Major International Business Headlines Brief::: 24 October 2020

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Major International Business Headlines Brief::: 24 October 2020

 


 

 


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

 


 

 


 

 

ü  Britain and Japan sign post-Brexit trade deal

ü  Gap considers closing all its UK stores

ü  Purdue Pharma to plead guilty in $8bn opioid settlement

ü  PayPal allows Bitcoin and crypto spending

ü  U.S. judge denies new government bid to remove China's WeChat from U.S.
app stores

ü  U.S. may file antitrust charges against Facebook as soon as November:
newspaper

ü  Wall Street Week Ahead: More U.S. companies offer earnings guidance
despite pandemic

ü  AstraZeneca says its Oxford vaccine deal allows it to add up to 20% of
manufacturing costs

ü  China's purchases of U.S. farm goods at 71% of target under trade deal:
U.S.

ü  Namibia: Farmers Count Veld Fire Losses

ü  Namibia: Trade Ministry Visits Public Projects in Tsumeb

ü  AfCFTA Will Harmonize Investment Rules, Create Level-Playing Field, Says
Eca Director

ü  Nigeria: Civil Unrest Hurting Nigeria's Outlook, IMF Warns

ü  Africa: Continental Free Trade Critical to Improve Africa' Investment -
ECA

ü  Namibia: Youth Ministry Creates Employment in Biomass Sector

ü  Namibia: Union Wants N$14 Taxi Fare to Be Permanent

 

 

 

 

 

 

 

 

 

 

 


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

 


 

Britain and Japan sign post-Brexit trade deal

Britain and Japan have formally signed a trade agreement, marking the UK's
first big post-Brexit deal.

 

The deal, unveiled last month, means nearly all its exports to Japan will be
tariff free while removing British tariffs on Japanese cars by 2026.

 

UK International Trade Secretary Liz Truss called it a "ground-breaking,
British-shaped deal".

 

But critics have said it will boost UK GDP by only 0.07%, a fraction of the
trade that could be lost with the EU.

 

The two countries had reached a broad agreement in September, and the deal
is expected to boost trade between the UK and Japan by about £15bn.

 

The deal, which was negotiated over the summer, will take effect from 1
January 2021.

 

But some experts said it was a missed opportunity between the UK and its
11th biggest trading partner.

 

Dr Minako Morita-Jaeger, international trade policy consultant and fellow of
the UK Trade Policy Observatory at the University of Sussex, said: "Given
that Japanese FDI (Foreign Direct Investment) has been playing an important
role in the UK economy and retaining its existing investment in post-Brexit
is crucial, the UK government should have shown a strong commitment to
Japanese investment by including a comprehensive investment chapter
encompassing investment protection and dispute settlement."

 

She added that Japan was the largest investor abroad in the world,
accounting for 14% of the world total in 2018.

 

The new deal is very similar to the existing EU-Japan deal, but has an extra
chapter on digital trade.

 

"It used to be said that an independent UK would not be able to strike major
trade deals or they would take years to conclude," said Ms Truss at a joint
press announcement with Japan's Foreign Minister, Toshimitsu Motegi.

 

Mr Motegi said a deal between the UK and the EU was still crucial for
Japanese business, particularly carmakers such as Nissan and Toyota who use
parts from across Europe in vehicles they assemble in the UK.

 

"It is of paramount importance that the supply chain between the UK and the
EU is maintained even after the UK's withdrawal," he said.--BBC

 

 

 

 

Gap considers closing all its UK stores

US retailer Gap could close all of its own UK stores, putting thousands of
jobs at risk, as it mulls shifting its operations to franchise-only in
Europe.

 

Shops in the UK, France, Ireland and Italy could shut next summer, along
with its UK-based European distribution centre, the retailer said.

 

Gap would not disclose the number of UK stores it has, nor the size of its
workforce.

 

Falling sales in recent years have been exacerbated by coronavirus
disruption.

 

The retailer reported a £740m loss in the three months to May.

 

Instead of operating its own stores, Gap said it was looking at whether to
move to a franchise model. The retailer had 129 Gap-branded stores in Europe
at the end of July, and about 400 franchise stores.

 

"As we conduct the review, we will look at transferring elements of the
business to interested third parties as part of a proposed partnership model
expansion," said Mark Breitbard, head of Gap brand global.

 

A Gap spokesperson added it was also looking at "alternative ways to operate
the European e-commerce business." The spokesperson declined to give a
breakdown of the number of stores and employees Gap has by country.

 

Clothing retailers have been hit hard by the coronavirus crisis. As well as
temporary shop closures during lockdown, they have had to contend with lower
footfall and an accelerated shift to online shopping which has been
capitalised on by specialists such as Asos and Boohoo.

 

Many retailers have struggled to survive amid the crisis, according to the
Centre for Retail Research. These include:

 

Edinburgh Woollen Mill, which owns Jaegar and Austin Reed has filed notice
to appoint administrators, putting 21,000 jobs at risk.

Debenhams, which said in August it would cut thousands of jobs, is up for
sale and trying to find a new owner.

The DW Sports chain which entered administration in August threatening 1,700
jobs.

Scots-based clothing retailer M&Co which has gone into administration and
said it would cut nearly 400 jobs in August.

Even before the pandemic, Gap was fighting to revitalise itself after losing
younger shoppers to cheaper fast fashion brands such as Zara, H&M and
Forever 21 over a number of years.

 

Earlier this year, Gap said it planned to close over 225 unprofitable Gap
and Banana Republic stores globally as a part of a restructuring plan.--BBC

 

 

 

Purdue Pharma to plead guilty in $8bn opioid settlement

The maker of OxyContin painkillers has reached an $8.3bn (£6.3bn) settlement
and agreed to plead guilty to criminal charges to resolve a probe of its
role in fuelling America's opioid crisis.

 

Purdue Pharma will admit to enabling the supply of drugs "without legitimate
medical purpose".

 

The deal with US Department of Justice resolves some of the most serious
claims against the firm.

 

But it still faces thousands of cases brought by states and families.

 

Purdue called the deal an "essential" step to wider resolution of the
matter.

 

"Purdue deeply regrets and accepts responsibility for the misconduct
detailed by the Department of Justice," said Steve Miller, who joined
Purdue's board as chairman in July 2018, shortly before the firm sought
protection from the litigation by filing for bankruptcy.

 

OxyContin maker Purdue Pharma files for bankruptcy

Is this America's most hated family?

The settlement with the DoJ must receive court approval to go forward.

 

The judge overseeing the bankruptcy case will be weighing how it will affect
negotiations with other states and cities that have filed lawsuits against
Purdue, many of which have already objected to the terms.

 

They say it lets the company and its owners, the Sackler family, off too
lightly for their roles creating a crisis that has claimed the lives of more
than 400,000 Americans since 1999.

 

"DoJ failed," said Massachusetts attorney general Maura Healey after the
settlement was announced.

 

"Justice in this case requires exposing the truth and holding the
perpetrators accountable, not rushing a settlement to beat an election. I am
not done with Purdue and the Sacklers, and I will never sell out the
families who have been calling for justice for so long."

 

 

Justice Department officials defended the deal as "significant", noting that
the department would forego much of the $8bn in fines, allowing the money to
be directed to other creditors in the bankruptcy case - such as the
communities ravaged by opioid abuse that have sued the company.

 

They said they continue to review possible criminal charges against
executives at the company and the Sackler family.

 

"This resolution does not provide anybody with a pass on the criminal side,"
Rachel Honig, federal prosecutor for New Jersey said at a press conference.

 

What did Purdue do?

The settlement follows years of investigation into claims that Purdue and
other drug-makers encouraged over-prescription of opioids, leading to
overdoses and addiction which strained public health and policing resources
in cities and towns across the US.

 

Under the terms of the settlement, Purdue will admit to conspiring to
defraud the US and violating anti-kickback laws in its distribution of the
addictive painkillers.

 

Those included payments the firm made to healthcare companies and doctors to
encourage prescribing the drugs, which were ultimately paid for by public
health programmes.

 

What will Purdue actually pay?

Purdue will pay $225m to the Justice Department and a further $1.7bn towards
addressing claims made in other lawsuits.

 

The settlement also includes a $3.54bn criminal fine and $2.8bn civil
penalty, which will compete with other claims in bankruptcy court - such as
those made by communities affected by the opioid crisis. It is unclear how
much of that sum will actually be collected.

 

The Sackler family has also agreed to pay $225m and give up ownership of the
firm.

 

The company would reorganise as a new company run by a trust for the "public
benefit". It would continue to produce OxyContin and other drugs aimed at
treating addiction, with the government likely having a significant role.

 

Purdue backed that idea in an earlier settlement proposal but it is opposed
by many states, including Massachusetts.

 

What about the other claims?

Along with the reorganisation as a "public benefit" firm, Purdue has
proposed to settle the wider claims against it with a deal worth more than
$10bn.

 

But critics of the plan want to see the company sold and greater effort made
to recover money from the Sackler family. Court documents revealed last year
that the family had transferred more than $10bn out of the company between
2008 and 2017, as scrutiny of its conduct increased.

 

The Sackler family, which would commit $3bn to the wider settlement, said in
a statement that members that had served on the Purdue board of directors
had acted "ethically and lawfully" and that "all financial distributions
were proper".

 

"We reached today's agreement in order to facilitate a global resolution
that directs substantial funding to communities in need, rather than to
years of legal proceedings," the family said.--BBC

 

 

 

 

PayPal allows Bitcoin and crypto spending

PayPal has entered the cryptocurrency market, announcing that its customers
will be able to buy and sell Bitcoin and other virtual currencies using
their PayPal accounts.

 

Those virtual coins could then be used to buy things from the 26 million
sellers which accept PayPal, it said.

 

PayPal plans to roll out buying options in the US over the next few weeks,
with the full rollout due early next year.

 

Bitcoin prices rose alongside the news, breaking the $12,000 (£9,170) mark.

 

The other cryptocurrencies to be added first will be Ethereum, Litecoin, and
Bitcoin Cash (a spin-off from Bitcoin).

 

All could be stored "directly within the PayPal digital wallet", the company
said.

 

'Penny stocks'

Cryptocurrencies have remained a niche payment method, partly down to the
rapid change in prices they can experience compared with traditional
state-backed currencies. That has made them popular among some types of
investors.

 

PayPal said it was aiming "to increase consumer understanding and adoption
of cryptocurrency".

 

"As part of this offering, PayPal will provide account holders with
educational content to help them understand the cryptocurrency ecosystem,"
it said.

 

But David Gerard, author of Attack of the 50 Foot Blockchain and the
forthcoming Libra Shrugged: How Facebook Tried to Take Over the Money, said
PayPal was describing "a crypto day-trading market".

 

"I'm at a loss as to who the market is for PayPal as a crypto-exchange," he
said.

 

He likened it to playing the stock market, but with Bitcoin - whose volatile
and less well-regulated nature was like "gambling on penny stocks".

 

"Have a flutter, drop $10 on it, you'll learn things you wouldn't learn any
other way - but you are gambling," he warned.

 

He said there were "a lot of big players who manipulate the price", and
ordinary people risked losing their money.

 

"I don't expect much of a market for this beyond existing crypto holders...
I'm baffled that PayPal would offer this, and it's not clear what they're
trying to do here," he said.

 

"There must be someone at PayPal who is very interested in
cryptocurrencies," he added.

 

Paying with crypto

Other payment firms, such as Square's Cash app and Revolut, have already
offered cryptocurrencies for sale. But PayPal has one of the largest
merchant networks in the world.

 

When it comes to using the virtual coins, PayPal will convert the
cryptocurrency into the relevant national currency, so the company being
paid will never receive the virtual coins - just the correct amount of
pounds or dollars.

 

PayPal said the system meant there would be "certainty of value and no
incremental fees".

 

But using Bitcoin to pay at ordinary merchants is not due to launch until
"early 2021".

 

Cryptocurrencies' volatile prices - along with their historical use as a
less traceable payment method for illegal purposes - have led to numerous
calls for them to be regulated.

 

PayPal has been granted permission for its operation from the New York State
Department of Financial Services, in the form of a conditional "Bitlicence"
- the first such licence granted.

 

To begin with, the service will work with an existing cryptocurrency
provider in the US, the Paxos Trust Company.

 

But it is not PayPal's first venture into the area.

 

The firm was once a partner in Facebook's digital currency Libra, but became
the first to pull out of the alliance, just a few months after it was
announced.

 

The scheme was controversial, attracting attention from financial regulators
in several countries.

 

Earlier this year, Facebook was reported to be "rethinking" the idea amid
the resistance.--BBC

 

 

 

 

U.S. judge denies new government bid to remove China's WeChat from U.S. app
stores

(Reuters) - A U.S. judge in San Francisco on Friday rejected a Justice
Department request to reverse a decision that allowed Apple Inc and Alphabet
Inc’s Google to continue to offer Chinese-owned WeChat for download in U.S.
app stores.

 

U.S. Magistrate Judge Laurel Beeler said the government’s new evidence did
not change her opinion about the Tencent app. As it has with Chinese video
app TikTok, the Justice Department has argued WeChat threatens national
security.

 

WeChat has an average of 19 million daily active users in the United States.
It is popular among Chinese students, Americans living in China and some
Americans who have personal or business relationships in China.

 

WeChat is an all-in-one mobile app that combines services similar to
Facebook, WhatsApp, Instagram and Venmo. The app is an essential part of
daily life for many in China and boasts more than 1 billion users.

 

The Justice Department has appealed Beeler’s decision permitting the
continued use of the Chinese mobile app to the Ninth Circuit U.S. Court of
Appeals, but no ruling is likely before December.

 

In a suit brought by WeChat users, Beeler last month blocked a U.S. Commerce
Department order set to take effect on Sept. 20 that would have required the
app to be removed from U.S. app stores.

 

The Commerce Department order would also bar other U.S. transactions with
WeChat, potentially making the app unusable in the United States.

 

“The record does not support the conclusion that the government has
‘narrowly tailored’ the prohibited transactions to protect its
national-security interests,” Beeler wrote on Friday.

 

She said the evidence “supports the conclusion that the restrictions ‘burden
substantially more speech than is necessary to further the government’s
legitimate interests.’”

 

WeChat users argued the government sought “an unprecedented ban of an entire
medium of communication” and offered only “speculation” of harm from
Americans’ use of WeChat.

 

In a similar case, a U.S. appeals court agreed to fast-track a government
appeal of a ruling blocking the government from banning new downloads from
U.S. app stores of Chinese-owned short video-sharing app TikTok.

 

 

 

 

U.S. may file antitrust charges against Facebook as soon as November:
newspaper

(Reuters) - Facebook Inc may face U.S. anti-trust charges as soon as
November, the Washington Post reported on Friday, citing four people
familiar with the matter.

 

The Federal Trade Commission met privately on Thursday to discuss a probe
while state attorneys general under the leadership of New York’s Letitia
James have been scrutinizing the company for potential threats to
competition, the newspaper reported.

 

The timeline could still change, the newspaper said, adding that state
attorneys general are in the late stages of preparing their complaint.

 

Facebook, the FTC and the office of the New York Attorney General were not
immediately available for comment late on Friday.

 

Facebook said in August that Chief Executive Mark Zuckerberg was interviewed
at an FTC investigative hearing as part of the government’s antitrust probe
into the company.

 

Facebook faced similar probes by the Justice Department and by state
attorneys general, and has said previously the investigations were looking
at prior acquisitions and business practices involving “social networking or
social media services, digital advertising, and/or mobile or online
applications.”

 

In July 2019, Facebook agreed to pay a record-breaking $5 billion fine to
resolve a separate FTC probe into the company’s privacy practices.

 

 

 

 

Wall Street Week Ahead: More U.S. companies offer earnings guidance despite
pandemic

NEW YORK (Reuters) - With earnings season in full swing, more companies are
again offering earnings guidance, signaling to investors that some
corporations are adapting to uncertainty about a global pandemic that may
extend deep into next year.

 

Overall, 73 companies in the S&P 500 index have offered guidance this
quarter so far, up from last quarter’s 65 pre-announcements but well below
the 170 companies that typically offer guidance, according to Refinitiv
data. The companies offering guidance are giving the most bullish
expectations in Refinitiv data going back to 1997.

 

“If a company is able to offer guidance it shows that they’re able to have a
better idea of what’s coming down the road,” said Charlie Ripley, senior
investment strategist at Allianz Investment Management.

 

The market has been buffeted by cross-currents related to the looming Nov. 3
U.S. presidential election, drawn out fiscal stimulus talks in Washington
and a resurgent pandemic. Still, investors appear more hopeful in recent
months.

 

Fifty percent of high net worth U.S. investors surveyed by UBS Global Wealth
Management voiced optimism on the economy, up from 41% three months prior,
with 55% optimistic on stocks, up from 44%. The S&P 500 index is up nearly
7% year to date, including a 2.2% gain since the start of October.

 

So far this quarter, shares of AT&T Inc T.N, Verizon Communications Inc VZ.N
and Quest Diagnostics Inc DGX.N have rallied after each company gave
investors updated guidance on how they expect to fare over the next fiscal
year.

 

“It’s not surprising we’ve had so many beats this quarter because we entered
the season with very little guidance,” causing analysts to slash their
estimates, said Katie Nixon, chief investment officer at Northern Trust
Wealth Management.

 

“Now we’re seeing how companies expect to be able to navigate through the
challenges of the year ahead,” she said.

 

Investors next week will wade through the busiest period of earnings season
so far, with companies ranging from Beyond Meat Inc BYND.O and Microsoft
Corp MSFT.O to Pinterest Inc PINS.N scheduled to report results.

 

Microsoft, in particular, should outperform its conservative guidance thanks
to strong PC shipments and growth of its Azure cloud computing platform,
said J. Derrick Wood, an analyst at Cowen.

 

“The set-up feels more compelling as the bar was reset last quarter and as
macroconditions are improving,” he said.

 

Nearly 86% of companies that have reported earnings so far have beat analyst
expectations, a rate 20 percentage points higher than the average beat rate
since 1994, according to Refinitiv data.

 

Still, investors like Nixon say they are looking past beat rates and
focusing on companies that can improve or maintain measures such as
refinancing debt, raising cash, and controlling costs regardless of the
pandemic’s trajectory or a breakthrough in stimulus talks.

 

The White House and congressional Democrats remain in negotiations for
another coronavirus relief bill, though Senate Majority Leader Mitch
McConnell has signaled he may not bring the bill to the floor until after
the election.

 

Companies in the S&P 500 index are likely to post average earnings growth
rates of up to 25% next year as they bounce off of prior-year comparisons
during the worst of the economic lockdowns, said Steve Chiavarone, a
portfolio manager at Federated Hermes.

 

Companies that can offer positive guidance despite the unknowns are also
more likely to weather higher corporate taxes expected if Democratic
challenger Joe Biden beats President Donald Trump and Democrats take the
U.S. Senate, he said.

 

“We’re seeing a lot of positive metrics that show that these companies may
be able to easily absorb any cut to earnings,” he said.

 

 

 

 

AstraZeneca says its Oxford vaccine deal allows it to add up to 20% of
manufacturing costs

(Reuters) - AstraZeneca Plc AZN.L said on Friday its coronavirus vaccine
deal with Oxford University will allow it to add up to 20% of manufacturing
costs to cover additional expenses required to be incurred by the British
drugmaker.

 

“In addition to the manufacturing costs, the company is incurring costs in
excess of $1 billion globally that include clinical development, regulatory,
distribution, pharmacovigilance and other expenses”, an AstraZeneca
spokesman said in a statement.

 

“To cover these additional expenses, the company will add an amount
equivalent to a maximum of 20% of the manufacturing costs to ensure there is
no material impact on its finances this year while continuing efforts to
provide the vaccine at no profit during the pandemic,” the statement added.

 

AstraZeneca has previously signed multiple supply-and-manufacture deals for
more than 3 billion doses globally.

 

These agreements are with companies and governments as the company gets
closer to reporting early results of a late-stage clinical trial. Developed
by the University of Oxford and licensed to AstraZeneca in April, the
vaccine is expected to be one of the first from big pharma to secure
regulatory approval.

 

The company had said earlier it has created multiple supply chains to ensure
that access to its vaccine is timely, broad and equitable for high- and
low-income countries alike.

 

Pricing and supply of experimental COVID-19 vaccines have been widely
debated as richer countries pump billions of dollars into funding, and
AstraZeneca has also been granted protection from future liability claims.

 

Separately, AstraZeneca resumed the U.S. trial of its experimental COVID-19
vaccine after approval by regulators, the company said on Friday.

 

 

 

 

China's purchases of U.S. farm goods at 71% of target under trade deal: U.S.

WASHINGTON (Reuters) - China has substantially increased purchases of U.S.
farm goods and implemented 50 of 57 technical commitments aimed at lowering
structural barriers to U.S. imports since the two nations signed a trade
deal in January, the U.S. government said on Friday.

 

In a joint statement, the U.S. Trade Representative’s (USTR) office and the
U.S. Department of Agriculture (USDA) said China had bought over $23 billion
in U.S. agricultural goods to date, or about 71% of the target set under the
so-called Phase 1 deal.

 

“Since the Agreement entered into force eight months ago, we have seen
remarkable improvements in our agricultural trade relationship with China,
which will benefit our farmers and ranchers for years to come,” U.S. Trade
Representative Robert Lighthizer said in a statement.

 

The deal defused a bitter trade war between the world’s two largest
economies, but disputes over human rights, the COVID-19 crisis and
technology have strained ties between Washington and Beijing, raising doubts
about the prospects for deepening the agreement in a second phase.

 

Agriculture is one of the four areas where China pledged to increase its
purchases of U.S. goods and services. Many experts question whether China
will meet its overall targets this year given lockdowns imposed earlier this
year to contain the virus.

 

The report showed outstanding sales of U.S. corn to China were at an
all-time high of 8.7 million tons, while U.S. soybeans sales for marketing
year 2021 to China were at double the levels seen in 2017.

 

U.S. exports of sorghum to China from January to August 2020 totaled $617
million, up from $561 million for the same period in 2017, it said.

 

U.S. pork exports to China hit an all-time record in just the first five
months of 2020, and U.S. beef and beef products exports to China through
August 2020 are already more than triple the total for 2017, it said.

 

In addition to these products, USDA expects 2020 sales to China to hit
record or near-record levels for other U.S. agricultural products including
pet food, alfalfa hay, pecans, peanuts, and prepared foods.

 

 

 

Namibia: Farmers Count Veld Fire Losses

With swathes of grassland destroyed and hundreds of livestock burned to
death, wildfires have brought misery and anguish to communal farmers in the
Omaheke region.

 

Several farmers in the villages of Okonjoka, Omitimire and Otjomunguindi in
Aminuis constituency and those in the Nina area of Okorukambe constituency
said they have suffered severe losses following a series of devastating veld
fires last week. Aminuis constituency councillor Peter Kazongominja
yesterday said initial estimates indicate that approximately 45 000 hectares
of grazing land have been destroyed, while over 100 goats and sheep in the
constituency have succumbed to veld fires.

 

Kazongominja said farmers are still in the process of determining the number
of large livestock and infrastructural losses.

 

Hijambaari Kozozi, a farmer at Okonjama village, told New Era that he lost
95 goats and sheep to the fire.

 

 

"My wife and I have lost our entire livelihood. We are still in shock. We
thought we were recovering well after the drought, but God has other plans
for us," he said.

 

"We don't have insurance. I am estimating the value of my loss at N$270 000.
I appeal to those who have suffered similar damages to contact me through
the office of the councillor."

 

A local agricultural magazine, AfriForum has reported that the fire at Nina
that caused extensive damage to about 12 farms in the area was brought under
control earlier Thursday.

 

The publication reported that an entire farm burned to ashes, while another
farmer has one camp with grass left while there are farmers who lost half
their pasture.

 

Namibian Charcoal Association's chairperson Michael Degé and his workers are
some of those that came to help put out the fire.

 

''At this point it doesn't seem to be a runaway fire. The wind changes
short-short of direction and just as we are afraid, we see that the fire can
extinguish itself this way possible. It's great to see how the people on the
scene know what they are doing," he was quoted as saying.-New Era.

 

 

 

 

Namibia: Trade Ministry Visits Public Projects in Tsumeb

Hon Verna Sinimbo, the Deputy Minister of Industrialisation and Trade paid a
courtesy visit to Tsumeb to familiarize herself with the progress made on
the ongoing construction of the Tsumeb Industrial Park, to meet the Sida
!Hanab Community and to visit the Tsumeb Open Market.

 

During the visit which took place on 19 October, Sinimbo encouraged those
who trade informally to formalise their businesses and register with
relevant institutions, like the Businesses and Intellectual Property
Authority (BIPA) in order to enjoy the privileges and benefits that comes
with legalising a business.

 

In attendance were Mayor Mathews Hangula of the Municipality of Tsumeb,
Lebbius Tobias, Councillor for Tsumeb and other leaders of the local and
regional authorities.-Namibia Economist.

 

 

 

AfCFTA Will Harmonize Investment Rules, Create Level-Playing Field, Says Eca
Director

Addis Ababa — The African Continental Free Trade Area is going to harmonize
investment rules between its member countries and the rest of the world in
order to create a level playing field after it starts trading next year,
said Stephen Karingi of the Economic Commission for Africa.

 

The investment protocol to replace the rules would help to attract foreign
direct investors to come and establish businesses in Africa, Mr. Karingi,
Director for Regional Integration at the ECA, made the statement recently at
a Nordic- African Business Webcast.

 

According to him, there are currently multiple bilateral treaties between
African countries and bilateral investment treaties between some African
countries and the rest of the world but negotiations to harmonize them would
start after trading begins on 1 Jan.2021 and be concluded very quickly.

 

"The AfCFTA is a very deep and broad agreement that is not just focusing on
trade in goods and trade in services but it is looking at those issues that
would make this regional integration functional through competition policy,
intellectual property rights, investment protocol and also e-commerce," he
said.

 

The agreement entered into force on 30 May 2018, having been ratified by the
required 22 countries. Currently, 54 countries have signed, and 30 countries
have ratified the AfCFTA. The AfCFTA provides the opportunity for Africa to
create the world's largest free trade area, with the potential to unite more
than 1.2 billion people in a $2.5 trillion economic bloc and usher in a new
era of development.

 

Apart from exchanging views on AfCFTA, participants at the forum who
included business persons, experts, politicians and policymakers from Africa
and the Nordic countries discussed issues ranging from agribusiness in
Africa, strengthening the business climate on the continent and how
businesses will operate in a post-COVID-19 environment.-UNECA.

 

 

 

 

Nigeria: Civil Unrest Hurting Nigeria's Outlook, IMF Warns

The International Monetary Fund (IMF) yesterday expressed concern about the
civil unrest in Lagos and some other parts of Nigeria, following the
shooting of some #EndSARS protesters Lekki Tollgate on Tuesday night.

 

Responding to a THISDAY question during a media briefing on the 'Africa
Regional Economic Outlook,' at the ongoing Annual Meetings of the IMF/World
Bank in Washington DC, the Director of IMF's African Department, Mr. Abebe
Aemro Selassie, said the civil unrest in Lagos, which contributes
significantly to Nigeria's overall Gross Domestic Product (GDP), could have
a negative consequence on the economy.

 

He called for timely resolution of the crisis to prevent the economy, which
is still reeling from the effects of the COVID-19 pandemic, from slipping
further into a tailspin.

 

Selassie said: "Are we concerned? We are always concerned when we see
protests, particularly ones that are difficult like the one in Nigeria at
the moment, but also anywhere in the world, and we hope that there would be
a satisfactory resolution there."

 

Speaking on the support the multilateral institution granted the West
African country earlier this year, he said it was to cushion the effects of
the pandemic and the economic crisis that has unfolded due to COVID-19.

 

According to him, the pandemic led to a massive decline in tax revenues in
Nigeria, even when there was a compelling need for governments to spend
resources on health, education and other critical sectors of the economy.

 

 

"And I think the government has committed to both providing us with an
explanation of what the resources have been used for and audits of how it
has been used in due course and we look forward to that in the coming
months.

 

"Economic conditions in Nigeria for the last four years have been very
difficult and the decline in oil prices in 2015/2016 and growth has been
anaemic and there has been a lot of pressure on standards of living so there
has been dislocation and as always when you have this kind of economic
difficulty social protests are not uncommon," he added.

 

He called for reforms as a lasting solution to averting future unrests.

 

He said: "That is why it is on the record we have been saying how critical
it is to get all of the policies to facilitate stronger economic growth in
Nigeria and for the government to do more to raise revenues from non-oil
resources to be able to invest in health and education which will allow
people to be more successful and getting jobs but also improve the economy's
potential.

 

 

"So, the development agenda of Nigeria has to be more vigorous so that
millions of jobs that the country needs can be created and I think that
agenda remains very pressing.

 

"On growth projections in Nigeria, these protests happened just after the
period we accumulated the data for making the growth projections of this
economic outlook, and much would depend really on how these protests evolve
because Lagos is, of course, a very important economic hub and contributes
quite a bit of economic activities to overall Nigeria activities. So, if
this persists and are showing a significant effect on economic data, we
would internalise them in due course."

 

He urged Nigeria and other African countries to ensure judicious utilisation
of loans in order to avert plunging into a debt crisis.

 

"Overall, the debt issue, in terms of the money we have been providing this
year, the core function of IMF is that when countries no longer have access
to the usual form of financing that they have, development financing or
private market financing, the IMF steps forward.

 

"That is why the IMF exists to help countries and sovereigns in distress
while they are correcting their economies to go back to normal forms of
financing. So, financing we have been providing is critical and an important
lifeline. What we are asking countries to do is show that these resources
are being used to save lives and livelihoods.

 

"Overall, the region is projected to contract by three per cent in 2020, the
worst outlook on record. Tourism-dependent economies faced the largest
impact, while commodity-exporting countries have also been hit hard. Growth
in more diversified economies will slow significantly, but in many cases
will still be positive in 2020.

 

"Looking forward, regional growth is forecast at 3.1 per cent in 2021. This
is a smaller expansion than expected in much of the rest of the world,
partly reflecting Sub-Saharan Africa's relatively limited policy space
within which to sustain a fiscal expansion. Key drivers of next year's
growth will include an improvement in exports and commodity prices as the
world economy recovers, along with a recovery in both private consumption
and investment.

 

"The current outlook is subject to greater-than-usual uncertainty with
regard to the persistence of the COVID-19 shock, the availability of
external financial support, and the development of an effective, affordable,
and trusted vaccine."

 

He added that Sub-Saharan Africa could face a financing gap that could
necessitate an additional fiscal adjustment in the continent.

 

"If private financial inflows remain below their pre-crisis levels and even
taking into account existing commitments from international financial
institutions and official bilateral creditors Sub-Saharan Africa could face
a gap in the order of $290 billion over 2020 to 2023.

 

"This is important, as a higher financing gap could force countries to adopt
a more abrupt fiscal adjustment, which in turn would result in a weaker
recovery.

 

"Countries must also play their part, governance reforms will not only
improve trust in the rule of law and improve business conditions, but also
encourage external support.

 

"Despite the lingering effects of the crisis, the potential of the region
and the resourcefulness of its people remain intact, and tapping this
potential will be vital if the region is to find its way back to a path of
sustainable and inclusive development. In this context, the need for
transformative reforms to promote resilience, lift medium-term growth and
create the millions of jobs needed to absorb new entrants into labour
markets is more urgent than ever. Priority reforms are in the areas of
revenue mobilisation, digitalisation, trade integration, competition,
transparency and governance, and climate change mitigation," he stated.-This
Day.

 

 

 

 

Africa: Continental Free Trade Critical to Improve Africa' Investment - ECA

Addis Ababa — The African Continental Free Trade Area (AfCFTA) is a game
changer for investment on the continent which in recent years has seen
foreign direct investment (FDI) continuing to weaken, Regional Integration
and Trade Division Director at the Economic Commission of Africa (ECA),
Stephen Karingi underscored.

 

The Director made the remark on Thursday while presenting for discussion
reports by the ECA on investment issues during the Annual Investment Meeting
(AIM2020) Africa regional focused session advancing ideas for action on the
AfCFTA.

 

"African economies continue to punch below their weight in terms of
attracting FDI. Moreover, FDI to the continent continues to weaken," the
director stated.

 

 

While FDI inflows reached 56.6 billion USD in 2015, they had fallen to less
than 42 billion USD by 2017; he said and added "This figure represents less
than three percent of the global investment flows".

 

According to the director, many African economies remain dependent on
exports of primary commodities which are particularly prone to shocks.

 

FDI is a catalyst of economic growth, structural transformation and regional
integration on the continent Karingi pointed out.

 

In this regard, African economies need FDI as a means to build productive
assets, a vector of positive spill over-effects and an additional and
relatively stable source of development finance, said the director.

 

African countries can surmount a number of policy and regulatory challenges
through the AfCFTA to attract greater investment, for instance by linking
individual chapters of the agreement and achieving coherence on the various
policy areas they cover; and by harmonizing heterogeneous approaches to
investment regulation in Africa, he added.

 

 

The director further said African regional integration has gained momentum
with the current efforts to establish the AfCFTA.

 

"Intra-African investments in particular can be conducive to structural
transformation and regional integration in that they can underpin African
trade and its industrial contents, enable economies of scale and can
facilitate entry into regional and global value chains," he noted.

 

AfCFTA is a continental trade block that will cover a market of 1.2 billion
people and a gross domestic product (GDP) of 2.5 trillion USD, across all 55
member States of the African Union.

 

In terms of numbers of participating countries, AfCFTA will be the world's
largest free trade area since the formation of the World Trade Organization,
according to ECA.-ENA.

 

 

 

Namibia: Youth Ministry Creates Employment in Biomass Sector

FIFTY-FIVE youths are set to benefit from a pilot project by the Ministry of
Sport, Youth and National Service on the production of charcoal.

 

The ministry, together with the National Youth Service (NYS) and National
Youth Council (NYC), identified opportunities that contribute to youth
self-employment in the agriculture sector.

 

The pilot phase will create employment opportunities for 55 youths who will
undergo two types of training, namely civic training to instil discipline, a
sense of responsibility and ownership as well as harvesting charcoal and
charcoal making.

 

 

The project will be launched on 31 October at Gemsbokpan farm, Grootfontein,
Otjozondjupa region.

 

To guide their efforts, the ministry collaborated with De-bushing Advisory
Service (DAS), a capacity development division of the Namibia Biomass
Industry Group (N-BiG).

 

Financial support for the concept development was provided by the German
government, through the Bush Control and Biomass Utilisation Project
implemented by GIZ in collaboration with Ministry of Environment, Forestry
and Tourism.

 

Deputy minister of youth, Emma Kantema-Gaomas, said commercialising the
biomass resource for charcoal production provides great opportunities to the
Namibian youth.

 

She added that the charcoal production project will speak directly to youth
empowerment, employment creation objectives and the diversification of
economic activities.

 

 

"The concept could not have come at a better time as the youth is the most
affected by the economic crisis of job losses due to the Covid-19 pandemic,
in a year like 2020. Every step we take towards self-sufficiency as a nation
is everything that we need," she said.

 

Chief executive officer of N-BiG, Progress Kashandula, said a vibrant
bush-biomass sector will provide room for unskilled labour as well as for
formal qualifications.

 

"This concept is an immediate solution to youth unemployment. It provides a
clear operational plan for sustainable charcoal production including
capacity building, equipment, marketing, permitting process, and other
resource needs," he said.

 

Kashandula further said young people should be trained in sustainable
charcoal production to open up their own SMEs and expand employment
opportunities for other Namibian youths.

 

Team leader of the GIZ Bush Control and Biomass Utilisation Project,
Johannes Laufs, welcomed the initiative by the ministry to open up the
economic opportunities of the bush-biomass sector to the youth, especially
those living in rural areas.

 

 

"Our objective is to upscale sustainable bush control and biomass
utilisation, restoring degraded land and creating income opportunities. Our
assistance is aimed at strengthening the capacities of relevant government
authorities and to develop sustainable bush-based value chains," Laufs said.

 

Since 2016, the Department De-bushing Advisory Services has been involved in
the bush-biomass sector with an emphasis on strengthening capacities of
individual farmers, government officials, and the industry at large to
promote sustainable bush control and biomass utilisation.

 

The Namibian biomass sector has almost doubled its employment from 6 000 to
11 000 in the past five years and put in place important measures ensuring
environmental and social sustainability, such as internationally recognised
sustainability certification standards.

 

The goal is to further grow and modernise the sector.

 

Charcoal production has become a major contributor to agricultural exports.
In 2019 charcoal constituted 17% of total agricultural exports.-Namibian.

 

 

 

Namibia: Union Wants N$14 Taxi Fare to Be Permanent

The Namibia Transport and Taxi Union (NTTU) has threatened to start charging
customers double if the taxi fare is reset at N$12.

 

Taxi and bus fares were increased by 15% in May to cushion operators against
the negative effects of Covid-19 regulations on their income as they were
forced to carry a limited number of passengers at a time.

 

However, president Hage Geingob on Wednesday lifted the restrictions on the
number of passengers in public, private and group tour vehicles.

 

This means vehicle occupancy can revert to the original manufacturers'
specifications, and drivers, operators and passengers are required to
continue taking the necessary precautions.

 

 

Union leader Werner Januarie said according to the Roads Authority Act,
customers should be charged double if they are not dropped off at a taxi
rank.

 

Januarie explained that a taxi rank is a place where taxis wait for
customers while the stop is a designated area where a passenger can be
dropped off or picked up, however, there are limited structures of this
nature in the city.

 

He added that if the taxi fare is returned to N$12, then operators would
retaliate in line with the law which will be a punishment to the customers.

 

The unionist further said the current taxi fare balances out the cost of
living which went up.

 

"I'm encouraging all members to come to my office or call me if they are
unsure of what to do. I am in the process of drafting a letter for them in
the event they meet law enforcement agents and don't know how to explain why
they are charging double the normal fare," he said.

 

 

Meanwhile, national secretary general of the Namibia Bus and Taxi
Association (Nabta) Pendapala Nakathingo welcomed the fare reverting back,
saying the increment was only meant to cushion operators for a limited time.

 

Nakathingo added that they also plan engaging the government on wavering the
log books for long distance drivers from paying the full amount since they
were only carrying limited passengers.

 

In addition, they want payment of fine tickets issued to taxi drivers or
operators to be postponed to next year while they recover from the effects
of Covid-19.

 

During the Covid-19 briefing on Wednesday, minister of justice Yvonne Dausab
said the public transport fare would revert to pre-lockdown levels since the
regulation of the number of passengers had been lifted.

 

"The idea behind increasing fares was because we reduced the number of
people who were being carried in that particular vehicle but then it would
have to be readjusted to be in line with what is ordinarily applicable," she
said.

 

The Namibian could not get comment from the Ministry of Works and Transport
on the situation about the public transport fare.-Namibian.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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