Major International Business Headlines Brief::: 20 April 2022

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Major International Business Headlines Brief::: 20 April 2022 

 


 

 


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

 


 

 


ü  P&O Ferries: Agency staff sacked after breaching alcohol guidelines

ü  UK set for slowest growth in G7 as Ukraine war hits global economy

ü  Shark Tank: India TV show proves entrepreneurship isn't just for rich

ü  Netflix loses subscribers for first time in more than 10 years

ü  Rwanda: Farmers Keen to Cash in on Chia Boom

ü  Liberia: Pres. Weah, Others Caution

ü  Nigeria: IMF Raises Nigeria's Economic Growth Projection to 3.4 Percent

ü  Nigeria Opts Out of Global Tax Deal, Cites Economic Impact

ü  Nigeria: Govt Denies Stoking Food Inflation By Mopping Up Production

ü  ArcelorMittal Liberia Announces New Chief Executive Officer

ü  Kenya: Google Opens Product Development Center in Nairobi, Its First in
Africa

ü  Kenya: State Confirms Resumption in Fuel Supply After Two Week Shortage

ü  Somalia: Somali Government, US Company Dispute Legality of Oil Deal

ü  Africa: 87% of IMF Loans Forcing Austerity on Crisis-Ravaged Nations:
Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

P&O Ferries: Agency staff sacked after breaching alcohol guidelines

P&O Ferries has confirmed seven agency staff were sacked after returning
from shore in breach of guidelines on alcohol consumption.

 

The company said: "The safety of our passengers and crew is our foremost
priority and we continue to operate a zero tolerance policy towards drinking
whilst on duty."

 

Last month P&O replaced 800 UK seafarers with cheaper agency staff.

 

A protest march against the sackings was held in Dover on Tuesday.

 

Both the Rail, Maritime and Transport (RMT) and Nautilus unions called for
action at several ports after the 800 workers were sacked via video message
in March.

 

Darren Procter, from the RMT, said the latest incident was "absolutely
scandalous".

 

He said: "They could end this today by saying to the RMT and to Nautilus:
'We've made a mistake, we've compromised safety, we've jeopardised our
reputation in the local community, and we want to come back to you.'"

 

P&O's Dover-Calais fleet is still awaiting safety clearance from the
Maritime and Coastguard Agency (MCA).

 

P&O has insisted it had to change its business model because it was losing
money.

 

It had hoped to resume sailings over Easter, until two of its ships on the
Dover-Calais route failed safety inspections.

 

The RMT has accused P&O of treating its staff, passengers and the people of
Kent who have been affected by the disruption "with contempt".

 

John Lansdown, a former ferry chef who was sacked and is suing P&O for
unfair dismissal, racial discrimination and harassment, said he was
"sickened and distressed" over the way he and his colleagues were treated.

 

He said: "We're on day 34 now and there appears to be no end in sight to the
chaos that we're seeing inflicted upon roads in Kent, and many local
businesses, as a result of the actions of P&O ferries."-BBC

 

 

 

UK set for slowest growth in G7 as Ukraine war hits global economy

The war in Ukraine will "severely set back" the global economic recovery
with the UK hit harder than most, the International Monetary Fund has said.

 

The conflict is driving up prices for food and fuel which the international
body expects to slow growth globally.

 

It has cut its global forecast and also downgraded its outlook for the UK.

 

This means the UK will no longer be the fastest growing economy in the G7
group of leading Western nations, and will be the slowest in 2023, it says.

 

The body says that UK growth will slow as price pressures lead households to
cut spending, while rising interest rates are expected to "cool investment".

 

The UK's economy is now predicted to grow by 3.7% this year, down from the
previous forecast of 4.7% made in January.

 

 

However, next year, the UK is expected to have the slowest growth in the G7
and across Europe's main economies, at just 1.2%, a near halving from the
2.3% expected previously.

 

The 2023 UK figure is the slowest apart from heavily-sanctioned Russia in
the wider G20 grouping, which includes nations such as China and India.

 

The IMF said that the UK was the fastest growing G7 economy in 2021, and is
forecast to be the second fastest in 2022.

 

The low UK growth rates forecast in 2023 are in part due to the UK
rebounding more quickly from the pandemic than some of its G7 peers.

 

However, the UK is also wrestling with high inflation, which will hit growth
in 2023, as people cut spending as their real income shrinks, the IMF said.
The organisation expects inflation to peak in late 2022 at 9%.

 

It said rising interest rates will also slow the UK economy in 2023 and
2023, while government policies such as getting rid of certain tax breaks
will reduce business investment at that time.

 

In addition, Brexit will hold back export growth, the IMF said, and it will
continue to make pandemic-related labour supply "scarring" worse by reducing
immigration.

 

"However, the impact of Brexit is spread over several years and is not the
primary driver of the slowdown in 2023," a spokesperson for the organisation
added.

 

'Major shock'

The IMF works with its 189 member countries to try to stabilise the global
economy, including issuing short-term loans and assistance to countries who
are struggling.

 

It said inflation was now a "clear and present danger" in many countries and
the situation has added to supply strains from the coronavirus pandemic.

 

"In the matter of a few weeks, the world has yet again experienced a major,
transformative shock," IMF director of research Pierre-Olivier Gourinchas
wrote in the organisation's 2022 World Economic Outlook.

 

"Just as a durable recovery from the pandemic-induced global economic
collapse appeared in sight, the war has created the very real prospect that
a large part of the recent gains will be erased."

 

The organisation said it expected global growth of just 3.6% this year, down
nearly a percentage point from its forecast before the war.

 

The World Bank also said it was lowering its growth forecast from 4.1% to
3.2%.

 

The conflict has already devastated the economies of Ukraine and Russia,
which the West cut off from key trade and financial networks with sanctions
following the invasion.

 

Ukraine is facing a severe contraction of 35% or more this year, while
Russia's economy is expected to shrink by 8.5%, the IMF said.

 

But with Russia a major energy producer and key supplier of staples such as
wheat and corn alongside Ukraine, the consequences will ripple far beyond
their borders, the IMF warned.

 

There have been two acute shocks to the world economy in quick succession -
the pandemic and the Ukraine war.

 

The latter is building on the problems created by the former, tripping up
what had been a healthy recovery, and sending prices rising at an even
faster rate.

 

Food and energy prices were already being hiked by the supply bottlenecks
after the pandemic, before one of the world's biggest energy suppliers
invaded one of the world's biggest food exporter.

 

But now there are new bottlenecks emerging from the stringent Covid
lockdowns in some regions of China.

 

Rising prices risk social stability in poorer countries, dependent on food
imports.

 

Fears about inflation becoming entrenched are leading the world's central
bankers to raise interest rates. In turn that is raising the cost of
borrowing for the record debts many nations racked up during the pandemic.

 

So all this requires some skill and cooperation among the old and new
financial powerhouses of the world. But that has been another commodity in
short supply in recent times.

 

line

"The economic effects of the war are spreading far and wide - like seismic
waves that emanate from the epicenter of an earthquake," it said.

 

In Germany, where the economy is especially closely entwined, the war is
likely to lower growth by 1.7 percentage points, it said.

 

Even in countries with little direct trade with Russia and Ukraine,
households will feel the effects of the war, as central banks respond to the
more rapid inflation by raising interest rates, making borrowing more
expensive, the IMF said.

 

In the US, for example, the organisation lowered its forecast for growth in
2022 by 0.3 percentage points to 3.7%, citing the prospect of more
aggressive interest rate rises.

 

Overall, inflation pressures are significantly worse than they were when the
IMF issued its previous forecast in January.

 

It now predicts inflation in "advanced economies" will hit 5.7% this year,
while it is likely to reach 8.7% in emerging markets.

 

UK inflation is expected to be 5.3% next year - the highest in the G7, and
higher than all EU members, and only exceeded in the G20 by crisis-ridden
Argentina, Turkey and Russia.

 

"Inflation has become a clear and present danger for many countries," Mr
Gourinchas wrote in a blog.

 

A few countries, such as oil exporters, are benefiting. The IMF expects
growth in Saudi Arabia, for example, to be stronger than it did in January.

 

But the risks are not purely economic, the IMF added.

 

It said the war had also created a refugee crisis and aggravated political
tensions, risking a "more permanent fragmentation of the world economy into
geopolitical blocks with distinct technology standards, cross-border payment
systems, and reserve currencies".

 

"Such a 'tectonic shift' would cause long-run efficiency losses, increase
volatility and represent a major challenge to the rules-based framework that
has governed international and economic relations for the last 75 years,"
the IMF said.

 

A Treasury spokesperson said the IMF forecasts "will be concerning for many
people and families" in the UK.

 

"However the support we provided over the past two years has put our economy
in a good position to deal with these headwinds, including through record
numbers of employees on payrolls and a strong economic recovery from the
pandemic," the spokesperson said.

 

Labour's shadow chancellor Rachel Reeves said the IMF forecast "shows the
extreme challenges facing the UK economy".

 

"While it is true that global forces play a role, the fact that the UK is
forecast to have the slowest growth of any G7 economy next year plus the
highest inflation, shows the uniquely bad situation the UK is in.

 

"Inflation spiralling out of control this year has created a cost of living
crisis hitting families across the country, needing decisive and urgent
action," she said, repeating Labour calls for a windfall tax on oil and gas
firms.

 

Liberal Democrat Treasury spokesperson Christine Jardine said the UK
government had "failed to shield the UK from spiralling energy bills and
soaring inflation, but they have gone ahead with raising people's taxes to
their highest point in 70 years".-BBC

 

 

 

Shark Tank: India TV show proves entrepreneurship isn't just for rich

In October, Pashmi Shah, a 30-year-old senior marketing executive, received
a phone call that changed her life.

 

On the other end was a producer for Shark Tank, the Emmy-nominated reality
television series where entrepreneurs pitch their business ideas to seven
"sharks" - or investors - who then decide whether or not to invest in them.

 

Ms Pashmi was invited to pitch Get-A-Whey - a keto-friendly, low-sugar ice
cream brand she managed with her brother Jash, and mother Jimmy - on the
Indian version of the show

 

The brother-sister duo loved desserts and were always on the lookout for
healthy options. So one day, their mum experimented on an ice-cream with
whey protein powder, a health supplement.

 

"When we tried it, we were surprised it tasted so good," Ms Pashmi said.

 

They tweaked the recipe over six months, got a food technologist to come on
board and launched Get-A-Whey in 2019.

 

This year, on Shark Tank India, her brother and mum pitched this ice cream,
whey and all, to the "sharks" and took home 10m rupees ($131,110; £100,850)
in return for a 15% stake in their company

 

Get-A-Whey was among 67 businesses to which Shark Tank's investors committed
more than 400m rupees. According to reports, the series received more than
62,000 pitches for the first season itself, from start-ups all over India.

 

In a blog soon after the first season of the show came to a close, Anupam
Mittal, the founder of one of India's largest matrimonial websites, wrote
that he believed the show "has been the catalyst that will change India's
entrepreneurial landscape forever".

 

He went on to explain that of the 67 businesses that received deals on the
show, 59 had one founder under the age of 25, and 29 had at least one female
co-founder.

 

Most importantly, the show shone a spotlight on a new breed of young,
risk-taking entrepreneurs and changing attitudes towards entrepreneurship in
India.

 

Both Ms Pashmi and her brother quit well-paying jobs to start their
business.

 

"It was difficult to convince our father at first," she says.

 

By the end of last year, the Shahs were selling 8,000 units of their product
per month, and making nearly 1m rupees in revenue.

 

After their Shark Tank episode aired in January this year, sales across
India went through the roof. For the first quarter, they sold a whopping
65,000 units and made close to 8.5m rupees.

 

Ankur Warikoo, internet entrepreneur and best-selling author, says that
Shark Tank has done a commendable job of bringing people like Pashmi Shah to
the forefront.

 

"But the biggest thing it's done is to make them aware that their ambitions
can be a lot bigger than what they had set out to do, and if money is a
hindrance - then here is the money."

 

Mr Warikoo says India has always had this entrepreneurial drive, even away
from the traditional, rich businesses that rode an early wave of
entrepreneurial success in the early 90s.

 

"Don't disregard the element that there are millions of families in India
where parents have worked as daily-wage labourers and now their kids are
saying, 'You know what, I will set up a mobile repair shop or a cloud
kitchen or I will become an Uber driver and have a fleet of Uber cars that I
can rent out'," he explains.

 

The show, he says, has successfully legitimised the career path of a
self-made entrepreneur to a generation of parents who would earlier be
cynical or doubtful of such a risky move.

 

"Suddenly when it becomes primetime, their parents feel proud of the fact
that their son or daughter is now an entrepreneur. And that their son or
daughter could be on Shark Tank one day," Mr Warikoo says.

 

Ashneer Grover, one of the "sharks" on the show and the founder of one of
India's most prominent fintech companies, credits the internet for much of
the change.

 

"Someone who is building a business is thinking of it in pan-India terms
now. They're not selling themselves as an expert in their local regions but
have larger ambitions," he says.

 

Writer and entrepreneur Rashmi Bansal says the Indian middle class earlier
believed that a professional degree leading to a steady job was better than
running a business. "That has changed - the idea of 'doing your own thing'
has moved from the fringes to the mainstream."

 

She gives the example of a start-up meeting she attended in the remote
Bastar district in the central state of Chhattisgarh.

 

"To my surprise, six local entrepreneurs showed up. All of them had plans of
going national or international," she says, adding that Shark Tank reflects
this new aspiration of an India where you don't need a rich father or
godfather to succeed.

 

Mr Grover puts this down to a hunger for success seen in entrepreneurs from
smaller towns and cities.

 

"They have a fire in their belly," he adds, giving the example of Revamp
Motors which pitched a utility electric bike aimed at gig workers on the
show.

 

"The amount of engineering put into building that e-bike with such a small
amount of capital was mind-blowing. This gives me the confidence that if we
come down to doing hardcore engineering ourselves, it is a very good sign
for India," he says.

 

"Shark Tank's success is that it became a dinner-table conversation,"
Surabhi Shah, a second-generation entrepreneur says.

 

She and her mother-in-law, Chetna Shah, pitched their business idea -
Carrabox, an eco-friendly food packaging concept - on Shark Tank and took
home 5m rupees in return for a 20% stake.

 

Surabhi, who comes from a traditional business family, says the idea of
taking someone else's money for a piece of "my company was a very alien
concept".

 

But attitudes have changed and taking that risk of starting your own idea is
not taboo anymore, she adds.

 

"Terms like equity and investment existed in textbooks when we were growing
up. But now it's on national television. You can start your own shop on
Instagram and scale up," she explains.

 

But negotiating a successful deal was not the only win for Surabhi and her
mother-in-law on Shark Tank.

 

"What I find interesting is that even now our TV soaps show the
mother-in-law and daughter-in-law fighting," Aman Gupta, a "shark" and the
co-founder of one of India's largest consumer electronics brand, remarked on
the portrayal of the mother-in-law as domineering and shrewd.

 

"Seeing you both here today makes me very happy. India will be inspired that
a mother-in-law and daughter-in-law can also go into business together," Mr
Gupta said, to applause from the other investors.-BBC

 

 

 

Netflix loses subscribers for first time in more than 10 years

The number of Netflix subscribers has fallen for the first time in more than
a decade.

 

The streaming company lost 200,000 members in the first three months of the
year, the company said on Tuesday.

 

The declines came after the firm raised prices in key markets including the
US and UK, while pulling out of Russia.

 

But Netflix warned that more losses are coming, and it hinted it will start
to crack down on account sharing as it pushes to sign up new members.

 

It estimates more than 100 million households are breaking its rules by
sharing passwords.

 

Boss Reed Hastings said: "When we were growing fast, it wasn't a high
priority to work on [acount sharing]. And now we're working super hard on
it."

 

Lucas Shaw, who writes the Screentime newsletter for Bloomberg news, told
the BBC that password sharing had been an issue for Netflix "for a long
time".

 

"It feels like the company is trying to identify an area of potential
growth," he told the Today programme.

 

"They've tried to curb password sharing in the past and had a very hard
time."

 

Subscribers exit

In a letter to shareholders, Netflix said a surge in sign-ups it saw during
the pandemic had "obscured the picture" and it warned that another two
million subscribers were likely to leave in the three months to July.

 

"Our revenue growth has slowed considerably as our results and forecast
below show," the company said.

 

"Our relatively high household penetration - when including the large number
of households sharing accounts - combined with competition, is creating
revenue growth headwinds."

 

The last time the company lost members in a quarter was October 2011. It
still boasts more than 220 million subscribers globally.

 

Russian hit

Pulling out of Russia, a step Netflix took following the war in Ukraine,
cost it 700,000 subscribers, it said.

 

Another 600,000 people stopped its service in the US and Canada after the
price increase, Netflix said.

 

Netflix said that move was playing out "in line with expectations" and would
yield more money for the firm, despite the cancellations.

 

The firm's revenue in the first three months of the year was up 9.8%
compared with the same period last year to more than $7.8bn (£6bn).

 

That marked a slowdown from earlier quarters, while profits fell more than
6% to roughly $1.6bn.

 

Losses in the quarter were partially offset by sign-ups elsewhere such as
Japan and India.

 

As it looks to grow, the firm said it is focused on international markets
and finding ways to tap the 100 million people it estimates are sharing
household accounts, including more than 30 million in the US and Canada.

 

The company is looking to advertising and getting revenues from customers
who share accounts with family or friends..

 

"Those who have followed Netflix know that I've been against the complexity
of advertising, and a big fan of the simplicity of subscription," said Mr
Hastings. "But, as much as I'm a fan of that, I'm a bigger fan of consumer
choice."

 

Mr Hastings said "it's pretty clear" that ad-supported services are working
for Disney and HBO.

 

But analysts said rising costs are starting to wear on households.

 

In the UK, households cancelled more than 1.5 million streaming
subscriptions in the first three months of the year, with 38% saying they
wanted to save money - the highest level ever, according to research from
market research firm Kantar.

 

Households cancel streaming services to cut costs

Bridgerton gets third and fourth series on Netflix

Netflix is also facing intense competition, as companies from Amazon and
Apple to traditional media firms like Disney pour money into their online
streaming services.

 

Paolo Pescatore, an analyst at PP Foresight, said the subscriber loss was a
"reality check" for the company, as it tries to balance retaining
subscribers with raising its revenue.

 

"While Netflix and other services were key in lockdown, users are now
thinking twice about their purchasing behaviour based upon changing habits,"
he said.

 

North America especially is "now awash with too many services chasing too
few dollars", he added.

 

Shares in the company plunged more than 20% in after-hours trading in New
York following the news, wiping more than $30bn off the company's market
valuation.

 

Investor concerns also hit shares in other entertainment firms, including
Disney.

 

 

Netflix, like many tech companies, had a bumper pandemic.

 

People flocked to the streaming company - it seemed like the company could
do no wrong.

 

But several factors have now combined to give Netflix the most difficult
operating environment it has faced for over a decade.

 

Firstly it can't seem to find a way to stop people from sharing passwords
which it has complained about for years.

 

An increase in competition from rivals like Disney+ and Apple TV has also
made the streaming market extremely competitive - at a time when Netflix has
increased its subscription price.

 

The company is blaming its decision to pull out of Russia for its negative
global growth - and this is technically true.

 

But the company is forecasting further losses in subscribers in the next
quarter too, so this isn't just about Russia.

 

And with the cost of living crisis biting for many, Netflix's future, which
seemed so rosy only a few months ago, now looks unsteady.-BBC

 

 

Rwanda: Farmers Keen to Cash in on Chia Boom

The global chia seeds market size is projected to rise, driven by the
increasing demand for healthy diets among consumers.

 

It is expected to rise from $1.14 billion in 2018 to $4.7 billion by 2025,
growing 22.3 per cent from 2019 to 2025, according to Chia Seeds Market
Size, Share & Trends Analysis Report, 2019 - 2025.

 

Chia is a relatively new crop having been introduced in Rwanda around 2017
by investors, and has attracted interest from some farmers.

 

The crop is mainly grown on the irrigated farms of Ngoma district, and its
edible seeds have many health benefits. It is harvested after three months
of planting and offers high profits, according to Innocent Mudahemuka,
Director of Agriculture and Natural Resources in Ngoma district.

"It is a promising crop in terms of yields if it is sustained," he said.

 

Dried chia seeds. They can help you have healthy bones, muscles, and nerve
functioning. They have higher calcium content than dairy products such as
milk (Courtesy photo)

 

Jean Damascene Munyabarinzi, President of Subiza Cooperative, told The New
Times that they grow chia on 450 hectares.

 

Made up of 450 members, Subiza is one of the two cooperatives in the Eastern
Province that grow chia on a combined 1,000 hectares.

 

Munyabarinzi noted that the cooperative signed a contract with a company
that buys its produce, hence offering a ready market to its farmers.

 

Safari Kizito, the spokesperson of Akenes & Kernels Ltd, a local company
engaged in agribusiness told The New Times that investing in Chia farming
requires an amount that ranges from Rwf1.2 million to Rwf1.7 million per
hectare. This covers inputs such as seeds and organic fertilisers.

 

In terms of soil maintenance for chia farming, fertilisers are required but
the variation depends on the type of soil. Some soils also require lime to
improve their fertility and irrigation.

 

Chia, which is believed to have originated from Central America, thrives
with both water and sunlight. It needs water at least twice a week - either
from rainfall or irrigation, Kizito explained.

 

"Chia seeds have nutrients needed for both children and adults. They can
help tackle stunting among children. They also help prevent cancer, obesity,
and cleanse blood such that it ensures good blood circulation," he said,
referring to their health benefits.

 

Market opportunity

 

Kizito said that there is a huge export market for chia seeds, but it
requires organic farming certification from a recognised authority.

 

"We have a market to export organic chia seeds in those countries. We can
export up to 200 or 300 tonnes per month depending on the certified organic
produce we get," he said.

 

The case for smallholder farmers

 

As Prime Minister Edouard Ngirente was presenting the government actions
related to agriculture inputs to Parliament, MP Christine Bakundufite said
that farmers expressed concern that the cost of chia seeds is high with a
kilogramme priced at Rwf90, 000, making it difficult for smallholders to
afford it.

 

"The cost of chia seeds is prohibitive for some farmers," Bakundufite said,
suggesting that there should be a way to increase their production in order
to lower its prices.

 

However, Kizito said that returns on investment for chia farming are
sufficient, recommending people to venture into agriculture knowing that it
is a business like any other, considering investment requirements, as well
as risks.

 

Jean-Chrysostome Ngabitsinze, the Minister of State in the Ministry of
Agriculture and Animal Resources said that the government is committed to
supporting the development of the chia value chain because the crop has
proven to be profitable and many people want to engage in it.-New Times.

 

 

 

Liberia: Pres. Weah, Others Caution

Former Montserrado County Senatorial Candidate Shiekh Al Moustapha Kuyateh
has cautioned President George Weah and his officials against "mishandling"
the ArcelorMittal agreement.

 

Moustapha Kuyateh told a live talk show on Prime FM in Monrovia on Wednesday
that the Liberian people are not interested in vain projects but are
concerned about a major improvement in economic activities that can put food
on their tables.

 

Kuyateh wants President Weah and his officials to see the US$1billion AML
agreement as an opportunity to advance economic development and alleviate
the Liberia people from abject poverty.

 

Kuyateh : "When President Weah came to Power he said he met a broken
economy, so the ArcelorMittal agreement is an opportunity for you to fix the
economy. To create jobs for your people", he continued, "this is an
opportunity to encourage other international partners to come over because
when they talk about investment in Liberia, ArcelorMittal is the only
company that other foreign investors will contact and they will tell you the
kind of government they are about to deal with.

 

The former Montserrado Senatorial candidate thinks that the Government of
Liberia including the legislature should be honest with the Liberia people
about the complications confronting the nation and desist from acts that
drive away investors.

 

"I am urging President Gorge Weah; I am urging Speaker Bhofal Chambers, the
Chief Justice, and fellow Liberians let's protect the future of our country,
let's not take the future of our children out of sentiments and
misinformation.

 

He described the manner and form in which Liberian authorities have handled
the agreement as "an embarrassment that a company that has been with us for
about 17 years is being bad mouthed and turned down because of a company
whose investment is in another country- Guinea.

 

Quizzed on why he was particular about the AML deal, Kuyakeh responded that
the new AML deal is the singular most important foreign direct investment
capable of transforming the Liberian job market as opposed to any other
offer.

 

The AML third Mineral Development Agreement (MDA) he emphasized will deliver
thousands of new good-paying jobs, encourage small and medium-size business
expansion, and environmental conservation, and offer modern training
opportunities for the youth of Liberia whom he noted are languishing in
poverty and joblessness.

 

"My caution is in good faith because I love Liberia and I am specific about
the future of my country as opposed to any short-term benefit", he added.

 

In September 2021, ArcelorMittal Liberia and the Government signed a
milestone amendment to the company's Mineral Development Agreement ('MDA')
which paved the way for the expansion of its mining and logistics operations
in Liberia.

 

When passed into law, the MDA amendment 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 is one of the largest mining projects in West Africa. The capital
required to finalize the project is expected to be approximately $1billion,
as it is effectively a brownfield expansion.

 

The expansion project includes the construction of a new concentration plant
and the substantial expansion of mining operations, with the first
concentrate expected in late 2023, ramping up to 15 million tonnes per annum
('mtpa'). Under the agreement, the company will have a reservation for
expansion for at least up to 30mt.

 

Both Houses of the Legislature passed the agreement on separate notes.

 

But, the House of Representatives acted on its own in an emergency closed
doors session to send back the agreement to the executive for unexplained
reasons, instead of going into conference with the Senate to resolve the
differences in their separate passage.

 

The action of the Lower House has been met by a wave of criticisms from
ordinary Liberians and prominent political actors including Movement for
Progressive Change Political leader-Simeon Freeman who on Monday criticized
the decision and branded it as "not investment-friendly".-New Republic.

 

 

 

Nigeria: IMF Raises Nigeria's Economic Growth Projection to 3.4 Percent

The International Monetary Fund (IMF) has raised Nigeria's 2022 economic
growth forecast from the 2.7 per cent it had previously estimated, to 3.4
per cent.

 

Additionally, the fund reviewed upward the country's 2023 growth prediction,
from 2.7 per cent to 3.1 per cent.

 

These were contained in the IMF's latest World Economic Outlook (WEO),
titled: "War Sets Back the Global Recovery," that was released on the
side-lines of the ongoing IMF/World Bank hybrid spring meetings in
Washington DC.

 

The multilateral institution noted that the non-oil sector played a pivotal
role in increasing Nigeria's growth prospect, noting that globally only 86
per cent of countries saw a downward revision of its growth projection. It
indicated that Nigeria was amongst 14 per cent of countries that had been
estimated to record growth.

 

On Nigeria's growth forecasts, Division Chief Research Department, Mr.
Malhar Nabar, while responding to a THISDAY question, during a media
briefing said, "The heterogeneity is a key factor, if you look at the global
revisions that we have 86 per cent of the global economy revising down and
Nigeria is one of the few that's actually revised up and there are two main
factors: one is what you mentioned, the increased oil price, which
represents a favourable terms of trade effect for Nigeria, will increase oil
production and oil exports.

 

"And then the second factor is the strong momentum that we saw in the
non-oil sector part of the economy. The non-oil sector of the economy is
also showing strong momentum going into this year, which helped lift the
outcome, growth forecasts that we have for Nigeria to 3.4 per cent for this
year, and 3.1 per cent for next year, and that's 0.7 percentage point
increase for this year and 0.4percentage point increase your next."

IMF Chief Economist, Mr. Pierre-Olivier Gourinchas, also noted that oil
price increase played a role in the upward review.

 

Gourinchas said, "Nigeria is an energy producer and exporter. And I think
that explains a good part of the upward revision in our growth projections."

 

However, IMF in the WEO noted, "The increase in oil prices has however
lifted growth prospects for the region's oil exporters, such as Nigeria.
Overall, growth in sub-Saharan Africa is projected at 3.8 per cent in 2022.

 

"In sub-Saharan Africa, food prices are also the most important channel of
transmission, although in slightly different ways. Wheat is a less important
part of the diet, but food in general is a larger share of consumption.

"Higher food prices will hurt consumers' purchasing power particularly among
low-income households and weigh on domestic demand. Social and political
turmoil, most notably in West Africa, also weigh on the outlook."

 

Commenting on the global economy Gourinchas said policymakers should also
ensure that the global financial safety net operates effectively.

 

According to him,"For some countries, this means securing adequate liquidity
support to tide over short- term refinancing difficulties. But for others,
comprehensive sovereign debt restructuring will be required.

 

"The Group of Twenty's Common Framework for Debt Treatments offers guidance
for such restructuring but has yet to deliver. The absence of an effective
and expeditious framework is a fault line in the global financial system.

 

"Particular attention should also be paid to the overall stability of the
global economic order to make sure that the multilateral framework that has
lifted hundreds of millions out of poverty is not dismantled.

 

"In this difficult environment, national-level policies and multilateral
efforts will play an important role. Central banks will need to adjust their
policies decisively to ensure that medium- and long-term inflation
expectations remain anchored. Clear communication and forward guidance on
the outlook for monetary policy will be essential to minimise the risk of
disruptive adjustments."

 

He added, "Several economies will need to consolidate their fiscal balances.
This should not impede governments from providing well-targeted support for
vulnerable populations, especially in light of high energy and food prices.

 

"Embedding such efforts in a medium- term framework with a clear, credible
path for stabilising public debt can help create room to deliver the needed
support."-This Day.

 

 

 

Nigeria Opts Out of Global Tax Deal, Cites Economic Impact

Nigeria has opted out of a global tax deal negotiated under the Organisation
of Economic Cooperation and Development (OEDC)/G20 Inclusive Framework on
Base Erosion and Profit Shifting (BEPS).

 

BEPS refers to corporate tax planning strategies used by multinationals to
shift profits from higher tax jurisdictions to lower tax jurisdictions or
no-tax locations where there is little or no economic activity, thus eroding
the tax-base of the higher-tax jurisdictions using deductible payments such
as interest or royalties.

 

Kenya, Pakistan and Sri Lanka also opted out alongside Nigeria.

 

Nigeria's position was predicated, among others, on the unreliability of the
economic impact of the deal for developing countries.

The OECD estimates that countries lose $100-$240 billion worth of revenue
annually to BEPS practices, which is the equivalent to 4-10 per cent of the
global corporate income tax revenue.

 

The deal set out to introduce a global minimum tax rate and new profit
reallocation rules, which aims to give countries a fairer chance to collect
tax revenues from multinational enterprises (MNEs) operating in or
generating revenues from their jurisdictions.

 

In a new report titled, "OECD Global Tax Deal: Key Elements, Opportunities
and Challenges," Global Financial Integrity (GFI) stated that the framework
represents a group of countries and jurisdictions working together to
address systemic issues within the global taxation system that cause an
inequitable distribution of tax revenues among countries and jurisdictions.

 

It operates under the leadership of the OECD, but any country or
jurisdiction is allowed to join and participate.

The global tax deal represents a major reform to the rules governing the
international tax system, aimed at bringing an end to tax havens and
profit-shifting by multinational enterprises The deal specifically aims to
address challenges that arise from the digitalisation of the economy, and is
broken down into two pillars.

 

Pillar 1 aims to reallocate multinational MNEs' profits and taxing rights to
market jurisdictions while Pillar 2 introduces a global minimum tax rate.

 

The Inclusive Framework releases the blueprints for the two-pillar solution
to address tax challenges arising from digitalisation of the economy.

 

A total of 140 tax jurisdictions were part of the Inclusive Framework when
the negotiations commenced, the report highlighted.

 

After the conclusion of the high-level agreement in October 2021, Mauritania
joined the Inclusive Framework as the 141st member in November, and also
agreed to the two-pillar statement.

In total, 137 of the 141 member jurisdictions have agreed to the two-pillar
solution while Kenya, Nigeria, Pakistan and Sri Lanka opted out.

 

However, Nigeria expressed concern with Pillar 1 particularly, claiming that
the OECD's assessment of the economic impact for developing countries was
unreliable.

 

Also, the mandatory dispute resolution element was one of the reasons for
Kenya and Nigeria to disapprove of the deal because of concerns around
losing sovereignty due to tax issues having to be resolved in residence
countries.

 

Although the Nigeria made no disclosures of its own calculations on
potential revenue, its conclusion was that it was not worth the high cost of
implementation.

 

Some of the concerns around the deal and reasons why Nigeria and the other
countries rejected it included: Lack of transparency in negotiations,
exclusion of majority of developing countries, the issue of too many MNEs
out-of-scope, and limited impact for developing countries, among others.

 

According to the report, although the agreement was negotiated under the
Inclusive Framework, a substantive part of the process was carried out
within the G7 and G20.

 

This in turn made the process less transparent and gives rise to the concern
that smaller and less rich countries were not given equal participation.

 

Similarly, although the Inclusive Framework allows all interested
jurisdictions and countries to become members, there are conditions and
annual fees they have to commit to in order to join.

 

The majority of African (52 per cent) and Least Developed (78 per cent)
countries have not joined the framework.

 

Civil society organisations (CSOs) had also pointed out that this makes the
agreement less inclusive than it purports to be.

 

There is also the issue of too many MNEs out-of-scope. The scope of
companies to which this deal is applicable is narrow and leaves out many of
the companies operating on the African continent, including Uganda.

 

The deal also excludes companies working in the extractives industry,
although this sector has been flagged to be more susceptible to illicit
financial flows.

 

The reallocation rule applies to only a small portion of the profits (25 per
cent) of 'residual profits' above 10 per cent profitability) of about 100
corporations that qualify (those with more than 20 billion euros in profit).

 

"Oxfam estimates this would result in only $140 million Ugandan shillings
(UGX 500 billion) and US$8 billion (UGX 28.5 trillion) in annual revenue for
low-income and middle-income countries respectively.

 

"As such, it is unlikely this will bring about structural changes in
international corporate tax distribution, and may not even be worth the
implementation costs for the smallest developing countries," the report
stated.-This Day.

 

 

 

Nigeria: Govt Denies Stoking Food Inflation By Mopping Up Production

The federal government has refuted claims that it is partly responsible for
the current rising prices of food items in the country.

 

There had been concerns that the government's practice of mopping up grains
into the national Strategic Grains Reserves (SGRS) during harvests was
responsible for the high costs of food products in the market.

 

Food inflation has remained a major challenge in the Consumer Price Index
(CPI), which measures inflation.

 

Analysts also blamed the situation on demand-supply gaps as what is
available can't satisfy the demands of a growing population.

 

The composite food index rose to 17.20 per cent in March compared to 22.95
per cent recorded in March 2021.

Month-on-month, the food sub-index increased to 1.99 per cent in March, up
by 0.12 per cent from 1.87 per cent in February.

 

However, speaking against the backdrop of allegations that the federal
government's practice of mopping up grains was contributing to food
inflation, the Minister of Agriculture and Rural Development, Muhammad
Abubakar, told THISDAY in an interview that the government was only buying
off the excess grains in the market.

 

But critics insisted that food production was not enough to talk about
buying off excess grains.

 

The minister said, "No it's not mopping; the federal government is buying
the excess grains that are there to be bought.

 

"If it is not available, we will not buy and stock- what's the point of
stocking when people need it?"

 

Abubakar added, "So we are currently releasing and there are grains in the
market."

He however said though political commitment is absolutely fundamental for
addressing the food security challenge, it is "not the complete answer."

 

He said, "Strengthening food systems and chains is a shared responsibility.
Governments, industry, and consumers all have a vital role and must work
together to ensure 'farm to the table' food security."

 

Meanwhile, worried about the rising inflation, particularly the food
component, President Muhammad Buhari had recently authorised the release of
40,000 metric tons (MT) of grains from the National Strategic Grains
Reserves (SGR) to vulnerable Nigerians to cushion the effects of rising
prices of food items.

 

The government's move was aimed at cushioning the effect of high prices of
commodities across the country during the Ramadan, Easter, and Sallah
festivities.

Analysts also believed the global supply shortages caused by the
Russian-Ukraine war is exerting significant pressure on food prices,
especially wheat as local production remained inadequate in satisfying
demand.

 

WACT Onne Receives Second Largest Containership to Berth in Nigeria

 

West Africa Container Terminal Nigeria (WACT) has received the second
largest containership to berth at a Nigerian port.

 

The 5,042 TEUs containership named Lady Jane operated by OOCL shipping line
having a length overall of 294.5 meters arrived at WACT terminal Onne Port
Complex, Rivers State, on Wednesday 13th April.

 

WACT previously made history in August 2020 when it received the largest
containership to berth in Nigeria. The ship named Maersk Stadelhorn has
length overall of 300 meters and capacity to carry about 10,000 TEUs.

 

The Managing Director of WACT, Naved Zafar, said that effective coordination
by Nigeria Port Authority (NPA) and the USD112 million (about N47 billion)
investment in the terminal by APM Terminals, made it possible to handle very
large container vessels.

 

He said, "Lady Jane is the second largest ship to call at WACT. This is
important because as you know, WACT has embarked on a transformation plan
since last year with an ambition to become the most efficient and reliable
partner to our customers. Declaring a big ship like this is a clear
indication of the unwavering trust in our capabilities and an affirmation of
the investments that we have made since last year."

 

"In line with WACT's vision of becoming the gateway to East Nigeria and
beyond, we continue to stretch our boundaries by investing and expanding in
our service capabilities to deliver the best-in-class supply chain solutions
to both our shipping line customers and landside customers. The arrival of
Lady Jane is the practical manifestation of that commitment," the WACT
Managing Director further stated.

 

Also speaking, the Port Manager of Onne Port, Stanley Magaji Yitnoe, said,
"This achievement indicates that container traffic is growing. Last year,
container traffic in Onne grew by 31% but with Lady Jane bringing in
containers to discharge and to load, including full exports, container
traffic is definitely picking up in Onne. We have WACT to thank for that and
they are doing far more, as they are about to roll out a Container Freight
Station (CFS) with focus on handing agri-commodities, which means more full
exports will be loaded out of Onne Port once the CFS resume operations."

 

The Commercial Manager of WACT, Noah Sheriff, described the berthing of
large containerships at the terminal as a great achievement.

 

"It brings additional capacity both on the import and export side and all
categories of our customers stand to benefit," Sheriff said.

 

"For the import customers, the regular direct services from the Far East
coupled with our berthing window protocol, cargoes get here on time and
agents/consignees are able to get the cargo to the market quicker using our
online platforms.

 

"For export customers, Lady Jane provides more slots for export loadings,
which is important for the overall economy today. It is a good development
for our shipping line customers as well, as we are positioned to accommodate
such upgrade on the back of the recent investment," he said.

 

Sheriff said that WACT continues to increase its e-commerce capabilities
with the upcoming Truck Appointment System (TAS) product, which will further
enhance service delivery for trucks visiting its facility.

 

"Once TAS is rolled out, truckers who book appointment will not have to wait
in pre-gate lines to access the terminal. They will have direct access to
the terminal per scheduled slot. TAS booking will be similar to the seamless
online booking for physical examination product we offer today.

 

"Our vision is to make WACT the best performing terminal in West Africa by
providing safe, reliable, and cost-effective services to our customers," he
added.-This Day.

 

 

 

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.

 

 

ArcelorMittal Liberia

European Union (EU) High Representative and Vice President Joseph Borrell

"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

 

 

ArcelorMittal Liberia

Residents of ArcelorMittal Liberia communities

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.

 

 

ArcelorMittal Liberia

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

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.

 

 

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.

 

 

Kenya: Google Opens Product Development Center in Nairobi, Its First in
Africa

Google has today announced the launch of a product development center in
Nairobi, its first in the continent, to build "transformative" products and
services for the African market and the world. This comes after the tech
giant revealed plans to invest $1 billion over the next five years in
October last year. The center is Google's second major research and
development investment in Africa, after the tech giant set up an AI and
research center in Ghana in 2019.

 

Google said its will hire over 100 tech talent including software engineers,
researchers and designers over the next two years to help solve difficult
and technical challenges, such as improving the smartphone experience for
people in Africa, or building a more reliable internet infrastructure, said
Google VP for products, Suzanne Frey.-TechCrunch.

 

 

Kenya: State Confirms Resumption in Fuel Supply After Two Week Shortage

Nairobi — Motorists can now breathe a sigh of relief after the Ministry of
Petroleum confirmed that normalcy in petroleum supplies has been restored in
the country.

 

This is after almost two weeks of fuel shortage which saw motorists spend
long hours in queues to get the commodity while some petrol stations turned
away clients due to lack of fuel.

 

"By April 19, we can confirm that majority of petroleum retail stations
across the country are carrying out business as normal and the long queues
witnessed in the past two weeks are gone," the Ministry said in a statement.

 

Further, the Ministry noted that the Directorate of Criminal Investigations
( DCI ) has commenced investigations on companies that were reported not to
maintain minimum operational stocks or to hoard petroleum in the past 2
weeks.

 

The Energy and Petroleum Regulatory Authority(EPRA) also noted that it is
set to take stern action on four operators who offered petroleum for sale
above the recommended price during the shortage period.

 

The stations were located at Migori , Kehancha , Awendo and Isebania
respectively.

 

Last week, Acring Petroleum CS Monica Juma blamed the shortage on oil
marketing companies hoarding the product awaiting the mid-month review.

 

EPRA DG Daniel Kiptoo said ten oil marketing companies have received
show-cause letters and face possible cancellation of licenses over the
hoarding of the product.-Capital FM.

 

 

Somalia: Somali Government, US Company Dispute Legality of Oil Deal

The Somali government and a U.S. company are locked in a dispute over the
validity of an oil exploration agreement reached in February in Istanbul.

 

Abdirashid Mohamed Ahmed, Somalia's minister of petroleum and mineral
resources, and Richard Anderson, chief executive officer of Coastline
Exploration Ltd., signed the agreement. But in separate statements, Somali
President Mohamed Abdullahi Mohamed, known as Farmaajo, and Prime Minister
Mohamed Hussein Roble rejected the deal, declaring it "null and void."

 

Both leaders cited government decrees and directives banning all ministries
and government agencies from signing agreements with foreign governments and
organizations until ongoing parliamentary elections are finalized. The
elections are expected to conclude next month with the election of a new
president.

 

In addition, the government has instructed Attorney General Suleiman Mohamed
Mohamud to investigate the contract and take appropriate legal measures.

 

The government's position is that the agreement is in contravention of a
presidential decree dated August 7, 2021, and a Council of Ministers
directive on December 6, 2018. The mandate of the current legislative and
executive branches expired more than a year ago. The government said correct
procedures have not been followed; therefore, the agreement is "null and
void," according to a February 21 letter sent by the Foreign Affairs
Ministry to Coastline Exploration and obtained by VOA.

 

Anderson disagrees with the letter and disputes the government's
interpretation of the legality of the agreement.

 

"I won't go into the legal details of the analysis, but we believe quite
firmly that our PSAs (production-sharing agreements) we signed are legally
valid and that they're in full effect," he said in an interview.

 

VOA asked Anderson why the company ignored the Somali president's decree and
a letter from a joint parliamentary committee on natural resources that
instruct government agencies not to enter agreements during the election
period.

 

"We did not ignore anything," Anderson said. "Before we signed the PSAs in
February, we consulted with the ministry and with the SPA (Somali Petroleum
Authority), and we were assured that both the president and PM were aware of
the process and they were fine with the signing."

 

He admitted Coastline Exploration did not directly communicate with either
the president or the prime minister, but said the minister of petroleum and
members of the SPA assured them that both leaders were aware of it. Ahmed,
the petroleum minister, refused repeated VOA requests for an interview for
this report.

 

In an interview with VOA in February, Ahmed said the president knew about
the signing, but the presidential palace denied his claim.

 

Agreement details

 

Providing details of the agreement for the first time, Anderson said it was
a "fair deal" for Somalia.

 

"There is a 5% royalty that comes right off the top. Profit is split 50-50.
There is a 30% income tax on whatever profits the contractor -- i.e.,
Coastline -- makes," he said. There are various other financial benefits for
Somalia in the agreement, he added.

 

According to Anderson, all the terms of the PSAs, including the
profit-sharing percentage, are fixed for its 30-year term and will not
change during the life of the contract.

 

Somali oil experts criticized the agreement. Jamal Kassim Mursal, former
permanent secretary of the Somali Petroleum Ministry, said the agreement was
"unfair."

 

"A fixed oil royalty rate of 5% and a fixed gas royalty rate of 3%,
government share becomes 59.8%," he said. "However, if prices fall to $70 a
barrel, government share stands at 50%. Any price below $70, government
loses money to the contractor. Sixty dollars a barrel, government share
becomes just 42%."

 

Mursal said other key terms such as the discount rate, the R-factor (ratio
of cumulative revenues to cumulative costs), the cost recovery ceiling, the
exploration period and capital gains determine the overall government take.

 

"So, we cannot say it's fair," Mursal said.

 

"The fact that all was done in secret itself makes it unfair. Current
government term has ended, and the two statements from the office of PM and
president stated no government official signs a contract up until new
government is installed. So they do not have a mandate to sign such a deal."

 

Last year, the Somali government was warned of entering oil agreements by
the Financial Governance Committee (FGC), a group of experts comprising the
Somali Finance Minister, parliamentarians and a member of the World Bank.

 

In an advisory, the FGC said it identified two main concerns in the
government's approach to oil and gas contracts: incomplete compliance with
the government's legal framework, and inadequate protection of the state's
financial interests.

 

"Incomplete compliance significantly raises the risk of future legal and/or
compensation claims against FGS (Federal Government of Somalia), while
inadequate protection of FGS's financial interests risks poor value for
money over the lifetime of awards that may last for 40 years or more," said
the advisory obtained by VOA. The signed agreement was for 30 years.

 

The FGC also said no PSAs should be signed until an extractives industries
income tax is enacted. No such law has been enacted in Somalia.

 

Coastline Exploration, founded in 2018, has contractual possession of Soma
Oil & Gas, a company that collected seismic data off Somalia's shore.

 

Soma Oil & Gas was previously investigated by the United Kingdom's Serious
Fraud Office but was later cleared of wrongdoing because of "insufficient
evidence." Some of the board members of Soma Oil & Gas, including Anderson
and Alexander Djaparidze, a Russian billionaire, are board members of
Coastline Exploration.

 

"I want to tell everybody upfront that we are not corrupt. We don't need to
be corrupt," Anderson said. "No Somali government official has ever asked me
to make any kind of illegal payment. It has never happened. I would also
like to stress that no Somali politician is a shareholder of Coastline. We
are independent of the government."

 

He confirmed that Coastline paid for the flights to Istanbul and hotels for
members of the Somali delegation, who flew to Turkey to sign the agreement.

 

"I want to make very clear before we do anything and pay anything that has
anything to do with anybody in the government of Somalia, it's always
reviewed by our anti-bribery and corruption council before we make any such
payments or any such commitments," Anderson said.

 

"This was reviewed by them, and they determined that it was, you know, that
it was fine under U.S. law and under Somali law, again out of convenience."

 

Anderson said he was confident that the investigation by the Somali attorney
general would find that Coastline had complied with Somali law, and that
Coastline would be cleared to start work.-VOA.

 

 

 

Africa: 87% of IMF Loans Forcing Austerity on Crisis-Ravaged Nations:
Analysis

Washington, DC — "This epitomizes the IMF's double standard: It is warning
rich countries against austerity while forcing poorer ones into it."

 

The conditions of nearly 90% of the International Monetary Fund's
pandemic-related loans are forcing developing nations suffering some of the
world's worst humanitarian crises to implement austerity measures that fuel
further impoverishment and inequality, an analysis published Tuesday by
Oxfam International revealed.

 

"The IMF must suspend austerity conditions on existing loans and increase
access to emergency financing."

 

Oxfam found that "13 out of the 15 IMF loan programs negotiated during the
second year of the pandemic require new austerity measures such as taxes on
food and fuel or spending cuts that could put vital public services at
risk."

 

This stands in stark contrast with IMF managing director Kristalina
Georgieva's admonition to the European Union last year that the wealthy bloc
should not endanger its economic recovery with "the suffocating force of
austerity."

 

"This epitomizes the IMF's double standard," Oxfam International senior
policy adviser Nabil Abdo said in a statement. "It is warning rich countries
against austerity while forcing poorer ones into it."

 

At the start of the pandemic, the IMF issued billions of dollars in
emergency loans to developing countries with few or no conditions. However,
the institution has reverted to its highly controversial practice of
requiring nations to impose the type of austerity measures that have
exacerbated poverty and inequality, stymied countries' efforts to meet
climate goals, fueled global unrest, and even played a key role in sparking
revolutions.

 

The Oxfam report notes that the conditions of a 2021 loan of $2.3 billion to
Kenya compelled the country to freeze public sector pay for three years,
while mandating higher taxes on food and cooking gas.

 

"More than three million Kenyans are facing acute hunger as the driest
conditions in decades spread a devastating drought across the country,"
Oxfam notes. "Nearly half of all households in Kenya are having to borrow
food or buy it on credit."

 

Sudan has had to end fuel subsidies, a policy that has disproportionately
affected the nearly 50% of the population that is impoverished.

 

"The country was already reeling from international aid cuts, economic
turmoil, and rising prices for everyday basics such as food and medicine
before the war in Ukraine started," said Oxfam. "Over 14 million people need
humanitarian assistance (almost one in every three people) and 9.8 million
are food insecure in Sudan, which imports 87% of its wheat from Russia and
Ukraine."

 

Oxfam's analysis also found:

 

Nine nations including Cameroon, Senegal, and Surinam must introduce or
increase the collection of value-added taxes (VAT), which often apply to
everyday products like food and clothing, and fall disproportionately on
people living in poverty; and

Ten countries including Kenya and Namibia are likely to freeze or cut public
sector wages and jobs, which could mean lower quality of education and fewer
nurses and doctors in countries already short of healthcare staff. Namibia
had fewer than six doctors per 10,000 people when Covid-19 struck.

"The pandemic is not over for most of the world," said Abdo. "Rising energy
bills and food prices are hurting poor countries most. They need help
boosting access to basic services and social protection, not harsh
conditions that kick people when they are down."

 

"The IMF must suspend austerity conditions on existing loans and increase
access to emergency financing," he added. "It should encourage countries to
increase taxes on the wealthiest and corporations to replenish depleted
coffers and shrink widening inequality. That would actually be good advice."

 

Oxfam's analysis comes as the IMF's annual spring meetings get underway in
Washington, D.C.

 

Last week, the leftist group Progressive International held an inquiry into
the IMF at which lawyers, experts, and parliamentarians from nine nations
recommended actions from bringing the institution under the United Nations'
Economic and Social Council to taking it to the International Court of
Justice over its alleged "illegality, impunity, and disregard for human
rights."-Common Dreams.

 

 

 

 

 

 

 

 

 

 

 

 


 


 


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
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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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