Major International Business Headlines Brief::: 28 October 2022

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Major International Business Headlines Brief::: 28 October 2022 

 


 

 


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

 


 

 


 

ü  Elon Musk completes $44bn Twitter takeover

ü  Elon Musk: How the world's richest person bought Twitter

ü  Investors dump Amazon as economy concerns grow

ü  King Charles 50p coins struck for the first time

ü  Meta: Shares in Facebook owner dive 20% as investors lose faith

ü  US economy resilient despite rising prices

ü  Shell pays no UK windfall tax despite profits jump

ü  Credit Suisse cuts 9,000 jobs to stem losses

ü  Crunch time as crisp makers adopt plastic-free packets

ü  Decisions on spending cuts and tax rises are sober, officials say

ü  Sliding yen: What is happening to the Japanese currency?

ü  Nigeria Taps South Korea's Daewoo to Fix Kaduna Refinery

ü  Africa: Namibia Could Become Africa's Energy Capital

ü  Kenya: Safaricom Rolls Out Commercial 5G Networks in 5 Counties

ü  Tanzania Moves to End Sugar Shortage

ü  South Africa: No Fuel Supply Shortage - DMRE

ü  South Africa: Load Shedding to Continue Through the Weekend

 


 <mailto:info at bulls.co.zw> 

 


 

Elon Musk completes $44bn Twitter takeover

The world's richest man, Elon Musk, has completed his $44bn (£38.1bn)
takeover of Twitter, according to an investor in the firm.

 

A number of top executives, including the boss, Parag Agrawal, have
reportedly been fired.

 

It brings to a close a saga that saw Twitter go to court to hold the
billionaire to the terms of a takeover deal that he had tried to escape.

 

Mr Musk tweeted that his interest in the firm was not about making money.

 

Twitter investor Ross Gerber, who is chief executive of Gerber Kawasaki
Investments in California, confirmed to the BBC that the deal had been
completed.

 

"I think the court pushed him over the line," said Mr Gerber. "Quite
frankly, this has sort of been a disaster from the beginning, of course,
starting off very aggressively courting Twitter in a way that really forced
Twitter to the table... then getting all upset and having a public spat over
what to me was pretty well known issues."

 

The company's chief executive, Mr Agrawal, chief financial officer Ned
Segal, and the firm's top legal and policy executive, Vijaya Gadde, are no
longer with the company, according to US media reports.

 

Twitter co-founder Biz Stone thanked Mr Agrawal, Mr Segal and Ms Gadde for
their "collective contribution" to the business.

 

The social media platform's shares will be suspended from trading on Friday,
according to the New York Stock Exchange's website.

 

Mr Musk said he bought the social media platform to help humanity and he
wanted "civilization to have a common digital town square".

 

Earlier this week Mr Musk tweeted a video of himself walking into Twitter's
headquarters in San Francisco carrying a kitchen sink with the caption: "let
that sink in!"

 

He also changed his Twitter profile to read "Chief Twit".

 

Many analysts argued the price Mr Musk is now paying for the company is too
high given the decline in the values of many tech stocks and Twitter's
struggle to attract users and grow.

 

On a recent earnings call, the Tesla founder said Twitter was "an asset that
has just sort of languished for a long time, but has incredible potential,
although obviously myself and the other investors are overpaying for Twitter
right now".

 

It now appears as though Twitter's top executives have been brushed aside by
Mr Musk.

 

It's unlikely the eccentric billionaire will call himself chief executive.
But make no mistake, he now runs Twitter.

 

Mr Musk fell out with Twitter's CEO Parag Agrawal in early April - when he
sat briefly on Twitter's board.

 

In private messages revealed in court filings, Mr Musk talked about how Mr
Agrawal didn't understand how to fix Twitter's problems.

 

His removal is hardly surprising and signals a clear change in direction for
the social media platform.

 

Many people on the right of US politics will celebrate his exit. They view
people like Parag Agrawal, and his predecessor, Jack Dorsey, as liberals who
are curtailing free speech.

 

They also think under their stewardship Twitter has censored conservative
voices.

 

It appears now Mr Musk is at the helm, and many people who have been banned
for hate speech or disinformation may be invited back to the platform.

 

This may leave the door open for Donald Trump to come back to Twitter -
though the former president has previously said he won't be reactivating his
account - preferring instead to post on his own platform Truth Social.

 

Mr Musk's early investments in Twitter initially escaped public attention.
In January, he began making regular purchases of shares, so that by the
middle of March he had accumulated a 5% stake in the firm.

 

In April, he was revealed as Twitter's largest shareholder, and by the end
of the month a deal was finally reached to buy the company for $44bn.

 

He said he planned to clean up spam accounts and preserve the platform as a
venue for free speech.

 

But by mid-May Mr Musk, a prolific Twitter user, had begun to change his
mind about the purchase, citing concerns that the number of fake accounts on
the platform was higher than Twitter claimed.

 

In July he said he no longer wished to acquire the company. Twitter,
however, argued the billionaire was legally committed to the acquisition.

 

Twitter eventually filed a lawsuit to hold him to the deal.

 

In early October, Mr Musk revived his takeover plans for the company on
condition that legal proceedings were paused.

 

Change ahead

Mr Musk, a self-styled "free speech absolutist", has been critical of
Twitter's moderation policies and the news will be greeted with mixed
feelings by Twitter users and employees.

 

Some users, particularly those on the US right, argue conservative voices
are censored on the platform - an accusation that Twitter denies.

 

Former US President Donald Trump remains banned from the platform - a
decision Mr Musk has previously said was "foolish" and that he would
reverse.

 

But others fear relaxing moderation policies would allow hate-speech to
proliferate.

 

In a tweet addressed to Twitter advertisers Mr Musk said that the platform
could not become a "free-for-all hellscape" and must be "warm and welcoming
for all".

 

As Twitter's owner, Mr Musk was widely reported to be planning big staff
cuts. However, Bloomberg has reported the billionaire denied that he would
cut 75% of staff in a meeting with employees.

 

But working at Twitter may become more onerous. The Tesla chief executive
has previously tweeted that employees should anticipate work ethic
expectations that are "extreme".

 

The entrepreneur has also posted that his plans for Twitter include "X, the
app for everything".

 

Some suggest this might be something along the lines of the hugely
successful Chinese app WeChat, a kind of "super app" that incorporates
different services including messaging, social media, payments and food
orders.-BBC

 

 

 

Elon Musk: How the world's richest person bought Twitter

It was a cool evening in late March in San Jose.

 

A hastily organised meeting had been arranged at an Airbnb to host the
world's richest person.

 

The meeting was a big one for Twitter. Elon Musk had recently become
Twitter's largest shareholder. Now there was talk that he wanted to join the
company's board.

 

When Twitter's chairman, Bret Taylor, arrived at the venue it was not quite
what he was expecting.

 

This "wins for the weirdest place I've had a meeting recently", he
reportedly texted Mr Musk.

 

"I think they were looking for an Airbnb near the airport and there are
tractors and donkeys," he told him.

 

However, the meeting went swimmingly.

 

A few days later it was announced that Mr Musk was to join Twitter's board.

 

Elon Musk completes $44bn Twitter takeover

That was only the beginning. The next six months would witness one of the
most crazy, on-off deals in Silicon Valley's history.

 

At the beginning of April, Mr Musk seemed happy with his board position at
Twitter, tweeting regularly about how the company might change.

 

However, private meetings between him and Twitter's CEO Parag Agrawal had
not gone well. The two did not see eye to eye on how to fix the platform. Mr
Musk got frustrated.

 

"Fixing Twitter by chatting with Parag won't work," he is said to have
texted Mr Taylor. "Drastic action is needed."

 

On 14 April, the billionaire publicly stated that he wanted to buy Twitter -
lock, stock and barrel.

 

He offered $44bn (£38bn) for Twitter in a take it or leave it offer.
Twitter's board initially rejected the offer, even creating a "poison pill"
provision to try to prevent Mr Musk from forcibly buying the company.

 

Then another change of heart (not the first in this story). Twitter's board
decided that, on reflection, they would take the deal and on 25 April,
Twitter announced they had accepted the offer.

 

"Yesssss" Mr Musk tweeted.

 

 

Mr Musk argued that Twitter had lost its way. He said Twitter had too often
restricted speech and, as the world's "town hall", it needed to place free
speech above all else.

 

He said he did not care about the "economics at all" in an interview at the
TED2022 conference in Vancouver, Canada.

 

That was lucky, because the weeks and months after the deal saw tech stocks
fall. Twitter's value also waned. Soon, many analysts began to question
whether Mr Musk had overpaid for Twitter.

 

Publicly, he began to ask a different question - how many real accounts were
on Twitter?

 

The billionaire - ranked by Forbes and Bloomberg as the world's richest
person, with a net worth of about $250bn (£216bn) - had for years complained
about the number of bots on the platform.

 

After having his offer accepted, he repeatedly asked Twitter to provide data
about how many real users it had.

 

Twitter executives shared their figure that fewer than 5% of daily active
users, based on estimates from randomly sampled accounts, were bots. It
appeared to enrage Mr Musk.

 

After a long Twitter thread from Mr Agrawal, explaining how the company had
reached that figure, Mr Musk responded with the poop emoji.

 

The deal was falling apart. Not entirely unexpectedly, on 8 July, Mr Musk
announced he wanted to pull out of the deal.

 

Was he trying to get a better price for the company or was he genuinely
walking away? It was hard to tell.

 

Twitter was not having any of it. It argued that Mr Musk's agreement to buy
the company was legally binding and unpicking the deal now was not an
option.

 

With very expensive lawyers on both sides, a court date was set in Delaware
for 17 October to decide whether Mr Musk would be forced to buy the company.

 

In court documents, Twitter argued it had given him ample information about
how many real users it had.

 

Mr Musk argued Twitter could have many times as many bots than it had
publicly claimed, and even accused the company of fraud.

 

The drip, drip of public criticism was hurting Twitter. The vast majority of
Twitter's revenue comes from adverts and advertisers were beginning to
wonder how many ads were being shown to real people.

 

The process was becoming immensely distracting in Twitter HQ too. Some
employees relished the idea of Mr Musk becoming their CEO. Many privately -
and some publicly - said his purchase would be a disaster for content
moderation and the broader goals of the company.

 

Who is Elon Musk?

Elon Musk claims he's buying Twitter for 'humanity'

Musk: SpaceX will keep funding Ukraine Starlink

Mr Musk, Twitter, the judge and journalists, were all preparing for what
seemed like an inevitable court case when another remarkable twist occurred.

 

>From nowhere, after making all sorts of allegations against Twitter, Mr Musk
suddenly announced the deal was back on.

 

"Buying Twitter is an accelerant to creating X, the everything app," he
said.

 

 

The BBC is not responsible for the content of external sites.

View original tweet on Twitter

What had changed his mind? Well perhaps he thought he would lose his court
case. A few days before he announced his reversal, he was due to face a
deposition by Twitter lawyers. Perhaps he wanted to avoid what would have
been a gruelling and likely revealing cross-examination.

 

Whatever the reason, you can see why Twitter did not pop the champagne
corks. Once bitten, twice shy, Twitter reacted, mutedly. Mr Taylor tweeted
that the company was "committed to closing the transaction on the price and
terms agreed upon with Mr Musk".

 

Twitter also asked for the court case to be postponed, not cancelled. Mr
Musk's lawyers retorted that Twitter "won't take yes for an answer".

 

Mr Musk had until 17:00 BST on 28 October to come up with the money.

 

Billions would be stumped up by his rich friends and banks. The rest of it,
from Mr Musk, by selling some of his shares in Tesla.

 

A deal which at times looked intractably, impossibly broken, now appears to
have finally been concluded.-BBC

 

 

 

 

Investors dump Amazon as economy concerns grow

Apple and Amazon sales are being hit by the weakening global economy, the
tech giants have warned, adding to fears about their upcoming profits.

 

Amazon shares tumbled more than 15% after the US stock market closed, as the
firm forecast far weaker sales for the festive season than expected.

 

Apple shares also slipped after warning of a slowing demand for gaming and
advertising.

 

Both cited the rising cost of living as a factor eroding consumer buying
power.

 

"We're very optimistic about the holiday but we're realistic that there are
various factors weighing on people's wallets", Amazon's chief financial
officer Brian Olsavsky told analysts on a call to discuss the results.

 

Amazon founder Jeff Bezos, who remains chairman of the company, recently
warned about worrying signals coming from the economy, writing on Twitter
that it was time to "batten down the hatches".

 

Apple, seen as one of the steadiest of the tech giants, has not been immune.

 

'Winter of discontent'

In its update on Thursday, Apple reported that sales rose by 8% to $90.1bn
in the three months to September compared with the same period the year
before.

 

That was a quarterly record, albeit one dented by weaker-than-expected
iPhone sales and soft growth in China.

 

But Apple executives warned investors that they were seeing weakness in
digital advertising and gaming and expecting a sharp fall in Mac computer
sales. They added that a strong dollar would hit business.

 

"Apple's ability to sell highly priced hardware in the current environment
defies all the rules," said Sophie Lund-Yates, lead equity analyst at
Hargreaves Lansdown.

 

"The key festive season is a crucial barometer for consumer sentiment, and
there's a possibility Apple is going to lose some steam year-on-year when it
comes to Christmas sales."

 

Amazon founder: 'Batten down the hatches'

Apple moves iPhone 14 production to India

Both Apple and Amazon saw business boom during the pandemic, as more
activity moved online.

 

But sales have softened significantly over the past year, as consumers do
more of their shopping in person once again, and shift their buying habits
in response to rising prices.

 

At Amazon, overall sales in the three months to September rose 15%
year-on-year to $127.1bn, but its international business shrank. Growth
slowed in its lucrative cloud services unit.

 

While Amazon sales were strong in July, they weakened in August and
September, especially in Europe, said Mr Olsavsky, blaming the problems on a
"tougher recessionary environment".

 

Costs for items such as fuel are also rising, which is likely to hit
profits, he added.

 

"Worrying times for Amazon, in line with other big tech," said Paolo
Pescatore, analyst at PP Foresight. "This is set to be a winter of
discontent."

 

Executives at major tech firms, including Microsoft, Google's parent company
Alphabet, and Facebook have also discussed weakness in recent financial
updates.-BBC

 

 

 

King Charles 50p coins struck for the first time

Manufacturing has begun of the first coin to enter general circulation
carrying the image of King Charles.

 

The 50p coin has started to be struck at The Royal Mint in Llantrisant,
Wales, and will enter tills, wallets and purses in December.

 

Sculptor Martin Jennings, who created the portrait of the King, said that
witnessing the coin being produced was a "quite remarkable experience".

 

He said it took months of painstaking work to get the image right.

 

He used pictures of King Charles on his 70th birthday to create a likeness
of the monarch, in what is the smallest work he has ever had to produce.

 

"It has to be an exact portrait but also that says something about the
lasting values of the institution he represents," Mr Jennings said.

 

"In subtle and tiny ways, you can put these things across."

 

Commemoration

King Charles's portrait is the first coin design undertaken by Mr Jennings,
but his public sculptures include poets John Betjeman, in St Pancras Station
in London, and Philip Larkin in Hull.

 

The reverse side of the coin is a copy of the design used on the 1953 Crown
struck to commemorate the Queen's coronation.

 

It includes the four quarters of the Royal Arms depicted within a shield. In
between each shield is an emblem of the home nations: a rose, a thistle, a
shamrock and a leek.

 

The 50p coins will be available for general use in December, distributed
according to demand by banks, building societies and post offices.
Eventually, 9.6 million 50p coins of the latest design will be made. Other
denominations will be manufactured, carrying the King's image, in line with
demand.

 

They will co-circulate with coins featuring the late Queen, so those 27
billion coins will still be accepted in shops. Before decimalisation, it was
common for people to carry coins featuring different monarchs in their
pockets.

 

The coins will follow centuries of tradition of the monarch facing left -
though King Charles's predecessor faced right, bucking this trend.

 

As with previous British kings, and unlike the Queen, he wears no crown.

 

The coins are being struck at The Royal Mint's site at Llantrisant where the
official coin maker - and Britain's oldest company - moved to accommodate
the decimalisation process in 1967. Visitors to the Mint's museum will be
able to see the manufacturing process and strike their own coin.

 

What is the Royal Mint?

It is one of the oldest companies in the world, striking its first coin in
the late 9th Century, during the reign of Alfred the Great

The Mint was based inside the Tower of London for most of its existence, but
since the late 1960s its home has been Llantrisant in Rhondda Cynon Taf

The current facility was opened by Queen Elizabeth II on 17 December 1968,
just in time for the massive task of replacing the billions of coins in
circulation ahead of decimalisation

There are more than 27 billion coins in circulation in the UK, with the Mint
issuing around one billion new coins every year - although this figure does
fluctuate

2px presentational grey line

Kevin Clancy, director of The Royal Mint Museum, said: "For many people,
this will be the first time in their lives that they have seen a new monarch
appear on money.

 

"It represents the biggest change to UK coinage since decimalisation and
will usher in a new era where the coins of Queen Elizabeth II and King
Charles III co-circulate in the UK. The new memorial 50 pence marks a moment
in history and honours a landmark reign that lasted for 70 years."

 

Cash and debit card use graphic

Questions still remain over the relevance of coins in the modern era as
people increasingly turn to cards and smartphones to pay for things.

 

Cash use is forecast to drop, accounting for 6% of payments by 2031,
according to the banking trade body UK Finance.

 

The Mint says that coins still portray our national identity as well as
having a practical function.

 

The buying power of coins is also being reduced by high levels of
inflation.-BBC

 

 

 

 

Meta: Shares in Facebook owner dive 20% as investors lose faith

Shares in Meta, which owns Facebook and Instagram, have plunged more than
20% after a downbeat set of results from the tech giant.

 

It comes as investor doubts about Mark Zuckerberg's vision for the future
grow, and revenues and profits decline.

 

Meta's sales shrank by 4% in the three months ending in September to $27.7bn
(£24bn), while profits halved.

 

The fall in shares is set to wipe $78bn off the firm's market value if the
losses hold until the end of Thursday.

 

What's gone wrong?

A year ago, Mark Zuckerberg declared virtual reality the next frontier to
drive Facebook's growth. But so far, there has been very little of it.

 

The company, which also owns WhatsApp, is struggling as companies cut
advertising budgets in the face of economic uncertainty, changes to Apple's
privacy settings hurt its targeted ads, and competition from rivals such as
TikTok heats up.

 

Mr Zuckerberg, who founded Facebook at university almost two decades ago,
acknowledged the firm faced "near-term challenges".

 

Share price chart

He said the company was focused on becoming more efficient and hinted at job
cuts, saying the firm may be a "smaller organisation" next year.

 

But on a conference call stacked with sceptical analysts, he also maintained
that the company was on the right path, as it invests in ways to keep people
on its apps and stakes a claim in the emerging world of virtual reality,
also known as the metaverse.

 

"There are a lot of things going on right now in the business and in the
world," he said. "We're going to resolve each of these things... I think
those who are patient and invest with us will end up being rewarded."

 

Investor confidence plunged in February, when the company revealed it had
lost daily users for the first time ever. Then in July, the company reported
its first quarterly decline in revenue, as companies spooked by the economic
outlook cut their advertising budgets.

 

Prior to the firm's update, the value of Meta's shares had fallen 60% since
the start of the year, wiping hundreds of billions off the company's value.

 

They slid further on Thursday, after executives warned that recovery would
take an improvement in the wider economy.

 

Facebook feeds flooded with celebrity spam

Meta reveals new $1,499 mixed reality headset

Analyst Debra Aho Williamson of Insider Intelligence said the company was on
"shaky legs when it comes to the current state of its business".

 

"Mark Zuckerberg's decision to focus his company on the future promise of
the metaverse took his attention away from the unfortunate realities of
today: Meta is under incredible pressure," she said.

 

Meta continues to generate large profits - nearly $4.4bn in the three months
ended in September - and it has also fended off a decline in users.

 

The company said 2.93 billion people were active on one of its platforms
daily in the three months ended in September, up from 2.88 billion in the
quarter before.

 

Although the core Facebook platform is not adding users in the US or Europe,
it continues to grow in other parts of the world.

 

Despite its strengths, many investors fear the company has lost its way.

 

"Meta has drifted into the land of excess — too many people, too many ideas,
too little urgency. This lack of focus and fitness is obscured when growth
is easy but deadly when growth slows and technology changes," investor Brad
Gerstner, chief executive at Altimeter Capital, told the firm in an open
letter this week, which called on the company to cut staff and scale back
its investments in artificial intelligence and virtual reality, also known
as the metaverse.

 

Facebook's expenses have ramped up in recent years, as it faced questions
about how it was handling the spread of misinformation on its platform and
protecting user privacy.

 

The company said it was "making significant changes across the board to
operate more efficiently" and planned to hold headcount flat over the next
year.

 

That would be a major shift after payrolls surged from about 17,000 at the
end of 2016 to more than 87,000, rising 28% just in the last year.

 

But it warned that losses in its Reality Labs unit, which works on virtual
reality and has seen revenues drop significantly, were likely to grow.

 

Mr Zuckerberg said he remains committed to the project, despite the
doubters.

 

"I get that a lot of people might disagree with this investment but from
what I can tell I think this is going to be a very important thing," he
said.-BBC

 

 

 

US economy resilient despite rising prices

The US economy has held up better than expected, as shoppers keep spending
despite rising prices and higher borrowing costs.

 

The economy expanded at an annual rate of 2.6% in the three months ending in
September, returning to growth after two quarters of decline.

 

The better-than-expected figure is one of the last major economic readings
before US midterm elections next month.

 

Many analysts say the US is still on track for a slowdown next year.

 

In the most recent quarter, a surge in exports helped drive the growth, the
commerce department said.

 

But analysts said that is unlikely to last as a strong dollar and weak
global economy make it harder for US companies to sell abroad.

 

And consumer spending, while resilient, is slowing, growing by 1.4% in the
three months ending in September compared to 2% in the previous quarter.

 

"There's more to it than just the headline number," said Andrew Patterson,
international economist for investment company Vanguard.

 

Is the US in a recession?

US prices rise by more than expected

The figures come as much of the public already believes the US economy has
entered an economic downturn, or recession.

 

The concerns have put the Democratic Party on the defensive as they battle
Republicans for control of Congress.

 

President Joe Biden cheered the figures on Thursday, calling them "further
evidence that our economic recovery is continuing to power forward".

 

Speaking at a community college in Syracuse, New York, Mr Biden said "even
though my Republican friends in Congress seem to be hoping for a
recession... today the GDP results came out and the economy, in fact, is
growing."

 

"And although it may not feel like it for everyone, people's incomes went up
last quarter more than inflation went up," he added.

 

The White House has made the case that a slowdown, after the surge in
activity as the economy reopened from the pandemic, is part of a healthy
economic transition.

 

Hiring has remained solid and the unemployment rate near historic lows.

 

But prices are rising at their fastest rate since the 1980s, eroding
people's purchasing power and prompting the US central bank to take steps to
try to cool the economy to stabilise the situation.

 

The Federal Reserve has raised interest rates five times since March,
pushing up borrowing costs at the fastest pace in decades.

 

The moves have hit stock markets and led to a swift slowdown in the housing
market, where activity is closely tied to borrowing costs.

 

Activity in the housing market including construction fell by 26% in the
quarter, the commerce department said.

 

Since the impact of higher interest rates tends to be felt at a lag, many
analysts predict a further slowdown ahead.

 

A recent survey by the National Association for Business Economics (Nabe)
found that a majority of economists expect the US economy to enter a
recession next year. This is defined as a significant decline in economic
activity spread across the market, lasting more than a few months.

 

Julia Coronado, president of Nabe, said a bleak global outlook was adding to
those fears, with the energy crisis in Europe, slower Chinese growth and
rising inflation unsettling economies around the world.

 

"You're looking at a global economy that doesn't really have an engine of
growth," she said. "That's a big change and I think that can add to the
gloom, even if when you look under the hood what you see in the US is still
a lot of resilience."-BBC

 

 

 

Shell pays no UK windfall tax despite profits jump

Shell has reported its second highest quarterly profit on record but it has
not paid the UK's windfall tax on energy firms.

 

The energy giant said global profits reached $9.5bn (£8.2bn) between July
and September, compared to $4.2bn during the same period last year.

 

However, Shell said that because it had made large investments in the UK, it
meant it had made no profit here.

 

It also does not expect to start paying windfall taxes until early next
year.

 

The Energy Price Levy - or windfall tax - on the profits of energy firms was
announced by Rishi Sunak in May, when he was chancellor. At the time he said
it would raise £5bn in its first year.

 

What is the windfall tax on oil and gas companies?

Oil and gas prices began to rise after the end of Covid lockdowns but have
surged since February after Russia's invasion of Ukraine, resulting in
bumper profits for energy companies.

 

Higher oil and gas prices has also fuelled the rise in energy bills for both
households and businesses. The government is limiting gas and electricity
bills through the Energy Price Guarantee scheme but instead of lasting for
two years as originally planned, it will now end in April.

 

There have been warnings that typical household gas and electric costs could
reach more than £4,300 when support is scaled back. The price of energy has
also been a major driver of inflation - the rate at which prices rise -
which is currently 10.1%.

 

'Fair share'

Ed Miliband, Labour's shadow climate change secretary, said the current
windfall tax on energy firms was flawed and "would see billions of pounds of
taxpayer money go back into the pockets of oil and gas giants through
ludicrous tax breaks".

 

Shell's profits were "further proof" the UK needed a higher windfall tax to
make sure energy companies "pay their fair share", he said.

 

The Liberal Democrats, Green Party and campaigners have also criticised the
current policy.

 

But cabinet minister Nadhim Zahawi defended the windfall tax, telling the
BBC's Today programme Shell and other energy giants already pay high taxes.

 

He added that the existing levy was introduced in a "very smart way" because
it incentivised investment.

 

"We need them to invest in the North Sea assets to grow our production," he
said.

 

A spokesperson at the Treasury said the Energy Profits Levy was expected to
raise £17bn this year and next, and came on top of a headline rate of tax
for the industry of 40%.

 

"We also want to see the sector reinvest its profits to support the economy,
jobs, and our energy security, which is why the more investment a firm makes
into the UK, the less tax they will pay," they added.

 

A windfall tax is a one-off levy that targets companies who benefit from
something they were not responsible for, in this case a sharp rise in oil
prices.

 

The 25% tax is applied only to UK profits which, for most oil and gas
companies, is a small part of their operations.

 

Oil and gas firms operating in the North Sea are taxed differently to other
firms. They pay 30% corporation tax on their profits as well as a
supplementary 10% rate. On top of that, they pay the windfall tax taking
their total tax rate to 65%.

 

However, firms have been able to reduce the amount of tax they pay by
factoring in losses or spending on things like decommissioning North Sea oil
platforms. It means that in recent years, the likes of BP and Shell have
paid almost no tax in the UK.

 

The Energy Profits Levy also has a measure that allows energy companies to
apply for tax savings worth 91p of every £1 invested in fossil fuel
extraction in the UK.

 

Downing Street said that any changes to the windfall tax would be a matter
for Chancellor Jeremy Hunt's autumn statement.

 

The prime minister's official spokesman said "no options" were off the table
given the country's economic circumstances.

 

Shell said it made investments worth $400m in the UK during its third
quarter. The firm's finance chief Sinead Gorman said on Thursday: "We simply
are investing more heavily than we have, and therefore we don't have profits
which we can be taxed against."

 

Shell chief executive Ben van Beurden said the company was "working closely"
with governments and customers to "address their short and long-term energy
needs".

 

'Obscene'

Mr van Beurden previously said taxes on firms within the oil and gas
industry were "inevitable" to help the poorest people. He said energy
markets could not behave in a way that "damage a significant part of
society".

 

But Frances O'Grady, general secretary of the TUC union, said Shell's
profits were "obscene - especially at a time when millions are struggling
with soaring bills".

 

"The government has run out of excuses," she said. "It must impose a higher
windfall tax on oil and gas companies. The likes of Shell are treating
families like cash machines."

 

So far this year, Shell has reported profits of $30bn which is more than
double the amount it made over the first nine months of 2021. The company
plans to reward its shareholders with a 15% increase in its regular dividend
and is on track this year to beat its record annual profit of $31bn in 2008.

 

Stuart Lamont, an investment manager at RBC Brewin Dolphin, said the higher
pay-out from Shell to its shareholders "may well raise a few eyebrows" at a
time when UK households are facing surging energy bills.

 

'Gold mine'

Jonathan Gant, a fossil fuels campaigner at Global Witness, said oil and gas
companies were the architects and beneficiaries of a "broken energy system".

 

He said it was "blindingly obvious" that energy firms were sitting on an
"untapped gold mine".

 

"It's time to stop punishing people for a system they didn't create and take
the money this country desperately needs from the immense profits Shell and
other energy companies are enjoying."

 

But Andy Mayer of the Institute of Economic Affairs, a free market think
tank, said: "Few companies will invest where politicians are hostile to
development before it happens, then punish success after the event."

 

Nathan Piper, an oil and gas analyst at Investec, said fears of recession in
many countries had led to oil prices dropping globally. Gas prices in the UK
have also dropped sharply due to a lack of gas storage space and
unseasonably mild October weather.

 

However, Mr Piper told the BBC the drop was "likely to be short-lived ahead
of colder winter weather and associated increases in gas demand for
heating".-BBC

 

 

 

Credit Suisse cuts 9,000 jobs to stem losses

Banking giant Credit Suisse is cutting thousands of jobs and restructuring
its business in an attempt to stem heavy losses and investor concerns.

 

After scandals in recent years and a SF4bn ($4bn, £3.5bn) loss in the most
recent quarter, the bank said it was taking "a series of decisive actions".

 

It said 9,000 posts would go over the next three years but did not say where
the cuts would fall.

 

Chairman Axel Lehmann dubbed the overhaul a "blueprint for success".

 

But investors did not respond positively, with Credit Suisse shares down
more than 13% following the announcement.

 

As part of the restructuring plan Credit Suisse aims to raise $4bn in new
capital, $1.5bn of which will come from Saudi National Bank.

 

It plans to spin off the bank's investment arm, relaunching the CS First
Boston brand, and wind down some of its higher-risk businesses.

 

The workforce will fall from 52,000 now to 43,000 by the end of 2025, with
2,700 jobs going before the end of this year. Credit Suisse is based in
Switzerland, but has a major hub in London and employs 5,500 people in the
UK.

 

That will help it shrink its overall cost base by SFr2.5bn or 15% by 2025,
it said.

 

It is also setting up a "bad bank" unit to house high-risk assets that it
wants to wind down.

 

This is the third attempt in recent years to turn around the embattled group
after a series of scandals hit the bank, once considered a stalwart of Swiss
respectability.

 

In February 2020, its then chief executive Tidjane Thiam left after a
scandal around covert surveillance operations. In March that year the
Archegos investment fund imploded saddling Credit Suisse with huge losses
and it was also dealt a blow by the collapse of the British finance company
Greensill Capital.

 

Last year, the bank's chairman Antonio Horta-Osorio resigned after less than
nine months for breaching Covid rules. Later the bank was fined for a
corruption scandal involving Mozambique's tuna fishing industry.

 

This year the bank was fined over a money-laundering scandal related to a
Bulgarian drugs ring, replaced its chief executive, and last month found its
shares under pressure from investors concerned about the firm's financial
health. Its share price has halved since January.

 

'Question marks'

Credit Suisse, Switzerland's second largest bank, said the restructuring
would create "a simpler, more focused and more stable bank".

 

Ulrich Koerner, who took over as chief executive in July said the bank's
performance this year had been affected by "continued challenging market and
macroeconomic conditions".

 

"This is a historic moment for Credit Suisse. We are radically restructuring
the investment bank to help create a new bank that is simpler, more stable
and with a more focused business model built around client needs," he said.

 

JPMorgan analysts said that "question marks remain" over the restructuring,
adding that the share sale to raise new money would weigh on the stock
price.

 

Andreas Venditti, an analyst at Swiss investment managers Vontobel, said the
plan was "just the first step in a lengthy process to restore credibility
and regain the trust" of stakeholders.

 

"Resolute execution and no further mis-steps will be key and it will take
time until results will begin to show," he said.0BBC

 

 

 

Crunch time as crisp makers adopt plastic-free packets

When Del Currie decided to give up single-use plastic he had one "naughty
secret" - he couldn't quit his love of crisps.

 

He says his environmentally-minded daughter was not pleased when she found
out that he was cheating.

 

She suggested that if he was serious about making a difference then he
should launch his own crisp company, one that doesn't sell them in plastic
packets.

 

"So I replied, 'Alright then, I will,'" says Mr Currie, who previously
worked in app development. "It wasn't so much a choice to create packet-free
crisps, there just wasn't anyone doing anything good, so I decided to jump
into it."

 

True to his word, in March this year he launched Spudos, which now supplies
crisps to more than 65 so-called "zero-waste shops" across the UK and
Republic of Ireland. These are stores that aim to eliminate packaging, and
instead encourage customers to turn up with their own containers, which they
fill from dispensers.

 

Purchasers of Spudos then flavour and season the crisps in the store, with
one of the company's "Spud Dust" shakers. These cylinder-shaped shakers are
made of plastic, but are designed to be sent back to the firm's base in East
London for refilling.

 

For internet orders from customers both across the UK and overseas, Spudos
packages its crisps and flavourings in packets made from a natural material
called cellulose, which is derived from wood pulp. These decompose in about
45 days.

 

Additionally, people can order a refillable tub which, although made of
plastic, is designed to be used again and again.

 

While most of us don't give crisps, or as they say in North America, potato
chips, much thought as we crunch on them, their manufacture and sale is a
huge industry.

 

Worldwide sales in 2021 totalled $32.2bn (£26.6bn), according to one study,
and in the UK alone it is widely reported that six billion packets of crisps
are consumed every year. Meanwhile, data for the US says Americans typically
eat 1.85 billion pounds (839 million kg) of potato chips per year.

 

A problem with this consumption is the packaging - most crisps continue to
be sold in single-use, non-recyclable plastic packets. These can take
decades to finally decompose.

 

The biggest names in the crisps sector say they will need additional time to
switch to more environmentally-friendly packaging.

 

In the UK, the best-selling brand by far is Walkers, which makes 14 million
packs of crisps per day. In 2018, the fact that its packets are not
recyclable made the headlines when environmental campaigners started to post
the packets back to the company.

 

Walkers' owner, US giant PepsiCo, says it will move to the use of recycled
or renewable plastics by 2030.

 

In the meantime, it is smaller crisps firms who are leading the way in terms
of more eco-friendly packaging, such as Canadian business Humble Potato
Chips. It was launched earlier this year by Alicia Lahey and her husband
Jeff.

 

Their compostable crisp packets are also made mostly from cellulose, and are
certified plastic-free. They are said to have a comparable shelf life to
plastic bags, and are now on sale in both Canada and the US.

 

"We started Humble Potato Chips for our son Wilder," says Ms Lahey. "When he
was born we began to hope for a future that wasn't just our own.

 

"Our goal is to inform people that we don't have to rely solely on plastic
for food packaging, and we can all help to kick micro-plastics from our food
system, human bodies, oceans and soil."

 

Back in the UK, Herefordshire-based farmers Sean Mason and Mark Green
launched sustainable crisps brand Two Farmers in 2018. They were inspired to
seek biodegradable packaging after being fed up with finding empty plastic
crisp packets on their farms.

 

The duo ultimately spent four years trying to find suitable packets that
would enable them bring the crisps to market. "Eventually we visited a
packaging show, and came across sustainable cellulose film, and combined it
with plant-based biodegradable ink and glue," says Mr Mason.

 

"They [the packaging firm in question] had never made it into crisp packets
before, and it took two and a half years to develop."

 

In the end the cost of the finished packaging had quadrupled in predicted
price. "[But] we are trying to give people the option if they want to spend
a bit more on something that's more environmentally friendly. As we scale
up, costs will come down."

 

Two Farmers crisps are now sold on the Eurostar trains between London and
Paris and Brussels, and Mr Mason says they are "in talks to launch in
several European countries in early 2023".

 

But why are plastic crisp packets not typically recyclable? Shelie Miller,
professor in sustainable systems at the University of Michigan, says it is
because "most are not made solely out of plastic, but thin layers of metal
and plastic".

 

"The mixture of both metal and plastic pose a real challenge to recycling
systems, which need to separate individual materials for recycling. Not only
are the packages a mixture of materials, but the separating two different
materials on such a thin package is incredibly challenging from a technical
perspective, and infeasible economically."

 

But Prof Miller also cautions that there are some issues with biodegradable
packaging, such as people wrongly putting it out with their recycling, where
it could act as a contaminant. This could mean that affected items can no
longer be recycled.

 

Andrew Curtis, scientific and regulatory affairs manager at the European
Snacks Association, which represents crisps firms, defends the use of
single-use plastics. "Flexible plastics used in our category have a specific
purpose," he says.

 

"They are lightweight, thereby reducing waste energy for transport and
production, they are hygienic, they meet the current food contact materials
legislation, and, depending on the needs of the product and the choice of
materials, they can provide excellent moisture, oxygen, aroma and UV light
barrier properties."

 

Meanwhile, a spokesperson for Walkers said the UK will soon "be trialling
new packaging made from recycled plastic, products like bags, biscuit
wrappers and other packaging". The brand did previously launch a recycling
scheme in 2018, but that closed in April this year.

 

Prof Miller is hopeful that consumer pressure will mean that more
manufacturers move away from single-use plastic more quickly than currently
expected.

 

Back at Spudos, Del Currie is more blunt. "Big brands should try harder," he
says.-BBC

 

 

 

Decisions on spending cuts and tax rises are sober, officials say

The chancellor and PM are facing "sober" decisions on potential spending
cuts and tax rises, officials have told the BBC.

 

In a meeting on Thursday, they were told that economic growth is forecast to
be considerably lower than the last independent forecast.

 

This means they have a bigger financial "hole" to fill.

 

An announcement on the plans has been pushed back by more than two weeks to
17 November.

 

The Treasury would not put a figure on how much the chancellor and prime
minister will need to find in the budget next month but the BBC is told it
may need to be at least £50bn.

 

Multiple sources said the amount of money the government needed to raise
through spending cuts and tax rises was also more than just this current
"hole" in its finances.

 

This, they said, was because the government needed some "headroom" beyond
just getting their existing debt down in case the economy does not grow as
much as expected.

 

And because spending cuts and tax rises in this budget could reduce future
economic growth, and therefore future tax revenues, money would be needed to
recover that in future.

 

While government borrowing costs have fallen somewhat in recent days,
officials warned Mr Hunt and Mr Sunak that they remain considerably elevated
as global interest rates also rise. For example, the interest rate - or
yield - on 10-year UK government debt is just over 10 basis points higher
than before the mini-budget..

 

The PM and chancellor agreed that to ensure the package is credible to
financial markets, there must also be a buffer - which means a bigger
"repair job" than previously expected.

 

A Treasury source said: "Markets have calmed somewhat, but the picture is
still bleak. Britain is facing an economic crisis with a massive fiscal
black hole to fill.

 

"People should not underestimate the scale of this challenge, or how tough
the decisions will have to be. We've seen what happens when governments
ignore this reality."

 

Last month, sterling fell to a record low against the dollar as government
borrowing costs rose in the aftermath of then-chancellor Kwasi Kwarteng's
mini-budget.

 

The financial markets plunged into turmoil when Mr Kwarteng announced major
tax cuts without detailing how they would be paid for.

 

But the cost of government borrowing has since fallen back to the level it
was at before the mini-budget. The pound also rallied after Mr Sunak became
prime minister, and as the dollar fell.

 

In Mr Sunak's first speech as prime minister on Tuesday, he said he would
"fix" the mistakes made during his predecessor's time in office.

 

The PM said he would place "economic stability and confidence at the heart"
of his government's agenda, and promised to show compassion while making
"difficult decisions".

 

Mr Hunt, who replaced Mr Kwarteng as chancellor after he was sacked by Ms
Truss, has already scrapped almost all the tax cuts announced by his
predecessor.

 

But he still needs to find billions of pounds of savings to keep the UK's
debt under control.-BBC

 

 

 

 

Sliding yen: What is happening to the Japanese currency?

At the end of the last century, Japan became the first major economy to cut
interest rates to zero.

 

During the Covid pandemic, many other nations adopted that tactic to support
their economies.

 

Those countries are raising interest rates again but the Bank of Japan (BOJ)
is expected on Friday to keep its main rate below zero. And that is bad for
its currency.

 

The yen has long been seen as a safe haven, which investors traditionally
bought at times of crisis.

 

But that status is now on shaky ground. This year alone it has lost more
than a fifth of its value against the US dollar to hit the lowest level
since 1990.

 

Why is this happening?

The yen's slide has been driven by the difference between interest rates in
Japan and the US.

 

Since March, the US Federal Reserve has aggressively raised its main
interest rate - from 0.25% to 3.25% - as it tries to tackle the rising cost
of living.

 

Higher interest rates tend to make a currency more attractive to investors.

 

As a result there is less demand for currencies from countries with lower
rates and those currencies fall in value.

 

Economic stagnation

However, some experts believe the weak yen reflects the state of the
country's finances.

 

The economy has hardly grown in the last three decades. It is also the
world's most indebted nation.

 

Japan also faced the demographic time bomb of a low birth rate and a
population with the highest proportion of older people in the world.

 

The government has allowed some foreign workers to help address the issue
but there is still strong opposition to immigration.

 

"There is no reason for the yen to strengthen," says Takeshi Fujimaki, a
former adviser to billionaire investor George Soros.

 

He expects the Japanese currency to hit 180 against the US dollar before
eventually collapsing in value, as he has previously warned.

 

Will Japan raise rates?

BOJ governor, Haruhiko Kuroda, has repeatedly said the economy is too weak
to handle higher interest rates.

 

Like much of the rest of the world, Japanese consumers are struggling with
rising inflation but that has been welcomed by policy makers, who have long
wanted prices to rise.

 

Mr Kuroda says the bank's current policy is necessary to help it reach its
2% inflation target.

 

That is because for years Japan has faced deflation, or falling prices,
which is bad for an economy because when prices keep dropping, consumers
tend to hold back on buying big ticket items as they expect them to be
cheaper in the future.

 

What can Japan do?

Japan had not intervened in the global currency market to prop up the yen
for almost two and a half decades.

 

Last month though, as the currency fell, authorities stepped in, spending
$21bn (£18.3bn).

 

It helped for a short time but soon the currency tumbled again, this time
crossing 150 yen to the dollar.

 

Japan's core consumer prices rose 3.0 percent in September on-year, the
government said on October 21, the highest level since 2014 as the falling
yen and rising energy costs hit households hard

 

 

That reportedly triggered fresh intervention, this time with an estimated
$37bn.

 

The Japanese government has so far refused to confirm it stepped in again,
even as traders said they saw signs of another intervention earlier this
week.

 

Experts have warned that these attempts to prop up the yen will only ever
have a short term effect.

 

"It is to show the position of the Japanese government that it doesn't want
any further weakening of Japanese yen," Eisuke Sakakibara, a former senior
official at Japan's finance ministry said.

 

What does it mean for consumers and businesses?

The weak yen makes everything Japan buys more expensive.

 

The country relies heavily on imported oil and gas. Because of exchange
rates and rising energy prices, the amount of money it spent on imports last
month jumped by 46%.

 

But it is not all bad news for businesses. The money made abroad by Japanese
exporters is worth a lot more back home. As exports account for about 15% of
the country's total economic activity, that is not insignificant.

 

However, Japan's consumers have seen their purchasing power halved over the
last decade. Ten years ago, 10,000 yen would buy an item worth $132, but
today it only gets you something worth $67.

 

That is a major problem because average salaries in Japan have hardly risen
in over three decades.

 

The issue is even more acute when people need to use the yen to pay for
things overseas, for example when they travel or their children study
abroad.

 

Is this good news for tourists?

When the yen started to fall in value Japan's borders were still shut so
people did not feel much of an effect.

 

However, now that Japan has started to allow visitors in the currency's
sliding value makes the country more attractive to tourists, as their
holiday money goes further.

 

In 2019, Japan welcomed 32 million foreign visitors, who spent about 5
trillion yen ($33.6bn; £29.7bn).

 

While tourist numbers are still a long way from that level, investment bank
Goldman Sachs has predicted inbound spending could reach 6.6tn yen within a
year of the country fully reopening.-BBC

 

 

 

 

Nigeria Taps South Korea's Daewoo to Fix Kaduna Refinery

The Federal Executive Council last year approved the award of the contract
for the rehabilitation of Warri and Kaduna Refineries at the combined total
sum of $1.5 billion.

 

The Nigerian National Petroleum Company Limited has signed an agreement with
Daewoo Group of South Korea for the rehabilitation of the Kaduna Refinery,
the government said Thursday.

 

A spokesperson for President Muhammadu Buhari said in a statement that the
agreement was signed on the sidelines of the 2022 World Bio Summit on
Thursday in Seoul, South Korea. Mr Buhari is attending the summit.

 

The 110,000 bpd-capacity Kaduna Refinery is one of Nigeria's four
dysfunctional refineries that have produced no fuel for years leaving the
country to rely on imported products. It recorded a N22.9 billion loss in
2021.

 

The biggest state-run refinery, which is Port Harcourt, is currently
undergoing repairs handled by Tecnimont of Italy. The government says it
expects the plant to start production by December, although a PREMIUM TIMES
review showed that is unlikely.

 

 

The Federal Executive Council in August last year approved the award of the
contract for the rehabilitation of Warri and Kaduna Refineries at the
combined total sum of $1.5 billion.

 

Mr Adesina said Daewoo is also repairing the Warri plant which will at the
first instance deliver fuel before the first half of 2023.

 

At the signing of the agreement, Mr Buhari was quoted as saying "Daewoo
Group has massive investments in the automobile, maritime and other sectors
of our economy."

 

"I am also aware that Daewoo is currently engaged in the execution of the
NLNG train seven project and also constructing sea-going LPG vessels for
NNPC and her partners," he was quoted as saying.

 

Mr Buhari said he looked "forward to the delivery of ongoing projects,
especially at the Warri and Kaduna refineries, and the NLNG Train Seven."

 

"This no doubt will open many more windows of opportunities for Daewoo and
other Korean companies in Nigeria."

 

-Premium Times.

 

 

 

 

Africa: Namibia Could Become Africa's Energy Capital

NAMIBIA Investment Promotion and Development Board (NIPDB) chief executive
officer Nangula Uaandja said Namibia's ambition is to become the energy
capital of Africa.

 

Uaandja said this last week when she spoke at the Invest in Namibia Country
Spotlight session organised by the mines ministry, NIPDB and Namcor at
African Energy Week 2022 in Cape Town.

 

Uaandja said when talking about the energy transition, there is room for
fossil fuels and meeting net zero emissions that are not mutually exclusive.

 

"We are committed to the needs of the environment, while at the same time
meeting the needs of our people," she said.

 

Hyphen Hydrogen Energy Namibia business case development manager Jonathan
Metcalfe said when it comes to cost-effective green hydrogen in Namibia, the
curve is much steeper than in the gas sector.

 

"As a result, we need to focus on the quality of the resource and
bankability of the project. This project combines a high-quality resource in
a very stable country with high investability. Namibia is one of the world's
lowest-cost producers. This means a much lower resource deployment than
normal hydrogen or energy developments," Metcalfe said.

 

 

A joint venture of Nicholas Holdings and Enertrag South Africa, Hyphen
Hydrogen Energy won a 40-year bid to develop Namibia's US$9,4 billion
hydrogen project in the Tsau //Khaeb National Park to produce 300 000 tonnes
of hydrogen per year.

 

Petroleum commissioner in the mines ministry Maggy Shino said the new oil
discoveries are just the beginning of an era regarding the potential for
hydrocarbons in Namibia.

 

Shino was referring to the discoveries made by TotalEnergies in Block 2913B,
which covers about 8 215km2 in Namibia's deep offshore, and the one made by
Shell and Qatar Energy early this year on Petroleum Exploration Licence
0039, that covers approximately 12 000km2 in deep water offshore Namibia.

 

 

Research firm Wood Mackenzie estimates the oil discoveries to be about 6,5
billion barrels.

 

Shino said the geology of Namibia has been tricky, and that Namibia's first
well was a hit with Kudu gas, but the wells that followed were not a
success.

 

"We have an environment with volcanics, which sent our investors on a wild
goose chase. Now, we have managed to resolve that puzzle and open up that
play. Our strategy is to drive exploration so that we can replicate the
success we have in the Orange Basin," she said.

 

Pinehas Mutota, the general manager for economic regulation at the
Electricity Control Board, and NamPower managing director Simeon Haulofu
assured investors that Namibia has vast resources to generate enough
electricity.

 

Mutota said Namibia was seeing the market opening up in the electricity
sector.

 

 

"The market has been liberalised so that independent producers can sell
their electricity directly to larger producers. Namibia also allows for
export. We have vast energy resources, and the electricity we generate
cannot only be absorbed in Namibia. South Africa, for example, has a deficit
of 15 GW," Mutota said.

 

Haulofi said a lot of intermittent power is expected to flow into the
national grid.

 

"NamPower has not been idle. We are expanding and strengthening our grid,
and if you travel to Namibia, you will see the rollout of huge transmission
infrastructure on the ground. Discoveries of oil and gas only add to our
excitement to be able to generate electricity and keep supply sufficient,"
he said.

 

Lawyer Shakwa Nyambe, the managing partner at SNC Incorporated, said as much
as Namibia wants to fast-track the appraisal of development, fast-tracking
local content mechanisms and policy should not be forgotten.

 

"We need to do a market analysis and understand what skills we do and do not
have and what kind of services to bring to the Namibian workforce. We must
have a strong implementation of strategy, monitoring and evaluation. This
will make the industry inclusive," Nyambe said.

 

Eric Williams, the principal consultant with Royal Triangle Energy
Solutions, said local content has two parts: forward and backward linkages.

 

"The backward linkage is jobs and services in the local economy. Forward
linkage has to do with beneficiation - the added value to the raw material
farmed in your country. The difference between high- and low-income
countries is that the highest contributor to GDP in low-income countries is
agriculture, while in high-income countries, it's services," Williams said.

 

-Namibian.

 

 

 

Kenya: Safaricom Rolls Out Commercial 5G Networks in 5 Counties

Nairobi — Safaricom has rolled out 5G networks in five counties, enabling
customers to access faster internet speeds.

 

The telco has unveiled the networks in Nairobi, Mombasa, Kisii, Kakamega,
and Kisumu.

 

Faster than 4G network, clients will be able to download, stream videos as
well as play video at neck break speeds.

 

"We believe in the transformative power of the internet and will continue to
deliver the most advanced technologies towards enabling our customers enjoy
a digital lifestyle,"

 

"The launch of 5G Wi-Fi is the first step in empowering our retail and
enterprise customers to start exploring new opportunities that 5G provides,"
Safaricom Chief Executive Officer Peter Ndegwa added.

 

The introductory 5G Wi-Fi plans include: 10Mbps with a usage limit of 300GB
at Sh3,499, 40Mbps with a usage limit of 500GB at Sh5,999, and 100Mbps with
a usage limit of 1TB at Sh14,999.

 

 

Customers using supported 5G smartphones will also be able to access the 5G
network and enjoy superfast 5G speeds.

 

Supported smartphones include 5G-enabled devices from the Samsung Galaxy S
and Fold series, as well as Huawei and Oppo 5G devices.

 

However, adoption of 5G faces hurdles due to the high cost of 5G enabled
handsets as well as data. For instance, 5G handsets goes for about Sh40,000
and above,

 

Ndegwa said that only 1 in three people access 4G handheld devices,
highlighting challenge with 5G uptake.

 

Currently, Safaricom has 35 active 5G sites spread across Nairobi, Kisumu,
Kisii, Kakamega and Mombasa, and it plans to expand to 200 sites across the
country by March 2023.

 

Plans are also underway to provide 5G data packages for mobile internet
customers and leverage the Lipa Mdogo Mdogo device-financing solution to
avail more affordable 5G smartphones.

 

-Capital FM.

 

 

 

Tanzania Moves to End Sugar Shortage

Dodoma, Tanzania — Tanzanian authorities on Tuesday announced measures they
were taking to end the shortage of sugar in the East African nation.

 

Kenneth Bengesi, the director general of state-run Sugar Board of Tanzania
(SBT), said the measures included the expansion of sugar factories,
mobilization of farmers to grow sugarcane and attracting investors in the
sugar industry.

 

"These measures aim at increasing sugar production from the current 380,000
tons annually to 756,000 tons annually by 2025," Bengesi told a news
conference in the capital Dodoma.

 

He said current sugar demand in Tanzania stood at 440,000 tons annually,
adding that there was a shortage of 60,000 tons annually.

 

Bengesi said the target of producing 756,000 tons of sugar by 2025 will
satisfy local demand and the surplus will be exported abroad.

 

He said SBT was currently overseeing the expansion of sugar factories in the
country, adding that the newly launched sugar factory in Bagamoyo district
in Coast region will also help boost production.

 

Bengesi said plans were also underway to establish factories for producing
industrial sugar which is currently being imported from overseas.

 

"Currently 205,000 tons of industrial sugar are imported annually at 150
million U.S. dollars," he said.

 

-Independent (Kampala).

 

 

 

South Africa: No Fuel Supply Shortage - DMRE

The Department of Mineral Resources and Energy (DMRE) says the supply chain
of petroleum products to South Africa is "resilient as ever".

 

This follows comments made by the Liquid Fuel Wholesale Association that the
country is facing possible liquid fuel supply shortages.

 

"The DMRE would like to assure South Africans that there is no imminent
shortage of liquid fuels in the country, and predictions made by the Liquid
Fuel Wholesalers Association (LFWA) are very unfortunate.

 

"The supply chain of the petroleum sector in South Africa is resilient even
as the disruptive geopolitical war in Eastern Europe rages on. The
department engages the industry on a weekly basis on supply issues and will
seek clarity from the LFWA on its comments," the department said.

 

The DMRE explained that government has invested in fuel import for years
which contributes to fuel supply security.

 

"Over a number of years, the government deliberately enabled investment in
fuel import terminals when the reliability of existing petroleum refineries
was in question. These import terminals provided the backup to existing
refineries and this has proven to have been a correct strategy as refineries
close. The import terminals throughout the country's ports are able to
ensure security of fuel supply.

 

"In addition, major investments have been made by both Mozambique and
Namibia which further strengthen the region's fuel supply position," the
department said.

 

-SAnews.gov.za.

 

 

 

South Africa: Load Shedding to Continue Through the Weekend

Eskom says it will be implementing various stages of load shedding
throughout the weekend following the near depletion of its emergency
generation reserves.

 

By Thursday morning, Eskom said it had at least 16 585MW of capacity offline
due to breakdowns with a further 5 683MW offline due to maintenance.

 

"Stage 3 load shedding is currently underway until 4pm on Thursday.
Thereafter, it will increase to Stage 4 until 5am on Friday morning. Load
shedding will be lowered to Stage 2 at 5am to 4pm on Friday. It is
anticipated Stages 2 and 1 load shedding will be implemented during the
weekend.

 

"Load shedding is implemented only as a last resort in view of the shortage
of generation capacity and the need to attend to breakdowns," an Eskom
statement read.

 

The power utility said despite bringing some generation units back online,
it is still facing generation capacity challenges necessitating the
continuation of the power cuts.

 

"The emergency generation reserves are almost depleted, both the diesel and
pumped storage dam levels. These, together with persistent high levels of
breakdowns of generating units, are among the major contributors to the
continuing generation capacity shortages.

 

"Since Tuesday evening Eskom teams have returned a generating unit each at
Duvha, Kendal and Medupi power stations to service," Eskom said.

 

-SAnews.gov.za.

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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

 


 

 

 

 

 

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