Major International Business Headlines Brief::: 27 July 2021

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Major International Business Headlines Brief::: 27 July 2021

 


 

 


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ü  China stocks see biggest slump in US since 2008 financial crisis

ü  Tesla profit surge driven by record car deliveries

ü  House prices at new high as buyers seek more space

ü  Bezos' $2bn offer to get back in race to the Moon

ü  UK defence firm bid monitored by government

ü  Jaguar Land Rover owner Tata Motors feels chip shortage strain

ü  Air travel yet to meaningfully restart, says UK industry

ü  Amazon Bitcoin job ad boosts cryptocurrency surge

ü  Ministers consider blocking China's role in UK nuclear power

ü  Shares in Chinese online tutoring firms slump after shake-up

ü  Nigeria: Buhari Signs N983 Billion Supplementary Budget for 2021

ü  Nigeria: More Nigerian Banks Are Using Chatbots to Serve Customers, but
With Mixed Results

ü  South Africa: Tiger Brands Recalls Millions of Canned Products

ü  Africa: Over 400 Million Africans Live Below Poverty Line - Report

ü  Kenya: Cryptocurrency Booming Among Kenyan Farmers

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China stocks see biggest slump in US since 2008 financial crisis

Shares of Chinese companies listed in the US have seen their biggest two-day
fall since the 2008 financial crisis.

 

The Nasdaq Golden Dragon China Index, which follows the 98 biggest US-listed
Chinese stocks, has fallen by almost 15% in the last two trading sessions.

 

The index has now plummeted by more than 45% since hitting a record high in
February.

 

The slump comes after a series of crackdowns by Beijing on its technology
and education industries.

 

This has led to around $770bn (£556bn) being wiped off the value of
US-listed Chinese stocks in the last five months alone.

 

The latest blow came as Beijing unveiled a massive overhaul of China's
$120bn private tutoring sector, under which all institutions offering
tuition on school curricula will be registered as non-profit organisations.

 

The new rules also said: "Curriculum subject-tutoring institutions are not
allowed to go public for financing; listed companies should not invest in
the institutions, and foreign capital is barred from such institutions."

 

That pushed down the stock market value of private education firms in the
US, Hong Kong and mainland China.

 

Chinese authorities are also cracking down on a wide range of online
services from ride-hailing app Didi to Tencent's music streaming platforms.

 

Shares in Tencent fell by another 7% on Tuesday in Hong Kong after China
ordered the technology giant to end exclusive music licensing deals with
major record labels around the world.

 

Regulators said the move was aimed at tackling the company's dominance of
online music streaming in the country.

 

Didi also saw its shares fall by more than 11% after a report that
regulators in Beijing are considering serious penalties for the company. It
was accused of illegally collected users' personal data.

 

And earlier this year, Chinese e-commerce giant Alibaba accepted a record
$2.8bn fine after an official investigation found that it had abused its
market position for years. -BBC

 

 

 

Tesla profit surge driven by record car deliveries

Tesla has reported surging profits, despite shortages of semiconductor chips
and congestion at ports hampering production.

 

Sales rose to $12bn (£8.6bn) in the three months to the end of June, up from
$6bn a year ago, when its US factory was shut down.

 

The electric carmaker said it delivered a record 200,000 cars to customers
in the same period.

 

It added that public support for greener cars was greater than ever.

 

The company, led by billionaire entrepreneur Elon Musk, reported on Monday
that profits soared off the back of strong sales.

 

Profits for the second three months of the year were $1.1bn, up from $104m
last year, bolstered by sales of its cheaper Model 3 sedan and Model Y.

 

In an update to investors on Monday, Tesla said: "Public sentiment and
support for electric vehicles seems to be at a never-before-seen inflection
point.

 

"We continue to work hard to drive down costs and increase our rate of
production to make electric vehicles accessible to as many people as
possible."

 

Tesla added that how quickly it could produce cars throughout the rest of
the year would depend on the supply of key parts of its vehicles, with
demand at "record levels".

 

Chip shortage

On a call with financial analysts on Monday, Mr Musk said: "At this point, I
think everyone can agree, electric vehicles are the only way forward."

 

Mr Musk said during the call that the global chip shortage "remains quite
serious" and manufacturing would hinge on this "slowest part of the supply
chain".

 

He also described late-night calls with suppliers in an attempt to resolve
shortages.

 

As a result, there were growing waiting times for Tesla cars, especially
across Europe, the company said in its results.

 

It will look to start production at its new Berlin "gigafactory" as soon as
possible. It has been plagued by delays, although the company bills it as
"the most advanced high-volume electric vehicle production plant in the
world".

 

It will ramp up the manufacturing of its cars at its California hub in the
meantime.

 

Mr Musk was also reportedly seen visiting Luton earlier this year, sparking
rumours he may be considering a Tesla factory in the UK.

 

Other car giants such as Ford and General Motors have been forced to suspend
production temporarily in some US factories, having been hit by the global
shortage of semiconductors.

 

Profits at Tesla in the second quarter were also dented, however, by other
items such as investments in the cryptocurrency Bitcoin.

 

It invested heavily in the digital currency previously. But it stopped
taking Bitcoin as a form of payment earlier this year because of Mr Musk's
concerns about the environmental impact of Bitcoin mining, which uses huge
amounts of electricity.

 

The company reported a $23m loss on its Bitcoin investments on Monday,
although its chief executive recently signalled it might accept it again in
future.

 

Amazon Bitcoin job ad boosts cryptocurrency surge

Elon Musk ‘rather hates’ being Tesla boss

Wedbush analyst Dan Ives said that this figure was, however, "much lower
than many had feared".

 

He added that overall, the set of results marked a "step in the right
direction" for the company, with "healthy" growth also seen in China, where
Tesla began manufacturing last year.

 

Mr Ives did point out, however, that a big question for investors would be
when the company would be able to hit profitability excluding the income it
gets from reselling to other carmakers the credits that it earns for
exceeding emissions and fuel standards.

 

Between April and the end of June, it saw $354m in revenues generated
through the sale of such credits, down from $428m the same period a year
before.-BBC

 

 

 

House prices at new high as buyers seek more space

Surging demand for houses will last well into 2022 as buyers continue to
look for more room after being cooped up during the pandemic, says property
website Zoopla.

 

A search for space has pushed up the average price of a house by 7.3% over
the past year, reaching a new high of £230,700, it says.

 

While houses are proving popular, flats are less sought after.

 

But properties of all kinds are in short supply, the firm stressed.

 

"Demand for houses is twice as high as typically seen at this time of year
between 2017 and 2019, accelerating away from demand for flats, creating a
disparity in average price growth across the two property types," Zoopla
said.

 

"House prices are being supported in part by a severe shortage of homes for
sale, with stock levels down some 25% in the first half of the year compared
to 2020."

 

The firm said that while house prices were surging, the growth in flat
prices was lagging at 1.4% over the past year.

 

"The rise in demand for houses is something we saw in the first lockdown,"
Grainne Gilmore, head of research at Zoopla, told the BBC.

 

"It's a reassessment among many homeowners of where they want to live."

 

Ms Gilmore said that with the rise of working from home, many people wanted
a spare room that could become an office, while others were seeking garden
space.

 

"A cohort of buyers has eroded the supply of family houses and put upward
pressure on house prices more than flats over the past 12 months," she said.

 

"That's a situation that we would expect to continue into 2022."

 

"We're still seeing very high levels of demand in the market, even now with
more modest stamp duty savings," Ms Gilmore added.

 

The price of the average UK house has jumped by 30% since 2007, when a
typical house cost just £177,300, according to Zoopla.

 

In June alone, house prices were up 5.4% year-on-year, although buyer demand
dipped 9% in early July because of the stamp duty holiday coming to an end.

 

Sales agreed this year are still 22% ahead of average levels in 2020.

 

Regional variations

As people are taking the opportunity to move out of big cities, house prices
have grown the most in Wales at 10.2% and the North East at 8.8%.

 

House price growth is weakest in London at 5.6%.

 

For flats, prices have risen the most in Scotland at 5.2% and the Midlands
at 3.7%, but in London, flat prices have fallen by 0.5%.

 

Zoopla said it was also seeing a jump in demand for properties in outer
London, up 86% on 2017-19 levels.

 

But the housing website said that it expected sales in London to improve,
"providing there are no further pandemic setbacks", since the rental market
had already bounced back.

 

"Further relaxation on the restrictions around global travel will result in
a firmer pick-up in demand, which will also reverse the downward trend in
pricing," Zoopla said.-BBC

 

 

 

Bezos' $2bn offer to get back in race to the Moon

Jeff Bezos has offered to cover $2bn (£1.4bn) of Nasa costs in order to be
reconsidered for a key contract to build a Moon landing vehicle.

 

In April, the space agency awarded the $2.9bn contract to Elon Musk,
rejecting a bid from Bezos' company Blue Origin.

 

The award is for building the landing system that will carry astronauts down
to the lunar surface as early as 2024.

 

Nasa could only award the contract to one company, not two as expected
because of a funding shortfall.

 

The space agency had received only $850m of the $3.3bn it requested from
Congress to build the Moon lander.

 

In a letter to Nasa's administrator Bill Nelson, released on Monday, Mr
Bezos wrote: "Blue Origin will bridge the HLS [Human Landing System]
budgetary funding shortfall by waiving all payments in the current and next
two government fiscal years up to $2bn to get the programme back on track
right now.

 

"This offer is not a deferral, but is an outright and permanent waiver of
those payments."

 

At the time of the award, Nasa's human exploration chief Kathy Lueders
admitted that the space agency's current budget precluded it from selecting
two companies.

 

Nasa also cited the proven record of orbital missions by Elon Musk's SpaceX
firm as a factor in the award. Cost is also thought to have played a role:
SpaceX's bid was the lowest-priced by some distance.

 

The decision meant that SpaceX's cylindrical Starship vehicle would carry
the astronauts in Nasa's first mission to the lunar surface since Apollo 17
in 1972.

 

Alabama-based defence contractor Dynetics was also vying for the contract.

 

Bezos had partnered with aerospace giants Lockheed Martin, Northrop Grumman
and Draper in a bid to join this crucial phase of Nasa's Human Landing
System programme.

 

Their design was named the Blue Moon lander, and bore a passing resemblance
to a beefed-up version of the lunar module (LM) that carried Neil Armstrong
and Buzz Aldrin to the surface in 1969.

 

In his letter, Bezos emphasised Blue Moon's proven heritage: "We created a
21st Century lunar landing system inspired by the well-characterised Apollo
architecture - an architecture with many benefits. One of its important
benefits is that it prioritizes safety."

 

Musk's Starship has pushed the envelope of spacecraft design, employing a
radical approach to landing and incorporating innovative methane-fuelled
engines.

 

media captionThe moment Jeff Bezos and crew launch into space on the first
human flight of New Shepard

Bezos also used his letter to emphasise Blue Origin's use of hydrogen fuel,
which dovetails with Nasa's longer-term aims of refuelling spacecraft from
water-ice mined on the Moon. The water can be split into hydrogen and oxygen
propellant for rocket engines.

 

In Nasa's selection statement from April, SpaceX received an "acceptable"
technical rating and an "outstanding" management rating. Blue Origin's bid
was also rated "acceptable" on its technical merits but its management
rating was deemed "very good" by the space agency.

 

After losing out to SpaceX, Blue Origin filed a protest with the US
Government Accountability Office (GAO), alleging Nasa unfairly "moved the
goalposts at the last minute" in the way that it awarded the contract to
SpaceX.

 

That protest, along with one from Dynetics, is awaiting adjudication,
although some in the space community regard the chances of a reversal as
unlikely.-BBC

 

 

 

UK defence firm bid monitored by government

The government says it is "closely monitoring" the proposed takeover of a UK
defence firm by a US private equity-owned company.

 

Ultra Electronics, a major supplier to the Royal Navy, has edged towards
accepting a £2.6bn bid from Cobham.

 

Ultra said the offer was at a level that its board would be "minded to
recommend" to shareholders.

 

However, the company said the deal would be subject to the "satisfactory
resolution" of other terms.

 

The bid comes after Cobham, a defence and aerospace business, was
controversially bought by private-equity firm Advent in 2019.

 

In a stock market statement, Ultra said the £35.16-a-share offer would be
subject to "consideration and satisfactory resolution of other terms and
arrangements, including the establishment of safeguards for the interests of
Ultra's stakeholder groups".

 

"In relation to this, Cobham has indicated to the board that it is minded to
offer the UK government appropriate undertakings in respect of national
security," the firm added.

 

Government powers

A spokesman for Cobham said the company had "offered assurances" to Ultra
over national security.

 

"We look forward to continuing our discussions with the board of Ultra, with
the view to creating a global defence electronics champion," a statement
said.

 

The government said it was aware of the proposed purchase and while it was a
"commercial matter", officials were "closely monitoring the transaction".

 

Sky News reported Kwasi Kwarteng, the business secretary, had ordered
officials to launch a national security investigation under the Enterprise
Act.

 

The act gives the government the power to intervene in mergers on public
interest grounds covering national security.

 

Dorset-based Cobham, which employs 10,000 people, is known for pioneering
technology enabling the mid-air refuelling of planes.

 

The firm also makes electronic warfare systems and communications for
military vehicles. Its expertise is said to have played a significant role
in the Falklands War, allowing the Royal Air Force to attack the remote Port
Stanley airfield.

 

Concerns over national security were raised when private-equity firm Advent
International bought Cobham for £4bn in 2019. However, the UK government
approved the deal.-BBC

 

 

Jaguar Land Rover owner Tata Motors feels chip shortage strain

Jaguar Land Rover (JLR) owner Tata Motors says it is still feeling the
strain of the global semiconductor shortage, but car sales are recovering
after the pandemic.

 

JLR, which brings in most of the group's revenue, saw sales rise 68%
year-on-year.

 

But Tata said the chip supply shortage was likely to worsen in the short
term.

 

This meant that JLR production in the next quarter could be cut in half, it
said.

 

Tata's losses for April to June narrowed to $598m (£432.7m), after a loss of
more than $1bn in the previous three months.

 

Thierry Bolloré, JLR chief executive, said the environment continued to
remain "challenging".

 

However, he added that the firm had seen year-on-year sales growth in all
regions of the world, "demonstrating the appeal of Jaguar and Land Rover
vehicles".

 

In April, JLR temporarily halted production at its two main factories in the
UK because of the lack of chips.

 

Other big carmakers, including Toyota, Nissan, General Motors and Ford, have
also been forced to cut production.

 

The coronavirus crisis has driven a shift to working, learning and
socialising from home, which has boosted demand for laptops and other
devices that use semiconductors.

 

That has added to the woes of the global motor industry, which was already
reeling from the sharp downturn in sales caused by the pandemic and the
challenges of switching to electric-powered vehicles.

 

In February, Jaguar Land Rover announced that its Jaguar brand would be
all-electric by 2025 and that it will launch electric models of its entire
line-up by 2030.

 

Carmakers are under pressure to meet stringent carbon emission demands in
Europe and China, as well as customer demand for high-performance electric
cars with a luxury or performance feel.-BBC

 

 

 

Air travel yet to meaningfully restart, says UK industry

International travel from the UK is yet to restart in a "meaningful" way
despite the easing of some restrictions, the industry says.

 

Trade group Airlines UK said bookings had failed to recover due to the
"frustrating" traffic light system and costly testing requirements.

 

It added that consumer confidence would remain weak without change.

 

The comments came as Heathrow warned it expects to see a further fall in
passenger numbers in 2021.

 

The airport, which was Europe's busiest before the pandemic, welcomed just
four million passengers in the first six months of the year - a total that
it would have taken just 18 days to reach in 2019.

 

'Opaque decision-making'

In a letter to the transport secretary Grant Shapps, Airlines UK noted that
passenger bookings in the rest of Europe had recovered to 50% of pre-crisis
levels in June, compared to just 16% in the UK.

 

Fully jabbed France arrivals must still isolate

What are the rules for foreign holidays this summer?

Meanwhile, US visitor numbers to the UK are still only 20% of 2019 levels,
whereas to the EU they are around 65%.

 

Blaming the traffic light system, the trade group said spending on travel
was now back at "the same fraught position as last year".

 

It cited the decision to remove Portugal from the green list of Covid-safe
destinations, closely followed by the Balearics, both within a month of
their initial inclusion.

 

It also criticised the decision to maintain quarantine rules for arrivals
from France, while removing them for travellers from all other amber list
destinations.

 

"These represent examples of the frustrating, last-minute and opaque
decision-making that has been a mainstay of the [traffic light] system so
far," the group wrote.

 

"[There has also been] a refusal to make more proportionate travel
restrictions from low-risk countries even as nightclubs open in England -
without any restrictions."

 

'Falling behind'

The government says the traffic light system helps to stop new Covid
variants from being brought into the UK.

 

But in its results for the six months to 30 June, Heathrow also criticised
the rules for creating unreasonable costs and conditions for travellers.

 

Currently anyone who is not fully vaccinated, or who was fully vaccinated
outside the UK, has to pay for three tests - one before arriving in England,
and tests on day two and day eight after arrival - and quarantine for 10
days on their return from amber list countries such as Spain. They also have
the option of ending quarantine early by paying for a test under the Test
and Release scheme on day five.

 

Heathrow now believes just 21.5 million passengers will travel through the
airport in 2021, down from 22.1 million in 2020 at the height of the
pandemic, and down from almost 90 million in 2019.

 

The airport said its cumulative losses from Covid now stood at some £2.9bn.

 

"The UK is emerging from the worst effects of the health pandemic, but is
falling behind its EU rivals in international trade by being slow to remove
restrictions," said Heathrow boss John Holland-Kaye.

 

"Replacing PCR tests with lateral flow tests and opening up to EU and US
vaccinated travellers at the end of July will start to get Britain's
economic recovery off the ground."

 

In separate results, Ryanair said it had seen a surge in summer bookings in
the past few weeks, but it said many people were booking at the last minute
amid fears travel rules could change.

 

The airline's chief financial officer, Neil Sorahan, said the EU's digital
Covid certificate, which allows a person's vaccination status to be
recognised across the whole bloc, had boosted bookings.

 

"I think the European policy has worked an awful lot better than in the UK,"
he told the BBC's Today programme.

 

"It's given more certainty, it's led to more steady green lists all across
Europe. The UK has been a little bit more haphazard with what's on the green
list, what's on the amber list."

 

The carrier now expects to fly 90-100 million passengers this financial year
- up from the lower end of a previously forecast range of 80-100 million.

 

But that is still way off the 148.6 million it flew in 2019.

 

Ryanair boss Michael O'Leary said: "Pricing remains below pre Covid-19
levels and there will continue to be great value for Ryanair guests
travelling this summer as we focus on recovering traffic, jobs and tourism
across our European network.

 

"Based on current (close-in) bookings, we expect traffic to rise from over
five million in June to almost nine million in July, and over 10 million in
August, as long as there are no further Covid setbacks in Europe."-BBC

 

 

Amazon Bitcoin job ad boosts cryptocurrency surge

The price of some cryptocurrencies has surged, after retailer Amazon
revealed it was hiring an expert in the field.

 

It advertised for a "digital currency and blockchain product lead" to look
at "how Amazon's customers pay".

 

Bitcoin rose from $29,000 (£21,000) to more than $39,000 per coin on Monday,
its largest growth in several weeks. Ethereum and Dogecoin also saw gains.

 

However, Amazon has not confirmed any plans to accept cryptocurrency
payments, despite the speculation.

 

The job advert has been widely reported by cryptocurrency enthusiast sites,
and London's City AM newspaper quoted an unnamed source as saying Amazon was
"definitely" pursuing Bitcoin payments in the near future.

 

Amazon said the successful candidate for the new job would:

 

 

·         have a deep understanding of cryptocurrency

·         "develop the case" for what Amazon should pursue

·         create the strategy for doing so

·         present the arguments to "very senior executives"

"We're inspired by the innovation happening in the cryptocurrency space and
are exploring what this could look like on Amazon," a representative said.

 

"We believe the future will be built on new technologies that enable modern,
fast, and inexpensive payments, and hope to bring that future to Amazon
customers as soon as possible."

 

Hargreaves Lansdown senior investment and markets analyst Susannah Streeter
said enthusiasts were "salivating for every nugget of news about the future"
of cryptocurrency.

 

"Amazon has scores of openings for blockchain specialists," she said.

 

"Given the might of Amazon Web Services, it isn't surprising that the tech
giant wants to be at the cutting edge of new payments technology - and
establishing a new digital currency is likely to be on the agenda."

 

But Ms Streeter added: "The sensitivity of crypto-coins and tokens remains
stark and given the uncertain landscape ahead, with central banks looking to
develop their own digital coins, investors should be wary of speculating
with money they can't afford to lose."

 

Last week, Elon Musk hinted his Tesla car company may start accepting
Bitcoin once again in the near future.-BBC

 

 

 

Ministers consider blocking China's role in UK nuclear power

Whitehall sources have confirmed reports the government is considering ways
to block China's involvement in future UK nuclear power projects as
relations with Beijing deteriorate.

 

The move could affect the development of the Sizewell C project in Suffolk,
in which state-backed China General Nuclear is set to play a key role.

 

Negotiations are continuing between the government and lead partner EDF.

 

It is understood to be a while before any concrete decision will be taken.

 

Any decision will also affect the future development of the Bradwell B
project in Essex, where China is the lead developer.

 

Government in talks to fund £20bn nuclear plant

As first reported in the Financial Times, rising tensions had raised
questions about the involvement of China, with expectations growing that its
role - financially and operationally - would be reduced at least.

 

It is understood that the UK would look to replace China with other partners
in any future projects.

 

The move is likely to inflame tensions between the UK and China and mark a
toughening of Britain's stance towards Beijing.

 

Ministers have been highly critical of Beijing's clampdown on democracy
campaigners in Hong Kong and allegations of human rights abuse in Xinjiang.

 

China's involvement in nuclear power in the UK dates back to an agreement
struck by then prime minister David Cameron and Chinese president Xi Jinping
in 2015.

 

The UK's Department for Business, Energy & Industrial Strategy (BEIS) would
not confirm the reports but a spokesperson said: "Nuclear power has an
important role to play in the UK's low-carbon energy future, as we work
towards our world-leading target to eliminate our contribution to climate
change by 2050.

 

"All nuclear projects in the UK are conducted under robust and independent
regulation to meet the UK's rigorous legal, regulatory and national security
requirements, ensuring our interests are protected."

 

A spokesperson for China's foreign ministry, Zhao Lijian, said on Monday
that the UK should "earnestly provide an open, fair and non discriminatory
business environment for Chinese companies".

 

China and the UK had important trade and investment ties, he added.

 

"It is in the interests of both sides to conduct practical co-operation in
the spirit of mutual benefit and a win-win result," Mr Zhao said.-BBC

 

 

 

Shares in Chinese online tutoring firms slump after shake-up

Shares in Chinese online tutoring firms have slumped after Beijing stripped
them of the ability to make a profit from teaching core subjects.

 

The new guidelines also restrict foreign investment in the industry.

 

The major shift in policy comes as authorities try to ease the financial
pressures of raising children, after China posted a record low birth rate.

 

It is one of the biggest ever overhauls of the country's $120bn (£87bn)
private tutoring sector.

 

Under the guidelines, issued jointly by the General Office of the Communist
Party of China Central Committee and the General Office of the State
Council, all institutions offering tuition on the school curriculum will be
registered as non-profit organisations.

 

The new rules also state: "Curriculum subject-tutoring institutions are not
allowed to go public for financing; listed companies should not invest in
the institutions, and foreign capital is barred from such institutions."

 

 

The statement said the move was intended "to ease the burden of excessive
homework and off-campus tutoring for students undergoing compulsory
education."

 

News of the rule changes have slammed the share prices of China's private
education firms.

 

In Hong Kong trade, companies including New Oriental Education & Technology,
Koolear Technology Holding Scholar Education and China Beststudy Education
plummeted by as much as 47% on Monday.

 

On Friday in New York, TAL Education Group shares fell by more than 70%,
while Gaotu Techedu lost 63% of its market value.

 

In a statement released on Sunday, TAL said it expects the guidelines "will
have material adverse impact on its after-school tutoring services related
to academic subjects in China's compulsory education system", without giving
details of the expected extent of the effect.

 

The announcement comes as Chinese authorities are cracking down on a wide
range of online services from ride-hailing app Didi to Tencent's music
streaming platforms.

 

Last week, China's internet watchdog, the Cyberspace Administration of China
(CAC), ordered some of the country's biggest online platforms to remove
inappropriate child-related content and fined them.

 

In a statement, the CAC said its actions against Kuaishou, Tencent's
messaging tool QQ, Alibaba's Taobao and Weibo "focused on solving seven
types of prominent online problems that endanger the physical and mental
health of minors".-BBC

 

 

 

Nigeria: Buhari Signs N983 Billion Supplementary Budget for 2021

The N983 billion (N982,729,695,343) budget had earlier been passed by the
National Assembly.

 

President Muhammadu Buhari Monday signed the 2021 Supplementary
Appropriation Bill into law.

 

The N983 billion (N982,729,695,343) supplementary budget had earlier been
passed by the National Assembly.

 

The Senior Special Assistant to the President on National Assembly (House of
Representatives), Umar el-Yakub, told journalists at the State House on
Monday that the president had assented to the budget.

 

He said the budget will be largely focused on funding security and health
concerns.

 

Mr Buhari's spokesperson, Garba Shehu, said in a statement that the
president signed the budget in his office at the State House in the presence
of Vice President Yemi Osinbajo, Secretary to the Government of the
Federation Boss Mustapha, Chief of Staff Ibrahim Gambari, Director-General,
Budget Office of the Federation, Ben Akabueze and Mr el-Yakub.

"Of the amount, N123.3 million is for recurrent (non-debt) expenditure while
the sum of the N859.3bn is for contribution to the Development Fund for the
capital expenditure for the year ending on the 31st day of December, 2021,"
Mr Shehu said.

 

"President Buhari commended the National Assembly for the expeditious
consideration and approval of the supplementary budget, assuring that the
executive arm of government would ensure the timely delivery of capital
projects to achieve the laudable objectives of the Budget.

 

"Meanwhile, the President has also, at an earlier date, signed the
Orthopedic Hospitals Management Board (Amendment) Act, 2021.

 

"The Act amends the Orthopedic Hospitals Management Board Act Cap. O10 Laws
of the Federation of Nigeria, 2004 to provide for the establishment of the
Orthopedic Hospital Jos, Plateau State under the control of the Orthopedic
Hospitals Management Board affiliated to the Jos Teaching Hospital to
provide specialised orthopedic treatment and medical services."-Premium
Times.

 

 

 

Nigeria: More Nigerian Banks Are Using Chatbots to Serve Customers, but With
Mixed Results

Chatbots are becoming an integral part of service provision around the
world. Chatbots are computer programs designed to simulate a conversation -
both voice and text - with human users, especially over the internet. They
are described as a never-sleeping, cost-efficient and powerful way to
provide basic support to consumers. Chatbots can respond faster to customers
and even personalise consumer experiences as they are programmed to
understand the patterns of interactions.

 

Financial services are one area where chatbots are seen as having growing
prospects. They can process most basic banking tasks such as inquiries about
balances, account details and loans. Nigerian banks have started to use
chatbots despite the inherent challenges of low adoption of digital
technology, poor internet access, limited number of smartphones users and
even security concerns.

 

In our research, we sought to understand the present state of chatbots in
the industry, examine how Nigerian banks are using this tool and offer some
recommendations.

Searching for chatbots

 

Nigeria has 22 commercial banks. We went through their websites, contacted
them via social media and asked them about their chatbots. Only 13 of the
banks had a chatbot. Some of the big ones, like Zenith Bank, did not have
one. Older banks like Wema Bank claimed that their chatbot on WhatsApp was
unavailable at the time. Globus Bank, one of the newer banks, which markets
itself as a digital bank, did not have a chatbot - it claimed it was a
work-in-progress.

 

We accessed all the chatbots from the 13 banks to understand how they
encourage financial inclusion and customer engagement. Our analysis included
their availability and performance on mobile devices and computers, and the
platform they operate on (Facebook, Telegram or WhatsApp). We checked to see
if the chatbot had been customised and given an identity or name. For
instance, UBA's chatbot is called Leo. We also noted the gender of the
chatbot. Most are identified as either male or female because of their name
and visual representation (for example Ivy from Fidelity Bank was presented
as a female and cartoon character). To evaluate security concerns, we
explored the verification status - the confirmation by WhatsApp and Facebook
that the account is the authentic representation of the brand using a blue
tick.

We then tested the chatbots to understand how they worked. We checked how
quickly they answered queries, the presence of terms and conditions, the
languages they used and which functions they could handle. For example, when
we asked for an ATM location, the chatbot was expected to ask for our
address and then offer the closest ATM. Only Fidelity Bank's Ivy was able to
do that.

 

Result

 

Some banks had more than one chatbot on different platforms, so we found and
analysed 16 chatbots in total. Access Bank, Fidelity and Keystone had two
each. Access Bank had its chatbots on its website and WhatsApp. Fidelity
used Facebook Messenger and WhatsApp, while Keystone used Facebook Messenger
and Telegram. Excluding Access Bank's website, the remaining 15 chatbots
were on mobile messaging applications. Eight were on WhatsApp, five were on
Facebook and two were on Telegram.

Eleven of the chatbots were customised and had a unique identity. Seven were
assigned a gender - all but one of these were presented as female. Only a
third of the chatbots were verified on WhatsApp. There was no verification
sign on Facebook Messenger and Telegram. This reduced the trustworthiness of
the chatbots and could place doubts on the authenticity of chatbots
representing the banks.

 

Only four of the chatbots required users to accept terms and conditions
(T&C) before they could proceed. Providing T&C constitute an agreement
established by and between the banks and the customer by virtue of the
choice to engage with the chatbot. It protects the banks on the condition of
what they have promised to deliver through the chatbot and reassures the
customers about what to expect from their interaction and how their data
will be treated.

 

None used any of Nigeria's local languages. Eleven used only English in the
conversation. Two offered English and other foreign languages (like French
and Spanish).

 

We sent messages (starting with 'hello' or 'hi') to the chatbots to test
their responsiveness. Half of the 16 responded instantly, five had a delayed
response and three did not respond at all. This poor response could hamper
customers' acceptance of chatbots.

 

For chatbots with a delayed response, we observed that they were being
managed by people and might not be considered as a proper chatbot but rather
a WhatsApp number for messaging. Also, we received an automated message that
blamed the delay on the COVID-19 pandemic. It might be the chatbot had not
been programmed to respond to enquires during this period.

 

Moving forward

 

Chatbots are a growing trend in the digital transformation of financial
services. Banks should explore the option of integrating them into their
operations. Brands should focus on one mobile application as they can
streamline their resources and avoid confusing their customers. As more
people are conversant with WhatsApp and use it for texting and chatting, it
should be the platform of choice.

 

Banks should seek verification of their chatbot on social media platforms to
reassure consumers of their safety. They must also include terms and
conditions on the chatbots. Banks must innovate to improve the
responsiveness of their chatbot because consumers want an instant reply.

 

As identities have been created for chatbots, there are possibilities for
branded features and engaging content around these characters. UBA's Leo was
an excellent example - it's been given a life of its own and has been used
across social media platforms to share different messages. It is also
essential for banks to raise awareness about this digital transformation
tool.

 

In the long term, Nigerian banks will need local graduates with the skills
required for digital transformation. Universities should be offering courses
like artificial intelligence, machine learning and interface design.

 

Emmanuel Mogaji, Senior Lecturer in Advertising and Marketing
Communications, University of Greenwich

 

 

 

South Africa: Tiger Brands Recalls Millions of Canned Products

Over 20 million canned products including beans, sweetcorn, peas and
spaghetti produced by Tiger Brands' Koo and Hugo have been recalled
following the detection of defective side seams in cans.

 

An investigation was opened after at least 18 defective cans were discovered
at a Tiger Brands facility in May. In a statement, Tiger Brands said cans
produced between May 1, 2021, and May 5, 2021, were affected and that
affected cans may leak due to the defect. The risk of secondary microbial
contamination is possible due to the defect.

 

The company added that while no health issues have been reported relating to
the affected product range the low probability of illness and injury
remains.

 

 

Africa: Over 400 Million Africans Live Below Poverty Line - Report

At least 450 million people in Africa are projected to remain poor by 2030,
according to a new report.

 

The projection is an increase by about 60 million from the earlier 400
million people.

 

According to the new report published by the Sustainable Development Goals
(SDG) Africa Secretariat, eight of the 10 world's poor will be living on the
African continent by 2030.

 

The report says out of these, nearly two-thirds are in rural areas and that
women continue to face unique adversities, which leave them more vulnerable
to shocks.

 

According to the report, seven of the 10 most unequal economies are in
Africa, with the top 10 per cent accounting for more than 50 per cent of the
national pre-tax income.

 

"The situation is not poised to change unless active, structural changes are
implemented. A total of 33 of the 36 countries in the low human development
category are in Africa. Labour market exclusion is beyond unemployment
nuance, with notable declining real wages over recent years, and in turn,
nominal wages as exhibited by high levels of working poor remain low," the
report says.

The report that was released last Thursday during a virtual conference says
social protection coverage remains low and the associated fiscal provisions
continue to be limited and now have an even wider funding gap due to
Covid-19.

 

While opening the virtual conference, Ms Justine Lumumba Kasule, the
minister of General Duties in the Office of the Prime Minister, said a lot
needs to be done to improve the situation across the continent. She said in
Uganda, government has launched the new Parish Development Model, to address
the service delivery gaps.

 

"It is unacceptable to have two out of five Ugandans living from hand to
mouth. The government is convinced that nothing can better guarantee
inclusive growth and employment for Ugandans than equitable participation of
more Ugandans in the money economy," Ms Lumumba, who is also the SDG focal
person in Uganda, said.

She said in collaboration with the SDG Centre for Africa, Uganda is
establishing a new and robust monitoring and reporting system, which it
hopes will enable the country to report on more than 140 SDG indicators.

 

The report says the exclusions also manifest in other human development
areas, including health and education. "Additionally, the recent
achievements in African health outcomes can disguise remaining disparities
in health outcomes for the most vulnerable, health output, and population
coverage in terms of essential services," the report says.

 

It says the main three dimensions related to inequality include household
wealth, place of residence, and education, factors that slow the attainment
of health-related SDGs.-Monitor.

 

 

 

Kenya: Cryptocurrency Booming Among Kenyan Farmers

Kilifi, Kenya — Cryptocurrencies make headlines for shaking up the financial
world, but they are also gaining ground in less developed countries. In
Kenya, an American economist, who introduced blockchain technology for
low-income urban customers, has extended the cashless system to the
countryside.

 

On a lush green farm in Kilifi on Kenya's tropical Indian Ocean coast,
26-year-old farmer Emmanuel Kahindi is harvesting tomatoes and other
vegetables. He is using Kenya's cryptocurrency, Sarafu, to sell his
vegetables, and to buy supplies without having to use any cash.

 

Sarafu helped me a lot, he said, especially because it makes me save my
money, my Kenyan currency. He said he uses Sarafu to purchase things for the
garden like seeds and fertilizer.

Sarafu coins work like vouchers that can be exchanged for goods or services
of other users of the currency. Anyone with a Kenyan mobile phone line can
enroll. Users are given 50 Sarafu for free. After that, they earn coins by
selling a product or service to another user.

 

Sarafu is what's known as a community inclusion currency, or CIC, allowing
people to give or take credit without having to deposit Kenyan shillings or
other currency in a bank.

 

It was created by Will Ruddick, an American economist through his Kenyan
nonprofit, Grassroots Economics. He recently introduced it to rural areas
like Kilifi.

 

"I think that's where there is the most chronic lack of national currency.
So, I think what's happening, we're filling a gap. People say look, the
national ledger system, the national currency it is not available for us. We
can't measure our trade in this thing," said Ruddick.

Kahindi moved with his harvest to a nearby restaurant in Kilifi. There he
offers his vegetables for selling and gets Sarafu in a return. The owner is
Giataari Mwang and he said he is happy with it.

 

"Sarafu is good because it allows us to get our farm produce straight from
local neighborhood farms and put it on our plate and serve it to our
customers and they are able to pay us with Sarafu," he said.

 

Bitange Ndemo is a senior lecturer at the University of Nairobi. He said
such community-focused cryptocurrencies have a potential to expand beyond
Kenya and in other parts of Africa.

 

He said that cryptocurrencies give communities an option to monetize
resources in a way that they cannot do with cash, pointing at the cobalt
mines in the Democratic Republic of Congo as a potential example.

 

"Nothing stops them from a cobalt coin based on the reserves they have in
terms of cobalt. The country then can then raise sufficient resources to
develop the country," said Ndemo.

 

In Kenya, the coins will be based on the agriculture production across the
nation and here in Kilifi.

 

For Emmanuel, it is time to relax after work. He is now seated in the
restaurant and is using Sarafu to enjoy a well-deserved meal.-VOA.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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.

 


 

 


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344 1674

 


 

 

 

 

 

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