Major International Business Headlines Brief::: 26 April 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 26 April 2023 

 


 

 


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

 


 

 


 

ü  South Africa: Will the Minister With Real Powers to Fix Eskom Please
Stand Up?

ü  Seychelles: Egg Production in Seychelles Increasing but Weather and
Demand Are Affecting Prices

ü  Nigeria: Russia-Ukraine War - Report Identifies Risks in Expansion of
Nigeria's Gas Production

ü  South Africa: Fixing Cape Town's Railways Will Save Families Nearly
R1-Billion a Year

ü  Tanzania Prepares New List of Tax-Free Goods

ü  South Africa: Eskom Stepping Up Initiative to Curb Peak Electricy Demand

ü  Africa: 'Investing in Africa Is Profitable'

ü  Ethiopia: Change Is Coming to Ethiopian Banking

ü  Kenya: National Govt Mulls Stopping Guarantor Role to Counties Borrowing
Funds

ü  Kenya: Migori Begins Registration Process to Identify, Categorize Farmers

ü  Nigerians Abroad Remitted $168bn in Eight Years - World Bank Report

ü  Tanzania: Dse Stocks Close Higher As Investors Assess Earnings

ü  Nigeria Has 222.5 Million Telephone Subscribers - NBS

ü  Kenya: Ministry of Water to Construct Sh408.6 Million Irrigation Scheme
in Ugenya

ü  British American Tobacco to pay $635m for North Korea sanctions breaches

ü  UK car parts giant Unipart may shift investment to US

ü  Bank of England economist says people need to accept they are poorer

ü  Amazon UK could be forced to recognise first union

 


 

 


 

 

 

 <mailto:innovatorsforum at zitf.co.zw> 

 

South Africa: Will the Minister With Real Powers to Fix Eskom Please Stand
Up?

Cape Town — In March 2023, President Cyril Ramaphosa appointed Kgosientshoa
Ramokgopa as minister of electricity to help address growing power cuts
(load shedding) across the country.

 

Power utility Eskom has been the centre of South Africa's energy woes for
more than a decade. The entity has been plagued by mismanagment, the
breakdown of infrastructure at power stations, sabotage and corruption. The
country's erratic electricity supply has impacted businesses, with some
saying it has led to wide-scale job losses. Power cuts are expected to
become more frequent during winter.

 

Ramokgopha does not have any ministerial powers yet, thus making his role
and function within the Cabinet unclear. There also appears to be friction
between the minister, Public Enterprises Minister Pravin Gordhan and Energy
and Minerals Minister Gwede Mantashe.

 

 

Despite President Cyril Ramaphosa dismissing allegations of a "territorial
war" between the ministers, Eyewitness News reports that Ramokgopa is
awaiting the president's assistance in clearing the impasse between himself
and Ramaphosa's two powerful allies. Gordhan is concerned that Ramokgopha
wants to keep coal-fired power stations online. Mail&Guardian reports that
Mantashe and Gordhan said he should take this proposal to the National
Energy Crisis Committee (Necom).

 

President Ramaphosa told the media that the electricity minister's mandate
and task is to "focus on the generation of the energy that we need so that
we reduce and eliminate load shedding".

 

Ramaphosa's statement came hours after Ramokgopa tabled his plan to ease
load shedding, during the ANC's national executive committee meeting held in
Boksburg.

 

According to TimesLive, Ramokgopa's plan includes a proposal to extend the
life of several coal-fired power stations. He also amended his plan to
eradicate load shedding by the festive season, saying: 'it is also not
technically possible to end load shedding by the end of the calendar year
2023, and that's why we are at pains to illustrate the kind of steps we are
taking."

 

Extending the use of an ageing, costly fleet of coal-fired power stations
goes against the policy signed by the president, aimed at replacing them
with cheaper renewable energy infrastructure. Finding sustainable forms of
energy has been met with resistance - even at the highest level of
government - when discussions around coal and its unsustainability as a
resource was discussed by environmental groups.

 

Eskom, where the CEO office seems to have a revolving door, is ready to
announce five new candidates for the position after the hasty departure of
Andre de Ruyter, after an explosive eNCA interview in which he exposed
massive corruption, even at the upper echelons of government.

 

News24  reports that the Eskom board chairperson Mpho Makwana confirmed that
the power utility has narrowed down its search for a new CEO.

 

Eskom's Chief Operating Officer Jan Oberholzer will also be leaving the
utility after 30 years of service, when he retires this month.

 

 

 

Seychelles: Egg Production in Seychelles Increasing but Weather and Demand
Are Affecting Prices

The production of eggs in Seychelles has been steadily increasing during the
last 10 years but there are special conditions during the period of March to
May, highly marked in April, that heavily affect egg production, especially
this year.

 

An agricultural officer in Seychelles, Jose Raul de Oca Brito, told SNA that
there are many factors interacting together and leading to these results.

 

"The increasing demand for the product is the main reason; this is directly
associated with the fact that egg production has not to compete with any
importation."

 

 

He explained that "this has motivated more farmers to venture into the
business while others have increased the production capacity. We ended 2022
with 37 registered egg producers and the commercial laying hens population
is estimated as 184,763 birds in April with a daily average production of
2.4 million eggs."

 

Brito said that the second element which is considered paramount is that
during the last years, new commercial laying hens have been introduced in
the country, by importation, with a much better potential for production and
performing very well under Seychelles conditions.

 

Although the importation of highly commercial laying hens has guaranteed a
stable egg production in the country, it comes paired with some constraints,
among them being the transportation challenge.

 

"A good poultry herd position is only achieved when replacements are evenly
distributed throughout the year, and this is not happening. This said we
agreed that a distortion on the replacement cycle affects production and
then price," said Brito.

 

On the shortage of eggs on the market, he said that this happens during the
period March to May and is related to the weather condition.

 

"April is a very tranquil month as the winds drop and during the afternoon
temperatures get very hot, reaching an average high of 31-32 degrees. This
limits feed intake in chickens in a way for them to balance body
temperature; leading by default to a drop in production. This causes
production to drop 10-15 percent in farms with standard management for open
house systems."

 

Consequently, farmers will always give priority to clients under contract
like hotels, and companies like the Indian Ocean Tuna where demand is very
high.

 

This can result in an increase in the price of eggs on the local market as
has been the case for the past few weeks from SCR2.50 ($0.19) per egg to
around SCR4.00 ($0.30) at the shopping outlets.

 

"When there is a drop in production, the local market (retailers) is more
demanding and the price is increased. The price for eggs is not in relation
to the cost of production since the subsidy scheme in place guarantees a
very good profit margin for egg producers," Brito told SNA.

 

Seychelles News Agency.

 

 

 

 

Nigeria: Russia-Ukraine War - Report Identifies Risks in Expansion of
Nigeria's Gas Production

The report, titled: "Gas Expansion and the Energy Transition in Nigeria and
the Niger Delta," said the country's weak enforcement of standards and
regulations has enabled oil and gas companies to "continue to operate
without due care."

 

As the demand for African gas increases in Europe, new research conducted by
an international non-governmental organisation - Stakeholder Democracy
Network (SDN) - has identified possible socio-economic challenges Nigeria
may face in its plans to expand gas production.

 

Following the ongoing war between Russia and Ukraine, and the resulting
energy crisis in Europe and the UK due to disrupted gas supplies from
Russia, African gas resources have been touted as perfect replacements for
the troubled countries.

 

Nigeria, with Africa's largest gas reserve, and second-largest exporter in
2021, is expected to be a major source of the needed gas.

 

But after extensive research into the oil and gas sector in Nigeria's
oil-producing Niger Delta region, the SDN urged the Nigerian government to
tread with caution in its expansion plans, "to avoid redirecting resources
away from more sustainable infrastructure, delaying the clean energy
transition, and deepening dependence on fossil fuels, which could result in
stranded assets and debt that will be difficult to repay as demand and
prices fluctuate."

 

 

A statement issued by SDN and the full report, copies of which were
exclusively obtained by PREMIUM TIMES ahead of their public presentation
Tuesday (today) criticise what the organisation describes as "the current
system of weak enforcement of standards and regulations in the oil and gas
sector."

 

The report, titled: "Gas Expansion and the Energy Transition in Nigeria and
the Niger Delta," said the country's weak enforcement of standards and
regulations has enabled oil and gas companies to "continue to operate
without due care."

 

 

As an example of the implication of weak enforcement of standards and
regulations, the report identifies poor operation at the Obiafu-Obrikom Gas
Plant in Rivers State which is run by Nigeria Agip Oil Company, a subsidiary
of the Italian oil major, Eni.

 

The report said its findings around the facilities include "visible gas
leaks along pipelines that are generally poorly installed, not sufficiently
maintained, run overground, and alongside roads and settlements."

 

"When we re-visited gas leak sites six months later, leaks continued, in
spite of visible attempts to patch them up. There was also an explosion at
the gas facility during research, which is reportedly common," it added.

 

SDN also said it noted slow responses to gas leaks and blowouts by the oil
company and the government regulators, "and poor techniques to stop leaking
infrastructure and mitigate future issues."

 

 

The group added that its researchers observed: "Constant gas flaring, which
contributes towards toxic air, water, and land. The community also claims
that NAOC dumps toxic waste and has not decommissioned abandoned assets.

 

"Visibly polluted waterways, farmland, and air, which make it no longer
economically productive for stable livelihoods of farming, fishing, and
hunting."

 

It said residents of the community complained that they suffer severe health
impacts, "including cancers, eye, bronchial, rheumatic, neurological,
cardiovascular, developmental, and reproductive disorders."

 

NAOC denies allegation

 

However, NAOC has denied the allegations but said it would not comment
officially until the report is released.

 

An official of the oil giant, who asked not to be named, told PREMIUM TIMES
that the identified leaking pipelines could belong to other gas companies.

 

The source said other companies including the Nigeria Liquified Natural Gas
Limited also have pipelines dedicated to them within the same neighbourhood.

 

"So we would like to await the full research presentation so that we have a
full knowledge of what it is talking about," the official said.

 

Meanwhile, SDN said it reached out to NAOC in the course of its research
work and that the company's General Manager for the District, identified as
Geordano Crema, replied to its communication on its findings and that the
allegations were denied.

 

SDN said in one of its responses, NAOC claimed that "any leak is reported to
regulators for joint inspection involving the regulator, the company and
representatives of [the] concerned community," adding that "from 2018 till
now over 95 per cent of spills/gas leaks in flow lines in the area have been
due to sabotage".

 

Reasons for research

 

Headquartered in the United Kingdom, SDN, with 19 years of operation in
Nigeria's Niger Delta region, said it was bordered by the country's domestic
gas use expansion plans and the rising interest in its gas products in
Europe and the UK. It said it was necessary to find out the nation's
capacity to accommodate the demands.

 

According to the report, as of 2021, "Nigeria was the fourth-largest source
of liquified natural gas to the EU and United Kingdom (14 per cent of total
supplies); with at least 40 per cent of Liquified Natural Gas (LNG) produced
in Nigeria currently exported to Europe, and discussions ongoing to increase
investments and exports."

 

Nigeria's LNG Limited is said to be planning an expansion with the
construction of Train 7 that is expected to boost total national production
by about 35 per cent while $3 billion of debt has been raised to fund the
work.

 

"While estimated completion is not until 2026, it is the first additional
train since 2007, and feasibility studies for Train 8 are underway. Other
processing facilities include the $700 million plant under construction by
Seplat and Nigeria Gas Company joint venture, which is expected to come
online in 2023. Another notable project is the proposed $20 billion Brass
LNG plant, which is awaiting a final investment decision, and is projected
to add an additional 30 per cent capacity on top of NLNG Train 7," the
report noted.

 

SDN said it found it necessary to research the current state of activities
in the region and the nation's capacity to contain the possible consequences
of the planned expansion.

 

Further findings

 

According to SDN, "partial increases to Nigeria's gas capacity are expected
over the next few years. But the further expansion will require billions of
dollars of investment, and could take decades to come online, by which point
global demand will be in decline, as it is predicted to peak by 2040, and
possibly earlier."

 

The report, however, noted that the expansion, if carried out with caution,
could still benefit Nigeria, "as it is seeking to increase domestic gas
consumption as part of development targets and as a transition fuel."

 

"But it (Nigeria) risks redirecting resources away from more sustainable
infrastructure, delaying the clean energy transition, and deepening
dependence on fossil fuels, which could result in stranded assets and debt
that will be difficult to repay as demand and prices fluctuate," it added.

 

Recommendations

 

As part of its recommendations, SDN advises Nigeria to proceed with caution
"in the scramble for gas, conducts a thorough risk assessment of gas
expansion, and updates long-term energy transition strategies to minimise
the impacts, phase out oil and gas assets, and start investing for a
post-oil and gas future."

 

It also advises that European countries investing in increased gas
production and/or exports from Nigeria "also invest into renewable energy
access in Nigeria, especially in communities that host oil and gas
facilities."

 

"The Federal Government of Nigeria should improve the enforcement of
regulations for construction, operation, maintenance, decommissioning,
emergency response, and divestment of facilities, and host community
development; and should commission a study into the impacts of gas
production on host communities, design interventions to reduce and remediate
these impacts, and hold poorly performing companies accountable," it
advised.

 

SDN speaks

 

Commenting on the report, SDN's Acting Country Director, Florence
Ibok-Abasi, said the health and environmental impacts associated with fossil
fuel production had been documented for several decades but that they have
been largely ignored in favour of profits by concerned stakeholders.

 

"We are particularly concerned that an increase in demand for Nigeria's gas
resources will aggravate this situation and continue to deprive the country
of a clean energy transition. The Nigerian government can no longer afford
to pay lip service and must act to demonstrate its commitment to the
provision of clean energy and economic diversification away from oil and
gas," said Ms Ibok-Abasi.

 

Premium Times.

 

 

 

South Africa: Fixing Cape Town's Railways Will Save Families Nearly
R1-Billion a Year

We cannot wait any longer to save the city's train service

 

An efficient rail service will save lower-income households up to
R932-million a year, according to preliminary findings of the City of Cape
Town's rail feasibility study. We cannot wait any longer to fix the city's
railway service.

 

GroundUp has reported that the Standing Committee on Public Accounts (SCOPA)
conducted an oversight visit to assess the extent of the devastated
infrastructure along Cape Town's central rail line. Until recently this was
the city's busiest route, connecting some of our poorest communities with
centres of social, educational and economic opportunity.

 

 

Under the new leadership of the Passenger Rail Agency of South Africa's
(PRASA) efforts are being made to halt the theft and vandalism and repair
the maintenance backlogs which have left numerous stations completely
gutted. But SCOPA's chairperson, Mkhuleko Hlengwa, made some damning remarks
about PRASA's management decisions.

 

Describing PRASA's decision some years ago to cancel a security contract as
"reckless, irresponsible," and inconsistent with proper financial
management, Hlengwa also reportedly emphasized that the collapsed service
needs to be restored. He said SCOPA would now "assess whether that
correction is done with the necessary speed, urgency, and within budget."

 

Hlengwa said that "at the heart of a functional economy is a functional
railway", and this could not be more true. The City of Cape Town recognises
that a collapsed passenger rail service is a social and economic disaster
that hits our poorest and most vulnerable communities hardest.

 

 

We absolutely cannot wait any longer for rail to once again become the
backbone of our public transport system. It is the only mass people mover
used in any developed or developing city in the world, and remains the
cheapest mode of travel. As the cost of living continues to skyrocket,
transport costs, especially for lower income households, represent a
considerable and disproportionate percentage of daily expenditure.

 

The City's feasibility study will assess the costs and requirements of
operating an efficient, safe, reliable, affordable passenger rail service in
Cape Town, in line with the White Paper on National Rail Policy which allows
the transfer of rail functions to municipalities that have the necessary
resources and capacity.

 

Our preliminary findings show that an efficient passenger rail service will
save lower-income households in Cape Town up to R930-million per year;
sustain over 51,000 direct and indirect jobs; and contribute significantly
to Cape Town's economic growth, with an R11-billion benefit to the local
economy each year.

 

 

According to the analysis, a fully restored and functional passenger rail
service will save Cape Town and its residents R82 billion over a 20-year
period:

 

The biggest saving is in vehicle operating costs, including fuel and
maintenance costs: R31 billion over a 20-year period;

The second biggest is congestion time cost savings: more than R30 billion
over a 20-year period;

The third biggest is casualty costs savings, related to death and injuries
caused by vehicle accidents and crashes: R11 billion over 20 years. The risk
of an accident is far higher for road-based transport than for a train trip;
and

The fourth biggest is vehicle crash cost savings related to repairs and
incidents: nearly R9 billion over 20 years.

We are committed to doing everything possible to see Cape Town's service
restored to its full operational capacity. Collaboration and cooperation, in
good faith, between the City and PRASA, along with other spheres of
government, is critical. Our call for cooperative governance is driven
primarily by the interests of vulnerable communities.

 

The City of Cape Town is making progress with the rail feasibility study,
and although this research is focused on our functional area, we believe
that the work will be helpful to other competent municipalities in the
country. The work we are doing will complement the Rail Devolution Strategy
led by the National Department of Transport. The City has crafted a
status-quo assessment that we believe is replicable anywhere in South
Africa, and we are more than happy to share findings and recommendations
with other government entities who are willing and able to take
responsibility for operating the rail service within their area.

 

The City of Cape Town has chosen to drive the Rail Devolution agenda and to
reap the benefits for residents.

 

Hlengwa reportedly went on to say that "there will of course need to be
bailouts and subsidies" for PRASA to continue to fix its considerable
problems. It is vital that we understand what subsidies and bailouts will be
allocated. Any such funding must take into account the protection of
infrastructure and the need for repairs and maintenance. It would also be
important to know what subsidies will be available to support effective
public-private partnerships, for the benefit of our communities.

 

PRASA's decision to cancel its security contract left the door open to the
establishment of the hundreds of informal houses on train tracks during
lockdown.

 

Newly appointed Group CEO, Hishaam Emeran, has inherited an unenviable set
of challenges. However, there simply isn't time to dwell on previous
failures or point fingers. We need to remain focused on removing the
obstacles to transferring operation of the service to the City of Cape Town,
and indeed other municipalities with the capacity to do so. We need to keep
looking ahead, working together to achieve the shared goal of providing
residents with a safe, reliable, and affordable passenger rail service.

 

GroundUp.

 

 

 

Tanzania Prepares New List of Tax-Free Goods

The government is currently listing and verifying products and equipment
eligible for tax exemptions.

 

The lawmakers have been informed in Dodoma on Tuesday that the aim of the
exercise is to ensure that citizens are benefiting from the exemptions.

 

This was said by the Deputy Minister for Finance and Planning, Hamad Chande
in the Parliament when he was reacting to Kibamba MP Issa Mtemvu who sought
to know the government's strategies in place to ensure that VAT exemptions
serve intended purposes.

 

In his response, the Deputy Minister said the Ministry is closely working
with the Tanzania Revenue Authorities (TRA) preparing the list accordance to
laws of the land.

 

"We also conduct periodic audits on exemptions granted to verify if the
products or equipment granted tax exemptions are being used accordingly," he
added.

 

Daily News.

 

 

 

South Africa: Eskom Stepping Up Initiative to Curb Peak Electricy Demand

Eskom says it will be ramping up its demand side management (DSM)
initiatives in order to better manage the supply and demand of electricity
in South Africa.

 

The power utility held its first national Demand Side Management Indaba in
Gauteng on Monday.

 

During the Indaba, the power utility's board chairperson, Mpho Makwana, said
the DSM initiatives assist the power utility to reduce pressure on the
system during peak hour as well as give consumers the opportunity to save on
electricity bills.

 

"The effective implementation of the DSM programmes could create a win-win
situation - reducing pressure on the power system and enabling consumers to
realise cost savings by being more energy conscious and reducing their
consumption without affecting business productivity or quality of life," he
said.

 

 

The power utility has embarked on several initiatives such as energy saving
through promoting the use of compact fluorescent lights, energy efficiency,
demand response, distributed generation and energy storage.

 

Makwana highlighted that demand side initiatives have been implemented all
over the world and produced results.

 

"DSM is not a South African concept. It is global phenomenon with the
best-in-class countries already using technology to manage demand. The array
of policy measures to incentivise demand-side participation, promote energy
conservation and reduce peak demand can be replicated in our country,"
Makwana said.

 

He called on all South Africans and those doing business in South Africa to
implement power saving initiatives in order to assist the power utility to
reduce the strain on the power grid.

 

"DSM programmes can be more effective through a collaborative approach. I'd
like to acknowledge and thank our large customers who are participating in
the Eskom's DSM initiatives. We'd like to encourage and invite all
stakeholders from businesses, industries to residential customers to come on
board. I also thank South Africans for heeding the call to use electricity
sparingly and efficiently to help alleviate the pressure on the power
system.

 

"Eskom is grateful to the National Energy Crisis Committee (NECOM) for
coordinating the National Demand Side Management Indaba. It is through
initiatives such as these that we can partner and strive for a sustainable
future," Makwana said.

 

SAnews.gov.za.

 

 

 

Africa: 'Investing in Africa Is Profitable'

The president of the African Development Bank Group, Akinwumi Adesina, has
called for a significant increase in Japanese investment in Africa, saying
the continent is the world's best investment destination now and in the
future.

 

Adesina is leading a bank delegation on a five-day visit to Japan during
which he will meet senior government officials, large Japanese companies,
development partners and members of the African diplomatic corps in the
country.

 

Delivering a lecture at the Japan-Africa Investment Ecosystem Co-Creation
Forum in the capital, Tokyo, Adesina said Africa offers enormous investment
opportunities and gave examples of Japanese companies that have been running
profitable businesses on the continent for many years.

 

The forum was organised by Keizai Doyukai, a private, non-profit and
nonpartisan organisation that brings together nearly 1 400 top executives of
some 1 000 corporations.

 

Adesina pointed out that Japan's foreign direct investment in Africa
declined from US$10 billion in 2016 to just US$4,7 billion in 2020 during
Covid-19 but recovered to US$6 billion in 2021.

 

Africa accounts for only 0,003% of Japan's US$2 trillion global foreign
direct investments.

 

In terms of trade, the volume of exports and imports between Africa and
Japan remains lower than 2%. Adesina said there was every reason to change
the trend.

 

He mentioned the state-owned Japan Bank for International Cooperation
(JBIC), which, together with Total and other investors, including the
African Development Bank, co-financed the US$24 billion Liquified Natural
Gas project in Mozambique - which will make it the third largest in the
world. Japan will buy 30% of its production.

 

JBIC and Mizuho Bank, along with the African Development Bank and nine other
financial institutions, invested US$2,7 billion to build the Nacala corridor
railway and port in Mozambique.

 

Adesina cited Japanese multinationals such as Toyota Tsusho, Mitsubishi
Corporation, Hitachi and Komatsu, whose businesses make billions of dollars
in profit every year.

 

"These companies will tell you investing in Africa pays!" said Adesina,
"there is now a greater pulse and excitement for more Japanese investments
in Africa."

 

The Africa Development Bank chief said the successes of large Japanese
companies operating in Africa are spurring a new generation of young
Japanese to turn their eyes to venture capital and private equity funds to
support small- and medium-sized enterprises.

 

Speaking during the forum, the vice chairperson of the Africa Project Team
at Keizai Doyukai, Ken Shibusawa, said a new company, &Capital Inc, was
formed early this year to promote Japanese investments in Africa.

 

While the number of Japanese companies in Africa increased from 520 in 2010
to 900 in 2020, Adesina called for more venture capital and private equity
funds to tap into the continent's huge potential.

 

He thanked the Japanese government for recognising Africa's strategic
importance and showing a strong political will to invest in Africa.

 

Japan's prime minister Fumio Kishida announced during the TICAD 8 Summit in
Tunis last year US$30 billion for Africa, including support for start-ups in
Africa, green growth, and training of 300 000 professionals from Africa.

 

Adesina spelled out areas in Africa with enormous investment opportunities
for Japanese investors.

 

"With appropriate skills, they will form the labour force for global
industries as many countries face a rapidly ageing population," said
Adesina.

 

The recent establishment of the African Continental Free Trade Area makes
Africa the largest free-trade zone in the world in terms of participating
countries.

 

Manufacturing opportunities alone would reach US$1 trillion in 2025. And
Africa's consumer spending will reach US$6,7 trillion by 2030.

 

In addition, Africa has the world's largest renewable energy sources,
including solar, wind, hydropower, and geothermal.

 

The continent also holds the key for the world as it transitions towards
electric vehicles with its abundant deposits of minerals and metals such as
platinum, lithium, cobalt, copper and graphite.

 

"The manufacturing of lithium-ion batteries is most competitive in Africa.
For example, setting up a lithium-ion battery precursor in the Democratic
Republic of the Congo would be three times less expensive than in China or
the US."

 

Africa holds 65% of the remaining uncultivated arable land in the world.
What Africa does with its agriculture will determine the future of food in
the world. And the size of Africa's food and agriculture market will rise to
US$1 trillion by 2030.

 

Other areas of enormous potential include the financial technology (fintech)
sector; internet economy; healthcare; tourism; real estate and automobile
markets.

 

For that reason, Adesina said the Japanese private sector and businesses
should invest a lot more in the continent.

 

"Your investment is safe in Africa," Adesina reassured investors, adding
that Africa is also not as risky to investments as many perceive. - AfDB
News

 

Namibian.

 

 

 

Ethiopia: Change Is Coming to Ethiopian Banking

Addis Ababa — In early April, when KCB Group announced they are undergoing
talks to acquire stakes in Ethiopian lenders, it was easy to sense a feeling
of déjà-vu. The second largest bank in Kenya already made plans to expand to
Ethiopia back in 2018 but was forced to put them on hold in 2020 due to the
situation in the country. Now, KCB is coming back to the plan with renewed
vigor and finds itself in a completely different environment than before.
What a difference three years make!

 

Most of the people living today in Ethiopia never had the chance to bank
with foreign financial institutions due to the rigid regulations in the
country that were put in place since 1974. It was almost 50 years ago when
the East African country last allowed foreign financial institutions to
operate within its borders. That is about to change as the government's
recent efforts to liberalize the banking market in the country are coming
into effect.

 

 

After years of delays, Ethiopia's road to banking liberalization began in
earnest in 2020 and has been fraught with obstacles, with the Covid pandemic
and the Tigray civil war upending the country's financial scene. But with
Covid receding and a peace agreement being signed late last year, Ethiopia
can contemplate returning to normal operations within the country and
banking reform should be a priority. With good execution, increased banking
competition could help energize the Ethiopian financial sector and help with
the country's much-needed recovery. Indeed, the re-opening of some banks in
the war-hit Tigray region back in December was hailed as an important
indicator of the peace agreement holding up.

 

 

Banking liberalization was put off for a long time by Ethiopian authorities
out of concern for the effects it might have on domestic financial
institutions. The apprehension was rooted in the idea that Ethiopian banks
will find it difficult to compete with large international banks who are
more accustomed to operating in competitive environments. But as it happened
in so many other places, market liberalization and increased competition
tend to create an effervescent business environment in which both local and
foreign companies can flourish. Indeed, some transformations are already
taking place among local financial institutions that are hoping to improve
their position in the new banking landscape.

 

Last year microfinance company Amhara Credit and Savings Institution (ACSI)
became Tsedey Bank. With more than 500 branches across the Amhara region, it
is now among the largest private banks in Ethiopia, and heralds even more
activity on the market. Some small companies will undoubtedly be absorbed by
larger players during an inevitable wave of consolidation, but others will
take their place. Banking liberalization creates an environment which
rewards small, agile players perhaps even more than large, established ones
and attracts a constant stream of new investors.

 

 

Financial liberalization is also likely to accelerate the spread of fintech
solutions, whether it's digital banking or mobile money solutions. Foreign
competition will force local banks to adapt to the increased consumer
demands shaped by the ability to choose from several financial services. The
effects can already be seen, and the Ethiopian customer has reasons to be
happy.

 

In anticipation of foreign companies moving fast to offer digital services
in the country, state-owned Ethio Telecom launched TeleBirr, the nation's
first telecom mobile money service. Now that Kenyan telecom Safaricom
announced plans to expand to Ethiopia, including its popular M-Pesa mobile
payments platform, Ethiopians will soon be able to pick from two services of
this type, where two years ago there were none.

 

Competing over a field with low penetration and immense room for growth is
likely to shape the approach of both TeleBirr and Ethiopian M-Pesa into
customer-centric models. This productive competition will go a long way
towards bringing Ethiopia closer in line with other African nations like
Kenya and Nigeria when it comes to modern approaches to banking. Across
Africa's largest nations, tech transformations and the relatively low levels
of penetration for traditional banking services have created huge momentum
for digital finance. From Egypt to South Africa and many places in between,
the concept of engagement banking, which uses digital solutions to create a
people-first, bespoke experience for customers of digital finance, is
burgeoning demand.

 

Digital banking solutions can also serve as a catalyst for turning the tide
of what has long been the elephant in the room when it comes to African
banking: the large percentage of the population is unbanked. Like in many
other countries in Africa, only a minority of Ethiopian adults have
registered for any sort of bank account, but digital banking has proven that
it can quickly redress the imbalance. Tech solutions are likely to attract
not only the expected crowd of young, tech-savvy customers, but also those
living in remote or rural areas, where an internet connection is easier to
get hold of than a brick-and-mortar bank. With 75% of its population
unbanked, the potential for growth in Ethiopian banking is immense.

 

Ethiopia finds itself in a unique position to transform its aging financial
system within this decade if the banking market liberalization is properly
implemented. Engagement banking and digital solutions must be at the core of
this transformation, as the pull of technology can no longer be ignored even
by the most conservative industries. Amidst Ethiopia's infrastructure boom,
digital infrastructure should not be ignored, but rather prioritized if the
long-awaited reform of the country's banking is to be fully successful.

 

Change is coming to Ethiopian banking, bringing with it both risk and
opportunity. It is up to the country's authorities, financial sector, and
general population to seize the reins of this transformation and use it to
shape the future of Ethiopia. How long until we hear the lion of Ethiopian
finance roar again? AS

 

Editor's Note: Nohaila Ibn El Farouk, is an Associate Account Executive
EMEA, at Backbase, a Dutch banking and financial technology company. Views
expressed in the article are that of the writer and do not necessarily
reflect AS' editorial stands.

 

Addis Standard.

 

 

 

Kenya: National Govt Mulls Stopping Guarantor Role to Counties Borrowing
Funds

Kisumu — The National Government plans to stop guaranteeing county
governments' internal and external borrowing if the Public Finance
Management (PFM) county regulations 2015 are amended.

 

The Director of planning in the resource mobilization department, Public
debt management office directorate in the National Treasury and Economic
Planning Monica Asuna said the changes in the regulations will allow county
governments to deal with the consequences of external borrowing
individually.

 

Asuna says the current regulations allow the counties to borrow as the
national government plays the guarantor's role making it a public debt and
not county debt.

 

 

"Currently, when the counties fail to pay their external debt borrowed
through the blessings of the national government, it is the national
government to pay that on their behalf," she said.

 

Speaking in Kisumu during a public participation forum on the proposed
amendment, Asuna says the current regulations define debt as county public
debt.

 

"We are seeking to harmonize the definition of public debt as per the
constitution and as the regulations, taking into account that the
constitution is the supreme law," she said.

 

Asuna says the public participation is, therefore, to change various
sections, "to remove public from county debts so that we have county debts
and not county public debts and also remove national and have public debts".

 

The counties will then have nowhere to lean to should they fail to repay the
external debts.

 

However, members of the public who attended the forum said the amendment
will go against the "Bottom Up" approach that the current government
campaigned on.

 

"Why is the government running away from its people, this is the platform
this government used to win elections, why must the government abandon us in
the counties if the county executive failed to repay these loans," said John
Omwa.

 

The forum also debated on the government's intention to change finance law
to allow the country to borrow money depending on its capacity to pay debt.

 

The government plans to move the debt ceiling from the current limit of no
more than Sh10 trillion to a new debt anchor set at 55 percent of GDP in
present value terms.

 

Asuna says the intention is in line with international best practice because
the nominal figure of Sh. 10 trillion does not give the country a measure
whether the country is at a critical limit or at a risk of default.

 

"As a percentage of GDP, it shows that we are at a critical limit or acts as
a way of letting us know that we are surpassing the limit and what we are
supposed to do," she said.

 

Currently, the debt to GDP stands at 62 percent, way above the international
critical limit of between 50 to 55 percent.

 

"We want to amend so that we have, instead of Sh 10 trillion nominal figure,
then we have debt anchored at 55 percent of GDP," said Asuna.

 

However, locals say the country will be at a loss if the GDP falls and went
ahead to anchor its debt at 55 percent.

 

Capital FM.

 

 

 

Kenya: Migori Begins Registration Process to Identify, Categorize Farmers

Migori — Migori County and the Kenya National Farmers' Association have
embarked on a registration process to identify and categorize farmers into
various value chain clusters.

 

Migori County Director of Agriculture Linus Origa said that the main aim of
clustering farmers was to establish their population as well as their value
chains.

 

Origa noted that with the right data on farmers, the county can be able to
plan and execute agricultural functions to help in food production through
subsidized farm inputs and marketing.

 

He added that the identification will enable the department of agriculture
to map out different types of entrepreneurship and how best to engage donors
and sponsors.

 

 

The official added that the registration process will help farmers access
loans and grants to help improve food production in the region.

 

Migori County-Kenya National Farmers' Association (KENAFF) Chairperson Peter
Mwita said they will work with the county to ensure that a proper database
is generated from all farmers in the county

 

Mwita emphasized that by identifying and clustering farmers according to
their respective enterprises KENAFF will have an easy time in terms of
establishing markets among its members.

 

Migori county is one of the rich agricultural areas in South Nyanza with
maize, rice, fish, beans groundnuts and sweet potatoes being produced for
sale.

 

"We want our farmers to benefit from their bulky agricultural produce and
explore the foreign markets to get value for their money. This can only be
achieved if we have a database that is able to identify our farmers as well
as their enterprises in the value chain process," noted Mwita.

 

He acknowledged that the farmers' registration exercise will take place in
all the 40 wards across the county with the help of the agronomists and
extension officers. - Kna

 

Capital FM.

 

 

 

 

Nigerians Abroad Remitted $168bn in Eight Years - World Bank Report

A World Bank report has revealed that the Nigerian Diaspora community
remitted $168.33 billion to the country in the past eight years.

 

The remittance was made even as the foreign investments inflow into the
country remained unstable during those years caused by a scarcity of foreign
currency which has since led to the free fall of the naira.

 

According to data from the World Bank and Budget Office of the Federation,
Nigeria's Diaspora remittances have played a huge contribution in cushioning
the adverse effects of foreign exchange scarcity and keeping the country's
forex reserve afloat.

 

In 2022, the World Bank stated that remittances flow to sub-Saharan Africa
grew by 5.2 per cent to $53 billion, with Nigeria getting the largest share.

 

 

The figures from the global bank revealed that between 2015 and 2022, a
total of $168.33 billion was sent home by Nigerians in the Diaspora.

 

A breakdown of the figures revealed that in 2015, the Diaspora remittance
was $21.2 billion; it plummeted to $19.7 billion in 2016; and rose to $22bn
in 2017.

 

It further stated that in 2018, it was $24.31 billion. It soon fell to
$23.81 billion in 2019, and the pandemic caused it to fall to $17.21 billion
in 2020. It came back stronger to $19.2 billion in 2021 and by 2022 the
World Bank estimated that the inflows into the country had reached $20.9
billion.

 

Prior to 2020, Nigeria's remittance inflows had only fallen below $20
billion once, when it fell to $19.7 billion in 2016. According to the World
Bank, Diaspora remittance one of the top sources of non-oil foreign exchange
for the country in 2022.

 

It noted that the sustained increase in Diaspora inflows since 2021 has been
because of several new policies from the Central Bank of Nigeria.

 

As of April 19, 2023, data from the CBN showed that Nigeria's forex reserve
was $34.43 billion, an 18.4 per cent increase from the $29.07 billion it was
in 2015.

 

While Diaspora remittances have helped hugely, the Nigerian Diaspora
community recently stated that the current global economic hardship may
affect its ability to transfer a lot of funds home.

 

Vanguard.

 

 

 

Tanzania: Dse Stocks Close Higher As Investors Assess Earnings

The Dar es Salaam Stock Exchange (DSE) equity market is expected to
outperform investors' expectations this week.

 

The analysts' projection banked on last week's performance spiced by the
demand registered year to date following stellar results of financial firms.

 

Vertex International Securities Chief Executive Officer Mateja Mgeta told
Daily News the market recorded a positive performance to echo their last
week's forecast as foreign investors' activity increased.

 

"We forecast the trend to continue [this] week as we expect financial
counters to continue to outperform surpassing investors' expectations," Mr
Mgeta said.

 

 

The equity market during the week under review, went up to over 264 per cent
to 2.48bn/- while attracting a foreign net inflow of 46.06m/-.

 

Alpha Capital Head of Research and Financial Analytics, Imani Muhingo, said
the market was still dominated by local investors who accounted for an
average of 68.8per cent participation, "thanks to the awakening and
absorption of foreign sales since the beginning of last year".

 

Nonetheless, local investors were net sellers during the week ending last
Friday, equivalent to a mere 1.85per cent of the total turnover.

 

Alpha Capital's weekly Financial Market Digest showed that six counters were
on the green last week, while no counter saw a red line for the week.

 

The leading gainer on DSE year-to-date was CRDB with 7.84 per cent to 550/-.
Year-to-date, the stock has surged by an impressive 96 per cent, with a
Price Earnings (PE) ratio of 4.07x.

 

CRDB, last year, paid a dividend of 36/- per share.

 

"This year, we estimate the dividend to be around 47/- per share, which
would generate an estimated yield of 8.5per cent based on current prices,"
Orbit Securities said in its weekly synopsis yesterday.

 

CRDB was followed by NICO closing at 5.06 per cent to 420/-, NMB also
closing at 3.49 per cent to 3,560/-, while DSE came fourth with 3.41 per
cent 1,820/-, and DCB making fifth with 3.03 per cent to 170/-.

 

Also, the domestic index - Tanzania Share Index (TSI) gained 1.55 per cent
4,176.27 points during the week and 7.4 per cent since the beginning of the
year.

 

On the other hand, the All Share Index (DSEI), which includes cross-listed
counters from Nairobi Securities, was down 0.19per cent 1,869.32 points and
0.67 per cent during the week and year to date respectively.

 

The DSEI drop was attributed to the dropping Kenyan market as foreign
investors limit participation in emerging markets.

 

Banks, Finance and Investment (BI) went up by 5.22 per cent to close at
4,242.98 points, up as CRDB, NICO, NMB, DCB, and DSE saw an increase in
counter prices.

 

Industrial and allied (IA) closed at 5,079.67 points, a gain of 0.02 per
cent as TCCL counter prices appreciated and Commercial services (CS) closed
at 2,161.21 points seeing a 0.00 per cent change.

 

Daily News.

 

 

Nigeria Has 222.5 Million Telephone Subscribers - NBS

The report showed that the figure for the last quarter of 2022 represented a
13.87 per cent rise in voice subscriptions on a year-on-year basis.

 

There were 222.5 million telephone subscribers in Nigeria as of the end of
2022, the National Bureau of Statistics (NBS) has said.

 

The 2022 figure showed an increase of 27.1 million subscribers over the
195.5 million subscribers recorded at the end of 2021.

 

The NBS stated the figures in its Telecoms Data: Active Voice and Internet
per State, Porting and Tariff Information report for the last quarter of
2022, released in Abuja on Monday.

 

 

The report showed that the figure for the last quarter of 2022 represented a
13.87 per cent rise in voice subscriptions on a year-on-year basis.

 

On a quarter-on-quarter basis, the report showed growth stood at 4.89 per
cent.

 

The NBS also recorded a total of 154.9 million active internet subscribers
at the end of 2022 compared to 142 million recorded at the end of 2021.

 

"This represents a 9.07 per cent increase in active internet subscriptions
year-on-year, while on a quarter-on-quarter basis, internet subscription
grew by 1.35 per cent," it stated.

 

On state-by-state analysis, the report showed that Lagos State had the
highest number of active telephone users in 2022 at 26.5 million, followed
by Ogun with 13 million users.

 

Kano State came third with 12.4 million telephone users.

 

The report showed that Bayelsa had the least number of telephone users at
1.6 million subscribers, followed by Ebonyi and Ekiti with 1.9 million users
and two million users, respectively.

 

It also showed that Lagos State had the highest number of internet users at
18.7 million subscribers, followed by Ogun with 9.2 million subscribers and
Kano State with 8.5 million subscribers.

 

"On the other hand, Bayelsa recorded the least number of 1.1 million
internet users, followed by Ebonyi and Ekiti with 1.3 million and 1.5
million subscribers, respectively," it stated.

 

The NBS report showed that the majority of telephone users in Nigeria in
2022 were MTN subscribers.

 

Premium Times.

 

 

 

Kenya: Ministry of Water to Construct Sh408.6 Million Irrigation Scheme in
Ugenya

Nairobi — The Ministry of Water, Sanitation, and Irrigation will construct a
Sh408.6 million irrigation scheme in Ugenya, Siaya County.

 

The proposed Anyiko-Ujwanga Expansion Irrigation Project will straddle
nineteen (19) villages and three (3) sub-locations, namely: Kathieno C,
Kathieno B, and Sihayi, located in the North East Location, East Ward,
Ugenya Constituency, and Ugenya Sub-County of Siaya County.

 

The scheme is located approximately 26km and 12km from Siaya and Ugunja
towns, respectively.

 

The water intake and sedimentation basin will be constructed in Indaglasia,
Kakamega County.

 

 

"The implementation of the project is to be carried out in phases starting
from intake works through conveyance system to distribution and tertiary and
drainage canals at farm level," an Environmental and Social Impact
Assessment (ESIA) Study submitted to the National Environmental Management
Authority (NEMA) reveals.

 

"The farmers are expected to irrigate their farms using water from the
tertiary canals that are directed to their farms to improve on water use
efficiency," it added.

 

ESIA identifies and addresses possible direct, indirect, and significant
adverse environmental and social impacts that may arise from the proposed
project.

 

"Water is to be abstracted from river Nzoia in Kakamega county and
transmitted downstream through canals."

 

The Anyiko rice-growing irrigation scheme was started in 1977 by the
Ministry of Agriculture as an experiment using simple check structures.

 

"Encouraged by what they saw, a few farmers started growing rice by tapping
water from the wetland at the upper part of the scheme for the purpose of
irrigating rice and obtained reasonable yield."

 

The project will involve the construction of a 14.5km main canal, field
canals (23km), service roads, and access roads (23.6km), among others.

 

"The construction of the intake and canals for the Irrigation project may
require the creation of some temporary access roads to the construction
sites," it added.

 

"The construction of project will also require localized vegetation
clearance for the construction of canals."

 

Capital FM.

 

 

 

British American Tobacco to pay $635m for North Korea sanctions breaches

British American Tobacco is to pay $635m (£512m) plus interest to US
authorities after a subsidiary admitted selling cigarettes to North Korea in
violation of sanctions.

 

The US authorities said the settlement related to BAT activity in North
Korea between 2007 and 2017.

 

BAT's head Jack Bowles said "we deeply regret the misconduct".

 

The US has imposed severe sanctions on North Korea over its nuclear and
ballistic missile activities.

 

Tuesday's settlement was between BAT and America's Department of Justice
(DOJ) and the Treasury Department's Office of Foreign Assets Control.

 

BAT is one of the world's largest tobacco multinationals and one of the UK's
10 biggest companies. It owns major cigarette brands including Lucky Strike,
Dunhill and Pall Mall.

 

In a statement, BAT said it had entered into a "deferred prosecution
agreement with DOJ and a civil settlement agreement with OFAC, and an
indirect BAT subsidiary in Singapore has entered into a plea agreement with
DOJ".

 

The DOJ said BAT had also conspired to defraud financial institutions in
order to get them to process transactions on behalf of North Korean
entities.

 

North Korean leader Kim Jong Un is known to be a heavy smoker. Last year the
US attempted to get the UN Security Council to ban tobacco exports to North
Korea, but this was vetoed by Russia and China.

 

At a briefing on Tuesday, the DOJ's assistant Attorney General Matthew Olsen
said the settlement was the "culmination of a long-running investigation",
describing it as "the single largest North Korean sanctions penalty in the
history of the Department of Justice".

 

He said that BAT was engaged in an "elaborate scheme to circumvent US
sanctions and sell tobacco products to North Korea" via subsidiaries.

 

"Between 2007 and 2017 these third-party companies sold tobacco products to
North Korea and received approximately $428m."

 

Criminal charges were also revealed against North Korean banker Sim
Hyon-Sop, 39, and Chinese facilitators Qin Guoming, 60, and Han Linlin, 41,
for facilitating sales of tobacco to North Korea.

 

A $5m (£4.4m) bounty was put for any information leading to the arrest or
conviction of Mr Sim, and $500,000 (£402,905) rewards for each of the other
two suspects.

 

They were accused of buying leaf tobacco for North Korean state-owned
cigarette makers and falsifying documents to trick US banks into processing
transactions worth $74m. North Korean manufacturers including one owned by
the military made about $700m thanks to these deals.

 

Pyongyang has for years faced multiple rounds of tough sanctions in response
to its ballistic missile launches and nuclear tests.

 

However that has not deterred Mr Kim from continuing to develop the
country's weapons programme.

 

-BBC

 

 

 

 

UK car parts giant Unipart may shift investment to US

The boss of a major UK manufacturing firm has told the BBC he is considering
moving investment to the US or Europe due to new subsidies offered there.

 

John Neil, who runs parts and logistics giant Unipart, said he wanted to
invest in Britain but UK companies could not "compete on a level playing
field".

 

The US is spending billions to help electric car firms, green energy and
microchips via loans and tax breaks.

 

Europe is also planning to ease state help rules for firms in green sectors.

 

But the UK has yet to announce its strategy, with the chancellor telling the
BBC that he would wait to see what the EU did before making any decisions.

 

Based in Oxford and employing more than 8,000 people, Unipart makes vehicle
parts, components and manages supply chain logistics.

 

Mr Neill, who is also a key board member of the car industry body the SMMT,
said America's Inflation Reduction Act (IRA), passed last year, was offering
firms a "completely game changing set of incentives and fiscal support" that
was hard to ignore.

 

"I've asked our team to think very carefully about our investment strategy
in the US and our US operations and whether we should be pivoting more into
those markets and possibly also into our European companies," he said.

 

Unipart workers

The IRA will offer hundreds of billions of dollars in grants, loans, tax
incentives and subsidies to support the production of goods such as electric
vehicles and green energy - the catch being that recipients must manufacture
on US soil.

 

It follows similar funding pledges in the US Infrastructure Bill and its
Chips Act, aimed at wider spending and boosting domestic production of key
microchips.

 

The US bills are partly aimed at tackling supply chain problems that emerged
during the pandemic, partly at reducing America's reliance on China for key
strategic technologies.

 

But they have ignited concerns about protectionism among US allies such as
the European Union - which is planning its own subsidies in response -
Korea, Japan and the UK.

 

"No one envisaged that the Americans would change the rules to the extent
they have, it just seemed kind of un-American in a way. But they have," Mr
Neill told the BBC.

 

"For us to invest we need to understand what Britain's strategy is and what
our regulatory framework is going to be. And we're not clear about any of
that."

 

Other top UK industrialists have warned the UK risks "standing on the side
lines" and losing key manufacturing investments if it does not come up with
a response.

 

And the former Aston Martin boss said the entire UK car industry was at
risk.

 

Already thousands of projects are being developed across America due to the
US investments, especially in former coal areas of the "Rust Belt" which
spans regions such as Pennsylvania, West Virginia, Kentucky and Michigan.

 

The BBC last week visited manufacturer Ascend Elements in Western Kentucky,
where it has begun construction on the first phase of a $1bn (£800m)
facility to harvest key rare earth elements from old batteries. The US
government has provided some $500m to support the project.

 

The important ingredients in an electric vehicle battery will now be
produced in the US, having almost entirely been imported from China.

 

"What it's done is accelerated the US's ability to be self-reliant, to make
these battery materials on their own," boss Mike O'Kronley told the BBC.

 

He added that the US had leapfrogged Europe, which had previously been set
to be the number two market for producing batteries.

 

"If the UK is going to compete with what's happening here in the US, a
similar level of incentives or favourable legislative environment or
framework needs to be put in place," Mr O'Kronley said.

 

"That that hasn't taken place yet, but it certainly could."

 

Chancellor Jeremy Hunt told the BBC that while there is a role for some
subsidies "to a certain extent, what America is doing is playing catch up
with the UK and other European countries".

 

"And we think over the long run if you depend entirely on subsidies, the
risk is that it's wasteful because you spend money on projects that would
have happened anyway."

 

The government has said it will respond to the US measures when it is clear
what the European Union will do. Labour has promised a British version of
the Inflation Reduction Act, but has not clarified how much new funding it
would allocate.

 

UK firms are fearful that the EU is already moving to respond to the US,
with Spain fast-tracking a round of massive support for the manufacture of
electric vehicles and batteries.

 

Decisions will be made in the coming weeks, and have attracted interest from
the owners of Jaguar Land Rover, India's Tata Group, which is currently
deciding whether to build a "gigafactory" in the UK.

 

bbc

 

 

 

Bank of England economist says people need to accept they are poorer

The Bank of England's top economist has said people in the UK need to accept
that they are poorer otherwise prices will continue to rise.

 

Huw Pill told a podcast in the US that there was a "reluctance to accept
that, yes, we're all worse off".

 

He said in response to higher bills and other costs rising, workers had
responded by asking for wage increases and businesses were charging more.

 

UK inflation, the rate of which prices rises, was 10.1% in the year to
March.

 

The rate dipped last month from 10.4% but that does not mean prices are
falling. It means they are rising at a slightly slower pace.

 

Inflation in the UK has been higher than the Bank of England's target of 2%
for some time.

 

Part of the Bank's job is to keep inflation at its target rate. In response
to rising prices it has increased interest rates, which make the cost of
borrowing money more expensive.

 

This move, in theory, is suppose make people reduce spending, so that demand
for goods cools down and price rises slow down.

 

With households being hit by soaring energy bills and food costs, many
workers have been asking for pay rises to help ease the pressure on budgets.

 

Job vacancies have been falling, but are still higher than they have been
for decades, strengthening people's hands as they ask for pay rises.

 

Although pay has been going up, it has not matched inflation, meaning people
are worse off.

 

'Someone needs to accept they're worse off'

Mr Pill said people demanding pay increases and businesses putting prices up
added to inflation and caused prices to rise even further across the
economy.

 

"Somehow in the UK, someone needs to accept that they're worse off and stop
trying to maintain their real spending power by bidding up prices, whether
through higher wages or passing energy costs on to customers etc," he told
the Beyond Unprecedented podcast from Columbia Law School.

 

"What we're facing now is that reluctance to accept that, yes, we're all
worse off and we all have to take our share; to try and pass that cost onto
one of our compatriots and saying: 'We'll be alright, but they will have to
take our share too'.

 

"That pass-the-parcel game that's going on here, that game is one that's
generating inflation, and that part of inflation can persist."

 

Thomas Moore, senior investment director at Abrdn, told the BBC Mr Pill was
pointing to one-off factors driving up inflation and saying "don't blame us,
look at these one-offs and actually we need you to help us to get
[inflation] down to 2% because the sooner that all of you expect lower
inflation in terms of your wages demands and the settlements you achieve
with your employers that will help bring inflation down".

 

However, Mr Moore said there had been a "massive expansion" in the money
supply under the Bank of England as a result of the Covid pandemic. "The
problem is monetarist economists believe that money supply is the key root
of inflation, so there's this debate raging at the moment - was it those
one-off transitory factors [that caused inflation] or was it actually a
cause of this underlying issue of money supply?"

 

Mr Pill is not the first Bank of England official to warn about wage rises
contributing to inflation.

 

Last year, the Bank's governor Andrew Bailey urged people not to ask for big
pay rises, to try and stop prices rising out of control.

 

His comments were immediately met with backlash, with unions saying they
were "ill-founded". At the time, Downing Street and the Treasury distanced
themselves from Mr Bailey's comments.

 

Mr Bailey later urged moderation in price rises from businesses.

 

Abrdn's Mr Moore said it was the Bank's aim to persuade people to rein in
their wage demands. "The bit of inflation that they're particularly worried
about is what's called core inflation and the main driver of core inflation
is wages, so it's a really tough bitter pill. I don't know how people are
going to swallow this bitter pill because it's a very tough message."

 

Inflation was expected to fall below 10% last month but soaring food prices
meant it fell by less than expected.

 

The British Retail Consortium said it expected food prices to start falling
"over the next few months".

 

But the retail industry body said there was a three to nine-month lag to see
price falls reflected in shops.-bbc

 

 

 

 

Amazon UK could be forced to recognise first union

Amazon could soon be forced to recognise a trade union in the UK for the
first time.

 

The GMB union says it has enrolled a majority of workers at Amazon's
Coventry warehouse which qualifies them for recognition by law.

 

It has written to the company asking to be recognised.

 

Amazon says it "respects its employees' rights to choose to join or not join
a labour union".

 

First striking Amazon staff say toilet breaks are timed

The GMB believes it is on the cusp of a historic victory after a decade of
trying.

 

If successful, it would mean Amazon would have to negotiate with workers
about their pay, holidays and sick pay.

 

Amazon has 10 days to respond.

 

It said it regularly reviews pay, and that starting pay was between £11 and
£12 per hour.

 

"Over the past seven months, our minimum pay has risen by 10% and by more
than 37% since 2018," it added.

 

The union estimates that there are 1,300 workers at the Amazon distribution
centre in Coventry. It says a majority - nearly 700 - have joined the GMB
and says that means it has met the threshold for statutory recognition.

 

Darren Westwood, who works at the warehouse, and who has been at the
forefront of getting people to join the union, says it is "fantastic" that
recognition could be happening soon.

 

He said: "It's just so exciting because we've taken on one of the biggest
companies in the world and won."

 

'No humanity'

If Amazon does not grant recognition, the body responsible for resolving
recognition disputes, the Central Arbitration Committee, could be asked to
step in.

 

The CAC could automatically grant recognition if it is persuaded that a
majority of the workforce wants the union to represent them. The workforce
could be required to vote to show its support for this.

 

Workers at the Coventry warehouse first started protesting about their pay
last August - when only 30 of them were members of the GMB. They held the
first ever Amazon strike in the UK in January.

 

Since then, the company has increased its minimum starting wage to between
£11 and £12 an hour, depending on location. The union is calling for an
hourly wage of £15 an hour.

 

But the dispute has always been about more than money. Mr Westwood said a
union was needed because, "it sometimes feels as if the management has no
humanity".

 

Having a union, he said, was "about having that person on your side. It's
about having protection in your back pocket."-bbc

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
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www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Workers’ Day

 

May 1

 


 

Africa Day

 

May 25

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

TSL

Fidelity

 


Willdale

FMHL

ZBFH

 


GetBucks

Zimre

Seed Co

 


 

 

 

 


 

 

 

 


 <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 s 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 d from third parties.

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

 


 

 

 

 

 

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