Major International Business Headlines Brief::: 27 October 2020

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Major International Business Headlines Brief::: 27 October 2020

 


 

 


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

 


 

 


ü  Facebook, Google and Microsoft 'avoiding $3bn in tax in poorer nations'

ü  Future of UK aerospace 'in doubt' without EU deal

ü  Toymakers expect strong Christmas sales despite coronavirus

ü  Stock markets slide as Covid-19 cases rise

ü  Jack Ma's Ant Group set for record $34bn market debut

ü  AIG names new CEO, plans to spin off life and retirement unit

ü  Charles Schwab to cut about 1,000 jobs

ü  HSBC to accelerate restructuring plan as third-quarter profit tumbles 35%

ü  Tiffany-LVMH deal clears regulatory hurdles with EU nod

ü  Ethiopia: African Union Seeks to Seize Initiative Over Nile Dam Talks

ü  Nigeria: Senate Raises Concern Over Zero Allocation for Mambila Power
Project in Budget

ü  Nigeria Has Achieved 43 Percent Broadband Penetration - Minister

ü  Swaziland Gender Links Launches Women in Local Economic Development
Network

ü  Morocco, Equatorial-Guinea Discuss Means to Develop Cooperation in
Industry

ü  Egypt Ready for Investment Projects in South Sudan

ü  Gambia: Ministry of Transport Holds Steering Committee Meeting On URR
Projects

ü  Kenya Power Risks Sh1.7 Billion Fine Over Unclaimed Assets

 


 <mailto:info at bulls.co.zw> 

 


 

Facebook, Google and Microsoft 'avoiding $3bn in tax in poorer nations'

Google, Facebook and Microsoft should be paying more corporation tax in
developing nations, says ActionAid.

 

The aid charity estimates that poorer countries are missing out on up to
$2.8bn (£2.2bn) in tax revenue that could be used to tackle the pandemic.

 

ActionAid is calling for big companies to pay a global minimum rate of tax.

 

Facebook and Microsoft declined to comment while Google did not immediately
respond to a request for comment.

 

Multinational corporations are currently not required by law to publicly
disclose how much tax they pay in some developing countries.

 

According to ActionAid, "billions" might be at stake that could be used to
transform underfunded health and education systems in some of the world's
poorest countries, especially since multiple tech giants have reported
soaring revenues during the pandemic.

 

The aid charity wants to see a new global tax system created, preferably by
the United Nations, whereby large corporations are required to pay a global
minimum rate of corporate tax reflective of their "real economic presence".

 

ActionAid estimates that $2.8bn could pay for 729,010 nurses, 770,649
midwives or 879,899 primary school teachers annually in 20 countries across
Africa, Asia and South America.

 

The aid charity said its research showed that the developing nations with
the highest "tax gaps" from Google, Facebook and Microsoft are India,
Indonesia, Brazil, Nigeria and Bangladesh.

 

"Women and young people are paying the price for an outdated system that has
allowed big tech companies, including giants like Facebook, Alphabet and
Microsoft, to rack up huge profits during the pandemic, while contributing
little or nothing towards public services in countries in the global south,"
said David Archer, global taxation spokesperson for ActionAid International.

 

"The $2.8bn tax gap is just the tip of the iceberg - this research covers
only three tech giants. But alone, the money that Facebook, Alphabet
(Google's owner) and Microsoft would be paying under fairer tax rules could
transform public services for millions of people".

 

Tax avoidance concerns

There have long been concerns that the biggest corporations do not pay
enough tax in developed nations, and re-route profits through low-tax
jurisdictions.

 

Facebook, Google, Apple and Amazon have all settled disputes with French tax
authorities over their operations in the country over the last decade. And
the UK in April launched a new digital sales tax aimed at forcing tech
giants to pay more on the income they generate inside the country.

 

In February, Facebook boss Mark Zuckerberg said he recognised the public's
frustration over the amount of tax paid by firms like his.

 

He added that Facebook accepted the fact it might have to pay more in Europe
"under a new framework" in future, and backed plans by think tank the
Organisation for Economic Co-operation and Development (OECD) to find a
global solution.--BBC

 

 

 

Future of UK aerospace 'in doubt' without EU deal

The future of the UK's £34bn aerospace sector is at risk if ministers do not
reach a deal with the European Union over the mutual recognition of parts,
the aviation trade body ADS says.

 

It said a deal would not form part of any post-Brexit trade deal, despite
the sector employing 110,000 people.

 

Currently the UK is the world's second largest aerospace manufacturer.

 

But ADS said that without agreement, customers would "go elsewhere or
UK-based businesses choose to relocate".

 

The warning comes as global aircraft orders slowed to nearly zero in
September due to a slump in demand caused by the pandemic.

 

Just 13 aircraft were ordered in the three months from July to September,
according to data from ADS.

 

ADS says ministers have not prioritised an agreement over the certification
of aerospace components in their trade negotiations with the European Union
(EU), preferring to focus on issues such as fishing rights.

 

However, it said that without mutual recognition, manufacturers could face
added cost and complexity at a time when they are already reeling from
coronavirus. 

 

"Even with a deal we are facing significant additional costs," ADS chief
executive Paul Everitt told the BBC. "It gets worse if there's no deal."

 

'Political issues'

At the moment, the European Union Aviation Safety Agency (EASA) certifies
all aerospace parts made within the EU, and it has mutual recognition
agreements with regulators around the world.

 

But from 1 January, all UK-designed parts for aircraft will automatically
become invalid in the EU.

 

The UK's own Civil Aviation Authority (CAA) will take over the function of
certification, but experts fear it does not yet have the competence to do
the job.

 

"In a nutshell, we definitely need a deal. If there is no deal then we would
need some temporary measures put in place by the EU to recognise UK-approved
design changes," Mr Everitt said.

 

Big manufacturers such as Rolls-Royce have already moved design teams out of
the UK to try to avoid extra costs.

 

Some UK companies are also arranging for EASA - responsible for certifying
the airworthiness of planes across the EU - to oversee some activities to
make sure they can supply companies such as Airbus with parts.

 

Mr Everitt said if no deal was struck, the UK's dominant position in global
aerospace would be hit as innovation slowed down.

 

He said EASA and the CAA were themselves keen to find a solution "a suitable
outcome" but that politics was getting in the way.

 

"Because there are bigger political issues between the UK and the EU, they
are not free to do the sensible deal that is there to be done."

 

A government spokesperson said: "Intensified talks are continuing in London
this week, and for the first time we are negotiating on legal texts and
across all areas at the same time.

 

"Aviation and aerospace are critical industries to both the UK and the EU,
and we have a common interest in ensuring that they continue to thrive."-BBC

 

 

 

Toymakers expect strong Christmas sales despite coronavirus

Toymakers are expecting strong global sales during the critical end-of-year
festive season, after a surge of pandemic-fuelled demand for items such as
Barbies and board games.

 

Hasbro, maker of Monopoly and Jenga, told investors on Monday it was poised
for a "good holiday season".

 

The forecast followed rival Mattel's report last week of its biggest sales
jump in a decade.

 

The firm's Barbie dolls hit their highest quarterly sales since 2003.

 

The gains have come as families buy toys and games in an attempt to fend off
boredom amid the pandemic lockdowns.

 

"The toy industry as a whole grew meaningfully and continues to demonstrate
its resilience in challenging economic times," said Mattel chief executive
Ynon Kreiz.

 

In the first nine months of the year, Hasbro sales grew 13% from 2019 -
bucking the wider plunge in consumer spending around the world.

 

At Mattel, sales are down 2% from 2019 - but some brands, such as Barbie,
are having their strongest run in years.

 

Is Barbie's makeover working?

The firm said gross sales of the doll grew 15% year-on-year in the first
nine months of 2020. In the most recent quarter, they rose 29% to more than
$532m.

 

Mattel told investors last week it was predicting holiday season sales
growth of roughly 5% from last year - greater than many wider forecasts of
festive season spending.

 

However, analysts have warned that the pandemic may throw some surprises at
toymakers in the upcoming months, as family budgets increasingly feel
strains and concerns about coronavirus infection change holiday shopping
dynamics.

 

"Not only am I concerned that paycheque spending may be limited, but I'm
concerned that we will not see that last minute rush into the stores due to
fears of Covid-19," Juli Lennett, vice president at market research firm NPD
Group, wrote recently.

 

But she said toymakers might still manage to see some gains.

 

"As we've seen in previous economically challenged times, parents will
sometimes forego their own needs to make their children happy. In this
crazy, stressful year, parents might just go overboard and splurge on their
kids -if they have money," she said.--BBC

 

 

 

Stock markets slide as Covid-19 cases rise

US stock markets suffered their sharpest drop in weeks as concerns about the
economic impact of surging coronavirus cases sent shares tumbling.

 

The Dow Jones Industrial Average closed down 2.3%, after dropping more than
3% earlier in the day. The S&P 500 fell 1.8% and the Nasdaq 1.6%.

 

Stocks in Europe, where a rise in virus cases has prompted new restrictions,
also declined.

 

Shares in travel and energy firms took some of the heaviest losses.

 

In the United States, cruise lines Royal Caribbean Group, Carnival and
Norwegian all dropped more than 8%, while in the UK, British Airways owner
IAG closed 7.6% lower.

 

Travel firms have been some of the most sensitive to warnings about the
virus, which experts worry will intensify as winter approaches.

 

On Monday, Michael Ryan, an emergencies expert for the World Health
Organization, said that Europe would need "much more comprehensive" measures
to get the virus under control.

 

"Right now we're well behind this virus in Europe, so getting ahead of it is
going to take some serious acceleration in what we do," he said.

 

On Monday, France's CAC 40 ended 1.9% lower, while Germany's Dax index
dropped 3.7%. In the UK, the FTSE 100 fell nearly 1.2%.

 

State of the virus

US President Donald Trump has vowed to avoid widespread restrictions on
activity, similar to the lockdown restrictions seen this spring, saying such
limits are not worth the economic cost.

 

But such decisions are typically handled by local leaders in America, some
of whom, such as the mayors of El Paso, Texas and Newark, New Jersey,
tightened rules on Monday.

 

Over the last week, the number of new virus cases reported daily in the US
has repeatedly passed 80,000, sending the seven day average to a new high of
nearly 69,000 - roughly double what it was in September.

 

The number of hospitalisations has jumped 40% in the past month and death
rates are also rising, though more slowly.

 

On a per capita basis, the number of new cases in the US over the past seven
days remains lower than some other countries, including the UK, Spain and
France, which have announced new restrictions recently.

 

But analysts say the economy is unlikely to mend until concerns about
Covid-19 are resolved.

 

Amid those strains, investors are also worried about the impasse in
Washington over the need to fund additional coronavirus economic relief.

 

On Monday, Treasury Secretary Steven Mnuchin, who has been trying to broker
a deal for the White House, said the two sides remained far apart.
Congresswoman Nancy Pelosi, who leads Democrats in the House of
Representatives made similar comments.--BBC

 

 

 

Jack Ma's Ant Group set for record $34bn market debut

Chinese financial technology giant Ant Group looks set to make the world's
largest stock market debut.

 

Ant, backed by Jack Ma, billionaire founder of e-commerce platform Alibaba,
is to sell shares worth about $34.4bn (£26.5bn) on the Shanghai and Hong
Kong stock markets.

 

Advisers to Ant set the share price on Monday amid reports of very strong
demand from major investors.

 

The previous largest debut was Saudi Aramco's $29.4bn float last December.

 

Ant, an online payments business, is only selling about 11% of its shares.
But the pricing values the whole business at about $313bn.

 

Mr Ma's Ant shares are reportedly worth about $17bn, taking his net worth to
close to $80bn and confirming him as China's richest man.

 

Ant runs Alipay, the dominant online payment system in China, where cash,
cheques and credit cards have long been eclipsed by e-payment devices and
apps.

 

In fact, Alipay says the total volume of payments on its platforms in China
for the year ending in June was a massive $17.6tn.

 

According to Alibaba's most recent annual report, Alipay has 1.3 billion
users. Most are in China, with the rest coming from its nine e-wallet
partners elsewhere in Asia.

 

Ant also offers wealth management, insurance and money transfer services.

 

The company is expected to make its dual listing in Shanghai and Hong Kong
next week, underlining the latter exchange's growing importance as a
financing hub.

 

Hong Kong will stay a key financial hub say experts

The Trump administration has threatened to limit Chinese firms' access to US
capital markets, a move that is part of the long-running trade row between
Washington and Beijing. In response, China called on its flagship tech
giants to list on domestic stock markets.

 

Chinese tech firms, including NetEase and JD.Com, have already raised
billions by selling their shares via the Hong Kong stock market.

 

Chinese financial technology group Ant has unveiled plans for a stock market
debut.

 

 

According to the Bloomberg news agency, Mr Ma told a conference in China on
Saturday that the flotation would be of huge significance for Shanghai and
Hong Kong.

 

"This was the first time such a big listing, the largest in human history,
was priced outside New York City," he told the Bund Summit.

 

"We wouldn't have dared to think about it five years, or even three years
ago," said Mr Ma.

 

Major investors to have signed up to the share offering ahead of flotation,
scheduled for 5 November, include Singapore state investor Temasek Holding
and Abu Dhabi sovereign wealth funds GIC and Abu Dhabi Investment Authority.

 

Analysts said the flotation offered investors a chance to secure a slice of
Asia's fast-growing tech sector.

 

"Digital commerce and infrastructure platforms in Asia provide an
unprecedented opportunity for Asian and global investors to be part of the
next wave of value creation in Asia," said Varun Mittal, an emerging markets
expert at consultancy EY, in Singapore.

 

"Earlier this year, India saw a rush of international investors keen to
invest in infrastructure and platforms ecosystem, which is being replicated
in the Chinese ecosystem now."--BBC

 

 

 

AIG names new CEO, plans to spin off life and retirement unit

(Reuters) - Insurer American International Group Inc AIG.N on Monday said
its board approved a plan to separate the life and retirement business from
the rest of the company, and named President Peter Zaffino as chief
executive officer, effective next year.

 

AIG shares were up nearly 8% in extended trading.

 

Zaffino, 53, who succeeds 73-year-old Brian Duperreault, will take charge in
March. Zaffino will be AIG’s seventh CEO since 2005.

 

The insurer, which ranks among the top 10 U.S. carriers by market value,
said it has yet to make a decision on how to carry out the separation,
beyond the board voting to establish two independent, market-leading
companies.

 

The separation of the business could take “a couple of years” and may be
done in phases through sales of minority stakes, according to two people
familiar with the matter.

 

The board’s decision does not rule out a single sale and any proposed
transactions will also need board approval, AIG said.

 

The life and retirement business accounted for 34% of AIG’s $49 billion
(37.62 billion pounds) in 2019 adjusted revenue, compared with 64% for its
general insurance business, AIG said in September.

 

AIG has been in the midst of a turnaround launched by Duperreault, who took
charge of AIG in 2017.

 

Duperreault has focused on sharpening underwriting, doing more with
worthwhile customers, investing in technology, restoring talent and cutting
costs.

 

Zaffino, has been the point man to execute those goals, partly by reducing
losses in the commercial property and casualty businesses and relying more
on reinsurance while also modernizing technology and processes. He also
helped to recruit a number of executives.

 

Zaffino joined AIG as global chief operating officer in 2017. His ascension
to CEO was widely expected after being named president in December, but AIG
had not indicated timing for the change.

 

AIG has struggled to right itself after a $182 billion U.S. taxpayer bailout
in 2008 to save it from collapse. Since then, the company has sold off big
chunks to repay the debt plus a $22.7 billion return.

 

It also had to work through hefty losses from claims occurring in prior
years that led to more than $11.2 billion in unexpected reserve increases
since 2015, most of which occurred under prior leadership.

 

In May 2019, AIG reported its first general insurance underwriting profit
since the 2008 financial crisis, a key goal.

 

The separation of AIG’s life insurance business echoes a move pushed by
billionaire activist investor Carl Icahn, who targeted the insurer in 2015
with a break-up plan that was also supported by former hedge fund manager
John Paulson.

 

Icahn, who wanted AIG to become a smaller, simpler company, demanded that
AIG spin off its life insurance unit and now former mortgage insurance
business.

 

The move would return more cash to shareholders, Icahn had said at the time.

 

Icahn sold his AIG stake in 2018.

 

Analysts have also seen logic in a separation. While the general insurance
business is prone to swings from hurricanes, wildfires and other
catastrophic events, the life and retirement unit’s large investment
portfolio makes it highly sensitive to interest rates - and current low
rates have dragged on earnings.

 

AIG also on Monday said that it incurred an estimated $790 million in
catastrophe losses during the third quarter, net of reinsurance and before
tax, including $185 million of estimated catastrophe losses for claims
related to COVID-19.

 

The losses were broadly in line with what analysts expected.

 

AIG also recorded a $9 million pre-tax charge in its life insurance
businesses after conducting and annual review of assumptions it has used to
write life insurance policies.

 

 

 

Charles Schwab to cut about 1,000 jobs

(Reuters) - Charles Schwab Corp SCHW.N said on Monday it is laying off about
1,000 positions in the combined workforce of Charles Schwab and TD
Ameritrade to streamline and reshape their branch network.

 

“These reductions are part of our efforts to reduce overlapping or redundant
roles across the two firms,” Charles Schwab, which completed the acquisition
of TD Ameritrade earlier in October, said.

 

The financial services company also said it won’t be executing any
additional company-wide reductions for the rest of 2020.

 

In November last year, Charles Schwab had agreed to buy TD Ameritrade
Holding in an all-stock deal valued at $26 billion.

 

“Employees whose roles are impacted by today’s changes will have early
access to all newly opened positions and be treated as internal candidates
for the more than 1,000 currently open positions at Schwab through their
60-day notice period”, the company said on Monday.

 

Earlier this month, Charles Schwab reported third quarter adjusted earnings
per share of 51 cents, topping analysts’ estimates of 46 cents a share,
according to Refinitiv IBES data.

 

 

 

HSBC to accelerate restructuring plan as third-quarter profit tumbles 35%

HONG KONG/LONDON (Reuters) - HSBC Holdings PLC HSBA.L said on Tuesday it
plans to accelerate its restructuring plan, slashing costs further than
previously suggested, flipping its model from generating income mainly from
interest rates to fee-based business, and shrinking in size.

 

The plans were unveiled as it posted a less-than-expected 35% drop in
quarterly profit and flagged an easing in its provisions for bad loans,
citing an expected improvement in the economic outlook in its main markets.

 

Reported pretax profit for Europe’s biggest bank by assets came in at $3.1
billion for the quarter ended Sept. 30, down from $4.8 billion in the same
period a year earlier.

 

The profit was higher than the $2.07 billion average of analysts’ estimates
compiled by the bank.

 

Asia-focused HSBC said it expected losses from bad loans to be at the lower
end of the $8 billion to $ 13 billion range it set out earlier this year.

 

“This latest guidance, which continues to be subject to a high degree of
uncertainty due to Covid-19 and geopolitical tensions, assumes that the
likelihood of further significant deterioration in the current economic
outlook is low,” it said.

 

Faced with fewer options to bolster revenue growth, HSBC has been looking to
reduce costs globally and in June resumed plans to cut around 35,000 jobs it
had put on ice after the coronavirus outbreak.

 

Other measures in the lender’s global restructuring drive, unveiled in
February, include the disposal of its French business, which it may have to
sell at a big loss, Reuters reported last month.

 

HSBC, which in common with other British lenders stopped paying dividends
earlier this year at the request of regulators, said it would communicate a
revised dividend policy in February 2021.

 

Analysts and investors fear the lender could cut payouts in the long run.

 

 

 

 

Tiffany-LVMH deal clears regulatory hurdles with EU nod

(Reuters) - Tiffany & Co has received all regulatory approvals needed for
the completion of its $16 billion (12.29 billion pounds) acquisition by
French luxury goods group LVMH, the U.S. jeweler said on Monday after it
received a nod from the European Commission.

 

The approval from the European competition authorities comes amid a legal
battle between LVMH and Tiffany, with the latter suing the Louis Vuitton
owner in a Delaware court, alleging that the French company has deliberately
been stalling the completion of the deal.

 

Tiffany has alleged that LVMH has improperly tried to renegotiate the deal,
while LVMH has countersued, alleging that the U.S. company has been
mismanaged during the COVID-19 pandemic.

 

Reuters reported earlier this month that the deal was set to gain EU
antitrust approval.

 

 

 

U.S. appeals court rejects immediate WeChat ban

(Reuters) - A U.S. appeals court on Monday rejected a Justice Department
request that it allow the government to immediately ban Apple Inc and
Alphabet Inc’s Google from offering Tencent’s WeChat for download in U.S.
app stores.

 

The three-judge panel for the Ninth Circuit Court of Appeals said in a brief
order the government had not demonstrated it would “suffer an imminent,
irreparable injury during the pendency of this appeal, which is being
expedited.”

 

On Friday, a U.S. judge in San Francisco rejected a Justice Department
request to reverse her decision preventing the WeChat ban sought by the U.S.
Commerce Department in response to a lawsuit filed by WeChat users.

 

The WeChat users said the ruling will avoid an “unprecedented shutdown of a
major platform for communications relied on by millions of people in the
United States.”

 

The Commerce Department order, which had been set to take effect Sept. 20,
would also bar other U.S. transactions with WeChat, potentially making the
app unusable in the United States.

 

The appeals court said the case will be placed on its January 2021 calendar.

 

Tencent and the Commerce Department did not immediately comment.

 

The Justice Department argues WeChat and Chinese short video sharing app
TikTok threaten U.S. 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.

 

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 TikTok
downloads.

 

 

 

Ethiopia: African Union Seeks to Seize Initiative Over Nile Dam Talks

Cape Town — Days after President Donald Trump accused Ethiopia of breaking a
deal he had negotiated over Egypt's rights to water from the Nile, the
African Union is kick-starting renewed trilateral talks on the issue between
Ethiopia, Egypt and Sudan.

 

The building of the massive Grand Ethiopian Renaissance Dam (GERD), the
centrepiece of Africa's biggest hydro-electric power project, across the
river is causing tensions in the region, particularly over its potential to
disrupt Egyptian agriculture.

 

The African Union stepped into the dispute earlier this year when its
current chair, President Cyril Ramaphosa of South Africa, learned of letters
sent to the United Nations Security Council by Egypt, Sudan and Ethiopia in
May and June.

 

In the spirit of finding "African solutions to Africa's problems", he
consulted with the leaders of the three countries, and  the ensuing
negotiations reportedly achieved "tangible results". But the AU initiative
is yet to produce a firm agreement.

 

 

After a seven-week break in talks, Ramaphosa announced early on Monday that
after "extensive consultations" with President Abdel Fattah al-Sisi of
Egypt, Prime Minister Abiy Ahmed of Ethiopia and Prime Minister Abdalla
Hamdok of Sudan, they will resume on Tuesday.

 

Ramaphosa asserted that the resumption of the talks "is indicative of the
strong political will and commitment" by the three leaders to "the peaceful
and amicable resolution of the GERD matter."

 

His statement followed three days after Trump publicly put pressure on the
Sudanese leader to help resolve the dispute.

 

During a three-way link-up with Hamdok and Israeli Prime Minister, Benjamin
Netanyahu, the U.S. president claimed that "I had a deal done for them" over
the dam.

 

"[T]hen unfortunately Ethiopia broke the deal," he added, "which they should
not have done, it was a big mistake." He went on to generate headlines by
suggesting that if the dispute is not resolved, Egypt will "blow up that
dam".

 

Trump has previously called Sisi a "great president", and his administration
has suspended and delayed development assistance to Ethiopia over the
dispute. The decision has been criticised by previous Africa envoys of both
Democratic and Republican administrations.

 

Johnnie Carson, Assistant Secretary of State for Africa during the first
Obama administration has said the move is "misguided and shortsighted."
Herman J. Cohen, who held the same office during the George W. Bush
administration, was reported as saying it "makes absolutely no sense".

 

 

 

 

Nigeria: NNPC Blames Return of Fuel Queues On #EndSARS Protests

The Nigerian National Petroleum Corporation, NNPC, yesterday, blamed the
reappearance of queues in petrol stations across the country on the protest
against police brutality, especially the Special Anti-Robbery Squad, SARS,
of the Nigeria Police.

 

For instance, most petrol stations in Abuja were shut down, while large
queues were witnessed at the few ones still dispensing the commodity.

 

Reacting to the queues, Group General Manager, Group Public Affairs Division
of the NNPC, Dr Kennie Obateru, cautioned motorists against panic buying,
stating that the corporation currently have over two billion litres of
Premium Motor Spirit, PMS, also known as petrol, in stock.

 

He explained that the current fuel stock is enough to last the country 60
days, adding that fuel supply is expected to normalise within the next
couple of days.

 

He said: "The disruptions/curtailment of the free flow of vehicular movement
occasioned by the end SARS protests and the attendant curfews/ restrictions
and vandalism, particularly in Lagos, must have affected petroleum products
supply.

 

"With the easing of the curfews /restriction of movement by various state
governors, normalcy is expected to return to the petroleum products supply
chain in the next couple of days.

 

"There is no need for panic-buying, rest assured that the NNPC has over two
billion litres of premium motor spirit (petrol) in stock to guarantee steady
supply and at least 60 -day-product supply sufficiency to the entire
country."-Vanguard.

 

 

 

 

Nigeria: Senate Raises Concern Over Zero Allocation for Mambila Power
Project in Budget

The Mambilla hydropower project has a generation capacity of 3,050 Mega Watt
(MG), when completed.

 

The Senate on Monday berated the Federal Ministry of Power for the
non-provision of budgetary allocation in the 2021 budget for the execution
of the Mambila Power Project in Taraba State.

 

The senators expressed their displeasure when the Minister of Power, Mamman
Sale, appeared before the Senate Committee on Power for the 2021 budget
defence session of the ministry and its agencies.

 

Shuaibu Lau, senator (PDP, Taraba), in his presentation, said the project
may not see the light of the day, given the absence of commitment on the
project by the ministry.

 

 

He said that his assessment of the Mambila project site indicates that there
is no commitment on the part of the ministry to begin the execution of the
project.

 

"There is no road to Mambila. You can't take any equipment to Mambila at the
moment, there is no road to transport personnel to the place, so how will
the project take off?.

 

"There is a court case that has not been settled and the Chinese company
cannot come with the court case still on.

 

"We are just going around on one particular project for more than 20 years.
We must be sincere with ourselves and tell ourselves the truth about the
project.

 

"Let us plan something and do the project accordingly as planned."

 

James Manager, (PDP-Delta), said that several power experts had noted that
the Mambila project if completed, will help salvage the power deficit in the
country.

 

 

He, however, noted that no seriousness on the execution of the project has
been shown by the ministry from discussions so far.

 

Mr Manager said he had thought that the minister would be desirous of
completing the project, given the lifetime opportunity of being a minister
from that region.

 

He said that the project should have been a priority of the ministry before
the Senate Committee on Power.

 

"I get very frustrated, Mr Chairman, why are we like this.

 

Other senators that decried the absence of commitment to the execution of
the project are Danjuma Goje (APC-Gombe), Gabriel Suswan (PDP-Benue),
Enyinnaya Abaribe (PDP-Abia), Adamu Alero (APC-Kebbi), among others.

 

Responding, the Minister of Power, Mr Sale, said that since he assumed
office, he had been doing his best to kick start the Mambila power project.

 

 

He, however, shocked the Senate Committee when he disclosed that prior to
his assumption of office, there was nothing like Mambila project.

 

"I am doing my best and I will continue to do my best. The counterpart
funding that we had is 200 million dollars.

 

"This money had been there, and I have been pressing for the release, so
that we can move to site and start work.

 

"It is with this money that we can clear the place, do the roads, do site
clearance, and begin the groundbreaking.

 

"This will show the whole world that we are ready, and that is when any
investors that are ready to come will invest, that is what the Chinese are
waiting for."

 

He, however, affirmed that there is lingering litigation, noting that he is
still trying to convince President Muhammadu Buhari on the issues.

 

"It is all our responsibility and that is why we are here in the Senate for
the budget defence to solve the problem. Once we succeed in taking up this
project, it will be completed," he assured.

 

The Mambilla hydropower project has a generation capacity of 3,050 Mega Watt
(MG), when completed.

 

The project is being undertaken by the Federal Ministry of Power with the
help of a consortium of Chinese investors.

 

Chinese Export-Import (Exim) Bank is funding 85 per cent of the estimated
5.8 billion-dollar project cost, while the remaining 15 per cent funding
will come from the Federal Government of Nigeria.

 

The project is estimated to cost 5.8 billion dollars and will generate up to
50,000 local jobs during the construction phase.-Premium Times.

 

 

 

 

Nigeria Has Achieved 43 Percent Broadband Penetration - Minister

Broadband internet penetration in Nigeria has increased from 33.72 percent
in August 2019 to 43.3 percent in August 2020.

 

The minister in charge of the Ministry of Communication and Digital Economy,
Isa Pantami, said this at the World Information Development Day in Abuja on
Saturday.

 

"When I assumed office on the 21st of August 2019, the official broadband
penetration figures stood at 33.72%. It increased with the subsequent
monthly figures from end of August 2019 to end of August 2020, where it
stood at 43.3%," he added.

 

Broadband is a key component of any digital economy and it is not merely for
entertainment, the minister noted.

 

 

In April 2019, broadband penetration increased to 33.70 per cent before
dropping slightly to 33.13 per cent in May 2019.

 

In June, July and August 2019, broadband penetration increased to 33.31 per
cent, 33.72 per cent and 35.10 per cent respectively.

 

Between September and October 2019, the penetration had another steady
growth to reach 35.40 per cent, and 37.87 per cent, before dropping slightly
again in November same year to 37.71 per cent.

 

It increased to 37.80 per cent in December 2019, before maintaining another
steady growth from January to March 2020, to reach 38.49 per cent, 39.58 per
cent, and 39.85 per cent respectively, before dropping slightly to 39.54 per
cent in April 2020.

 

As at July 2020, it was at 40.1 per cent, up from 33.72 per cent in August,
2019.

 

Mr Pantami said this is a major achievement of the ministry after the change
of name in 2019.

 

 

The Federal Ministry of Communications Technology was changed to the Federal
Ministry of Communications and Digital Economy, in October 2019 by President
Muhammadu Buhari.

 

Mr Pantami said the ministry through its supervisory agencies has developed
many policies and regulatory instruments to enable it to deliver on its
mandate.

 

The polices, the minister said, are designed to address some of the
prolonged concerns in the information and communication technology sector to
support the development of the digital economy.

 

The ministry recently provided online learning platforms to enable Nigerians
to receive training in diverse digital skills.

 

"Such platforms include the DigitalNigeria.gov.ng platform and NITDA Academy
for Research and Training," he said

 

Mr Pantami said over 114,000 Nigerians have enrolled on these platforms,
including about 67,000 enrolees since the official launch of the Digital
Nigeria portal on September 28.

 

 

Rather, empirical evidence has shown that it can help to significantly
improve economic indices, create jobs and lift people out of extreme
poverty.

 

The issue of Right of Way Issue (RoW), that had lingered for over a decade,
has been addressed.

 

The Nigeria Governors Forum (NGF) agreed to approve N145 as the ROW charges.

 

Mr Pantami said: "Many State Governors have now approved the RoW charges of
N145 per metre and some have even cancelled the fee all together.

 

"We have also developed an IT clearance portal to support inoperability,
eliminate duplication and ensure value for money in the implementation of
ICT projects in the country. The IT Projects Clearance programme has saved
over N5 billion for the Federal Government."

 

One of such programmes is the National Adopted Village for Smart Agriculture
(NAVSA); it is part of the implementation of NDEPS for the agricultural
sector.

 

He also said that privacy concerns are also being addressed through the
Nigeria Data Protection Regulation (NDPR) 2019 and the Guidelines for the
Management of Personal Data by Public Institutions 2020, according to the
minister.

 

The guidelines were released bearing in mind the need to use personal data
to mitigate the effects of the COVID-19 pandemic in particular and other
situations where the need arises.

 

Mr Pantami also said that the National Data Protection Regulation(NDPR)
performance report showed a lot of success stories, including the creation
of 2,686 direct job roles, creating massive opportunities for young
Nigerians to be recruited as Data Protection Officers, Data Protection
Compliance Organizations(DPCOs), compliance officers, among others.

 

The DPCOs have also earned over two billion naira in the first year of
implementation

 

"Based on the Q2 2020 GDP Report by the National Bureau of Statistics, ICT
contributed an unprecedented 17.83% to the GDP," he said.-Premium Times.

 

 

 

 

Swaziland Gender Links Launches Women in Local Economic Development Network

Swaziland Gender Links is to host a two-day summit and launch a Women in
Local Economic Development network (WLED).

 

It is being held in collaboration with the Commonwealth Local Government
Forum (CLGF) and the eSwatini Local Government Association (ELGA). It will
take place on 29-30 October 2020.

 

In a statement Swaziland Gender Links said participants were drawn from
local government, civil society, media and faith-based organisations from
all over the kingdom. The summit will focus on the importance of
mainstreaming gender in different areas including sexual reproductive health
and rights (SRHR), climate change, gender-based violence, economic justice
and media.

 

Swaziland Gender Links said, 'Running under the hashtag #VoiceandChoice the
summit serves as a springboard to call governments to account for gender
equality commitments made in the Southern African Development Community
(SADC) Gender Protocol and the Sustainable Development Goals. The summit
will pave way for the localisation of the recently adopted SRHR strategy.'

 

During the summit entrepreneurs will be presenting case studies and will
hold a mini trade fair to showcase their wares at the Happy Valley hotel,
Ezulwini, pool side.

 

On the evening of 29 October the WLED network will be launched with the
presence of the British High Commissioner John Lindfield and the guest
speaker will be Swazi Minister of Housing Urban and Development Prince
Simelane.-Swazi Media.

 

 

Morocco, Equatorial-Guinea Discuss Means to Develop Cooperation in Industry

Rabat — Minister of Industry, Trade, the green and digital economy, Moulay
Hafid El Alamy, on Monday held talks in Rabat with the Equatorial Guinean
Minister of Foreign Affairs, Simeón Oyono Esono Angue.

 

Speaking to reporters following this meeting, El Alamy said the two parties
discussed the industrial development of the Kingdom and voiced the desire to
"share our mutual experiences".

 

"Equatorial Guinea has extensive experience in both oil and gas," he noted,
adding that "Morocco has also developed expertise in the industrial field
for about fifty years".

 

The idea of "sharing experiences, successes and failures of each other will
accelerate the development of our two countries," said the Minister.

 

 

El Alamy, who underscored the "exceptional" relations between the two
countries, said the Kingdom of Morocco and Equatorial Guinea are determined
to share experiences in accordance with the High Instructions of His Majesty
King Mohammed VI.

 

For his part, Mr. Oyono Esono Angu stressed that the discussions focused on
"the strengthening of relations of cooperation between Morocco and
Equatorial Guinea in the industrial sector".

 

"We would like Morocco to invest in our country, particularly at the
industrial level", he underlined, noting that Equatorial Guinea "has a
development program of economic diversification, and Morocco has a great
potential in the industrial area".

 

Last Friday, Oyono Esono Angu co-chaired with the Moroccan minister of
Foreign Affairs, African Cooperation and Moroccans Abroad, Nasser Bourita,
the inauguration ceremony of the consulate general of Equatorial-Guinea in
Dakhla.

 

The opening of this consular representation reflects the political will of
the Equatorial Guinean government to strengthen relations of friendship and
cooperation with Morocco, said Eyono Esono Angue during a joint press
briefing with his Moroccan counterpart.-MAP.

 

 

 

Egypt Ready for Investment Projects in South Sudan

Prime Minister Moustafa Madbouli stressed on Monday that Egypt is ready to
offer all support to South Sudan and set up investment projects in the
brotherly country.

 

Madbouli made the remarks during his meeting with South Sudanese Irrigation
Minister Manawa Peter in the presence of Irrigation Minister Mohamed Abdel
Aati.

 

Nader Saad, Spokesman for the premier, said Madbouli lauded distinguished
and deeply-rooted relations binding the two countries.

 

Madbouli called for accelerating steps to form a high committee grouping the
two countries.

The Sudanese official praised Egypt's support of Sudan during the floods
crisis and the airlift it launched to offer urgent humanitarian assistance
to the victims of the floods.

 

He said Sudan is keen on enhancing cooperation with Egypt and benefiting
from its expertise in the capacity building domain.

 

He voiced hoped to open a branch of any Egyptian bank in South Sudan soon.

 

He lauded Egypt's establishment of industrial schools in South Sudan, a
school that brings qualified cadres that meet the needs of labor market.

 

Peter also thanked the Egyptian Higher Education Ministry for increasing the
number of grants offered to South Sudanese students to study in Egyptian
universities.

 

He hoped for drawing on Egypt's expertise in building new cities in record
time, saying a delegation of the Housing Ministry will pay a visit to Egypt
soon to stand on the underway housing projects.-Egypt Online.

 

 

 

Gambia: Ministry of Transport Holds Steering Committee Meeting On URR
Projects

The Ministry of Transport, Works and Infrastructure (MoTWI), on Wednesday,
14th October, 2020 held its fifth steering committee meeting on the
construction of the Basse/Fatoto road and bridges project currently ongoing
in the Upper River Region of the country.

 

The meeting, which was held at the Sir Dawda Kairaba Jawara International
Conference Center in Bijilo, brought together stakeholders from The Chinese
Embassy, GAMTEL, NAWEC, The National Roads Authority-NRA, Ministry of Lands
and The Ministry of Finance, to discuss the progress of work, challenges and
the way forward for the project.

 

Speaking at the event, Honorable Bai Lamin Jobe, The Minister of Transport,
Works and Infrastructure stated that the ongoing project works in the Upper
River Region of the country is satisfactorily on course, and therefore,
called on all stakeholders to work together as a team, in order to
successfully complete the project on time.

 

 

"By next month, the Basse bridge will be closed and that of Fatoto will be
closed by February next year 2021. So, I think that itself is a progress.
The president was assured that during his tour in November, he might use one
of the bridges at least. So, this is a challenge in the light of the fact
that there are still some outstanding works that needs to be done," he said.

 

Minister Jobe, therefore, called on the contractor and the consultant to put
all hands-on deck and deal with those issues amicably before the expected
deadline of work completion, which is around August, 2021.

 

"I know that the progress is going on, but there are serious challenges,
thus the need to support the project team. Whatever we can do we will do, so
as to meet the deadline of August, 2021," he added.

 

 

The Minister further told the meeting he had received reports from the
Project Implementation Unit-PIU, which highlighted some bottlenecks
affecting the progress of work such as the demolition of houses, relocation
of GAMTEL pipes, bringing of equipment into the country through Senegal,
compensation of property owners and NAWEC high tension cables among other
issues affecting the project which, he stated must be addressed soon.

 

On his part, Ma JianChun, Chinese Ambassador to The Gambia, said that apart
from the road and bridges under construction in the Upper River Region of
the country, he cited Sir Dawda Kairaba International Conference Center as
another example of the good relationship between Beijing and Banjul.

 

He further stated that the completion of the road and bridges construction
in the Upper River Region of The Gambia, will accomplish the "Last Mile" of
the national highway network of The Gambia.

 

 

At the end of the meeting, all the stakeholders promised to work together
with the contractor in order to see how best they could overcome the
bottlenecks that are hindering the progress of work to meet the deadline of
August, 2021, the expected time of completion of work.

 

At the meeting, the different stakeholders also did presentations as to how
far their work has progressed in relation to the project.

 

The project, when completed, is expected to boost economic activities in the
region as well as connect Basse with the sub region and beyond.

 

It could be recalled that the URR Road and Bridges project is a grant from
the government of the People's Republic of China to the tune of $82 million
and it consists of a 51kiometer road, two big bridges, one in Basse and the
other one in Fatoto, while two small bridges are also currently under
construction in Suduwol and Chamoi.

 

Mod K. Ceesay, Permanent Secretary, Ministry of Transport, Works and
Infrastructure, chaired the meeting.-The Point.

 

 

Kenya Power Risks Sh1.7 Billion Fine Over Unclaimed Assets

Kenya Power risks a Sh1.765 billion penalty for not surrendering to the
State unclaimed assets that include dividends and stale cheques as required
by the law.

 

Auditor-General Nancy Gathungu disclosed in the latest audit report that the
utility firm was at the end of June last year still holding Sh922 million in
its books against the requirements of Unclaimed Financial Assets Act, 2011.

 

Ms Gathungu said the unclaimed assets ought to have been surrendered to the
Unclaimed Financial Assets Authority (Ufaa).

 

Pension dues

"Although the management is confident that the outstanding balance will drop
following ongoing review and audit of assets, this aspect of non-compliance
may cost the company up to Sh1.765 billion in interest and penalties as at
June 30, 2019," warned the auditor-general.

 

Also making up the unsurrendered assets are deposit refunds, unidentified
receipts, unpaid customer electricity deposits and unpaid way leave
compensation.

 

The value of unclaimed assets is 3.5 times the Sh262 million net profit that
the electricity distributor made in the year under review.

 

Ufaa's latest data shows unclaimed assets have risen by 23 per cent in 2019
or Sh3 billion to Sh16 billion, most in uncollected salaries, pension dues,
matured policies, bank deposits and royalties.

 

The law allows Ufaa to charge any entity that fails to surrender unclaimed
assets a penalty of 25 per cent of the assets held.

 

Falling profits

 

Ufaa also charges a penalty of between Sh7,000 and Sh50,000 for each day
that the assets stayed before being submitted.

 

The firm has been facing a period of falling profits, rising debt and
squeezed working capital.

 

Kenya Power has, for instance, remained in the negative working capital
position--current liabilities exceeding current assets-- for the third
consecutive year, due to rising short-term debts.

 

Paying out such money to Ufaa at once is sure to squeeze its operations at a
time it has issued a third consecutive profit warning, preparing investors
for a more than 16-year low earnings.- Nation.

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Falgold

EGM

1st Floor, KPMG Building, 133 Josiah Tongogara Avenue, Bulawayo

29/10/2020 | 10:00 am

 


Afdis

AGM

virtual

13/11/2020 | 12:20pm

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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