Major International Business Headlines Brief::: 04 May 2022

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Major International Business Headlines Brief::: 04 May 2022 

 


 

 


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

 


 

 


ü  Musk says Twitter may see 'slight cost' for businesses and governments

ü  LIC IPO: Insurance giant opens India's largest share sale

ü  Brewdog boss James Watt plans to give staff 20% of his stake

ü  Can the Bank of England stop spiralling inflation?

ü  Russia beats final deadline to avoid debt default

ü  Estee Lauder: Cosmetics rebound outside of China

ü  Nigeria Looks to Canada for Emergency Potash Supply to Replace Russia

ü  Nigeria: UK Firm Targets 70 Million Nigerians in $500m Medical, Hospitality Investment

ü  Nigeria's Private Refineries' Operators Groan Under Weight of Crude Scarcity As NNPC Focuses On Export

ü  Nigeria: 16,572 Subscribers Port Services to Other Networks in Six Months in Search of Better Service Quality

ü  Africa: Why Millions of Africans Are Right to Resist Mobile SIM Card Registration

ü  Uganda: Use of Cryptocurrency Is Not Allowed in Uganda, Says Bank of Uganda

ü  Namibia: Green Light for Second Desalination Plant

ü  Tanzania: How Tanzania is Bagging Billions in Natural Gas Investments

ü  Uganda: Current High Prices Call for Self-Imposed Lockdowns

ü  Uganda: Coffee Deal a Minefield for Coffee Stakeholders, Warns Top Exporter

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Musk says Twitter may see 'slight cost' for businesses and governments

Business and government users on Twitter may need to pay a "slight" fee to stay on the social media platform, Tesla boss Elon Musk has said.

 

It comes after the board of Twitter agreed to a $44bn (£34.5bn) takeover offer from Mr Musk.

 

However, Mr Musk said the site would always be free for "casual users".

 

He had previously said he wanted to "make Twitter better than ever by enhancing the product with new features".

 

Earlier, Mr Musk had tweeted a link to a CNN story which called for some of the US' biggest brands to boycott Twitter if Mr Musk rolls back content moderation policies limiting hate speech.

 

He has argued that Twitter's moderation policies pose a threat to freedom of speech.

 

Since agreeing to buy Twitter, Mr Musk has said he wanted to make improvements to help increase the attractiveness of what he describes as a "niche" platform.

 

He has said he would introduce new features, and suggested changes to its new premium subscription service, Twitter Blue, including cutting its price.

 

The paid-for extra service will add features such as an "undo tweet" button, bookmarks, and a reader mode, Twitter said.

 

Mr Musk has also said he wants to remove spam bots from the platform and authenticate all real people.

 

On Monday at the annual Met Gala in New York, he said he would make Twitter transparent about how tweets are promoted or demoted and wanted its software to be available for public scrutiny.

 

Elon Musk sells $8.5bn worth of Tesla shares

Twitter adds users as it gears up for Musk takeover

Who is Elon Musk?

Meanwhile, the multi-billionaire has reportedly told potential investors that he may return the social media firm to the stock market in just a few years.

 

Mr Musk plans to sell Twitter shares again as little as three years after buying it, according to the Wall Street Journal, which cited people familiar with the matter.

 

His takeover of the company is expected to be completed later this year, subject to conditions including the approval of Twitter's shareholders and regulators.

 

Under the deal he will buy all the shares in the company that are currently available on the stock market, taking it from being a publicly-owned company to a private one.

 

Last week, Mr Musk sold roughly $8.5bn worth of shares in Tesla, which led to speculation that he will use the money to help finance his buyout of Twitter.

 

Shares in the electric car company have lost more than 20% of their value in the last month, amid concerns that Mr Musk would sell part of his stake in the company to fund the deal.

 

Mr Musk is the world's richest person, with an estimated net worth of around $250bn, mostly due to his Tesla stake.

 

He also has a controlling stake in the rocket company SpaceX, which is estimated to be worth $100bn.-BBC

 

 

 

LIC IPO: Insurance giant opens India's largest share sale

Shares in the Indian state-run insurance giant Life Insurance Corporation (LIC) have gone on sale in a $2.75bn (£2.18bn) initial public offering, witnessing strong demand from institutional investors.

 

The government is offering a 3.5% stake in what will be India's largest share sale, despite both the size and valuation of the issue being slashed significantly to reflect current market conditions.

 

What are the details of the IPO?

The date for share listing is 17 May, the government's Department of Investment and Public Asset Management said.

 

Bids for anchor investors opened on 2 May but the share sale for the public opens on 4 May and closes on 9 May.

 

General investors can buy equity shares at a price band set at $11.75-12.36 (£9.38-9.87) per share.

 

The company's policyholders, employees as well as small mom and pop investors will be entitled to an additional discount of up to 60 rupees, according to papers filed by the company with India's securities watchdog.

 

Broking firm Zerodha expects at least 8-12 million additional online trading accounts to be opened by investors keen to apply for the IPO, a 10-15% bump up to the 80 million accounts currently in operation.

 

Struggling Air India sold to Tata Sons

Why does LIC matter?

LIC is nearly as old as independent India. Formed by nationalising and merging 245 private insurance companies, it started issuing policies in 1956, holding a monopoly on India's insurance sector until the turn of the millennium.

 

More than two decades after private competition was allowed, LIC continues to hold a leadership position, with 66% market share as of 2021.

 

Its sheer size makes the insurance behemoth a systemically important company for India.

 

At over $500bn, its asset base is bigger than the GDP of several countries. And with nearly 280 million policies in force, it manages four times more policies than the entire population of the UK.

 

It is also India's largest asset manager, with massive investments in state and central securities as well as the stock market.

 

According to the ratings agency CRISIL, LIC's equity investments in listed companies represented 4% of the total market capitalisation of the National Stock Exchange. It has also been the default financier of the government in trying times, bailing out flailing state-run companies.

 

LIC also owns a sprawling portfolio of real estate across India.

 

Why is LIC a part of India's social fabric?

With 1.3 million distributors selling policies across pretty much every nook and corner in India, the ubiquitous "LIC agent" has held a unique place in independent India's public consciousness.

 

Srinivasalu Naidu, a septuagenarian who has sold policies door to door for the past 30 years, told the BBC he was known in his heyday as "LIC Naidu", a much revered figure in his village in the southern Indian state of Andhra Pradesh.

 

Agents like him have been critical to the company's growth and mission to build trust and create a savings culture across the remote corners of the country.

 

"People didn't buy policies from me just as insurance, they did it as an investment. For their kids' education or wedding. They trusted their life savings with me," said Naidu.

 

With nearly 280 million policies in force, LIC manages four times more policies than the entire population of the UK

Private banking giant UBS estimates 10 out of every 100 rupees saved by Indian households go into LIC, a much larger amount than even the deposits attracted by India's largest bank, the State Bank of India.

 

Are there any concerns over the IPO?

Given LIC's social relevance and scaled-down valuation, India's opposition politicians have accused the government of selling "family silverware" and prioritising shareholders over politicians.

 

According to analysts, even at the upper price band, LIC's issue has been valued far lower by the government than its three listed private peers - HDFC Life Insurance Co., SBI Life Insurance Co. and ICICI Prudential Life Insurance Co.

 

"It is not justified at all. You should also involve the opposition (in deliberations), when you are disinvesting something like the LIC which is a social security net," Dr Shama Mohamed, a spokesperson of the Congress party, told the BBC.

 

Last month, PM Narendra Modi's government decided to defer the mega IPO amid global stock market volatility due to the Russian invasion of Ukraine. It had initially planned to raise about $8b by selling 5% of LIC to fund its widening fiscal deficit - the gap between earnings and expenditure.

 

Amid surging fuel costs and lower growth projections, the pruned fundraising target is expected to put additional pressure on New Delhi's already stretched finances.

 

But analysts say the size and price are appropriate given the current environment, with foreign investors pulling out nearly $20bn from Indian equities since October 2021. And the government is confident that LIC's dominant leadership position and fair valuation will attract significant investor interest.

 

"Even if we have a bit of a constrained environment, we can still pull it off because that's the kind of optimum demand scenario which exists," Tuhin Kanta Pandey, secretary at the Department of Investment and Public Asset Management, told journalists in Mumbai last week.

 

How India avoided its 'Lehman Brothers moment'

What does the IPO mean for LIC?

In the long run, a stock market listing is expected to improve how the firm is run and bring in more transparency.

 

But at a time when its competitors have all gone digital, LIC's overt dependence on physical distributors has been flagged as a cause of concern by analysts, who believe it will continue losing market share in the years ahead.

 

"On the margin front, it will be kind of hard for LIC to compete if it sticks to the distributor model. They will have to re-innovate the company and become relevant for what the insurance market will be tomorrow," says Nikhil Kamath, co-founder of Zerodha.

 

According to economic commentator Vivek Kaul, LIC pays agents twice as much in commissions in the first year, compared to private insurers, which is not sustainable in the longer run.

 

Covid-19 has also had an impact on the company. Its growth in new business premiums declined significantly as lockdowns disrupted operations, reiterating the need for LIC to significantly leverage technology to drive operating efficiency.

 

But analysts expect India's young population and massive under-penetration of life insurance to give LIC a long runway for expansion.

 

According to analysis from the broking firm Anand Rathi, India's protection gap - or the difference between the insurance required and actually available - was 83% or US$16.5 trillion in 2019, the highest in Asia-Pacific, "thereby presenting a huge potential for growth".-BBC

 

 

 

Brewdog boss James Watt plans to give staff 20% of his stake

Brewdog boss James Watt has set out plans to give away nearly a fifth of his equity stake to the firm's staff.

 

Mr Watt owns a quarter of the fast-growing Aberdeenshire-based beer maker.

 

Brewery and pub workers have criticised him over his behaviour and pressure on them to grow the firm rapidly.

 

At least partly in response, Mr Watt has set out an incentive plan which also means half of its pub profits will go to those who work on hourly rates in its 111 bars worldwide.

 

Based on last year's figures, that could mean an annual bonus of between £3,000 and £5,000 each, in cash payouts made twice a year.

 

The chief executive claimed the giveaway of shares could be worth £120,000 for each Brewdog salaried staffer, comprising four annual tranches starting this June.

 

However, the shares are not yet tradeable, and plans to float shares on the stock exchange have been delayed.

 

A funding round in 2017 brought in an investment fund, TSG, with a £213m injection of capital, but on terms that financial analysts said stood to undermine the value of other shareholders.

 

James Watt currently holds 24.2% of the company, and the plan unveiled on Monday - to mark 15 years since it started brewing - is for him to give away 5% to an Employee Benefit Trust, reducing his stake to 19.2%.

 

That trust will distribute equally across salaried staff, at around 1.25% of the company each year. Anyone who leaves the company ahead of shares being floated on the stock exchange will have to give up the option to buy shares, which will then revert to the trust.

 

'Culture of fear'

At current rates of turnover, the 5% stake will take up to eight years for the trust to distribute.

 

Between staff and the 'Equity Punks' who took part in several successful rounds of crowdfunding, a quarter of the company should be owned by small-scale shareholders once this process is complete.

 

The rewards package, unusually, extends to former members of staff, including some who were particularly outspoken about Mr Watt's behaviour and the pressures they were under.

 

Ex-employees will get discounts on Brewdog products and in its bars, and will be able to join an alumni club.

 

Management was accused by former workers last summer of having a "culture of fear" within the business, with "toxic attitudes" towards junior staff.

 

A group of 60 employees published an open letter alleging the business was built upon a "cult of personality" around its founders, James Watt and Martin Dickie, with "growth at all costs" the overarching focus of the company.

 

Further revelations came to light in an investigation by BBC Scotland journalists.

 

Mr Watt said the group had already made changes after the open letter was published, stressing the employee reward scheme was not about mending relationships with employees, but "building the best company we possibly can".

 

"Everything we're doing today is about looking forward with a fantastic team," he said.

 

'New type of business'

He said Brewdog wanted to be a "new type of business", and that shared ownership would help with recruitment, retention and team engagement.

 

"We want our team members to act as business owners and incentivise them as if they are business owners," he added.

 

Mr Watt said the group was unlikely to float in the next 12 months given the market uncertainty, but said a listing was "very much part" part of the plan in the medium term.

 

Brewdog was founded in Fraserburgh by James Watt and his friend and fellow beer-lover Martin Dickie, as a challenger to conventional beer.

 

It expanded rapidly with a move to a new brewery in Ellon, where it is currently expanding its capacity. Other Brewdog breweries have been built in Ohio, Brisbane and Berlin.

 

It operates 111 bars around the world, with three hotels, and in Ellon it is expanding into spirits distillation.-BBC

 

 

 

Can the Bank of England stop spiralling inflation?

The PM yesterday said that fears of an "inflationary spiral" had held back the amount of support the government could offer in the cost of living crisis.

 

This is a tricky concept to explain to millions of people seeing the energy bill direct debits more than double, and take home pay fall after national insurance rises. Indeed the more basic direction of causation would be the other way - lower energy price rises mean lower rates of inflation.

 

The logic is not new. The Treasury made the same point in a letter in December underpinning its approach to pay for public sector workers, saying rises could "contribute to higher wage demands across the country".

 

What has changed is that long term interest rates are starting to rise now, not just for the government, but also for businesses and home owners with a mortgage.

 

People face biggest living standards drop since 1956

Sunak accused of not doing enough for poorest

The fear of an "inflationary spiral" is that these rises will start to accelerate. Short term interest rates set by the Bank of England are now expected to hit 2.5-3%, continuing tomorrow, as the Bank tries to grapple with inflation exceeding 8 or 9%.

 

And yet at this very same moment, economists are starting to forecast the same cost of living crisis beginning to send the economy into reverse. There is no rocket science here. What could reach £40 billion worth of consumer energy cost hikes, the equivalent of an 8p rise on the basic rate of tax, has been only fractionally mitigated by government support.

 

This money is coming straight out of household disposable income at the same time as tax rises. This puts real consumer spending power on course to fall by the most seen since the 1940s - in just one year.

 

The confidence of UK consumers in the economy and their finances is suffering. The five-decade old market research firm GfK's survey found customer confidence to have fallen to one of its lowest levels since 1974.

 

In the current three month period of April to the end of June, some economists fear zero growth in the size of the economy, or even a fall, after taking into account the extra Jubilee Bank Holiday. Recession risks are rising, even as rates are rising too.

 

This is the "narrow path" the Governor of the Bank of England says his institution has to tread in the coming months, as both growth and inflation are sent in the wrong direction, at precisely the same time. But it is a path that could force British households even further away from their normal course.-BBC

 

 

 

Russia beats final deadline to avoid debt default

Russia has avoided defaulting on its government debts by making necessary payments in US dollars, shortly before the final deadline passed on 4 March.

 

$650m (£520m) payments on international bonds were originally due on 4 April.

 

The US Treasury blocked Russia from making the payments from reserves frozen by Western sanctions, raising the prospect of default.

 

Russia offered to pay in roubles then changed its policy last week.

 

The decision marks the latest twist of a long-running wrangle with the US Treasury over how Russia is allowed to service its debts.

 

If Russia had only made the payments in roubles, it would have deemed a failure to pay - a default - after a grace period of 30 days from the original payment date of 4 April.

 

 

But on 29 April, it announced that it would change course and pay from the portion of its dollar reserves which were not kept in the West, and had thus escaped sanctions.

 

A US official confirmed that the payments have been made.

 

"Russia was forced to choose between draining their remaining valuable dollar reserves or new revenue coming in, or default," the US official said.

 

"Russia has made their debt payment using funds located outside the US or other partner jurisdictions. These valuable reserves have permanently left Russia and can longer go towards funding their invasion of Ukraine," the official continued.

 

The payments have arrived in some investors' accounts, according to unnamed sources quoted by the Reuters news agency.

 

The Credit Derivatives Determination Committee for Europe, Middle East and Africa met on Tuesday to discuss whether Russia had failed to pay its debts, and therefore investors who had bought Credit Default Swaps, a form of insurance against non-payment, could start making claims.

 

In a statement on its website, it noted news reports that payments had been made, and said it would defer the next step of the process, while it "continues to monitor the situation."

 

A default may not have been permanently averted. Russia has around $40bn of international bonds still outstanding, and may have trouble making debt payments after 25 May, when US Treasury provisions allowing debt interest and repayments expire.

 

A default would have been the first time Russia had failed to pay its government debt since 1998 - the economic crisis at the end of then President Yeltsin's term in office.

 

A government default would be a major blow to Russian prestige - and Russia is clearly prepared to spend valuable foreign currency reserves to avoid it.

 

The credit reference agencies, which would normally pass the definitive ruling on when a country has defaulted, are banned from covering Russian debts by EU sanctions.-BBC

 

 

 

Estee Lauder: Cosmetics rebound outside of China

Recent Covid restrictions in China have dealt another setback to cosmetics giant Estee Lauder as it tries to emerge from a pandemic slowdown.

 

The owner of Clinique and Bobbi Brown cut its sales forecast almost in half for the 12 months to July, citing weeks-long shutdowns that stopped it from shipping products in China.

 

It now expects overall growth of just 7% to 9%, down from as much as 16%.

 

Executives said it marked a temporary hit to a broader "makeup renaissance".

 

The beauty industry has been working to recover from the pandemic, which prompted a prolonged shift to more minimal beauty routines.

 

Estee Lauder said that outside of China, shoppers are buying makeup and perfume again, spurred by returns to the office, increased restaurant dining and an uptick in parties.

 

 

Sales in the Americas in the January-March period jumped 15% year-on-year, while in Europe, the Middle East & Africa they gained 17%. The UK led growth in Europe, as in-person shopping rebounded.

 

Buyers are in a mood to pamper themselves, with prestige skincare lines such as La Mer growing especially fast, said chief executive Fabrizio Freda.

 

The company's fragrance business has also been booming, with sales up 31% in the quarter, compared to the prior year.

 

But restrictions in China - which typically accounts for more than a third of the Estee Lauder's business - weighed on its results, dragging down the firm's sales in the Asia Pacific region by 4%.

 

While online demand remained strong, sales at bricks and mortar stores dropped precipitously and logistics were severely disrupted.

 

For the last 15 days of March, the firm was unable to ship any orders due to the shutdowns in Shanghai, its distribution hub, executives said.

 

They said they did not expect the logistics hurdles to ease until mid-May at the earliest.

 

"It's not about consumer demand," Mr Freda. " It's about access to consumers."

 

"Obviously that's temporary," he added.

 

Overall sales at Estee Lauder rose less than expected, up just 10% to $4.25bn compared to the same period last year. Profits were $558m, up more than 20%.

 

Shares sank more than 5% following the results.

 

While the beauty industry continues to face challenges from the pandemic, its sales have been lifted as people opt for more expensive products - despite using makeup and washing hair less frequently, according to research firm Kantar.

 

Estee Lauder rival L'Oreal said last month that sales rose 19% in the first three months of the year, compared to 2021 - ahead of analyst expectations.

 

It said purchasing behaviour had been unaffected by inflation.

 

Estee Lauder has already increased prices and expects to do so again in July, executives said.-BBC

 

 

 

Nigeria Looks to Canada for Emergency Potash Supply to Replace Russia

Nigeria bought emergency supplies of Canadian potash in April after the country was unable to import the key fertiliser ingredient from Russia due to the impact of Western sanctions, the head of Nigeria's Sovereign Investment Authority (NSIA), Uche Orji, has disclosed.

 

Although he declined to comment on prices, however, spot prices yesterday were up more than 250 per cent for deliveries to West Africa compared to last year, according to commodities pricing agency Argus Media, dealing a further blow to the country's finances.

 

Reuters reported that the move showed one of many unintended negative consequences of sanctions to punish Russia for its invasion of Ukraine, which it calls a "special military operation".

 

"Russia was unable to deliver so we bought spot from traders in Canada. The Canadian High Commission in Nigeria helped start the conversation with producers," Orji told Reuters.

 

NSIA negotiates imports of raw fertiliser materials like potash as part of the Nigerian government's programme to develop its capacity to produce blended fertilizer.

Orji said Nigeria has enough potash inventories to cover 40 per cent of blending demand and bought three cargoes of Canadian potash, which should arrive within the next month. Normally, the country takes five Russian cargoes a year.

 

Western sanctions and self-sanctioning by many global companies and financial institutions has created chaos for anyone dealing in products of Russian origin and sent many energy and commodity prices to record highs.

 

Last week, the Minister of Finance, Budget and National Planning, Zainab Ahmed, speaking with Bloomberg Television, had attributed the rising prices of fertiliser to the scarcity of potash, stressing that the government was doing everything to ameliorate the impact.

 

"The Ukraine Russia war is causing another wave of global economic distortion and we are very much affected in the sense that energy prices are high which comes with increasing transportation costs, which is also reflecting in the cost of food," she noted.

According to the minister, as a fertiliser-producing country, it has been tough getting the key ingredient in the production of the agricultural commodity, which has led to skyrocketing prices.

 

"And also, for Nigeria as a producer of fertiliser, one of the major inputs for fertiliser production, potash, is also affected. Now it is scarce and that means that the input is very expensive and we are seeing that reflecting in the cost of fertiliser.

 

"As a government, we are looking at how to mitigate this high cost to support the fertiliser producing companies so that the price of the commodity is not too out of the reach of the common man who are the farming population," the minister explained.

 

The International Monetary Fund (IMF) said last week that the invasion had delivered a further "huge negative shock" to sub-Saharan Africa, driving food and energy prices higher and putting the most vulnerable people at risk of hunger.

 

The extra pressure comes as many countries are still reeling from the protracted COVID-19 pandemic, Reuters indicated.

 

Nigeria has for years been battling double-digit inflation, which quickened to 15.92 per cent last month, and its population of 200 million will face even higher food costs this year and the next as the agricultural sector passes on the higher costs of imported wheat, diesel and fertiliser.

 

Russia's Uralkali, a major global producer of the crop nutrient, has been Nigeria's exclusive supplier since 2019. Uralkali declined comment. The Canadian government did not have an immediate comment.

 

The potash producer has not itself been targeted by sanctions so far but Russian businessman Dmitry Mazepin left the board and cut his controlling stake in Uralchem after he was hit by EU sanctions in March. Uralchem owns the majority of Uralkali.

 

Orji said there were ongoing discussions to see if a Russian delivery could still be made.

 

The price of potash has been on the rise since last year after the EU imposed some sanctions on Belarus, the world's third biggest producer after Russia and Canada.

 

The price skyrocketed in early March following financial sanctions on Russia, hitting a record $1,125 per tonne at the end of April for product on a delivered basis to South Africa, according to commodity pricing agency Argus Media. Combined, Belarus and Russia account for 38 per cent of global potash supplies, which are now uncertain.

 

Nigeria imported about 200,000 tonnes of potash last year, one of three key ingredients for fertiliser blending, according to the local Fertilisers Producers Association of Nigeria (FEPSAN).

 

Nigeria's raw material imports meet just under 40 per cent of Nigeria's needs, the rest is sourced domestically, and local blended output was 1.5 million tonnes last year, nearly equal to domestic consumption.

 

"The Canadian potash will hopefully arrive just in the nick of time for the planting season, which starts as early as end-May in some parts," FEPSAN Executive Director, Gideon Negedu said, adding that the association has a strategy to prioritise crops that need more potash.-This Day.

 

 

 

Nigeria: UK Firm Targets 70 Million Nigerians in $500m Medical, Hospitality Investment

A United Kingdom (UK) based firm, HP Kapital Limited and the FHT Ventures Plc yesterday in Abuja, unveiled a multi-billion-naira development - driven intervention plans.

 

The firms said their target was to empower 70 million youths in Nigeria and put an end to medical tourism by wealthy Nigerians. .

 

The Chairman of HP Kapital UK, Mr. Nandishwar Kaushal, disclosed this at a news conference in Abuja.

 

He said $500 million had been sourced from the World Bank and other global development institutions as take-off fund.

 

He explained that the entire plan was all about rebuilding Nigeria by making necessary interventions in critical areas like youth unemployment and medical tourism.

 

Kaushal said, "Nigeria for several years now, has not been fully supported the way it deserves, particularly in the area of youth empowerment or engagement in World class medical centres where any form of health challenge could be attended to.

 

"In addressing the challenges in the two areas mentioned, hectares of land have been secured in Abuja, Lagos, Bauchi, Enugu and Niger states for the establishment of world class hospitals and tertiary institutions with technology and skills - driven curriculum.

 

"The Hospitals in plan would be anchored on self - sustainability in terms of electricity supply and operationally holistic in terms of medical and health care service delivery with inclusion of natural herbal medicine.

 

"For the teeming unemployed youths in the country, empowerment programmes in the areas of Agriculture, Information and Communication Technology (ICT) among others, will be carried out.

 

"About 10 million youths will become entrepreneurs while 60 million others would be gainfully engaged.

 

"The intervention plan will also help government at various levels to practically address the 20 million housing deficit in the country with building of affordable houses for the needy," he said.

 

Making further explanations to the intervention plans, the Chairman of FHT Ventures, Mr. Olubunmi Faboro said required collaborations with relevant government agencies had been established.

 

"Relevant government agencies have been contacted and keyed into the plans," he said.

 

Disclosing the level of such collaborations, Mr. Osita Opara, a chartered broker and projects coordinator for the intervention plans, said 18 hectares of land had been secured for the World Class Hospital at the Guzape area of Abuja.

 

He added that additional 13 hectares of land had also been secured in the Guzape extension, for hotels, malls and offices.

 

Others, according to him, were, 30 hectares of land in Lagos, 1.7 hectares of land in Central Business District Abuja for the building of a 22-Storey structure with residential , hotel and offices.

 

"No issue with land allocations as far as the planned intervention projects are concerned," he said.

 

The President of Youth Coalition in Nigeria, Ambassador Abdulmumini Ibrahim was at the World press conference on behalf of 70 million Nigerian Youth .-This Day.

 

 

 

Nigeria's Private Refineries' Operators Groan Under Weight of Crude Scarcity As NNPC Focuses On Export

The few small-scale refineries operating in Nigeria are facing a huge challenge of crude oil supply, as the Nigerian National Petroleum Company (NNPC) Limited continues to focus on exporting the commodity, THISDAY learnt yesterday.

 

Several operators, despite the assurances by the national oil company of support, expressed frustration that despite the huge investments, their facilities have remained dormant as the NNPC has declined to make the raw material available.

 

THISDAY recalls that on several occasions, the Group Managing Director of the NNPC, Mr. Mele Kyari, had assured local operators of adequate crude oil supply.

In fact, recently, at the launch of Waltersmith refinery, Kyari was quoted as promising that the NNPC would collaborate with relevant entities to provide the few modular assets operating in the country with all the necessary support they need to operate and achieve their growth plans.

 

"We will work closely with them to ensure that they get enough crude feedstock they need to operate seamlessly," the NNPC boss had said.

 

But it was gathered that the refineries operating mainly in Imo, Delta and Edo have been mostly dormant due to the refusal of the NNPC to supply crude to the local oil facilities, especially as they have been unable to fully source the required commodity from private crude suppliers.

 

For instance, it was gathered that the 10,000 barrels OPAC refinery in Kwale which underwent testing under the defunct Department of Petroleum Resources (DPR) has not been producing due to the NNPC's inability to supply the raw material to the company while Waltersmith was facing same issues and Edo refinery is being delayed for the same reason.

While the companies are currently producing diesel, kerosene , Naphtha and fuel oil which are used in industries, with a projection to procure "reformers" which would help in producing petrol, but it was understood that the regulation of petrol has made it commercially inviable.

 

Despite the companies requesting a swap arrangement with the NNPC, the effort has become fruitless for years as the national oil company prefers to supply foreign firms, some stakeholders who preferred to remain anonymous told THISDAY.

 

As it is, it was learnt that the affected local private companies are currently buying crude from private clusters , which are rarely enough for the required demand.

 

"The major challenge here is that the NNPC has chosen to sell crude to foreign refineries and export rather than even giving concession to refineries in the country," a source told THISDAY.

It was further gathered that the Edo refinery which is due for commissioning will encounter the same problem which is delaying the take-off while Waltersmith refinery in Imo is having the same challenge since it's only getting crude from Seplat, a private company.

 

A source told THISDAY that Nigeria is paying more for petrol because since it is purchased abroad, the product would accumulate more logistics costs including, transportation, spot and refining expenses.

 

"NNPC will tell you that they are doing DSDP (Direct Sales, Direct Purchase), and give traders that don't even have refineries the needed crude, but they fail to give local refineries the commodity.

 

"This is an aberration because all those costs associated with the DSDP , they will pass these costs to the government which will add to the pump price. That's why you see the cost of products going up in the market.

 

"Today, diesel is selling for almost N700. This is the same diesel that if refined locally, all these associated costs will be eliminated," another operator told THISDAY.

 

For a product that would be sold locally in naira, an industry source told THISDAY that it was unacceptable that the private companies supplying crude would be demanding payment in dollars.

 

"What they are saying is that we have to generate USD to pay in dollars," a source stated.

 

In addition, it was learnt that the local refineries have been engaging the federal government through the NNPC for years which although has pledged support for local refineries, has done it in the breach.

 

"It's lip service. They just pay lip service. They tell us they are waiting for approval from NNPC board or from NNPC management and this is since 2020, "an aggrieved party told this paper, insisting that after several letters that were not replied, the refineries are now frustrated.

 

"We are not doing anything with our investment because we do not have crude. We have written the ministry of petroleum, permanent secretary, the midstream and downstream authority. Nothing has come out of it. We have put in so much investments into this thing. And the refineries are just lying fallow," another source added.

 

"What is the justification for supplying foreign refineries when local refineries that require very insignificant quantity are side-lined?" a frustrated operator queried.

 

While the NNPC exports about 1.3 million barrels per day, it was understood that all the refineries operating in Nigeria today would require just a meagre 16,000 barrels per day to operate optimally.

 

A THISDAY review showed that while WalterSmith refinery is just 5,000 bpd, Edo refinery is 1,000 barrels while OPAC in Delta is just 10,000 barrels per day, less than 0.5 per cent of total national export.

 

"We are not saying give us for free. We want to purchase and sell to the local market to ameliorate the local challenges the country is facing with refined products," the source said.

 

"Government is not giving us attention. Government is not giving us the kind of support that we need and it's frustrating. Do we have to wait for approval in our whole lifetime? the source asked.

 

The source argued that if products are produced locally, there's no way they can arrive in a bad form, because they are straight-run products as they come directly out of crude production and not blended like the imported products which cause environmental hazards.

 

The local refinery owners are therefore requesting urgent government intervention not to allow the installed facility and investment go to waste.-This Day.

 

 

Nigeria: 16,572 Subscribers Port Services to Other Networks in Six Months in Search of Better Service Quality

Recent statistics have revealed that a total of 16,572 telecoms subscribers ported to other networks within a period of six months.

 

The statistics, which was released recently on the website of the Nigerian Communications Commission (NCC), the telecoms industry regulator, and obtained by THISDAY, showed that from September 2021 to February 2022, a total of 16,572 telecoms subscribers ported to other networks, in search of better quality of service.

 

The porting, which was described by NCC as inward porting into the network of other telecoms service providers, is an expression of dissatisfaction about the kind of telecoms services received by the subscribers, hence they decided to port to other networks where they believed they could get better quality of service that would satisfy them.

In telecoms parlance, porting means the voluntary movement of telecoms subscriber's mobile phone number from one network to another in search of better service quality, while still retaining the original mobile phone number on the new network.

 

A breakdown of the porting figures from September 2021 to February 2022, showed that in September 2021, a total of 2,487 subscribers ported their mobile phone numbers to other networks, while in October 2021, a total of 2,258 subscribers ported and 3,697 subscribers ported in November 2021. In December 2021, a total of 1,828 subscribers ported to other networks, while in January 2022, a total of 3,151 telecoms subscribers ported and another 3,151 telecoms subscribers also ported in February 2022, bringing the total number of inward porting across networks to 16,572 in six months.

The statistics also showed that MTN received the highest number of subscribers that ported into its network, followed by Globacom, Airtel and 9mobile within the period.

 

In November 2021, a total of 1,127 subscribers ported from other networks into MTN's network, while a total of 1,657 subscribers ported from other networks into Globacom's network. In the same month, a total of 128 subscribers ported into 9mobile's network, while a total of 785 subscribers ported into Airtel's network. In December 2021, a total of 948 subscribers ported from other networks to MTN's network, while 173 subscribers ported into Globacom's network and 212 subscribers ported into 9mobile's network, while Airtel recorded a total of 495 subscribers that ported into its network within the period.

 

In January 2022, a total of 2,482 subscribers ported into MTN's network and a total of 114 subscribers ported into 9mobile's network, while a total of 555 subscribers ported into Airtel's network. Globacom did not record any inward porting within the period. In February 2022, MTN recorded a total of 2,482 incoming subscribers, while 9mobile recorded 114 incoming subscribers and Airtel recorded 555 incoming subscribers on its network. Again Globacom did not record any inward porting within the same period in February 2022.

 

Giving reasons why MTN maintained the highest number of inward porting into its network, the President, National Association of Telecoms Subscribers (NATCOMS), Chief Deolu Ogunbanjo, told THISDAY that MTN had maintained a stable network in the past, having invested heavily in infrastructure and emerging technologies, including the fifth generation technology, known as 5G technology. "Every subscriber wants to identify with the network that offers good service quality, hence they are moving to MTN's network, and this explains the reason why MTN has the largest number of subscribers numbering over 70 million, with a market share of 37.89 per cent," Ogunbanjo said.-This Day.

 

 

 

Africa: Why Millions of Africans Are Right to Resist Mobile SIM Card Registration

Mobile SIM registration linked to digital ID is causing exclusion of marginalised groups, and concerns about privacy in the absence of sufficient legal safeguards, especially in nations with a history of abuse by authorities

 

Dr Tony Roberts is a research fellow at the Institute of Development Studies, and a member of the African Digital Rights Network. Ridwan Oloyede is a legal practitioner, research fellow and consultant based in Nigeria, and a member of the African Digital Rights Network.

 

In recent weeks, millions of Nigerians have been barred from making calls after the government instructed telecommunications providers to disconnect their SIM cards because they failed to comply with the government directive to register and link them to their digital ID, known as the National Identity Number (NIN).

 

Most countries in Africa - 50 nations according to research by Privacy International - and around the world require SIM registration to identify the user. However, Nigeria has gone further by requiring SIM cards to be registered and linked with a citizen's digital ID, and therefore with the biometric data that it contains. Nigeria is not alone in doing this: some 30 countries globally require SIM registration linked to digital ID including biometric data such as fingerprints or facial images.

Such a registration policy excludes many marginalised groups such as some ethnic minorities or migrant workers without ID proof such as a birth certificates, needed to obtain a digital ID. This locks them out from obtaining a SIM - and therefore from mobile connectivity - and from government services that increasingly require mobile or internet service to access.

 

Secondly, SIM registration linked to digital ID is causing concerns about privacy rights - not only in Nigeria but also in Uganda, Zambia and Kenya - in the absence of sufficient legal safeguards to protect their data. More so, where there is a historical record of abuse by authorities.

>From our research at the African Digital Rights Network, we believe citizens are right to be concerned. Linking digital IDs and mobile SIMs, and linking these with mobile banking apps and other digital services, is the "unholy trinity" of digital surveillance. When combined with further government or corporate data, this surveillance stack enables governments to track an individual's real-time movements, transactions, email, voice and social media communications, providing a powerful infrastructure for state surveillance.

 

Digital identification is becoming a central component of repressive digital surveillance. In the six African countries we studied, we found governments making major investments in surveillance technologies, not only in digital IDs and SIM registration, but also in CCTV, encryption breaking and car licence plate and facial recognition systems. They also created laws forcing telecom companies to capture and store citizens' communications for possible state use.

In Nigeria, that fear was exacerbated in February, when it was reported that President Muhammadu Buhari had allowed security agencies to access the NIN database. The government's argument for mandatory registration of SIM cards linked to digital IDs hinges on security, and allowing governments to track criminality. However, there is no evidence that mandatory SIM registration lowers crime or makes a difference in crime detection.

 

Everyone wants governments to track the most serious criminals to prevent mass atrocities. But citizens also want governments to respect and protect everyone's right to privacy. Due to the covert nature of surveillance, and the large power imbalance between the state and the people being watched, there is a clear opportunity to abuse power: our research on surveillance law in Africa shows that most surveillance is conducted on political opponents, business rivals, journalists, civil society activists and low-level criminals. These are all in violation of privacy rights.

 

In most African countries including Nigeria, it is also in violation of the constitution, international human rights conventions, and domestic laws which protect privacy of communication. However, branches of the state regularly violate this privacy law, and they do so with impunity, with no accountability for such violations.

 

To protect citizens against abuses of their data and privacy rights, robust data protection and privacy laws are needed that provide for independent oversight bodies with the independence, resources and power to monitor surveillance practices, and hold governments and corporations accountable for any breaches.

 

Citizens have a right to legal citizenship and to access government services and entitlements. This should not be contingent on a biometric ID system that locks out the most vulnerable, and enables repressive governments to conduct mass surveillance.

 

Any views expressed in this opinion piece are those of the author and not of Thomson Reuters Foundation.- Thomson Reuters Foundation.

 

 

 

Uganda: Use of Cryptocurrency Is Not Allowed in Uganda, Says Bank of Uganda

Bank of Uganda has warned members of the public that it has not has not licensed any company or any person to offer cryptocurrency services in Uganda.

 

" This is to advise that Bank of Uganda has not licensed any institution to sell cryptocurrencies or to facilitate the trade in crypto-currencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019," a circular by Andrew Kawere, the acting director of national payments system dated April 29 says.

 

In the last few years, cryptocurrency has gained popularity in Uganda, especially in the urban centres.

Many Ugandans, especially professionals seeking a supplementary income and the unemployed have invested in cryptocurrencies in a bid to make a killing.

 

However, on several occasions, many of these have been fleeced of their monies.

 

In the April, 29, notice, BoU notes there are several media reports and adverts telling the public that they can covert cryptocurrencies into mobile money and vice versa which the Central Bank says is not true.

 

"We are also aware that such a conversion cannot happen without the participation of the Payment Service Providers or Payment System Operators," BoU says.

 

The Central Bank has consequently warned all licenced entities under the National Payment Systems Act, 2020 to desist from facilitating cryptocurrency transactions.

"Bank of Uganda shall not hesitate to invoke its powers under Section 13(1)(b)and (f) of the NPS Act 2020 for any licences that will be found in breach of the above directive."

 

Gov't position

 

The Central Bank also referred members of the public to a 2019 circular by the Ministry of Finance in which it gave government's position in regards the use of cryptocurrency in Uganda.

 

According to the 2019 circular, the Finance Ministry said despite the emergence of the practice of using, holding, and trading in cryprocurrencies in the country, the holders bear the risk since the same is not issued or regulated by any government or central bank in any part of the world.

 

"This is to inform the general public that the government of Uganda does not recognize any crypto-currency as legal tender in Uganda. The government of Uganda has also not licensed any organization in Uganda to sell crypto-currencies or to facilitate the trade in crypto-currencies and so these organizations are not regulated by the government or any of its agencies," the 2019 circular reads in part.

The Ministry of Finance said that as such, unlike other owners of financial assets who are protected by government regulation, holders of crypto-currencies in Uganda do not enjoy any consumer protection should they lose the value assigned to their holdings of crypto-currencies, or should organization facilitating the use, holding or trading of crypto-currencies fail for whatever reason to deliver the services or value they have promised.

 

Risks

 

Government in the circular warned that most cryprocurrencies such as Bitcoin and Ethereum are not backed by assets or government guarantees and therefore holders of these crypto-currencies are fully exposed to the risk of loss or diminishing value as the issuers are not obliged to exchange them for legal currency or other value.

 

"Crypto-currencies tend to change value rapidly over time. While holders of crypto-currencies may make profits when their value rises, they will be exposed to losses when their value falls. The nature of crypto-currencies make them attractive for use in criminal transactions such as money laundering, sale of prohibited goods and services, and fraudulent venture such as ponzi and pyramid schemes," the Ministry of Finance warned.

 

Cryptocurrency

 

Cryptocurrencies are digital assets that are designed to effect electronic payments without the participation of a central authority or intermediary such as a Central Bank or licensed financial institution.

 

Cryptocurrencies may be used to effect anonymous electronic payments or bought and held for speculative purposes in the expectation that their value will rise at a future time, whereupon they could be sold for a profit.

 

However, this digital payment system doesn't rely on banks to verify transactions presenting a risk to members of the public.

 

The development comes at time when 1,000 Ugandans lost over shs3 billion in online digital transactions between 2018 and 2020 to a quack cryptocurrency dealer.

 

John Mwangutsya, the director of Crypto Bridge African Limited was last month arrested by police for defrauding Ugandans under the guise of selling them cryptocurencies.

 

To this end, members of the public would pay up to shs10 million after being promised to get 6% in a week's period and these would be asked to recruit others.

 

Victims from Kampala, Masaka, Wakiso, Kabarole, Bushenyi, Ibanda and Kagadi among other parts of the country lost billions of money when the company abruptly closed and the owner went into hiding.

 

Many such schemes have happened in Uganda over the years and members of the public have lost their money

 

 

 

Namibia: Green Light for Second Desalination Plant

Arandis — The government is set to proceed with the procurement of a second multi-billion-dollar desalination plant to be constructed at the coast in partnership with NamWater.

 

Agriculture minister Calle Schlettwein on Thursday, during the commissioning of water reservoirs by RЪssing Uranium mine, indicated the next step is to proceed with the procurement of the second desalination plant.

 

Plans for the second desalination plant have been in the pipeline after the government opted not to buy the Orano desalination plant at Wlotzkasbaken in 2016 due to its cost. The plant, at the time, was offered to the government by Areva for N$3 billion on the basis that such a utility cannot be privately owned.

The desalination plant supplies close to 50% of freshwater to the region's consumption as well as several mines, including RЪssing Uranium. However, the rising demand for water has forced the government to take a bold step forward and construct a second desalination plant at the coast.

 

"The feasibility study for the construction of a new desalination plant has been completed and shows that an additional desalination plant is viable and needed," Schlettwein explained on Thursday at Arandis.

 

He said the new plant will, therefore, be constructed by placing the project into a public-private partnership through which private capital will be leveraged and private operational capacity roped in.

 

According to Schlettwein, NamWater will remain the owner of the water. He also indicated g o v e r n m e n t , i n col l abor at i on wi th NamWater, is in the final stages and will soon start with the actual public-private partnership procurement stage.

 

"This will be a modular desalination plant facility, which is scalable to further supply desalinated water to the central areas and also to support water supply to Botswana at a later stage. Government, through NamWater, has also been working continuously to rehabilitate and replace the coastal pipeline network and developing new water schemes in order to increase capacity to ensure water supply security for the coast," the minister elaborated.

 

He added they replaced the infrastructure of both groundwater resources that supply the western part of the country with water, which is from the Kuiseb River and Omdel Dam to Swakopmund. It now has a lifespan until 2037.-New Era.

 

 

 

Tanzania: How Tanzania is Bagging Billions in Natural Gas Investments

Tanzania liquefied natural gas front has received a $30 billion shot in the arm from large energy companies including Equinor and Exxon Mobil.

 

Tanzania has an estimated 57 trillion cubic feet of natural gas reserves

 

ExxonMobil, Equinor and Shell are among two top energy giants investing in Tanzania gas

 

Tanzania has secured a $30 billion investment in its LNG project

 

Tanzania's natural gas reserves have just proven to be extremely necessary for the nation's economy and energy sector at large.

On April 29, Tanzania took the extractive sector to another level by nailing an agreement with exploration companies to construct a vast liquefied natural gas (LNG) plant worth $30 billion.

 

Tanzania's LNG sector presents a necessary power generation and consumption potential, and the plant is just a success story for Tanzania.

 

According to information from The Citizen, a team of experts is currently in negotiations with five oil and gas firms - Shell, Equinor ExxonMobil, Pavillon and Ophir as the project will be executed in the Lindi region, south of Tanzania.

 

Natural gas in Tanzania has become one of the key components in transforming the Tanzania energy sector into a regional lighthouse.

 

Natural gas in Tanzania is the new gold. Under President Samia Suluhu Hassan's administration, the government has managed to unlock as much as $30 billion in foreign investment.

 

According to the chief negotiator and the acting director-general of the Petroleum Upstream Regulatory Authority (PURA), Charles Sangweni, the negotiations--which began last year, are on track.

The chief argued that the negotiations expected to attain the government's goals would be marked by May 31.

 

"We expect that by May 31 this year, we will have entered into the initial Host Government Agreements (HGAs), which will pave the way for more comprehensive negotiations", the chief noted.

 

Tanzania has an estimated 57 trillion cubic feet with a total annual production of 110 billion cubic feet from three fields: Songo Songo, Mnazi Bay, and Kiliwani North (Tanzania Invest). The reserves are in the Indian Ocean and offshore.

 

The essential project is overseen by the collaboration between Tanzania Petroleum Development Corporation (TPDC) and international oil and gas companies (IOCs).

 

The chief also noted that the actual construction would take four to five years before operations began.

The project won't only enhance LNG in Tanzania but also improve job creation as more than 5,00 jobs would be created during the construction phase and 4,000 to 6,00 jobs created during operations.

 

The journey towards success has been paved with collaboration. TPDC hired a UK law firm, Baker Botts, as the Transaction Adviser to the government negotiation team and TPDC regarding the development of a liquefied natural gas (LNG) project in the country.

 

The Tanzania Liquefied Natural Gas Project (TLNGP) has been a long-time dream for the country, which has faced several setbacks. Slated to kick start in 2014, but in 2019, setbacks intensified as the government suspended agreement talks with investors in-order to review its production sharing agreement (PSA).

 

Tanzania's Natural gas economy

 

Tanzania's race for natural gas development is strategic and on point. The nation has been paying attention to several methods of maximizing the LNG potential.

 

LNG in Tanzania is faced with other competitions in the region. Egypt is the next potential powerhouse next door and a much more experienced producer.

 

In 2012, Tanzania and three Chinese companies agreed to construct a 542 km pipeline leading from Mtwara to the nation's commercial capital, Dar es Salaam.

 

The natural gas infrastructure development in Tanzania began showing positive signs when the state-run Gas Supply Company Limited (GASCO) received its first delivery of natural gas for commissioning purposes in June 2015 (Tanzania Invest).

 

The better part of it is that the pipeline and processing plant are part of the Tanzanian government program to add 10,00MW of generation capacity by 2025, up from the 1,500MW in 2015.

 

Tanzanian Electric Supply Company Limited (TANESCO) records show about 36.4 percent of Tanzania's energy is produced from hydroelectric dams; hence the LNG in Tanzania presents a viable option for the nation's power supply capacity.

 

On the other hand, by 2021 total electricity supply stood at 1605.86 MW, according to information from International Trade Administration.

 

The race for LNG project realization in Tanzania has been long and arduous. LNG in Tanzania shook in terms of investment when Equinor decided to write down the book value of its TLNG on the company's balance sheet by $982 million--sending worries in the sector.

 

However, in April 2021, global energy companies in Tanzania, Equinor and Shell, urged the government of Tanzania to conclude negotiations on the LNG facility.

 

The energy producers pointed out that Tanzania's LNG international markets could be worth around $4.3 billion based on 2021 markets. Further, the producers noted that LNG sales, taxes, royalties, and dividends would bring significant revenues to Tanzania, ultimately boosting economic development (The Citizen).

 

Further, Tanzania has a bit of a long way to go. According to Charles Sangweni, the process of the HGA would take at least three years to complete before negotiators arrive at the final investment decision.-The Exchange.

 

 

 

Uganda: Current High Prices Call for Self-Imposed Lockdowns

The increasing prices of commodities in Uganda seem to be going on unabated with no clear indication of when they will stabilize.

 

Naturally, prices are always quick to rise but take time to go down if they ever at all. Countries without reserves of any nature, many times simply watch as prices shoot through the roof. When oil prices were rising in the United States, the government decided to release a million barrels of fuel every day to ensure constant supplies and control prices that could have risen

 

due to supply issues especially after Russia attacked Ukraine.

 

The Uganda government could maybe go back to distributing money or food to people who need it most if they can do it efficiently. However, in the meantime, it is may be appropriate for Ugandans to impose lockdowns. Here are some ideas.

MOVEMENT

 

Transport is a key cost for business and individuals. Without an effective public transport system, taxis, regardless of what their association leaders may have agreed with government, can increase rates at any time just like they do when it rains in Kampala.

 

For the "my cars", fuel is expensive and some stations don't even have. So, controlling movement is one measure of reducing your costs. Only travel if you can't avoid it. Self-imposed movement restrictions is one sure way of reducing your costs.

 

VIRTUAL MEETINGS/EVENTS

 

During the lockdowns of the last two years, many office workers were working from home. Offices re-opened when the government eased restrictions. But for many workers, transport is a painful cost. As a business owner, you may have to impose restrictions for people coming to work from offices for certain roles which don't require somebody's presence in a physical office.

Reductions in physical meetings and events is another way to save some money.

 

FOOD

 

We are in the middle (or supposed to be) of the rain season. So, you can grow some vegetables in your compound, if you have it, to reduce food costs. Vegetables grow pretty fast and don't need much effort. Growing them could also enable you make some "ka" money by selling to your neighbours.

 

About 40 per cent of the food cooked globally is never eaten. There is a lot of wastage in many homes as a good percentage of the food cooked is never eaten. You may have to impose some restrictions on the amount of food being cooked in your home so that only the food that will be eaten is prepared instead of throwing it away.

But also we don't have to eat three meals a day. Two could be sufficient!

 

Another way to cut costs.

 

SOCIAL EVENTS

 

Don't plan for social events such as birthdays in this period unless you have access to certain resources. If you are to fundraise for your wedding, many of your friends may not be able to contribute or will give very little. You can still do your event with a few people. You can still celebrate your birthday with only members of your household.

 

DON'T RACE AND PLAN YOUR JOURNEY

 

Cars, even the most fuel-efficient ones, consume as much if driven in a certain way. If you accelerate and brake suddenly, they will consume more fuel. If you drive very fast at high revs, the car will consume more fuel. It is important to plan your journey and avoid movement during heavy traffic hours. For those who have to be in office say at 8am, you may have to wake up earlier than usual and leave earlier or later.

 

Employers can adjust reporting times for some staff to ensure they aren't stuck in jam for hours. For example, instead of opening at 8am, offices can open at 9am and close at 6pm instead of 5pm. Employees can also work in shifts that are purposely planned with traffic jam in mind.

 

HYBRID/ELECTRIC VEHICLES

 

The government can get involved yet again in the transport sector by bringing in electric vehicles for public transport especially in greater Kampala; after all, the ministry of energy now generates a lot of electricity. Already government owns Kiira Motors; so, this shouldn't be so difficult.

 

Those planning to buy cars can opt for hybrid ones or even electric vehicles. The government simply needs to tax them in a certain way to encourage uptake, especially for public transport in the major cities.

 

The writer is a communication and visibility consultant.- Observer.

 

 

 

Uganda: Coffee Deal a Minefield for Coffee Stakeholders, Warns Top Exporter

Government's controversial Shs 284bn deal with Uganda Vinci Coffee Company to process and export Ugandan coffee has come under much criticism from various stakeholders over loopholes in the current regulatory framework.

 

Top coffee exporter Andrew Settimba, the owner of Qualicoff, is the latest to come out and has noted that not only does the deal deprive Ugandans of competition, it also stifles the country's tax base. He was addressing the media about the state of the sector.

 

"Uganda is a liberalized economy where all sectors are competitive. A farmer who produces coffee is happy because he has options to choose whom to sell to. He is at liberty to sell to the highest bidder. This is healthy for the economy," he said.

"From my experience as an exporter, the deal leaves me in a state of confusion because I do not know where I'm headed because as a Ugandan, I believe President Museveni was lobbying for value addition. For instance, we should not export 100 per cent green beans. We should add value by roasting some coffee whereby we leave some for domestic consumption. So, if somebody is coming in to add value, particularly for the coffee we are exporting, then I would support that because Uganda has lacked the technical knowledge in the field of value addition to our coffee."

 

On that background, Settimba believes if the deal is not cancelled, the only beneficiary from this deal will be Vinci and those behind it. "If the company was coming to add value and export it as coffee powder, then that is commendable and I support it 100 per cent. That means I would have to incur no flight charges while exporting to Starbucks but as an exporter, Vinci has no impact and the losses from this are far higher than benefits."

 

He added that Uganda's struggles in coffee have never been about purchasers because a good quality attracts the best price.

 

"We cannot have a winner-takes-it-all situation where one entity controls the exports. We recently got ahead of India to the Italian market," he says. "With the new coffee law, the middlemen are being eliminated because they've been affecting the quality of the coffee we export. Quality used to be messed up at the level of middlemen. They've now been regulated and it helps us to export good-quality coffee."-Observer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


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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