Major International Business Headlines Brief::: 13 June 2021

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Major International Business Headlines Brief::: 13 June 2021

 


 

 


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ü  Toshiba's No.2 shareholder calls for immediate resignation of board
chair, 3 directors

ü  Wall St Week Ahead Fed meeting looms for stocks as inflation worries
collide with 'Goldilocks' markets

ü  Exxon losing veteran oil traders recruited during past expansion -sources

ü  Bid of $28 million wins a rocket trip to space with Bezos

ü  UK PM stands firm on post-Brexit trade, calls for pragmatism

ü  Bitcoin law is only latest head-turner by El Salvador's 'millennial'
president

ü  Bitcoin falls 5.71% To $35,210

ü  HK bankers and lawyers win right to apply for access to corporate
registry

ü  White House says G7 leaders will endorse proposed 15% global minimum
corporate tax

ü  Tanzania: Budget 2021 Sets Optimistic Tone

ü  Nigeria: Buhari - Insecurity, No. Infrastructure, Yes

ü  Tanzania: Tz Gets Kudos From AfDB

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Toshiba's No.2 shareholder calls for immediate resignation of board chair, 3
directors

Toshiba Corp's (6502.T) second-biggest shareholder on Sunday demanded the
board chairman and three other directors immediately resign after an
investigation found the company had colluded with the Japanese government to
pressure foreign investors.

 

The letter, seen by Reuters, is from 3D Investment Partners, which owns a
7.2% stake in Toshiba. It was sent to the four on Sunday, according to
people with direct knowledge of the process.

 

It is likely to heighten scrutiny into governance at Toshiba, a renowned
industrial conglomerate in crisis sparked by Thursday's report. The
shareholder-commissioned report marked an explosive turn in a long battle
between the Japanese company's management and foreign shareholders.

 

In addition to 3D, these shareholders include activist investors and Harvard
University's endowment fund. read more

 

The revelations in the report "are deeply troubling and represent one of the
most prominent and shocking corporate governance failures among large public
companies anywhere in the world in the last decade," the 3D letter says.

 

The letter, addressed to board chair Osamu Nagayama and three current audit
committee members, describes Nagayama as "ultimately responsible for
Toshiba's recent governance failures, including the flawed internal
investigation and the board's determination to oppose an outside,
independent investigation."

 

"It is also troubling that you have been silent about the investigative
report and have failed to accept responsibility for the misconduct that
occurred under your oversight as chair of the board," the letter says.

 

Toshiba declined to comment on the letter, telling Reuters in a statement it
was "carefully reviewing the content of the investigation report and plans
to announce its comments towards this investigation result after the
review."

 

The company was holding an emergency meeting on Sunday to discuss
reassigning the candidates for three key board committees ahead of a June 25
shareholder meeting. Major shareholder advisory firms recommended against
some of the candidates, including the four addressed in the 3D letter.

 

Four independent directors, all non-Japanese, have said in a sign of revolt
that they were no longer in support of the full slate of director candidates
nominated by Toshiba. read more

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Wall St Week Ahead Fed meeting looms for stocks as inflation worries collide
with 'Goldilocks' markets

Investors will be zeroing in on the Federal Reserve’s monetary policy
meeting next week as a "Goldilocks" market environment that has helped lift
stocks to record highs and tamed a bond selloff is tested by rising
inflation.

 

Stocks have climbed steadily in recent weeks and now stand at fresh records,
extending a rally that has seen the S&P 500 (.SPX) gain 13% this year and
nearly 90% from its March 2020 low. U.S. government bonds have also rallied
after their first-quarter selloff, with the benchmark 10-year Treasury yield
, which moves inversely to prices, recently at 1.46%, some 30 basis points
below its first quarter highs.

 

Some of those gains have been predicated on the Fed’s assurances that rising
inflation will not last long enough to warrant a sooner-than-expected end to
easy-money policies. Signals that the Fed is growing less confident in those
assumptions could unsettle stocks, which have benefited from quantitative
easing, and hurt bonds, as rising prices erode the value of longer-dated
debt.

 

Investors “are going to be looking for signs that the Fed might believe that
inflation is more permanent," said Michael Arone, chief investment
strategist for State Street Global Advisors.

 

The Fed has maintained that it has the tools to deal with accelerating
inflation. The central bank may open discussion at the Tuesday-Wednesday
meeting about when to begin unwinding its $120 billion per month purchases
of government bonds, though most analysts don't expect a decision before the
Fed's annual Jackson Hole, Wyoming, conference in August. read more

 

For now, it appears some investors are coming around to the Fed’s way of
thinking on inflation. Stocks on Thursday brushed off data showing that
consumer prices rose in May at their fastest annual pace in 13 years, as the
S&P 500 hit a new record. By contrast, a much higher-than-expected inflation
number last month caused a selloff in stocks. read more

 

Strong inflation numbers aside, recent data has offered snapshots of an
economy that is strengthening but does not appear to be close to
overheating. Employment, for instance, remains about 7.6 million jobs below
its February 2020 peak while the latest monthly report fell short of
economists estimates. read more

 

"We are making progress, but the economy is not completely on fire and a
runaway train where the Fed has to take action," said Chris Galipeau, senior
market strategist at Putnam Investments. "That puts us in the 'Goldilocks'
scenario."

 

Still, others worry that markets have grown too complacent on inflation and
other risks that could derail the current rally, from potential higher taxes
to peaking economic growth rates.

 

Analysts at BofA Global Research on Friday outlined a number of reasons that
inflation may be more sustained than many expect, including second-tier
indicators such as the National Federation of Independent Businesses survey
of small businesses showing price pressures are filtering to customers.

 

“The list of excuses for transitory inflation is getting long. The risk of
higher, more persistent inflation is growing,” BofA’s analysts wrote.

 

More broadly, bullish sentiment among individual investors has been above
its historical average of 38% for 25 of the last 30 weeks, according to the
American Association of Individual Investors. Bearish sentiment, meanwhile,
is below its historical average of 30.5% for the 18th consecutive week.

 

“At current levels, pessimism remains unusually low,” the AAII said on its
website. “Historically, below-average readings for bearish sentiment have
been followed by below-average six- and 12-month returns for the S&P 500
index.”

 

Bulls can point to plenty of reasons for stocks to remain strong. Most
investors believe the Fed will only start tapering its bond purchases in
late 2021 or early next year. Bets in the eurodollar futures markets show
investors believe the Fed will start hiking its benchmark rate in late 2022.

 

Rising estimates for corporate profit growth are also supporting stocks. S&P
500 earnings are now expected to jump 36% this year, compared to an April
estimate of 26% growth, with earnings expected to rise another roughly 12%
in 2022, according to Refinitiv IBES.

 

That has not stopped some of the world’s biggest banks, including Morgan
Stanley, from warning in recent months that the market is primed for a sharp
pullback. read more

 

Matthew Miskin, co-chief investment strategist at John Hancock Investment
Management, still favors stocks over bonds, with a preference for the
healthcare, industrials, technology and communication services sectors.

 

"We are due for some volatility and we have been saying that, and yet dips
have been met with very strong demand," he said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Exxon losing veteran oil traders recruited during past expansion -sources

Exxon Mobil Corp (XOM.N) has lost two veteran crude oil traders from its
U.S. energy trading group and a third is leaving its British unit, according
to people familiar with the matter, in a continued exodus of top talent from
the oil major.

 

Exxon last year reversed course on an expansion of its oil and petroleum
products trading as fuel demand tumbled during the pandemic. The company
suffered a $22.4 billion loss in 2020, leading to deep job and cost cuts
across the business.

 

Veteran oil traders Michael Paradise and Adam Buller, both of whom joined
Exxon in 2019 after lengthy careers elsewhere, resigned last week, the
people said. Paul Butcher, an oil trader in Britain, plans to leave in
September, another person familiar with the operation said.

 

Butcher was recruited in 2018 as a North Sea crude oil trader and adviser on
accounting for transactions to its Leatherhead unit near London. He had
previously worked for BP Plc (BP.L), Glencore Plc (GLEN.L) and Vitol SA
(VITOLV.UL).

 

Exxon declined to comment on the departures, citing personnel matters.

 

"We’re pleased with our progress over the past couple of years to grow our
team and capabilities," said spokesman Casey Norton. Exxon's scale and reach
"give our trading teams a broad footprint and unique knowledge and insights"
that can generate value for shareholders.

 

VETERAN DEPARTURES

 

Paradise was a highly regarded crude oil trader who joined Exxon from Noble
Group (NOBG.SI) and was previously director of crude oil trading at
Citigroup Inc (C.N) and BNP Paribas (BNPP.PA). Buller joined Exxon in late
2019 after trading oil for Petrolama Energy Canada and Spain's Repsol SA
(REP.MC). He earlier was director of international oil trading at BG Group.

 

Both will join Pilot Flying J, a closely-held Knoxville, Tennessee, company
that operates retail refueling centers in North America. It has expanded
into crude marketing, fuel transportation and storage and has is own trading
unit run by a former Noble Group executive.

 

A spokesperson at Pilot Flying J declined to comment.

 

Exxon recruited Paradise, Buller and a cadre of experienced traders from
rivals and international oil trading firms hoping to replicate BP and Royal
Dutch Shell's(RDSa.L)success in trading. It initially saw the expansion as a
way to profit from its knowledge of customer demand, oil production,
pipelines and fuel shipping.

 

BP and Shell's trading groups took advantage of last year's market
volatility to generate enormous trading profits, buying oil as it fell below
$20 a barrel last spring. They sold it at higher prices for future delivery,
posting multibillion-dollar profits for the year. read more

 

But Exxon pulled back trading as the market dropped and sought to preserve
its capital to sustain its shareholder dividend while rivals cut their
payouts.

 

Exxon systematically avoided risk by pulling most of the capital needed for
speculative trades, subjecting most trades to high-level management review,
and limiting some traders to working only with longtime Exxon customers.

 

It later laid off some staff and offered early retirement packages to
others, Reuters reported. Exxon does not separately report the performance
of its trading unit. read more

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Bid of $28 million wins a rocket trip to space with Bezos

A seat on a spaceship ride with billionaire Jeff Bezos went for $28 million
during a live auction on Saturday, concluding the month-long bidding process
for the sightseeing trip on the Blue Origin's maiden voyage next month.

 

Within four minutes of the open of Saturday's live phone auction, bids
reached beyond $20 million. The bidding closed seven minutes after the
auction began. The identity of the winner - presumably an ultra-wealthy
space aficionado - was not immediately disclosed.

 

The July 20 launch of Blue Origin's New Shepard booster from West Texas
would be a landmark moment as U.S. firms strive toward a new era of private
commercial space travel.

 

Blue Origin's founder and Amazon.com Inc (AMZN.O) executive Bezos, the
world's wealthiest man and a lifelong space enthusiast, has been racing
against fellow aspiring billionaire aeronauts Richard Branson and Elon Musk
to be the first of the three to travel beyond Earth's atmosphere.

 

"To see the earth from space, changes you. It changes your relationship with
this planet, with humanity," Bezos said in a video before the final bidding
took place, adding that his brother Mark will join him on the trip.

 

As the month-long bidding process leading up to the live auction closed on
Thursday, the winning figure stood at $4.8 million, fueled by entries from
more than 6,000 people from at least 143 countries, Blue Origin said.

 

"Putting the world's richest man and one of the most recognized figures in
business into space is a massive advertisement for space as a domain for
exploration, industrialization and investment," Morgan Stanley analyst Adam
Jonas told clients earlier this month.

 

While the funds raised from the event are earmarked for charity, Blue Origin
is hoping to galvanize enthusiasm for its nascent suborbital tourism
business.

 

However, Branson, who founded Virgin Galactic Holdings Inc (SPCE.N), may
attempt to steal Bezos' thunder by joining a possible test flight to the
edge of space over the July 4 weekend aboard Virgin's VSS Unity spaceplane,
one person familiar with the matter said.

 

The race is fueled by optimism that space travel will become mainstream as
nascent technology is proven and costs fall, fueling what UBS estimates
could be a $3 billion annual tourism market by 2030.

 

Blue Origin and Virgin Galactic, as well as Musk's SpaceX, have also
discussed using their rockets to link far-flung global cities. UBS says that
long-haul travel market could be worth more than $20 billion, though several
barriers such as air-safety certification could derail the plans.

 

Blue Origin has not divulged its pricing strategy for future trips.

 

Reuters reported in 2018 that Blue Origin was planning to charge passengers
at least $200,000 for the ride, based on a market study and other
considerations, though its thinking may have changed.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

UK PM stands firm on post-Brexit trade, calls for pragmatism

British Prime Minister Boris Johnson stood firm in his position on
post-Brexit trade with Northern Ireland in talks with French, German and
European Union leaders on Saturday, urging "pragmatism and compromise" to
find a solution.

 

His spokesman told reporters other issues were raised in the talks with the
leaders and rejected the idea that President Emmanuel Macron had demanded
Britain stick to its divorce deal with the EU if it wanted a reset in
relations with France.

 

Johnson, who is hosting a meeting of the G7 - the world's most advanced
economies - in southwestern England this weekend, is keen to downplay a row
with the EU over their divorce agreement and put the focus on global issues.

 

But the spokesman said the so-called Northern Ireland protocol, part of the
Brexit deal which covers trade with the British province, had been raised in
talks with Macron, German Chancellor Angela Merkel and EU leaders on
Saturday.

 

"It's important to stress again, with Macron and Merkel a number of issues
were raised ... The PM (prime minister) in all cases (expressed) confidence
in the UK's position as regards to the Northern Ireland protocol and the
desire for pragmatism and compromise on all sides," the spokesman said.

 

Asked about Macron's proposal for a reset in relations if Britain showed it
would abide by the Brexit deal it signed, he added: "That's not how I would
characterise the meeting this morning. The prime minister and President
Macron agreed on the need to deepen the bilateral relationship between the
UK and France ... there was no dependence placed on that linked to the
protocol."

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Bitcoin law is only latest head-turner by El Salvador's 'millennial'
president

The young president of small Central American nation El Salvador leapt to
worldwide fame this week after his country became the first in the world to
adopt bitcoin as legal tender, but Nayib Bukele is no stranger to
controversy.

 

Cryptocurrency fans across the globe celebrated when his bill was swiftly
approved by lawmakers on Wednesday, and when the 39-year-old leader followed
up with a plan to mine energy from volcanoes to power the massive data
centers needed to mint the digital currency. read more

 

The move did not escape scrutiny. The International Monetary Fund quickly
flagged economic and legal risks to the unprecedented use of bitcoin in the
small economy.

 

>From firing officials via Twitter to entering Congress with heavily armed
soldiers, Bukele has tended to ruffle establishment feathers since he became
president in 2019.

 

He swept congressional and local elections in February and enjoys an
approval rating of over 90% despite the economy shrinking by 8% last year.
His alliance won a historic supermajority, crushing the two parties that had
dominated Salvadoran politics for 30 years.

 

Just weeks before adopting bitcoin brought him a new international
spotlight, Bukele fell out with the Biden administration after the new
Congress summarily removed the attorney general and top judges from office.

 

He says all his actions are constitutional and backed by popular mandate.

 

The top prosecutor had been investigating government officials. Bukele also
closed an anticorruption office he himself had opened.

 

Bukele, who calls himself the "coolest president in the world," recently
launched an international surf competition in the country wearing a
backwards baseball cap and flanked by a military officer.

 

His achievements include reducing murder rates in a country that has long
grappled with deadly gang violence.

 

Despite his youth, Bukele is no political neophyte.

 

When he worked in his father's advertising agency early in his career, his
client was the Farabundo Marti National Liberation Front (FMLN), the leftist
party then in power.

 

He joined the party and in 2012 became mayor of Nuevo Cuscatlan, a
coffee-growing town near San Salvador. Far from the media spotlight and with
few resources, he publicized his work on social media. His reputation for
good management helped him garner the support to win office as mayor of the
capital in 2015.

 

In San Salvador, he gained prominence for his social and cultural focus and
for donating his salary to scholarships. But two years after taking office,
the FMLN expelled him, saying he had sowed division, violated party statutes
and attacked a trustee with an apple during a council session.

 

He has denied the accusations.

 

DECISIVE

 

Bukele joined forces with the right-wing Gran Alianza por la Unidad Nacional
(GANA) in his campaign for the presidency, which was driven by social media.
He has founded a party called New Ideas.

 

The youngest president in the Americas took office promising to end
corruption. He was himself investigated by the Attorney General's office for
money laundering, fraud and tax evasion during his terms as mayor. He has
denied the allegations.

 

The rise of his siblings and cousins to public posts or behind-the-scenes
advisory roles has also led to complaints of nepotism, which he has denied.

 

The international community did not pay much attention until the president
arrived in Congress early last year to request approval of a $109 million
loan to fight crime - accompanied by soldiers in full battle uniform.

 

"If I were a dictator or someone who does not respect democracy, I would
have taken control of the entire government tonight," Bukele told Spanish
newspaper El Pais.

 

During the coronavirus pandemic, Bukele enacted a series of health and
economic measures to alleviate the crisis, but ignored Supreme Court rulings
against his lockdown measures and has faced rights complaints.

 

"He uses the press and social media to threaten, intimidate and persecute
people who could be adversaries," said Jose Miguel Vivanco, Americas
director for Human Rights Watch.

 

Still, Salvadorans fed up with decades of corruption and ineffectiveness
have admired Bukele's confident, decisive style including a penchant for
using Twitter to give orders to ministers.

 

"Nayib does an excellent job, we have never had someone who cared about
people's well-being," said taxi driver Eduardo Samayoa, 36.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Bitcoin falls 5.71% To $35,210

Bitcoin dropped 5.71% to $35,210 at 0600 GMT on Saturday, losing $2,131.11
from its previous close.

 

Bitcoin, the world's biggest and best-known cryptocurrency, is down 45.7%
from its 2021 high of $64,895.22 on April 14.

 

Ether , the coin linked to the ethereum blockchain network, dropped 2.54 %
to $2,293.26 on Saturday, losing $59.84 from its previous close.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Amazon raises minimum pay in Germany to 12 euros per hour

Amazon will guarantee an entry-level wage at its German warehouses of 12
euros ($15) an hour, the company said on Friday in the face of a
long-running battle with a top labour union.

 

Germany is Amazon's biggest market after the United States, and the Verdi
union has been organising strikes at Amazon in the country since 2013 to
protest low pay and poor conditions.

 

The pay increase is effective from July and compares with entry-level pay as
low as 11.30 euros per hour for some locations, though pay exceeded 12 euros
in other locations.

 

Amazon's wages exceed Germany's current minimum wage of 9.50 euros per hour.
But workers have regularly gone on strike, such as last year to coincide
with the $1.6 trillion company's global "Prime Day" promotion event. They
were disgruntled that a coronavirus bonus had been scrapped.

 

A Verdi official said that the increase was the least that the company could
do after "earning a pretty penny in recent months" and that pay still fell
short of its demands for many employees.

 

Amazon - which saw net profit rise to $8.1 billion in the first quarter,
more than tripling from $2.5 billion the year earlier - has faced similar
criticism over conditions and pay throughout the globe.

 

A spokesperson for Amazon in Germany said all employees would be getting a
raise, and Amazon said in a statement that further increases were scheduled
for the future.

 

($1 = 0.8254 euros)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

HK bankers and lawyers win right to apply for access to corporate registry

Hong Kong bankers and lawyers will be able to search the city's companies
registry under proposed exemptions to plans to tighten public access to the
database, Secretary for Financial Services Christopher Hui said on Saturday.

 

Business and governance experts have criticised a government plan to
restrict access to the personal information of company directors, outlined
this year, saying it will reduce transparency in the city's corporate
sector.

 

Dealmakers working through the due diligence phase of corporate transactions
regularly consult the database to research and verify the history and
identities of executives and directors.

 

Hui told a RTHK Radio programme on Saturday that lawyers, bankers and
accountants could now apply to the company registry to gain access to
documents for work purposes.

 

"But the premise is that they have to be really doing relevant checks and
work, because we need to strike a balance and protect privacy," Hui was
quoted as saying on the RTHK website.

 

"For example, lawyers, accountants and banks have to be doing the searches
for know-your-customer checks or work related to compliance and anti
money-laundering."

 

The proposed exemptions were confirmed to Reuters by Hui’s spokeswoman.

 

Changes to the registry announced earlier included a first phase which gave
companies an immediate option to withhold information about directors, such
as their addresses and identification or passport numbers.

 

A second phase would withhold all documents containing such information from
public view.

 

The Hong Kong government had argued the reforms were needed to protect
privacy.

 

Information on the data base is also commonly used to trace cross-party and
cross-company ownership structures that feature in Hong Kong’s sometimes
opaque corporate system.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

White House says G7 leaders will endorse proposed 15% global minimum
corporate tax

G7 leaders meeting in Britain will endorse U.S. President Joe Biden's
proposal for global minimum tax of at least 15% on corporations, White House
national security adviser Jake Sullivan said on Twitter on Friday.

 

The U.S. Treasury in May proposed a global minimum corporate tax of at least
15% to try to end a downward spiral of corporate tax rates.

 

"America is rallying the world to make big multinational corporations pay
their fair share so we can invest in our middle class at home," Sullivan
tweeted.

 

By supporting the move, major economies are aiming to discourage
multinationals from shifting profits - and tax revenues - to low-tax
countries regardless of where their sales are made.

 

Current global tax rules date back to the 1920s and struggle with
multinational tech giants that sell services remotely and attribute much of
their profits to intellectual property held in low-tax jurisdictions.

 

U.S. tech giants such as Facebook (FB.O) and Amazon (AMZN.O) could benefit
from the agreement to create a global minimum 15% corporate tax rate if the
final deal also scraps increasingly popular digital services taxes,
according to industry lobbyists. https://reut.rs/359z1u1

 

The decision had been expected after G7 finance officials backed a tax rate
of at least 15% during a meeting on June 5. The U.S. Treasury has said the
G7's endorsement will provide momentum for advancing negotiations towards a
broader G20 finance meeting in July in Italy. read more

 

U.S. Treasury Secretary Janet Yellen and her counterparts from Germany,
Indonesia, Mexico, and South Africa backed the move in a column published
Wednesday by the Washington Post.

 

They said they were confident that the global minimum tax rate could
ultimately be pushed higher than 15%, citing "the ambition of the
discussions thus far."

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Tanzania: Budget 2021 Sets Optimistic Tone

Economists and experts from both public and private sectors said yesterday
that the 2021/22 national budget is growth-oriented and encourages investors
to open up businesses in the country.

 

Finance and Planning Minister Dr Mwigulu Nchemba on Thursday tabled in
Parliament a 36.33tri/- budget for the coming financial year, the first
Budget of the sixth phase government under President Samia Suluhu Hassan.

 

Experts lauded the Budget's focus on the fiscal regime, saying the proposed
changes are indicative of the government's openness and commitment to deal
with investor concerns.

The PricewaterhouseCoopers (PwC) said there are all reasons to be optimistic
due to a "very real and meaningful ongoing engagement" between the public
and private sector.

 

"There is every reason to be optimistic that all parties are committed to a
win-win scenario. Certainly the mood of the moment is one of optimism as
regards future prospects," PwC said.

 

The firm said the 2021/22 budget tone is much more medium and long term,
with this budget being the first annual plan in the implementation of the
new Five-Year Development Plan 2021-2026 (FYDP III).

 

PwC said that the initiatives taken by the government to modernise
agriculture, which is a large part of the economy, and to drive further
digitisation of the economy will be key. The PwC also lauded the proposal to
remove the 100 per cent penalty for a transfer pricing adjustment.

 

"The removal of this penalty is a positive step as the penalty was
disproportionate albeit rarely enforced. In April, President Samia ordered
sweeping reforms in the investment sector, as part of the government's grand
plan to restore investors' trust in the country.

She called on the Tanzania Investment Centre (TIC) to come up with One-Stop
Centre, to coordinate investors' needs under one roof to clear perception
among foreign investors that the country is unpredictable.

 

Economist-cum-Investment Banker, Dr Hildebrand Shayo said Tanzanians once
again are beginning to understand what needs to be done to not only provide
relief to its people, but also to accelerate economic growth.

 

Dr Shayo said the budget, however, needs to explore more new sustainable
sources "to guarantee our government sizable and steady revenue."

 

"The challenge I foresee in the implementation of the proposed budget is
whether the new tax proposed increase would make sense at a time let say
fuel price is up as the world economy starts to open up," Dr Shayo said.

"It is my expectation our honourable members of the parliament would jointly
help Mwigulu Nchemba's presentation with options that would open up more
news avenues," he added.

 

Vertex International Securities' Manager of Advisory and Capital Markets Mr
Ahmed Nganya said the "budget will boost FDIs and DFPs as the approval
process is shortened."

 

In the new budget, the government has also proposed to decrease the
contribution rate to the Workers Compensation Fund (WFC) from 1.0 per cent
to 0.6 per cent for the private sector.

 

PwC said the change will provide relief to the private sector employers by
reducing the burden of their contributions to the Fund, expressing optimism
that the move will improve the business environment in the country for
existing and upcoming investors.

 

PwC said the budget targets look ambitious, particularly, a tax revenue
budget 9.1 per cent higher than the 2020/21 budget, and 20.4 per cent than
the 2020/21 forecast.

 

"Ultimately, tax increases will need to be driven by "growing the pie" -and
indeed the real GDP growth rate is projected to increase to 5.6 in 2021,"
PwC said.

 

Moreover, the Tanzania Chamber of Commerce Industries and Agriculture
(TCCIA) said the proposed national budget has good gestures of creating a
competitive economy through employing many people and boosting the economy.

 

TCCIA president Mr Paul Koyi said the budget will boost agriculture related
activities and support the country's economic growth.

 

"Waiving tax on cold rooms will see flowers and vegetable producers
increasing their production. Such products will also be exported at
competitive prices and win the market," said Mr Koyi.

 

Mr Koyi also hailed the commitment expressed by the government in carrying
on with construction of strategic projects.

 

He said implementation of the projects will see the private sector growing
steadily as local content policy adopted in 2018 calls for involvement of
local companies in supplying services to such projects.

 

Tabling the budget on Thursday, Finance and Planning Minister Dr Mwigulu
Nchemba said during the next fiscal year, the government would focus on
among other things, improve business environment by reviewing policies, laws
and various regulations in order to attract private sector investments and
increase employment opportunities.

 

He said the government would also keep improving tax collection and
administration system s so as to simplify tax payments and widening the tax
base; and continue strengthening Parastatal operations to operate
profitably, pay dividends and appropriate contribution to the
Government.-Daily News.

 

 

 

Nigeria: Buhari - Insecurity, No. Infrastructure, Yes

Is a critic oathed to only hunt for faults? Should he be impervious to hope,
optimism and positivity or should he be amenable to fairness, truth and
sanguinity - even if the facts are not in harmony with his public posture?
It is customary here once you are branded a "critic" of the government you
are expected to only breathe fire like a dragon - "see no good, speak no
good; - just attack and attack".

 

This is the fallout out of militarised socialisation - a hangover of
military-era opposition. During Nigeria's military rule, scorched-earth
activism/criticism was the definitive approach to the government and rightly
so. Down with the Kaiser! If you betray any emotion for the Kaiser, then you
are a traitor who must be hanged "comrade-style".

I used to be that guerrilla critic; always hungry for an attack. And truly
so, there were always reasons - good reasons. But I realised that if you
prime yourself for complaints and fault-finding, you will always have
reasons. You only see what you want to see. This does not vitiate the very
important task of holding the government to account. No!

 

Insecurity remains a detraction to the achievements of the Buhari
administration. While most of us agree that the performance of the
government on security has not been impressive, very few may want to
acknowledge the fact that President Buhari has made appreciable gains on
infrastructure.

 

The Buhari administration has done well on infrastructure. It is a leap from
where we used to be. We can agree that security remains a challenge but
still acknowledge the good outcomes when we see them. At a time Nigeria was
fortuned by favourable crude oil prices - in the past administration - funds
for infrastructure were either diverted or frittered away. Contracts were
awarded as a meal for political cronies. I am aware that the contract for a
famous road in Abuja was awarded without a design - but funds were paid to
the contractor who happens to be a cousin of the former president. That road
was abandoned afterwards.

Let me get down to brass tacks. On rail, the 157km Lagos-Ibadan
standard-gauge rail was inaugurated Thursday. The benefits of this
infrastructure are immense. The project is a relief for those who ply the
tortuous Lagos-Ibadan road. The 327km Itakpe-Warri standard-gauge rail was
completed and inaugurated 33 years after construction began. Abuja light
rail was completed in 2018. Financing negotiations for Ibadan-Kano
standard-gauge rail project are also in progress.

 

Some road projects have been completed and more are in progress. Also, more
than N360 billion worth of Sukuk Bonds was raised in 2017 for many crucial
road projects across all the six geopolitical zones. New terminals for
international airports in Lagos, Abuja, Kano and Port Harcourt were
completed. The construction of new runways for Abuja and Enugu international
airports was also completed.

Yet it appears insecurity is eclipsing the achievements of the Buhari
administration in this area. The basic responsibility of any government is
to protect lives and property. We can only ride on the train and use the
roads if we are alive. In fact, road trips have become an attempt at
self-murder. The roads are gravely unsafe. Security comes first in the
hierarchy of needs. It is the nucleus.

 

The Buhari administration must do well to address insecurity - for its own
reckoning. Any achievement it records in other sectors will be obviated and
dampened by daily episodes of killings and kidnappings.

 

The administration will be cheered and applauded by more Nigerians for its
achievements when it saves Nigeria from the grim reaper rampaging everywhere
in the country.-This Day.

 

 

 

Tanzania: Tz Gets Kudos From AfDB

AFRICAN Development Bank (AfDB) has heaped praise on Tanzania's strong
economic performance, pledging the country more funding support for new and
ongoing development projects.

 

The AfDB, one of the biggest financiers of development projects in the East
African nation, said Tanzania meets the criteria for receiving development
financial support.

 

AfBD President Dr Adesina Akinumwi made the commitment during a phone call
with President Samia Suluhu Hassan from AfDB headquarters in Abidjan, Côte
d'Ivoire. He said the bank has set aside 5bn US dollars (about 11.6tri/-)
for supporting women on the continent and asked Tanzania to host the next
Women's Economic Empowerment Conference.

 

President Samia accepted Dr Akinumwi's request, said a statement released by
the State House Directorate of Communications.

 

During the talks, President Samia and Dr Akinumwi also discussed the
relationship between Tanzania and AfDB, which has been bankrolling a number
of development projects in the country.

 

The AfDB boss pledged that the bank would sponsor Tanzania to establish
entrepreneurs' banks that will be lending money to youths graduating from
vocational training.

 

"This would play a part in helping youth venture into self-employment for
them to generate personal income," Dr Akinumwi said.

 

The AfDB president also invited President Samia to attend the investment
forum that is expected to bring together potential investors for the sake of
generating a big number of investments.

 

Earlier, Dr Akinumwi extended his condolences to President Samia and the
people of Tanzania for the loss of the former President, the late John
Magufuli. He commended President Samia for being sworn in as the Head of
State.

 

He was optimistic that President Samia would implement the ongoing strategic
projects and take the country to the next level.

 

Dr Akinumwi pledged to bring the bank's experts to the country to meet with
Tanzanian experts for reviewing projects funded by the bank and discuss new
opportunities leading to new projects.

 

President Samia acknowledged AfDB's contribution in financing a large number
of development projects which are being executed under the National Second
Five-Year Development Plan, pledging continued cordial relationship with the
bank.

 

The President also expressed her satisfaction over AfDB's support to youths,
saying the move will enable young graduates to engage in agriculture and
other related productive activities.

 

The Head of State also used the opportunity to congratulate Dr Adesina for
being re-appointed for the second term in office.-Daily News.

 

 

 


 


 


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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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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