Major International Business Headlines Brief::: 08 April 2022

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Major International Business Headlines Brief::: 08 April 2022 

 


 

 


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

 


 

 


ü  Kinder chocolate recalled in US over salmonella concerns

ü  Firms struggle amid Sri Lanka's economic crisis

ü  Canada proposes foreign buyers home real estate ban

ü  Oil giant Shell to take £3.8bn hit by leaving Russia

ü  Manchester Airport boss warns queues could continue for weeks

ü  South Africa: Commercial Fishing - Hout Bay Fishers Say They've Been Left
Out

ü  Nigeria: 'Unchecked Oil Theft, Petrol Subsidy, Debt Servicing Will Push
Nigeria Into Bankruptcy'

ü  Malawi: Government Snubs Calls for Fuel Prices Hike

ü  South Africa: Economic Recovery - No More Time for 'Platitudes'

ü  Nigeria: Poor Electricity - Create 37 Discos to Improve Supply, Engineers
Urge Govt

ü  South Africa: SA Reserve Bank Takes a Step Closer to a National Digital
Currency

ü  ArcelorMittal Liberia Announces New Chief Executive Officer

ü  Russia's central bank says it will stop buying gold at a fixed price

ü  Oil prices drift lower, set for 3% weekly fall due to massive stocks
release

ü  Russian gas flows to Europe dip in line with customer requests

ü  Crypto and gaming collide in high-risk 'play-to-earn' economies

ü  Stocks set for weekly drop as rates reality bites

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Kinder chocolate recalled in US over salmonella concerns

Ferrero has recalled some of its Kinder chocolates from shops in the US over
a potential salmonella contamination.

 

Kinder Happy Moments Chocolate Assortment and Kinder Mix Chocolate Treats
basket are being voluntarily recalled, Ferrero North America said.

 

It comes after the firm recalled its Kinder Surprise chocolate eggs from UK
stores earlier this week.

 

The company said it made the decision because they were made in a factory
where salmonella had been detected.

 

At the time, Ferrero said the affected chocolate was manufactured in Belgium
and the recall could be extended to other countries.

 

It emphasised that no other Kinder or Ferrero products sold in the US were
affected by this recall.

 

"Ferrero is cooperating with the US Food and Drug Administration on reported
cases of Salmonella in Europe," the company said in its latest statement.

 

Some Kinder chocolates have also been recalled in parts of Asia, including
Hong Kong and Singapore.

 

Earlier this week, Kinder Surprise chocolate egg products were recalled over
a link to salmonella cases in the UK.

 

The UK's Food Standards Agency (FSA) had already advised people not to eat
20g or three-pack eggs with best before dates between 11 July and 7 October
2022.

 

Within days Kinder Easter egg hunt kits (150g), Kinder Mini eggs (75g),
Kinder Schokobons (200g) and the 100g Kinder Surprise were also recalled.

 

All the sweets affected were made in the same factory in Belgium.

 

Ferrero, which makes Kinder chocolates, said that it had taken the
"precautionary decision" to voluntarily extend the recall to these products
in the UK and Ireland with best before dates between 20 April 2022 and 21
August 2022.

 

The chocolate-maker said none of its Kinder products released for sale had
tested positive for salmonella, but that it takes the matter "extremely
seriously".

 

The firm added that it was aware of Easter coming up, which usually sees a
jump in sales of Kinder Surprise eggs.

 

It came after more than 60 people in the UK, mostly young children, became
infected with salmonella in an outbreak linked to the Kinder Surprise
treats.

 

On Monday, the FSA said no deaths had been reported in the UK but most cases
involved children aged five and under.

 

Investigations so far have been led by the UK Health Security Agency, Public
Health Scotland, Public Health Wales and Public Health Agency Northern
Ireland.

 

Europe's health agency said on Wednesday it was also looking into dozens of
suspected cases of salmonella linked with eating chocolate in at least nine
countries including the UK, Germany, France and Belgium.

 

It did not mention Ferrero or any other confectioner in a statement, but
warned that the reported cases were mostly among children under 10.

 

The salmonella bacteria can cause serious and severe infections, especially
in children or elderly people and others with weak immune systems.=BBC

 

 

 

Firms struggle amid Sri Lanka's economic crisis

It is a daily struggle for Ranjith Koralage, the boss of a Sri Lankan
clothing manufacturer, to find enough diesel to run his company's machines
and steam rollers.

 

The chief of Kolonna Manufacturing, which is based in Sri Lanka's central
province, has been running from station to station looking for 400 litres of
fuel for the generator - just enough for one day.

 

With long power outages, interruptions have become the order of the day in
factories across Sri Lanka. Thankfully, a generator brings power back up in
some factories. But the fix is temporary with limited fuel.

 

Mr Koralage told the BBC: "Today we survived somehow, but I don't know about
tomorrow."

 

His export unit makes knitted garments for Victoria's Secret, Puma and
Levi's, and is among dozens of clothing factories struggling to meet
production targets.

 

Garments are the second largest foreign exchange earner for the Sri Lankan
economy. The sector had just recovered from the pandemic, with export
earnings increasing by 22.1% to $514m (£393m) in January 2022 compared with
a year ago.

 

Kolonna's order book is full for the next three to six months. But now
disruptions are adding to existing worries around losing business to rivals
in Indonesia, Bangladesh and Vietnam.

 

"If [the] government doesn't provide fuel we have to stop production, that
affects customers' deliveries. Our clients are already asking us daily if we
will be able to complete the orders in time or not," Mr Koralage says.

 

Sri Lanka is facing its worst financial crisis in decades, with foreign
exchange reserves shrinking by more than 16% to $1.93bn in March, central
bank data showed on Thursday.

 

Kolonna Manufacturing is a prime example of the model of economic
development that Sri Lanka wanted: a factory in the island nation's
hinterland that creates local jobs. It employs 800 workers, all from the
region, including its chief executive Mr Koralage.

 

The unit makes garments for export and generates almost $140,000 a year for
the local villages.

 

But it is now stuck in a vicious cycle. The dollar shortage has left the
country struggling to pay for imports including food, medicine and fuel.

 

Even Sri Lanka's power plants are struggling to maintain operations. Long,
rolling, power cuts are crippling businesses, especially export-oriented
ones that are capable of earning the much-needed dollars.

 

Exporters like Kolonna typically lock in orders at fixed prices and have
limited capacity to absorb rising costs. While a weaker Sri Lankan rupee
benefits exporters, rising costs are draining all positives.

 

This affects both the business and its employees. Mr Koralage says as the
cost of living goes up, retaining skilled workers will be another yet
challenge.

 

Transport troubles

It's not just sewing machines that have to keep running. Workers also need
to get to factories, something made more difficult with almost 50% of public
transport not operating.

 

In the town of Embilipitiya, some 25km (15.5 miles) from Kolonna
Manufacturing, the queues were along although the bus station was less busy
than usual.

 

30-year-old Chathuri Dileeka, who works as an office assistant, had been
waiting for over an hour. "Earlier I used to get a bus in 15 minutes, now I
have to wait one to two hours. Sometimes the bus stops midway with no fuel,"
she told the BBC.

 

She has a motorcycle at home for shorter commutes but with petrol pumps
running dry, even that now stands idle, she said.

 

A group of drivers waiting for their next customer say the number of
journeys they have made on longer routes has fallen by a third.

 

Operators have stopped running buses on some less busy routes in order to
ration the available fuel.

 

"[The] situation was not so bad even during Covid lockdowns. That was a
crisis that the entire world faced, but this only we are suffering. I had
never imagined a life like this, standing in fuel queues for days," a driver
who has been been in the job for 20 years told the BBC. He did not want to
be named.

 

Transport services had completely stopped last week when the government
announced that it was closing down the supply of diesel for two days, due to
offloading issues at ports.

 

Container trucks leaving the ports with essentials to be transported to the
rest of the country are also waiting in kilometre-long queues for days,
exasperating shortages.

 

The beach town of Hikkaduwa, 130km south of Colombo, looks deserted. Once
bustling with tourists from Europe and Middle East, the streets are now
empty.

 

Nelaka Gunarathne opened his 30-room hotel to guests late last year after a
three-year hiatus. After a six months of good business, Mr Gunarathne is
faced once again with silent lobbies and empty rooms.

 

Tourists are leaving as hotels like his struggle to provide even the most
basic services expected by guests.

 

Power cuts and shortages of essentials have hit hopes of a recovery, even
for the tourism sector which is crucial to Sri Lankan economy. The industry
collapsed during the pandemic, which was a key reason for the country's
depleted foreign exchange reserves.

 

Most mid-sized and small-sized firms do not have a generator for back-up
electricity as the country has not faced major power cuts in the past.

 

As it attempted to stop foreign currency leaving the country, Sri Lanka's
government placed import restrictions on certain items.

 

That led to shortages and sudden price rises for essential foodstuffs
including milk powder and rice. Headline inflation has risen to more than
17% in recent weeks, while food inflation is above 20%.

 

With even a cooking gas refills uncertain, restaurants are closed and hotels
say retaining guests is a challenge. Mr Gunarathne said 80% of his bookings
were cancelled between March and April.

 

"Guests have been calling to ask if the curfew will continue or will they
get food? We really don't have answers for anything. When we are ourselves
struggling to buy basic needs, how do we promise guests?" he said.

 

Sri Lanka became a popular tourist destination due to its pristine beaches
and rich local culture. But now protests on the streets are casting a shadow
over its image as a safe place to go on holiday.

 

The US State Department has raised its threat level and issued a level 3
travel advisory for American citizens against travel to Sri Lanka. India's
largest airline Air India has reduced the number of flights to Sri Lanka due
to lower demand.

 

What Sri Lanka needs now is economic and political stability to enable its
factories to run smoothly and to bring tourists back to its shores.=BBC

 

 

 

Canada proposes foreign buyers home real estate ban

Canadian Prime Minister Justin Trudeau has proposed a two-year ban on some
foreigners buying homes.

 

The measure comes as the country grapples with some of the worst housing
affordability issues in the world.

 

Prices have jumped more than 20%, pushing the average home in Canada to
nearly C$817,000 ($650,000; £495,000) - more than nine times household
income.

 

But industry analysts say it's not clear a ban on foreign buyers will
address the problem.

 

Data on purchases by foreign buyers in Canada is limited, but research
suggests they amount for a small fraction of the market.

 

"I don't think it's going to have a huge impact," said Ben Myers, president
of advisory firm Bullpenn Research & Consulting in Toronto, who found
foreigners accounted for just 1% of purchases in 2020, down from 9% in 2015
and 2016.

 

"It's a fairly low number and let's face it, the people that really want to
buy ... are going to find alternative ways to do it."

 

Mr Myers said the soaring housing costs reflect strong population growth and
a shortage of supply, due in part to rules that restrict development.

 

The issues have worsened since the pandemic hit in 2020, when policymakers
in Canada and elsewhere slashed interest rates to stabilise the economy,
lowering borrowing costs and boosting demand even further.

 

The moves have fuelled the soaring housing prices seen in many markets
around the world, but in Canada the disconnect between home prices and
incomes is one of the most dramatic, according to OECD data.

 

Campaign promise

Mr Trudeau pledged to tackle housing affordability during his campaign for
election last year.

 

In addition to the temporary ban on foreign buyers, the budget proposal his
government unveiled on Thursday sets aside billions to spur new construction
and proposes new programmes, such as a tax-free savings account for
first-time buyers.

 

Mr Trudeau has also discussed banning certain bidding processes that favour
investors, who by some measures have accounted for about one in five homes
purchased in Canada since 2014.

 

The proposed ban on foreign buyers would exempt permanent residents and
foreign students and workers, as well as those buying their primary
residence.

 

The proposal builds on actions such as special taxes that some parts of
Canada have already taken against out-of-town and foreign buyers.

 

In Ontario, for example, provincial Premier Doug Ford recently announced
plans to raise an existing tax on foreign buyers from 15% to 20% and expand
it beyond Toronto to the entire province.

 

While foreign purchases are not the driver of the affordability issues,
taxing them at least captures revenue that can be re-deployed to address
such problems, said Steve Pomeroy, head of Focus Consulting, a housing
policy firm.

 

"If you ban them, you don't really have much of an impact on suppressing
rising home prices and you give up the revenue," he said.

 

New Zealand introduced a similar measure banning foreign buyers in 2018.

 

"It's good politics because it's easy to blame a victim that nobody cares
about," Mr Pomeroy added. "I don't think it will have much of an impact."

 

Paul Kershaw, professor at the University of British Columbia and founder of
Generation Squeeze, also said he saw little in Mr Trudeau's proposal likely
to slow price increases or significantly address affordability.

 

"It's not clear the housing measures will be sufficient to break Canada's
addiction to high and rising home prices," he said, noting that for existing
homeowners, the high prices help amass wealth.

 

Mr Pomeroy said he does expect price appreciation to slow in coming months,
as the central bank raises interest rates. The Canadian housing market is
particularly susceptible to such moves, since many buyers rely on five-year
mortgages rather than the long-term ones common in the US and UK.

 

But higher interest rates will only make it less affordable for prospective
buyers trying to break into the market, he warned.

 

Mr Myers said over the long-term, he expects hot markets such as Toronto and
Vancouver to become dominated by renters, as regular buyers get priced out
of the market, unless politicians address supply.

 

But Mr Pomeroy said high development costs means that adding supply will not
necessarily reduce prices, unless the additions are dramatic.

 

"Unless you've got born into the right family ... the prospects for young
buyers are quite dim," he said.=BBC

 

 

 

Oil giant Shell to take £3.8bn hit by leaving Russia

Oil giant Shell has confirmed it will take a hit of up to $5bn (£3.8bn) from
offloading its Russian assets as part of plans to withdraw from the country.

 

The firm has pledged to no longer buy oil, but contracts signed before the
invasion of Ukraine will be fulfilled.

 

The costs of Shell no longer doing business in Russia include quitting joint
ventures with Gazprom.

 

Shell was criticised when it bought Russian crude oil at a cheap price
shortly after the war began.

 

In response to the outrage, the company apologised and pledged to stop
buying oil from Russia.

 

The company said it would cost between $4bn and $5bn to cut ties with the
country.

 

"Shell has not renewed longer-term contracts for Russian oil, and will only
do so under explicit government direction, but we are legally obliged to
take delivery of crude bought under contracts that were signed before the
invasion," the company said.

 

The oil firm added that the state of the global oil markets remained
"volatile".

 

Brent Crude - the global benchmark for oil prices - was trading at about
$100 a barrel early on Thursday, but its price has risen to record levels
since the war in the Ukraine.

 

The rise in oil prices is due to Russia being one of the world's largest
exporters of the commodity and fears of supplies being disrupted because of
the conflict.

 

Though the UK gets very little of its oil from Russia, it has been affected
by the global rise in prices, which has seen petrol and diesel prices hit
record levels.

 

As part of Shell's withdrawal plans, the company said previously it would
offload a 27.5% stake in a Russian liquefied natural gas facility, a 50%
stake in an oilfield project in Siberia and an energy joint venture.

 

It will also end its involvement in the Nord Stream 2 pipeline between
Russia and Germany, which has been put on hold by ministers in Berlin.-BBC

 

 

 

Manchester Airport boss warns queues could continue for weeks

Long queues at Manchester Airport could continue for weeks, with some people
facing waits of up to 90 minutes, the airport's deputy chief executive says.

 

Travellers have recently faced long waits for check-in and security, with
the airport blaming staff shortages.

 

Ken O'Toole told the BBC the chaotic scenes last weekend were an "isolated
incident".

 

But he said he believed people would prefer to queue than see their flight
cancelled.

 

It comes as travel organisation Abta said that travel bookings for this year
are approaching pre-pandemic levels. Jet2, the second biggest holiday
operator in the UK, is operating more flights this Easter than in 2019, for
example.

 

Mr O'Toole said the speed of the recovery for the travel sector since Covid
restrictions eased had taken the airport by surprise, leaving it
short-staffed.

 

He said 220 new staff had been recruited, who were currently being trained
and would start work over the coming weeks.

 

In the meantime, he urged travellers to be prepared for longer waits and to
arrive three hours in advance to ensure they do not miss their flights
around the Easter holidays.

 

Ken O'Toole, deputy chief executive of Manchester Airport, said people may
face waits of up to 90 minutes in the next month or so.

"We want to protect the full flying schedule. We want to make sure that
after two years of people not getting away, those trips that they have
booked, they can take them," he said.

 

"That unfortunately does mean on occasion there will be queues which are not
acceptable, they're not what we're aiming for.

 

"But the compromise between having that situation or cancelling lots of
flights for people - which other airports have done in recent weeks - we
believe people would prefer to accept a queue and make sure they get away."

 

'Excessive delays'

It comes after the boss of the airlines watchdog wrote to UK airlines
expressing frustration and concern for holiday-makers.

 

"As we emerge from the worst of the pandemic and consumers take advantage of
the freedom to travel, instances of late notice cancellations and excessive
delays at airports are not just distressing for affected consumers but have
the potential to impact confidence levels across the industry", Richard
Moriarty, the chief executive of the Civil Aviation Authority, wrote on
Thursday.

 

He called on airlines and airports to work together to ensure disruption is
"kept to a minimum".

 

Mr Moriarty also stressed that airlines should offer passengers a choice of
a refund or alternative travel arrangements with their carrier or another
airline when plans are disrupted.

 

The warning came after EasyJet cancelled dozens of flights each day this
week, blaming Covid absences. British Airways has also scrapped some
flights, although most had been made in advance.

 

Ferry passengers have also seen disruption, with the no-notice sackings of
hundreds of P&O Ferries staff placing pressure on other operators while
demand for travel has picked up.

 

Thousands of holiday-makers have seen their travel plans disrupted or
cancelled due to staff shortages.

Mr O'Toole acknowledged the next four to six weeks would still be a
"difficult period" for Manchester Airport, with some passengers facing
queues of 60 to 90 minutes.

 

But he said the majority would only wait for 30 to 40 minutes, compared to a
target of 15 minutes in normal times, while some people would get through
quicker.

 

Asked why other airports had not faced such severe disruption, Mr O'Toole
suggested there were issues "across the sector" but Manchester had been hit
by problems earlier because it was recovering more quickly than its
competitors.

 

On Tuesday, Manchester Airports Group said its managing director Karen Smart
was standing down, amid criticism of long queues for security and check-in
that led to some passengers missing flights.

 

The problems first came to light in mid-March when travellers were left
waiting for hours, with some forced to queue outside in the car park.

 

Travel organisation Abta said its members were reporting holiday bookings
returning to pre-pandemic levels.

 

An Abta spokesperson said: "Easter is usually a busy time of year for travel
and we expect that to be the case again this year, particularly as this is
the first bank holiday where you don't need to do anything in terms of
Covid-19 requirements when returning to the UK."

 

The Airport Operators Association boss Karen Dee also said she was pleased
to see passengers returning in great numbers.

 

"This late surge in bookings was partly driven by government removing the
final remaining travel restrictions as recently as 18 March," she suggested.

 

She added that staff shortages and the fact that many passengers are still
having to present Covid-related documents at check-in are increasing the
time taken to move through airports.

 

"Airports are putting all available staff on the front line," she said.

 

"This means that for most passengers, although the journey through the
airport may be busy, airports are getting them away on their holidays
safely."=BBC

 

 

 

South Africa: Commercial Fishing - Hout Bay Fishers Say They've Been Left
Out

Hout Bay fishers have taken issue with the fishing rights allocation process
for this year.

 

They want 50% of quotas to go to small-scale fishers, instead of the tiny
quotas they currently get.

 

The government defended its allocations, saying fish resources are finite
and therefore it cannot accommodate all those that apply.

 

Applicants have until the end of April to appeal.

 

Fishers in Hout Bay are angry at the outcome of the Fishing Rights
Allocation Process (FRAP) announced in February, saying it is too hard for
small fishers to enter the commercial fishing industry.

Small-scale fishers depend on relatively small quotas.

 

In the case of hake, one of the most lucrative sectors, commercial fishing
currently gets 98.5% of the quota and small-scale fishing gets 1.5%. In the
case of squid, commercial fishing quota is 85% and small-scale 15%.

 

The Department of Forestry, Fisheries and the Environment allocates large,
much more lucrative, commercial fishing rights every 15 years for twelve
species.

 

The last time these large allocations were made was over a decade ago. The
department announced new allocations on 28 February, but most of these went
to large companies who already had fishing rights.

 

Far fewer permits were given to small-scale fishers.

 

Only three species -- hake, squid and lobster -- are even eligible for
quotas this year to small-scale fishers.

 

Fishers who applied to make the jump to the commercial sector and who were
unsuccessful have said that the big companies get too much and there is not
enough for new entrants. They also complained about the high prices to apply
-- about R40,000 for Hake Deep Sea Trawl for example.

In the case of South Coast Rock Lobster, only two new licences were granted,
compared to seven granted to those who already held permits. The current
permits are held by big companies such as Oceana and Premier Fishing.

 

For Hake Deep Sea Trawl, only four new applicants were successful, compared
to 25 applicants who already fish in the sector commercially - including
I&J, Sea Harvest, and Premier Fishing.

 

There were over 2,000 applications.

 

Bigger companies would have to get lower quotas if small fishers are to be
accommodated, said Ikram Halim, a fisher from Hout Bay. Halim has been in
the industry for nearly 35 years and represents a cooperative of small-scale
fishers in Hangberg, whose application was rejected. A disappointed Halim
said that fishers saw FRAP as an opportunity to finally get their quota.

 

At the end of March, the department announced that an appeal process will be
open until the end of April. Applicants unhappy with the outcome were
invited to lodge an appeal.

 

But fishers are sceptical that the appeals process will change the status
quo. Only a small percentage of the catch has been set aside pending appeals
- just over 2% in the case of hake and nothing in the case of rock lobster.
Fisher John Reed said that this is unacceptable.

 

Reed said that the department's Marine Living Resources Act states that more
inclusivity is needed and more people should be allowed to enter the
commercial fishing sector.

 

He said that the fishing community plans to petition for a new bill that
will be more "accommodating for our indigenous fishers". Reed said that 50%
of the rights need to go to indigenous fishers.

 

Darrel September, a small-scale fisher, said that his family has been in
Hout Bay for nearly 150 years. "My father was a fisherman ... We've always
been classed small-scale."

 

September's application was also unsuccessful. He makes about R20,000 a year
on lobster he is allowed to take out according to his small-scale quota.

 

In response to questions, department spokesperson Albi Modise said every
applicant had an equal opportunity to secure commercial fishing rights.

 

"The department is aware that a number of applicants were not successful and
will therefore naturally be unhappy. Fish resources are finite and, in many
instances, dwindling. It is therefore simply not possible to accommodate all
those that apply. This does not make the process unfair," said Modise.

 

Modise said that successful applicants had been notified that their current
allocations are not final and are subject to the conclusion of the appeals
process.

 

The appeals process closes on 29 April.-GroundUp. 

 

 

 

Nigeria: 'Unchecked Oil Theft, Petrol Subsidy, Debt Servicing Will Push
Nigeria Into Bankruptcy'

An Economist and Founder of the Centre for the Promotion of Private
Enterprise (CPPE), Dr. Muda Yusuf, has warned the federal government that
unchecked crude oil theft, sustenance of petrol subsidy at its current rate
and debt servicing would wipe out the government's expected revenue of N10.7
trillion in 2022 and plunge the country into bankruptcy.

 

Yusuf also tasked the government to pull the country's economy from the
brink by addressing the challenges posed by economic headwinds experienced
in the first quarter of 2022, which included rising insecurity, escalating
energy cost and worsening exchange.

He sounded the warning yesterday during a quarterly press conference on the
economy that was hosted by the CPPE in Ikeja, Lagos State, where he said
that "with current subsidy trajectory, subsidy cost would not be less than
N4 trillion by the end of this year. This is clearly a major source of
disruption and dislocation for the finances of government at all levels."

 

He added that "unbridled pipeline vandalisation, illegal refineries, oil
theft, attacks on oil installations among others" were threat to the
economic survival of the nation and urged the government "to take urgent
steps to pull the economy from the brink."

 

Yusuf also commented on the implication of sustaining the current petrol
subsidy on the economy. "We will see an increase in subsidy payment as the
landing cost of petrol increases. Regrettably, we remain a major importer of
petroleum products. Therefore, when oil prices increase, subsidy payment
also surges. Only recently the estimate of subsidy was put at N3 trillion by
the NNPC. That was before the Russian invasion of Ukraine.

 

"The story would have changed now. We should expect subsidy payment to
exceed the N3 trillion by the end of the year, depending on how long the
sanctions and invasion lasts. This of course has very serious implications
for our budget and government finances.

 

"If crude oil price remains at current levels, and the PMS price remains
fixed, the country may be teetering on the brink of bankruptcy. Current
subsidy payment regime is simply not sustainable. The deregulation dialogue
needs to urgently resume to save the economy from further deterioration," he
said.

 

He regretted that Nigeria's dysfunctional policy and regulatory environment
in the oil and gas sector have been denying the country the benefits of
rising crude oil prices in the international market. "This is why the surge
in crude oil price, rather than be a blessing, penalises the Nigeria
economy. This is the paradox we are confronted with. This is because of the
inherent higher subsidy cost. This would escalate the fiscal deficit and
increase public debt, which will translate to increased borrowing," he
said.-This Day.

 

 

 

Malawi: Government Snubs Calls for Fuel Prices Hike

Government says it will not be pushed to hike fuel pump prices in the
country.

 

Minister of information Gospel Kazako said this during a press conference
with minister of Energy Ibrahim Matola amid pressure from opposition
Democratic Progressive Party (DPP) and some economic experts to raise the
prices of fuel following global markets.

 

But Kazako said that the reason why fuel prices have not been adjusted
upwards is because there are other critical issues to be considered first.

 

With an indication that prices will nonetheless be hiked, Kazako said that
the hike will not be because other sections of the public have made
recommendations.

 

Energy minister Ibrahim Matola said Malawi Energy Regulatory Authority
(Mera) will announce the fuel prices at an appropriate time.

 

Calls for speedy fuel hikes have recently come from the opposition
Democratic Progressive Party, Consumers Association of Malawi and Malawi
Commerce of Chambers and Industry, among others.-Nyasa Times.

 

 

 

South Africa: Economic Recovery - No More Time for 'Platitudes'

President Cyril Ramaphosa says government has made a concerted and concrete
effort to rebuild the South African economy following the devastation caused
by the COVID-19 pandemic on global economies.

 

The President was speaking during the launch of the Oxford Handbook of the
South African Economy on Wednesday. The book takes a wide-ranging look at
the South African economy and the challenges it is facing.

 

"The COVID-19 pandemic has depressed economic activity, disrupted global
supply chains and deepened inequality. South Africa's economy has similarly
been severely affected.

 

"While the economy expanded by 4.9% in 2021, the impact of the pandemic
continues to be felt throughout the economy and society. And we know that
there is yawning gap between where we are and where we need to be," he said.

The President highlighted that government's decision to widen the social
security safety net through the R350 Social Relief of Distress Grant which
reaches at least 10 million people, only partly addresses the economic
vulnerability that millions of South Africans were plunged into as a result
of the pandemic.

 

President Ramaphosa added that unemployment - as a root cause of this
economic vulnerability - needs to be addressed to ensure that "no-one is
left behind" in South Africa's economic recovery and reconstruction.

 

"Over the past few months, we have been in engagements with social partners
to craft a social compact for job creation and economic growth. This compact
will complement the Economic Reconstruction and Recovery Plan with a sharp
focus on employment.

"As we emerge from the worst of the pandemic, we recognise that the crisis
of economic exclusion that threatens to engulf this country can only be
overcome through concerted action by all social partners. This social
compact will focus on a clear set of actions by each social partner," he
said.

 

Addressing declining GDP per capita

 

President Ramaphosa highlighted that throughout the past five decades, the
country's Gross Domestic Product per capita has been on a steady decline
with other countries surging in the opposite direction.

 

"We have to ask ourselves: why are we falling behind? The democratic
government has developed inclusive policies and arrested this trend of
divergence. But there is consensus that far more is required.

 

"With an economy stuck in low gear, battered institutions and declining
productivity, an important strand of economic policy making over the past
four years has been on fixing the fundamentals of the economy," he said.

 

A reformed and recovering economy

 

Despite all of the challenges facing the economy, President Ramaphosa said
government's reform agenda to create a more efficient government and
business environment is fully underway.

 

Government's reforms extend to, among others, addressing the nation's water
and electricity supply, ensuring ease of doing business in the country,
addressing climate change and raising skill levels within the workforce.

 

"Early [reform] successes include opening up the space for private sector
energy generation accompanied by measures to create a competitive market
structure in the electricity supply industry. Pro-competitive measures are
also being implemented in ports and freight rail.

 

"The digital sector will receive a boost with the resolution of long-delayed
processes of licensing of high demand spectrum and digital migration of
broadcasting. Reforms... will ensure better management of the nation's water
resources through measures aimed at improving allocation of rights, pricing
and the monitoring of quality.

 

"To unleash the energy of the private sector... we have [also] created a Red
Tape Reduction team in the Presidency to remove regulatory impediments to
entry and growth," he said.

 

The President emphasised that the country has moved beyond the point of
offering talk shops on economic recovery and is now working to achieving it.

 

"This is the time to move beyond platitudes towards a clear set of
commitment underpinned by concerted resource mobilisation by all parties. We
trust that the analytical work produced by this intellectual community will
guide and enrich this effort," President Ramaphosa said.-SAnews.gov.za.

 

 

 

Nigeria: Poor Electricity - Create 37 Discos to Improve Supply, Engineers
Urge Govt

To ensure efficient power supply to the over 10 million registered
electricity consumers, the Nigerian Institution of Power Engineers (NIPE)
has urged the federal government to create 37 Distribution Companies
(DisCos) for the states and the FCT.

 

Speaking during a press conference in Abuja on Wednesday, president of NIPE,
Engr Israel Abraham, said the current arrangement with 11 DisCos, where some
had over four states in their franchise areas, had contributed to the poor
power supply as it was too big for the operators to handle.

 

Engr Abraham noted that the Nigerian Electricity Regulatory Commission
(NERC) could create a state-by-state franchising for the DisCos which would
help the operators to manage the system better and have state governments
investing more in the networks.

He said, "There is a need to renegotiate the DisCos' franchise areas to more
manageable sizes. State-by-state basis for franchising is recommended. This
will increase efficiency in power supply as each company will have enough
funds to adequately invest to meet needs while the host state will find it
economically convenient to partner as an investor with a dedicated DisCo to
make life better for its citizens."

 

NIPE also disapproved of the current regulatory strength, saying it was
weak.

 

Abraham said, "Nigeria has a weak regulator at the moment. The regulator
alone would have been strong but for the political hindrances. It (NERC) is
yet to master the game of balancing regulation and politics.

 

"NERC is not able to enforce its own regulations and the frequent government
interference has led to confusion in the power sector and is complicating
the problems."

 

The institution also sought a directive by NERC to the system operator to
coordinate Generation Companies (GenCos) and the Transmission Company of
Nigeria's (TCN) expansion and maintenance programmes to ensure that there is
a time during the year, a minimum of say 6,000MW of generated power and TCN
wheeling capacity."

 

Also in the long run, NIPE backed the splitting of TCN into the Independent
System Operator (ISO) and the Independent Market Operator (IMO) for more
effective and efficient management of the electricity market.

 

Abraham further said, "The Nigerian Bulk Electricity Trading (NBET) should
be phased out after satisfying the conditions precedent to bilateral
contracts between willing buyers and willing sellers in the electricity
market."

 

The engineers also urged the federal government to grant the power sector a
five-year forex window for the importation of equipment and spare parts,
while tasking experts to build local capacity.-Daily Trust.

 

 

 

South Africa: SA Reserve Bank Takes a Step Closer to a National Digital
Currency

The South African Reserve Bank, in collaboration with the Intergovernmental
Fintech Working Group, this week released a second report looking at the use
of distributed ledger technology for interbank payments settlement, taking
it one step closer to a national cryptocurrency.

 

Project Khokha 2 was launched just over a year ago, in February 2021, and
the participating financial institutions were Absa, FirstRand, Nedbank,
Standard Bank and the JSE. While global financial systems have steadily
progressed over the last 50 years, moving from physical ledgers to digital
ledgers, the next step is tokenisation - where different traditional assets
such as money and securities are represented as tokens on distributed ledger
technology (DLT) platforms. One of the most popular applications associated
with DLT platforms is blockchain technology, which houses cryptocurrencies
such as bitcoin and ethereum.

 

"Several central banks are exploring the viability of tokenised central bank
money in financial markets. Such exploration is important given the growth
in technological innovation and the use of new forms of payment
instructions," says Lesetja Kganyago, the governor of the SA Reserve Bank
(Sarb).

 

Project Khoka 2 saw the creation of two forms of tokenised money to allow
for settlement. The first was a tokenised form of... Daily Maverick.

 

 

 

ArcelorMittal Liberia Announces New Chief Executive Officer

ArcelorMittal Liberia has announced Joep COENEN as the new Chief Executive
Officer (CEO).

 

Joep COENEN joins ArcelorMittal from Ambatovy JV in Madagascar where he led
the mining team as Director, Mining Operations. He has worked in mining
operations across the world including Australia, Papua New Guinea, Guinea,
Mauritania, Ghana, as well as Liberia, for various companies, on projects,
and in both underground and open pit operations.

 

The announcement of new CEO COENEN to oversee ArcelorMittal Liberia was made
Wednesday, March 1 by Stefan Buys, Executive Vice President and CEO,
ArcelorMittal Mining.

 

In his message CEO Buys heartedly welcomed the new ArcelorMittal Liberia CEO
COENEN and wished he and the team in Liberia all the best.

 

CEO COENEN replaces Scott Lowe.

 

European Union Parliament Responds to ArcelorMittal in Liberia Question

 

The European Union (EU) High Representative and Vice-President Josep Borrell
on February 1, 2002 responded to a question that was raised by Romanian MEP
Ramona Strugariu in the EU Parliament back in December 2021, which raised
concerns about ArcelorMittal Liberia's Mineral Development Agreement (MDA)
with the Government of Liberia.

 

High Representative Borrell responded that he was aware of the ongoing
ratification of the amended ArcelorMittal Liberia MDA and described the deal
as the largest in the country and will be one of the largest mining projects
in West Africa.

 

The full text of the response is as follows:

 

"The High Representative/Vice-President is aware that the Government of
Liberia and Arcelor Mittal (AM) reached an agreement, which is currently
under ratification by the Congress of Liberia, to amend the Mineral
Development Agreement (MDA) and to expand mining and logistic operations of
the company in Liberia. The AM investment is by far the largest in the
country and will be one of the largest mining projects in West Africa. One
of the objectives of the amended MDA is to share the railway among the three
mining companies in Liberia and in Guinea so that transport services are
open to the two other mining companies in Guinea."

 

"The EU is promoting good governance and the rule of law and supporting
sustainable and inclusive development in its policy dialogues and
cooperation with partner countries including Liberia. This includes the
promotion of human rights and responsible business conduct in line with
United Nations Guiding Principles, and applies to all sectors of
intervention, including mining.

 

"There are benefits for the country and its citizens, foreign investments
being essential for Liberia's development. For the EU this investment, with
its link to the viability of a decarbonised steel industry in Europe, is of
high importance.

 

"The EU will continue its dialogue on economic governance with the
government, to support responsible mining practices in compliance with the
internationally agreed labour and environmental standards and the Extractive
Industries Transparency Initiative."

 

In September 2021, the Government of Liberia and ArcelorMittal signed a
landmark amendment to the company's Mineral Development Agreement ('MDA')
which paved the way for additional investment of an approximately USD $ 800
million to expand the ccompany's mining and logistics operations in Liberia.

 

With the MDA amendment coming into effect, ArcelorMittal Liberia will
significantly ramp up production of premium iron ore, generating significant
new jobs and wider economic benefits for Liberia. The expansion project
encompasses processing, rail and port facilities and the construction of a
new concentration plant as well as the substantial expansion of mining
operations, with the first concentrate expected in late 2023, ramping up to
15 million tonnes per annum ('mtpa').

 

More than 2000 jobs are expected to be created during the construction
phase, with Liberians envisaged to fill the majority of the roles created.
As the largest foreign investor in Liberia, ArcelorMittal Liberia has
already invested over $1.7 billion in the country over the past 15 years.

 

Under the new amendment, AML's annual CSDF payments will increase up to $3.5
million after the amendment is ratified. Currently, 20% of the CSDF is being
allocated to specific programs selected by the counties and communities,
which AML is financing directly to the communities. With Government agreeing
to direct 100% of CSDF contribution directly to the 3 counties, a huge
opportunity will be created for the undertaking of many other community
development programs in these 3 counties.

 

AML's contribution to Government revenues (from royalties, taxes, duties,
etc), will increase from the current level of USD $30-40 million annually to
approximately $75 million annually when Phase 2 is ramped up.

 

ArcelorMittal Liberia Mine Communities Vow to be Peace Ambassadors

 

Residents of ArcelorMittal Liberia communities of impact in Nimba have
committed to peacefully engage with the company in resolving issues, void of
violence.

 

The residents made the commitment at a one-day consultative meeting during a
visit with Internal Affairs Minister, Varney Sirleaf, and a team of AML
executives, headed by interim CEO, Mahama Haidara, in Gbapa.

 

As a testament to their commitment, the residents in a display of honor on
February 18 gowned Minister Sirleaf and Interim CEO Haidara and also
bestowed on them the Mano names of Gonotee and Kehwaillian, as their
respective traditional names.

 

Mr. Haidara thanked the communities for their peaceful resolution and
promised that the company will play its part to sustain the friendly
relationship.

 

"It is good that when there is an issue, we sit together like this to
discuss and fix it objectively, and I am sure that this type of meeting will
continue," he said.

 

He also welcomed the communities' commitment to peaceful co-existence. "We
will be here for a long time when the MDA is finalized. If the community is
not happy, it will be difficult to make business and if business does not
run smoothly, it will be difficult for us to develop the community. It means
we are two legs of one body."

 

AML Head of Government and Community Relations Marcus Wleh said the
citizens' concerns including scholarships and training for the young people
were being highly considered by the company.

 

He said the company will also ensure that the 20 percent withheld from the
annual County Social Development Fund contribution for development projects
in communities directly impacted by the company's operations is used
appropriately.

 

Wleh disclosed that AML has also undertaken various projects to enhance
community development around its operational areas.  Among them are the
$35,000 Zolowee school renovation project and the $35,000 Gbaapa community
clinic project (all ongoing), and the $45,000 G.W. Harley Hospital
renovation project and others.

 

For his part, Internal Affairs Minister Varney Sirleaf assured the citizens
of the government's continued support and called on them to remain truthful
to their promise to be peaceful and not to obstruct the operations of the
company.

 

"You heard all that ArcelorMittal has done and said it will do.  And having
this sacrifice means you have agreed to approach every issue peacefully,
seeing to it that the government and everyone else has failed before putting
the Bushmaster on the train track.

 

Celebrating Academic Excellence as AML High School Graduates 22 with 100%
Success in WASSCE Exam

 

Twenty-two (22) young Liberian teenagers at the weekend excitedly waved
goodbye to high school, as they walked out of the walls of the ArcelorMittal
Liberia (AML) High School in Yekepa.

 

All students at the AML High School who sat the 2021 West African Secondary
School Certificate Exam (WASSCE) made a successful pass.

 

Hundreds of family members, parents of the graduates, and well-wishers
graced the colorful ceremony held in the Yekepa Theatre and commended
ArcelorMittal Liberia for investing in the future of their children by
providing free and top-quality high school education for them.

 

Speaking Saturday during the graduation ceremony of the senior students, AML
Superintendent of Schools, Peter Zuagar said the class valedictorian, Victor
Lablah was named among students nationwide who passed at least five
subjects, including Mathematics and English with laudable credits, while
15-year-old female student, Princess Mendee who became the salutatorian,
also got a Division-two ranking in the exam.

 

Zuagar attributed the achievement to early preparation as well as support
received from AML management and the commitment of the teaching staff. In
addition to the school's remarkable performance in WASSCE, he said the
third, sixth, and ninth graders from the school also performed excellently
in the WAEC exam.

 

He also commended teachers at the school, for working tirelessly to bring
pride to the school.

 

Presenting the students for graduation the AML High School Principal, Juwle
Kumeh, praised the AML management and members of the teaching staff, for
their commitment to making the school second to none in the Republic.

 

Nimba University President, Dr. Jesse Noah Mongrue who delivered the keynote
address, lauded ArcelorMittal Liberia for the provision of quality education
for workers' children, at no cost.  He said Liberians should make education
a major priority if the country is to develop.

 

"Without prioritizing education, we will have no foundation as Liberians.
Emphasis should be placed on the importance of education for Liberia to have
the foundation it needs," he said.

 

The graduation was the 14th of the ArcelorMittal Liberia High School.

 

ArcelorMittal Liberia operates more than three schools in Yekepa, providing
quality education to up to 1,300 students.

 

"We Are Feeling the Impact of ArcelorMittal"

 

Residents of ArcelorMittal Liberia (AML) communities of impact are praising
the decision to withhold 20% of AML's County Social Development Fund
contribution to Bong, Nimba, and Grand Bassa counties for direct development
in their local areas.

 

During a recent Communication tour in Bong County, community leaders said
they are seeing positive results from investments targeting community
residents and expressed great satisfaction over the many projects being
supported by AML.

 

They also hailed the decision to manage the funds with direct input and
acquiescence of the community people.

 

"Let me tell you, it is now that we in the affected communities are feeling
the impact of ArcelorMittal. Without coming to the communities, no one will
know that AML is doing something in this country," said Jordan Bly-bly, head
of the Gboyea Mining Construction and Engineering Company and a resident of
Zoweintaa.

 

In Zoweintaa, a US $119,000 clinic project is ongoing as part of Bong
County's share of the 20% Community Development Fund allotment. Clinics and
Maternal Waiting Home projects are also ongoing in Gbartaa, Bongbor, and
Rock Crusher communities.

 

"The work you see here is done with ArcelorMittal's 20%," said Alphonso
Menyon, Town Chief of Bongbor, Tugbablee District.

 

Albertha Dianue, AML Community Relations Liaison Officer in Bong County said
the projects have been positively received and its implementation is helping
to strengthen AML's relationship with its communities.

 

Besides the ongoing projects, there are others that AML has implemented and
are currently benefiting the locals. Among them are a community town hall,
Wamah Town Public School, and three hand pumps in Green Hill Quarry Km 149;
two hand pumps and a market building in Zoweintaa Km145, a hand pump in Dahn
Town at Km 135; one hand pump in Borbor Fire Town at Km 133; a market
building and one hand pump in Gbarlor Kpala at Km 123, a hand pump, Beyou
Town Km 116; a hand pump in Thomas Village at Km 115, a hand pump in Vanquen
Village at Km 113; another hand pump in Fianutolee at Km 103, a hand pump in
Paye Town at Km 90, and a community town hall in Rock Crusher at Km 96.

 

In Gbarnga, ArcelorMittal Liberia helped with the building of the Women's
Center and the sports stadium. Meanwhile, Wamah Town Public School
Principal, Rachel B. Kollie, acknowledged the intervention of AML in
bringing the school to where it is but also asked the company to help paint
the building and put a fence around the building to prevent students from
running to the railroad when they hear the train passing.

 

 

 

Russia's central bank says it will stop buying gold at a fixed price

(Reuters) - Russia's central bank said on Thursday that due to a
"significant change in market conditions" it would buy gold from commercial
banks at a negotiated price from April 8.

 

On March 25, the bank had said it would buy gold at a fixed price of 5,000
roubles a gram until June 30. read more

 

Since that announcement, the rouble has strengthened sharply against the
dollar. Five thousand roubles was worth around $52 on March 25 and around
$63 on Thursday.

 

Gold prices on the international market have remained stable at around $60 a
gram, or $1,900 an ounce.

 

Russia is one of the world's biggest gold producers, but the country's
refiners were barred from selling bullion into the London market, the
world's largest, after the Kremlin sent troops into Ukraine in February.

 

($1 = 78.6830 roubles)

 

The Thomson Reuters Trust Principles.

 

 

 

Oil prices drift lower, set for 3% weekly fall due to massive stocks release

(Reuters) - Oil prices drifted lower on Friday and were set to drop around
3% for the week as consuming countries' planned release of 240 million
barrels from emergency stocks offset some concerns over reduced supplies
from Russia due to western sanctions.

 

Brent crude futures edged lower by 55 cents, or 0.6% to $100.03 a barrel at
0403 GMT after gaining more than $1 in the early morning.

 

U.S. West Texas Intermediate (WTI) crude futures lost 34 cents, or 0.4%, to
$95.67 a barrel.

 

Analysts said the emergency oil release, amounting to about 1 million
barrels per day from May to the end of the year, might cap price rises in
the short term, but would not fully cover volumes lost if more countries
impose sanctions against Russia over its invasion of Ukraine, which Moscow
calls a "special operation".

 

"Although this is the biggest release since the stockpile was created in
1980, it will fail to ultimately change the fundamentals in the oil market.
It is likely to delay further increases in output from key producers," ANZ
Research analysts said in a note.

 

The release may deter producers, including the Organization of the Petroleum
Exporting Countries (OPEC) and U.S. shale producers, from accelerating
output increases even with oil prices around $100 a barrel, they said.

 

Investors are also assessing the fundamentals in the oil market amid
uncertainties over slowing demand in China, where cities have been locked
down due to the latest wave of coronavirus infections, and the loss of
supplies from Russia.

 

"Only time can give a clear answer," said analysts from Haitong Futures.

 

A think tank affiliated to China's state-backed CNPC lowered its view on
China's second-quarter oil demand by 180,000 bpd from its previous estimate
due to the lockdowns there. read more

 

At the same time, the European Union's consideration of a ban on Russian
oil, following its plan to embargo Russian coal, will limit any drop in oil
prices in the near term.

 

"In the court of public opinion, pressure is mounting on Brussels to act,
and if that pressure valve pops and the EU sanctions Russian oil, we could
see Brent crude at $120 in a heartbeat," Stephen Innes, managing director of
SPI Asset Management, said in a note.

 

The Thomson Reuters Trust Principles.

 

 

 

Russian gas flows to Europe dip in line with customer requests

(Reuters) - Russian gas deliveries to Europe via the Yamal-Europe pipeline
reversed direction to flow from Germany to Poland on Thursday morning and
supplies via Ukraine also eased, all in line with requests from customers.

 

Gas flows switched to an eastward direction into Poland at the Mallnow
metering point on the German-Polish border on Thursday morning after flowing
westward overnight, data from pipeline operator Gascade showed. 

 

The change is in line with nominations from shippers, with no requests for
westward shipments for the rest of the day, the data showed. 

 

Russia's Gazprom (GAZP.MM) is continuing to supply gas to Europe via Ukraine
in line with requests from European consumers, which dropped to 105.4
million cubic metres (mcm) from 108.4 mcm the previous day, according to
news agency Interfax.  

 

Nominations for flows into Slovakia from Ukraine via the Velke Kapusany
border point were at 936,935 megawatt hours (MWh) per day on Thursday, down
from 968,186 MWh/day on Wednesday, data from Slovakian operator TSO Eustream
showed.

 

Flows to Germany through the Nord Stream 1 pipeline across the Baltic Sea
were at 73,165,350 kWh/h on Thursday, little changed from the previous 24
hours.

 

SANCTIONS CONUNDRUM

 

The gas market remains concerned that flows of Russian gas, which accounts
for some 40% of its supplies, could stop in reaction to the West imposing
more sanctions on Russia following its invasion of Ukraine.

 

While shying away from sanctioning oil and gas so far, European Union envoys
are set to approve a ban on Russian coal that would take full effect from
mid-August. read more

 

Top EU diplomat Josep Borrell said the package could be passed on Thursday
or Friday and that the EU will discuss an embargo on Russian oil as well.
read more

 

Finland and Estonia have become the latest European member states to
announce their intention to cut out Russian gas deliveries by planning a
joint charter of a floating LNG terminal. read more

 

Lithuania has already announced it has stopped all Russian gas imports. read
more

 

There are also still questions over how many countries may concede to a
Russian request to pay for gas deliveries in roubles as of this month.

 

On Wednesday Hungary became the first EU member country to say it was
prepared to pay in the Russian currency, with companies buying gas from
Russian producer Gazprom (GAZP.MM) awaiting guidance from their respective
governments. read more

 

The Thomson Reuters Trust Principles.

 

 

 

Crypto and gaming collide in high-risk 'play-to-earn' economies

(Reuters) - Jarindr Thitadilaka says he made as much as $2,000 a month last
year from his collection of digital pets, which he would breed and send into
battle to win cryptocurrencies.

 

The 28-year-old from Bangkok was playing Axie Infinity, one of a new breed
of blockchain-based online games, dubbed "play-to-earn", which blend
entertainment with financial speculation.

 

These games can make for lucrative businesses amid the hype around NFTs and
virtual worlds, attracting millions of players plus billions of dollars from
investors who see the games as a way to introduce more people to
cryptocurrency.

 

In Axie Infinity, users buy virtual blob-like creatures with varying
attributes as NFTs, or non-fungible tokens - digital assets whose owner is
recorded on the blockchain - for anything from tens of dollars to hundreds
of thousands. read more

 

Players can then use the pets to earn money by winning battles, as well as
creating new pets, whose value depends on their rarity. The assets can be
traded with other players on the platform, which says it has about 1.5
million daily users.

 

"It's not just a game any more. It's more like an ecosystem," said
Thitadilaka. "You can even call it a country, right?"

 

The dangers of this speculative ecosystem, and the largely unregulated
crypto gaming industry, were brought into sudden focus last week when Axie
Infinity was hit by a $615 million heist. Hackers targeted a part of the
system used to transfer cryptocurrency in and out of the game. read more

 

Axie Infinity's Vietnam-based owner, Sky Mavis, said it would reimburse the
lost money through a combination of its own balance sheet funds and $150
million raised by investors including cryptocurrency exchange Binance and
venture capital firm a16z. read more

 

Sky Mavis' co-founder Aleksander Larsen told Reuters that if he could do
things differently, he would have focused more on security when growing the
game, which was launched in 2018.

 

"We were running 100 miles per hour, basically, to even get to this point,"
he said. "The trade-offs we made maybe weren't the ideal ones."

 

The hack, one of the biggest crypto heists ever, shone a light on
play-to-earn games, a young world largely unknown outside crypto and gaming
circles, that's becoming big business.

 

Players spent $4.9 billion on NFTs in games last year, according to market
tracker DappRadar, representing around 3% of the global gaming industry.
Although demand has cooled since a peak last November, gaming NFTs have
still racked up $484 million in sales so far in 2022. read more

 

Investor interest in NFT-based games has also ballooned, with projects
attracting $4 billion of venture capital funding last year, up from $80,000
in 2020, DappRadar said.

 

"There's so many users who want to interact with the tech," said Larsen,
adding that Axie Infinity's revenues exceeded $1.3 billion last year. "It's
like you found a new continent ... like finding America all over again."

 

Monthly sales of gaming-related NFTs

HAVES AND HAVE NOTS

 

Adding layers of complexity, unofficial financial networks have also emerged
around these games, as some players leverage their coveted in-game
possessions for further gain.

 

Thitadilaka in Thailand decided last July that he wanted make more money
than he could by simply playing on his own, so he and his friends decided to
form what's known in gaming lingo as a "guild". They allowed their NFTs to
be used by people who wanted to play Axie Infinity for free, without
investing in an asset, and took a cut of any winnings in return.

 

This model is commonplace across play-to-earn games. Thitadilaka said his
guild, GuildFi, grew into a network with 3,000 Axie Infinity players who
split their earnings with the asset-owners 50:50. Thitadilaka now runs
GuildFi as a full-time job and the company has raised $146 million from
investors.

 

Southeast Asian countries such as Thailand and the Philippines have emerged
as some of the hottest global gaming hubs.

 

Teriz Pia, who is 25 and lives in Manila, quit her job as a pre-school
teacher last June after her brother founded a play-to-earn gaming guild,
Real Deal Guild.

 

Teriz Pia, a 25-year-old from the Philippines who says she makes $20,000 a
month through play-to-earn gaming, is seen in this handout image, in
Boracay, Philippines, April 5, 2022. Picture taken April 5, 2022. Teriz
Pia/Handout via REUTERS

Now she says she makes as much as $20,000 a month through her network of
more than 300 players across multiple games, plus other crypto assets.

 

For Axie Infinity Pia lets her players keep 70%, while she takes a 30% cut.
In another play-to-earn game, Pegaxy, where players buy and trade NFTs of
virtual horses to compete in races to win crypto tokens, she splits it
60:40.

 

"I don't call them workers. I just call them my friends, or my scholars,"
she said. "The salary in the Philippines if you're a teacher ... I'm a
college graduate, I'm an educator, but it's not enough. I never imagined
that I could earn this kind of money."

 

But Pia cautioned that it was a dangerous business.

 

"There's a lot of risk. When I'm investing in a new game ... being a member
of Real Deal Guild, we have a partnership team, we have researchers, but at
the end of the day, it's still crypto, it's still a risk."

 

One of the biggest play-to-earn networks, Yield Guild Games, said it had
10,000 Axie Infinity players as of the fourth quarter of 2021 who kept 70%
of their earnings and had received $11.7 million in total.

 

Australian-based Corey Wilton, 25, founded Pegaxy, which he says has about
160,000 daily users. He estimates that 95% of users of play-to-earn games
participate as "renters", generating revenue without owning the assets,
while 5% are asset owners.

 

A horse character called "Pega", which is raced by players in the
blockchain-based game "Pegaxy", is seen in this handout image, Philippines,
March 2022. Angela Hoffman/Handout via REUTERS

'HOW PEOPLE GET HURT'

 

Legal experts warn there is no safety net for players who effectively invest
in risky assets, leaving them highly vulnerable should a project fail or the
market for the assets dry up.

 

As global regulators seek to get to grips with cryptocurrencies themselves,
there is little oversight of NFTs or the relatively niche offshoot of
play-to-earn games, which typically use in-game crypto tokens that can then
be cashed out into traditional money.

 

"Storing any value in projects like this is risky. The earning in play to
earn, blockchain-based games is often through rewards paid in the native
token of the project," said David Lee, cryptocurrency associate at
London-based law firm Fladgate.

 

"There are no guaranteed values of either the token or the in-game asset as
their value is often determined by supply and demand in the market. This
means there can be significant volatility in the price and, if the project
becomes less popular or is abandoned, then there is a potential for the
assets to become worthless."

 

Yet advocates of these games say success is built upon a combination of
factors such as skill, strategy and luck.

 

"There is definitely money to be made, but there is also money to be lost
here," Pegaxy's Wilton added. "Play to earn should not be confused with
charity, that's how people get hurt."

 

The Thomson Reuters Trust Principles.

 

 

 

Stocks set for weekly drop as rates reality bites

(Reuters) - World stocks were headed for a weekly loss on Friday as the
prospect of aggressive global rate hikes finally began to rattle investors,
while bonds languished and the dollar looked set to ride higher yields to
its best week in a month.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
was steady on Friday but facing a weekly loss of about 1.5%. Japan's Nikkei
(.N225) wobbled a little higher but remained on course for a weekly loss of
nearly 2.6%.

 

S&P 500 futures were flat while FTSE futures and EuroSTOXX 50 futures each
rose about 0.8% as traders looked for markets in London and Europe to catch
up with a modest Thursday bounce on Wall Street.

 

A late rally had lifted U.S. indexes a little, but they are also all down
for the week led by a 2.5% loss for the yield-sensitive Nasdaq (.IXIC) as
higher interest rates loom large.

 

Federal Reserve minutes this week have confirmed policymakers are ready to
hike quickly to curb inflation.

 

A looming European embargo on Russian coal looks set to further exacerbate
economic pain and price pressures, though it also carried Indonesian stocks
(.JKSE) to a record high in Jakarta, where coal exporters expect better
prices.

 

A tight French presidential race is adding to nerves amid a growing sense
that financial markets are entering a new era.

 

Rabobank researchers reckon demand falling away leaves equity markets akin
to Wile E. Coyote: "Running in the air for several moments before plummeting
off a cliff edge."

 

Hike expectations in Canada, South Korea, Australia and New Zealand are also
surging with inflation.

 

In France, a victory for far-right leader Marine Le Pen over incumbent
Emmanuel Macron, while still unlikely, is now within the margins of error,
opinion polls show and the euro edged down to a one-month low of $1.0855 in
the Asia session.

 

In bond markets, long-end Treasuries have borne the brunt of this week's
selling as traders see it hit hardest by the Fed cutting bond holdings.

 

The benchmark 10-year Treasury yield is up 26 basis points (bps) to 2.6528%
this week, and was steady in Asia trade on Friday. The 30-year yield is up
23 bps.

 

The U.S. dollar has been the primary beneficiary and the dollar index ,
which measures the greenback against a basket of six major currencies is up
seven days in a row and hit an almost two-year high of 99.914 on Friday.

 

The stronger dollar, and an oil price easing with supplies being released
from reserves, has also pulled commodity currencies off recent peaks and
redoubled pressure on the struggling yen. Japan's currency is near its
lowest levels in years and was battling at 123.97 per dollar.

 

Brent crude futures were steady at $100.73 per barrel and U.S. crude futures
held at $96.30.

 

There were also some brighter spots, with Australia's bank-and-miner heavy
equity market (.AXJO) hanging in for a steady week.

 

"A higher rate environment that transpires through the hiking cycle will
continue to benefit value vs. growth equities and provides a more
constructive outlook for sectors like financials," said Clara Cheong, a
Singapore-based strategist at J.P. Morgan Asset Management.

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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