Major International Business Headlines Brief::: 24 October 2022

Mon Oct 24 12:43:16 CAT 2022

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Major International Business Headlines Brief::: 24 October 2022 

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

ü  What we just learned about China's economy

ü  Pound gains as Rishi Sunak leads race to become PM

ü  UK faces tougher austerity era - ex-Bank chief

ü  Royal Mail: 100 days left to use stamps without a barcode

ü  Pound sinks as UK economic uncertainty rises

ü  Spain lifts final Covid rules for UK travellers

ü  Cop 27: Uganda-Tanzania oil pipeline sparks climate row

ü  Google: India fines tech giant $161m for unfair practices

ü  Sports Direct-owner Mike Ashley lifts Asos and Hugo Boss stakes

ü  Energy costs: Can growers in UK's cucumber capital survive?

ü  Kenya: I Will Curb Debt Appetite By Expanding Tax Base - President Ruto

ü  Nigeria: Why Petrol Is Still Scarce in Abuja After Lokoja Flood - IPMAN

ü  Nigeria: AfDB Plans $1.5bn Green Facility to Meet Demand for Funds to Develop Clean Energy

ü  Kenyan Innovator to Address Migrant Workers Plights at Global Forum

ü  Uganda: UAE Slaps Visa Ban On Ugandans

 <mailto:info at bulls.co.zw> 

What we just learned about China's economy

The Chinese Communist Party's congress concluded on Sunday with the set-piece confirmation of Xi Jinping's historic third five-year term in charge.

The spotlight was also on the man named as his new second-in-command, Li Qiang.

A loyalist to Mr Xi, he is now on track to become Premier and tasked with managing the world's second largest economy.

Meanwhile, on Monday, China released a set of economic figures which had been postponed from the previous week.

China's economy faces a number of challenges at home and abroad - including Beijing's zero-Covid policies and the trade conflict with the US.

What have we learned about the state of the country's economy over the last week?

Slow growth

On Monday, stocks in Hong Kong slumped and China's currency, the yuan, weakened against the US dollar over heightened concerns that Mr Xi will continue with his ideology-driven policies at the cost of economic growth.

The benchmark Hang Seng index fell by more than 6% as Hong Kong-listed shares in Chinese technology giants Alibaba and Tencent plunged. In mainland China, the Shanghai Composite index closed 2% lower.

Meanwhile, official figures showed that China's economy grew 3.9% in the July to September quarter from the same time last year, beating estimates.

It marked a strong bounce back from the 0.4% growth seen for the previous three months, when Shanghai was in lockdown.

The release of the figures were postponed during the congress, with no reason given for the delay. That caused some China watchers to suggest that they may point to weakness in the economy.

"The 20th Party Congress did not reveal any new directions in economic policy. Whether the overall economic approach will deliver the type of growth that China desires remains to be seen," Bert Hofman from the National University of Singapore's East Asian Institute told the BBC.

However, while the latest growth figures may seem high compared to most Western economies, they are far below the rate of expansion China has seen for decades and still some way off the 5.5% 2022 target set in March.

Since then, the Politburo - the ruling Chinese Communist Party's top policy-making body - has signalled that it may miss that target, after major cities were put into full or partial lockdowns.

Some observers say Mr Xi's picks for the Politburo Standing Committee - China's equivalent of a presidential cabinet - showed that he prizes loyalty over expertise and experience.

His choice for the new second-in-command of the party was Li Qiang.

He is expected to become China's Premier next year and take on the role of managing China's economy, even though he does not have any working experience in the central government.

Li Qiang is also just five years away from the customary retirement age of top Chinese leaders.

However, he has been closely involved in managing the local economies of Zhejiang province and Shanghai and played a key role in the set-up of a massive Tesla factory in Shanghai.

"Keeping that in mind, Li Qiang would actually be a perfect candidate for the job. He is also a strong supporter of President Xi, that means the decision making process will probably be way more efficient than before, given that those decisions are the correct ones," Dan Wang, chief economist at Hang Seng Bank China said.

Nick Marro from the Economist Intelligence Unit (EIU) said "the dilution of that previously balanced relationship between the Premier and the president will continue under Xi's third term. But the erosion of these internal checks-and-balances will worsen the risks and consequences of policy drift."

The Premier is second-in-command of China's ruling Communist party. They play a major role in managing the economy by co-ordinating the work of government ministries and the central bank.

Li Qiang's predecessor, Li Keqiang - who is viewed to be a more moderate voice, has been in the position for close to a decade and is now expected to retire after his current term expires next March.

Zero-Covid to stay

Before the congress, there were hopes that China could ease its strict zero-Covid policy, which has hampered economic growth.

A day before the event got under way, Communist Party spokesman Sun Yeli expressed support for the policy and said "We firmly believe that the light is ahead and perseverance is victory."

These sentiments were echoed by Mr Xi in his opening speech. He said Beijing had launched a "people's war to stop the spread of the virus" and "protected the people's health and safety to the greatest extent possible".

Yun Sun, senior fellow at the Stimson Center think tank in Washington DC, thinks China will soon begin the "incremental process" of dropping zero-Covid.

"It is well known that China is planning to reopen, and it will stimulate the growth of trade. China is trying to juggle a middle ground between control and growth. It is not either or," she told the BBC.

Meanwhile, Dan Wang from Hang Seng Bank believes "There is a general consensus that this policy will stay for the long haul."

"For the Chinese government, there is pretty much no tolerance to see a higher-than-zero death rate that is directly caused by Covid," she said.

Not going it alone

There have also been growing concerns that China would move to close itself off from the global economy.

One of largest hurdles China faces is its "fraying relations" with the US, Mr Marro from the EIU said.

"The recent US export controls pose an existential crisis not only to China's technology ambitions, but also parts of its domestic tech sector. It will be hard for China to surmount these challenges, given that many of these tie to... fundamental differences around human rights and democratic values," he added.

"Clearly with the challenges ahead, the economic management team for Xi's next term needs to be highly competent and experienced in economic management and reforms," Mr Hofman said.

However, speaking on Sunday, Mr Xi said his country was committed to remain open to international trade.

"China cannot develop without the world, and the world also needs China".

"After more than 40 years of unflagging efforts towards reform and opening up, we have created two miracles - rapid economic development and long-term social stability," he added.-BBC

Pound gains as Rishi Sunak leads race to become PM

The pound has gained on the dollar as Boris Johnson dropped out of the Tory leadership race, leaving Rishi Sunak as the favourite to become prime minister.

On Monday morning, sterling stood around 0.4% higher at $1.134.

Meanwhile, government borrowing costs dropped as the markets opened after the weekend.

Former chancellor Mr Sunak is now the only candidate backed by more than 100 Tory MPs, the level required to take part in the ballot of party members.

Mr Johnson, who claimed he had the support of 102 MPs although only 57 MPs did so publicly, dropped out after saying he would be unable to unite his party.

Commons Leader Penny Mordaunt remains in the race but is some way off securing 100 backers. The deadline is 14:00 on Monday.

Who are Tory MPs backing to be next PM?

Rishi Sunak: Former chancellor who lost out last time

Last month, sterling plunged to a record low against the dollar and government borrowing costs rose sharply in the aftermath of outgoing Prime Minister Liz Truss's mini-budget.

Investors were spooked after then-Chancellor Kwasi Kwarteng promised major tax cuts without saying how they would be paid for - something Mr Sunak warned about during this summer's Tory leadership contest.

Last week, new Chancellor Jeremy Hunt withdrew almost all of Ms Truss's tax cuts in a bid to stabilise the financial markets but they have remained jittery.

On Friday, the pound fell as low as $1.11 and government borrowing costs rose amid continued political uncertainty and fresh warnings about the UK economy.

On Monday, government borrowing costs fell back following Mr Johnson's decision.

The interest rate - or yield - on bonds due to be repaid in 30 years' time dropped to 3.9%, making government borrowing cheaper. They had hit 5.17% on 28 September after the mini-budget and a subsequent pledge by Mr Kwarteng to announce more tax cuts.

Mr Hunt - who is backing Mr Sunak - is scheduled to set out his economic plan for taxes and spending on 31 October.

Megan Greene, a global chief economist at the Kroll Institute consultancy, told the BBC's Today programme that Mr Sunak's position as the frontrunner "should help" calm the markets.

"Two weeks ago the UK looked completely un-investable," she said, though she warned investors were "still wary". "The UK has a really tough line to walk," she said.

"On the one hand it can't provide these budgets that are fiscally irresponsible, or that seem fiscally irresponsible, we've seen what happens with the market then, but equally Rishi Sunak is going to come and probably announce a lot of austerity and he can't go too far on that end either because then the markets will look at that and think the UK is never going to grow.

"Even without all the political drama, the economic environment in the UK is incredibly difficult."

Why does a falling pound matter?

A fall in the value of the pound increases the price of goods and services imported into the UK from overseas - because when the pound is weak against the dollar or euro, for example, it costs more for companies in the UK to buy things such as food, raw materials or parts from abroad.

If businesses pass on those higher costs to customers, a weaker pound can help push up inflation - the rate at which prices rise.

Also, for Britons travelling overseas, changes in the pound's value affect how far their money will go abroad.

Five ways a falling pound could affect you

Sterling has also been under pressure recently due the strength of the US dollar.

However, the pound's weakness in recent weeks has been most tied to mounting concerns about the outlook for the UK's economy and public finances.

The official rate of inflation rose to 10.1% last month and is expected to climb further.

The UK is also borrowing billions of pounds to limit energy bill rises for households and businesses.

Borrowing - the difference between spending and tax income - was £20bn in September, up £2.2bn from a year earlier, the Office for National Statistics (ONS) said.

It was the second highest September borrowing since monthly records began in 1993.

The Institute for Fiscal Studies think tank predicted borrowing this year could reach £194bn, almost double the figure previously forecast by The Office For Budget Responsibility (OBR).-BBC

UK faces tougher austerity era - ex-Bank chief

The UK faces a "more difficult" era of austerity than the one after the 2008 financial crisis in order to stabilise the economy, a former governor of the Bank of England has warned.

Lord Mervyn King said the average person could face "significantly higher taxes" to fund public spending.

Chancellor Jeremy Hunt is scheduled to set out his economic plans on 31 October.

He has already scrapped almost all the tax cuts announced under Liz Truss.

Mr Hunt has said: "This government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances.

"That means decisions of eye-watering difficulty."

Speaking on Sunday with Laura Kuenssberg, Lord King said that "it is time to front up" with the public about the difficulties the country is facing.

He said "public expenditure isn't going down, if anything it will go up therefore taxes will have to rise to fill the gap which is there at present".

LIVE: Sunak confirms PM bid as Rees-Mogg says Johnson will run

Who are Tory MPs backing to be next Prime Minister?

"That doesn't make a very happy picture for the next few years," said Lord King.

"But what we need is a government that will actually tell us honestly there is a reduction in our national standard of living because we've decided to help Ukraine and confront Russia and that means that all of us are going to have to share the burden, we can't just put all of it on our children and grandchildren."

'Significantly higher taxes'

After the 2007-2008 financial crisis, when the banking sector came close to collapse, the new Conservative-Liberal Democrat coalition government announced the sharpest cuts in public spending since the end of World War Two.

Asked if the UK could be facing a similar period of austerity, Lord King, who was governor at the time, said: "In some ways it could be more difficult."

He said: "The challenge is if we want European levels of welfare payments and public spending, you cannot finance that with American levels of tax rates, so we may need to confront the need to have significantly higher taxes on the average person.

"There isn't enough money there among the rich to get it back."

Mr Hunt has reversed nearly all the tax cuts set out in September's mini-budget. This included a 1p cut in income tax which was due in April. A decision to cut the top rate of tax for people earning £150,000 or more had already been scrapped.

Uncertainty remains, however, about public spending, as the Conservative Party undertakes another leadership race to choose a leader and prime minister to replace Ms Truss.

Last week, Ms Truss said she was committed to a Tory manifesto pledge in 2019, made by the then Prime Minister Boris Johnson, to raise pensions in line with prices.

The triple lock means state pension payments rise by whatever is higher - inflation, average earnings or 2.5%.

Printing money

On Sunday, Rishi Sunak declared he was in the running to take over as Tory leader and prime minister and said he would "deliver on the promise of the 2019 manifesto".

Leadership rival Penny Mordaunt said: "We have a majority and a mandate to deliver a true 2019 manifesto." Mr Johnson is also expected to announce his candidacy, according to Business Secretary Jacob Rees-Mogg but is yet to make a formal statement.

On Sunday, Lord King also reiterated criticism of central banks for failing to curb inflation which is now running at a 40-year high of 10.1%.

He said major central banks, including the Bank of England, had continued to "print money" - through a measure known as quantitative easing - to support their economies during Covid lockdowns. This, he said, had contributed to rising inflation.

Lord King was governor of the Bank of England between 2003 and 2013 during which time it launched quantitative easing. But he said there was a difference between that period when major economies were dealing with the global financial crisis and the impact of Covid lockdowns.

"Engaging in quantitative easing in 2009 was to stop the economy from going into another recession because the amount of money in the economy was going down," he said.

"Here in the last couple of years the amount of money in the economy has grown very rapidly and at a pace that was bound to lead to higher inflation."-BBC

Royal Mail: 100 days left to use stamps without a barcode

Royal Mail is urging people to use up stamps that do not have a barcode by 31 January, when they will no longer be valid for postage.

It says the deadline in exactly 100 days affects "everyday" stamps featuring the late Queen's profile.

Barcoded stamps were introduced in February to make deliveries more efficient and improve security.

Customers will still be able to use themed, commemorative and non-barcoded Christmas stamps after the deadline.

Anyone unable to use older everyday stamps by 31 January will be able to exchange them for newer barcoded ones free of charge. Royal Mail says that, at present, there is no end date for when the older stamps can be swapped.

Royal Mail's advice is not connected to the change of monarch. It says further details on the launch of stamps featuring King Charles will be made at the appropriate time after consultation with the Royal Household.

Royal Mail introduced barcoded stamps in February, saying they would open up possibilities for "new innovative services."

The long-term plan is that people will be able to watch videos, find out information and send birthday messages to each other through the barcodes which can be scanned with the Royal Mail app.

Analysts Mintel said it reflected how widespread smartphone ownership had become as well as people's familiarity with QR codes - notably through the the NHS Track and Trace app during the pandemic.

The postal service launched a national awareness earlier this month reminding people to use up their non-barcoded stamps by the deadline.

Royal Mail, which hopes customers will use those stamps this Christmas, has sent leaflets to 31 million homes and placed adverts in newspapers, on the radio and on social media.-BBC

Pound sinks as UK economic uncertainty rises

The pound fell against the dollar on Friday as new figures showed a gloomy picture for the UK economy.

Sterling slipped to $1.11, after rallying on Thursday as Prime Minister Liz Truss resigned.

However, it clawed back losses on Friday evening and was back up to around $1.12 against the dollar.

The volatility in the pound came after official figures showed government borrowing rose to its second highest September on record.

Meanwhile, people are shopping less than they did before the coronavirus pandemic, according to figures from the Office For National Statistics (ONS).

Retail sales fell by more than expected last month, dropping 1.4% and continuing their slide from August, the official figures showed.

The pound's latest slide comes after a period of volatile trading for the currency.

It plunged to a record low against the dollar last month, while government borrowing costs rose sharply in the aftermath of the mini-budget. Investors were spooked after the government promised huge tax cuts without saying how it would pay for them.

Government borrowing costs also rose slightly on Friday.

A fall in the US dollar against a number of currencies late Friday helped the pound regain some ground.

But Jane Foley, a currency strategist at Rabobank, said much of the pound's moves are being driven by investors reacting to political and economic uncertainty in the UK as well as the negative economic data.

"While sterling rallied yesterday on Truss's resignation, I think investors have realised today that it's not a guarantee that we'll get a market-friendly outcome from the Conservative leadership contest," she said.

The Chancellor, Jeremy Hunt is due to announce plans for spending and tax on 31 October in his economic plan, which the Treasury confirmed was set to go ahead, although there are reports it could be delayed due to the leadership race.

Ms Foley said this uncertainty was also weighing on the pound.

"The longer the uncertainty continues, the worse it's going to be for the markets."

Why does a falling pound matter?

A fall in the value of the pound increases the price of goods and services imported into the UK from overseas - because when the pound is weak against the dollar or euro, for example, it costs more for companies in the UK to buy things such as food, raw materials or parts from abroad.

A weaker pound can push rising costs higher as well if companies choose to pass on higher prices to customers. For people planning a trip overseas, changes in the pound affect how far their money will go abroad.

"Consumers are now buying less than before the pandemic," said Darren Morgan, from the Office for National Statistics (ONS) which released the figures, said.

He added: "Retailers told us that the fall in September was partly because many stores were closed for the Queen's funeral, but also because of continued price pressures leading consumers to be careful about spending."

The cost of living crisis continues to squeeze household budgets, with prices rising faster than average wages.-BBC

Spain lifts final Covid rules for UK travellers

Brits travelling to Spain can enter the country without having to prove their Covid or vaccination status, after travel restrictions were dropped.

Before, people needed to show they were fully-vaccinated, provide a negative Covid test or prove they had recently recovered.

The drop in the remaining Covid restrictions comes as families prepare to head off on half-term holidays.

Travel agents said a "final hurdle" for holidays had been removed.

Other European destinations such as France, Italy and Greece lifted their rules prior to Spain, which is the most popular destination for UK overseas holidaymakers.

The Spanish Health Ministry announced on Thursday that people entering from outside the European Union would no longer be subject to the controls, effective from Friday.

Julia Lo Bue-Said, chief executive of the travel agent network Advantage Travel Partnership, said restrictions had been a barrier, particularly for people who were not vaccinated.

"We saw other destinations where restrictions were eased earlier in the year, such as Greece, benefit from an overall increase in demand over the summer", she said.

Ms Lo Bue-Said described Spain's move as "better late than never and good news".

It's not the first time Spain has been relatively slow to ease its Covid rules.

The requirement for children over the age of 12 to be double vaccinated to enter the Spanish mainland was only scrapped just before the February half-term, after tourism businesses warned that it was driving families to book trips to other countries instead.

Many countries around the world including the US still have Covid entry rules in place.

Travel firms have continued to report strong demand for bookings, despite the cost of living pressures affecting households, with Heathrow Airport saying it expects Christmas to be busy.

However, it warned there was still uncertainty about the winter due to "growing economic headwinds, a new wave of Covid, and the escalating situation in Ukraine".

The industry had a difficult summer as demand for international travel bounced back strongly, but businesses found themselves struggling to cope amid staffing shortages.

It still faces various challenges as it looks to recover, including in recruitment as the labour market remains tight.

Elsewhere, the Port of Dover and Eurostar are in discussions with the French and UK governments about how a new EU border control system will work.

The IT system due to come in next May, will require travellers to register their fingerprints and a photo when leaving the UK, but Dover is concerned that the registration process could cause queues.-BBC

Cop 27: Uganda-Tanzania oil pipeline sparks climate row

Uganda and Tanzania are set to begin work on a massive crude oil pipeline a year after the International Energy Agency warned that the world risked not meeting its climate goals if new fossil fuel projects were not stopped. The two East African countries say their priority is economic development.

Short presentational grey line

Juma Hamisi, not his real name, keeps his distance, careful not to trespass, as he points to mounds of rubble spread across an open field. They are signs that a thriving community once lived here in a mix of concrete and grass-thatched mud houses.

At this time of year, the surrounding fertile land would normally be covered with a variety of sprouting crops - enough to feed the village, along with a surplus to sell at local markets. But it too lies bare.

"We used to be the source of cassava and lemons, now there's scarcity. We can't even harvest the coconuts you see over there because it's not our land any more," Mr Hamisi says.

Several signs bearing the name Tanzania Petroleum Development Cooperation, a state agency, now claim ownership of the area where villagers once lived, farmed and played.

Some of the inhabitants of the Chongoleani peninsula, some 18km (11 miles) north of Tanzania's port city of Tanga, sold their land for compensation two years ago, after the government signed a deal to construct a pipeline to transport crude oil from the shores of Lake Albert in western Uganda.

Eighty percent of the 1,440km- (895 mile) pipeline, whose construction will begin in a few months, will be in Tanzania including a terminal-storage facility in Chongoleani.

French energy giant Total Energies and Chinese energy firm CNOOC International also have a stake in the $5bn (£4bn) venture.

Because of the waxy nature of Lake Albert's crude oil, it will be transported through a heated pipeline - the longest in the world. But only a third of the reserves of 6.5 billion barrels, first discovered in 2006, is deemed commercially viable.

Despite the projected economic benefits, the timing of the project has divided opinion in Uganda and beyond.

In September, the European Union waded into the controversy surrounding the East African Crude Oil Pipeline (Eacop), and called for it to be halted, citing human rights abuses and concern for the environment and the climate.

The intervention was dismissed by the Ugandan and Tanzanian governments which see the pipeline as vital to turbo-charge their economies.

"They are insufferable, so shallow, so egocentric, so wrong," Uganda's President Yoweri Museveni said of the EU lawmakers.

His frustration is shared by some advocates of Africa's economic development who argue that the continent has the right to use its fossil fuel riches to develop, just like rich nations have done for hundreds of years.

They point out that Africa has only emitted 3% of climate-warming gases compared to 17% from EU countries.

Crucially, 92% of Uganda's energy already comes from renewable sources. In Tanzania, it is about 84%. Whereas for the EU it is 22%, according to the International Renewable Energy Agency.

"It's hypocrisy," Elison Karuhanga, a member of Uganda's chamber of mines and petroleum, says of the EU's comments about the pipeline.

"Unlike wealthy nations which will remain wealthy even when their oil and gas revenue is removed, we cannot afford to gamble the future of Ugandan generations on hypotheticals," Mr Karuhanga says.

The first oil is expected to be tapped in three years with at least 230,000 barrels pumped out every day at its peak - projected to earn Uganda between $1.5bn-$3.5bn a year, 30-75% of its annual tax revenue. Tanzania will reportedly get at least $12 a barrel, close to $1bn a year.

Despite the estimated windfall, campaign group Stop Eacop says the pipeline will produce 34 million tonnes of harmful carbon emissions each year. It passes near Murchison Falls National Park, an area rich in biodiversity, as well as farmlands.

TotalEnergies, which has a 62% stake in Eacop, told the BBC that the project will have "one of the company's lowest carbon dioxide emission levels".

"The pipeline route was designed to minimise its impact on the landscape and biodiversity" and "will significantly improve living conditions locally," the French oil giant said.

However, Ugandan climate activist Brian says Eacop would only turn Uganda into a "petrol station" for Europe and China and says the windfall from the project will only benefit the country's elite. We are not giving Brian's full name for security reasons.

Despite threats of arrest and harassment faced by Eacop opponents, Brian continues to campaign for the country to switch to green energy as it committed to by signing the Paris Climate agreement in 2015 - the global plan to prevent temperatures rising beyond 1.5C compared to pre-industrial levels.

"You only use the oil and gas that's already developed. The moment you start developing new ones today, and tomorrow, and a month later and years from now, you're delaying the process of transition, and that will cause a tipping-point for the climate," Brian says.

Tony Tiyou, the head of the company Renewables in Africa, disagrees with green energy purists.

"I may be a renewable advocate, but I'm also a practical guy," he says.

"I know we're still going to need some fossil fuel because at the moment people need power in Africa and if they don't have power, it will be a little bit difficult to lift people out of poverty," Mr Tiyou says.

"Solar and wind could be intermittent. You don't have solar at night, for example, and wind doesn't always blow when you need it. But people talk about an energy mix - a combination of different sources."

We have asked for comment from the Tanzania and Uganda governments.

But despite the urgency for energy transition as set out in the Paris agreement, global investments in fossil fuels still outpace those in renewables.

"Part of the reason is the fact that you need to look at who's going to benefit from the project, because you can't really export renewable at this stage, you most of the time, use it locally. You can export oil, and guess who's going to benefit from that?" Mr Tiyou says, referring to Western countries.

It's a point that Faten Agaad, senior adviser on Climate Diplomacy and Geopolitics for the African Climate Foundation, agrees with.

"African countries are not receiving financing required for the green transition. That's why we see countries turning to fossil fuels as a way to generate incomes. I mean as we speak, the financing of fossil fuels is three times higher than for green energy, that's $30bn to $9bn for renewables."

She also accuses the EU of hypocrisy.

Although Eacop plans to construct a refinery in Uganda for domestic consumption, its crude oil will mainly be for export, especially for Europe as a result of the ripple-effects of the war in Ukraine.

While Uganda hopes to benefit from its oil well into the future, this may not prove to be the case.

"What we're seeing is that Europe is working towards a transition, and in fact, not just in Europe. Even in Asia. China is currently the largest in terms of solar capacity, we also see other large economies like Indonesia also transitioning. So the risk for African countries is in 20, 30, 40 years they'll find themselves with assets that are not a good return on investment," Ms Aggad says.

How to balance economic development as well as fight climate change will dominate discussions at next month's Cop 27 conference in Egypt.

Activists from developing countries have been putting pressure on rich nations to honour their commitment at Cop 26 last year for urgent funding for climate adaptation and mitigation projects, as well as to compensate them for the loss and damage that they have wrought on the planet while building their own economies.

Back in Chongoleani, several unfinished concrete houses dot an area near where villagers who sold their land were relocated. They complain that the compensation given was not enough. Some are said to have invested their money in new businesses which have since failed.

Others said they had taken up fishing after farming became untenable.

Meanwhile, newcomers from other parts of the country continue to arrive in the area hoping to benefit from the project.

Mr Hamisi, like many in the community, hopes that the oil pipeline project will help replace his lost farming income, and bring prosperity to the village.-BBC

Google: India fines tech giant $161m for unfair practices

Indian authorities have fined Google 13bn rupees ($161m; £144m) for using its Android platform to dominate the market.

The country's competition regulator has accused the tech giant of entering into "one-sided agreements" with smartphone makers to ensure the dominance of its apps.

It has ordered Google to "cease and desist" from such practices.

Google has not responded to the fine or the accusations yet.

The Competition Commission of India (CCI) said in a statement on Thursday that Google was "abusing" the licensing of its Android operating system for a range of smartphones, web searches, browsing and video hosting services.

It said that Google was entering into forced agreements with players in the space to ensure that its bouquet of apps - such as Google Chrome, YouTube, Google Maps and others - were used.

The statement added that this practice was stifling competition and gave Google continuous access to consumer data and lucrative advertising opportunities.

The CCI has also asked Google to not force device manufacturers to pre-install its apps and that it must allow manufacturers and users to install apps of their choice during the initial device setup.

"Markets should be allowed to compete on merits and the onus is on the dominant players (in the present case, Google) that its conduct does not impinge this competition on merits," the statement said.

Google is facing a series of anti-trust cases in India and authorities are also probing Google's conduct in the smart TV market and its in-app payments system.

The Android-related inquiry was started in 2019, following complaints by consumers of Android smartphones.

The case is similar to the one Google faced in Europe, where regulators imposed a $5bn fine on the company for using its Android operating system to gain unfair advantage in the market.-BBC

Sports Direct-owner Mike Ashley lifts Asos and Hugo Boss stakes

The owner of Sports Direct has become the fourth-largest shareholder in online fashion retailer Asos.

Frasers Group, which is owned by billionaire Mike Ashley, now owns 5% of Asos after building up shares in the company that holds the Topshop brand.

On Monday, Frasers also announced it had raised its investment in Hugo Boss.

The company has bought up a number of UK retailers over the past few years spanning sportswear, fashion, furniture and bikes.

It now owns 4.3% of Hugo Boss shares directly and an extra 28.5% through the sale of financial instruments known as put options.

A put option is a contract that allows the owner the right to sell an asset at a future date at a predetermined price. Unlike normal shares, buying put options does not contribute to owning a majority stake or gaining voting rights in a company.

"Frasers Group has extensive ambitions to grow the business inside and outside of the UK and is constantly exploring the potential for further expansion," a trading statement said on Monday.

The retail giant said the move was the latest example of its "its drive to expand and acquire businesses and brands that can strengthen Frasers Group".

Why are prices rising so much?

Asos sees big loss as shoppers cut back on fashion

Asos recently reported a loss as the cost of living hit shoppers' budgets and the company has warned that it expects people to cut back even further in the months ahead.

The buy-up of Asos shares means that Frasers Group is now the fourth largest shareholder in the business.

Frasers Group said it was part of the "ordinary course of business to develop relationships and partnerships with other retailers, suppliers and brands".

Mr Ashley, who founded the sportswear retailer Sports Direct, has in the past gone on to take over businesses he invests in including House of Fraser.

This year he stepped down as chief executive of the company, handing over the role to his son-in-law, Michael Murray, though Mr Ashley remains as the controlling shareholder in the group.

The increase in Frasers' shareholding in Asos - first reported by the Sunday Telegraph - will not give it any control over the online fashion business or a position on its board.

Along with House of Fraser and Sports Direct, the group also owns Flannels, Game, Jack Wills, Evans Cycles and Sofa.com.

The group has also built z significant shareholding in the fashion brand and Mulberry.-BBC

Energy costs: Can growers in UK's cucumber capital survive?

A grower in the UK's cucumber capital has said he is scared he could lose his third-generation business due to high energy costs.

More than 10% of growers in the Lea Valley, known as the UK's cucumber capital or 'London's Salad Bowl', closed this year due to challenges including high energy costs, according to the Lea Valley Growers Association, based in Hertfordshire.

Tony Montalbano, who grows cucumbers in Roydon, Essex, said he could not afford gas to heat his glasshouses and feared closure.

The government announced in September that an Energy Bill Relief Scheme was being introduced which would see wholesale energy prices fixed for all organisations for six months from 1 October.

The government did not respond to the BBC's questioning about extra plans to support growers with energy costs.-BBC

Uganda: UAE Slaps Visa Ban On Ugandans

Authorities in the United Arab Emirates(UAE) have announced a visa ban slapped on Ugandans and 20 other nationalities seeking to visit Dubai with immediate effect.

"This is to inform you that we will not be posting 30 days visa applications for these nationalities effective today October, 18, 2022," the notice read in part.

Other countries affected by the visa ban include Ghana, Sierra Leone, Sudan, Cameroon, Nigeria, Liberia, Burundi, Republic of Guinea, Gambia, Togo, Democratic Republic of Congo, Senegal, Benin, Ivory Coast, Congo, Rwanda, Burkina Faso, Guinea Bissau, Comoros and Dominican Republic.

In a notice issued to trade partners including travel agents, authorities indicated that all applications should be rejected.

"Any applications from the above mentioned countries will be sent back or cancelled."

Tightening noose

The development is the latest development in efforts by UAE while tightening the noose for foreigners into the country.

Many people, especially Africans seeking to work in UAE, mostly in Dubai have in the past been using the 30 day visit visas as a scapegoat to stay in the country.

It is said that after applying and getting a visit visa, one then flies to the country as a visitor but uses this time to look for a job.

It has also been said that many on visit visas end up overstaying in the country illegally while working without legalizing their stay in the sand dunes country.

Earlier this year, authorities in UAE introduced a new requirement that all migrant workers from Uganda must present police certificates of good conduct before being allowed into the country.

Whereas this certificate of good conduct had earlier in 2018 introduced by authorities in UAE, Ugandans had been excluded from the same until this year when it was demanded.

In the same notice, Ugandans and Nigerians travelling to United Arab Emirates were also required to have at least Shs 5 million on their bank accounts in a move aimed at curtailing bad behaviour exhibited by individuals carrying passports from the two countries.

Recently, more than 600 Ugandans who were living in UAE illegally after their work visas had expired were deported whereas many others involved in dubious activities were also sent packing.

United Arab Emirates is one of the favourite destinations for Ugandans, especially those going as migrant workers with over 10,000 estimated to be the country.

Annual remittances from UAE to Uganda are estimated to be about shs 770 billion.

Kenyan Innovator to Address Migrant Workers Plights at Global Forum

Nairobi — Kenyan venture builder Evans Wadongo will address plights of Kenyan migrant workers in the Middle East at this year's global investment forum.

The innovator will be among speakers addressing this year's Future Investment Initiative (FII), a global investment conference taking place from October 25th-27th in Riyadh, Saudi Arabia.

Emigrants to Gulf Countries have for long been subjected to cruelty in the hands of employers with numerous reported cases of deaths and human rights infringements.

"He will also use the opportunity to highlight the need for Africans, including Kenyans to stop going to countries where they are mistreated and tortured to deaths,"

"He will encourage more partnerships in venture capital investments as a tool to create decent jobs within Africa," Wadson Ventures Group, an early stage venture builder said in a statement.

Abuses in the Gulf stem from the kafala (sponsorship) system where employers have the power over a migrant. Under this, employers withhold employee passports thus cannot get another job.

A 2020 report by Human Right Watch (HRW) titled 'How Can We Work Without Wages' blames Qataris independent and labour companies for frequent delays, withholding, or arbitrarily deduction of workers' wages.

To address the problem, Qatar in 2015 installed a Wage Protection System (WPS) to ensure migrant workers are paid in a timely and accurate measure. However, the system is yet to tame wage abuses as well as workers wage violations.

Due to reprisal fears, many employees fear taking employers and their companies to the Labour Relations department or the Labour Dispute Resolution Committees as it is difficult, costly, time-consuming and ineffective.

Apart from being forced to work long hours by employers, living in cramped quarters, paying off their debts, and being beholden to their sponsors for their jobs, food, housing, residence permits and visas, many of Qatar's migrant workers fight a persistent battle against wage abuse.

The conference, which will take place in November, will also see Odongo discuss challenges and opportunities in raising capital especially in emerging markets

Other notable speakers include Nobel Peace Prize winners Leyma Gbowee and Kailash Satyarthi, Dr. Patrice Motsepe, Executive Chairman, African Rainbow Minerals, among others.

Now in its 6th year, FII aims to transform humanity by turning ideas into real-world solutions.

Wadongo is a Partner at Wadson Ventures, an early-stage venture builder working with promising sustainable African enterprises in sectors such as agritech, healthcare, food, ecommerce, manufacturing, among others.

-Capital FM.

Nigeria: AfDB Plans $1.5bn Green Facility to Meet Demand for Funds to Develop Clean Energy

The African Development Bank (AfDB) is setting up a $1.5 billion green finance facility to help meet surging demand for money to develop clean energy and defend infrastructure against floods, storms and rising seas exacerbated by global warming.

The AfDB plans to partner with commercial banks and governments to fund projects, the AfDB's principal climate officer, Audrey-Cynthia Yamadjako, told Bloomberg in an interview.

"It's a way to develop a sustainable pipeline of well-structured projects," she said.

The fund aims to encourage investment in climate finance needs on the continent, which aren't being met by cash-strapped African governments or by developed nations.

The Nationally Determined Contributions of African nations plans presented to the United Nations charting national responses to global warming -- would need $2.8 trillion in funding by 2030, according to an AfDB presentation.

The lender aims to raise $100 million by the end of 2023 and the full $1.5 billion by the end of 2025, a small proportion of the financing the continent will need to adapt to a warming planet.

Initial funding will partly come from the Climate Investment Funds and other partners, Yamadjako said.

The issue of climate financing is expected to take centre stage at next month's UN climate summit as developing nations demand more support from industrialized countries that prospered for nearly two centuries at the expense of the planet.

The AfDB recently said the continent was losing up to 15 per cent of its Gross Domestic Product (GDP) per capita growth to climate change and related impacts, urging developed nations to fulfil their commitment by bridging the "climate financing gap".

To close the gap, the AfDB said about $1.6 trillion was needed between 2022 and 2030 to meet the continent's Nationally Determined Contributions (NDCs), with the climate finance gap now increasing.

The bank urged the global community to meet its $100 billion commitment to help developing countries mitigate the impacts of climate change.

At a United Nations climate summit in Copenhagen in 2009 (COP 15), rich nations promised to channel $100 billion annually to developing countries by 2020 to help them adapt to climate change and mitigate further rises in temperature. But that pledge has only ever been partially met.

-This Day.

Nigeria: Why Petrol Is Still Scarce in Abuja After Lokoja Flood - IPMAN

President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Debo Ahmed, says petrol is still scarce in the Federal Capital Territory (FCT) and its environs even after the flood that caused traffic gridlock in Lokoja, Kogi State, has receded because of the supply gap the blockade created.

Since early October, there have been long fuel queues in some of the filing stating in Abuja with many others not selling the product.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had blamed the flood taking over highways in Lokoja for the scarcity.

But days after the flood has receded, the scarcity of the petroleum product has persisted in Abuja and its environs.

The IPMAN's president attributed the current scarcity to the break in supply of the product.

"They (suppliers) have to up their load from the depots to meet up because as it is coming, people are buying. A lot of people are thinking there is still the issue (scarcity) so they will queue. It is not that there is no product, there is a lot of product in the depots. So, it is because of the break in supply of the product that is still causing the scarcity."-Daily Trust.

Kenya: I Will Curb Debt Appetite By Expanding Tax Base - President Ruto

Nairobi — President William Ruto has urged Kenyans to pay taxes to enable the government fulfil its mandate for Kenya to be an independent nation.

The Head of State during a thanksgiving service in Kitui Central constituency stated that will be the viable solution to steer development in the country without huge reliance on foreign debts.

"The only way we can truly be an independent nation is when we can support our development with our own resources," Ruto said.

President Ruto mentioned that his regime is working to solve the huge debt crisis due to the ballooning debt in the country that now stands at Sh8.2 trillion.

He revealed that the government is focused on financing development project using taxes pointing out that the government is currently paying more than Sh1 trillion to service the huge loans currently.

"We must stop the tendency of borrowing from other countries and we start looking for own revenue. It's possible by increasing our tax collections from the current Sh2 trillion," he stated.

"I will lead from the front to ensure that Kenya is removed from the current debt status."

The Head of State expressed that the nation will not been enslaved in debts by foreign nation if the tax collection based is increased to occasion additional revenue.

"The bible says the borrower is a slave to the lender. We don't want our nation to be in debt," President Ruto said.

This comes days after Treasury CS Ukur Yatani, clarified that the country has never defaulted on any of its creditors after details emerged that the Chinese banks have fined the country $11 million for failing to pay back loans used to finance a major railway.

The government had borrowed $4 billion to construct the Standard Gauge Railway from the port of Mombasa to Naivasha town.

In the current statistics, China accounts for one-third of Kenya's external debt.

Kenya's debt registry as of the end of last year shows gross public debt crossed the Sh8 trillion mark to stand at Sh8.2 trillion against the country's nominal GDP estimated at Sh10.7 trillion.

This means for every Sh10 earned from the sale of goods and services in the country, Sh7 covers loans, illustrating Kenya's high level of indebtedness.

The external debt burden has worsened due to the persistent fall in the value of the Kenya shilling and the economic slump that followed the Covid-19 restrictions.

-Capital FM.

Invest Wisely!

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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 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.

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