Major International Business Headlines Brief::: 26 May 2021

Wed May 26 10:01:10 CAT 2021

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Major International Business Headlines Brief::: 26 May 2021

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ü  Bury Brexit hatchet and seize new opportunities, says CBI

ü  Crypto miners halt China business after Beijing cracks down, bitcoin tumbles

ü  Asia shares wary on U.S. inflation, Bitcoin struggles to steady

ü  GM improves rating in annual supplier relations study

ü  Sea change: global freight sails out of the digital dark ages

ü  Hyundai raises hydrogen game as new trucks roll into Europe

ü  U.S. pot sellers stash cash as banks leave them high and dry

ü  Veteran stock picker to join 'Son-chan' on SoftBank board

ü  Lim family's global assets on radar after Singapore court move

ü  S. Korea's c.bank moves to develop pilot digital currency

ü  Nigeria: Amidst Covid-19 Challenges, Nigeria's Economy Grows Again

ü  Nigeria's Economic Growth Not Reflective of Manufacturing Sector's Reality - LCCI DG

ü  Rwanda: Govt to Address Wheat Prices

ü  Kenya: Report Blames State for Sugar Sector Collapse

ü  Global metal prices fall as China further warns against price hikes

ü  Kenya: Google Lens Rolls Out Swahili Services

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Amazon accused of unfair pricing policies by Washington DC

Amazon is being sued by Washington DC over allegations it abuses its position as a retail giant.

The lawsuit, filed on Tuesday, claims that Amazon's control of up to 70% of US online sales results in higher prices for consumers.

"Amazon's online retail sales platform benefits from, and is protected by, Amazon's anticompetitive business practices," it said.

Amazon said that the lawsuit "has it exactly backwards".

Filed by Karl Racine, Attorney General for the District of Columbia, the lawsuit accuses Amazon of charging third-party sellers on its site fees of up to 40% of a product's price, as well as stopping them from charging less on other platforms.

It says: "Far from enabling consumers to obtain the best products at the lowest prices, Amazon instead causes prices across the entire online retail sales market to be artificially inflated, both for products sold on Amazon's online retail sales platform and on its competitors' online retail sales platforms."

An Amazon spokesperson said in response: "The DC Attorney General has it exactly backwards - sellers set their own prices for the products they offer in our store.

"Amazon takes pride in the fact that we offer low prices across the broadest selection, and like any store we reserve the right not to highlight offers to customers that are not priced competitively."

The lawsuit seeks to stop Amazon from using "anti-competitive" practices and calls for damages and some remedies. But it will only apply to violations of the rules in the District of Columbia itself.

Amazon added that the relief sought would force it "to feature higher prices to customers, oddly going against core objectives of antitrust law."

In 2019, Amazon scrapped a requirement for merchants to sign a "price parity" agreement that stopped them from selling at lower prices under pressure from senior US politicians.

But Mr Racine has said that it introduced "an effectively-identical substitute".

The retail giant has already been charged with abusing competition rules by the European Commission. In November, it found that Amazon had used data on third-party sellers that use its marketplace to boost sales of its own-label goods.

Amazon insisted that - far from being anti-competitive - its private-label products were good for customers and offered more choice.

"No company cares more about small businesses or has done more to support them over the past two decades than Amazon," it said at the time.

The latest legal challenge comes as tech firms face increased scrutiny, having seen sales or memberships jump during the pandemic.

Facebook and Google, for example, have been slammed as being "too powerful" in their markets by regulators in the US and in the UK.

Meanwhile, Amazon has seen sales soar as consumers were forced to stay at home due to coronavirus-related lockdowns. In the first three months of the year, it reported a profit of $8.1bn (£5.72bn), three times the amount in the same period a year earlier.-BBC

M&S swings to big loss as pandemic takes its toll

Marks & Spencer has reported big losses for last year as the pandemic took its toll on clothing sales.

It made a pre-tax loss of £201.2m in the 52 weeks to 27 March, down from a £67.2m profit in the previous year.

But M&S said food sales were up, contributing to "a resilient financial performance in a year of disruption".

The High Street stalwart is in the middle of a huge transformation programme, which last year saw 7,000 job cuts across stores and management.

The M&S losses were mainly due to the performance of its clothing division, which suffered as non-essential retail was shuttered during lockdown.

"In most of this time, our operations have been severely constrained by the change in day-to-day living, the effects of social distancing and partial or full closure of large parts of our store estate," M&S said.

"This has resulted in substantial changes to the mix of products customers have bought and a wide divergence of store formats and channels."

Food boost

M&S said Clothing & Home sales had been growing since reopening.

However, the store chain took heart from improved figures in its food division as its tie-up with online grocer Ocado took effect.

It said food delivered "strong underlying like-for-like growth" of 6.9%, after adjusting for the closure of hospitality and the adverse impact on franchise sales.

"In a year like no other, we have delivered a resilient trading performance," said chief executive Steve Rowe.

"In addition, by going further and faster in our transformation through the Never the Same Again programme, we moved beyond fixing the basics to forge a reshaped M&S.

"With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again. The transformation has moved to the next phase."

M&S said it had received government support of £306.1m, which had partly offset the effect of lost trade and enabled it to keep its employees on.-BBC

US business groups team up to oppose tax rise proposals

US business groups have teamed up to form a coalition opposing tax increase proposals by the Biden administration.

The US government is proposing a global minimum corporation tax rate, as well as increasing the tax in the US to pay for infrastructure projects.

Twenty eight industry groups have now created an alliance called "America's Job Creators for a Strong Recovery".

One organiser for the new group said the tax proposals "could not come at a worse time".

The alliance has been formed as President Biden is seeking to pass a $2.3tn (£1.7tn) infrastructure package, which would direct billions to initiatives such as charging stations for electric vehicles and eliminating lead water pipes.

The White House has promoted its plans as the most ambitious public spending in decades, saying the investments are necessary to keep the US economy growing and competitive with other countries, especially China.

Stalling recovery?

But Eric Hoplin, president and chief executive of the National Association of Wholesaler-Distributors, which is leading the coalition, warned: "The record tax hikes that Democrats are seeking to ram through could not come at a worse time for America's job creators who are just beginning to recover from a crippling pandemic.

"Employers support smart infrastructure to ensure America's 21st century competitiveness, but it shouldn't be used as a Trojan horse to enact record high taxes on America's individually and family-owned businesses."

Other business groups signed up to the coalition include the American Hotel and Lodging Association, American Rental Association, Auto Care Association, National Grocers Association and the Wine and Spirits Wholesalers of America.

Chris Smith, executive director of Main Street Employers Coalition, added: "The pandemic has taxed individually and family owned businesses enough - taxing them again while they are still struggling to recover just goes too far."

A spokesman for the group acknowledged that the infrastructure bill does have strong support, but said that "it quickly becomes unpopular when you talk about taxes on job creators".

The coalition of lobby groups also expects to add more members in the coming weeks and will conduct research on messaging around the President's proposals.

Treasury Secretary Janet Yellen was met with a mixed response earlier in May after delivering a speech to the US Chamber of Commerce to pitch higher taxes to fund infrastructure spending.

Ms Yellen told business leaders that corporation taxes in the US were at a "historic low". The proposed hike would see them increased from 21% to 28%.

She said: "We believe the corporate sector can contribute to this effort by bearing its fair share: We propose simply to return the corporate tax toward historical norms."

After the infrastructure package was unveiled in late March, the Chamber slammed the plan as "dangerously misguided".

"Properly done, a major investment in infrastructure today is an investment in the future, and like a new home, should be paid for over time - say 30 years - by the users who benefit from the investment," the group said in a statement at the time.

Other business leaders, such as Amazon's Jeff Bezos, have said that they support the increase, having previously been criticised over the level of tax they pay in the United States.

Countries such as France, Germany, Japan and Italy have also welcomed proposals to introduce a minimum corporation tax floor globally of "at least" 15%.

UK Chancellor Rishi Sunak has yet to comment publicly on the proposals, but announced at the March Budget that the UK's corporation tax rate would increase to 25% by 2023.--BBC

UK could block stock market listings on national security grounds

Companies could be blocked from listing on the London Stock Exchange on national security grounds, under new rules being considered by the Treasury.

The department said it will consult on the proposals in the coming months.

As first reported by the Financial Times, it will consider whether a listing could be stopped if it gave a foreign state access to state or commercial secrets.

Firms owned by people who might harm UK interests could also be blocked.

In a statement on Tuesday, a Treasury spokeswoman said: "The UK's reputation for clean, transparent markets makes it an attractive global financial centre.

"We're planning to bolster this by taking a targeted new power to block listings that pose a national security risk, and will launch a consultation to inform its design in the coming months."

It comes after Chancellor Rishi Sunak said he planned to relax the UK's strict stock market listing rules to attract more fast-growing companies from abroad.

Proponents say it could draw much needed investment to the UK, as technology companies would be encouraged to choose London over places like New York to list their shares.

However, some fear it could lead to more accounting scandals, as boards would potentially be less accountable to investors.

They also argue that the City watchdog, the Financial Conduct Authority, lacks the teeth to regulate companies as closely as its peers in the US, following scandals at firms such as Carillion, NMC Health and Tesco.

Under the Treasury's national security proposals, companies owned by people whose activities may harm UK interests could also be blocked from selling shares on the London market.

The new rules would be focused on strategic areas of importance such as technology, defence and national infrastructure.--BBC

Liberty Steel nationalisation is unlikely, says Kwasi Kwarteng

Nationalisation is the least likely option to keep Liberty Steel afloat and save thousands of jobs, according to the government.

Business Secretary Kwasi Kwarteng said the UK steel mills that are up for sale are "good assets" which are likely to find buyers.

He added that the current owner, Sanjeev Gupta's GFG Alliance, is in the process of refinancing.

GFG fell into difficulty in March when its main backer, Greensill, collapsed.

Taking the steel mills into state ownership was one measure thought to be under consideration, with the government under pressure to do whatever it takes to save the jobs.

When asked by MPs on business select committee whether Liberty Steel plants in the UK are viable, Mr Kwarteng said there's a "healthy interest" in buying the assets.

"The assets fundamentally are good assets, the workforce is skilled and dedicated, the managers of the plant are very experienced," Mr Kwarteng said.

"The issue that Liberty had... was to do with financial engineering, the opaque bit if you like, of GFG. The leverage, the finance, the debt that they'd incurred. All of that was what I think put a lot of pressure on those businesses," he said.

He added: "Without that I think there's a healthy interest in the assets and I think they have a viable future... It's decarbonised, it's clean, and there's a demand for their product."

On Monday Liberty Steel said it would be sell its specialist steel plant in Stocksbridge as part of a restructuring plan.

The sale is set to include Stocksbridge's mill at Brinsworth, and Performance Steels at West Bromwich.

Mr Gupta has been struggling to finance his UK businesses.

There are about 3,000 staff directly employed at Liberty's UK sites, which include Rotherham, Motherwell and Newport, and a further 2,000 jobs at GFG Alliance in the UK.

Asked what support the government was considering for the steel sites, Mr Kwarteng said he was looking at all options.

"Nationalisation is an extreme occurrence which is unlikely to happen, frankly, and my view has been vindicated by the fact that the assets are for sale.

"There's considerable interest in the assets and Mr Gupta, contrary to a lot of people's beliefs, actually got the thing refinanced… We've got to take him at his word and see if he can refinance the assets and I'm glad to say that he's doing that."

"At the time there was a plea to nationalise, to intervene, to sign tax payers money over to him. And I resisted that. I wanted to see it play out, and it is playing out."

"I don't rule anything in or out, but nationalisation, of all the options, is the least likely," Mr Kwarteng said.

Mr Kwarteng also faced questions about Wyelands Bank, which is part of Mr Gupta's GFG Alliance, and is now facing possible liquidation.

He was asked why £46m of taxpayer-backed loans were extended during the Covid crisis to GFG Alliance last year, despite Wyelands Bank being investigated by the Bank of England back in 2019.

Mr Kwarteng said that last year the British Business Bank was "under a lot of pressure" to disburse loans, and that at the the time "there weren't, as I understand it, concerns about the particular bank".

Wyelands Bank is facing possible liquidation, while GFG has been under pressure since its biggest lender, Greensill Capital, collapsed in March.

Before Greensill's demise, ex-prime minister David Cameron lobbied the Bank of England on its behalf.

Bank of England Governor Andrew Bailey told MPs on Monday that the Bank already had concerns about Wyelands then.

He said those concerns were around "connected lending in the context of the ultimate beneficial owner who is Mr Gupta".

The Bank notified the National Crime Agency in late 2019 in relation to Wyelands, a bank that lent to investors, Mr Bailey told the Treasury committee of MPs.

The Bank then set out its concerns to the Serious Fraud Office in early 2020.-BBC

Airbnb boss: 'Cornwall's more popular than London'

The way we think about travel, holidays and accommodation is changing as societies adjust to the pandemic, says Airbnb chief executive, Brian Chesky.

"Everyone is going to live a bit differently because they have more flexibility and are less anchored to the city."

People are choosing longer lets in large houses, often in rural areas, argues Airbnb.

"The line between travelling and [just] living is blurring," Mr Chesky says.

It is a far cry from the company's origins in the late 2000s, when it focused on renting out spare rooms in cities, mainly to individuals.

Airbnb was hit hard by Covid last spring, shedding a quarter of its workforce. Throughout 2020 it experienced booking levels lower than 2019.

But despite an unprecedented drop in international travel, people still booked accommodation for domestic holidays when local lockdowns eased.

So property rental firms like Airbnb, whose revenues grew by 5% in the first quarter of 2021, were not as badly hit as airlines or package holiday operators.

However, its figures now reveal a big change in customer behaviour.

"Rural nights booked in the UK used to be a quarter of our bookings, they're now half," Mr Chesky tells the BBC.

Cornwall is the country's most-booked summer location in 2021, a title previously held by London.

Globally, domestic bookings went up from 50% in January 2020 to 80% in 2021, according to Airbnb's newly released report, Travel & Living, May 2021.

Another long-term change is becoming evident, according to Mr Chesky. He believes people are increasingly using Airbnb for remote working opportunities, rather than just holidays. They crave a change of scene, perhaps, rather than just a short, sharp break from the nine-to-five.

He cites one statistic in particular: the proportion of stays longer than 28 nights on Airbnb, globally, rose from 14% in 2019 to 24% in the first three months of 2021.

Remote working is increasingly discussed in customer review and feedback, according to Airbnb's report.

The idea might now appeal to people other than just millennial, digital nomads with few personal responsibilities, he says. "When I was a kid I went to school 180 days a year, that's about 180 days I wasn't in school."

With more companies adopting flexible work policies, he thinks, it will become common for families to relocate for holiday periods, subsidising it by renting their own home.

He also thinks three-day weekend breaks will become more popular, with all these factors underwriting "a travel rebound".

"Another whole new segment of our business is also people [who are] just living on Airbnb," says Mr Chesky. "Of the people living on Airbnb on a monthly basis, about 11% of them are living nomadically, they don't even have homes."

However, whether remote working and nomadic living emerge as new frontiers in the sharing economy of private homes, Airbnb is facing increasingly stiff competition in the space it pioneered.

New rivals include Vrbo and Holidu, while established platforms like booking.com and Tripadvisor have also diversified to offer a similar proposition.

Another perennial threat to the company is regulation.

Where Airbnb has contributed to influxes of tourists that local communities struggle to cope with, governments have proposed curbs like tourist taxes and new rules on gaining permission for private holiday rentals.

The Scottish government has proposed giving councils power to enact such measures, to protect areas like Edinburgh's Old Town and the Isle of Skye.

Airbnb is used to dealing with this issue and has thousands of agreements already in place with local and national governments, says Mr Chesky.

Airbnb laid off a quarter of its staff when the pandemic first hit.

This was a "turning point" for the firm, ultimately allowing it to refocus on its core business, says Mr Chesky. But he adds that letting people go by Zoom was the hardest thing he has had to do since becoming CEO: "You couldn't even say goodbye".

Now he hopes the changes that Airbnb is witnessing in user behaviour will help to underwrite "the biggest travel rebound in a century". His company is already hiring again and will continue to do so, he says.

However, some industry experts are not convinced about a rebound.

"After the pandemic when people have the option to see friends, be part of an IRL [In Real Life] community again, will they want to live as modern bedouins?" wonders Sarah Kunst, general partner at Cleo Capital.

"Remote work and digital nomadism has been around for over a decade and even single, young people with money have been slow to fully embrace it long-term.

"Certainly people seem eager to make up for lost time - reunions, weddings, long overdue vacations - but that will likely last? The question is will 2022 travel look more like 2019 or surpass it? We just don't know yet."

Airbnb's three co-founders could never have imagined the impact their business idea would have on cities around the world, says Mr Chesky. Now he thinks the pandemic may usher in another change, as remote working pushes people who can afford it to rural areas and un-needed city shops are converted to residential units.

"Cities are going to go through a renaissance," he thinks, "prices may come down and a whole bunch of young people will move in and remake those cities in their own image."--BBC

Government borrowing fell in April as UK reopened

Government borrowing fell in April compared with the same month last year, as parts of the economy reopened after lockdown measures eased.

Borrowing - the difference between spending and tax income - was £31.7bn, official figures show, which was £15.6bn lower than April last year.

However, the figure was the second highest for April since records began.

Borrowing has been hitting record levels with billions being spent on measures such as furlough payments.

The Office for National Statistics (ONS) now estimates that the government borrowed a total of £300.3bn in the financial year to March. While that was down slightly from its previous estimate of £303.1bn, it remains the highest level since the end of World War Two.

Public borrowing graphic

The ONS said the cost of measures to support individuals and businesses during the pandemic meant that day-to-day spending by the government rose by £204.1bn to £942.7bn last year.

The huge amount of borrowing over the past year has now pushed government debt up to £2.17 trillion, which is 98.5% of GDP - a rate not seen since the early 1960s.

Net debt chart

April's borrowing figure was lower than official forecasts. The Office for Budget Responsibility, the fiscal watchdog, had predicted borrowing would reach £39bn last month.

Parts of the economy began to reopen in April, including pubs and restaurants as well as hairdressers and gyms.

Tax receipts in April were £58bn, which was up slightly from the same month last year when receipts were £54.2bn.

The government's borrowing figures were also boosted by smaller than expected interest payments on debt.

Where does the government borrow billions from?

"April's public finances figures showed that the government's financial position isn't as bad as the Office for Budget Responsibility (OBR) predicted only two months ago, reinforcing our view that the tax hikes and spending cuts that most fear may be avoided," said Ruth Gregory, senior UK economist at Capital Economics.

How you view the latest figures on government borrowing depends on what you compare it with.

The amount borrowed in April - £32bn - is very high by normal standards, about as much as the public sector was predicted, before the pandemic, to need to borrow over the whole financial year. But it is less than the £39bn officially predicted by the OBR at the Budget two months ago.

Similarly, the revised figure for the whole financial year 2020/21 is £300bn - about ten times what was forecast pre-pandemic and the highest borrowing in peacetime.

But compare it to the £394bn predicted in November and there's room for optimism.

Some economists now think there won't be a need for big spending cuts or tax rises to bring that figure down. Instead it will drop naturally as the economy expands, tax receipts from income tax, VAT and the like roll in and the government spends less supporting the economy.

It's also worth remembering that government finances are about as unlike household finances as you could get; almost all the money the government's borrowed since the pandemic is owed to the Bank of England. In that light, the objective pressures to raise taxes or cut spending to reduce borrowing aren't at all urgent. Any decisions to do so will be born less from economic urgency and more from political judgment.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics said public borrowing "should continue to undershoot" the OBR's forecast it published alongside the Budget in March amid expectations of a strong recovery in GDP.

However, he said: "The chancellor's room for manoeuvre on austerity measures will depend on the size of the long-term hit to potential GDP from the recent recession.

"While 'scarring' should be smaller than after past recessions, given that the unemployment rate has remained low, we still see significant costs in the form of diminished investment and an unprecedented exodus of non-UK nationals."--BBC

Tata Steel to continue salaries for Covid victims' families in India

Tata Steel has said it will compensate the families of its workers in India that die of Covid-19.

The firm said it will pay deceased employees' salaries, housing and medical benefits until what would have been their retirement at the age of 60.

It also pledged to cover the education costs of the children of dead frontline workers until they graduate.

This week India officially counted 300,000 dead from the virus, though experts warn the number is higher.

"Tata Steel stands together with a deep sense of loss at the sad demise of its beloved employees during this dreadful pandemic," the company said in a statement.

After detailing the benefits of the firm's "best-in-class social security schemes" the statement concluded by saying that the "Tata Steel family stands stoically with all its people, committed to their security and well-being."

#TataSteel has taken the path of #AgilityWithCare by extending social security schemes to the family members of the employees affected by #COVID19. While we do our bit, we urge everyone to help others around them in any capacity possible to get through these tough times. pic.twitter.com/AK3TDHyf0H

Tata Steel is the latest major employer in India to announce financial support plans for the families of its workers that have lost their lives to Covid-19.

Last week, hospitality group Oyo Rooms said it would help the families of its workers who have died of the coronavirus in a number of ways, including eight months' pay and support for their children's education for five years.

"The battle against COVID is far from over but I hope these initiatives will help ease out the difficulties for the families, the company's founder Ritesh Agarwal said in a series of Tweets.

Earlier this month, glass manufacturer Borosil said it would pay the salaries of workers that died of Covid for the next two years.

In a LinkedIn post, Borosil Limited's Managing Director Shreevar Kheruka also said the company would cover the education costs of the deceased workers' children.

The announcements come as the country reels from a huge loss of life and economic impact.

A second wave of the virus has ravaged the country's healthcare system in the past few weeks. Hospitals filled to capacity have been forced to turn away patients. Critical medicines and oxygen have run out in several areas. Even crematoriums have run out of space.

This week India became only the third country in the world to record more than 300,000 deaths - behind the US and Brazil.

It has recorded 26 million cases - second only to the US - and is now the epicentre of the global pandemic.--BBC

Peloton to build first US factory after supply problems

Peloton is set to build its first US factory after demand for its at-home exercise equipment soared during the pandemic.

The fitness firm's manufacturing facility will begin construction in Ohio later this year, creating about 2,000 jobs.

"We are thrilled to bring a good portion of our manufacturing to United States soil," its boss John Foley said.

Production is expected to start in 2023.

Peloton currently produces most of its treadmills and indoor exercise bikes at third-party facilities in Taiwan.

But with gym-goers stuck at home during lockdown demand for its products more than doubled.

The company saw lengthy delivery delays as a global increase in shipping traffic kicked in. It was forced to invest more than $100m (£70.6m) in air freight and to speed up ocean freight to remedy the situation.

It also acquired Precor, a big manufacturer of exercise equipment for gyms and hotels with factories in North Carolina and Washington, to help it keep up with orders.

Mr Foley said in a statement on Monday: "While we will continue to invest in our Asian manufacturing footprint as well as our existing facilities in the US via our Precor sites, the new Peloton Output Park gives us a massive strategic lever to make sure we have capacity, quality, and economies of scale in our bike and tread product lines".

People considering buying its stationary bikes or treadmills (which start from £1,000) will be able to visit the new factory to view the equipment and watch it being made.

The company has come under fire in recent months after it recalled treadmills both in the US and the UK following the death of a six-year-old child and 72 reports of other injuries.

The US consumer products watchdog said they could cause injury or death to adults, children and pets if they were pulled underneath.

Tread machines sold in the UK were also recalled because display consoles could fall off.

Earlier in May, Mr Foley said the firm had "made a mistake" in not recalling the machines sooner.

Peloton shares were down just under 1% on Monday, having dropped more than 30% in the year-to-date.

But in its last trading update, Peloton announced that its total sales had soared by 141% to $1.26bn in the three months to 31 March, in comparison with $524.6m the same period a year before.

The company still expects sales between April and June to hit $915m despite safety concerns.-BBC

Tech giants fight 'cloud wars' deep in the ocean

"The fact you can post a picture on Facebook or video on YouTube and people can see it anywhere in the world is mind-boggling, but it takes a lot of things behind the scenes and below the ocean to make it happen," says Alan Mauldin, research director at TeleGeography.

It is easy to overlook that our access to the internet relies on thousands of miles of cable, crossing the world's oceans. They provide the plumbing for the internet - 98% of all international internet traffic travels through them.

Some connect neighbouring countries, such as the 131km (80 mile) CeltixConnect cable between Ireland and the UK. Others like the Asian-America Gateway cable, stretch for 20,000km and link continents.

The data flashes along optical fibres as thin as a strand of hair. Each cable will have several of these at its core and then further layers of protective coating to prevent damage.

According to Daniel Sousa, managing director of manufacturing operations at SubCom, one challenge is that "the entire cable systems need to be manufactured and tested as a complete system".

Cables are tested ashore before being loaded on to ships, a process which can take around two weeks, says Orange Marine's chief executive Didier Dillard.

The company operates six cable ships, with one vessel, the René Descartes, able to lay up to 6,000km of cable.

Once telecom companies would have been the main backers of such complicated and expensive projects. But now technology giants have started putting serious money into undersea cables.

TeleGeography estimates that content providers - Google, Facebook, Amazon and Microsoft - have spent over $1.5bn (£1bn) on cable construction in the last five years.

The simple reason is that they have more demand for bandwidth than anyone else, says Alan Mauldin.

Google, in particular, is investing in a number of its own cables. The Curie cable connects Chile to the US - while the Dunant cable, laid in partnership with SubCom, connects the US to France at Orange's cable landing station at Saint-Hilaire-de-Riez.

Two others will be finished soon. The Equiano cable running from Portugal down the west coast of Africa to South Africa, and the Grace Hopper cable that connects the US, UK and Spain.

Ensuring reliable access to the services many of us rely upon, as well as expanding access to previously underserved areas, are two reasons for this investment.

But it is also an investment in Google's cloud computing services - a particularly competitive space amongst the major technology companies. It has spawned the phrase 'cloud wars' to describe the battle for ascendancy amongst them.

Cloud computing has become a huge business as firms have moved their computing and digital storage needs to services like Amazon's AWS and Azure from Microsoft.

So is there any downside to giants like Google controlling these important digital connections? Alan Mauldin says while the cables are private they are not exclusive.

"There are multiple users on it, not just one party. All these parties use the same infrastructure."

While capacity on their private cables is not sold directly by Google, some capacity is commonly shared with telecom companies.

For instance, Orange is able to provide capacity to its customers on the Dunant cable, in return for allowing Google to use its Saint-Hilaire-de-Riez base.

Mr Mauldin likens the undersea cables therefore to a motorway where Google and Facebook have prominent "high-sided trucks", but other, smaller vehicles also dart around carrying data for all other users.

Satellites have been discussed for decades as a potential alternative that may one day put a dent into the dominance of subsea cables.

London-based satellite operator OneWeb recently launched its sixth batch of satellites, whilst Elon Musk's SpaceX is investing in satellite technology through its Starlink project.

Yet comparing the two technologies may be unhelpful.

Satellites are most effective in providing internet access to remote areas where it is either physically difficult or prohibitively costly to build a cable, with cables currently best placed to meet the demand of carrying large amounts of data.

"The heavy lifting of pushing the big data between data centres across the world is going to be on submarine cables," says Mr Mauldin.

But this reliance on cables has propelled the tech giants into geopolitics. In March, Facebook dropped plans for a cable between California and Hong Kong, reportedly due to pressure from US national security officials.

The Royal Navy has announced it is building a surveillance ship to protect "critical" cables, citing the risk of sabotage due to "submarine warfare".

Despite these concerns, a more commonly encountered problem is that cables need to be repaired due to damage inflicted by the natural environment or human activity.

One of Orange Marine's cable ships is currently repairing a cable damaged by an underwater landslide off the coast of the Democratic Republic of Congo.

But it is human activity that poses the bigger challenge. Areas where fishing trawlers regularly operate are a particular problem. Internet access to the Channel Islands was temporarily impaired in 2016 when a ship dragged its anchor, damaging cables.

It also requires a quick response to ensure disruption is kept to a minimum. "It's part of the requirements of our customers that we maintain at all times a cable ship ready to sail within 24 hours," says Mr Dillard from Orange Marine.

The pandemic has concentrated people's attention on the importance of cable networks, says Alan Mauldin: "We always knew it was important, but can you image Covid 20 years ago? It would have been an even bigger disaster."-BBC

China overtakes Germany as UK’s top import market

China has overtaken Germany to become the UK's biggest single import market for the first time since records began.

Goods imported from China rose 66% from the start of 2018 to £16.9bn ($24bn) in the first quarter of this year, the Office for National Statistics said.

Imports from Germany fell by a quarter to £12.5bn in the same period.

The change came as trade with the European Union was disrupted by Brexit and the pandemic boosted demand for Chinese goods.

The Office for National Statistics (ONS) report aimed to assess the impacts of Brexit and the coronavirus on the UK's trade in goods.

It found evidence that trade had been disrupted at the start of the new relationship between the UK and the EU.

The ONS said German imports to the UK had fallen since April 2019, amid uncertainty over the details of Britain's exit from the EU.

Germany's motor industry also felt the impact of the pandemic as both vehicle production and global exports were hit.

In the UK, demand for new vehicles slumped as car showrooms were shut due to lockdown measures.

Exports of goods to Ireland saw the greatest proportionate fall of the UK's top five exporting partners after the EU transition period, the ONS said.

Since modern records began in 1997, Germany had been the UK's biggest source of imports, except for a six month period at the end of 2000 and the start of the following year when the US briefly took the top spot.

Despite a 23.1% fall in total trade with European Union countries as a whole in the period, the EU remains the UK's biggest trading partner, the report found.

The figures also showed there was a jump in imports from China of textiles used for face masks and other personal protective equipment, as well as stronger demand for electrical devices.

China was the first major economy to see its global trade grow last year as it became the first big country to emerge from the pandemic.-BBC

Buy now, pay later players tackle credit conundrum in Mideast’s Gulf

Financial technology start-ups in Saudi Arabia and the United Arab Emirates offering online short-term credit say they are enjoying exponential growth as the coronavirus pandemic drives a shift in consumer spending online.

Digital buy now, pay later (BNPL) purchasing is relatively new to the region where consumers have traditionally been sceptical of paying for goods before getting them.

But Saudi Arabian-based Tamara and UAE's Spotii, Tabby and Postpay all say the take-up has far exceeded initial expectations. And investors are paying attention. Tamara last month raised $110 million in debt and equity, a large amount for an early stage Middle East start-up.

This week, Australia's second biggest BNPL player Zip (Z1P.AX) said it was buying the rest of the shares in Spotii it did not already own for $16 million. Tabby has raised over $30 million including funding from Abu Dhabi state fund Mubadala.

"We're constantly having to re-forecast our numbers just because we constantly get surprised by the consumer adoption," Tabby Co-Founder and Chief Executive Hosam Arab told Reuters.

There is no independent data available on the Middle East BNPL market which also includes Shahry in Egypt; all of the companies in the sector are early stage start-ups and many only began operating last year.

In the United States, Australia and Europe, BNPL is marketed as an alternative to credit cards. During the pandemic, with consumers conserving cash and seeking alternative methods of borrowing money, the service exploded in popularity.

In the Gulf, BNPL companies present themselves as an alternative to cash on delivery, the most common payment method for online purchases in many Middle East countries, according to a 2018 report by British security firm G4S.

But Anil Malhotra, chief marketing officer of digital payments business Bango, said a cultural challenge for BNPL in the Gulf was to make sure it "doesn't look or smell like credit."

Islamic customs prohibit charging interests on loans, which has deterred some Middle East consumers from using credit cards.

Saudi Arabian independent retailer Crate, which introduced Tamara on its website last August, has found that while those checking out with BNPL had become repeat users, most customers preferred to pay by card or cash on delivery.

Half of all purchases are paid with card, while cash on delivery accounts for 40% of all online transactions with BNPL making up 10%, Chief Executive Rayan Fadul told Reuters.

BNPL is still new to the region's consumers who are wary of using a product they don't yet fully understand, he believes.

"They would like to see other people talk about it first and maybe explain to them how easy it is."

PHYSICAL OPPORTUNITY

The model varies but BNPL companies typically allow shoppers to pay for purchases in instalments over several weeks or months. Gulf providers do not charge interest and instead earn most revenue by charging merchants fees.

While shoppers can be charged hefty fees if they miss a payment, providers say they cause less financial burden than credit cards. Users can be suspended if they miss a payment.

They also say they help merchants increase sales as shoppers are able to spread out payments over an extended period and allow shoppers to buy products they need.

As BNPL firms generally make money off merchant commissions and late fees, not interest payments, they sidestep the legal definition of credit - and credit laws.

But the sector has come under scrutiny with authorities in Britain and elsewhere reviewing or tightening rules around the industry, with some regulators saying that technology companies offering BNPL should be regulated like ordinary lenders.

It's not clear how Middle East regulators plan to react. The financial authorities in Saudi Arabia and the UAE did not respond to Reuters requests for comment.

"This is credit and if credit is mismanaged, either by the lender or borrower, bad things happen," Citi Global Head of Banking Research Ronit Ghose told Reuters.

Tamara, which is in Saudi and the UAE, says it has signed up over 1,000 merchants and that transaction volume has been increasing 170% month-on-month. Spotii, available in Saudi, UAE, Bahrain and Oman, has 650 merchants on its platform and has seen transaction volume rise at an average of 90% month-on-month since it launched last year, according to Zip.

Postpay, Spotii, Tabby and Tamara all say they plan to expand to other markets soon.

As the impact of the pandemic diminishes, investors also see an opportunity for BNPL firms to take more business at the shop till in the Middle East.

"We think physical point of sale will play a very big role in the future of BNPL in this part of the world," said Eslam Darwish, partner at Dubai-based venture capital firm Global Ventures which has invested in Tabby.

Alshaya Group, a Kuwaiti retailer with Middle East franchising rights for companies including Starbucks and Hennes & Mauritz, is planning to roll out Postpay in different online stores after trailing it this year in the UAE at Footlocker.

“We are certainly looking at in-store availability of BNPL to benefit customers who, sometimes or always, prefer physical to digital shopping,” Chief Digital Officer Paul Morris said.

Our Standards: The Thomson Reuters Trust Principles.

Nigeria: Restructuring Will Boost Nigeria's Economy, End Insecurity - Obi

"Restructuring the country will bring out the comparative advantage of every state and our natural resources that are lying waste will be fully harnessed."

A former vice presidential candidate of the Peoples Democratic Party in 2019, Peter Obi, has said that political restructuring of Nigeria will boost the nation's economy and end insecurity.

Mr Obi said this on Tuesday at the fourth Adada Public Lecture organised by the Association of Nsukka Professors (ANP) at the University of Nigeria, Nsukka (UNN).

He said with restructuring, governors would look inward to make their states productive, while state, local and community police would be set up to tackle criminality within their areas.

"It is unfortunate that some governors believe in going to Abuja monthly to get federal allocation from proceeds of oil.

"They have forgotten the price of oil in the international market has depreciated and will continue to depreciate.

"No developed country in the world depends on crude oil but they invest in their children, agriculture and encourage small and medium enterprises by giving out soft loans and other incentives.

"There is urgent need to restructure the country for the economy to grow to a desired level," said Mr Obi, a former governor of Anambra State.

He advised Nigerians to stop misleading others that restructuring is a deliberate plan to divide the country.

"Rather, it should be seen as a move to build the ailing economy and restore adequate security in the country," he said.

Mr Obi further said that restructuring would also help to ensure adequate funding of primary and post-primary schools as well as higher institutions.

"We should invest in our children's education, which is greater than any price of crude oil in the international market.

"Restructuring the country will bring out the comparative advantage of every state and our natural resources that are lying waste will be fully harnessed to boost the state economy," he said.

He said restructuring would also enable states to make robust investment in agriculture, achieve food security and create more employment opportunities.

"In the 1960s and 1970s, agriculture was the major foreign exchange earner for the country.

"In the North, we had groundnut pyramids, in the West we had cocoa and the East had palm oil and Nigeria was among the best economies in the world.

"Today, the Netherlands as a country uses its exports from agricultural products and flowers to get billions of dollars in foreign exchange to sustain its economy," he said.

Mr Obi thanked ANP for finding him worthy to deliver the lecture with the topic, "Restructuring, Security Challenges and Development".

He urged professors and lecturers in the country to use their wealth of knowledge to convince Nigerians on the urgent need to restructure the country.

In his remark, Chinyeaka Ohaa, the chairman of the occasion, described the lecture topic as timely and "could not have come at a better time than now the country is going through serious security challenges."

"The topic of the lecture is not only apt but offers (an) opportunity to speak directly on problems of insecurity, weak economic base, fragile democracy, dependence on oil, corruption and unemployment, among others.

"I commend ANP for organising this lecture and urge it to explore all areas of life necessary for growth and development of the country," Mr Ohaa said.

Charles Igwe, the vice chancellor of UNN, thanked the ANP for organising the lecture.

"What ANP has done today is laudable because, as professors, the society is looking up to you all to provide ideas that will solve their problems.

"I commend you all for choosing UNN as venue for the occasion and bringing Nigeria's finest astute businessman and technocrat in the person of Obi as the guest lecturer," he said.

Earlier, the President of the association, Osy Okanya, a professor, said the group provides the platform for an intellectual discourse on various contextual issues that challenge society and the economy.

"In consonance with the mandate and strategic focus of ANP, the fourth Adada lecture topic has been carefully chosen and could not have been more apt, given the heightened fragility of the country.

"The lecture today offers a profound opportunity for Nigerians of all hues as it is being delivered by a Nigerian, who has seen Nigeria inside-out and has always provided the best prescriptions on all national issues," Mr Okanya said.

Governor Ifeanyi Ugwuanyi of Enugu State, Chuka Utazi, a senator representing Enugu North District, and Cosmas Ugwueze, the chairman of Nsukka Local Government Area, were among the dignitaries at the lecture.-Premium Times.

Nigeria: Borno Closes 10 Shopping Malls Over Tax Defaults

Borno Internal Revenue Service (BO-IRS) yesterday sealed off 10 shopping malls where owners had allegedly failed to remit withholding tax to it after receiving notices.

Addressing Journalists in Maiduguri during the exercise, Head, Legal Services and Board Secretary, BO-IRS, Barrister Ardo Buba, said the service was left with no option but to seal off the buildings because the owners failed to remit 10 percent of their gross rental incomes as withholding tax to it.

"The exercise was in line with the Borno State harmonised law on revenue, 2020 as amended. The service decided to make enforcement on collection of withholding tax on rental income in 10 shopping malls within Maiduguri metropolis. The service had issued assessment notices, reminders and demand notices to the buildings and it appeared that all efforts on our side to make them comply proved abortive," he said.

According to him, the service was losing a lot as a result of the inability of individuals and businesses to pay taxes, adding that the state targeted over N500 million as withholding tax alone this year.

He said the state has to strengthen its revenue collection system and so far, N100 million has been collected as withholding tax this year.

One of the landlords, Barrister Abdu Jidda, agreed that notices were sent to him by the service but said he was supposed to remit his tax by June.-Daily Trust.

Kenya: How Multinationals Exploit Gaps in Treaties to Avoid Tax

Kenya has been losing millions of money in taxes avoided by multinationals, due to engaging in ambiguous tax treaties that have seen otherwise taxable services offered freely and companies re-route funds to tax havens.

This is according to a new report by the Tax Justice Network Africa (TJNA), which shows how developed countries have been manipulating tax treaties, to ensure that corporates registered in their countries do not pay taxes for services they offer in developing countries.

The study, Trick or Treat(y)? Kenya's Tax Treaty giveaways to Tax Havens, analysed a select of articles in Double Tax Agreements (DTAs) Kenya has signed with Mauritius, the United Arab Emirates (UAE) and Netherlands, evaluating among others, with key tax concerns emanating from the articles in the DTAs.

It reveals that Sub-Saharan African countries, Kenya included, have fallen prey to DTAs entered with the tax havens, losing the much needed tax revenues.

"From the review, Kenya risks losing the much needed public resources through instances of round tripping and treaty shopping in cases where multinational will take advantage of the ambiguities in the articles contained in the said tax treaties. Further, the treaties are likely to propagate incidents of aggressive tax planning meaning Kenya losing a lot of tax revenue instead of the intended outcome of promoting investment and international trade," the report notes.

Tax revenues

With the high pressure developing countries are under to increase tax revenues, the report argues that DTAs have ended up being a bottleneck and are diluting the existing tax base by redistributing their taxing rights.

TJNA notes that there is need to enhance transparency, public participation, and accountability in the treaty formulation and implementation of tax treaties, which is currently lacking.

"Whereas DTAs have been hailed as enablers of international trade and investment by equitably and efficiently sharing the taxing rights between the participating countries, studies have indicated that DTAs have been used by developed countries to the benefit of their multinational corporations in exploiting developing countries," the report notes.

Among the ways in which the multinationals operating in Kenya use to dodge paying tax, TJNA reports, is through Treaty Shopping, where a firm that does not operate in either of the contracting states enjoys treaty benefits by directing investment through one of the countries, and Round Tripping, where a resident of one country routes investments through another country back to his own country as foreign direct investment, among others.

In February, Treasury Cabinet Secretary Ukur Yatani published a legal notice, directing the exemption of tax from Japanese companies, consultants and employees involved in 16 projects under Financing Agreements, signed between November 2007 and September 2020.

Double taxation

A TJNA 2015 study showed that Sub Saharan Africa has at least 300 DTAs in force, majority of which have been signed with European countries. In 2014, the International Monetary Fund warned developing countries to exercise caution while signing DTAs.

"It is worthy to note that besides the objective to minimise instances of double taxation, DTAs should be negotiated to ensure that the provisions contained therein do not propagate instances of double non-taxation, tax avoidance and evasion," the report notes.

The TJNA says that all treaties it reviewed have not included an article on taxation of technical, management services, despite those being the services developing countries are mostly in need of and from which they could reap considerable tax revenues.

"Exclusion of this from the DTA has been used as an avenue in limiting the extent of taxation of incomes realised from the provision of technical services. This is critical in the understanding that developing countries especially in Africa are net importers of services and as such any loophole will be detrimental in raising of the needed revenue to finance development," it states.

To save itself from the trap, Kenya needs to include an article on taxation of technical, management services to form bear minimum that should be included in any treaty to initiate the treaty negotiation process.

"This practice has been adopted in countries like Ghana to provide basis of a meaningful negotiations. Inclusion of this article will minimise the ambiguities that have been experienced on how to tax imported services in cases where there is a treaty in existence and that the service provider has not created a permanent establishment," the report says.- Nation.

Kenya: Defiant Uhuru Kenyatta Reopens Kenya Meat Commission Plant Despite Court Ruling

President Uhuru Kenyatta on Monday opened the refurbished Kenya Meat Commission (KMC) factory in Athi River, Machakos County, despite a court judgment that found its transfer to the military illegal.

High Court judge Anthony Mrima in February found the transfer of KMC to the military illegal for lack of public participation, but gave the Ministry of Agriculture and the Attorney-General 90 days to regularise the move.

President Kenyatta, however, yesterday further cemented his plans of keeping KMC under the Kenya Defence Forces (KDF), while pursuing an appeal against the court decision.

The President, through an executive order, reassigned the ministerial roles of KMC from the Ministry of Agriculture and Livestock to the KDF, which falls under the Defence ministry, in a bid to give the cash-strapped, State-owned firm a lifeline.

"This court declares the said decision constitutionally infirm. The decision is hereby quashed," ruled Justice Mrima.

The judge, however suspended the order for 90 days to allow the AG and the Agriculture ministry to regularise the situation given that the ministerial roles and budgets had already been transferred and effected.

Public clash

The order on KMC's transfer to the military is among several others that President Kenyatta has ignored, amplifying a public clash with the judiciary.

Among the other orders that the President has ignored is one directing him to appoint 40 judges who were recruited by the Judicial Service Commission.

In one of his last acts in office, retired Chief Justice David Maraga ordered the President to dissolve Parliament for failing to enact the one-third gender rule, but the government instead decided to appeal the directive.

A bench of the High Court also ruled that the appointment of Chief Administrative Secretaries (CASs) was illegal, but they continue discharging work.

Justice Mrima had also said Cabinet Secretaries who were appointed in the first term must be approved by the National Assembly to serve in the second term, a process that has not been undertaken yet they remain in office.

Not shortlisted

Further, Principal Secretaries who were also not shortlisted, interviewed and appointed in line with the law, were found to be holding positions contrary to the constitution.

The judge, however, suspended the decision, giving the government time to regularise the appointments.

Advocate Adrian Kamotho, who was among lawyers who tried pushing for the President to appoint the 40 judges, termed the disobedience of the orders as unfortunate.

"The President is the symbol of national unity. He should lead by example. Obeying a court order is the most critical thing to do because he enjoys the position by virtue of the law," Mr Kamotho said. Mr Moses Kurgat concurred, saying the President is setting a bad example.

"What if tomorrow I decided not to obey a certain order because the President has done it before? By defying court orders, he is defying the people who elected him because the judiciary derives its authority from the people," he said.

Disobeying court orders

The lawyer says that ignoring court orders could come back to haunt the President, with the passage of time. He said that, for citizens to obey the law, the President should abide by court decisions or appeal rulings since disobeying court orders could lead to anarchy.

Mr Omwanza Ombati also opined that the law might at one point catch up with the president.

"He should respect the law and the constitution which put him there. His office is a creature of the constitution, just like the Judiciary," he said.

Mr Elias Mutuma, another lawyer, said the President took an oath of office and swore to defend and uphold the constitution. "He is bound by that oath," he said, adding that the President cannot choose which court order to obey and which one to defy.

A bench of five judges has already found the President in contravention of Chapter Six of the constitution, and specifically Article 73(1)(a)(i), by initiating and promoting the Building Bridges Initiative (BBI) constitution amendment plan.

The judges said that, by taking the initiative to amend the law, other than through the prescribed means, the President had failed to respect, uphold and safeguard the constitution.

The judges added that, through the move, President Kenyatta fell short of the leadership and integrity threshold as set out in Article 73 of the constitution.-Nation.

Kenya Now Shifts Focus Offshore in Fresh Bid to Revive Oil Dream

An Italian firm is set to start drilling an oil exploration well in Lamu in November as Kenya seeks to check the presence of commercially viable oil and natural gas deposits in the vast basin.

The well will provide the oil multinational, Eni, with technical data on whether the area, which is estimated to hold significant oil and natural gas reserves, has suitable and commercially viable deposits of these resources.

A commercial find of crude oil has not yet been made in the area, but a hydrocarbon find by Eni would breathe fresh air into the country's plan to be an oil exporting country after already making commercial finds of the resource in South Lokichar in Turkana.

The company made its entry in Kenya in 2012 and holds a 41.25 per cent stake in blocks L11A, L11B and L12 after selling a 13.75 stake to its long-time Qatar Petroleum (QP) in 2019, which reduced its ownership from 55 per cent to 41.25 per cent, while Total holds a 33.75 per cent stake and QP 25 per cent.

The company, with a market capitalisation of €31 billion (Sh4 trillion) and operates in 68 countries, 14 of them in Africa, including Nigeria, Ghana, Angola and Mozambique.

Crude oil

Eni acquired its compatriot Agip in 2003, which has been operating in Kenya since 1960 and has significant resources that would be key in developing crude oil fields in the area should a commercial find be made.

Should the company find commercially viable oil in any of its blocks, then it will move to the next phase, which can take upto five years.

"From the moment when you drill an exploration well to when you actually start production, a long time (years) is needed to study geological data, assess commercial viability, get government approvals, design and build an infrastructure," Cioni Anna Marilia, the company's spokesperson said in an email.

The firm has kept an active presence in the country since, especially at the coast, and has been carrying out various projects in the region in preparation for the start of its commercial operations, including building a water desalination plant in Lamu to provide fresh water.

"The President of the Republic of Kenya Uhuru Kenyatta has met today in Nairobi the Chief Executive Officer of Eni Claudio Descalzi to discuss potential green initiatives to be developed in the country, in order to provide local communities with efficient and sustainable access to energy resources," Eni in a December update.

Exploration permits

"On the sidelines of the meeting, amendments to the Production Sharing Contracts (PSC) in force were signed, pertaining to three exploration permits offshore Mombasa," the firm said.

Eni's planned exploration activities come as Kenya also recently hired Houston-based ION Geophysical Corp to carry out two seismic surveys in the offshore Lamu basin which will produce detailed data about the location and size of potential oil and gas reservoirs in the vast area.

Kenya is optimistic that a discovery in Lamu would especially change its fortunes and rejuvenate the oil dream as crude oil prospectors in Lamu would not face disputes over access to land and water rights, and transportation difficulties that marred and threaten to kill the oil project in Turkana.

Kenya is also seeking to procure new multi-million shilling equipment by July to collect fresh and comprehensive information about undiscovered oil deposits beneath the four basins, a process the Ministry cannot carry out using its dated equipment.

Kenya has four sedimentary basins - Anza, Lamu, Mandera and the Tertiary Rift - covering a total of 490,000 square kilometres which have 56 exploration wells drilled to check for the presence of oil.

The country has only exported a singular consignment of 240,000 barrels of crude oil obtained from the Early Oil Pilot Scheme which was to test Kenya's product in the global oil market before plans for mass production would be put in place.

The export of the commodity to a Chinese multinational, flagged off by President Uhuru Kenyatta to huge fanfare in Mombasa in August 2019, netted the country Sh1.5 billion.

The government has set a target to export 1.2 million barrels of oil by 2023, and the Treasury allocated Sh270 million to be used for oil exploration activities and distribution this year.

Eni, in its latest annual report, notes that the exploration license for its undeveloped acreage in Lamu will expire in the next three years, but expresses optimism that it will retain a significant amount of the blocks on the renewal or extension of the license.

Kenya has only exported a singular consignment of 240,000 barrels of crude oil obtained from the Early Oil Pilot Scheme which was to test Kenya's product in the global oil market before plans for mass production would be put in place.

The export of the commodity to a Chinese multinational, flagged off by President Uhuru Kenyatta to huge fanfare in Mombasa in August 2019, netted the country Sh1.5 billion.

The government has set a target to export 1.2 million barrels of oil by 2023, and the Treasury allocated Sh270 million to be used for oil exploration activities and distribution this year.-Nation.

Invest Wisely!

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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

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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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