Major International Business Headlines Brief::: 04 October 2022

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

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

 


 

 


Major International Business Headlines Brief::: 04 October 2022 

 


 

 


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

 


 

 


 

ü  Pound hits two-week high after debt plan U-turn

ü  Kwasi Kwarteng quietly preparing Plan B

ü  Zelensky and Musk in row over Ukraine 'peace plan poll'

ü  Philippines lottery: Questions raised as hundreds win jackpot

ü  Inflation in Turkey surges to 83%

ü  Tax U-turn lifts pound as borrowing costs fall

ü  Kim Kardashian pays $1.26m over crypto 'pump and dump'

ü  Vodafone and Three in merger talks

ü  UK at significant risk of gas shortages this winter, warns energy
regulator

ü  Uganda Internet Most Expensive in World

ü  Tanzania: Dar On Verge of Major Infrastructure Facelift

ü  South Africa: Reprieve At Petrol Pumps

ü  South Africa: DPE Welcomes Toto Investment Judgment

 


 <mailto:info at bulls.co.zw> 

 


 

Pound hits two-week high after debt plan U-turn

The pound has risen to its highest level for two weeks after the chancellor
attempted to reassure investors by pledging to bring forward details of how
he would cut debt.

 

It rose to $1.14, recovering after Kwasi Kwarteng's plans to fund tax cuts
by extra borrowing worried investors.

 

He will explain how the cuts will be paid for this month, having previously
said he would wait until 23 November.

 

Fears his plans are unaffordable sparked turmoil on markets last week.

 

Conservative MP Mel Stride, chair of the Treasury Select Committee, told the
BBC's Today programme the plan to cut debt would be "critical in calming the
markets".

 

In the wake of the mini-budget, the pound slumped to a record low,
government borrowing costs surged and the Bank of England was forced to step
in and take action after the dramatic market movements put some pension
funds at risk of collapse.

 

The market turmoil was fuelled by the lack of an independent forecast on the
impact of the plans, which had been offered by independent forecaster the
Office for Budget Responsibility (OBR), but was declined by the government.

 

Investors also bet interest rates would rise faster than previously thought,
leading banks to withdraw mortgage products as the uncertainty made
long-term loans difficult to price.

 

Mr Stride said if the OBR forecast stacks up then interest rate expectations
could fall "which is going to matter to millions of people up and down the
country when it comes to their mortgages".

 

Pound dollar graphic

After a backlash from Tory MPs, Mr Kwarteng made two dramatic U-turns on
Monday, first declaring he would not scrap the top rate of tax for the
highest paid and then later agreeing to bring forward his plan to cut debt.

 

This is now due to published later this month, ahead of 3 November when the
Bank of England next meets to make its latest decision on interest rates.

 

Interest rates have risen seven times since December as the Bank tries to
curb inflation - the rate at which prices rise. This is currently at a
nearly 40-year-high of 9.9%.

 

By putting up rates, the Bank aims to cool demand in the economy - and
therefore prices - but it also makes borrowing money for mortgages or other
loans more expensive.

 

Mr Stride said: "If [the OBR forecast] is well received... you might expect
the [Bank of England] to come up with a lower level of interest rate rises,
which of course once again will be very helpful for those with mortgages,
business borrowing, and indeed for the cost of the government servicing its
own debt."

 

However, he said there were doubts over whether the OBR would give the
government its blessing.

 

Mr Stride said much would ride on the government proving that its policies
can, as promised, boost economic growth to a rate of 2.5% a year which will
be "difficult to do".

 

Failing that, Mr Stride said the government would have to "row back" on
other promised tax cuts or "lean into" public spending cuts at time of
soaring inflation, which could meet fierce resistance.

 

According to the Times, cabinet ministers are already openly opposing a plan
to increase benefits in line with wages rather than with inflation, a change
that would save about £5bn.-BBC

 

 

 

Kwasi Kwarteng quietly preparing Plan B

It was not a normal Chancellor of the Exchequer speech. The clue was in its
brevity.

 

There was no new content, no rabbit out of the hat. As others have remarked,
the top rate tax rabbit had in fact been returned to the hat on Monday
morning.

 

The markets did not respond during the speech because there was nothing to
respond to. Sterling remained up on the day, and the effective borrowing
costs of government down.

 

Number 11 will take that after the experience of the last speech, 10 days
ago.

 

Indeed it is difficult not to conclude that the speech, and others at this
conference, have been edited to remove anything that could reignite market
jitters.

 

That seems fairly sensible given the circumstances. It is often forgotten
that Theresa May's conference speeches in 2016 at this same venue made
sterling fall. But such restraint cannot have been the original plan.

 

 

Instead, significant announcements came before and after the main show on
the conference floor. The markets can't wait seven weeks for hard numbers -
that is the reality that Number 11 has come round to, after pressure from
the chair of the Treasury Select Committee. Plan B is quietly taking shape.

 

It was the third time in two days Downing Street had finally accepted a
market consensus view it had at first resisted.

 

First the PM acknowledged some mishandling of the mini-budget, then the
chancellor U-turned on the top rate of tax abolition, and now those eagerly
awaited numbers are being fast tracked.

 

Whatever the impact of these reversals in politics, they should help settle
some nerves in markets. They will provide the basis for solid judgements by
traders.

 

It shows the government is prepared to do what it takes to regain market
confidence. If there was any doubt in the need for that, mortgage broker
Paul Butlin - whose office is a 10-minute walk from the conference centre -
could set it straight.

 

NatWest had just returned to the mortgage market, he told me, repricing
five-year fixes at 1.5 percentage points higher than a week ago. Halifax is
following suit today. As I left, the interest rate on a landlord mortgage
had just doubled to over 7%, well above a commercial return.

 

It's affected business lending too, with big name firms facing borrowing
costs of over 10%. Many cannot really raise finance at that rate and will
have to turn to shareholders. What happened in last week's market turmoil is
only now fully filtering into the economy.

 

So Plan B needs to work.

 

Critical decisions

The Office for Budget Responsibility (OBR) will cost all the policies
announced by the chancellor and provide new numbers for extra borrowing,
taking into account a slowing economy and higher interest rates.

 

The budget watchdog will also cast judgement on the government's claims that
its raft of reform policies will boost economic growth. The less convinced
the OBR is on growth, the bigger the fiscal hole.

 

The numbers will set the parameters for critical decisions on the extent of
spending cuts required to meet the chancellor's fiscal targets, given he has
promised £43bn of unfunded tax cuts.

 

Coalition-style austerity cuts will be difficult to balance with a
cost-of-living crisis, promises to "level up" and backlogs in many public
services.

 

While Downing Street will say that new OBR forecasts necessitate changes of
this order, the experience of the top rate of tax U-turn shows that MPs will
weigh them directly against tax reforms that benefit the wealthy.

 

The popularity of a fiscal measure does, after all, matter. Consideration of
the impact of such changes on the rich and the poor is also a material
factor. The desired impact on growth will have to be weighed against the
impact on macroeconomic stability.

 

There may be a few more U-turns yet to come.-BBC

 

 

 

 

Zelensky and Musk in row over Ukraine 'peace plan poll'

Ukraine President Volodymyr Zelensky has hit back at Elon Musk after the
Tesla boss posted a Twitter poll with his suggestions for ending Russia's
invasion.

 

Mr Musk asked his 107.7m followers to vote on ideas that included ceding
territory to Russia.

 

In response Mr Zelensky posted his own poll asking users if they liked the
world's richest person more when he supported Ukraine.

 

Other Ukrainians criticised Mr Musk.

 

Ukraine's outgoing ambassador to Germany Andrij Melnyk used a strong
expletive, which he described as his "very diplomatic reply".

 

Meanwhile Russian chess grandmaster Garry Kasparov said: "This is moral
idiocy, repetition of Kremlin propaganda, a betrayal of Ukrainian courage &
sacrifice."

 

Mr Musk's ideas included votes in parts of Ukraine occupied by Russia that
Russia says it is annexing.

 

The multi-billionaire said: "Russia leaves if that is will of the people."

 

Russian President Vladimir Putin has already declared four Ukrainian regions
to be part of Russia, following so-called referendums denounced as
fraudulent by Kyiv and its Western allies. Russia does not fully control any
of the four regions.

 

Mr Musk also suggested the world should formally recognise Crimea - annexed
by Russia in 2014 - as part of Russia.

 

Ten hours after being posted the poll had attracted more than 2m votes.

 

Mr Zelensky responding with his own poll asking: "Which @elonmusk do you
like more? One who supports Ukraine [or] One who supports Russia."

 

Eight hours after it was posted, that poll had been voted on more than 1.5m
times.

 

Earlier in Russia's invasion Mr Musk's satellite internet company sent
equipment to the country.

 

That gained Mr Musk popularity in Ukraine and he was subsequently invited by
Mr Zelensky to visit when the war with Russia was over.-BBC

 

 

 

Philippines lottery: Questions raised as hundreds win jackpot

A lottery in the Philippines that saw 433 people strike the jackpot has
drawn surprise and triggered scrutiny.

 

It was the highest number of people to have ever won the Grand Lotto's top
prize, according to local media.

 

The winning combination for last weekend's 236m peso ($4m; £3.5m) jackpot
was a series of numbers which were all divisible by nine.

 

Philippines senate minority leader Koko Pimentel has called for an inquiry
into the "suspicious" results.

 

One expert told the BBC, on the assumption that 10m bets had been placed, he
had estimated that the probability of having this many winners was "1 out of
1 followed by 1,224 zeros".

 

"I don't know a name for this number since it is so large. The number of
molecules in the known universe has 80 zeros," said Guido David, a
mathematics professor at the University of the Philippines.

 

 

Indian man who won lottery hours before selling house

Lucky lottery winners get manhole covers

 

Participants in the Grand Lotto select six numbers from 1 to 55. To win the
jackpot all six of a player's numbers have to match those drawn by the
lottery's operator.

 

"These lotto games are authorised by the Republic of the Philippines.
Therefore, we need to maintain and protect the integrity of these gambling
games," Mr Pimentel said as he called for an investigation into the
lottery's unusual outcome.

 

On Sunday, Melquiades Robles, general manager of the Philippine Charity
Sweepstakes Office (PCSO), said there were no irregularities and highlighted
that people in the Philippines tended to bet on number sequences.

 

"Many have held on to their numbers. It's not only good to be loyal to your
wives and husbands, it's also good to be loyal to your numbers," Mr Robles
told a news conference.

 

The PCSO also shared photographs and videos of people collecting their prize
money at its office in Mandaluyong city, close to the capital Manila.

 

"I've been betting on pattern 9, pattern 8, pattern 7 and pattern 6 for many
years and I'm thankful I just won," one winner said.

 

Terence Tao, a maths professor from University of California, Los Angeles
told the BBC that a pattern like this being a winning series of numbers is
rare "for any single lottery."

 

"But there are hundreds of lotteries every day around the world, and
statistically it would not be surprising that every few decades, one of
these lotteries would exhibit an unusual pattern," he said.

 

"It's similar to how in any given hand of poker it would be unlikely to draw
a straight flush, but if one looks at hundreds of thousands of hands at once
then it actually becomes quite likely that a straight flush would be drawn,"
he added.-BBC

 

 

 

Inflation in Turkey surges to 83%

Inflation in Turkey has climbed above 83% - a 24-year-high.

 

The transport, food and housing sectors have seen the biggest rise in
prices.

 

Independent experts the Inflation Research Group estimate the annual rate is
actually 186.27%.

 

Last year Turkish President Recep Tayyip Erdogan took the unorthodox step of
cutting interest rates to try to boost the economy. Most central banks raise
interest rates to fight inflation.

 

The transport sector saw the sharpest increases in annual prices at 117.66%,
followed by food and non-alcoholic drinks at 93%.

 

Mr Erdogan has described interest rates as "the mother and father of all
evil", and his economic policies include intervening in foreign exchange
markets.

 

Last year's cut in interest rates from 19% to 14% has led to a fall in the
value of the Turkish lira, which means it costs more for the country to
import goods from abroad.

 

The lira, meanwhile, hit a new record low of 18.56 against the US dollar.

 

US Banking giants JP Morgan said Turkey's inflation would remain in the
"abnormally high range until policies get orthodox".

 

Can tourism ease the inflation pressure in Turkey?

Why currency crash does not worry Turkey's Erdogan

"We will build the century of Turkey together, hopefully by overcoming the
inflation issue," said Mr Erdogan in a televised address on Monday.

 

The record high is the sharpest inflation surge since World War Two,
according to former Turkish central bank chief economist Hakan Kara.

 

High inflation and the economic crisis is the main problem facing Mr
Erdogan's ruling party, as he looks to secure another term in next year's
election.

 

Prices are rising quickly around the world, due to factors including
Covid-related supply shortages and the Ukraine war, which has driven energy
and food prices higher.-BBC

 

 

 

Tax U-turn lifts pound as borrowing costs fall

The pound has climbed after the chancellor reversed his controversial
decision to scrap the top rate of tax.

 

Sterling gained more than 1% to $1.1284 before falling back slightly while
government borrowing costs edged lower.

 

Tory MPs had threatened to vote against Kwasi Kwarteng's plan, saying it was
unfair when living costs were so high.

 

The U-turn may ease market nerves, said the Institute for Fiscal Studies,
but unease remains over how a remaining £43bn of tax cuts will be funded.

 

"The difference this makes really is trivial," said Paul Johnson, director
of the IFS think tank.

 

The chancellor pledged to abolish the 45p rate of tax, which is paid by
people who earn more than £150,000 a year.

 

Getting rid of the rate would have cost the Treasury around £2bn out of the
£45bn worth of tax cuts Mr Kwarteng announced in his so-called
"mini-budget".

 

"This was, if anything, possibly the smallest measure from a fiscal point of
view, if not a political point of view, in the mini-budget," said Mr
Johnson.

 

"It is about 5% of the tax cuts."

 

The cut to top-rate tax for high earners sparked anger among opposition and
Tory MPs and spooked markets amid concerns the unfunded cuts were
unaffordable. The chancellor also declined to publish an independent
assessment of his plans by the Office for Budget Responsibility (OBR).

 

Last week, the pound hit a record low and the Bank of England was forced to
step in to stem soaring government borrowing costs.

 

Tony Danker, head of the Confederation of British Industry (CBI), welcomed
the U-turn saying that calming markets was an "absolute pre-condition to
investment and growth".

 

He added it had been a "distraction" from other important pro-growth reforms
promised in the mini-budget. The chancellor is expected to announce reforms
to planning laws, green energy, childcare and more in the coming weeks.

 

But Mr Danker added: "I think we are going to move onto another test, which
is does the chancellor really mean it when he says we are going to reform
the supply side of the economy... because I think that is really needed."

 

'Sustainable footing'

The IFS's Mr Johnson said the U-turn had eased market nerves as there was
"perhaps a sense" the government would "back down" and "listen to opinion".

 

But he warned of more volatility if the chancellor did not use his next
fiscal statement on 23 November to explain how he will fund his tax cuts,

 

"He needs to come up with something fairly convincing ... whether that
involves undoing some more of those tax cuts or some additional tax rises or
something fairly dramatic on the spending side."

 

The National Institute of Economic and Social Research called for an OBR
forecast to be brought forward.

 

"Whilst we welcome this morning's statement, the fundamental issue of how
the government expects to finance both its proposed tax cuts and its
spending commitments to cap the unit price of energy remains unresolved,"
said deputy director Stephen Millard.

 

"The overall package continues to be highly inflationary and will lead to
faster and higher rises in interest rates than would have been otherwise the
case."

 

The Bank of England has been raising interest rates to try and curb
inflation, which is currently at a nearly 40-year-high of 9.9%.

 

On 22 September, the Bank raised rates by 0.5 percentage points to 2.25% -
the highest level for 14 years.

 

It warned interest rates could rise again after the value of the pound
plummeted, following the government's decision to cut taxes and borrow more.
Some were estimating that rates could reach more than 6% next year.

 

However, fears of big rate rises receded slightly after Monday's U-turn on
the 45% tax rate, with investors now forecasting a rise to 5.75% by May.-BBC

 

 

 

Kim Kardashian pays $1.26m over crypto 'pump and dump'

Kim Kardashian has agreed to pay a $1.26m (£1.12m) fine for advertising
EthereumMax on her Instagram page.

 

The US Securities and Exchange Commission said the reality TV star had
received $250,000 for advertising the cryptocurrency, without disclosing she
had been paid to do so.

 

She also agreed not to promote crypto asset securities for three years.

 

Her lawyer told BBC News: "Ms Kardashian is pleased to have resolved this
matter with the SEC."

 

The lawyer said: "Kardashian fully cooperated with the SEC from the very
beginning and she remains willing to do whatever she can to assist the SEC
in this matter.

 

"She wanted to get this matter behind her to avoid a protracted dispute.

 

"The agreement she reached with the SEC allows her to do that so that she
can move forward with her many different business pursuits."

 

'Misleadingly promote'

Ms Kardashian, boxer Floyd Mayweather Jr, basketball player Paul Pierce and
EthereumMax's creators were sued by investors in January.

 

The legal action alleged they had collaborated to "misleadingly promote and
sell" the cryptocurrency in a "pump and dump" scheme designed to inflate the
price before selling to investors.

 

EthereumMax disputed the allegations at the time.

 

In spite of its name, EthereumMax has no legal or business connection with
the Ethereum cryptocurrency.

 

All you need is a few pounds, a YouTube tutorial and a funky name.

 

This month alone, dozens of new tokens will be launched, with creators
promising their coin will be the next big thing.

 

With little intrinsic value to the product, marketing is key - and as in
many modern industries, celebrities can be the make or break.

 

EthereumMax put a huge amount of money into snapping up celebrities such as
Kim Kardashian - and at first, it seemed to be working out.

 

But as with many crypto coins, the fall was as dramatic as the rise.

 

Even if EthereumMax had retained the value it gained after the celebrity
pump, regulators both in the US and UK were extremely uncomfortable about
the marketing of the coin.

 

The crypto industry is still largely unregulated - but Kim Kardashian joins
a growing list of people and companies being punished for promoting these
highly risky products.

 

Gary Gensler, who chairs the SEC, called the case a "reminder" celebrity
endorsement did not necessarily make a product worth investing in.

 

"Ms Kardashian's case also serves as a reminder to celebrities and others
that the law requires them to disclose to the public when and how much they
are paid to promote investing in securities," he said.

 

Later, in a YouTube video about crypto investment, he added: "Celebrity
endorsements... don't mean that an investment product is right for you or
even, frankly, that it's legitimate.

 

"Even if a celebrity endorsement is genuine, each investment has its own
risk and opportunities.

 

"When it comes to crypto, remember many of these are highly speculative
assets.

 

"You may be wondering if it's right for you or even if it might be a
scam."-BBC

 

 

 

Vodafone and Three in merger talks

Vodafone is in talks with Three about merging their UK businesses.

 

It would mean the third and fourth largest mobile phone networks
respectively combining to create a business with 27 million customers,
larger than current leaders BT, EE and Virgin Media O2.

 

The companies say it would accelerate the rollout of 5G and rural broadband.

 

Any deal would be scrutinised by the Competition and Markets Authority
(CMA).

 

Reports suggest the two companies are hopeful of striking a deal by the end
of the year.

 

Vodafone said it would own 51% and Hutchison - which operates Three - 49%
under the deal being discussed.

 

Chances of approval?

Regulators have previously opposed mergers that would reduce the number of
networks in the UK.

 

However, Vodafone has pointed to a recent report from communications
regulator Ofcom which might suggest a new approach.

 

It found that both Vodafone and Three had in recent years delivered returns
on investments that were lower than the cost of the capital they used.

 

But James Robinson, from communication market analysts Assembly, said there
would still be hurdles to overcome for the merged firm.

 

"While the parties might view consolidation as a way to improve returns and
unlock shareholder value, we expect the CMA would be eager to protect
against the risk of consumer price rises - particularly in light of the
current cost-of-living crisis," he said.

 

He suggested the merged firm may need to provide "legally-binding
concessions" to reassure regulators.

 

'Motivation is scale'

Ben Wood, an analyst at CCS Insight, told the BBC that the potential tie-up
was to be expected.

 

"The two companies have made no secret of their interest to consolidate," he
said.

 

"The leading motivation to join forces is scale. In telecommunications, the
most successful companies tend to be the largest; bulking up would offer
many synergies and cost-saving opportunities.

 

"Under the status quo, it's hard to see either operator growing enough
organically to get close to challenging BT and Virgin Media O2 for size in
the UK.

 

Vodafone pairing with Three is just one potential tie-up in the UK.

 

Other deals involving Virgin Media O2, TalkTalk and Sky have been speculated
in recent months.

 

"By combining our businesses, Vodafone UK and Three UK will gain the
necessary scale to be able to accelerate the rollout of full 5G in the UK,
and expand broadband connectivity to rural communities and small
businesses," Vodafone said in an update to shareholders.

 

"The conditions to ensure thriving competition in the market need to be
nurtured, otherwise the UK is at risk of losing the opportunity to be a 5G
leader," it added.

 

Ofcom said it did not have a fixed position in relation to market
consolidation.

 

"Our view is that potential mergers in telecoms markets need to be assessed
on a case-by-case basis, rather than on a presumptive view of the
appropriate number of competitors," it said in its latest report.-BBC

 

 

 

UK at significant risk of gas shortages this winter, warns energy regulator

The UK is facing "a significant risk" of gas shortages this winter,
according to the industry regulator, which could impact electricity
supplies.

 

Ofgem said due to Russia's war with Ukraine, there is a possibility the UK
could enter a "gas supply emergency".

 

This would lead to supplies being cut to power stations which use gas to
generate the country's electricity.

 

Gas-fired power stations generate between 40% and 60% of the UK's
electricity.

 

Firms are at risk of running out of money because of huge charges they pay
if they cannot deliver electricity.

 

Ofgem said: "Due to the war in Ukraine and gas shortages in Europe, there is
a significant risk that gas shortages could occur during the winter 2022-23
in Great Britain. As a result, there is a possibility that Great Britain
could enter into a gas supply emergency."

 

If this happens, supplies would be cut to "the largest gas users" which are
likely to be "large gas-fired power stations which produce electricity to
the National Electricity Transmission System".

 

It is not clear if this could result in electricity blackouts or mean homes
and businesses will face energy rationing this winter.

 

During the Conservative Party leadership campaign, Prime Minister Liz Truss
ruled out rationing.

 

Asked about the risk of blackouts this winter, Ofgem told the BBC: "This
winter is likely to be more challenging than previous ones due to the
Russian disruption of gas supplies to Europe."

 

But it said: "Britain is in a good position with little direct import of gas
from Russia

 

"Nevertheless, we need to be prepared for all scenarios this winter. As a
result, Ofgem is putting in place sensible contingency measures with
National Grid as well as the government to ensure that the UK energy system
is fully prepared for this winter."

 

Ofgem wrote a letter in response to SSE, which operates four gas-fired power
stations in the UK that produce electricity.

 

SSE is concerned that operators of gas-fired power stations face millions of
pounds worth of costs if they are unable to fulfil promises to supply
electricity "caused by events outside their control".

 

A power station will burn gas to create heat which powers a turbine. This
creates electricity which is transmitted up and down the UK's National
Electricity Transmission System via pylons or underground cables.

 

In the event electricity supplies are disrupted because of constrained gas
supplies, generators would have to pay what are known as "imbalance
charges".

 

These cover the cost of National Grid having to find electricity from
elsewhere to meet demand.

 

Ofgem said this "could result in potential insolvency of gas-fired
generators if a gas supply emergency occurs".

 

SSE said that an averaged-sized power station could face charges of around
£276m a day if it is unable to generate electricity.

 

In its letter, which was first reported in The Times, Ofgem said it would
look at the issue of charges as a matter of urgency because it will have a
"significant impact on the safety and security of the electricity system".

 

SSE said that by raising the issue with Ofgem it "would protect security of
supply by ensuring gas-fired power stations are able to provide vital
flexible generation through challenging periods".

 

A spokesperson said: "There is broad industry agreement on the need to
examine this issue, with the decision ultimately one for Ofgem."

 

RWE, which also generates electricity in the UK through gas-fired power,
said it shares and raised the same concerns.

 

"Due to circumstances beyond our control, the station would be heavily
penalised for not meeting its generation obligations."

 

David Cox, an independent energy analyst, said that the UK was heading into
a "very dangerous situation" this winter.

 

"The problem is we get about 40% of our electricity from gas-powered plants
in the UK," he said.

 

Mr Cox noted that the UK will face challenges importing gas from storage
sites in Europe this winter, with European countries facing their own supply
crunch due to Russia's war in Ukraine.

 

A spokesperson for the Department for Business, Energy and Industrial
Strategy said the UK "has a secure and diverse energy system and the
government is confident that the steps it is taking will protect security of
electricity and gas supplies".

 

"To strengthen this position further we are working closely with regulators
and our international partners to ensure UK households and businesses'
energy needs are met this winter."

 

Since its initial invasion of Ukraine, the Kremlin has reduced energy
supplies to Europe while many countries have pledged to shift their reliance
for oil and gas away from Russia.

 

While the UK does not rely on Russia for oil and gas, any disruption causes
a widespread impact on international supplies.

 

Most recently, leaks were discovered at Russia's two main gas pipelines to
Germany, Nord Stream 1 and Nord Stream 2. Though neither were operational,
the EU, US and Nato suggested the damage was intentional. Russia has denied
any involvement.-BBC

 

 

 

Uganda Internet Most Expensive in World

The cost of internet use in Uganda is the highest in the world, according to
research by Surfshark; a cybersecurity company based in the Netherlands that
deals in virtual private network (VPN) services, data leak detection
systems, and private search tools. Surfshark is a subsidiary of Nord
Security, the parent company of NordVPN.

 

According to Surfshark's latest research of 2022, Uganda's internet
affordability ranks 116th out of 117 countries surveyed in the world or 92%
of the global population. This means Internet in Uganda is not affordable
compared to global standards.

 

To afford mobile internet, Ugandans have to work 510 times more (41 min 50
s/month) than Israeli citizens, for whom the most affordable 1GB package
costs only 5 seconds of work monthly. Meanwhile, fixed broadband costs
Ugandan citizens around 59 hours of their precious working time each month.

 

Ivory Coast is the only country with more expensive internet than Uganda in
the world. It is ranked at 117 on Surfshark's Digital Quality of Life Index
2022.

 

 

Internet usage data in Uganda is scanty, but some official data shows that
only 52% of the population has access to the internet. The low penetration
is blamed on the high cost of internet and smartphones and lack of
infrastructure, especially in remote and rural areas.

 

The high cost of internet in Uganda has been blamed on high operating
expense for service providers. The telecom companies must build or lease
infrastructure to connect the country to the fibre cables on the Indian
Ocean coast and deliver the data over a 900km route into the country.

 

In 2018 the Uganda government rattled the sector by introducing an
Over-The-Top (OTT) tax that required users to pay a daily levy of Shs200 to
access over 50 platforms including Facebook, Twitter, and WhatsApp. That
failed and the government in 2021 introduced a 12% tax on internet data.
This pushed up the cost of internet.

 

 

Research shows that expanded internet access can lead to greater economic
activity and other beneficial economic impacts. For close to 40 years since
the 1990s, economies around the world have benefitted from, among other
things, the rapid growth in internet connectivity

 

Access to the internet can drive economic development through improved
productivity of firms, workers, and other inputs in the production process.
It can also connect larger pools of sellers and buyers through e-commerce;
including in rural and remote regions.

 

Access remains low, however, with estimates that only 50% of the world
population today uses the internet. In Africa that figure is about 30%. This
is two years past the United Nations' Sustainable Development Goal target of
universal and affordable access to the internet by 2020.

 

The World Bank in its 2021 Development Report estimates that achieving
universal broadband internet access by 2030 will require an investment of
approximately US$100 billion in Africa alone for, among other investments,
reducing retail costs of using the internet.

 

 

Surfshark's annual Digital Quality of Life Index (DQL) research examines
billions of people regarding five core pillars - Internet affordability,
Internet quality, e-infrastructure, e-security and e-public services - and
14 underpinning indicators that provide a comprehensive measure. The study
is based on the United Nations' open-source information, the World Bank,
Freedom House, the International Communications Union, and other sources.
More than 7.2 billion people were examined for compilation of the 2022
Index. This is the fourth annual edition of the Digital Quality of Life
Index (DQL). Uganda joined the DQL Index for the first time this year.

 

Quick comparison

 

Comparing Uganda with other countries in the East Africa region, Kenya has
the cheapest internet and is ranked at 92 on Surfshark's Digital Quality of
Life Index 2022. Tanzania is ranked at 107. Kenya's internet quality is the
same as Uganda but the internet in the neighbouring country is cheaper
because it has far better electronic infrastructure and better e-government.

 

Tanzania also has cheaper internet than Uganda and almost same quality of
internet and quality of e-infrastructure. Uganda has better e-security than
Kenya and Tanzania.

 

Uganda's internet quality, considering internet speed, stability, and
growth, ranks 107th in the world and is 35% worse than the global average.

 

Regarding internet speed alone, Uganda's mobile internet ranks higher than
fixed broadband in the global ranking, operating at 20.6 Mbps/s (104th
globally). Meanwhile, the fixed broadband internet comes 108th (16.3
Mbps/s).

 

Compared to Kenya, Uganda's mobile internet is 14% slower, while broadband
is 16% slower. In comparison, Singapore's residents enjoyed mobile speeds up
to 104 Mbps/s and fixed to as much as 261 Mbps/s - that's the fastest
internet in the world this year.

 

Out of all index pillars, Uganda's weakest spot is internet affordability,
which needs to improve.

 

Out of the five fundamental digital life pillars, Uganda's best score is for
e-security (66th). This is good news because, according to the researcher's,
E-government and e-security contributed to digital well-being the most;
their investments settled a higher general DQL index. Uganda's e-government
services come 92nd, while internet quality and e-infrastructure rank 107th
and 110th, respectively.

 

According to the Index, Israel has the best digital quality of life this
year, followed by Denmark, Germany, France, and Sweden. Meanwhile, the USA
dropped from 5th position last year to 12th in 2022.

 

Overall, 7 out of 10 of the highest-scoring countries are in Europe, which
has been the case for the past three years. Israel ranks 1st in DQL 2022,
pushing Denmark to second place after its two-year lead. Germany ranks 3rd,
and France and Sweden round up the top five of the 117 evaluated nations.
Congo DR, Yemen, Ethiopia, Mozambique, Cameroon are the bottom five
countries.

 

Other highlights are that the world's poorest countries pay the most for bad
quality internet, some of them having to work an average of 2 weeks to earn
the cheapest fixed broadband internet package.

 

The research found that the internet has become more expensive worldwide.
Compared to last year's results, people have to work six minutes more to buy
the basic broadband internet plan.

 

It found that that money or GDP per capita is not the main driving factor
for the quality of e-infrastructure and a reason for advancing e-security.
Some countries with lower GDP have higher DQL index than expected - 17 out
of 117 countries rank higher in this section.

 

Deepening global digital divide

 

Globally, broadband is getting less affordable each year. Looking at
countries included in last year's index, people have to work six minutes
more to afford broadband internet in 2022.

 

In Ivory Coast and Uganda, people work an average of 2 weeks to earn the
cheapest fixed broadband internet package. The same trend was observed last
year. With the current inflation, the pressure on low-income households that
need the internet has become even heavier. Surfshark's study also found that
countries with the poorest internet connection have to work for it the
longest.

 

"While countries with a strong digital quality of life tend to be those of
advanced economies, our global study found that money doesn't always buy
digital happiness," - explains Gabriele Racaityte-Krasauske, Head of PR at
Surfshark. "That is why, for the fourth year in a row, we continue analyzing
the Digital Quality of Life to see how different nations keep up with
providing the basic digital necessities for their citizens. Most
importantly, our research seeks to show the full picture of the global
digital divide that millions of people are suffering from."

 

The Uganda government appears to be aware of the harm that the high cost of
internet imposes on ICT use and innovations, growth in digital financial
services, e-commerce, e-government and more. According to the Ministry of
ICT and National Guidance, the government aims to reduce the cost of
internet by slashing the national backbone infrastructure fibre data costs
from $70 per Mbps per second to $30by end of 2022.

 

Among highlights of the 2022/23 Financial Year is a Digital Transformation
program to be implemented by the Ministry of ICT to increasing the national
ICT infrastructure, usage in national development and service delivery, and
research, innovation and commerce. The program aims to increase Internet
penetration to 7O% and achieve countrywide 4G coverage.

 

In FY 2021/22 internet access was at 52% with 21 million users and 23
million people using mobile money services. The year saw an increase in
internet use by sectors like education where online classes were in vogue
due to the nationwide lockdowns to stop spread of the COVID-19 disease. Many
firms also switched to use of Virtual Private Networks (VPN) to facility
safety away from office work related applications and e-commerce thrived on
home deliveries of food and sundries. The government also allocated 26% more
money to the ICT sector compared to the previous financial year.

 

Independent (Kampala).

 

 

 

Tanzania: Dar On Verge of Major Infrastructure Facelift

Dodoma — Dar es Salaam is on the verge of a major infrastructure facelift as
the much-awaited construction of a 600bn/- Jangwani Bridge and development
of the Msimbazi valley are scheduled to begin this financial year.

 

Tanzania Rural and Urban Roads Agency (TARURA) Chief Executive Officer, Eng
Victor Seif, told reporters in Dodoma yesterday that the World Bank has
issued 260 million US dollars (about 606bn/-) loan for the construction of
the Jangwani Bridge and Msimbazi valley development programme.

 

He said the financing agreement between the government and the WB was signed
on Friday last week and the project is expected to be effective from
December 31st, this year.

 

 

Feasibility studies and architectural designs for the down and up-stream
infrastructure of the bridge as well as preparations of the key documents on
the environment have been completed, he said.

 

He said the project is at early stages but promised that construction is set
to start before the end of 2022/23 financial year.

 

"Procedures to get contractors for the project will start next month and the
construction works are expected to start within the 2022/23 financial year,"
said Eng Seif.

 

He said since the loan lifespan is six years, he was optimistic that the
construction will be completed within the loan time frame.

 

"The Jangwani bridge construction will not be less than three years and the
Msimbazi valley development project will as well spend three years, but the
duration will be known exactly after signing contracts of the construction
works," said TARURA CEO.

 

 

The project is currently in the preparation process, it will involve the
construction of the new bridge and widening and dredging of the river bed
from Kawawa Road to Selander Bridge to allow easy flow of rainwater into the
Indian Ocean.

 

He said the government is committed to address rural and urban roads
challenges, saying come 2025 almost 85 per cent of the roads network
countrywide will be accessible throughout the year.

 

Eng Seif added that the WB also supported the Roads to Inclusion and
Socio-Economic Projects (RISE) by providing 350 million US dollars (about
816bn/-) soft loan financing, which will give rural areas access to roads in
good condition to enable them to access services and economic opportunities.

 

According to Eng Seif, RISE will upgrade roads with climate resilient
approaches in six rural districts across four regions -- Geita, Tanga, Lindi
and Iringa thus promoting a sustainable model for routine maintenance,
removing bottlenecks that inhibit the improvement of rural roads, and
incorporating people-centered community engagement approaches.

 

 

RISE will also generate around 35,000 jobs, including 19,000 community-based
routine maintenance contracts involving rural communities, with at least 20
per cent of these jobs held by women.

 

The project will also assist in laying the foundation for a greater level of
ambition for inclusive sustainable rural road asset management in Tanzania,
said Eng Seif.

 

Outlining more on development partners support, he said EU grant under the
Agri-connect project will facilitate construction of 43-kilometres of tarmac
roads worth 22.5bn/- in the districts of Kilolo, Wanging'ombe, Busokelo and
Mbozi saying, the project is currently at the procurement stage.

 

Eng Seif affirmed the TARURA commitment to repair and maintain the roads
network and make the roads passable throughout the year for economic and
social access and gains.

 

He said for cost effectiveness, efficiency and time consumption they have
started using alternative tested technologies which engage using raw
materials at the construction sites.

 

He gave an example of the construction of 110 bridges worth 5bn/- by opting
to use raw materials at the sites thus saving more that 50 per cent of the
actual cost, saying they strive for the durability and standards.

 

"We are currently testing the soil quality at the construction sites and see
if they are worth it through the alternative construction technology.

 

Eng Seif said in the 2022/23 financial year, TARURA is planning to undertake
routine maintenance of 21,595.72 road network kilometres, construction of
422.07km at tarmac level and construction of 11,074.56-km at gravel status.

 

TARURA in their 2021/25/26 Strategic Plan intends to increase the tarmac
roads network from the current 2,404.90-km to 3,855.65-km whereas 4.2tr/-
are projected for the construction works.

 

With a countrywide rural and urban roads network of 144,429.77-kilometres,
they will be upgrading them taking into account the government commitment to
increase the agency funds.

 

The Third Five Year-Development Plan (FYDP III) 2021/22) to 2025/26 has
placed priority in taking comparative advantage of the geography and size of
the country to enhance competitiveness, which include improvement of the
road network.

 

However, according to FYDP III, the challenges besetting the infrastructural
sector in Tanzania extend beyond road and transport to unlock Tanzania's
infrastructural potential to attract all sorts of manufacturing and
processing industries, the document suggested for a need to hasten
implementation of various which included complete construction of 2,500 km
of paved roads, construct 6,006 km of paved roads, begin construction of 14
bridges and complete construction of seven bridges

 

Daily News.

 

 

 

South Africa: Reprieve At Petrol Pumps

Motorists will breathe a sigh of relief at the pumps this week as the price
of all grades of petrol is set to come down by between 89 cents and R1.02 a
litre.

 

This marks the third consecutive month of decreases following increases
experienced this year.

 

The Department of Mineral Resources and Energy (DMRE) on Monday announced
that the price of petrol (both 93 ULP & LRP) will come down by 89 cents a
litre while the price of petrol (both 95 ULP & LRP) will come down by R1.02
cents a litre.

 

The adjustment means that a litre of 95 ULP, which currently costs 23.38 in
Gauteng, will now cost R22.36 as of Wednesday.

 

However, the price of diesel (0.05% sulphur) will increase by 10 cents a
litre while the price of diesel (0.005% sulphur) will go up by 15 cents a
litre.

 

The wholesale price of illuminating paraffin will decrease by 61 cents per
litre.

 

The price of illuminating paraffin (SMNRP) will come down by 82 cents, while
the Maximum Retail Price for LPGAS will increase by 19 cents per kilogram.

 

The DMRE said average Brent crude oil prices decresed from $94 per barrel to
$89.79 per barrel during the period under review.

 

SAnews.gov.za.

 

 

 

South Africa: DPE Welcomes Toto Investment Judgment

The Department of Public Enterprises (DPE) has welcomed the Western Cape
High Court judgment on Monday, dismissing with costs Toto Investment
Holdings' application to halt the sale of South African Airways (SAA).

 

Toto approached the court in a bid to force Public Enterprises Minister,
Pravin Gordhan, and the DPE to make records of the sale public and to
interdict the sale of the shares.

 

"Toto Investments wanted to interdict the implementation of the transaction
for the introduction of a strategic equity partner in SAA, pending the
finalisation of the review application. But the court dismissed the
application with costs, including the costs of two counsels," the DPE said
on Monday.

 

 

In addition, the department said the State Attorney suggested the
confidentiality regime before the matter went to court. However, the
investment firm rejected it and requested that all documents be disclosed on
a non-confidential basis.

 

"The court ordered that certain documents be disclosed on a confidential
basis, while others should be disclosed on a non-confidential basis. The
judgment is in line with the suggestions that the State Attorney made to
Toto Investments before the matter was heard in court."

 

According to News24, Toto, an unsuccessful bidder for some of the assets of
SAA, has launched an application to have the sale to Takatso Consortium's
parent company, Harith, set aside. This application is set to be heard at
the end of January 2023.

 

"We welcome the judgment, as we have stated in our affidavit that the
transaction is governed by confidential undertakings and the department was
not at liberty to disclose to third parties certain documents related to the
transaction, unless under a confidentiality regime.

 

 

"Unfortunately, Toto had to press ahead with this ill-fated strategy after
we discussed with them at length about the confidentiality nature of the
transaction," said Gordhan.

 

The judgment, according to the department, paves the way for the department
to proceed with the implementation of the SAA-Takatso transaction.

 

The judge has ordered that the main review application be placed under
judicial case management until the matter is heard in January 2023.

 

However, since the interdict application was dismissed, the department said
it can now continue taking steps to implement the transaction.

 

The DPE said it will comply with the court directive to provide a
non-confidential version of the record of the transaction and the
confidential version of the record within the 20 days stipulated in the
court order.

 

According to the judgment, "the non-confidential record will contain all
documents forming part of the record, save for the confidential information,
which shall be expunged there from".

 

This means that confidential information related to the transaction cannot
be disclosed for public consumption and only non-confidential records may be
shared with the public.

 

"It is interesting to note that certain political parties want to intervene
in this matter with nefarious intentions. It is clear that this is a
political agenda, which is intended to setback and disrupt the reforms of
State-owned entities," the department said, adding that it will facilitate
further corruption.

 

"Furthermore, the question is who is Toto Investments? Who are the people
involved and what is their interest in the matter? Toto Investments must be
open and transparent about who they are and who they represent."

 

Meanwhile, the department said it remains committed to ensuring that this
transaction is implemented soon and that "disruptive forces" will not deter
their efforts in ensuring that a restructured, agile and competitive
national airline emerges.

SAnews.gov.za.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

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

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 159273 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29258 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65561 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221004/18274cc4/attachment-0001.obj>