Major International Business Headlines Brief::: 05 February 2021

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Major International Business Headlines Brief::: 05 February 2021

 


 

 


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ü  Brexit: 71 pages of paperwork for 1 lorry of fish

ü  Kuaishou share price nearly triples on market launch

ü  The race to create the world's next super-app

ü  Rare black Fortune 500 chief Ken Frazier to retire

ü  Vale dam disaster: $7bn compensation for disaster victims

ü  McKinsey agrees $573m opioid settlement in US

ü  Bank of England: Economy to rebound strongly due to vaccine

ü  Royal Dutch Shell sees huge loss as pandemic hits oil demand

ü  More Cadbury Dairy Milk production to return to Bournville

ü  Heathrow workers to launch February strike action

ü  Namibia: Air Nam Board Members Quit

ü  Nigeria: Sylva - Why Oil Firms Cannot Relocate Offices to Niger Delta Now

ü  Ethiopia: Micro-Insurance in Mitigating Uncertainty in Agricultural
Production

ü  Namibia: Farmers Reap Agri Benefits

ü  South Africa: Probe On Excessive Prices of Garlic, Ginger

 

 

 


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Brexit: 71 pages of paperwork for 1 lorry of fish

"It's slow, it's outdated, it's challenging in a number of ways we never
expected," says Charlie Samways.

 

His grandfather founded Dorset-based fish merchant Samways 60 years ago,
selling fish from a wooden barrow.

 

Today, with Charlie as sales director, the firm promises to get its fish and
seafood "from port to plate" in 24 hours.

 

But extensive paperwork, rising costs and border delays following the end of
the Brexit transition period have put that pledge under threat.

 

Samways buys seafood from 150 local fishermen who operate in Lyme Bay.

 

Its most popular products are Dover sole, lemon sole, cuttlefish and plaice
- about 90% of which is exported to France, Spain, the Netherlands and Italy
on its fleet of lorries.

 

This Monday, Mr Samways is overseeing the shipment of several tonnes these
fish, as well as scallops and seabass, to the EU on one truck.

 

Before the end of the Brexit transition period, the process was simple, he
says. Each shipment needed a delivery note, made up of just one or two forms
and invoices.

 

But the UK is now outside the EU - and its customs union and single market -
so exporters face a very different set of requirements.

 

To begin with, British exporters need an ID number (called an EORI number).
They must also make sure the fishermen they work with have a licence to sell
sea fish and register their own premises as an "approved establishment" to
do business with the EU.

 

The firm had taken these steps ahead of time and felt "ready to go on day
one" when the new trade rules came in, Mr Samways says. But the day-to-day
reality is different.

 

Two employees out of eight in the Samways office now focus on Brexit-related
administration.

 

Chris Sheath and Katie Smith start filling out the new necessary forms for
the lorry at 08:00. For each shipment, they must fill out and submit a catch
certificate, which proves that the fish was caught legally.

 

That involves manually entering on a government website 149 different lines
of data that was not previously required, such as the name of the vessel
that caught the fish and the type of species being exported. The certificate
for this shipment is 27 pages long.

 

They also have to get an export health certificate for each consignment to
prove that the fish meet EU health standards. Information on the products,
such as species and the weight of the fish, is uploaded and sent to an
approved vet, who has to inspect the goods on-site later.

 

Mr Samways is considering recruiting a new employee to tackle the extra
forms, which take until 13:00 to complete. That would cost the firm
£30,000-£40,000 per year.

 

"We are a family business and you get used to the fact that you do long
hours. But Brexit means we have to put an unholy amount of pressure onto
every member of the team."

 

Additional staffing

Throughout the morning, Chris and Katie are also talking to a customs agent
that Samways has hired.

 

The customs agent handles the new paperwork requirements on the import side,
and produces a "statement of value", which is two pages. Samways pays them
roughly £200 per shipment to do this, which will work out to about £51,000
this year.

 

They input similar information on the fish and upload the catch certificate
to an EU system (Traces NT). They also notify French authorities that animal
products will soon be arriving at a border control post, which must be done
at least one working day in advance.

 

At 14:00, a vet from Sherbourne arrives to inspect the fish. They sign,
stamp and number each page of an export health certificate, which for this
truck is 20 pages long, after checking the products.

 

Once the vet has watched the truck being loaded and sealed, there are a few
final hurdles before the driver can set off.

 

The agent must upload all of the signed-off documents to a UK government
system to obtain a customs barcode, which takes about an hour to arrive and
is printed out.

 

It is bundled together as part of an "export pack" for the shipment, which
includes the catch certificates, export health certificates (in English and
French), the statement of value and 22 invoices to show at the checkpoint.

 

For this one truck it totals 71 pages.

 

At this point, the driver gets ready to go - provided they have a Kent
Access Permit, which confirms they have the correct documents for EU import
controls before they enter Kent. Each one lasts 24 hours and they need a new
one each time they travel to the EU via the Port of Dover.

 

Due to the pandemic, they also need proof of a negative Covid test taken in
the last 72 hours.

 

The driver sets off from the depot in Bridport at 17:00 on his way to Dover.
Seven or eight 44-tonne Samways' trucks make the same journey each week.

 

At the ferry port, the driver must show the customs barcode that was printed
off. No barcode and they may face a fine and severe delays.

 

22:00

After the 22:00 ferry crossing through to Dunkirk in France, the driver
heads to the border control post. French customs officials there inspect the
fish and all of the paperwork.

 

Samways has faced major hold-ups at the French border, with lorries stuck
for six or seven hours at a time while forms are examined. The firm's
transport manager has had to take urgent phone calls in the middle of the
night with updates.

 

Map showing routes to Europe

A small mistake, or an omission, on one form can also mean a consignment is
held. But Mr Samways says their customs agent gets little feedback as to
what, if anything, is wrong with the papers.

 

Once any problems are resolved, the French authorities update EU systems
with the outcome of the inspection.

 

The fish are approved for release, the driver continues to their
destination. Samways' plaice, scallops and sea bass will reach European
dinner plates on Wednesday evening - 24 hours longer than was typical before
the end of the Brexit transition period.

 

Mr Samways says he initially felt "extremely prepared" for Brexit, but was
surprised by the "excessive" amount of paperwork required.

 

The government says that it is aware of a "small number of issues" since 1
January and that the recent announcement of a £23m fund for fishing firms
should help those "experiencing export delays".

 

But Mr Samways dismisses the suggestion that these are just teething
problems.

 

He has concerns that delays and extra costs could mean UK fishermen will
take their catch directly to ports on the Continent, cutting out exporters
like him.

 

"That's something we cannot afford."--BBC

 

 

 

Kuaishou share price nearly triples on market launch

Shares of the Chinese short-form video app Kuaishou surged more than 190% on
the company's launch on Hong Kong's stock exchange on Friday.

 

Shortly after the company listed, shares were selling at more than HK$300
($38.07; £28.31), nearly triple the list price of HK$115.

 

Kuaishou is one of the most hotly-anticipated initial public offerings this
year and has raised $5.4bn (£4bn).

 

The app has a massive user base in China and competes with TikTok.

 

The company's listing is a key test of investors' appetite for Chinese tech
companies as Beijing steps up scrutiny of the sector.

 

What is Kuaishou?

When it was created in 2012, Kuaishou was originally a mobile app for making
GIF animations.

 

Now, it is a short-form video platform that competes with ByteDance's TikTok
app, but is also popular for livestreaming.

 

In documents tendered with the Hong Kong stock exchange, Kuaishou said it
aimed to be "the most customer-obsessed company in the world".

 

Kuaishou claims 305 million daily active users, who spent an average of 86
minutes or more on the app.

 

 

Content creators made up about 26% of the app's 769 million monthly active
users.

 

The app is particularly popular in China's second and third tier cities, and
in rural areas too, where it is often used for group chats and messaging, as
well as for videos.

 

"Some people use Kuaishou more like they use WeChat. Kuaishou has a lot more
functionality than TikTok," said Rui Ma, a Chinese tech analyst with
Techbuzz China.

 

In addition to its popularity, the company's revenues grew from $1.3bn in
2017 to $6.2bn in the nine months ended September 30, 2020.

 

However, it's still not turning a profit. The company reported a loss of
$1.1bn over that period.

 

How does it make money?

Currently, Kuaishou makes most of its money from livestreaming e-commerce,
often featuring celebrities showcasing products to bring in buyers.

 

It also makes money from virtual gifts, and has increasingly turned to
online marketing services, which accounted for 33% of its business in the
first three quarters of 2020.

 

If TikTok epitomises the eccentricities of urban millennials - Kuaishou is
the short video app for everyone, no matter where you're from.

 

Scroll through and you'll find farmers and merchants from villages and
lower-tier cities, livestreaming a glimpse of their daily lives.

 

This is the key difference, the app's young founders say, between it and
other social media platforms.

 

They claim Kuaishou is a more accurate reflection of modern China - where
there's a growing sense of inequality between rich and poor, city-livers and
rural dwellers, the haves and the have-nots.

 

The big draw for investors has been the app's ability to tap into these
rural markets.

 

Kuaishou makes money is by allowing livestreamers to sell their products
online, and for users to purchase virtual gifts for other users.

 

But turning these users into real profit will be a challenge.

 

Despite soaring revenues, Kuaishou is struggling to make a profit.

 

In its filing to the Hong Kong Stock Exchange, the company says this is a
key risk: "the fact that we incurred net losses during the track record
period and may not be able to achieve or maintain profitability in the
future."

 

Investors should also pay attention to the changing regulatory environment
in China.

 

Big tech firms like Ant Group are under the spotlight for monopolising the
wallets of Chinese internet users.

 

Livestreaming services and virtual gifting have already caught the attention
of Chinese regulators. Kuaishou may not be far behind.

 

Loyal fans

Although the company isn't yet profitable, Rui Ma said Kuaishou's main
strength has been its ability to monetise video content.

 

Many video apps have a big user base, but only a few have figured out how to
make money from them.

 

"Kuaishou is one of the best companies in capturing those monetisation
opportunities. They've been very good at executing, despite all the
competition. I think I'm cautiously optimistic," said Rui Ma.

 

It's customer base outside the major cities is also likely to be an
advantage, she said, because they have used the app for many years and are
likely to remain loyal.--BBC

 

 

 

The race to create the world's next super-app

How many apps do you have on your phone?

 

If you're anything like me, it's a lot.

 

But imagine installing just one app that does almost everything - from
buying a pizza, hailing a taxi, chatting to your friends and even booking a
massage.

 

It does exist and it's known as a super-app.

 

There are two major players in the market and the most popular, with over a
billion users, is WeChat.

 

Created in 2011 by Chinese tech giant Tencent, WeChat started life as a
messaging platform.

 

It is now estimated to offer more than one million services through mini
programmes, which are apps created by third-party companies and accessible
through WeChat.

 

More than an app: Trump's WeChat ban shocks Chinese abroad

What is Tencent?

That means you never have to leave WeChat's virtual universe (except perhaps
to go to the bathroom).

 

Most of these services are only available to users in China, which is why
you may not have heard of it despite its dominance.

 

The other main player is Ant Group's Alipay, which also has more than one
billion users and offers 120,000 mini programmes.

 

Singapore-based Chinese entrepreneurs Angeline Liu and Angee Teng saw a
unique opportunity to tap into WeChat's captive audience.

 

"WeChat is a part of our daily life that we [can't] live without," says Ms
Liu, who spends two to three hours a day on the app.

 

"Basically everything you need is within this one app and every part of your
life is touched [by it]."

 

Three years ago they launched a business selling premium meat to Chinese
customers in Singapore.

 

"You can browse the products, make purchases, make payments and complete the
whole cycle within this app," Ms Liu says.

 

They don't advertise through traditional channels or social media yet
business is booming, with tens of thousands of dollars worth of orders
rolling in every month.

 

China leapfrogged into the internet era, which means people went from
telephones to smartphones pretty quickly.

 

This allowed internet companies to innovate in a way their counterparts in
the West haven't been able to.

 

Rui Ma, who co-hosts the podcast Techbuzz, tells me it's also because data
laws in China are quite different.

 

"In the West we have a lot of rules and regulations, creating a lot of
friction around these services that in China the government simply hasn't
gotten around to regulating," she says.

 

That's not the only reason.

 

"Chinese internet companies think of building entire ecosystems, versus
product-first or product-centric companies," she says.

 

"They're not just building a feature or one service. They're thinking about
how to take the user's entire lifestyle and move it online."

 

A life lived online means a lot of transactions and a lot of data.

 

Under Chinese law, all companies - not just WeChat - can be compelled to
hand over that data to the ruling Communist Party.

 

The Australian Strategic Policy Institute (ASPI) says it has found evidence
of censorship on WeChat in China and warns this could also happen to
overseas users.

 

"The risks associated with WeChat's lack of end-to-end encryption is that
Tencent and WeChat can have access to any of your data on WeChat," says
Audrey Fritz, who co-authored an ASPI report looking at the Communist
Party's influence on Chinese internet firms.

 

"[They are] bound by [China's] cybersecurity laws to give any data on WeChat
or any of their apps to the government, if the Communist Party should
request that."

 

Tencent told the BBC it complies with the laws and regulations of each
market it operates in, adding that user privacy and data security are core
values.

 

"User privacy and data security are core values at Tencent. We hold
ourselves to the highest standards in protecting our users while ensuring we
comply with all laws and regulations in the markets in which we operate,"
the company said.

 

Concern over privacy and data security could be among the reasons it has
been difficult for these Chinese apps to expand overseas.

 

Throw in the fact that the domestic market in China is so big, there's
really no need to go anywhere else.

 

South East Asia a contender to produce the next super-app

The race to build the world's next super-app is revving up and many of the
frontrunners are based in South East Asia.

 

With 600 million people spread across the region, there are already half a
dozen companies vying for their attention.

 

Grab, Gojek and the SEA Group are among the biggest and best funded.

 

Chinese companies Alibaba and Tencent have invested in them, as have US
firms including Facebook, Google and PayPal.

 

Indonesian-based Gojek has grown from a motorcycle-hailing platform to an
app offering car rides, payments, food delivery and even massages and
manicures.

 

Gojek co-chief executive Kevin Aluwi says the region is a natural fit for
super-apps.

 

"Having to only download one single app is something that is probably
uniquely appealing to a part of the world where, for most people, the first
real experience of the internet happened on mobile."

 

Perhaps surprisingly for a company that calls itself a super-app, Mr Aluwi
says Gojek isn't trying to monopolise its users' time.

 

"Many super-apps view their objective as to increase the amount of time that
customers are actually viewing their app," he says.

 

"For us, we want our customers to get in, find the thing they need to solve
their problem at that moment and then get out and get on with their
lives."--BBC

 

 

 

Rare black Fortune 500 chief Ken Frazier to retire

The US is losing one of its few black leaders at the top of a major American
company.

 

Merck & Co's chief executive Kenneth Frazier is retiring at the end of June,
the drugs company said.

 

The firm said he would be replaced by current chief financial officer Robert
Davis, who joined the firm in 2014.

 

Mr Frazier, the grandson of a sharecropper, is known as a leader in the US
business community on racial issues.

 

In 2017, he was the first business leader to leave former US President
Donald Trump's manufacturing council, after Mr Trump failed to condemn a
white nationalist rally in Charlottesville, Va.

 

Last year, he spoke out after the death of George Floyd in policy custody.

 

"What the African American community sees in that videotape is that this
African American man, who could be me or any other African American man, is
being treated as less than human," he told business broadcaster CNBC.

 

Mr Frazier is one of just four black executives leading a Fortune 500
company in the US.

 

The 66-year-old, who trained as a lawyer at Harvard, joined pharmaceutical
giant Merck in 1992 and took over as chief executive in 2011.

 

During his tenure, he has worked on issues such as government claims against
the company about its arthritis painkiller Vioxx and its acquisition of
another firm which owned Keytruda, a cancer therapy that is now one of
Merck's best-selling products.

 

He will serve as executive chairman of the firm's board during a transition
period, the company said.

 

"His shoes won't be easy to fill in so many ways, both within Merck, but
also including his many principled and valuable contributions to important
issues facing society today," Mr Davis said on a conference call on Thursday
held to discuss the firm's quarterly financial results.

 

Mr Frazier was originally set to retire in 2019, but stayed on after Merck
changed its policy requiring retirement at the age of 65.--BBC

 

 

 

Vale dam disaster: $7bn compensation for disaster victims

Communities hit by a dam disaster in Brazil two years ago which killed 270
people will get a $7bn (£5bn) payout.

 

The Brumadinho dam contained waste from an iron ore mine but gave way,
unleashing a sea of mud which engulfed a staff canteen, offices and farms.

 

Senior staff at the company responsible - Brazilian mining giant Vale - are
facing murder charges over the January 2019 disaster.

 

The move seals Vale's aim to "fully compensate" for the disaster, it said.

 

The state government said the amount was an initial estimate and that the
company would have to pay more if necessary.

 

"The agreement requires Vale to fully repair all environmental damage. The
above-mentioned amount... could be increased if necessary," it said in a
statement.

 

Vale said it would pay both "socio-economic" and "socio-environmental"
reparations, funding projects to repair the surrounding environment,
including a massive clean-up of the Paraopeba river.

 

Map of the dam collapse

Vale said it would face additional expenses of £2.68bn related to the
agreement this year.

 

'He never came back'

Brazil's worst industrial accident sent millions of tons of toxic waste
gushing into the surrounding area, destroying the rural village of Córrego
do Feijão, in the state of Minas Gerais in south-eastern Brazil.

 

"My husband left home for work in the morning, said 'God be with you', as he
always did," Sirley Gonçalves told the BBC a few days after the accident.

 

But he never came back.

 

The dam collapsed at about lunchtime without warning, but the alarm system
that Vale had installed in the village to warn the residents of any risk did
not go off.

 

Those who managed to survive had to run for their lives.

 

"Vale destroyed our lives," said Ms Gonçalves. "They must have known the dam
would break. But they don't care about their employees, they care about
their money."

 

Intentional homicide

It was not the first time the mining firm - the world's largest producer of
iron ore and pellets - had been linked to a dam disaster.

 

In November 2015, a mining dam operated by Vale's subsidiary, Samarco,
collapsed in the town of Mariana, just 120km (74 miles) away in the same
state of Minas Gerais, killing 19 people and devastating two nearby
villages.

 

The disaster saw Samarco - a Vale and BHP Billiton joint venture - paying
out billions in compensation and setting up Foundation Renova, a body
supposed to help victims rebuild their lives and restore the river.

 

After the 2019 Brumadinho disaster, Brazilian prosecutors charged 16 people,
including Vale's ex-president Fabio Schvartsman, with intentional homicide
and environmental offences, alleging they hid the risk of a dam collapse.

 

In the wake of the collapse, Vale said it would decommission all 10
remaining "tailings" dams, which are often made from earth and used to store
the often toxic mining by-products.

 

It also promised to investigate more expensive waste management options and
significantly reduce its output.-BBC

 

 

 

McKinsey agrees $573m opioid settlement in US

McKinsey has agreed to pay $573m (£419m) to resolve claims it faced across
the US related to its role fuelling America's opioid epidemic.

 

The consulting firm was under investigation for its work with Purdue Pharma,
which aimed to boost sales of the addictive Oxycontin painkiller.

 

McKinsey maintained that its past work was "lawful" and denied wrongdoing.

 

But California Attorney General Xavier Becerra said the firm had been "part
of a machine that... destroyed lives".

 

Prosecutors said McKinsey had worked on strategies to "turbocharge"
Oxycontin sales, advising Purdue to increase sales calls to doctors known to
be high prescribers and to "subvert" restrictions on higher dosages that
authorities wanted to impose.

 

When officials began to take legal action against Purdue, McKinsey partners
discussed deleting documents related to their work with Purdue, which
started in 2004 and lasted until 2019 - more than a decade after the company
pleaded guilty to misrepresenting Oxycontin's risks, they said.

 

"McKinsey's cynical and calculated marketing tactics helped fuel the opioid
crisis by helping Purdue Pharma target those doctors they knew would
overprescribe opioids," said New York Attorney General Letitia James. "They
knew where the money was coming from and zeroed in on it."

 

Prosecutors said McKinsey also made millions of dollars helping other firms
involved in the industry develop similar marketing and sales plans.

 

The settlement resolves probes brought by 47 states, five territories and
the District of Columbia. The money is to be used to fund drug treatment and
other measures aimed at addressing the crisis.

 

McKinsey said it had also reached separate agreements with two other states,
bringing the total payout to nearly $600m.

 

As part of the deal announced on Thursday, McKinsey "reaffirmed" a 2019
pledge to not take on any advisory work related to opioids and said it would
help to release documents to the public related to its earlier work.

 

McKinsey's global managing partner Kevin Sneader said the firm "chose to
resolve this matter in order to provide fast, meaningful support to
communities across the United States".

 

The firm said it had improved its risk and governance processes and had
fired the two partners who discussed deleting documents related to the
firm's work with Purdue, "for violating the firm's professional standards".

 

"We deeply regret that we did not adequately acknowledge the tragic
consequences of the epidemic unfolding in our communities. With this
agreement, we hope to be part of the solution to the opioid crisis in the
US."

 

In addition to its work with Purdue, McKinsey has faced questions about its
relationship with companies such as US energy firm Enron, which collapsed
after an accounting scandal, as well as South African firm Trillian, which
was swept up in a major corruption scandal.

 

In an email to staff, Mr Sneader said he expected them to set a "higher
standard" of behaviour" for the consulting industry.

 

"Today's focus is on opioids, but we have also faced other issues that have
made clear the importance of improving how we act everywhere that we
operate," he said. "We must use this moment to bring further energy to the
discussions we have around our values and, critically, to the actions we all
take to ensure they are delivered without fail every day, everywhere."

 

Purdue Pharma settlement

The deal is the latest settlement to emerge from the more than 3,000
lawsuits that have been brought against drug manufacturers and other firms
involved in the opioid business.

 

The firms, which have denied wrongdoing, are blamed for using deceptive
marketing and ignoring signs of abuse, unleashing an epidemic that drove
millions to addiction and claimed the lives of an estimated 450,000 people
through overdose deaths from 1999 to 2018.

 

In October, Oxycontin-maker Purdue admitted to enabling the supply of drugs
"without legitimate medical purpose", paying doctors and others illegal
kickbacks to prescribe the drugs, among other claims. It agreed to pay
$8.3bn.

 

Thousands of lawsuits against pharmacies, drug distributors and others are
still pending.--BBC

 

 

 

Bank of England: Economy to rebound strongly due to vaccine

The UK's rapid Covid-19 vaccination programme will help the economy bounce
back strongly this year, according to the Bank of England.

 

The economy is expected to shrink 4.2% in the first three months of 2021,
amid tighter lockdown restrictions to slow the spread of the virus.

 

But policymakers expect a rebound this spring as consumer confidence
returns.

 

The Bank also told High Street lenders to prepare for negative interest
rates, even as it ruled out an imminent move.

 

The UK economy is expected to "recover rapidly" in 2021, with a successful
vaccination programme supporting a "material recovery in household
spending".

 

Andrew Bailey, the governor of the Bank of England, described the vaccine
rollout as "excellent news" that would speed up a return to normal life.

 

"We do think that that is going to support a sustained recovery throughout
the rest of the year," he said.

 

Its latest Monetary Policy Report said the positive vaccine news had driven
an increase in UK holiday bookings later this year, although overseas
bookings remained muted.

 

While government support schemes are expected to limit any immediate
increase in unemployment, the jobless rate is still projected to rise to
7.8% later this year as the furlough scheme winds down.

 

The most recent unemployment rate - for September to November - was 5.0%,

 

However, policymakers said the outlook for the economy remained "unusually
uncertain".

 

The Bank said the rebound in economic activity would depend on controlling
any new strains of the virus, as well as households' willingness to spend.

 

It said most people now expect "life to return to normal" within a year.

 

But some voluntary social distancing was likely to persist, as it has done
in economies where restrictions have already been eased substantially.

 

In New Zealand, for example, spending on restaurants and hotels has still
not recovered to pre-pandemic levels.

 

The Bank said: "The Covid vaccination programme would be expected to lead to
an easing of social distancing restrictions, reduced economic uncertainty
and higher activity, although the timing of those effects is hard to
predict."

 

Are people more likely to spend or to save as the economy recovers?

Millions of workers remain on the government's furlough scheme, while
redundancies increased sharply at the end of last year.

 

However, many high earners working from home have saved more during the
pandemic.

 

The Bank said £125bn more was squirrelled away in UK savings accounts last
year.

 

"That figure is likely to rise substantially further over the first half of
2021," the Bank said.

 

Policymakers believe retired households, which have received vaccines
sooner, will start spending first.

 

Greater job security is also expected to lead to higher spending.

 

However, the Bank noted that 70% of the people it surveyed planned to keep
their extra money in savings instead of spending it.

 

Sales of new cars are also expected to remain subdued, though concerns about
using public transport have pushed up sales of second-hand vehicles.

 

The Bank's Monetary Policy Committee (MPC) held interest rates at a record
low of 0.1% on Thursday.

 

Following a review, it has also asked High Street banks to get ready for the
possibility that they could fall below zero in the future.

 

What are negative interest rates?

The term "interest rates" is often used interchangeably with the Bank of
England base rate.

 

Described as the "single most important interest rate in the UK", the base
rate determines how much interest the Bank of England pays to financial
institutions that hold money with it, and what it charges them to borrow.

 

High Street banks also use it to determine how much interest they pay to
savers, as well as what they charge people who take out a loan or mortgage.

 

The Bank of England usually lowers interest rates when it wants people to
spend more and save less.

 

In theory, taking interest rates below zero should have the same effect. But
in practice, it's a bit more complicated.

 

After all, why would anyone pay to stash money in a savings account or lend
someone money, when they can keep the cash at home for free?

 

Are negative interest rates coming to the UK?

The Bank stressed that commercial lenders needed at least six months to
prepare and this did not mean that negative rates were "imminent, or indeed
in prospect at any time".

 

Mr Bailey added: "My message to the markets is you really should not try to
read the future behaviour of the MPC from these decisions and these actions
we're taking on the toolbox.

 

"Nobody should take any signal from this."

 

The Bank of England is not just counting jobs and prices, but vaccinations
too.

 

On this basis, despite the current three months seeing a lockdown-inflicted
fall in the economy, policymakers are more confident about the timing of
recovery, in the middle of this year.

 

Indeed, that recovery will be mathematically sharper than previously
predicted, because of the further drop right now. As the Bank concludes in
its forecast "GDP picks up strongly" as restrictions are assumed to ease
between April and September.

 

In terms of its decisions, that means the Bank has held fire, leaving
interest rates at historic lows. Not one of the nine panel members deciding
rates voted for the much-hyped "negative rates" seen in Europe.

 

Commercial banks will be asked to prepare in the next months, so the lever
is an option, but the Bank of England was at pains to say this was not a
signal of intentions.

 

The Bank was also clear that the post-Brexit trading rules will hit the
economy, and that there are new "barriers" likely to lower trade between the
UK and EU, some which are yet to emerge. This goes beyond the government's
repeated claims that such changes are "teething problems".

 

The big message, though, is a more confident assertion that the economy, as
well as the people, will be inoculated by the summer.—BBC

 

 

Royal Dutch Shell sees huge loss as pandemic hits oil demand

Oil giant Royal Dutch Shell sank to a net loss of $21.7bn (£16bn) last year
after the coronavirus pandemic caused demand to slump.

 

The announcement comes after two of its rivals, BP and Exxon, posted similar
big losses.

 

Looking ahead, Shell said "significant uncertainty" would continue to have a
negative impact on demand for oil and gas products.

 

As a result, it said it might need to take measures to cut production.

 

Shell profit

In September last year, Shell announced that up to 9,000 jobs would go
worldwide as the company responded to the effects of the pandemic.

 

Last month, it said it was cutting 330 jobs from its operations in the North
Sea.

 

Even before the virus struck, the oil industry was already having to rethink
its future plans as part of the transition away from fossil fuels.

 

The Covid impact means companies such as Shell are accelerating that
transition.

 

Some doom-mongers were anticipating Royal Dutch Shell might unveil the
largest-ever UK corporate loss, but in the end, the Anglo-Dutch oil group
managed to get only halfway there. The £16bn deficit is dwarfed by the £30bn
loss posted by Royal Bank of Scotland at the height of the 2008 banking
crisis.

 

The Shell results will also quickly be forgotten. They are largely
accounting rather than cash losses, the result of a giant write-down in the
future value of the company's oil fields and prospects. Already investors
are turning their attention to next week, when chief executive Ben van
Beurden will present the company's long-awaited plans to shift the company
towards greener forms of energy.

 

Pension funds and other big investors are pushing hard to get Shell to do
more. The same pension funds, however, are reliant on the big stream of
dividends that flows from the oil business. They will be hoping that Mr van
Beurden will be able to pull off the trick of using that income to fund the
investments in green energy that will - hopefully - yield a similar juicy
dividend income in the future.

 

Other big oil companies are also feeling the strain. On Tuesday, BP reported
that it lost $18.1bn in 2020, marking its first annual loss in a decade.

 

On the same day, US giant Exxon Mobil posted annual losses of $22.4bn.

 

Two other big US firms, Chevron and ConocoPhillips, reported big losses as
well.

 

There are also indications of a potential shake-up in the sector, after
media reports emerged this week that Exxon and Chevron held preliminary
talks last year on a possible merger.

 

The two firms declined to comment, but sources told Reuters that the
discussions involved Exxon chief executive Darren Woods and his counterpart
at Chevron, Mike Wirth.

 

Brent crude

"This week's huge losses by Shell, BP and Exxon reflect the challenges oil
and gas companies face," said David Elmes, professor of practice and head of
the Global Energy Research Network at Warwick Business School.

 

"They are skating on ever-thinning ice as the effects of climate change
combine with other events like the Covid-19 pandemic."

 

Prof Elmes said the slump in demand for oil and gas due to the pandemic had
become more prolonged than initially hoped.

 

"There will be some ongoing need for oil and gas as a fuel for a while yet.
There will also be demand for the petrochemicals and other products made
from them. But that can't sustain the industry we've seen in the past as we
look to address climate change."—BBC

 

 

More Cadbury Dairy Milk production to return to Bournville

image captionNew investment means 125 million more Dairy Milk bars will be
made in Birmingham

The owner of Cadbury is set to return more of its Dairy Milk production back
to its historic Bournville factory.

 

Mondelez International - which owns the chocolate brand - said some
production in continental Europe would return to the UK.

 

Announcing a £15m investment at the Birmingham site, the company said from
2022, 125 million more Dairy Milk bars would be manufactured there.

 

Bournville village was built by the Cadbury brothers in the 1870s.

 

Mondelez' UK managing director Louise Stigant said Bournville was still
considered the "heart of Cadbury" and bringing more Dairy milk production
back "home" offered an opportunity to invest in the plant.

 

Until now, about two thirds of Cadbury's chocolate has been made in
Birmingham, and the company said the new investment would see "almost all"
of its products made at Bournville.

 

About £11m of the new funding will go towards a new production line.

 

The remaining £4m will be spent increasing its chocolate-making capacity.

 

Last year, Bournville produced 35,000 tonnes of Cadbury Dairy Milk tablets -
about 234 million bars - and this investment will sallow them to make an
additional 12,000 tonnes of chocolate.

 

Some production will remain overseas, Mondelez said, and the firm also
confirmed the investment would not lead to the creation of any new jobs.

 

"At a time when manufacturing in the UK is facing significant challenges, it
has never been more vital to secure the long-term competitiveness and
sustainability of our business," Ms Stigant added.

 

Mondelez, which owns other brands including Toblerone and Milka, is one of
the largest chocolate, biscuit and coffee producers in the EU.

 

"Bournville is now much more competitive across our manufacturing network,
particularly when it comes to producing high volume products such as Cadbury
Dairy Milk tablets," Bournville manufacturing director, Roberto Gambaccini,
said.

 

"It's important that we continue this journey and this investment will see
us take full advantage of the efficiencies that modernisation, and
upskilling can create to continue the growth and success of the Bournville
site."--BBC

 

 

 

Heathrow workers to launch February strike action

Heathrow workers are to launch a wave of February strike action on Friday as
part of a row over wages.

 

The airport says it will keep operating despite the walkout by workers,
including baggage handlers and firefighters.

 

Heathrow said in September it would cut pay by 15% to 20% for about half of
the 4,700 staff in engineering, airside operations and security.

 

But the Unite union says that most of those staff will be worse off.

 

A spokesman for the union said that some members were losing a quarter of
their pay, with cuts of as much as £8,000.

 

Some workers are having to get rid of property and downsize, some are giving
up their cars, and one couple has even had to stop IVF treatment because
they were no longer able to afford it, the spokesman said.

 

Workers will strike on Friday 5 February, as well as on 9, 13, 16 and 18
February.

 

The union accused Heathrow of firing and rehiring "its entire workforce on
vastly inferior wages and conditions".

 

While passenger numbers have slumped during the pandemic, the airport is
still handling large volumes of freight, the Unite spokesman said.

 

The airport is plugging the gaps in its workforce with sub-contractors,
agency workers and casual staff, but the union questioned the safety of
those measures.

 

Pandemic costs

Heathrow, the UK's largest airport, said the coronavirus crisis had cost it
more than £1.5bn as passengers numbers have been hit by lockdowns and
restrictions.

 

In January, the airport said passenger numbers dropped by almost
three-quarters in 2020.

 

However, Unite regional coordinating officer Wayne King said: "[Heathrow]'s
motives from the outset have been all about greed and not about need. If
this was linked to the Covid-19 pandemic and its impact on aviation, then
cuts to pay would be temporary and not permanent."

 

"[Heathrow] has brutally stripped workers of their pay and left many of them
unable to make ends meet."

 

A Heathrow spokesperson said: "Every frontline colleague has accepted the
new offer which pays above the market rate and London living wage.

 

"Nobody has been fired and rehired and indeed, 48% saw no change or
experienced a pay increase.

 

In addition, if the airport has recovered sufficiently in two years' time,
there will be a "business recovery incentive payment" to all workers, the
spokesperson said, adding that its approach had prevented "huge swathes of
compulsory redundancies".

 

"These strikes unnecessarily threaten further damage to our business already
facing a number of challenges, with virtually no support from government."

 

The dispute led to four days of strike action in December.--BBC

 

 

 

Namibia: Air Nam Board Members Quit

Three Air Namibia board members resigned with immediate effect between
Monday and yesterday.

 

This comes after the board accused the government of interference in running
the airline, making it difficult for it to execute its mandate.

 

Minister of public enterprises Leon Jooste confirmed the resignations
yesterday. He said board chairperson Escher Luanda and Heritha Muyoba
resigned yesterday and Willy Mertens quit on Monday.

 

The fate of the fourth board member Alois Nyandoro could not be established.
The board has been at the helm of the airline for the past two years.

 

The resignations come after the board averted the airline's closure last
week, after an international company called Challenge Air took it to court
over debt.

 

The government refused to provide Air Namibia with N$95 million to pay
Challenge Air, and the board struck an agreement to settle without the
government's involvement.

Despite the agreement, the board maintained that the door to file for
liquidation remains open.

 

The national airline said if it were to be liquidated, the impact would be
devastating as 636 employees would lose their jobs. The board said the best
option would be for a re-start plan, to preserve at least 50% jobs, while
enabling the airline to add value to the domestic economy.

 

GOVERNANCE TRANSGRESSION CLAIMS

 

Before resigning the board members claimed the Ministry of Public
Enterprises made major decisions for Air Namibia without their involvement.

 

They also said during their tenure, they endured the usurping of functions
by the state as shareholder. This, according to them, is not consistent with
sound state-owned enterprise (SOE) governance.

 

 

"It is a fundamental principle that the role of the state, as shareholder,
is to provide policy directions, while the board leads and directs the SOE
in achieving its goals and objectives," they added.

 

The board also accused the public enterprises ministry of directly engaging
employees and trade unions.

 

In addition, the government allegedly negotiated contracts for the company
without the board's involvement and also managed the airline's allocated
budget without board involvement.

 

"The airline had received N$948 million in the 2020/2021 fiscal year from
the Ministry of Finance and approved by parliament, but the board has to
date not been briefed how these funds were disbursed to the airline if at
all, other than a monthly allocation for employee salaries," they added.

 

According to the board members, the government also initiated a
restructuring exercise, without their knowledge.

 

 

"These are unfortunate instances that fly in the face of good corporate
governance and have made it extremely difficult for the board to execute its
fiduciary role."

 

Despite the finance minister stating on Friday that implementing the new Air
Namibia business plan would cost more than N$7 billion, the airline
maintains that the information is not factual and is based on a wrong
premise.

 

"In fact, the N$7 billion brings forward future debts to as far as 2025 and
creates the impression that these debts are due and payable. This figure has
also been further clarified with the shareholder at no fewer than three
forums," the board noted.

 

GOVT RESPONDS

 

Meanwhile, Jooste told The Namibian yesterday that Air Namibia has been on
the agenda of the Cabinet and the Cabinet committee on treasury since 2015.

 

He added that all the associated activities were discussed and then either
instructed or endorsed by the Cabinet and/or the Cabinet committee on
treasury. The minister further said after those instructions or
endorsements, the ministry was instructed to implement the various actions
and to report back to the Cabinet committee on treasury and/or Cabinet.

 

"All of the mentioned actions were in line with these instructions after due
consideration of the applicable facts and merits. The government will soon
be in a position to provide detailed information and I will be happy to
clarify any misunderstandings or misconceptions then," Jooste
said.-Namibian.

 

 

 

Nigeria: Sylva - Why Oil Firms Cannot Relocate Offices to Niger Delta Now

The Minister of State for Petroleum Resources, Chief Timipre Sylva, has said
asking the oil companies operating in the country to relocate to the Niger
Delta without first addressing the security concerns in the area would
escalate crude oil production cost.

 

Sylva insisted that youths and residents of the region must eschew
restiveness and work for peace and security as preconditions for
multinationals to relocate.

 

The minister spoke in Yenagoa, Bayelsa State, at the special town hall
meeting organised by the state government and the ministry of petroleum
resources with chiefs, youths and other stakeholders in the state.

A statement by the Nigerian Content Development and Monitoring Board
(NCDMB), recalled that the interactive session was a directive of President
Muhammadu Buhari, after the #ENDSARS protest last year, for ministers and
other top government functionaries to enlighten Nigerians about the plans
and programmes of the federal government.

 

Stressing that Nigeria's unit per barrel cost was the highest among the
Organisation of Petroleum Exporting Countries (OPEC) members, the minister
noted that the agitation must be looked at from the perspective of cost.

 

"It will be cheaper for oil companies to operate from here because it is
nearer from the operating areas. The only concern is that we have a
responsibility to bring peace and security because that is another source of
cost.

 

"If you don't have peace and security and the oil companies move back here,
then you add to the cost of oil production," he explained.

He maintained that it would make sense to the oil companies to return if the
environment is safe because it will be cheaper for them, but clarified that
on its part, the ministry was not against the oil companies moving back.

 

"They were here before. Shell was in Port Harcourt and Warri and most of
other companies were here. They only ran away when insecurity took over the
region. It is time to bring back peace and security so that those firms can
return," he said.

 

The minister further reiterated that the current administration was
committed to the development of Bayelsa State and other states of the Niger
Delta.

 

Sylva affirmed that the federal government was willing to promote more
investments that will create jobs and prosperity for citizens and residents
of the state and listed the Nigerian Content Tower as one of top
achievements of the current administration.

The minister further stated that the federal government is promoting the
development of Nigerian Oil and Gas Park at Ogbia LGA of the state and is
facilitating the development of two modular refineries within the state.

 

He listed the refineries as the 12,000 barrels per day Hydroskimming modular
refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain,
and the 2000 barrels per day modular refinery being developed by Atlantic
International Refinery and Petrochemical Limited at Okpoama, Brass Local
Government Area.

 

He added that the federal government has also taken final investment
decision on the Brass Fertiliser and Petrochemical Project, among other
projects.

 

The minister affirmed that the various projects would create thousands of
direct and indirect jobs for Bayelsans and other Nigerians during the
construction stage as well as the operations phase of the facilities.

 

Speaking further, Sylva charged residents and stakeholders in Bayelsa state
to embrace unity and collaborative spirit in order to enjoy more
developmental strides.

 

He said: "From this meeting, we expect a lot more understanding because some
of the problems we have are as result of breakdown in communication. This
forum will create a platform to understand the plans of what the state
government is doing and how the federal government can also assist in order
to create a better life for the people."

 

In his remarks, Governor Douye Diri pleaded for unity, synergy,
collaboration and cooperation from all parties to move the state forward and
requested the federal government to commence the Nembe/Brass road.

 

"All the projects that you have located in Brass local council will become
elephant projects if we do not have a road leading there," he said.-This
Day.

 

 

Ethiopia: Micro-Insurance in Mitigating Uncertainty in Agricultural
Production

To fight poverty and improve productivity, small-scale farmers who are
facing financial constraints and trapped in a subsistence way of living
should be integrated into the market.

 

To realize this, the role of microfinance and insurance should receive due
emphasis. One of the bottlenecks in improving the lives of the poor is lack
of access to finance and credit.

 

According to some documents, one of the various instruments that reduce
poverty in rural areas is through facilitating access to credit to the poor.
As formal financial institutions failed to reach the poor for collateral
requirements, micro finance program that provides services such as credit,
saving and insurance is seen as an alternative strategy to reduce poverty.

Currently, both public and private banking and insurance sectors are
booming. But, due to the rule of the game, their loan and insurance
facilities are not accessible to the low economic groups as they have
neither the property that can be utilized as collateral nor the payment for
premium, said Mekonnen Abera, an economist.

 

To improve access to finance both in urban and rural parts of the country,
several saving and credit associations have been established. They have also
created an opportunity for low-income earners to access such services.

 

As to him, the the members established the corporation based on rules and
regulations to govern its activities. Members are benefiting from credit
services as per their saving.

 

Contrary to the situation in urban areas where it is possible to start small
businesses by accessing credit from small micro-finance institutions, it is
much difficult in rural areas to utilize these services to expand
agriculture as agricultural inputs are expensive even in the case of
small-scale farmers.

Hence, it is beyond their capacity to access the required amount of loan.
Hence, the involvement of microinsurance enterprises in small farming is
essential to boost farmers' morale and inspire them to do their work
vigorously.

 

According to him, with the view to garner the long-term benefit and
discharge their corporate social responsibility, private companies in
collaboration with the government and stakeholders have been venturing to
provide microinsurance services.

 

Due to its huge significance, such kind of initiative needs to be
appreciated and other financial institutions should follow their footsteps.

Providing micro-insurance to small-scale farmers needs the cooperation of
all stakeholders and need a firm decision. As it is known, agriculture is
practiced in different agro-ecological zones in the country. Some areas get
adequate rainfall for production annually, while other areas are vulnerable
to frequent drought.

 

To improve this situation, with the support of stakeholders, microinsurance
institutions are striving to support small-scale farmers. With this, small
and microfinance institutions are playing an important role in responding to
the demand of rural communities.

 

These institutions are also known for providing insurance services in
addition to their direct credit and saving services. Oromia Credit and
Savings Corporation S.C. (OCSC) is one of such institutions that is engaged
in this endeavor.

 

The company was established in August, 2004 and initially opened a few
branches in some parts of Oromia, providing microfinance services.
Approached by The Ethiopian Herald, Director of the Marketing and
Communication Directorate at OCSC, Oli Teferi stated that the company is
working in a bid to fight poverty by providing insurance to underprivileged
members to society in addition its saving and credit services.

 

The reason for the establishment of the institute was to deliver a financial
service that will benefit farmers as banking services are not available in
many rural areas across the country, he said.

 

A national microfinance policy has also been formulated to enable
non-banking farmers. As to him, this will help to increase their saving
culture and increase their production and productivity through access to
credit.

 

OCSC is a corporation established primarily to work with the Oromia Regional
State and other development organizations in the region. Over time, it has
expanded its accessibility to almost a total of 394 woredas in the region.
Currently, it has also expanded its branches.

 

While mentioning that the savings and credit amount was only 1.2 million and
less than 9 billion Birr respectively when it started its operation, he
added that the credit supply has now reached 10 billion Birr.

 

According to the director, OCSC has been focusing on providing credit to
farmers to buy and produce fertilizers and improved seeds. It is working
with unemployed urban and rural people, especially those who have graduated
from universities and TVETs. The activities have focused on providing them
with credit to start their own small business.

 

He further stated that the corporation is providing insurance services to
the farmers. In this regard, there are two types of life insurance for
farmers, one of which is loan provision for development and helps the rest
of the family not to be burdened with debt when the debtor dies.

 

This type of life insurance is a type of insurance that can make debt
cancelation including interests if the farmer (the debtor) dies without
repaying the loan.

 

The institution's second alternative insurance policy is life insurance that
can make debt cancelation for the debtor when the debtor or close partner of
the debtor dies before the loan is completed. When farmers apply for a loan,
they are recommended to join one of the two alternative life insurances, he
noted.

 

Stating that they are providing insurance service for the farmers even in
rural areas as the people have no other option, he added that the
corporation in collaboration with other financial sectors has set a plan to
offer crop insurance and pet insurance in the near future.

 

"As Oromia Financial and Savings Corporation is a financial institution, it
will continue to strengthen its activities in the insurance sector. We will
also expand our services by studying additional insurance services," he
noted.

 

On the contrary, the Director has mentioned that there are some problems
that threaten the corporation and other similar financial institutions. As
to him, debt reimbursement has become a serious problem these days. If the
debtors are not able to repay the loan responsibly, the burden will fall on
the next generation and closes the door of opportunity on others.

 

Moreover, the lending institutions and the national economy will suffer if
the borrowers are unable to repay the loan. Debt settlement is a challenge,
especially for young people. Adding to the point that the problem is
particularly observed among the youths, he called upon youths to repay their
loans on time including the government's revolving fund.

 

According to Oli, the society must realize that saving is one of the best
mechanisms to avoid poverty. In particular, Oromia Credit and Savings SC is
a financial institution that uses modern technologies to promote saving.
When the public uses this institution for savings, they will benefit from
access to credit and insurance services too, he asserted.

 

The provision of micro-insurance services both for small-scale sedentary
farmers and pastorals need to be promoted. "Because in our context, both
ways of life are vulnerable to natural hazards.

 

Besides averting such risk and vulnerability, it can transform the sectors
to have a meaningful role in the economy," Mekonnen recommended.-Ethiopian
Herald.

 

 

 

Namibia: Farmers Reap Agri Benefits

Emono — In the quest to increase food security in the country, the ministry
of agriculture through its horticulture support programme last year aided
308 small-scale farmers and backyard gardeners with input to improve their
produce.

 

The programme kicked off last year in April and subsidises farmers with 65%
of their total request from the ministry.

 

About N$5 million has been set aside yearly since last year to assist
farmers, national coordinator for the programme James Nzehengwa has
revealed.

 

Nzehengwa said the programme was initiated to improve food security and
nutrition across the country targeting mostly women and the youth.

To date women are taking the lead in the project. So far, the programme
coordinator said, the impact is being felt as farmers are not only able to
produce food for themselves but produce enough to sell and subsequently
generate an income.

 

The programme benefits farmers with very limited land of 0.01 hectare to
those that have half a hectare. He thus called on the youth and other
eligible community members to apply to receive the subsidy. "Our call to the
youth is that the opportunity is there for them to get involved in
agriculture and create employment for themselves and others," said
Nzehengwa. At Emono village on the outskirts of Oshakati, Paulinus Elago
(36), had developed a passion for agriculture at a tender age when he was
just in grade 8.

 

During that time, he put up a nursery at home and after completing his
matric he started a small garden at his parents' home growing spinach,
carrots and tomatoes to sell. A trained mechanic, Elago said he used his
time whilst training at a local vocational school to sell plants from his
nursery.

"It was at that time that I realised that I could generate money from
agriculture," said Elago. After completing his course, he raised money and
started a garden with his friend Erassy, and the rest is history.

 

He started off with one drip irrigation line watering 16 lines, but his
garden has since expanded and now employs 10 people, including himself.

 

Passionate about his garden and agriculture in general, Elago said he wanted
to do away with not having and buying food, especially goods that he has the
ability to produce such as vegetables.

 

"We cannot be buying everything, some things we need to produce - it was my
stomach that drove me to start this garden," said Elago. Elago said what
started off small two years ago is now generating an income for himself and
nine other people.

"This has become a one-stop area for many households in the area," said
Elago.

 

He received a subsidy to buy drip irrigation materials. Another beneficiary,
Anna Niipare (69) from Okatana in the Oshana region, has dreams of expanding
her garden to employ at least two or more people. A former driver at
Ondangwa Town Council, the pensioner now produces enough to sell to her
community.

 

"I drive around in the community and sell from house to house and so far the
business has been good," said Niipare.

 

Niipare grows a wide range of vegetables including spinach, carrots,
tomatoes, green peppers, amongst several others.

 

She received a subsidy to buy a water tank, shade nets and drip irrigation
pipes.

 

Despite the flourishing garden, Niipare's garden is confronted by challenges
such as a lack of water when her self-dug dam dries out and people stealing
her produce.

 

Despite her setbacks, she says that the benefits outweigh her challenges and
thus pleads with fellow Namibians including women and the youth to take part
in producing food. "Let us do our part in producing food. Nothing good comes
out of idling around," urged Niipare.

 

At Ekuku, Elizabeth Kamari (64) received a subsidy to buy a water tank,
poles and seeds to advance her garden last year in August. Although she was
able to produce and sell in the community last year, Kamari wants to be
capacitated to enable her garden to flourish.

 

Also passionate about gardening and producing her own food, Kamari said she
struggles to grow her produce as some do not grow as desired. "I need the
ministry to capacitate me through training because I have the will and space
to grow my garden," said Kamari. In addition to that, Kamari said she is
also challenged by the availability of water as she is using potable water,
which is pricey and not always affordable.-New Era.

 

 

South Africa: Probe On Excessive Prices of Garlic, Ginger

The National Consumer Commission (NCC) has launched an investigation into
allegations of price gouging relating to garlic and ginger.

 

"The law defines price gouging as an unfair or unreasonable price increase
that does not correspond to or is not equivalent to the increase in the cost
of providing that good or service," the NCC said on Wednesday.

 

The investigation follows an outcry by consumers carried in the media
including social media platforms regarding alleged excessive prices of both
products by various suppliers.

 

Consumer and Customer Protection and National Disaster Management
Regulations and Directions, issued in terms of Regulation 350 of Government
Notice 43116 contains a list of 22 essential products, which a supplier must
not charge unfair or at an unreasonable price.

"This was done to protect consumers against unconscionable, unfair,
unreasonable, unjust or improper commercial practises during the national
disaster," the NCC said.

 

Acting Consumer Commissioner Thezi Mabuza said the commission initiated this
investigation, as empowered by Section 71 of the Consumer Protection Act
(CPA), following a public outcry.

 

"The purpose of the CPA is, amongst others, to reduce and ameliorate any
disadvantages experienced in accessing any supply of goods or services by
consumers," Mabuza said.

 

The investigations into the following companies have commenced:

 

Food Lovers Market;

 

Spar Group;

 

 

Pick n Pay;

 

Shoprite Group;

 

Boxer Superstores;

 

Cambridge Foods and

 

Woolworths

 

"Our investigation is not limited to these suppliers. We urge consumers
throughout the country to monitor the market and where they suspect
excessive price increase, they must file complaints with the commission.

 

"These allegations, if proven true, would constitute a violation of
Regulation 350 and an imposition fine of up to R1000 000 or up to 10% of a
supplier's annual turnover or even imprisonment for a period not exceeding
12 months," Mabuza said.

 

Consumers are urged to lodge complaints by contacting the NCC at 0800 014
880 or 012 428 7000 during office hours.-SAnews.gov.za.

 

 

 

 


 


 


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INVESTORS DIARY 2021

 


Company

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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.

 


 

 


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