Major International Business Headlines Brief::: 24 November 2022

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Major International Business Headlines Brief::: 24 November 2022 

 


 

 


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

 


 

 


 

ü  Foxconn: iPhone maker apologises after huge protests at China plant

ü  UK airports could ditch luggage liquid rules by 2024

ü  Russia revives Soviet-era car brand at ex-Renault plant

ü  How Qatar’s riches touch millions of UK lives

ü  Cost of living: 'We've slashed our restaurant's menu to survive'

ü  Five-year mortgage rates back below 6%

ü  Cost of living: Half of students in financial difficulty as prices soar

ü  Cost of living: New Zealand steps up fight against soaring prices

ü  South Africa: Oil Giant Shell Returns to Court in New Bid to Push for
Seismic Survey #AfricaClimateCrisis

ü  Uganda: Parliament Approves $331 Million Loan for Electricity Access

ü  Namibia: 300 000 Namibian Households Without Electricity

ü  Nigeria: [updated] Buhari Unveils New Naira Notes

ü  South Africa Eyes Green Hydrogen Investment Worth U.S.$250 Billion

ü  Malawi Inflation Balloons to 26.7%

 


 <mailto:info at bulls.co.zw> 

 


 

Foxconn: iPhone maker apologises after huge protests at China plant

Apple supplier Foxconn has apologised for a "technical error" in its payment
systems, a day after its iPhone factory in China was rocked by angry
protests.

 

Videos had showed hundreds of workers marching at the world's biggest iPhone
factory in the city of Zhengzhou, with complaints over Covid restrictions
and claims of overdue pay.

 

Those livestreaming the protests said workers were beaten by police.

 

One Foxconn worker told the BBC that the situation had since been resolved.

 

Last month, rising Covid cases saw the factory locked down, prompting some
workers to break out and go home. The company then recruited new workers
with the promise of generous bonuses.

 

But one worker said these contracts were changed so they "could not get the
subsidy promised", adding that they were quarantined without food.

 

On Thursday, Foxconn released a statement saying a "technical error occurred
during the onboarding process", adding that the pay of new recruits was "the
same as agreed [in the] official recruitment posters".

 

The firm said it was in constant communication with the affected employees
about the the pay and bonuses and was doing its best "to actively solve the
concerns and reasonable demands of employees".

 

A worker also told the BBC on Thursday that he had since received 8,000 yuan
($1,120; £926) and was set to receive another 2,000 yuan. He added that
there were no more protesters and that he and his colleagues would return to
the Foxconn factory.

 

The Zhengzhou plant employs more than 200,000 people, making Apple devices
including the iPhone 14 Pro and Pro Max.

 

Separately on Thursday, authorities ordered the city to go into lockdown,
saying people would not be able to leave the area unless they had a negative
Covid test - affecting more than six million people in the city.

 

It came as China recorded its highest number of daily Covid cases since the
pandemic began, with the country seeing a wave of outbreaks with several
major cities like Beijing and Guangzhou affected.

 

The International Monetary Fund (IMF) has called on China to recalibrate its
zero-Covid strategy as its economic growth shrinks.

 

The world's second largest economy has seen its gross domestic product (GDP)
fall by 2.6% in the three months to the end of June from the previous
quarter.

 

"Although the zero-Covid strategy has become nimbler over time, the
combination of more contagious Covid variants and persistent gaps in
vaccinations have led to the need for more frequent lockdowns, weighing on
consumption and private investment, including in housing," the IMF said.

 

The global financial organisation also called on Beijing to vaccinate more
people and offer further relief to its crisis-hit property sector.

 

However, some analysts believe the IMF's guidance will not convince China to
change its policies.

 

"Given that China is unlikely to be going to the IMF for help, it doesn't
really matter whether they pay attention to this statement or not," Simon
Baptist, global chief economist of The Economist Intelligence Unit, told the
BBC.-BBC

 

 

 

 

UK airports could ditch luggage liquid rules by 2024

Security restrictions on liquids and laptops in airport hand luggage could
be axed in the UK within two years thanks to high-tech 3D scanners.

 

The government is considering rolling out the more advanced scanners by
mid-2024, a source told the BBC, although a final decision has yet to be
made.

 

The equipment, similar to CT scanners used in hospitals, provides a clearer
picture of a bag's contents.

 

A previous installation deadline slipped due to the pandemic.

 

The Times newspaper reported that ministers have been carrying out a review
and an announcement is due before Christmas, with the hope it could cut down
on queues in UK airports.

 

Currently, passengers taking liquid in their cabin baggage are restricted to
clear plastic bags holding no more than 100ml, which must be shown to
security staff in a single, transparent, resealable plastic bag of about
20cm (8in) x 20cm.

 

Those limits have been in place since November 2006. Their introduction
ended a ban on liquids in the cabin imposed three months earlier, when
British police said they had foiled a plot to blow up as many as 10 planes
using explosives hidden in drinks bottles.

 

But the new technology enables staff to zoom in on a bag's contents and
rotate the images for inspection.

 

The 3D scanners have been trialled at London Heathrow Airport, starting in
2017.

 

Its chief executive, John Holland-Kaye, told The Times newspaper: "We are
slowly rolling them out.

 

"We have just started the expansion of the security area in Terminal 3 which
will have more CT scanners and have a deadline of mid-2024 from the
[Department for Transport]. By then the normal passenger experience will be
that liquids stay in bags."

 

The technology has already been in use by US airports, such as Atlanta's
Hartsfield-Jackson and Chicago's O'Hare, for a number of years.

 

Former Prime Minister Boris Johnson made a pledge to use the scanning
technology to speed up pre-boarding checks and improve security, giving UK
airports a deadline of the end of 2022.

 

But passenger numbers were dented during the pandemic with travel
restrictions in place across much of the globe.

 

The latest figures from the International Air Transport Association for
September show that passenger traffic levels have only reached 73% of
pre-Covid levels.

 

A spokeswoman for the Department for Transport said: "Passengers at UK
airports must not carry liquid containers larger than 100ml through
security, and both liquids and electronics should be taken out of cabin bags
at airport security checkpoints."-BBC

 

 

 

Russia revives Soviet-era car brand at ex-Renault plant

Manufacturing has resumed at the former Renault factory in Russia, which
shut after the invasion of Ukraine and was later taken over by the
government.

 

Truck-maker Kamaz said the first cars would go on sale next month.

 

It is reviving the Soviet-era Moskvich brand although the car’s design has
been updated.

 

Renault’s departure from Russia was part of a broader exodus of Western
companies.

 

McDonald's and Starbucks were among the other big names to quit the country
in the wake of the invasion.

 

Western sanctions, put in place to isolate Russia and punish it for its
military action, have limited access to foreign-made parts.

 

Kamaz, which signed a deal to be the plant's technological partner in July,
and the government are working with Chinese carmaker JAC, according to
Reuters, which cited anonymous sources.

 

In the press release, Kamaz said it expected to build up a base of Russian
suppliers over time, but output is expected to remain limited.

 

Kamaz said it expected to produce about 600 cars by the end of the year. It
hopes to ramp up manufacturing to 100,000 vehicles a year in 2024, some of
which will be electric.

 

That remains well below the output of a typical car plant.

 

Overall, car production in the country has declined and sales may fall below
one million this year for the first time in Russia's modern history, Reuters
reported.-BBC

 

 

 

How Qatar’s riches touch millions of UK lives

Qatar hosting the World Cup has drawn widespread criticism over its record
on rights for women, LGBTQ+ groups and migrant workers. The attendance of
officials, teams, even fans has been questioned. But our connection with
Qatar goes way beyond the current tournament, touching most of our lives.

 

Some may query if we are right to foster such ties with a regime whose
values may appear to be at odds with British ones.

 

At the core of that relationship is gas. Qatar is a tiny country about the
size of Yorkshire but it has one of the largest natural reserves on the
planet - and the UK is a key customer.

 

About half our gas is imported and about half of that comes via a pipeline
from Norway. But Qatar is second on that list supplying about 9% of our
energy imports. In theory, that's the amount needed to power the boilers of
around a million British homes. In the space of less than 20 years, Qatar
has become a vital part of our energy mix.

 

Why are the World Cup 2022 finals in Qatar so controversial?

The UK and Qatar may have few historical links - but the latter has
channelled its booming gas-based wealth into embedding itself into the UK's
corporate and property landscape, and cementing a relationship with the top
tiers of British establishment.

 

Its monarch, the Emir, was one of the few Gulf leaders to attend the Queen's
funeral. The current King accepted a donation for his charitable foundation
worth over £2m (part of which was allegedly handed over in Fortnum and
Mason's carrier bags) from a former Qatari political leader in 2015.

 

Highly unusually, our nations' air forces have formed two joint squadrons -
one of which is patrolling the skies above World Cup venues.

 

And in September, Qatar took ownership of 24 fighter jets built in
Lancashire, part of a £5bn deal with BAE systems.

 

On the ground, the Qatari government has been recycling some of its cash by
investing in the UK. It's not one of our largest investors - but its
holdings are strategically chosen to maximise profile and influence. It is
among the dozen biggest property owners in Britain.

 

Central to its property empire is the Canary Wharf Group which owns
landmarks including 20 Fenchurch Street, nicknamed the Walkie Talkie, and
the Shell Centre redevelopment on London's South Bank.

 

The Qatari government also owns luxury department store Harrods and 5* hotel
Claridge's in London.

 

And in our day-to-day life it has significant shareholdings some of our
biggest brands. Bank with Barclays, shop at Sainsburys or use Heathrow
airport, and Qatar benefits. Turn on the tap as a Severn Trent water
customer, and your bill adds to its profits.

 

In total, Qatar's state investment arm has invested about £40bn, in areas
which touch millions of British lives, and designed to ensure the influence
of that tiny country punches far above its weight on British soil.

 

And its funds our government has welcomed - and is keen to boost. In May,
then Prime Minister Boris Johnson trumpeted an agreement for Qatar to invest
up to £10bn over the next five years in the UK in sectors from cybersecurity
to life sciences.

 

UK natural gas imports

Meanwhile, our reliance on Qatari gas could rise in the future. The UK
government has been nurturing the relationship with Doha, to ensure security
of supply as North Sea reserves dwindle.

 

Britain in recent months has succeeded in cutting out imports from Russia.
That was only about 4% of the UK total - but it makes the gas we source from
Qatar even more crucial.

 

The EU is far more reliant on Russian gas so securing alternatives is even
more pressing.

 

Overall, the EU only got 5% of its gas from Qatar - but that could change.
Olaf Scholz, chancellor of the bloc's biggest gas guzzler - Germany - has
said that Qatar will play a central role in the country's strategy to
diversify away from Russian gas. But it won't happen overnight.

 

Contract negotiations have been tricky. Qatar likes to supply gas under
long-term deals, lasting 15-20 years, which may not be consistent with
Western nations aims to decarbonise.

 

By contrast, China, with its less ambitious net-zero plans, has unveiled a
27-year agreement to buy a massive $60bn worth of Qatari gas. And Germany
needs to boost its infrastructure, the terminals which receive the liquified
natural gas - known as LNG, in order to take on more supplies.

 

The UK is ahead of the game in the latter - thanks to cooperation from
Qatar. The country is a majority owner of the South Hook terminal in Wales,
where LNG is offloaded into special containers. It's claimed the site can
hold a fifth of the UK's daily gas needs - the Qatari government is
investing millions to up that capacity by a quarter by 2025.

 

And by that point, Qatar is expecting to double its LNG output - with no
shortage of customers. Many Asian nations are vying with Europe to tie down
supplies to ensure energy security - and Qatar is seen as a relatively
reliable and geopolitically tame option. The alternatives may not be
attractive: for example, while part of the world's largest gas field falls
in Qatari water, the rest lies in Iran's (the two countries produce gas
independently).

 

Some of us may not be able to locate the country on a map but our
relationship with Qatar seems set only to become closer in the years to
come.-BBC

 

 

 

Cost of living: 'We've slashed our restaurant's menu to survive'

"We've had to slash our menu just to survive," says Claire Riddleston,
manager of the Green Room restaurant in Colchester.

 

Pies and burgers have faced the chop, but it is not the only firm struggling
with staff shortages and food prices.

 

UK Hospitality told the BBC that offering shorter menus is one of a number
of ways restaurants and cafes are trying to get through the winter.

 

"It was the only option to keep the business open," Mrs Riddleston said.

 

Other measures many businesses are considering include reducing trading
hours, or even closing for days at a time.

 

'We had to adapt'

A lack of staff is the main reason why the Green Room restaurant had to cut
its menu drastically, Mrs Riddleston said.

 

"Over a year ago, we had five full-time chefs," she told the BBC. "Now we're
down to just three full-time chefs. So the menu had to reduce so they could
keep up with the workload."

 

One year ago, lunchtime diners would have been offered an extensive A3 menu
with 11 starters and 18 mains, plus additional lighter bites and sharing
platters.

 

About six months ago, the menu shrank to a double-sided A4 size piece of
paper, and now there are just four starters and nine mains available.

 

A pie

Image caption,

There's now only one pie on the menu at the Green Room restaurant.

The number of pies on the menu has been cut from three to one. Burgers have
faced a similar fate, while fish dishes have been reduced from four to two.

 

The soaring costs of food and energy have also played a part.

 

"We've had to adapt the menu to rising food costs, so that we can source
ingredients to make the dishes with, and we've now got the challenge of
energy costs going up," she says.

 

One positive is that there is much less food waste, she says. "If there's
too much on the menu, things that aren't getting used just get wasted."

 

Mrs Riddleston says the firm is just making choices so that the restaurant
can stay open.

 

"There are less and less chefs, and there are so many businesses that you
know of, that are struggling as well. It does make us wonder how many of us
will survive and be here next year."

 

Diners in restaurant seem understanding of the struggles of the industry.

 

"You can understand why they're doing it, if they can't make ends meet," one
diner told the BBC.

 

"It's a small menu, but as long as it's tasty, and good value, and homemade,
then it could even be better sometimes," another added.

 

Solve worker shortages with immigration - CBI boss

Why are prices rising so much?

Milk and eggs drive food inflation to 45-year high

Hospitality businesses across the country have been struggling to recruit
staff in recent months and years.

 

Labour shortages have been attributed to a decline in the number of foreign
workers in the UK. After the coronavirus pandemic and Brexit, many EU
nationals who worked in the UK have returned to their countries of origin.

 

Earlier this week, the boss of the UK's biggest business group, the CBI,
urged the UK to use immigration to solve worker shortages and boost economic
growth.

 

But Prime Minister Rishi Sunak said the UK's "number one priority right now,
when it comes to migration, is tackling illegal immigration".

 

Stacey Ward's restaurant, Fourwards, has been shrinking menus since the
pandemic.

Stacey Ward runs the Fourwards restaurant in Leicestershire, together with
her husband Adam.

 

She told the BBC they've been shrinking menus since they reopened after
Covid lockdowns due to rising costs and the struggle to recruit.

 

They now only have seven starters and nine mains on the menu, which offers
modern British fare, compared with 10 starters and 14 mains before Covid.

 

"Our menu before the pandemic was much bigger. Now there are only three of
us in the kitchen and that means there's only so much we can do, without
cutting corners," she says.

 

She worries that they could be forced to reduce menus even further if prices
continue to rise and if they can't source the products they need.

 

"It's about being savvy and using fewer items and making products go
further," she says. "Our food waste is tiny now, which is one good thing."

 

So far, customers have been supportive of the pared-down menus.

 

"Customers have been really great," she says. "We're all adapting to this
new way of living if you want to call it that. It's no different than if you
go into a supermarket, where they have shortages too."

 

Calls for more support

Kate Nicholls, chief executive of UK Hospitality, said businesses are "doing
all they can to survive this winter", in the face of staff shortages,
soaring food and drink prices and higher energy bills.

 

"The industry is nothing if not creative in its resilience, as proven during
the pandemic, and we are already seeing operators implement a raft of
measures to ensure they can remain viable," she said.

 

But Ms Nicholls warned that no extra measures would help unless the industry
gets support from the government. In particular, she said the sector needs a
plan for growth, support on energy costs after April, and reform of business
rates.

 

A spokeswoman for the Department for Business said: "We know this is a
difficult time for hospitality businesses and we remain firmly on their
side. That is why we have acted to deliver the Energy Bill Relief Scheme
which means they will pay less than half the predicted wholesale cost of
energy this winter."

 

She also pointed towards measures outlined during the Autumn Statement, such
as business rates relief offered for retail and hospitality firms.-BBC

 

 

 

 

Five-year mortgage rates back below 6%

The squeeze on people renewing or trying to get new mortgages has eased
slightly, according to new data.

 

The average five-year fixed mortgage rate fell below 6% for the first time
in seven weeks on Tuesday, and remained there on Wednesday, the financial
information service Moneyfacts said.

 

Mortgage rates spiked after the government's mini-Budget in September,
driving up costs for borrowers.

 

Rates have stabilised since the Autumn Statement last week, experts say.

 

Average five-year mortgage rates hit 5.95% on Tuesday, and remained at the
same rate on Wednesday, Moneyfacts said. This is down from a high of 6.51%
on 20 October.

 

The rates on two-year mortgages, which are more common, have also been
falling gradually, from 6.65% on 20 October to 6.14%.

 

Rachel Springall, a finance expert at Moneyfacts, said: "Borrowers who
paused their home ownership plans, or indeed parked the idea of refinancing,
may now be tempted to scrutinise the latest deals on offer.

 

"However, it is worth noting that rates could fall further still, but there
is no clear answer as to how quickly that may be."

 

Mortgage rates chart

Despite the fall, rates are still high compared with this time last year,
when they were closer to 2.5%.

 

At least 100,000 people per month are coming to the end of their current
mortgage deal, and face steep rises in monthly repayments.

 

Rates have climbed throughout this year, as the Bank of England put up
interest rates to fight inflation, but they rocketed upwards following the
mini-Budget.

 

Former chancellor Kwasi Kwarteng promised major tax cuts without saying how
he'd pay for them, sparking turmoil on financial markets.

 

UK borrowing costs spiked, having a direct impact on the mortgage market,
where thousands of products were suspended due to uncertainty about how to
price those loans.

 

The number of deals available has mainly recovered but it is still much
lower than it was last year.

 

Jeremy Cox, head of strategy at Coventry Building Society, told the BBC the
Autumn Statement had helped to bring down mortgage rates by giving markets
"greater confidence in the fiscal outlook for the UK".

 

New Chancellor Jeremy Hunt has reversed most of Mr Kwasi's plans while
promising £55bn in tax rises and spending cuts designed to get the economy
back on track.

 

Mr Cox said the pace of the rise in the cost of living was "still very high"
in the UK, but US inflation was starting to fall, "and that will hopefully
mean that [UK] interest rates will not have to keep on rising at the pace
they have been".

 

Try our calculator below to see how your mortgage might be affected by
rising rates.-BBC

 

 

 

 

Cost of living: Half of students in financial difficulty as prices soar

Half of students in England are facing money problems as the cost of living
soars, an official survey suggests.

 

More than three-quarters are also worried that soaring costs will affect
their academic success, according to the research by the Office for National
Statistics (ONS).

 

Prices are rising at their fastest rate for 41 years, with the official
inflation rate at 11.1%.

 

Students said they had taken on more debt as their mental health suffered.

 

People in higher education generally do not qualify for government
cost-of-living payments.

 

However, universities and colleges are offering a range of support for
students, including enhanced hardship grants, cheap meals, and free period
products.

 

Last week, the University of Manchester said it would give its full-time
students a one-off payment of £170 to help with the cost of living, as part
of a £9m support scheme. It said it would also provide e-books, scrap
library fines and put in other measures to help with rising costs.

 

The ONS said its survey was the first official research of its kind,
experimental, and based on the views of 4,000 students.

 

One in four said they had taken on new debt in response to ballooning food
and energy bills. Meanwhile, nearly half said their mental health had
suffered.

 

 

Media caption,

Students at university in Warwick say they are feeling pressure from rising
prices

 

The ONS suggested that 91% of higher education students reported that their
cost of living had increased compared with last year, with the same
proportion somewhat, or very, worried about the rising cost of living.

 

Respondents also said it had an impact on their studies with:

 

Some 29% skipping non-mandatory lectures or tutorials to save on costs

Around 31% choosing not to attend additional course-related events that cost
money, such as field trips or conferences

And 40% of students studying more at home to save money.

Nearly one in five said they had considered moving back to their family home
and commuting to their university.

 

Various surveys have suggested that students are facing financial and mental
health concerns as soaring prices take a toll on their wellbeing.

 

Last month, BBC research indicated that one in 10 young people had used a
food bank in the last six months.

 

A chart showing money-saving activities people have done

The online poll, conducted by Ipsos on behalf of Radio 1 and BBC Newsbeat,
asked a representative sample of 2,719 British young people - 16 to
24-year-olds - about their worries and concerns.

 

A separate survey in September, run by the website Save The Student, found
that four in five of those asked had considered the prospect of dropping out
of university. Half of those blamed money worries.

 

More than eight in 10 of those asked said they worried about making ends
meet, with the average maintenance loan falling short of living costs.-BBC

 

 

 

 

Cost of living: New Zealand steps up fight against soaring prices

New Zealand's central bank has stepped up its fight against soaring prices,
raising its key interest rate to the highest level in over 13 years.

 

The Reserve Bank of New Zealand (RBNZ) increased its key rate of interest by
0.75 percentage points to 4.25%.

 

That was the biggest rise since the rate, known as the official cash rate,
was introduced in 1999.

 

It comes after the country's annual inflation rate stood at 7.2% in the
three months to the end of September.

 

Like much of the rest of the world, New Zealand has seen the cost of living
rise sharply as the global economy emerges from the pandemic and the war in
Ukraine has pushed up the cost of fuel and food.

 

The RBNZ's updated forecasts also pointed to the country's economy falling
into recession in September next year. A recession is usually defined as
when an economy shrinks for two three-month periods - or quarters - in a
row.

 

"Because the New Zealand economy is starting from a position of very high
inflation and acute labour shortages, an economic contraction is likely,"
the RBNZ said in a statement.

 

"Trying to avoid an economic contraction by limiting any interest rate
increases in the near term would likely lead to a longer period of high
inflation. In turn, this would likely result in higher interest rates and a
larger contraction eventually being required to bring inflation and
employment back to a more sustainable path," it added.

 

New Zealand inflation rate tops three-decade high

Why are prices rising so much?

What is a recession and how could it affect me?

Economists at the bank ANZ welcomed the move.

 

"Hope is not a strategy. The RBNZ Monetary Policy Committee gets that, and
deserves a pat on the back for facing the challenges head-on. If the facts
change, they'll change their minds. But right now, the fact is that high
inflation is looking increasingly entrenched, and dithering would only make
the problem worse," ANZ Research said in a note to investors.

 

During a parliamentary hearing on Wednesday, New Zealand's Finance Minister
Grant Robertson said the world economy faced a "year of reckoning" in 2023.

 

"Countries will either be in recession or feel like they are," Mr Robertson
added.

 

After the RBNZ interest rate announcement, the New Zealand dollar hit a
three month high against the US dollar before easing a little.-BBC

 

 

 

South Africa: Oil Giant Shell Returns to Court in New Bid to Push for
Seismic Survey #AfricaClimateCrisis

Cape Town — Despite a massive outcry, oil giant Shell has not given up its
hopes of seeking to conduct a seismic survey off the ecologically sensitive
Wild Coast. Authorisation granted by the Minister of Mineral Resources and
Energy was deemed unlawful by the Makhanda High Court on September 1, 2022.
In the latest development, the Gqeberha High Court will hear arguments from
both the minister and Shell on why they should be granted leave to appeal
the Makhanda court ruling.

 

The initial judgment outlined a number of reasons why the survey could not
be conducted, including the fact that local communities whose cultural and
subsistence fishing rights would be affected were not consulted in any
meaningful way. It also had significant criticism for the Department of
Minerals and Energy under Minister Gwede Mantashe and made mention of the
implications of the proposed seismic survey for both environmental harm and
climate change.

 

Coastal communities and fishers, who have opposed the geological project
since its outset, will challenge the appeal. They will be joined by
non-governmental organisations including Sustaining the Wild Coast, All
Rise, Natural Justice and Greenpeace Africa, represented by the Legal
Resources Centre, Richard Spoor Attorneys and Cullinan & Associates.

 

 

Communities' struggle against the survey

 

In 2014, a government decision granted Shell permission to pursue seismic
scanning of an area situated over 20km off the Eastern Cape coast. It
resulted in a cascade of opposition that, to date, has lasted more than
eight years.

 

While Shell claimed to be operating within the bounds of the law, due to its
stakeholder consultation process as part of the Environmental Management
Programme during 2013 and passing an Environmental Compliance audit, a
potential "loophole" may been exploited by the petroleum corporation due to
the fact that Shell received an environmental impact assessment in 2014,
five years before small-scale fishers were granted fishing rights in 2019.
Thus, this factor excluded the coastal communities' concerns from the EIA.

 

Coastal communities' struggle against Shell has been fraught with
complications. In 2021, then-acting justice Avinash Govindjee dismissed an
application to interdict the seismic survey on the basis that "irreparable
harm" to marine species was not proved.

 

Non-governmental groups slammed the decision. "The decision to allow Shell
to continue with its plans to destroy the Wild Coast is very disappointing.
Not only will the blasting destroy precious biodiverse ecosystems, but it
will also destroy the livelihoods of local communities, all in the name of
profit," said Happy Khambule of Greenpeace Africa.

 

Similarly, Pooven Moodley of Natural Justice said: "The outcome is very
unfortunate, especially since the judge did not recognise the urgency of the
interdict and the immediate threat the seismic surveys pose to the
environment, marine life and local communities."

 

Seismic surveys: What are they?

 

The seismic survey process involves blasting the seafloor with highly
powered airguns at intervals, and then measuring the echoes, which helps map
out oil and gas reserves, according to Deutsche Welle. The process can
continue for weeks or months at a time. The sound of the blasts can travel
for hundreds of kilometres. Ecologists believe the exploration technique
could upset the behavior of marine animals including their feeding,
reproduction and migration patterns, especially animals like whales who
depend on their sense of hearing.

 

 

 

Uganda: Parliament Approves $331 Million Loan for Electricity Access

Parliament has approved a request for government to borrow up to $331.5
million, from the International Development Association of the World Bank
Group, upon which it will obtain a grant worth $ 276.5 million.

 

The loan is for financing the Electricity Access Scale Up Project (EASP),
whose aim is to increase access to electricity nationwide.

 

 

While presenting loan request to Parliament, the Minister of State for
Planning, Hon. Amos Lugoloobi, said the EASP envisages an increase in access
to electricity from the current 19 per cent to 44 per cent by 2027.

 

 

"In this, the project forecasts an increase in the number of connections
annually from the current average of 70,000 to 300,000 connections," said
Lugoloobi.

 

This was during the plenary sitting of Tuesday, 22 November 2022 chaired by
Speaker Anita Among.

 

 

Lugoloobi added that the loan is expected to increase the share of clean
energy usage for cooking from 15 to 40 per cent by 2027.

 

He said that the project will be equitable as it will include the
disadvantaged communities in its beneficiaries. "The project will benefit
households, commercial enterprises, industrial parks, public institutions.
It will support refugees and host communities and women," Lugoloobi said.

 

He further stated that the Ministry of Energy and Mineral Development and
the Uganda Energy Credit Capitalisation Company (UECCC) will be the main
project implementing partners.

 

The loan request did not meet any resistance during its processing in the
committee and in plenary, which MPs attributed to the project's equitable
nature.

 

"Ordinarily we [the Opposition] are not opposed to borrowing. We are only
opposed to misguided borrowing and poor loan management but with respect to
this loan, it is national in character and reflects equitable distribution.
It is good for development," said Medard Sseggona who represented the Leader
of the Opposition in Parliament (LOP).

 

He applauded the component of grant as one of the conditions for the loan
and asked government to formulate a debt management policy.

 

The report for the loan was presented by the chairperson of the committee on
National Economy, John Bosco Okojo, also Bukedea County MP.

 

Sseggona, also Busiro County East MP, however, opposed the proposal to have
the energy ministry run the project and instead sought restoration of the
Rural Electrification Agency (REA).

 

"Now you are taking us back to this ministry that has always dodged its
responsibilities in electricity infrastructure. I wish government could
reconsider the disbandment of Rural Electrification Agency. REA did a good
job," said Sseggona.

 

Speaker Among, in agreement with Sseggona, called on government to reinstate
REA whose track record she said was commendable.

 

"I also want to agree with the LoP on the issue of REA. Give us back our
REA, the management could have been bad, but you can get other management.
REA did a good job and it had good success stories," said Among.

 

 

 

Namibia: 300 000 Namibian Households Without Electricity

HALF of Namibia still has no access to electricity, with over 300 000
households, particularly in rural areas, unelectrified.

 

This was revealed by the executive director in the mines and energy
ministry, Simeon Negumbo, who said electricity provision remains a challenge
as the country's overall electrification rate is estimated to be about 50%.

 

An estimated 70-80% of rural households do not have access to electricity
while figures in urban localities are much better, as around 70% of
households in urban areas are connected to the power grid.

 

"This is a high number of people who do not have the means to hit a switch
and have lights on so their children can study at night or cook using modern
stoves or preserve their food and drinks in a refrigerator or run a barber
shop or salon that requires electricity to make money and support their
families," Negumbo said at an event yesterday.

 

 

The ministry has set a target to electrify every Namibian household by 2040,
however, according to the Electricity Control Board (ECB), this could be a
pipe dream as under 4 000 houses are connected to the grid per year. At this
rate, by 2040 only 40 000-80 000 new connections will be made.

 

According to ECB, to achieve the universal electrification target in 18
years, about 30 000 new connections need to be made annually.

 

Negumbo said achieving universal access to electricity is easier said than
done.

 

"Namibia is a very large country and has a very small population. As a
country, we have a population density of around three persons per square
kilometre. Extending the grid to all the corners of our country in this
context is very expensive, as electricity infrastructure must be maintained
and replaced when it gets old," Negumbo said.

 

He said while it might take long to reach the desired electrification rate,
every little milestone counts as an achievement, considering limited
resources and the competing needs for rural electrification.

 

To achieve electrification targets, Negumbo has called for more coordination
and involvement of commercial banks, development partners, development
financial institutions, and local and international financing institutions.

 

"It's only through concerted efforts and dedication from all the
stakeholders that we will reach our target and maintain our infrastructure
for the benefit of all," Negumbo said.

 

Jens Jaeger, director of policy and business development at Alliance for
Rural Electrification said access to sustainable electricity for all in
Africa requires bringing connections to over 90 million people a year.

 

Jaeger said 43% of the total population lacks access to electricity, most of
whom are in sub-Saharan Africa.

 

She said extending the main grid to remote areas is made expensive by
various factors, including the high unit cost of serving sparsely populated
regions, challenging terrain and infrastructure and poverty that is three
times higher in rural areas, which limits the ability of rural communities
to pay for electricity.

 

The goal of universal access to modern energy in Africa calls for
investments of US$25 billion per year, around 1% of global energy investment
today.

 

-Namibian.

 

 

 

Nigeria: [updated] Buhari Unveils New Naira Notes

President Muhammadu Buhari on Wednesday unveiled the new naira notes of
N200, N500 and N1,000 at the Council Chamber, Presidential Villa, Abuja.

 

The unveiling of the new notes took place before the weekly Federal
Executive Council, FEC, meeting, presided over by President Buhari.

 

Speaking to State House correspondents after the brief ceremony, the
governor of Central Bank of Nigeria, CBN, Godwin Emefiele said that in line
with the global practice, the naira was supposed to be redesigned and
re-issued between five and eight years.

 

He regretted that in Nigeria, the naira has not been redesigned for about 19
years now because of lack of political will from the previous leaders.

 

According to him, "In the past, I have to confess that attempts by the CBN
to redesign and reissue the naira notes have been resisred. It is only
President Muhammadu Buhari that has the courage to do so."

 

 

Emefiele said it was the mandate of the CBN, to redesign and reissue the
notes, assuring that henceforth, the exercise would take place after five to
eight years.

 

"After today, the CBN will begin to redesign and reissue the naira for every
five to eight years," he said.

 

The CBN governor said that Nigeria has gone cashless and that security
agencies would monitor people making withdrawal at the counter to know how
much withdrawn and also monitor the usage of the money.

 

He said there was no need to insinuate that the policy was targeted at
anyone.

 

Emefiele said that the CBN was determined in ensuring that the provision of
the law on volume of money one should carry is followed.

 

"The world has moved to cashless economy and the CBN has moved to cashless
economy. We will restrain the volume of cash someone will withdraw over the
counter. We will follow up with the person's data to know the reason for
such withdrawal," he said.

 

For those calling for extension of time for the usage of the old notes, the
CBN boss said, "we will not go with people that want extension of time. From
today, this currency that was re-issued will become a legal tender."

 

He said there is no local government area in the country where there is no
bank agent, adding that there is over one million point across the country
that people should go and deposit the old notes.

 

He also assured that the new notes cannot be counterfeited because of the
features in them.

 

-Vanguard.

 

 

 

South Africa Eyes Green Hydrogen Investment Worth U.S.$250 Billion

South Africa presented green hydrogen plan at the COP27 international
climate conference in Egypt

 

There's a lot of hype around hydrogen today.

 

Arguments are being raised as they say it is the most abundant element, a
silver bullet and key to unlock all our future energy needs.

 

According to WeForum, the Green Hydrogen Catapult, a United Nations
initiative to bring down the cost of green hydrogen announced that it is
almost doubling its goal for green electrolysers from 25 gigawatts set last
year to 45 gigawatts by 2027.

 

The European Commission has adopted a set of legislative proposals to
decarbonize the EU gas market by facilitating the uptake of renewable and
low-carbon gases, including hydrogen, and to ensure energy security for all
citizens in Europe.

 

The United Arab Emirates is also raising ambition, with the country's new
hydrogen strategy aiming to hold a fourth of the global low-carbon hydrogen
market by 2030 and Japan recently announced it will invest US$3.4 billion
from its green innovation fund to accelerate research and development and
promotion of hydrogen use over the next decade.

 

 

While other African countries such as Morocco and Namibia have already
positioned themselves as potential hydrogen producers. In 2021, Namibia
announced an estimated US$9.4 billion green hydrogen project, scheduled to
enter production in 2026. The initial target is to generate 2 gigawatts of
renewable electricity for regional and global markets.

 

The US$8.5 billion promised at the United Nations Climate Change Conference
in Glasgow (COP26) to support South Africa's Just Energy Transition
Partnership to a low-emission development path specifies a goal to "develop
new economic opportunities such as green hydrogen."

 

In February 2022, South Africa announced plans to support a pipeline of
green hydrogen projects worth about US$17.8 billion over the next decade.

 

 

According to Further Africa, South Africa has now set its eyes on attracting
as much as US$250 billion into its green hydrogen industry by 2050 to take
advantage of abundant solar and wind energy sources.

 

Masopha Moshoeshoe, a green economy specialist in the South African
Presidency's investment and infrastructure office, says the industry could
create 1.4 million jobs and generate as much as US$30 billion in annual
revenue by that year.

 

Moshoeshoe presented the plan at the Monday COP27 international climate
conference in Egypt. It involves South Africa exporting as much as eight
million tons of clean-burning fuel and its derivatives by 2050 and
satisfying local demand of between two and five million tons.

 

He said that Russia's invasion of Ukraine has increased interest in supply
and created more opportunities for cooperation.

 

A number of bilateral negotiations are taking place between South Africa and
potential markets, according to Moshoeshoe.

 

 

The war has driven up natural gas prices and threatened the security of
supply. Investment funds, governments and utilities are pledging to spend
billions of dollars on markets for clean fuel.

 

The potential is for the country to supply between 4 per cent and 8 per cent
of the global market for ammonia, which is produced using hydrogen, with a
focus on supplying South Korea and Japan, he said.

 

Between 140,000 megawatts and 300,000 megawatts of renewable-power
generation capacity would be needed to supply the industry, compared with
the country's current total power facility capacity of a little over 40,000
megawatts, the presentation showed.

 

By 2030 alone, between 6,000 and 10,000 megawatts of dedicated renewable
energy plants would need to be built to power 3,000 to 5,000 megawatts of
electrolyzer capacity, according to figures shown in the presentation.
Electrolyzers use electricity to make hydrogen from water.

 

Green hydrogen production technologies are seeing a renewed wave of
interest. This is because the possible uses for hydrogen are expanding
across multiple sectors, including power generation, manufacturing processes
in industries such as steelmaking and cement production, fuel cells for
electric vehicles, heavy transport such as shipping, green ammonia
production for fertilizers, cleaning products, refrigeration, and
electricity grid stabilization, according to the World Bank.

 

South Africa possesses exceptional conditions for the development of a
competitive green hydrogen industry due to its geographical and
institutional environments, giving it the potential to become a development
pole at the national and regional levels.

 

The country has abundant solar and wind resources at very competitive prices
and a proven path for developing innovative technologies in renewable
energy. Furthermore, the mining industry could help to scale-up green
hydrogen, making it even more competitive in the medium- and long-term.
These conditions, coupled with a conducive environment for public-private
partnerships and leveraging of private sector resources, are comparative
advantages for the development of this industry in South Africa.

 

Green hydrogen is produced by using renewably generated electricity that
splits water molecules into hydrogen and oxygen.

 

According to the World Bank, the demand for hydrogen reached an estimated 87
million metric tons (MT) in 2020, and is expected to grow to 500-680 million
MT by 2050. From 2020 to 2021, the hydrogen production market was valued at
US$130 billion and is estimated to grow to 9.2 per cent annually through
2030.

 

But there's a catch, over 95 per cent of current hydrogen production is
fossil-fuel based, very little of it is "green". Today, 6 per cent of global
natural gas and 2 per cent of global coal go into hydrogen production.

 

You might encounter the terms 'grey', 'blue', and 'green' being associated
when describing hydrogen technologies. It all comes down to the way it is
produced.Green hydrogen is defined as hydrogen produced by splitting water
into hydrogen and oxygen using renewable electricity. This is a very
different pathway compared to both grey and blue, according to WeForum.

 

Grey hydrogen is traditionally produced from methane (CH4), split with steam
into CO2 and H2, hydrogen. Grey hydrogen has increasingly been produced also
from coal, with significantly higher CO2 emissions per unit of hydrogen
produced.

 

Blue hydrogen follows the same process as grey, with the additional
technologies necessary to capture the CO2 produced when hydrogen is split
from methane (or from coal) and stored for a long term.

 

In a related article by WeForum published on August 10, 2022, green
hydrogen's high production costs are hampering its industrial application.
For instance, although the steel and chemical industries are major hydrogen
users, many companies are reluctant to shift to green hydrogen. Under the
present market conditions, higher-priced green products are competing
against established lower-priced grey options, particularly in
capital-intensive sectors with low-profit margins.

 

They further recommended that a multi-faceted industrial policy is needed to
facilitate the emergence of green hydrogen as a breakthrough technology in a
world that is heavily locked into fossil fuel-based technologies.

 

-The Exchange.

 

 

 

Malawi Inflation Balloons to 26.7%

The country's headline inflation continues to rise as it now sits at 26.7%,
according to October figures, pushing the cost of living much further up.

 

National Statistical Office says at 26.7%, the rate has risen by 0.8% points
from 25.9% in September.

 

This is as a result of the growing inflation pressure which has kept the
cost of living skyrocketing since September last year.

 

Food and Non-Food Inflation rates are at 34.5% and 18.6% respectively -with
the former, being the main driver of the climbing inflation rate.

 

Rising prices of oil, fertilizer and wheat contributed in setting the pace
of inflation trend since the onset of the Ukraine war induced global supply
chain disruptions.

 

Meanwhile, the Reserve Bank of Malawi (RBM) is projecting annual inflation
to average 21.5%.

 

Consumers Association of Malawi (CAMA's) Executive Director John Kapito has
since warned shoppers of the worsening situation ahead.

 

- Nyasa Times.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
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companies typically involve a higher degree of risk and more volatility than
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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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