Major International Business Headlines Brief::: 21 October 2022
Bulls n Bears
info at bulls.co.zw
Fri Oct 21 11:19:57 CAT 2022
<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::: 21 October 2022
<https://wwww.nedbank.co.zw/>
ü TikTok denies it could be used to track US citizens
ü Amazon could pay UK shoppers £900m compensation
ü Firms hold off investment due to Tory turmoil
ü Europe faces tough decisions over nuclear power
ü Firms hold off investment due to Tory turmoi
ü Africa: No-One Can Be Left Behind - Building Resilient Food Systems in
Africa
ü Nigeria: National Grid Hasn't Collapsed This Year - Minister
ü Nigeria: New Owner Buys Polaris for N50 Billion, Gets 25 Years to Repay
Govt's N1.3 Trillion
ü Nigeria: Relief As Shell Resumes Crude Oil Export At 400,000bpd Forcados
Terminal
ü Nigeria: Kogi Receives First Allocation As Oil-Producing State
ü Nigeria: Airline Operators Lament Bad Treatment of Nigerian Carriers
Abroad
ü Nigeria: Govt Revokes 3400 Mining Licences in One Year
<mailto:info at bulls.co.zw>
TikTok denies it could be used to track US citizens
TikTok has denied a report that a China-based team at its parent company
ByteDance planned to use the app to track the locations of US citizens.
The social media giant said on Twitter that it has never been used to
"target" the American government, activists, public figures or journalists.
The firm also says it does not collect precise location data from US users.
It was responding to a report in Forbes that data would have been accessed
without users' knowledge or consent.
The US business magazine, which cited documents it had seen, reported that
ByteDance had started a monitoring project to investigate misconduct by
current and former employees.
It said the project, which was run by a Beijing-based team, had planned to
collect location data from a US citizen on at least two occasions.
The report said it was unclear whether American citizens' data was ever
collected but there had been a plan to obtain location data from US users'
devices.
In a series of tweets TikTok's communications team said the report lacked
"both rigor and journalistic integrity".
It added that "Forbes chose not to include the portion of our statement that
disproved the feasibility of its core allegation: TikTok does not collect
precise GPS location information from US users, meaning TikTok could not
monitor US users in the way the article suggested."
In response to a BBC request for comment a Forbes spokesperson said: "We are
confident in our sourcing, and we stand by our reporting."
Privacy concerns
The developers of apps have come under scrutiny from authorities around the
world, especially over the data of military and intelligence personnel.
In 2020, a US national security panel ordered ByteDance to sell TikTok's
American business over concerns that users' data could be passed to the
Chinese government.
TikTok said it migrated US users' information to servers at
Austin-headquartered Oracle this June, to address some regulatory issues.
Meanwhile, TikTok is facing a £27m ($30m) fine in the UK, for failing to
protect the privacy of children using the platform.
Last month, the UK's Information Commissioner's Office found that the
video-sharing platform may have processed the data of under-13s without
appropriate consent.
The watchdog said the breach took place over more than two years - until
July 2020 - but that it had not yet drawn final conclusions.
Tiktok has disputed the findings and said they were "provisional".
TikTok is the world's fastest-growing social media app and has been
downloaded more than 3.9 billion times.
It has made more than $6.2bn (£5.5bn) in gross revenue from in-app spending
since its launch in 2017, according to analytics company Sensor Tower.-BBC
Amazon could pay UK shoppers £900m compensation
Amazon shoppers in the UK could receive a share of £900m in compensation,
once a legal claim is submitted against the technology giant.
The proposed claim alleges the company breached competition law and caused
customers to pay higher prices.
It is being led by consumer-rights champion Julie Hunter, who says products
sold on Amazon.co.uk and the Amazon app obscured better-value deals.
The collective action is due to be filed before the end of the month.
Started as an online bookseller, Amazon is now the biggest e-commerce
company in the world.
More than 80% of purchases on the site are made via featured offers in the
"buy box".
But Ms Hunter alleges independent sellers are excluded from the buy box,
even when they offer the same product cheaper or on better terms - thus
breaching UK and EU competition law.
"Nine out of 10 shoppers in the UK have used Amazon, according to surveys,
and two-thirds use it at least once a month," she said.
Ms Hunter alleges Amazon uses "tricks of design to manipulate consumer
choice and direct customers towards the features offers in its buy box".
This featured offer is the only one considered and selected by the vast
majority of users, many of whom trust Amazon and wrongly assume it is the
best deal, according to Ms Hunter.
The legal action, to be filed in the Competition Appeal Tribunal, in London,
will seek damages from Amazon estimated in the region of £900m.
David Greene, from the London Solicitors Litigation Association, told BBC
News the likelihood of success was difficult to assess.
"Clearly Amazon will fight the case at all stages, including class
certification, but the tribunal has made a number of orders recently for
similar actions, certifying the optout process," he said.
"Big tech companies are well resourced to fight."
Who is eligible?
Anyone living in the UK who has made purchases on Amazon.co.uk or the Amazon
mobile app since October 2016 is an eligible member of the claimant class.
The proposed lawsuit is an optout collective-action claim, which means
affected shoppers, on whose behalf the class action is brought, will not pay
costs or fees to participate.
Lesley Hannah, one of the partners at Hausfeld and Co LLP, who are leading
the litigation, said: "Competition laws are there to protect everyone. They
ensure that individuals can make genuine and informed choices and are not
simply led into making selections which benefit the companies they interact
with.
"Fairness is at the heart of competition law - and consumers are not being
treated fairly by Amazon."
Ms Hunter added: "Amazon shouldn't be allowed to set the rules in its favour
and treat consumers unfairly. That is why I am bringing this action."
An Amazon official said: "This claim is without merit and we're confident
that will become clear through the legal process.
"Amazon has always focused on supporting the 85,000 businesses that sell
their products on our UK store - and more than half of all physical product
sales on our UK store are from independent selling partners.
"We always work to feature offers that provide customers with low prices and
fast delivery."
Other Amazon investigations
The European Commission is pursuing two formal anti-trust investigations
into Amazon.
One, from November 2020, is evaluating the same alleged "self-preferencing"
by Amazon as is alleged in the UK claim.
The commission's preliminary finding was the rules and criteria for the buy
box unduly favoured Amazon's own retail business and marketplace sellers
using its logistics and delivery services.
It is currently evaluating commitments offered by Amazon to address these
concerns.
In July 2022, the Competition and Markets Authority (CMA) announced it was
investigating Amazon's business practices, including how it set the criteria
for selecting of the featured offer.
The CMA indicated its investigation followed on from the European
Commission's.-BBC
Firms hold off investment due to Tory turmoil
There is good news and bad news for the government this morning.
The good news is that the financial markets have not taken further fright at
the extraordinary political scenes of discord and chaos in the UK's
governing party.
As Tony Danker of the CBI business lobby group said to me last week, "market
stability is a pre-requisite for business investment - nothing happens if
the government's borrowing costs (which affect all borrowing costs) are
soaring".
Government bond yields (the interest rate the government has to pay to
borrow) were stable this morning and are half a percent below the level seen
in the aftermath of the disastrous mini-budget.
There is a striking consensus among business leaders and owners in their
appreciation of the calming influence of the new Chancellor, Jeremy Hunt.
"He's started well," said one. "I don't care who is PM as long as they don't
mess with Hunt," said another. "Either we have a new prime minister with
Hunt as chancellor or another chancellor with Hunt as PM," said another.
They appreciate that the reverse-budget he delivered has reduced what is
openly called "the moron premium" that the UK government, and therefore
everyone else, has to pay to borrow.
That's the good news. The bad news is that stability is necessary for
investment, but it is not sufficient.
"The UK is uninvestable right now," according to the head of the UK
subsidiary of an international company.
Another boss told me: "We need to see what incentives to invest there will
be in the government's new plan and where the OBR ends up," a reference to
the independent analysis of the Office for Budget Responsibility watchdog
that usually accompanies big economic policy decisions and which was so
glaringly absent from the recent mini-budget.
The other bad news is that there is little confidence that the Conservative
Party will be able to agree on what the climate for investment will look
like.
Key issues such as planning reform and immigration policy are big factors
when businesses are choosing to invest and the Conservatives seem riven with
the kind of conflict that produced the chaotic scenes over a vote to ban
fracking cunningly tabled by the Labour Party.
Immigration is a particularly sensitive one for business and the Tory party
in a post-Brexit world.
As one (Brexit-voting as it happens) UK chief executive said to me: "I can
see why you would want to control immigration, but that doesn't mean having
a pathological hatred of it with totally arbitrary targets.
"I can see why you might want the freedom to change some regulation or
diverge in some areas but not an obsession to deregulate or diverge for its
own sake - that makes life harder for business not easier."
Many business leaders fear that there is no one unity candidate who can get
everyone in the same tent. The frackers and the anti-frackers, the planning
looseners and the nimbys, the fans of a hard line on the numbers of foreign
workers and those who recognise it is very hard to grow an economy unless
you have the workers to do the additional work.
The last text on my phone last night said: "They need to find a unity
candidate, back them or hold a general election very soon."-BBC
Europe faces tough decisions over nuclear power
Decisions around the future of nuclear energy are urgently needed in Europe.
Russian supplies of natural gas have been disrupted amidst the war in
Ukraine, energy prices have soared to emergency levels.
Meanwhile, some countries are suffering a lingering hangover from the
Covid-19 pandemic. In France, half of the country's nuclear power plants are
currently not operating.
The main reasons are corrosion, planned maintenance, and delayed maintenance
due to pandemic-linked staffing issues, explains Phuc Vinh Nguyen, who
researches European energy policy at the Jacques Delors Energy Center in
France.
Mr Nguyen warns that across the EU the energy price crisis will probably
last until at least 2024.
In this situation, some see the use of nuclear reactors as a way to decouple
from Russian natural gas.
Russian influence also looms over many aspects of nuclear power generation:
Russia dominates the supply of nuclear fuel, the enrichment of uranium, and
the building of nuclear power plants in other countries.
At Leibstadt, Switzerland's largest and youngest nuclear power plant, half
of the uranium supply currently comes from Russia. There, as elsewhere,
there's a scramble to source more uranium from outside the Russian sphere of
influence.
The backdrop to this is that the Russian occupation of the Zaporizhzhia
nuclear facility is raising fresh fears about the weaponisation of nuclear
science.
Fabian Lüscher, who heads the nuclear energy section at the Swiss Energy
Foundation (SES), says that Europe's ageing nuclear fleet is not adapted to
deal with contemporary terrorist attacks and cyberattacks. "You even have to
think of those very unlikely possibilities when planning risky
infrastructure," Mr Lüscher argues.
And then, of course, there's the problem of nuclear waste.
Angélique Huguin is part of a group of activists affiliated with the
anti-nuclear movement Sortir du nucléaire, who have taken up residence near
the Cigéo nuclear research laboratory in northeastern France.
The activists share a home in the charming commune of Bure, amidst stone
houses with bright blue shutters.
Ms Huguin argues that it is irresponsible to leave the problem of nuclear
waste for future generations. And she believes that the nuclear accidents at
Chernobyl and Fukushima are "evidence that you have to stop" supporting
nuclear power.
UK looks to Sweden for a solution to nuclear waste
While countries like France and Hungary are continuing to bet on nuclear
power, Austria and Luxembourg are opposed. Others, like Belgium and
Switzerland, are more ambivalent.
The countries' fortunes are interlinked, as they often transact energy
supply with each other. And, of course, risks of nuclear accidents extend
across borders.
Germany is a key player here. It had planned to decommission all of its
nuclear power plants by the end of 2022, yet has decided to extend the
operation of two plants to at least April 2023. Uncertainty hangs in the
air.
People supporting the transition away from nuclear argue that this is an
opportunity to ramp up wind and solar energy, which is much cheaper and less
risky than nuclear.
Others argue that some share of nuclear energy is necessary for a stable
power supply, during fluctuations in solar and wind energy.
While Germany is betting on green hydrogen to shore up its energy system, Mr
Nguyen notes that costs and transport are very challenging. "Hydrogen should
be seen as a 'champagne' technology," he says.
Further complicating Europe's energy picture, politically driven
misinformation has clouded the debate. Across the continent, energy
discussions quickly turn ideological, linked to political affiliations and
cultural attachments.
What's clear is that there is little time to waste given the urgency of the
climate and energy crises. Ordinary Europeans can't afford to wait decades
for green hydrogen to mature, for new nuclear plants to begin operating, or
for small modular reactors to become viable.
And tough choices need to be made because of limited financial resources.
Uncertainty around the phasing out of nuclear in Switzerland is limiting
investment in renewables there, according to Mr Lüscher.
Meanwhile, "new-build nuclear power plants in Europe are the most expensive
way to create electricity", he says.
It is hugely expensive to build and decommission a nuclear plant. Then there
is the cost of managing the nuclear waste.
One transitional step is to limit energy use, and France plans to reduce
this by 10% over two years.
France's Prime Minister Elisabeth Borne leaves after the weekly cabinet
meeting at the presidential Elysee Palace in Paris on October 12, 2022.
In a speech on 6 October, Élisabeth Borne, the French Prime Minister, urged
a broader transformation.
"The reduction in energy consumption must be part of the long term
it is
not a matter of principle or ideology. It is about the ecological
transition. Our sovereignty is at stake. It is about our purchasing power,"
she said.
This may not be a comfort to those struggling with energy bills. And as
winter comes, energy use is expected to peak across the continent.
Campaigners argue that governments should be encouraging homeowners to
install more insulation and better manage their energy-hungry devices.
Mr Nguyen believes that this is a landmark moment not only to shape future
energy infrastructure, but also to embed behavioural changes. "We can build
a narrative where sufficiency measures are part of the solution."-BBC
Firms hold off investment due to Tory turmoil
There is good news and bad news for the government this morning.
The good news is that the financial markets have not taken further fright at
the extraordinary political scenes of discord and chaos in the UK's
governing party.
As Tony Danker of the CBI business lobby group said to me last week, "market
stability is a pre-requisite for business investment - nothing happens if
the government's borrowing costs (which affect all borrowing costs) are
soaring".
Government bond yields (the interest rate the government has to pay to
borrow) were stable this morning and are half a percent below the level seen
in the aftermath of the disastrous mini-budget.
There is a striking consensus among business leaders and owners in their
appreciation of the calming influence of the new Chancellor, Jeremy Hunt.
"He's started well," said one. "I don't care who is PM as long as they don't
mess with Hunt," said another. "Either we have a new prime minister with
Hunt as chancellor or another chancellor with Hunt as PM," said another.
They appreciate that the reverse-budget he delivered has reduced what is
openly called "the moron premium" that the UK government, and therefore
everyone else, has to pay to borrow.
That's the good news. The bad news is that stability is necessary for
investment, but it is not sufficient.
"The UK is uninvestable right now," according to the head of the UK
subsidiary of an international company.
Another boss told me: "We need to see what incentives to invest there will
be in the government's new plan and where the OBR ends up," a reference to
the independent analysis of the Office for Budget Responsibility watchdog
that usually accompanies big economic policy decisions and which was so
glaringly absent from the recent mini-budget.
The other bad news is that there is little confidence that the Conservative
Party will be able to agree on what the climate for investment will look
like.
Key issues such as planning reform and immigration policy are big factors
when businesses are choosing to invest and the Conservatives seem riven with
the kind of conflict that produced the chaotic scenes over a vote to ban
fracking cunningly tabled by the Labour Party.
Immigration is a particularly sensitive one for business and the Tory party
in a post-Brexit world.
As one (Brexit-voting as it happens) UK chief executive said to me: "I can
see why you would want to control immigration, but that doesn't mean having
a pathological hatred of it with totally arbitrary targets.
"I can see why you might want the freedom to change some regulation or
diverge in some areas but not an obsession to deregulate or diverge for its
own sake - that makes life harder for business not easier."
Many business leaders fear that there is no one unity candidate who can get
everyone in the same tent. The frackers and the anti-frackers, the planning
looseners and the nimbys, the fans of a hard line on the numbers of foreign
workers and those who recognise it is very hard to grow an economy unless
you have the workers to do the additional work.
The last text on my phone last night said: "They need to find a unity
candidate, back them or hold a general election very soon."-BBC
Africa: No-One Can Be Left Behind - Building Resilient Food Systems in
Africa
Africa has the natural resources and the policies required to tackle poverty
and hunger - but these policies are not effectively implemented. Noting the
impact of Russia's invasion of Ukraine on the continent's food systems and
the innovations introduced to respond to the COVID-19 pandemic, SIFISO
NTOMBELA provides practical measures to improve food security, also arguing
that exporting food can be a source of economic strength.
INTRODUCTION
South Africa is one of the largest and most important producers of
agriculture and food products in Africa. The strategic and economic policy
frameworks guiding investments and the growth trajectory are the National
Development Plan (NDP) and the United Nations' Sustainable Development Goals
(SDGs), which provide a vision and pathway towards a resilient and
sustainable food system by 2030. The country has also created the
Agriculture and Agro-Processing Master Plan (AAMP), a social compact aimed
at accelerating the implementation of the NDP goals by leveraging the
private sector's skills, resources and knowledge. Moreover, the AAMP is
designed to drive the sector's recovery from the effects of the COVID-19
pandemic, the violent protests that occurred in July 2021 that impacted on
key trade corridors linking the coastal and inland areas, and the conflict
between Russia and Ukraine.
The aforementioned policy frameworks are aligned to the African continental
developmental agenda outlined in the Comprehensive Africa Agriculture
Development Programme (CAADP) and Africa Agenda 2063 - "The Africa We Want".
>From an agricultural perspective, South Africa's contribution to "The Africa
We Want" includes investing in agricultural infrastructure, research and
development, technology and expanding land under irrigation to increase
productivity and food security. These goals are affirmed in the AAMP, which
recognises that large tracts of land are underutilised or lying idle despite
the high level of food insecurity.
The challenge of underutilised land amid high levels of poverty and food
insecurity is not unique to South Africa. It is estimated that Africa holds
60% of the uncultivated arable land in the world, which suggests the
continent has the potential to feed itself.
In essence, Africa has both the natural resources and policies required to
tackle poverty and hunger. However, lack of policy implementation is holding
back development on the continent.
The African Union's CAADP Biennial Review report (2021) showed that only 20
out of 47 countries that provided reports were on track to achieving the
goals and targets set out in the CAADP report, namely ending hunger, halving
poverty and improving the resilience of livelihoods and agricultural
production by 2030.
This article unpacks the underlying factors that constrain progress in
addressing the food security and poverty problems in South Africa and the
rest of Africa. It identifies measures that need to be implemented and
prioritised to address these issues.
Lastly, it puts forward some approaches and enablers required to scale-up
the implementation of policies and programmes aimed at building resilient
African food systems that leave no-one behind and help the country and the
continent bring an end to hunger.
FOOD SYSTEM BOTTLENECKS IN AFRICA
South African agriculture has showed remarkable resilience in the past
decade, even during the COVID-19 hard lockdown. The agricultural sector grew
by 13.4% in 2020 and a further 8.3% in 2021 underpinned by good rains,
improved partnerships between the private and public sectors to attract
investments, and good policies and regulations. Both the short- and
long-term growth in South Africa can be attributed to the agility of farmers
to adapt to ever-changing domestic and global policies, technology and an
innovative environment. Since the deregulation of South Africa's
agricultural sector in 1996, it has gradually become an export-oriented
sector generating more than 55% of its annual value-add from foreign
earnings in 2021 (DALRRD, 2022).
Roughly 90% of the country's food is produced by large commercial farmers
who are responsible for the current food security and foreign earnings
(NAMC, 2020). These large-scale farmers and agribusinesses dominated the
entire agricultural and food value chains after deregulation, liberalisation
and privatisation of state-operated marketing boards and the removal of food
price controls and farm subsidies between 1994 and 1998.
Overall, the deregulation and privatisation of the agricultural sector
resulted in positive growth with production doubling in volume over the past
two decades and maintaining high employment of about 865,000 jobs at the
farm level and roughly 235,000 jobs at the processing level.
Though the aggregate picture is positive, food security at the household
level and the exclusion of small-scale farmers have become problematic,
contributing to the widening inequality gap in the country.
This dual problem of few large- scale farmers and many small-scale farmers
coupled with the ageing infrastructure such as roads, ports and storage
facilities are impacting on the sustainability of the sector and increasing
its vulnerability to external shocks such as the COVID-19 pandemic and
climate change. The infrastructure deficit and exclusion of small-scale
farmers in the formal food value chains is also found beyond the South
African borders. The African Development Bank (AfDB, 2018) estimates that
Africa requires US$360 billion (just over R6 trillion) to address the
infrastructure deficit on the continent. This requires investments
equivalent to 60% for energy infrastructure, 37% for transport and
logistics, 2.5% for water infrastructure and about 1% for information and
communication technologies infrastructure.
The effects of the aforementioned bottlenecks on South Africa and the
continent's food systems were compounded by the conflict between Russia and
Ukraine, which began in February 2022. The conflict manifested in two ways,
firstly, in the sharp rise in input prices, mainly for seeds, fertilisers
and fuel, which consequently limited the ability to produce food, in
particular for the small-scale and subsistence farmers who are resource
poor. In countries such as South Africa, Namibia, and other similar states,
farmers purchase all their seeds and inputs directly from the market with
minimal state support. Secondly, the conflict resulted in difficulties in
importing essential commodities such as wheat, maize and sunflower oil
because of the high shipping prices and delays as well as export bans by
major agricultural exporting nations. These drove food prices higher,
resulting in many citizens in Africa being unable to afford basic food.
In the first six months of 2022, food prices have escalated by between 8%
and 44% in various countries, depending on the type of commodity and demand
levels. This has caused panic amongst citizens in the region and raised
concerns about the current food system in countries that are heavily
dependent on imported products, particularly island economies such as the
Seychelles, Mauritius and Madagascar. Even countries like South Africa,
which is capable of producing food and is far more food secure than the rest
of the continent, still relies on imports for palm oil, rice and wheat. The
fluctuation of input prices, particularly for fuel, restricts access to food
by the general population across the region.
The impact of the conflict on the region is not uniform as some countries
are impacted more than others depending on the extent of their trade with
Russia and Ukraine.
SOLUTIONS FOR SCALING UP FOOD SYSTEMS AND FOOD SECURITY
Most African states, including South Africa, have committed themselves to
achieving the SDGs and CAADP goals to end hunger by 2030 and halve poverty
through investing in sustainable agricultural production systems and
improving resilience to external shocks. The resources and skills capacity
to achieve these developmental goals are dependent on the type and quality
of partnerships that governments and the private sector form to attract
investments, technology and innovation on the continent. This means
leveraging on private sector partnerships to upscale the implementation of
existing policies and programmes.
Many stakeholder consultations in South Africa have resulted in the
development of NDP and AAMP economic frameworks and identified various
game-changing solutions that could transform the food systems of South
Africa and put the country on a trajectory to achieve the goals outlined in
NDP 2030, AAMP 2030, the UNSDGs 2030 and the AU's Agenda 2063. Some of these
solutions are not only relevant and applicable to South Africa but also to
the rest of the continent. However, to fully implement these solutions,
there is a need to recognise the weaknesses in the current food systems
while building on the successes achieved to date.
Through the AAMP process, there is clarity and broad agreement on building
new national food systems that contribute to improving the health and
nutrition of all citizens; the livelihoods of those working in the food
systems; and resilience in the face of climate change, the COVID-19
pandemic, violent conflicts and other as yet unknown external shocks. The
wellbeing of women and children and their inclusion in building strong and
resilient food systems are equally important in ensuring the SDGs and AAMP
objectives are met.
SOLUTIONS TO LEVERAGE ON PRIVATE SECTOR PARTNERSHIPS
1. Maintain open trade and remove barriers
Most countries in Africa depend on imported fertilisers, wheat, maize,
sunflower and oil commodities for local consumption. Since the onset of
COVID-19 and the conflict between Russia and Ukraine, an increasing number
of countries in the world are implementing trade distorting measures,
including export bans, to protect local production and consumption.
It is recommended that African countries maintain open trade policies to
advance intra-African trade and regional value chain integration and
development, and to take advantage of opportunities created by the new
African Continental Free Trade Area.
Any trade distorting measures within the continent must be removed to allow
fair trade and ensure availability and access to food for all.
2. Support local production for local consumption
Small-scale and subsistence producers should be comprehensively supported to
ensure availability of food at community and household levels.
If small-scale producers are supported through improving the local value
chains, local economies would also benefit as less money would be spent on
commuting to towns and cities to buy food. This will subsequently reduce the
level of carbon emissions as transportation of food and persons will be
reduced. The support provided to small-scale producers needs to be properly
comprehensive as the allocation of farms or other relevant infrastructure
without comprehensive support packages is detrimental.
Support for local food production will reduce reliance on imported food.
Most countries on the continent rely on imported food products such as wheat
and maize even though these countries have local foods and the indigenous
knowledge needed to farm grains, fruits, vegetables and animals. It is
important that national governments upscale expenditure on small-scale
farmer support, prioritising women and youth, to produce traditional,
indigenous and "smart foods" that address nutrition security and
environmental concerns.
This will ensure that food access and affordability are achieved at the
household level in each country.
3. Strengthen biosecurity control to improve food safety, traceability
Food safety is prioritised for food products that are imported and exported,
while local food products from small-scale and subsistence farmers are
neglected in this regard. Food safety standards should be improved
throughout the value chain to ensure that only good quality food reaches
communities. There is a need to invest in food safety and the same steps
that are taken to ensure the safety of food for export need to be followed
in the sale of food across all countries and regions in Africa. Furthermore,
the traceability of animals is critical to safeguard animal disease
outbreaks.
4. Reintroduce agriculture in the school curriculum
Governments, businesses and communities should establish and maintain an
education curriculum for food security and nutrition from prenatal and early
child development learning through basic education, tertiary and post-school
education in order to produce, empower and maintain balanced and
well-equipped citizens as valuable and productive members of the household,
community, society and country. There is a critical need to reintroduce
agriculture and other food production topics as a practical subject in
schools. This way children will grow up knowing the importance of food
production and the effect food has on their overall health and wellbeing,
including their economic wellbeing. Governments could also consider opening
training centres run by graduates to train communities on basic food
production.
5. Promote indigenous knowledge systems
Inclusion of the indigenous and aquatic or "blue foods" (including marine
and fresh-water wild-caught aquatic foods and aquaculture) in the food
basket should also be considered. Further, household producers are no longer
utilising traditional food preservation methods that ensured communities had
food until the next harvest. Multi-stakeholder collaboration is required to:
a. Introduce consumer education about food preservation and reduction of
waste and loss;
b. Undertake research and develop recipes at universities to promote the use
of indigenous crops, fruits, vegetables and other local products;
c. Train, educate, research, promote and disseminate information about
indigenous food systems and their nutritional benefits to contribute to the
spread of knowledge that will benefit communities.
6. Build resilience to vulnerabilities, shocks and stresses
Governments, businesses and communities should build social infrastructure,
relationships and networks to mitigate the effects of external threats. They
should take note of the work done by civil society during the pandemic to
channel resources to micro, small-scale and agricultural households in the
rural areas and vulnerable communities in the townships and backyards, metro
inner cities and informal settlements across Africa
7. Balance exports and local production
It is argued that a strong export- focused commercial sector leads to lower
domestic food prices. Governments, businesses and communities should balance
the interests of production and export against basic food security whilst
producing an affordable nutritious food basket that strengthens the food
system.
8. Promote agri-tourism markets
Agri-tourism markets should be used to improve food systems' sustainability
and market access. This presents opportunities for diverse and dynamic
markets and also creates sustainable jobs.
Investments in this sub-sector would help citizens who struggle to afford
food. The prime example here is the wine industry.
9. Invest in on-farm and off- farm infrastructure and the informal sector
Promote the co-existence of small-scale and subsistence farmers alongside
large-scale commercial farmers by investing in required on-farm and off-farm
infrastructure and market systems. Observe the system of informal trade and
how it operates. Equip traders with the necessary resources, infrastructure
and market systems. During the COVID-19 hard lockdown, the role of informal
traders in distributing food became critical and their importance in the
food supply chain was evident in South Africa and other countries on the
continent.
10. Establish food and agricultural hubs and aggregators
Africa has untapped resources (ie mines and arable land) that can be
explored to increase production and industrial capacity to promote high-
value agriculture and food exports. It is important and advisable that
national governments, in line with CAADP and Malabo Declaration commitments,
uphold the public spending of 10% on agriculture focusing on irrigation,
storage, processing and post-harvest infrastructure.
Public investments should de-risk and/or risk-share to incentivise increased
private investments. Investments in local infrastructure must be pursued in
partnership with the private sector and foreign investors to increase
efficiency and alleviate pressure on the national fiscus.
Governments, businesses and communities should establish food and
agricultural hubs in or near rural and peri-urban markets to absorb the
produce of household and small-scale farmers. This will allow agribusinesses
and agro-processors from villages to enter, recreate, reshape and redirect
food production systems that are linked to inclusive, diverse, dynamic and
prosperous factor and commodity markets.
Governments, businesses and communities should promote the establishment of
aggregators in the villages, rural towns and townships to ensure sufficient
throughput of the products and services of the desired quality from schools,
community production centres, households and small-holder producers on a
sustainable and reliable basis.
To successfully implement the above 10 interventions in South Africa and
other countries on the continent there must be a conducive environment and
policies to attract private investment and develop prerequisite skills and
knowledge. Below, the article outlines some of the critical levers that will
drive change in the continent's food systems.
LEVERS OF CHANGE AND SUCCESSFUL POLICIES
1. Develop effective governance and leadership
There is limited integration between continental, regional and national
government spheres to fight hunger and malnutrition on the continent. A
central structure is required to coordinate and monitor all food systems to
avoid duplication of programmes aimed at fighting hunger.
Coordination needs to extend beyond food security and nutrition as food
systems involve a range of sectors. Coordination and collaboration between
departments of health and agriculture, as well as with private sector
partners and community organisations, is necessary to address hunger,
poverty and malnutrition as well as unemployment and economic growth.
2. Develop comprehensive and accurate farmer databases
Databases of producers should be developed to ensure improved coordination
in providing agricultural support and traceability of producers and
products. National governments, businesses and communities should establish
and maintain the farmer databases and production data.
3. Invest in research and innovation
There is a need to develop research on the possibility of intensifying
production of crops such as sorghum, millet and other strategic grain
reserves. Research should also be conducted on improving production,
packaging and marketing of indigenous foods.
4. Stakeholder collaboration
To build inclusive, sustainable and competitive value chains, collaborative
engagements among stakeholders are needed. These should include sharing of
databases to help identify bottlenecks within the value chain and assist in
building a business case for their resolution.
They will also promote investment in research, learning and development.
5. Financing
Governments, businesses and communities should align public and private
investments to enable small-scale producers and communities to access
capital. Affordable financing schemes should be developed for farmers
leveraging on available resources in the private sector as alternative
platforms of funding. In this way farmers could access funds in the form of
loans to supplement grant funding.
Dr Sifiso Ntombela is chief economist of the National Agricultural Marketing
Council (NAMC), responsible for trade research and economic modelling. He
also provides economic and environmental policy commentary for uKhozi FM and
Ligwalagwala FM. Dr Ntombela was director for strategic projects in the
Department of Public Enterprises where he managed the country's biggest
infrastructure programme in transport, energy and manufacturing sectors
implemented by the State-Owned Companies. He has a PhD in agricultural
economics from the University of Pretoria.
REFERENCES
AfDB (African Development Bank). 2018. Programme for Infrastructure
Development in Africa. Available at: https://www.afdb.org/en/topics-
and-sectors/initiatives-partnerships/programme-
for-infrastructure-development-in-africa-pida. Accessed 19 August 2022
AU (African Union). 2021. Comprehensive Africa Agriculture Development
Programme (CAADP). Biennial Review Report: 2015-2018. Available at:
https://au.int/sites/default/files/ documents/41357-doc-CADDP_BR_2015-2018_
ENGLISH.pdf. Accessed 20 August 2022
DALRRD (Department of Agriculture, Land Reform and Rural Development).
2022. Agricultural Abstract. Government Printers. Pretoria, South Africa.
NAMC (National Agricultural Marketing Council). 2020. Statutory Measures for
South African Agricultural Value Chains: Commodity Survey. Available at :
https://www.namc.co.za/ publications/. Accessed on 19 August 2022.
Nigeria: National Grid Hasn't Collapsed This Year - Minister
The Minister said the country has only experienced disruptions, not
collapse.
The Minister of State for Power, Goddy Jedy-Agba, has said the national grid
has not collapsed this year.
He said the country has only experienced disruptions, not collapse.
Mr Jedy-Agba stated this on Thursdsy when he appeared before the House of
Representatives Committee on Power investigating the frequent collapse of
the national grid.
The country had suffered total blackout four times this year reportedly
occasioned by the collapse of the grid.
The Minister explained that disruption could cause blackout.
"So, please let us understand that we have not had any collapse this year,
we have had disruptions and disruptions could lead to blackouts, a blackout
is not a collapse.
"These ones we have had this year, in fact, four of them, but they have not
been collapse, it is disruption. And disruptions have been as a result of
the human factors, they could be increment factors, they could be political
factors, it could be other factors," he said.
Mr Jedy-Agba blamed the unavailability of gas for some of the disruptions
experienced so far this year.
"Gas supply has been a problem but we are tackling that already because we
are discussing with NNPC and Nigerian Gas Corporation. We are coming to an
agreement and gas is flowing systematically now to the generating companies
and we are seeing a steady increment in generation," the minister said
GenCos, TCN disagree
However, Electricity Generation Companies (GenCos), blamed the incessant
national electricity grid collapse on weak transmission lines.
Joy Ogaji, the executive secretary of the association of power generation
companies, said the infrastructure Transmission Company of Nigeria (TCN)
cannot cope with the load.
She explained that often, the transmission lines are experiencing volatility
which causes disruptions. She added that often, GENCOs are using their
infrastructure to transmit load.
"There is service interruption due to the inability of DISCOS to take the
load, weak grid conditions forcing apparatus disruption, TCN radial lines...
.most of TCN lines are radial, not double circuit, thereby limiting the
redundancy in the system which increases system instability, Inadequate and
old infrastructure to meet demands, transmission and distribution manned by
insufficient engineers and technicians, poor communication and coordination
of activities between TCN and Discos," she said.
Also speaking, the Managing Director of Transmission Company of Nigeria,
Sule Abdulaziz, contradicted the minister, when he stated that the national
grid has collapsed four times in 2022.
He added that Nigeria has a transmission capacity of 8,100 megawatts.
"We have four system collapse, then we have two partial collapses and this
what we submitted.
"On transmission capacity, we have a capacity of 8,100 megawatts. There is
no day when a generation company will say we have generated so much
megawatts and TCN is unable to evacuate it. We are challenging generation
companies to come out if there is any day that we can not evacuate it", he
said.
Following the presentations, the Chairman of the Committee, Magaji Aliyu
(APC, Jigawa), stated that the committee will set up a technical committee
to prepare a report for the House. He, therefore, adjourned the session sine
die.
-Premium Times.
Nigeria: New Owner Buys Polaris for N50 Billion, Gets 25 Years to Repay
Govt's N1.3 Trillion
Strategic Capital Investment Limited emerged the preferred bidder for the
lender, the CBN said in a statement late Thursday.
The Central Bank of Nigeria has announced the sale of Polaris Bank to a new
owner, four years after the government took over the distressed Skye Bank,
renamed it before injecting over N1 trillion of public funds to recapitalise
the bank.
Strategic Capital Investment Limited emerged the preferred bidder for the
lender, the CBN said in a statement late Thursday.
The sale decision was jointly taken with the Asset Management Corporation of
Nigeria (AMCON), the government's bad debt buyer, which took over Skye Bank
after the CBN withdrew its licence in 2018 before setting up Polaris as a
bridge bank.
The new owner, SCIL, has completed a Share Purchase Agreement (SPA) for the
acquisition of 100% of the equity in Polaris Bank, according to a statement
by the spokesperson of the CBN, Osita Nwanisobi. It paid N50 billion and has
agreed to refund N1.3 trillion injected into the bank.
"As part of the CBN intervention, consideration bonds with a face value of
N898 billion (future value of N1.305 trillion) were injected into the bridge
bank through AMCON, to be repaid over a 25-year period. These actions were
taken to prevent the imminent collapse of the bank, enable its stabilization
and recovery, protect depositors' funds, prevent job losses and preserve
systemic financial stability," the statement said.
"SCIL has paid an upfront consideration of N50 billion to acquire 100% of
the equity of Polaris Bank and has accepted the terms of the agreement which
include the full repayment of the sum of N1.305 trillion, being the
consideration bonds injected.
"The CBN thus received an immediate return for the value it has created in
Polaris Bank during the stabilization period, as well as ensuring that all
funds originally provided to support the intervention are recovered."
He said the sale was coordinated by a divestment committee comprising
representatives of the CBN and AMCON, and advised by legal and financial
consultants.
"In the process, parties who had formally expressed an interest in acquiring
Polaris Bank, subsequent to the CBN intervention in 2018, were invited to
submit financial and technical proposals. Invitations to submit proposals
were sent to 25 pre-qualified interested parties, out of which three parties
eventually submitted final purchase proposals following technical
evaluation," Mr Nwasinobi said.
Polaris took over all assets and liabilities of a collapsing Skye Bank in
September 2018 after the withdrawal of its licence by the CBN.
The CBN's regulatory action then was to save depositors' funds and to ensure
that the bank continued as a going concern. Part of the apex bank's
intention was also to stem the imminent job losses to staff if a liquidation
option had been adopted.
The government planned to hand it over to AMCON which would recapitalise the
bank before looking for a new buyer.
-Premium Times.
Nigeria: Relief As Shell Resumes Crude Oil Export At 400,000bpd Forcados
Terminal
Hope for the addition of 500,000 barrels per day (bpd) of crude oil to
Nigeria's daily output by the end of November to earn more revenue to
finance the 2023 budget, has risen as Shell Petroleum Development Company
Limited (SPDC) Thursday resumed crude oil exports at the Forcados Oil
Terminal.
The resumption of operations at the 400,000 barrels per day export terminal
came ahead of the October 30 schedule, when the oil giant had stated that
the essential repairs would have been completed.
A spokesman of Shell Nigeria, Mr. Bamidele Odugbesan confirmed late in the
night "that essential repairs at Forcados Oil Terminal are complete and
export operations have resumed on October 20, 2022."
SPDC's Media Relations Manager, Abimbola Essien-Nelson, had in a statement
last week disclosed that repair works on the Forcados Oil Terminal would be
completed by the end of the month.
"In addition to the repairs, we are working to remove and clamp theft points
on the onshore pipelines to ensure full crude oil receipt at the terminal,"
she said.
According to Essien-Nelson, the active illegal connections to SPDC joint
venture's production lines and facilities in western Niger Delta as well as
the inactive illegal connection to the onshore section of the 48-inch
Forcados Export Line are part of the company's ongoing programme to remove
illegal connections on the pipelines that feed the terminal.
She said, "SPDC gives priority to the removal of active illegal connections
and to illegal connection points that have leaks. This scheduled programme
is continuous as new illegal connections are identified during surveillance
of the pipelines. An example of such illegal connection is that on the
onshore section of the 48-inch Forcados Export Line which is currently not
active and has no sign of leak at the interconnection point."
Essien-Nelson reiterated SPDC's commitment to running its assets safely,
reliably and in accordance with globally accepted standards.
Located at the western Niger Delta, the Forcados Oil Terminal, which has a
nameplate capacity to export 400,000 bpd of crude oil per day, receives
crude oil from the Forcados Oil Pipeline System, the second largest pipeline
network in the oil-producing region, after the Bonny Oil Pipeline System in
the eastern Niger Delta.
Some international oil companies (IOCs) and Nigerian independents operating
in the western Niger Delta pump oil to the Forcados Oil Terminal for
exports.
However, with the closure of the export terminal for repairs, about 20 oil
fields had been shut in.
But the Group Chief Executive Officer of the Nigerian National Petroleum
Company Limited (NNPCL), Mallam Mele Kyari, had hinted that the country
expected to add 500,000 bpd to its output by the end of November, mainly by
restarting activities on the Shell Plc-operated Forcados export terminal and
Trans-Niger pipeline (TNP).
The TNP with a capacity of about 180,000 bpd and the Aiteo-operated Nembe
Creek Trunkline (NCTL) are the two major pipelines in the eastern Niger
Delta that transport Bonny Light crude oil to the Bonny Export Terminal.
The Group General Manager of the National Petroleum Investment Management
Services (NAPIMS), a subsidiary of the NNPC, Mr. Bala Wunti, had at the
weekend announced that the state-owned oil company had concluded the
clamping of the damaged TNP.
"SPDC continues to work tirelessly, alongside government and partners,
towards the eradication of crude theft from its infrastructure," she added.
-This Day.
Nigeria: Kogi Receives First Allocation As Oil-Producing State
Kogi State Governor Yahaya Bello has announced that for the first time in
the history of Nigeria, Kogi, a north central state is officially listed and
recognised as an oil producing state.
The governor made the announcement during the state Executive Council
Meeting where top officials of the state were present.
His words, "I, Alhaji Yahaya Adoza Bello, the executive governor of Kogi
State, seize this opportunity to make this wonderful announcement to all of
us and to all of us across the world that history is being made today under
my leadership. That Kogi State, one of the northern states, is now
recognised and confirmed as an oil producing state."
The governor added that "We have received the first tranche and the first
payment of 13% derivation. So officially Kogi State is now an oil producing
state".
He joined the National Economic Council under the leadership of Vice
President Yemi Osinbajo via video conferencing where he broke the news to
the vice president and members of the Economic Council.
Bello said, "I want to use this opportunity to thank the President,
Muhammadu Buhari, and the vice president, Professor Yemi Osinbajo. Your
Excellency, I want to officially announce to you and my colleagues and the
whole world that Kogi State is now recognised as an oil producing state and
we have received the first payment of the 13% derivation from the federation
account.
"This wouldn't have been possible without the support of Mr. President and
yourself as well as the Revenue Mobilization and Fiscal Commission,"
While speaking to reporters at the end of the executive council meeting,
Kogi State commissioner for Information and Communications, Kingsley Fanwo,
said the impact of the 13% derivation will be greatly felt in the state as
the government of Kogi state will make judicious use of the allocation.
-Leadership.
Nigeria: Airline Operators Lament Bad Treatment of Nigerian Carriers Abroad
Airline Operators of Nigeria (AON), has lamented the bad treatment of
Nigerian Airlines by foreign countries in contravention of the Bilateral Air
Services Agreement.
Chairman/chief executive officer of Air Peace Airline and the vice president
of AON, Allen Onyema, speaking during an interaction session with the
speaker, House of Representatives Hon. Femi Gbajabiamila and other
stakeholders, stressed that the bad treatment of Nigerian airlines abroad
violates safety rules.
Onyema, said patriotism in him could not allow him to keep quiet on the bad
treatment of Nigerian airlines abroad.
"There are so many issues raised here sir, I want everybody in this place to
understand that the Nigeria airlines (the indigenous Nigeria airlines) are
not against foreign airlines repatriating their money, we are not against
that.
-Leadership.
Nigeria: Govt Revokes 3400 Mining Licences in One Year
The federal government has revoked over 3400 mining titles issued to
potential miners between the middle of last year and now.
Director General of Nigeria Mining Cadastre Office in the federal ministry
of mines and steel development, Engr. Obadiah Simon spoke in Calabar at the
sensitization workshop for stakeholders in South-South on the adoption of
the electronic mining Cadastre System.
"We have revoked 3400 mining licenses. We have the principle of 'get a
licence and use it'. If you do not use it you risk it being revoked.
"The affected miners did not comply with provisions of the Act, which are
clearly spelt out for all to see. There is security of tenure of license. We
don't just wake up to revoke. The law specified that we give 30 days' notice
through a registered letter and also gazette it. We ensure that we exhaust
all procedures leading to revocation of licenses so that title holders do
not blame us."
Simon said they do not want title holders to hold the country to ransom. "
You can't get a license and keep it in the house for ever. You must meet up
with your obligations."
-Daily Trust.
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/20221021/cc7c5860/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/20221021/cc7c5860/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221021/cc7c5860/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65573 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221021/cc7c5860/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.png
Type: image/png
Size: 159273 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221021/cc7c5860/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 29258 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221021/cc7c5860/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image010.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221021/cc7c5860/attachment-0003.jpg>
More information about the Bulls
mailing list