Major International Business Headlines Brief::: 17 May 2022

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Major International Business Headlines Brief::: 17 May 2022 

 


 

 


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

 


 

 


ü  Sri Lanka down to last day of petrol, new prime minister says

ü  US warns over risk of hiring North Korea IT workers

ü  Northern Ireland: Could the EU and UK face a trade war?

ü  McDonald's to leave Russia for good after 30 years

ü  Twitter boss hits back on Musk doubts over fake accounts

ü  Ukraine war: Russia nationalises Renault's Moscow plant

ü  Goldman Sachs to offer senior staff unlimited holiday

ü  Who is to blame for soaring prices?

ü  Cost of living: Inflation hits NI consumer confidence

ü  Tesco gives £6.6m to pig producers following plea

ü  Diesel prices reach record of over £1.80 a litre

ü  Africa: New Tool to Measure Ease of Inter-Africa Trade Launched

ü  Nigeria: How IPOB's Sit-At-Home Order Is Destroying Businesses in Nigeria's South-East

ü  Nigeria: Petrol Scarcity - Govt, Marketers Trade Blames Over Transport Claims

ü  Tanzania Determines to Curb Cereal Post-Harvest Loss

ü  Nigeria Needs Friendly Tax Laws in a Digital Economy

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Sri Lanka down to last day of petrol, new prime minister says

Sri Lanka's new prime minister says the country is down to its last day of petrol as it faces its worst economic crisis in more than 70 years.

 

In a televised address, Ranil Wickremesinghe said the nation urgently needs $75m (£60.8m) of foreign currency in the next few days to pay for essential imports.

 

He said the central bank will have to print money to pay government wages.

 

Mr Wickremesinghe also said state-owned Sri Lankan Airlines may be privatised.

 

The island nation's economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts. A chronic shortage of foreign currency and soaring inflation had led to a severe shortage of medicines, fuel and other essentials.

 

In the capital Colombo, auto rickshaws, the most popular means of transport in the city, and other vehicles have been queuing at petrol stations.

 

"At the moment, we only have petrol stocks for a single day. The next couple of months will be the most difficult ones of our lives," said Mr Wickremesinghe, who was appointed prime minister on Thursday.

 

However, shipments of petrol and diesel using a credit line with India could provide fuel supplies in the next few days, he added.

 

Mr Wickremesinghe said the country's central bank would have to print money to help meet the government's wage bill and other commitments.

 

"Against my own wishes, I am compelled to permit printing money in order to pay state-sector employees and to pay for essential goods and services. However, we must remember that printing money leads to the depreciation of the rupee," he said.

 

He also proposed selling off Sri Lankan Airlines as part of efforts to stabilise the nation's finances. The carrier lost 45 billion Sri Lankan rupees ($129.5m; £105m) in the year ending March 2021.

 

In recent weeks, there have been large, sometimes violent, protests against President Gotabaya Rajapaksa and his family.

 

Last week, the president's elder brother Mahinda resigned as prime minister after government supporters clashed with protesters. Nine people died and more than 300 were wounded in the violence.

 

On Friday, Mr Wickremesinghe told the BBC, that the economic crisis is "going to get worse before it gets better".

 

In his first interview since taking office, he also pledged to ensure families would get three meals a day.

 

Appealing to the world for more financial help, he said "there won't be a hunger crisis, we will find food".-BBC

 

 

 

US warns over risk of hiring North Korea IT workers

The US has warned that IT workers from North Korea are trying to get remote working jobs by hiding their true identities for the purpose of stealing money for Pyongyang.

 

Many of them pretend to be from other parts of Asia, according to three US government agencies.

 

They are allegedly helping to fund North Korea's weapons programmes, in violation of international sanctions.

 

The country has conducted several missile tests in recent months.

 

In March, North Korea tested a banned intercontinental ballistic missile for the first time since 2017.

 

"The DPRK [North Korea] dispatches thousands of highly skilled IT workers around the world to generate revenue that contributes to its weapons of mass destruction and ballistic missile programmes, in violation of US and UN sanctions," the US State Department, US Treasury Department and the Federal Bureau of Investigation said in a joint statement on Monday.

 

The statement said the workers are located in North Korea and other countries, primarily China and Russia. A smaller number are said to be based in Africa and South East Asia.

 

"These IT workers take advantage of existing demands for specific IT skills, such as software and mobile application development, to obtain freelance employment contracts from clients around the world, including in North America, Europe, and East Asia," it said.

 

"Although DPRK IT workers normally engage in IT work distinct from malicious cyber activity, they have used the privileged access gained as contractors to enable the DPRK's malicious cyber intrusions," the statement added.

 

It also said companies that hire North Korean workers could face legal penalties for violating sanctions.

 

Last month, the US linked North Korea-backed hackers to a massive cryptocurrency heist worth $615m (£498.4m) from players of the popular online game Axie Infinity.

 

Also in April, a former US researcher at a cryptocurrency group was sentenced to more than five years in prison for conspiring to help North Korea evade US sanctions.

 

Virgil Griffith formerly worked for the Ethereum Foundation, a non-profit organisation focused on the technology behind the cryptocurrency ether.

 

He had pleaded guilty to conspiring to violate the US International Emergency Economic Powers Act by travelling to North Korea's capital Pyongyang to give a presentation on blockchain technology.

 

The Ethereum Foundation said at the time of Griffith's arrest that it had not approved or supported his travel to North Korea.-BBC

 

 

Northern Ireland: Could the EU and UK face a trade war?

An escalating dispute over the post-Brexit trading arrangements for Northern Ireland risks seeing the government scrapping parts of that deal. In that event, could it trigger a trade war that could see households and businesses paying an unwelcome price?

 

European Union officials have repeatedly warned of "serious" consequences if the UK were to override part of the Northern Ireland Protocol.

 

Last November, Ireland's minister for foreign affairs, Simon Coveney, warned that the entire Trade and Co-operation Agreement (TCA) - which exists to ensure tariff-free and quota-free trade between the EU and UK - depends on the UK observing the Protocol.

 

More recently, however, as the war in Ukraine has both heightened cost-of-living issues and co-operation between the EU and UK, Mr Coveney has struck a more conciliatory tone, saying the EU first wants to seek solutions. But he warned that any unilateral action by the UK could spell "a very difficult summer".

 

And ultimately, it means there is a risk that part, or all of the TCA could be scrapped by the EU unilaterally - albeit not quickly. That would allow the EU to impose tariffs on British-made goods.

 

In most cases, such action requires notice of up to a year, and an intervening arbitration process.

 

What is the Northern Ireland Protocol?

The EU has scope to pull some other levers in the meantime, perhaps restricting UK fishing vessels entering EU waters for example.

 

Brussels has already been investigating interim measures, after claiming that British action to delay border formalities last year breached the Protocol. It later paused that process after agreeing to negotiations - but it could decide to resume.

 

And the fallout of such action could be painful.

 

Economists warn that the EU could, as has happened in trade disputes with the US, target politically-sensitive products for tariffs to maximise the impact - salmon from Scotland, for example.

 

A total of £372m worth of Scottish salmon went to the EU last year, supporting thousands of jobs.

 

Alternatively, the EU could focus action on industries located in the so-called Red Wall seats, in parts of north-east England and the Midlands that shifted from Labour to the Conservatives at the last election. Some of these areas are disproportionately reliant on custom from the bloc.

 

Belfast port

If all UK-made goods were to face the same tariffs as those sourced from other countries outside the EU, then agricultural goods could face a typical levy of 10% - with dairy items attracting as much as 35% - when sold to the bloc.

 

But any tariffs imposed on British goods would spell higher bills for European customers - something they wouldn't thank Brussels for.

 

That, as well as the requirement that any response has to be "proportionate", has most economists thinking that any such action would be selective.

 

The EU could ramp up red tape to make life harder for companies trying to sell into its market. As it is, three-quarters of exporters in the North East say that post-Brexit formalities make it more challenging to sell to the EU, according to a Chamber of Commerce survey, with export levels down by more than a tenth compared with 2019.

 

The UK might theoretically react to any retaliation by imposing tariffs of its own. Such a levy would make it even harder for European producers to compete in the UK; they've already seen their sales here slip since Brexit, and exports from the likes of Germany are already poised to go into reverse.

 

But that's an option that Britain has so far played down - after all, it could in theory see extra charges on European-made cars and higher prices for staples, at a point when UK households are already buckling under the strain of higher bills.

 

As it is, economists at the London School of Economics say that changes in the run-up to Brexit and afterwards saw the price of food imported from the EU rise by 6% across 2020 and 2021.

 

An all-out trade war could inflict a mutually crippling blow when the economies of the EU and UK are already highly vulnerable. The Brexit Opportunities Minister, Jacob Rees-Mogg, has described such an eventuality as an "act of self harm", perhaps gambling that the EU won't take that risk

 

Alternatively, Brussels could decide that starting the process of retaliation is required for leverage and to push the UK to concede in settling the dispute over Northern Ireland.

 

Almost five years after the referendum, the wrangling over how Brexit should work is far from over.-BBC

 

 

 

 

McDonald's to leave Russia for good after 30 years

McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its restaurants.

 

The move comes after it temporarily closed its 850 outlets in March.

 

The fast food giant said it made the decision because of the "humanitarian crisis" and "unpredictable operating environment" caused by the Ukraine war.

 

The opening of McDonald's first restaurant in Moscow in 1990 came to symbolise a thaw in Cold War tensions.

 

A year later, the Soviet Union collapsed and Russia opened up its economy to companies from the West. More than three decades later, however, it is one of a growing number of corporations pulling out.

 

"This is a complicated issue that's without precedent and with profound consequences," said McDonald's chief executive Chris Kempczinski in a message to staff and suppliers.

 

"Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens, is surely the right thing to do," he added.

 

"But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago."

 

McDonald's said it would sell all its sites to a local buyer and would begin the process of "de-arching" the restaurants which involves removing its name, branding and menu. It will retain its trademarks in Russia.

 

The chain said its priorities included seeking to ensure its 62,000 employees in Russia continued to be paid until any sale was completed and that they had "future employment with any potential buyer".

 

McDonald's said it would write off a charge of up to $1.4bn (£1.1bn) to cover the exit from its investment.

 

It really is the end of an era. I was in the queue when the first Russian McDonald's opened on Moscow's Pushkin Square in January 1990 - way back in the USSR.

 

There were so many people outside the restaurant, it took three hours to get inside. But what a sense of excitement.

 

Those American burgers, fries and pies were a symbol of Moscow embracing the West. Hot food to help end a Cold War.

 

These are very different times. Russia and the West have lost their appetite for one another.

 

Russia's attack on Ukraine has sparked international condemnation and sanctions, turning Moscow into a pariah.

 

Meanwhile, the Kremlin - as it always does - points the finger back, accusing the West of plotting Russia's downfall.

 

Back in March lots of international companies announced they were pausing operations in Russia, hoping the situation would resolve itself and they could then reopen.

 

But McDonald's decision to sell up and pull out shows the fast food giant recognises things will not return to normal and that what the Kremlin calls its "special military operation" in Ukraine has changed things long term.

 

Big Macs are only the beginning. I predict we're going to see a lot more global brands leaving Russia.

 

The move comes after Renault announced it was selling its business in the country. The French firm said its 68% stake in carmaker Avtovaz would be sold to a Russian science institute, while its shares in Renault Russia will go to the city of Moscow.

 

Moscow said Renault's Russian assets had now become state property - marking the first nationalisation of a major foreign business since the invasion of Ukraine.

 

Last year, Russia and Ukraine accounted for about 9% of McDonald's global sales.

 

 

The chain's 108 restaurants in Ukraine remain closed due to the conflict but the company is continuing to pay full salaries to all its employees there.

 

McDonald's initially faced criticism for being slow to halt its business in Russia, with some calling for a boycott of the company before it suspended operations in March.

 

Hundreds of international brands, including Starbucks, Coca Cola, Levi's and Apple, have left Russia or suspended sales there since the country invaded Ukraine in February.

 

Other firms, including Burger King and Marks and Spencer, say they are unable to close stores due to complex franchise deals.-BBC

 

 

 

 

Twitter boss hits back on Musk doubts over fake accounts

The head of Twitter has hit back after Elon Musk said his $44bn deal to buy the platform was "on hold" while he sought details about fake accounts.

 

In a series of tweets, Parag Agrawal defended the firm's estimates that spam accounts were less than 5% of users.

 

Mr Musk responded with a poo emoji, later repeating his claim that Twitter was underestimating the figure.

 

Analysts have speculated that Mr Musk may be looking for ways to renegotiate the price of the deal or walk away.

 

Those theories were fuelled further on Monday, after Bloomberg reported that Mr Musk had said at a tech conference that a deal at a lower price was "not out of the question".

 

He also said spam accounts might be four times Twitter's claims.

 

 

Mr Agrawal defended the firm's count, saying he would discuss the issue "with the benefit of data, facts, and context".

 

He said the company used a combination of public and private data to determine which accounts were real, reviewing random samples every few months. He added that Twitter suspended roughly 500,000 suspect accounts daily and locked millions more.

 

The margins of error are well within its estimate of spam accounts representing less than 5% of daily users, Mr Agrawal said.

 

He said the firm had shared an "overview" of its process with Mr Musk last week.

 

"We... look forward to continuing the conversation with him, and all of you," he said,

 

Mr Musk last week said he had put the deal on hold pending information "supporting [the] calculation that spam/fake accounts do indeed represent less than 5% of users".

 

He added later that he was "still committed to [the] acquisition", prompting Twitter board chairman Bret Taylor to respond "We are too".

 

Elon Musk puts $44bn Twitter deal on hold

How Elon Musk might change Twitter

But the stock market, which has seen weeks of turmoil wipe billions off the value of many companies, remains sceptical the deal will go through as outlined.

 

The price of a Twitter share has fallen below $38, sliding more on Monday after Mr Agrawal's tweets.

 

That is less than the price of the stock before Mr Musk revealed his interest in the company and well below the $54.20 per share he has offered.

 

Twitter's board approved the takeover last month, but the deal was not expected to be completed for months.

 

Dan Ives, an analyst at Wedbush Securities, said that a major fall in Tesla shares- which were critical to Mr Musk's financing of the deal - and widermarket declines have caused Mr Musk to get "cold feet".

 

"The bot issue at the end of the day was known... and feels more to us like the 'dog ate the homework' excuse to bail on the Twitter deal or talk down a lower price," he said.

 

In a series of tweets last week discussing his decision to fire top executives, Mr Agrawal acknowledged the risk that the deal might not move forward.

 

"While I expect the deal to close, we need to be prepared for all scenarios and always do what's right for Twitter," he wrote.-BBC

 

 

 

Ukraine war: Russia nationalises Renault's Moscow plant

Renault has announced it is selling its majority stake in Russian carmaker Avtovaz, following pressure over its continued presence in the country.

 

The French carmaker said it would sell its 68% interest to a Russian science institute, while its shares in Renault Russia will go to the city of Moscow.

 

Moscow said Renault's Russian assets had now become state property.

 

It is the first Russian nationalisation of a major foreign business since the invasion of Ukraine.

 

"Agreements were signed on the transfer of Russian assets of the Renault Group to the Russian Federation and the government of Moscow," Russia's industry and trade ministry said.

 

Financial details of the deal were not provided, but in April Russian Industry and Trade Minister Denis Manturov said Renault planned to sell its Russian assets for "one symbolic rouble".

 

In a statement on Monday, Renault Group said its board of directors had approved agreements to sell Renault Russia to the Moscow city entity, as well as its 67.69% stake in Avtovaz to the Russian Central Research and Development Automobile and Engine Institute (Nami).

 

The deal also included Renault's Moscow plant, Avtoframos, which makes Renault and Nissan models.

 

Moscow mayor Sergei Sobyanin said production at the plant would now resume under the Soviet-era Moskvich brand.

 

Renault boss Luca de Meo said: "Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the group's performance and our ability to return to the country in the future, in a different context."

 

The agreement, which Renault said would cost the company an estimated €2.2bn ($2.29bn), includes an option for the group to buy back its interest in Avtovaz for six years.

 

Avtovaz is Russia's largest carmaker and makes the country's popular Lada brand.

 

In March, Renault announced it was suspending operations at its Moscow factory.

 

It came after Ukraine's President Volodymyr Zelensky called on Renault and other French companies to leave Russia, accusing them of "financing the murders of women and children".

 

Renault's chief executive Luca de Meo said the firm was making a responsible choice - but just how much choice did it actually have?

 

In the early stages of the conflict, the company prevaricated, choosing to remain in Russia while other international brands were leaving.

 

But after being name-checked by Ukraine's President Zelensky, who said Western firms in Russia were helping to finance Vladimir Putin's war, it suspended its operations in late March.

 

Abandoning its Russian business will be costly - Renault's own estimate is $2.3bn. It will lose a major market once seen as a key avenue for growth. And it will lose Lada as well - a brand that was central to Renault's strategy for affordable cars.

 

Arguably, Renault could not remain in Russia. Yet the damage to its reputation has already been severe.

 

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Hundreds of international brands including Starbucks, Coca Cola, Levi's and Apple have left Russia since the country invaded Ukraine in February, with many now looking to sell their businesses in the country.-BBC

 

 

 

 

Goldman Sachs to offer senior staff unlimited holiday

Investment bank Goldman Sachs has said its senior staff will be allowed to take as much holiday as they want.

 

There will be no cap on paid leave under the bank's new "flexible vacation" plans which are designed to promote "rest and recharge".

 

Junior bankers, however, will still only be entitled to a fixed amount of holiday.

 

The bank has been accused of overworking younger staff in the past.

 

In a memo sent to staff globally, the bank said workers would be required to spend at least three weeks on leave annually from next year, with at least one week of consecutive days off.

 

"As a firm, we are committed to providing our people with differentiated benefits and offerings to support wellbeing and resilience," the firm wrote.

 

"As we continue to take care of our people at every stage of their careers and focus on the experience of our partners and managing directors, we are pleased to announce enhancements and changes to our global vacation programme designed to further support time off to rest and recharge."

 

Very few employers currently offer unlimited leave, but the policy is gaining in popularity.

 

LinkedIn, Bumble and Netflix now offer the perk. And the bank Citigroup has offered junior workers in Malaga eight hour days with no weekend work for half of the $100,000 starting salary offered for the same roles in London and New York.

 

'Counter productive'

Claire McCartney, inclusion and resourcing adviser for the Chartered Institute of Personnel and Development (CIPD), said that unlimited leave could be a way to "empower" employees and "may help to attract and retain talent".

 

However, she said the policy needs "careful" management and could be "open to abuse".

 

"There's a risk that it could prove counter-productive, some people could take less leave which could lead to stress and burnout," she added.

 

"It's also important for it to be fair. If it is only open to certain employees, for instance, senior staff, that could lead to the rest of the workforce feeling undervalued and resentful."

 

Junior employee burnout

Last year, people who had recently joined Goldman though its graduate recruitment scheme said they would quit unless their gruelling working conditions improved.

 

An internal survey among 13 employees showed they averaged 95 hours of work a week and slept just five hours a night.

 

In the survey, all of the respondents said the job had negatively affected their relationships with friends and family, while 77% said they had been victims of workplace abuse.

 

Working conditions were described as "inhumane" and "abusive" in the survey, which was seen by the BBC.

 

At the time, a spokeswoman for the bank told the BBC it was "listening to their concerns and taking multiple steps to address them".

 

The bank also said it had reinforced its "Saturday Exception" policy - which means that employees cannot work from 9 pm on Friday to 9am on Sunday except in certain circumstances - and was moving to automate certain tasks for junior staff.-BBC

 

 

 

Who is to blame for soaring prices?

There was nothing more certain than a blame game erupting about the cost of living crisis.

 

The Bank of England's target in law is to get inflation to 2% on the Consumer Price Index measure, but it is now heading for 10%.

 

It is a clear and rather spectacular failure on that score.

 

The target is supposed to apply at all times and the setting of interest rates is supposed to be consistent with the target in two years' time.

 

But at the same time, the great bulk of the factors underpinning inflation surging to a 40-year high is beyond the control of the Bank.

 

The pandemic, the supply chain fails as the global economy rebounded, the introduction of post-Brexit trade frictions with Europe, the post Brexit and pandemic fall in labour supply, the fall in sterling, and of course Russia's invasion of Ukraine have all impacted on rising prices.

 

Only today world wheat prices and UK diesel and petrol prices are close to or at record levels, in the aftermath of Russia targeting Ukraine's food export infrastructure, India's export controls, and the impact of Western sanctions.

 

The Bank also has a responsibility in addition to stable prices "to support the economic policy of Her Majesty's Government, including its objectives for growth and employment".

 

This is code for "keep prices stable but do try to avoid creating recessions and unemployment".

 

And that is the balancing act or "the very narrow path", as the Bank's governor Andrew Bailey put it to me, that the Bank always faces. It is just far more difficult when dealing with three external shocks and a fall in sterling.

 

The real critique of the Bank is that by acting slowly, inflation will now be entrenched and fall back from high levels only slowly, and require higher interest rates, even at the risk of a recession.

 

The warning signs were there in the housing market last year of an extraordinary pandemic housing boom. The Bank chose to analyse these surges as mainly justified because the pandemic had caused people to want to move house, rather than signs of something unsustainable.

 

Friends of the Bank say that the monetary policy committee structure, where five Bank insiders and four external experts debate interest rates every six weeks or so, make it difficult to turn the tanker around. All the members of the committee issue speeches including lengthy justifications of the previous month's votes. The committee structure could make it more cumbersome to effect rapid policy change.

 

It happens to be that this is occurring on the 25th anniversary of the Bank of England given the independence to set interest rates, without political interference.

 

The reason for that was economic theory and practice had shown that the politicisation of interest rate setting was itself inflationary. Governments have an incentive to let the good times roll, slash interest rates, and stoke unsustainable booms just before an election. Taking the power to set interest rates away from politicians, had largely been a success, in the first half of that.

 

Some of that success, however, was down to the rise of China as workshop of the world, reducing global prices, by making manufacturing cheaper. Those global deflationary factors are now in reverse. The world economy has had sand thrown in the wheels, with trade embargos on wheat and energy. The UK in particular is in the middle of post-Brexit trade transition, where imports and exports trade less freely, and it is more difficult to access European labour. That is, for now, also adding to long-term price pressures, and makes the Bank of England's trade offs worse.

 

The Bank has some serious questions to answer, that might yet lead to a rethink of its independence settlement. But there is enough blame for the cost of living crisis to go around all arms of officialdom. And those in government piling political pressure on the independent "Lady of Threadneedle Street" may want to be careful with what they are wishing for.-BBC

 

 

 

Cost of living: Inflation hits NI consumer confidence

Consumer confidence in Northern Ireland fell sharply in the first quarter of 2022 as inflation hit household finances, a Danske Bank survey has suggested.

 

The latest survey was carried out in the second half of March with 1,003 people.

 

More than 40% of people expected their financial position to worsen over the next year.

 

Only 18% believe their finances will be in a better position in 12 months.

 

In comparison a survey conducted in the final quarter of 2021 found at that time only 26% of people expected their financial position to deteriorate in the year ahead.

 

In terms of spending, 38% of respondents said they expected to spend less on expensive items over the next year, compared with 26% who anticipated spending more.

 

 

However, there is a broad expectation that the jobs market recovery will be sustained.

 

When asked about job security, 13% of people expected to become more secure in their jobs, while 61% expected no change in job security and only 8% thought their job security would worsen.

 

Danske Bank chief economist Conor Lambe said: "In Northern Ireland and the wider UK, consumer spending accounts for a considerable proportion of economic activity and is therefore an important driver of economic growth.

 

"Inflation has already increased sharply and is likely to rise even higher in the months ahead, exerting a further squeeze on consumer spending."

 

The UK main rate of inflation, the Consumer Price Index, stood at 7% in March but is expected to rise higher when the April statistics are released this week.

 

Last week, two of Northern Ireland's biggest food companies warned consumers to expect further price rises this year.

 

Food production inputs like fuel, fertiliser and animal feed have experienced rapid inflation over the last year.

 

Dale Farm chief executive Nick Whelan said only about half of that inflation had been passed to consumers.

 

That was echoed by Justin Coleman, director at Moy Park, which is one of Europe's biggest chicken producers.

 

"I don't think the full force of food inflation has hit retail shelves yet," he said.-BBC

 

 

 

Tesco gives £6.6m to pig producers following plea

UK pig farmers have welcomed a decision by Tesco, their biggest customer, to pay an extra £6.6m to pork producers.

 

It follows a National Pig Association (NPA) letter to Tesco urging it to "do the right thing" and pay more or risk losing its British pork supply base.

 

The NPA's chairman, Norfolk farmer Rob Mutimer, said the organisation was "very, very pleased" with the supermarket giant's offer.

 

Tesco said its support between March and August would amount to £10m.

 

The NPA warned four out of five pig producers could go out of business within a year unless Tesco paid more.

 

Tesco, whose headquarters is in Welwyn Garden City in Hertfordshire, said it had already given the industry £3.4m since March.

 

 

Dominic Morrey, Tesco Fresh commercial director, said: "We know there is more to do, and we will be working with suppliers, farmers and the wider industry to drive more transparency and sustainability across our supply chains and support the future of the British pig industry."

 

Mr Mutimer, who farms at Swannington near Aylsham, said: "This is a very welcome boost for beleaguered pig farmers, who are currently facing unprecedented costs of production and need a tangible increase in the price they are being paid in order to stay in business.

 

"We look forward to seeing the pig price rising very soon as a result of this action, and hopefully we can begin to stem the flow of producers exiting the industry."

 

In its letter of last week, the NPA said other supermarkets had already confirmed additional support for farmers who were facing rising costs and staff shortages.

 

It said Waitrose had pledged a new £16m support package and Sainsbury's had offered £2.8m in additional short-term support.

 

The NPA said the east of England was the UK's largest region in terms of pork production.-BBC

 

 

 

Diesel prices reach record of over £1.80 a litre

UK diesel prices rose to a record of just over £1.80 a litre as efforts to stop importing fuel from Russia pushed up costs for retailers, the RAC said.

 

After the previous record of £1.79 was set in March following the Russian invasion of Ukraine, prices dipped but have risen again in recent weeks.

 

The RAC said petrol prices went up by nearly 3p a litre since the start of May and were £1.66 a litre on average.

 

It said if EU members agreed to ban Russian oil, prices could rise further.

 

The EU has been focusing for weeks on how to wean itself off Russian energy and has plans to phase out Russian crude oil over six months.

 

However, countries are split on how soon they wind down dependence - Hungary has rejected the proposal as unacceptable and the Czech and Slovak governments want a transition period.

 

 

How much will the fuel duty cut on petrol save you?

Drivers cut back on journeys as fuel costs bite

The UK is not as dependent on Russian oil as the EU is, however, almost a fifth of all UK diesel consumption was provided by Russian imports in 2020.

 

The UK is also affected when global prices rise, despite its plans to stop Russian oil imports by the end of the year.

 

"Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel," said RAC fuel spokesman Simon Williams.

 

"Unfortunately, drivers with diesel vehicles need to brace themselves for yet more pain at the pumps."

 

Cutting back

In recent weeks, fuel sales have fallen as drivers have cut back on the number of journeys they make due to higher pump prices

 

Petrol station operator Ascona Group, which owns 60 UK petrol stations, said the amount of fuel it sold had dropped by 200,000 litres a week compared to pre-pandemic levels.

 

Managing director Darren Briggs said customers were making £20 to £30 fuel purchases "last a little bit longer".

 

The Office for National Statistics revealed last week that the UK's economy shrank by 0.1% in March and said higher prices, including those at the petrol pumps, were "really beginning to bite".

 

The downturn came ahead of the impact of higher energy bills in April, which has sparked fears from analysts that the UK economy is at risk of a recession - defined as the economy getting smaller for two consecutive three-month periods - later this year.

 

-BBC

 

 

 

Africa: New Tool to Measure Ease of Inter-Africa Trade Launched

The Economic Commission for Africa (ECA) on Sunday, May 15, launched the first-ever comprehensive tool that measures how easy, or hard, it is to do business between African countries.

 

The AfCFTA Country Business Index (ACBI) has three key objectives including assessing the perceived impact of the African Continental Free Trade Area on the private sector's ability to trade and invest across African borders once the Area is operational.

 

The idea that started in 2018 focuses explicitly on the constraints and challenges faced by private businesses, said Stephen Karingi, Director of the Regional Integration and Trade Division of UNECA.

Its launch was done in a side event during the 54th session of the Economic Commission for Africa (ECA) Conference of Ministers in Dakar, Senegal.

 

"It will be used to identify key challenges that the private sector faces in its cross-border activities," he said.

 

As noted, the tool focuses on African integration by targeting businesses based in and trading across African countries.

 

The UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa, Vera Songwe, said the ACBI "is yet another measurement infrastructure" that will help assess the extent to which broader developments related to integration and trade are implemented; as well as understand the business sector's perceptions of trading under free trade agreements already in force in African countries.

 

Vera Songwe, the UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa, speaks at the 54th session of the ECA Conference of Ministers in Dakar.

It is not a measure of what a particular country is doing but a measure of how easy it is for someone in one country to set up a business in another country, Songwe said.

 

The Index aims to look at how easy it is to do business between African countries, to trade among each other and how easy it is for a Cameroonian, for example, to set up business in Kenya and vice versa.

 

It will help identify bottlenecks and address issues so that the African private sector can conduct business as seamlessly in their country of origin as anywhere else on the continent.

 

Following the launch of the Index in 2018, experts began piloting and refining it as a tool to measure and compare the views of businesses across Africa on the implementation of the Area. After phase one, in Cameroon and Zambia, the methodology was refined.

 

Surveys were conducted in seven more countries: Angola, Côte d'Ivoire, Gabon, Kenya, Namibia, Nigeria and South Africa.

 

Karingi said they now target to cover 13 countries by July.

 

A report with results from the second phase of the roll-out was presented on Sunday. As found out, among others, Karingi noted, cross-border trade is more challenging for female-owned firms, something that policymakers need to pay attention to and help fix.

 

In the third phase, the new tool will be rolled out in DR Congo, Egypt, Morocco, Rwanda, Senegal and Tunisia.

 

The Index differs from other integration indices, since it is informed entirely by private-sector perceptions, not by secondary data, making it truly representative of African business.

 

Prudence Sebahizi, the chief technical adviser on AfCFTA, requested the Economic Commission for Africa to enhance the new tool such that it can, in future, also able to measure or assess the status of rules and regulations that impact on trade "and what interventions can be made to improve trade performance."

 

"My point is: the ACBI has provided outcomes of national consultations based on private sector perceptions. However, no concrete reasons for such perceptions are provided nor actions proposed to improve the perceptions," Sebahizi later told The New Times.

 

The AfCFTA Secretariat is planning to undertake AfCFTA Trade Policy Reviews that will assess the status of national trade-related policies that affect the implementation of AfCFTA and propose concrete reforms to be undertaken to improve the situation.

 

The agreement establishing the AfCFTA officially became operational in 2021. The objectives of the Area are to create a single, continent-wide market and to enhance competitiveness at the enterprise level.-New Times.

 

 

 

Nigeria: How IPOB's Sit-At-Home Order Is Destroying Businesses in Nigeria's South-East

Traders, transporters and hotels lament the impacts of the sit-at-home order of the Indigenous People of Biafra (IPOB) on their businesses in Nigeria's South-east.

 

When the outlawed Indigenous People of Biafra (IPOB) first declared every Monday a sit-at-home holiday in the South-east of Nigeria in August last year, Emmanuel Ndu did not take it seriously.

 

Mr Ndu, a businessman in Ogbete Main Market in Enugu State, thought residents of the area would ignore the order because they are predominantly business people.

 

"All of a sudden it started holding, even in December, which is usually our business season," he said, shrugging his shoulders to express his surprise over the development.

 

Nnamdi Kanu's trial

 

In August, it will be one year since IPOB introduced the order to put pressure on the Nigerian government to release its leader, Nnamdi Kanu, who is standing trial before the Federal High Court, Abuja, for treason and terrorism.

IPOB initially declared the holiday for Mondays but later extended it to every day Mr Kanu appears in court. Since then, the South-east has become a ghost region with all businesses shut down on such days and every Monday as residents stay at home, mainly out of fear of attack.

 

Gunmen have been attacking traders and commuters across the region who flout the order. They have killed many people and set ablaze goods worth millions of naira for being sold or transported on such days.

 

On April 21, a group of four masked gunmen released a video clip in which it claimed responsibility for the enforcement of the suspended Monday sit-at-home order.

 

"Monday sit-at-home is sacrosanct," the spokesperson of the group said in the clip, adding, "nothing can stop it apart from the release of Mazi Nnamdi Kanu."

 

 

The Nigerian government has blamed IPOB for the deadly attacks, but the proscribed group has repeatedly denied being involved.

 

The secessionist group is leading the agitation for the creation of an independent state of Biafra from the South-east and parts of the Niger Delta area of Nigeria.

 

Hopes of resolution of conflict dashed

 

There were cheers on April 2 across the region when the Anambra State Traditional Rulers Council announced that IPOB had stopped the sit-at-home holiday.

 

The Igwe of Onitsha, Nnaemeka Achebe, who is the chairman of the council, said IPOB took the decision after Igbo leaders, including religious leaders, declared their intention to find a lasting solution to the insecurity and other problems that agitate the minds of people in the region.

 

Mr Achebe said after its meeting with the group, IPOB called all its members to drop their arms and embrace dialogue.

 

 

But the joy was short-lived as the holiday continued the following Monday.

 

In another effort to end the lockdown, Governor Charles Soludo directed churches in Anambra State to hold prayers to mark the end of the sit-at-home holiday in the state on April 4. That was in addition to the amnesty his new administration offered to gunmen, who are alleged to be part of Biafra agitation.

 

"Following the unanimous agreement of our leaders across board, and the entire body of Christ, I am pleased to inform our people that today, Monday, April 4, 2022, marks the official end to the 'Monday sit-at-home' in Anambra State," Mr Soludo posted on his verified Twitter handle

 

"I have also offered amnesty to all our brothers in the various forests around us. Give us your guns, and trust us to help you forge a meaningful living," he posted on the micro-blogging site.

 

Hopes were raised again but they were soon dashed as shops, banks, and filling stations all closed for business the following Monday.

 

Sit-at-home destroying businesses

 

Businesses across the South-east are feeling the pains of the unending lockdown.

 

"We are dying gradually. The sit-at-home is destroying our business," Mr Ndu, a father of three, said. "Some of us cannot eat without coming to this market."

 

Mr Ndu sells electronics gadgets in the market. He said goods now stay longer in his stores unsold because the sit-at-home has forced them to do business for only five days a week.

 

"I lose about N200,000 every sit-at-home day," he lamented.

 

Kasie Ezebinagu, a market leader at Ogbete Main Market, Enugu State, usually took bank loans to run his stockfish business. But the last time he secured a loan, he did not record enough sales to repay it.

 

"I used to make 80 per cent of the bank loan from sales, but today, I can't make up to 40 per cent," Mr Ezebinagu, who is the chief security officer in the market, told PREMIUM TIMES. "We are going down every day," he said, shaking his head in despair.

 

"Businesses have collapsed. And those whose businesses have collapsed may pick up arms one day to fend for themselves. Insecurity and crime rate will double," he predicted.

 

At Uzoakoli Market in Bende Local Government Area of Abia State Caleb Johnson, a provision seller, does not open his shop on Mondays and other sit-at-home days.

 

Traders always scamper for safety at alarm that IPOB militants were coming for traders who opened for business on sit-at-home days, Mr Johnson said.

 

"We do not sell anything during sit-at-home days. There is usually fear (of attacks) among traders," he said. "You won't even see people to sell to. The roads are usually dry."

 

'Why South-east? Why not Abuja?'

 

Mr Johnson does not understand the reason for the holiday in the South-east when Mr Kanu's court proceedings are in Abuja, Nigeria's capital.

 

"We are maltreating ourselves with it. South East is now a danger zone. And it is also affecting the economy of the South East," he said angrily.

 

Sunday Onyike, a GSM phone dealer at the Oriendu Market, Abia State, shared his sentiments.

 

"Businesses are going down," Mr Onyike told PREMIUM TIMES.

 

Faced with biting hardship, traders occasionally opened for business in the evening of sit-at-home days to palliate their economic woes. But Mr Onyike dare not join in the "risky venture."

 

Neither does Grace Emeka too. She said she would not "walk past" her gate or contemplate opening for business on sit-at-home days. The shop owner at the popular Ariaria International Market, Aba, Abia State, would rather incur losses than risk being shot.

 

Since some gunmen attacked traders in the market on a sit-at-home day, she had not entertained such a "dangerous" idea.

 

"It seriously affects our business. How much can we make from the few days we have left in a week?" said Mrs Emeka, who sells ceramic plates in the market.

 

Collins Uche, a businessman at International Market, Orlu, Imo State, said the forced holidays have stifled businesses in the South-east. He said those who secure loans to grow their businesses face the risk of repayment default and liquidation.

 

"How can we repay loans? The capital will even be disappearing," Mr Uche, who deals in tailoring materials, said.

 

At Douglas Market, Owerri, Imo State, shop owners usually shun the market on sit-at-home days.

 

"On such days, it looks as if there is no market at all," said Anthony Opara, who sells computers in the market. "I lose between N100,000 and N150,000 on every such day," he said.

 

To make up for their losses, some traders in the market now open on Sundays, despite the area being dominated by Christians. But Mr Opara would not join them. He said the practice offends his faith as a Christian.

 

Attacks rare in Ebonyi but fears persist

 

At Margaret Umahi International Market, Abakiliki, the Ebonyi State capital, Peter Oba, the acting chairman of the market, told PREMIUM TIMES that the state government stopped the holiday in the state, which allows traders to do their businesses on Mondays.

 

But, Daniel Nwibo, a phone accessories dealer in the market, said although the market leadership usually opens the market for business on Mondays, many residents avoid the market.

 

"To be frank, the sit-at-home is affecting us too in the market," he said.

 

Mr Nwibo said though gunmen attacks are rare in Abakiliki, the frequency in other states in the region scares buyers and traders away from doing business, especially those from outside the state.

 

"We can't go to the market, so we can't sell," Ifeanyi Nwigwe, another businessman at the market, said. "The rainy season will even worsen the situation because the few days we have to do business (within a week) could be ruined by rainfall, " Mr Nwigwe, who sells Agrochemicals, said.

 

The businessman, who said he loses N400,000 on any sit-at-home day, maintained that the state government's insistence to open markets on such days has not yielded results because people are scared to open for business.

 

Ekene Ufondu sells power banks and other electronic devices at the popular Onitsha Main Market, Anambra State. He used to have customers coming from Northern and South-southern parts of the country.

 

Customers heading to 'safer zones'

 

But Mr Ufondu said patronage has dropped drastically. He lamented that his customers have found safer zones for business in other regions.

 

"They (my customers) are now diverting to Asaba (Delta State) and some are even going to Lagos to buy goods," he lamented.

 

Delta and Lagos are in the South-south and South-west parts of Nigeria respectively.

 

Mr Ufondu said business owners suffer more in the region whenever Mr Kanu appeared in court on the days following Monday.

 

Death threats

 

Kenneth Onyeka, the chairman of Onitsha Market Traders Union, Anambra State, said unknown elements frustrated his efforts to end the Monday sit-at-home holiday.

 

Mr Onyeka worked in collaboration with Uchenna Okafor, a former Commissioner for Trade and Commerce in the state, to end the Monday sit-at-home order.

 

After IPOB suspended the Monday sit-at-home holiday, the market leader ordered the market to be opened on Mondays and attempted to mobilise the frightened traders to return to their businesses. But he said "death threats" from unknown persons forced him to abandon the move.

 

"People I don't know would call me with strange numbers to threaten my life. I had to rescind the decision," he said.

 

The market leader also decried the impact of the holiday on the economy.

 

"I may not be able to be exact, but I can tell you we are losing millions of naira. Many customers I know have started going to Asaba (in Delta State) to buy goods and even sell," Mr Onyeka stated.

 

Hotels not spared

 

Hotels have also recorded a sharp drop in patronage.

 

"The IPOB's sit-at-home has seriously affected our business in the South-east," Paschal Ifeanyi, manager of The Bull Hotel, Enugu, told this newspaper.

 

"This sit-at-home restricts movements and reduces the number of people that come to patronise us. Because of the fear of being killed or harmed, people stay in their homes, rather than going to hotels," the hotelier explained.

 

On a normal working day, the hotel rakes in about one million naira. But on sit-at-home days, making N100,000 is difficult, he said.

 

"That's about an 80 per cent loss," Mr Ifeanyi said.

 

In Owerri, the Imo State capital, the situation is even worse for hoteliers.

 

"Customers do not check in at all during sit-at-home days. So, it is a big threat to the hotel industry," Esther Iwuanyanwu, the manager of a hotel in the state, told PREMIUM TIMES.

 

Ms Iwuanyanwu, who pleaded with PREMIUM TIMES to conceal the hotel's identity in this report, said the industry suffers because inter-state travels are usually halted during the forced holiday.

 

"Our record has it that we don't have anybody checking in on such days. Most of our guests come from outside the state," she explained, adding that the loss is usually 100 per cent.

 

Transport sector also hit

 

The transport sector in the region is also feeling the sting.

 

Ifeanyi Enete, the General Manager of Peace Mass Transit Limited, one of Nigeria's leading transport companies, told PREMIUM TIMES that the losses incurred in the sector are "unquantifiable." He said transport companies shut down on sit-at-home days to save passengers and vehicles from possible attacks by gunmen.

 

"Transporters are the worst hit by the situation," Mr Enete said. "We are recording huge losses and it is threatening the business already."

 

Also, statistics which could not be verified said the transport sector loses at least N3 billion any day there is sit-at-home in the region.

 

The real danger

 

Humphrey Ngonadi, the president of the South-east Chamber of Commerce, Industry, Mines and Agriculture (SECCIMA), said the situation has forced many buyers and investors into neighbouring regions.

 

"The customers that are coming to South-east (to do business) are moving to other regions. And at the end of this sit-at-home, they may not return to the South-east," the SECCIMA boss said.

 

"(This is) because the sit-at-home order has made them discover other areas of business which they did not know before now," Mr Ngonadi explained.

 

"For instance, Onitsha is very close to Asaba. A lot of people are relocating to Asaba. We lose billions every sit-at-home. It is doing a lot of harm to the South-east," he added.

 

More troubling statistics

 

1n September 2021, Dave Umahi, the chairman of South-east Governors Forum and Governor of Ebonyi State, said the region loses over N10 billion each time it observes the sit-at-home order.

 

About six months later, Mr Soludo, Anambra State Governor, said poor masses lose an estimated N19.6 billion in Anambra alone during sit-at-home days.

 

"Due to the protracted breakdown of law and order, businesses are relocating outside Igboland, with growing unemployment, and traders who used to come to shop in Onitsha, Aba, etc are going elsewhere," Mr Soludo said in his inaugural address on March 17.

 

Experts react

 

"People are losing businesses, (and) it has a very big impact on the economy of the South-east and even Nigeria," Chike Agu, a professor of economics at the University of Nigeria, Nsukka, said.

 

"It is increasing the poverty rate," he added.

 

On her part, Justina Nnabuko, a professor of marketing at the Enugu Campus of the Enugu State University, linked the holiday to the rising cost of commodities and unemployment.

 

"We can see it - high cost of things all over," she said. "People are being laid off, businesses are closing down because they can no longer make sales," Mrs Nnabuko said.-Premium Times.

 

 

 

Nigeria: Petrol Scarcity - Govt, Marketers Trade Blames Over Transport Claims

Amidst raging queues for Premium Motor Spirit (PMS) also called petrol in Abuja and some states, federal government agencies in the petroleum industry, as well as the product marketers, have traded blame on claims of payment and product loading volume.

 

Daily Trust reports that the queues in Abuja resurfaced last weekend when it was observed that among over 30 retail outlets, less than five were selling as vehicles lined up to buy petrol.

 

The scarcity became worse on Monday as black marketers had a field day selling a 10-litre volume for N2,500 within the city centre.

 

Aliyu Musa, a driver, who had been at a particular fuelling station for an hour had estimated he could spend another 30 minutes before he would get the product.

 

 

"We have been seeing this sign since last week but it was not that bad. However, since Friday, the retail outlets have started drying up in my area around Lugbe," said Silas John, a commercial driver.

 

Some retail outlets in Jabi were accused of selling the product to people coming with containers while locking out motorists who were apparently in need of petrol.

 

"If you go there, you will see how they locked the place but they are dispensing to people who bring kegs while we are in the queue outside the station waiting for them to open the gates and start dispensing to us," said Abdulateef Jimoh, a commercial taxi driver about one of the retail outlets in Jabi on Tuesday.

 

However, from Wednesday the vast empty stations began to open their gates to dispense the product in Abuja as they took in fresh consignment but amidst queues. It was observed in the Mararaba area of Nasarawa State, that none of the stations retailing petrol had the product up till Thursday. In a section of the area, two stations sold at the black market rate of N250 per litre as against the approved N165/litre price band with motorists having no option but to queue for the product.

This paper also reported that in Kano, there were relatively short queues at filling stations that were dispensing the petroleum product last weekend while scores of the stations were shut. However, in some of the stations dispensing the product, motorists said some of them had retained a pump price above the approved N165/litre with some of them still selling between N180 to N200/litre.

 

In Lagos, there were no reports of queues but some retail outlets have also not opened for business indicating that they do not have the product to sell.

 

As of April 27, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said there were 984.236 million litres of petrol in stock capable of lasting for 17 days or slightly above two weeks. "NNPC has 320.487m litres (representing 23% of the entire stock), the Major Oil Marketers Association of Nigeria (MOMAN) has 57.235m litres (just 6% of the stock) while the Depot and Petroleum Products Marketers Association (DAPPMA) has 696.5m litres of petrol (71%).

Also wading into the scarcity, the Nigerian National Petroleum Company Limited (NNPC) issued a statement blaming the low loading of the product from the depots because of the holiday.

 

The Group General Manager, Group Public Affairs Department of NNPC, Garba Deen Muhammad, said: "The NNPC Ltd notes the sudden appearance of fuel queues in parts of Abuja. This is very likely due to low loadouts at depots, which usually happen during long public holidays, in this case, the Sallah celebrations.

 

"Another contributing factor to the sudden appearances of queues is the increased fuel purchases, which are also usual with returning residents of the FCT from the public holidays," it stated.

 

The company said it had taken steps along with NMDPRA and marketers to ramp up loadouts from all depots.

 

"We assure all residents of the FCT, and indeed all Nigerians, that we have ample local supplies and national stock in excess of 2.5 billion litres, with the sufficiency of more than 43 days."

 

The Group Managing Director of the NNPC, Mele Kyari, afterwards said 300 trucks will supply petrol to the Federal Capital Territory, Abuja between Tuesday and Wednesday to ease the scarcity.

 

"All truck load-outs are at their maximum today. We believe that this is a very temporary thing. And with over 150 trucks coming into Abuja today and another 150 coming into Abuja tomorrow, it will soon go away," he noted.

 

However, as of Friday, some residents in Abuja, Lagos and Kano whom our reporter contacted said more stations, which had remained shut were already dispensing as the queue level relatively declined.

 

How marketers, NMDPRA differed on N500bn transport debt

 

An inquest to ascertain the cause of the fresh petrol scarcity starting last weekend raised more concerns for Nigerians as oil marketers and NMDPRA during the week differed on the payment of bridging or transport claims.

 

An official of the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that most of its members were awaiting the loading of the consignment from the depots.

 

"The long break affected loading of products from the depots and that explains the queues you said you have seen in Abuja. Hopefully, as work resumes in earnest from Monday, the NARTO will begin to load products for us to our stations," the official noted.

 

While this was a position of a member of the national chapter of IPMAN in Abuja, the Kano chapter of IPMAN told Nigerians to prepare for the worst fuel crisis if the federal government or the NMDPRA fails to pay its members' outstanding bridging claims of over N500 billion.

 

IPMAN Chairman in Kano, Bashir Danmalam, on Monday said the failure of the NMDPRA to pay its members the bridging claim, otherwise known as transportation claim, had forced members out of business as they couldn't transport the commodity due to the high cost of diesel.

 

The chairman explained that non-payment of the claims by the agency for nine months had crippled the businesses of many members of the association as they could not transport the commodity even though it was available.

 

"Many marketers cannot transport the product because their funds are not being paid. Despite the high price of diesel, they manage to supply the petroleum products nationwide. The resurfacing of fuel queues in Abuja is just a tip of the iceberg with regard to the petroleum scarcity," he warned.

 

The chairman further revealed that, out of 100 per cent, only five per cent of the marketers can supply the petroleum products because of the outstanding debt.

 

Danmalam said since the merging of DPR, PEF and PPRA to NMDPRA in October 2021, members of IPMAN had received payment just twice.

 

In a swift reaction, NMDPRA on Thursday said it paid N58 billion as bridging claims to oil marketers in the last six months.

 

"Since December 2021, the NMDPRA has made several payments to marketers whose claims have been verified. So far, over N58 billion has been disbursed to oil marketers out of which about N34 billion went directly to members of IPMAN.

 

"We wish to stress that the total amount disbursed so far is the highest ever paid within a six-month span by previous fund administrators, which implies that the reimbursement of marketer's transportation differentials for petroleum products movement from depots to sales outlets is a priority to the NMDPRA," it explained.

 

The authority also said the administration of bridging payment is a continuous process as hundreds of trucks load and discharge products daily thereby adding to the claims.

 

It also said freight rates were recently reviewed upwards to reflect current market realities and stimulate investments in the transportation of petroleum products to ensure uninterrupted distribution.

 

The authority then admitted that some of the pending payments were due to the reluctance of marketers to reconcile their claims, in spite of the authority's continuous appeal to come for reconciliation whenever there are discrepancies.

 

It however assured that NNPC has sufficient petrol to last over 47 days, translating to about 2.65 billion litres to stabilise the fuel scarcity in some states.

 

"Some loading depots have been directed to operate on extended hours to enable increased truck-out. In the interim, the vessel discharge operations have been reviewed to fast-track truck loading and distribution in order to meet increased demand," said NMDPRA.

 

Full liberalisation will end bridging claims, scarcity - Expert

 

On the way forward, Engr. Ochube Onuh of Green Energy, an oil servicing and logistics firm, said only liberalisation of petrol trading and the removal of subsidy can solve the problem.

 

He said, "Look at diesel, I don't think the government pays bridging claims to the marketers because its sales have been liberalised. That would be the best thing for petrol though people may suffer at the start.

 

"Fortunately, the Petroleum Industry Act (PIA) has set a pace for that, it's just a matter of time for the implementation," said Onuh.

 

He also added that the petrol scarcity is already vanishing in Abuja. "The queues have reduced as more logistics firm have been engaged to drive them loading of products."-Daily Trust.

 

 

 

Tanzania Determines to Curb Cereal Post-Harvest Loss

TANZANIA is out to tame cereal post-harvest loss by constructing silos in top maize producing regions. To walk the talk the country has already construct eight silos in Sumbawanga, Rukwa which will double the region storage capacity thanks to 67million US dollars project financed by Tanzania and Poland.

 

According to data the East African Community makes huge post-harvest losses in food products annually in the range of 30 per cent in cereals, 50 per cent in roots and tubers, and up to 70 per cent in fruits and vegetables.

 

Nevertheless, the Rukwa's project of constructing eight silos was completed two months ago and has the capacity of storing 501,000 tonnes. The old facility has a capacity of 250,000 tonnes.

The silos at Kanondo area in Sumbawanga municipality was financed by polish government which through a soft loan of 55 million US dollars and the 12 million US dollars form the government of Tanzania.

 

Though the silos was completed in March were subjected to some trials last month and now are ready for use. Rukwa Regional Commissioner (RC) Mr Joseph Mkirikiti said the target of the construction of modern storage facilities were to enhance storage capacity as well as to reduce burden for smallholder farmers.

 

"The target is store cereals and to cut down postharvest lost," the RC told reporters after touring the silos over the weekend. Currently, The Ministry of Agriculture through National Food Reserve Agency (NFRA) is constructing silos to increase the storage capacity of cereals in seven regions namely Rukwa, Katavi, Njombe, Manyara, Ruvuma, Dodoma and Songwe.

The project in seven regions is also partially financed through Programme of Storage Capacity Expansion Project (SCEP) following a soft loan from Polish government.

 

The Sumbawanga's silos according to Polish'S UNIA Araj, Resident Engineer, Haruna Kalunga the project took off in 2020 involving constructing of silos, a weighing and measuring facility, six buildings and fencing of the compound.

 

The EAC, Deputy Secretary General, in charge of the Productive and Social Sectors, Mr Christophe Bazivamo, said that partner states could reverse this situation through deployment of better storage and processing technologies and enhanced packaging techniques can greatly contribute to the regional development objectives; ensure food security and result in higher earnings for farmers and SMEs.

 

Mr Bazivamo said that to counter these challenges, the EAC has developed clear policy directions to signal to the investors the Community's strategic intent, adding the bloc has established a public private sector fruits and vegetables platform to drive faster development in the sector.

"In our recently adopted fruits and vegetables strategy and post harvest loss management action plan we aim to unlock this potential by, among other things, pursuing best practices in contract farming, productivity, inputs; utilization of modern and new technologies, capacity building," he said.

 

The EAC was keen on improving agro-specific infrastructure for example collection centres, sorting, pack houses, cold storages; refrigeration tanks; development of cold rooms, supply of processing machineries, competitive ocean and air freight services, adding that promotion of the packaging, branding and display sectors was also critical to reducing postharvest losses. Mr Bazivamo was speaking during the opening session of the Tanzania Food and Agriculture Expo (TanzFood 2022) at the Magereza Grounds in Arusha,

 

Tanzania. The agricultural sector in the region is employs the highest number of East Africans and contributes over 20 per cent to the GDP of the EAC.

 

"Agriculture has the potential to completely transform our region, fully feed us and improve our economic welfare. We are yet to unlock the full potential of the sector and yet we are growing as a region and as a continent," said the DSG.

 

Speaking at the same event, Mr John Mongella, the Arusha Regional Commissioner and the chief guest at the event, urged banks and the private sector to invest more in agriculture, adding that the sector had the potential to assist Tanzania and EAC to attain food security.

 

Mr Mongella expressed hope that the TanzFood Expo would grow into a regional event that would attract exhibitors from the six EAC partner states and beyond.

 

In her remarks, Germany's Ambassador to Tanzania and the EAC, Ms Regine Hess, expressed optimism that the expo would grow in the coming years to attract exhibitors and investors from the region and other parts of the world.

 

She urged the EAC to convene more trade fairs saying that such forums would strengthen the regional economy and enable producers and innovators to tap into the international market, adding that Germany was keen on supporting similar events.-Daily News.

 

 

 

Nigeria Needs Friendly Tax Laws in a Digital Economy

Although, Nigeria has its own tax law, it is important that this law is friendly, fair and flexible, so that the nation can tap from the fast developing digital economy.

 

These were the views of Dr Alexander Ezenagu, the Guest Speaker at the 2022 edition of the Punuka Annual Lecture, with the theme: "Taxation of the Digital Economy: The Challenges and Prospect for Nigerian Economy".

 

The University Don said that, given the present international convention where digital business and economy is fast developing, a good tax law that will allow you to tax businesses, both with physical presence or without any physical presence, is what Nigeria needs now given the speed at which Nigerian's digital economy is developing.

He further maintained that, Nigeria needs to elevate its digital tax laws to the royalty level.

 

Also speaking at the event, the Nigeria's Minister of State for Budget and National Planning, Prince Clem Ikanade Agba, said digital economy is high on the list of untapped sources of funds for the Nigerian tax authorities, and it is the future of the nation.

 

Agba, who also towed the line of the Guest Speaker, said that a delicate balance must be achieved, such that taxation of the digital economy did not stifle its growth, noting that taxes were the lifeblood of Government.

 

According to him: "It is the blood with which the economy runs and functions, and without it, a government will not be able to fulfil its obligations to the citizenry.

 

"Whatever affects collectible taxes will therefore, affect the health, existence and performance of the Government and the economy."

 

He explained that the digitalisation of the economy had revealed some challenges and shortcomings in the existing tax practice, as it affects the allocation of taxing rights and administration of taxes, especially with respect to non-resident taxpayers.

 

In her welcoming address, the Managing Partner of Punuka Attorneys & Solicitors, Mrs Elizabeth Idigbe said "that the advent of the internet, birthed prime opportunities for globalisation. The digital space in Nigeria, has witnessed immense growth over the years. In January 2022, Kepios Data Analysis reports that internet users in Nigeria rose by 4.5million".

 

She further added: "that globalisation has brought about digital trade, commerce and taxation. It has also resulted in major digital advancement, with the emerging issues on crypto currency-commerce and cross border digital trade".

 

"It has become imperative to examine incidental issues on taxing the digital economy as it presents the Nigerian Government with huge potentials, and at the same time, tax policy may be disincentives for the growth of digital business. This informs the theme of the annual lecture for this year", Mrs. Idigbe said.

 

This year's hybrid lecture is the 14th in the series, and it was attended by a worldwide audience.-This Day.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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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

 


 

 

 

 

 

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