Major International Business Headlines Brief::: 20 June 2021

[Bulls n Bears]

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Major International Business Headlines Brief::: 20 June 2021

 


 

 


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ü  Wall St Week Ahead: Fed shift causes rally in value stocks to wobble

ü  UK's Morrisons rejects $7.6 bln takeover proposal from CD&R

ü  EXCLUSIVE Fed’s Kashkari opposed to rate hikes at least through 2023

ü  Investors brace for annual Russell index rebalancing with pandemic
imprint

ü  Porsche to set up joint venture with German battery maker

ü  Mexico accepts U.S. request to probe Tridonex autoparts plant for labor
abuses

ü  Chevron returning offshore workers, restarts output halted by U.S. storm

ü  Nigeria: 70% of Nigerian Businesses Not Aware of Privacy Laws - Study

ü  Nigeria: Buhari Tells MTN to Reduce Tarrifs, Provide Quality Service to
Nigerians

ü  Nigeria: Osinbajo Tasks Corporate Organisations on Accountability

ü  South Africa: Small Towns Are Collapsing Across South Africa. How It's
Starting to Affect Farming

ü  Kenya Power Hands MPs Secret Contracts With Producers

ü  Nigeria: IMF Picks Holes in Nigeria's Economic Recovery Reports

ü  Uganda: How Uganda Stands to Benefit From DRC Roads

ü  Mozambique: Cement Companies Wail Against Competition

ü  Namibia: Date Set for Hearing to Combine Fishrot Cases

ü  Airlines, holiday companies ramp up pressure on Britain to ease travel
rules

ü  Tanzania: World Bank Approves U.S.$292 Million Funding for Infrastructure
Projects in Zanzibar

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Wall St Week Ahead: Fed shift causes rally in value stocks to wobble

(Reuters) - The Federal Reserve’s hawkish shift is forcing investors to
reevaluate the rally in so-called value stocks, which have taken a hit in
recent days after ripping higher for most of the year.

 

Shares of banks, energy firms and other companies that tend to be sensitive
to the economy’s fluctuations have tumbled following the Federal Reserve’s
meeting on Wednesday, when the central bank surprised investors by
anticipating two quarter-percentage-point rate increases in 2023 amid a
recent surge in inflation.

 

The Russell 1000 Value Stock Index (.RLV) is down 4% from its June peak,
though still up 13.2% this year. Its growth counterpart (.RLV) is up 9.1%
year-to-date.

 

One factor driving the move is the idea that a Fed more strongly focused on
preventing the economy from overheating may begin unwinding easy-money
policies sooner than previously expected. On Friday, St. Louis Federal
Reserve President James Bullard said the central bank’s shift was a
“natural” response to economic growth and inflation moving quicker than
expected, bolstering that view.

 

“Value stocks had gotten ahead of themselves, particularly in energy and
financials, and the folks that are caught offsides are starting to unwind
those trades,” said Jamie Cox, managing partner at Harris Financial Group.

 

The post-Fed meeting slide in value has been accompanied by a retreat in
some commodity prices, a surge in the dollar and a rally in U.S. government
bonds that dragged down yields on the benchmark U.S. Treasury to around
1.44% on Friday afternoon. read more

 

Investors will be keeping a close eye on next week’s economic data for clues
on whether the recent surge in inflation -- which saw consumer prices
accelerate at their fastest pace in 12 years last month -- will persist.

 

New home sales and mortgage applications are due out June 23, while May
consumer spending numbers are expected on June 25.

 

A Wall Street sign outside the New York Stock Exchange in the Manhattan
borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo
Allegri

Investors piled into value stocks in the latter half of 2020, as signs of
breakthroughs in vaccines against COVID-19 bolstered the case for a powerful
economic rebound in 2021. Value stocks have outperformed growth stocks by
nearly 7 percentage points since the start of November 2020, bucking a trend
that saw technology and other growth sectors regularly outshine value over
the last decade.

 

An unwinding of the heavy positioning in value shares could exacerbate the
recent slide. Mutual funds are overweight value names to a larger degree
than any time in the last eight years, according to a Goldman Sachs report
published on June 9.

 

Some big-name investors such as Cathie Wood, whose ARK Innovation ETF was
the top-performing U.S. equity fund last year, have suggested that growth
stocks will resume their market outperformance as investors rotate away from
value sectors such as energy that are up 38.5% since the start of the year.
L2N2NQ273 Wood’s flagship ETF is down 4.8% year-to-date.

 

Others, however, believe the recent wobble in value stocks is a pause,
rather than a turning point.

 

Cyclical companies remain the least over-valued in the U.S. stock market,
according to Jonathan Golub, chief U.S. equity strategist at Credit Suisse.
High sales-growth companies are trading at valuations nearly double their
10-year averages, while cyclical companies are trading at valuations
approximately 40% more than their historical levels, he wrote in a research
note.

 

The prospect of rising interest rates should also benefit higher quality
value stock names that held up better in last year's downturn but have
lagged during the recovery, said John Mowrey, chief investment officer at
NFJ Investment Group.

 

He has been increasing his positions in utility and consumer staples stocks
that have underperformed value stocks as a whole, betting that they will
increase their dividend payouts, which would make them more attractive even
if Treasury yields eventually rise.

 

Among his holdings are consumer companies Church & Dwight Co (CHD.N), which
is down 4% for the year to date, and McCormick & Company Inc (MKC.N), which
is down 9.7% for the year to date.

 

“The idea of dividend growth has been largely sidelined because we’ve all
been enjoying stock appreciation,” he said. “We think this will be the next
leg of the value stock rally.”

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

UK's Morrisons rejects $7.6 bln takeover proposal from CD&R

(Reuters) - British supermarket group Morrisons (MRW.L) has rejected a
proposed 5.52 billion pound ($7.62 billion) cash offer from U.S. private
equity firm Clayton, Dubilier & Rice (CD&R), saying it is far too low.

 

Britain's fourth largest grocer by sales after Tesco (TSCO.L), Sainsbury's
(SBRY.L) and Asda, said it received the "unsolicited, highly conditional
non-binding" proposal of 230 pence a share on Monday.

 

The board of Bradford, northern England-based Morrisons rejected the
proposal on Thursday.

 

"The board of Morrisons evaluated the conditional proposal together with its
financial adviser, Rothschild & Co, and unanimously concluded that the
conditional proposal significantly undervalued Morrisons and its future
prospects," the group said in a statement on Saturday.

 

Shares in Morrisons, down 5.5% over the last year, closed on Friday at 182
pence, valuing the group at 4.33 billion pounds.

 

Morrisons said CD&R's proposal provided for Morrisons shareholders to also
still receive a final ordinary dividend of 5.11 pence per share announced on
March 11.

 

CD&R had earlier on Saturday said it was considering a possible cash offer
for Morrisons.

 

Under British takeover rules CD&R has until July 17 to announce a firm
intention to make an offer.

 

APPETITE FOR SUPERMARKETS

 

CD&R's approach underlines private equity's growing appetite for UK
supermarket assets, attracted by their cash generation and freehold assets.

 

In February, Zuber and Mohsin Issa and private equity firm TDR Capital
purchased a majority stake in Asda from Walmart (WMT.N) in a deal valuing
the UK supermarket group at 6.8 billion pounds. read more

 

That deal followed Sainsbury's failure to take over Asda after an agreed
deal was blocked by Britain's competition regulator in 2019.

 

Morrisons has a partnership agreement with Amazon (AMZN.O) and there has
been speculation it could emerge as a possible bidder.

 

A formal bid from CD&R could involve Terry Leahy, the former Tesco CEO who
is a senior adviser to CD&R.

 

When at Tesco, Leahy was the boss of Andrew Higginson and David Potts, who
are now Morrisons' chairman and CEO respectively.

 

Morrisons, unique among British supermarket groups in making over half of
the fresh food it sells, trades from about 500 stores and has 118,000 staff,
making it one of the country's biggest private sector employers.

 

In March, the group reported a halving of annual profit due largely to costs
incurred during the COVID-19 pandemic, but forecast a bounce back in the
2021-22 year. read more

 

Earlier this month, Morrisons was rebuked by investors over executive pay,
with more than 70% of votes cast at its annual shareholders' meeting
rejecting its pay report. read more

 

($1 = 0.7242 pounds)-The Thomson Reuters Trust Principles.

 

 

 

EXCLUSIVE Fed’s Kashkari opposed to rate hikes at least through 2023

(Reuters) - Minneapolis Federal Reserve President Neel Kashkari said on
Friday he wants to keep the U.S. central bank’s benchmark short-term
interest rate near zero at least through the end of 2023 to allow the labor
market to return to its pre-pandemic strength.

 

"The vast majority of Americans want to work, and I am not ready to write
them off – and I want to give them the chance to work," Kashkari told
Reuters in his first public comments since the end of the Fed's policy
meeting earlier this week. "As long as inflation expectations remain
anchored ... let's be patient and let’s really achieve maximum employment."

 

Kashkari’s remarks show he’s in a decided minority in an increasingly
hawkish Fed, which on Wednesday wrapped up a two-day meeting with an
unexpected result: with inflation on the rise, most Fed policymakers now see
a case for starting interest rate hikes sooner.

 

Just three months earlier the clear majority of policymakers favored no
change to the current level of borrowing costs; on Wednesday, the central
bank's quarterly summary of economic projections (SEP) showed 11 of 18 Fed
policymakers penciling in at least two quarter-percentage-point rate
increases by the end of 2023.

 

"I still have no hikes in the SEP forecast horizon because I think it’s
going to take time for us really to really achieve maximum employment, and I
do believe that these higher inflation readings are going to be transitory,"
Kashkari said in an interview with Reuters.

 

In the interview, Kashkari said he believes higher prices are being driven
by a reopening economy and will subside as supply constraints recede.

 

With employment still short of its pre-pandemic level by at least 7 million
jobs, he said, "the labor market is still in a deep hole," adding that he
believes full employment means a return to at least pre-pandemic labor
market strength, if not beyond.

 

'VERY ORDERLY WAY'

 

Kashkari, however, showed little discomfort with the Fed's decision this
week to open a discussion on when and how to reduce its $120 billion in
monthly purchases of Treasuries and mortgage-backed securities (MBS), the
first step in moving away from the extraordinary support for the economy
that Kashkari feels is still needed.

 

"I think that (Fed Chair Jerome Powell) is leading us on a path in a very
orderly way to have the discussion and look at the data and to make these
adjustments prudently," he said.

 

Once the Fed does determine it's time to taper its asset-buying program,
Kashkari said, he expects to follow the same blueprint as in 2014, when the
Fed trimmed its purchases of MBS and Treasuries at a steady, predictable
pace; reducing MBS purchases more quickly, as some have proposed, would have
only a modest cooling effect on the hot housing market, he said.

 

But, at least for Kashkari, it will probably take beyond September to have
enough data to make a judgment on whether there's been sufficient labor
market progress to merit any change.

 

By the fall, he said, schools will be open again, the risk of COVID-19
infection will hopefully have receded, and special pandemic unemployment
benefits will have run out. While that should set the stage for more
Americans to return to the workforce, it could take longer to see a
difference in wages and labor force participation, both critical gauges for
the strength of the labor market.

 

His assessment of the labor market, he said, will color his evaluation of
inflation data.

 

Should there be less improvement in the labor supply than he expects,
Kashkari said, he may need to reevaluate his assessment of full employment
and, therefore, of how close the labor market is to reaching that goal, and
whether the rise in inflation will stop short of becoming persistent.

 

"The bar for me is very high to reach such a conclusion," he said.

 

At least some of Kashkari's colleagues may already be there, though, if the
"dot plot" of Fed rate-hike expectations, published as part of the SEP, are
any guide. They show at least seven policymakers expect a liftoff in rates
next year, a number that includes St. Louis Fed President James Bullard.

 

"It was meant to be a tool providing dovish forward guidance," Kashkari said
of the "dot plot."

 

“It ended up being a tool that provided hawkish forward guidance ... I
continue to think we ought to just kill the ‘dot plot.’”-The Thomson Reuters
Trust Principles.

 

 

 

Investors brace for annual Russell index rebalancing with pandemic imprint

(Reuters) - Market participants are girding for probably the biggest trading
event of the year next Friday, as FTSE Russell stages the final
reconstitution of its indexes, and trillions of dollars in investments could
be influenced by the event that will reflect a wild trading year marked by
the pandemic and the “meme” stock craze.

 

On the last Friday every June, FTSE Russell refreshes the components in its
range of indexes, such as the Russell 2000 (.RUT) index of small-cap stocks
and Russell 1000 (.RUI) index of large-cap names. Together they make up the
Russell 3000 (.RUA) index. There are also style indexes such as the Russell
1000 growth (.RLG) and Russell 2000 value (.RUJ).

 

It is often the heaviest trading volume day of the year, as investors and
fund managers scramble to buy or sell shares to dozens or even hundreds of
companies to reflect changes in indexes. Many this year will be watching
"meme stocks" like GameStop or AMC Entertainment whose value soared.
Companies that went public through mergers with a Specialty Purpose
Acquisition Company (SPAC) will also be on the radar.

 

As of the end of 2020, about $10.6 trillion in investor assets was
benchmarked to Russell's U.S. indexes, according to FTSE Russell.

 

While FTSE Russell has occasionally tweaked its rules for inclusion in its
indexes, such as allowing companies with multiple share classes to remain in
or be permitted for inclusion, this year's reconstitution has no methodology
changes.

 

"Our policy team obviously regularly talks to the market participants and
our committees and there were no new rules identified that were needed,"
said Catherine Yoshimoto, FTSE Russell Director of Product Management.

 

Market capitalization for the Russell 3000 index vaulted from $31.4 trillion
in 2020 to $47.7 trillion as of Russell's "rank day" on May 7, 2021.

 

Stock market volatility took the index on a wild ride in the past two years.
In early 2020, stocks sold off when the pandemic hit but then rebounded late
in the first quarter to remain about flat from the previous year. This year
the market cap for the index surged as stocks have rebounded along with
vaccine distribution and a reduction in pandemic-induced lockdowns.

 

"It’s more assets, more appreciation, you’ve got some stocks that have
gotten bigger weight changes so they are going to see more trading volume
because there is jumping around, so this is a bigger trade this year than it
has been in previous years" said Steve DeSanctis, equity strategist at
Jefferies in New York.

 

The market cap breakpoint Russell uses to determine inclusion in the
large-cap Russell 1000 or the small cap 2000 also increased to $5.2 billion
in 2021 from $3 billion in 2020.

 

Perhaps no group of stocks exemplified the pandemic trading environment more
than the so-called "meme stocks" such as GameStop (GME.N) and AMC
Entertainment (AMC.N).

 

Shares for those companies had languished and even been shorted by many
institutional investors due to poor fundamentals. They took off like a
rocket as retail investors using commission-free trading services looked for
places to invest government stimulus checks.

 

The market cap of AMC, for instance, stood at $4.3 billion on the May 7 rank
day, but has surged to over $30 billion by June 17, well above the top end
of the market cap band for the Russell 2000 index of $7.3 billion set by
Russell.

 

GameStop is expected to graduate to the Russell 1000 large cap index.
Managers who have chosen not to own those stocks prefer they stay within the
index so as not to disrupt their performance versus the benchmark.

 

"Where those stocks move will dictate a lot of active manager’s relative
performance over the following six, eight or 10 months after the
rebalancing," said Keith Buchanan, senior portfolio manager at Globalt in
Atlanta.

 

"I would rather have AMC in the benchmark because obviously since I don’t
own it I think it is overvalued." Therefore, if AMC falls, his investments
would look better against the benchmark.

 

Goldman Sachs expects 255 additions to the Russell 3000 and 295 deletions,
and expects 57 stocks will enter the Russell 1000, including 34 currently in
the Russell 2000. Goldman anticipated a total of 279 stock will enter the
small cap index, comprised of 232 new components and 47 being knocked down
from the large cap index.

 

A big portion of expected adds will be companies that went public through a
merger with a SPAC. Jefferies' DeSanctis estimates over 25% of additions to
the Russell 3000 are SPAC companies.

 

"It is the year of the SPAC, the year of the meme stock - and here they are
having ramifications on real money," said Ross Mayfield, investment
strategist at Baird in Louisville, Kentucky.

 

During the event every year, volume surges near the close, often resulting
in the biggest trading volume day of the year. The Nasdaq and New York Stock
Exchange have contingency plans for the event.

 

KBW analyst Melissa Roberts expects the bulk of passive fund trading related
to the reconstitution will occur in the last 15 minutes or so of the session
and estimates the net trade will total nearly $75 billion.

 

“Let’s face it, for the New York Stock Exchange - Russell reconstitution,
from a trading standpoint, is the greatest show on earth, that’s where it
all comes down,” said Gordon Charlop, a managing director at Rosenblatt
Securities in New York.-The Thomson Reuters Trust Principles.

 

 

 

Porsche to set up joint venture with German battery maker

(Reuters) - Volkswagen's (VOWG_p.DE) luxury sports car unit Porsche AG is
setting up a joint venture with Customcells to produce high-performance
batteries that will significantly reduce charging times, the company said on
Sunday.

 

The partnership with Customcells, a company in southern Germany specialising
in lithium-ion cells, will aim to produce car batteries with higher energy
density than prototypes used in Porsche's current electric cars, the company
said in a statement.

 

European carmakers are pushing to reduce their dependence on Asia for
batteries as they roll out all-electric models to meet stricter emissions
targets in the European Union.

 

In addition to cutting charging time, improving energy density will mean
reducing the amount of raw material needed in batteries to achieve the same
range. It will also cut battery production costs, making electric cars more
affordable.

 

Porsche said it will invest a high double-digit million euro sum in the
joint venture in which it will hold 80%.

 

The production facility aims to have a capacity of 100 kilowatt hours, which
will translate into about enough batteries for 1,000 cars a year.

 

Porsche Chief Executive Oliver Blume said in April the company wanted to
speed up its e-mobility drive with plans for a German factory in Tuebingen
to manufacture battery cells. At that time he did not say if Porsche would
seek a joint venture partner.

 

Customcells is based in Tuebingen.

 

Porsche's parent company Volkswagen has said it plans to build half a dozen
battery cell plants across Europe and expand infrastructure for charging
electric vehicles globally.-The Thomson Reuters Trust Principles.

 

 

 

Mexico accepts U.S. request to probe Tridonex autoparts plant for labor
abuses

(Reuters) - Mexican officials said on Saturday they would look into alleged
worker rights violations at the Tridonex autoparts factory in northern
Mexico, after the U.S. government requested a review under the terms of a
new trade pact.

 

The complaint from the U.S. Trade Representative's office (USTR) last week
marked the second time the United States has flagged potential labor abuses
in Mexico under the United States-Mexico-Canada Agreement (USMCA), which
replaced NAFTA. read more

 

Mexican officials said they have accepted the U.S. request for a review of
Tridonex in the border city of Matamoros to determine if workers had the
right to freedom of association and collective bargaining.

 

"The Economy Ministry, in coordination with the Labor Ministry and other
involved parties, will review the case to determine with legal elements and
facts if there exists or not a denial of the referenced labor rights," the
ministries said in a statement.

 

Mexican authorities have until July 24 to submit their findings to U.S.
counterparts, the statement added.

 

Cardone Industries Inc, the Philadelphia-based parent company of Tridonex,
has said that the allegations are inaccurate and that it respects worker
rights.

 

General Motors Co (GM.N) has also come under scrutiny in Mexico after the
USTR in May filed a USMCA complaint against the company's pickup truck plant
in Guanajuato state over possible rights abuses during a union contract
vote.-The Thomson Reuters Trust Principles.

 

 

 

Chevron returning offshore workers, restarts output halted by U.S. storm

(Reuters) - Chevron Corp (CVX.N) said on Saturday it was returning offshore
workers who had been evacuated ahead of Tropical Storm Claudette from its
Gulf of Mexico production platforms.

 

Chevron said it was ramping up production at its Tahiti platform where
production had been halted by the storm. Other Chevron-operated facilities
in the Gulf are running at normal levels, it said in a notice on its
website.

 

Claudette made landfall in southeast Louisiana in the morning, disrupting
oil and gas production in the central Gulf of Mexico and bringing
tropical-storm force winds and heavy rain to parts of the Gulf Coast.

 

Earlier, the third-largest oil producer in the U.S. Gulf of Mexico had
withdrawn non-essential staff from three platforms and fully evacuated a
fourth.-The Thomson Reuters Trust Principles.

 

 

 

Nigeria: 70% of Nigerian Businesses Not Aware of Privacy Laws - Study

70 per cent of Nigerian businesses are unaware about privacy laws governing
their marketing activities, despite Nigeria Data Protection Regulation
(NDPR) being in effect since 2019, a study has revealed.

 

The study, conducted by WorldWideWorx and commissioned by global technology
company Zoho, also revealed that most business owners rely heavily on
third-party trackers and ad platforms.

 

Even though businesses are concerned about the privacy of customer's data in
the hands of third-party vendors, they are reliant on them for revenue
generation and gathering customer insights, says the study, adding that this
makes it harder for them to move away.

 

The study looked at 319 businesses across various industries and sizes.
Findings of the study revealed that 45 per cent of business owners said they
allow third-party trackers on their website, mostly for sharing content on
social media and gathering analytics on their website visitors.

 

There is also a heavy dependence on digital ad platforms, the study showed,
as findings showed that business owners believe that keyword search ads and
social media ads are quite effective for customer conversion. "In fact, 78
per cent businesses said the third-party ad platforms either help them meet
or are a primary factor in achieving their sales goals," it added.

 

Given this reliance on third-party vendors, it is no wonder then that, even
though 85 per cent of businesses express concern over the use of their
customer's data, they are largely either 'comfortable' or 'neither
comfortable nor uncomfortable' with the platforms, the study's findings
showed.

 

"Even the 18 per cent who are 'uncomfortable', stated that they cannot move
away from the platforms as they are crucial to their business or that it is
too complex to move away. Interestingly, 24 per cent businesses reported
that they do not completely understand how third-party trackers and ad
platforms utilise the collected customer information," it said.

 

When businesses choose to use a free tracker, they are paying for it with
their consumer's data, said regional manager for Africa, Zoho, Andrew
Bourne.

 

"At Zoho, we refer to this practice of third-party trackers collecting data
without user knowledge as adjunct surveillance. Despite that, presently,
Nigerian businesses turn a blind eye to this passive data collection by
trackers, most likely, because they are dependent on them for revenue.

 

However, consumers will eventually trust companies with transparent privacy
policies that protect their personal information. Businesses hoping to stay
relevant in the long term will need to either rethink their reliance on
third-party platforms or demand greater transparency and accountability from
them," Bourne added.

 

On NDPR, the study shows that 39 per cent of Nigerian businesses believe
that NDPR has had no effect, while 42 per cent said the regulatory body has
a positive effect. "36 per cent of the respondents said their biggest
concerns with the law are increased complexity while 34 per cent said the
increased cost of governance was their biggest concern," it stated

 

According to WorldWideWorx CEO, Arthur Goldstuck, the lack of awareness
about the law is largely because these regulations are not part of
business-critical activities like taxation and licensing.

 

Goldstuck said, 78 per cent of the businesses indicated that they have
well-documented policies for customer data protection. "This is likely
following fear of NDPR violation, which has made headlines in Nigeria. Even
so, only 60% are strictly applying them," said Goldstuck.-Leadership.

 

 

 

Nigeria: Buhari Tells MTN to Reduce Tarrifs, Provide Quality Service to
Nigerians

Abuja — President Muhammadu Buhari yesterday charged the MTN Group to make
its services affordable and in high quality to its Nigerian subscribers.

 

The President's charge came the same day Vice-President Yemi Osinbajo urged
corporate organisations operating in Nigeria, including the MTN, to ensure
there is accountability in the provision of services to customers and to pay
greater attention to the needs of the people.

 

Speaking yesterday at the State House, Abuja when he received in audience
members of the board of MTN Group led by its President and Chief Executive
Officer, Ralph Mupita, President Buhari said: "Nigeria is your most
lucrative market in Africa, Asia and the Middle East, as well as the source
of a third of the income of the entire MTN Group. As such, we urge you to
offer top-of-the-range and affordable service to Nigerians.

 

"As we seek to make broadband widely available and affordable, we urge MTN
to continue to support our efforts by expanding high quality connectivity to
Nigerians in unserved and underserved areas."

 

The President also called on the group to support the implementation of the
National Policy for the Promotion of Indigenous Content in the Nigerian
telecommunications sector.

 

"I recently unveiled and launched the National Policy for the Promotion of
Indigenous Content in the Nigerian telecommunications sector. I call on MTN
to support the implementation of this policy and train and engage more
Nigerians in your company.

 

"In particular, we would like you to continue to support our efforts by
improving the quality of service and enabling a downward price review of the
cost of data and other services, in view of your large market in Nigeria. We
also urge you to step up your Corporate Social Responsibility programmes and
support Research and Development that will enhance your services in
Nigeria."

 

He assured his visitors that his administration was doing everything
possible to make Nigeria investor-friendly by addressing identified
challenges:

 

"We are implementing a number of policies and programmes to ensure that
institutions like MTN have a conducive environment for doing business in
Nigeria. Our massive jump in the Global Ease of Doing Business Ranking is
proof that our efforts are yielding positive results.

 

"We have identified and addressed the key challenges that affected the
growth of the digital economy sector. One of such challenges was the high
Right of Way costs and another was the vandalism of critical national
infrastructure.

 

"I am happy to note that the Right of Way charges have now been pegged at a
maximum of N145/linear metre and I have given directives for the protection
of critical national infrastructure and this has addressed the issue of
vandalism of such infrastructure. Service providers should always appreciate
the effort of government and not undermine it."

 

President Buhari expressed his delight that the Information and
communications technology sector was doing very well despite the global
economic downturn.

 

He said: "The information and communications technology sector was the
fastest growing sector in both the fourth quarter of 2020 and the entire
year 2020, based on the report by the National Bureau of Statistics. The
sector's 14.70% double digit growth rate played a principal role in
supporting our country to exit the recession triggered by the COVID-19
pandemic.

 

"The growth rate of the sector exceeded four times the next fastest growing
sector of Q4 2020, which had a growth rate of 3.42%. This is truly
commendable."

 

Meanwhile, Osinbajo, delivered his message on Thursday when he received
members of the board of telecoms giant, MTN, led by the company's Group
President and CEO, Mr Ralph Mupita, on a courtesy visit to the Presidential
Villa.

 

He stated that it was critical for corporate organisations to show
commitment to improving services and to build confidence in the people.

 

While noting that there have been hiccups in the relationship, the VP
commended MTN for its contribution to the country, adding that the company
is clearly an important part of Nigeria's story.

 

According to him, "Corporate organisations should be more accountable in
their services, in the ownership structure, and also in paying attention to
the needs of the people. Companies that ensure this will experience
progress, as this is the right direction to go. Going forward, most
corporates will find that attaching greater importance to the people is the
way to go.

 

"For telecommunication firms like MTN, financial inclusion is crucial, so is
broadband connection in deepening access and will help to connect
hard-to-reach places, and to retail social welfare and services. The
company's investment was crucial when Nigeria needed to show that not only
is there a large population in the country, but that it is a large market.
The market was severely underestimated for a long time. So, MTN is an
important part of our story, we regard MTN as an important partner."

 

Speaking earlier, Mupita said that they want to deepen structure of
ownership in Nigeria.

 

While disclosing that the company wants to have the largest retail-based
shareholding in Nigeria, Mupita said they plan to sell another 14 per cent
to Nigerian individuals and institutions.

 

He added that MTN as a corporate citizen is responsible in all the countries
where it is represented.-This Day.

 

 

 

Nigeria: Osinbajo Tasks Corporate Organisations on Accountability

Vice President Yemi Osinbajo says ensuring accountability in the provision
of services to customers and prioritising the needs of the people should be
the driving force of corporate organisations in Nigeria.

 

Osinbajo's spokesman, Laolu Akande, in a statement on Friday in Abuja, said
that the vice president stated this when he received members of the board of
MTN, led by its Group President, Mr Ralph Mupita, at the Presidential Villa.

 

Osinbajo said that it was critical for corporate organisations to show
commitment to improving services and to build confidence in the people.

 

"Corporate organisations should be more accountable in their services, in
the ownership structure, and also in paying attention to the needs of the
people.

 

"Companies that ensure this will experience progress, as this is the right
direction to go.

 

"Going forward, most corporates organisations will find that attaching
greater importance to the people is the way to go."

 

He said that for telecommunication firms like MTN, financial inclusion and
broadband connection were crucial in deepening access and would help to
connect hard-to-reach places, and to retail social welfare and services.

 

The vice president commended MTN for its contribution to the country, adding
that the company was clearly an important part of Nigeria's story.

 

"The company's investment was crucial when Nigeria needed to show that not
only is there a large population in the country, but that it is a large
market.

 

"The market was severely underestimated for a long time.

 

"So, MTN is an important part of our story, we regard MTN as an important
partner," he said.

 

Earlier in his remarks, Mupita said that MTN wanted to deepen its structure
of ownership in Nigeria.

 

According to him, the firm will sell another 14 per cent to Nigerian
individuals and institutions.

 

He added that MTN as a corporate citizen was responsible in all the
countries where it was represented.

 

"We want to have the largest retail-based shareholding in Nigeria; we want
at least 2 million Nigerian shareholders, deepening our roots in Nigeria.

 

"Our vision is to drive digital solutions for Africa's progress, and in MTN,
we are building PAN-African leadership," Mupita said.

 

Other members of the MTN delegation included the Chairman, MTN Nigeria, Mr
Ernest Ndukwe and Group Chief Finance Officer, Mr Tsholofelo Molefe.

 

MTN Nigeria Chief Executive Officer, Mr Karl Toriola, and Chief Corporate
Services Officer, Mr Tobechukwu Okigbo were also in the
delegation.-Vanguard.

 

 

 

South Africa: Small Towns Are Collapsing Across South Africa. How It's
Starting to Affect Farming

Farming and agribusiness play a crucial role in sustaining the economies of
small towns and rural areas. There is a lot of evidence of this in the
economic literature and in the popular media. This dependency has its
inherent risks.

 

International literature tends to focus on the devastation of small towns in
times of drought or when farming lobby groups argue for particular policies.
In South Africa, a different pattern has emerged. This is when
municipalities fail to provide basic services to their communities and
businesses. These services include water and sanitation, electricity, roads
and technological infrastructure.

 

South Africa has a three-tier system of governance. National government sets
national economic development policy and drives the search for investment by
both domestic and international investors. Provincial government plays a big
role too in searching for investment and executing government's policies and
programmes. The most successful province has been the Western Cape, which
has achieved the status of the country's technology hub. But where the
investors are located within a province depends on municipalities,
specifically how well run they are.

 

South African municipalities are in deep trouble. For many years households
and residents have felt the impact. They have resorted increasingly to
mounting protests across the country. But lately, there is growing evidence
that governance and service delivery failures are also directly affecting
the functioning and efficiencies of farming and agribusinesses in small
towns.

 

A case in point is the recent decision by the food and beverages group
Clover to move its cheese production from Lichtenburg, a town in the North
West province of South Africa, to an existing plant outside Durban in
KwaZulu-Natal due to "ongoing poor service delivery".

 

Lichtenburg is part of the country's maize producing triangle. Three
provinces - Free State, Mpumalanga, North West - account for 84% of the
country's maize production, according to latest estimates of the 2020/21
season.

 

State of collapse

 

South Africa's finance minister, Tito Mboweni, recently painted a gloomy
picture of the state of municipalities in the country. There are about 278
municipalities in South Africa. Mboweni said that 163 municipalities were in
financial distress, 40 were battling to deliver basic services, and 102 had
adopted budgets for 2021/22 that they cannot fund.

 

A growing number are also failing to collect revenue from residents and
businesses for electricity, water and property taxes.

 

Mboweni added:

 

And, for the first time in our democracy, the national executive has been
ordered by a high court to constitutionally intervene in the affairs of a
municipality owing to a financial and service delivery failure.

 

Municipalities in rural areas and small towns are worst off. A recent study
by the Tshwane University of Technology researchers stated that

 

the level of service delivery in rural communities is less compared to urban
areas, and there is no sign of improvement.

 

Consequences

 

The multiplier effects of Clover's decision to relocate are likely to be
large. The closure of the firm in such a small town is likely to have a
number of negative spillover effects across the local economy.

 

The company, according to official statements from the government, provided
380 permanent jobs and 40 temporary jobs. It also employs 20 general workers
and 20 truck drivers and cleaners.

 

In addition, the plant gave farmers market access for their produce, and a
range of businesses bought and sold products from the company. The income
from these activities would have supported many other businesses in the
community.

 

Clover is not the first major company to decry poor municipal services.
There's the long running case of Astral Foods, a poultry producer that also
supplies animal feed, and the Lekwa Municipality. Astral has lost millions
of rands in production because of failures by the municipality in the
Mpumalanga province to provide its poultry plant with water and electricity.

 

These two cases illustrate how efficiency and economic sustainability of
agribusinesses depend on delivery of basic services. Without them, levels of
investment in the businesses will shrink in such towns. Importantly, this
may affect the sustainability of agribusinesses as some might incur more
costs as they try themselves to provide the services that were supposed to
be provided by local governments.

 

The farmers face a similar challenge, directly and indirectly. The
agribusiness provides a range of solutions and market access to local
farmers. If agribusinesses' sustainability is threatened, farmers suffer
too. More directly, poor roads, unreliable electricity supply and water
supply directly affect the profitability and sustainability of farming
operations.

 

Importantly, these are all entities that provide job opportunities to the
least skilled South Africans and indirectly sustain the communities around
small towns.

 

The way forward

 

President Cyril Ramaphosa set out an economic reform and recovery agenda for
the country in October 2020. In it he identified agriculture and
agro-processing (food security) as one of the drivers of economic growth and
job creation, especially in small towns.

 

But a vibrant agriculture and agribusiness won't develop if poor service
delivery by municipalities continues.

 

There are some basic practical interventions the government could make.
These include ensuring that a municipality has competent management,
financial officers, civil and electrical engineers, as well as competent
political leadership.

 

The Financial and Fiscal Commission, an independent constitutional advisory
body on financial fiscal matters in the country, recently argued
municipalities should look closely at their wage bills. This would ensure
that salaries didn't crowd out money for critical service delivery
functions. These include waste removal, waste management, sewerage systems,
roads and water provision.

 

These improvements need to happen simultaneously and not before or after
agriculture revitalisation, which is supported by the government's
Agricultural and Agro-processing Master Plans. These seek to expand and grow
South Africa's agriculture and agro-processing.

 

But a healthy farming sector rests on towns that are functional and that
have the basics in place.

 

This is a challenge that the South African government should face head-on.

 

Wandile Sihlobo, Visiting Research Fellow, Wits School of Governance,
University of the Witwatersrand

 

 

 

Kenya Power Hands MPs Secret Contracts With Producers

As MPs investigate the high costs of electricity, distributor Kenya Power
has yielded to pressure from lawmakers and provided them with copies of the
contracts it has with 18 independent power producers.

 

The documents were delivered to Parliament on Wednesday. Copies were also
handed over to the office of the Auditor-General for review.

 

The Auditor-General will prepare a report and present its findings to the
National Assembly's Public Investments Committee, chaired by Mvita MP
Abdulswamad Nassir.

 

Mr Nassir Thursday confirmed to the Nation that lawmakers had received
copies of the contracts and will wait for the auditors' report before
examining them more closely.

 

"Yes, the contracts have been brought but they have been accompanied by the
confidential note clause, and therefore we cannot make them public," he
said.

 

This comes as the Energy Committee, also looking into the cost of
electricity, is expected to meet next week with the Energy Cabinet secretary
and the registrar of companies.

 

Speaker Justin Muturi directed the committee to summon all directors of the
18 companies and the Energy CS to provide more information about the firms.

 

Appearing before Public Investments Committee on Tuesday, Kenya Power
Managing Director Bernard Ngugi told MPs that he would need a court order
and consent from the contractors to make the contracts public.

 

Mr Ngugi told MPs that Kenya Power buys power from producer plants at
negotiated prices depending on the plant's technologies, the generation
source and type.

 

He added that the generation type is in various forms based on whether the
plant is guaranteed by capacity or energy.-Nation.

 

 

 

Nigeria: IMF Picks Holes in Nigeria's Economic Recovery Reports

Despite some positive developments in the Nigeria's economy in recent months
the International Monetary Fund (IMF) has said that the economy has sunk
deeper than was the case before the COVID-19 pandemic.

 

A statement from the IMF headquarters in Washington DC, United States of
America, which was forwarded by the Country Office to the media, yesterday,
indicated that the staff of the global body arrived at this verdict
following virtual meetings with Nigerian authorities earlier this month.

 

The IMF team at the meetings which was led by Ms. Jesmin Rahman, however,
acknowledged that the economy has started to gradually recover from the
negative effects of the COVID-19 global pandemic.

 

The verdict stated: "Following sharp output contractions in the second and
third quarters, GDP growth turned positive in Q4 2020 and growth reached 0.5
percent (y/y) in Q1 2021, supported by agriculture and services sectors.
"Nevertheless, the employment level continues to fall dramatically and,
together with other socio-economic indicators, is far below pre-pandemic
levels. Inflation slightly decelerated in May but remained elevated at 17.9
percent, owing to high food price inflation.

 

"With the recovery in oil prices and remittance flows, the strong pressures
on the balance of payments have somewhat abated, although imports are
rebounding faster than exports and foreign investor appetite remains subdued
resulting in continued FX shortage.

 

"The incipient recovery in economic activity is projected to take root and
broaden among sectors, with GDP growth expected to reach 2.5 percent in
2021.

 

"Inflation is expected to remain elevated in 2021, but likely to decelerate
in the second half of the year to reach about 15.5 percent, following the
removal of border controls and the elimination of base effects from elevated
food price levels.

 

"Tax revenue collections are gradually recovering but, with fuel subsidies
resurfacing, additional spending for Covid-19 vaccines, and to address
security challenges, the fiscal deficit of the consolidated government is
expected to remain elevated at 5.5 percent of GDP.

 

"Downside risks to the near-term arise from further deterioration of
security conditions and the still uncertain course of the pandemic both
globally and in Nigeria."

 

IMF further raised concerns on the resurfacing of fuel subsidies in the
country.

 

Rahman stated: "The mission expressed its concern with the resurgence of
fuel subsidies. It reiterated the importance of introducing market-based
fuel pricing mechanism and the need to deploy well-targeted social support
to cushion any impact on the poor. The mission recommended stepping up
efforts to strengthen tax administration to mobilize additional revenues and
help address priority spending pressures.

 

"The mission urged the authorities to keep reliance on CBN overdrafts for
deficit financing within legal limits, while the government continues to
make efforts to strengthen budget planning and public finance management
practices to allow for flexible financing from domestic markets and better
integration of cash and debt management.

 

"The recent removal of the official exchange rate from the CBN website and
measures to enhance transparency in the setting of the NAFEX exchange rate
are encouraging. The mission recommended maintaining the momentum toward
fully unifying all exchange rate windows and establishing a market-clearing
exchange rate."

 

On monetary policy, to strengthen the monetary targeting regime, IMF
recommended integrating the interbank and debt markets and using central
bank or government bills of short maturity as the main liquidity management
tool, instead of the cash reserve requirements.-Vanguard.

 

 

 

Uganda: How Uganda Stands to Benefit From DRC Roads

Uganda and the Democratic Republic of Congo (DRC) on Wednesday launched a
223km road project linking the two countries, with the project envisioned to
boost cross border trade, improve security and connectivity between the two
countries.

 

According Mr Bageya Waiswa, the permanent secretary in the Ministry of Works
and Transport, the project was initiated with major objectives of boosting
trade and commerce, addressing the issue of security, easing movement and
welfare of the people, and strengthening relations between Kampala and
Kinshasa.

 

At the ground breaking ceremony held at Mpondwe (Uganda) and Kasindi (DRC),
President Museveni and his DRC counterpart Felix Tshisekedi said the
infrastructure will transform the socio economic welfare of the citizens in
both countries.

President Tshisekedi described the project as a reinforcement of relations
between the two neighbouring countries.

 

"I thank him [Museveni] for this initiative because it caters for the idea
of the integration of our countries. As brothers, instead of looking to
build walls, it is better to build bridges," Mr Tshisekedi said.

 

"I am happy to be here for this project. Tshishekedi came with an open
position because he does not want any suspicion with his neighbours. We are
here to break ground for this project and ready for more projects," Mr
Museveni said.

 

In a joint communique issued by the two heads of state, the infrastructure
project is part of a coordinated effort between the two countries to promote
trade, investment and integration among the people of East Africa.

"The two heads of state exchanged views on bilateral, regional and
international issues of mutual interest. They reiterated their commitment to
promoting trade, investment and common infrastructure as well as deepening
integration among the people of the African continent," a State House
communique states.

 

It added: "They stressed the importance of strengthening cooperation in
different sectors, including security, infrastructure connectivity, energy,
trade and investment, health, management of trans boundary water resources,
petroleum and minerals with the view to promoting peace, stability and
prosperity of the two countries."

 

President Museveni has defended Uganda funding of the project, arguing that
it will boot trade between the two countries. Congo features in Uganda's top
five trading partners behind the United Arab Emirates, South Sudan and
Kenya.

Stakeholders say the bad road linkage had stifled trade and better roads
will open up the two countries for more trade, by reducing the time of
moving merchandise.

 

Dr Fred Muhumuza, an economist, said there is potential business in terms of
commodities such as food products, gold, and manufactured goods such as
textiles and plastics that Congolese traders buy from Uganda.

 

According to Dr Muhumuza, road transport is the most viable because of the
bulk and nature of merchandise and the local traders engaged in trade
between the two countries.

 

"It is important to have them [roads]. There are many benefits. Uganda has
very many good roads up to the border, yet Congo was not interested in doing
their part. The need to continue because once you cross to the other side,
the roads disappear," he said.

 

He said security is an added benefit because it is critical for trade.

 

The road network is also expected to present a solution to the insecurity
that has plagued eastern DRC. A number of rebel groups, including the Allied
Democratic Forces (ADF), have used the thick Congo forests as a base to
stabilise the region.

 

According to the joint communique, the two heads of state "exchanged views
on the security situation in the region, especially in the eastern DRC, and
stressed the need to maintain peace, security and stability in the region.
In this effort, they reaffirmed their willingness to combine their effort to
neutralise negative armed groups destabilising the region."

 

About the project

 

The roads to be built cover 223 kilometres. They include Mpondwe/Kasindi to
Beni (80km), Beni-Butembo axis (54km) while the third (89 km) will start
from Bunagana border town, through Rutshuru to Goma, the capital of the
North Kivu Province in Eastern DRC.

 

The project will be funded by the two governments, with each contributing 20
per cent of the cost, while the contractor, Dott Services, a Ugandan Company
will raise the 60 per cent. The Ugandan government already approved Shs220
billion for the project, and Mr Waiswa said they have already received
Shs100 billion.

 

Mr Waiswa told this newspaper that the project will be undertaken in phases,
with the first expected to be completed in 24 months.

 

"The roads are really bad, but the contractors are going to upgrade the
roads to first class gravel, and will later apply asphalt to make them
all-weather roads," he said.

 

More projects

 

As the countries furthers seek to strengthen their ties, President Museveni
expressed his willingness to pursue more infrastructure projects.

 

The heads of state directed that preparations for the construction of other
roads covering 294 kilometres including the Nebbi-Goli-Mahagi-Bunia road
(190km), Bunia-Bogoro-Kasenyi road (55km) and
Rwebisengo-Budiba-Buguma-Njiyapada road (49km) be expedited.-Monitor.

 

 

 

Mozambique: Cement Companies Wail Against Competition

Maputo — Seven of the 16 cement companies operating in Mozambique have
called on the government to keep the price of cement high.

 

These companies signed a letter to the Minister of Industry and Trade,
Carlos Mesquita, protesting at what they called "the very low prices"
charged by the Chinese-owned Dugongo Cimentos, a new entrant to the
Mozambican cement market.

 

The letter, circulating widely on the Internet, claims that Dugongo's prices
are seriously damaging the business of the other companies and constitute
"unfair competition".

 

It says that, when Dugongo began operations in March, its prices were
slightly lower than those of its competitors, but then Dugongo dropped its
prices by almost 50 per cent. "They want to remove all their competitors
from the market", the letter complained.

The users of construction cement, it adds, have stopped buying from other
companies, and are waiting for further price reductions from Dugongo.

 

Dugongo also happens to be the sole Mozambican producer of clinker, a key
raw material for cement. The other companies thus have to buy their clinker
from Dugongo, or import it.

 

The letter claims that Dugongo is violating Mozambican legislation on
competition, and ends with a call for government intervention. Dugungo's
practices, it alleged, are "restricting competition", because it is
"practically impossible" for other companies to compete with Duugongo's
prices.

 

Dugongo was guilty of "abusive practices", the other companies accused,
"because it drops cement prices as it likes", and because its position as
the sole producer of clinker, means that all the other companies are
dependent on it.

The letter calls on the government to fine Dugongo, and "to act immediately
to stop this brusque fall in the prices of cement". It calls for "a general
consensus on clinker and cement prices" - in other words the companies want
the government to override the free market and fix cement prices.

 

The largest cement company in the country, the Portuguese-owned Cimentos de
Mocambique, did not sign the letter. Apparently it does not feel threatened
by Dugongo.

 

According to Friday's issue of the independent newssheet "Mediafax", some of
the companies that did sign do not actually produce cement. They merely buy
it from other companies, bag it, put their own labels on the sacks, and sell
it at high prices.

 

Judging from the avalanche of comments on Mozambican social media, the
consumers are overwhelmingly in support of Dungongo and opposed to the
cartel formed by the other companies. For years consumers have complained
that the unofficial cement cartel has kept prices artificially high, and so
are overjoyed that a new company is breaking ranks and cutting prices.

 

 

Namibia: Date Set for Hearing to Combine Fishrot Cases

AN APPLICATION by the state to have the two Fishrot fishing quotas
corruption cases now pending in the Windhoek High Court joined into one
matter is due to be heard on 12 July.

 

This date was confirmed when the 10 men charged in the two cases made their
latest pretrial court appearance before judge Christie Liebenberg yesterday.

 

Defence lawyers Milton Engelbrecht, Trevor Brockerhoff and Jermaine Muchali,
representing former National Fishing Corporation of Namibia chief executive
Mike Nghipunya, Ricardo Gustavo and Nigel van Wyk, respectively, have
indicated to the court that they will be opposing the state's application to
have the two cases joined together. 

Ronald Kurz, representing former justice minister Sacky Shanghala, his
business partner James Hatuikulipi and Pius Mwatelulo, also informed the
judge yesterday that they will be opposing the application.

 

Defence lawyer Richard Metcalfe, who is representing former fisheries and
marine resources minister Bernhard Esau and his son-in-law Tamson
Hatuikulipi, previously told the judge they would not be opposing the
prosecution's request to have the two cases consolidated to be heard as a
single trial.

 

Metcalfe also told Liebenberg yesterday that his clients are bothered by
delays in the matters. He noted that the state previously informed the court
it wanted to have other accused extradited to Namibia to stand trial with
the accused currently before the court.

 

The other prospective accused include three citizens of Iceland - fishing
company executives Adalsteinn Helgason, Egill Helgi Árnason and Ingvar
Júlíusson - and five companies represented by them.

However, in terms of the laws of Iceland, citizens of that country cannot be
extradited to face criminal charges in other countries, Metcalfe said.

 

He added that lawyer Marén de Klerk, whom the state wants to indict as an
accused in one of the cases, has made a statement to the Anti Corruption
Commission, and that in terms of the Anti-Corruption Act he cannot be
prosecuted unless he is accused of having made a false statement to the ACC.

 

An attempt to have De Klerk extradited to Namibia would take time, while he
could actually be used as a witness instead of being charged, Metcalfe said.
Time was being wasted, he remarked.

 

In one of the cases before the court, Shanghala, James Hatuikulipi,
Mwatelulo, Esau, Tamson Hatuikulipi, Gustavo, 11 corporate entities and
trusts connected to them, and Van Wyk are charged with racketeering, fraud,
money laundering and other alleged crimes in connection with Icelandic-owned
companies' use of fishing quotas allocated to a Namibian company, Namgomar
Pesca Namibia, under a supposed fisheries cooperation agreement between
Namibia and Angola.

Shanghala, Esau, James and Tamson Hatuikulipi, Nghipunya, Mwatelulo, Otneel
Shuudifonya, Phillipus Mwapopi and 11 corporate entities and trusts
connected to them are also facing charges that include counts of fraud,
racketeering and charges under the Anti-Corruption Act in connection with
Icelandic-owned companies' use of fishing quotas allocated to Fishcor.

 

The state is alleging that the accused in the Fishcor case diverted close to
N$120 million supposed to have been paid to Fishcor for the use of fishing
quotas allocated to it to themselves for their own use and benefit.

 

With the state's application to be argued on 12 July, the 10 accused men are
scheduled to have a next pretrial hearing on 22 July.

 

They are being held in custody.-Namibian.

 

 

Airlines, holiday companies ramp up pressure on Britain to ease travel rules

(Reuters) - Britain’s airlines and holiday companies are planning a “day of
action” on Wednesday to ramp up pressure on the government to ease travel
restrictions, with just weeks to go before the start of the peak summer
season.

 

Travel companies, whose finances have been stretched to breaking point
during the pandemic, are desperate to avoid another summer lost to COVID-19.
But with Britain's strict quarantine requirements still in place that now
looks likely.

 

As the clock ticks down to July, Europe’s biggest airline Ryanair (RYA.I)
and Manchester Airports Group on Thursday launched legal action to try to
get the government to ease the rules before the industry’s most profitable
season starts.

 

On Wednesday, June 23, pilots, cabin crew and travel agents will gather in
Westminster, central London, and at airports across Britain to try to drum
up support.

 

Britain's aviation industry has been harder hit by the pandemic than its
European peers, according to data published by pilots trade union BALPA on
Sunday.

 

That showed daily arrivals and departures into the United Kingdom were down
73% on an average day earlier this month compared to before the pandemic,
the biggest drop in Europe. Spain, Greece and France were down less than
60%.

 

UK airports were also badly affected, with traffic in and out of London's
second busiest airport Gatwick down 92%, according to the data.

 

Time is running out for the industry, said the union.

 

"There is no time to hide behind task forces and reviews," said BALPA
general secretary Brian Strutton.

 

"BALPA is demanding that the UK Government gets its act together and opens
the U.S. routes and European holiday travel destinations that it has blocked
with no published evidence at all."

 

Over 45,000 jobs have already been lost in UK aviation, with estimates
suggesting that 860,000 aviation, travel and tourism jobs are being
sustained only by government furlough schemes.- The Thomson Reuters Trust
Principles.

 

 

 

Tanzania: World Bank Approves U.S.$292 Million Funding for Infrastructure
Projects in Zanzibar

The World Bank has approved a $292 million fund for infrastructure projects
in Zanzibar.

 

This will enable Zanzibar residents to benefit from reliable and affordable
electricity as well as modern water and transport infrastructure.

 

Dr Taufila Nyamadzabo, World Bank Executive Director for Africa Group,
assured Tanzania's Finance and Planning Minister Jamal Kassim Ali that the
Bretton Woods institution remains committed to finishing the existing
projects and exploring more opportunities for further cooperation with the
islanders.

 

The money is in addition to $4.9 billion the World Bank had already approved
to help push mega projects in the country.

 

The move is part of Tanzania's decision to opt for donor funding for mega
projects.

 

The government had been using its own internal resources to implement key
development projects following a decision by foreign donors to withhold
funds. The limited funding from government revenue made it an uphill task to
complete projects as well as cater for the country's other needs.

 

Donors had withheld funding in the wake of allegations of human rights
violations and repressive government policies during John Magufuli's reign.

 

Ms Mara Warwick, the World Bank Country Director for Tanzania, Malawi,
Zambia and Zimbabwe, this week met Tanzania's President Samia Suluhu in
Dodoma and pledged that the WB will continue to finance development projects
in the country. Its financing will still be focused on helping the poor and
those living in a dangerous environment.-East African.

 

 

 

 

 

 


 


 


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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


Edgars

AGM

virtual

June 30, 8:45am

 


GetBucks

2019  AGM

Conference Room 1, Monomotapa Hotel, 54 Parklane

July 1, 8:30am

 


GetBucks

2020 AGM

Conference Room 1, Monomotapa Hotel, 54 Parklane

July 1, 10:30am

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and sourced from third parties.

 


 

 


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