Major International Business Headlines Brief::: 11 September 2020

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Major International Business Headlines Brief::: 11 September 2020

 


 

 


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

 


 

 


 

 

ü  Peloton sales surge as virus boosts home workouts

ü  Google and Twitter to block election misinformation

ü  Citi names Jane Fraser new chief in Wall Street first

ü  British Airways owner IAG to cut more flights

ü  Coronavirus: Lloyd's of London expects to pay out £5bn in claims

ü  Trump says there will be no extension of TikTok deadline

ü  China's expanded export ban poses fresh challenge to global tech industry

ü  Shares struggle to shake off bearish mood as U.S. tech giants fall anew

ü  Oracle revenue, profit beat as cloud business benefits from remote work

ü  Africa Has the Largest Retail Crypto Volumes Below $10, 000 Globally

ü  Mastercard Underpins its Commitment to Driving Economic Empowerment for All in Africa

ü  FirstRand’s full-year headline earnings plunge 38%

ü   

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 


Peloton sales surge as virus boosts home workouts

Peloton, which won an early celebrity fanbase for its exercise bikes and remote workout classes, has seen demand surge during the pandemic.

 

The firm's global membership base hit 3.1 million at the end of June, more than double a year earlier, as gym closures due to Covid-19 increased demand for at-home workouts.

 

The jump in sign-ups lifted revenue to $607m (£474m), up 172% year-on-year.

 

But it has also strained supply, prompting lengthy waits for equipment.

 

The firm had said it was slashing prices for its existing treadmill and bike, cutting the cost of the bike from $2,245 to $1,895 in an effort to make their products more accessible.

 

The move coincided with the launch of new, more expensive, versions of the same pieces of equipment.

 

But the firm, which relies on purchases of its machines fitted with touchscreens for most of its sales, said it did not expect delivery delays to improve much before the end of the year.

 

"Demand... remains strong and member engagement remains elevated, despite improving weather and the gradual reopening," chief executive John Foley said on an analyst call after the firm shared its quarterly results on Thursday.

 

Peloton said the number of "connected fitness" subscribers, who access its remote classes via one of the firm's machines, jumped to more than 1.09 million at the end of June, up 113% in comparison with the same period last year.

 

Those members are also working out more - averaging more than 24 workouts per month, compared to 12 one year ago.

 

The growth propelled the firm to its first quarterly profit of $89m, versus a loss of $47.4m last year.

 

Mr Foley told analysts he was not worried about demand subsiding after the pandemic, given the opportunities for global expansion.

 

Peloton said it expected the number of subscribers to exceed 2 million over the next 12 months and forecast revenue for its next financial year of at least $3.5bn.

 

The results shared by the firm exceeded analyst expectations, prompting shares to rise 7% in after-hours trade.--bbc

 

 

 

 

Google and Twitter to block election misinformation

Google and Twitter have said they are clamping down further on misinformation online ahead of the US elections.

 

Messaging platforms expect a flood of false claims and misleading posts ahead of the November vote.

 

Twitter said it plans to more aggressively label and remove election-related tweets that are inaccurate.

 

Search engine Google said it would screen more auto-complete results to avoid voters being misled, particularly over reports claiming an early victory.

 

One of the concerns is that the widespread use of mail ballots in the US election due to the coronavirus pandemic could cause significant delays in tallying results. Experts fear this could allow misinformation to gain traction.

 

On Thursday, Google said that incorrect information about election results would not show up in searches.

 

Twitter's changes could also affect tweets claiming victory before election results have been certified, along with misleading posts about ballot tampering.

 

Social media firms have been under pressure to combat misinformation after US intelligence agencies determined Russia used their platforms to meddle in the 2016 presidential election.

 

"We will not permit our service to be abused around civic processes, most importantly elections," Twitter wrote in its blog. "Any attempt to do so - both foreign and domestic - will be met with strict enforcement of our rules, which are applied equally and judiciously for everyone."

 

On Friday, Microsoft warned that hackers with ties to Russia, China and Iran were attempting to snoop on people and groups involved with the US 2020 presidential election.

 

The US tech firm said the Russian hackers who breached the 2016 Democratic campaign were again involved.

 

Russian network

Last week, Facebook said it had dismantled a small network of accounts and pages that were part of a Russian influence operation.

 

The company said the campaign was linked to Russia's Internet Research Agency (IRA), an organisation close to the Russian government and accused of interference in the 2016 US election.

 

Twitter also suspended five accounts from the same network. The operation centred around PeaceData, which claimed to be a non-profit news website in English and Arabic.

 

The messaging platform has clashed in recent months with President Donald Trump, who has posted frequently about potential fraud in the coming election while criticising Twitter for flagging his posts.

 

Search results

In Google's changes to auto-complete results, which predict what users are searching for, it will remove predictions "that could be interpreted as claims for or against any candidate or political party".

 

It will also remove the function that attempts to predict and complete search terms when people look up the status of voting locations, voting requirements or methods. Users will still be able to search for this information however.

 

Last week, Facebook said it was creating a label for posts by candidates or campaigns that made premature claims of victory. It also said it would stop accepting new political ads in the week before Election Day.--bbc

 

 

 

 

Citi names Jane Fraser new chief in Wall Street first

Citigroup has named a woman to be its new chief executive in a first for a Wall Street bank.

 

Briton Jane Fraser, its current president and head of global consumer division, is to become its new boss when current chief Michael Corbat retires in February.

 

He is stepping down after 37 years at the bank, including eight as leader.

 

It comes as the male-dominated world of US finance faces pressure to diversify its ranks.

 

Scotland-born Ms Fraser has worked at Citi for 16 years, serving in her current role since 2019. She oversees business in 19 countries and previously led its Latin America division.

 

Seen as a rising star, she was recently considered for the role of chief executive at Wells Fargo, another top US bank.

 

The chair of Citi's board of directors, John Dugan, said Ms Fraser would take the bank "to the next level".

 

"She has deep experience across our lines of business and regions and we are highly confident in her," he said.

 

Firms with more female executives 'perform better'

Last year, Royal Bank of Scotland named Alison Rose as its first female chief executive, making her the first woman to run any of the big four banks in the UK.

 

But just 31 women held the top spots at major American companies listed on the S&P 500 index at the end of 2019, none of which were banks.

 

At a congressional hearing last year, the heads of seven of America's biggest banks, including current Citi boss Mr Corbat, were questioned about the lack of diversity and asked if they believed they would be succeeded by a woman or person of colour. None said yes.

 

At Citi, Ms Fraser has frequently been charged with turning around troubled parts of the bank, the fourth largest in the US. She worked in its mortgage division following the financial crisis and was put in charge in Latin America after a scandal in its bank in Mexico.

 

She is poised to take charge as the bank grapples with the economic fallout of the pandemic. In the most recent quarter, Citi's profits plunged 73% as it set aside more than $7bn to cover potential losses.

 

Ms Fraser, whose compensation was $12.5m (£9.7m) last year, has said being a good leader means setting a vision, having the courage to make "tough calls", and asking questions.

 

'You cannot have it all'

Born in St Andrews, Scotland, she has degrees from Harvard Business School and Cambridge University. The 53-year-old started her career at Goldman Sachs in London, joining Citi after rising to be a partner at consulting giant McKinsey.

 

She has said she moved to the US because of the opportunities she saw for women there and spoken about confronting machismo as a female executive in Latin America

 

A married mum of two, she has also addressed work-life balance, telling broadcaster CNN in 2014: "You cannot have it all at the same time. You can have it all, spread over decades. I think of my life in different chunks. When the kids were little, I needed to be around more, but it's different now."

 

However, in a 2018 interview she denied aspiring to the top spot.

 

"I look forward to seeing a woman being the first CEO of a Wall Street firm whoever that may be," she said. "I've never had the ambition to be the CEO of Citi or any other organization." But she added: "Things can change over time."--bbc

 

 

 

British Airways owner IAG to cut more flights

British Airways owner IAG is cutting more flights over the next three months as it adjusts to the continuing collapse in demand for air travel.

 

IAG, which also runs Aer Lingus and Iberia, said quarantine restrictions meant capacity this autumn would be 60% below 2019 levels.

 

The group said it had seen a "delayed recovery", and did not expect business to return to 2019 levels until 2023.

 

IAG also said BA had reached the outline of a jobs agreement with Unite.

 

The union has been in a bitter dispute with BA over redundancies and pay cuts for cabin crew. BA has already reached a separate deal with pilots.

 

The airline, which is aiming to shed up to 13,000 jobs, said that by the end of August some 8,236 employees had left the business, "mostly as a result of voluntary redundancy".

 

Unite stressed its cabin crew members still needed to approve the plan through a ballot and that negotiations remained ongoing.

 

"Unless and until Unite members agree to all and any proposals, no settlement has been reached and it is unhelpful and misleading for British Airways to suggest otherwise," said assistant general secretary Howard Beckett.

 

Bookings slow

IAG's decision to cut more flights than planned follows its previous forecast of a 46% reduction for the October-to-December period compared with the same quarter last year.

 

It said it had seen an "almost complete cessation of new booking activity" in April and May due to the pandemic, but the easing of country lockdowns boosted ticket sales in June.

 

However, since July there had been an "overall levelling off in bookings" as the UK and other European countries re-imposed quarantine requirements for travellers returning from countries such as Spain.

 

On Tuesday, EasyJet revealed it will have flown "slightly less" than the 40% of pre-coronavirus pandemic capacity it previously said it would operate between July and September following the government's decision to impose quarantine restrictions for seven Greek islands.

 

Boris Johnson appeal

Airlines are among the firms hardest hit by the impact of the pandemic. British Airways plans to cut up to 13,000 jobs due to the crisis, while EasyJet and Virgin Atlantic are slashing 4,500 roles each.

 

Operators say the UK's travel quarantine policy - which requires visitors to high risk countries to isolate on their return - is crushing demand and want the government to back testing at airports instead.

 

UK government sources have indicated that they are looking at system where the two tests would be eight days apart to further minimise the risk of "false negative" results.

 

They are yet to approve the idea, however, while the prime minister last week warned testing at airports could give a "false sense of security".

 

In a joint letter to Prime Minister Boris Johnson on Thursday, Airlines UK, whose members include BA, Virgin, Ryanair and EasyJet, called for an extensions of the jobs furlough scheme and air passenger duty waiver.

 

"Our industry is in crisis," the letter said. "In sum, we ask you to act urgently to implement a programme of recovery for our sector."

 

Raising money

IAG also announced on Thursday that it was tapping shareholders for €2.7bn (£2.5bn) to help shore up its finances.

 

The company said the money would be used to reduce debt and help it withstand a prolonged downturn in travel.

 

Under the fundraising, existing investors will buy new shares at a deeply discounted price - 36% below the closing price on Wednesday.

 

The group's largest shareholder, Qatar Airways, which has a 25.1% holding, has said it will buy its full entitlement.

 

Details of the rights issue, which was announced in July, come two days after new chief executive Luis Gallego took over from long-time boss Willie Walsh.--bbc

 

 

 

Coronavirus: Lloyd's of London expects to pay out £5bn in claims

Insurance market Lloyd's of London has said it expects to pay out up to £5bn for coronavirus-related claims.

 

Its chief executive John Neal said the first half of the year had been "exceptionally challenging".

 

Insurers around the world have paid out on event cancellation, travel, trade credit and business interruption policies due to the virus.

 

However, there are court cases continuing to try to get some insurers to pay out for Covid-related losses.

 

The Lloyd's of London insurance market, whose results are an aggregate of its more than 90 syndicate members, said it would pay out £2.4bn in pandemic-related claims in the first half, after reinsurance recoveries.

 

It reported a half-year loss of £400m compared with a £2.3bn profit in the first half of 2019.

 

While coronavirus-related payouts could be up to £5bn, Lloyd's reinsurance covers £2bn of that amount.

 

But losses due to the pandemic could stretch into future years, chairman Bruce Carnegie-Brown said. "Nobody knows when it started, we certainly don't know when it's going to end."

 

'Catastrophic damage'

Chief executive John Neal said: "The first half of 2020 has been an exceptionally challenging period for our people, our customers, and for economies around the world.

 

"The pandemic has inflicted catastrophic societal and economic damage calling for unparalleled measures to stifle the spread of the virus, and to get businesses and economies back on their feet."

 

Insurers around the world have been hit by the cost of the coronavirus pandemic, although many businesses that have tried to claim have found the virus is not covered by their policies.

 

In July, the Financial Conduct Authority (FCA) brought a UK case to try to bring clarity as to whether business interruption policies cover Covid-19.

 

Coronavirus: 'We've spent £10,000 on invalid insurance'

Coronavirus: Lloyd's of London says claims to be biggest since 9/11

Mr Neal conceded on the BBC's Today programme that £5bn was not that big a payout considering the scale of the pandemic.

 

"It's a real issue, isn't it, when you look at systemic and complex risk, whether it's business interruption, or cyber, or climate," he said.

 

"And that's why we've been very engaged with government to say: 'Look, [this is] what can we do as an industry, and what can you do, to ensure that businesses and people are better protected when these events come along'."

 

Mr Neal said the court judgement on the FCA case was due next Tuesday, and that would be "good for customers, and good for the industry, so everyone knows exactly where they stand as to what is covered and what isn't covered".

 

He said that while there were also court cases in the US to try to determine whether businesses are covered for the pandemic, the risks to insurers of an unfavourable ruling is "in the hundreds of millions, not the billions".

 

He added: "The reality is, and it's unfortunate, the vast majority of policies do not provide cover for this type of loss, and we're as bothered by that as anything, to try and make sure that next time around, whatever the event, customers have had the opportunity to buy the right products and services."

 

Impact on premiums?

Industry body the Association of British Insurers (ABI) said that Covid-19 had been "an unprecedented event", not just for the UK insurance market, but for everyone in the UK.

 

"Global pandemics are by their nature very rare, unlike for natural disasters like bad weather, such as storms and floods, which are usually insured against," an ABI spokesman said.

 

He said that while many businesses will not have taken out policies that cover Covid-19, the trade body still expects the UK insurance industry to pay out more than £900m for coronavirus-related claims, and £275m to travellers forced to cancel travel plans.

 

It is unclear whether or not this would feed through to consumers having to pay higher premiums across the board.

 

"The UK insurance market remains a competitive one, with individual insurers setting their premiums to reflect their own exposure and level of claims paid. These will naturally vary between individual providers," he said.---bbc

 

 

 

 

Trump says there will be no extension of TikTok deadline

WASHINGTON (Reuters) - President Donald Trump said on Thursday the deadline set for Chinese company ByteDance to sell its popular short-video app TikTok’s U.S. assets would not be extended.

 

“It’ll either be closed up or they’ll sell it,” Trump told reporters before leaving for Michigan. “There will be no extension of the TikTok deadline.”

 

TikTok did not immediately respond to a request for comment.

 

ByteDance has been looking to pick a buyer so it can finalize a deal by mid-September and comply with Trump’s order to divest TikTok’s assets.

 

TikTok is best known for videos of people dancing, which go viral among teenagers. But U.S. officials have expressed concern that information on those who use the platform could be passed to Beijing. TikTok has said it would not comply with any request to share user data with the Chinese authorities.

 

Republican Senator Josh Hawley, a close ally of Trump, told Reuters earlier on Thursday he also did not support an extension of the deadline.

 

Hawley said he was not supportive of an outcome that did not include a full sale.

 

Earlier this month, Reuters reported that TikTok’s prospective buyers were discussing four ways to structure an acquisition from ByteDance, which include buying the app’s U.S. operations without key software.

 

“I’m sure there are any number of backdoors that are built into the code and of course ByteDance knows exactly what they are, so there needs to be a clean, clear, total separation,” Hawley said.

 

 

 

China's expanded export ban poses fresh challenge to global tech industry

SHANGHAI (Reuters) - The latest additions to China’s list of banned technology exports could upset a broad range of industries and raise the possibility that some global tech giants might have to split off their Chinese operations, legal experts said.

 

 

The new list of technologies banned from export announced on Aug. 28 came as an unwelcome surprise to an industry already grappling with the uncertainty posed by trade tensions between China and the United States.

 

The move was initially seen as a means of giving Beijing a say in any sale of video app TikTok, but advisers to Chinese and foreign firms say the potential consequences go much further.

 

“The rules were a surprise to many in the market, and there is a lot of tension in the tech space at the moment,” said Alex Roberts, a corporate counsel at the Shanghai office of law firm Linklaters.

 

In addition to recommendation algorithms such as those used by ByteDance-owned TikTok, the new list of “partially restricted exports” includes drone and cybersecurity technology, voice recognition software, and handwriting scanning software.

 

The revisions could also affect a bevy of multi-national companies that conduct research and development inside China, adds Nicolas Bahmanyar, cybersecurity senior consultant at LEAF law firm in Beijing.

 

“It’s very probable that a company with R&D centres in China are going to face a choice - keep their R&D centre in China, just for China, or leave China so they can use the tech they develop anywhere in the world,” he said.

 

The Ministry of Commerce was quick to respond to speculation that the new rules were aimed mainly at TikTok, saying they were not targeted at any one company.

 

Lawyers that have looked closely at the changes say their broad scope means they could hit a wide range of companies across different business sectors.

 

They could change the thinking of companies such as Microsoft MSFT.O, consumer drone manufacturer SZ DJI Technology Co Ltd, video streaming service Zoom Video Communications ZM.O, and Tencent Holdings 0700.HK, which exports games worldwide and has a fast-growing overseas cloud-service business.

 

A Tencent source, which has a slew of overseas subsidiaries and invested companies, said the company was waiting for clarification on what the rules would mean for technology-sharing with these units.

 

“In general it will impact Chinese companies’ overseas businesses, mainly involving those that provide cross-border services,” said Raymond Wang, managing partner at Beijing law firm Anli Partners.

 

Zoom, for example, employs roughly 500 people in China as engineers working on product development, according to its prospectus. Microsoft houses Microsoft Research Asia in Beijing, which has been the origin of a number of advances in AI.

 

Zoom and DJI declined to comment. Microsoft and Tencent did not respond to Reuters’ requests for comment.

 

“It is generally clear from the market reaction that there is some thinking to be done by numerous businesses with operations in mainland China,” said Roberts of Linklaters.

 

 

 

Shares struggle to shake off bearish mood as U.S. tech giants fall anew

TOKYO (Reuters) - Asian shares struggled to stem a bearish mood on Friday after U.S. big tech firm shares fell again overnight on growing doubts about U.S. stimulus and worries about their stretched valuations.

 

 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.2%, hovering just above a one-month trough touched earlier this week. Japan's Nikkei .N225 rose 0.3%.

 

Souring the mood, the U.S. Senate on Thursday killed a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats seeking far more funding prevented it from advancing.

 

“The need for more fiscal support seems obvious, but the chances of imminent support have diminished significantly,” wrote Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.

 

Data also showed the number of Americans filing new claims for unemployment benefits remained high last week, and the total number of people who are on unemployment benefits increased to 29.6 million.

 

Diplomatic and military tensions between Washington and Beijing appeared to intensify as Taiwan denounced China on Thursday over large-scale air and naval drills off its southwestern coast.

 

U.S. tech shares, unquestionable leaders of the world’s stock recovery since late March, failed to sustain a brief rebound.

 

On Wall Street on Thursday, the S&P 500 .SPX lost 1.77% while the Nasdaq Composite .IXIC dropped 1.99%, both on course for a second straight week of losses.[.N]

 

The NYSE Fang+ index of big 10 tech companies .NYFANG has lost 5.4% so far this week -- its biggest weekly loss since the market turmoil in March if sustained by the end of Friday.

 

Still, the index is more than double its March trough and investors have gathered that their high valuations are justifiable in light of near zero interest rates in much of the developed world and massive liquidity the world’s central banks have created.

 

Many investors have said the selloff was a healthy correction.

 

Yet, with the world’s stocks still trading near the most expensive levels relative to profit outlook since the 2000 tech bubble, some analysts called for caution.

 

“Global shares had rallied on expectations of economic recovery from lockdowns. But as the autumn begins (in the northern hemisphere), people wonder if the coronavirus infections could worsen,” said Kozo Koide, chief economist at Asset Management One.

 

“You never know if vaccine deployment is that easy nor if banks need to aside more provisions for struggling firms in hospitality sector. Considering all that, investors are likely to question the current valuations can be justified,” he said.

 

In the currency market, the British pound wobbled near a 1 1/2-month low set on Thursday on fears that UK-EU trade negotiations may fall apart.

 

The European Union told Britain it should urgently scrap a plan to break their divorce treaty, but Prime Minister Boris Johnson’s government refused and pressed ahead with a draft law that could sink four years of Brexit talks.

 

The pound traded at $1.2815 GBP=D4, having slipped to $1.2773 overnight.

 

The euro changed hands at $1.1833 EUR= having briefly hit a one-week high on Thursday after European Central Bank President Christine Lagarde said that while the ECB is watching the exchange rate, it is not a monetary policy tool.

 

Traders took her comments to mean the ECB was unlikely to undertake measures to weaken the currency.

 

The yen was little moved at 106.18 per dollar JPY=.

 

Oil prices were under pressure from a surprise rise in U.S. stockpiles and weak demand due to the coronavirus pandemic.

 

Brent crude LCOc was down 0.2% at $39.98 a barrel after falling nearly 2% on Thursday. U.S. crude CLc1 was flat at $37.30, having fallen 2% in the previous session.

 

 

 

 

Oracle revenue, profit beat as cloud business benefits from remote work

(Reuters) - Oracle Corp ORCL.N signaled a recovery in client spending as remote work spurred demand for cloud services as well as traditional licensing business, helping it beat expectations for first-quarter results and sending its shares up 5% on Thursday.

 

The COVID-19 pandemic has led to a rapid shift to remote work with companies looking to extend it till the next year, benefiting cloud companies that support this move.

 

It comes at a time when Oracle has been pushing into the cloud business that helps companies save cost by renting data centers rather than owning them.

 

Revenue from its largest the unit, that includes its cloud services, rose 2.1% to $6.95 billion.

 

Total revenue rose 1.6% to $9.37 billion, beating analysts’ average estimate of $9.19 billion, according to IBES data from Refinitiv.

 

The company’s net income rose to $2.25 billion, or 72 cents per share, in the first quarter ended Aug. 31, from $2.14 billion, or 63 cents per share, a year earlier.

 

On an adjusted basis, Oracle earned 93 cents per share, above market expectation of 86 cents per share.

 

 

 

Africa Has the Largest Retail Crypto Volumes Below $10, 000 Globally, Says Latest Chainalysis 2020 Geography Report

Africa makes up the largest share of retail crypto volumes of transfers under $10, 000 than any region globally, according to the upcoming September 2020 Chainalysis report.

 

A significant share of these transactions is taking place between Africa and East Asia, particularly for business purposes.

 

The report has been compiled by Chainalysis, the largest and most recognized blockchain analysis and data company that works with exchanges, financial institutions, and government agencies, including the United States, and in other countries.

 

Here are some stats from the upcoming report:

 

Volatile fiat currencies, especially in Nigeria, South Africa, Egypt, and Ghana are driving crypto remittances

The higher the level and rate of currency devaluation per country, the higher the P2P trading volumes in those countries

 

 

$8.1 billion was sent on-chain in the last year across Africa with $ billion received

When native currency loses value, P2P trading volumes rise soon after

 

 

Binance accounts for the largest portion of African crypto volumes (70%) due to liquidity and variety in trading pairs

 

 

LocalBitcoins accounts for the largest crypto value in Africa

Monthly crypto transfers below $10, 000 jumped up 55% in one year

Number of monthly transfers rose by half to over 600, 700

 

 

Nigeria crypto transfers totalled nearly $36 million in June 2020

Nigeria crypto transfers jumped nearly 50% to 120, 00 transactions by June 2020

 

 

Eastern Asia accounts for the largest crypto transfers to Africa with over 15, 000 transactions

 

 

The top 10 largest crypto services in Africa have seen their overall activity and market share grow from 66% to 78% in one year

 

 

Despite Africa accounting for the smallest crytocurrency economy of any region, the report shows that this small amount of activity is nevertheless creating life-changing real value to users across the continent.

 

Some of the reasons cited for this value-add include:

 

Economic instability hedging

Low-fee remittances

Saving alternatives

The report highlights remittances as an early use case for the developing economics across the continent with roughly $562 million worth of cryptocurrency transferred directly from overseas addresses to the ones based in Africa in retail-sized payments.

 

 

 

Most of these remittances are coming from North America, Western Europe, and East Asia, regions that have the highest concentrations of African migrants.

 

A recent report by Reuters showed how Nigerian businesses are using bitcoin to purchase supplies from China and United Arab Emirates enabling them bypass the need for buying dollars or using money-transfer firms.

 

Below is a breakdown of countries fueling Africa’s cryptocurrency use between July 2019 – June 2020:

 

 

 

South Africa – Over $800 million

Nigeria – Over $600 million

Kenya – Over $400 million

Crypto exchanges across the African continent continue to report high transaction volumes and impressive growth numbers which points to quiet boom in crypto adoption.

 

 

NB: This blog is an excerpt from the Chainalysis 2020 Geography of Cryptocurrency Report. We will share the full report once it drops in September 2020-bloomberg

 

 

 

Mastercard Underpins its Commitment to Driving Economic Empowerment for All in Africa

Africa is undergoing rapid digital transformation. According to the World Bank, the continent is home to four of the world’s top five fastest growing economies, and as mobile and digital technologies expand, an increasing number of people are now connecting with the tools and networks they need to help them reach their potential, to achieve financial security and advance inclusive growth.

 

Since embarking on a deliberate journey of financial inclusion in Africa, Mastercard’s efforts have encouraged significant development in various spheres of national economies. As a payment technology company with operations across several countries in Africa, Mastercard’s mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere, by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships and passion, Mastercard’s innovations and solutions help individuals, financial institutions, governments, and businesses realize and harness their greatest potential. 

 

Boosting economic empowerment in Africa

Financial inclusion is an integral pillar of Mastercard’s business strategy and part of its vision to create a world beyond cash. Currently, the company is in talks with governments across Africa to expand their digital agenda and look at ways their tools and services can support them.

 

 

Raghav Prasad: Divisional President, Sub-Saharan Africa, Mastercard.

In essence, digitization has the unique power to drive socioeconomic growth. Statistics show that each one percent increase in usage of electronic payments produces, on average, an annual increase of $104 billion in GDP. Governments and other public and private institutions can therefore look to leverage technology by bringing entire ecosystems online – from mass transit to schools, and from global trade to local supply chains. This will ultimately improve effectiveness, whilst also saving time and costs.

 

In fact, Mastercard recently joined forces with Direct Pay Online (DPO), to encourage digitization and help businesses across Africa move online. Powered by Mastercard Payment Gateway Services technology, the platform enables merchants in Africa to swiftly move their businesses online and continue to trade with their customers. Currently, 55 businesses providing essential products and services such as supermarkets, restaurants, groceries, pharmaceuticals and fresh produce have already signed up to the DPO Store in Kenya, Uganda, and Zambia, showing that consumers are increasingly turning to e-commerce for their day to day transactions.

 

Another part of Mastercard’s strategy is to help societies transition from financial inclusion to financial security, thereby not just enabling access to the digital economy, but also providing tools and services to achieve financial security. This includes providing tailored digitization support to the microfinance sector, thus making it possible for micro-merchants to gain access to credit to grow their businesses and create jobs.

 

An increase in electronic payments has been found to boost national economic growth by reducing friction and increasing the pool of customers. To support this expansion, Mastercard has also partnered with mobile operators across Africa such as MTN Uganda and Vodacom Tanzania to provide Virtual Card Solutions (VCN) that enable safer online purchases locally and internationally, enabling the company to bring their innovations to an entirely new segment of consumers.

 

Creating shared prosperity through digitization

Five years ago, Mastercard made a long-term commitment to drive safe and scalable financial inclusion in Africa, with the aim of bringing 500 million financially excluded individuals into the digital economy. Now that the goal has been achieved, the company is extending this to a total of one billion individuals by 2025. And it doesn’t end there – the commitment further extends by aiming to help 50 million micro and small merchants (MSMs) and 25 million women entrepreneurs connect to the digital economy.

 

By using advanced technologies and infrastructure, Mastercard has the ability to scale solutions that support people’s journey from poverty to prosperity. However, this cannot be achieved alone – which is why a complex ecosystem of different players and partnerships with both the private and public sectors is vital to making a sustainable impact across Africa.

 

Last year, Mastercard announced the signing of public-private partnerships with the International Center for Tropical Agriculture (CIAT), the United States African Development Foundation (USADF) and Rabobank to extend the reach of the Mastercard Farmers Network (MFN) to millions of  smallholder farmers in Africa.  Under this partnership, key partners, will provide support to further roll out the MFN platform across Uganda making transacting much safer and simpler for many more stakeholders in the agricultural value chain – the farmer, the buyer and the agent. 

 

MFN is an award-winning, innovative solution that helps to connect small-scale farmers with potential buyers, integrates their businesses with payment systems, and enables them to build a digital transaction record that can be used to access formal credit from banks and other financial institutions.  Without this technology, many smallholder farmers struggle to access the market for their goods and financial tools that would enable them to grow their businesses and improve their livelihoods.

 

By fostering fruitful, long-lasting partnerships, not only is Mastercard’s business expanding across Africa, but most importantly, many of the continent’s greatest challenges are also being addressed. This approach is based on the company’s fundamental standpoint of ‘doing well by doing good,’ by creating a sustainable system where everyone can reap the benefits of a financially inclusive society, including citizens, customers, governments and businesses. Any business that hopes to thrive in future has to be built on trust and integrity, and even more so when that business has a direct impact on people’s money and affects the way they live and work.

 

Empowering MSMEs, growing future skills

In Africa, MSMEs and the informal trading sector are the primary growth engines for the economy, creating approximately 80 percent of total employment. To support small business growth, Mastercard is actively promoting digital platforms and tools which supports their transition to the digital economy.

 

One of the platforms supporting MSMEs is Mastercard’s partnership with Unilever and Kenya Commercial Bank (KCB) to offer new lending models for micro-merchants in Kenya. The program offers a safe digital platform for enabling KCB to provide an interest-free credit line based on the micro-merchant’s purchasing history. The credit line is provided through a secure Mastercard digital payment solution, which is accessible via mobile phones and other handheld devices. This solution allows micro-merchants to buy more products, giving them access to formal credit services and therefore increasing customer traffic.

 

Other platforms that support this include mobile-enabled digital wallets and Masterpass, a digital payment service that allows users to load their credit and debit cards into an app and make payments using a QR code. The service is interoperable, and because a QR code is a simple, low cost tool, it puts digital payments acceptance into the hands of MSMEs.

 

With work founded in building pathways to financial security, Mastercard’s mission is to increase acceptance opportunities for all, as well as providing MSMEs with other value-added tools and solutions to help businesses grow, thrive and succeed.

 

However, more still needs to be done if Africa is to realize the full socioeconomic benefits that financial inclusion can deliver, including greater income and social equality, an expanded middle class, and better financial inclusion for all.-cnbcafrica

 

 

 

FirstRand’s full-year headline earnings plunge 38%

FirstRand’s full-year results have revealed a 38 per cent plunge in the group’s headline earnings. Provisions for bad loans reflected a difficult economic environment, particularly in the last quarter of the company’s financial year. As a result, the group’s impairment charge more than doubled, compared to the previous year. FirstRand CEO, Alan Pullinger joins CNBC Africa for more….-cnbcafrica

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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