Major International Business Headlines Brief::: 16 May 2021

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Major International Business Headlines Brief::: 16 May 2021

 


 

 


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ü  Amazon set to hire 10,000 UK workers

ü  U.S. fuel crisis eases as pipeline returns to normal after hack

ü  U.S. requires inspections for wire failure on Boeing 737 Classic planes

ü  Less than 3% of U.S. small businesses could face tax hikes under Biden plan -White House

ü  Facebook faces prospect of ‘devastating’ data transfer ban after Irish ruling

ü  Taiwan says HK tycoon asset freeze a warning to global investors

ü  Cairn Energy sues Air India to enforce $1.2 bln arbitration award - court filing

ü  Nigeria: 77 Percent of Oil Spills in Nigeria Occurred in Only Three States

ü  Nigeria: Naira Drops to Record Low On Official Market After Devaluation

ü  Uganda: Take Advantage of Biotechnology

ü  Nigeria: $6.5bn Repatriated Loots Fail to Address Poverty, Underdevelopment

ü  East Africa: Global Shipping Line Hapag-Lloyd Enters the East African Market

ü  Namibia: Ongwediva Trade Fair Reduced to 250 Exhibitors

 

 

 

 

 

 

 

 


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Amazon set to hire 10,000 UK workers

US tech giant Amazon is to go on a hiring spree in the UK as online shopping continues to boom in the pandemic.

 

Amazon is to hire 10,000 UK employees as it opens more warehouses in the north and south of England.

 

It is also creating a number of corporate roles in Cambridge, Edinburgh, London and Manchester.

 

Business Secretary Kwasi Kwarteng said the move was "a huge vote of confidence in the British economy".

 

The coronavirus pandemic has accelerated a trend towards online shopping, and tech giants such as Amazon have reaped the benefits.

 

Now the firm, which has come under criticism over working conditions and over the amount of tax it pays, is further entrenching its position in the UK.

 

The addition of 10,000 new roles, including thousands in its warehouses, will take its UK workforce to more than 55,000 by the end of the year.

 

Amazon said pay for operations roles was £9.70 per hour, or £10.80 in London, with other benefits.

 

amazon employees graph

Its profits tripled in the first three months of the year to $8.1bn (£5.76bn), up from $2.5bn a year ago.

 

The online retail giant will open new "fulfilment" warehouses in Dartford, Gateshead, Hinckley and Swindon, and a "parcel receive" warehouse in Doncaster.

 

It will recruit in its offices for roles in fashion, digital marketing, engineering, video production, software development, cloud computing, AI and machine learning.

 

The company will also be recruiting for its Amazon Web Services (AWS) cloud computing business and its operations network.

 

Working conditions

Amazon continues to face scrutiny over how much tax it pays in the UK, which prompted the government to launch a digital services tax in April 2020.

 

The online retail giant has insisted that it pays all taxes required in the UK.

 

On Thursday, it won a court battle overturning an order for it to pay €250m (£215m) in back taxes to the EU.

 

In March, the Unite union demanded that Amazon give its British workers a "new deal", including allowing them to unionise and have a greater share of the firm's profits.

 

At the same time, it also launched a confidential hotline for Amazon workers to call to whistleblow on working conditions.

 

Worker in an Amazon warehouse.

 

"Amazon continues to be plagued by reports of poor working conditions and anti-union tactics," said Unite's executive officer Sharon Graham at the time.

 

"Unite has written to Jeff Bezos to call on him to guarantee workers the freedom to talk with and form a union without fear."

 

Training 'key'

Business Secretary Kwasi Kwarteng heralded Amazon's plans as making a "prime investment in our retail sector", which will "open up a wide range of opportunities for even more workers".

 

Amazon will also invest £10m over three years into a scheme to train 5,000 employees in subjects including accountancy, HGV driving and software development, in a bid to give them transferable skills.

 

Amazon will pay 95% of tuition and associated fees for adult education courses, up to £8,000 over four years.

 

Local chambers of commerce will work with Amazon to identify regional skills shortages.

 

Shevaun Haviland, director general of the British Chambers of Commerce, said: "Providing staff with training to plug the skills gaps that exist within the local business community is going to be a key driver to increasing productivity and boosting the economy as the UK recovers from the pandemic."

 

Amazon's UK Country Manager John Boumphrey said: "We're proud of the front-line roles we offer across Amazon, and we also know that they will be a stepping stone for some in their career journey."-BBC

 

 

U.S. fuel crisis eases as pipeline returns to normal after hack

Widespread gasoline shortages along the U.S. East Coast began to ease slightly on Saturday as the operator of the nation’s biggest fuel pipeline said it was back to delivering “millions of gallons per hour” following last week’s cyberattack.

 

Ships and trucks were deployed to fill up storage tanks after the six-day Colonial Pipeline shutdown, the most disruptive cyberattack on record, triggered widespread panic buying that left filling stations across the U.S. Southeast dry.

 

"We have returned the system to normal operations, delivering millions of gallons per hour to the markets we serve," said the company, which had begun gradual restart of the pipeline on Wednesday.

 

More than 13,400 gas stations surveyed in the east and south by fuel tracking app GasBuddy were experiencing outages on Saturday, down from 16,200 early the previous day.

 

On Saturday evening, about 75% of gas stations in Washington, D.C. were still without fuel, an improvement from Friday's figure of 88%, the app showed. Shortages also eased in North Carolina and Virginia, but were about the same in Georgia.

 

U.S. gasoline demand dropped 12.6% from the previous week, probably due to an easing of "crazed" panic buying just after the pipeline shut, said Patrick De Haan, head of petroleum analysis at GasBuddy.

 

The nationwide average for a gallon of regular unleaded was $3.04 on Saturday, from $2.96 a week ago, according to AAA.

 

The pipeline outage accelerated increases in gasoline prices that were "already rising due to higher crude prices and demand ahead of Memorial Day," said AAA spokeswoman Ellen Edmonds.

 

She was referring to the May 31 holiday that traditionally kicks off the U.S. summer driving season.

 

Places served by the pipeline saw the biggest price jumps this week - with Georgia and the Carolinas up 20 cents per gallon or more - but they should also see prices decline again as supplies improve, Edmonds said.

 

Florence, South Carolina had the nation's biggest price increase at 30 cents, while prices rose 9 cents in D.C.

 

Ships deployed under emergency waivers were also moving fuel from U.S. Gulf Coast refiners to the northeast, while 18-wheel tanker trunks were ferrying gasoline from Alabama to Virginia, helping to stem the shortages.

 

U.S. crude prices could edge higher as refiners process more oil to catch up from the gasoline storage that was drawn down while the pipeline was shuttered, said Robert Yawger, analyst at Mizuho Securities.

 

The approach of Memorial Day helps make "the sense of urgency supersized" for refiners, Yawger added.

 

In Washington, D.C., Dennis Li was stuck on Friday at a Sunoco gas station that was out of fuel. He had tried to find gas at four stations during the day, with no luck.

 

"I'm running on empty to the point where I don't want to drive anymore," said Li, who is from Annapolis, Maryland.

 

INITIAL BREACH UNKNOWN

 

The hacking group blamed for the attack, DarkSide, said it had hacked four other companies including a Toshiba subsidiary in Germany.

 

Colonial Pipeline has not determined how the initial breach occurred, a spokeswoman said this week. The 5,500-mile (8,900-km) pipeline carries 100 million gallons of gasoline, diesel and jet fuel each day to East Coast markets from Texas refineries.

 

Colonial has not revealed how much money the hackers were seeking or whether it paid. Bloomberg News and the New York Times said it paid nearly $5 million.

 

Colonial said it would resume on Monday its regular nomination process, in which shippers seek space on the line.

 

It released a revised schedule to shippers, with estimated delivery dates. The schedule suggested that diesel loaded in Atlanta on Friday would arrive at the northernmost point in Linden, New Jersey, 10 days later, as would gasoline.

 

Steve Boyd, a senior managing director at fuel delivery firm Sun Coast Resources, estimated that with gasoline moving on the pipeline at half Colonial's normal speed, it could take 12 to 20 days for new deliveries from Gulf Coast refineries to reach Linden.

 

Sun Coast has 75 trucks taking supplies from terminals in Alabama and Georgia to retailers as far away as Virginia.

 

"If customers need us for another week or three weeks, we'll be there," said Boyd.- The Thomson Reuters Trust Principles.

 

 

 

U.S. requires inspections for wire failure on Boeing 737 Classic planes

The Federal Aviation Administration (FAA) said on Friday it was requiring U.S. operators of 143 Boeing Co (BA.N) 737 Classic series airplanes to check for possible wire failures stemming from an investigation into an Indonesia crash in January.

 

The 737 Classic is an older generation of planes more than two decades old. The FAA said the issue affected 1,041 737-300, -400 and -500 Classic series airplanes worldwide, but many are currently out of service, because of COVID-19 or other issues.

 

The FAA is issuing an airworthiness directive for operators to verify that the flap synchro wire, which plays a role in the operation of the aircraft’s auto-throttle system, is securely connected to a safety sensor.

 

The wire failure could go undetected by the auto-throttle computer on affected airplanes and pose a safety risk.

 

The FAA is requiring some speedier checks than had been suggested by Boeing, which said late on Friday that it was "engaged in ongoing efforts to introduce safety and performance improvements across the fleet."

 

The newer 737 MAX and 737 NG are unaffected by the directive.

 

The FAA and Boeing identified the potential problem during the investigation of the Jan. 9 crash of Sriwijaya Air Flight 182 in the Indonesian capital.

 

Indonesia’s third major airline crash in just over six years shone a spotlight on the southeast Asian nation’s poor air safety record.

 

All 62 aboard were killed after the 26-year-old Boeing Co 737-500 crashed into the Java Sea soon after takeoff from Jakarta.

 

The FAA said there was no evidence the flap synchro wire issue had a role in the accident though the possibility of a failed connection presented a safety concern warranting prompt attention.

 

In February, Indonesia’s National Transportation Safety Committee (KNKT) said the plane had an imbalance in engine thrust that eventually led it into a sharp roll before a final dive into the sea.

 

There had been two prior problems reported with the autothrottle system that automatically controls engine power based on maintenance logs, but the issue was rectified four days before the crash, the agency said.

 

Boeing issued a March 30 message to operators directing them to perform electronic checks of the auto-throttle computer to confirm the wire is connected within 250 flight hours.

 

The FAA is requiring the initial test within 250 flight hours or two months from now, whichever occurs first, "to ensure that airplanes with low utilization rates are addressed in a timely manner." Operators must then make repairs, if needed.

 

The FAA said a faulty connection could result in the failure of the auto-throttle system to detect the position of the aircraft’s flaps if the plane’s engines were operating at different thrust settings due to another malfunction.

 

The FAA is requiring follow-on inspections every 2,000 flight hours after the first.

 

Affected U.S. operators are Aloha Air Cargo, DHL, iAero Airways, Kalitta Charters and Northern Air Cargo, the FAA said.- The Thomson Reuters Trust Principles.

 

 

 

Less than 3% of U.S. small businesses could face tax hikes under Biden plan -White House

Less than 3% of the roughly 30 million small-business owners in the United States could face tax increases under President Joe Biden's jobs and infrastructure plan, according to a new analysis by the White House on Friday.

 

The White House has been seeking to leverage the support and political popularity of small-business owners in its fight to raise the corporate tax rate from 21% to 28% on large corporations such as Walmart Inc (WMT.N) and Amazon.com Inc (AMZN.O). The move has faced stiff opposition from large national trade groups like the U.S. Chamber of Commerce and the Business Roundtable. https://reut.rs/3bpkKwQ read more

 

The proposed increase in the corporate tax rate to 28% would not affect any small business that file taxes as a "passthrough entity" such as a limited liability corporation, said a senior administration official. Nearly all small businesses fall in that category, the official said.

 

The proposed increase in the top income tax bracket by 2.6 percentage points for single earners who earn over $452,700 annually and married couples above $509,300 per year - "would affect less than 3 percent of passthrough business owners," the official said

 

Most small businesses are passthrough businesses like limited-liability organizations and S-corporations that do not pay a corporate tax. Instead, the owners report business income and pay the tax on their personal tax returns.

 

"There has been a false line of attack circulating that the president's tax plan represents some kind of significant wide-ranging tax increases on small business owners and that's just simply untrue," the official said.

 

Biden's tax plan attempts to "level the playing field" between small businesses and large multinational corporations, by ensuring that big corporations cannot escape or eliminate the taxes they owe by offshoring jobs and profits in the United States, and pay a lower tax rate than small businesses, the White House has said.

 

It faces stiff opposition from Republican lawmakers who have showed little signs of being swayed by small-business sentiment.

 

Biden is open to compromise, said the official, when asked whether the president is standing behind raising the corporate tax rate to 28% despite Republican pushback or prefers other methods such as greater enforcement by the Internal Revenue Service (IRS) as a way to pay for this infrastructure plan.

 

"He was in the Senate for almost 40 years and understands how the legislative process works and there is going to be a little bit of give and take with Congress, so that's the part of the process we are in right now."

 

The official said greater enforcement by the IRS would not impact a "vast majority of small-business owners" as audit rates for people making less than $400,000 a year will not change.- The Thomson Reuters Trust Principles.

 

 

 

 

Facebook faces prospect of ‘devastating’ data transfer ban after Irish ruling

Ireland’s data regulator can resume a probe that may trigger a ban on Facebook’s transatlantic data transfers, the High Court ruled on Friday, raising the prospect of a stoppage that the company warns would have a devastating impact on its business.

 

The case stems from EU concerns that U.S. government surveillance may not respect the privacy rights of EU citizens when their personal data is sent to the United States for commercial use.

 

Ireland's Data Protection Commissioner (DPC), Facebook's lead regulator in the European Union, launched an inquiry in August and issued a provisional order that the main mechanism Facebook uses to transfer EU user data to the United States "cannot in practice be used".

 

Facebook had challenged both the inquiry and the Preliminary Draft Decision (PDD), saying they threatened "devastating" and "irreversible" consequences for its business, which relies on processing user data to serve targeted online ads.

 

The High Court rejected the challenge on Friday.

 

"I refuse all of the reliefs sought by FBI (Facebook Ireland) and dismiss the claims made by it in the proceedings," Justice David Barniville said in a judgment that ran to nearly 200 pages.

 

"FBI has not established any basis for impugning the DPC decision or the PDD or the procedures for the inquiry adopted by the DPC," the judgment said.

 

While the decision does not trigger an immediate halt to data flows, Austrian privacy activist Max Schrems, who forced the Irish data regulator to act in a series of legal actions over the past eight years, said he believed the decision made it inevitable.

 

"After eight years, the DPC is now required to stop Facebook's EU-U.S. data transfers, likely before summer," he said.

 

A Facebook spokesman said the company looked forward to defending its compliance with EU data rules as the Irish regulator's provisional order "could be damaging not only to Facebook, but also to users and other businesses".

 

PRIVILEGED ACCESS

 

If the Irish data regulator enforces the provisional order, it would effectively end the privileged access companies in the United States have to personal data from Europe and put them on the same footing as companies in other nations outside the bloc.

 

The mechanism being questioned by the Irish regulator, the Standard Contractual Clause (SCC), was deemed valid by the European Court of Justice in a July decision.

 

But the Court of Justice also ruled that, under SCCs, privacy watchdogs must suspend or prohibit transfers outside the EU if data protection in other countries cannot be assured.

 

A lawyer for Facebook in December told the High Court that the Irish regulator's draft decision, if implemented, "would have devastating consequences" for Facebook's business, impacting Facebook's 410 million active users in Europe, hit political groups and undermine freedom of speech.

 

Irish Data Protection Commissioner Helen Dixon in February said companies more broadly may face massive disruption to transatlantic data flows as a result of the European Court of Justice decision. read more

 

Dixon's office welcomed the decision on Friday, but declined further comment.- The Thomson Reuters Trust Principles.

 

 

 

Taiwan says HK tycoon asset freeze a warning to global investors

Taiwan warned on Saturday that Hong Kong's decision to freeze assets belonging to jailed media tycoon Jimmy Lai was a sign to the international community that doing business in the Chinese-controlled city was becoming increasingly risky.

 

The asset freeze, announced on Friday, includes all shares in his company, Next Digital (0282.HK) - the first time a listed firm has been target by national security laws in the financial hub.

 

Shortly before the announcement, the Taiwan arm of Lai's popular Apple Daily said it would stop publishing its print version, blaming declining advertising revenue and more difficult business conditions in Hong Kong linked to politics. read more

 

In a statement sent to Reuters, Taiwan's Mainland Affairs Council said the asset seizure highlighted the threat Hong Kong's national security law posed to the property of the city's people.

 

"It is equivalent to announcing to the international community that Hong Kong's business risks are increasing," the council added.

 

"We also once again call on relevant parties to stop suppressing Hong Kong democrats, otherwise they will drift away from popular sentiment."

 

The former British colony of Hong Kong has been rocked by protests against its Beijing-backed government in recent years and last year China imposed a tough new national security law on the city.

 

China denies it is aimed at taking away people's freedoms and is needed to return law and order to Hong Kong.

 

Chinese-claimed Taiwan has a rambunctious democracy and a free media and its government has been strongly critical of the crackdown in Hong Kong, to Beijing's anger.

 

Lai was sentenced to 14 months in prison for taking part in unauthorised assemblies during pro-democracy protests in 2019. - The Thomson Reuters Trust Principles.

 

 

 

Cairn Energy sues Air India to enforce $1.2 bln arbitration award - court filing

Cairn Energy (CNE.L) has sued India’s flagship carrier Air India to enforce a $1.2 billion arbitration award that it won in a tax dispute against India, according to a U.S. District Court filing reviewed by Reuters.

 

The move ratchets up pressure on India’s government to pay the sum of $1.2 billion plus interest and costs that the British firm Cairn was awarded by an arbitration tribunal in December. The body ruled India breached an investment treaty with Britain and said New Delhi was liable to pay.

 

Cairn filed the lawsuit on Friday in the U.S. District Court for the Southern District of New York, seeking to make Air India liable for the judgment that was awarded to Cairn. The lawsuit argued that the carrier as a state-owned company, is "legally indistinct from the state itself".

 

"The nominal distinction between India and Air India is illusory and serves only to aid India in improperly shielding its assets from creditors like (Cairn)," the filing said.

 

Air India did not immediately respond to requests seeking comment.

 

However, a senior government official, who asked not to be named, said the government and Air India had not received any formal notice of such a suit.

 

"As and when any such notice is received. The government or concerned organisation shall take all necessary steps to defend against any such illegal enforcement action," the official said, adding that New Delhi has engaged a team ready to defend against any enforcement action initiated by Cairn anywhere in the world.

 

Cairn’s move could potentially jeopardise India’s attempts to divest the state-owned carrier this year. New Delhi said in December that it had received multiple expressions of interest after it moved to privatise the loss-making entity.

 

The senior government official noted New Delhi has filed an appeal against the arbitration award, and added “the government is confident that the award will be set aside”.

 

Cairn had since January, however, begun taking steps to identify Indian assets overseas against which it could enforce the award including bank accounts, aircraft and even ships. It had also started registering its claim against India in courts in the United States, Great Britain, Netherlands and Canada.

 

Reuters last week reported that India had asked state-run banks to withdraw funds from their foreign currency accounts abroad, fearing Cairn might sue to seize the funds.

 

'LITTLE PROGRESS'

 

Cairn had said previously it was pursuing a settlement with India, but in the interim it has also been laying the grounds to seize Indian assets should talks fail.

 

Commenting on the suit, a company spokesman on Saturday said that Cairn was taking the necessary legal steps to protect shareholder interests in the absence of a resolution.

 

He said that "Cairn remains open to continuing constructive dialogue with the Government of India" to reach a settlement.

 

An Indian official told Reuters last week, talks between New Delhi and the company were making "little progress" and noted that India's directive to state-run banks to withdraw foreign currency funds sitting overseas showed the government is worried that Cairn may move quickly to seize assets.

 

It is unclear whether the suit against Air India could serve as a means for Cairn to seize Air India aircraft that land on U.S. soil.

 

Earlier this year, a Malaysian court allowed the seizure of a Pakistan International Airlines (PIAa.PSX) Boeing 777 aircraft that landed in Kuala Lumpur, after Dublin-based AerCap (AER.N) had filed suit in a British court over unpaid dues. The jet was released nearly two weeks later after the two sides reached an amicable settlement.

 

Air India is the only Indian carrier that flies long-haul flights to destinations in the United States and Canada. The frequency of its overseas flights has recently been impacted as the second wave of the pandemic that has hit India, has prompted nations to restrict, or ban travel from the South Asian nation.-The Thomson Reuters Trust Principles.

 

 

 

 

Nigeria: 77 Percent of Oil Spills in Nigeria Occurred in Only Three States

About 43,000 barrels of oil were lost in 881 cases of oil spillage in Nigeria from 2019 to May 1 this year, data from NOSDRA shows.

 

Between January 2019 and April 2021, 12 states in Nigeria recorded 881 cases of oil spillage, according to data obtained from NOSDRA, a government-run satellite tracker.

 

About 77 per cent of the spills occurred in only three oil-producing states: Bayelsa, Delta and Rivers. The three are among Nigeria's highest oil producers for that period. However, Nigeria's second-highest oil producing state during the period, Akwa Ibom, only witnessed 26 oil spills within that period.

 

The states with the highest FAAC earning from the 13 per cent oil derivative (and technically highest oil production) from 2018 to 2020 were Delta, Akwa Ibom, Rivers and Bayelsa states respectively.

 

The total spillage reported within this period amounted to about 43,000 barrels of oil, worth over $3 million (at $70 based on the May 5 crude price in the international market), which is equivalent to N1.23 billion (at N410 to a dollar).

Using the 2018 Constituency Project Report by civic organisation BudgIT, this amount can build three classrooms of four blocks (at N8 million each) and drill three solar-powered boreholes with 100,000 litres capacity tank (at N25 million each) in each of the twelve states.

 

The NOSDRA tracker said the data is fluid and changes "on an ongoing basis" as new spills are reported. The quoted toll is as of May 1. NOSDRA only has records of the state-by-state breakdown for the past three years.

 

States with highest spills

 

Rivers, Delta and Bayelsa had the most cases of oil spillage during the period. While Rivers State had 352 spills, Delta State had 233 cases and Bayelsa was third with 89.

 

The three states together, thus, recorded more oil spills (674) than all other states put together (207); about 77 per cent. In fact, each of Rivers and Delta recorded more oil spills than the nine other states (apart from Delta and Bayelsa) put together (207).

Abia had 41 incidents; Imo - 31; Akwa Ibom - 26; Edo - 19; Lagos - 11; while Kaduna and Ondo each had 2 cases.

 

In terms of volume, the spills amounted to about 26,268 barrels lost in Rivers State; 9,134 in Delta State; and 1,219 in Bayelsa State, according to the tracker.

 

 

The three states, therefore, accounted for over 85 per cent of the volume of oil spills within that period. Rivers State alone accounted for more than 60 per cent of the spillages.

 

While Abia State lost 1,600 barrels of oil to spills in the last three years, Imo State lost 2,190 barrels. Edo lost 93 barrels; Kaduna, 41 barrels; Lagos, 101; Ondo, 8; Akwa Ibom, 1.29.

 

Around 70 per cent of the spills recorded by NOSDRA in the past 11 years were as a result of sabotage and oil theft, also known as bunkering, a review of the tracker by this newspaper showed.

 

Financial implications of oil theft

 

Oil theft not only deals a huge blow to the nation's pipeline facilities, but it also contributes a massive drain on the country's finances and causes pollution.

 

A PREMIUM TIMES analysis had found that a total of 1,161 pipeline points were vandalised across Nigeria in the 21 months between January 2019 and September 2020.

 

Likewise, between October 2018 and October 2019, the country recorded 2,181 vandalised pipeline points.

 

According to figures mined from the monthly financial reports of the nation's public oil company, NNPC, this has a huge toll on the nation's oil revenue.

 

>From January 2019 to January this year alone, repairs of the pipelines and other facilities came at an outlay of about N15 billion, this newspaper found.

 

Data from NNPC's monthly FAAC reports from December 2019 to January 2021 showed that the company spent a total of N59.1 billion on the repair and management of the pipelines in about one year.

 

Oil spill clean-up

 

By law, oil companies must close off oil spill sites within 24 hours of being notified of an oil spill on their fields.

 

After this is done, a Joint Investigative Visit (JIV) is launched to determine the extent of the spill. The team is usually made up of representatives of the affected community, that of the oil company, and relevant government agencies.

 

The purpose of the deployment is to determine, among other things, the cause, impact, and scale of the spill. Each party is required to sign a JIV document in case of a legal hearing or compensation.

 

Within two weeks of a confirmed spill, oil companies are mandated by the law to submit the details of the spill information filled in a document called FORM B to the regulatory authorities.

 

When the clean-up is deemed completed, reports of the clean-up operations are to be filled in another FORM C which will be submitted to the regulatory agency.

 

Oil companies whose facilities are breached always take responsibility for oil spill clean-up, whether the spill was due to their own operational fault or oil theft by members of the host communities.

 

However, they are required to pay compensation to the affected local communities affected if the spill was the company's fault.

 

Contrary to what the law stipulates, some 1,948 (which is about 20 per cent) of the oil spill sites recorded in the last 11 years were not visited by a joint investigation team, data shows.

 

Triggers of oil spills

 

Aside from bunkering and oil theft which are potentially lucrative businesses for criminals, oil spills have thrived due to the inaccessibility of some oil spill sites. This is not helped by the presence of armed criminals involved in illegal refining around these sites.

 

Even though incidents of oil spills are to be reported within 24 hours, some go unreported due to the vested interest of the party responsible for the oil spill as they will be required to clean it up and provide compensation.

 

Likewise, there have been reported cases of affected local communities denying spill clean-up teams or regulators access to spill sites.

 

Suspicion and mutual distrust among oil companies, regulatory agencies and local communities (some of which may be hiding their illegal refining facilities) have not helped this too.- Premium Times.

 

 

 

Nigeria: Naira Drops to Record Low On Official Market After Devaluation

Abuja — The Nigerian naira fell to a record low on the official market yesterday, with lenders quoting it 7.7% weaker against the dollar, following a currency devaluation aimed at unifying multiple exchange rates.

 

The naira dropped to 419.75 per dollar, from its last trade at 381 on Monday, its last official session. The official market rate, backed by the central bank, has been stuck at 381 naira to the dollar for almost a year after two devaluations last year.

 

No quotes have been available on the naira's official rate since Tuesday.

 

On the over-the-counter spot market NAFEX=FMDQ, the currency traded at 410.65 naira against the dollar on Friday, and it was quoted at 483 on the black market NGNFX=BDCN.

 

Nigeria operates multiple currency regimes, which frustrate businesses and have prompted calls from the World Bank for the rates to be unified to attract investment.

 

Rising dollar demand has put pressure on the naira as providers of foreign exchange, such as offshore investors, exited after the COVID-19 pandemic triggered a fall in global oil prices.

 

The World Bank has linked approval of a $1.5 billion budget support loan to currency reforms.

 

The central bank has been trying to unify the rates and boost the dollar supply through direct interventions. It extended an incentive offer last week to recipients of dollar remittances to try to encourage more inflows from the Nigerian diaspora.-Leadership.

 

 

 

Uganda: Take Advantage of Biotechnology

A number of African countries have begun to take advantage of agricultural biotechnology to overcome crop production challenges. The last country reported to have done so is Nigeria where more than 2000 farmers are ready to grow genetically modified cowpea this year, according to the digital publication, Cornell Alliance for Science, dated May 5 2021.

 

"More than 2,000 Nigerian farmers are planning to plant Bt cowpea, the country's first genetically modified food crop, in July," reported the newsletter.

 

"The crop, which was developed by Nigerian scientists, has been genetically modified (GM) to resist the destructive pod-borer insect pest. As a result, farmers will be able to significantly reduce pesticide applications and harvest bigger yields. The crop is also expected to support the nation's economic development and food security while improving farmers' livelihoods."

Last month, Kenyan cotton farmers reported a bountiful first harvest of GM cotton just only four months after the farmers planted the country's first genetically modified insect-resistant cotton seeds according to the Genetic Literacy Project Newsletter dated April 21 2021.

 

Kenya is set to join the ranks of countries such as India, USA, China, Pakistan, and Brazil in growing Bt cotton and marketing its products locally and internationally after passing the Fibre Crops Legislative Bill into law according to a news release from the Nairobi based ISAAA (International Service for the Acquisition of Agri-biotech Applications) published in the weekly digital publication "Crop Biotech Update" dated April 14 2021.

 

Bt cotton is genetically modified to be high yielding and resistant to the destructive African boll worm which has made cotton production very costly and less profitable for most African countries including Uganda.

 

Late last week a local TV station reported remarkable success by Ugandan scientists under Naro who have come up with GM cassava that is resistant to the destructive Cassava Brown Streak Disease which is wiping out the food crop from Uganda.

 

However the GM cassava variety and Bt cotton among other Bt crops cannot be grown in Uganda because the government has not yet passed the required Biotechnology and Bio-safety law like the other countries have done.-Monitor.

 

 

 

Nigeria: $6.5bn Repatriated Loots Fail to Address Poverty, Underdevelopment

Stolen funds recovered from past public officials and stashed in foreign countries, totalling $6.5billion, have failed to address Nigeria's development gaps despite 19 years of recovery efforts.

 

Nigeria is one of the countries affected by the $89 billion lost annually by African countries through illicit financial flows.

 

A major effect of this is a widened gap between the rich and poor as the country remains economically vulnerable, with inadequate infrastructure, erratic power supply, limited access to healthcare, education, insecurity, low broadband internet penetration and general low standard of living.

 

The latest data from the World Data Lab revealed that of the 209,707,456 people living in Nigeria, 89,822,903, that is about 43 per cent, live below poverty line of less than $1.90 per day.

 

Out of this figure, the number of poor people in rural areas is put at 56,481,799, that is 63 per cent of the total poor, while 41,406, 595, being 35 per cent represents the urban poor.

The 2019 report by the National Bureau of Statistics (NBS) noted that 40 per cent of the total population or almost 83million people live below the country's poverty line of N137,430 ($381.75) per year.

 

The NBS said its report was based on data from the Nigerian Living Standards Survey, conducted between 2018 and 2019, with support from the World Bank's Poverty Global Practice and technical assistance from the LSMS programme.

 

The recoveries have also failed to bridge the infrastructure gap as Nigeria still requires over $300 billion to build roads, railways, airports, seaports, power stations, among other critical infrastructure.

 

The country has resorted to loans to finance infrastructure projects, with about $79 billion borrowed so far and concerns mounting over repayment.

 

Since May 2002 when former President Olusegun Obasanjo's government began the recovery of stolen assets following prolonged period of military rule in the country, to 2021, about $6.5billion has been returned to Nigeria.

The funds were hoped to be reinvested into developmental projects that affect the lives of the people, but the management were often controversial, and the long term impact remain doubtful.

 

Some of the recoveries include $1.2bn in May 2002, taken by former head of state, Sani Abacha to Europe by then President Obasanjo; the same government recovered $149m taken to the island of Bailiwick of Jersey by General Abacha in November 2003; $500m Abacha loot from Switzerland in August, 2004 and $458m Abacha loot from Switzerland in September 2005.

 

In 2012, former President Goodluck Jonathan recovered $1bn Abacha loot from Switzerland. In June 2014, the government recovered $227million Abacha loot from Liechtenstein. Again, in August 2014, the Jonathan administration recovered $480m Abacha loot from USA. Another $380m was recovered from Switzerland by the government in March 2015.

On December 8, 2017, incumbent President Muhammadu Buhari administration announced recovery of $300m linked to former Bayelsa State governor, Diepreye Alamieseyeigha and Abacha, stashed in the USA and Switzerland. In February 2020, the government recovered $308m Abacha loot from the Island of Bailwick Jersey. The government recovered $311m Abacha loot from USA and Bailwick of Jersey in April 2020. And in March 2021, the government announced the return of £4.2m loot from a former governor of Delta State, James Ibori.

 

The utilisation of the recovered funds under the Obasanjo and Jonathan administrations were not very clear, although sources said they were put into the budget and used for capital projects.

 

However, it is said that the recovered loots have been tied to projects since the tenure of Muhammadu Buhari. Many of the receiver nations signed memoranda of understanding with Nigerian government and the World Bank to channel the funds to projects that are beneficial to the people or have them disbursed directly to the poor and vulnerable households under the supervision of the National Social Investment office.

 

Thus, the government came up with the Social Intervention Programmes, including the Conditional Cash Transfer Scheme and others with the $300m recovered in 2017. Other related social safety net intervention projects pursued by the government include: Npower, Tradermoni and Marketmoni.

 

When another trench of $311m Abacha loot was received in 2020, the government announced that it will deploy the money towards the completion of the ongoing work on three key infrastructure projects, being the Lagos-Ibadan expressway, Abuja-Kaduna expressway and the second Niger bridge.

 

The Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami had, on March 9 announced that the £4.2m Ibori loot, when returned to the country, would also be used for the completion of infrastructure projects.

 

He said a reputable civil society had been incorporated to monitor the use of the funds for the ongoing projects.

 

However, there are already complaints by the Delta State Government for the funds to be returned to the coffers of the state.

 

Responding to the issue, an anti-corruption lawyer, Yusuf Ali, a Senior Advocate of Nigeria (SAN), said to address poverty in the country needed a reliable, credible social security system.

 

He, however, added that the culture of sharing money was not sustainable for the country. He maintained that encouraging productive activities through reducing interest rate for bank loans to single-digit would create economic activities and investment.

 

"We must deploy resources in infrastructure because much of the challenges we have is that of inadequacy of infrastructure like power. If we get power right, I assure you that almost 50 per cent of our unemployment problems would be solved," he said.

 

Also, the Africa Network for Environment and Economic Justice (ANEEJ) and partners on the Monitoring Transparency and Accountability in the Management of Returned Assets (MANTRA), said it was important that recovered looted fund be used for the stated agreements and not to be re-looted.

 

The executive director of the ANEEJ, Rev David Ugolor, said the MANTRA had been independently monitoring the use of the returned loot earmarked for infrastructural projects across the country.-Daily Trust.

 

 

 

East Africa: Global Shipping Line Hapag-Lloyd Enters the East African Market

Nairobi — Global shipping line Hapag-Lloyd has entered the East African market with weekly sailings between China, South-East Asia, Kenya and Tanzania.

 

In a statement, the company says it will deploy seven 2,800 TEU vessels to the service, which will arrive in Kenya and Tanzania next week and offer connections to Hapag-Lloyd's global network.

 

"The new East Africa Service 3 (EAS3) will offer direct weekly sailings between China, South-East Asia, Kenya and Tanzania with very competitive transit times. In addition, the EAS3 will offer excellent connections to Hapag-Lloyd's global network via the hub ports of Singapore, Port Kelang and Shanghai," the company said.

Hapag-Lloyd entered the Sub-Sahara African market about 13 years ago and has seen steady and significant growth in transported volumes to and from Africa since then.

 

In East Africa, the China Kenya Express Service (CKX) connects Kenya with some of the most important ports in Asia, such as Singapore and Shanghai, while the East Africa Service 2 (EAS2) connects the East African country with the west coast of India and Jebel Ali in Dubai.

 

The company says in March 2021, it opened a new office in Kenya to better serve and be closer to its customers. The global firm added that while the main business will be managed from the port city of Mombasa, the company will also have an office in Nairobi.

 

Hapag-Lloyd also serves landlocked East African countries - such as Uganda, Rwanda, Burundi and South Sudan - with regular inland connections to and from Mombasa.

As part of its growth strategy, the shipping company says it will also endeavour to develop inland connections to Somalia, Southern Ethiopia and Northern Tanzania.

 

"Hapag-Lloyd has been steadily expanding its business in East Africa in recent years as part of our strategic focus on selected growth markets worldwide," said Dheeraj Bhatia, Senior Managing Director Region Middle East at Hapag-Lloyd. "Our new EAS3 service will create a new option for our customers and help us to forge even stronger connections between this flourishing region and the rest of the world."

 

Hapag-Lloyd has also been strengthening its offerings and presence in West Africa in recent years. For example, in October 2019 the Middle East India Africa Express (MIAX) service has been launched, providing direct and fast connections between Middle East, India, South Africa and key markets in West Africa such as Ghana and Nigeria.

 

In September 2020, a new office was opened in Lagos, Nigeria. And, in mid-March 2021, Hapag-Lloyd has signed a sale and purchase agreement with the Dutch container shipping company NileDutch.

 

The acquisition of NileDutch allows customers to benefit from an even denser network and a much higher frequency of sailings, particularly from and to locations in West and South Africa. Currently, the completion of the transaction is subject to the approval of the responsible antitrust authorities.

 

Hapag-Lloyd now has five own offices on the continent: in South Africa, Egypt, Ghana, Nigeria and Kenya. In addition, it recently opened a Quality Service Center in Mauritius.

 

The first westbound voyage of the EAS3 will start in Shanghai on 29 April 2021 with an estimated arrival in Mombasa on 23 May 2021. Further vessel and schedule details will be announced as soon as possible.

 

The port rotation will be as follows - Shanghai ▪ Ningbo ▪ Nansha ▪ Singapore ▪ Port Kelang ▪ Mombasa ▪ Dar Es Salaam ▪ Port Kelang ▪ Singapore ▪ Shanghai.-Capital FM.

 

 

Namibia: Ongwediva Trade Fair Reduced to 250 Exhibitors

THE Ongwediva Town Council announced on Saturday that only 250 exhibitors will be allowed to exhibit their products and services at this year's Ongwediva Annual Trade Fair.

 

The trade fair will take place from 26 to 31 August.

 

Ongwediva Town Council spokesperson Jackson Muma said before the Covid-19 pandemic about 450 to 500 exhibitors were allowed to exhibit their products at the trade fair.

 

The reduction in the number of exhibitors, he said, is done to curb the spread of the novel coronavirus.

 

According to Muma, exhibitors who want to showcase their products but not from the trade fair centre will be able to do so online from 20 August to 20 November.

 

The Ongwediva Annual Trade Fair 2021 will be a window to connecting to high-level business networks in national and African regional trade, he said.

 

The town council cancelled the trade fair due to the Covid-19 pandemic outbreak last year.-Namibian.

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Africa Day

 

25/05/21

 


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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