Major International Business Headlines Brief::: 16 August 2021

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Major International Business Headlines Brief::: 16 August 2021

 


 

 


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ü  IBM to allow only fully vaccinated to return to U.S. offices from Sept. 7

ü  Wall St Week Ahead Investors give value stocks a second look as bond
yields rally

ü  Fired Alibaba employee suspected of 'forcible indecency', not rape
-police

ü  Cuba dips toe in market economy with legalization of small businesses

ü  German Greens' chancellor candidate urges higher tariffs on Chinese
imports

ü  China tightens scrutiny over IPO price-setting, punishes 19 institutions

ü  Dollar retreats as consumer sentiment dives

ü  Analysis: Taliban gains give investors cause for concern beyond
Afghanistan

ü  EXCLUSIVE Olam seeking about $3 bln for London IPO of food ingredients
unit - sources

ü  Peloton is sued for improperly charging sales tax

ü  Zambia: After Polls Lusaka Will Face Huge IMF Pressure to Restructure the
Economy

ü  Nigeria: Akwa Ibom, Cross River Communities to Benefit From EU, Ecowas
Intervention

ü  Nigeria: Journalists Laud Delta for Capital Projects Focus of 2022 Budget

ü  Ethiopia: Diaspora Financing GERD Construction, Expediting Development

ü  Namibia: !kharoxas to Benefit From Solar Project

ü  India's commerce minister faces heat for criticism of businesses
including Tata

 

 

 


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IBM to allow only fully vaccinated to return to U.S. offices from Sept. 7

(Reuters) - International Business Machines Corp (IBM.N) said on Friday that
it would allow only fully vaccinated U.S. employees to return to offices,
which are set to open from Sept. 7, given the rapid spread of the Delta
variant of COVID-19.

 

"We will still open many of our U.S. sites, where local clinical conditions
allow, the week of Sept. 7. However, the reopenings will only be for fully
vaccinated employees who choose to come into the office," Chief Human
Resources Officer Nickle LaMoreaux said in a memo sent to employees.

 

The resurgence of COVID-19 cases in the United States due to the Delta
variant and the new guidance from the U.S. Centers for Disease Control and
Prevention (CDC) that requires fully vaccinated individuals to wear masks
have led companies to change their plans on return to office, vaccinations
and masking.

 

The technology firm also asked its employees to get fully vaccinated,
joining other big techs to fight the spread of the virus.

 

Earlier on Thursday, Facebook Inc (FB.O) has pushed back its office return
date for all U.S. and some international employees until January 2022, while
AT&T Inc (T.N) said it will require management employees to be vaccinated
before entering a work location.

 

The Thomson Reuters Trust Principles.

 

 

 

Wall St Week Ahead Investors give value stocks a second look as bond yields
rally

(Reuters) - U.S. value stocks may be getting a second wind, as bets on
economic strength bolster Treasury yields and lift cyclically-sensitive
shares that have stagnated in recent months after a powerful rally earlier
this year.

 

The S&P 500 value stock index (.IVX), which is relatively heavily weighted
in shares of financials, energy firms and other economically sensitive
companies, is up 5.5% from last month's lows, outperforming its tech-heavy
counterpart (.IGX) by more than a percentage point in a rally that
accelerated over the past week. The value index is up 18% this year, despite
stalling after a strong start to 2021.

 

The move may herald a nascent comeback for the so-called reflation trade, a
bet on rebounding economic growth that saw value stocks surge starting late
last year alongside Treasury yields. Yields have climbed this time around as
well, with the yield on the benchmark 10-year U.S. Treasury , which moves
inversely to prices, up about 20 basis points since last week, to 1.36%,
before pulling back on Friday.

 

“I do think value is somewhat of a coiled spring,” said Matt Peron, director
of research at Janus Henderson Investors, who believes value could
outperform for at least the next six months. “I do think it has another run
left in it.”

 

Investors pointed to several reasons for value's rosier outlook. While the
rise in coronavirus cases spurred by the Delta variant, remains a wildcard,
signs that infections may be slowing in Europe and parts of the United
States could mean that the lockdowns required last year will not be needed
for the foreseeable future, Peron said.

 

At the same time, some investors believe growth will remain strong in the
U.S. even after peaking in the second quarter. U.S. gross domestic product
is expected to rise 6.1% in 2021, and 4.8% in 2022, according to Oxford
Economics, stronger than what annual growth has been for the past decade.

 

"We haven’t seen growth rates this high in some time and that’s why we think
... value can keep outperforming, even once the rate of growth peaks," said
Sameer Samana, senior global market strategist at Wells Fargo Investment
Institute.

 

Among those calling for more gains in value stocks are technical strategists
at JPMorgan, who in the past week said the S&P 500 value index "looks poised
for a breakout." Truist Advisory Services on Wednesday said it expects more
upside for value over the next 12 months given the still strong economic
outlook and weak earnings trends for tech compared to the broader market.

 

Since the 10-year yield made a recent bottom last week, the S&P 500 value
index has climbed 2.4% against a 0.5% rise for its growth counterpart.

 

The value stock bounce comes as investors digest data from the past week
showing a potential peak in inflation, while looking ahead to the Federal
Reserve's Jackson Hole symposium at the end of the month. That event, or the
central bank's next policy meeting in September, could offer signals on when
it will begin unwinding the $120 billion a month government bond buying
program that has helped support asset prices. read more

 

Next week, the monthly U.S. retail sales report and earnings from retailers
such as Walmart (WMT.N) and Target (TGT.N) could shed more light on the
health of the consumer.

 

Investors are also keeping a close eye on Treasury yields, with rising
yields often viewed as a sign of economic optimism that could also boost
value stocks. Higher yields also particularly benefit profit margins of
banks, which tend to make up large portions of value indexes.

 

Plenty of stumbling blocks remain for the value trade. Signs that the
coronavirus is threatening the economic outlook could send investors back
toward large technology and growth shares that performed well for much of
2020. Data on Friday showing that consumer confidence fell to its lowest
level in a decade weighed on yields. read more

 

Treasury yields have also experienced several sharp swings this year,
wrongfooting investors. Yields on the 10-year fell to about 1.13% as
recently as Aug. 4 -- some 65 basis points below the year's highs.

 

Many investors may also be reluctant to overly reduce positions in growth
stocks, which dominated for much of the decade following the 2007-2009
financial crisis while value shares languished.

 

“It is this epic battle, back and forth between these two parts of the
market," said Matthew Miskin, co-chief investment strategist at John Hancock
Investment Management.

 

The Thomson Reuters Trust Principles.

 

 

 

Fired Alibaba employee suspected of 'forcible indecency', not rape -police

(Reuters) - A former male employee of Chinese e-commerce giant Alibaba Group
Holding Ltd is suspected of committing "forcible indecency" against a female
colleague, but not rape, according to Chinese police probing the assault.

 

The investigation is still ongoing, the police bureau of eastern China’s
Jinan city, where the incident occurred, said in a statement via Weibo.

 

The police update came after a female employee went public with an 11-page
account on Alibaba's intranet saying her manager and a client sexually
assaulted her during a business trip, and that superiors and human resources
did not take her report seriously. read more

 

The scandal led to fierce public backlash against Alibaba, which later fired
the male employee.

 

The male Alibaba employee, whom police only identify by his surname Wang,
entered the hotel room of the victim, surnamed Zhou, four times while she
was drunk after a business dinner on July 27 and committed “forcible
indecency” during one of these visits, according to the police statement.

 

The client had also committed the act against Zhou on two occasions during
the trip, they said.

 

The police said that they had not found enough evidence that Zhou was forced
to drink alcohol during a banquet that evening attended by the suspects, as
she had claimed.

 

Alibaba did not immediately respond to a request for comment. Reuters was
unable to reach the two suspects or Zhou for comment.

 

The Thomson Reuters Trust Principles.

 

 

 

Cuba dips toe in market economy with legalization of small businesses

(Reuters) - Thousands of small and medium-sized Cuban businesses will be
allowed to incorporate in the coming months, in one of the most important
economic reforms taken by the island's Communist government since it
nationalized all enterprises in the 1960s.

 

The reform, details of which came to light this week, will permit small and
medium-sized businesses for the first time since 1968, putting an end to the
legal limbo in which many have existed for years in the Soviet-style
economy.

 

The law will also apply to small and medium-sized state firms, paving the
way for an important decentralization of some activities and forcing
subsidized operations to become profitable or fold, according to Cuban
economists.

 

In the food service sector, thousands of government-subsidized eateries will
either close, become cooperatives or turn into small businesses, according
to a mid-level manager involved in the process who spoke on condition of
anonymity. Those it keeps will become small- and medium-sized state-owned
businesses competing with them.

 

While there have always been private farms and agricultural cooperatives in
Cuba, most of the economy was in state hands until the 1990s when heavily
regulated small businesses were allowed in a few areas under the rubric of
self-employment, limiting their legitimacy and legal standing.

 

The new measures are a key part of the economic reforms undertaken by new
Cuban leader Miguel Diaz-Canel over the last year, as the coronavirus
pandemic and tougher U.S. sanctions pushed the shaky economy into a tailspin
and shortages of food, medicine and other basic goods reached alarming
proportions.

 

Economy Minister Alejandro Gil said in a televised presentation Wednesday
evening the measures would put state and private business on an equal
footing to compete, work together and create joint companies, much as in
capitalist countries.

 

"It is a starting point for a new stage in the diversification of the
economy and its development, in order to make the most of its potential,"
Gil said, adding that the reform would boost employment and allow the
economy to rebound more strongly as the pandemic eased.

 

MIXED ECONOMIC MODEL

 

Creation of micro, small and medium-sized (MSME) businesses was fast-tracked
upon approval in May by Cuba's Council of Ministers.

 

The new MSMEs will be able to access the state wholesale system, import and
export, set prices and attract foreign investment, but only within a
state-dominated business environment where such activities will remain
heavily regulated, according to various ministers who appeared with Gil.

 

Companies are limited to no more than 100 employees and individuals can only
own a single company, according to a decree law published by the Council of
State this month.

 

Nevertheless, it is a welcome step for many entrepreneurs and most
economists who have long called for the reform.

 

"Cuba is moving towards a mixed economic model, at least in terms of
employment," said Pavel Vidal, a former Cuban central bank economist who
teaches at Colombia's Pontificia Universidad Javeriana in Cali.

 

"With this opening, in a few years the non-state sector will represent more
than 50% of total employment in the economy," Vidal said, adding that "still
much more needs to be done."

 

Cuba's economy, which has stagnated for years, contracted by 10.9% in 2020
and declined another 2% in the six months through June, compared with the
first six months of last year. The economy remains heavily reliant on
tourism and imports.

 

Thousands of people in cities across the Caribbean island took to the
streets on July 11 to protest living conditions in what were the biggest
anti-government demonstrations since the 1959 revolution. Diaz-Canel has
blamed the unrest on the United States, saying protesters were manipulated
by U.S.-orchestrated social media campaigns.

 

The private sector in Cuba has gradually expanded since the 1990s to
encompass more than 600,000 self-employed license holders in many sectors
and includes business owners and their employees, tradespeople and taxi
drivers.

 

The so called non-state sector, including agriculture, provides work for a
third of the 4.9 million officially employed Cubans in the labor force, with
the remainder working for the state.

 

The Thomson Reuters Trust Principles.

 

 

German Greens' chancellor candidate urges higher tariffs on Chinese imports

(Reuters) - Germany's Green Party's chancellor candidate said the European
Union should impose tougher barriers for Chinese imports to prevent dumping
and poor environmental standards.

 

"We have to uphold standards when there is dumping in other world regions,"
Greens candidate Annalena Baerbock told Sunday paper Frankfurter Allgemeine
Sonntagszeitung (FAS) in an interview.

 

"This could for instance take the form of a surcharge on companies that have
been subsidised on the Chinese market or that are not subject to
environmental standards," she added.

 

Chancellor Angela Merkel's Christian Democrats, currently governing in
coalition with the centre-left SPD, are seen as front-runners in the Sept.
26 general elections, but a recent weakness in polls has opened a path to
power for a mooted three-way coalition of the SPD, Greens and liberal Free
Democrats. read more

 

In the interview, Baerbock also urged more state support in areas such as
public tenders for European industrial champions or consortia that provide
key technologies to reduce reliance on Chinese suppliers.

 

The Thomson Reuters Trust Principles.

 

 

 

China tightens scrutiny over IPO price-setting, punishes 19 institutions

(Reuters) - China's securities regulators punished 19 institutional
investors as authorities tighten scrutiny over price-setting behaviours
under a more liberalised listing system.

 

China launched the tech-focused STAR Market in Shanghai in mid-2019, along
with the introduction of a U.S.-style, registration-based initial public
offering (IPO) system in that market.

 

The Securities Association of China (SAC) said late on Friday that a joint
probe recently with the Shanghai Stock Exchange over STAR IPOs had exposed
issues with 19 institutional investors.

 

The problems included weak internal controls, inadequate rationale for
price-settings, non-compliance with stipulated procedures and improper
storage of working papers, the SAC said in a statement, without identifying
the companies.

 

One insurer has been temporarily banned from participating in the
institutional portion of IPO subscriptions, while eight fund houses and one
asset manager have been barred from the share placement market for a month,
according to the statement.

 

SAC said regulators will strengthen supervision and step up penalties
against misbehaviour to maintain order for IPO price-setting and protect
investors.

 

China has already replicated the registration-based IPO system to Shenzhen's
start-up board ChiNext, and aims to gradually roll out the mechanism to the
rest of China's stock market, which still uses a system based on regulators'
approvals.

 

The Thomson Reuters Trust Principles.

 

 

 

Dollar retreats as consumer sentiment dives

(Reuters) - The U.S. dollar fell to a one-week low against a basket of
currencies on Friday, after a survey showed U.S. consumer sentiment dropped
sharply in early August, raising worries of a dent in economic activity.

 

The University of Michigan said its preliminary consumer sentiment index
fell to 70.2 in the first half of this month from a final reading of 81.2 in
July. That was the lowest level since 2011 and one of the six largest drops
in the past 50 years of the survey. read more

 

Investors this week have been treated to a mixed bag of data. While U.S.
producer prices data out Thursday showed surging prices, bolstering the case
for the Federal Reserve removing some of its stimulus, it followed U.S.
consumer price data on Wednesday, which indicated inflation may be peaking,
potentially giving the Fed room to remain accommodative for longer. read
more

 

"The prime driver this week was this idea that a deceleration in inflation
pressures will reduce the impetus for an earlier tapering of Federal Reserve
asset purchases," said Karl Schamotta, chief market strategist at Cambridge
Global Payments in Toronto.

 

"What's happened here is traders have moved their expectation for a tapering
announcement from September toward November, perhaps even December,"
Schamotta said.

 

The dollar index , which measures the greenback against a basket of six
rivals, was 0.5% lower at 92.521, its lowest since Aug 6. For the week the
index was down 0.3%.

 

Traders continue to look toward the Fed's central banking conference in
Jackson Hole, Wyoming, later this month, for clues to the Fed's next move.

 

"(Federal Reserve Chair Jerome) Powell may use the Jackson Hole platform to
provide further clarity on the sequencing of the Fed’s monetary tightening
operations - making it clear that a tapering announcement, when it comes,
will not act as a temporal anchor for changes in the Fed funds rate," said
Schamotta.

 

"The goal is to tame a possible taper tantrum before it gets started," he
said.

 

Sterling was 0.45% higher against the broadly weaker dollar, but remained on
pace for a second straight week of modest declines as investors look for
fresh catalysts for the British currency's next move after Britain's growth
figures for the second quarter came in as expected.

 

Elsewhere, bitcoin climbed 4.78% to $46,571.09, nearing Wednesday's
three-month peak of $46,787, while Ethereum rose 6.03% to $3,228.33.

 

The Thomson Reuters Trust Principles.

 

 

Analysis: Taliban gains give investors cause for concern beyond Afghanistan

(Reuters) - The Taliban's rapid advance towards Kabul is not only causing
concern about Afghanistan's future but also about the impact on other
countries in the region and their economies.

 

Iran and then Iraq lie to the west of Afghanistan. Tajikistan, Turkmenistan
and Uzbekistan are to the north. But the immediate focus for financial
markets and investors is Pakistan to the east.

 

Pakistan has a large public debt, a sizeable equity market (.KSE) and is
dependent on a $6-billion IMF programme. The prospect of years of violence
and waves of refugees will add pressure to its fiscal repair plans.

 

"It is a very troubling situation and unfortunately has set the region back
many years," said Shamaila Khan, head of emerging market debt at
AllianceBernstein. "I think the neighbouring countries will have to deal
with an influx of refugees in the coming months/years".

 

Reuters Image

The United Nations refugee agency UNHCR estimates 400,000 Afghans have fled
their homes this year. Only a few hundred of these displaced persons are
known to have fled Afghanistan but the UNHCR estimates there are 2.6 million
Afghan refugees worldwide, with 1.4 million in Pakistan and 1 million in
Iran.

 

Pakistan's bond prices have already fallen nearly 8% this year, though many
financial analysts think this has probably had more to do with delays in it
obtaining its latest tranche of IMF money than with the security situation.

 

Nearly 10,000 Pakistani civilians were killed in attacks between 2010 and
2015 South Asia Terrorism Portal figures show. Those numbers have fallen
since then but there are concerns they will now rise again.

 

"Another influx of refugees and the spillover of violent groups motivated to
destabilise urban areas and infrastructure, particularly, on the western
side of Pakistan... could set Pakistan's recovery and reform story back,"
said Hasnain Malik, an analyst at research firm Tellimer.

 

He suggested risk might be reduced if the Taliban were included in the
Afghan government.

 

STRATEGICALLY IMPORTANT

 

Pakistan's IMF programme is its thirteenth in 30 years and is needed to help
the government tackle a public debt of about 90% of GDP.

 

Any Taliban attacks inside Pakistan could raise security concerns and make
it harder for Islamabad to meet targets set by the IMF. At the same time,
some investors say, they could increase Pakistan's strategic important for
the West.

 

"The IMF is carefully watching the fast-moving situation on the ground in
Afghanistan," a Fund spokesperson said on Friday, adding that it was
premature to speculate about what impact the security situation could have
on Pakistan. read more

 

"If the Taliban takes control (of Afghanistan), Pakistan becomes even more
strategically important to the U.S," said Kevin Daly, a portfolio manager at
ABRDN.

 

This, he said, could help keep IMF money flowing.

 

Kay Van-Petersen, a global macro strategist at Saxo Capital Markets in
Singapore, said the impact of the crisis in Afghanistan could ultimately
spread far wider.

 

Many Afghan refugees could seek refuge in Europe, he said, following an
earlier influx of migrants, mostly fleeing war or persecution in Syria,
other Middle Eastern countries and Afghanistan.

 

If the refugees travel via Turkey, he said, they could help Turkish
President Tayyip Erdogan make political or financial demands of the European
Union.

 

"Basically it's a lever for Erdogan to pull with the European Union ...'Pay
us to take care of these refugees, or we are just going to let them
through'," he said.

 

This could weigh on the euro and lift Turkey's lira , he said.

 

Emerging market watcher Tim Ash at BlueBay Asset Management said that the
Taliban's advances as NATO troops withdrew had damaged U.S. credibility and
fed into the growing rivalry between Washington and China. read more

 

"Comparisons with Vietnam abound," Ash said, recalling the evacuation of the
last Americans and many South Vietnamese via from the roof of the U.S.
embassy as Saigon fell in 1975. "With that feeling of a Saigon moment and
the last U.S. helicopter out."

 

The Thomson Reuters Trust Principles.

 

 

 

EXCLUSIVE Olam seeking about $3 bln for London IPO of food ingredients unit
- sources

(Reuters) - Olam International (OLAM.SI) is considering raising about 2
billion pounds ($2.8 billion) through a London listing of its food
ingredients unit next year, sources familiar with the matter said on Friday,
as the Singapore-based trading house seeks to boost its valuation and step
up acquisitions.

 

The company, one of the world's biggest agricultural commodity traders, is
listing Olam Food Ingredients (OFI) as part of a business overhaul flagged
last year to focus on the two core businesses of OFI and Olam Global Agri
(OGA) after the sale of sugar, rubber and other portfolios.

 

"It will be a substantial IPO. It will be amongst the larger IPOs done on
the London Stock Exchange (LSE) in the recent past," co-founder and CEO
Sunny Verghese told Reuters in an interview, while declining to give a
fundraising target.

 

The proceeds would allow OFI to accelerate growth and also accelerate
acquisitions, he added.

 

"One of the reasons that we are doing this exercise of re-organising is to
make sure that we can focus and simplify a fairly diverse complex
portfolio," Verghese said

 

Singapore state investor Temasek Holdings (TEM.UL) became Olam's controlling
shareholder in 2014 after the trader's accounting practices were questioned
by short-seller Muddy Waters in 2012. Mitsubishi Corp (8058.T) became a
shareholder in 2015.

 

"London being a major financial centre has no lack of liquidity and more
importantly has investors who know how to price these things correctly,"
said Justin Tang, head of Asian research at United First Partners in
Singapore.

 

OFI's portfolio includes cocoa, coffee and edible nuts, while Olam Global
Agri (OGA) comprises grains, edible oils, rice and cotton, among others.

 

OFI and OGA's competitors include privately-held Louis Dreyfus, Swiss-listed
Barry Callebaut (BARN.S) and Archer-Daniels-Midland (ADM.N), some of whom
have revamped their businesses amid stiff competition.

 

Olam's shares, which have a small float, ended up 2.8% on Friday, valuing
the company at S$5.5 billion.

 

Verghese said OFI could join London's FTSE-100 (.FTSE) index of blue-chip
companies.

 

A valuation above 4 billion pounds would enable OFI to get into the index
and obtain a premium listing - which would require the company to have a
free float of at least 25% and meet a tougher set of corporate governance
requirements.

 

Winning OFI's listing would be a boon for the LSE, which is trying to
attract more global companies following Britain's exit from the European
Union.

 

Olam has said it is seeking a concurrent secondary listing in Singapore for
OFI by the first half of 2022.

 

Two of the sources said Olam had appointed Citigroup, Credit Suisse, HSBC,
JPMorgan and Morgan Stanley to work on OFI's IPO. Four of the banks declined
to comment, while there was no response from Morgan Stanley.

 

Verghese said OFI's IPO could be completed by the second quarter of next
year, and OGA could be listed as early as the fourth quarter of 2022.

 

On Friday, Olam reported a more than doubling of first-half operational
profit, excluding exceptional items, to a record S$436.6 million ($321.5
million)

 

($1 = 0.7242 pounds)

 

The Thomson Reuters Trust Principles.

 

 

 

Peloton is sued for improperly charging sales tax

(Reuters) - Peloton Interactive Inc (PTON.O) subscribers have filed a
proposed class action lawsuit accusing the maker of at-home stationary
bicycles of improperly charging sales tax on memberships in New York,
Virginia and Massachusetts.

 

In a complaint filed on Thursday night in federal court in Manhattan,
Brandon Skillern and Ryan Corken said Peloton should have treated its
$39-a-month "All Access" and $12.99-a-month digital memberships as
tax-exempt "digital goods" in the three states.

 

They said Peloton has refused to reimburse them for the 6.3% or 8.9% "sales
tax" it had collected before Jan. 1, when it changed its taxation practices.
Millions of dollars nationwide may have been collected improperly, they
said.

 

Peloton "willfully and knowingly overcharged its subscribers" to maximize
profit, according to the complaint.

 

The New York-based company declined to comment on Friday, saying it does not
discuss pending litigation. Lawyers for the plaintiffs had no immediate
additional comment.

 

Skillern moved last year to Vienna, Virginia, from the New York City borough
of Brooklyn, while Corken lives in Reading, Massachusetts.

 

They are seeking unspecified compensatory, punitive and triple damages for
breach of contract, and violations of New York and Virginia consumer
protection laws.

 

Peloton is scheduled to release fiscal fourth-quarter results on Aug. 26.

 

Revenue more than doubled in the nine months ended March 31 as the pandemic
led to more people working out at home.

 

In May, Peloton agreed to recall its Tread+ treadmill, which a U.S.
regulator linked to dozens of incidents and at least one death, after
initially resisting.

 

The case is Skillern et al v Peloton Interactive Inc, U.S. District Court,
Southern District of New York, No. 21-06808.

 

The Thomson Reuters Trust Principles.

 

 

 

Zambia: After Polls Lusaka Will Face Huge IMF Pressure to Restructure the
Economy

Zambians went to the polls on Thursday to elect a new president and members
of the National Assembly and results were expected by the weekend.

 

It was a crowded field of 19 candidates vying for the presidency, but the
real contest was between President Edgar Lungu and billionaire Hakainde
Hichilema.

 

In the run-up to the polls, political violence marred campaigns and
President Lungu authorised a heavy-handed response by ordering Zambian
military on the streets. Political analysts billed the Thursday polls as a
referendum on the 65-year-old leader's performance since his rise to power
in 2015.

 

President Lungu, who succeeded the late Michael Sata, served as Justice and
Defence minister under the previous administration. He is a lawyer by
profession.

 

Under his stewardship, the southern African country started choking from
colossal debt, runaway inflation, corruption, and a weakening currency.

 

An Afrobarometer Sustainable Development Goals Scorecard for Zambia,
released last month, showed that "the country is experiencing worsening
poverty, hunger, and economic and ethnic inequalities compared to five years
ago."

 

President Lungu's government has also been accused of lacking fiscal
discipline at a time when the economy is suffering under the weight of a
Covid-19 pandemic.

 

Zambia's democratic credentials also took a severe battering with real
concerns ahead of the polls that the incumbent might refuse to step down if
he loses to his bitter rival.

 

Steven Chan, a professor of world politics at the University of London, said
the developments ahead of the elections such as the debt crisis and the
political upheavals will ensure that Zambia remains under the spotlight well
beyond the polls.

 

"The eyes of the world are turning upon Zambia," Dr Chan wrote on Twitter on
Wednesday. "Everyone knows this is a test for both democracy and the future
of a country that has curiously never achieved its potential.

 

"Whatever the result, fair or not, of the election; Zambia will immediately
face huge (International Monetary Fund) IMF pressures to restructure its
economy.

 

"Nationwide projects based on debt, the hallmark of the (President) Lungu
government, simply means unsustainable debt. Now the piper wants his fee."

 

The Zambian crisis first came into the fore in November last year when the
country defaulted on a $42.5 million repayment on a Eurobond.

 

Observers say the Lungu administration spent some of the loans on
infrastructure that could soon turn into white elephants.

 

On the eve of the polls, President Lungu commissioned the Simon Mwansa
Kapwepwe International Airport in the country's second largest city of Ndola
and the commercial hub of its main copper producing region.

 

The massive project cost $400 million and was financed through a
government-to-government loan from China's Export-Import Bank.

 

Aviation Industry Cooperation of China, which constructed the airport, said
it has a 3.5 kilometre runway and the terminal could handle as many as a
million passengers a year.

 

President Lungu's government ploughed ahead with the project despite a drop
in the price of copper, Zambia's main export, and the devastating impact of
Covid-19 pandemic on the economy.

 

Zambia's external debt to gross domestic product ratio now exceeds 100
percent and the country is now defaulting on repayments including to China.

 

The IMF has been mum about Zambia's pleas for debt relief and observers
expect the lender to press for austerity measures after the polls a
condition for new loans.

 

Since taking over power, President Lungu saw Zambia's economic growth
slowing to about three percent.

 

Asian country

 

The country's economy has been squeezed by an avalanche of Chinese debt and
at some point there were fears that the Asian country will take over the
power utility, Zambia Electric Power Corporation (Zesco).

 

The controversy sparked xenophobic sentiments against Chinese nationals in
the southern African country.

 

Lusaka's debt to the Chinese government rose to more than $3 billion.
Zambia's debt under President Lungu tripled to $19 billion.

 

"The country's resources and its future are now mortgaged to international
creditors," said Ringson Chikohomero from the Institute for Security Studies
in South Africa.

 

"Compounding matters is the government's spending indiscipline and tight
squeeze on the social development budget.

 

"While the mining sector has performed well against increased demand for
copper, the administration seems to have failed to tap into this boom.

 

"Instead, it has tried to increase its revenue by introducing a raft of
taxes in the mining sector.

 

"As a result, Zambia now has one of the highest mining taxes in the world."

 

President Lungu's administration has also been pressing ahead with
controversial moves to "nationalise" strategic mines, which analysts say
would damage the country's image and deter new investments.

 

A dispute with multinational corporation Konkola is raging after the
government tried to take over its mines.

 

The government is also locked in a bitter dispute with Glencore, one of the
largest investors in Zambia's mining sector.

 

"These ill-advised decisions damage the country's reputation as a preferred
investment destination, strangle the flow of much-needed revenue and add to
job and livelihood losses, consigning more Zambians to poverty," Mr
Chikohomero said.

 

It is not only on the economic front that President Lungu's performance has
caused discomfort.

 

On the eve of the polls, Western countries began expressing in public their
fears that Zambia, long considered a beacon of democracy in Africa, was
veering off track.

 

The United State embassy in Lusaka made a subtle warning against the Zambian
leaders that if the August 12 polls do not meet the democratic test, they
could be sanctioned.

 

"When these efforts to support democracy do not work and fundamental human
rights and democratic freedoms are violated, the United States can and does
apply visa restrictions, travel bans and financial sanctions," the US
embassy charge d'affaires David Young said.

 

"We apply these measures because we are serious about our commitment to
human rights and democratic principles.

 

"We will hold accountable any individuals, who promote violence, undermine
electoral processes, engage in fraudulent or corrupt behaviour, or otherwise
violate democratic rights and the foundations of free elections."

 

Lynsey Chutel, in a brief to Foreign Policy, argued on Tuesday the polls
could be serious test for Zambia's stability.

 

"For decades, Zambia was celebrated as a bulwark of democracy in southern
Africa," she wrote.

 

"Under independence hero Kenneth Kaunda, the country played a key role in
the region's liberation movements and used its copper resources to build a
stable state."-East African.

 

 

 

Nigeria: Akwa Ibom, Cross River Communities to Benefit From EU, Ecowas
Intervention

Six communities in both Akwa Ibom and the Cross River States are to benefit
from micro-projects funded by the European Union (EU) in conjunction with
the Economic Community of West African States (ECOWAS).

 

The beneficiary communities in Akwa Ibom State include Otoro Obong, Ikpe
Anang in Etim Ekpo and Ikot Akpan Afaha in Ukanafun local government areas,
while Cross River has Ipong in Obudu, Bojie/Borom in Boki and Akpab Okon Ene
Ita in Bakassi local government areas of Cross River State as beneficiaries.

 

The projects to be implemented in the various communities include the
provision of the borehole, renovation of the town hall, construction of
abattoir, restoration and rehabilitation of electricity supply.

 

The intervention comes under Small Arms and Light Weapons (SALW) action aim
to contribute to building and maintaining peace, security, and stability in
West Africa to ensure conditions for development.

 

Besides, the action is a selected key component of the ECOWAS Conflict
Prevention Framework (ECPF) to augment its efforts at preventing further the
proliferation of illicit trafficking and flow of Small Arms and Light
Weapons in Nigeria.

 

Executive Directive of Leadership Initiative for Transformation and
Empowerment (LITE) -Africa, Dr Joel Bisina, the implementing
Non-Governmental Organization, who visited the communities for assessments,
underscored the overall objective of the action, disclosing that the state
governments, EU and ECOWAS, were able to mop up some arms from these states
and destroyed them in December 2019.

 

He added that about 300 youth from the two states in the South-South
geopolitical zone have been trained on vocational and agricultural skills
and that the beneficiaries would soon be empowered with starter packs,
explaining that the micro-projects were "rewards and incentives for the
communities."

 

"In Nigeria, we are working in seven states including, Akwa Ibom, Cross
River, Kebbi,. Katsina, Sokoto, Kadun and Jigawa states. It is my hope and
prayer that we will have the necessary cooperation of everyone in the
community. While the work is going on, we will be coming from time to time
to do the inspection. One thing especially, our young ones is that
development cannot come to an environment where there is conflict", Bisnia
said.

 

Earlier, Former Chairman, Etim Ekpo, Honourable Udeme Eduo briefed the
leaders, youth and women at Otoro Obong and Ikpe Annang on the mission of
the LITE-Africa's team in their respective domains, and recalled that the
entire area was deserted because of youth restiveness and insurgency,
appealing to them to ensure the success of the projects.

 

Representative of the Chairman of Etim Ekpo, Hon Mkpouto Umanah, Supervisor
for Works and Housing, commended the donor agencies for the intervention and
solicited the cooperation of all and sundry to the completion of the
projects in the communities, stressing the government's commitment towards
the sustenance of peace in the area.

 

In his response, the Chairman of Mboho Annag Welfare Association (MAWA),
Chief Jumbo Paul Akpan, said the communities would support the intervention
and that the abattoir project for Mboho Annang market was selected after the
needs assessment.

 

Similarly, the Village Head of Ikpe Annang, Chief Sunday Udoewoh, expressed
joy that peace has finally returned to the area, reiterating that "the area
was deserted but thank God that things are beginning to pick. I must commend
you for bringing this good thing to this community."

 

Also speaking, former member of Akwa Ibom State House of Assembly,
Honourable Akanimo Edet, urged the people of the area to deepen the peace
process as according to him, "more good things are coming to rehabilitate
the area and we don't want problem and disturbance of the progress of work."

 

For his part, Chairman of Ukanafun local government area, Pastor Godwin
Inyeng equally expressed delight at the initiative and assured of the
council's assistance, adding, "all we want in this place is peace and peace
has come to stay. We will continue to ensure that our people go about their
businesses in a peaceful atmosphere."

 

Meanwhile, the team also visited the project sites at Ipong in Obudu ,
Bojie/Borom in Boki and Akpab Okon Ene Ita in Bakassi local government areas
of Cross River State for assessments.-Vanguard.

 

 

 

Nigeria: Journalists Laud Delta for Capital Projects Focus of 2022 Budget

Journalists under the Correspondents' Chapel of the Nigeria Union of
Journalists (NUJ), Delta State Council, have lauded the state government for
its proactive fiscal initiative by prioritising the capital provision over
the recurrent estimates in the just approved 2022 budget proposal of N425
billion.

 

The commendation was part of the resolutions reached at the monthly meeting
of the chapel held in Asaba on Thursday, which examined certain critical
national issues but bearinging directly on media practictioners nationwide.

 

The chapel noted in particular the emphasis which the state 2022 budget
proposal placed on capital projects over recurrent expenditure, noting that
it is indicative of the administration's desire to consolidate on its
infrastructural development across the state.

 

The journalists said that they found it interesting that the state
government could demonstrate visible concern for the crucial issues of
development of critical infrastructure that bore directly on the lives of
the citizens especially at a time when too many state actors were apparently
being distracted by the politics of 2023.

 

"The focus of the budget is in line with financial and development standards
across the globe aimed at building critical infrastructure, human capital
development and scaling up the welfare of citizens.

 

"This commendation has become necessary at a time when most political state
actors are pre-occupied with politics of 2023.

 

"However, the Delta Government led by Governor Ifeanyi Okowa is still very
much concerned about the development of the state in line with the
administration's 'Stronger Delta' vision," the resolution said.

 

The meeting presided over by the chairman of the chapel, Mr. Dominic
Adewole, also reflected on the administration's consistent high regard for
traditional institutions in the state, which has culminated in a relatively
peaceful atmosphere across communities in the state.

 

"This has also been demonstrated with the building and inauguration of the
state of the art Secretariat for royal fathers in the state," it added.

 

While also commending the government for its relationship with the media,
the chapel, however, called on the Okowa-led administration to expedite
action towards the completion of the NUJ Secretariat along Marian Babagida
Way, Asaba.-This Day.

 

 

Ethiopia: Diaspora Financing GERD Construction, Expediting Development

The financial support from the Diaspora community for the construction of
the Grand Ethiopian Renaissance Dam (GERD) is growing from time to time
thereby expediting development endeavors in their homeland, according to
Ethiopia's Embassy in the U.S.

 

Accordingly, more than 1.62 million Dollar was obtained to the grand project
from GoFundMe, charity and mygerd.com, initiated by Badr Ethiopia, in a
fund-raising event the Embassy hosted recently.

 

Ethiopian Ambassador to the U.S. Fistum Arega tweeted that the Ethiopian
community in that country has transferred 500 thousand USD to finance the
flagship project. The Ambassador further indicated that the transfer has
been made for the second time.

 

"The increase in energy is directly related to the development of the
country." In a similar development, Ethiopian Diaspora Agency announced that
Ethiopians in several states of the U.S. raised more than 62,000 USD in a
one-day webinar campaign.

 

Delivering a speech at the event, Ethiopia's Ambassador and Permanent
Representative to the UN Taye Atske-Selassie praised the Diaspora
community's continued financial support to the GERD.

 

The Ambassador also extended calls for increased support to expedite
development endeavors in their homeland.

 

"The diplomatic victory over GERD negotiations has been achieved by combined
effort of all Ethiopians; the effort of the Diaspora community is
undeniable," Taye added.

 

During the webinar meeting, participants pledge to uphold the building of
the dam financially, professionally and in other ways till its completion.

 

Similar fund-raising events would be held in several states of the U.S. in
the future, it was stated.-Ethiopian Herald.

 

 

 

Namibia: !kharoxas to Benefit From Solar Project

THE community of farm !Kharoxas recently became the beneficiary of a solar
power plant that was set up by the Namibia University of Science and
Technology (Nust) in partnership with the Technical University of Munich
(TUM) in Germany.

 

The power plant is a living laboratory research centre and is part of the
Sustainable Energies, Entrepreneurship and Development (Seed) project, which
was commissioned at the TUM in March 2020.

 

The aim is to offer higher education at the intersection of sustainable
energy and entrepreneurship.

 

According to James Katende, a professor at Nust, !Kharoxas was an ideal
location because available funds could only cover a small plant.

 

"We chose a location with a few homes, but with the potential for
agricultural and other entrepreneurial activities," Katende said last week
at the commission of the power plant at !Kharoxas.

 

He said the aim of the laboratory is to exploit Namibia's abundant renewable
energy resources, such as solar, wind and biomass.

 

"The living lab will be a bedrock for teaching and research on concepts of
sustainable energy and entrepreneurship. Hence curricula and research theses
incorporating the activities of the living lab are expected to happen as
soon as possible," he added.

 

The Namibian was informed that constructng the power plant as well as
replacing a borehole pump in the area cost about N$894 000.

 

The professor added that the power plant should help fast-forward growth in
the community predicting that by 2024 there will be a complete
socio-economic transformation at !Kharoxas.

 

"We had to provide energy to remote communities which have no access to the
grid so that they can start entrepreneurial activities which will generate
funds and therefore raise the standard of living in these communities," he
noted.

 

!Kharoxas is a settlement about seven kilometers from Groot Aub and
according to Katende, its residents showed a lot of enthusiasm and interest
in the project.

 

The power plant, known as the NUST SEED Living Lab is a 20-killowat solar
panel that was designed and specified by the NUST team and installed by
Namibian Engineering Corporation.

 

Niko Bruckner, chief executive officer of the corporation gave a brief
explanation of how the power plant will work.

 

"All the energy that is generated from the sun is converted into electricity
that is stored in batteries and will be distributed to the communities once
it has been connected," Bruckner explained.

 

He further told the community that while the solar plant is very expensive,
it is a good investment as solar power is a sustainable energy source.

 

The solar panel has been built in such a way that the electronics and the
battery can be extended as required in the future.

 

The project is being funded by the Germany Academic Exchange for five years
from 2020 to 2024.

 

The TUM SEED coordinates eight partner universities from the Global South
collaborating on sustainable energies and entrepreneurship skills
development at postgraduate level. NUST is one of those universities engaged
in the project.

 

Chief Juliane Gawa!nas of the /Khomanin Traditional Authority, who was
present at the commission, extended her gratitude to NUST and TUM for
choosing !Kharoxas as the ideal location for the project.

 

"We are so grateful for looking at us and setting up your project here. You
should, however, also go to other communities in Namibia and look at them,
and see where you can assist them as well," she said.-Namibian.

 

 

India's commerce minister faces heat for criticism of businesses including
Tata

(Reuters) - India's commerce minister faced heat on social media on Saturday
for his remarks that many big domestic businesses had overlooked national
interests and that $106 billion Tata Group's objections to proposed policy
changes for e-commerce had upset him.

 

At an event organized by the Confederation of Indian Industry (CII) on
Thursday, Minister Piyush Goyal criticised Tata and more broadly said local
businesses should not just focus on profits or think of bypassing local
laws, according to media reports and a source who attended the event.

 

The comments caught public attention and stoked a debate on social media
after The Hindu newspaper reported on Saturday the government had asked the
CII to block videos with Goyal's comments.

 

Two links to those videos on Goyal's speech shared with journalists were now
marked private and blocked. The CII and Goyal's office did not respond to a
request for comment.

 

"The kind of language used against industry captains & calling their work
against nation's interest is shameful ... CII should demand an apology
instead of helping him by pulling down the video," said Priyanka Chaturvedi,
a lawmaker and opposition leader.

 

A spokeswoman of India's main opposition Congress Party, Supriya Shrinate,
said on Twitter Goyal's remarks were "undignified".

 

Goyal's comments on Tata came after Reuters last month reported the
conglomerate was among most vociferous in telling the government in a July
meeting that proposed e-commerce rules will have a major impact on its
business and bar its joint venture partners like Starbucks (SBUX.O) from
selling goods on Tata's shopping websites.

 

At the CII event, Goyal said Tata's objection to the rules had hurt him,
saying he had conveyed that position to Tata Sons Chairman N.
Chandrasekaran, the source who attended said.

 

Tata declined to comment on Saturday.

 

Goyal has also repeatedly criticized Amazon (AMZN.O) and Walmart's (WMT.N)
Flipkart for allegedly bypassing foreign investment rules for e-commerce.
This week, he also invoked the "Quit India" movement in parliament as he
welcomed a court order that allowed an antitrust probe of the two companies
to continue.

 

The Confederation of All India Traders, however, welcomed Goyal's stand on
Saturday, saying it was "highly unfortunate" that Tata was opposing
government's e-commerce rules.

 

The 153-year-old Tata Group has big e-commerce plans and is planning launch
of an app that will integrate several of its top brands, but the proposed
policy changes have spooked it, Reuters has reported.

 

The Thomson Reuters Trust Principles.

 

 

 

 

 


 


 


 

 

 

 


 

INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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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