Major International Business Headlines Brief::: 13 October 2022

[Bulls n Bears]

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Major International Business Headlines Brief::: 13 October 2022 

 


 

 


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

 


 

 


 

ü  Faisal Islam: Veiled concern about Trussonomics at IMF

ü  Cough syrup deaths: India production halted after Gambia child fatalities

ü  Investors nervous as market sell-off intensifies

ü  Closed Ukraine airspace may delay flights next summer

ü  Jacob Rees-Mogg says market turmoil not due to mini-budget

ü  Port of Felixstowe: Strikes having no significant impact, MPs told

ü  Liberia: APM Terminals Liberia Facilitates More Rice Imports

ü  Nigeria: Why Ethiopia Airline Emerged Successful Bidder for Nigeria Air -
Federal Govt

ü  Nigeria's Oil Production Continues Slump Amid Onshore Shutdown

ü  South Africa: Young Entrepreneurs Must Take Advantage of Agriculture
Value Chain

ü  West Africa: ECOWAS Seminar On Recent Economic Situation, Forecasts
Underway

ü  Gambia: We Have Also Lost Our Competitiveness in Terms of Transit -
Clearing Agent

ü  Ghana: VRA Discriminatory Against Volta Basin Dwellers

 


 <mailto:info at bulls.co.zw> 

 


 

Faisal Islam: Veiled concern about Trussonomics at IMF

British economic policy faced some thinly-veiled criticism by other G7
finance ministers at the crucial meeting of major economies at the IMF
yesterday, the BBC understands.

 

While the UK was not identified by name, multiple participants at the round
table, the debut of UK Chancellor Kwasi Kwarteng, raised their concerns
about countries making unfunded tax cuts that threatened financial
stability, at a delicate time, a clear reference to Britain.

 

One G7 minister said privately that the concern was really about how the UK
had "doubled down" even after the clear financial stability implication, and
that explanations would be sought.

 

The US Treasury Secretary Janet Yellen had already said publicly on the
sidelines of the IMF conference that she was "watching UK developments
closely".

 

While she didn't want to comment on UK policy, she said: "I am going to try
to understand what the impact of those policies and their rationale is."

 

Secretary Yellen, a former Federal Reserve Chair told CNBC when asked if UK
fiscal credibility problems were making global markets more volatile said
"at a time when monetary policy is tightening, fiscal policy should have a
stance that complements that that central banks play the lead, but fiscal
policy should be complementary. We've tried to do that in the United
States."

 

The President of the Eurogroup, which represents the Eurozone, the Irish
Finance minister Paschal Donohoe, told the BBC: "The United Kingdom is a G7
economy with their own currency.

 

"And it's absolutely obvious in all of the public statements that have been
made by the Bank of England and by the government of the United Kingdom,
that they're aware of developments that are taking place and have every
confidence in their ability to be able to manage these kinds of
developments."

 

But he stressed that Ireland had taken a "different approach" by deciding
"not to borrow" to fund energy crisis help, because he wanted to make sure
it was affordable and "the need to ensure financial market confidence".

 

The former Bank of England Governor Mark Carney, when asked about the
message being sent by markets to the UK, said, "whether it's in monetary
policy or fiscal policy, or climate policy, credibility comes from
commitment, clear commitment, it comes from transparency, and it's
buttressed by institutions".

 

Mr Carney said he had "full confidence in the Bank of England" to get
inflation back down and to safeguard the financial system and "as a
consequence of both of those markets, will settle and they will price risk
accordingly. And I'm sure the government is aware of that seized of that and
working to ensure that it has the right budget policy".-bbc

 

 

 

 

Cough syrup deaths: India production halted after Gambia child fatalities

Indian health officials have ordered a maker of cough syrups to halt
production after they were linked to the deaths of children in The Gambia.

 

Maiden Pharmaceuticals broke rules "across its manufacturing and testing
activities," Indian regulators found.

 

The World Health Organization (WHO) issued a global alert over four of
Maiden's cough syrups linked to the deaths of almost 70 children.

 

Investigations are currently under way in India and The Gambia.

 

Regulators said that they had suspended all manufacturing activities at the
New Delhi-based firm after finding it had broken a number of safety rules.

 

This was "in view of the seriousness of the contraventions observed during
the investigation and its potential risk to the quality, safety and efficacy
of the drug being produced," they added.

 

 

How was toxic cough syrup sent to The Gambia?

Mothers demand justice over cough syrup scandal

 

Maiden did not immediately respond to a request for comment from the BBC.

 

Last week, the company said it was "shocked to hear media reports regarding
the deaths and deeply saddened by this incident".

 

This came after the WHO issued a global alert over four of Maiden's cough
syrups, warning that they could be linked to acute kidney injuries and the
children's deaths in July, August and September.

 

The global health organisation also warned the products "may have been
distributed, through informal markets, to other countries and regions"
besides The Gambia.

 

The medicines were identified as Promethazine Oral Solution, Kofexmalin Baby
Cough Syrup, Makoff Baby Cough Syrup and Magrip N Cold Syrup.

 

Police in The Gambia are investigating the deaths of the children, as
Gambians demand justice.

 

The President of The Gambia Adama Barrow said authorities would "leave no
stone unturned" in their investigation.

 

In a preliminary report released on Tuesday, police in The Gambia said the
cough syrups were imported to the West African country by a US-based
company.

 

The report also said that the majority of the 50,000 bottles of the
contaminated syrups that were imported into the country had now been
seized.-bbc

 

 

 

Investors nervous as market sell-off intensifies

The turmoil on UK financial markets has intensified after the Bank of
England insisted its emergency bond-buying scheme would come to an end this
week.

 

The cost of government borrowing over 10 years briefly surged to its highest
level since 2008, as investors demanded higher returns to lend to the UK.

 

The Bank has been buying government bonds to prevent a sell-off which could
put some pension schemes at risk.

 

On Wednesday it stressed this help would end on Friday come what may.

 

The Bank first stepped in last month after promises of huge, unfunded tax
cuts in the chancellor's "mini-budget" sparked a dramatic reaction on
financial markets.

 

The pound hit a record low and bond prices fell sharply, forcing the Bank to
promise to buy up to £65bn of government bonds to support their price. So
far it has only spent around £10bn of this pledged amount.

 

But while the intervention initially worked, bond yields - in other words
the interest rates the government pays to investors - are now close to or
above the highs seen straight after the mini-budget.

 

On Wednesday, government borrowing costs over 20 and 30 years both hit their
highest levels since 2002.

 

The Bank increased bond-buying in response as it battled the sell-off.

 

The pound remained stable at $1.10 against the US dollar.

 

The movements came after Bank of England Governor Andrew Bailey bluntly told
pensions funds they had "three days left now and you've got to sort it out".

 

Fiona Cincotta, market analyst at City Index, said "those words seemed to
hit the market quite hard" with the pound falling.

 

If there is further market turmoil on Monday after the Bank pulls out on
Friday, "Andrew Bailey has put himself in a very tight corner there", she
said.

 

"If this does all break loose on Monday, and we have a very risky financial
position, what are the Bank of England going to do? And I think they will
need to step in."

 

'IMF is wrong'

Investor concerns about the mini-budget were heightened by the lack of a
forecast by the independent financial watchdog the Office for Budget
Responsibility (OBR).

 

However, on Wednesday Business Secretary Jacob Rees-Mogg told ITV's Robert
Peston that the OBR's "record of forecasting accurately hasn't been
enormously good" and that "there are other sources of information".

 

He also hit back at the International Monetary Fund (IMF) which had openly
criticised the government's tax cut plans, saying they were likely to
increase inequality, and that the plans would "complicate the fight" against
soaring prices.

 

He said: "I think the IMF is wrong on both counts. I think it's particularly
wrong on energy, and frankly doesn't know what it's talking about.

 

"The IMF is not holy writ and the IMF likes having a pop at the UK for its
own particular reasons. I'm afraid I would never lose too much sleep about
the IMF."

 

What are bonds?

The UK government raises money it needs for spending by selling bonds - a
form of debt that is paid back plus interest in anywhere between five and 30
years.

 

Pension funds invest in bonds because they provide a low but usually
reliable return over a long period of time.

 

However, the sharp fall in their value after the mini-budget forced pension
funds to sell bonds, threatening to create a "downward spiral" in their
prices as more were offloaded, which left some funds close to collapse.

 

Earlier, pensions industry body the Pensions and Lifetime Savings
Association had warned the Bank against the help ending "too soon".

 

It suggested the support should be extended until 31 October, when
chancellor Kwasi Kwarteng is due to detail his economic plan explaining how
he will balance the public finances. The statement will be accompanied by
independent forecasts on the prospects for the UK economy.

 

Mr Bailey told the BBC he had stayed up all night to try to find a way to
calm markets and said the Bank was doing everything it could to preserve
financial stability, but said it had always been clear that the help would
be temporary.

 

"I'm afraid this has to be done, for the sake of financial stability," he
added.

 

The recent turmoil has fed through to the mortgage market, where hundreds of
products have been suspended as the volatility has made it difficult for
lenders to know how to price these long-term loans.

 

Last week, interest rates on typical two and five-year fixed rate mortgages
topped 6% for the first time in over a decade.

 

On Wednesday, the Bank said this was likely to put households under severe
pressure next year. The number having to spend 70% or more of their
disposable income on mortgage rates and essentials is set to reach its
highest level since before the financial crisis in 2008, it said.

 

Faisal Islam: A significant day for the economy

Big and painful cuts needed to fix budget - IFS

The government has said it remains confident in its tax cut plan, with Mr
Kwarteng telling MPs he was "relentlessly focused on growing the economy"
and "raising living standards".

 

But Mr Bailey's words further increase the pressure on the government, and
the chancellor, to come up with an economically credible and politically
viable debt plan, and quickly.

 

Labour's shadow chancellor Rachel Reeves said: "This is a Tory crisis that
has been made in Downing Street, and that is being paid for by working
people."

 

Former IMF deputy director Mohamed El-Erian told BBC News that the economy
was on "shaky ground".

 

In its latest World Economic Outlook report on Tuesday, the IMF acknowledged
the mini-budget would "lift growth somewhat in the near term", although it
would "complicate the fight" against the cost-of-living crisis.-bbc

 

 

Closed Ukraine airspace may delay flights next summer

EasyJet has warned the closure of Ukrainian airspace could continue to cause
flight disruption next summer.

 

Congestion in the skies over Europe is causing delays for airlines, chief
commercial officer Sophie Dekkers told MPs.

 

Ukraine's airspace has been closed since February due to Russia's invasion.

 

Airlines also said the tight labour market would continue to make hiring
enough staff difficult.

 

Ms Dekkers told the Transport Select Committee this had caused a severe air
traffic control challenge, because lots of traffic had to be routed through
"a very narrow funnel across Europe".

 

This, she said, meant any flights going through southern Europe were subject
to delays and knock-on effects.

 

The low-cost carrier does not think this will change in the near future, so
the need to allow for delays would be taken into account when building its
schedule for summer 2023.

 

The travel industry is hoping strong appetite for holidays carries on into
next year to help the sector recover, despite cost-of-living pressures and
other challenges.

 

Demand rebounded quickly after travel restrictions were lifted in March, but
many aviation businesses were caught out by staff shortages, including of
ground handlers.

 

A number of airlines were forced to trim their schedules, and some airports
to impose capacity limits.

 

Looking ahead to next summer, representatives from British Airways and
Gatwick Airport told the committee recruitment remained a challenge.

 

French air traffic control strike affects thousands of passengers

British Airways to cut 10,000 winter flights

EasyJet said that the labour shortage "broadly is the biggest risk for next
year".

 

Gatwick Airport called on the government to open up the sector to
international visas for employment.

 

Figures released this week showed that the UK's number of job vacancies had
dropped back from its record level, but still remained high.

 

Ms Dekkers said EasyJet was finding the market of candidates more restrained
than ever because it could not "use resource from within Europe to be part
of [its] growth".

 

She said the proportion being rejected because they were "international"
applicants and couldn't be offered UK employment had risen from 2% to around
40%.

 

In June, the boss of Ryanair, Michael O'Leary, told the BBC the UK
government should allow more workers from Europe to fill vacancies
post-Brexit. The government said it wanted firms to invest in workers from
the UK.

 

This week Mark Tanzer, the boss of travel association ABTA, said the
recruitment challenge triggered by people leaving to work in other
industries during the pandemic would "certainly continue as the war for
talent rages on".

 

Mr Tanzer also said he expected businesses would "battle strong economic
headwinds for the next year".

 

Heathrow Airport said on Tuesday that the outlook for future demand remained
uncertain due to "growing economic headwinds, a new wave of Covid and the
escalating situation in Ukraine".

 

Heathrow's cap on daily departing passenger numbers, designed to ensure
staffing levels can cope, will be lifted on 29 October.

 

But the airport is working with airlines on an alternative system which can
be used to manage capacity at peak periods such as Christmas, if
necessary.-bbc

 

 

 

Jacob Rees-Mogg says market turmoil not due to mini-budget

Jacob Rees-Mogg has claimed market turmoil is not linked to the mini-budget
in which the chancellor announced big tax cuts without the usual analysis of
the economic impact.

 

The business secretary said volatility was "more to do with interest rates
than a minor part of fiscal policy."

 

He said the Bank of England had not raised rates as fast as the US.

 

But economists and some MPs said the plans had worried investors, pointing
to the surge in borrowing costs.

 

Investors are often wary of putting money into countries that are increasing
their debt.

 

And if a country raises its interest rates it means investors will get a
bigger return on their money if they put it into that country's banks and
assets.

 

 

After the mini-budget, the pound plunged and government borrowing costs
surged.

 

"What has caused the effect in pension funds... is not necessarily the
mini-budget. It could just as easily be the fact that the day before the
Bank of England did not raise interest rates as much as the (US) Federal
Reserve did," he said.

 

"Jumping to conclusions about causality is not meeting the BBC's requirement
for impartiality" he said, after a suggestion the chancellor's actions had
been the trigger for the fluctuations in the value of the pound and
government bonds.

 

At the first PMQs since the mini-budget, Labour leader Sir Keir Starmer
accused Prime Minister Liz Truss of "ducking the question" when asked
whether she agreed with the business secretary.

 

Ms Truss said the government had taken "decisive action", adding "as a
result of our action... we will see higher growth and lower inflation."

 

Bond yields rose sharply after the BoE rate decision on Thursday and further
during the mini-budget

Separately, speaking at the Treasury Select Committee on Wednesday Deutsche
Bank's chief UK economist Sanjay Raja said the mini-budget on 23 September
was the "straw that broke the camel's back".

 

He said the "trade shock" because of Brexit is a factor, and added: "You
throw on the 23 September event, you've got a side-lined financial watchdog,
you've got lack of a medium-term fiscal plan, one of the largest unfunded
tax cuts we've seen since the early 1970s, it was kind of the straw that
broke the camel's back."

 

The Resolution Foundation's Torsten Bell said it was clear the huge package
of cuts, which was downgraded to £43bn after Mr Kwarteng's U-turn on the top
rate of income tax, should not have happened in the current financial
climate.

 

He said the sacking of the Treasury's top civil servant Sir Tom Scholar and
the lack of a report on the economic impact from independent forecaster the
Office for Budget Responsibility (OBR) had contributed to investor unease.

 

"It was no surprise to any of us that this is where you end up".

 

"This is what happens if you aren't paying attention," he said. "It was
always going to be hard but it was exactly because it was always going to be
hard that you don't do this."

 

The latest official statistics showed the economy unexpectedly shrank in
August, strengthening predictions that it will fall into a recession.

 

Faisal Islam: Bank's tough love has consequences

Bank warning pension help to end worries investors

Professor Jagjit Chadha, director of National Institute of Economic and
Social Research (Niesr) told the Commons Treasury Committee that the "real
danger" seen after the mini-budget was "obviously on the back of what can
only be described as guerrilla tactics against our independent economic
institutions over the summer - the Treasury, the Bank of England and the
Office for Budget Responsibility".

 

Gerard Lyons, an economist who advised Liz Truss and Kwasi Kwarteng during
the leadership contest, speaking on the BBC's World at One programme
admitted that the mini-budget "misread" the country's financial situation.

 

However, he argued that everything that has happened was not "solely due to
the mini-budget" but also down to parts of the financial system that were
vulnerable to interest rates going up.

 

The Bank of England has warned interest rates could rise again after the
value of the pound plummeted, following the government's decision to cut
taxes and borrow more.

 

After the market turmoil, it stepped in with an emergency bond-buying
intervention designed to stabilise the economy but said this scheme would
end on Friday.

 

Deputy Governor Ramsden said he was "acutely" aware that millions of
households and businesses were experiencing "real hardship", noting that
"many" of the policy actions were "adding to the difficulties caused by the
current situation".

 

Prime Minister Liz Truss has said the promised tax cuts will boost UK
economic growth and therefore help pay for themselves.

 

The chancellor has committed to fast tracking the independent forecast by
the OBR, the independent budget watchdog, at the same time as his economic
plan detailing how he will pay for the planned tax cuts - which is now due
to be announced on 31 October.-bbc

 

 

 

 

Port of Felixstowe: Strikes having no significant impact, MPs told

A chief at the UK's busiest container port told MPs the recent industrial
action had not caused "any real significant impact" on supply chains.

 

Workers at the Port of Felixstowe in Suffolk walked out twice after the
union Unite rejected a pay deal.

 

The port said many customers had rearranged the transport of their goods due
to the strikes.

 

Miles Hubbard, of Unite, said the port had "withdrawn completely" from pay
talks.

 

Paul Davey, head of corporate affairs at operator Hutchison Ports (UK), and
Mr Hubbard, Unite's regional officer, were called in front of the Transport
Select Committee on Wednesday.

 

The cross-party group of MPs wanted to hear evidence about the travel and
transport disruption affecting the UK across different sectors.

 

The Felixstowe pay dispute led to dockers going on strike at the end of
September for eight days, following a walkout in August.

 

Unite wants Hutchison to grant a pay rise to match the rate of inflation -
currently at about 10%.

 

The port said its wage increase of 7% plus £500 - which it was now paying to
staff - for 2022 was "very fair".

 

Mr Davey said the slowdown in retail sales meant most of the port's
customers already had enough stock for Christmas, while Covid and other
issues meant customers had become used to dealing with delays.

 

"The sense we got from our customers was while the strike wasn't welcome...
they would deal with it like they've dealt with every other disruption," he
said.

 

"They've dealt with the disruption without any real significant impact on
supply chains."

 

Many customers had brought forward shipments, delayed picking them up around
strike days or had re-routed deliveries to other ports, said Mr Davey.

 

John Lewis said last week that 85% of its Christmas goods, many of which
come through Felixstowe, were already in the country.

 

At the start of the month, Mr Hubbard said more industrial action at the
port was possible and 82% of union members had rejected the 7% offer.

 

He told the MPs he thought it "notable that this is the first dispute at
Felixstowe in 30 years".

 

"It's a local dispute... they simply feel they've been given a deal they
can't live with and want to do something to improve their pay."

 

Mr Hubbard said the port was not negotiating, had no wish to resume talks
and would only negotiate on a 2023 pay deal if all trade union campaigning
stopped.

 

"We've made clear throughout we're prepared to talk to them at every
junction - this is a company awash with money," he said.

 

"There is a deal to be done... if you look at the cost of settlement versus
the cost of keeping it going, it just doesn't stack up."-bbc

 

 

Liberia: APM Terminals Liberia Facilitates More Rice Imports

Monrovia — FrontPageAfrica has gathered that a rice vessel chartered by the
Supplying West Africa Traders (SWAT), through the intervention of APM
Terminals Liberia, has docked at the Free Port of Monrovia to bring in
supplies of rice for the Liberian market.

 

The vessel, the NV Ken Star, according to our reporter, brought in 23,000
metric tonnes of rice equivalent to approximately a million bags of rice.

 

This, according to some business tycoons, will significantly alleviate the
ongoing scarcity of rice within sections of the Liberian market.

 

One businessman who was seen at the Freeport of Monrovia in search of rice
to purchase for onward sale, Enerst Mcbourough noted that the development is
timely because it demonstrates APM Terminals Liberia's ability to adjust its
operations to respond to market demands and the exigencies of the time even
in the face of inevitable difficulties.

 

 

FPA also observed that with the experienced maneuvering of the company's
marine staff, the room was made to accommodate this vessel despite the high
water level challenges.

 

Head of Operations at APM Terminals Liberia Etienne Christopher Saint-Jean
who explained this development said the company had to respond to the
current challenges.

 

He praised the highly skilled marine pilots and the entire operations team
for a successful job.

 

"This is a vessel that ordinarily our ongoing dredging activities would not
allow us to host. However, we had to do this to respond to the current
challenges.

 

With our highly skilled marine pilots, we even went beyond the 2-meter space
to accommodate a 5-meter space, and given our 600-meter Berth, this is some
significant work that we are proud of" explained Mr. Saint-Jean.

 

With rice being Liberia's staple food, these past few months of rice
shortage on the market have caused agitations with consumers and the buying
public.

 

This development has received widespread attention from different government
stakeholders including members of the House of Representatives who last
month met the leadership of the rice importers association to deliberate on
solutions.

 

With APM Terminals Liberia's announcement of milestone Cargo deliveries in
September and the successful docking of this rice vessel, it is expected
that more rice will be on the market to alleviate the situation.

 

-FrontPageAfrica.

 

 

 

 

Nigeria: Why Ethiopia Airline Emerged Successful Bidder for Nigeria Air -
Federal Govt

The federal government has explained that Ethiopian airline was chosen ahead
of others as successful bidder to manage its new national carrier - Nigeria
air, in order to open air sky, open market and promote intra-African
business.

 

Stakeholders had condemned the recently announced stake of Ethiopian
Airlines in Nigeria's national carrier, when the federal government said
Ethiopian Airlines as the core investor and technical partner.

 

Minister of Aviation, Hadi Sirika who disclosed this to State House
correspondents after the federal executive council meeting presided over by
President Muhammadu Buhari at the Presidential Villa said it was to open air
sky, open market and promote intra-African business.

 

 

According to him, it was very premature for him to answer because they were
in the process of putting together the full business case that will be
approved by the Federal Executive Council 'shortly before the airline will
kick off.

 

He said there is an EU agenda 2063, which seeks to integrate Africa, and
there is ACFTA, which is the continental free trade agreement within Africa,
and there's also single African Air Transport market.

 

According to him, about 92 per cent of the airlines doing business in Africa
are non Africans and it is high time that perhaps African airlines begin to
come together to form an open market and open air sky where African airline
worth its name can tap into the advantage of this 1.4 billion people market
and then of course, given the chance, we'll always going to partner with the
best.

 

He said "And by the way, Ethiopian airline if they are approved as preferred
bidders in the full business case, they are members of Star Alliance,
explaining that "there are three alliances in the world. The One World which
is Qatar, British airways and so on; the Star Alliance which is Lufthansa,
Turkish, Ethiopian and many others; and then of course the the Sky Team,
which has KLM, Air France and so on.

 

 

"So whichever you pick, you're going to be a member of a huge big
international consortium and alliances. also, I think civilization has
transformed, you do co-share, interlining and partnerships and so on and so
forth.

 

"So really, it doesn't matter and in terms of capacity, most of the
international airlines that are there in the world, Ethiopian airlines can
compete with them substantially.

 

"Some of them like Ethiopian airline are owned by government, they enjoy
certain leverages, but they're not doing badly. I wouldn't want to preempt,
and I don't want this to dominate the airwaves. So please be patient to wait
for the full business case which is coming, I think maximum about three to
four weeks, and the airline will certainly be alive soon," the minister
said.

 

"We have recorded significant milestones and great accomplishments in our
bid to drive Nigeria's economy digitally and our modest successes are
verifiable. The federal government, in the last three years launched several
programmes, policies and initiatives that are entrenching the trust between
the tech ecosystem and the government towards strengthening the Nigerian
digital economy sector," he averred.

 

The director general of NITDA Kashifu Inuwa also shared same sentiment with
the minister as he noted that the Nigerian team will ace the competition and
once again place the country on the global map, while urging urged the tech
innovators to ensure they also learn, unlearn and relearn by participating
in other sideline events and conferences in order to build the necessary
networks to add value to their craft.

 

GITEX Global 2022 is a meeting point for technology professionals and
enthusiasts. The event is a thrust for the Global Startup Movement
attracting world's biggest technology mentors, angel investors and venture
capitalists.

 

Nigerian startups will be showcasing their innovative ideas to the world,
interacting with other startups from different parts of Asia, Africa and
Europe; luring investors to come to Nigeria and invest money in the
country's fast growing Digital economy.

 

-Leadership.

 

 

 

 

Nigeria's Oil Production Continues Slump Amid Onshore Shutdown

Nigeria's oil output continued to fall in September as some onshore
production ground almost to a halt, according to government data.

 

Nigeria produced a daily average of 1.14 million barrels of crude oil and
condensate -- a light hydrocarbon - last month, about 42,000 barrels fewer
than in August, figures published by the Nigerian Upstream Petroleum
Regulatory Commission show.

 

Output has declined steadily since the first quarter of 2020, when Nigeria
produced roughly double the amount, according to the data.

 

The government blames rampant theft on the pipelines that crisscross the
Niger Delta for shutting down wells and killing off investment.

 

 

Production of three major export grades - Bonny, Brass and Forcados - has
shrinked in recent months, with none of them accounting for more than 8,000
barrels per day in September.

 

Nigeria aims to add 500,000 barrels a day to its production by the end of
November, mainly by resuming operations at Shell Plc's Trans-Niger pipeline
and Forcados terminal, Mele Kyari, chief executive of the state-owned energy
company, said this week.

 

However, the Organisation of Petroleum Exporting Countries (OPEC) has raised
its crude oil production by 146,000 barrels per day (bpd) in September
compared to August production.

 

However, the 10 OPEC members in the OPEC+ pact still had their total output
well below the target level under the agreement.

 

OPEC's oil production rose to 29.767 million bpd last month, according to
secondary sources in the cartel's closely watched Monthly Oil Market Report
(MOMR) published on Wednesday.

 

The report indicates that the rise in oil production was the highest OPEC
production level since April 2020, when OPEC's de facto leader Saudi Arabia
and non-OPEC Russia briefly broke the OPEC+ pact and engaged in a price war
as demand was crashing with the start of the lockdowns during the pandemic.

 

In September 2022, crude oil output increased mainly in Saudi Arabia,
Nigeria, Libya, and the UAE, while production in Iraq, Venezuela, and Iran
declined, OPEC said in its report.

 

"Libya has recovered most of the oil production lost to port blockades in
the previous months, but the North African producer is exempted from the
OPEC+ cuts and targets due to the frequent instability at oil terminals

 

Despite the fact that Nigeria boosted its oil production by 31,000 bpd in
September, it is massively lagging behind its quota, and its oil production
is at the lowest level in at least three decades", the report stated.

 

Daily Trust.

 

 

 

South Africa: Young Entrepreneurs Must Take Advantage of Agriculture Value
Chain

Kwazulu — Natal Premier, Nomusa Dube-Ncube, says youth entrepreneurs must
take advantage of the entire agriculture value chain, including
agro-processing.

 

"We are proud of the young people who through the Provincial Youth Fund are
already playing a significant role in the agricultural space and helping our
province create much-needed jobs," Dube-Ncube said.

 

The Premier made the remarks at the unveiling of the Multi-Planting Season
Programme, which aims to provide necessary assistance to underprivileged
farmers.

 

Dube-Ncube said there is a need to focus on youth and women in agriculture,
because the majority of the population is made up of youth and women.

 

 

"Moreover, it is always said that the face of poverty is that of a woman.
Therefore, it is crucial that we involve women and youth in programmes and
projects that aim to eradicate poverty," Dube-Ncube said.

 

According to a recent report by African Union Development Agency,
agribusiness remains central to food security, job creation, and inclusive
growth in many low-income countries.

 

It provides decent jobs and incomes for women and youth in agribusiness,
which have an important spillover effect on economic and social development
outcomes.

 

The report, entitled Breaking Barriers: Women and Youth in Agribusiness,
also points out that with the right working conditions and remuneration,
agricultural employment could help to create a platform from which more
favourable outcomes for women and youth can be realised.

 

 

Dube-Ncube said women and youth play a crucial role in the agribusiness
sector across the globe, adding that agriculture is the most important
source of employment for women and the rising youth population in
Sub-Saharan Africa.

 

Farmers assisted to cultivate over 22 000 hectares

 

Dube-Ncube said in the 2022/23 financial year, the Department of Agriculture
has assisted farmers to cultivate 22 310 hectares in the 11 municipal
districts.

 

She said that a total of 2 000 hectares will be planted in uGu District
during the multi-planting season.

 

"The planting of maize will take 1 300 hectares while the planting of beans
will occupy 350 hectares. Vegetables will take 350 hectares.

 

"The multi-planting season in uGu District has created job opportunities to
800 people, comprising of 650 females, 150 males, 50 young people and 10
people living with disabilities," she said.

 

Small-scale farmers still recovering from after-effects of floods

 

The Premier noted that small-scale farmers were heavily affected by the
destructive floods that battered the province in April and May this year,
and it will take some time for them to recover from the after-effects of the
floods.

 

"These floods, which were described as the worst to hit South Africa in
history, destroyed agricultural crops, which had a very negative impact on
food production, food security and the economy of KwaZulu-Natal.

 

"The government's intervention in the form of Multi-Planting Season
Programme is an effort to cushion the blows while simultaneously ensuring
that food security is not compromised. Smallholder farmers have a huge role
to play in sustaining food and nutrition security in rural communities
during and post COVID-19, hence the need to increase support for them," the
Premier said.

 

She called on private sector to support government's efforts, by extending
loans to finance Black Economic Empowerment deals in the agriculture sector.

 

"Government funding may not go far enough, particularly in the
agro-processing and value-adding part of the agriculture for the previously
marginalized to play a meaningful role."

 

-SAnews.gov.za.

 

 

 

West Africa: ECOWAS Seminar On Recent Economic Situation, Forecasts Underway

Economic Commission for Africa (ECA) in partnership with the Economic
Community of West African States (ECOWAS) yesterday began a four-day 3rd
seminar on the recent economic situation and forecasts for the ECOWAS
English-speaking countries.

 

The main objective of the seminar is to share experiences and take stock of
the recent economic situation and the macroeconomic estimate for the year
2022, forecasts for 2023 and projections for 2024-2025. It also seeks to
contribute to the efforts made to inform the monitoring of the macroeconomic
convergence in ECOWAS countries and to orient national and sub-regional
policy development and programmes.

 

 

Representative of the ECOWAS Commission, Iliyasu M. Bobbo, stated that
following the devastating impact of Covid-19 in 2020, the economy of the
region rebounded and 2020 contracted by 0.8% while in 2021, registered a
growth rate of 4.2%.

 

He added that the recovery, largely attributed to all member states driven
mainly by agriculture, export of raw materials, and activities in the
service sectors, especially the transport and hospitality industry.

 

"Member states' Central Banks also played role in the economic recovery of
2021. The current inflation pressure in the region has forced most of the
banks to revise the trend, including accommodating monetary policy."

 

He continued that the current global economic context marked by the
investigation of inflationary pressures due to the Russia-Ukraine crisis and
the spread of this crisis beyond Europe through commodity trade has already
led to the downgrading of the global growth by the IMF from 6.1% to 3.2%. He
said inflation has also been upgraded to 8.3%.

 

 

On the ECOWAS single currency programme, he explained that the region has
made progress in the areas that are very crucial to the launching.

 

Alhagie Fadera, director of Planning at the Ministry of Finance also stated
the importance of the seminar because as countries, they commit themselves
to evidence-based policy and planning for the availability of reliable data.

 

"Timely data is very important if we are going to adequately formulate
policies but also plans and strategies to address the development agendas
that we face."

 

He added that Africa is confronted with the Ukraine war, insecurity in West
Africa, and climate change which is having a significant impact on our
development. These entire combined challenges, he said, are feeding into
macroeconomic and other socio-economic challenges.

 

Bakary Dasso, senior economic affairs officer, Chief of the Centre for
Demographic Dynamics for Development, stated that ECA estimates indicate
that the economic growth contracted by 0.6% in 2020 in West Africa. He added
that in 2021, growth resumed slowly at 4.3%; a performance below the 7.6%
required to absorb the negative impact of the preceding year.

 

"In 2022, the economic growth is forecast at 4.2% amid inflation pressure in
all the countries of the community. Annual inflation is forecast at 14.7% in
2022, the highest rate of the last decade."

 

He continued that if the current dynamic continues, West African countries
would not achieve key sustainable development goals targets of economic
growth of 7.0%, elimination of extreme poverty in all its forms, health, and
education.

 

Serge Jean EDI of AFRISTAT, explained that it is important once a year to
take steps about the recent economic situation and analyse economic
forecasts for policymakers for the next two years.

 

-The Point.

 

 

 

Gambia: We Have Also Lost Our Competitiveness in Terms of Transit - Clearing
Agent

Sulayman Joof, a clearing and forwarding agent has said The Gambia has lost
its competitiveness in terms of transit to Senegal.

 

Mr. Joof made this remark during a stakeholders consultative forum organised
by Gambia Chamber of Commerce and Industry (GCCI) recently.

 

He said globally trade has gone up, "our transit and our imports all come in
the same vessel and the transit constitutes about 60% but if our charges are
higher than that of Dakar, importers and exporters will rather send their
containers to Dakar."

 

"We have a freight levy that is introduced by the government which was
supposed to be paid by the shipping lines from the freight that they
collected, it should not have charged anything local," he mentioned.

 

 

Mr. Joof, explained that freight has different components and it is
calculated by distance and also the size of the cargo and the number of days
it spends at the ports before discharge.

 

According to Joof, vessels stay for about 24 hours at the Dakar ports, and
vessel spends two to three weeks at the Banjul ports before they could be
offloaded. That is why our freight is much higher than Dakar and coupled
with the demand in the cost of revenue, many importers have left the Banjul
ports.

 

He indicated that they left to other ports especially Senegal whose port is
freer and efficient, adding that cashew trade which Gambia used to boast of
with both Bisssu and Casamance previously using Banjul port for export has
also been taken over by Senegal.

 

Ebriama Wally, the president of clearing and forwarding agents, said the
introduction of business charges against the previous procedures which
allows foreign shipping agencies to act as intermediaries between the port,
ships and cargo owners is affecting business and consumer prices.

 

 

"We will have a concession on how to tackle this problem in order to stop
the exploitation of the business community by shipping lines operating in
the Gambia at the expense of the masses," he said.

 

Mr. Wally said the port was only charging D 750 to handle a container but
today a 20ft container costs D 70,000 and non-returnable fee of D 22, 000 or
D 11, 000 which is worth questioning.

 

Alhagie Cherno Jallow, the Chief Executive Officer (CEO) of AMC Trading,
disclosed that before 2019, 20 ft containers of commodities from Asia were
paying $1200 but now is $1800.

 

Mr. Jallow thus called on Gambia Revenue Authority (GRA) to look for other
means of generating revenue than concentrating more on importation,
otherwise this issue of the high prices would continue and the port would
continue to lose its competitiveness.

 

According to him, the trucks in the past would park all over the port
premises ready for export but that is no more the case because it has now
shifted to other countries,

 

The second-hand dealers at the Serekunda market also added their voices and
called on the Barrow-led government to reduce the taxes levied on imported
items.

 

Buying second-hand products is no longer considered taboo. In fact, recent
studies show that especially young people are proud to buy second-hand
products than the original ones.

 

This development is driven by a multitude of factors, most of them are
linked to two key drivers: It's cheaper and greener.

 

The Point visited second-hand sellers who expressed frustration in the trade
and calls for government intervention.

 

Bakary Dibba, a business man at Serekumda market, said the government should
stop blaming the COVID-19, Russia and Ukraine war and bring solution that
would address the issue of high taxes at the Gambia Port in order to combat
the high prices of basic food commodities in the country.

 

He further called on the government to reduce the taxes levied on them and
also for landlords to reduce the rent charges.

 

Muhammed Drammeh said the income tax was better in the previous government
than President Barrow's government.

 

Mr. Drammeh called on President Adama Barrow to look into the welfare of his
people especially businessmen who are struggling day-to-day for survival.

 

According to him, when the pandemic hit, some experts worried that consumers
might withdraw from buying used items for hygienic reasons. However, the
numbers indicate just the opposite.

 

-The Point.

 

 

 

Ghana: VRA Discriminatory Against Volta Basin Dwellers

Ghanaian Times (Accra)

The construction of Akosombo Dam in 1965 was seen as coming to boost the
country's industrial growth through the provision of hydro-electric power.
And it has been so, at least, to a large extent.

 

However, not the entirety of Ghanaian populace has seen it as such. To the
multitudes of dwellers in the Volta Basin, the fallouts area perfect replica
of scenes from the novel, 'the gods must be crazy' by Jamie Uys, South
African; a curse. The Akosombo Dam, reinforced with the KpongDam,
constructed in 1982, has robbed the people of their livelihoods and
enveloped them in abject poverty. Besides, it has left in its trail
bilharzia, as many of the communities are thirsty of potable water.

 

 

Community Development Programme (CDP)

 

Following untiring outcry by opinion leaders of these communities, the Volta
River Authorities (VRA), in 2011, introduced what it calls Community
Development Programme with the objective of supporting the development of
human resources from its 'impacted communities', through 'educational
scheme'.

 

The Authority claims that under the CDP, it provides support for tertiary
education through the awards of scholarship to give 'equal opportunity to
brilliant but needy students' who are NATIVE and RESIDENT in the impacted
communities. Qualified students interested in the scholarship package are
required to complete an application form with relevant documentations for
'consideration' (https://ww.vra.com).

 

During its 50th anniversary at which the programme was launched, the
VRAoffered scholarship to fifty (50) needy but brilliant students from its
'operational area' with the first beneficiary coming from the Osudoku
Traditional Area, said its website.

 

 

The scheme looks laudable, especially as we are told that it will support
the development of the human resources to contribute to the sustainability
and the growth of the communities and provide opportunities for the youth to
maximise their full potential.

 

At the assembly hall of its International School (AIS) in 2016, according to
a GNA report filed by Edward Acquah in March, 2022, the VRA offered
scholarships to sixty-one (61) brilliant but needy students within its
impacted communities. The then Chief Executive of the VRA, Ing. Kirk Koffi,
assured the audience that VRA would not renege on its efforts to offer
development to the communities in its 'operational areas'. My question is,
what did he mean by 'operational areas'? Is it the same as 'impacted areas',
used during the CDP inauguration?

 

In a recent speech (graphic.com.gh/news), Mr. Emmanuel Antwi-Darkwa, Chief
Executive, VRA, said the scheme was institutionalised following a 'broad
consultation with stakeholders'. He was quoted as describing the CDP as
successful. But that success, for me, is limited to a tiny fraction of the
impacted communities. Why should Mr Antwi-Darkwa hijack that assessment,
instead of leave it to the impacted communities to make?

 

 

He reportedly assured the public of the Authority's commitment to sustain
the scheme and include candidates who have qualified to enter Technical,
Vocational and Educational Training in the 'impacted communities'.

 

He said the VRA has so far awarded 329 scholarships to students within its
operational area to access higher education. Out of this, 95 were said to
have benefited at the tertiary level, while 30 have successfully graduated,
and 234 graduated at the Senior High School level.

 

In March, this year,60 students from 'across the country' were assembled at
Akosombo for the scholarship atGHc 800,000, reported by Ezekiel E. Sottie of
the GNA. The beneficiaries were said to have been drawn from the communities
impacted by the VRA's operations (Akosombo, Akuse, Kpone, and Aboadze).

 

VRA's Ruse

 

Why is it that there is no beneficiary from the whole of Tongu among the 60
students? Is Tongu not impacted? It would have been appreciated if the VRA
had given the Traditional Areabreakdown of the 329 beneficiaries. It is no
secret that applications from some Traditional Areas in Tonguhave become
dusty on the desk of the VRA with very faint consideration probability.

 

There are at least fourteen (14) Traditional Areas constitutingTongu. Only a
few of them have had just a native or two as beneficiaries of the
scholarship. Others cannot point at anyone, even though they submitted
applications on behalf of qualified students. Why the discrimination? Was
this what Messrs Kirk Koffi and Antwi-Darkwa promised for human development
in the impacted areas through scholarships?

 

Criteria for scholarship

 

Among the criteria for the CDP, an applicant must have been a native,
attended school in the Traditional Area, and obtained a single grade (from
BECE to SHS before it became free, but still demanded for SHS to the
university). The people of Tongu are the worst impacted by the operations of
the VRA.

 

If you are above 50 years and ever travelled through Sogakorpe in those
days, you would have noticed booming oyster business there and at other
landing places along the River. 0yster shells were also a huge source of
money. Do you know that oyster shells are used in producing lime, used in
washing minerals? Ghana imports it, and that is how rich Tongu would have
become if the Akosombo Dam had not been constructed.

 

The construction of the Akosombo and Kpong Dams has impeded flow of the
River, consequently resulting in thick growths on the riverbed, thus
rendering oysters extinct.

 

The Riverbed too has been heavily covered with weeds, making fishing a
worthless venture, hence the migration of Tongus to Yeji, Yapei and other
areas upstream so as to continue to practice their natural vocation;
fishing. Is it surprising, therefore, that many of the children being
'rescued' on the Volta Lake as child-labourers are from Tongu?

 

How can anyone ask an applicant from Tongu to justify being needy in the
face of all the harsh conditions afflicting the area? In some of the
communities, it is difficult for pupils to get enough mature palm branches
to weave baskets to sell in order to get money for school.

 

How can such children have the stable mind to study and compete with
applicants from privileged VRA schools for the CDP? As some children from
Tongu, most especially Agave areas, struggle through streams to get to
school in makeshift and leaky classrooms with their disabled furniture on
their heads, their counterparts in good schools have had the first lessons.
And the VRA is pulling wool over our eyes that it is concerned about the
future of our communities.

 

How insensitive can anyone be to compare the academic performance of
children from these deprived communities to those from first grade schools?I
see this as cunningly giving something out with the right hand in the open,
but surreptitiously withdrawing it with the left hand in the dark.

 

Hon Ablakwah to the rescue

 

A few weeks ago, there was a news story of the MP for North Tongu, Hon
Okujeto Ablakwa, shouldering the sponsorship of a Basic School
pupil.SameliaMekporsigbeof BattorD /A Basic School in the North Tongu
District exhibited superlative brilliance by winning a spelling duel in the
whole of the region. The feat she chalked up was exciting and refreshing,
considering the fact that she attends school in a deprived community.

 

So, but for the magnanimity of Hon OkujetoAblakwa, this poor girl's
education could also have collapsed under poverty. What the VRA is failing
to realise is that, all students of Basic Public schools in Tonguare needy.
Does the VRA not believe in ContinuousAssessmentas a better option for
selection? By this yardstick, the VRA is encouraging a 'chew-and-pour'
performance. In any case, who says it takes only single-grade scholars to
develop communities? A highly technically-inclined boy from Tongu, who can
easily produce a radio or torch by connecting carbons and wires, has dropped
out of school. Does this boy not deserve the scholarship to develop his
talent and support others and his community?

 

Was this what the 'stakeholders' from Tongu accepted at the CDP meeting with
the VRA? It is doubtful if Tongu chiefs were part of this meeting. Are the
chiefs, student and youth groups fromTongu content with this lopsided
educational support? The three MPs from Tongushould show more concern and
demand fairness and accountability from the VRA for the negative impacts its
operations have had on the Volta Basin. Only God knows how many of
Samelias'education has been truncated by poverty when, of course, they could
have benefited from the CDP of the VRA.

 

What is the composition of the CDP Board? How many Tongu chiefs are on it,
and who are they? The VRA should give each Traditional Area in Tongu annual
quota for the scholarships. Furthermore, it should create a separate
programme for Tongu, the worst impacted area, to be known as Tongu Community
Development Programme (TCDP).

 

 

 

 

 

 

 

 


 


 


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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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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