderate pace. Growth estimates for
the fourth quarter have been slashed to as low as a 3% rate from above a 10%
pace.

 

Some economists believe that historic savings could cushion consumer
spending in the absence of more financial aid from the government. Others,
however, caution that rising COVID-19 infections and job losses could
encourage some consumers to hunker down and conserve savings.

 

A survey from the University of Michigan on Friday showed consumer sentiment
edging up in early October.

 

Consumers, however, worried about current economic conditions because of
“slowing employment growth, the resurgence in COVID-19 infections and the
absence of additional federal relief payments.”

 

They were less enthusiastic about buying household appliances. The share who
believed it was a good time to buy a car was the lowest in nine years.

 

 

 

 

Deloitte to shut four UK offices as COVID-19 entrenches remote working

(Reuters) - Global accounting and consulting firm Deloitte will close four
of its 50 British offices as it reviews its real estate portfolio in the
coronavirus pandemic, but will retain the staff on work-from-home contracts,
it said on Saturday.

 

COVID-19 has changed working life for millions of people around the world,
many of whom have switched from offices to working from home - reducing
demand for office space and prompting companies to opt out of renewing
leases.

 

Deloitte said it would shut its offices in Gatwick, Liverpool, Nottingham
and Southampton, where about 500 people work.

 

“COVID-19 has fast-tracked our future of work programme, leading us to
review our real estate portfolio,” Stephen Griggs, Deloitte’s UK managing
partner, said in an emailed statement.

 

He said all staff based at the four locations slated for closure would
continue to be employed by Deloitte under permanent work-from-home
contracts.

 

“Any proposed change is to our ‘bricks and mortar’, not our presence in
these regions”, he said.

 

The Financial Times newspaper first reported on the closures.

 

In April, Deloitte said it would be cutting pay for partners at its British
businesses by 20% to protect jobs during the coronavirus crisis.

 

 

 

 

Amid tensions with China, India warns Amazon, Flipkart over country of
origin rule

MUMBAI (Reuters) - The Indian government has warned Amazon.com’s local unit
and Walmart’s Flipkart that sellers on their platforms are not complying
with a rule requiring that a product’s country of origin be specified.

 

A push for strict enforcement of the rule has come amid tensions between
India and China following a border skirmish which began in June, and is part
of India’s efforts to cut down on Chinese-made imports.

 

The two e-commerce firms have been given 15 days to explain the lapses or
action will be taken against them, according to an Oct. 16 letter addressed
to the companies from the Ministry of Consumer Affairs and seen by Reuters.

 

It did not specify what action may be taken, referring only to a legal act
that has provisions for fines.

 

Representatives for Amazon and Flipkart did not immediately respond to
Reuters requests seeking comment outside regular business hours.

 

In addition to enforcing the country of origin rule, New Delhi has also
banned 177 Chinese mobile applications since June while Chinese goods in
ports have faced extra scrutiny and delays.

 

Amazon has often faced regulatory challenges in India. Last year, the
government enforced strict rules for foreign investment in e-commerce which
forced the U.S. retail giant to rework its business structures and strained
ties between New Delhi and Washington.

 

In January, the Competition Commission of India ordered an investigation
into Amazon and Flipkart over alleged violations of competition law and
certain discounting practices, which Amazon is challenging, according to
court filings.

 

 

 

 

UK business groups urge Britain, EU to find compromise: FT

(Reuters) - More than 70 British business groups representing over 7 million
workers have made a last-ditch attempt to persuade politicians to get back
on the dialogue table next week to strike a deal with the European Union,
the Financial Times newspaper reported on Sunday.

 

The groups ranged from the CBI, TheCityUK and techUK to the National
Farmers' Union, British Retail Consortium and the Society of Motor
Manufacturers and Traders and asked for the sides to find a compromise over
trade terms, the report added on.ft.com/2H8JayB.

 

“With compromise and tenacity, a deal can be done. Businesses call on
leaders on both sides to find a route through”, the newspaper quoted the
groups as saying in a statement.

 

 

 

 

Driverless race steps up with Cruise allowed to drive empty in San Francisco

OAKLAND, Calif. (Reuters) - The race for driverless autonomous vehicles is
heating up and on Thursday Cruise became the first to receive a permit to
test cars without anyone in them on the streets of San Francisco from
California’s Department of Motor Vehicles.

 

Cruise, which is majority owned by General Motors Co GM.N and counts Honda
Motor Co Ltd 7267.T and SoftBank Group 9984.T as investors, has been testing
180 self-driving cars in San Francisco with a safety driver behind the
wheel, and the permit allows five of those cars to roam empty. But don’t
expect robo-taxis just yet.

 

“So that’s a step or two beyond what we’ll be doing initially with this
permit,” said Dan Ammann, Cruise’s chief executive. “It’s not too far down
the road,” he said, but declined to share a timeline.

 

In a blog post, he added, "We’re not the first company to receive this
permit, but we’re going to be the first to put it to use on the streets of a
major U.S. city." (here)

 

It will be an important step for Cruise to charge customers.

 

For any of the companies to start making money in California, a separate
permit is required, state officials said.

 

As part of SoftBank’s investment, SoftBank is obligated to purchase
additional Cruise shares for $1.35 billion when Cruise is ready for
commercial deployment.

 

“That’s a nice incentive to get to commercial deployment,” said Ammann,
adding Cruise was in “very strong” financial shape after raising more than
$7 billion. Cruise booked a $1 billion loss in 2019, according to a GM
filing.

 

Cruise is the fifth company to receive the driverless permit in California.
Alphabet’s Waymo was the first in late 2018 to receive it for about three
dozen test vehicles with speeds of up to 65 miles per hour. This year
SoftBank-backed Nuro, whose vehicle has no steering wheel or pedals, was
also approved and has delivered medical supplies for temporary COVID-19
hospitals.

 

Chinese startup AutoX and Amazon.com Inc's AMZN.O Zoox also got their
permits in recent months. The four previous permits are for cities in
Silicon Valley that are easier to navigate.

 

Under its permit, Cruise cars can go anywhere on San Francisco streets at a
maximum speed of 30 miles per hour, and can drive both day and night.

 

In Arizona, which has been more open to testing of self-driving cars without
drivers, Waymo has already been charging a select group of customers since
summer of 2019 for empty vans that pull up and shuttle them around. That
program - temporarily paused for the pandemic - was restarted in October and
is expected to soon open to the wider public.

 

To prepare for its robotaxi future, Cruise is working on improving its ride
hailing app that employees use for free to get around the city, Ammann said.

 

That future would likely eventually include the Cruise Origin an electric
vehicle with no steering wheel or pedals unveiled in January, but it would
require approval from The National Highway Traffic Safety Administration
(NHTSA).

 

 

 

 

China's turbo-charged online fashion takes on Zara and H&M

MADRID/BEIJING (Reuters) - China’s Shein may be the biggest shopping site
you’ve never heard of.

 

The fast-fashion player is encroaching on the territory of more established
rivals like Zara and H&M. It has become the largest, purely online, fashion
company in the world measured by sales of self-branded products, according
to Euromonitor.

 

Nanjing-based Shein, founded in 2008, is aiming squarely at the “Gen Z”
social-media generation, using influencers on Instagram and TikTok, and
discount codes, to attract younger shoppers in an increasingly crowded
fashion market.

 

It offers low-cost styles, uploading hundreds of new designs to its app
every week. The price for a dress is around half that of Zara, according to
a recent Societe Generale price survey.

 

“You can save money, which is important when buying clothes as the fashions
change so quickly,” said Rebeca Rondon, a 23-year-old student in Valencia,
Spain, whose Instagram page compares dozens of styles from Shein and Zara
head-to-head.

 

The COVID-19 pandemic has boosted online sales at retailers, giving
online-only players like Shein, Britain's Asos ASOS.L and Germany's Zalando
ZALG.DE an edge over Inditex-owned Zara ITX.MC and H&M HMb.ST which have big
city-centre stores.

 

In September, the Shein app saw 10.3 million downloads globally from across
the App Store and Google Play, Sensor Tower data shows. In comparison, H&M’s
mobile app hit about 2.5 million, and Zara saw 2 million.

 

To date, Shein has reached 229.4 million downloads, versus H&M’s 123.5
million and Zara’s 90.6 million, the data shows.

 

In the week of Sep. 27-Oct. 3, Shein was the most downloaded shopping app
globally on iPhones, according to analytics platform App Annie. It ranked in
the top 10 in the United States, Brazil, Australia, Britain and Saudi
Arabia.

 

Privately-owned Shein, which also sells on Amazon, does not publicly
disclose sales or other financial figures. The company did not respond to
emails or phone calls.

 

It has backing from investors including IDG Capital and Sequoia Capital
China, according to PitchBook capital market data. The funds did not respond
to interview requests.

 

 

A keyboard and a shopping cart are seen in front of a displayed Shein logo
in this illustration picture taken October 13, 2020. REUTERS/Dado
Ruvic/Illustration

Inditex and H&M declined to comment for this story.

 

UNKNOWN QUANTITY?

Although Shein is gaining more followers, it has limited visibility compared
with the likes of Zara and H&M. It has no domestic presence in China, where
online shoppers go to Alibaba’s Taobao and to Pinduoduo for clothes at
bargain prices.

 

Meanwhile, some consumers say the quality of items can be variable and
delivery times erratic.

 

Unlike Zara and H&M, which have detailed background on the sourcing of their
clothing and the working conditions of employees on their websites and
annual reports, Shein gives no details about the manufacture of its
products.

 

Inditex revolutionised the fashion industry in the 1990s by responding
quickly to trends and speeding designs to stores using factories close to
its headquarters in Spain.

 

Shein also works with hundreds of factories in close proximity to its
Nanjing HQ, according to a China-based industry source with knowledge of the
company’s business practices.

 

The Chinese company aims to get designs ready for shipping in three days,
according to the source who wanted to remain anonymous because of sensitive
business practices.

 

Three days is a significant compression of Inditex’s lead time, from drawing
board to store, which is around 3 weeks according to the Spanish company.

 

 

 

 

Nigeria: Investigation - How Non-Existent Company Was Awarded Multi-Billion
Naira Railway Contract

Eser Contracting and industry Company Incorporated was unregistered but was
awarded a N19.2 billion railway rehabilitation contract in violation of
public procurement regulations.

 

A multi-billion-naira contract to rehabilitate a section of Nigeria's
Eastern Railway Line was awarded to an unregistered entity in a process that
reeked of corruption, regulatory failure, collusion, and defiance of
Nigeria's public procurement rules, an investigation by PREMIUM TIMES has
shown.

 

That malfeasance was committed during the administration of Goodluck
Jonathan, Nigeria's immediate past president, who lost his re-election bid
in 2015 in part due to charges that his government did not confront
corruption frontally.

 

But officials under the current Muhammadu Buhari administration have also
not proven to be better. They have helped to sustain a web of subterfuge
devised to cover the fraud that started under Mr Jonathan.

 

 

A setup named Eser Contracting and Industry Company Incorporated, promoted
by Turkish firm Eser, was awarded the contract to rehabilitate the 463 KM
Port Harcourt-Makurdi section of the Eastern Railway line for N19.2 billion
in March 2011. But it has no legal capacity for the work as it has no
required certificate of incorporation, a CAC search revealed.

 

Our investigation showed the setup has possible connections with persons -
Adekemi Alokolaro, nee Sijuwade, and her husband, Ola Alokolaro - who share
family ties with Adeseyi Sijwuade, then Managing Director of the Nigerian
Railway Corporation. For several years Mr Sijuwade has been a subject of
contract fraud and corruption probes by the National Assembly and security
and anti-graft operatives.

 

The couple, Mr and Mrs Alokolaro, did not respond to an emailed request for
comment. So did Mr Sijuwade, who was contacted by phone call, WhatsApp
message and SMS.

 

 

The railway rehabilitation work was divided into three sections: 463 KM Port
Harcourt-Makurdi; 1016 KM Makurdi-Kuru; and 640 KM Kuru to Maiduguri, all at
once awarded to three different contractors in March 2011.

 

This article extends PREMIUM TIMES' investigative reporting on Nigeria's
Eastern railway fraud, after an earlier story of how a company, Lingo
Nigeria Limited, took public money for work not done and had Nigerian
taxpayers and two foreign firms, from Czech and China, as victims.

 

Lingo was awarded the Kuru-Maiduguri section for N23.7 billion. CGGC Global
Projects Nigeria Limited was charged with rehabilitating the segment that
runs from Makurdi to Kuru for N24.5 billion.

 

Nine years after the contracts were awarded, the rehabilitation work has
failed despite huge funds already sunk, dashing the hopes of people,
especially traders, who had in the past several years relied on train
service. The government has now decided to wrest the contracts from the
companies, who have submitted their exit plans on the government's request.

 

 

Of the three contracts, two - the Port-Harcourt-Makurdi section and
Kuru-Maiduguri section - given to Lingo and Eser respectively were
associated with procurement fraud, our investigations showed. And while our
earlier article described the contract awarded to Lingo as the most
problematic, the procurement process involving Eser pushes the limits of
impunity.

 

We did not find the third contract given to CGGC to have been associated
with any procurement fraud. However, as our field investigation involving
travel across several states showed, CGGC also did jobs, which on-the-ground
railway staff complained was perfunctory - a similar complaint as that made
by the staff at the section handled by Eser.

 

The staff said it was the shoddy job that made the Eastern line now
virtually unusable and not different from its state before the
rehabilitation contract, if not worse.

 

Against the rules

 

In the invitation-to-bid advert for the contracts placed in the
November-December 2010 edition of Federal Tenders Journal, the railway
corporation required prospective contractors to submit a valid certificate
of incorporation -- a statutory requirement.

 

However, this requirement was brushed aside in the consideration of the bid
submitted by Eser Contracting and Industry Company Incorporated even as the
process moved from the railway corporation to the Bureau of Procurement
Procurement (BPP), and the ministry of transport and the presidency before
the contract was awarded.

 

The Public Procurement Act charges the BPP with the responsibility of
preventing "fraudulent and unfair procurement" and applying administrative
sanctions "where necessary".

 

But the BPP failed in this responsibility as it issued a "Certificate of No
Objection" to clear the way for the railway corporation to award the legally
non-existent company the contract. Also, it was the certificate issued by
the BPP that the then Transport Minister, Yusuf Suleiman, cited in
requesting anticipatory approval for the award of the contract from Mr
Jonathan.

 

The ministerial request was made on March 25, 2011, a day after the BPP's
certificate was issued, and was approved on March 28, 2011, by Mr Jonathan,
official records obtained by PREMIUM TIMES show. It was in November of the
following year that the Federal Executive Council endorsed the Eser contract
alongside the two other sections as the president had in March 2011
hurriedly given anticipatory approval.

 

BPP did not comment after repeated requests via email and a Freedom of
Information Act letter.

 

Legal expert, Jiti Ogunye, said a foreign firm participating in the
procurement process in Nigeria will still have to incorporate an entity in
the country to satisfy the "legal capacity" requirement stipulated in the
Public Procurement Act.

 

The Cover: Enters Eser West Africa

 

After the non-existent Eser Contracting and Industry Company Incorporated
was given the contract in March 2011, the promoters devised a way to
smoothen the irregularities. The plan was to register a new company, thus
birthing Eser West Africa Limited.

 

Eser West Africa Limited was registered in June 2011, three months after the
contract was awarded, and that entity has since carried on with the
contract, engaging with officials, including those of Mr Buhari. The name
"Eser West Africa" appears on boards at the construction site at the railway
station in Port Harcourt.

 

But Eser West Africa had not been registered at the time the contract was
awarded and it was not the entity that was formally awarded the contract,
according to records from BPP, NRC, transport ministry, State House, and
FEC.

 

Yet, till date, despite its not being the original contract beneficiary and
being without a certificate of incorporation at the time the contract was
awarded, officials have continued to engage with Eser West Africa and use
that name in official communications relating to the Eastern railway line
rehabilitation contract.

 

While our investigation established that Eser Contracting and Industry
Company Incorporated has no certificate of incorporation in Nigeria, it
remains uncertain if it satisfied other requirements, such as tax clearance
and audited accounts for the preceding three years, in the advert for the
contracts.

 

The Federal Inland Revenue Service (FIRS) replied an FOI request for the
entity's tax status as well as that of the later-registered Eser West Africa
created to smoothen the procurement fraud. The tax agency, however, declined
any disclosure.

 

"The information you have requested concerning the companies cannot be
disclosed by virtue of the provision," the FIRS wrote, referring to Section
14(1) (b) of the Freedom of Information Act 2011, which requires public
institutions to deny applications for information regarding taxpayers and
the assessment or collection of their tax.

 

Family link

 

An initial procurement process for the Eastern line rehabilitation contract
was cancelled by then transport minister, Mr Suleiman, over allegations of
fraud and irregularities. Among the companies that benefited in that
cancelled initial process was Eser Nigeria Contracting Company Limited,
registered in March 2009, just before bidding opened.

 

That was the first appearance of Eser in railway procurement activities.
Eser Nigeria Contracting - different from the legally non-existent Eser
Contracting and Industry Company Incorporated and Eser West Africa,
registered in June 2011 ostensibly to smoothen irregularities - has among
its owners and directors Project Niche Limited, alongside Lihan Adiloglu, a
Turkish businessman, according to incorporation filings we obtained.

 

Project Niche is owned and directed by Mr and Mrs Alokolaro, who represent
that company as directors on the board of Eser Nigeria Contracting,
according to incorporation filings. Mrs Alokolaro, a daughter of the late
Ooni of Ile-Ife, Okunade Sijuwade, shares family ties with Mr Sijuwade, who
oversaw the procurement process. This is the possible link our investigation
showed may exist between Mr Sijuwade's family members and promoters of Eser.

 

Also, an Eser-associated company, Espro Asphalt, has Mrs Alokolaro as one of
its directors alongside Eser Contracting and Industry, represented by
Cagatay Tezsezen.

 

Eser could not be reached for comments. Nothing resulted from our visit to
the Lagos address the company listed in its incorporations filings. Security
staff at the building said the company does not operate from that address.
An email to the address listed on the website of its parent company based in
Turkey was not replied.

 

Then minister, Mr Suleiman, said determining the validity of the claims made
by Eser was outside his charge as minister.

 

"I honestly was not aware," he said. "Everything about tendering, due
diligence and all that were by the railway corporation as well as the BPP.
As a minister, I was not the accounting officer and was only transmitting
letters to the President for approval. But I had power to cancel or review
if there was genuine complaint. But I got no complaints. I cancelled the
initial process because of complaints about irregularities."

 

"Not rehabilitation really"

 

PREMIUM TIMES investigation included the tracking of the work done by the
contractors in Rivers, Abia, Enugu, Benue, Nasarawa and Kaduna States, which
the Eastern Railway line transverses before linking Kuru in Plateau State
and going through Bauchi and Gombe States before terminating in Borno State.
We had earlier conducted fieldwork from Kuru to Gombe for our earlier
report.

 

At the railway station in Port Harcourt, a board bearing "Eser West Africa"
as the contractor stands conspicuously at the entrance. This company, though
found to have taken the contract in ways that violate Nigeria's law, worked
from Port Harcourt to Makurdi, the endpoint of the section it was assigned,
railway staff on the ground and community sources said.

 

However, the staff also said the rehabilitation work was only done by Eser
in selected places, especially areas close to stations.

 

"I can't say that was true rehabilitation," one staff said, echoing the
concerns of others in Otukpo, Benue State. And what the staff complained was
manipulation and abuse of their labour rights. They said Eser "used us to do
their contract and did not pay us. They manipulated that we were doing our
normal official work but they collected billions to do the work and hire
workers."

 

At least three persons corroborated this claim. Then, the staff further
alleged that Eser used old rails and accessories that were kept in stores
for the rehabilitation work.

 

The staff did not agree to be named because of fear they could be punished
by authorities.

 

In what appears to support the claim of the complaining staff, PREMIUM TIMES
observed that old rails of BS-60 model with dates that preceded independence
were still on the tracks, which in various places have been covered by
trash, sand and bushes.

 

After Eser's work, trains started using the track but stopped in 2017. "But
trains were just derailing because of the nature of the work they (Eser)
did," one staff said.

 

However, PREMIUM TIMES confirmed that daily service between Port Harcourt
and Aba only stopped due to the COVID-19 restrictions based on interviews
with staff and several persons who had used the service.

 

"It is a safer and cheaper way of travelling," Tunde Lasisi, a trader in
Port Harcourt said, adding that train service was his means of sending goods
to Aba, the commercial nerve centre of Abia State.

 

In Makurdi, where CGGC started its work, one senior staff on the ground, who
only agreed to speak without being identified by name, largely corroborated
the claims of his colleagues previously interviewed in the section handled
by Eser.

 

"They only put balance stones to make the track look new," the staff said.
"They replaced the rails but they used the old ones in the store and they
used our men."

 

Yet that was limited to within the station yard, the staff said, explaining
that rehabilitation did not take place in the wider Makurdi area.

 

Recalling the January 2015 inauguration of "modern trains" for Port
Harcourt-Makurdi service by Mr Jonathan's deputy, former Vice President
Namadi Sambo, the staff said, "We only rode the train within the yard,
between the level crossings. It was all formality but the VP may not know
about the type of work that was done."

 

The staff further said that "passenger service started but trains were
derailing. So, the loss was too much. We stopped in 2017, two years after
the rehabilitation."

 

In Lafia, a staff member said CGGC worked outside the station but "if they
worked well, why are trains not working? Why is our service not effective.
They used old materials already kept in stores."

 

In Kafanchan, Kaduna State, connected to the Eastern Railway line through a
spur line, a staff said, "they (CGGC) worked here but only skeletal
rehabilitation. It was not rehabilitation really. They did some kilometres
and left some.

 

The staff said service that followed the rehabilitation lasted only for a
"short period"

 

The company did not work up to Kuru Junction and it also did not work on the
branch line from Kuru to Jos station, PREMIUM TIMES confirmed.

 

CGGC did not comment for this report. A text message was not replied and an
official ended a call abruptly as our reporter introduced himself and
explained he wanted to make inquiries on the Eastern rail line project.
Repeated calls were ignored.

 

No part of the section rehabilitated by CGGC is now used for train service.
And except between Port Harcourt and Aba before COVID-19, the Eastern
Railway line is not functioning despite several billions of naira pumped
into the project.

 

The frontline staff on the ground are only reporting to stations daily
without any real work, they said.

 

Seeking N5.5 billion in exit plan

 

As the N67.3 billion rehabilitation contract has failed, authorities are
planning a fresh procurement process and have asked the failed contractors
to submit exit plans.

 

PREMIUM TIMES had previously reported how Lingo, the contractor awarded the
Kuru-Maiduguri section, requested N9.2 billion, after being previously paid
at least N9.4 billion, despite underperforming on the contract. Government's
assessors have now rejected Lingo's claim and concluded the company instead
owed the country N1.6 billion for being overpaid, corroborating PREMIUM
TIMES' findings that the company made inaccurate claims about its work. The
company is also being investigated by the anti-graft agency, EFCC.

 

We have now accessed more records showing some details of the request made
by Eser in its exit plan. According to these records, Eser requested N5.5
billion to exit the contract. However, the railway corporation's valuation,
according to the records, is N1.3 billion.

 

The transport minister, Rotimi Amaechi, is yet to authorise payment to Eser,
sources close to him said.

 

CGGC, on its part, did not request any amount for exiting the contract,
according to the records we have seen. But curiously, the records show that
the railway corporation says its valuation is N3.6 billion.

 

While we accessed official records that showed what Lingo had previously
been paid before the exit plan request, PREMIUM TIMES could not determine
what was paid to Eser and CGGC.

 

An FOI request to the Office of the Accountant-General of the Federation was
referred to the transport ministry. The ministry did not respond.

 

The government has now gone far in plans to re-award the contract to fix the
Eastern Railway line but there are no certainties anyone will be made to
face any sanction for the regulatory failure and corporate fraud that
characterised the failed contracts.-Premium Times.

 

 

 

 

East Africa Could Become a Major Cannabis Export Hub

The East African Community could become a mass producer of medical cannabis
for export to fast-growing markets in the West.

 

This is after Rwanda on October 12 became the latest EAC partner state to
approve medical cannabis production for export, following closely in the
footsteps of Uganda.

 

Tanzania and Kenya, which produce the largest amounts of cannabis in the
region, are yet to legalise the commodity and so it is exported illegally.

 

Rwanda government officials said the decision to legalise the export of
medical marijuana was based on the revenue potential for the country.

 

"Some of these therapeutic crops can fetch around $10 million per hectare of
production. Flowers fetch about $300,000 from one hectare, so economically
it is a potentially good business for the country," Clare Akamanzi, CEO of
Rwanda Development Board said on Rwanda Broadcasting Agency.

 

 

The country has developed and approved the bloc's first framework for
cannabis export, and is now reviewing bids from interested investors.

 

However, this investment framework does not affect the legal status of
cannabis consumption in Rwanda, which remains a crime and attracts two years
in jail, while selling it is punishable by 20 years to life in prison.

 

"If you get a licence to grow these therapeutic crops in Rwanda, you will be
required to have a strong security programme that has to be approved by our
security organs," Ms Akamanzi said.

 

The security measures include using CCTV cameras, watchtowers, street lights
and human guards to ensure that the crop does not get to the local market.

 

Prior to the approval, Rwanda Development Board (RDB) invited companies to
bid for the development of "medical cannabis" in Rwanda last year with a
focus for the export.

 

 

Uganda

 

In the region, Uganda has the most advanced guidelines for the production
and export of medical cannabis, although it remains illegal in the country.

 

Uganda approved the guidelines for farming cannabis, requiring investors to
have a minimum capital of $5 million as capital and a bank guarantee of $1
million to get authorisation to farm and export cannabis.

 

The country also secured buyers in Germany and Canada, while the European
Union approved the country's cannabis exports in 2019.

 

The Ugandan government in 2018 spent about $264,000 on the importation of
quality cannabis seeds.

 

The country first registered a cannabis firm in 2012 -- Industrial Hemp
Uganda Ltd -- to grow and develop cannabis exports. More firms have joined
since then, including Israel marijuana company, Together Pharma, which has
an agreement with Industrial Hemp to invest in its production for clients in
Europe and America.

 

 

Last year in August, Ugandan parliamentarians tasked Prime Minister Ruhakana
Rugunda to explain the country's unclear position on growing marijuana.

 

PM Ruhakana promised to get back to parliament with a response, which is yet
to be done up to now.

 

Due to the illegality surrounding the farming and exportation of cannabis,
it is not clear how much revenue has been generated from the crop in
countries like Uganda.

 

Kenya

 

Kenya has had hushed debates for decades over whether to legalise marijuana.

 

In 2018, former Kibra MP the late Ken Okoth tabled a Marijuana Control Bill
in the National Assembly, for medical reasons. At the time, South Africa
became the third country in Africa to legalise cannabis after Lesotho and
Zimbabwe.

 

The Marijuana Control Bill 2018 sought to stop the decriminalisation of
handling of weed as well as amnesty for those prosecuted for using or
growing the plant. The proposed law also sought the proper regulation of the
marijuana farming sector, arguing that the law would cater for the growers,
traders and protecting minors once it was in place.

 

However, Okoth -- who was suffering from cancer and testified that marijuana
helped relieve his pain -- died in July 2019 before the law could be passed.

 

After his death, Narok Senator Ledama Olekina took up the campaign to
legalise cannabis for medical use.

 

"Why is it that we in Kenya are still stuck with the old way. If this drug
reduces pain in cancer patients, why don't we legalise it, what is so bad
about it, we only live once," said Mr Olekina in a video posted online.

 

But, majority of Kenyan politicians opposed its legalisation on the basis
that over 162,000 children in Kenya below the age of 18 years use cannabis
in school.

 

Tanzania

 

Although Tanzania has some of the strictest laws against cannabis and other
illicit drugs in the region, the country is estimated to be one of the
leading producers and exporters of cannabis products in Africa.

 

Researchers say that illicit drugs use is an increasing problem in the
region, particularly for the youth.

 

In a 2018 concept paper titled Drug Use As A Hindrance To Socio-Economic
Development In Rwanda, researcher Gonzague Isirabahenda said that illicit
drug use is one of the biggest challenges facing young people in Rwanda.

 

"A big number of these young people eventually get addicted posing a threat
to their own health and safety, while creating difficulties for their
families and the public," he said.

 

The UN estimates that around 38,000 tonnes of cannabis worth billions of
dollars are produced annually in Africa and sold in the black market.

 

Only four countries in Africa - Zambia, Lesotho, South Africa and Zimbabwe
-- officially permit cannabis for medical use.

 

In the EAC, Tanzanians consume more cannabis than any of their peers, with
up to 3.6 million Tanzanians using the drug in 2018, according to New
Frontier Data, a research firm based in the UK.

 

Kenya follows closely with 3.3 million cannabis users while Uganda has 2.6
million consumers, the report says.

 

In 2018, Africa recorded $37 million worth of cannabis consumption, which
represents a small fraction of the $345 billion global markets for cannabis,
according to New Frontier Data.

 

Prohibition Partners, a UK based research firm, said that the African
cannabis market could reach $7.1 billion by 2023.-East African.

 

 

 

Ethiopia: More French Companies Keen to Invest in Ethiopia in Various
Sectors - French Ambassador

Addis Ababa — Prominent French companies are showing interest to invest in
Ethiopia in the area of energy, logistics, and telecom sector, French
Ambassador to Ethiopia, Remi Marechaux said.

 

In an exclusive interview with ENA, Ambassador Remi Marechaux said the
number of French investors operating in Ethiopia has now reached 55 which is
twice the number some five years ago.

 

The companies are mainly engaged in energy including geothermal and hydro
business development as well as manufacturing sector which is important to
encourage import substitution, the Ambassador said.

 

French companies are also very much keen to invest in the field of
logistics, energy, transport and telecom sector in Ethiopia, he stated.

 

The Embassy is working to attract more investors to Ethiopia through various
mechanisms, the ambassador pointed out.

 

In this regard, he added that several events will be organized including an
event called 'Mission-Africa' which will happen in France on November.

 

 

A visit by the largest French investor union to Ethiopia, which is scheduled
for January next year, is also part of this initiative, ambassador Remi
Marechaux said.

 

The Ambassador also expressed his hope that more French companies would come
to Ethiopia as the potential for investment in the country is huge.

 

Regarding the bilateral relations, Remi pointed out that since the visit of
President Emmanuel Macron last year, the two countries have been enjoying a
strong relation which is accompanied by exchange of visits.

 

Noting French's keenness to continue working to strengthen the long standing
ties between the two nations in development and cultural cooperation among
other things, the ambassador expressed his government's readiness to play an
important role in the on-going reform in Ethiopia.

 

 

"When Emmanuel Macron visited Ethiopia he had several meetings with Prime
Minister Abiy and jointly decided on the priorities that French could engage
to support Ethiopia," he stated.

 

One of the priorities in this regard according to the ambassador is to
provide development support through the French Development Agency that
manages a portfolio of more 500 million euro project.

 

According to him, new projects for 2021 will also be developed soon to
support small and medium enterprise with a 70 million euro concessional
loan.

 

On the other hand, France has a long time cultural cooperation with Ethiopia
and intends to continue this in the coming years to work in the field of
patrimony, culture and heritages, Ambassador Remi said.

 

"Worldwide, France is the first destination of tourist and it's not because
of the wild life and beach, it is because of its preserved cultural heritage
and patrimony and Ethiopia in this field has major assets and France will be
pleased to cooperate with Ethiopia through exchange of expertise."-ENA.

 

 

 

Ethiopia: Chinese Companies Invests Over U.S.$1.1 Billion in Ethiopia

Chinese companies, with close to 1,564 projects that were either operational
or under implementation during the past two decades, are the top players in
Ethiopia's investment landscape both in terms of the number of projects and
the financial capital, an official at the Ethiopian Investment Commission
(EIC) said.

 

Speaking exclusively to Xinhua, Mekonen Hailu, Communications Director at
the EIC, said Chinese firms invest in various economic sectors in Ethiopia
and are committed to long term investments.

 

According to figures from the Ethiopian Investment Commission (EIC), Chinese
companies have executed about 1,564 investment projects that are presently
either operational or under implementation during the past two decades, from
1998 to March 2020.

 

>From the 1,564 Chinese investment projects in the nation, 987 of the
projects are in operational phase, 186 are under the implementation phase,
while the remaining 391 are in pre-implementation phase, it was noted.

 

Out of the 1,564 projects, some 1,133 projects are engaged in the
manufacturing sector, which is a major priority investment area by the
Ethiopian government, according to Mekonen.

 

Other major investment project areas for Chinese investors in Ethiopia are
said to be the construction and real estate development, hotel, agriculture,
tour operations and communications, education and mining sectors, it was
noted.

 

Figures from the EIC also showed that these projects registered an
accumulative investment capital worth over 43.1 billion Ethiopian birr (over
1.153 billion U.S. dollars).

 

"Ethiopia and China have very strong economic cooperation and ties. The two
countries have very dynamic economic relations. Thus, many Chinese companies
are currently investing in Ethiopia in various investment sectors, including
in the manufacturing, service and agriculture sectors," Mekonen told Xinhua.

 

 

"When we compare the Chinese investment with other countries, most of the
companies which are operating or working in Ethiopia are Chinese, so they
are playing a very important role for the development of the country," the
EIC Communications Director added.

 

According to Mekonen, amid the growing foreign direct investment from China
and elsewhere, the East African country is becoming a "very important"
destination for foreign investors.

 

"A number of companies are coming from Asia, North America, and also China
and others, including from Australia and Europe. Most of the investors are
coming from China. This is because Ethiopia has very huge investment
potential," Mekonen told Xinhua.

 

Courtesy to Ethiopia's positive investment climate, Mekonen cited a recent
report from the United Nations Conference on Trade and Development (UNCTAD),
which ranked Ethiopia first in the Eastern Africa region in terms of
attracting foreign direct investment, while the country is also placed fifth
in the African continent, next to South Africa, Egypt, Congo, and Morocco.

 

According to Mekonen, one of the main reasons why most foreign companies
prefer to invest in Ethiopia is that the country has "very conducive
economic factors."

 

Noting the East African country is one of the fastest-growing economies in
the world, Mekonen also stressed that "we have very favorable market
factors" coupled with the country's well-developed infrastructure, which is
very important to engage in investment projects."-Ethiopian Herald.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

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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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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opinions expressed and recommendations made are subject to change without
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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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