Major International Business Headlines Brief::: 29 January 2022

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Major International Business Headlines Brief::: 29 January 2022 

 


 

 


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

 


 

 


ü  Apple's stock racks up biggest one-day gain since July 2020

ü  U.S. lawmakers urge GM, Mexico to safeguard worker rights ahead of union
vote

ü  Fed's matchmaker fear: Flatlining economy meets higher interest rates

ü  Goldman Sachs lifts CEO Solomon's pay to $35 million

ü  Berkshire Hathaway says it has added 12,000 jobs

ü  Hewlett-Packard wins fraud case against UK tech tycoon Mike Lynch

ü  Russian industry targeted, not consumers, if Biden export curbs imposed

ü  EU aims to invest billions euros in chip push, EU's Breton says

ü  Robinhood climbs back from lowest level since IPO

ü  Aeromexico reorganization plan confirmed after creditor deal

ü  Namibia: Fishrot Accused 'Handpicked' for Fishcor Roles

ü  Namibia: Debt Has Become a Lifeline for Many Namibians

ü  Nigeria: FAO, WFP List Nigeria Among 20 'Hunger Hotspots'

ü  Kenya: Safaricom, Airtel Saved the Pain of Reimbursing Sh30 for Dropped
Calls

ü  Rwanda: Leverage Digital Skills for European Job Market - Kagame to
African Youth

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Apple's stock racks up biggest one-day gain since July 2020

(Reuters) - Apple Inc's(AAPL.O)shares rallied nearly 7% on Friday in its
biggest one-day percentage jump in a year and a half after the iPhone maker
reported blockbuster results and teased its metaverse ambitions.

 

The Cupertino, California company's gain reduced some of the losses it has
suffered in recent weeks during a broad selloff in growth and technology
stocks.

 

The world's largest company by market value raked in sales of nearly $124
billion and profit of $34 billion, showcasing its ability to navigate a
global supply crunch during the crucial holiday quarter. read more

 

"Apple is known for its supply-chain prowess and many wonder about the
actions Apple has taken and will take to better position itself for this
calendar year," Third Bridge analyst Scott Kessler said.

 

Apple also teased its metaverse ambitions as Chief Executive Tim Cook talked
of the company investing in the expansion of its library of 14,000 augmented
reality apps, prompting strong investor response. read more

 

At least 11 brokerages raised their price targets for the stock, bringing
the median price target to $188.5, according to Refinitiv data. The stock
ended Friday at $170.33.

 

With the Federal Reserve preparing to raise U.S. interest rates, Apple's
stock has been under pressure this year from a tech sector selloff, which
also hit giants like Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O).

 

Following its quarterly report, Apple on Friday was the top contributor to a
rally in the S&P 500 (.SPX) and Nasdaq (.IXIC).

 

Apple's stock remains down 4% so far in 2022.

 

"Still a lot of uncertainty about the tech sector, which remains very
expensive and with the Fed overhang of possible further hawkish surprises,"
said Andrea Cicione, head of strategy at TS Lombard.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. lawmakers urge GM, Mexico to safeguard worker rights ahead of union
vote

(Reuters) - Three U.S. lawmakers on Friday urged General Motors (GM.N) and
the Mexican government to safeguard worker rights ahead of a union vote next
week of Mexican autoworkers at a pick-up truck plant in central Mexico.

 

Representative Earl Blumenauer, who chairs a House Ways and Means
subcommittee on trade, along with Representatives Bill Pascrell and Dan
Kildee raised concerns on Friday about reports of worker intimidation ahead
of next week's union election at GM's Silao plant in Guanajuato, where it
builds the Silverado.

 

"It is imperative that GM and Mexico's labor authority ensure that every
single worker may cast a secret ballot freely and without intimidation," the
lawmakers said.

 

GM said Friday it has "been absolutely committed to working with the Mexican
authorities, the work force, vote observers and all partners, including the
(Biden) Administration and U.S. Congress to provide the environment for a
free and fair election."

 

GM added it looks forward "to working with whichever union leadership is
selected by our work force," and addressing any worker concerns in a
subsequent negotiation process.

 

Mexico's Federal Center for Conciliation and Labor Registration, which is
organizing the vote, said on Friday it has inspected the plant to ensure
access for voters and this week set up an email account to receive worker
complaints, although none so far have been submitted.

 

For decades, workers across Mexico have often faced intimidation tied to
contentious union votes.

 

The Center added that nearly 6,300 workers are eligible to cast ballots on
Feb. 1-2 at five different areas of the plant, and that transportation will
be provided to workers whose shifts fall on other days.

 

The United Auto Workers (UAW), which represents GM workers in the United
States and last week also called for tighter scrutiny over the election,
previously said as many as 7,000 people would be voting.

 

Workers will choose among four unions in line with a Mexican labor reform
aimed at ensuring freedom of association, a key tenet of a new trade deal
with the United States and Canada.

 

A vote last year on the collective contract was initially marred by
irregularities, prompting the U.S. government to demand ramped-up scrutiny
in a formal complaint under the United States-Mexico-Canada Agreement
(USMCA).

 

Workers eventually voted to dissolve the contract, opening the door to elect
a new union.

 

U.S. officials in September closed the GM complaint about last year's vote,
but are still tracking the issue, a U.S. government labor committee report
said last week.

 

The Thomson Reuters Trust Principles.

 

 

 

Fed's matchmaker fear: Flatlining economy meets higher interest rates

(Reuters) - The Federal Reserve plans to raise interest rates in March on
the assumption the U.S. economy will largely steer clear of fallout from the
Omicron variant of the coronavirus and keep growing at a healthy clip.

 

What if it doesn't?

 

With financial markets fast adapting to expectations of an ever-more
aggressive Fed battle against inflation, year-end data showed
weaker-than-anticipated results for some of the inflation measures the U.S.
central bank watches closely, a reminder of how uncertain its ultimate
policy path remains. read more

 

The numbers were still high, with the employment cost index, the broadest
measure of labor costs, rising 4% on a year-on-year basis in the fourth
quarter, the largest increase since 2001, and the personal consumption
expenditures price index jumping 5.8% on a year-on-year basis in December,
the biggest annual rise since 1982 and nearly triple the Fed's 2% inflation
target.

 

But the pace of change from the previous periods fell, and even as investors
and many analysts continued penciling in more and faster Fed rate increases
this year, some added a footnote.

 

The slowdown in employment cost growth, for example, was a "big step in the
right direction" for Fed officials who expect price trends to ease on their
own, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

 

Where Fed Chair Jerome Powell and other U.S. central bank officials have
emphasized the risk that inflation may prove higher and require them to
raise borrowing costs faster then expected, Shepherdson in recent forecasts
sketched an opposing view: Of an economy that flatlines because of the
coronavirus pandemic in the first three months of 2022, loses jobs in
January and February, and produces inflation that is "falling sharply" by
the second quarter, just as the Fed is presumably gearing up for its rate
increases.

 

That scenario, out of step with investors who expect five rate hikes this
year and some forecasters who have gone as high as seven, shows the degree
of uncertainty still in play around where the economy is heading and how the
Fed will respond.

 

'NO ROAD MAP'

 

An interest rate hike at the Fed's March 15-16 policy meeting is virtually
assured at this point. But even the size of that increase is up in the air
as some analysts expect the Fed, rather than the usual
quarter-percentage-point rate hike, to opt for a larger
half-percentage-point rise to tighten credit faster and demonstrate its
seriousness in lowering inflation.

 

Much, however, rides on how the economy, inflation, financial markets and
the virus behave in coming weeks.

 

Major U.S. stock indexes were trading higher on Friday, punctuating a week
of heavy losses. Earlier in the day, the U.S. Commerce Department reported
that consumer spending fell in December, weakness that may have continued
into January given the massive outbreak of new coronavirus cases. read more

 

Consumer sentiment continued to decline at the start of the year, hitting
the lowest point in a decade, according to the University of Michigan's
closely watched gauge of American households' sentiment. Survey director
Richard Curtin said the combination of Omicron, high inflation, and the
steady dose of news about future Fed rate hikes could trigger a consumer
backlash - a possible blow to economic growth on top of what's already
coming through lowered government spending.

 

"The danger is that consumers may overreact to these tiny nudges," Curtin
said.

 

That could help with inflation, at least some of which has been driven by
strong demand for goods during the pandemic, but the Fed may be treading a
fine line between what's needed to temper prices and what would be an
overreach.

 

"Panic within the Fed's ranks has begun to set in. The challenge now is to
tamp down inflation without allowing the flame on the overall economy to go
out," wrote Diane Swonk, chief economist at Grant Thornton, a professional
services firm. "There is no road map for doing this after inflation has
surged."

 

Bond markets on Friday were showing some signs of caution. U.S. Treasury
yields fell, and the gap between longer-term and shorter-term securities has
narrowed - often taken as a loss of faith in future economic growth, falling
inflation, or both.

 

Either way, said Minneapolis Fed President Neel Kashkari, it's a reason the
U.S. central bank may not ultimately need to "slam on the brakes" with
aggressive rate increases.

 

Despite the seemingly hawkish positioning of the Fed, Kashkari told NPR on
Friday that the aim is not to restrict the recovery but "let our foot off
the accelerator just a little bit." 

 

The Thomson Reuters Trust Principles.

 

 

 

Goldman Sachs lifts CEO Solomon's pay to $35 million

(Reuters) - Goldman Sachs (GS.N) Chief Executive Officer David Solomon's
total compensation for 2021 will be $35 million, the bank said on Friday.

 

That is double the $17.5 million he received for 2020. The board had then
slashed $10 million from his $27.5 million pay to settle legal costs related
to the bank's role in the 1Malaysia Development Bhd corruption scandal.

 

Solomon's total pay for 2021 includes an annual base salary of $2 million
and a variable compensation of $33 million, 70% of which is in the form of
goal-based stock compensation or restricted stock units.

 

Other major Wall Street banks have also handsomely rewarded their chief
executive officers as annual profits bounced back in 2021 thanks to
pandemic-related loan loss provisions that did not materialize.

 

Morgan Stanley (MS.N) raised CEO James Gorman's annual pay to $35 million,
while JPMorgan (JPM.N) lifted Jamie Dimon's to $34.5 million. read more

 

Since taking over the reins from Lloyd Blankfein in 2018, Solomon, 60, has
looked to diversify revenue, focusing more on predictable streams including
consumer banking and wealth and asset management while reducing reliance on
capital markets-focused businesses.

 

The bank reported a net income of $21.64 billion in 2021, compared with
$9.46 billion a year earlier. It reported a 23% increase in fourth-quarter
operating expenses, mainly due to higher compensation and benefits costs.

 

The Thomson Reuters Trust Principles.

 

 

 

Berkshire Hathaway says it has added 12,000 jobs

(Reuters) - Berkshire Hathaway Inc (BRKa.N), run by billionaire Warren
Buffett, said on Friday its workforce has grown by about 12,000, recovering
some jobs it lost earlier in the COVID-19 pandemic.

 

The Omaha, Nebraska-based insurance and investment company said its dozens
of businesses now have about 372,000 employees, up from 360,174 at the end
of 2020.

 

Berkshire had shed more than 31,000 jobs in 2020 as economies slumped and
demand for many goods and services fell. The decline included about 13,400
jobs at Berkshire's Precision Castparts aircraft parts unit and 5,600 at the
BNSF railroad.

 

Jobs were added last year as the U.S. economy grew at the fastest pace since
1984, according to Commerce Department data.

 

Berkshire did not immediately respond to a request for comment sent to
Buffett's assistant.

 

Other Berkshire units with large workforces include auto insurer Geico,
Fruit of the Loom underwear, McLane food delivery, several energy
businesses, and Clayton Homes.

 

Berkshire disclosed its recent job count in a registration statement for the
sale of bonds.

 

Buffett, 91, is expected to discuss Berkshire's performance in his annual
shareholder letter on Feb. 26, when the company will also release year-end
results.

 

Analysts on average expect full-year operating profit to exceed the previous
$24.8 billion high set in 2018. Operating profit totaled $21.9 billion in
2020.

 

The Thomson Reuters Trust Principles.

 

 

 

Hewlett-Packard wins fraud case against UK tech tycoon Mike Lynch

(Reuters) - A British judge found on Friday that tech tycoon Mike Lynch had
masterminded an elaborate fraud to inflate the value of his company Autonomy
before it was bought by Hewlett-Packard (HPE.N) for $11 billion in 2011 in
one of the UK's biggest tech deals.

 

Lynch received a further blow later on Friday when Britain's interior
ministry ordered his extradition to the United States to face criminal
charges over the deal that carry a maximum prison term of 20 years.

 

Lynch intends to appeal both the judge's finding and the extradition order,
his lawyers said.

 

Finding in HP's favour following a near decade-long battle, Justice Robert
Hildyard said the Silicon Valley company had won the majority of its civil
case against Lynch although the damages to be announced at a later date
would be significantly smaller than the $5 billion demanded.

 

"The claimants have substantially succeeded in their claims," Hildyard told
the High Court, in a one hour summary of his much longer judgment, following
a nine-month trial and a two-year wait for his decision.

 

The judge said Lynch was aware that practices Autonomy engaged in were
dishonest, its revenue recognition was improper and its accounts were false.

 

The court's decision coincided with a Friday deadline for Britain to decide
whether or not to extradite Lynch.

 

Britain's interior ministry said that it had to sign the extradition order
if there were no grounds to prohibit the order being made. The criminal
charges in the United States include wire fraud and securities fraud.

 

"On 28 January, following consideration by the courts, the extradition of Dr
Michael Lynch to the US was ordered," a Home Office spokesperson said.

 

Lynch's lawyers said that as he is a British citizen who ran a British
company, the case should not be resolved in the United States.

 

"Dr Lynch firmly denies the charges brought against him in the U.S. and will
continue to fight to establish his innocence," lawyer Chris Morvillo said.

 

"This is not the end of the battle — far from it. Dr Lynch will now file an
appeal to the High Court in London."

 

FALL FROM GRACE

 

It is a dramatic fall from grace for Britain's most successful tech leader.

 

The 56-year-old turned ground-breaking research at Cambridge University into
the foundation of Autonomy, which became Britain's biggest software company
and a member of the blue-chip FTSE 100 index.

 

He was lauded by academics and scientists, and asked to advise the
government on technology and innovation.

 

Autonomy's "almost magical" capability, as it was once described by HP, was
to search and organise unstructured information for clients, a killer
application in a world of unlimited data and artificial intelligence.

 

It was bought by HP, described by the judge as being in the doldrums at the
time, in a move that was designed to transform the computer and printer
maker into a more profitable business focused on software.

 

The acquisition turned sour almost immediately.

 

HP wrote down the value of Autonomy by $8.8 billion within a year and sought
damages from Lynch and his finance director Sushovan Hussain. Hussain was
convicted of fraud in the United States and sentenced to five years in
prison in 2019.

 

Lynch said HP did not know what it was doing, and was out of its depth in
understanding his technology.

 

He spent 20 days on the stand during the case.

 

Giving his verdict on Friday, Judge Hildyard found that Lynch and Hussain
had fraudulently concealed a "fire sale" of hardware and engaged in
convoluted reselling schemes to mask a shortfall in sales of Autonomy's
software, the business HP coveted. read more

 

That had enabled Autonomy to meet quarterly financial forecasts and maintain
its high share price before the acquisition.

 

"HPE is pleased that the judge has held them accountable," a spokesman for
Hewlett-Packard Enterprise (HPE) said after the London court ruling.

 

Lynch was also central to the creation of DarkTrace (DARK.L), a cyber
security firm that listed on the stock market last year with a current value
around $3.6 billion. Lynch and his wife Angela Bacares own nearly 16% of
DarkTrace, according to Refinitiv data.

 

HP sold the remnants of Autonomy along with other assets to British company
Micro Focus in 2016.

 

The Thomson Reuters Trust Principles.

 

 

 

Russian industry targeted, not consumers, if Biden export curbs imposed

(Reuters) - The Biden administration plans to spare everyday Russians from
the brunt of U.S. export controls if Russia invades Ukraine, and focus on
targeting industrial sectors, a White House official said.

 

"Key people" will also face "massive sanctions," a top Commerce official
said in a separate speech on Friday.

 

The comments narrow the scope of potential curbs on imports to Russia that
had previously been described as disrupting Russia's economy more broadly,
hitting industrial sectors and consumer technologies like smartphones.

 

"We can't preview every action, but the intent there really is to have
measures that we think will degrade Russia's industrial capabilities and
industrial production capacity over time, not to go after individual,
everyday Russian consumers," White House national security official Peter
Harrell said in a virtual speech for the Massachusetts Export Center on
Thursday that received little media coverage.

 

Harrell, who sits on the National Security Council, said the United States
was prepared, immediately after an invasion of Ukraine, to impose "crippling
financial costs on major Russian financial institutions as well as to impose
a range of quite sweeping export controls that will degrade Russian
industrial capacity over the mid- and long term."

 

Commerce Department official Thea Kendler, who spoke to the export gathering
on Friday, said "We are contemplating massive sanctions targeting key people
and industries that were not on the table in 2014." That year Russia invaded
and annexed Crimea from Ukraine.

 

Three days ago President Joe Biden said he would consider personal sanctions
on Russian President Vladimir Putin if he sent forces into Ukraine.

 

Harrell said he hoped the hundreds of hours he and his colleagues had spent
over the last couple of months developing measures would never see the light
of day, but that they are prepared to impose the sweeping measures.

 

The two-fold strategy includes financial sanctions against major Russian
financial institutions "to trigger capital flight, to trigger inflation, to
make the Russian central bank provide bailouts to its banks... so Putin
feels costs on day one," Harrell said.

 

Export control measures would be announced as part of the package but would
probably not have the same immediate impacts, and instead "degrade Russia's
ability to have industrial production in a couple of key sectors".

 

Harrell did not detail the sectors, but other White House officials have
mentioned aviation, maritime, robotics, artificial intelligence, quantum
computing and defense.

 

A person familiar with the matter told Reuters on Thursday the focus was on
strategic sectors significant to Russian leadership. Asked about Russia's
lucrative oil and gas sector, the person said nothing was off the table.

 

In a follow-up comment, White House spokesperson Emily Horne also said no
options had been eliminated.

 

"We and our allies have a full range of high-impact sanctions and export
controls ready to go, both immediately after a Russian invasion and in waves
to follow,” Horne said.

 

Harrell said he expected the European Union to join in the effort. "Based on
the discussions I've been having and, frankly, people way above me ... we
are quite confident we will have a very high degree of alignment with Europe
if Russia does invade Ukraine."

 

Sources have said the U.S. also may apply a rule to stop companies abroad
from shipping items like semiconductors made with U.S. technology to Russia,
as it did to curb the global chip supply to China's Huawei, which it views
as a threat.

 

The person familiar with the matter said on Thursday that U.S. officials are
also having conversations with Taiwan and South Korea, where major
manufacturers of chips are located, and countries in southeast Asia, where
some packaging is done.

 

The Thomson Reuters Trust Principles.

 

 

 

EU aims to invest billions euros in chip push, EU's Breton says

(Reuters) - The European Union aims to invest tens of billions of euros to
bolster its chip industry and double its share of global production to 20%,
the bloc's industry chief said on Friday, after a global shortage showed the
risks of relying on Asian and U.S. suppliers.

 

The EU's ambitious plan comes after the United States last year announced
its $52 billion CHIPS for America Act to better compete with Chinese
technology.

 

"I do not want to give you today the level of investment, but it will be
commensurate to what the U.S. wants to put in," European Industry
Commissioner Thierry Breton told journalists.

 

"We are working with all the different payments, especially national,
European, regional, but of course I confirm that when you add all this we
will have what we need and it will be commensurate," he said.

 

The EU Chips Act, announced by European Commission President Ursula von der
Leyen last September and which the EU executive plans to flesh out on Feb.
8, will cover investments for the next 20-30 years.

 

The EU chip push includes setting up a programme financed by EU states
targeting the production of cutting-edge chips and a design platform for
producers, software companies and users to test new applications.

 

Looser state aid rules will apply for European 'first of a kind' production
facilities.

 

"We do whatever it takes to attract strategic investment. We set our
conditions, first of a kind in Europe, security of supply, no state aid for
catch-up technologies," Breton said.

 

"I want the EU to be a net exporter in semi-conductors like we are in
vaccines. In geo-strategic industries like batteries or pharmaceuticals we
do the same -- not do everything yourself but have the capacity if needed so
that EU cannot be held hostage."

 

The Thomson Reuters Trust Principles.

 

 

 

Robinhood climbs back from lowest level since IPO

(Reuters) - Shares of Robinhood Markets Inc (HOOD.O) reversed course to
trade nearly 6% higher on Friday, driven by a broader market rebound, after
touching their lowest level since the stock's IPO in July earlier in the
day.

 

Stellar results from Apple (AAPL.O) and Visa (V.N) helped the U.S. stock
indexes rise on the last day of a week marked by wild swings amid worries
about aggressive rate hikes by the Federal Reserve and geopolitical tensions
between Russia and the West.

 

"Across the board, we are seeing a pretty big reversion from some of these
stocks that have really been crushed," Gregory Taylor, portfolio manager at
Purpose Investments, said.

 

Commission-free brokerage Robinhood saw its stock fall over 14% earlier,
after it posted a quarterly loss on Thursday evening.

 

The company reported a net loss of $423 million for the three months ended
December compared with a profit a year earlier, and its costs more than
doubled. read more

 

Like many tech start-ups, Robinhood has yet to turn a profit following its
IPO. Its monthly active users declined 8% from the sequentially previous
quarter as retail investors pulled back from the market.

 

"Robinhood was one of the pandemic darlings. Almost exactly a year ago, it
sat at the center of the meme stock mania. And that has clearly cooled off
as we headed into a new year," Art Hogan, chief market strategist at
National Securities in New York, said.

 

The stock was trading at $12.26 in afternoon trade on Friday. The share
price at its IPO in July last year was $38 and it had hit a record high of
$85 in August.

 

Short-interest in Robinhood was $501 million, or 10.77% of float, with about
$127 million worth of shares shorted over the last 30 days alone, according
to Ihor Dusaniwsky, managing director of predictive analytics at S3
Partners.

 

The Thomson Reuters Trust Principles.

 

 

Aeromexico reorganization plan confirmed after creditor deal

(Reuters) - Aeromexico (AEROMEX.MX) on Friday won court approval of its
restructuring plan after the airline struck a deal with the remaining
holdouts among its creditors, clearing the way for it to emerge from
bankruptcy with new controlling shareholders.

 

"I could not be more pleased to tell you the plan of reorganization is
confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the
agreement to pay a settlement to the creditors was announced during a court
hearing.

 

 

Her approval of the plan allows Aeromexico, one of three major Latin
American airlines to seek court protection from creditors during the
pandemic, to complete the bankruptcy process, which has been ongoing since
June 2020.

 

Aeromexico shares were up 17% on Friday, although those gains did not appear
to reflect the creditor deal and final approval, which came as the market
was about to close.

 

The plan provides for new infusions of capital into Aeromexico. Apollo
Global Management (APO.N), a frequent investor in distressed companies, will
be the largest shareholder. Delta Air Lines Inc (DAL.N), an existing equity
holder, is expected to have a 20% stake in the company once the plan is
implemented.

 

The deals struck on Friday brought in support from a group of junior
creditors who had opposed what they argued was overly beneficial treatment
for Delta and four Mexican individual investors.

 

To resolve remaining issues with its most vocal plan opponent, Invictus
Global Management, Aeromexico agreed to pay $1.1 million in cash. The
airline also said it would provide a group of junior creditors $800,000 to
cover legal fees.

 

Timothy Graulich of Davis Polk & Wardwell, who represents Aeromexico, said
during Friday's hearing before Chapman that the company was "truly grateful"
for the successful outcome.

 

"When we filed, we were literally almost out of money," he said.

 

The settlement came a day after Aeromexico announced another deal with the
official committee representing unsecured creditors in the bankruptcy.

 

The Thomson Reuters Trust Principles.

 

 

 

Namibia: Fishrot Accused 'Handpicked' for Fishcor Roles

The appointments of James Hatuikulipi and Mike Nghipunya as chairperson and
CEO of the Fishing Corporation of Namibia (Fishcor), respectively, were done
unprocedurally and not in line with the provisions of the law, a leading
investigator into the Fishrot matter claimed yesterday.

 

Anti-Corruption Commission chief investigator Andreas Kanyangela was
testifying during the ongoing bail hearing of former minister of justice
Sacky Shanghala, Hatuikulipi, Nghipunya, Pius Mwatelulo, Otneel Shuudifonya
and Phillipus Mwapopi before Windhoek High Court Judge Shafimana Ueitele.

 

He substantiated his claim by saying Hatuikulipi was appointed directly by
former fisheries minister Bernhard Esau, while the Fisheries and Marine
Resources Act stipulates that the chairperson was to be selected by the
members of the board themselves, and not by the minister.

He added that their investigations proved that an email sent by Shanghala to
Esau pushed for the appointment of Hatuikulipi.

 

The email read: "I believe that James Hatuikulipi is the perfect person for
the chairmanship of Fishcor, and he is what we are looking for."

 

In May 2014, Esau offered Hatuikulipi the position for a period of three
years, and extended it for another three years in 2017. Hatuikulipi then
forwarded the appointment letter to Shanghala, his cousin Tamson (Fitty)
Hatuikulipi and former representative of the Samherji Group, who benefitted
immensely from the Fishrot scandal, Jóhannes Stefánsson.

 

Kanyangela said, after the appointment of Hatuikulipi, the latter wasted no
time in convincing the other board members to appoint Nghipunya - who at
that stage was the acting CEO of Fishcor, as substantive CEO - which was the
first step in the plan to hijack the fishing industry.

 

He further told the judge that at that stage, the fisheries minister did not
have the power to allocate quotas to non-fishing rights holders such as
Fishcor. That's when they hatched the plan to amend the Fisheries Act to
allow the minister to allocate quotas at the minister's whim, which opened
the door for Fishrot.

 

Shanghala, who at that stage was still at the helm of the Law Reform and
Development Commission, then prepared the amendment, which was tabled before
Cabinet. The amendment was framed as such that it provided that the minister
is empowered to allocate Fishcor 50 000 metric tonnes of horse mackerel
annually, as well as other fish species like hake. Fishcor then entered into
usage agreements with fishing entities associated with the Samherji Group
from Iceland, as well as other entities.

 

According to Kanyangela, it was agreed that the entities would pay 25% of
the usage fee in Namibia to Namgomar Pesca Namibia, which they brought into
operation to steer the process, with the rest to be paid in Dubai to a
company belonging to Hatuikulipi called Tundavala Investments.

 

>From there, he said, payments were made to Celax Investments, which belonged
to fugitive lawyer Marèn de Klerk, who in turn distributed the ill-gotten
proceeds among the other Fishrot accused.

 

According to the State, more than N$317 million was misappropriated and
divided between the accused.

 

The six men together with Esau, Ricardo Gustavo (on bail) and Tamson and
Nigel van Wyk, are facing more than 40 counts including racketeering,
contravening the Anti-Corruption Act, conspiracy, corruptly using an office
to receive gratification, fraud, theft and money-laundering, as well as
defeating or obstructing the course of

 

justice.

 

It is alleged by the State that they corruptly received payments to give a
competitive advantage to Icelandic fishing company Samherji in securing
access to horse mackerel quotas in Namibia.

 

Also on the list of people added to the charges is lawyer De Klerk. The
State is yet to extradite De Klerk from South Africa, and Icelandic
nationals Ingvar Júlíusson, Egill Helgi Árnason and Aðalsteinn Helgason. The
State alleges that all the accused acted in common purpose. The matter
continues today, and the accused remain in custody.-New Era.

 

 

Namibia: Debt Has Become a Lifeline for Many Namibians

A reality that emerged from a recent Old Mutual survey is that debt has
become a lifeline for many Namibians. It is therefore not surprising that
the ripple effect of the current financial environment has not only created
an environment of constant stress, but has also led to a cycle of debt for
many individuals.

 

These results emerged during the last quarter of 2021 when Old Mutual
conducted its Savings and Investment Monitor Survey. The primary objective
of the survey was to better understand the saving behaviour and financial
attitudes of working Namibians, with specific reference to the ongoing
impact of Covid-19.

Over half of the surveyed participants indicated that buying on credit had
become a part of life as they just could not make ends meet. While a third
of those surveyed had dipped into their savings and another third had fallen
behind on their household bills. The three things that many had cut back on
were groceries, entertainment, and clothing.

 

Based upon the survey results, it emerged that a significant number of
Namibians faced many financial adversities in 2021. This forced them to take
a hard look at their financial position and the plans they had in place to
handle the challenges placed before them due to Covid-19. Out of the sample,
58% feared the possibility of losing their jobs or income while 68% were
concerned about their job security. Therefore, it is understandable why 33%
of the participants had taken on an additional job or business or done
freelance work on the side in addition to their permanent or regular job to
supplement their income.

 

Equally, the results showed that a quarter of those surveyed lived with
their parents while 80% said that they had children who are dependent on
them. Similarly, a quarter of the participants highlighted that since the
emergence of the pandemic, they had started financially supporting more
people.

 

Something that stood out from the survey was that even though almost 76% of
the respondents agree that the Covid-19 pandemic had made them more aware of
the need for protection cover such as medical aid, life insurance and
funeral cover, the demand for such protection was however subdued. This
could be attributed to the current financial predicament that many Namibians
find themselves in. It was however encouraging to see that close to half of
the respondents believed that the Namibian economy would improve soon.-New
Era.

 

 

Nigeria: FAO, WFP List Nigeria Among 20 'Hunger Hotspots'

A new report jointly anchored by the Food and Agricultural Organisation
(FAO) and the World Food Programme (WFP) has warned that acute food
insecurity was likely to deteriorate further in Nigeria and 19 other
countries, particularly between February and May 2022.

 

The report which was released yesterday by the FAO and WFP issued an early
warning for urgent humanitarian action in what they described as 20 "hunger
hotspots" where part of the population was likely to face a significant
deterioration of acute food insecurity in the coming months, that will put
their lives and livelihoods at risk

 

Of the identified "20 hunger hotspots," the report stated that Ethiopia,
Nigeria, South Sudan and Yemen remained at the highest alert level from the
previous edition of its report.

 

According to the report, in their last available assessments, these
countries all had parts of populations identified or projected to experience
starvation and death (Catastrophe, Integrated Food Security Phase
Classification [IPC] Phase 5), requiring the most urgent attention.

The FAO-WFP therefore, called for an urgent and targeted humanitarian action
to save lives and livelihoods, especially in Nigeria, Ethiopia, South Sudan
and Yemen.

 

"Moreover, in four of these - Ethiopia, Nigeria South Sudan and Yemen -
humanitarian actions are critical to preventing starvation and death," the
report stressed.

 

Giving specific reasons for the looming hunger in Nigeria, the report stated
that in northern part of the country, attacks by non-state armed groups in
the north-east, coupled with banditry and intercommunal violence in the
North-central and North-west, would continue to disrupt agricultural and
market activities.

 

These, it added, would lead to reduced incomes and new displacement,
including in areas that are projected to face Catastrophe (CH Phase 5).

The report further explained: "Precarious security conditions and high
inflation rates are likely to further aggravate acute food-insecurity levels
beyond Borno State in the outlook period.

 

"Countrywide, about 620,000 people - over 74 per cent of them in Borno,
Adamawa and Yobe - are projected to face Emergency (CH Phase 4) from June to
August 2022, up from about 230,000 in the 2021 post-harvest period, within a
total of 18 million people expected to face Crisis or worse (CH Phase 3 or
above) levels of acute food insecurity.

 

"This represents a sharp increase - by 6 million - from previous estimates.
While this relates mostly to increased geographic coverage in the analysis,
nonetheless it is also a reflection of an overall deterioration of food
security in northwestern, north-central and south-eastern states, driven by
high food prices and the upsurge of violence, which are expected to further
constrain agricultural livelihoods and access to food

 

"In the outlook, the likely deterioration of acute food insecurity levels is
the result of persistent attacks by non-state armed groups in the northeast,
coupled with banditry and intercommunal violence in the northcentre and
northwest that continue to disrupt humanitarian access, and agricultural and
market activities.

 

"On the economic front, higher year-on-year prices, underpinned by market
disruptions and difficult macroeconomic conditions, continue to constrain
food access for vulnerable households.

 

In the next months, prices will likely be further affected by the effects of
conflict coupled with currency depreciation and foreign exchange shortages.

 

"In conflict-affected northern Nigeria, extreme access constraints are
likely to continue in the outlook period due to persistent insecurity, while
some areas most at risk of sliding into catastrophic situations remain out
of reach."

 

To identify hunger hotspots, FAO and WFP assessed how key drivers of food
insecurity are likely to evolve and have combined effects across countries
in the coming months, and the related risks of deteriorations.

 

They identified these through interlinked or mutually reinforcing
parameters, including organised violence and conflict, economic shocks such
as secondary impacts of the COVID-19 pandemic, weather extremes and climate
variability, animal and plant pests and diseases.

 

Apart from Nigeria, Ethiopia, South Sudan and Yemen, some other countries
listed in the report's "20 huge hotspots" were Mozambique, Syria, Myanmar,
Central African Republic, DR Congo, Sudan, Madagascar, Afghanistan and
Angola, among others.-This Day.

 

 

Kenya: Safaricom, Airtel Saved the Pain of Reimbursing Sh30 for Dropped
Calls

Nairobi — A bill introduced in Parliament that sought to compel mobile telco
firms to reimburse customers Sh10 for every dropped call has expired, a sign
of relief for telco providers including Safaricom and Airtel.

 

If passed to law, the Kenya Information and Communication (Amendment) Bill,
2019 would see the customers compensated for a maximum of three calls per
day.

 

The bill which was introduced in 2019 by Gem Member of Parliament (MP)
Elisha Odhiambo, sought to promote quality services, increase nationwide
access to telecommunication services to all consumers including those in
low-income, and rural areas.

 

"A licensee is liable to credit a customer who initiates a call that gets
cut out after a connection by Sh 10 worth of airtime for each call drop
within its network for a maximum of three calls per day. A licensee shall
not be liable to compensate a consumer where a call gets cut out due to
third party interference on the licensee's connection lines, inevitable
accident," the bill read in part.

 

It however lapsed after MPs failed to debate it and conclude its second
reading.

 

"The following bills which were published in 2019 and whose second reading
had not been concluded by end of the fifth session have now lapsed,"
National Assembly speaker Johnson Muturi ruled on Wednesday.-Capital FM.

 

 

 

Rwanda: Leverage Digital Skills for European Job Market - Kagame to African
Youth

President Paul Kagame has said that young Africans should leverage available
technology to create jobs and integrate into the European labour market
without necessarily migrating to other countries.

 

He said this while addressing the Talking Africa Europe debate on migration
and mobility in Africa-Europe partnerships, on Thursday, January 27.

 

Organised by the Africa-Europe Foundation, the discussion is among other
topics prepared to pave the way for the upcoming African Union-European
Union Summit.

 

Kagame said there are several reasons why Africans migrate to Europe, "some
of them are justified, others are not, but they are either political,
economic, security, all wrapped up on matters of governance."

 

 

"Dangerous journeys continue to cause loss of lives and empower criminal
network, we need new thinking and action to give us the results we want. To
make progress, we must collectively diagnose the root cause of migration,"
he said.

 

He recommended that wide access to digital skills and technologies is one of
the most strategic ways to modernize the migration policy debate.

 

"It is no longer necessary to relocate to Europe in order to participate
directly in the European labour market. Young Africans can do so from Africa
with private-public technology investments that create jobs."

 

Overall, he added, "our starting point is that every young African should be
able to lead a dignified, productive, and safe life on the African
continent, whether in their home country or elsewhere in Africa."

If Africans would be comfortable staying in their own countries and at the
same time allowed to move from one country to another, then some of these
problems would be reduced to the minimum, he added.

 

Effective migration mechanisms should be put in place

 

The president said that both continents can benefit from migration provided
that it is orderly, safe, and focused on the needs and aspirations of each
person.

 

All countries have the right to control their borders and regulate
immigration, he said, settling in another country by anyone is not an
automatic entitlement.

 

"There needs to be a better mechanism in place to distinguish between
irregular migrants from relatively stable countries and those deserving of
special protection who may get lost in the crowd."

 

He added that more efforts need to be made by engaging stakeholders on all
sides of the migration issue, particularly, the civil society and advocacy
groups.

 

Pointing at the Emergency Transit Mechanism established in Rwanda in 2018 to
receive vulnerable immigrants needing evacuation from Libya, Kagame said
that African-European partnerships can provide protection and humanitarian
assistance to those that need it.

 

In collaboration with the African Union and UNHCR, more than 650 migrants
have been welcomed and protected at the facility while waiting for
resettlement processing.

 

"Policies focused on detention, deportation and deterrence have not been
effective and will not provide a lasting solution, therefore we have to be
thinking differently," said Kagame.

 

On the other hand, the Prime Minister of Greece, Kyriakos Mitsotakis, said
that African countries should be more cooperative to encourage and
facilitate migrants who are not fleeing war or persecution and who are not
allowed asylum status to return to their home countries.

 

"We need to reassure to the greatest extent possible that the younger
African generation has a reason and the necessary resources to stay in their
home countries," he said.-New Times.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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