Major International Business Headlines Brief::: 22 August 2021

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Major International Business Headlines Brief::: 22 August 2021

 


 

 


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ü  Nvidia's takeover of Arm raises serious concerns, says watchdog

ü  New visas urged to tackle EU lorry driver shortage

ü  Apple delays recalling staff to the office until 2022

ü  M&S says recovery plan boosting sales and profits

ü  Yellen backs reappointing Powell as Fed chair - Bloomberg

ü  Private equity firms circling Sainsbury's with view to launch bids -
Sunday Times

ü  GM expands Chevy Bolt EV recall for fire risk, will take $1 billion hit

ü  Griffin's Citadel plans to redeem $500 mln from Melvin Capital - WSJ

ü  Mexico wants talks with United States over auto content rules in trade
pact

ü  Kenya: How Boda Boda Operators Have Become 'Second Parents' to Teen Girls

ü  Uganda: Why Govt Suspended City Transport Plan

 

 

 

 


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Nvidia's takeover of Arm raises serious concerns, says watchdog

The planned £29bn purchase of UK chip designer Arm by US firm Nvidia raises
"serious" competition concerns, the UK's competition watchdog has said.

 

The Competition and Markets Authority said it was worried the deal would
stifle innovation in several areas, such as gaming and self-driving cars.

 

As a result, the CMA says a more in-depth investigation into the takeover is
warranted.

 

Nvidia said the deal would benefit Arm, licensees and competition in the UK.

 

"We look forward to the opportunity to address the CMA's initial views and
resolve any concerns the government may have," a spokesperson for the US
tech company said.

 

Japan's Softbank, which currently owns Cambridge-based Arm, agreed to sell
it to Nvidia in September last year.

 

UK intervenes in takeover of chip designer Arm

Nvidia takeover of chip designer Arm investigated

Arm's intellectual property (IP) is used by some of Nvidia's rivals to
produce semiconductor chips and the CMA suggested that if Nvidia controlled
Arm it could cut off access to that IP for its rivals.

 

Nvidia, the world's largest graphic and AI chip maker, had offered up
remedies to get the deal approved by the UK regulators, but the CMA said
these would not be enough to allay its concerns.

 

The takeover will now likely be subject to a deeper "phase 2" investigation,
which increases the likelihood that it will be stopped altogether.

 

A spokesperson for the Department for Digital, Culture, Media & Sport (DCMS)
said: "The Digital Secretary will make a decision on whether to proceed to
the next phase of the investigation in due course."-BBC

 

 

 

New visas urged to tackle EU lorry driver shortage

The UK should grant 10,000 EU lorry drivers visas to solve a labour crisis
that has led to shortages of goods on British supermarket shelves, a lobby
group says.

 

Logistics UK, which represents freight firms, says Brexit and Covid-19
caused lorry drivers to leave the UK, but a temporary visa could lure them
back.

 

It said a similar visa scheme granted 30,000 permits for agriculture
workers.

 

However, the government says employers must invest in the UK workforce.

 

The Road Haulage Association said this summer there was a shortfall of about
60,000 lorry drivers in the UK and it's recently contributed to shortages of
everything from milk to Haribo sweets.

 

Supermarkets such as Tesco and Aldi have been offering bonuses and other
incentives to boost recruitment, but the labour squeeze continues.

 

Analysis of the latest ONS Labour Force Survey for the second quarter
suggests that 14,000 EU lorry drivers left jobs in the UK in the year
to June 2020, and only 600 had returned by July 2021.

 

Alex Veitch, general manager of public policy at Logistics UK, said the
thousands of EU drivers who left the UK due to Brexit and the pandemic were
vital to the movement of goods around the country and beyond.

 

"Logistics is facing a long-term shortage of staff, which has been made much
worse by the loss of our EU workforce," he said.

 

"While we wait for new recruits to complete their training, which can take
up to nine months, the logical solution would be to introduce a temporary
visa scheme to keep the vehicles moving. After all, there is no point in
picking and packing food if there is no one available to move it to buyers."

 

A government spokesperson said in response to the push for temporary visas:
"The British people repeatedly voted to end free movement and take back
control of our immigration system and employers should invest in our
domestic workforce instead of relying on labour from abroad.

 

"We recently announced a package of measures to help tackle the HGV driver
shortage, including plans to streamline the process for new drivers to gain
their HGV licence and to increase the number of tests able to be conducted.

 

"We have also temporarily relaxed drivers' hours rules to allow HGV drivers
to make slightly longer journeys, but these must only be used where
necessary and must not compromise driver safety."-BBC

 

 

 

Apple delays recalling staff to the office until 2022

US tech giant Apple has delayed recalling staff to the office until January
at the earliest amid fears over surging Covid cases.

 

Employees were informed of the decision in a company memo on Thursday, which
was first reported by Bloomberg News.

 

The firm told staff it would reconfirm plans a month in advance and advised
them to get vaccinated.

 

It is the latest US firm to revise its plans in the light of the impact of
the Delta variant on the country.

 

Apple had previously called for staff to go back to the office by early
September, before changing that to October.

 

When they are required to return, they will be expected to work at the
office at least three days a week.

 

 

The company is also increasing its programme of Covid tests for staff at
home to as many as three a week, Bloomberg reported.

 

Apple has made no official comment on the reports.

 

Rising cases

According to Bloomberg, Apple said it had no plans to shut down its offices
or its retail stores.

 

However, the agency also said one Apple store in Charleston, North Carolina,
had been closed after more than 20 employees either tested positive for
Covid or had been exposed to the virus.

 

Some other US stores are said to have cut their opening hours because of
sick or self-isolating staff.

 

Other big tech firms have been altering their return-to-work plans for
employees as Covid cases rise in the US, with some stipulating that staff
working in the office must be vaccinated.

 

Google has announced that it will delay a return to the office until 18
October.

 

The company has also joined Facebook in saying it will require US workers
returning to the office to be vaccinated.

 

Twitter has paused its reopening, closing offices in San Francisco and New
York once again.

 

The two Twitter offices had been operating at up to 50% capacity for staff
who wanted to return.

 

Amid growing concern about the spread of the virus, the director of the
National Institutes of Health, Dr Francis Collins, warned last weekend that
the US could soon see Covid-19 cases return to 200,000 a day, a level last
seen at the start of this year.-BBC

 

 

 

M&S says recovery plan boosting sales and profits

Shares in Marks & Spencer have jumped almost 12% after the retail giant
issued a surprise profits upgrade thanks to better-than-expected sales.

 

The chain said while there had been an element of pent-up consumer demand in
recent trading, there were signs that its latest turnaround plan was
working.

 

Meanwhile, UK retail sales saw an unexpectedly sharp fall of 2.5% between
June and July, official figures showed.

 

The fall was partly due to weaker food sales following the end of Euro 2020.

 

However, while the Office for National Statistics (ONS) said sales fell last
month to the lowest level since shops reopened in April, they remained 5.8%
ahead of pre-pandemic levels.

 

'Good recovery'

M&S said its "encouraging performance" had confirmed that its Never The Same
Again transformation programme - which has aimed to cut costs and has led to
several store closures - was on track.

 

 

Revenues from its food business in the 19 weeks to 14 August were up 10.8%
on last year and 9.6% higher than in 2019, before the pandemic struck.

 

It added that its clothing and home business had seen a "good recovery",
with revenue up 92.2% from last year and down just 2.6% on 2019.

 

However, it warned that there remained "substantial uncertainty as to the
continued strength of consumer demand, as well as disruption in both supply
chains and consequent pressures on costs and margin".

 

Despite this, M&S said that - assuming there are no further Covid-related
restrictions on trading - it expected full-year profits to be "above the
upper end of previous guidance of £300-350m".

 

The news sent shares in M&S up by more than 11% to 158.65p.

 

The latest retail sales figures from the ONS showed food store sales slipped
by 1.5% in July, compared with a 3.9% rise in the previous month when they
had been boosted by the Euro 2020 tournament.

 

Non-food stores reported a 4.4% decline in volumes, with the ONS seeing
declines at second-hand goods stores and computer and telecoms equipment
stores.

 

"Following the Euro 2020 related boost in June, retail sales fell in July to
their lowest level since shops reopened in April, but still remain well
above pre-pandemic levels," said Jonathan Athow, deputy national
statistician for economic statistics at the ONS.

 

"Food sales fell back as further lifting of hospitality restrictions meant
consumers had more opportunities to spend outside retail."

 

He added that heavy rainfall at the start of July had also hit fuel sales,
which dipped for the first time since February.

 

Sales at clothing stores and household stores also fell. The ONS said the
only sector to see a rise was department stores, with a 0.2% increase.

 

Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said July
was a "washout for sales".

 

"While the rain came down, we didn't see the point in getting a new
wardrobe, especially with so many people holidaying in the UK this year, so
clothing sales didn't get a boost from last-minute swimwear purchases."

 

She said food was also hit: "In the absence of a decent BBQ season, we gave
ourselves a bit of a break from the kitchen, buying less food, and spending
more in restaurants and takeaways."

 

However, Retail Economics boss Richard Lim says there was some demand for
new clothes "as the backlog of weddings and other larger social gatherings
filled households' calendars, giving shoppers a reason to purchase new
outfits".-BBC

 

 

 

Yellen backs reappointing Powell as Fed chair - Bloomberg

(Reuters) - U.S. Treasury Secretary Janet Yellen has told senior White House
advisers she backs reappointing Jerome Powell as U.S. Federal Reserve Chair,
whose term expires in February, a Bloomberg News reporter wrote on Twitter.

 

President Joe Biden has not made a decision and will likely weigh in around
Labor Day in early September, the reporter added in the tweet.

 

A spokesperson for the U.S. Treasury Department declined to comment. No
comment was immediately available from the White House.

 

Powell was elevated to Fed chair by President Donald Trump in 2018,
replacing then Fed chair Yellen.

 

Republican Senator Steve Daines, a member of the Senate Banking Committee,
urged Biden in a letter last week to keep Powell at the helm of the Federal
Reserve for another four years to build confidence in an improving economy.
read more

 

Renominating Powell "would send a strong signal to households, businesses,
and consumers that the head of the Federal Reserve continues to enjoy broad
bipartisan support, and will act as necessary to achieve its dual mandate of
price stability and maximum employment," he wrote.

 

After the coronavirus pandemic prompted widespread shutdowns last year, the
Powell-led Fed slashed its benchmark overnight interest rate to near zero
and began a massive bond-buying effort. That support is credited with
heading off a financial crisis and paving the way for a rapid economic
rebound.

 

A White House official last month said Biden would soon be engaging his
senior economic team in "a careful and thoughtful process" about Fed
appointments.

 

Powell has his share of critics, including members of the climate activist
group 350.org, who are calling on Biden to nominate a "climate leader" to
replace Powell and who plan to protest against Powell's leadership during
the Fed's annual central banking conference next week in Jackson Hole,
Wyoming.

 

The Thomson Reuters Trust Principles.

 

 

 

Private equity firms circling Sainsbury's with view to launch bids - Sunday
Times

(Reuters) - Private equity companies are circling British supermarket group
Sainsbury's (SBRY.L) with a view to possibly launching bids of more than 7
billion pounds ($9.53 billion), The Sunday Times reported.

 

American buyout giant Apollo (APO.N) is said to be running the rule over the
supermarket group, the newspaper reported.

 

It remains in talks to join the Fortress-led consortium bidding for
Morrisons and any involvement in that deal may preclude a move for
Sainsbury's, the report said, adding Apollo's interest in Sainsbury's is
exploratory.

 

British supermarket group Morrisons (MRW.L) said on Thursday its board would
unanimously recommend U.S. private equity group CD&R's 285 pence a share
offer worth 7 billion pounds and drop its previous recommendation for a 6.7
billion pound bid from a consortium led by SoftBank (9984.T) owned Fortress.
read more

 

($1 = 0.7342 pounds)

 

 

 

GM expands Chevy Bolt EV recall for fire risk, will take $1 billion hit

(Reuters) - General Motors Co (GM.N) said on Friday it would take a hit of
$1 billion to expand the recall of its Chevrolet Bolt electric vehicles due
to the risk of fires from the high-voltage battery pack - a blow for the
largest U.S. automaker as it seeks to ramp up EV sales.

 

The Detroit company also said it would indefinitely halt sales of the EVs
due to the issue and will seek reimbursement from battery supplier LG. The
latest recall covers 73,000 vehicles from model years 2019 through 2022.

 

“The reserves and ratio of cost to the recall will be decided depending on
the result of the joint investigation looking into the root cause, currently
being held by GM, LG Electronics and LG Energy Solution,” LG said in a
statement, referring to its subsidiaries.

 

LG added that it is actively working with its client and partners to ensure
that the recall measures are carried out smoothly.

 

 

GM shares were down 2.2% in after-hours trade after dipping 0.6% during
Friday's regular session.

 

Earlier this month, South Korea's LG Electronics Inc (066570.KS) cut its
second-quarter operating profit by more than a fifth to reflect costs for
the GM recalls. read more

 

LG Electronics has supplied GM with battery modules made with cells produced
by LG Chem's (051910.KS) wholly owned battery subsidiary LG Energy Solution
(LGES).

 

Earlier this year, Hyundai Motor Co (005380.KS) said it would spend $900
million to replace LG batteries in some 82,000 EVs due to fire risks. read
more

 

On Friday, GM said the recall covers all remaining Bolt vehicles not
previously recalled in July. GM said it will replace defective battery
modules in Bolt EVs and EUVs with new modules. The $1 billion price tag for
the latest recall comes on top of $800 million GM said previous Bolt recalls
had cost. read more

 

GM and LGES have a joint venture, Ultium Cells LLC, that is building battery
cell plants in Ohio and Tennessee, with plans to add two more after that. GM
has said it will use a different-generation battery when it launches
electric Hummer and Cadillac vehicles over the next year.

 

In July, GM issued a recall for nearly 69,000 Chevrolet Bolts for fire risks
after reports of two fires and said it would replace defective battery
modules as needed. Friday's action expands the population of vehicles for
the same issue. read more

 

NEW CONSUMER WARNING

 

GM, which said Bolt sales would cease until it was satisfied with the fix,
said it is "working aggressively with LG to increase (battery module)
production as soon as possible." GM added it will notify customers when
replacement parts are ready.

 

Some Bolt EVs recalled in July were previously recalled last November to
update software to address fire risks, but at least one fire occurred after
the software update. GM said on Friday there had been a total of 10 Bolt
fires.

 

The July recall came after GM and the National Highway Traffic Safety
Administration (NHTSA) urged Bolt owners to park their vehicles outside and
away from homes after charging. GM on Friday reiterated that owners of the
newly recalled vehicles should park them outside after charging and not
leave them charging indoors overnight.

 

On Friday, NHTSA issued a new consumer warning to Bolt owners about the
issue and said it is still investigating.

 

The automaker said in rare circumstances, the batteries supplied to GM for
these vehicles may have two manufacturing defects – a torn anode tab and
folded separator – present in the same battery cell, which increases the
risk of fire.

 

After the 10th fire in Chandler, Arizona, GM said it "discovered
manufacturing defects in certain battery cells produced at LG manufacturing
facilities beyond the Ochang, Korea, plant."

 

The new recall includes 9,335 Bolt EVs from model year 2019 that were not
included in the previous recall and 63,683 2020–2022 model year Chevrolet
Bolt EVs and EUVs.

 

The Thomson Reuters Trust Principles.

 

 

 

Griffin's Citadel plans to redeem $500 mln from Melvin Capital - WSJ

(Reuters) - Kenneth Griffin's Citadel LLC and Citadel partners are planning
to redeem about $500 million of the $2 billion they invested in Melvin
Capital, the Wall Street Journal reported on Saturday, citing people
familiar with the matter.

 

Together with Steven A. Cohen's Point72 Asset Management, Griffin's Citadel
had invested $2.75 billion in January into Melvin Capital, the hedge fund
which was at the center of the GameStop (GME.N) trading frenzy earlier this
year.

 

According to the WSJ, it could not determine whether Citadel plans to redeem
more money later. Citadel is expected to remain a large investor, the report
added, citing a person familiar with the matter.

 

Melvin Capital, the fund founded by Gabe Plotkin, lost 49% on its
investments during the first three months of 2021, a person familiar with
the matter told Reuters in April. read more

 

Melvin had established itself as a strong performer posting annualized
returns of 30% between 2014 and 2020.

 

But Plotkin had bet the retailer GameStop's stock price would tumble and
then faced off with retail traders who used online trading apps and
exchanged information on Reddit's WallStreetBets forum to push the stock
price significantly higher in the early weeks of January.

 

The Thomson Reuters Trust Principles.

 

 

Mexico wants talks with United States over auto content rules in trade pact

(Reuters) - Mexico sought formal consultation with the United States on
Friday over the interpretation and application of tougher content rules for
automobiles set out in the USMCA trade pact.

 

In May, Mexico voiced disagreement over the issue in a three-way online
virtual meeting when it cited differences with the United States methods.
Canada and Mexico use more flexible interpretations. read more

 

"Mexico has identified a divergent position between our governments on the
interpretation of ... provisions on rules of origin for the automotive
sector," Economy Minister Tatiana Clouthier said in a letter.

 

In her letter on Friday to U.S. Trade Representative Katherine Tai,
Clouthier said Mexico wanted to avoid or resolve a possible dispute.

 

The United States-Mexico-Canada Agreement (USMCA), the successor to the
North American Free Trade Agreement (NAFTA), requires 75% North American
content for a vehicle to be considered as being from North America.

 

The same percentage will apply for so-called essential parts from July 1,
2023, up from 69% now, and compared to 62.5% under the previous trade pact.

 

But once the level of essential parts hits 75%, it is considered 100% and
should be counted as such towards the overall value of the automobile,
Mexico says.

 

Its request for consultation is the first non-contentious stage of a dispute
resolution mechanism provided for in Chapter 31 of the pact, with an
industry expert saying such talks must be held within 30 days, in this case
by Sept. 20.

 

The United States is reviewing the request, said U.S. Trade Representative
spokesman Adam Hodge.

 

"We are reviewing Mexico's request for consultations and remain committed to
fully implementing the USMCA, including the strong auto regional content
requirements to which we all agreed," he said.

 

The Thomson Reuters Trust Principles.

 

 

 

Kenya: How Boda Boda Operators Have Become 'Second Parents' to Teen Girls

Kilifi County is home to tens of thousands of boda boda operators, dotting
every corner of villages and towns because they provide affordable and quick
transport.

 

But they face embarrassment, disgrace and mockery, labelled as perpetrators
of sexual gender-based violence.

 

They are also blamed for pregnancies and early marriages among schoolgirls.

 

But less discussed is their critical role as "second parents" to vulnerable
girls.

 

Twenty-one-year-old Baraka Amani (not his name) sits on a broken chair in
the back of his mother's house in Misufini village, Kibarani, Kilifi North
sub-county. He reveals that he had been providing basic needs to a girl for
over one year when he was accused of defilement.

 

The two are neighbours and they started their friendship when Mr Amani was
17 and in Standard Seven and the girl was 16 and in Standard Six at the same
primary school.

Their friendship started in 2014 after the deaths of their fathers.

 

"We used to play together, and the bond was so strong that she started
telling me her mother was struggling to raise them due to a lack of money,"
he says.

 

Mr Amani, though he was a pupil, started doing menial jobs to earn money and
help her mother with buying food.

 

He also gave some of his earnings to his girlfriend to buy exercise books,
pens and sanitary towels. He also paid her money to pay for her school
examinations.

 

"She could tell me that she did not like the vegetables her mother had
prepared for them, and I would give her money to buy alternative food of her
choice," he says.

 

The friendship grew into a sexual affair and she became pregnant.

 

He says the girl decided to get married to him because she had become
pregnant.

Mr Amani's good deeds did not matter after his girlfriend's mother
discovered her daughter had conceived.

 

He was thrown into police cells, wandered the corridors of Kilifi courts and
dropped out of Godoma Secondary School in Form

 

Two, damaging the future of a bright boy who had scored 302 marks in his
KCPE examinations in 2015.

 

"My girlfriend's mother did not raise any issues for all that period I was
supporting her, but I became an enemy immediately after she became
pregnant," he says.

 

He quit going to school to attend his court sessions for over four years
with all the challenges, including his inability to pay for his transport to
court.

 

His mother was poor, and a close maternal relative who was paying for his
education later withdrew his support.

"Sometimes I was forced to trek from school to home ahead of my court
session to avoid being issued with a warrant of arrest," he says.

 

He is serving three years on probation, which will end in 2022.

 

His girlfriend gave birth to a baby girl.

 

Mr Amani calls upon the community not to be quick to accuse boda bodas of
sexually abusing schoolgirls.

 

"The society should look at both sides of the coin. We do not support
vulnerable girls in exchange for sex, but the intimacy comes in the process
of the friendship," he adds.

 

He attributes the woes facing the boda bodas to a lack of responsibility
among many parents.

 

"The girls' parents do not provide their daughters with some of the little
things they need, and that is why they open up to boda bodas seeking
support," he says.

 

Vincent Mwaura says he has not heard of a case where parents had been
charged in court for negligence.

 

"Boda-boda operators are always the weakest point. We have never had cases
where a parent has been arrested and charged in court for failing to perform
his parental roles," he says.

 

He wants child-protection agencies and law enforcers to hold parents
accountable for their faults.

 

Mr Mwaura says there are cases where boda bodas are supporting poor girls,
but their parents are yet to speak because their daughters are still safe in
school.

 

"The girl becomes the responsibility of the boda boda and she is included in
his budget at the end of the day, because he is her sole provider," he says

 

The national director for children's services, Morris Tsuma, says apart from
subjecting their children to child labour to provide for the families,
parents also expose their children to commercial sex.

 

"Many parents are evading their role in bringing up their children," he
says.

 

Another boda boda, Alio Guyo, from Kiwandani/Prison, wants all matters
concerning them to be thoroughly investigated like any other cases.

 

"The majority of boda boda are victims of circumstances and we risk being
jailed or even killed," he says.

 

The issue of boda bodas and schoolgirls is being discussed as the national
government and its partners are reviewing the Children Act and the Sexual
Offences Act with a view to strengthening them.

 

"We want to strengthen the laws so perpetrators can get tougher punishment
that will also be a lesson to the community," he says.

 

This story is part of a series examining teen pregnancies in Kenya's Coastal
counties.-Nation.

 

 

 

Uganda: Why Govt Suspended City Transport Plan

Government has suspended its earlier plan for the city's transport system
for taxis and boda bodas to fast-track a legal framework under which the
same scheme can be implemented.

 

A senior director from Kampala Capital City Authority (KCCA), who preferred
anonymity, said whereas government had sought to implement the plan this
year, there was no existing policy under which it could work.

 

The source also said government will instead focus on the nationwide policy
instead of concentrating on only Kampala since taxis and boda bodas operate
across the country but without any regulation.

"There are various issues which came up as we planned to roll out the city
transport plan. For instance, there were concerns from transporters who
argued that their views hadn't been captured. We also noticed that majority
of boda boda cyclists are illiterate and cannot appropriately use the
technology of Apps as we had earlier proposed," the source said.

 

Last year, the government through KCCA, unveiled a plan to ban boda bodas
from the city centre and create free zones outside the Central Business
District (CBD), organise elections of the apex body for all boda boda and
taxi operators, reduce stages, and register all people working in the
transport sector.

 

Government had also proposed that all boda boda cyclists should register
with accountable digital companies such as Safe Boda and Bolt, which use
Apps to pick passengers and goods for delivery.

 

The plan was triggered by the unending fights which have previously
paralysed transportation in the city.

Although Kampala Lord Mayor Erias Lukwago asked them to halt the
implementation of the plan until a legal framework is made, the then
minister for Kampala, Ms Betty Amongi, said a statutory instrument would be
made to ease the implementation of the plan.

 

Mr Lukwago had argued that the city's transport system must address the
demands of the metropolitan area due to its swelling population.

 

By press time, we could not reach Kampala Minister Minsa Kabanda and her
deputy Kyofatogabye Kabuye for a comment.

 

KCCA spokesperson Daniel Nuwabiine said the plan has not been abandoned but
rather there are engagements to discuss how it can be implemented.

 

Better planning...The big problem

 

The current city transport sector is informally self-regulating, with a
number of governance issues, leaving passengers at the mercy of the private
operators, who decide as and when to increase or reduce fares.

Besides lack of regulation, the available means of public transport,
including the 14-seater taxis, and boda bodas, which dominate the sector,
have limited capacity to offer transport services.

 

Last month, President Museveni oversaw the finalisation of plans between
KCCA and METU Bus Industries to assemble and manufacture buses that will be
deployed to ease transport in the city and its metropolis.

 

However, transport operators argue that the new system may fail if
government does not first address the existing challenges crippling the
transport sector in the city.

 

In 2012, Pioneer Easy Buses hit Kampala routes following a sit-down strike
by taxi operators, which paralysed the entire city transport.

 

But the company's operations would later be affected by heavy taxes imposed
by Uganda Revenue Authority (URA), and lack of special lanes which had been
promised to them by KCCA.

 

Mr Gordon Abesiga, the Pionner Bus manager, told this newspaper in a
previous interview that the reason Pioneer Buses failed is because
government forced them to start operations before they set up management
structures and thus they entered the market prematurely.

 

"When we came to the market, you remember that there was a taxi drivers'
strike and we were forced to bring the buses on the streets even without
number plates. We were not yet ready. We were setting up our management
structures and we were forced to enter the market prematurely," Mr Abesiga
told Daily Monitor in an interview.

 

The Uganda Taxi Operators and Drivers Association (Utoda) chairperson, Mr
Willy Ndyomugyenyi, told Daily Monitor in an interview yesterday that
government should first regulate the transport sector before they introduce
any other plans.

The regulation, Mr Ndyomugyenyi said, will not only reduce the current
fights in the sector, but also restore order.

 

Mr Charles Koojo Amooti, the chief executive officer of Urban Research and
Training Consultancy Ltd (URTC), and an urban planner, recently told this
newspaper that there must be an integration of the multi-modal transport
with land use planning if the current transport crisis is to be fixed at
all.

 

He noted that since high-urban density offers the opportunity to reduce both
travel distances and pollution, all major development should be public
transport-centred and that the development should primarily occur to close
the existing gaps, or at least to major centres within the metropolitan
area.

 

"Development should be physically laid out around public transport and
should also be taken to mean that the whole approach to the development is
centred on considerations about the quality of the public transport and,
moreover, that development design is such that the majority of access to the
public transport will be through walking and cycling," he said.-Monitor.

 

 


 


 


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bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 

 

 


 

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

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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