Major International Business Headlines Brief::: 21 November 2022

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Major International Business Headlines Brief::: 21 November 2022 

 


 

 


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ü  Disney: Bob Iger returns to head the entertainment giant

ü  FTX crypto exchange owes biggest creditors $3.1bn

ü  Banksy accuses clothing brand Guess of 'helping themselves' to his
artworks

ü  Musk lifts Donald Trump's Twitter ban

ü  Jeremy Hunt has no plan for growth, says CBI boss

ü  Is this really the end of Twitter?

ü  World Cup 2022: Alcohol sales banned at World Cup stadiums in Qatar

ü  Strikes to hit airports and ports over Christmas

ü  Higher taxes look to be here to stay, says IFS

ü  Solve worker shortages with immigration - CBI boss

ü  Uganda: Employees Urged to Embrace Digitisation as Workplace Environment
Changes

ü  Nigeria: History As Buhari Supervises Crude Oil Drilling in the North

ü  Tanzania: Resolve Road Project Snags in Seven Days, VP Orders

ü  Nigerian Lawmakers Move to Block Reckless Spending By Revenue-Generating
Agencies

ü  Mozambique Makes First Export of Liquefied Natural Gas

 

 


 <mailto:info at bulls.co.zw> 

 


 

Disney: Bob Iger returns to head the entertainment giant

Former Disney boss Bob Iger, who headed the entertainment giant for 15
years, is returning to lead the firm.

 

He replaces Bob Chapek, who took over as chief executive in February 2020.

 

Disney shares have fallen by more than 40% this year and the company has
poured billions of dollars into its loss-making streaming service Disney+.

 

Mr Iger's decision to step down in 2020 came as a surprise, after he had
driven several major takeovers and launched Disney's streaming network.

 

Susan Arnold, who heads the company's board, said in a statement that Mr
Iger was "uniquely situated" to take Disney through "an increasingly complex
period of industry transformation."

 

Mr Iger has agreed to hold the post for two years in which time he aims to
find a successor to lead the company.

 

"I am extremely optimistic for the future of this great company and thrilled
to be asked by the Board to return as its CEO," Mr Iger said.

 

During his decade and a half as chief executive Disney bought animation
studio Pixar, comic book company Marvel, the home of Star Wars LucasFilm and
Rupert Murdoch's 21st Century Fox.These deals, along with the launch of the
Disney+ streaming platform and amusement park openings helped the company's
market value increase five-fold during his time in charge.

 

In September, it was announced that Mr Iger was one of the last honorary
knights to be approved by the late Queen Elizabeth II, for his contribution
to UK/US relations.

 

Mr Iger has replaced Mr Chapek, who was Disney's chief executive for less
than three years, with immediate effect.

 

"We thank Bob Chapek for his service to Disney over his long career,
including navigating the company through the unprecedented challenges of the
pandemic," Ms Arnold said.

 

Earlier this month, the company said Disney+ had lost nearly $1.5bn (£1.3bn)
in the three months to the end of September.

 

However, the service added more than 12 million subscribers during the time.

 

Disney now has more than 235 million subscriptions across its three
streaming platforms, which also include the sports-focused ESPN+ and wider
entertainment site Hulu.

 

Netflix, by comparison, has about 223 million subscribers.

 

Mr Chapek also faced pressure over his response to Florida's controversial
"Don't Say Gay" bill.

 

In March, he apologised for his "painful silence" on the sex education bill
that critics had said would isolate LGBT youth.-BBC

 

 

 

FTX crypto exchange owes biggest creditors $3.1bn

Cryptocurrency exchange FTX owes its 50 largest creditors almost $3.1bn
(£2.6bn), according to a court filing.

 

The embattled firm, which filed for bankruptcy in the US last week, says it
owes about $1.45bn to its top 10 creditors, but has not named any.

 

The collapse of the world's second largest crypto exchange shook confidence
in the already troubled cryptocurrency market.

 

It also led to exchange boss Sam Bankman-Fried to step down.

 

FTX's previous bankruptcy filings revealed more than one million people and
businesses could be owed money following its collapse.

 

On Saturday, FTX said it had launched a review of its global assets and was
preparing for the sale or reorganisation of some businesses.

 

A court hearing before a US bankruptcy judge has been set for Tuesday.

 

It is unclear how much people who have funds in the exchange will get back
at the end of bankruptcy proceedings, though many experts have warned it may
be a small fraction of what they put into the firm.

 

Last week, new FTX chief executive John Ray hit out at the way the failed
crypto exchange was run, saying he had never "seen such a complete failure
of corporate controls".

 

Mr Ray, who replaced Mr Bankman-Fried, criticised a "complete absence of
trustworthy financial information".

 

Mr Bankman-Fried told the Vox news website he regretted filing for
bankruptcy, saying the decision had largely taken financial matters out of
his control. He also expressed disdain for financial regulators.-BBC

 

 

 

Banksy accuses clothing brand Guess of 'helping themselves' to his artworks

Banksy has hit out at clothes retailer Guess, claiming the company has used
his designs without permission.

 

The graffiti artist posted a photo of the Regent Street store in London, and
suggested shoplifters should visit.

 

He wrote on Instagram: "They've helped themselves to my artwork without
asking, how can it be wrong for you to do the same to their clothes?"

 

The shop featured Banksy's Flower Thrower graffiti plus clothes bearing his
images. Guess has not commented.

 

The US clothing brand has advertised a new collection "with graffiti by
Banksy".

 

The company said the collection was created in collaboration with
Brandalised, which licenses designs by graffiti artists.

 

After the artist posted his message encouraging shoplifting, a criminal
offence, Guess closed the store to the public, placed security outside and
covered up the window display. Staff in the shop declined to speak to the
BBC.

 

Speaking last month about the collection, Guess chief creative officer Paul
Marciano said: "The graffiti of Banksy has had a phenomenal influence that
resonates throughout popular culture.

 

"This new capsule collection with Brandalised is a way for fashion to show
its gratitude."

 

Copyright lawyer Liz Ward, founder of Virtuoso Legal, said Guess "appear to
have legitimately sourced the Banksy artwork via a third party, namely
Brandalised, who say they have rights to commercialise and use Banksy's
artwork on goods".

 

She said: "It isn't known if Banksy approved or even knew about this deal.
If he did know about it, then perhaps his comments are there to create some
kind of guerrilla marketing campaign. If he didn't know about it, then he
must be quite annoyed, especially as such mainstream companies and brands
don't accord with his anti-establishment views.

 

'Not right to encourage shoplifting'

"The short point is that Banksy should be pursing Brandalised and or Guess
for infringement of his work. However, given she/he wants to remain
anonymous, that may well be impossible."

 

Copyright infringement is "extremely serious and can cause long term
commercial damage", but is normally a civil offence, she added - whereas
shoplifting is a criminal offence.

 

"Whatever the rights and wrongs of this, it isn't right to encourage
shoplifting per se."

 

Banksy's representatives declined to comment further, while Brandalised has
also not commented.

 

Earlier this week, Banksy won an appeal to allow him to keep the trademark
of one of his most famous images, a monkey wearing a sandwich board, at the
EU Intellectual Property Office.

 

 

He also revealed on Thursday that he had visited Ukraine to create seven new
pieces.

 

His artwork included a woman in rollers and a gas mask holding a fire
extinguisher, and a Vladimir Putin lookalike being thrown to the floor by a
child in a judo match.-BBC

 

 

 

 

Musk lifts Donald Trump's Twitter ban

Twitter's new owner Elon Musk has said Donald Trump's account has been
reinstated after running a poll in which users narrowly backed the move.

 

"The people have spoken," tweeted Mr Musk, saying that 51.8% of more than 15
million Twitter users voted for the ban to be lifted.

 

But the former US president may not return to the platform, earlier saying:
"I don't see any reason for it".

 

His account was suspended in 2021 due to the risk of incitement of violence.

 

Twitter's previous management acted just days after Donald Trump's
supporters stormed the US Capitol in Washington DC on 6 January.

 

Hundreds of rioters entered the complex as the US Congress attempted to
certify Joe Biden's victory in the presidential election. The ensuing
violence led to the deaths of four civilians and a police officer.

 

Soon after the riots, Donald Trump's Facebook, Instagram and YouTube
accounts, which all had tens of millions of followers - were also suspended.

 

Several months later, he launched his own social media platform, Truth
Social.

 

Earlier this week, the Republican announced that he would once again run for
the US presidency in 2024.

 

Mr Musk, the world's richest man, took control of Twitter in October in a
$44bn (£37bn) deal.

 

He immediately embarked on a series of radical changes within the social
media giant, amid concerns that he might loosen Twitter's regulations on
hate speech and misinformation.

 

With just over a week before the US midterm elections on 8 November, he
responded to questions about whether he would reinstate Mr Trump's account
by tweeting: "If I had a dollar for every time someone asked me if Trump is
coming back on this platform, Twitter would be minting money!"

 

Earlier this week, he told employees that the company's office buildings
would be temporarily closed, with immediate effect.

 

The announcement comes amid reports that large numbers of staff were
quitting after Mr Musk called on them to sign up for "long hours at high
intensity" or leave.

 

Donald Trump knew this poll was significant - even though his official
position is that he doesn't want to return to Twitter.

 

He urged his followers on Truth Social to take part in the poll. "Vote now
with positivity, but don't worry, we aren't going anywhere. Truth Social is
special", he said.

 

It's an odd statement. If Mr Trump isn't thinking of returning, why urge his
followers to vote?

 

Part of Mr Trump's dilemma is that Truth Social has relatively few users
compared with Twitter. In September, app analysts Sensor Tower estimated
that just 92,000 people downloaded Truth Social. Nearly 15 million people
downloaded Twitter over the same period.

 

Mr Trump would love to have his megaphone back. Twitter was his favourite
app, a platform he used to drum up support, and dominate the news cycle.

 

But while he would have a far greater reach on Twitter, he has a financial
interest in making Truth Social succeed. The app is owned by the Trump Media
& Technology Group, and if he were to go back to Twitter, it's hard to see
how Truth Social could continue.

 

That helps to explain why we are not seeing Donald Trump clamouring to come
back to Twitter - yet.

 

But in the longer term, he will have to weigh up financial decisions with
political ones, and with intentions to run for president again - don't rule
him out returning.-BBC

 

 

 

Jeremy Hunt has no plan for growth, says CBI boss

The chancellor's Autumn Statement offered no plan to revive economic growth,
the head of the UK's biggest business lobby group has told the BBC.

 

Tony Danker from the Confederation of British Industry (CBI) said Jeremy
Hunt had instead prioritised stability.

 

Mr Danker said that without higher growth, the UK would not afford the
growing cost of health and social care.

 

Health Secretary Steve Barclay said that "high growth" industries would
benefit from post-Brexit freedoms.

 

In his Autumn Statement last week, Mr Hunt laid out £55bn of spending cuts
and tax rises aimed at bringing down soaring prices while protecting public
services.

 

At the same time, the government's economic forecaster warned households
would see their biggest drop in living standards on record in the next few
years as living costs surged and the country fell into recession.

 

Speaking on Sunday with Laura Kuenssberg, Mr Danker said Mr Hunt's statement
had been "all about fighting inflation and getting the government budget in
some decent shape and that does need to be done".

 

But he added that "there was really nothing there that tells us the economy
is going to avoid another decade of low productivity and low growth".

 

"Jeremy Hunt did some things which will be very welcome, but he also made
businesses and everybody pay more taxes and so the fear is there just wasn't
enough there to turn round and say, 'we can grow again'," he said.

 

"So I don't think he did enough, I think he is going to have to come back
with more."

 

Mr Hunt's Autumn Statement was in large part designed to reassure financial
markets after the controversy sparked by his predecessor's mini-budget in
September.

 

Kwasi Kwarteng promised major tax cuts to boost growth, but the unfunded
plans spooked investors and caused government borrowing costs to spike.

 

Mr Danker, who initially welcomed elements of the former chancellor's plans,
told the BBC that the tax cuts had clearly backfired.

 

However, he said some of Mr Kwarteng's other proposals - such as relaxing
immigration, regulation and planning laws - needed to be looked at again.

 

The CBI, which represents 190,000 UK businesses, will see its annual
conference kick off on Monday.

 

Lagged behind

The UK economy has lagged behind those of other developed nations since the
pandemic and is expected to be in recession all of next year.

 

Part of the problem is global, with energy and food prices soaring this year
due to the war in Ukraine and Covid.

 

But the UK also faces significant labour supply challenges, while it is more
difficult for small businesses to trade with Europe or access the talent
they need due to Brexit.

 

On Sunday, the government denied a report that senior officials want to move
to a Swiss-style trading relationship with the European Union to boost
growth.

 

Switzerland has access to the EU single market but must pay into the EU
budget, although any such deal would not mean a return to freedom of
movement, the Sunday Times reported.

 

A government spokesman called the reports "categorically untrue".

 

Mr Barclay, the former Brexit secretary, told Laura Kuenssberg the UK would
not give up "autonomy" over its money, laws and regulation.

 

He said this freedom would create new opportunities for high-growth
industries such as green energy, digital, financial services and life
sciences.

 

"We've protected the research and development budget increase up to £20bn,"
Mr Barclay added, defending Mr Hunt's wider plans. "We've got £600bn of
infrastructure investment. We are seizing the greater opportunities of our
freedoms through Brexit."-BBC

 

 

 

Is this really the end of Twitter?

The hashtag "RIPTwitter" is trending and lots of the site's users are
scrambling to download their data.

 

They're also sharing alternative places to find them (consumer champion
Martin Lewis, who has two million Twitter followers, has set himself up on
Mastodon, although he admits he doesn't know how to use it yet).

 

Twitter's new boss Elon Musk, never one to ignore a trend, tweeted a meme of
a gravestone with the Twitter logo on it.

 

Staff have been leaving in their droves - half the workforce was laid off by
Mr Musk one week after he completed his purchase of the platform, and many
more are choosing to leave since he sent an email demanding "hardcore"
working conditions and long hours from his remaining employees.

 

Quite a few of those departing, according to their Twitter bios, are
engineers, developers and coders - the people who work on the guts of what
makes Twitter function.

 

Let's take the two biggest vulnerabilities that could knock the blue bird
off its perch very swiftly.

 

Could it be hacked?

The first and most obvious would be a catastrophic hack.

 

Twitter, like all big websites (including this one, the BBC), will be
constantly under attack from bad actors - even at state level - wanting to
cause mischief. World leaders, politicians and celebrities all have personal
Twitter accounts with millions of followers - a low-hanging fruit for a
hacker wanting a lot of people to see their scam, as we have seen before.

 

Or they might just want it to disappear, so they bombard it with web traffic
to see if it gets overwhelmed and shuts down that way. Attempts like this
will be happening all the time - it's a constant battle.

 

Cyber-security is, or at least should be, an important part of any 21st
Century company's day-to-day operations. Last week Twitter's head of
cyber-security, Lea Kissner, left the company. It's not known if she was
replaced. (Twitter also has no communications team, so there's no easy way
to ask.)

 

Twitter's security is likely to be pretty robust. You can't run a site used
by 300 million people every month that's held together with a bit of string.
But that robustness requires continuing maintenance.

 

Think about your own phone, or laptop, and the regular security updates you
have to install. That's because new vulnerabilities are regularly unearthed,
new chinks in the armour that you didn't know you had, and it's the job of
the provider to send you the fix.

 

Servers under threat

The second potential disaster is that the servers are knocked out - either
by someone with a grudge, or by mistake during a routine bit of maintenance
that's not properly supervised.

 

Without servers, there is no Twitter (or Facebook, or Instagram or indeed
our digital world.)

 

Servers - powerful computers - are like the physical bodies of these
platforms. They exist in data centres. These are effectively warehouses full
of computer servers which are central to the operations of online
businesses. The world runs on servers.

 

As you can imagine, all of those machines generate a lot of heat. Data
centres have to be kept cool, and they require a constant source of
electricity.

 

The servers themselves also require maintenance and replacement, as data
gets migrated between them. All of that has the capacity for something to go
wrong. It would be sudden and dramatic if it did.

 

The nuclear option

Elon Musk knows all this, of course. Let's not assume that he doesn't.
However he may choose to play the buffoon.

 

We don't know who is currently keeping watch.

 

But something happened to me yesterday that made me think perhaps there are
more people at Twitter watching than we think.

 

I told the story about an astronomer who was locked out of her account after
wrongly falling foul of automated moderation tools. Nobody at Twitter or Mr
Musk's other firms responded to me, or made contact with her. But her
account was indeed restored later that day.

 

Somebody, somewhere inside Twitter, was paying attention. Perhaps there are
still enough of them who are doing just that.

 

There is of course a third option - the nuclear one - which is that Musk
declares Twitter bankrupt, and it gets wound down. Although right now he
seems to be enjoying his status as Chief Twit.-BBC

 

 

 

World Cup 2022: Alcohol sales banned at World Cup stadiums in Qatar

Alcohol will not be sold to fans at the World Cup's eight stadiums in Qatar
after Fifa changed its policy two days before the start of the tournament.

 

Alcohol was set to be served "in select areas within stadiums", despite its
sale being strictly controlled in the Muslim country.

 

Those in corporate areas of stadiums at the tournament will still be able to
purchase alcohol.

 

The World Cup starts on Sunday when Qatar play Ecuador.

 

Budweiser, a major sponsor of Fifa, is owned by beer maker AB InBev and had
exclusive rights to sell beer at the World Cup.

 

"Following discussions between host country authorities and Fifa, a decision
has been made to focus the sale of alcoholic beverages on the Fifa fan
festival, other fan destinations and licensed venues, removing sales points
of beer from Qatar's Fifa World Cup 2022 stadium perimeters," said a
statement from world football's governing body.

 

"There is no impact to the sale of Bud Zero which will remain available at
all Qatar's World Cup stadiums.

 

"Host country authorities and Fifa will continue to ensure that the stadiums
and surrounding areas provide an enjoyable, respectful and pleasant
experience for all fans.

 

"The tournament organisers appreciate AB InBev's understanding and
continuous support to our joint commitment to cater for everyone during the
Fifa World Cup Qatar 2022."

 

Budweiser posted a message on Twitter on Friday saying, "Well, this is
awkward" before the post was later deleted.

 

An AB InBev spokesperson said that they could not proceed with "some of the
planned stadium activations" because of "circumstances beyond our control".

 

The Football Supporters' Association (FSA) criticised the timing of the
decision to ban the sale of beer for most fans.

 

"Some fans like a beer at a game and some don't, but the real issue is the
last minute U-turn which speaks to a wider problem - the total lack of
communication and clarity from the organising committee towards supporters,"
said an FSA spokesperson.

 

"If they can change their minds on this at a moment's notice, with no
explanation, supporters will have understandable concerns about whether they
will fulfil other promises relating to accommodation, transport or cultural
issues."

 

England fan Ryan, an Arsenal supporter who is in Qatar for the World Cup,
echoed concerns over the late change. He told BBC Sport: "It's not ideal but
as far as I understand there'll be other places to drink. Football is
football and part of the culture is having a drink with your mates, but
there's no point crying about it.

 

"They had 12 years to organise it and I don't think it bodes well to have so
many last-minute changes. As fans we have to get on with it."

 

In August, Fifa changed the start date of the World Cup so that the first
game of the competition would be Qatar facing Ecuador.

 

The game was scheduled to be played on 21 November as the third game, with
Senegal against the Netherlands set to be the opening match earlier that
day.

 

 

The last-minute alcohol ban is emblematic of the contradictions at the heart
of this World Cup.

 

As a small very rich Muslim nation in the middle east with a strict way of
living and big ambitions to be serious broker in the sporting world, Qatar
has a lot to prove.

 

For Qatari citizens, this alcohol sale ban will be seen as the leadership
staying true to the Muslim rules that the vast majority here abide by.

 

But there are also questions about why Fifa was unable to demand that Qatar
stick to the plan, and about consistency.

 

For the 2014 World Cup, Fifa made Brazil change its laws on the sale of
alcohol at matches.

 

Drinking is not the main reason fans have travelled here, but it is part of
football culture for many.

 

It's also symbolic of the fine line Qatar is walking: presenting itself on
one of the world's biggest of stages as an outward-facing, welcoming country
while maintaining its cultural, religious and conservative integrity.-BBC

 

 

 

 

Strikes to hit airports and ports over Christmas

Major ports and airports are set to be disrupted by strikes over the
Christmas period.

 

The PCS union members in the Border Force are due to take action as part of
a dispute over pay, jobs and pensions.

 

Driving tests and payments to farmers could also be disrupted as civil
servants from different government departments strike.

 

The Cabinet Office said it had plans in place to keep essential services
running.

 

The action will start in mid-December and continue for a month, with some
workers out for the entire month.

 

Thousands of workers are expected to take part.

 

PCS general secretary Mark Serwotka said the action will affect passport
control at airports and ports.

 

Border Force also carries out immigration and customs controls.

 

Mr Serwotka said: "PCS members are angry. They helped to keep this country
running during the pandemic, and in return, have been treated appallingly by
this government.

 

"With inflation now at 11.1%, it is inconceivable that they are expected to
cope with yet another real terms pay cut."

 

Workers at the Department for Transport, including driving instructors,
people who issue driving licences, and people who operate and maintain
motorways, are due to take action.

 

In addition, workers at the Department for Environment, Food & Rural Affairs
who make payments to farmers are also set to strike.

 

Why are so many workers going on strike?

Royal Mail staff to strike in run-up to Christmas

The Cabinet Office said that it greatly values the work of civil servants
across the country, "but the PCS union's demands would cost an unaffordable
£2.4bn".

 

It said its "focus must be on bringing down inflation to ease the pressure
on households across the country, protect the vulnerable and rebuild our
economy".

 

A spokesperson added: "Discussions will continue, but we can provide
reassurance that we have comprehensive plans in place to keep essential
services running and to minimise disruption if these PCS strikes do go
ahead."

 

Ministers said in the summer that big pay rises could push prices up.

 

As the cost of living rises, tens of thousands of workers have been taking
action this year to ask for pay deals that keep up with rising costs.

 

There have been strikes by rail workers, lawyers, and postal workers, among
others.-BBC

 

 

 

Higher taxes look to be here to stay, says IFS

The UK has entered a "new era" of higher taxes, the Institute for Fiscal
Studies (IFS) think tank has said.

 

Its director Paul Johnson said that middle earners were "set for a shock"
with taxes going up and prices soaring.

 

In his Autumn Statement, the chancellor announced plans to increase taxes to
shore up the public finances and to provide help with energy bills.

 

The toughest decisions on spending cuts had been delayed until after 2024,
the IFS said in its analysis of the plans.

 

On Friday, Chancellor Jeremy Hunt acknowledged there were "very difficult
times ahead" but said his plans gave people "certainty" on how the
government would help them through the recession.

 

But the IFS's Mr Johnson warned that living standards were facing the
"biggest fall in living memory" due to weak economic growth, an ageing
population and high levels of government borrowing in the past.

 

"The truth is we just got a lot poorer. We are in for a long, hard,
unpleasant journey; a journey that has been made more arduous than it might
have been by a series of economic own goals," Mr Johnson said.

 

Autumn Statement 2022: Key points at-a-glance

What the Autumn Statement means for you

On Thursday, the government's independent forecaster, the Office for Budget
Responsibility, said the UK was in a recession and forecast that the economy
would shrink next year.

 

Mr Johnson described the economic backdrop as "grim", and said the tax
burden was unlikely to return to its pre-pandemic average "for several
decades".

 

In total, the plans announced on Thursday amount to about £25bn in tax
rises. The measures include:

 

Tax thresholds being frozen until April 2028, meaning millions will pay more
tax

The top 45% additional rate of income tax starting for people earning over
£125,140, instead of £150,000

Local councils in England being allowed to raise council tax by 5% a year
without a local vote, instead of 3% currently

Mr Johnson said people on middle incomes would be hardest hit, because they
would not benefit from targeted government support.

 

"Their wages are falling and their taxes are rising. Middle England is set
for a shock," he said.

 

According to the think tank's analysis, households will pay energy bills
that are £900 a year higher than they are now - after the energy price cap
rises in April and without this year's £400 rebate.

 

Daniel Cooke, a father of three, told the BBC he won't qualify for extra
help, but he has already had to take on a second job delivering takeaways in
the evenings to make ends meet.

 

"We've been able to almost survive with the assistance that's come through
from the government
 [it's now] going to be taken away from us through
almost no fault of our own.

 

"It's a very frightening, very worrying time for us as a young family. How
we're going to pay for our bills, how we're going to pay for our gas and
electric - I have no idea."

 

In the Autumn Statement, the chancellor announced he was extending the
freezing of tax thresholds for a further two years up to 2028. That means
the threshold where you start paying tax is fixed, rather than rising with
inflation. So people will pay a higher proportion of their earnings in tax
as their wages go up.

 

updated graphic showing impact of freezing tax thresholds

While taxes will rise from April, almost all spending cuts will be delayed
until after 2024, when the next general election is expected, a move which
drew criticism from some parts of the Conservative Party.

 

Former business secretary Jacob Rees-Mogg urged the chancellor to look at
further government spending cuts "before reaching for the easy options of
putting up taxes".

 

But Mr Hunt defended his plans, telling the BBC's Today programme: "Sound
money matters more than low taxes."

 

He also denied that the announcements constituted a "raid on working
people", and suggested that it was not possible to raise £25bn "just
focusing on a very small group of very rich people".

 

As well as tax rises for people on average incomes, he said his plan
involves "looking after the most vulnerable", pointing towards new targeted
payments for pensioners, people on means-tested benefits and people who
claim disability benefits to help with rising bills.

 

The Autumn Statement was also praised by the International Monetary Fund
(IMF) for balancing the need to bring prices down and protect people's
earnings during a difficult time for the economy.

 

"We welcome the government's efforts to better protect the vulnerable and to
prioritise education, health, and investment," the IMF said, which was in
stark contrast to the criticism it offered Kwasi Kwarteng in the wake of
September's mini-budget.

 

But shadow chancellor Rachel Reeves said the government could have made
"fairer choices" around tax.

 

"We need a serious plan to grow our economy," she told BBC Breakfast,
criticising the government's decision to reduce the tax surcharge on banks,
and its failure to introduce a non-dom tax status or to tax private equity
bonuses.

 

"If [the government] did some of those things, [it] wouldn't have needed to
increase taxes on ordinary people. This government comes time and again for
the pockets of the ordinary man and woman rather than for those with the
broader shoulders," she added.

 

The IFS analysis also found that ordinary households will be 30% worse off
by 2028 than they would have been had incomes continued to grow as they did
before the 2008 financial crisis.

 

Its findings chimed with those of the Resolution Foundation, a think tank
that focuses on people on lower incomes.

 

The Resolution Foundation said that the chancellor's economic plans would
add more pressure on the "squeezed middle", who face a permanent 3.7% hit to
their incomes, which is bigger than the very richest.

 

It added that it thought the spending cuts outlined on Thursday were likely
to be "undeliverable" as they would require "years of holding down public
sector wages below those in the private sector".-BBC

 

 

 

 

Solve worker shortages with immigration - CBI boss

The UK should use immigration to solve worker shortages and boost economic
growth, the boss of the UK's biggest business group will say on Monday.

 

Tony Danker will call on politicians to be "practical" about immigration at
the CBI's conference in Birmingham.

 

Mr Danker will also say the UK should enable "economic migration" in areas
where skilled workers cannot be found.

 

His speech comes as many firms struggle to recruit staff, with job vacancies
near record levels.

 

But recent officials figures show the UK's unemployment rate has edged up,
and the Bank of England has forecast it will nearly double by 2025 as the
country goes through a tough recession.

 

The Office for National Statistics (ONS) has also said UK business
investment has dropped in recent months and remains below pre-pandemic
levels.

 

Mr Danker will urge leaders to "be honest with people" over the country's
"vast" labour shortages, adding "we don't have the people we need nor do we
have the productivity".

 

"First, we have lost hundreds of thousands of people to economic inactivity
post Covid," he will say. "And anyone who thinks they'll all be back any day
now - with the NHS under the pressure it is - is kidding themselves.

 

"Secondly, we don't have enough Brits to go round for the vacancies that
exist, and there's a skills mismatch in any case. And third, believing
automation can step in to do the job in most cases is unrealistic."

 

Mr Danker will argue the country should have "economic migration in areas
where we aren't going to get the people and skills at home any time soon".

 

"In return, let's make those visas fixed term," he will say.

 

Mr Danker is expected to praise some of the government's Autumn Statement,
which saw Chancellor Jeremy Hunt set out £55bn of spending cuts and tax
rises in a bid to curb rising prices while also protecting public services.

 

But the CBI director-general will warn that the UK must go further in order
to solve years of stagnating growth.

 

On Friday, the chancellor said immigration would be important for the UK
economy in the years ahead, but the government still wanted to bring numbers
down.

 

He said he wanted to improve skills "at home" to lower dependence on foreign
workers.

 

 

The CBI, which represents 190,000 UK businesses, is expecting to see senior
politicians attend its annual conference, starting on Monday.

 

The UK's economy is performing worse than other major nations and is smaller
than it was before the Covid pandemic.

 

The government has said the UK is already in recession, which is defined as
when an economy shrinks for two three-month periods in a row. It's a sign an
economy is performing badly, with companies often making less money and
unemployment rising.

 

The causes of the recession are in part global factors, with energy and food
prices soaring this year due to the war in Ukraine and Covid.

 

But the UK also faces significant labour supply challenges due to it being
more difficult for small businesses to trade with Europe or recruit workers
due to Brexit, which ended freedom of movement for EU citizens coming to the
UK and vice versa.

 

According to figures from the ONS, net migration to the UK was estimated to
be about 239,000 in the year ending June 2021, a slight fall from the
previous year's figure of 260,000. The figure was driven by immigration from
non-EU countries.

 

Last month, a survey by the CBI said almost three-quarters of UK companies
had suffered from labour shortages in the past year and nearly half surveyed
wanted the government to grant temporary visas for roles that were in
"obvious shortage".

 

The boss of retailer Next has urged the government to let more foreign
workers into the UK to ease labour shortages.

 

Lord Wolfson, who was a prominent advocate of Brexit, said the UK's current
immigration policy was crippling economic growth.

 

The government has introduced a skilled worker visa scheme for some
occupations facing shortages. It also has a seasonal workers scheme to cover
jobs such as fruit pickers, and a health and care visa for medical staff.

 

Mr Danker will say people might be "arguing against immigration but it's the
only thing that's increased the potential growth of our economy since
March".

 

"Growth is a precondition to a stable society. Without growth the NHS gets
worse not better. People's lives get worse not better. And we lack the
resources we need to transform ourselves to a zero-carbon world," he will
say.

 

"Yet Britain's had 15 years of low growth and flatlining productivity. We
can't afford a repeat."

 

Mr Danker will also urge trading regulations to be reformed, saying: "I know
that some Conservative politicians today feel that this issue is the fault
of Europe. But the biggest regulatory barriers facing businesses today are
based on British laws, created by a British Parliament, and administered by
British regulators."

 

Mr Danker told the BBC on Sunday that the chancellor's Autumn Statement
offered no plan to revive economic growth, and that Mr Hunt had instead
prioritised stability.

 

Speaking on Sunday with Laura Kuenssberg, Mr Danker said Mr Hunt's statement
had been "all about fighting inflation and getting the government budget in
some decent shape and that does need to be done".

 

"There was really nothing there that tells us the economy is going to avoid
another decade of low productivity and low growth," he added.-BBC

 

 

 

Uganda: Employees Urged to Embrace Digitisation as Workplace Environment
Changes

The Covid-19 pandemic has had dramatic effects at many workplaces in Uganda
with several enterprises forced to go through unparalleled disruptions, and
adapting to new circumstances.

 

Many enterprises have had to alter their operations and production
processes, human resource strategies, work modalities and many other aspects
of their enterprises.

 

This was revealed in the report: "The Next Normal: Changing Workplace in
Uganda" unveiled recently by the Federation of Uganda Employers (FUE).

 

Speaking during the unveiling of the report, Douglas Opio, the FUE executive
director highlighted that the report would serve as an integral part and
benchmark for employers to align business operations and maximize
productivity.

 

He said: "From our findings, some enterprises retain in person work
modalities with 23% citing the lack of systems for coordinating remote work
and 21% alluding to risks of loss of productivity due to adapting remote
work."

 

 

Opio noted with concern that the labour force survey carried out in 2021
indicated 87% of the population has never used the internet.

 

He said the level of productivity and quality of work remains low due to
several factors including lack of business records, lack competent people
and low wage levels.

 

The survey carried out by the Federation of Uganda Employers FUE in
partnership with the International Labour Organisation between July and
August 2021 revealed that some organisations have found that there are
technological or practical challenges to performance monitoring, such as
internet unreliability.

 

Gary Rynhart, ILO Senior Employers' Specialist in his remarks said the
report presents an opportunity to improve work place relations. He advised
employers to embrace flexi-work, digitalization, occupational health and
safety to minimize high operation costs and enhance employee retention.

 

The report noted that Covid-19 created a range of new opportunities and
challenges for the human resources side of a business.

 

"A great number of enterprises reported a big number of distress among
employees as they feared the unknown. For many businesses today, the mental
and emotional wellbeing of workers has become even more closely intertwined
with the successful operation of the enterprise. Work spaces changed as a
result pushing improvement on hygiene practices, ventilation and IT skills.
The shift to remote work created new costs for both employers and employees
with the former reporting a reduction in operation costs," the report
revealed.

 

 

 

Nigeria: History As Buhari Supervises Crude Oil Drilling in the North

Abuja — For the first time in history, President Muhammadu Buhari is
expected to officially kick off the drilling of crude oil in the north on
Tuesday, about two years after the mineral resource was discovered in the
region.

 

This is a major boost to the efforts by the federal government to ensure
that the region produces crude oil in commercial quantities.

 

Specifically, the president will conduct the ground-breaking ceremony of the
Kolmani Oil Prospecting Lease (OPL) 809 and 810 at the Kolmani field site
located in Bauchi and Gombe states.

 

The president is expected to carry out the historic exercise with the
support of the Minister of State for Petroleum, Mr. Timipre Sylva and the
Group Chief Executive Officer of the Nigerian National Petroleum Company
Limited (NNPC), Mallam Mele Kyari, among others, THISDAY gathered.

 

 

It was further learnt that the oilfields in Bauchi and Gombe states will be
developed by Sterling Global Oil, New Nigeria Development Commission (NNDC)
and the NNPC Limited.

 

"The ceremony will be held on Tuesday, November 22, and will be attended by
Mr. President himself together with most of his cabinet members including
the Minister of State for Petroleum, Timipre Sylva," said an official of
NNPC, who spoke off the records.

 

Last year, the Nigerian Petroleum Development Company (NPDC) issued a
request for expressions of interest (EoI) on the development of the two
licences in Nigeria's North-east.

 

The integrated development of OPLs 809 and 810 in the Gongola Basin, in the
Upper Benue trough extends about 1,000 km from the Bight of Benin to Lake
Chad.

 

 

Before then, the NPDC said it had discovered "huge commercial quantities" of
oil and gas in the Kolmani River, adding that the blocks were more than 700
km from the coast, posing challenges to export options.

 

It also proposed an onsite midstream refinery and power plant, saying that
this would allow it to use these resources for local needs as well as
"create an industrial hub" to provide economic benefits and employment.

 

At some point in the development of the facilities, in the midstream, the
plan would involve a 150 MW power plant and a 50,000 barrel- per day
condensate refinery.

 

The NPDC, as it was then called, had drilled the Kolmani River 2 well in
2019 and the Kolmani River 3 in early 2021.

 

Bauchi State Governor, Senator Bala Mohammed, had also recently said the oil
and gas exploration at Kolmani River in Alkaleri Local Government Area of
the state by the NNPC would 'reverse the narrative of poverty and
underdevelopment' in the state.

 

NNPC Limited has over the years expended monies on frontier exploration, but
the spending has now been statutorily ingrained in the new Petroleum
Industry Act (PIA) 2021.

 

The new piece of legislation has now raised funding for frontier exploration
to 30 per cent, which implies that the NNPC Limited would have more funds to
develop oil fields around the country.

 

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC),
Nigeria currently has crude oil reserves of about 37 billion barrels.

 

Kolmani fields could hold as much as one billion barrels crude oil reserve,
which could significantly raise Nigeria's oil reserve.

 

The oil discovery in the north is coming at a time crude oil production has
dropped to around one million barrels per day in the country, as a result of
oil theft and vandalism, thereby hobbling the ability of the country to earn
foreign exchange.

 

-This Day.

 

 

 

 

Tanzania: Resolve Road Project Snags in Seven Days, VP Orders

VICE-PRESIDENT Dr Philip Mpango has issued a seven-day ultimatum for the
Ministry of Minerals together with the Ministry of Works and Transport to
address challenges that are delaying the construction of Pangani-Makurunge-
Bagamoyo road.

 

He issued the instructions on Saturday while addressing residents of Mkata
area, Handeni District in Tanga Region as he was on his way to Tanga City
for a working tour.

 

His remarks came after he was briefed that the implementation of Pangani-
Makurunge Bagamoyo road project has been delayed due to lack of gravel,
since the contractor hasn't been awarded a licence to extract the materials
for the project.

 

 

Dr Mpango also instructed the Tanzania National Roads Agency (Tanroads) to
ensure all the arrangements for project execution are put in place in a bid
to ensure smooth execution and timely completion of the much awaited road
that will connect Tanga and Coast Region through Bagamoyo District.

 

The Vice-President also issued similar directives focusing on solving the
setbacks that have delayed the construction of the
Handeni-Kibirashi-Kiteto-Dodoma road whose construction was supposed to
commence in May this year.

 

In another development the Vice-President directed the Secretariat in Tanga
Region to educate livestock keepers on various laws of the land for the sake
of ending land conflicts between farmers and pastoral communities.

 

He, moreover, tasked the security forces in Tanga Region to probe and take
appropriate legal measures against livestock keepers accused of invading and
injuring farmers recently.

 

"I'm asking all citizens here to abide by laws of our country for the sake
of upholding and maintaining our existing peace and unity," said Dr Mpango.

 

Vice-President Mpango commended the secretariat and residents of Tanga
Region for their efforts on protecting environment, a move that helps in
combating effects of climate change.

 

Dr Mpango reminded parents and guardians in the region to fully exploit
education opportunities offered by the government by ensuring all their
children are enrolled in schools accordingly.

 

"The government has taken a number of initiatives in improving provision of
education such as construction of more schools, executing fee-free education
policy as well as improvement of learning facilities. So it's now a
responsibility of parents and their children to play their part," he
emphasised.

 

For his part, Tanga Regional Commissioner Omary Mgumba said authorities in
the region will continue protecting environment as well as instituting legal
measures against individuals engaging in environmental destructive acts.

 

-Daily News.

 

 

 

Nigerian Lawmakers Move to Block Reckless Spending By Revenue-Generating
Agencies

Lawmakers want to place eight federal revenue-generating agencies on a "cost
of collection" percentage to stop the agencies from spending their revenue
arbitrarily

 

The Nigerian government under President Muhammadu Buhari has found itself on
a financial cliff due to the disparity between revenue generation and
expenditure caused by dwindling oil revenue. Oil revenue has declined in
recent years while expenditure has been growing at a geometric progression,
and the government appears to see borrowing as the only means to block the
widening fiscal deficit.

 

"Over time, we have resorted to borrowing to finance our fiscal gaps," Mr
Buhari said in his budget presentation speech last month, before explaining
how the government plans to finance the huge deficit in the proposed 2023
budget.

 

 

"We plan to finance the deficit mainly by new borrowings totalling 8.80
trillion Naira, 206.18 billion Naira from privatisation proceeds and 1.77
trillion Naira drawdowns on bilateral/multilateral loans."

 

However, federal lawmakers are proposing a drastic measure to help the
country out of the fiscal hole by placing eight revenue-generating agencies
on financial autonomy. To this end, the National Assembly has moved to stop
the agencies from spending their revenue arbitrarily by placing them on
"cost of collection" percentage.

 

In the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal
Strategy Paper (FSP) passed by the lawmakers, the Nigerian Communications
Commission (NCC), Corporate Affairs Commission (CAC), Nigerian Port
Authority (NPA), Joint Admission and Matriculation Board (JAMB), National
Upstream Petroleum Regulation Commission (NUPRC), the National Midstream and
Downstream Regulatory Authority (NMDPRA), National Agency for Food and Drug
Administration and Control (NAFDAC), and Nigerian Maritime Administration
and Safety Agency (NIMASA) will henceforth operate under the 'cost of
collection.'

 

 

These agencies are to join the Federal Inland Revenue Service (FIRS) and the
Nigerian Customs Service (NCS) as entities that enjoy the cost of collection
percentages. According to the lawmakers, the other 53 revenue agencies will,
with time, be similarly treated to improve revenue collection.

 

Cost Of Collection Percentage

 

This means that the agencies listed above will not be able to use their
discretion to spend their revenue for operation and remit 80 per cent of the
operating surplus as currently practised. Instead, they will be given a
fixed percentage of their revenue as the cost of collection.

 

 

The decision by the lawmakers came off the heels of the exposé that came out
of the public hearing on the MTEF in August, where several agencies were
indicted for spending their operating surplus, in breach of the provisions
of the Fiscal Responsibility Act.

 

In some instances, operating costs are overblown with items like furniture,
computer equipment, operational vehicles and others. In some instances,
fully funded agencies that ought to remit 100 per cent still spend their
internally generated revenue.

 

Section 22 of the FRA provides that partially funded agencies must remit 80
per cent of their operating surplus to the consolidated revenue fund, while
the other one-fifth shall be transferred to its general reserve fund.

 

"Notwithstanding the provisions of any written law governing the
corporation, each corporation shall establish a general reserve fund and
shall allocate thereto at the end of each financial year, one-fifth of its
operating surplus for the year

 

"The balance of the operating surplus shall be paid to the Consolidated
Revenue Fund of the Federal Government not later than one month following
the statutory deadline for publishing each corporation's accounts," section
22 reads.

 

To the chagrin of the lawmakers in the finance committees, several
fully-funded agencies spent the entirety of the operating surplus. In one
instance, the Chairman of the Committee, James Faleke (APC, Lagos) called
for the sack of the Director of Finance of the Federal Competition and
Consumer Protection Commission (FCCPC), Akinyoghan Ojo, over the spending of
operating surplus.

 

Despite being a fully funded agency, FCCPC generated N4.02 billion in 2021
and remitted N1.3 billion. As of July 2022, the agency generated N3.661
billion but only remitted N1.2 billion.

 

In defence, Mr Ojo claimed that the spending of Internally Generated Revenue
was approved by the House and Senate committees.

 

"We presented our internally generated revenue (IGR) budget to our committee
and it was approved by the committee. The money was allocated for us from
the treasury and we have not spent it," Mr Ojo had claimed.

 

This was not an isolated case, as several agencies received queries on the
spending of their operating surplus. Their justification was that the
National Assembly committees gave them the nod. This appears to be
inconsistent with section 80(2) of the 1999 Constitution which provides that
no money shall be spent unless approved by the National Assembly through the
appropriation act.

 

"No money shall be withdrawn from the Consolidated Revenue Fund of the
Federation except to meet expenditure that is charged upon the fund by this
Constitution or where the issue of those money has been authorised by an
Appropriation Act, Supplementary Appropriation Act or an Act passed in
pursuance of section 81 of this Constitution," it reads.

 

Mr Buhari had in his budget speech also warned the legislative committees to
refrain from approving budgets of GOEs, as he lamented the decline in
government revenue.

 

"It has however come to my attention that Government-Owned Enterprises
liaise directly with relevant NASS committees to have their budget passed
and issued to them directly.

 

"I would like to implore the leadership of the National Assembly to ensure
that the budget I lay here today, which includes those of the GOEs, be
returned to the Presidency when passed. The current practice where some
committees of the National Assembly purport to pass budgets for GOEs, which
are at variance with the budgets sanctioned by me, and communicate such
directly to the MDAs is against the rules and needs to stop," Mr Buhari said
in October.

 

In addition, the lack of financial prudence by the agencies is a violation
of the 2018 circular SGF.50/S.3/C.9/24 issued by the Secretary to the
Government of the Federation, Boss Mustapha. The circular directed that
GOEs' capital budget shall be embellished in the main budget. It also puts a
limit on spending.

 

"Limit of allowable expenses, frequency of Board meetings, overseas travels
and other potentially wasteful practices shall be strictly enforced; and ii.
Annual GOE capital budgets shall be mainstreamed into the Federal
Government's Capital Budgets in order to ensure that they are subjected to
the same level of scrutiny, procurement and monitoring processes," the
circular reads in part.

 

Analogue Office of Accountant-General unable to track inflow... .

 

One other striking revelation that emerged from the hearing was the
inability of the Office of Accountant-General to track inflow into the
government coffers because the agency is still heavily dependent on papers
instead of computers.

 

During the hearings, there were several embarrassing moments that exposed
the inability of the agency to monitor inflow. On one occasion, the Nigerian
Energy Commission claimed to have remitted N13 million. However, a
representative of OAGF stated that the commission remitted N27 million.

 

Also, the National Oil Spill Detection and Response Agency appeared before
the committee and claimed to have remitted N1.9 billion. Again, the OAGF
said the agency remitted N2 million, only for the Director-General of
NOSDRA, Idris Musa, to produce the receipt issued by the Office of the
Accountant General which showed that NOSDRA indeed remitted N1.9 billion.

 

In another instance, the Federal Road Safety Corps claimed to have remitted
N1.5 billion to the government purse. Although the figure was confirmed by
the Fiscal Responsibility Commission, when the Chairman of the Committee, Mr
Faleke, asked Muhammed Saleh, director of federation account of the OAGF, to
also confirm the figure, he claimed FRSC remitted only N27 million.

 

Mr Faleke said the FRSC record was more updated than the OAGF because the
latter is still using an analogue system.

 

"Are you still using analogue in your office?" Mr Faleke asked.

 

To address that, the House, in the approved MTEF, resolved that there should
be a common electronic platform for reconciliations amongst the government
MDAs, OAGF and Fiscal Responsibility Commission for effective monitoring and
remittances.

 

How will the cost of collection work?

 

The MTEF did not specify the percentage to be given to those agencies and
there is a concern about whether some of the agencies generate enough for a
certain percentage to cover their operations, capital and personnel cost.

 

For instance, Nigerian customs has a revenue target of N3.01 trillion for
2022. Out of the target, it is expected to get N151.84 billion as cost of
collection, in addition to 60 per cent of Comprehensive Import Supervision
Scheme (CISS) which is N60 billion, two per cent of VAT share of NCS which
is N14.94 billion, retained income of N114.9 billion and share of the excess
target (2021), which is N27.85 billion.

 

While most revenue-generating agencies don't have as many personnel and
large operational scope as the customs, most do not generate as much as the
agency and the Federal Inland Revenue Service (FIRS).

 

JAMB has consistently stated its willingness to be self-funded. However,
there are questions about it deviating from its core mandate. Many have
argued that it was created not to generate revenue but as an examination
body. The same could be said of NAFDAC, an agency with the responsibility of
regulating food and drugs. There are concerns that these agencies may
jettison their responsibilities and focus on revenue drive instead.

 

"We cannot throw all the agencies into this kind of arrangement because if
you throw all of them, particularly those who are regulatory agencies, they
may turn around and be posing high fees on the entities they are regulating.
We have to identify those generating enough to cover their operating
expenses," Muda Lawal, a fiscal policy expert, said to PREMIUM TIMES.

 

Similarly, Eze Onyekpere, another fiscal policy expert, said while the
nation needs every single naira it can get, lawmakers should consider the
peculiarity of each agency, instead of lumping them all together.

 

"This should have been done on a corporation-by-corporation basis, looking
at what they do, how they make money. For instance, Customs and FIRS, are
their percentages fully utilised? Are they bound to spend all of it? Or are
they duty-bound to remit the surplus? If you look at FIRS, they own
properties everywhere, they are just building, and everybody understands
that the kind of money they pay to their staff is a bit on the scandalous
side.

 

"I don't think that is a good model for these agencies. The only thing is
that there should have been sufficient supervision and oversight to see what
exactly they make, and when they make that money, they return the
appropriate one to the treasury. Saying that they must take a percentage of
what they make is on the high side. However, it should be with the condition
that it should be the only money they get," he said.

 

Nigeria is in a desperate time. Amidst the dwindling revenue from oil,
attention is fully on the GOEs and other revenue-generating agencies to
provide more. Last month, during a budget defence session, the Minister of
Finance, Zainab Ahmed, said the squeeze on the GOEs has increased
remittances from an average of N360 billion per annum to N1.3 trillion.

 

"The fact can be seen from the performance of GOE where we have realized
N1.3 trillion. This is the first time we are able to achieve such a target.
Three years ago, the average performance was N320 billion," she said.

 

What appears to be obvious is that Nigeria is at a desperate time, and the
government seems to be willing to deploy desperate monetary and fiscal
policies, including the ongoing redesigning of the Naira by the Central Bank
of Nigeria.

 

-Premium Times.

 

 

 

Mozambique Makes First Export of Liquefied Natural Gas

Mozambique is significantly being exposed to the EU's planned Carbon Border
Adjustment Mechanism (CBAM), mainly due to its large aluminium export to the
EU.

 

Aluminium is the country's largest export good, making up 25 per cent of
export earnings, worth US$1.4 billion. According to an article by Enabel
published on November 3, 2022, under the proposed CBAM, Mozambique's
aluminium exports could result in an annual taxation of between EUR 50 - 350
million per annum, depending on the approach used for estimating the carbon
intensity.

 

 

On the other hand, Mozambique also has unrivalled natural energy resources
that could significantly contribute to a green energy transition, not only
domestically but also in the Southern African region.

 

Mozambique's first LNG cargo departs from Coral Sul FLNG, offshore the
Rovuma basin

The LNG was produced by the Coral Sul floating LNG platform, and left for
the international market on board the cargo ship "British Sponsor."

As part of its exploration activity offshore Mozambique, Eni discovered
Coral South gas field in 2012 and took its final investment decision in
2017, pledging to start producing gas using a floating LNG plant after five
years.

The next LNG project to take shape is likely to be that of the consortium
headed by the French company TotalEnergies, at the Afungi Peninsula in Cabo
Delgado.

Finally, based on the large gas discoveries over the past decade, Mozambique
may emerge as one of the largest LNG exporters in the world. Over the last
years, large consortia led by Total Energies, Exxon Mobil and ENI have
started preparing for scaling up the gas exploration in the northern region
of the country.

 

 

Mozambican President Filipe Nyusi announced the first export of Liquefied
Natural Gas (LNG), from the Rovuma Basin, off the coast of the northern
province of Cabo Delgado.

 

Nyusi recalled that in 2016 the government approved the development plan for
the Coral South Floating LNG project, and in 2017 the Final Investment
Decision on the project was taken. The government at the time was convinced
that the first export from the floating platform would take place in 2022.

 

"Everything has worked out", said Nyusi. "Today Mozambique has entered the
annals of world history as one of the exporters of liquefied natural gas".
This would contribute to energy security in the countries that are major
consumers of natural gas.

 

 

Eni, as delegated operator of the Coral South project on behalf of its Area
4 Partners (ExxonMobil, CNPC, GALP, KOGAS and ENH), confirmed that the first
shipment of liquefied natural gas (LNG) produced from the Coral gas field,
in the ultra-deep waters of the Rovuma Basin, departed from Coral Sul
Floating Liquefied Natural Gas (FLNG) facility."The first shipment of LNG
from Coral South project, and from Mozambique, is a new and significant step
forward in Eni's strategy to leverage gas as a source that can contribute in
a significant way to Europe's energy security, also through the increasing
diversification of supplies, while also supporting a just and sustainable
transition. We will continue to work with our partners to ensure timely
valorisation of Mozambique's vast gas resources," commented Eni CEO Claudio
Descalzi.

 

As part of its exploration activity offshore Mozambique, Eni discovered
Coral South gas field in 2012 and took its final investment decision in
2017, pledging to start producing gas using a floating LNG plant after five
years.

 

The President of Mozambique said this first shipment was a sign of market
recognition that Mozambique offers a stable, transparent and predictable
environment for multi-billion dollar investments, in which the use of high
technology stands out with the purpose of monetizing resources in a phase of
energy transition.

 

"This project is the first in a more ambitious development plan", said the
President. He encouraged the various companies involved in onshore LNG
projects to follow the plans through to fruition, given the importance they
could have for Mozambique.

 

The next LNG project to take shape is likely to be that of the consortium
headed by the French company TotalEnergies, at the Afungi Peninsula in Cabo
Delgado. But TotalEnergies has made it clear that it can only resume the
onshore LNG project once the security situation has improved.

 

The deal whereby the entire Coral Sul LNG production is sold to BP is valid
for 2 decades, with an option for a ten year extension. The Coral Sul
project is budgeted at US$6.34 billion. Its target is to produce 3.4 million
tonnes of LPG a year.

 

Area 4 is operated by Mozambique Rovuma Venture an incorporated joint
venture owned by Eni, ExxonMobil and CNPC, which holds a 70 per cent
interest in the Area 4 exploration and production concession contract. In
addition to MRV, the other shareholders in Area 4 are Galp, KOGAS and ENH,
each with a 10 per cent participation interest. Eni is the Delegated
Operator for the Coral South project and all upstream activities in Area 4.

 

According to National Institute of Statistics, of the total products
exported during the e second quarter of 2022, the highlight goes to
aluminium which had 25.42 per cent, hard coal (24.07 per cent), coke and
semi-coke coal (13.71 per cent) and electricity (5.45 per cent).In terms of
imports, the highlights were diesel with 17.85 per cent, machinery (10.91
per cent) and cereals (5.65 per cent).

 

Some of the countries that stood out in trade relations with Mozambique, in
the second quarter of 2022, as a destination for exports were: India (23.19
per cent), the United Kingdom (15.47 per cent), South Africa (13. 57 per
cent) and China (4.15 per cent).

 

Regarding imports, among the suppliers from Mozambique, South Africa (21.07
per cent), the United Arab Emirates (20.42 per cent), China (8.15 per cent)
and India (7.69 per cent), with the most traded products being: electricity,
organic agents, petroleum oils, cement, automobiles, insecticides, bicycles,
rice and wheat.

 

President Nyusi stressed out the effect of LNG exports on the balance of
trade, and the improvement of the public accounts through tax revenue and
profit sharing. Indeed with the new exports and shipments, Mozambique
exports will surely turn around.

 

-The Exchange.

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

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Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
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www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <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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