Major International Business Headlines Brief::: 19 May 2022

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Major International Business Headlines Brief::: 19 May 2022 

 


 

 


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ü  Ukraine invasion could cause global food crisis, UN warns

ü  Leaky Gucci and Adidas 'sun umbrella' sparks China outcry

ü  Ratan Tata: Tycoon's ride in India's cheapest car wins internet

ü  India seeks to win public trust in crisis-hit Sri Lanka

ü  McDonald's and Wendy's sued for burger ads that mislead on size

ü  Rishi Sunak warns of tough few months as inflation soars

ü  Cost of living: Calls to bring benefit and pension rises forward

ü  Germany beer bottle shortage: Industry warns of 'tense' situation

ü  Rwanda: Inflation Spike - Consumers Tipped on Priority Spending

ü  Tanzania: Cashew Farmers to Get Free Agricultural Inputs

ü  Nigeria: Lagos Bans Motorcycles Operation in Six Lgas, Task Force Raids
Lekki

ü  Nigeria: As Nigeria Struggles With Growing Commodity Prices, UK's
Inflation Hits 40-Year High

ü  Uganda: Parliament Directs Govt to Terminate Vinci Coffee Deal

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Ukraine invasion could cause global food crisis, UN warns

The UN says around 20 million tonnes of grain are currently stuck in Ukraine
from the previous harvest

Russia's invasion of Ukraine could soon cause a global food crisis that may
last for years, the UN has warned.

 

Secretary-General Antonio Guterres said the war had worsened food insecurity
in poorer nations due to rising prices.

 

Some countries could face long-term famines if Ukraine's exports are not
restored to pre-war levels, he added.

 

The conflict has cut-off supplies from Ukraine's ports, which once exported
vast amounts of cooking oil as well as cereals such as maize and wheat.

 

This has reduced the global supply and caused the price of alternatives to
soar. Global food prices are almost 30% higher than the same time last year,
according to the UN.

 

Speaking in New York on Wednesday, Mr Guterres said the conflict - combined
with the effects of climate change and the pandemic - "threatens to tip tens
of millions of people over the edge into food insecurity followed by
malnutrition, mass hunger and famine".

 

"There is enough food in our world now if we act together. But unless we
solve this problem today, we face the spectre of global food shortage in the
coming months," he added.

 

He warned that the only effective solution to the crisis was reintegrating
Ukraine's food production, as well as fertiliser produced by both Russia and
Belarus, back into the global market.

 

Mr Guterres also said he was in "intense contact" with Russia and Ukraine,
as well as the US and the EU, in an effort to restore food exports to normal
levels.

 

"The complex security, economic and financial implications require goodwill
on all sides," he said.

 

His comments came on the same day the World Bank announced extra funding
worth $12bn (£9.7bn) for projects addressing food insecurity.

 

The move will bring the total amount available for such projects to more
than £30bn over the next 15 months.

 

Russia and Ukraine produce 30% of the world's wheat supply and - prior to
the war - Ukraine was seen as the world's bread basket, exporting 4.5
million tonnes of agricultural produce per month through its ports.

 

But since Russia launched its invasion in February, exports have collapsed
and prices have skyrocketed. They climbed even further after India banned
wheat exports on Saturday.

 

The UN says around 20 million tonnes of grain are currently stuck in Ukraine
from the previous harvest which, if released, could ease pressure on global
markets.

 

Media caption,

Watch: Ros Atkins on why the war in Ukraine is pushing up food prices - and
the likely impact on poorer countries

While the number of people facing food insecurity had been growing even
before the invasion, German Foreign Minister Annalena Baerbock, accused
Moscow of making a difficult situation even worse on Wednesday.

 

"Russia has launched a grain war, stoking a global food crisis," Berlin's
top diplomat said. "It is doing so at a time when millions are already being
threatened by hunger, particularly in the Middle East and Africa."

 

Meanwhile, US Secretary of State Antony Blinken said the world faced the
"greatest global food security crisis of our time" which had been
exacerbated by what he called Russian President Vladimir Putin's "war of
choice".-BBC

 

 

 

Leaky Gucci and Adidas 'sun umbrella' sparks China outcry

A parasol set to be sold in China by top western brands Gucci and Adidas for
11,100 yuan (£1,329) is causing an outcry for not keeping out the rain.

 

Criticism of the item the firms call a "sun umbrella" has gone viral on the
Chinese social media platform Weibo.

 

It comes as Gucci's website says it is "not waterproof and is meant for sun
protection or decorative use".

 

The parasol is part of a joint collection that is being promoted online
ahead of its release next month.

 

A hashtag on Weibo which translates to "the collaboration umbrella being
sold for 11,100 yuan is not waterproof," has so far had more than 140
million views.

 

One user called the parasol "a very big but useless fashion statement".

 

"As long as I'm poor, they won't be able to trick me into paying for this,"
another user said.

 

Others understood why the product may still be appealing.

 

"Those who are willing to pay use luxury goods to show what they are worth,"
a user wrote. "They don't care about practicality."

 

The parasol is set to be released on 7 June as part of a new collection by
luxury brand Gucci and sportswear giant Adidas.

 

Gucci and Adidas did not immediately respond to a BBC request for comment.

 

However, a Gucci spokesperson told Beijing-based magazine Caijing that the
product was "not recommended for use as an everyday umbrella".

 

They added that it had "good collector's value and is suitable for use as a
daily accessory".

 

China is a key market for leading luxury brands.

 

Last year, sales of luxury goods rose by 36% in the world's second largest
economy, according to consultancy Bain & Company.

 

Bain also predicted that China will become the biggest luxury goods market
within the next three years.-BBC

 

 

 

Ratan Tata: Tycoon's ride in India's cheapest car wins internet

Indian tycoon Ratan Tata is being praised on social media for travelling in
one of the world's cheapest cars.

 

The Chairman Emeritus of the Tata Group, Mr Tata is known for his
simplicity.

 

When he travelled in the Nano, which his firm launched in 2009 but ceased
production 10 years later, he revived the frenzy over the car.

 

It was launched amid great fanfare as a compact with the base model costing
just 100,000 rupees ($1,979; £1,366).

 

But after the initial success and euphoria, the brand began to lose out to
other manufacturers due to issues with production and marketing.

 

The first batch of 100,000 Nanos was sold through a lottery, with demand
exceeding supply. But the demand kept decreasing in subsequent years. Mr
Tata in 2012 admitted that mistakes were made with the launch of the Nano.

 

 

However, the Nano project has remained close to his heart and he's often
described it as "an affordable car for all Indians".

 

A bumpy ride for the world's cheapest car

But his ride in the Nano surprised many who pointed out that the man also
owns the firm that manufactures the Jaguar and Land Rovers. And his ride to
Mumbai's iconic Taj hotel, which is also owned by the Tatas, on Tuesday, was
described by many as a "masterclass" in simple living.

 

The video also brought back memories of the car that was once pitched as
"the most affordable car in the world" and took India by storm. Mr Tata also
talked about why the Nano was so special to him a few days ago on social
media.

 

 

Meanwhile, some reports suggest that the Tata group is planning to relaunch
the Nano as an electric car. Many Indian and global firms have been trying
to capture the growing electric car market, but experts say India still
needs to invest heavily in charging stations and supply-chain management to
make it a viable option for car makers.-BBC

 

 

 

India seeks to win public trust in crisis-hit Sri Lanka

For the past 15 years, India and China have vied for favourable diplomatic
and trade relations with Sri Lanka thanks to its strategic location in the
Indian ocean.

 

While popular perception indicated China had outpaced India, the recent
economic and political turmoil in Sri Lanka seems to have given India's
foreign policy a fresh lease of life in the island nation.

 

Sri Lanka is in the middle of its worst economic crisis since independence
from Britain in 1948. The country has been rocked by protests as people
seethe with anger over soaring prices and shortages of food and fuel.

 

Last week, Mahinda Rajapaksa resigned as prime minister after his supporters
clashed with peaceful protesters, sparking a deadly night of violence on 9
May.

 

Ranil Wickremesinghe, who took over as PM, said the country's economic
problems would get worse before getting better.

 

He appealed for outside financial help, including from India.

 

Sri Lanka down to last day of petrol, new PM says

How Sri Lanka's war heroes became villains

India has never been a major lender to Sri Lanka, unlike China which by the
end of 2019 owned a little over 10% of Sri Lanka's outstanding foreign debt
stock.

 

In early 2021, with the economic crisis looming, the Sri Lankan government
had also obtained a 10bn yuan ($148m; £119m) currency swap facility from
China to tackle its foreign exchange shortage.

 

But now, India is slowly emerging as one of the biggest providers of aid to
Sri Lanka.

 

Colombo has racked up $51bn (£39bn) in foreign debt. This year, it will be
required to pay $7bn (£5.4bn) to service these debts, with similar amounts
for years to come.

 

The country is also seeking emergency loans of $3bn to pay for essential
imports such as fuel.

 

While the World Bank has agreed to lend it $600m, India has committed $1.9bn
and may lend an additional $1.5bn for imports.

 

Delhi has also sent 65,000 tonnes of fertiliser and 400,000 tonnes of fuel,
with more fuel shipments expected later in May. It has committed to sending
more medical supplies too.

 

In return, India has clinched an agreement which allows the Indian Oil
Corporation access to the British-built Trincomalee oil tank farm.

 

India also aims to develop a 100MW power plant near Trincomalee.

 

Mixed feelings over Indian help

 

Many in Sri Lanka feel that India's growing presence in Colombo could mean a
"dilution of sovereignty".

 

"For the past year and a half, there has been a crisis in Sri Lanka and we
believe India has used this to serve its own interests. Yes, they gave some
credit, some medicines and food but [they are] not being a friend. There is
a hidden political agenda," said Pabuda Jayagoda of the Frontline Socialist
Party.

 

But others are more accepting of Indian help.

 

"Let's not blame India for our woes," says V Ratnasingham, an onion importer
in Colombo. "We are still getting onions from India at a decent price and
they are giving us credit in times of crisis. It's the Sri Lankan
government's failure that onion prices have trebled."

 

The suspicion over India's intentions right now comes against the backdrop
of Sri Lanka's ties to China.

 

After Mahinda Rajapaksa took charge as president in 2005, Sri Lanka's drift
towards China was believed to be a preference for a "more reliable partner
enabling domestic economic development".

 

More and more infrastructure projects - including the multi-billion dollar
Hambantota port and the Colombo-Galle expressway - were awarded to China.

 

Chinese President Xi Jinping's maiden visit to Colombo in 2014 was also a
clear diplomatic signal to Delhi.

 

How soaring cost of living is hitting Sri Lanka hard

Hambantota is nowadays commonly referred to as a "white elephant" which bled
Sri Lanka's economy. So are several other expensive projects which led Sri
Lanka into a huge Chinese debt-cycle.

 

Many anti-government protesters at Colombo's Galle Face Green are convinced
that this push to modernise fast led Sri Lanka to its current situation.

 

The country owes China $6.5bn and talks are being held on restructuring the
debt.

 

While China had earlier agreed to bolster Sri Lanka's foreign currency
reserves by swapping the rupee for the yuan, it has since signalled
displeasure over Colombo approaching the International Monetary Fund (IMF)
for help.

 

Noora Noor, 44, has been camping at Galle Face along with her family,
demanding President Gotabaya Rajapaksa, the younger brother of Mahinda,
resign.

 

"All Chinese money that came in was never accounted for, right? Why else
would my country have defaulted on payments? Now all supplies are coming
from India, so my question is who should we trust - China or India?" she
asks.

 

Still, there are some optimists who feel diplomacy will help.

 

Anti-government demonstrators take part in a protest near the President's
office in Colombo on May 10, 2022. - Fresh protests erupted in Sri Lanka's
capital on May 10, defying a government curfew after five people died in the
worst violence in weeks of demonstrations over a dire economic crisis

 

 

"Is Sri Lanka being placed on a collision course with China? If so, we need
to avoid such an eventuality due to other negative situations that may
arise. Balancing relationships is a must," Austin Fernando, Sri Lanka's
former high commissioner to India, wrote in The Island newspaper.

 

India's efforts

 

India has tried hard to match up to the growing Chinese clout in what it
sees as its neighbourhood.

 

After President Xi's visit in 2014, Indian Prime Minister Narendra Modi not
only visited Colombo the next year but also claimed to be "the best of
friends" while addressing the Sri Lankan parliament.

 

Arjuna Ranatunga, a former Sri Lankan cricketer who went on to become a
cabinet minister, recalls India being generous when he was in office.

 

"I was handling both the petroleum and port ministries in 2015 and we were
struggling to construct the Jaffna airport for a lack of funds. I went to
Delhi seeking help. PM Modi's government offered a subsidised loan and later
converted it into a grant. What else do you want from a neighbour?"

 

The return of the Rajapaksas to power in 2019, this time with Gotabaya
president and Mahinda prime minister, also made India realign its foreign
policy options and new agreements over oil and food commodities were signed
hastily.

 

State visits followed between Colombo and Delhi without eliciting much
response from China.

 

What's behind Sri Lanka's economic crisis?

The question of Sri Lanka's Tamil minorities and their demand for rights has
been at the forefront of the diplomatic negotiations with India.

 

After the civil war ended in 2009, India extended support to the Sri Lankan
government.

 

Sri Lanka is, however, yet to implement the 1987 India-Sri Lanka Peace
Accord which promised to devolve powers to all provinces, including where
the Tamils were in a majority.

 

The current economic crisis, however, has certainly leapfrogged over any
other political concerns between the two nations.

 

There has been a shift in public perception in Sri Lanka - which was seen as
anti-India and pro-China - thanks to consistent supplies from India of
essential commodities.

 

"India did lose out to China about 15 years ago but is trying hard to make a
decent comeback," says Bhavani Fonseka, a senior researcher at the Centre
for Policy Alternatives in Colombo.

 

"Ethnic minorities in Sri Lanka have always looked up to India to champion
their demands for equal rights, whereas the Sinhalese majority still has a
mixed perception," she says. "Some also worry over India's interference in
internal matters. But I feel the last few weeks have changed this
completely."BBC

 

 

 

McDonald's and Wendy's sued for burger ads that mislead on size

A New York man has a beef to pick with McDonald's and Wendy's: misleading
adverts he says make their burgers look much bigger than they actually are.

 

In a proposed class-action lawsuit, he accuses the fast food giants of
unfair and deceptive trade practices.

 

He is seeking $50m (£40.3m) in damages for himself and other similarly duped
customers.

 

The chains did not comment immediately on the case, which compiles many
complaints from social media.

 

Rival Burger King was hit with a similar lawsuit in Florida in March, by the
same law firms representing New Yorker Justin Chimienti.

 

While Burger King has yet to respond in court, an amended complaint shows
that more unhappy customers have signed onto the suit.

 

The companies' adverts are "unfair and financially damaging consumers as
they are receiving food that is much lower in value than what is being
promised", the complaints say.

 

The "actions are especially concerning now that inflation, food, and meat
prices are very high and many consumers, especially lower income consumers,
are struggling financially," they add.

 

Oatly ads banned over 'misleading' green claims

The lawsuit against McDonald's and Wendy's says the burgers in the marketing
are at least 15% larger than they are in real life. It includes some of the
reactions on social media calling out the firms for the discrepancy.

 

"It's looking a little sad... not like the picture," one YouTube reviewer,
cited in the lawsuit, said of Wendy's Bourbon Bacon Cheeseburger.

 

"It's going to be a small burger folks. I am just telling you straight up
what to expect so you won't be disappointed like me," said another.

 

Those kinds of comments are unlikely to be enough to win a case in US court,
according to Mark Bartholomew, law professor at the University of Buffalo in
New York.

 

He said a court would be looking for proof that customers were actually
fooled and that the adverts affected purchasing decisions.

 

"Both of those are an uphill battle for the plaintiff to prove," he said,
noting that the fast food companies could likely argue that the public
expects some exaggeration in a marketing campaign.

 

"My guess is that what they really want is a settlement and this will never
go to a full blown trial."

 

In the UK, regulators banned a Burger King ad in 2010, upholding complaints
that the chain's chicken sandwiches were much smaller than advertised.

 

But it's relatively unusual to see this kind of case in the US, where many
advertising disputes are between competitors and resolved quietly through an
industry body, said Deborah Gerhardt, law professor at the University of
North Carolina-Chapel Hill.

 

"A lot of the disputes never even come to light," she added.-BBC

 

 

 

Rishi Sunak warns of tough few months as inflation soars

Chancellor Rishi Sunak has warned the next few months "will be tough" after
it was revealed prices are rising at the fastest rate for 40 years.

 

In a speech to businesses, he said the government was "ready to do more" to
help households facing soaring energy, fuel and food costs.

 

He also said he would cut taxes for businesses to encourage them to invest.

 

It comes as a think tank said the poorest were being hit hardest by steep
rises in energy bills.

 

UK inflation jumped to 9% in the 12 months to April, up from 7% in March and
the highest level it has reached since 1982.

 

Inflation is the rate at which prices are rising. For example, if a bottle
of milk costs £1 and that rises by 9p, then milk inflation is 9%.

 

April's jump in inflation came as millions of people saw an unprecedented
£700-a-year increase in energy costs last month.

 

At the annual CBI dinner, the chancellor told businesses the economic
situation was "extremely serious", with the country facing "a perfect storm
of global supply shocks", including the impact of the war in Ukraine and
lockdowns in China.

 

"There is no measure any government could take, no law we could pass, that
can make these global forces disappear overnight," he said.

 

"The next few months will be tough. But where we can act, we will."

 

However, he added that he "cannot pretend" it will be easy to cut costs for
families.

 

Mr Sunak also called on businesses to boost investment and training in order
to grow the economy and help ease the cost of living crunch.

 

"And as I've said previously, our firm plan is to reduce and reform your
taxes to support you to do all three of those things," he said.

 

"That is the path to higher productivity, higher living standards, and a
more prosperous and secure future."

 

The chancellor and business leaders agreed on one thing - the economy is
taking a turn for the worse.

 

Mr Sunak conceded things are going to be tough in the months ahead and the
CBI president Karan Bilimoria said firms were worried about stalling growth,
rampant inflation and high taxes.

 

But while the chancellor said his response to the cost of living crisis
would evolve, business leaders said waiting for an autumn Budget would be
too late.

 

The chancellor challenged business to do their part by increasing investment
levels which were lower than other developed economies.

 

Business leaders at the event felt there were mixed messages from the
government.

 

The president of the CBI pointed to the highest tax burden in 70 years with
corporation tax and national insurance contributions set to rise further
next April.

 

With business and consumer confidence evaporating fast, their message was if
you are going to do something, do it now.

 

2px presentational grey line

Around three quarters of the rise in inflation in April came from higher
electricity and gas bills, according to the Office for National Statistics
(ONS).

 

A higher energy price cap - which is the maximum price per unit that
suppliers can charge customers - kicked in last month, meaning homes using a
typical amount of gas and electricity are now paying £1,971 per year on
average.

 

Fuel prices have also surged, with the RAC motoring group warning on
Wednesday that petrol and diesel prices have hit new records of £1.68 and
£1.81 per litre respectively.

 

The prices of most other goods and services have risen as well, the ONS
said, while wages are failing to keep pace with inflation and falling in
real terms.

 

Inflation chart

Up until now households of all incomes had faced similar rates of inflation,
but the poorest are now being hit hardest by rising prices because they have
to spend far more of their household budgets on gas and electricity, the
Institute for Fiscal Studies said.

 

Retail Economics, a research consultancy, said the poorest people were
experiencing a drop of £59 per month in their discretionary spending budgets
compared to this time last year.

 

Citizens Advice said "the warning lights could not be flashing brighter" and
the government needed to offer households more support.

 

"There are desperate stories behind these figures," Dame Clare Moriarty, the
charity's chief executive, said. "People washing in their kitchen sinks
because they can't afford a hot shower; parents skipping meals to feed their
kids; disabled people who can't afford to use vital equipment because of
soaring energy bills."

 

Health analyst Cheryl Holmes, a mother-of-two, said she was trying to keep
her living costs "as low as possible" by spending less on food and clothes,
and cancelling TV subscriptions.

 

"I've already for several years been turning the lights off in each room,
setting the heating on a timer, making sure I'm using a full dishwasher and
washing machine and I'm running out of ideas.

 

"It's a battle and it seems like there's not really much more that I can
do."

 

The Bank of England has warned the UK's cost crunch could leave the country
on the brink of recession, with inflation peaking at over 10% later this
year due to further expected rises in energy bills.

 

The rising cost of living is already seeing people spending less money and
cutting down on car journeys due to high fuel costs. And it is impacting the
economy, which shrank in March.

 

The Bank has raised interest rates four times since December to try to cool
prices, but MPs have accused it of not doing enough.

 

This week Governor Andrew Bailey defended its response, insisting inflation
was being driven by global forces that limited the Bank's room for
manoeuvre.

 

However the UK now has the highest rate of inflation (9%) of any G7 country,
including Germany (7.4%) and France (4.8%).-BBC

 

 

 

 

Cost of living: Calls to bring benefit and pension rises forward

Ministers are facing growing calls to bring forward large increases in
benefits and the state pension which will be paid from next April.

 

Charities want benefits to increase now to help people struggling with the
cost of living, particularly energy bills.

 

A well-established system means the annual increase in benefits will match
this September's inflation rate - but will only be paid from April 2023.

 

The Treasury says there are technical constraints in making earlier
payments.

 

Debt charity Stepchange said the government needed to address the shortfall
between people's costs and their incomes.

 

Richard Lane, from the charity, said: "While we don't doubt that
policymakers are aware of the problem, at present the measures being taken
to plug the gap are simply not sufficient to help many households avoid
incurring debt as a result of the rising cost of living."

 

Last month, Citizens Advice called on ministers to increase benefits in line
with the current rate of inflation.

 

How the system works

State benefits including universal credit, older benefits such as disability
support and jobseeker's allowance, and the state pension increase once a
year, in April, to match the rising cost of living.

 

They are pegged to the inflation rate the previous September, although the
state pension can also be linked to higher earnings or 2.5% - known as the
triple lock.

 

Benefits and the state pension went up by 3.1% in April this year, to match
the inflation rate in September 2021.

 

Inflation chart

At present, that is some way behind the rate at which prices are rising,
which was at a 40-year high of 9% in April according to the latest official
figures.

 

Forecasts suggest the rate of price rises could climb by this September. In
turn, that would mean a rise in benefits and the state pension of close to
10% in April 2023.

 

In reality, people are paying higher prices for things now, but will receive
higher benefits later.

 

"Intervention is urgently needed to catch people before they fall into
crisis in the months to come because our social security system should be
able to provide the protection to weather this storm," said Michael Clarke,
head of information programmes at the charity Turn2us.

 

"The government must act as a matter of priority and ensure that as a
minimum, benefit levels are increased to meet the true cost of living and
they assess their own practices of benefit deductions so that money is not
taken away from people at a time where they need it most."

 

Should the system change?

Economists at leading think tanks said there would be little effect on the
public finances - and the £250bn welfare bill - if the Treasury decided to
bring forward some or all of that increase.

 

"There is pressure on the government to fast-track the rise," said Robert
Joyce, deputy director at the Institute for Fiscal Studies, an economic
research group. "There has been a reluctance to do something so far."

 

Karl Handscomb, senior economist at the Resolution Foundation, said that
keeping people waiting until next April was "a recipe for more debt".

 

"The main thing is the need to provide more support for those highly reliant
on benefits," he said.

 

He said some people on the state pension would be among the most vulnerable
to rising energy bills in the coming winter.

 

Pensioners Mike Gibbons 75 and his wife Ev, 72 have six daughters between
them but the rising cost fuel makes visiting them very expensive.

 

At the same time, the Southampton-based couple are grappling with an £88
monthly rise in energy bills after their provider PurePlanet went bust and
they moved to Shell.

 

Mr Gibbons says that each 450-500 mile trip to see some of their family in
Newcastle-under-Lyme now costs £25 more in petrol.

 

Mrs Gibbons said: "It's making it more difficult to see our family on a
regular basis because you just can't afford it anymore the money's not
there. We just can't see our children as much as we'd like to."

 

Imran Hussain, director of policy and campaigns at charity Action for
Children, said that "more and more families are starting to run out of road
as they face inflation at its highest level in a generation, spiralling
energy bills set to rise further and an entirely inadequate benefits
system".

 

He said: "They need help with meeting basic living costs now, not warm words
hinting at action in the future."

 

Why has no change been made?

There are no plans in the Treasury to increase benefits or the state pension
before next April.

 

One of the key reasons for that, according to Chancellor Rishi Sunak, is
that the welfare systems involved made it technically difficult to change
the uprating and paying of older benefits before April.

 

It is possible to alter universal credit payments relatively quickly, as was
done during the pandemic. Other payments such as disability support could
take months to change.

 

Mr Joyce said that IT issues were no excuse for inaction.

 

"Even if they need a few months' notice, that is better than waiting another
year," he said.

 

Mr Handscomb, from the Resolution Foundation - which focuses on people on
lower incomes, said: "If they get started now, they can do it before the
next energy price rise in October."

 

Call to halt move to universal credit

Student loan interest rate to hit 12% in England

He said that the benefits system was the best way to get money to those who
needed it but, even if that proved impossible, there were other ways to help
people out. This targeted support could include paying more to aid people to
pay their energy bills.

 

The Treasury said such help was already in place.

 

"We understand that people are struggling with rising prices, and while we
can't shield everyone from the global challenges we face, we are supporting
British families to navigate the months ahead with a £22bn package of
support," a government spokesman said.

 

"That includes saving the typical employee over £330 a year through a tax
cut in July, allowing people on the universal credit taper rate to help
people keep more of the money they earn - benefiting over a million families
by around £1,000 a year, and providing millions of households with up to
£350 each to help with rising energy bills."-BBC

 

 

 

 

Germany beer bottle shortage: Industry warns of 'tense' situation

German breweries are warning there could be a shortage of beer bottles this
summer amid rising production costs and a shortage of lorry drivers.

 

The situation is "extremely tense", the chief executive of the German
Brewers' Federation told German newspaper Bild.

 

The shortage of glass bottles will mainly affect small- and medium-sized
breweries, an industry expert said.

 

Brewers are having to pay 80% more for new glass bottles than they did a
year ago. The cost of beer is also rising.

 

One of the reasons behind the shortage is a hike in energy prices which is
causing the price of glass bottle production to increase, a glass industry
spokesperson told Bild.

 

In addition, Holger Eichele of the German Brewers' Federation said a lack of
lorry drivers was making it harder to maintain supply chains.

 

As a result, he said the cost of new glass bottles had nearly doubled in the
last year.

 

It follows warnings that the cost of German beer could rise by up to 30%,
also due largely to the increase in energy prices.

 

The shortage of bottles is likely to hit smaller breweries the hardest,
because the bigger companies are typically supplied first.

 

Mr Eichele said the best thing Germans could do was to return glass bottles
to retailers as quickly as possible, advising consumers not to "hoard
empties in the basement".

 

Glass bottles, which are common in Germany, are sold with a small deposit,
and beer drinkers are expected to bring them back to the shop when getting
their next round.

 

Cans, used elsewhere in the world, are far less common and many breweries
use customised bottles that are tricky to replace.-BBC

 

 

 

Rwanda: Inflation Spike - Consumers Tipped on Priority Spending

Food and commodity prices have been gradually rising over the past months,
heavily weighing down purchasing power and to cope with the rise, economists
advise the public to adopt a consumption habit of priority spending.

 

Currently, the inflation rate has surpassed the central bank's upper bound
of 8 per cent. By April, it had shored up to 9.9 per cent up from 7.5 per
cent in March, according to the figures from the National Institute of
Statistics of Rwanda (NISR).

 

Inflation is an increase in the level of prices of the goods and services
that households buy. Its rise naturally impacts the population in that one
spends more on basic food basket with the income most likely staying the
same.

Straton Habyarimana, an economic analyst says that to protect oneself from a
deteriorating lifestyle as purchasing power continues to dip, "consumbers
have to set up a priority list of essential commodities that are needed
daily, and forgo the rest which they would unnecessarily buy at high
prices."

 

Take sugar as an example, he said, you can start developing a habit in your
household of taking half the quantity or no sugar at all. "Things that have
no additional value or you can live without can be put on hold."

 

Besides that, he said that with fuel increase which has a crosscutting
impact on the economy, people should learn how to consume it sparingly and
familiarize themselves with alternative means of transport.

 

"For instance, walking where possible is also beneficial for one's health,"
he added.

Currently, the pump for petrol has increased to Rwf 1,359 per litre from
1,256 and Diesel was increased from 1,201 per litre to Rwf 1,368.

 

Diesel being the most used in different economic activities including public
transport, industries and logistics in view of freight transporters across
the country, it translates into the increase in cost of goods.

 

Another option, Habyarimana cited, consumers should monitor the market and
know when the price of a certain commodity has lowered, so they can buy in
large quantities for future consumption when prices might increase again.

 

Public experience

 

Schelley Agasaro, a resident in Kacyiru sector, said the issue of rising in
commodity prices is a concern that is leaving many stranded.

 

"On top of the rising prices, there is a shortage of products. This affects
people in many ways especially if you have an irregular source of income and
can't keep up with the continued rise in prices," she said.

 

She added: "If you ask around, some people are now stealing not because it
is a habit but out of hunger."

 

Marie Nyiransabimana, a vendor in Kimironko Sector, said that she has been
incurring losses by making little or no profit from her sales and the
reduction in the number of her clientele.

 

"Sometimes you are forced to sell perishable products at the same price you
bought them because even customers themselves can't afford the price, for
instance potatoes and plantains will become stale in few days unless someone
buys them" she said.

 

Nyiransabimana said that some people have reduced the quantity of things
they used to buy, some from three to two meals a day, and the government
needs to intervene in this issue.

 

What the government can do

 

Habyarimana said the government should consider financial intervention for
people who are in category D and E and those who have fallen back under
poverty line because they are the most affected.

 

"If someone worked in VUP (Vision Umurenge Program) programmes to earn
Rwf2000 per day for the whole household, as inflation continues to rise,
that amount will no longer be able to feed them," he said.

 

The government also needs to continue monitoring the trend and take
actionable measures with proper timing, he added.

 

Governor John Rwangombwa of the Central Bank noted that things would have
been worse for commodity prices had the government not intervened in terms
of subsidizing public transport and fuel prices.

 

"What the government does can only reduce the impact but not fully address
it because this is beyond our control as it derives from global pressures.
But we are sure that prices will come back down by next year."

 

The Central Bank predicts 2022 average inflation to be up to 9.2 per cent
before coming down to 7.5 per cent next year.

 

By press time, efforts to secure a comment from the Ministry of Trade and
Commerce were futile.-New Times.

 

 

 

Tanzania: Cashew Farmers to Get Free Agricultural Inputs

THE government has launched an exercise to supply free agricultural inputs
to cashew farmers across the country.

 

The initiative comes after President Samia Suluhu Hassan endorsed 61bn/- to
purchase cashew inputs as incentives to farmers in cashew producing regions
to improve production of the crop.

 

At the launching event, Mtwara Regional Commissioner Brigadier General Marco
Gaguti said a total of 25,000 tonnes of sulphur and 1.5 million litres of
liquid inputs have been purchased.

 

"The farm inputs would be supplied for free to cashew nuts farmers in the
country as per President's directives," he said, thanking President Samia
for walking her talk to support farmers improve cashew production.

The RC called on all the parties involved, including the government
officials in the regions, districts, wards and villages to closely monitor
and oversee the supply process to ensure farmers receive the inputs on time
and according to the required amounts.

 

He asked the cashew cooperative unions to exercise honesty and transparency
in the process of applying the inputs by showing the exact amount to be
issued to each farmer and number of farmers ought to receive the inputs.

 

"The cooperative unions should first send the list of farmers to receive the
inputs and the exact amount each and every farmer will receive," he said and
warned the cooperative unions against interfering with the distribution
process.

 

On the other hand, Brig Gen Gaguti asked the farmers to be vigilant when
receiving the inputs in order to avoid unnecessary inconveniences that may
occur.

 

"I call upon farmers to make sure they are given a distribution voucher
before they receive the inputs, out of that they should not receive the
inputs," he said.

 

Chairman of the Cashew Board of Tanzania (CBT) Brigadier General (rtd)
Aloyce Mwanjile said a total of 1336 out of 25,000 purchased tonnes of
sulphur and 85 per cent of liquid inputs have been received in the
warehouses.

 

He said CBT formed a committee to monitor and oversee the whole process of
receiving and distributing the inputs to farmers as planned.

 

He vowed stern measures against any cooperative unions and officials who
would be involved in distribution fraud. He said the inputs have got a
special logo and batch numbers insisting on the need for all the parties
involved in the distribution process to exercise honesty and transparency in
the whole process.-Daily News.

 

 

 

Nigeria: Lagos Bans Motorcycles Operation in Six Lgas, Task Force Raids
Lekki

The Lagos State Government yesterday banned commercial motorcycles,
popularly called Okada, from operating in six Local Government Areas
(LGAs)of the state.

 

According to the Governor of Lagos State, Babajide Sanwo-Olu, who announced
the ban during a meeting with police chiefs in the state, it is "total and
indefinite."

 

The affected LGAs are: Ikeja, Surulere, Eti-Osa, Lagos Mainland, Lagos
Island, and Apapa.

 

He said: "After a critical review of our restriction on Okada activities in
the first six LGAs where we restricted them on February 1, 2020, we have
seen that the menace has not abated. We are now directing a total ban on
Okada activities across the highways and bridges within these six local
government and their local council development areas, effective from June 1,
2022."

He explained that the ban would be extended to other areas of the state
within a short while.

 

"This is a phased ban we are embarking on this period, and we expect that
within the short while when this ban will be enforced, Okada riders in other
places where their activities are yet to be banned can find something else
to do," the governor added.

 

Sanwo-Olu, who maintained that the recent move is in line with the Lagos
State Transport Sector Reform Law of 2018, called on the police to enforce
the ban without compromise.

 

The governor advised residents of the state patronising Okada riders on the
highways to embrace alternative means of transportation provided by the
government. This, he said, becomes important, as motorcycles are an unsafe
mode of transportation.

"We have provided Last-Mile buses in the affected areas; they are working
and effective. We also have medium-capacity buses and high-capacity buses
working in these areas. Before the end of the year, we are also bringing the
rail along these corridors with their terminals. We have provided jetties as
well to provide alternatives," Sanwo-Olu reiterated.

 

"We will not sit back and watch criminally-minded people use that mode of
transportation (motorcycles) to perpetrate crimes and criminality in Lagos.
Lives are being lost on a daily basis, preventable accidents are happening
every day and the riders are not respecting any of our traffic laws.

 

"The situation has led to a complete breakdown of law and order. This ban
has come to stay and we will not tolerate any weakness in enforcement."

Meanwhile, the Lagos State Taskforce has continued with its mob up exercise
to rid the Lekki axis and the entire state of okada operators, who have
remained adamant to the state government's warning.

 

This exercise is in continuation of the total clamp down on okada operators
in the state following the recent killing of a sound engineer, Mr. David
Imoh by suspected commercial motorcyclists.

 

Leading yesterday exercise, the Chairman of Lagos State Task Force, Chief
Superintendent of Police (CSP) Shola Jejeloye, stormed the axis in a sting
operation at midday.

 

He seized 115 bikes for flouting the state traffic laws of operating on
restricted routes and plying the state's highways.

 

Jejeloye pledged that the agency would make do of its promise by ensuring
that the illegal business carried by these operators will be frustrated till
they obey the laid down laws.

 

"This operation will be a continuous one not just in Lekki but in every
other part of the State. We will make sure that their activities are
truncated till they abide by the rules," he warned.

 

However, CSP Jejeloye made an appeal to Lagosians to join efforts with the
government in ensuring that the fight to restore and maintain sanity on
Lagos roads is won collectively for the betterment of all.

 

"Restoring sanity is not an easy task, neither is it a job for one man or
the Agency alone. If we join hands, we will achieve our desired goals of
ensuring that no one takes the laws into their hands and gets away with it,
especially not in a cosmopolitan city like Lagos," he said.

 

He also promised to raid black spots and hideouts of bike operators within
the axis and other parts of the state within the coming weeks.

 

"More enforcement for.compliance.activities will be carried out in the
coming days under the banner of Operation Kogberegbe in order to amplify
their shady activities in the State," Jejeloye said.-This Day.

 

 

 

Nigeria: As Nigeria Struggles With Growing Commodity Prices, UK's Inflation
Hits 40-Year High

Inflation in the United Kingdom soared to an eye-watering 40-year high
yesterday with fears things were only going to get worse as the government
faces massive pressure to come up with cost-of-living aid.

 

The headline Consumer Price Index (CPI) rate rose to 9 per cent in April -
up from 7 per cent in March and the peak since 1982, when Margaret Thatcher
was Prime Minister, the Falklands War was about to start, and unemployment
was running at 3 million.

 

The Bank of England expects the annual rate will get even worse, peaking at
10.25 per cent during the final quarter of the year amid the biggest squeeze
on incomes since records began in the 1950s. That would be more than five
times its 2 per cent target, the Daily Mail reported.

Inflation has long been seen as one of the biggest threats to economies. In
extreme examples, it has spiralled out of control and sparked panic in
several countries.

 

The German Weimar Republic effectively collapsed after the value of the mark
went from around 90 marks to the US dollar in 1921 to 7,400 marks to the
dollar in 1921.

 

In Zimbabwe between 2008 and 2009 the monthly inflation rate was estimated
to have reached a mind-boggling 79.6billion per cent.

 

Although inflation has faded in the minds of Britons who have become used to
ultra-low interest rates and stable prices, it caused chaos in the country
in the 1970s.

 

However, UK's Chancellor of the Exchequer, Rishi Sunak, insisted that
'countries around the world are dealing with rising inflation', and he
'stands ready' to offer further support to Britons - while stressing that he
cannot 'protect people completely' from pain.

The skyrocketing UK inflation rate is happening as Nigeria's own index rose
to 16.82 per cent in April, recording the highest jump in eight months,
according to the National Bureau of Statistics (NBS).

 

But many Nigerians think that the figure could be higher, given Nigeria's
perceived penchant for interfering with official data.

 

Last month, the consumer price index, which measures the rate of increase in
the price of goods and services, jumped amid increases recorded in food and
energy prices.

 

On Monday the Nigeria's statistics bureau stated that year-on-year, the rate
was 1.3 per cent points lower compared to 18.12 per cent recorded in April
2021. However, the new annual rate was the highest since September 2021
(16.63 per cent).

 

According to the NBS, urban inflation rate increased to 17.35 per cent
(year-on-year) in April 2022 from 18.68 percent recorded in April 2021,
while the rural inflation rate increased to 16.32 percent in April 2022 from
17.57 percent in April 2021.

The urban index, it said, rose to 1.78 per cent in April 2022, up by 0.02
from the rate recorded in March 2022 (1.76), while the rural index also rose
to 1.74 per cent in April 2022, up by 0.01 from the rate that was recorded
in March 2022 (1.73) per cent.

 

But in the UK, opposition parties are urging an emergency budget to slash
Value Added Tax (VAT) and help struggling Britons who are 'on the brink'.

 

Experts warned that 'this is what Stagflation looks like', as the UK economy
stalls and teeters towards recession after the pandemic and Ukraine war
caused chaos.

 

Analysts said another interest rate hike next month is now 'inevitable',
potentially to 1.25 per cent, as the Bank of England scrambles to stop
prices spiralling out of control, Daily Mail reported.

 

But the pound still dipped further against the US dollar as investors priced
in the increasingly grim situation. The unrelentingly 'miserable' news
continued with pump prices reaching new records, of 167.64p for petrol and
180.88p for diesel.

 

In a further headache for ministers, the RPI measure of inflation has
rocketed even higher to 11.1 per cent in April - with unions threatening
strikes unless that is used as the basis for pay rises in the public sector.

 

United chief Sharon Graham threatened strike action against employers who do
not give pay rises in line with inflation, saying calls for wage restraint
should be directed at chief executives.

 

The average cost of a litre of petrol at UK forecourts on Tuesday was
167.6p, higher than the previous record of 167.3p set on March 22 - the day
before Mr Sunak announced a 5p cut in fuel duty. Diesel prices have risen to
180.9p.

 

Tories have warned the Bank of England not to overreact now by pushing up
interest rates too quickly, dooming the country to recession. The average UK
house price jumped by £24,000 in the year to March, according to official
figures.

 

Chancellor Sunak, in a statement after the figures yesterday blamed the
rising energy prices. "Today's inflation numbers are driven by the energy
price cap rise in April, which in turn is driven by higher global energy
prices.

 

"We cannot protect people completely from these global challenges but are
providing significant support where we can, and stand ready to take further
action.

 

"We're saving the average worker £330 a year through reducing National
Insurance Contributions, changing Universal Credit to save over a million
families around £1,000 a year, and providing millions of families with £350
each this year to help with their energy bills," he said.

 

Trade Secretary Anne-Marie Trevelyan warned there are likely to be a 'couple
of bumps to get through' before inflation settles down. "This is something
we have to tackle across the board," she said.

 

Experts have warned that the poorest households are bearing the brunt of
rising prices, with analysis by economic think tanks estimating they face a
rate closer to 11 per cent.-This Day.

 

 

 

Uganda: Parliament Directs Govt to Terminate Vinci Coffee Deal

Kampala, Uganda — Parliament's Committee on Trade has directed government to
terminate an agreement it signed recently with Uganda Vinci Coffee Company
Limited. Parliament has described the agreement as illegal and demanded that
"officials who committed Government to such illegalities should be penalized
as a deterrent mechanism to stop similar occurrences in future."

 

Mbarara City South MP Mwine Mpaka, chairman of Parliament's committee on
trade, read the full report.

 

"The government is directed to terminate this agreement and report to
Parliament, within 6 months from the date of adoption of this report," Mpaka
said, adding that "the agreement infringes and reverses the National Coffee
Policy specifically the principle that coffee production, processing,
marketing shall be undertaken by the private sector as individual farmers,
farmer organizations."

 

Debate on the report is ongoing.-Independent (Kampala).

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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