Major International Business Headlines Brief::: 10 May 2022

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

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

 


 

 


Major International Business Headlines Brief::: 10 May 2022 

 


 

 


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

 


 

 


ü  Thai army boycotts e-commerce giant Lazada over video

ü  Queen's Speech: Government to focus on 'growing the economy'

ü  US faces baby formula 'crisis' as shortage worsens

ü  Warhol's Marilyn Monroe painting sold for record-breaking $195m

ü  Electric models drive second-hand car sales higher

ü  Twitter: X marks the spot for Elon Musk's growth plans

ü  Morrisons rescues McColl's taking on all 16,000 staff

ü  P&O: Second Channel ferry cleared to resume sailing by safety inspectors

ü  Africa: Opinion - Are Cryptocurrencies the New Digital 'Blood Diamonds'
of Africa?

ü  Nigeria: Three Things That Can Go Wrong At an Illegal Oil Refinery in
Nigeria

ü  Mozambique: Ncondezi Sees Potential for Solar and Battery Project

ü  Kenya: Does the 12% Minimum Wage Have a Discernible Effect on Employment?

ü  Kenya: Mobile Subscriptions in Kenya Slows in 2021

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Thai army boycotts e-commerce giant Lazada over video

Thailand's army has boycotted online retailer Lazada over an advert that the
government is probing for allegedly insulting the country's royal family.

 

The move will see 245,000 members of the Thai military banned from using the
e-commerce giant's websites for official purposes.

 

Thailand has strict laws over defaming, insulting or threatening senior
members of the royal family.

 

Singapore-based Lazada is one of South East Asia's biggest online retailers.

 

The announcement comes after citizens loyal to the king complained about a
TikTok video promoting a Lazada sale on 5 May.

 

Royalists said the advert, which featured a woman in a wheelchair, mocked
the younger sister of King Vajiralongkorn, Princess Chulabhorn, who uses a
wheelchair as a result of Lupus, an autoimmune disease.

 

Professor HRH Princess Chulabhorn Krom Phra Srisavangavadhana attends the
20th Gala Evening of the "Paris Charter Against Cancer" for the benefit of
the "International Institute of Cancer Research in Paris" at Chateau de
Versailles on February 03, 2020 in Versailles, France.

 

 

The video was "offensive to the monarchy" and "caused disunity in Thai
society," Thai army spokeswoman Colonel Sirichan Ngathong said in a
statement.

 

"The army now has a policy to ban all army units and army-related activities
from ordering merchandise from Lazada platform or delivering things from
Lazada," she added.

 

Thailand's digital economy minister Chaiwut Thanakamanusorn told reporters
that the government was considering legal action against the influencer and
the advertising agency responsible for the video, as well as Lazada.

 

Under Thailand's lese-majeste law courts can hand down jail terms of up to
15 years for each offence of defaming, insulting or threatening King Maha
Vajiralongkorn, the queen, their heir or regent.

 

Lazada, which is the South East Asian unit of Chinese online retail group
Alibaba, did not immediately respond to a request for comment from the BBC.

 

Earlier the company apologised for the "emotional damage" caused by the
video and said it should have been more careful.

 

At least half a dozen businesses in Thailand, including some run by the
palace, have also suspended use of Lazada because of the video, according to
the Reuters news agency.-BBC

 

 

 

Queen's Speech: Government to focus on 'growing the economy'

Boris Johnson has promised to get the country "back on track" as the
government unveils its plans for the year ahead in the Queen's Speech.

 

The speech will announce 38 bills including laws aimed at easing the cost of
living and boosting economic growth.

 

Ministers will also recommit to tougher penalties for protest groups, like
Insulate Britain and Extinction Rebellion, who use disruptive tactics.

 

Labour said the Tories were not up to the challenge of growing the economy.

 

A spokesperson for the party said the Conservative government had been
responsible for low economic growth and high taxes.

 

Prince Charles will deliver the address to Parliament at 11:30 BST, after
the Queen pulled out on Monday due to what Buckingham Palace called
"episodic mobility problems".

 

It will be the first time the Queen has missed the ceremony since 1963 and
she has given special permission for the Prince of Wales and Prince William,
the Duke of Cambridge, to open Parliament on her behalf.

 

The Imperial State Crown will still be brought to Parliament - and the
Queen's throne will remain empty, with Prince Charles, Camilla, the Duchess
of Cornwall, and Prince William expected to be seated in front of the
assembled parliamentarians.

 

The speech will open with a promise to grow the economy, ease the financial
burden on households and pursue the government's levelling up programme
aimed at tackling regional disparities in the UK.

 

In a House of Commons debate following the speech, the prime minister is
expected to argue the government "cannot simply spend our way out of the
country's problems" arguing that the answer lies instead in creating high
waged, high skilled jobs.

 

There will also be seven bills which ministers argue deliver the benefits of
Brexit and a Levelling Up and Regeneration Bill is expected to change
planning rules in England after previous proposals led to a backbench
rebellion.

 

A Public Order Bill would create a new criminal offence - aimed at protest
groups - with a maximum sentence of 12 months for "interfering with key
national infrastructure" such as airports, railways and printing press.

 

Under the new bill, it would also be illegal to obstruct major transport
works such as HS2.

 

Home Secretary Priti Patel said the powers would clamp down on the
"outrageous behaviour" of "disruptive protests carried out by a
"self-indulgent minority who seem to revel in causing mayhem and misery".

 

But, the Liberal Democrats said the plans were "dangerous and draconian".

 

The party's home office spokesperson Alistair Carmichael argued that police
already had the powers to stop "guerrilla protestors" and that the new bill
was a "desperate attempt to distract from a failing Government that is
running out of steam".

 

The new police powers were originally announced last autumn, after campaign
group Insulate Britain began blocking major roads and motorways.

 

Ministers then tried to add the powers as amendments to the Police, Crime,
Sentencing and Courts Bill - but failed after Labour and other opposition
peers teamed up to oppose them.

 

Because the changes were introduced after the bill had passed all its stages
in the Commons, the government did not have another opportunity to add them
before the previous session of Parliament ended last month.

 

The government will be confident of getting the measures through Parliament
in this session as it has a large majority in the House of Commons.-BBC

 

 

 

US faces baby formula 'crisis' as shortage worsens

Major US pharmacies have restricted sales of baby formula in response to a
worsening shortage of the special milk.

 

CVS and Walgreens are among the big chains to have imposed limits in recent
weeks on how many cans customers can buy at a time.

 

The shortages intensified after Abbott - which makes top brand Similac -
shut a key factory and issued a recall in February after finding
contamination.

 

Pressure is building on the Biden administration to respond to the issue.

 

Republicans, such as Senator Tom Cotton, have called it a "national crisis"
that the White House must address.

 

Democratic Representative Rosa DeLauro also said she was concerned the Food
and Drug Administration - which regulates formula makers - had responded
"far too slowly" to the issue, and to the reports of problems at the Abbott
factory in Michigan, which remains closed.

 

Abbott - the main supplier of baby formula to many of the state government
programmes for low income women and children - said it was working with
regulators to get the plant re-opened.

 

It has been sending extra shipments from a plant in Ireland to try to
address the problem, expecting shipments from the country to double this
year, it added.

 

"We know that our recent recall caused additional stress and anxiety in an
already challenging situation of a global supply shortage," the company said
in a recent statement.

 

"We are working hard to help moms, dads and caregivers get the high-quality
nutrition they need for their babies."

 

'Increased demand and supplier challenges'

Abbott issued the recall of certain batches of powdered formula in February
after reports that four babies who had been fed from cans from the factory
became sick, including two who died.

 

The Centers for Disease Control and Protection said they were investigating
a possible link, but that testing so far had found the strain of bacteria
detected at the factory did not match that found in the sickened babies.

 

Separately, the FDA criticised Abbott for unsanitary conditions.

 

But the shortage pre-dates those issues and has been building since last
year due to supply chain and other factors, according to research firm
Datasembly, which tracks 11,000 stores across the US.

 

The situation deteriorated further last month, as publicity of the problem
grew and parents raced to stock up.

 

A nearly empty baby formula display shelf is seen at a Target store in
Orlando. Stores across the United States have struggled to stock enough baby
formula, causing some chains to limit customer purchases.

 

 

As of 24 April, the average out-of-stock rate across the country had jumped
to 40%, up from just 30% a few weeks earlier - and 11% in November,
according to Datasembly.

 

There were 26 states with out of stock rates higher than 40% - compared to
just seven states three weeks earlier, it said.

 

"Due to increased demand and various supplier challenges, infant and toddler
formulas are seeing constraint across the country," the major pharmacy chain
Walgreens said in a statement.

 

"We continue to work diligently with our supplier partners to best meet
customer demands."

 

Walgreens has limited families to buying three cans at a time - similar to
other retailers. A 12.4 ounce can of formula typically lasts for about 15
bottles - or just a few days' worth of supply.

 

Companies that produce items like baby formula - in which demand is
typically steady over time - have troubles catching up when there is
disruption, said Rudi Leuschner, director of the masters in supply chain
management programme at Rutgers Business School.

 

And as parents rush to buy as stories of empty shelves spread, that only
makes the problem worse, he warned.

 

"It's not a situation where you can just snap out of it," he said. "It was
designed to run at one speed."

 

While this year's formula shortage may expose the fragility of the supply
chain, it may not be enough to make a business case for backup inventories,
Prof Leuschner added.

 

Overall, birth rates are falling, reaching the lowest point on record in the
US in 2020. Studies have also found that consumption of infant formula has
been declining in favour of breast milk.-BBC

 

 

 

Warhol's Marilyn Monroe painting sold for record-breaking $195m

An iconic painting of Marilyn Monroe by Andy Warhol has been auctioned for
$195m (£158.17m) - making it the most expensive piece of 20th Century art
ever sold.

 

The painting, Shot Sage Blue Marilyn, was painted by Warhol in 1964 using a
famous photograph as inspiration.

 

The amount is also the highest ever paid for an American work of art.

 

The Christie's auction in New York was widely seen as a symbol of the luxury
art market's health.

 

Ahead of the auction, Christie's wrote that the painting is "one of the
rarest and most transcendent images in existence", with a selling price "in
the region" of $200m.

 

The auction ended with a sale price of $170m, which rose to $195m with taxes
and fees taken into account.

 

 

The previous record price for a piece of American artwork was $110.5m for a
skull painting created in 1982 by Warhol's sometimes friend and sometimes
competitor, Jean-Michael Basquiat.

 

The final price also smashes the previous record for a 20th Century work of
art, set in 2015 when a 1955 painting by Pablo Picasso - Les Femmes d'Alger
(Version O) - sold for $179.4m, including fees.

 

In March, George Frei, the chairman of the board of the Thomas and Doris
Amman Foundation, said in a statement that the painting of Monroe "bears
witness to her undiminished visual power in the new millennium".

 

"Marilyn the woman is gone; the terrible circumstances of her life and death
are forgotten," Mr Frei said. "All that remains is the enigmatic smile that
links her to another mysterious smile of a distinguished lady, the Mona
Lisa."

 

Bloomberg reports that the winning bidder was US art dealer Larry Gagosian,
who owns a chain of art galleries.

 

According to Christie's, all the proceeds of the sale will go to the
Switzerland-based Thomas and Doris Ammann Foundation Zurich, which works to
establish healthcare and education programmes for children around the world.

 

The auction on Monday is the first of a series of art auctions planned by
Christie's and Sotheby's over the next two weeks, widely considered to be a
test of the luxury art market's health in the post-pandemic era.

 

Philip Hoffman, the founder of New York-based advisory company the Fine Art
Group, told the New York times that there is a "huge amount of pent-up
demand" for art.

 

"Everybody was waiting for the right moment," he said. "And the right moment
has come."-BBC

 

 

 

Electric models drive second-hand car sales higher

Second-hand car sales have risen this year, boosted by a sharp increase in
the number of used electric vehicles on the market.

 

Sales of used cars in the UK rose 5.1% between January and March, compared
to the same three months last year.

 

But the market for electric cars, which only makes up a small percentage of
the overall second-hand market, more than doubled in size.

 

Electric car sales were "energising" the market, the SMMT said.

 

The most popular models overall were the Ford Fiesta, Vauxhall Corsa, and
Volkswagen Golf. But consumers appeared keen to snap up more
environmentally-friendly cars where possible, the latest figures from the
Society of Motor Manufacturers and Traders (SMMT) showed.

 

"Zero emission vehicles [are] starting to filter through in larger numbers
to consumers looking forward to driving the latest and greenest vehicles,"
Mike Hawes, SMMT chief executive, said.

 

"Although there is some way to go before we see the recent growth in new EVs
replicated in the used market, a buoyant new car market will be vital to
help drive fleet renewal which is essential to the delivery of carbon
savings," he said.

 

Five questions about electric cars answered

Sales of used battery electric vehicles (BEVs), which run purely on electric
power, grew from 6,625 to 14,586 in the first three months of the year, a
rise of 120.2% from a year earlier.

 

Plug in hybrids (PHEVs) and hybrids (HEVs) which together make up a larger
share of the used car market also changed hands in greater numbers,
totalling just under 50,000 vehicles.

 

Smaller models continued to be more popular for buyers in the second-hand
market. Larger multi-purpose vehicles (MPVs) , declined by 7.5%, followed by
luxury saloons which were down 3.4%.

 

Black was the most popular colour choice accounting for one in every five
cars sold.

 

'Prices soaring'

A shortage of semiconductors and other electronic components was holding
back supply in the new car market, said David Leggett, editor of specialist
news site Just Auto.

 

He said it was therefore unsurprising that there had been a boom in the
second-hand market. "The prices of used cars soared over last 12 months," he
said.

 

The ramp up in sales of second-hand electric vehicles in particular was set
to continue over the next few years as more new stock fed through to the
used car market, Mr Leggett added.

 

"We are at a fairly early stage still in terms of the impact of BEVs on the
new car market and seeping through to the stock of cars out there," he said.

 

As challenges within the electric car market over charging and consumer
hesitation over adapting to the technology recede, he predicted a
"transformation" of first the new and then used car markets.

 

Used car prices have risen, generally, by 30-40% in the last two years,
according to KPMG.

 

Richard Peberdy, UK Head of Automotive, KPMG, said: "Used car prices have
been soaring like never seen before."

 

"The increasing cost of living is cooling the used car market slightly, but
demand still remains high and is likely to continue to until the issues
impacting new car production are resolved and more supply enters the used
car market. That is unlikely to be this year," he said.-BBC

 

 

 

Twitter: X marks the spot for Elon Musk's growth plans

Elon Musk aims to increase Twitter's revenue fivefold to $26.4bn (£21.4bn)
by 2028, a presentation to prospective Twitter investors seen by The New
York Times (NYT) suggests.

 

Last year, Twitter's revenue was $5bn.

 

Plans to launch a new service called X are also revealed in the report, with
an aim of nine million subscribers in its first year and 104 million by
2028.

 

Tech industry analyst Kyle Rees says the goals are "very tentative given the
state of global and industry affairs".

 

The NYT says the revelations are in a "pitch deck" presented to investors
"in recent days".

 

It suggests that Mr Musk hopes the number of Twitter users will rise from
more than 200 million last year to over 900 million in 2028.

 

 

The document also reveals that Twitter's number of employees will grow by
3,600 by 2025. But the NYT reports that the staff headcount is likely to
fluctuate in the short term.

 

Mr Musk recently tweeted that employees should anticipate work ethic
expectations that are "extreme, but much less than I demand of myself".

 

In 2020, advertising generated about 90% of Twitter's revenue, the NYT says.

 

Subscription services will apparently pay a key part in growing Twitter's
revenue, which it is hoped will generate nearly $10bn by 2028.

 

Part of the source of that income, the document suggests, will be an
enigmatic new product called X, with its details still to be announced.

 

There is also a goal to increase the number of Twitter Blue subscribers to
69 million by 2025, and to 159 million by 2028.

 

Twitter Blue already exists, and gives users in countries where it is
available features such as an undo tweet button, and ad-free articles for a
subscription of $3 a month.

 

Twitter declined to comment on the NYT report.

 

Mr Rees from Gartner, a company which specialises in marketing research,
told the BBC that "most of these goals seem contingent on growing platform
users and subscribers".

 

But he added: "Here's an entrepreneur who has a proven track record of
entering industries that favour incumbents, and successfully disrupting the
status quo.

 

"Whether this is payments, satellites, spaceships, automotive, and now
social media, [Mr] Musk has a knack for pushing entire categories of
products and services forward, and I suspect that that's part of what we're
going to see here.

 

"It's all very exciting. But, whether this translates to success, we'll have
to see," he added.-BBC

 

 

 

 

Morrisons rescues McColl's taking on all 16,000 staff

Supermarket group Morrisons has won a battle to rescue McColl's, the
convenience store and newsagent chain, and taken on all 16,000 staff
members.

 

Morrisons beat a rival offer from EG Group, the petrol station empire, owned
by the billionaire Issa brothers.

 

Morrisons will pay off McColl's £170m debts and take on its 1,160 shops and
pension schemes, with 2,000 members.

 

The supermarket's boss said the deal offered stability and continuity for
the business, its staff and pensioners.

 

McColl's was put into administration by PwC on Monday and was immediately
sold to Morrisons.

 

Rob Lewis, joint administrator and partner at PwC, said the deal provided
"much needed certainty to McColl's 16,000 staff after a period of
understandable concern".

 

The threat of McColl's going into administration had raised fears that if a
buyer was not found there could be UK-wide store closures and job losses.

 

Morrisons' first offer was knocked back and the Issa brothers looked close
to clinching the deal.

 

The companies battled it out over the weekend. Morrisons matched EG Group's
offer to pay off McColl's debts in full and straight away and take on all
its stores and staff.

 

Morrisons' chief executive, David Potts, said: "Although we are disappointed
that the business was put into administration, we believe this is a good
outcome for McColl's and all its stakeholders.

 

"This transaction offers stability and continuity for the McColl's business
and, in particular, a better outcome for its colleagues and pensioners."

 

Bidding war

McColl's ran into difficulties as it attempted to update the range of food
it sold and came up against Covid-related supply chain problems.

 

When it emerged last week that the chain was close to collapse a bidding war
began.

 

Morrisons already had a partnership with McColl's as it supplies its
convenience stores with stock.

 

It has also formed a tie-up to convert hundreds of McColl's shops to
Morrisons Daily convenience stores. There are already more than 200
operating and these have been performing well.

 

Meanwhile, the Issa brothers co-own supermarket chain Asda, while their EG
Group owns thousands of petrol stations and convenience shops in the UK,
Ireland, Europe, Australia and the US.

 

Both Morrisons and EG Group filed final offers for the business on Sunday.

 

This is undoubtedly a good outcome for McColl's and its staff.

 

Although unsecured small creditors will likely lose out, it's hard to recall
a deal of this kind where so many stakeholders will get everything they're
owed.

 

Morrisons almost let the deal slip away but thanks to a delay in
administrators being appointed it was able to come back with a final and
better offer.

 

Its existing relationship with McColl's will have helped it pip its rival to
the post.

 

It now has the opportunity to roll out its own-brand convenience stores
which have been doing well.

 

But it also has some big challenges ahead. Sorting out McColl's and its
mixed bag of stores will take time and money.

 

Morrisons has to figure out what to do with quite a lot of underperforming
stores and old-fashioned newsagents where it's harder these days to make
money selling cigarettes and booze.

 

In the longer term, it will have to decide how many shops it ultimately
wants to keep.

 

It had offered on Thursday only to take on "the vast majority" of stores and
staff. It's had to fight tooth and nail to win, matching EG's pledges.

 

But right now, at least, McColl's staff must be breathing a big sigh of
relief.

 

line

As McColl's future hung in the balance questions arose around what would
happen to its two defined benefit pension schemes. In the end both bidders
agreed to support the pension funds and Morrisons was successful.

 

A spokesperson for McColl's Pension Schemes said: "The trustees will
continue to engage with all stakeholders to ensure that members' benefits
are protected following the completion of the transaction."

 

Adam Leyland, editor-in-chief of The Grocer magazine, said Morrisons wanted
McColl's for two reasons.

 

"It was set to lose an estimated £130m if McColl's had gone into
administration," he said. "And it would also have put a potentially terminal
hole in its wholesale arm, just as it was starting to make a profit."

 

He said he did not know if Morrisons would keep all of McColl's stores but
that it had committed to take them on for now.

 

"Crucially what this allows is for the Morrisons Daily rollout to continue,"
he said. "Those stores are less than a quarter of the total McColl's estate
but adding five a week it will be a sizeable chain in the not too distant
future and those stores are definitely profitable. The challenge will be
disposing of the rump of rubbish ones. But Morrisons is in a better position
to do that than McColl's was."

 

The Morrisons takeover was the most reassuring outcome for employees,
according to Catherine Shuttleworth founder of Savvy Marketing.

 

"The Issa brothers will be disappointed not to get it but Morrisons can't
let this slip through their fingers," she said.

 

"Winning the bid gives Morrisons flexibility with the new Morrisons Daily
idea and ownership will give them a lot more freedom to move the business
forward," she added.

 

"Like any retail business there's a strong will to keep as many stores as
possible but it's a tough time for retailers and ultimately the number of
stores will likely have to come under review at some point."

 

'Let down'

A former senior head of department at McColl's told the BBC some staff felt
let down that the rescue had come so late in the day.

 

"This isn't just a deal, it's people's lives," he said. "McColl's is so
important to so many local communities."

 

Speaking to the BBC under the condition of anonymity he said he was
surprised to see Morrisons take over.

 

"Morrisons have tried in the local arena before and it hasn't been
successful so I'm apprehensive to how this will actually work out," he said.

 

"It's a deal with very low margins, high labour costs and high rent and
business rates," he added.

 

"Morrisons are going to have to work very hard and fast to turn this
around."-BBC

 

 

 

P&O: Second Channel ferry cleared to resume sailing by safety inspectors

A second P&O ferry has passed its safety inspection, the Maritime and
Coastguard Agency (MCA) has said.

 

The Pride of Kent can now join the Spirit of Britain, which the MCA cleared
to sail on 23 April, after it was detained for two weeks.

 

Safety fears were raised after P&O replaced nearly 800 seafarers with
cheaper agency staff in March.

 

P&O tweeted on Monday evening that it would be running a one ship schedule
until 12 May.

 

A spokesperson for the MCA said: "The Pride of Kent has been released from
detention and can commence operations when P&O Ferries are ready."

 

They added no further inspections of P&O ferries are planned at the moment,
but will be carried out at the request of the company.

 

P&O operates four ferries on the Dover to Calais route, with the remaining
two vessels the Pride of Canterbury and the Spirit of France still out of
service.

 

Last month it's vessel the European Causeway, which operates on the Irish
sea route, spent hours adrift after losing power, having been cleared to
sail by the MCA.

 

The company said it was down to a "temporary mechanical issue".

 

Transport Secretary Grant Shapps has called for P&O to repay the £11m in
government money it had received to furlough staff during the coronavirus
pandemic.

 

The RMT union has organised several demonstrations up and down the country,
in protest at the sacking of the seafarers by P&O.-BBC

 

 

Africa: Opinion - Are Cryptocurrencies the New Digital 'Blood Diamonds' of
Africa?

Across the world's troubled spots, resource wars and economic crises are
being fuelled by a new kind of high-tech "blood diamond" - cryptocurrency.

 

The Central African Republic (CAR) has become the latest country to adopt
bitcoin as a national currency. The move follows last year's adoption by El
Salvador. But CAR's sudden embrace of crypto is confusing. After all, El
Salvador's bitcoin adoption isn't going well. Besides warnings by the
International Monetary Fund and fears of default, a recent survey found 86%
of Salvadoran businesses have never carried out a bitcoin transaction.

 

CAR, the world's second-poorest country, is nowhere near ready for crypto
payments. Yet CAR's authorities threaten significant fines and other
penalties on vendors who refuse to accept bitcoin for payments.

 

Some analysts say the adoption of crypto in CAR is meant to tick off the IMF
and foreign-owned money transmitters. But unlike El Salvador, CAR doesn't
have a large pool of diaspora working overseas getting stung with remittance
fees when sending money home. So, is CAR trying to attract crypto-rich
investors? Unlikely, as land-locked CAR lacks the beautiful beaches and
other trappings of crypto hotspots elsewhere. CAR is also among the world's
worst countries for internet access. What about opportunities for bitcoin
mining with cheap renewables? Only 14% of CAR's population has some access
to electricity. Over 90% rely on foraged wood and charcoal for cooking and
heating.

While Salvadoran President Nayib Bukele makes his crypto proclamations with
fanfare and fireworks, CAR President Faustin-Archange Touadera's
announcement last month featured a scanned copy of a press release, teeming
with typos and posted on his Facebook page. Touadera claimed it was
necessary to "improve the conditions of Central African citizens" and make
CAR "one of the world's boldest and most visionary countries." CAR's former
Prime Minister said the country's crypto law was a rushed "proclamation".

CAR also has major human rights issues. Human Rights Watch and United
Nations experts recently said that since 2019, Russian fighters have been
torturing, raping, and executing civilians across CAR with complete
impunity. CAR's government relies on foreign military assistance to keep
control, including through the Wagner Group, a private military security
contractor with apparent links to the Russian government, and with a
presence in other African countries, as well.

 

Bitcoin has enabled Russia to fund covert operations in Africa despite
sanctions. Bitcoin enables clandestine funding for activists to expand
Russia's influence in sub-Saharan Africa. Cryptocurrencies are also putting
the brakes on decolonisation in Africa's last colony, the disputed territory
of Western Sahara, where Morocco recently gave the greenlight to Soluna, a
U.S. bitcoin company, to develop a massive 900-Megawatt mining operation in
the Saharawi region of Dakhla. According to Western Sahara Resource Watch,
by setting up shop in the region, Bitcoiners are "strengthening Morocco's
belief that it can violate international law and human rights".

 

Elsewhere on the continent, despite reported crimes against humanity by
paramilitaries in Ethiopia, developers of the Cardano cryptocurrency are
working with Ethiopian authorities to build digital-surveillance systems,
including a digital ID and records system. Cardano hopes to roll out an
Ethiopia-wide crypto-payment network, before connecting the entire African
continent.

 

Much of Africa is rich in precious resources. In colonial times, to profit
from these resources, European powers and their private companies
capitalised on conflict. The term "blood diamond" became well-known, defined
as any diamond sold to fund military action in diamond-rich areas of Africa.
Our research shows that across the world's troubled spots, resource wars and
economic crises are the ideal conditions for globally trading a new kind of
high-tech blood diamond - cryptocurrency.

 

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

 

Pete Howson is a senior lecturer in the department of geography and
environmental sciences at Northumbria University, Newcastle.

 

Thomson Reuters Foundation.

 

 

Nigeria: Three Things That Can Go Wrong At an Illegal Oil Refinery in
Nigeria

Years of government neglect and unemployment in Nigeria's Niger Delta region
have given rise to a widespread industry of illegally refining stolen oil.

 

It is estimated that about 10% of Nigeria's daily oil production is lost to
illegal activities. That's 200,000 barrels, worth about US$21 million per
day at US$107 per barrel. The Nigerian Natural Resources Charter estimated
in 2019 that crude oil theft represented an economic loss of at least N995.2
billion or US$2.8 billion annually.

 

Communities in the Niger Delta have long agitated against the degradation of
their environment caused by multinational oil companies. After years of
insurgency, the government introduced amnesty programmes for militants who
chose to surrender. But those who were not rehabilitated, and other
unemployed youths, resorted to illegal refinery activities to make a living.

 

The illegal refinery process involves heating crude oil in metal containers
to make petroleum products. It ignores all environmental, health and safety
procedures and can have catastrophic consequences.

 

On 24 April 2022, for example, an explosion at one of these refineries
killed about 100 people. On 24 October 2021, another explosion killed 25.

 

Illegal oil refineries also discharge residue from the boiling crude into
rivers, polluting wildlife habitats and disrupting the water cycle.

 

How illegal crude oil refineries operate in Nigeria

 

Petroleum refineries transform crude oil into petroleum products that can be
used for economic activities such as transport, heating and power
generation. They are complex and expensive to operate legally because they
use a lot of energy and must comply with regulations. Legal refineries are
located in industrial locations that have been carefully designed to ensure
the safety of workers and the environment.

 

Illegal petroleum refineries are mainly located in the forest or in
villages. Illegal operators break crude oil pipelines and load the stolen
oil into tankers or channel it to tanks where it is boiled.

 

A burner under the cauldron heats the crude oil and causes it to evaporate
into vapour. The vapour is then cooled to condense it into petroleum
products like kerosene and diesel. Finally, the liquid products are
funnelled into containers for transport and sale.

 

Diesel, the major product of these illegal refineries, is sold to traders
and filling station owners or to middlemen with big ocean-going vessels.

 

The distillation process in illegal refineries is very dangerous because
hydrocarbon is highly inflammable.

 

Three things that can go wrong

 

Uncontrolled heat supply at distillation units In an illegal refinery, the
boiler or distillation unit is constantly supplied with heat from the burner
without temperature and pressure control. The steady heat supply can
overload the unit with heat. That may cause thermal stress: the deformation
of material by a change in temperature. The thermally stressed boiler under
high pressure could explode, releasing its highly inflammable contents into
the surrounding environment. A fire could spread very quickly.

 

Poorly designed condensation units The illegal refineries are designed and
made by artisans with little or no consideration of basic engineering design
principles. A condensation unit should be designed to operate at a
predefined temperature. The condensation unit of an illegal refinery is
normally a water bath with immersed tubes which are encased with cement
blocks.

 

The water cooling bath might not cool down the vapour quickly enough to form
the liquid products as desired. This would cause temperature and pressure
buildup. A pressure buildup beyond what the cooling tube materials can
handle can result in the tubes exploding. The explosion releases highly
inflammable petroleum vapour products into the environment and can cause a
fire.

 

Exposed refined products at collection points The refined products from the
condensation unit are meant to be collected in liquid form. But poorly
designed condensation units don't guarantee the total condensation of the
vapour products to liquid. Vapour can therefore escape into the immediate
environment. Also, the collected liquid products are volatile and can
evaporate into the environment if they are not properly contained.

 

The combination of the escaped uncondensed products and vaporised condensed
liquid products could saturate the immediate environment. The activities of
workers - such as smoking and sparks from metal moving parts - could then
ignite the products.

 

Artisanal refinery is not designed to avoid fire hazards and it lacks safety
procedures to handle leakages along the process line.

 

Consequences

 

The activities of illegal oil refineries also contribute to air pollution.
The burners that heat the distillation units emit large quantities of soot
(carbon black). This has consequences for health. And carbon black, though
not a greenhouse gas, absorbs heat from the sun when released into the air,
thereby warming the environment.

 

The process of siphoning the crude oil from pipeline also releases natural
gas (mainly methane) into the environment. Methane gas is more potent than
carbon dioxide in terms of global warming and climate change, which has
severe implications for countries in Africa, including Nigeria.

 

The untreated waste released from these illegal refineries harms wildlife
habitats and the water cycle, which disrupts the growth of trees which are
needed to store carbon.

 

Nigeria's dependence on crude oil makes it difficult for the country to
decarbonise. But the government could do more to foster other economic
ventures and improve the efficiency of artisanal refineries.

 

Nnaemeka Vincent Emodi, Research Fellow, The University of Queensland;
Chukwumerije Okereke, Professor of Environment and Development, University
of Reading, and Ogheneruona E. Diemuodeke, Senior Lecturer, University of
Port Harcourt 

 

 

 

Mozambique: Ncondezi Sees Potential for Solar and Battery Project

London — The London-based company Ncondezi Energy announced on Monday that
an internal review of its integrated 300 megawatt power project in the
western Mozambican province of Tete has found that there is potential for a
grid scale solar power project along with battery storage.

 

In a statement through the London Stock Exchange, the company reveals that
preliminary studies have confirmed that the site has favourable solar
conditions and access to Mozambique's electricity grid.

 

Ncondezi argues that a solar project is feasible without compromising the
delivery of the company's main project, which is a 300 megawatt power
station using coal from its open cast mine.

Ncondezi's Chief Executive Officer, Hanno Pengilly, explains that the
company is continuing to work with its strategic partner, China Machinery
Engineering Corporation, on financing the main project. However, he adds
that "preliminary study work has confirmed that the project site area has
strong potential for a solar project plus battery storage with good solar
conditions and multiple access points to the Mozambique grid. Given the
large project concession area, the solar project would be deliverable
without compromising the main project".

 

According to the company, the main project will "provide 300 megawatts of
reliable and available power, helping to close the infrastructure gap of the
region and serving as a catalyst for economic development". It adds that the
electricity will provide baseload energy to mitigate drought and other
phenomena that cause renewable energy output to be intermittent.

 

Ncondezi highlights the company's role in meeting the Mozambican
government's energy strategy of providing universal electricity access by
2030. It stresses that the coal fired power plant "will be designed to be
equipped with state-of-the-art emissions control technologies that will
reduce local air pollutants, minimising the plant's impact on the
environment and ensuring its compliance with the most stringent emission
standards".

 

 

 

Kenya: Does the 12% Minimum Wage Have a Discernible Effect on Employment?

Nairobi — Despite company protests, President Uhuru Kenyatta authorized a 12
percent increase in minimum monthly salaries on 1st May 2022.

 

The directive mostly helps low-wage workers including, but not limited to
cashiers, drivers, guards, cleaners, salespeople, and property managers, a
move that has sparked intense reaction from Kenyan employers.

 

Federation of Kenya Employers Executive Director Jacqueline Mugo stated
that; "Employment is a big challenge for this country and we need to
consistently strike a balance between raising pay and hiring more workers.
The directive will push up fixed expenses for businesses and lengthen the
freeze on new employment which started at the height of COVID 19 shocks in
2020. Labour is a fixed cost and so this wage rise is a monthly hit on the
payroll; but we will do what we can to see what adjustments to make to
comply with the Head of State's directive."

With this in mind, some businesses may find it alluring to adjust by
declaring redundancy to help reduce employee costs; others may reduce
employment benefits like medical schemes and others may boost prices in
response to the minimum wage.

 

Some employers' earnings in terms of profitability may decline, yet all
these adjustments may prove to be quite unnecessary in the long run.

 

According to leading economists, in a completely competitive market,
increases in the minimum wage have no noticeable effect on employment;
because of the relatively small percentage of production costs accounted for
by minimum wage labor.

 

Employers may find it more beneficial to respond to the minimum wage rise
with measures to improve their operational efficiency, such as tighter human
resource practices with regard to employee management, greater performance
standards with emphasis on performance-based remuneration, and enhanced
customer services since reducing employment and employment benefits might
damage employee morale and inspire retaliation.

 

Employers can also take advantage of the raise by presenting to their
employees how the minimum-wage increase is a challenge to the business and
using it to engage staff to improve productivity keeping in mind that
employees are aware that higher compensation increases the risk of losing
their jobs; motivating them to put in more effort in order to avoid being
dismissed.

 

Employers may actually benefit from the increased minimum wage as it is
likely to stimulate demand for essential goods and services, as minimum wage
workers would instantly spend their extra earnings on previously expensive
essential goods or services.

 

Their expenditure would potentially compensate businesses for the pay
increases; balancing the increase in employer expenses.

 

The raised minimum wage would therefore be unambiguously beneficial to the
employers, and to the economy at large.

 

And as for unemployment? The created demand for products and services shall
prompt companies across the economy to hire more workers to meet the
increased demand.

 

The writer is a Human Resource Legal Advisor at Ronalds LLP.- Capital FM.

 

 

Kenya: Mobile Subscriptions in Kenya Slows in 2021

Nairobi — Mobile subscriptions in Kenya increased by 6.0 percent to 65.1
million in 2021, slower growth than the 12.6 percent growth registered in
2020.

 

According to the 2022 Economics survey released by the Kenya National Bureau
of Statistics, mobile money subscribers rose by 8.5 percent to 35.2 million
over the same period.

 

In addition, over the same period, mobile numbers ported decreased by 24.8
percent from 1,437 to 1,081 partly attributed to hesitation by subscribers
to move from one operator to another.

 

Mobile Number Portability (MNP) is a service that enables users to change or
'port' mobile operators while retaining their numbers.

 

Over the same period, the value of mobile commerce transactions grew by 63.2
percent from 9,392 trillion to Sh 15.3 trillion in the same period.

 

The number of total transactions recorded a 16 percent jump to 2,165
million.

 

The number of money deposited through agents rose by 44 percent from 3,231
billion to 4, 666 billion while the transfer from subscriber to subscriber
rose by 30 percent from 3, 234 billion to 4,191 billion.

 

Mobile money transfer agents rose from 264,390 to 292,301 and the mobile
money transfer service subscribers rose from 32 million to 35
million.-Capital FM.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

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

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 233707 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 36376 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29353 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65562 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220510/dc326a42/attachment-0001.obj>