Major International Business Headlines Brief::: 21 April 2022

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com         <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 21 April 2022 

 


 

 


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

 


 

 


ü  Ukraine war: World Bank warns of 'human catastrophe' food crisis

ü  Germany rules out immediate end to Russian oil imports

ü  Lockdown unlocks confidence to go make-up free

ü  Shanghai lockdown: European firms face 'logistical nightmare', says business group

ü  Fake reviews to be illegal under new rules

ü  Price rises will be horrific says Scottish Power boss

ü  Nigeria: Rethink Your Policy On Fuel Subsidy, World Bank Tells Nigeria

ü  Nigeria: Shell Urges Shareholders to Reject Activist's Pressure to Hastily Abandon Fossil Fuels

ü  Rwanda: Govt Seeks Investor to Buy Burera Beach Hotel

ü  Nigeria: World Bank Asks Federal Govt to Reconsider N4trn Fuel Subsidy

ü  ArcelorMittal Liberia Announces New Chief Executive Officer

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

ü  South Africa Floods Could Hurt China Trade

ü  Ackman gives up on Netflix, taking $400 mln loss as shares tumble

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Ukraine war: World Bank warns of 'human catastrophe' food crisis

The world is facing a "human catastrophe" from a food crisis arising from Russia's invasion of Ukraine, according to the President of the World Bank, David Malpass.

 

In an interview with BBC economics editor Faisal Islam, Mr Malpass, who leads the institution charged with global alleviation of poverty, warned that record rises in food prices would push hundreds of millions people into poverty and lower nutrition, if the crisis continues.

 

"It's a human catastrophe, meaning nutrition goes down. But then it also becomes a political challenge for governments who can't do anything about it, they didn't cause it and they see the prices going up," he said on the sidelines of the IMF-World Bank meetings in Washington.

 

The World Bank calculates there could be a "huge" 37% increase in food prices, which is "magnified for [the] poor", who will "eat less and have less money for anything else such as schooling. And so that means that it's really an unfair kind of crisis. It hits the poorest the hardest. That was true also of Covid".

 

Ukraine war causes 'giant leap' in food prices

Ukraine war 'catastrophic for global food'

The price rises are broad and deep, he said: "it's affecting food of all different kinds oils, grains, and then it gets into other crops, corn crops, because they go up when wheat goes up".

 

There was enough food in the world to feed everybody, he said, and global stockpiles are large by historical standards, but there will have to be a sharing or sales process to get the food to where it is needed.

 

Mr Malpass also discouraged countries from subsidising production or capping prices.

 

Instead, he said, the focus needed to be on increasing supplies across the world of fertilisers and food, alongside targeted assistance for the very poorest people.

 

The World Bank chief also warned of a knock on "crisis within a crisis" arising from the inability of developing countries to service their large pandemic debts, amid rising food and energy prices.

 

"This is a very real prospect. It's happening for some countries, we don't know how far it'll go. As many as 60% of the poorest countries right now are either in debt distress or at high risk of being in debt distress," he said.

 

"We have to be worried about a debt crisis, the best thing to do is to start early to act early on finding ways to reduce the debt burden for countries that are on have unsustainable debt, the longer you put it off, the worse it is," he added.

 

The acknowledgement by the World Bank president that we have to be worried about a developing country debt crisis, is very significant.

 

The combination of massive pandemic debts with rising interest rates, and rising prices is truly toxic.

 

The talk on the sidelines here at the IMF and World Bank meetings is that the rich countries told emerging economies not to worry about borrowing in order to spend to help suppress the pandemic.

 

Now those countries are wondering if these record debts will be written off.

 

Campaigning groups are preparing mobilisations over a pandemic debt jubilee. But there is silence from the rich country lenders, so far.

 

And there is a very new dynamic these days. The bankers to whom these sums are owed are no longer just in the West.

 

China is now, very broadly, owed as much as the entire collection of Western creditors known as the Paris Club.

 

How will it respond to calls for leniency on the repayment of loans?

 

Mr Malpass says of China: "they have different rules, for example, contracts that have non-disclosure clauses, meaning you can't share the terms with other people that makes it very hard to restructure those debts".

 

China has also secured its lending against ports and natural resources. Sri Lanka is a case in point right now.

 

The unwinding of all of this might not be orderly, and could have significant geopolitical consequences.

 

2px presentational grey line

Earlier this month, the United Nations said that the Ukraine war had led to a "giant leap" in food prices, as they hit a new record high in March.

 

It came as the war cut off supplies from the world's biggest exporter of sunflower oil and the cost of alternatives climbed.

 

Ukraine is also a major producer of cereals such as maize and wheat which have risen sharply in price too.

 

The UN said "war in the Black Sea region spread shocks through markets for staple grains and vegetable oils".

 

The UN Food Prices Index tracks the world's most-traded food commodities - measuring the average prices of cereal, vegetable oil, dairy, meat, and sugar.

 

Food prices are at their highest since records began 60 years ago, according to the index, after they jumped nearly 13% in March, following February's record high.

 

Food commodity prices were already at 10-year highs before the war in Ukraine, according to the index, because of global harvest issues.-bbc

 

 

 

Germany rules out immediate end to Russian oil imports

Germany is moving "as fast as possible" to end its reliance on Russian energy, but it will take time, the country's finance minister has said.

 

"We have to be patient," Christian Lindner told the BBC.

 

By contrast, Foreign Minister Annalena Baerbock had earlier said Germany would end oil imports by the end of the year, with gas following.

 

Ukraine's president Volodymyr Zelensky has criticised Germany for failing to curb Russian energy imports.

 

He described energy payments as "blood money".

 

Proceeds from the sale of Russian oil and gas amount to around $1bn (£770m) a day, undermining international efforts to put economic pressure on President Vladimir Putin to end the war.

 

The US has already banned Russian oil imports and the UK plans to phase them out by the end of the year.

 

But EU countries are more heavily dependent on Russian energy, with Germany currently buying around 25% of its oil and 40% of its gas from Russia.

 

Save energy and annoy Putin, Germans told

Could the world cope without Russian oil and gas?

Mr Lindner told the BBC that his country was working to implement an embargo on Russian energy but that he preferred using sanctions which "hurt [Putin] more than us".

 

He said a sudden halt to Russian energy imports could see the physical shutdown of German producers such as manufacturers and carmakers.

 

Earlier this week, German economic institutes warned that immediately halting Russian imports would spark a sharp recession in Europe's biggest economy by 2023.

 

"We are willing to stop all energy imports from Russia, it's just a matter of time," said Mr Lindner, who is leader of the liberal Free Democrats, one constituent of Germany's coalition government.

 

He insisted that any calculation on Vladimir Putin's part that Germany would continue to rely on Russian energy was "wrong".

 

"In the end, we don't want to have any further business with Putin," he said.

 

However his stance was at odds with statements made by Germany's foreign minister, Ms Baerbock, who is Green Party co-leader.

 

Ms Baerbock said Germany would halve Russian oil imports by the summer and eliminate them altogether by the end of the year, to be followed quickly by a reduction in Russian gas imports.

 

Germany's finance minister was keen to sound tough on Russia and appears acutely aware of the criticism levelled at his country for dragging its feet over a full energy embargo on the Kremlin.

 

His basic message was - it is coming, but not quite yet, because it is impossible to enact immediately and would probably lead to shutdowns of large swathes of the German economy.

 

President Zelensky used a BBC interview last week to demand an immediate embargo on Russia's lucrative oil trade, accusing those sending euros and dollars to Kremlin-controlled oil giants of "trading in blood". He singled out Germany alongside Hungary for blocking EU action.

 

Mr Lindner said Germany would move as fast as possible, but did not confirm that would be within a year.

 

In Berlin this issue appears to be putting some stress on the three-party governing coalition. Mr Lindner leads the free market FDP, not the normal bedfellows for the Social Democrats and Greens.

 

Meanwhile Green Party leader Annalena Baerbock, also the foreign minister, said dependence on Russian oil would definitely finish by the end of the year. The Chancellery under Olaf Scholz appears to be the most cautious on this issue.

 

Germany has already called off the opening of Russia's Nord Stream 2 gas pipeline in response to the war, a project pursued by previous governments of different political stripes.

 

But Mr Lindner said he was concerned about the macroeconomic effects an overnight shut-off of Russian energy would cause.

 

"I don't fear [the] economic costs [of buying less Russian energy]. I fear the physical scenario, if you have to stop the supply, for a complete production line, this causes more than economic costs," Mr Lindner told the BBC.

 

"I think it's preferable to have sanctions, which we can stand for months, for years," he said.

 

Mr Lindner said Russia's invasion of Ukraine was the root cause of growing geopolitical and economic risks including inflation, food shortages and a debt crisis for low income countries.

 

But he also criticised the approach of previous Berlin governments of relying on Russia for oil and gas.

 

"It was a strategic miscalculation from German governments, over the last two decades, and now we have to work on energy diversification," he said.-BBC

 

 

 

Lockdown unlocks confidence to go make-up free

"Before, you wouldn't have caught me picking up a pint of milk without my face on," says Charlie, who works for a training business.

 

But then the pandemic struck and now she just doesn't wear as much as she used to, even to work.

 

"I was stuck at home furloughed with two kids, my husband was away, so I spent a lot of time outside without make-up on, and realised no one cares," she explains.

 

Charlie feels the pandemic has given her the confidence to embrace a more natural look. And it seems she's not alone.

 

The use of cosmetics was already declining before 2020, but a survey of 10,000 British women by market research firm Kantar has revealed big changes to post-lockdown beauty routines.

 

Make-up purchases and frequency of wearing products has dropped steeply in the last two years, by almost a third, it suggests.

 

Colleagues of Charlie's at Rhino Safety, on the outskirts of Sandbach in Cheshire, agree.

 

Director Cate Walter admits she splurges on getting her nails and eyebrows done. But her daily regime is minimal; a bit of blusher and maybe mascara for a day in the office.

 

"I just don't want to look ill," she jokes.

 

Although the business has a relaxed feel, Cate says she has definitely noticed a change since staff started working remotely.

 

"You do not need to spend as much time on your appearance, especially as you're potentially only seen from the waist up anyway," she says, adding that being fully made-up is not something she, nor many clients, expect.

 

"I'm not going to expect you to be in a full face of make-up and a suit when you're essentially sat at your kitchen table," she says.

 

Changing habits

Kantar surveyed 300,000 women worldwide, as well as looking at spending data, and found that British women have made the biggest change in their grooming habits in recent years.

 

Cate Walter says she doesn't expect staff to wear a lot of make-up especially if they are working from home

"Manufacturers are going to struggle and they're really going to have to work harder to get our money from us," said Kantar analyst Maya Zawislak.

 

Their research shows a 19% fall in make-up sales since 2019, but the pandemic is only part of the story.

 

Ms Zawislak adds that a looming cost-of-living crisis could also affect what consumers buy.

 

The cosmetics industry is struggling on two fronts. As the squeeze on all our budgets really starts to bite people are looking for ways to cut their spending.

 

But the pandemic has also given some women the self-confidence to try going make-up free, or to let their hair go grey.

 

Skin care products have not seen the same decline as cosmetics though, as we've moisturised with enthusiasm after all the anti-bac gel. And self-care has become an important buzz word in these difficult times.

 

Overall it seems people are reluctant to spend on what might be seen as frivolous, but happier to splurge on something that feels like it's doing them good.

 

Historically, economists would say that lipstick sales thrive during difficult economic times. Typically, this little luxury might have been a way for cash-strapped consumers to treat themselves.

 

But this time the use of masks and remote working has seen the sale of red lip products fall by 40%.

 

The boss of Boots in the UK, Sebastian James, told the BBC his chain had seen the same trend.

 

"Over the pandemic we saw a lot less colour cosmetics in our trade, lipsticks and so on, and a lot more spend on self care , so skin care, haircare, and particularly what we call expert skin care," he told the Today programme.

 

"Certainly year-on-year we're well up in [our beauty sales] but definitely people are buying different stuff."

 

Pandemic fashion: 'From sequins to sweatpants'

'My closed hair salons cost me £1,000 a day'

On the other hand, rather than just buying less, some people have switched to different products.

 

"I probably buy less now, but maybe higher-end price products," says Charlie's colleague, Julie Hopwood.

 

Julie uses a tinted moisturiser plus a bit of eye-shadow. "I think eyes did become more important when we were all wearing masks," she explains, adding that she has felt inspired to try new things, watching tutorials online during lockdown.

 

Both Julie and Charlie spend about half an hour getting ready for work and maybe an hour at the weekend. Changes to their morning routine mean they can spend time going to the gym or with family instead.

 

The relaxation of what we wear to work started long before the pandemic for many sectors. But it appears to have accelerated during the pandemic, so much so that last month the Office for National Statistics removed men's suits from their "typical" basket of consumer goods.

 

The question for the cosmetic industry, and for related areas such as workwear, is whether these new habits will stay or fade as fashions and behaviours shift.

 

Sarah Finn, for one, hopes they stick.

 

"I used to be the odd one out, because I didn't wear make-up," she says. "I get up, get showered and I'm out of the door."

 

Now, no-one else seems to be wearing make-up either, says Sarah, and possibly, like her, they'll decide they'd rather keep the morning lie-in.-BBC

 

 

 

Shanghai lockdown: European firms face 'logistical nightmare', says business group

A European business group says Western companies in Shanghai are facing a "logistical nightmare" as they start to reopen after a city-wide lockdown.

 

The European Union Chamber of Commerce says that it expects the problems to last for several more weeks.

 

On Friday, Chinese officials said they will help more than 600 firms restart operations in the major financial hub.

 

It comes after UK and US business bodies also said their members have been hit by Covid measures in China.

 

Although some firms have restarted operations in Shanghai by having their employees remain on-site, "many companies still face the challenges of labour shortages and logistical difficulties," said Bettina Schoen-Behanzin, vice president of the European Union Chamber of Commerce in China and head of its Shanghai chapter.

 

"We estimate that less than 30% of their workforce are eligible to go to work due to the ongoing lockdowns, so there's a huge gap between policy and the reality of implementation," she added.

 

"The consensus is that this logistical nightmare will continue till mid-May," Ms Schoen-Behanzin said.

 

Whole communities forced to move in Shanghai's war on Covid

China spending and employment hit amid lockdowns

In recent weeks, business groups representing companies from the UK and US have also raised concerns about the impact of lockdowns in Shanghai and other Chinese cities.

 

Most British firms in China expect their profits to fall this year because of local Covid restrictions, a survey by the British Chamber of Commerce in China showed.

 

More than two-thirds of the more than 200 companies surveyed said that they expected lower revenues this year. Close to half of them said the restrictions had affected their ability to attract and retain foreign talent.

 

Last month, a survey of over 160 companies by the American Chamber of Commerce in China and Shanghai found that 99% of them had been affected by the pandemic.

 

It also showed that a third of companies had their "business operations fully stopped for two or more days due to Covid-19 control measures".

 

The financial, manufacturing and shipping hub of Shanghai saw a surge in Covid infections earlier this year. It was locked down by authorities for mass testing in late March.

 

As restrictions have been eased, Tesla has recently restarted production at its 'giga factory' in the city.

 

"We did lose a lot of important days of production," its chief executive Elon Musk said on Wednesday.

 

However, the Shanghai factories of German carmaker Volkswagen (VW) and Apple iPhone producer Pegatron remain closed.

 

VW said it was evaluating the "feasibility" of resuming operations in Shanghai.

 

Meanwhile, Pegatron told the BBC on Wednesday that it was "waiting for further instruction from [the] local government".-BBC

 

 

 

Fake reviews to be illegal under new rules

People are set to be better protected from fake reviews and "subscription traps" under plans to tackle rip-offs. 

 

Proposals include making it "clearly illegal" to pay someone to write or host fake reviews.

 

A competition watchdog will get new powers to fine firms up to 10% of their global turnover for bad business practices.

 

But an industry group said the new rules shouldn't put "any further unnecessary burdens on businesses".

 

'Why I write fake online reviews'

UK firms caught buying five-star Google reviews

The average UK household spends about £900 each year after being influenced by online reviews and spends £60 on "unwanted subscriptions", the government said.

 

Under the proposed rules, there will be a new laws against offering to write and commissioning fake reviews.

 

Websites hosting consumer reviews will have to take reasonable steps to check they are genuine.

 

Reviews website Trustpilot said it "welcomes legislation introduced with the aim of protecting consumers from fake reviews".

 

It said it is "continually working to ensure we are taking appropriate action against attempts to manipulate reviews on our site".

 

Tripadvisor, a travel reviews website, said its operations "are geared towards identifying, blocking and removing fake reviews".

 

"The most direct way to protect consumers from biased and inaccurate information is to focus public policies and enforcement on the bad actors," said Becky Foley, senior safety director at Tripadvisor.

 

Subscription action

The government also wants to bring in new rules against "subscription traps", in which businesses make it difficult to leave a contract.

 

Businesses will have to give clearer information to consumers before they sign up to a subscription contract.

 

They will need to send a reminder that a free trial or low-cost introductory offer is coming to an end, and ensure customers can leave a contract in a "straightforward, cost-effective and timely way", the government said.

 

Small business minister Paul Scully said the consumers deserved better and the majority of business doing the "right thing" deserved "protection from rogue traders undermining them".

 

"No longer will you visit a five star-reviewed restaurant only to find a burnt lasagne or get caught in a subscription in which there's no end in sight," he said.

 

If the government proposals are made into law, prepayment schemes such as Christmas savings clubs will also have to safeguard fully customers' money through insurance or trust accounts.

 

Shoppers' savings clubs - where consumers pay for goods and services in instalments throughout the year - are not currently covered by the Financial Services Compensation Scheme.

 

Under the proposals, even if the company goes bust, shoppers' money will still be protected.

 

The rules aim to prevent issues such as the collapse of Christmas savings club Farepak, which saw tens of thousands of people lose money when the company went bust in 2006.

 

Watchdog powers

The Competition and Markets Authority (CMA) will be able to award compensation to consumers and directly impose financial penalties worth up to 10% of global annual turnover for businesses that transgress the new rules, or up to £300,000 in the case of an individual.

 

The government said CMA's new powers will mean cases will no longer need to go through the courts.

 

Instead, the CMA will be able to award compensation to consumers and directly impose financial penalties.

 

Rocio Concha, Which? director of policy and advocacy, said the impact of fake reviews was "enormous".

 

She said the process to "hold businesses to account" was "far too complicated and lengthy".

 

"Britain's consumer and competition laws are in desperate need of an upgrade," Ms Concha added.

 

'Devil in the detail'

Kate Nicholls, chief executive of UK Hospitality, said the extra powers the CMA stands to gain would "help stamp out the practice of fake reviews, which do irreparable damage to businesses".

 

However, she said the "devil will be in the detail" of the policy.

 

UK Hospitality wants to see that the "consumers are safeguarded without placing any further unnecessary burdens on businesses".

 

She said the new CMA powers should not "unfairly punish businesses" especially small businesses, adding that there needed to be "a clear right of appeal".

 

"Fairness for both businesses and consumers, particularly when it comes to offering refunds, will be crucial and any new measures must also be made in the context of a sector facing an onslaught of challenges after a difficult two years," she added.

 

The government also said the CMA's powers will allow it to "have stronger tools to tackle companies colluding to bump-up prices" and to also stop "killer acquisitions" in which big businesses snap up rivals before they can launch new products or services.

 

CMA chief executive Andrea Coscelli said the new rules were an "important milestone towards strengthening the CMA's ability to hold companies to account, promote fair and open markets, and protect UK consumers".-BBC

 

 

 

Price rises will be horrific says Scottish Power boss

Scottish Power chief executive Keith Anderson said 8,000 had called a hotline with worries about their ability to pay

The chief executive of Scottish Power has said energy price rises later this year are going to be "horrific".

 

Keith Anderson told MPs at Westminster "so many people are really going to struggle".

 

He said the 54% increase in the energy price cap was already affecting customers and another steep rise is expected in October.

 

Mr Anderson said his company had 8,000 calls last week to a hotline for people worried about their ability to pay.

 

The Scottish Power chief appeared before the House of Commons Business, Energy and Industrial Strategy Committee alongside the bosses of E.ON, EDF and Centrica, which owns British Gas.

 

Mr Anderson said it was too soon for people to have run up large debts as a result of the April price rise but there was a "massive anxiety" about what they were going to do to cope with the soaring costs of gas and electricity.

 

 

He said a lot of people were facing the issue for the first time.

 

How high could my energy bills go?

>From 1 April, about 18 million households on standard tariffs saw an average increase in gas and electricity prices of £693 - from £1,277 to £1,971 per year.

 

Some 4.5 million prepayment customers could see an even higher increase.

 

Customers on fixed rates are likely to see a significant increase when their deal ends.

 

Graphic showing how the energy price cap has changed

Mr Anderson said: "My biggest concern is when we get to October, particularly among the most vulnerable and the poorest.

 

"In summer consumption goes down. Come October that's going to get horrific, truly horrific."

 

Mr Anderson said the size and scale of the problem was beyond anything he could deal with or indeed his industry.

 

He called for a significant shift in government policy and approach.

 

The Scottish Power boss said the government should set up a "deficit fund" and wipe £1,000 off the bill of anyone who is deemed to be in fuel poverty and on pre-payment meters, which would be repaid over 10 years by all customers or the government.

 

Mr Anderson said such a policy was required for people in fuel poverty that "puts their bill back to where it used to be before the gas crisis".

 

He called that "stage one", which should be followed up with a social tariff that gives poorer households discounted energy. This should replace the current price cap, he said.

 

Mr Anderson added it is "perverse" that customers with prepayment meters - who are likely to be more vulnerable - pay more for their energy than those who pay by direct debit.

 

'Record energy prices'

Meanwhile, the Scottish Parliament's net zero, energy and transport committee heard that the high costs would continue for some time yet.

 

Dr Richard Lowes, senior associate at The Regulatory Assistance Project, said people "haven't started feeling the pinch yet", adding there is unlikely to be any "let up" before 2023.

 

Dr Matthew Hannon, from Strathclyde University's Hunter Centre for Entrepreneurship, warned that the energy price cap could rise again in October - with the average electricity and gas bill paid by direct debit forecast to go from "just shy of £2,000 to roughly £2,600".

 

He told the committee that people in the UK should "brace themselves for record energy prices".

 

Dr Hannon added: "There's probably two key factors which I expect will start to set the scene for whether we see bills starting to drop.

 

"That's the extent to how quickly we start to decouple our energy consumption from gas - that's both for power generation and also for heat - and I think associated with that is some of the difficulties with decoupling wholesale electricity prices from gas more broadly.

 

"So even if we aren't consuming much gas, the price of gas will dictate, to a large extent, the price of electricity.

 

"I think the other key factor here is the extent to which we can drive forward on energy efficiency."-BBC

 

 

 

Nigeria: Rethink Your Policy On Fuel Subsidy, World Bank Tells Nigeria

The President of the World Bank Group, Mr. David Malpass has once more reiterated the need for Nigeria's federal government to reconsider its policy on fuel subsidy, saying that the huge amount being expended on the policy could be channeled to other critical sectors.

 

Malpass said this yesterday, while responding to a THISDAY question during a media briefing at the ongoing World Bank/International Monetary Fund Spring Meetings in Washington DC.

 

The Senate last week approved the total sum of N4 trillion for petrol subsidy in 2022. The figure represented the amount contained in two separate requests by the President to the National Assembly for approval. The President, had in a letter to the Legislature dated 10th February, 2022, sought an additional N2.557 trillion to fund subsidy payments from July to December, 2022.

The World Bank had last November sounded the alarm bells to Nigeria, saying further delay in removing the fuel subsidy which had been described as a major drain and waste on the economy could see federal and state governments unable to pay salaries from 2022. The Lead Economist, Nigeria Country office of the World Bank, Marco Antonio Hernandez, had painted a gloomy picture of Nigeria if the country decides to continue with the controversial fuel subsidy.

 

But speaking during the media briefing, Malpass pointed out that generalised subsidies have significant negatives effects on any system.

 

"One is that they are expensive because they go to everyone and they are often used by people with upper incomes than by people with lower incomes so they are not targeted.

"So, we encourage that when there is need for subsidy, either food or for fuel, that it should be carefully targeted at those most in need of it. And so, we have encouraged Nigeria to rethink its subsidy effort," he said.

 

Speaking further, the World Bank boss reiterated the need for the country to do away with multiple exchange rate system, which according to him was often, "complicated and is not as effective as it would be if there were a single exchange rate."

 

He added: "The most useful thing for developing countries is to have a single exchange rate that is market-based, that is stable over long periods of time as that attracts investment and so that would help."

 

Malpass noted that Nigeria also has trade barriers that continue to distort trade and capital flows, urging the federal government to improve on this so as to help the country and its people move forward.

 

Commenting on the spate of insecurity in the country, he said: "I take note of the complicated situation that they face where there are weapons flowing into northern Africa that find their way into to none Nigerians that create violence in Nigeria.

"This is a very challenging situation that the government faces. I think all over the world, people should have an understanding of the fragility that is facing several parts of the world, but in particular, the Sahel and the Sub-Saharan Africa area where the weapons flow from outside of Africa are putting a great burden on governments around the continent.

 

"Nigeria has huge opportunity because of its natural resources and because of its people, and I think I could see its growth accelerate with improvements in policy."

 

Meanwhile, the International Monetary Fund (IMF) has stressed the need to boost agricultural productivity in Africa and get farmers to produce more, even as it noted that 20 countries in the region were either in debt distress or very close to debt distress.

 

Speaking at the opening press conference of the ongoing World Bank/IMF 2022 spring meetings holding virtually, the Managing Director of the Fund, Kristalina Georgieva, said the multilateral institution was working on debt restructuring for the affected countries.

 

She stated that the IMF and its partners had agreed on an action plan to address the situation.

 

"In Sub Saharan Africa, 20 countries are in bed distress or very close to debt distress, with interest rates going up. This burden of debt is intolerable. So working to get that restructuring currently, this is a priority for us. And this is why I talked about the common framework," she said.

 

Whilst noting that the high and rising food prices were of particular concerns, especially in poor countries where there was a growing risk of a food crisis, she said an international action to avoid it was critical.

 

"Fighting inflation through monetary policy tightening raises the costs of servicing debt. For low-income countries, its burden has reached 50 percent of GDP, placing 60 per cent of these counties at or near debt distress," the IMF boss added.

 

She noted: "To address debt, countries need domestic policies that can help bring their budgets back on track, while providing targeted assistance to the most vulnerable. They can help finance this with more equitable tax policies."

 

Furthermore, she said the ongoing Ukraine war had resulted to spike in global inflation as well as insecurity.-This Day.

 

 

 

Nigeria: Shell Urges Shareholders to Reject Activist's Pressure to Hastily Abandon Fossil Fuels

Shell Plc's board has told shareholders to reject a Dutch activist group's resolution that asks the energy company to set more stringent climate goals.

 

It said that adopting the "Follow This" vote, which wants the company's policies to be more consistent with the Paris climate accord, "could result in unrealistic interim targets that are harmful" to its own energy transition strategy and good governance.

 

Even in Nigeria, some International Oil Companies (IOCs), including Shell, have announced plans to exit onshore and shallow water operations in line with their plan to focus on cleaner sources of fuels.

But the climate activists insist that the oil companies must do more to completely abandon hydrocarbons in the nearest future.

 

To convince investors that its already doing enough, Bloomberg reported that Shell will put its energy transition progress report to a non-binding vote at the annual shareholder meeting scheduled for May 24.

 

The company won the backing of 89 per cent of investors when it put the green plan to the ballot for the first time last year. Shell said at the time that it would publish an updated strategy every three years, and seek an advisory vote on its progress every year.

 

At the same time, the activists' climate proposal that's similar to the one filed this year received 30 per cent votes in favour, the most it has ever garnered since it began filing with Shell in 2016.

 

Climate conscious investors and groups enjoyed one of their most successful years ever in 2021. Shareholders voted for reducing emissions at Chevron while a small hedge fund managed to appoint new members to Exxon Mobil's board. Besides Shell, the activists' resolutions filed with BP Plc and Equinor ASA received more support than ever before.

But Shell has said that it's making strong progress toward net-zero carbon by 2050, with "critical investment decisions" in solar energy, wind and hydrogen.

 

The company cut absolute emissions from its operations and the energy it uses to run them by 18 per cent last year from 2016 levels and aims to halve them by the end of this decade.

 

Progress on the key scope 3 emissions -- which make up the bulk of its greenhouse gases and are associated with the end-use of its products -- were little changed last year.

 

The company's Annual General Meeting (AGM) will be held in London for the first time since the unification of Royal Dutch Petroleum Co. and Shell Transport & Trading Co. in 2005.

 

Since then, shareholders had been assembling in The Hague where Shell was based, before it shifted its headquarters to the UK capital.

 

Meanwhile, Shell has started to withdraw staff from its joint ventures with Russia's Gazprom as it moves forward with plans to exit investments in response to the war in Ukraine.

 

Dozens of Shell employees on temporary assignment at the Sakhalin-2 liquefied natural gas export project in Russia were removed over the weekend to be relocated back to other offices, according to people with knowledge of the matter.

 

According to Bloomberg, operations at the facility are unlikely to be affected by the move.

 

"Our key focus in this process is safety of our people and operations and compliance with applicable laws," a Shell representative was quoted as saying.

 

Some of the world's top energy producers, including Shell and Exxon Mobil, pledged to exit Russian projects in a bid to reduce reputational damage after Moscow's military offensive in Ukraine.

 

Shell said earlier this month the withdrawal will result in $4 billion to $5 billion of impairments.

 

London-based Shell had increased its effort to distance itself from Moscow after the company came under fire in early March for purchasing Russian crude at a steep discount.

 

Since then, Shell said it won't make any new purchases of Russian oil or gas. The energy major has also idled LNG vessels chartered from Russian companies.-This Day.

 

 

 

Rwanda: Govt Seeks Investor to Buy Burera Beach Hotel

The government has issued a tender calling for bids to buy Burera Beach Hotel.

 

The hotel, which is meant to enhance tourism in Burera district, is located on Burera Lake shore in Nyamabuye Cell, Kagogo Sector.

 

In 2015, officials had promised the construction of the Hotel to be completed by December that year at a cost of Rwf350 million.

 

According to a request for proposals for the acquisition of Burera Beach Hotel issued on April 11, 2022, Rwanda Development Board (RDB) sought to procure interested individuals, companies and/or consortiums to purchase the Hotel from the government through a competitive bidding process.

Government is the only shareholder in the Hotel.

 

Among the eligibility requirements for bidders include possession of a bid security of $50,000 from a local or international bank; and a copy of the company registration certificate of the bidding company is a necessity.

 

Also, a bidder has to submit a signed statement by a duly authorised representative of the bidding company attesting the company is in good financial order, is not bankrupt, is not having their affairs managed by a court, has not entered into an arrangement with its creditors, or has not suspended its business, or similar or related situations.

 

According to RDB, a bidder should also provide a technical proposal comprising the items clearly indicating the strategies and the actions to be undertaken to run the hotel with a clear timeline, provide a detailed business and investment plan highlighting ability and actions to revamp and upgrade the hotel, the proposed capital investment and projections on jobs to be created.

Hotel's amenities

 

The request for proposals for the acquisition of the hotel shows that it has a building with a bar and restaurant among other facilities.

 

It also has a counter, store, two restrooms and two urinals, two toilets, terraces, and a kitchen.

 

Other facilities include 10 identical accommodation houses counting 580 Sqm - each has a bedroom, living room, bathroom, balcony; and two larger identical accommodation houses having 126 Sqm, each with two bedrooms, three bathrooms, and a living room.

 

In addition, it has a multipurpose hall covering 501.5 sqm surface, and a Barraza for the multipurpose hall (with 117 sqm), a car park for the multipurpose hall, and land covering 11764 sqm.

 

Factors for privatisation

The decision to privatise the hotel came after a series of disagreements between the District and Nsengiyumva Barakabuye, who had a contract to manage it.

 

The disagreement came from the works that the contractor wanted to be done before the hotel could begin to operate, but the district faced a funding deficit for the works.

 

The investor had requested that some activities be carried out by the District before the operationalisation of the hotel. They included; replacing mattresses for single beds [with quality mattresses], equipping the reception desk and office with chairs, as well as rehabilitating the electricity [supply system] and installing security lights.

 

Others were providing the hotel with internet connectivity, and requesting contractors who built the hotel to rehabilitate walls that had started being damaged as a result of humidity.

 

The New Times understands that on February 27, 2020, the District wrote to the Ministry of Justice seeking to cancel the contract with the entrepreneur. It argued that it realised he was imposing unrealistic conditions on it, but sought legal advice from the Ministry of Justice on whether that would be in compliance with the law.

 

According to feedback dated April 10, 2020 from the Ministry of Justice, the Ministry resolved that the District should do its best to ensure that the necessary works under its responsibilities be done before the contractor is requested to start operationalising the facility.

 

Meanwhile, Barakabuye, told The New Times that the issue between him and the District has not yet been solved, observing that he will consider a way forward later [after the hotel has been privatised].

 

He said that in 2017, he signed a contract with Burera District to manage the Hotel for 21 years, indicating that he was expecting to make a profit from the venture. However, he did not disclose how much he had invested in the venture so far.

 

He said the district had the authority to decide the hotel's fate since it has rights as owner.

 

"We had signed a contract under which I would manage it [the hotel] for those years [21], but the property remains theirs. Whatever decision they can make about it, I cannot overturn it because I do not have power over them. However, the fact is that we have a contract that has terms on how it should be terminated," he said.-New Times.

 

 

 

Nigeria: World Bank Asks Federal Govt to Reconsider N4trn Fuel Subsidy

Days after the National Assembly (NASS) accented to the payment of N4trillion for fuel subsidies, the president of the World Bank Group, David Malpass, has called on the federal government to rethink its decision on subsidy.

 

This is as he said the multiple exchange rate system being run by Nigeria is not effective in attracting investments into the country. Malpass, while fielding questions yesterday at the ongoing World Bank/ IMF 2022 Spring Meetings holding virtually noted that "generalised subsidies have significant negatives.

 

"One is that they are expensive because they go to everyone and they are often taken more used by people with upper incomes than by people with lower incomes so they are not targeted. So, we encourage that when there needs to be a subsidy for either food or for fuel, that it be carefully targeted for those most in need. And so, we have encouraged Nigeria to rethink its subsidy effort.

"Also, two other things I would mention on Nigeria is that it runs a multiple exchange rate system, which is complicated and is not as effective as it would be if there were a single exchange rate. The most useful thing for developing countries is to have a single exchange rate that is market base, that is stable over long periods of time as that attracts investment and it also means that there's discipline within the country's fiscal policy so that would help.

 

"Nigeria also has trade barriers that distort trade flows, and that could be improved substantially in order to help the people in Nigeria move forward. I would take note of the complicated situation that they face where there are weapons flowing into northern Africa that find their way into to non-Nigerians that create violence in Nigeria. This is a very challenging situation that the government faces. I think all over the world, people should have an understanding of the fragility that is facing several parts of the world but in particular the Sahel and the Sub-Saharan Africa area where the weapons flow from outside of Africa is putting a great burden on governments around the continent.

 

 

"Nigeria has huge opportunity because of its natural resources and because of its people, and I think could see its growth accelerate with improvements in policy." On attracting investments as well of provision of debt instrument and debt sustainability, Malpass said "countries should, should put in place policies that are strong and that attract investment by their own citizens and by foreigners. Some of those can be revenue mobilisation policies, but very important, they should be growth policies, and they should attract private sector investment.

 

"There's been a tendency to have too much emphasis on government led investment, which doesn't end up adding to the competitiveness and the productivity as much as it should if it were less centralized.

 

"So, I think those steps are important. As far as eurobonds, that the challenge is for governments to use the proceeds very effectively now, if they borrow. A giant conflict of interest is that sitting governments are able to borrow and then future governments and the people of their countries have to pay back the borrowing. Remember, when you borrow principal, you only get to do it once, even if you roll over at 0 per cent interest rates into the future, which isn't actually available for developing countries.

 

"If you roll over at a low interest rate, you still are not able to borrow the principal. Again, it's only a one-time supply of money and that has to be used very effectively. And my worry is that hasn't been the case in certain countries and they are left with unsustainable debt. It is important that we have prompt early resolution processes for unsustainable debt. And we're working on that with the IMF collaborating and encouraging the G20 to move quickly in that regard," he stated.-Leadership.

 

 

 

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

 

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.

 

 

ArcelorMittal Liberia

Contractors at work at the clinic construction site in Zoweintaa

"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.

 

 

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.-This Day.

 

 

 

South Africa Floods Could Hurt China Trade

Johannesburg — Some of the worst flooding in South Africa's history has left more than 400 people dead and some 40,000 displaced, dealing a devastating blow to the eastern city of Durban, which has a seaport that has also been badly affected.

 

With the port not fully functioning, there are supply chain concerns and China -- South Africa's biggest trading partner -- and other nations, are likely to see their imports and exports disrupted.

 

Earlier this week, South African President Cyril Ramaphosa declared a national state of disaster because of the flooding -- which he blames on climate change but which some critics blame on poor infrastructure and the fact that most of the people affected were living in makeshift shacks in informal settlements.

 

Ramaphosa stressed the importance of quickly fixing the situation at the port, saying, "The Port of Durban -- which is one of the largest and busiest shipping terminals on the continent and which is vital to our country's economy -- has been severely affected."

The road to the port, which handles some 13,000 heavy vehicles a day, has been severely damaged, he added.

 

On Tuesday, Public Enterprises Minister Pravin Gordhan visited the port, which has reopened, and concluded it would take more a week to clear some backlogs. The rail network to the site had been affected by landslides and still needs to be repaired, he said, adding that 9,000 containers have accumulated at the port and would be cleared in the next nine days.

 

Logs and debris also ended up in the harbor due to the floods, which he said had disrupted shipping.

 

One of the countries likely to be affected by problems at the port is China, said Cobus van Staden, senior China-Africa researcher at the South African Institute of International Affairs.

 

"In relation to the situation in Durban, it's very serious for the whole of China-Africa trade, rather than just for South Africa; this is because of the centrality of Durban port to Chinese exports," he told VOA.

 

"About 20 percent of total China-Africa trade goes out through Durban and this includes resources like cobalt, copper and lithium coming from the Democratic Republic of Congo and Zimbabwe particularly," he added.

 

Maersk, the world's biggest container line, halted operations at the port last week and told VOA by email its warehouse had been affected and was still not operational. While vessel operations had resumed, the company said problems with road access were affecting all cargo entering or leaving the terminal.

 

"We continue to assess the damages and monitor the situation as it evolves, customers are being updated daily on the progress and the contingency plans so that we may get the supply chains moving again as quickly as possible," it said.

 

Wandile Sihlobo, chief economist for the Agricultural Business Chamber of South Africa, told VOA he thought it would take some time before activities at the port were back to normal.

 

"There's been great devastation by these excessive rains and it's a major risk to commerce and all goods: automobile, agriculture and other sectors of the economy that are dependent on trade," he said.-VOA.

 

 

 

Ackman gives up on Netflix, taking $400 mln loss as shares tumble

(Reuters) - Billionaire investor William Ackman liquidated a $1.1 billion bet on Netflix (NFLX.O) on Wednesday, locking in a loss of more than $400 million as the streaming service's stock plunged following news that it lost subscribers for the first time in a decade.

 

Ackman's hedge fund Pershing Square Capital Management made an abrupt U-turn, selling the 3.1 million shares it had bought just three months ago as Netflix' shares tumbled 35% to $226.19.

 

In January, the investor funneled over $1 billion into the streaming service just days after a disappointing forecast for subscriptions pushed the share price lower. Now a second bout of negative news about subscribers - the company said it had lost 200,000 - prompted the fund manager to turn his back on a company he had showered with praise only weeks before.

 

In a brief statement announcing the move, Ackman said proposed business model changes, including incorporating advertising and going after non-paying customers, made sense but would make the company too unpredictable in the short term.

 

"While Netflix's business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company's future prospects with a sufficient degree of certainty," he wrote.

 

Pershing Square, which now invests $21.5 billion, buys shares in only about a dozen companies at a time and needs a "high degree of predictability" in its portfolio companies, Ackman said.

 

Rather than wait around for things to improve at Netflix, Ackman locked in losses that are calculated to be more than $400 million, people familiar with the portfolio said. After the sale, Pershing Square's portfolios are off roughly two percent for the year, Ackman said.

 

Netflix said it had lost 200,000 subscribers in its first quarter, falling well short of its modest predictions that it would add 2.5 million subscribers. Its decision in early March to suspend service in Russia after it invaded Ukraine resulted in the loss of 700,000 members. read more

 

Profitable hedges helped Pershing Square survive the early days of the pandemic in 2020 and then again in recent months as interest rates began to rise. The last three years have been among the best in the hedge fund's lifetime, including a 70.2% gain in 2020.

 

But Ackman also acknowledged in his statement on Wednesday that he had learned from leaner times when his fund backed Valeant Pharmaceuticals, a disastrous bet that cost the hedge fund billions in losses.

 

"One of our learnings from past mistakes is to act promptly when we discover new information about an investment that is inconsistent with our original thesis. That is why we did so here," he wrote.

 

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 233707 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 36376 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65573 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220421/725cc08e/attachment-0001.obj>