Major International Business Headlines Brief::: 28 April 2022

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Major International Business Headlines Brief::: 28 April 2022 

 


 

 


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

 


 

 


ü  Daily Facebook users up again after first-ever decline

ü  Indian billionaire Mukesh Ambani plans bid for UK retailer Boots

ü  Elon Musk loses bid to end Tesla tweets oversight deal

ü  Sainsbury's to limit price rises as profits soar

ü  Boeing: Plane-maker reveals losses from Trump Air Force One deal

ü  Bitcoin becomes official currency in Central African Republic

ü  UK car production drops as firms struggle to get parts

ü  Sanjeev Gupta's Liberty Steel offices targeted in fraud investigation

ü  Russia gas supply cuts 'blackmail', says EU

ü  Kenya: Hilton Hotel to Cease Operations in From December 3

ü  Nigeria: NLC Meets Over Lingering ASUU Strike

ü  Africa: Google Investment to Help Solve Africa's Tech Problems

ü  Africa: Investor Interest in Africa At All-Time High, but Risks Remain

ü  Africa: Chinese Lending to Africa Falls During First Year of Pandemic

ü  Kenya: Meta Disputes Allegations of Poor Work Conditions At Its
Contractor's Hub in Kenya

ü  2022 U.S.-Africa Business Summit to be Hosted in Morocco

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Daily Facebook users up again after first-ever decline

Facebook stopped losing users as 2022 got under way, even as its owner
reported its slowest revenue growth in a decade.

 

The number of daily active Facebook users grew to 1.96 billion in the first
three months of the year, parent company Meta reported on Wednesday.

 

That marked a turnaround from last year, when the social network reported a
decline in users for the first time.

 

The drop wiped billions from the firm's market value.

 

Since executives disclosed the fall in February, the firm's share price has
nearly halved.

 

But shares jumped 19% in after-hours trade on Wednesday.

 

"More people use our services today than ever before, and I'm proud of how
our products are serving people around the world," said Meta boss Mark
Zuckerberg, who founded Facebook in 2004.

 

But Meta - which also owns Instagram and WhatsApp - still reported its
slowest revenue growth in at least a decade.

 

Revenues in the first three months of the year were up just 7% compared to
2021, hitting $27.9bn.

 

Analysts say businesses are pulling back on advertising as they grapple with
rising costs and economic uncertainty, stemming in part from the war in
Ukraine.

 

And while Google and Facebook have long been the go-to sites for online ad
dollars, they are facing more competition as newer platforms such as TikTok
draw users and online shopping giant Amazon gets into the business.

 

Google-owner Alphabet earlier this week said advertising revenue in the
first three months of the year rose 22%, more slowly than analysts had
expected, while the smaller Snap also warned of troubles.

 

Mr Zuckerberg said the firm was investing in its video "Reels" to compete
with TikTok, and expected ad sales to catch up.

 

But Meta is also grappling with new privacy rules from Apple, which make it
more difficult to target adverts. The company has said the changes could
cost it $10bn in lost sales this year.

 

The company said it expected revenue in the coming months of $28bn to $30bn
- below analyst estimates.

 

Meta said this reflected factors including the war in Ukraine and the
potential impact of regulatory changes in Europe.

 

In March Russia banned access to Facebook and Instagram, as part of its
crackdown on independent media following the invasion of Ukraine.

 

Mr Zuckerberg has said that the firm will invest heavily in artificial
intelligence and virtual reality - the so-called Metaverse - for its next
phase of growth. But that is costing it dearly for now.

 

Overall, Meta's profits in the quarter were $7.46bn - more than analysts had
expected but still down 20% year-on-year.

 

"Meta's ad business continues to face some very real challenges," said
Jasmine Enberg, principal analyst at Insider Intelligence.

 

"Facebook, of course, is no stranger to obstacles, but the [Apple] changes
are the first direct threat to its ad business.

 

"Combined with the rise of TikTok, brand safety concerns, and a shift in
social media user behaviour, there's a perfect storm heading straight for
Meta's ad revenues. Even so, it's clear that advertisers are still turning
to Facebook and Instagram to reach their wide audiences."-bbc

 

 

 

Indian billionaire Mukesh Ambani plans bid for UK retailer Boots

Indian billionaire Mukesh Ambani is planning a takeover bid for the UK high
street chain Boots.

 

Mr Ambani is the biggest shareholder and chairman of retail-to-energy group
Reliance Industries.

 

Mumbai-based Reliance is working on the potential bid with US buyout firm
Apollo Global Management.

 

Earlier this year, the Walgreen Boots Alliance announced a review of the
Boots business and reportedly put the company up for sale.

 

The deal would see Boots expand into India, Southeast Asia and the Middle
East as well as growing the business in the UK.

 

Under the plan, Reliance and Apollo would own stakes in Boots, although it
was not clear whether they would be equal partners in the business.

 

 

Boots - which has more than 2,200 pharmacies, health and beauty stores in
the UK - could be valued at as much as £6bn ($7.5bn), according to the
Financial Times, which first reported the story.

 

The Walgreen Boots Alliance and Reliance did not immediately respond to BBC
requests for comment.

 

Mr Ambani is the eighth richest person in the world.

 

The 65-year-old is also the second richest person in Asia, with an estimated
net worth of more than $100bn, according to the Bloomberg Billionaires
Index.

 

His late father Dhirubhai Ambani founded a textile manufacturer that would
eventually become Reliance Industries.

 

It is now one of India's largest conglomerates - with businesses including
petrochemicals, oil and gas, telecoms and retail.

 

Mr Ambani currently owns more than 49% of Reliance Industries.

 

The Ambani family already own assets in the UK worth tens of millions of
pounds.

 

In 2019, Reliance Brands Limited, which is owned by Mr Ambani, bought the
toy retailer Hamleys for an undisclosed sum.

 

Last year, Reliance Industries bought the historic British country club
Stoke Park for £57m.

 

line

The future of the 173-year-old Boots business has been in question for
months.

 

In January, its US-based owner, the Walgreen Boots Alliance said it had
started a strategic review of the retailer "in line with its recently
announced priorities and strategic direction that include a greater focus on
US healthcare".

 

"Further announcements will be made in due course, after the right decision
has been reached for Boots' future and for all stakeholders," the company
said.

 

The owners of UK supermarket group Asda - brothers Mohsin and Zuber Issa and
private equity firm TDR Capital - have also reportedly made an initial bid
for Boots.

 

Mukesh Ambani has been increasing his footprint in the retail space by
projecting Reliance Industries as a giant in the sector.

 

Its retail ambitions run across categories from luxury fashion to
electronics and groceries.

 

The company operates India's fastest growing and most profitable retail
business with over 12,000 stores across India.

 

Mr Ambani has also been raking in investments, looking to expand his
e-commerce operations to compete against the likes of Walmart-owned Flipkart
and Amazon.

 

In September 2020 alone, Reliance Retail brought in foreign investments
worth nearly $3.5bn.

 

Some of the biggest investments came from the likes of Google and Facebook,
which helped Mr Ambani integrate his telecoms and online retail businesses.

 

And his ambitions have not been restricted to India as he eyes business
around the world, like the iconic toy shop Hamleys - which he bought in
2019.

 

What Reliance has been missing, say analysts, is a piece of the pharmacy and
wellness sector - and that is what it plans to achieve through a tie-up with
Boots.

 

India has recently seen a rise in online pharmacy retailers and this
potential deal would enable Reliance to fast-track its entry into the
sector.

 

But as big online retailers like Walmart and Amazon sell everything,
retailers offering more specific ranges have struggled to get a foothold in
the massive Indian market.

 

It will also be interesting to see how Reliance positions itself in the
pharmacy and wellness business abroad.-bbc

 

 

 

Elon Musk loses bid to end Tesla tweets oversight deal

Elon Musk has lost a bid to get out of an agreement made with regulators
requiring oversight of his tweets about his car firm Tesla.

 

The settlement was made after he tweeted he had "funding secured" to
potentially take Tesla private despite a deal not being close.

 

The ruling comes just days after the world's richest person struck a deal to
buy Twitter for $44bn (£35bn).

 

Mr Musk says he wants to make Twitter a bastion of free speech.

 

The Securities and Exchange Commission (SEC) accused Mr Musk of misleading
investors with the 2018 tweet, which caused Tesla's share price to
fluctuate.

 

Mr Musk's lawyers argued that the SEC's pursuit of him "crossed the line
into harassment" and interfered with his right to free speech.

 

US District Judge Lewis Liman rejected those arguments as well as Mr Musk's
request to stop a separate SEC investigation into tweets he posted last year
regarding the sale of some of his Tesla stock.

 

"Musk cannot now seek to retract the agreement he knowingly and willingly
entered by simply bemoaning that he felt like he had to agree to it at the
time but now — once the spectre of the litigation is a distant memory and
his company has become, in his estimation, all but invincible — wishes that
he had not," Mr Liman wrote.

 

The agreement in 2018 required Mr Musk and Tesla to pay $20m each in civil
fines and for him to step down as the chairman of the electric car maker.

 

It also required Mr Musk to obtain approval from Tesla's lawyers for tweets
and other public statements about the company.

 

The SEC's probe is about tweets Mr Musk posted on 6 November, asking his
more than 80m Twitter followers whether he should sell 10% of his stake in
Tesla.

 

A majority of those who voted in the poll said he should sell the stake and
Mr Musk has since sold more than $16bn worth of Tesla shares.

 

Tesla's share price fell in the wake of the poll and the SEC is
investigating whether those tweets were cleared by Tesla lawyers before they
were posted.

 

Mr Liman said it was "unsurprising" that the regulator would have questions
about the way Mr Musk went about making his decision to sell the shares.

 

Tesla did not immediately respond to a request for comment from the BBC.-bbc

 

 

 

Sainsbury's to limit price rises as profits soar

Sainsbury's has seen its profits more than double as the supermarket
recovers from coronavirus costs.

 

The company reported an underlying profit before tax of £730m in the year to
March, up from £357m in 2020-21.

 

But bosses warned profits would be lower this year as it tries to stay
competitive on price and support customers facing higher living costs.

 

The supermarket said its cost savings plan had enabled it to increase food
prices at a lower level to competitors.

 

Sainsbury's bumper profits come as research suggests the average food bill
could increase by £271 this year as prices continue to rise.

 

Grocery prices were 5.9% higher in April than a year ago, the biggest
increase since December 2011, according to research company Kantar.

 

 

Supply chain issues, the Ukraine war and rising raw material costs are all
contributing to soaring food prices.

 

It has led to Sainsbury's to follow the UK's biggest supermarket Tesco in
forecasting lower profits.

 

Tesco vows to rein in prices as profits treble

Why are prices rising so quickly?

Sainsbury's said there were "significant uncertainties" weighing on the
business ahead, due to higher cost pressures and the squeeze on household
incomes.

 

"We know just how much everyone is feeling the impact of inflation, which is
why we are so determined to keep delivering the best value for customers,"
said Simon Roberts, chief executive of Sainsbury's.

 

The supermarket reported a rise grocery sales, up by 7.6% from two years
ago, partly due to dining out being restricted by Covid restrictions.

 

However, non-food sales were hit hard by difficulties with supply chains,
with general merchandise sales falling 4.6% on 2019-20.-bbc

 

 

 

Boeing: Plane-maker reveals losses from Trump Air Force One deal

Former US President Donald Trump's new deal for Air Force One was a bad one
for Boeing, the plane-maker's chief executive has said.

 

Dave Calhoun spoke as the firm said it expected to lose $1.1bn (£875m) on
the two planes for the White House.

 

Mr Trump had forced the company to renegotiate its contract, calling the
initial deal too expensive.

 

The new agreement made Boeing, not taxpayers, responsible for changes to
costs.

 

"We took some risks not knowing that Covid would arrive and not knowing that
inflation would take hold like it has - and both of those have impacted us
fairly severely," Mr Calhoun said on a conference call with investors on
Wednesday.

 

'Unique set of risks'

Technically, "Air Force One" is a call sign for any aircraft carrying the US
president.

 

However the term is mostly used to refer to the current fleet - two highly
customised Boeing 747-200B jets, which have been in service since 1990.

 

Before Mr Trump was elected in 2016, the government had a roughly $4bn
contract with Boeing to build two or more new planes. But in 2016, shortly
after Mr Trump's victory, he tweeted that they were too expensive and called
for cancelling the order.

 

Two years later, the two sides announced a new $3.9bn deal to convert two
new 747-8 planes with a communications suite each, internal and external
stairs, large galleys and other equipment and modifications to protect
passengers.

 

At the time, Mr Trump - who prides himself on his deal-making - hailed the
agreement, though critics said the savings weren't clear.

 

Boeing - a major government and defence contractor - faced "a very unique
negotiation, a very unique set of risks that Boeing probably shouldn't have
taken" during the Air Force One talks, Mr Calhoun said.

 

"But we are where we are, and we're going to deliver great airplanes."

 

The planes are designed to be an airborne White House, able to fly in
worst-case security scenarios, such as nuclear war, and are modified with
military avionics, advanced communications and a self-defence system.

 

The planes were supposed to be delivered by 2024 but are behind schedule,
according to reports. Boeing disclosed it has lost $660m this quarter on the
programme.-bbc

 

 

Bitcoin becomes official currency in Central African Republic

The Central African Republic (CAR) has approved Bitcoin as legal tender -
just the second country to do so.

 

CAR is one of the world's poorest countries, but is rich in diamonds, gold
and uranium.

 

It has been wracked by conflict for decades and is a close Russian ally,
with mercenaries from the Wagner Group helping fight rebel forces.

 

Lawmakers voted unanimously to adopt Bitcoin as legal tender, said a
statement from the CAR presidency.

 

The move puts CAR "on the map of the world's boldest and most visionary
countries", it said.

 

El Salvador became the first country to adopt Bitcoin as an official
currency in September 2021 - a move criticised by many economists, including
the International Monetary Fund, which said it increased the risk of
financial instability.

 

 

Others have raised fears that cryptocurrencies such as Bitcoin could make it
easier for criminals to launder money, and that they are environmentally
damaging because they use so much electricity to generate.

 

The internet is needed to use any cryptocurrency but in 2019, just 4% of
people in CAR had access to the web, according to the WorldData website.

 

The country currently uses the French-backed CFA franc as its currency,
along with most other former French colonies in Africa.

 

Some see the adoption of Bitcoin as an attempt to undermine the CFA, amid a
contest for influence over the resource-rich country between Russia and
France.

 

"The context, given the systemic corruption and a Russian partner facing
international sanctions, does encourage suspicion," French analyst Thierry
Vircoulon told the AFP news agency.

 

In the capital, Bangui, the response was mixed.

 

Economist Yann Daworo told BBC Afrique it would make life easier, as
transactions can be made with smartphones and it was easy to convert Bitcoin
to any other currency.

 

"Businessmen will no longer have to walk around with suitcases of CFA francs
that will have to be converted into dollars or any other currency to make
purchases abroad," he said.

 

He also argued that the CFA was not being used "to benefit Africa". There
are growing calls in several countries for the currency to be dropped by
those who see it as a relic of the colonial era, enabling France to continue
to exercise economic control.

 

However, computer scientist Sydney Tickaya said he thought the adoption of
the cryptocurrency was "premature" and "irresponsible".

 

"Internet access is still underdeveloped in the country while Bitcoin
depends entirely on the internet," he said, adding that the CAR had more
pressing issues such as security, education and access to drinking water.

 

The CAR has suffered from ongoing conflict since its independence in 1960.

 

In 2013, mainly Muslim rebels seized control of the largely Christian
country. Self-defence militias were formed to fight back, leading to
widespread massacres along religious lines.

 

After President Faustin-Archange Touadéra came to office in 2016, the
country started shifting its strategic alliance from France towards
Russia.-bbc

 

 

 

UK car production drops as firms struggle to get parts

Car production in the UK has continued to fall as manufacturers struggle
with global supply chain problems.

 

Almost 100,000 fewer cars were built in the first three months of 2022
compared to last year.

 

Manufacturing has dropped by nearly a third, according to the Society of
Motor Manufacturers and Traders (SMMT).

 

The SMMT linked the decline to a global shortage of computer chips and
rising energy costs for manufacturers.

 

During the first three months of the year, a total of 207,347 new cars were
built in the UK, down from 306,558 in the same three months in 2021, when
the pandemic created added pressures for manufacturers.

 

Manufacturers have been struggling to get hold of the parts they need - in
particular semiconductors, or computer chips, which are widely used on
modern vehicles.

 

The closure of Honda's plant in Swindon last year has also been a major
factor, and has contributed to a steep reduction in the number of cars
exported to the US. Exports to the US saw the greatest decrease last month
and declined by 63.8% during March, while exports to the EU declined by
24.5%.

 

The war in Ukraine is also having an effect on production, with factories
struggling to get hold of parts such as wiring systems that would normally
come from the region.

 

Meanwhile, carmakers are becoming increasingly concerned about the impact of
rising energy costs.

 

The UK's car industry had hoped to be well on the road to recovery by now -
but it hasn't happened. Last year was a dismal one for the industry - and so
far, 2022 has been even worse.

 

Part of the decline in production is down to Honda. Its factory in Swindon
shut down last July, removing a significant chunk of the country's output.
But the impact of Covid has been huge.

 

The car industry relies on very efficient, very streamlined manufacturing
systems - where parts arrive from around the world at the factories where
they're needed pretty much exactly when they're needed.

 

But Covid has thrown a huge spanner in the normally smoothly-operating
machinery. Supply chains have been disrupted and vital parts - particularly
computer chips - have not been there when needed. When that happens
production has to be slowed or even stopped.

 

Now there are other problems to contend with as well. The war in Ukraine has
pushed energy prices sky high - a major problem for the industry. It has
also triggered new parts shortages.

 

This situation isn't unique to the UK. But it comes at a time when the car
industry here is desperate to put itself at the forefront of the move to
electric vehicles - and attract the new investment which was in very short
supply during the years of Brexit-related uncertainty.

 

Some good news is badly needed.

 

Mike Hawes, chief executive of the SMMT said that two years after the start
of the pandemic, automotive production was "still suffering badly".

 

"Recovery has not yet begun and, with a backdrop of an increasingly
difficult economic environment, including escalating energy costs, urgent
action is needed to protect the competitiveness of UK manufacturing," Mr
Hawes continued.

 

"We want the UK to be at the forefront of the transition to electrified
vehicles, not just as a market but as a manufacturer so action is urgently
needed if we are to safeguard jobs and livelihoods," he added.

 

Responding to the figures, Chris Knight, automotive partner at consultancy
firm KPMG, said component and material availability challenges remain, with
the problems caused by the pandemic now "added to by conflict in Ukraine".

 

"A focus on prioritising available components and materials into
higher-margin vehicle production and sales has been to the detriment of some
parts of the fleet industry," Mr Knight added.-bbc

 

 

 

Sanjeev Gupta's Liberty Steel offices targeted in fraud investigation

The Serious Fraud Office has visited the offices of Sanjeev Gupta's Liberty
Steel, demanding information.

 

The SFO launched an investigation into suspected fraud and money laundering
by parent firm GFG Alliance last May.

 

GFG owns a collection of businesses in energy, steel and trading, employing
about 35,000 people, including thousands of staff in the UK.

 

Mr Gupta, its executive chairman, came under scrutiny after GFG's main
lender Greensill Capital collapsed.

 

The finance company went under after its insurer refused to renew cover for
the loans it was making. It was the main lender to GFG's Liberty Steel,
which employs 3,000 people in England, Scotland and Wales.

 

Once described as the "saviour of steel", SFO officers visited addresses
linked with Mr Gupta's operations on Wednesday and requested documents
including company balance sheets and annual reports.

 

 

The SFO could not provide further comment on the investigation as it is
still ongoing.

 

But it did confirm that its teams spoke with executives at offices across
Britain, who co-operated with the operation.

 

The SFO opened its investigation into GFG last May over suspected fraudulent
trading and money laundering, including its financing arrangements with Lex
Greensill's company.

 

GFG used so-called supply chain finance services offered by Greensill. This
meant that if GFG sold a product to a different company, it could send the
invoice to Greensill and be paid right away, rather than having to wait
potentially months for the customer to pay its bills.

 

In a letter seen by the BBC, Liberty Steel staff were told: "Since then we
have consistently rejected any wrongdoing on our part and pledged to
co-operate fully to ensure they can conclude their investigations as quickly
as possible."

 

It also described the site visits today as "expected" and that it would
comply with requests for information and "co-operate fully in any manner".

 

"Please rest assured that this does not impact the operation of our
companies and we must continue to focus on our business plans and operating
safely," its chief transformation officer, Jeff Kabel, wrote.

 

'Red flags'

According to the Financial Times, French prosecutors also visited GFG's
Paris office and an aluminium smelter in Dunkirk earlier this week, where
they questioned executives.

 

British MPs have previously raised a series of concerns over Sanjeev Gupta's
leadership of GFG Alliance, including the unusual funding and company
structures, as well as a series of accounting "red flags".

 

Politicians also recommended that the Insolvency Service should consider
whether Mr Gupta has breached his fiduciary duties as a company
director.-bbc

 

 

 

Russia gas supply cuts 'blackmail', says EU

Russia's decision to cut off gas exports to Poland and Bulgaria is an
"instrument of blackmail", the EU says.

 

European Commission president Ursula von der Leyen said the move showed
Russia's "unreliability" as a supplier.

 

But the Kremlin said Russia had been forced into the action by the
"unfriendly steps" of Western nations.

 

Europe depends on Russia for more than a third of its gas needs and state
energy giant Gazprom holds a monopoly on pipeline supplies in Russia.

 

While many European countries have taken steps to wean themselves of Russian
oil imports since it invaded Ukraine, Russia has continued to supply large
amount of gas to many European countries.

 

After Western powers placed financial sanctions on Russia in response to its
invasion, Russian President Vladimir Putin announced that "unfriendly"
countries would have to pay for gas in Russian currency.

 

Gazprom said this was why it had suspended supply to Bulgaria and Poland.

 

Poland said the move was in retaliation for Polish sanctions against Russian
individuals and firms. Poland has also been a key transit country for
weapons to Ukraine.

 

Bulgaria has historically had warm relations with Russia, but a new
government took office last year which has denounced the invasion.

 

Should we be worried about a gas supply crisis?

President Putin meanwhile warned that if Western forces intervene in
Ukraine, they will face a "lightning-fast" military response.

 

In what is seen as a reference to ballistic missiles and nuclear arms, he
told lawmakers in Moscow: "We have all the tools no-one can boast of... we
will use them if necessary."

 

But there are signs that Russia's offensive in Ukraine is not going as
smoothly as planned, with one official saying Russian forces are having
difficulties overcoming a "staunch Ukrainian resistance" in their offensive
in the east of the country.

 

In reaction to Gazprom's statement regarding the suspension of gas supplies
to Poland and Bulgaria, Polish state gas company PGNiG confirmed that
Gazprom's supplies to the country had been halted and warned that it
reserved "the right to seek compensation".

 

Polish President Andrzej Duda said "appropriate legal steps" will be taken
against Gazprom, while his deputy foreign minister, Marcin Przydacz, told
the BBC that Russia was seeking to "foster divisions" between Western
allies.

 

Bulgarian Prime Minister Kiril Petkov said the country was reviewing all of
its contracts with Gazprom, including for transit of Russian gas to Serbia
and Hungary, emphasising that "one-sided blackmail was not acceptable".

 

Bulgaria, which relies on Gazprom for more than 90% of its gas supply, said
overnight it had taken steps to find alternative sources but no restrictions
on gas consumption were currently required for Bulgarians.

 

Ms von der Leyen, speaking in Brussels, said Gazprom's move was "unjustified
and unacceptable," but emphasised that the bloc was "prepared for this
scenario".

 

She added that the EU, along with its international partners, will implement
an "immediate, united and coordinated" response.

 

The EU leader also hit out against reports carried by the media outlet
Bloomberg which alleged 10 European energy companies are preparing to make
payments for Gazprom gas in roubles, and that four energy companies have
done so already.

 

She said such moves would be "high risk" for the corporations and would
constitute "a breach of our sanctions".

 

"Our guidance here is very clear," Ms von der Leyen said.

 

While the EU has been firm that it will not comply with Mr Putin's demands
that payments be made in roubles, Hungary has reached a workaround deal with
Gazprom.

 

The countries will pay into a euro-denominated account with Gazprombank, a
subsidiary of the energy giant, which in turn will deposit the amount in
roubles.

 

Russia has refused to say how many other countries have agreed to make
payments in this way.

 

-bbc

 

 

 

Kenya: Hilton Hotel to Cease Operations in From December 31

Nairobi — The iconic 53-year-old, Hilton hotel Nairobi will shut its doors
permanently on December 31 underlining the troubles of the hospitality
industry amid the Covid-19 pandemic.

 

A spokesperson of the hotel told Capital Business that the hotel ownership
had discussions and concluded to cease operations.

 

"Covid-19 created challenges for our industry but the decision to cease
operations is not directly connected to the pandemic," the spokesperson
said.

 

The hotel has 287 rooms, including 45 twins, 185 doubles and seven suites.
It also has 22 pool rooms and 27 executive rooms.

 

The hotel said it will redeploy some staff to hotels within its Hilton
portfolio in Nairobi such as Hilton Nairobi Hurlingham and Hilton Garden Inn
Nairobi Airport.

 

Hilton Group of Hotels owns 59.42 per cent of the Hilton Hotel through
International Hotels Limited while the Kenya Tourist Development Corporation
owns the rest.- Capital FM.

 

 

 

Nigeria: NLC Meets Over Lingering ASUU Strike

The Nigeria Labour Congress (NLC) has slammed the federal government as well
as the political class for abandoning university students to their fate to
face the brunt of the strike by workers in government-owned tertiary
institutions.

 

At the meeting of its Central Working Committee in preparation for the May
Day Commemoration on May 1st, 2022, the NLC described the situation as
injustice on the Academic Staff Union of Universities (ASUU), and by
extension the children of the underprivileged who attend public
universities.

 

NLC President, Ayuba Wabba, who addressed the opening ceremony of the CWC
meeting held yesterday in Abuja said, "We are facing a period of great
injustice on the downtrodden of the society, children of the poor are at
home but the children of the rich are going to school, we have written
several communications to the government but no response till date, rather
they are busy discussing politics."

ASUU and the federal government is having a lingering face-off over dispute
bothering on funding of Nigerian universities, poor welfare packages, among
others, which had led to closure of public universities for over two months.

 

Speaking further, Wabba said: "I think it's very clear we have not had it
rosy, we just got out of COVID-19 but we have more serious challenges
centred around education.

 

"As you all know; the children of the poor are at home while those of the
rich are going to school. To date, we have communicated through
recommendations to the government but no response.

 

"This is most disheartening because people in our generation benefited from
free education, from primary to tertiary level. This is not acceptable,
instead of the politicians discussing these issues as a national emergency
they are occupied with the 2023 elections.

 

"We at this CWC meeting would be looking at the upcoming political
dispensation. A lot of broken promises. No worker should sit down and just
watch, certainly, that will not be our portion. We must engage politicians,
making sure the downtrodden is accommodated in the next political
dispensation."

 

THISDAY gathered that the meeting which lasted till late evening, would come
up with a communiqué stating definite position on measures to take compel
ASUU and the federal government to find amicable solution to the crisis in
nation's universities in order to reopen the institutions.-This Day.

 

 

Africa: Google Investment to Help Solve Africa's Tech Problems

Nairobi — California-based Google wants to get a bigger share of Africa's
growing online population, which is expected to top 800 million by 2030.

 

The internet search giant announced this month it is setting up its first
product development center on the continent, to be based in Kenya's capital,
Nairobi. It is scheduled to open next year and will employ more than 100
people.

 

Charles Murito, head of government affairs and public policy for sub-Saharan
Africa at Google, said the investment will create many opportunities within
Africa's tech sector.

 

"The product development center is going to be one that works to create
transformative products and services for people right here on the continent,
as well as creating a product for the rest of the world," he said. "So the
announcement last week was really just a kick-off in terms of the hiring
process for the people that are going to be working in this product
development center for Africa. And that will include roles such as product
managers, UX designers and researchers, and engineers, and this is really a
starting point of the work we are going to be doing."

The multinational technology company said its mission is to make the world's
information universally accessible and create a product that works well for
Africans.

 

Bitange Ndemo, former principal secretary of Kenya's information,
communication, and technology ministry, said the government needs to train
more of its youth to benefit from the Google center.

 

"It's a wonderful investment in the sense that it's going to help reduce the
problem of unemployment in this country, but what that tells the Kenyan
government is they must begin to invest in skilling and reskilling young
people so that they can meet the demand. Already the demand for such skills
exceeds supply locally," he said.

 

Google has trained over 80,000 certified developers from Africa in the past
few years.

 

The firm is investing $1 billion in projects over the next five years to
help with the development of Africa internet economy.

 

Murito said the investment will transform Africa.

 

"It's the opportunity around creating products that work best for Africans
at large and, therefore, whether you are thinking about products on
financial inclusion or other sectors of the economy, we believe that by
having a product development center right here on the continent, we will be
able to know firsthand what challenges are and also be able to create
products that will service and solve some of those challenges," he said.

 

Microsoft has also invested in Kenya, hiring hundreds of engineers from the
East African nation.

 

The continent comes with its own challenges for businesses because some
countries lack good governance and the rule of law and that creates an
uncertain environment for investments. Some nations have turned off the
internet to silence their citizens.

 

Murito said his organization works with African governments to encourage
innovation and develop policies that will sustain innovation.-VOA.

 

 

Africa: Investor Interest in Africa At All-Time High, but Risks Remain

Dakar, Senegal — The Private Equity & Venture Capital Association (AVCA)
says Africa attracted a record $7.4 billion in private capital in 2021, more
than double the year before. But while the continent provides ample
possibilities for investors, it also presents challenges, from instability
to climate change. At this year's AVCA conference in Senegal, investors
discussed some of the trends.

 

More than 500 people from some 50 countries filtered in and out of
conference rooms at Dakar's Radisson Hotel Tuesday for Day 2 of AVCA's
annual gathering.

 

Africa offers a rich environment for local and international investors,
attendees say, as it has a growing youth population and consumer market.

 

Alexia Alexandropoulou is a research manager at AVCA. She said investor
interest in the continent has been largely driven by the attraction of
financial technology companies. A number of sizable infrastructure deals
also contributed to investment growth.

"And these infrastructure investments were focused on renewable energy,
transportation and communication services. And they support African
governments to fill the infrastructure gap on the continent. We expect to
see more of these trends continue in the years to come," she noted.

 

Some African governments such as Senegal's have successfully attracted
international investment in recent years. In 2019, it became the second
African country to pass a "start-up act," which eases regulations and
provides tax breaks to innovative new businesses.

 

Venture capital activity here comprised 80 percent of total reported deals
in 2021, up from 6 percent between 2016 and 2020, according to AVCA. But
investing in African companies also comes with challenges, investors say,
including currency volatility, small national economies, limited access to
finance and banking services and political unrest.

 

"If you have a long-term view, and if you're well diversified, you can
obviously overcome those issues," expressed Walid Cherif, the managing
director of BluePeak Private Capital, adding "from [the] outside you read
the news, or you think it's scary, it's difficult. But at the end of the
day, there's so many opportunities on the ground, so many great businesses.
As long as you put the tools in them and give them a lot of assistance and
support, you can definitely help them become strong businesses."

 

Climate change is another major hindrance. Sub-Saharan Africa is expected to
suffer disproportionately from extreme weather events such as floods and
drought. This is disruptive to businesses, particularly those in the
agricultural sector.

 

Some investors have begun setting climate goals.

 

Clarisa De Franco is the managing director of British International
Investment. Last year, her company set a goal of having 30 percent of their
investments dedicated toward addressing climate change.

 

"They will have to have the specific mandate of addressing climate from a
resilience, adaptation or mitigation point of view. How do we achieve that
from a new commitment point of view, but also from a portfolio point of
view, is something that we need to explore a bit more," De Franco pointed
out.

 

Potential investments might include the renewable energy and plantation
sectors, she said.

 

The AVCA conference continues in Dakar through Friday.-VOA.

 

 

Africa: Chinese Lending to Africa Falls During First Year of Pandemic

Johannesburg, South Africa — Chinese loans to African governments plunged by
more than three-quarters in the first year of the pandemic compared to the
year before, researchers have found, with new loan commitments in 2020 at
their lowest level in 16 years.

 

That could be due to Chinese lenders taking more precautions at the outset
of the pandemic and focusing on domestic priorities, as well as African
countries being less willing to borrow, the study by Boston University's
Global Development Policy Center found.

 

Chinese lending in 2020 fell to $1.9 billion, the study released this week
showed, with only 11 new loan commitments recorded. That's compared to the
32 loans signed in 2019 worth some $8.2 billion.

 

"As the pandemic continues to wreak havoc on livelihoods within China and
the debt position of some African countries, shifts in financing types and
sources are expected for future Chinese financing to Africa," the report
said.

China is sub-Saharan Africa's biggest single creditor and, in the two
decades since 2000, has signed 1,188 loans worth $160 billion with 49
African governments, state-owned enterprises and regional organizations.

 

Despite the downturn, Oyintarelado Moses, one of the study's authors, told
VOA that Chinese loans to Africa would likely pick up in the post-pandemic
period "as other sources of financing beyond lending from traditional
borrowers increase."

 

The biggest borrowers have been Angola, Ethiopia and Zambia. The latter
became the first pandemic-era default in 2020, with debt of almost $32
billion. According to the Reuters news agency, $5.78 billion of that debt
was held by China and Chinese entities. China committed last week to joining
Zambia's creditor committee, a move welcomed by the International Monetary
Fund.

 

China has long been accused of "debt-trap diplomacy" in which its massive
loans to developing countries are said to leave them dependent on their
creditor for support. Beijing strongly refutes these accusations, saying the
West simply resents China's close ties with Africa because of its Belt and
Road Initiative -- which is China leader Xi Jinping's global infrastructure
development plan.

 

A January op-ed in China's state media, the Global Times, criticized reports
in Western media that Beijing was slowing lending to countries on the
continent, saying, "Whether China accelerates or slows its lending to
Africa, the West is ready to criticize China with their well-worn 'debt
trap' story.

 

"In fact," the op-ed continued, "not one developing country has fallen into
the so-called debt trap due to Chinese loans."

 

On his visit to several African states last year, U.S. Secretary of State
Antony Blinken said countries should not be left with a "tremendous debt
that they cannot repay."-VOA.

 

 

 

Kenya: Meta Disputes Allegations of Poor Work Conditions At Its Contractor's
Hub in Kenya

A few weeks ago, a law firm threatened to sue American social-media giant
Meta and its main subcontractor for content moderation in Africa, Sama, over
alleged unsafe and unfair work conditions at the latter's hub in Kenya.

 

The law firm, Nzili and Sumbi Advocates alleged that Sama had violated
various the rights, including those of health and privacy, of its Kenyan and
international staff. Demands were made that Meta and Sama adhere to Kenya's
labor, privacy and health laws, including that it provides its moderators
with adequate mental health insurance and better compensation.-TechCrunch.

 

 

2022 U.S.-Africa Business Summit to be Hosted in Morocco

Corporate Council on Africa (CCA) will organize the next edition of the U.S
-Africa Business Summit on July 19 – 22, 2022 in Marrakech, Morocco. The
Summit will build on the momentum of last year's virtual Summit, which
focused on the unique opportunity for the new U.S. Administration and its
African partners to reset and redefine their relationship as they work
together to shape the path for economic recovery needed as a result of the
COVID-19 pandemic. After 2 years, CCA will return to the continent this July
for the 14th iteration of its flagship conference.

 

"We are delighted to co-host and partner with the Government of the Kingdom
of Morocco to bring the 2022 Summit to Marrakech. The 2021 Summit was a
tremendous success and the caliber of engagement by U.S. and African
business and government leaders was outstanding. The partnerships forged,
investment opportunities identified, and deals closed are still being cited
by attendees. We believe the 2022 Summit in Morocco will be even more
successful and serve as a significant opportunity to expand and deepen the
U.S.-Africa trade, investment, and business relationship." said Florizelle
Liser, President and CEO, Corporate Council on Africa.

 

Following a strategic selection process, CCA's Board of Directors selected
the Kingdom of Morocco as the host for the 2020 Summit, but due to the
global pandemic, it was canceled. Having signed the African Continental Free
Trade Agreement (AfCFTA) and a leading investor in Africa, Morocco has
demonstrated its commitment to promoting economic development in the
continent, making it an

 

 

Corporate Council on Africa

Corporate Council on Africa President and CEO Florizelle Liser

ideal destination for the 2022 Summit and the first time CCA will organize
the Summit in North Africa.

 

Her Highness Princess Lalla Joumala, Ambassador of the Kingdom of Morocco to
the United States, urged businesses to take advantage of the unique
opportunities that will be presented at the Summit in 2022. "As the gateway
to Africa, Morocco is committed to increasing business and investment on the
continent and is pleased to partner with the Corporate Council on Africa to
host the 2022 U.S.-Africa Business Summit in Marrakech."

 

Since its inception in 1997, CCA's Summit has been considered as the
essential conference on U.S.-Africa business and investment. With over 1200
attendees representing 65 countries, the 2021 virtual Summit witnessed a
remarkable level of engagement, including participation by 6 African heads
of state, 22 senior African officials, 3 U.S. Government Cabinet Level
officials, 12 senior U.S. government officials and an exceptional line-up of
global business leaders from a variety of sectors.

 

 

Corporate Council on Africa

Florizelle Liser, President and CEO of the Corporate Council on Africa, and
Alan Kyerematen, Ghana's Trade & Industry, speaking at he closing plenary of
the 2017 U.S-Africa Business Summit in Washington, DC.

ABOUT THE U.S.-AFRICA BUSINESS SUMMIT

 

The U.S.-Africa Business Summit serves as a platform for African and U.S.
private sector and government representatives to engage on key sectors
including agribusiness, energy, health, infrastructure, trade facilitation,
ICT and finance. Summit participants can network with key private sector and
government officials, explore new business opportunities, meet potential
business partners, and forge new business deals. The Summit also serves as
an opportunity to shape and advocate for effective U.S.-Africa trade and
investment policies.  Over the last 23 years, CCA has hosted more than 50
U.S. and African Heads of State and over 15,000 participants at its Summits.
This year's Summit - themed "Building Forward Together" - will explore the
U.S. and African public and private sectors' renewed commitment to building
stronger trade and investment ties during unprecedented health and economic
challenges.

 

ABOUT CORPORATE COUNCIL ON AFRICA (CCA)

 

Corporate Council on Africa is the leading U.S. business association focused
solely on connecting business interests between the United States and
Africa. CCA uniquely represents a broad cross section of member companies
from small and medium size businesses to multinationals as well as U.S. and
African firms. Learn more at www.corporatecouncilonafrica.com

 

 

 

 


 


 


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
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been compiled from sources believed to be reliable, but no representation or
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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
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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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