Major International Business Headlines Brief::: 28 October 2020

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Major International Business Headlines Brief::: 28 October 2020

 


 

 


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ü  Aston Martin: Mercedes to take 20% stake in luxury brand

ü  TikTok shrugs off Trump attack with expansion plans

ü  Experian: Credit agency told to stop sharing data without consent

ü  Turkish lira sinks amid Erdogan fury with allies

ü  Red tape is back post-Brexit, but will it be ready?

ü  Home working reduces creative thought, says Bank economist

ü  BP returns to profit but pandemic weighs on demand

ü  Woolworths High Street 'relaunch' proves a hoax

ü  HSBC says it could charge for current accounts

ü  Nigeria: France, Germany, 104 Others Back Okonjo-Iweala for WTO Job

ü  Nigeria Receives U.S.$26.9bn Foreign Support in Six Years - Minister

ü  Nigeria: Factcheck - Are 63% Young Nigerians Jobless or Underemployed?

ü  Nigeria: Misrepresentation of 5G May Delay the Approval in Nigeria - NCC

ü  Mozambique: EDM Calls for Urgent Intervention in Substations

ü  Malawi: Chakwera Begs for Patience - Critics Urge Malawi Leader to Check
Emerging Rubble

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Aston Martin: Mercedes to take 20% stake in luxury brand

Germany's Mercedes-Benz is to raise its stake in Aston Martin Lagonda as
part of the UK carmaker's recovery plan.

 

Aston Martin, which has haemorrhaged cash since a disastrous stock market
flotation, said Mercedes will increase its holding "in stages" from 5% to
20%.

 

The announcement, made after the London stock market closed, called the deal
a "strategic technology agreement".

 

It comes months after Formula One team owner Lawrence Stroll took a majority
stake in the British luxury marque.

 

The deal will give Aston Martin, whose profitability over the decades has
never matched its status as one of Britain's premier brands, access to
Mercedes' electric car technology.

 

Mercedes first teamed up with Aston Martin in 2013, taking a 5% stake in a
deal that saw the two companies work on engine development.

 

Aston Martin, popularly known as James Bond's favourite car company, has
plans to grow sales to about 10,000 by 2025, up from 5,862 vehicles sold
last year.

 

The company also said on Tuesday that it had a long-term strategy to
increase its revenues to £2bn and attain earnings of about £500m in five
years' time.

 

Mr Stroll, a Canadian billionaire and executive chairman of Aston Martin,
said: "This is a transformational moment for Aston Martin. It is the result
of six months of enormous effort to position the company for success to
capture the huge and exciting opportunity ahead of us."

 

Wolf-Dieter Kurz, head of product strategy at Mercedes-Benz Cars, said:
"With this new expanded partnership, we will be able to provide Aston Martin
with access to new cutting-edge powertrain and software technologies and
components, including next generation hybrid and electric drive systems."

 

The first stage of the investment deal will see Mercedes increase its stake
to 11.8% as part of a £140m share issue.

 

Aston Martin's shares have crashed since the company was floated on the
London stock market in 2018 at £19 each. By the time chief executive Andy
Palmer was eased out in May, the price was down 94% as investors bailed on
fears over falling sales and rising costs.

 

Mr Palmer was replaced by Tobias Moers, the former head of Mercedes'
performance car division AMG.

 

Separately on Tuesday, Aston Martin posted a £29m pre-tax loss for the third
quarter, down from a £43m profit in the same period last year.--BBC

 

 

 

TikTok shrugs off Trump attack with expansion plans

TikTok is continuing to expand despite coming under attack from the Trump
administration in the US.

 

The Chinese-owned firm has announced a tie-up with online retailer Shopify
to help businesses create video ads to promote their products.

 

TikTok also plans to take on around 3,000 engineers over the next three
years, a spokesman told the BBC.

 

The popular short-form video app is being forced to sell its US operations
to an American company or face a ban.

 

TikTok's Chinese parent company ByteDance will hire the engineers mostly in
Europe, Canada, the US and Singapore "to support our rapid global growth,"
it said.

 

It currently employs about 1,000 engineers outside of China, with nearly
half of them based in California.

 

Last month, it emerged that ByteDance plans to invest billions of dollars
and recruit hundreds of employees in Singapore, which has been selected as
its South East Asia headquarters.

 

The Trump administration says Chinese-owned social media platforms such as
TikTok and Tencent's WeChat pose a national security threat, claiming users'
data can be accessed by the Chinese government.

 

Both companies have repeatedly denied these allegations.

 

Despite the US uncertainty, TikTok continues to push ahead with its hiring
expansion plan and moves into e-commerce.

 

Video ads

On Tuesday, Canada-based Shopify said it was tying up with TikTok in the US
to allow businesses to create and track video ads.

 

Shopify said the partnership allows its one million merchants to sell
products in the form of "shoppable video ads".

 

TikTok users can click on the ad to buy the product via Shopify. The tie-up
will be available first in the US, where the Chinese app has around 100
million users.

 

There are plans to roll out the global partnership across Europe and South
East Asia early next year.

 

"We've seen that our community loves connecting with the brands they're
passionate about," said a TikTok spokesman.

 

US ban

In August, Donald Trump signed executive orders against TikTok's parent
company, but these have been challenged in US courts.

 

One of these orders forces ByteDance to sell its US operations by 12
November, one week after the presidential election, or face a ban.

 

A last-minute deal to sell TikTok's US business to Oracle and Walmart is
currently being reviewed with question marks over what stakes the different
firms will take.

 

In June, Walmart also partnered with Shopify to expand its online
marketplace business and tap into the huge surge in online shopping during
the virus pandemic.

 

A judge will consider on 4 November if the US government will be allowed to
ban downloads of TikTok from US app stores.--BBC

 

 

 

Experian: Credit agency told to stop sharing data without consent

Credit reference agency Experian has been sharing the personal information
of millions of people without consent and must stop, the UK's information
commissioner has ruled.

 

The firm sold on the data to businesses that used it to identify who could
afford goods and services, as well as to political parties.

 

The company must make "fundamental changes" to how it handles data or face a
huge fine, the watchdog said.

 

Experian has said it will appeal.

 

"We believe the ICO [Information Commissioner's Office]'s view goes beyond
the legal requirements," the Dublin-based firm said in a statement.

 

"This interpretation also risks damaging the services that help consumers,
thousands of small business and charities, especially as they try to recover
from the Covid-19 crisis."

 

While Experian has made efforts to improve its practices, the ICO said they
did not go far enough.

 

The company now has nine months to satisfy the regulator or face fines of up
to £20m, or 4% of its global turnover, whichever is higher.

 

'Invisible processing'

The two-year investigation was prompted by a complaint from the campaign
group Privacy International.

 

It found that Experian and two other credit reference agencies - Equifax and
TransUnion - did a significant amount of "invisible" processing of data,
meaning that people did not know it was happening.

 

All firms provide a way for people to check their credit score for loans and
credit cards.

 

But they are also data brokers, collecting and selling on information
gathered from a variety of sources.

 

The report found that the agencies had access to the data of almost every
adult in the UK, which was then "screened, traded, profiled, enriched, or
enhanced to provide direct marketing services".

 

This processing resulted in "products that were used by commercial
organisations, political parties and charities to find new customers and
build profiles about people", the investigation stated.

 

The probe was limited to offline data broking, so did not include data
collected about online behaviour.

 

That is being investigated by the ICO separately.

 

Equifax and TransUnion do not face further action from the watchdog because
both made changes, including withdrawing some products and services. The
report did not specify what these products and services were.

 

All three credit reference agencies failed to clearly explain what they were
doing with people's data, said the ICO, despite this being a requirement of
the General Data Protection Regulation (GDPR).

 

"The data broking sector is a complex eco-system where information appears
to be traded widely without consideration for transparency, giving millions
of adults in the UK little of no choice or control over their personal
data," said Information Commissioner Elizabeth Denham.

 

Experian still needs to:

 

inform people that it holds their personal data and how it is using or
intends to use it for marketing purposes

stop the processing of any personal data that has been collected unlawfully
under GDPR rules

stop screening out prospective customers from marketing lists on the basis
of financial status

Privacy International's executive director said other countries should carry
out follow-up investigations of their own.

 

"As the UK regulator notes, people don't even know the names of most of
these companies and yet they hold everyone's data," said Gus Hosein.

 

"We believe the deck is stacked against people and this can't
continue."--BBC

 

 

 

 

Turkish lira sinks amid Erdogan fury with allies

The Turkish lira has hit a record low of 8.15 against the dollar amid
investor anxiety about the Turkish economy, hit by coronavirus and friction
with Nato allies.

 

President Recep Tayyip Erdogan has riled France and the US among others.

 

Analysts attribute the weakening to concern about Turkish inflation - 11.7%
last month - and the central bank's refusal to raise its key interest rate.

 

A rate rise could dampen inflation and encourage investors to buy lira.

 

President Erdogan's regional muscle-flexing - in Libya, Syria, around Cyprus
and in the Caucasus - has disconcerted investors, market analysts say.

 

"The rising geopolitical tensions with the USA and EU are new sources of
pressure weakening the lira," said a Turkish foreign exchange trader quoted
by Reuters news agency.

 

Piotr Matys, an analyst at Rabobank, said there were concerns that a win for
US presidential candidate Joe Biden could mean "severe sanctions on Turkey
for purchasing the Russian S-400 [anti-aircraft] defence system" and "the
market is also concerned about [the] rapidly deteriorating relationship
between Turkey and France".

 

The lira has lost 26% of its value this year and the Turkish authorities are
reported to have spent about $134bn (£103bn) in the past 18 months propping
up the currency.

 

Missile controversy

On 23 October President Erdogan confirmed that Turkey had tested the
controversial S-400 missile system. Then on Sunday he hit back at US
criticism over the arms deal with Russia, saying: "You do not know who you
are playing with. Go ahead with your sanctions."

 

The US state department has warned of "potential serious consequences for
our security relationship if Turkey activates the system".

 

The EU is by far the largest of Turkey's trading partners. But this month EU
leaders issued a sharp warning to Mr Erdogan over Turkish exploration for
gas off Cyprus.

 

A summit statement said the EU "deplores renewed unilateral and provocative
actions by Turkey in the Eastern Mediterranean, including recent exploratory
activities". Greece and Cyprus remain bitterly opposed to Turkey over
breakaway, Turkish-controlled northern Cyprus.

 

Overlapping claims in the Eastern Mediterranean graphic

1px transparent line

French President Emmanuel Macron has been especially critical of Turkey's
activities there. On Sunday Mr Erdogan accused him of mistreating French
Muslims and then he joined calls in the Arab world for a boycott of French
goods. Mr Macron has launched a crackdown on Islamist extremism in France.

 

Erdogan: Turkey's pugnacious president

Coronavirus is also taking a toll on the Turkish economy - after getting
over the worst of the outbreak in spring and bringing daily cases below
1,000, Turkey is seeing rising infections, like its European neighbours.

 

The central bank's unexpected decision to keep interest rates on hold last
week was aimed at stimulating short-term credit growth, Enis Senerdem of BBC
Turkish reports.

 

But President Erdogan is also a vocal opponent of high interest rates and
many Turkey watchers believe that his influence weighs heavily on central
bank rate decisions, Senerdem says.

 

Selling billions of dollars to defend the lira has depleted Turkey's foreign
exchange reserves. The economy is expected to contract sharply this year.

 

Even Mr Erdogan's warming towards Russia - another big trading partner - has
cooled significantly because of geopolitical rivalry.

 

They are backing opposing sides in Libya and Syria and Mr Erdogan is backing
Azerbaijan in its war to retake Armenian-controlled Nagorno-Karabakh.--BBC

 

 

 

 

Red tape is back post-Brexit, but will it be ready?

For decades, the UK's membership of the EU's single market and customs union
has meant trade with the Continent has been a case of "load and go".

 

As this ends in a few weeks' time, the red tape that once existed on this
trade will return, mainly in electronic form.

 

The sharp end of this is in the software systems for freight now required by
hauliers, exporters and traders.

 

The Association of Freight Software Suppliers (AFSS) is now saying its
members "cannot guarantee" everything will be ready in time for the end of
the Brexit transition period.

 

So this message from the suppliers of the software needed to connect to
government systems is more than just an important warning sign.

 

What exactly is the freight software problem?

For the bulk of UK-EU trade across the English Channel, the government will
use a souped-up version of an older system, called Chief, for the hundreds
of millions of declarations now required.

 

But for cross-Irish Sea trade, the demands of the Northern Ireland Protocol
mean that the new system, Customs Declaration Service (CDS), needs to be
used.

 

This is because it can cope with two different tariffs on each good, and it
can provide the necessary trade surveillance data back to the EU.

 

This is now required even for "trade" within the UK between, say, an English
factory and a Northern Ireland customer.

 

New borders

Some of the biggest retailers in the UK privately say they will not be able
to get this to work in time. Retailers will meet Cabinet ministers Michael
Gove and Brandon Lewis on Wednesday.

 

Although the government says its software is ready, people in the industry
say the systems as a whole are not - and now will not be in time for 1
January.

 

Indeed, they have been saying this for most of the year. Testing on systems
such as this, where no previous declarations were required, would normally
take three to six months, they say.

 

As soon as the government ruled out extending the transition phase in June,
concerns were expressed that a properly tested system would not be possible
by 1 January.

 

This was particularly the case because the details of trading arrangements
were still being negotiated, while many businesses were already in
pandemic-related difficulties. In addition, there are now new systems
requiring truckers to input trade data to access Kent's motorways.

 

HMRC has had to take on the extraordinary task of creating a rolling series
of business pandemic rescue schemes at exactly the same time as creating two
new different borders for goods trade across the Channel and Irish Sea.

 

Today's letter also reflects a business community fear that the government
will try to blame it for any disruption.--BBC

 

 

 

 

Home working reduces creative thought, says Bank economist

Working from home risks stifling creativity and cuts people off from new
experiences, the Bank of England's chief economist has said.

 

Andy Haldane said in a speech that the pandemic had "reshaped our working
lives, our economic contributions and our well-being", but it was unclear
whether this change was for the better.

 

Home working had probably reduced his capacity for creative thought, he
said.

 

Informal chats at work were often more useful than formal meetings, he
added.

 

"If you asked me if I am happier working from home, I genuinely would not
know. I do not miss the commute," Mr Haldane said, in a speech he gave
online to the Engaging Business Summit.

 

"But I feel acutely the loss of working relationships and external stimuli -
the chance conversations, listening to very different people with very
different lived experiences, the exposure to new ideas and experiences.

 

"These losses will grow with time. At some point, they will offset the
benefits of avoiding South West Trains."

 

Mr Haldane said lack of face-to-face contact with colleagues and others
meant "social capital" was being lost or depleted, while "creative sparks"
were being "dampened".

 

"These are real costs and costs which would be expected to grow, silently
but steadily, over time. They weigh on the other side of the ledger when it
comes to assessing the case for home working.

 

"They cast doubt on whether it will lead to the promised land of improved
productivity and greater happiness," he said.

 

Dark tunnel

Mr Haldane said creativity was important because it fostered innovation,
which in turn fuelled economic growth.

 

He said an absence of distraction and noise, made easier for some people by
home working, favoured "cognitive tunnelling" - a state of mind in which the
brain focuses on one thing to the exclusion of all else.

 

But he added: "Home working means serendipity is supplanted by scheduling,
face-to-face by Zoom-to-Zoom. What creativity is gained in improved
tunnelling is lost in the darkness of the tunnel itself.

 

"I imagine some people will have used lockdown to write that creative novel
they always knew was in them. I doubt many will become modern-day classics."

 

Despite Mr Haldane's perceptions about his own creative thought, he has made
some notable contributions to the economic debate during the pandemic.

 

Last month, he warned that pessimistic "Chicken Licken" views about the
economy were in danger of holding back the UK's post-lockdown economic
recovery.

 

"Encouraging news about the present needs not to be drowned out by fears for
the future," he said, comparing negative forecasters to the children's
storybook character who feared the sky would fall.

 

"Collective anxiety is as contagious, and could be as damaging to our
well-being, as this terrible disease."--BBC

 

 

 

BP returns to profit but pandemic weighs on demand

BP returned to profit in the third quarter, but the global coronavirus
crisis continued to hit demand for oil.

 

BP said underlying replacement cost profit, its definition of net income,
was $86m (£66m) from July to September.

 

That was down from $2.2bn a year earlier, but a big improvement on its
massive second-quarter loss of $6.7bn.

 

Chief executive Bernard Looney said that despite a "challenging
environment", the firm was "performing while transforming".

 

He added that despite financial pressures, BP would continue to pay a
dividend to shareholders.

 

In February, BP said it planned sharp cuts in carbon emissions by 2050.

 

The company wants to be "net zero" by 2050 - that is, it wants the
greenhouse gas emissions from its operations, and from the oil and gas it
produces, to make no addition to the amount of greenhouse gases in the
world's atmosphere by that date.

 

It also wants to halve the amount of carbon in its products by 2050.

 

In June, BP announced plans to cut 10,000 jobs after a slump in demand for
oil due to Covid-19.

 

It also forecast lower oil prices for decades to come as governments speed
up plans to cut carbon emissions in the wake of the coronavirus crisis.

 

That same month, it announced it was selling off its petrochemicals business
to Ineos as part of its efforts to become a lower carbon firm.

 

BP said the $5bn deal remained on track and, subject to approvals, was
expected to complete by the end of the year.

 

"Having set out our new strategy in detail, our priority is execution and,
despite a challenging environment, we are doing just that - performing while
transforming," Mr Looney said.

 

"Major projects are coming online, our consumer-facing businesses are really
delivering and we remain firmly focused on cost and capital discipline.

 

"Importantly, net debt continues to fall. We are firmly committed to our
updated financial frame, including the dividend - the first call on our
funds."--BBC

 

 

 

Woolworths High Street 'relaunch' proves a hoax

A tweet announcing the relaunch of UK High Street retailer Woolworths has
gone viral, despite being fake.

 

The Twitter account @UKWoolworths, which has now been deleted, misspelled
the shop's name.

 

And it linked to a website that was not active and had, BBC News has
learned, been registered only hours earlier.

 

Metro, which appears to have been the first mainstream media outlet to
report the fake news, has now corrected its story.

 

Pic'n'Mix-up

Very, the company that owns the local rights to the Woolworths brand,
confirmed it was a hoax.

 

"We own the Woolworths trademark in the UK," a spokesman told BBC News.

 

"The Twitter account UKWoolworths is not connected to the Very group."

 

The original tweet read: "Here to save 2020.

 

"Woolworths is coming back to your High Street, as a physical store.

 

"A couple of legal things to get sorted but we're full steam ahead at
Woolworths HQ.

 

"We want to get this right, so we need your help.

 

"What do you want at your UK #YourWoolworths?"

 

Ray Walsh, scam expert at virtual private network (VPN) company ProPrivacy,
said: "It's not unsurprising that huge numbers of people around the UK have
fallen for fake news surrounding the reopening of Woolworths.

 

"The brand was a much-loved part of UK shopping history.

 

"And many have fond memories of the retailer.

 

"But the Twitter account spreading the hoax was full of typos and spelling
mistakes.

 

"This alone should have been enough to make it obvious that something
extremely fishy was going on.

 

"The important take away from all of this is how social engineering and
nostalgia can be used to trick people.

 

"And it serves as an important reminder of why people need to think
carefully when using the internet to avoid falling for scams and phishing
attacks."

 

Woolworths closed its doors for good in 2008, owing £385m.

 

The shops, famous for their Pic'n'Mix sweets, also sold kitchen and garden
equipment and toys.

 

One of the UK's oldest chains it had 815 stores, many of which were taken
over by shops such as Wilko and Poundland.

 

The Woolworths name remains in use in Australia, New Zealand and South
Africa as an unrelated retail brand.

 

This was the fake news story 2020 needed - and it might seem less important
than harmful coronavirus conspiracy theories or political disinformation,
which have spread on wildfire on social media in recent months.

 

But it does teach us some important lessons about how and why disinformation
spreads on social media.

 

We tend to share posts that we want to be true or that confirm our biases -
who isn't missing Woolworth's pic'n'mix, especially during a pandemic?

 

That partly explains why the tweet from the fake Woolworth's account - which
kept spelling the name of the chain wrong - went so viral.

 

But it also highlights the need for verification - and the role of the media
in amplifying disinformation.

 

A quick ring around would have confirmed that Woolworth's is not re-opening
- but that did not stop a number of news outlets covering this fake Twitter
account.--BBC

 

 

 

HSBC says it could charge for current accounts

Europe's biggest bank, HSBC, has said it could start charging for "basic
banking services" in some countries after it reported a 35% fall in
quarterly profits.

 

It said it was considering charging for products such as current accounts,
which are free to UK customers.

 

The bank said it was losing money on a "large number" of such accounts.

 

A spokesman later told the BBC it was committed to continuing to provide
free "basic bank accounts" in the UK .

 

But they added: "We always keep under review the pricing for our standard
current accounts and associated services."

 

Very few banks charge for standard bank accounts, but experts say this could
change if the UK falls into negative interest rates due to the pandemic.

 

That would see the Bank of England take interest rates below zero to help
boost consumer spending and revive the economy.

 

HSBC reported a 35% fall in pre-tax profit during the third quarter of the
year to $3.1bn (£2.3bn), while revenues fell 11%.

 

Along with other banks, it has seen earnings hit amid an environment of rock
bottom interest rates, and so is now considering other ways of boosting
revenues.

 

The lender also said it would accelerate its restructuring plan, cutting
costs further than previously suggested.

 

But HSBC, which is in the midst of cutting 35,000 jobs, did not say whether
more jobs would now go. It said it would provide details on the plan with
its full-year results next February.

 

'Promising results'

Despite the tough environment, HSBC chief executive Noel Quinn said there
were some bright spots.

 

"These were promising results against a backdrop of the continuing impacts
of Covid-19 on the global economy," he said.

 

"I'm pleased with the significantly lower credit losses in the quarter, and
we are moving at pace to adapt our business model to a protracted low
interest rate environment."

 

HSBC had set aside between $8bn and $13bn for bad loans as it expects more
people and businesses to default on their repayments because of the Covid-19
pandemic.

 

However, it now says its expenses are likely to be at the lower end of that
range.

 

In September, HSBC's share price fell to its lowest level since 1995 amid
allegations that the bank had allowed fraudsters to transfer millions of
dollars around the world, even after learning of the scam.

 

The bank has also faced recent criticism from the US Secretary of State Mike
Pompeo for supporting China's controversial security legislation in Hong
Kong.

 

Even before the Covid-19 pandemic hit, HSBC was restructuring with a plan to
cut $4.5bn (£3.6bn) of costs by 2022.

 

At its peak, the bank employed more than 300,000 people, but since the
global financial crisis, the bank has trimmed its operations
significantly.--BBC

 

 

 

Nigeria: France, Germany, 104 Others Back Okonjo-Iweala for WTO Job

The 27-member European Union have backed Nigeria's former finance minister,
Dr. Ngozi Okonjo-Iweala, in her bid to become the first African and first
female director-general of the World Trade Organisation (WTO).

 

The EU-member states are France, Germany, Austria, Belgium, Bulgaria,
Croatia, Cyprus, Czech, Denmark, Estonia, Finland, Greece, Hungary, Ireland,
Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, and Sweden.

 

The latest support for Okonjo-Iweala's candidacy brings the number of
countries officially endorsing her to 106 out of the 164 states that
comprise the WTO.

 

The 55-member African Union had earlier officially supported the former
World Bank director over her sole remaining opponent, Yoo Myung-hee of South
Korea.

 

Okonjo-Iweala had also won the goodwill of a group of Caribbean and Pacific
States as well as others from Asia.

 

 

The European Parliament had endorsed Okonjo-Iweala to head the WTO, saying
she is well-equipped.

 

The Parliament had subsequently written the EU to support the Nigerian
candidate.

 

When EU-member states convened on Monday, they failed to find a consensus
around the choice but the EU representatives reconvened and agreed to back
Okonjo-Iweala, according to AFP news agency.

 

The WTO's consultation process ends today and the new leader is expected to
be named in November but an EU official said the EU will publicly announce
its support for the 66-year-old economist today.

 

The final winner between the two women will replace Brazil's Roberto Azevedo
and former director-general of the 25-year-old trade organisation.

 

The initial pool of eight candidates for the WTO's top post, which has been
whittled down over two rounds of consultations, had included three Africans
- Nigeria, Egypt and Kenya.

 

The third and final round of consultations seeking to establish consensus
around one candidate is due to end today, with the announcement due in early
November.-This Day.

 

 

 

 

Nigeria Receives U.S.$26.9bn Foreign Support in Six Years - Minister

The funds came from the UN, EU, USA, China, Japan and others.

 

Clement Agba, the Minister of State for Budget and National Planning, says
Nigeria has received $26.94 billion Development Assistance funds from
International Donors between 2015 and 2020.

 

Mr Agba made this known on Tuesday in Abuja while briefing the House of
Representatives Committee on Civil Society and Development Partners on Donor
Funds Receipts, Transfers and Disbursement to Government Agencies, Civil
Society and Non-Governmental Organisations in Nigeria.

 

Breaking down the figure, Mr Agba said that the amount comprised $ 2.34
billion received in 2015, $1.15 billion gotten in 2016 and $ 774.93 million
collected in 2017.

 

The minister said that $22.02 billion was obtained in 2018, while $655.64
million was received in 2019 and $5.64 million got in 2020.

 

According to him, these donations come from the European Development Fund
(EDF) and the United Nations Development Systems (UNDS).

 

 

He explained that some of the funds also came from China through the
Bilateral Agreement between the Government of Nigeria and the Peoples
Republic of China signed since1972.

 

Mr Agba said some funds came from Japan Activities in Nigeria via the Japan
International Cooperation Agency (JICA), and Korean International
Cooperation Agency (KOICA).

 

He said that others came from the Department for International Development
(DFID), United States Agency for lnternational Development (USAID) and the
German International Cooperation (GIZ).

 

According to him, the ministry does not receive donor funds, hence cannot
transfer or disburse what is not received.

 

He said that Nigeria does not currently qualify for budget support because
it is not classified as very poor but as a lower middle-income country that
is only qualified for projects/programmes support.

 

"The implication of this is that Donors do not give us the funds for
management, rather Donors work with the sectoral stakeholders to fund the
project directly after identifying the needs by the MDAs/States in line with
the Paris Declaration on Aid Effectiveness.

 

 

"For the purpose of clarification, the Federal Ministry of Finance, Budget
and National Planning is responsible for coordinating Nigeria's multilateral
and bilateral economic cooperation including development aid and technical
assistance programmers by signing of cooperation agreements.

 

"These agreements are signed after obtaining Power of Attorney from Ministry
of Foreign Affairs; the ministry also facilitates the implementation of
programmes and projects as well as carrying out monitoring and evaluation.

 

"In carrying out these functions, the role of the ministry is to coordinate
the Bilateral and Multilateral Institutions, Non-Governmental Organisations
(NGOs), International Non-Governmental Organisations (INGOs), as well as
Civil Society Organisations (CSOs).

 

 

"Interventions in these identified areas are done directly in collaboration
with the relevant Ministries, Departments and Agencies (MDAS) as well as
States and Local Government Areas through their implementing Agencies.

 

"In view of the above, procurement is carried out directly by the Donors,"
he said.

 

In his remarks, the Chairman of the Committee, Kabiru Idris (APC-Kano) said
that the committee had received several petitions, alleging
misappropriation, misuse, and diversion of donor funds.

 

He said that petitions on falsification of performance reports for the
purpose of obtaining more funds from Donor Agencies/Organisations had also
reached the committee.

 

The lawmaker said that the committee had also received a referral from the
House of Representatives, mandating it to investigate the operations of
Non-Governmental Organisations (NGOs) so as to ascertain their sources of
funding.

 

He said that the committee is expected to find out the bases of operations
and locations of NGOs following a deliberation on a motion titled "Need for
Special Intervention in the Protracted Situation in the Country" by the
green chambers.

 

"It was in the light of the foregoing that we wrote you two letters:

 

"To brief the committee on how the Department of International Corporation
has been carrying out its responsibilities of managing Multilateral and
Bilateral Economic Cooperation including Development Aid and Technical
Assistance Programmes.

 

"Also Donor funds received by Government Agencies and NGOs from 2015 to date
and the operations of NGOs particularly those operating in the Northeast, so
as to ascertain their sources of funding, their bases of operations and
their locations," he said.

 

The chairman said that the information gathered from the interaction would
enable the Committee to effectively carry out its oversight mandate.

 

Mr Kabir said that the committee would embark on further engagements with
NGOs, both local and international for more clarifications.-Premium Times.

 

 

 

 

Nigeria: Factcheck - Are 63% Young Nigerians Jobless or Underemployed?

VERDICT: Partly true. The claim that 63 percent of Nigerians under 30 are
either jobless or underemployed is partly true. Nigeria's Labour Force
Statistics for the second quarter of 2020 shows that 34.9 percent of
Nigerians aged 15 to 34 years are jobless while 28.2 percent of Nigerians
within the same age bracket are underemployed. This means that 63.1 percent
of Nigerians within the same age bracket are either jobless or
underemployed. However, not all of them are under 30.

 

Full Text

 

Ian Bremmer, using his handle, @ianbremmer, claimed that 63% of Nigerians
under 30 are jobless or underemployed.

 

Bremmer added that the high rate of joblessness and underemployment in
Nigeria helps to "explain why social unrest there right now is out of
control."

 

 

Profile of youth unemployment, underemployment

 

A report by the National Bureau of Statistics (NBS) shows that joblessness
in Nigeria surged to 27.1 percent in the second quarter of 2020.

 

Bloomberg reported that it was the highest in at least a decade.

 

The 27.2 percent compares with 23.1 percent in the third quarter of 2018,
which was the last period the agency released labor-force statistics.

 

"For years the population growth rate in Nigeria has outpaced economic
output, making it the country with the highest number of poor in the world.
With a fertility rate of five children per woman, Nigeria is expected to be
the third most populous country in the world by 2050 with over 300 million
people, according to the United Nations," Bloomberg reported.

 

The research team of Nairametrics reported that 21.7 million Nigerians
remain unemployed at the end of the second quarter of 2020.

 

 

"The data also reveals the worst-hit are Nigerian youths with over 13.9
million currently unemployed," the team reported.

 

However, the Nigerian government believes that there are still employment
opportunities in the labour force, despite the huge unemployment and
underemployment rates.

 

For instance, the Director-General of the Industrial Training Fund (ITF),
Sir Joseph Ari, recently said that in spite of Nigeria's high unemployment
rate, about 925 technical and Information Communication and Technology (ICT)
jobs have been difficult to fill.

 

Ari said a major challenge for the government has been the dearth of
Nigerians with requisite skills even after the National Skills Gap
Assessment (NSGA) has created openings in six priority sectors of the
economy, according to a study conducted by the ITF in collaboration with the
United Nations Industrial Development Organisation (UNIDO).

 

He stressed that the survey and others conducted by several organisations
attributed the shortfall to a mismatch between labour supply and
requirements of the job market.

 

 

However, how true is the claim that 63 percent of Nigerians under 30 are
jobless or underemployed?

 

Verification

 

Nigeria's Labour Force Statistics for the second quarter of 2020 published
by the National Bureau of Statistics (NBS) shows that at the end of the
second quarter of 2020, the unemployment rate among young people (15-
34years) was 34.9 percent, up from 29.7 percent.

 

The NBS is Nigeria's apex statistical agency.

 

The latest Labour Force Statistics also revealed that the rate of
underemployment for the same age group rose to 28.2 percent from 25.7
percent in the third quarter of 2018.

 

"These rates were the highest when compared to other age groupings," NBS
stated.

 

Analysis of the data showed that the summation of the 34.9 percent
unemployment rate and the 28.2 percent underemployment rate results in 63.1
percent unemployment and underemployment rate.

 

However, the 63.1 percent joblessness and underemployment rate does not
cover only young people under 30 years.

 

Conclusion

 

The claim that 63 percent of Nigerians under 30 are either jobless or
underemployed is partly true. Nigeria's Labour Force Statistics for the
second quarter of 2020 shows that 34.9 percent of Nigerians aged 15 to 34
years are jobless while 28.2 percent of Nigerians within the same age
bracket are underemployed. This means that 63.1 percent of Nigerians within
the same age bracket are either jobless or underemployed. However, not all
of them are under 30.

 

The researcher produced this fact-check per the Dubawa 2020 Fellowship
partnership with Daily Trust to facilitate the ethos of "truth" in
journalism and enhance media literacy in the country.-Daily Trust.

 

 

 

Nigeria: Misrepresentation of 5G May Delay the Approval in Nigeria - NCC

The misrepresentation of 5G technology in Nigeria may delay the
implementation of the new technology in the country.

 

The executive vice-chairman, Nigeria Communications Commission, (NCC), Umar
Danbatta said this in Abuja on Tuesday.

 

The deployment of 5G in Nigeria has generated a lot of controversies.

 

Many Nigerians had claimed that the technology is already in the country and
was dangerous, but the NCC has denied rumours that the technology was in use
in some parts of the country.

 

In November 2019, NCC approved trials for 5G for a period of three months.

 

The trial has been concluded and installation decommissioned, it said, while
licences have not been issued yet.

 

The fifth generation of mobile technology is an improvement on the current
4G technology being used, but with enhanced capabilities.

 

The technology which provides the platform for new and emerging technologies
such as the Internet of Things, artificial intelligence and Big Data will
improve the way people live and work.

 

 

"A lot of falsehoods and misinformation have been peddled both on online and
traditional media outlets about the health and safety implications of
deploying 5G technology," he said.

 

A recent landmark economy study conducted by Qualcomm said 5G will improve
the global economy and drive growth exponentially.

 

5G' s full economic effect will likely be realised across the globe by 2035,
supporting a wide range of industries and potentially enabling up to $13.2
trillion worth of goods and services. This impact will be much greater than
the current 4G network.

 

The NCC head said that 5G when fully deployed will provide increased speed
and bandwidth as well as provide deeper coverage to reach people in rural or
challenging locations.

 

In addition, 5G will provide strong security for the various sectors of
government and private organisations.

 

"Due to its sheer scale and scope, the ITU predicts 5G will accelerate the
achievements of all the 17 Sustainable Development Goals (SDG's) from
affordable and clean energy to zero hunger.

 

"Many Nigerians including citizens in more civilised countries were hooked
on the notion that the introduction of 5G technology was the reason behind
the spread of the novel COVID-19 pandemic."

 

"This misconception was even made worse because those saddled with the
responsibility of informing, educating and enlightening the average Nigerian
telecom consumers were also bereft of the knowledge of this new technology
and hitched a ride on the bandwagon of doubters."-Premium Times.

 

 

 

Mozambique: EDM Calls for Urgent Intervention in Substations

Maputo — Mozambique's publicly owned electricity company, EDM, has called
for urgent intervention in at least 12 of the 37 electrical substations
ensuring energy supply to the southern provinces of Maputo, Gaza and
Inhambane, to prevent overloading the equipment, according to a report in
Tuesday's issue of the Maputo daily "Noticias".

 

An assessment recently conducted by the company has also concluded that six
high voltage transmission lines have reached the limit of their capacity.
Intervention in the sub-stations and transmission lines is needed to avoid
early ageing or even a collapse.

 

However, EDM believes the number of substations at the limit of their
capacity in the south will soon be reduced to just four.

 

 

In the country's central region, EDM has no reports of overloading at the 32
existing substations, five of which are under private ownership, although
the Matambo-Tete, and Dondo-Muhava power lines, in Tete and Sofala provinces
respectively, are reaching the limits of their capacity .

 

However, in the context of the target to achieve universal access to
electricity, the company hopes to connect about 362,000 new consumers in the
central region in 2012, a move that might lead to overloading in eight
substations.

 

EDM says that successful implementation of power grid strengthening projects
will help improve the situation, but challenges will remain at two
substations in Chimoio and one at Munhava in Beira.

 

For the country's northern provinces (Cabo Delgado, Niassa and Nampula), the
company plans to connect 250,000 new consumers, within the next two years, a
move that will increase the current demand for power and thus lead to
overloading of seven substations.

 

Even with projects in the region to strengthen the power grid, there will
still be a need to increase the capacity of power lines, in order to prevent
power restrictions and ensure quality electricity supply to Nampula city as
well as the port of Nacala and the districts of Monapo, Mozambique Island
and Mussoril.

 

 

Malawi: Chakwera Begs for Patience - Critics Urge Malawi Leader to Check
Emerging Rubble

State House has said President Lazarus Chakwera understands that some
Malawians are grumbling over the pace at which the Tonse Alliance
administration is tackling critical issues but is pleading for patience to
'clear the rubble' and fix the country's economy.

 

Presidential Press Secretary Brian Banda said this on Monday at Sanjika
Palace in Blantyre during the weekly briefings by the State House media team
led by the President's spin doctor Sean Kampondeni.

 

Banda said the nation needs to be patient as Chakwera is "clearing the
rubble" in government.

 

"The President understands the people's impatience out there. But [the
change] cannot happen overnight," said Banda.

 

He said the issue of cleaning up the public service is being handled at
Office of President and Cabinet (OPC) level, ministerial level and at the
level of the boards.

 

"You will notice that we did not have boards until recently and boards are
crucial in initiating the much needed change that everyone is dying for.

 

 

"Things are happening and the President and his vice are committed to seeing
the law take its course on each and every one who broke the law. Be assured
that the President is leaving no stone unturned in his efforts of clearing
the rubble, so let us all be patient," Banda said.

 

Banda continued:"I am sure you have seen some PSs being sent packing."

 

The presidential spokesperson said it is not vengeance that some officials
aligned to the former ruling Democratic Progressive Party are being removed
from positions in government institutions.

 

"You appreciate that everything has to be done in accordance with the law, I
want to emphasise that this is not vengeance; that is not the President's
intention," he stressed.

 

Critics say while trying to be seen to be fighting suspected corruption
perpetrated by the predecessor regime, it will also be prudent that Chakwera
manage emerging corruption perceptions within his rank and file of his
administration.

 

 

Since ascending to power following the court-ordered June 23 fresh
presidential elections, there are perceptions of corruption in the
Chakwera-led administration which commentators say need to be instantly
checked and tamed.

 

It has also been observed that while attempting to correct irregular
appointments and recruitment of public officers, it will also be critical
that the same measure is applied across the board as some officers are being
appointed in the very manner others removed were recruited - which is like
moving in circles.

 

Critics argue that authorities should stand on moral high ground to seek
equity with clean hands.

 

But Banda said the Tonse Alliance administration was firm on the rule of law
and that it will not shield anyone, even those in power when they are found
flouting the law.-Nyasa Times.

 

 

 

 

 

 

 


 


 


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.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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