Major International Business Headlines Brief::: 25 September 2021

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Major International Business Headlines Brief::: 25 September 2021

 


 

 


 <https://www.nedbank.co.zw/> 

 


 

 


ü  Huawei's Meng Wanzhou flies back to China after deal with US

ü  Nike and Costco warn of product shortages and delays

ü  China declares all crypto-currency transactions illegal

ü  Wall St Week Ahead Fed's coming taper fans talk of renewed 'reflation'
trade

ü  U.S. new home sales beat expectations; supply near 13-year high

ü  Google CEO sought to keep Incognito mode issues out of spotlight, lawsuit
alleges

ü  Bulk of S&P 500 embraces sustainable accounting standard, foundation says

ü  U.S. SEC delays certain assets from enforcement actions under new
disclosure rule

ü  Nasdaq short interest down 0.07% in mid-September

ü  United Airlines fined $1.9 million for U.S. tarmac delays

ü  Uganda: 'Lift the Ban On Facebook and Widen Phone Coverage'

ü  Gambia: Minister Blames Lightning for Gamcel's Woes

ü  Nigeria: China Aims High in Bilateral Relations, Trade With Nigeria

ü  Kenya: MPs Push to Have Kenya Power Board Dissolved

 

 

 

 

 


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Huawei's Meng Wanzhou flies back to China after deal with US

A Chinese technology executive held in Canada on US fraud charges has left
the country after a deal with prosecutors, following years of diplomatic
tensions over her fate.

 

Meng Wanzhou, chief financial officer of Huawei, was detained on fraud
charges in December 2018 at the request of the US.

 

On Friday, the US Department of Justice dropped an extradition request for
her.

 

The case infuriated China and strained relations with the US and Canada.

 

It also prompted accusations that China had detained Canadian citizens in
retaliation, which China denied.

 

"My life has been turned upside down. It was a disruptive time for me," Ms
Meng told reporters after being freed from Canadian detention.

 

"Every cloud has a silver lining," she continued, adding: "I will never
forget all the good wishes I received from people around the world."

 

Shortly afterwards she boarded an Air China flight bound for the Chinese
city of Shenzhen, AFP news agency reports.

 

Details of a possible deal for Ms Meng's release have been the subject of
intense negotiations between US and Chinese diplomats.

 

The US alleged Ms Meng misled the bank HSBC over the true nature of Huawei's
relationship with a company called Skycom, putting the bank at risk of
violating US sanctions against Iran.

 

On Friday the US Department of Justice (DOJ) said it had reached a deferred
prosecution agreement.

 

This means the DOJ would hold off from prosecuting Ms Meng until December
2022. If she complied with conditions set by court, the case would
eventually be dropped.

 

The deal, which recommended she be released, allowed her to formally deny
guilt for key charges while also acknowledging the allegations laid out by
the Americans.

 

Later on Friday, Canadian prosecutors told a court in Vancouver that they
had withdrawn efforts to extradite her to the US and that she should be
discharged from detention.

 

She had been under house arrest in her multimillion-dollar Vancouver home
for nearly three years.

 

Ahead of the court appearance, Ms Meng was seen entering the building
accompanied by Chinese consular officials.

 

The judge subsequently ordered that she go free.

 

As part of the deal, Ms Meng agreed to a "statement of facts" admitting that
she knowingly made false statements to HSBC.

 

The DOJ said Ms Meng had "taken responsibility for her principal role in
perpetrating a scheme to defraud a global financial institution".

 

The DOJ also said said it was continuing to prepare for trial against
Huawei.

 

For months there have been extensive behind-the-scenes contacts, with senior
Huawei executives sent to Washington by the company to try to resolve a case
which has fuelled international tension.

 

For Huawei's boss, the issue has been deeply personal, with his daughter
being held, but for the whole of China it has also turned into a major cause
of anger. It has also poisoned relations between China and Canada, with the
latter believing two of its citizens, Michael Kovrig and Michael Spavor,
have been held as pawns in the negotiations.

 

A deal has the ability to reduce some of the tensions that have emerged. But
there will still be questions - what does the US gain out of it? And what
kind of link might there be between events in North America and the status
of the two Michaels in China?

 

Ms Meng is the elder daughter of billionaire Ren Zhengfei, who set up Huawei
in 1987. The company is now the largest telecom equipment maker in the
world.

 

He served in the Chinese army for nine years, until 1983, and is also a
member of the Chinese Communist Party.

 

Huawei has faced accusations that the Chinese authorities could use its
equipment for espionage - allegations it denies.

 

In 2019, the US imposed sanctions on Huawei and placed it on an export
blacklist, cutting it off from key technologies.

 

The UK, Sweden, Australia and Japan have also banned Huawei, while other
countries including France and India have adopted measures stopping short of
an outright ban.

 

A few days after Ms Meng was arrested, China detained two Canadian citizens,
Michael Spavor and Michael Kovrig, on suspicion of spying.

 

Critics have accused China of treating them as political bargaining chips,
held as part of what is known as "hostage diplomacy". China denies this.

 

Last month, a Chinese court convicted Michael Spavor, a businessman, of
espionage and sentenced him to 11 years in prison.

 

Canada condemned the sentence, saying his trial did not satisfy even the
minimum standards required by international law.

 

Ms Meng's agreement with the US may pave the way for the two Canadians'
release, but tensions in China-Canada relations will not quickly dissipate,
experts say.

 

The bilateral relationship has plunged to historic lows since Meng's arrest.

 

The US charges against Huawei remain, and the company is still on a trade
blacklist. Other Chinese tech companies with operations in the US, such as
social media company TikTok, are also facing scrutiny.

 

Chinese tech sector analyst Rui Ma told the BBC that many Chinese companies
were hopeful that Ms Meng's deal with the US might mean no further
deterioration of US-China relations, "but no one is taking it to mean that
there is a reversal in tensions".-BBC

 

 

 

Nike and Costco warn of product shortages and delays

US sportswear giant Nike and US retail giant Costco both say they are facing
product shortages and delays due to global supply chain problems.

 

Nike said production and delivery of its shoes would impacted until next
spring, as it struggles with shipping issues and a worker shortage in Asia.

 

Meanwhile, Costco has re-imposed limits on items like toilet paper.

 

It says customers are stockpiling again amid Covid fears, but it is also
struggling to ship goods to its shops.

 

On Thursday, Nike said it had cut its sales outlook for the year due to the
ongoing disruption.

 

"We are not immune to the global supply chain headwinds that are challenging
the [manufacturing] and movement of product around the world," chief
financial officer Matthew Friend said.

 

"We expect all geographies to be impacted by these factors."

 

Record backlog of cargo ships at California ports

The firm's factories in Vietnam and Indonesia, which make three quarters of
its shoes, have been hit by local lockdowns. In Vietnam alone it has cost
the firm 10 weeks of production this year.

 

Meanwhile, the time it takes to get its products from Asia to North America
has doubled, from around 40 to 80 days. Nike has also seen transit times
rise in North America, Europe, and the Middle East and Africa due to "port
and rail congestion and labour shortages".

 

Costco - a membership only retailer - said on Thursday it was reinstating
limits on purchases of key items including toilet rolls, bottled water and
some cleaning products.

 

It said it was partly due to a resurgence in panic buying, but it is also
struggling to find trucks, drivers and shipping containers to get goods to
its stores.

 

The retailer has even chartered three of its own ocean liners to move
products between Asia and North America over the coming year.

 

"The factors pressuring supply chains and inflation include port delays,
container shortages, Covid disruptions, shortages on various components, raw
materials and ingredients, labour cost pressures and truck and driver
shortages," said Costco's chief financial officer, Richard Galanti.

 

"Various major brands are requesting longer lead times, and in some cases,
difficulty in finding drivers and trucks on short notice".

 

Since economies have reopened, retailers around the world have faced
widespread disruption amid a surge in demand for imports.

 

In the US it's contributed to shortages of children's toys, timber, new
clothes and pet food, while also pushing up consumer prices.

 

Brands including toymaker Hasbro and sportswear giant Adidas have warned of
potential supply bottlenecks going into the crucial holiday season.

 

And last week, a record 73 ships were forced to queue outside two major US
ports, Long Beach and Los Angeles, as port staff scrambled to clear the
backlog. Before Covid, it was unusual for more than one to wait for a
berth.-BBC

 

 

 

China declares all crypto-currency transactions illegal

China's central bank has announced that all transactions of
crypto-currencies are illegal, effectively banning digital tokens such as
Bitcoin.

 

"Virtual currency-related business activities are illegal financial
activities," the People's Bank of China said, warning it "seriously
endangers the safety of people's assets".

 

China is one of the world's largest crypto-currency markets.

 

Fluctuations there often impact the global price of crypto-currencies.

 

The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the
Chinese announcement.

 

It is the latest in China's national crackdown on what it sees as a
volatile, speculative investment at best - and a way to launder money at
worst.

 

Trading crypto-currency has officially been banned in China since 2019, but
has continued online through foreign exchanges.

 

However, there has been a significant crackdown this year.

 

In May, Chinese state intuitions warned buyers they would have no protection
for continuing to trade Bitcoin and other currencies online, as government
officials vowed to increase pressure on the industry.

 

In June, it told banks and payment platforms to stop facilitating
transactions and issued bans on "mining" the currencies - the trade of using
powerful computers to make new coins.

 

But Friday's announcement is the clearest indication yet that China wants to
shut down crypto-currency trading in all its forms.

 

The statement makes clear that those who are involved in "illegal financial
activities" are committing a crime and will be prosecuted.

 

And foreign websites providing such services to Chinese citizens online is
also an illegal activity, it said.

 

Mining migration

The technology at the core of many crypto-currencies, including Bitcoin,
relies on many distributed computers verifying and checking transactions on
a giant shared ledger known as the blockchain.

 

As a reward, new "coins" are randomly awarded to those who take part in this
work - known as crypto "mining".

 

China, with its relatively low electricity costs and cheaper computer
hardware, has long been one of the world's main centres for mining.

 

The activity is so popular there that gamers have sometimes blamed the
industry for a global shortage of powerful graphics cards, which miners use
for processing crypto-currencies.

 

The Chinese crackdown has already hit the mining industry.

 

In September 2019, China accounted for 75% of the world's Bitcoin energy
use. By April 2021, that had fallen to 46%.-BBC

 

 

 

Wall St Week Ahead Fed's coming taper fans talk of renewed 'reflation' trade

(Reuters) - The Federal Reserve’s signal that it will soon unwind its bond
buying program is bolstering the case in financial markets for the so-called
reflation trade, which lifted Treasury yields and boosted shares of banks,
energy firms and other economically sensitive companies in the early months
of 2021.

 

The reflation trade stalled during the summer. But the central bank said
this week it would likely begin pulling back on its $120 billion a month
government bond purchasing program as soon as November, while also signaling
that it may raise interest rates in 2022, earlier than many expected.
L1N2QN1LU

 

Though monetary tightening is frequently seen as a drag on stocks, some
investors view the Fed’s stance as a vote of confidence for the U.S.
economy.

 

"Normally, a hawkish turn would be bad for risk-on assets, particularly
equities... the fact the Fed is putting this out there signals to the market
that the economy is on pretty firm footing," said Ralph Bassett, head of
North American equities at Aberdeen Standard Investments.

 

The Russell 1000 Value index, where reflation-trade stocks are heavily
represented, is up 0.9% since the start of the quarter, well behind the 5.7%
gain in the Russell 1000 Growth index over the same time. The value index is
up 17% year-to-date with the growth index up 19%, compared to an 18.7% rise
for the S&P 500.

 

Market watchers have also kept a close eye on Treasury yields, which have
risen since the Fed meeting as expectations of stronger growth and inflation
worries drove some investors out of safe-haven government bonds.

 

The benchmark U.S. 10-year yield recently stood at 1.45%, near its highest
level since the start of July. Higher yields on Treasuries make some stocks
less attractive.

 

Analysts at UBS Global Wealth Management said the 10-year yield will rise to
1.8% by year-end but do not believe such a move will disrupt equities. The
pace of any rise would be key: the bank’s research showed that a three-month
change in nominal yields of between 50 and 100 basis points has been
accompanied by a 5.7% return in the MSCI US index since 1997.

 

“Only a rise in real yields of more than 50 bps over three months would
likely weigh on equity returns, particularly in emerging markets,” the bank
said in a report.

 

Investors will watch a raft of U.S. economic indicators next week, including
durable goods orders and the ISM manufacturing index, as well as the
progress of debt ceiling negotiations in Washington.

 

Investors will also monitor developments in the Evergrande saga, after the
heavily indebted Chinese company missed a payment deadline on a dollar bond
this week, leaving global investors wondering if they will have to swallow
large losses when a 30-day grace period ends. L1N2QQ02J

 

Margaret Patel, a senior portfolio manager of equity and fixed income funds
at Wells Fargo, said Fed tapering should benefit high-yield bonds because it
implies a stronger economy that will result in fewer corporate defaults.

 

 

 

U.S. new home sales beat expectations; supply near 13-year high

(Reuters) - Sales of new U.S. single-family homes increased for a second
straight month in August, but demand for housing has probably peaked after a
COVID-19 pandemic-fueled buying frenzy.

 

The report from the Commerce Department on Friday also showed the supply of
new homes on the market last month was the largest in nearly 13 years, with
prices unchanged on a monthly basis. It followed on the heels of news on
Wednesday that sales of previously owned homes fell in August.

 

"These data suggest that the surge in new home sales during the pandemic has
ebbed and inventories of unsold homes have risen to a more normal level in
relation to sales," said Conrad DeQuadros, senior economic advisor at Brean
Capital in New York. "This report and the existing home sales data for
August suggest that a considerable portion of the flow adjustment of sales
to higher demand may have taken place."

 

New home sales rose 1.5% to a seasonally adjusted annual rate of 740,000
units last month. July's sales pace was revised up to 729,000 units from the
previously reported 708,000 units.

 

Sales increased 6.0% in the populous South and gained 1.4% in the West. They
soared 26.1% in the Northeast, but tumbled 31.1% in the Midwest. Economists
polled by Reuters had forecast new home sales, which account for about 11.2%
of U.S. home sales, increasing to a rate of 714,000 units.

 

Sales decreased 24.3% on a year-on-year basis in August. They have struggled
to post significant gains since surging to a rate of 993,000 units in
January, which was the highest since the end of 2006. Builders have been
constrained by higher prices for inputs, as well as shortages of land and
labor.

 

About 78% of homes sold last month were either under construction or yet to
be built.

 

"This report continues to highlight the ongoing difficulties that
homebuilders are facing as they attempt to work through their current
construction backlog, due to a shortage of labor and elevated material costs
and outright shortages," said Mark Palim, deputy chief economist at Fannie
Mae in Washington.

 

Stocks on Wall Street were trading lower as worries persisted about the
spillover from debt-laden China Evergrande. The dollar slipped against a
basket of currencies. U.S. Treasury prices fell.

 

The coronavirus pandemic sparked an exodus from cities as Americans worked
from home and took classes online. That boosted demand for bigger homes in
the suburbs and other low-density areas, which far outpaced supply, causing
bidding wars.

 

But demand has likely peaked. The National Association of Realtors reported
on Wednesday that sales of previously owned homes fell in August, with house
prices continuing to moderate sharply after posting record increases in May.

 

Some sellers are reducing their asking prices and consumer sentiment towards
buying a home has shifted. read more

 

Demand for housing could cool after the Federal Reserve said on Wednesday it
would likely begin reducing its monthly bond purchases as soon as November
and signaled interest rate increases may follow more quickly than expected.
read more

 

Still, the fundamentals for the housing market remain strong. A tightening
labor market is lifting wages. The new housing market remains underpinned by
an acute shortage of previously owned home.

 

The median new house price shot up 20.1% in August to $390,000 from a year
ago. Prices were unchanged on a monthly basis. Last month, new home sales
remained concentrated in the $200,000-$749,000 price range.

 

Sales in the under-$200,000 price bracket, the sought-after segment of the
market, accounted for just 3% of transactions.

 

There were 378,000 new homes on the market in August. That was the most
since October 2008, and up from 366,000 in July. Houses under construction
made up 62.7% of the inventory, with homes yet to be built accounting for a
record 27.8%.

 

"The need to work through these backlogs should support new home
construction in the months ahead even if the pace of sales moves sideways,"
said Nancy Vanden Houten, a U.S. economist at Oxford Economics in New York.

 

At August's sales pace it would take 6.1 months to clear the supply of
houses on the market, up from 6.0 months in July.

 

The Thomson Reuters Trust Principles.

 

 

 

Google CEO sought to keep Incognito mode issues out of spotlight, lawsuit
alleges

(Reuters) - Google Chief Executive Sundar Pichai in 2019 was warned that
describing the company's Incognito browsing mode as "private" was
problematic, yet it stayed the course because he did not want the feature
"under the spotlight," according to a new court filing.

 

Google spokesman José Castañeda told Reuters that the filing
"mischaracterizes emails referencing unrelated second and third-hand
accounts."

 

The Alphabet Inc (GOOGL.O) unit's privacy disclosures have generated
regulatory and legal scrutiny in recent years amid growing public concerns
about online surveillance.

 

Users last June alleged in a lawsuit that Google unlawfully tracked their
internet use when they were browsing Incognito in its Chrome browser. Google
has said it makes clear that Incognito only stops data from being saved to a
user's device and is fighting the lawsuit.

 

 

In a written update on trial preparations filed Thursday in U.S. district
court, attorneys for the users said they "anticipate seeking to depose"
Pichai and Google Chief Marketing Officer Lorraine Twohill.

 

The attorneys, citing Google documents, said Pichai "was informed in 2019 as
part of a project driven by Twohill that Incognito should not be referred to
as 'private' because that ran 'the risk of exacerbating known misconceptions
about protections Incognito mode provides.'"

 

The filing continued, "As part of those discussions, Pichai decided that he
'didn't want to put incognito under the spotlight' and Google continued
without addressing those known issues."

 

Castañeda said teams "routinely discuss ways to improve the privacy controls
built into our services." Google's attorneys said they would oppose efforts
to depose Pichai and Twohill.

 

Last month, plaintiffs deposed Google vice president Brian Rakowski,
described in the filing as "the 'father' of Incognito mode." He testified
that though Google states Incognito enables browsing "privately," what users
expect "may not match" up with the reality, according to the plaintiffs'
write-up.

 

Google's attorneys rejected the summary, writing that Rakowski also said
terms including "private," "anonymous," and "invisible" with proper context
"can be super helpful" in explaining Incognito.

 

The Thomson Reuters Trust Principles.

 

 

 

Bulk of S&P 500 embraces sustainable accounting standard, foundation says

(Reuters) - More than half of companies in the S&P 500 now use a common
standard from the Value Reporting Foundation to report on topics like carbon
emissions and energy management, indicating executives are paying more
attention to an area likely to face new regulations soon, a foundation
official said.

 

"The market has already got a lot of momentum in the direction the SEC (U.S.
Securities and Exchange Commission) is pushing for," Neil Stewart, director
of corporate outreach for the global nonprofit organization, said in an
interview.

 

As of Aug. 31, 324 companies in the S&P 500 used the foundation's standard,
up from 201 companies at the end of 2020, according to the group, which is
backed by large asset managers including BlackRock Inc (BLK.N) and State
Street Corp (STT.N).

 

The guidance describes how companies in different sectors should disclose
environmental, social and corporate governance (ESG) matters.

 

The standard is also gaining more usage in non-U.S. indexes, the foundation
said. Use of a different ESG effort, the Global Reporting Initiative, has
also grown, with at least 10,000 users worldwide, a spokesman for the
initiative said.

 

The SEC this year requested public comments on how it might direct companies
to report similar material on their climate impact and other areas. read
more Agency officials did not immediately comment on Friday on the status of
the review.

 

In a "sample letter" on its website, the SEC described the sort of questions
it asks of companies currently.

 

These could include questions about litigation risks related to climate
change, or requests for companies to explain why statements made in
voluntary corporate social responsibility reports are different from those
made in SEC filings.

 

"The takeaway for me is that companies should be taking this as an
opportunity to re-evaluate their materiality decisions in climate matters,"
Covington attorney Matthew Franker said.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. SEC delays certain assets from enforcement actions under new disclosure
rule

(Reuters) - The U.S. Securities and Exchange Commission (SEC) said on Friday
that it would delay enforcement of certain assets from a new disclosure rule
for off-exchange securities until Jan. 3, 2022.

 

The new compliance date was due to come into effect on Tuesday.

 

The agency's no action letter, which affects quotes published by broker
dealers for buying and selling of government bonds, does not change or amend
the compliance date for a new rule aimed at stamping out fraud in U.S.
equities markets starting on Sept. 28, 2021, the agency said.

 

The position "concerns enforcement action only and does not represent a
legal conclusion with respect to the applicability of statutory or
regulatory provisions of the securities laws," the agency said.

 

 

Next week's new measure aims to boost investor disclosures by requiring
off-exchange issuers to make accurate, up-to-date financial information
publicly available. These are frequently penny-stock companies that do not
meet the main exchanges' listing standards. read more

 

The requirements have sown confusion in the bond market as bankers, trading
platforms and investors now face intense compliance demands ahead of an
unforeseen month-end deadline.

 

The Financial Times reported this week that the new regulation may stave off
broker dealers from trading in this space and taking on risks for fear of
attracting an SEC enforcement action.

 

Bond trade associations, including the Bond Dealers of America and the
Securities Industry and Financial Markets Association, wrote to regulators
to say amended rules will have a “significant, deleterious effect” on
government and corporate bond markets, and pleaded for an explicit reprieve,
or more time to comply, the FT reported.

 

The SEC's Friday letter is a response to such cries by industry. While
compliance is still mandatory by the Tuesday deadline, the top markets
watchdog said its delay of enforcement actions is meant to allow for the
necessary industry "operational and systems changes" that may lead to
compliance with the rule.

 

 

 

Nasdaq short interest down 0.07% in mid-September

(Reuters) - Short interest on the Nasdaq fell 0.07% in the first two weeks
of September, the exchange said on Friday.

 

As of Sept. 15, short interest fell to about 11.014 billion shares, from
11.023 billion shares as of Aug. 31.

 

Investors who sell securities "short" borrow shares and then sell them, on
expectations the stock price will fall so they can buy the shares back at a
lower price, return them to the lender and pocket the difference.

 

Shorting can also be part of a hedging strategy.

 

The Thomson Reuters Trust Principles.

 

 

 

United Airlines fined $1.9 million for U.S. tarmac delays

(Reuters) - United Airlines was fined $1.9 million Friday by the U.S.
Transportation Department for violating federal rules on long tarmac delays
and ordered to cease future similar violations.

 

The department said between December 2015 and February, United allowed 25
flights to remain on the tarmac for lengthy periods without allowing
passengers to deplane.

 

United said Friday it remains "committed to fully meeting all DOT rules and
will continue identifying and implementing improvements in how we manage
difficult operating conditions."

 

The department said this is the largest fine of its kind ever imposed and
impacted a total of 3,218 passengers. The Biden administration has pledged
to take a tough line on airline consumer actions.

 

United noted "ultimately only 25 out of nearly 8 million flights operated by
United" and its partners warranted "enforcement action" over more than five
years.

 

Carriers are generally not allowed to keep planes on the tarmac for more
than three hours for domestic flights and four hours for international
flights without providing passengers an opportunity to deplane.

 

United must pay $950,000 of the fine, while United was credited with
$750,000 paid in compensation for impacted passengers.

 

The Transportation Department said $200,000 of the assessed penalty shall be
credited to United to develop "a diversion management tool which improves
United’s Network Operations Center overall situational awareness of
system-wide diversions and better allows United to avoid the oversaturation
of airports with diversion flights."

 

United said it "believes there is also a tension between the rules and
operational decisions to position flights to take advantage of windows of
opportunity to get the passengers to their ultimate destination."

 

United added that since 2015 it has made substantial improvements and
investments in its management of diversions.

 

The Thomson Reuters Trust Principles.

 

 

 

Uganda: 'Lift the Ban On Facebook and Widen Phone Coverage'

Kampala, Uganda — It is a constitutional right for every Ugandan to have
access to information but this provision of the Constitution has been
breached by the prolonged ban on internet use and poor network coverage, MPs
have noted.

 

Members of Parliament are concerned that at the time when Covid-19 has
pushed the world to working and studying at home, many areas in Uganda are
not connected to the internet, radio and phone networks.

 

"In my constituency, you cannot talk to people. In this era and century, it
is surprising that certain areas in Uganda are cut off completely. I thought
because we have Covid which is likely to stay, this was the time to find out
how our people deep in the villages will continue to study" said Rushenyi
County MP, Naome Kabasharira.

 

MPs raised these concerns while reacting to a statement by the Minister of
Information, Communications, Technology and National Guidance, Chris
Baryomunsi on the status of the quality of communication services.

Baryomunsi said that the new licenses being given out require the network
providers to extend services to 90 per cent of a given geographical area.

 

"There are areas that are scantly or not covered by the operator's networks.
Persons in these areas are not able to access telecommunications services or
if the services are accessible, the quality is compromised due the resultant
weak network signal," Baryomunsi said.

 

He added that government plans to achieve 100 per cent national coverage
through the Uganda Communications Universal Access and Service Fund which is
under Uganda Communications Commissions.

 

Rubabo County MP, Naboth Namanya asked the minister about the continued ban
on Facebook, when it is the main engine utilised by young people for
information. "You have not articulated to us the reasons for the Facebook
closure. What is the fate of Facebook?" he asked.

MPs complained about the charges on data and airtime saying that telecom
companies cheat users but do not get apprehended.

 

"You just buy data and in a minute, you are told data is finished; even
phone calls, you load airtime and tomorrow they tell you your airtime is
off. This must be solved since we are now having Parliament sessions on
zoom," Namanya said.

 

Legislators also said that government has been adamant about the plight of
people living in border districts and islands over poor network
connectivity. The House learnt from the MPs that people have now resorted to
using networks from neighbouring countries which they feared might pose a
security challenge.

 

"We who live in islands tend to get issues with security but we cannot reach
the people who would help us. We have resorted to using safaricom; when
there is a crime, it is not easy to reach the UPDF marine team," said Peter
Okeyoh (NRM, Bukooli Island).

 

Kibale County MP, Cuthbert Abigaba told Parliament that Uganda outsources
providers based in China to maintain the networks which he said could lead
to poor network connectivity.

 

"You find there is a network shut down in Uganda but the person in charge of
responding is in china. This is also a security concern and other countries
have rejected externalized networks," said Abigaba.

 

Baryomunsi said his ministry is working on a project aimed at widening
network coverage, with a plan to install additional masts in rural areas and
other alternative internet connections such as installing fibers in
premises.-Independent (Kampala).

 

 

Gambia: Minister Blames Lightning for Gamcel's Woes

The Minister of Information and Communication Infrastructure has told
Foroyaa that lightning is the cause of the paralysis of the billing system
of Gamcel. In a telephone interview yesterday, the Minister said that
lightning struck the Gamcel equipment and paralysed the billing system which
facilitates the purchase of credit.

 

The purchase of Gamcel credit has not been possible this week, leading to
substantial losses in revenue.

 

Minister Sillah explained that an order was placed for the replacement of
the damaged part and it was expected to be delivered by Courier yesterday.

 

When it was suggested to the Minister that to avoid loss of revenue of such
magnitude it may be advisable to reserve such vital spare parts, he
explained that a new hybrid billing system that can accommodate up to 5 GB
is currently being installed and work on this will be completed by end of
November. He indicated that installation of such equipment takes time, at
least six months.-Foroyaa.

 

 

 

Nigeria: China Aims High in Bilateral Relations, Trade With Nigeria

Abuja — Chinese Ambassador to Nigeria, Cui Jianchun has said the bilateral
relations and trade between China and Nigeria would soon reach a new higher
level.

 

He made the revelation in Abuja during a media chat to mark the Moon
Festival or Mid-Autumn Festival in China, one of the most important
traditional holidays in the country.

 

He said: "Earlier this year, Nigeria and China co-celebrated the 50th
anniversary of their diplomatic ties. As the 14th Chinese Ambassador to
Nigeria, I have been here for nearly half a year, and I was deeply impressed
that Nigeria is a treasure house, not only of natural resources but also of
human resources. How to develop the bilateral relations based on achieved
gains has always been a key question in my mind."

 

He disclosed that: "In order to usher in an even brighter future for
China-Nigeria relations, I have put forward the 5GIST Nigeria-China GDP
Strategy. Changing times require changing strategy. Solos and duets cannot
meet the demand of our bilateral relations. The two countries need to form
an orchestra to play a symphony within the Belt and Road Initiative (BRI).

"The 5GIST Nigeria-China GDP Strategy is consisted of 4 parts, which are 5G,
5l, 5S and 5T. 5G refers 5 Goals of the Strategy, which are political
consonance, economic cooperation, military & security collaboration,
international coordination and people's communication. 5I refers to five
words initialed with "I", i.e. infrastructure, ICT, value-added industry,
investment (such as in agriculture, aquaculture, mining, oil & gas,
financial integration, etc), and import and export, those are the priority
areas of bilateral cooperation.

 

"5S refers to five words initialed with "S", i.e security, structure, speed,
synergy and supervision, which are conditions for bilateral cooperation. 5T
refers to five words initialed with "T", i.e. thoughts exchange, talents
cultivation, treasure capitalization, technology application and tradition
transcendence, which are guarantees to our cooperation."

Jianchun, who also used the occasion of the celebration to give awards to 50
Nigerians working with Chinese firms in the country, said "in nine days'
time, we will celebrate the 72nd birthday of the People's Republic of China.
Over the past 72 years, China's productivity and overall national strength
have made historic strides.

 

"China's GDP rose from about $10.5 billion in 1952 to $15.7 trillion in
2020, an increase of about 189 times in real terms. From 1979 to 2020,
China's GDP grew at an average annual rate of 9.2%, much higher than the
world economy's growth rate of around 2.7% during the same period, and the
speed and duration of economic growth are rarely seen in the world.
According to the World Economic Outlook database of the International
Monetary Fund, China will account for 17.4 percent of the global economy in
2020."-This Day.

 

 

 

Kenya: MPs Push to Have Kenya Power Board Dissolved

MPs are now pushing to have Kenya Power board members sent home over
procurement fights with the management as problems at the country's sole
electricity distributor soar.

 

Members of the National Assembly's Energy committee accused the Kenya Power
board led by chairperson Vivienne Yeda of snubbing parliamentary summons to
explain irregularities in tendering.

 

Thursday, Nakuru Town East MP David Gikaria, who chairs the Energy
committee, accused the board of disrespecting the authority of Parliament.

 

"This committee has the powers to recommend the dissolution of the Kenya
Power board. This committee oversights Kenya Power. We cannot have a board
that is hell-bent in promoting procurement irregularities as we sit back,"
Mr Gikaria said.

 

Fafi MP Abdikarim Osman revealed that the committee will recommend to the
House to have the Kenya Power board disbanded for disregarding parliamentary
summons as well as promoting selfish procurement interests.

"It is not proper to have a board that is supposed to oversight the
management influence the awarding of tenders. This is conflict of interest
and the board, therefore, has no obligation to continue serving," said Mr
Osman.

 

It is not clear how the MPs will force out the board considering that Kenya
Power is a publicly listed company whose directors can only be removed by
shareholders.

 

Staff pressure

 

The MPs' plan to have the board fired comes after Kenya Power employees
pushed for the disbandment of the board for usurping the mandate of the
management.

 

Through the Kenya Electrical Trades and Allied Workers' Union (Ketawu), the
Kenya Power staff have further accused the board of pushing their selfish
interests in the procurement.

Ketawu specifically singled out the board chair and members Caroline
Kittony, Elizabeth Rogo and Sachen Gudka for pushing lucrative contracts to
Indian and Chinese-owned firms.

 

The failed grilling by the MPs comes after former Kenya Power CEO Bernard
Ngugi was allegedly pushed out by the board during a stormy meeting in
August tas the tender wars at the State facility hit fever pitch.

 

Already, the Ethics and Anti-Corruption Commission (EACC) is investigating
the board members over irregular procurements and a number have recorded
statements.

 

Mr Osman accused a powerful individual he did not name of messing up
operations at the electricity distributor and having it run like his own
business.

 

"This committee will not allow anyone to mess with Kenya Power. We are
independent, the true representatives of the people and we do not take
directions from anywhere," Mr Osman said.

Last year President Uhuru Kenyatta consolidated rail, pipeline and port
operations under the Kenya Transport and Logistics Network (KTLN) and placed
it under the Industrial and Commercial Development Corporation (ICDC).

 

Regional hub

 

Although the President's move was to ensure efficiency in the operations of
four State agencies in the realisation of the country's strategic agenda of
becoming a regional logistics hub, little has been achieved.

 

The Fafi MP further accused the senior government officer he did not name
for blocking payments Sh49 billion payment to a firm that built the
Mombasa-Nairobi pipeline -- Zakhem International Construction (ZIC) Ltd.

 

The delayed payments include the extension of time and final certificate
claims, amounting to about Sh10 billion.

 

The Energy committee also has information that Kenya Power owes Kenya
Electricity Transmission Company (Ketraco) Sh23 billion in unpaid
electricity bills.-Nation.

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Star Africa

AGM

virtual

September 23 -11am

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


 

Public Holiday in lieu of Boxing Day falling on a Sunday

 

December 27

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


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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