Major International Business Headlines Brief::: 26 September 2020

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Major International Business Headlines Brief::: 26 September 2020

 


 

 


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

 


 

 


 

 

ü  Singapore in world first for facial verification

ü  Thomas Cook staff: Redundant twice in a year

ü  Tesco joins Morrisons to limit sales of some items

ü  Covid: Jobs scheme 'won't stop major rise in unemployment'

ü  William Hill: Takeover battle looms for UK bookmaker

ü  European Commission to challenge Apple tax bill verdict

ü  UK borrowing soars in August as Covid costs mount

ü  American Airlines Receives $5.5 Billion Treasury Loan, More Than Expected

ü  Consumer stocks help UK shares end harsh week higher

ü  Nigerian Oil, Gas Suppliers Lament N320bn Loss, Back Deregulation

ü  Uganda: Cheap Tanzanian Rice Leaves 1,000 Busoga Farmers Stranded

ü  Kenya Horticulture Exporters Fight to Secure Markets Amid Pandemic

ü  Zeroavia Completes World First Hydrogen-Electric Passenger Plane Flight

 

 

 

 

 

 

 

 

 


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

 


 

Singapore in world first for facial verification

Singapore will be the first country in the world to use facial verification in its national identity scheme.

 

The biometric check will give Singaporeans secure access to both private and government services.

 

The government's technology agency says it will be "fundamental" to the country's digital economy.

 

It has been trialled with a bank and is now being rolled out nationwide. It not only identifies a person but ensures they are genuinely present.

 

"You have to make sure that the person is genuinely present when they authenticate, that you're not looking at a photograph or a video or a replayed recording or a deepfake," said Andrew Bud, founder and chief executive of iProov, the UK company that is providing the technology.

 

The technology will be integrated with the country's digital identity scheme SingPass and allows access to government services.

 

"This is the first time that cloud-based face verification has been used to secure the identity of people who are using a national digital identity scheme," said Mr Bud.

 

Verification or recognition?

Both facial recognition and facial verification depend on scanning a subject's face, and matching it with an image in an existing database to establish their identity.

 

The key difference is that verification requires the explicit consent of the user, and the user gets something in return, such as access to their phone or their bank's smartphone app.

 

Facial recognition technology, by contrast, might scan the face of everyone in a train station, and alert the authorities if a wanted criminal walks past a camera.

 

"Face recognition has all sorts of social implications. Face verification is extremely benign," said Mr Bud.

 

Privacy advocates, however, contend that consent is a low threshold when dealing with sensitive biometric data.

 

"Consent does not work when there is an imbalance of power between controllers and data subjects, such as the one observed in citizen-state relationships," said Ioannis Kouvakas, legal officer with London-based Privacy International.

 

Business or government?

In the US and China, tech companies have jumped on the facial verification bandwagon.

 

For example, a range of banking apps support Apple Face ID or Google's Face Unlock for verification, and China's Alibaba has a Smile to Pay app.

 

Many governments are already using facial verification too, but few have considered attaching the technology to a national ID.

 

In some cases that's because they don't have a national ID at all. In the US, for example, most people use state-issued drivers' licences as their main form of identification.

 

China hasn't attempted to link facial verification to its national ID, but last year enacted rules forcing customers to have their faces scanned when they buy a new mobile phone, so that they could be checked against the ID provided.

 

Nevertheless, facial verification is already widespread in airports, and many government departments are using it, including the UK Home Office and National Health Service and the US Department of Homeland Security.

 

How will it be used?

Singapore's technology is already in use at kiosks in branches of Singapore's tax office, and one major Singapore bank, DBS, allows customers to use it to open an online bank account.

 

It is also likely to be used for verification at secure areas in ports and to ensure that students take their own tests.

 

It will be available to any business that wants it, and meets the government's requirements.

 

"We don't really restrict how this digital face verification can be used, as long as it complies with our requirements," said Kwok Quek Sin, senior director of national digital identity at GovTech Singapore.

 

"And the basic requirement is that it is done with consent and with the awareness of the individual."

 

GovTech Singapore thinks the technology will be good for businesses, because they can use it without having to build the infrastructure themselves.

 

Additionally, Mr Kwok said, it is better for privacy because companies won't need to collect any biometric data.

 

In fact, they would only see a score indicating how close the scan is to the image the government has on file.--BBC

 

 

 

 

Thomas Cook staff: Redundant twice in a year

"It was devastating for both of us. The entire household income was wiped out overnight," says Adrian Leary, former Thomas Cook cabin crew.

 

Both Adrian and his partner Paul Jones worked as air stewards when the holiday business collapsed last September, taking more than 9,000 UK jobs with it.

 

"Paul had only flown for four years, I'd flown for almost 25. I absolutely loved it. I never had any intention of doing anything else. I would have done it till the day I died," explains Adrian, full of passion as he reminisces about the jobs they lost.

 

The couple realised they wouldn't get back into aviation when the pandemic took hold in March as airlines immediately cut flights and soon after, jobs. After looking for other work, their local job centre in St Helens told them they qualified for an enterprise initiative, so they began planning something new.

 

On the platform of their local train station in Frodsham, Cheshire, Adrian and Paul spotted an empty building and an opportunity.

 

"We negotiated with the landlord for a rent-free period because of lockdown. Then as lockdown eased we opened. We're a brand new business combining a coffee shop and interiors and gifts," says Adrian, although their café still hasn't fully opened because of the continuing changes in guidance for hospitality due to the pandemic.

 

"For a pair of old duffers, we had no idea on social media. We had to learn Instagram and Facebook," says Paul, "but it's been absolutely amazing, we've had such a good reception."

 

He tells me last Saturday they were absolutely packed, and they couldn't believe it.

 

This week marked a year since Thomas Cook collapsed, so the pair decided to launch a special initiative to get their former crew back together: come by dressed in your old uniform and you'll get a free tea or coffee.

 

What went wrong at Thomas Cook?

Today, Cathy Kirk Jardine, Betty Knight and Sandra Hutson have popped in.

 

"The last year has been dreadful," says Cathy, who was with Thomas Cook for 25 years. A year on she still isn't working.

 

"It's been really hard. I don't think employers actually realise what a talent pool crew are. We were firemen, policemen, councillors, diplomats, medical staff - if something went wrong up there, there was no 999 to call.

 

"It's hard to get back into aviation because of Covid. It's a huge market now because so many others have been made redundant," she says.

 

Since the pandemic began, more than 30,000 jobs have been made redundant at UK airlines, according to the industry body Airlines UK. Added to that are cuts that have been made by airports, baggage handlers and third parties that rely on flights and the ecosystem around airports.

 

Sandra loved her job. "Fabulous, everything you can dream of" is how she describes it. She worked for Thomas Cook for 23 years, and says she felt "bereaved" when the company collapsed.

 

"I was very fortunate, I got a job with Jet2 on the ground," she says, standing neatly in her Thomas Cook uniform, looking like she's about to depart for a long-haul destination, her hair in a perfect bun.

 

"I was there for seven weeks and then the coronavirus hit. I've been furloughed since. I don't know yet what's happening and if I'll go back."

 

Matt McKay was a senior first officer at Thomas Cook for three years. We first met last year, days after the business collapsed.

 

"I thought I'd be there till I retired," he tells me. "I was aiming to buy a house, settle down and be living here close to my family." His partner was expecting a baby a few months after Thomas Cook went under.

 

Matt had interviews with a number of airlines and then got a job with Aegean, based in Athens, which he says wasn't ideal but the family would "make it work".

 

Soon after starting, the pandemic hit. "I was there for three days before they sent us home. I was put on leave until the end of March and then made redundant."

 

Matt isn't alone in people who suffered this double whammy of redundancy in aviation. I've been contacted by lots of former Thomas Cook staff who took jobs with some of the UK's big airlines, including Jet2, BA and Tui. In some instances, staff completed training courses, only to be made redundant before making a flight. Others did just a handful and were then let go.

 

Matt says it has led to a period of self-reflection and realisation. "I don't think I'll be flying again until at least summer 2022."

 

In the meantime, he's starting his own business piloting drones for agriculture until the sector improves.

 

The collapse of Thomas Cook was at the forefront of what has been a devastating year for aviation. And as Covid-related job losses mount, airlines like BA have said they don't expect demand to return to levels seen before the pandemic for two to three years.

 

It means that former crew, who say they have "aviation in our blood", might have to wait a bit longer before they can return to the skies.--BBC

 

 

 

Tesco joins Morrisons to limit sales of some items

Tesco has become the latest supermarket to place limits on the number of items shoppers can buy, following a similar move by rival Morrisons.

 

It now has a three-items per customer limit on flour, dried pasta, toilet roll, baby wipes and some wet wipes.

 

The supermarkets are acting to prevent a repeat of the panic-buying that led to shortages in March.

 

The managing director of Iceland told the BBC he is urging shoppers to "calm down and carry on as normal".

 

Richard Walker said his supermarket chain was not currently considering limiting purchases on any lines. He said there had been a small uptick in interest in the "usual suspect products" like toilet roll, but it was "nothing like last time".

 

Mr Walker said that, in March and April, this had resulted in elderly and vulnerable people, as well as NHS workers, being faced with empty shelves. He described panic buying as socially divisive, only an option to those who can afford it.

 

'Good availability'

Tesco said it had "introduced bulk-buy limits on a small number of products".

 

It said this was to "ensure that everyone can keep buying what they need".

 

"We have good availability, with plenty of stock to go round, and we would encourage our customers to shop as normal," it said.

 

The supermarket has introduced additional limits for a small number of products online, such as rice and canned veg.

 

Morrisons introduced a limit of three items per customer on some ranges on Thursday, including toilet rolls and disinfectant products.

 

It said stock levels "were good", but it wanted to "make sure they were available for everyone".

 

No shortages

In March, UK supermarkets were forced to take steps to prevent shoppers from panic-buying around the height of the pandemic.

 

Many introduced limits on the number of certain items that customers could buy, such as flour, pasta or toilet roll.

 

Enhanced measures introduced in recent weeks have not triggered stock-piling by customers, according to several supermarkets approached by the BBC earlier this week.Tesco joins Morrisons to limit sales of some items

 

Asda said it still had good availability in-store and online, while Waitrose said it had "good levels" of stock and that it had also looked at the items people bought early in lockdown and planned ahead accordingly.

 

"We would like to reassure customers that there is no need to worry about buying more than they need," a spokesperson said.

 

The British Retail Consortium said supply chains were good and has urged consumers to "shop as you normally would".

 

Director of food and sustainability at the BRC, Andrew Opie, said: "Supply chains are stronger than ever before and we do not anticipate any issues in the availability of food or other goods under a future lockdown.

 

"Nonetheless, we urge consumers to be considerate of others."

 

Aldi boss Giles Hurley has written to customers saying: "There is no need to buy more than you usually would. I would like to reassure you that our stores remain fully stocked and ask that you continue to shop considerately."--BBC

 

 

 

 

Covid: Jobs scheme 'won't stop major rise in unemployment'

Rishi Sunak's new jobs support scheme will slow but not stop, "major" job losses, influential think tank the Resolution Foundation has warned.

 

The chancellor said he hoped the new plan, announced on Thursday, would "benefit large numbers".

 

But the Resolution Foundation said the fact firms had to pay employees for hours not worked meant many would have "little or no incentive" to use it.

 

The plan "will not significantly reduce the rise in unemployment," it said.

 

The Foundation also highlighted that around six million of the UK's poorest households could see their incomes cut by £20 a week from next April, when the government's temporary boost to basic benefits comes to an end.

 

The Job Support Scheme, which will replace the furlough scheme, will see workers get three quarters of their normal salaries for six months.

 

To be eligible, employees must work for at least one third of their normal hours.

 

For the hours not worked, the government and employer will each pay one-third of the remaining wages.

 

Torsten Bell, chief executive of the Resolution Foundation, said the higher contribution required from firms, compared to the furlough scheme, meant the new Job Support Scheme "will not live up to its promise to significantly reduce the rise in unemployment."

 

At the start of the pandemic the government sought to reduce the economic impact of lockdown measures by temporarily boosting the standard allowance you collect if you claim benefits by £20 to £94.25 a week.

 

That served to soften the income shock endured by workers moving from a job to benefits, which pay less than a fifth of the average wage.

 

The Resolution Foundation's analysis points out that the Chancellor Rishi Sunak has chosen not to extend that temporary boost beyond April next year.

 

That means that in April, at a time when unemployment is likely to be rising quickly, well over six million families already on benefits will see their incomes cut by £20 a week.

 

And because they'd be forced to spend less, it would also reduce the overall level of demand in the economy, making more job losses more likely.

 

The Foundation's report notes, for example, that it would cost a firm £1,500 to employ one full-time worker on £17,000, but more than £2,000 a month to employ two half-time workers on the same full-time equivalent salary.

 

One full-time worker on £10,000 would cost £800 a month, compared with £1,100 a month for two half-time workers.

 

The government has stressed the scheme has been gratefully received in many quarters.

 

The chief secretary to the Treasury, Steve Barclay, told BBC Breakfast that "many employers value the flexibility of being able to tailor how much time employees are working as we go through uncertainty of winter months".

 

Mr Barclay said the scheme has been "so warmly welcomed" by the likes of the CBI, FSB, business leaders and trade unions, as well as sectors such as aerospace and hospitality,

 

He said that businesses want to retain their skills and expertise of the labour market, and "wanted the ability to bring people back on a part time basis".

 

Missing out

The Foundation said that a single adult homeowner earning £20,000-a-year would face an income reduction of around 19% if they worked a third of their previous hours on the jobs support scheme, compared with a 70% drop were they to lose their job completely and move onto Universal Credit.

 

However, employees only benefit from the Job Support Scheme (JSS) where employers choose to use it, and the scheme is far less generous for firms which gives them little or no incentive to use it, the Foundation said.

 

Meanwhile, industries hit hard by the coronavirus pandemic are facing further uncertainty after missing out on help in the chancellor's new emergency jobs scheme.

 

Hospitality, events and retail workers and businesses have expressed concern, as have those on zero-hours contracts.

 

Rishi Sunak said employees must be in "viable" jobs to benefit from the wage top-up scheme.

 

This means people working in industries currently closed - such as nightclubs - may lose out as there isn't any work.

 

Mr Sunak said he hoped the new plan, announced on Thursday, would "benefit large numbers", but warned the government "can't save every job".

 

Opposition politicians have called for more emphasis on training for workers losing their jobs.

 

Shadow chancellor Anneliese Dodds told the BBC a national training strategy was needed "so that when people become unemployed, they can hopefully be retrained with new skills".

 

The Lib Dems' Christine Jardine also criticised the lack of focus on training. She told the BBC that while the jobs plan was described as a "bridge for the economy", she wanted to know "where will it take us?"

 

How will the Job Support Scheme work?

·         The government will subsidise the pay of employees who are working fewer than normal hours due to lower demand

·         It will apply to staff who can work at least a third of their usual hours

·         Employers will pay staff for the hours they work

·         For the hours employees can't work, the government and the employer will each cover one third of the lost pay

·         The grant will be capped at £697.92 per month

·         All small and medium-sized businesses will be eligible

·         Larger business will be eligible if their turnover has fallen during the crisis

·         It will be open to employers across the UK even if they have not used the furlough scheme

·         It will run for six months starting in November--BBC

 

 

 

 

William Hill: Takeover battle looms for UK bookmaker

A bid battle is looming for UK betting giant William Hill after it received two rival takeover approaches.

 

The company confirmed it had received proposals from US-based private equity firm Apollo and casino giant Caesars Entertainment.

 

It said talks were "ongoing" with both suitors and there "can be no certainty" that any formal offer will be made.

 

News of the takeover interest sent shares in the bookmaker soaring by nearly a third to 289.8p.

 

William Hill said Apollo and Caesars were required "to announce a firm intention" to make an offer by 17:00 on 23 October under UK takeover rules.

 

Under the recent lockdowns betting has continued to shift online and away from the High Street, and last month William Hill said that 119 of its betting shops would not re-open.

 

The company, which has 1,500 UK outlets, said it did not expect customers to return in the numbers seen before the Covid-19 pandemic.

 

Its High Street presence had already been receding prior to the coronavirus outbreak. It closed hundreds of shops after the maximum stake on fixed odds betting terminals was reduced sharply from £100 to £2 last year.

 

'Strategic position'

Despite William Hill's problems in the UK, "an approach for Hills is entirely understandable", said Russ Mould, an investment director at AJ Bell, as it "has an excellent strategic position in the US market".

 

William Hill already has 170 retail sites in 13 different states, Mr Mould pointed out.

 

Caesars already owns a 20% stake in William Hill's US operations, which also have exclusive rights to operate sports betting under the Caesars brand.

 

Private equity firm Apollo has also been looking to buy supermarket chain Asda in recent weeks, and has placed an offer with the chain's owner, US retail giant Walmart.--BBC

 

 

 

European Commission to challenge Apple tax bill verdict

The European Commission plans to appeal against a ruling that Apple does not have to pay 13bn euros (£11.6bn) in back taxes to Ireland.

 

The EU's General Court had ruled in July there was no evidence Apple had broken any rules on tax paid there.

 

Ireland never disputed the arrangement but the European Commission, which brought the case, argued it enabled Apple to avoid taxes on EU revenues.

 

The EU said paying the correct amount of tax was "a top priority".

 

In 2016, a court ruled that Apple had indeed been given illegal tax breaks by Dublin - but this was overturned in July 2020.

 

Apple has €13bn Irish tax bill overturned

The European Commission claimed Ireland had allowed Apple to attribute nearly all its EU earnings to an Irish head office that existed only on paper, thereby avoiding paying tax on EU revenues.

 

Ireland has always said Apple's tax bill was in line with its regulations.

 

EU executive vice-president and competition commissioner Margrethe Vestager, said in a statement: "If member states give certain multinational companies tax advantages not available to their rivals, this harms fair competition in the European Union in breach of state aid rules.

 

"We need to continue our efforts to put in place the right legislation to address loopholes and ensure transparency."

 

A new appeal will now go before a higher court, the European Court of Justice.--BBC

 

 

 

UK borrowing soars in August as Covid costs mount

The UK government borrowed £35.9bn in August as tackling the economic fallout of pandemic took its toll on the public finances, official figures show.

 

The figure - the difference between spending and tax income - was £30.5bn more than it borrowed in August last year.

 

The increase meant that the borrowing figure hit its highest amount for August since records began in 1993.

 

Borrowing between April and August totalled £173.7bn - also a record.

 

August's monthly borrowing figure was, however, less than economists had predicted at £38bn, according to Pantheon Macroeconomics.

 

The Office for National Statistics (ONS) also revised down its estimate for UK borrowing in July, by more than £11bn, to £15.4bn, demonstrating how difficult tracking the economy during the pandemic can be.

 

It also said that total UK debt passed £2 trillion for the first time in history in August, rather than in July as previously thought.

 

In August, debt hit £2.024tn, £249.5bn more than the same time in 2019.

 

That figure now exceeds the size of the UK economy, the highest level of debt seen since the 1960s.

 

Andrew Wishart, UK economist at Capital Economics, said that rising borrowing figures were down to the government absorbing "much of the cost of the Covid-19 crisis".

 

The government has been forced to cover a wide range coronavirus-related costs - from the furlough scheme and bailouts for rail firms to business rates holidays and VAT cuts for hospitality and tourism.

 

It has also set aside £500m to cover the cost of the "Eat Out to Help Out" scheme, where diners got a state-backed 50% discount on meals and soft drinks up to £10 each on Mondays, Tuesdays and Wednesdays in August.

 

Where do governments borrow money?

Uncertainty as industries miss out on job support

Rishi Sunak's post-furlough plan: At-a-glance

But "the big picture is that fiscal support will fade over the autumn causing many more job losses to be realised", Mr Wishart added.

 

The latest figures from the ONS show that while billions have been pumped into propping up the economy, tax receipts have dropped sharply.

 

The amount collected by central government in taxes dropped to £37.3bn in August, which is £7.5bn less than a year before.

 

The amount of VAT, corporation tax and income tax collected fell "considerably", the ONS said.

 

It was another month of heavy government borrowing - though many economists thought it would be even more.

 

As always, the outlook will depend on specific spending and tax measures and the strength of the economy.

 

The leading headline from the chancellor's announcement yesterday was the coming replacement of the furlough scheme with the less generous Job Support Scheme.

 

That will curb spending compared with extending the furlough scheme, though it's almost certain to mean substantial job losses.

 

Another of his measures - the extension of the VAT cut for hospitality and tourism - will reduce tax revenue.

 

The resurgence in Covid cases and the renewed restrictions intended to contain the pandemic are likely to cast a shadow over the economic recovery.

 

Some economists expect the economy to stagnate for the rest of the year. To the extent that does happen, it will undermine tax revenue.

 

Furlough wind-down

The new figures came the day after Chancellor Rishi Sunak announced a series of extensions to existing coronavirus programmes, including a replacement for the furlough scheme, which is due to finish at the end of October.

 

Under the new wage "top-up" scheme, if bosses bring back workers part-time, the government will help top up their wages to at least three-quarters of their full-time pay.

 

Philip Shaw, chief economist at Investec Bank, said that the government's borrowing figures may "partly correct themselves" next year as a number of the chancellor's measures expire.

 

Mr Shaw pointed out though that in order to bring down debt, the chancellor "will have difficult decisions to make on fiscal policy".

 

But "with the focus currently on trying to maintain the recovery, this is not the time," he added.

 

Looking ahead, the ONS said that the chancellor was likely to borrow about £370bn in the 2020 financial year.-BBC

 

 

 

 

American Airlines Receives $5.5 Billion Treasury Loan, More Than Expected

American said it has already withdrawn $550 million of the loan, bringing its debt to $42 billion.

 

Its stock increased 2.8% in post-market trading following the announcement. 

 

American was originally allocated $4.75 billion, but carriers including Delta and Southwest Airlines said they don’t intend to take their share. 

 

It is possible other airlines will decline their share, which would be distributed to other airlines, as they have until Sept. 30 to decide. 

 

Airlines received a separate $25 billion in March under the CARES Act, primarily as grants to avoid layoffs and furloughs through the end of this month.-forbes

 

 

 

Consumer stocks help UK shares end harsh week higher

LONDON, Sept 26 ― A near 44 per cent surge in bookmaker William Hill on takeover offers lifted consumer stocks yesterday, helping UK shares outperform European peers and end a tumultuous week on a high note.

 

Without disclosing the value, buyout firm Apollo and US casino operator Caesars Entertainment made offers for the British betting firm, which had a market value of £2.28 billion (RM12.12 billion) at Thursday's close.

 

 

“William Hill had been one of the big gainers since March among UK equities... The news of course has done what bid approaches always do, namely lift the rest of the sector as well,” said Chris Beauchamp, chief market analyst at IG.

 

William Hill's peers GVC, Flutter Entertainment and 888 Holdings rose between 6.8 per cent and 16.7 per cent.

 

 

The moves helped London's mid-caps index end up 1.4 per cent in its best day in three weeks.

 

 

The blue-chips FTSE 100 index rose 0.3 per cent but losses for miners and oil stocks, which tracked commodity prices lower, and banks, which extended losses to a fourth straight session, kept gains in check.

 

But the moves stood out as Europe declined with the pan-European STOXX 600 index closing down 0.1 per cent, while German shares lost 1 per cent.

 

Fading hopes of an economic recovery, anticipation of severe restrictions in the UK to curb a resurgence in Covid-19 cases and the scaling back of government job support hit sentiment this week. Both UK indexes lost nearly 3 per cent ― the worst week in eight for the FTSE 100.

 

The prospect of Brexit without a trade deal with the European Union also adds to the uncertainty, overshadowing support from past stimulus measures.

 

Auto makers, miners and insurers were among the biggest laggards. The general retailers index posted weekly gains as retail sales picked up, while a survey yesterday showed consumer confidence in September rose to its highest level since March. ― Reuters

 

 

 

 

Nigerian Oil, Gas Suppliers Lament N320bn Loss, Back Deregulation

Abuja — The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) yesterday bemoaned its huge losses to the tune of N320 billion as a result of the control of the prices of products by the federal government.

 

The body, therefore, backed the decision of the federal government to allow prices to be determined by the forces of demand and supply, and pleaded with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), to have a rethink on their planned strike, saying that the action will have unquantifiable adverse impact on businesses.

 

A statement by the spokesman of the organisation, Chief Ukadike Chinedu, in Abuja, said its members would be forced to lay off staff, with the increasingly difficult business terrain.

 

It stated: "NOGASA is seriously concerned about recent developments in the downstream sector of the industry, especially with growing adverse effects on our businesses, workers and the Nigerian economy at large.

 

"The crushing impact on businesses and business investors in the downstream sector following the onset of Covid-19 global pandemic has been, to say the least, disastrous for the industry.

 

"Some of our concerns are: heavy losses of over N320 billion investments from products purchases at government specified prices, and sales at compelled price reductions, which could not be justified by the costs of transaction.

 

"Numerous businesses are dying in silence. A lot of them are no longer trading as a result of the heavy losses. There is an upward slide on the graph of job losses in the sector."

 

It noted that while the association fully agrees with the organised labour that the government should repair refineries and allow others to build private ones to encourage a more robust competitive business environment, it strongly believes that further disruptions in an already struggling economy will create far more problems for workers and businesses.

 

"It is in light of these and many other economic challenges and negative outcomes to the entire Nigerian economy that NOGASA appeals to the NLC/TUC to reconsider their proposed action over the increase in petroleum pump price and electricity rates by the government.

 

"While the association believes that there is great need for more far-reaching negotiations and dialogue to resolve matters that affect us all, it also uses this medium to appeal to government to declare a state of emergency on the refineries with a view to bringing them back to life as quickly as possible," the body said.

 

To make matters worse, the suppliers stressed that the price reduction by the federal government earlier this year, was announced without notice, saying that so many businesses were caught by surprise and could no longer sustain operations.

 

"Those losses were never refunded by the government and some companies were forced to shut down operations and lay off workers," it said.

 

NOGASA noted that while its members do not mind price reductions, it believes that it is possible to have much more reduced prices even with full deregulation.

 

According to it, "Rather than government price control, we believe that the government should leave the prices of these products to be determined by market forces.

 

"The government should not be involved in price-fixing, particularly when we buy from their depots. The truth also is that the government has a great deal of political and socio-cultural variables to contend with to make efficient input in pricing.

 

"For the suppliers, it is a matter of investments and return on investments, and the way it stands now, growth in this sector is badly hampered because of heavy losses on investment.

 

"If the strike goes on and the government forces us to reduce pump prices, we may have no other options than to retrench some of our workers in order to cut costs and maintain efficiency."-thisday

 

 

 

Uganda: Cheap Tanzanian Rice Leaves 1,000 Busoga Farmers Stranded

About 1,060 rice growers from Kamuli, Kaliro, Luuka, and Namutumba districts in Busoga sub-region are stranded with tonnes of rice following the importation of cheap rice from Tanzania.

 

The development has left thousands of tonnes of rice locked up in warehouses in Jinja City. One of such warehouse is OBN Produce and Supply Company Ltd in Walukuba, Walukuba-Masese Division.

 

Mr Twaha Mugoya, the chairperson of Namutumba Rice Farmers Group, which boasts about 50 rice growers, on Wednesday said the flooding of Tanzanian Kaiso rice into the Ugandan market is pushing them out of business.

 

He said large-scale commercial rice farmers such as OBN Produce and Supply Company Ltd are only willing to offer them up to Shs1,800 for their rice per kilogramme instead of Shs2,000, but are also willing to pay Shs2,000 for the Tanzanian rice.

 

"We put in a lot of effort to grow this rice considering that we have been under a lockdown. Rice from Tanzania is in plenty because it comes into the country without taxes," he said.

 

The East African Community (EAC) Common Markets protocol allow partner states, including Uganda, Kenya, Tanzania and others, to benefit from free trade barriers, among other rights.

 

Mr Abdul Karim Kateeba, the coordinator of Bakusekamajja Farmers' Group in Bugiri District, which links about 162 rice growers to OBN Produce and Supply Company Ltd, said as many as 300 trucks of rice are packed at Mutukula border point awaiting clearance to Uganda.

 

"In 2017, we heard that OBN Produce and Supply Company Ltd was helping farmers to market our rice; if we aren't impressed with the market condition, we hoard the rice until we get a better price," Mr Kateeba said.

 

Mr Bernard Mugoya Mutebi, the director of OBN Produce and Supply Company Ltd, which trades as Agroben, said there is a lot of tax-free rice imported from Tanzania.

 

While the rice from Tanzania is credited for having a distinctive aroma, Mr Mutebi said farmers in Busoga don't know how to grow upland rice compared to, say, people from Gulu and Nwoya in northern Uganda.

 

In Uganda, there are mainly two types of rice grown; upland rice, which can be farmed even on fairly dry areas, and paddy rice that is specifically grown in swampy areas.

 

"Busoga Sub-region is good at growing paddy rice, not upland rice and the same applies to the Teso sub-region. I appeal to the government to soften some laws and allow people to start growing rice in swampy areas," Mr Mutebi said.

 

He adds that their current market base is mainly Kampala and western Uganda.

 

"Farmers in western Uganda grow matooke but eat rice and that is where our major market is. We are not exporting because we don't have the tonnage government expects of us," he said.-Monitor.

 

 

 

 

Kenya Horticulture Exporters Fight to Secure Markets Amid Pandemic

Nairobi — The horticulture industry in Kenya is optimistic about quick recovery as global space slowly opens after the Covid-19 disruption.

 

Export earnings hit Sh72 billion between January and May 2020, up from Sh65 billion for the same period last year, translating to an 11 percent increase. The good earnings are largely attributed to the country's ability to ship out produce during the pandemic, serving a rising demand for food.

 

"Our export sector did Kenya proud", says Trade Cabinet Secretary Betty Maina when speaking at the Kenya Export Strategy 2020 Webinar organized by the Kenya Export Promotion and Branding Agency, Wednesday. "We expected the worst but our earnings are up, an indication of Kenya's potential to protect its markets by ensuring products reached the markets in a challenging environment.

 

The Kenya Export Promotion and Branding Agency CEO Wilfred Marube says the sector brought out the best of the country's resilience at beating the odds to keep the 'produce of Kenya' label in the global shelves, a sacrifice that has not only secured existing markets but also created new avenues for Kenya's flowers, fruits, herbs and vegetables.

 

It was a tough call for exporters especially in the flower sector who had to balance between maintaining a market presence, destroying beautiful flowers, sending workers home, keeping plants breathing and protecting their farms from the virus.

 

Market presence meant selling flowers, not to make money but to maintain a presence for Kenya, according to Trish Patel, head of marketing at PJ Dave, whose 80 percent of orders were canceled. "We continued shipping the little orders coming through to secure future markets for Kenya", he said.

 

Oserian Development Company Administration Director Mary Kinyua says the farm exports fell from 1 million stems per day to about 350,000 throwing the company, like many others, into a financial strain. "The markets are opening up slowly and barring any other disruptions we should be back to full business by end of the year," she said adding that it will however take longer to recover from the losses.

 

"March 15 is a day I will not forget in my life", said Craig Oulton, General Manager, Floriculture, Kisima Farm based in Timau. The date is etched in the minds of many, being the day President Uhuru Kenyatta declared no entry any exit from Nairobi, the distribution center for fresh produce exports. The following week international flights were grounded and for a week no produce was shipped out of the country.

 

Nairobi hosts the Jomo Kenyatta International Airport (JKIA) through which fresh produce flies out daily to the various destinations across the world. The 'lockdown' came as the industry was grappling with cancellation of orders at a critical season ( March-May) covering Mothers Day, International WomensWomens Day, UK Mother's Day and Easter holidays. Tonnes of flowers were already harvested ready for Mother's Day, arguably the second most important sales day for flowers after Valentine's. Exporters say this year lover's day was the best in five years and they looked forward to a blossoming 2020. Then Covid-19 hit. Flights were grounded as many markets shut but there were spot orders requiring to be supplied. Avocados especially were in high demand, and Kenya was the only country with the fruits in season.

 

To accord fresh produce clearance, farms and firms staff required access documents. 'The coordination of the movement of produce from farms to the airport in a pandemic challenge remains a proud moment for Kenya", says Dr Marube, whose sentiments are echoed by many in the industry. "We did it for Kenya", adds Fresh Produce Consortium ( FPC) CEO OkisegereOjepat adding, " I haven't encountered a situation when all of us worked in a seamless coordination to ensure our produce got to the markets that have in turn rewarded the country. We were in the shelves when nobody else was resulting in increased orders and attraction of new buyers", he said.

 

The Kenya Flower Council, aware that restrictions would be affected had a week earlier alerted its members to take steps to ensure trucks got cleared at the roadblocks. "The KFC did a great job", said Mr Oulton, reflecting the sentiments of many flower exporters who laud the council for obtaining the necessary documents with speed. Mr Oulton adds, "I am very proud of the Kenya government and private sector associations for the cooperation between the various agencies to ensure our flowers reached the markets.

 

The Avocado Society of Kenya CEO Ernest Muthomi says his fairly new organization got a baptism of fire. Calls from his members came in fast and furious. How would they access the Capital City? Muthomi contacted the Ministry of Interior which advised him to inform his members to obtain identification documents. He quickly sent an email informing them to submit their vehicle registration numbers, names of staff, produce and every other detail required by the police to allow movement. He contacted a designer and quickly made stickers.

 

Muthomi says that night he didn't sleep a wink. Avocados needed to move. "We were printing stickers overnight as I drove from one roadblock to another - Thika, Limuru, Matuu- in the dark to negotiate for clearance of vehicles impounded by security. We delivered more stickers through courier. ASOK was largely unknown but within 24 hours it shot into the limelight for securing avocado clearance.

 

Muthomi adds the effort earned Kenya avocados the highest foreign exchange for the period ever and has opened new markets and demand even in countries where Kenya doesn't have phytosanitary protocols.

 

Ojepat adds the Kenya Airports Authority was roped in to update the organizations on availability of the scarce cargo space. Kenya Airways came in handy, offering its passenger planes to fly to Europe to deliver cargo despite not making profits. "Kenya Airways did it for the country, after understanding that after the pandemic we will need our markets. Market presence was more important than making money", he added. For this sacrifice, OJ has made a call to exporters and government to support the national carrier to thrive. "Kenya airways came through for us, we should support the airline to get back into profitability", he said.

 

His sentiments are shared by Fresh Produce Exporters Association of Kenya CEO Hoseah Machuki who says, "I am grateful to the Kenya Government and Trade CS Betty Maina for listening to the industry and clearing logistical challenges to enable our products get to the markets." In addition, he says, Kenya Airways came through by airlifting products to the markets and for this reason, the national carrier should be treated as a strategic asset for the country".

 

The market presence for Kenya was reinforced through the Kenya Private Sector Alliance led Caravan of Hope initiative that saw flowers flown through KQ to the UK for donation to hospitals, an effort that didn't go unnoticed when President Uhuru Kenyatta recognized Elgon Kenya Managing Director Bimal Kantaria, who chaired the caravan, among Covid-19 heroes on Madaraka day. Said Mr Kantaria; UK is a big market for Kenya and we needed to support them in the hope when markets opened they would continue buying flowers from Kenya.

 

East African Growers, exporters of fruits, vegetables and flowers say orders from the UK never stopped because of the logistical support all in the chain accorded the industry. The company says it was not making money but market presence was important, and they kept supplying to secure future orders.

 

Veteran Exporter Tiku Shah of Sunripe, he of the Chinese frozen avocados fame said, "The Government did a fantastic job, I am very impressed. Effective coordination between KAA and exporters' lobbyists enabled planning of freights making it possible for Kenya's produce to be in the markets. "Everybody worked for Kenya produce to move out and this is very impressive", Said Shah.-Capital FM.

 

 

 

 

Zeroavia Completes World First Hydrogen-Electric Passenger Plane Flight

London — - Leading innovator in the decarbonisation of aviation makes major breakthrough with first hydrogen fuel cell flight of a commercial-size aircraft

 

- ZeroAvia's retrofitted Piper M-class is now the largest hydrogen powered aircraft in the world

 

ZeroAvia, the leading innovator in decarbonising commercial aviation, has completed the world first hydrogen fuel cell powered flight of a commercial-grade aircraft. The flight took place yesterday at the company's R&D facility in Cranfield, England, with the Piper M-class six-seat plane completing taxi, takeoff, a full pattern circuit, and landing.

 

ZeroAvia's achievement is the first step to realising the transformational possibilities of moving from fossil fuels to zero-emission hydrogen as the primary energy source for commercial aviation. Eventually, and without any new fundamental science required, hydrogen-powered aircraft will match the flight distances and payload of the current fossil fuel aircraft.

 

This major milestone on the road to commercial zero-emission flight is part of the HyFlyer project, a sequential R&D programme supported by the UK Government and follows the UK's first ever commercial-scale battery-electric flight, conducted in the same aircraft in June. ZeroAvia will now turn its attention to the next and final stage of its six-seat development program - a 250-mile zero emission flight out of an airfield in Orkney before the end of the year. The demonstration of this range is roughly equivalent to busy major routes such as Los Angeles to San Francisco or London to Edinburgh.

 

Val Miftakhov, CEO, ZeroAvia comments: "It's hard to put into words what this means to our team, but also for everybody interested in zero-emission flight. While some experimental aircraft have flown using hydrogen fuel cells as a power source, the size of this commercially available aircraft shows that paying passengers could be boarding a truly zero-emission flight very soon. All of the team at ZeroAvia and at our partner companies can be proud of their work getting us to this point, and I want to also thank our investors and the UK Government for their support."

 

Aviation Minister Robert Courts said: "Aviation is a hotbed of innovation and ZeroAvia's fantastic technology takes us all one step closer to a sustainable future for air travel. Through our ground-breaking Jet Zero partnership we're working hard with industry to drive innovation in zero carbon flight, and we look forward to seeing the sector go from strength to strength."

 

Business and Industry Minister Nadhim Zahawi said: "Developing aircraft that create less pollution will help the UK make significant headway in achieving net zero carbon emissions by 2050. Backed by Government funding, this flight is another exciting milestone in ZeroAvia's project. It shows that technologies to clean up air travel are now at our fingertips - with enormous potential to build back better and drive clean economic growth in the UK."

 

ZeroAvia's innovation programme in the UK is part-funded through the UK Government's Aerospace Technology Institute (ATI) Programme. Through the HyFlyer project, ZeroAvia is working with key partners the European Marine Energy Centre (EMEC) and Intelligent Energy to decarbonise medium-range small passenger aircraft by demonstrating powertrain technology to replace conventional engines in propeller aircraft. Intelligent Energy will optimise its high power fuel cell technology for application in aviation whilst EMEC, producers of green hydrogen from renewable energy, will supply the hydrogen required for flight tests and develop a mobile refuelling platform compatible with the plane.

 

Recently, ZeroAvia was also invited by Prime Minister Boris Johnson to join the UK's JetZero Council and help lead the UK towards the ambitious goal of achieving the first ever zero emission long haul passenger flight.

 

Gary Elliott, CEO of the Aerospace Technology Institute, said: "This is an important milestone for HyFlyer and UK aerospace, and we send our congratulations to the team. It is through supporting projects such as HyFlyer, and new and innovative companies such as ZeroAvia, that the ATI aims to deliver our vision for future sustainable aviation and secure a lead for UK aerospace in the highly-competitive global market."

 

In addition to all the aircraft work, ZeroAvia and EMEC have developed the Hydrogen Airport Refuelling Ecosystem (HARE) at Cranfield Airport - a microcosm of what the hydrogen airport ecosystem will look like in terms of green hydrogen production, storage, refuelling and fuel cell powered-flight. This also marks another world's first - a fully operational hydrogen production and refueling airport facility for primary commercial aircraft propulsion.

 

The successful flight represents good news for the aviation industry's role in supporting the net zero transition, but also raises hopes for innovation that can reduce commercial challenges in the medium term, particularly important for the industry as it considers the post pandemic recovery. ZeroAvia's hydrogen-electric powertrain is projected to have lower operating costs than its jet-fuelled competition due to lower fuel and maintenance costs. The company plans to control hydrogen fuel production and supply for its powertrains, and other commercial customers, substantially reducing the fuel availability and pricing risks for the entire market.

 

About ZeroAvia:ZeroAvia is a leader in zero-emission aviation, focused on hydrogen-electric aviation solutions to address a variety of markets, initially targeting 500 mile range in 10-20 seat aircraft used for commercial passenger transport, package delivery, agriculture, and more. Based in London and California, ZeroAvia has already secured experimental certificates for its two prototype aircraft, passed significant flight test milestones, and is on track for commercial operations in 2023. The company's expanding UK operations are partially supported by the grant from UK's Aerospace Technology Institute and Innovate UK, and ZeroAvia is part of the UK Government's Jet Zero Council. For more, please visit ZeroAvia.com, follow @ZeroAvia on Twitter, Instagram, and LinkedIn.

 

About HyFlyer:The HyFlyer project aims to decarbonise medium range small passenger aircraft by demonstrating powertrain technology to replace conventional piston engines in propeller aircraft.

 

HyFlyer will demonstrate a phased approach from battery power to hydrogen power, integrating the new technology aboard a Piper M-class aircraft, which will perform initial test flights out of Cranfield and culminate in a 250 - 300 nautical mile (NM) demonstration flight out of an airfield in Orkney.

 

The project is led by ZeroAvia with project partners the European Marine Energy Centre (EMEC) and Intelligent Energy.

 

The HyFlyer project is supported by the ATI Programme, a joint Government and industry investment to maintain and grow the UK's competitive position in civil aerospace design and manufacture. The programme, delivered through a partnership between the Aerospace Technology Institute (ATI), Department for Business, Energy & Industrial Strategy (BEIS) and Innovate UK, addresses technology, capability and supply chain challenges. -PR Newswire.

 

 

 

 

 

 

 


 


 


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

 

 

 


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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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