Major International Business Headlines Brief::: 11 August 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 11 August 2023 

 


 

 


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ü  South Africa: Turkish Firm Offers to Cut 20-Year Power Deal to Five Years, But There's a Catch

ü  South Africa: More Talks As Taxi Strike Leaves Cape Store Shelves Empty

ü  Mozambique: Striking Doctors Seek Injunction

ü  South Africa: Government to Close Open Shafts, Mine Holes

ü  Ghana: Innovative Grass Charcoal Fuels Opportunity in Ghana

ü  Kenya: President Ruto Assures Kenyans His Govt's Commitment of Lowering High Cost of Living

ü  Mozambique: Get.Invest Injects U.S.$1.8 Billion Into Renewable Energy

ü  Kenya, Somalia Renew Airspace Cooperation

ü  Kenya: Kindiki, Owalo Given a Week to Provide Answers On World Coin Mining Scandal

ü  Mozambique: Fisheries Production Reaches Over 200,000 Tonnes in First Quarter

ü  Mozambique Expects to Earn U.S.$100 Million From Natural Gas Exports This Year

ü  China property giant Country Garden warns of up to $7.6bn loss

ü  US inflation ticks higher in July on housing costs

ü  Wegovy weight-loss drugmaker sees profits soar

 


 

 


 

 <https://www.cloverleaf.co.zw/> South Africa: Turkish Firm Offers to Cut 20-Year Power Deal to Five Years, But There's a Catch

Harare — Karpowership offered to reduce the initial 20-year contract to five years in an apparent effort to get a multibillion rand "emergency" electricity supply arrangement with South Africa, according to a Daily Maverick report.

 

However, there is a catch: a shorter contract would cost more money. The Council for Scientific and Industrial Research (CSIR) estimated that the transaction might cost as much as R228 billion (approximately U.S.$12,1 billion), but the precise amount is still unknown.

 

The five-year deal proposal follows the protracted debate over the merits of procuring power from the Turkish company. Karpowership Chief Commercial Officer Zeynep Harezi reportedly said that her company was prepared to send five floating powerships to South Africa and to start producing electricity within "90 days" or less.

 

In July, South African Environment Minister Barbara Creecy rejected appeals from five environmental organizations that attempted to prevent the firm from requesting permission to erect a 450 megawatt gas-fired facility at the port of Richards Bay on the northeast coast.

 

In a separate judgment, she permitted Karpowership to seek environmental approval at Saldanha on the west coast, overturning her department's earlier decision to reject authorization for a 320-megawatt operation.

 

Since winning nearly 60% of a state tender in March 2021 for 2,000 megawatts of emergency electricity to address the crisis, Karpowership has been working on three projects, according to Bloomberg. However, a disagreement over the positioning of the power ship with the national port operator will cause a delay in the 450 megawatt project at the Port of Ngqura. It was said that the delay in Ngqura might be anywhere between 12 and 18 months as a result of the requirement to locate a new spot in the harbor for the ship to moor.

 

With South Africa looking to Kapowership to assist with its load shedding crisis, concerns have been raised at the cost and the length of time of the contracts, as well as its impact on the environment.

 

The Karpowership deal is aimed to lessen the impact of load shedding on the country which has affected the economy, most notably small businesses, with up to 64% of township small businesses stopping operations during scheduled power cuts.

 

 

 

 

South Africa: More Talks As Taxi Strike Leaves Cape Store Shelves Empty

Harare — The South African National Taxi Council (Santaco) confirmed that it will attend a meeting with Cape Town Mayor Geordin Hill-Lewis to try to find a solution to the taxi strike impasse, EWN reports.

 

The meeting will take place as the taxi industry's senior brass prepares to take legal action to get impounded taxis back.

 

Earlier, the Western Cape government said that safety escort services will now be extended to food delivery trucks in order to ensure that local businesses are restocked throughout the ongoing taxi strike.

 

Stores were unable to receive deliveries, leaving some residents of the province without necessities like bread and store shelves empty.

 

Santaco, which initially intended to resume taxi routes on Thursday morning, is now saying the strike to last until Friday, August 11. The Council announced a one-week provincial shutdown after failing to reach an agreement on a number of issues with local authorities.. The complaints started when municipalities were given the authority to impound vehicles for traffic violations like driving without a license or having expired registration plates.

 

The roads in Cape Town were quiet and clear today (August 10), according to Western Cape Mobility MEC Ricardo Mackenzie.

 

At least five people were killed in incidents related to the strike, and left hundreds of thousands of commuters stranded.

 

 

 

 

Mozambique: Striking Doctors Seek Injunction

The Mozambican Medical Association (AMM) has asked the Administrative Tribunal to issue an injunction that would annul the effect of administrative measures taken by the Health Ministry against striking doctors.

 

These measures are essentially the declaration that doctors who do not show up for work are absent, and therefore suffer the penalties for absenteeism (essentially the loss of wages for the days not worked).

 

AMM spokesperson Napoleao Viola, cited by the television station, STV, declared "We believe that the government is threatening us and so, to contain this situation, we have decided to apply for an injunction so that all these illegal actions taken by the executive will have no impact on the doctors who are exercising a constitutional right".

 

The government has decided to recruit 60 Mozambican doctors, who are currently not employed by the National Health Service, to replace the strikers.

 

Viola declared that the AMM supports this measure - he added that "it would be good if the government were to hire all the other doctors who are currently unemployed".

 

The health service had not recruited these doctors previously for budgetary reasons. The constraints on the Mozambican state budget mean that not every doctor who completes a medical training course will be able to walk into a job in a public health unit. Some, however, may be in private practice.

 

The recruits will initially replace the strikers on a temporary basis, but the government has warned that the placements could become permanent if the strikers do not return to work.

 

Neither the AMM nor the Health Ministry have issued reliable statistics about the strike. It is thus not clear how many doctors are on strike, and how many health units are affected.-AIM.

 

 

South Africa: Government to Close Open Shafts, Mine Holes

The Department of Mineral Resources and Energy (DMRE) has committed to closing all derelict open shafts and mine holes in Riverlea by the end of September 2023, while finalising plans to do the same across the country.

 

This is due to the illicit activities that have left some communities living in fear.

 

"Cabinet welcomed the deployment of a special police unit, which is supported by the military, in Riverlea, Johannesburg, to deal with illegal mining in the area.

 

"In addition, Cabinet commended the arrest of over 194 suspects over illegal mining activities and directed law-enforcement agencies to urgently clamp down on this and other serious crimes in the country," Minister in The Presidency, Khumbudzo Ntshavheni, said on Thursday.

 

She was addressing a media briefing in Pretoria on the outcomes of the Cabinet meeting held on Tuesday.

 

Meanwhile, Cabinet has approved the pre-release calendar for the publication of the quarterly crime statistics for the 2023/24 financial year.

 

"The crime statistics will be released in August and November 2023 for quarters one and two, and February and May 2024 for quarter three and quarter four, respectively. The frequent release of crime statistics is important for monitoring crime trends and better decision-making in the fight against crime," Ntshavheni said.

 

Cabinet also approved the submission of the draft National Prosecuting Authority (NPA) Amendment Bill of 2023 to Parliament.

 

"The Bill amends the NPA Act, 1998 (Act 32 of 1998) to provide for the establishment of the Investigating Directorate as a permanent entity within the NPA, and to also strengthen its investigative powers," the Minister said.

 

-SAnews.gov.za.

 

 

 

 

Ghana: Innovative Grass Charcoal Fuels Opportunity in Ghana

idea of grass charcoal had never crossed my mind!" exclaims Mary Tiekor, Handi Women's Group member and charcoal producer, as she holds a freshly made organic briquette in her hands. "And yet, here it is - and the process is so quick!"

 

Like Mary, over six million people in Ghana's savannah ecological zone depend on wood fuel and tree charcoal for daily use, and this represents just a fraction of the more than 2.4 billion people worldwide  that rely on firewood and charcoal for cooking, energy and income.

 

Unsustainable practices in charcoal production have led to deforestation and degradation of the country's environment and continue to do so. These environmental challenges are compounded by Ghana's severe dry season, during which the abundant savannah grass often fuels the characteristic wildfires of those months. The fires can decimate crops and consequently threaten food security.

 

 

Now, savannah grass can be used to fuel stoves thanks to a new charcoal production method developed and piloted as part of an initiative by the Millar Institute for Transdisciplinary and Development Studies (MITDS), with financial and technical support from the Forest and Farm Facility (FFF) of the Food and Agriculture Organization of the United Nations (FAO). The new production method aims to capitalize on the potential of the region's grasses, helping reduce fire risk and forest degradation while contributing to ecological, economic and social goals.

 

"We have plenty of grass everywhere, but we never knew that it could be useful or help us alleviate poverty," says Biirbarimah Inuur, a 40-year-old charcoal producer from Naafaa community in the Sawla-Tuna-Kalba district of Ghana's Savannah region.

 

>From grass to charcoal

 

Whereas traditional charcoal is produced with biomass harvested from trees, the grass briquettes use harvested grass and a binding agent to create small bricks of charcoal. The process is less labour-intensive and the bricks easier to produce. This technology has created a market for green cooking fuel, incentivizing people to protect the grass and the land.

 

 

Additionally, every 100 kilograms of grass charcoal consumed saves two trees, which can net 76 kilograms of carbon credits a year. According to MITDS, widespread use of grass charcoal could offset over 44 000 tons of carbon a year with a potential estimated income of GHS 4.4 million (USD 400 000) in carbon offset credits.

 

MITDS has piloted the production and use of grass briquettes across five forest and farm producer organizations. FFF additionally provided support for training these producer organizations and facilitated market access and development. Over 95 percent of those involved reported that they felt the new grass briquettes were a good business opportunity.

 

 

"It [the grass charcoal] burns slower, and since we women like our food to simmer when cooking, grass charcoal is the right charcoal for us," says Biirbarimah Inuur.

 

Training local communities

 

Local women have been at the centre of the training supported by FFF, MITDS and other regional partners, making up 234 of the 448 people trained. They have learnt how to harvest the grass sustainably, produce the grass briquettes and market their surplus for commercial sale.

 

"I now prepare my own grass charcoal for cooking. It saves me a lot of money," says 71-year-old Mary Stella Poerekuu, a retired teacher from Lyssah in the Lawra municipality of the Upper West region.

 

Local entrepreneurs are now exploring ways to establish more grass charcoal businesses, following the success of pilot businesses in two communities in the Savannah and Upper West regions. The lessons learned from these businesses will be used to upscale the approach across the country.

 

To improve the marketability of the grass charcoal, FFF and MITDS are also developing grass paper that can be used as packaging for the grass briquettes. This will enable producers to sell their charcoal at higher prices and improve the recognition of the product.

 

The paper has also been identified as a potential material to improve roofing in rural housing, acting as insulation to cool the houses in the hot, dry season and reducing pressure on forest resources used to produce plywood.

 

An enabling environment for grass charcoal

 

Currently, grass charcoal production, at GHS 100 (USD 10) per 100 kilograms, is about twice as expensive as wood charcoal, mainly owing to the additional components required, such as a binding agent.

 

"The grass used for charcoal is also purchased from communities; whereas felling a tree in the forest is considered 'free'," explains FAO Forestry Officer, Sophie Grouwels, the FFF country coach. "However, FFF is supporting MITDS in bringing together green energy experts and policymakers to find ways to enhance the enabling environment for grass charcoal and make it more attractive for communities."

 

One proposed solution is to introduce government incentives to propel its use. A similar approach was used with great success in the country when gas stoves were first introduced as an alternative to wood charcoal stoves.

 

Policymakers are expressing their support for the new technology as an opportunity to protect forest landscapes while strengthening local livelihoods. Following a ban on tree felling for timber production, Edward Ndanbbon Taalak, Nabdam District Coordinator of Ghana's National Disaster Management Organisation in the Upper East region, was approached by a group of women asking what they would use to cook food for their families.

 

"I had no answer," said Taalak. "But now I do. When I return, I will tell them, 'You can continue to produce charcoal to take care of your families. But this time, you will be producing charcoal from grass, which is more abundant here than trees!'."

 

-FAO.

 

 

 

 

Kenya: President Ruto Assures Kenyans His Govt's Commitment of Lowering High Cost of Living

Nairobi — President William Ruto has completed his five-day development tour of Mt Kenya region.

 

The President launched development projects and engaged the people of Kiambu, Nyeri and Kirinyaga counties.

 

He said the Government will fulfil its pledges to the people of Kenya through the Bottom-Up Economic Transformation Agenda.

 

"I am going to lead the team that is going to transform and change our country," he said.

 

He assured Kenyans of the Government's commitment to reducing the cost of living by supporting farmers to increase production.

 

 

On Wednesday, President Ruto commissioned the Naromoru Level 4 Hospital in Nyeri County.

 

He also launched Affordable Housing Projects in Gichugu and Thika besides launching the construction of Karimenu II Dam Water Supply in Kiambu County.

 

Deputy President Rigathi Gachagua, Governors Mutahi Kahiga (Nyeri), Anne Waiguru (Kirinyaga), Kimani Wamatangi (Kiambu), Health Cabinet Secretary Susan Nakhumicha, principal secretaries MPs and MCAs led by the Majority Leader Kimani Ichungw'ah accompanied the Head of State.

 

The President explained that the Government had cleaned up KEMSA to ensure it procures medical supplies effectively and transparently.

 

He observed that the Government is investing in agriculture, housing, manufacturing and digital economy to grow opportunities for the youth.

 

"We will create 500,000 online jobs that will allow our youth to work for foreign firms remotely," he added.

 

In Thika Town, where he held a public rally, he assured the residents and traders that Kenya was on the right trajectory.

 

"We are fixing unemployment, subsidising food production and reforming our education to produce competent human capital to drive our economic growth."

 

The President maintained that through the Hustler Fund, entrepreneurs can now access cheap credit to grow their businesses.

 

"We are keeping the promise to Kenyans through our Plan."

 

Mr Gachagua said the government will not be distracted by detractors in its pursuit of better living standards for Kenyans.

 

He urged leaders to work together for the good of the people.

 

-Capital FM.

 

 

 

 

Mozambique: Get.Invest Injects U.S.$1.8 Billion Into Renewable Energy

The European Programme for Clean Energy Investments (GET.Invest) has approved 144 projects on renewable energy, budgeted at around US$1.8 billion, drawn up by private companies in Mozambique, during the period 2016-2023. The approved projects are part of a universe of nearly 1,400 submitted over the period, of which 380 were supported and 70 are in the financial closing phase, at a cost of €442 million.

 

According to a GET.Invest document sent to AIM, the European multi-donor programme points to a high success rate and a wide reach in the market, despite persistent challenges of various kinds.

 

"As a pioneering initiative, GET.Invest delivers solid and tangible results. Development of a pipeline, with more than 200 projects supported with a high success rate, great reach in the market, with more than 16,000 participants", reads the note.

 

GET.Invest justifies the investment in the sector as clean energy solutions are becoming increasingly commercially viable and represent the most cost-effective option to provide clean and affordable energy to millions of people by linking project and business development to financing.

 

 

"GET.Invest believes that by 2030, €41 billion per year will be needed to accelerate electrification projects in Africa within the framework of universal access", the document says.

 

According to the data, solar energy is the most abundant renewable source in Mozambique, with a potential for the production of 23,000 Gigawatts, but hydropower remains the source that presents the most priority projects in the order of 5.6 Gigawatts.

 

It should be noted that the authorities have identified a vast range of medium-sized projects, with very competitive costs, on Mozambican rivers, including the Revue, Buzi, Pungue, Luenha, Revubue, Licungo, Lurio, Lugenda, Messalo, and Lucheringo.

 

GET.Invest Mozambique is funded by the Delegation of the European Union in Mozambique within the scope of the Promote Energy programme and by the German Ministry for Development Cooperation.AIM.

 

 

 

Kenya, Somalia Renew Airspace Cooperation

Nairobi — Kenya and Somalia signed a bilateral Air Services Agreement on Wednesday, opening the two countries' airspace to each other.

 

Transport Cabinet Secretary Kipchumba Murkomen said the deal will not only benefit Kenya Airways but other airlines as well.

 

"This agreement means that airlines will be designated to fly to Mogadishu and Nairobi but, this will depend on the designations that will be done by respective ministries across the country," he said.

 

Murkomen said that the two governments had decided that the Civil Aviation Authorities of the contracting parties will work together.

 

The above is meant to improve mutual engagements in the sphere of civil aviation, as well as increase their capacity, train their workforce, and share their experiences.

 

 

"It makes us operate the way other civilized nations operate under the International Civil Aviation Authority and the Chicago convention that defines our relationship as countries on the use of airspace," he added.

 

Murkomen continued by saying that KQ will now be required to write to the ministry to get the necessary air transport approvals.

 

It is anchored on traffic rights, frequency and capacity, code-sharing, and the Technical Cooperation Agreement (TCA) between the countries.

 

"The Agreement paves way for designated airlines of each Contracting Party to operate 7 weekly frequencies for passenger flights on specified routes while designated cargo flights may operate unlimited frequencies," he said.

 

KQ suspended its plans to launch the flights to Hargeisa in Somaliland in May 2021 over what it termed a lack of requisite 'clearance and approvals'.

 

Somalia initially protested Nairobi's strict aviation rules that required stopovers in Wajir, in northeastern Kenya, for security checks.

 

"We currently do not have any flights in operation, contrary to information circulating on social media," Kenya Airways said in a statement.

 

Read the original article on Capital FM.

 

 

 

Uganda: Salaries to Be Affected As Government Plans Budget Reviews Following World Bank Loan Ban

The Ministry of Finance has issued a warning that emoluments and different salary obligations from the government will most likely be affected as Uganda continues its stand on the anti-homosexuality law despite calls from World Bank to drop it.

 

Speaking during a presentation for the Finance Committee of Parliament, the Minister of State for Finance, Henry Musasizi said the government intends to revise the national budget after World Bank halted funding to Uganda following the passing into law of the Anti-Homosexuality Act 2023

 

"Emoluments of public servants will be affected, we shall be coming here to ask for your approval on how we shall move forward in the current challenges," he said.

 

"We took the firm decision and we agreed that we shall face the consequences. We shall be coming soon, I want to prepare your minds that very soon we are going to revise the budget and we shall be coming to you for support," he added.

 

In response to Musasizi's remarks, Amos Kankunda, the chairperson of the committee affirmed that the country is ready for the next phase of its challenges, and does not regret the passing of the anti-gay law.

 

"I know you are aware that as a country, we have been slapped with stopping funding from World Bank, given the position we took as a country which we don't regret for the passing of the Anti-Homosexuality law, we are on the right trajectory," he said.

 

"We will find ways of surviving & as a committee, this is our responsibility since we handle majorly the supply side of the budget, to make sure we work with the Ministry to mobilise sufficient funds & work within our means to make sure the country moves on," he added.

 

The mover of the Bill that birthed the anti-gay law, Asuman Basalirwa has also called upon the government to remain firm, urging that the World Bank does not own a monopoly to survival.

 

"God will help us survive," he said, adding that it is high time Uganda looked for more friends elsewhere.

 

 

 

 

Kenya: Kindiki, Owalo Given a Week to Provide Answers On World Coin Mining Scandal

Nairobi — Interior Cabinet Secretary Kithure Kindiki and his ICT counterpart Eliud Owalo have been given one week to provide substantive answers on the world coin cryptocurrency data mining scandal.

 

National Assembly speaker Wetangula granted the two CSs seven days to shed light on how the company was registered, whether the data collected amounted to a breach of security and what measures have been put in place to guarantee the safety of data mined by the firm.

 

Wetangula also directed the office of the data protection commissioner to be excepted from the multi-agency probe alluding that it could be compromised.

 

 

Yesterday, the two CSs appeared before the floor of the National Assembly to answer to lawmakers concerns over the illegal data mining activities by the foreign firm amidst claims of security gap that allowed for the company to operate in the country.

 

"I will give you another week and so you can come back with more detailed and satisfactory answers. please when responding you should give details of who licensed these people to operate in the country and more so from KICC which is a public facility," said Wetangula.

 

Lawmakers gave the two cabinet secretaries a hard time to explain whether the country was safe why the government took time to respond to the issue.

 

Kindiki revealed that investigation conducted thus far have established that crimes were committed during Worldcoin operations assuring that measures will be taken to change those responsible.

 

"Crimes were committed; Crimes against the data protection act, crimes against the privacy of Kenyans and the crimes against the penal code have been committed and we will get all those involved so they can face justice," stated Kindiki.

 

 

The Interior Boss pointed out that the government will fast track investigation and it will move further to request other countries for the surrender of those outside Kenyan territory for them to record statements.

 

"The processors of data must obtain consent from Kenyans in line with our Data proction Act. If any consent was sought, which was doubtful, it was not acknowledged consent from Kenyans," said Kindiki.

 

This coming days after the Ministry of Interior issued a freeze order on the movement into and out of the country for all those involved in the scandal.

 

"By the time government is coming in, we must have reasonable information that crimes have been committed. This issue is a serious threat just like terrorism, banditry and the sale of drugs and also just like those who want to intimidate us to use politics to commit crimes," Kindiki said.

 

"Kenya is safe. But I urge Kenyans that even as we go forward in the technological world we must be alert to the fact that the risks in the physical space are the same in the digital space," he added.

 

CS Owalo assured that the multi-agency team investigating the matter will be keen to establish whether the Worldcoin mining data project was an attack on the nation.

 

"Globally, data is the new oil and we cannot block our eyes from the interest in our data by foreign entities. We will be able to ascertain the viability of the fears of those saying that what happened was as a result of foreigners having an interest in our data," said Owalo.

 

The ICT Cabinet Secretary also expressed that the operationalization of the project by the foreign firm through monetary inducement for data raised eyebrows on the authenticity of the data collection.

 

"At no point has there been a disparity in the position I took and the action by the Interior CS. I explained that at the point of registration they had met the bare minimum requirements as a data collection firm but.in the course of operationalization, certain issues on policy, laws and regulations emerged and in the course of the day government took action on them," observed the ICT CS.

 

The issue on the transparency of the operations of Worldcoin had been raised in in France, India, Germany, UK and other countries.

 

-Capital FM.

 

 

 

Mozambique: Fisheries Production Reaches Over 200,000 Tonnes in First Quarter

The Minister of the Sea, Inland Waters and Fisheries, Lidia Cardoso, announced on 31 July that fisheries production in the country reached 218,000 tonnes during the first half of 2023.

 

The minister highlighted the role of artisanal fishing which contributed 95 per cent of the total. Industrial and semi-industrial fishing contributed to four per cent of the total and aquaculture just one per cent.

 

The minister was opening the First Session of the National Fisheries Administration Commission in Maputo. This is a Government advisory body for the administration and management of fisheries resources.

 

 

In the same period, said the minister, 618 aquaculture fishermen were trained and 155 fishponds were built. "We made available the stocking of 595 tanks, financed 197 beneficiaries in goods and equipment and signed 11 contracts with suppliers worth 80 million meticais (US$1.25 million), to benefit 689 people", she said.

 

In the last two years, warned the minister, average fishing yields have shown a downward trend in some fisheries, caused by overfishing, persistence of harmful practices, reduction of potential fishing areas by other industries, marine pollution, the degradation of marine environments, as well as the effect of climate change.

 

However, Cardoso stated that despite the adversities affecting the sector, overall fisheries production is tending to increase. "This improvement in production resulted in a contribution to the Gross Domestic Product (GDP) of 1.6 per cent and a global value of US$551 million", she said.

 

Regarding the challenges that the sector faces, Cardoso highlighted the fight against illegal fishing and marine pollution (in particular plastic waste); the regulation of fishing and aquaculture activities; and the management of conflicts arising from fishing activities. "These are situations that draw our collective attention to the combination of efforts, with a view to dealing with these problems", she said, adding that "for the second half of this year, the fisheries sector expects, in addition to training fishermen and aquaculture farmers, the mass construction and provision of tanks and pens"

 

"We also hope to intensify inspection actions in inland waters, to reduce illegal fishing and the use of non-recommended fishing gear", she added.-AIM.

 

 

 

Mozambique Expects to Earn U.S.$100 Million From Natural Gas Exports This Year

The Mozambican State expects to earn US$100 million this year in taxes on the exploitation of natural gas in the Rovuma Basin, off the coast of the northern province of Cabo Delgado, according to the Minister of Economy and Finance, Max Tonela.

 

Tonela, who on 2 August was addressing the Plan and Budget Commission of the Mozambican parliament, the Assembly of the Republic, said that so far this year US$40 million has been collected in taxes, and a further US$60 million is expected by the end of the year.

 

In the first three years of the 25-year concession, the government expects revenue of US$100 million a year, rising to US$300 million a year from the fifth year. By the tenth year of implementation, revenue could reach a billion dollars a year.

 

 

Tonela estimated that, during the 25 years of the concession contract, the Mozambican state will receive an average of US$750 million a year.

 

"To manage the revenues well, it is necessary to approve the law which creates the Sovereign Wealth Fund", Tonela told the deputies. He said that many aspects that had previously been in dispute were now consensual, which should make it easier for the Assembly to pass the bill on the Sovereign Wealth Fund.

 

He also explained that the State Budget, in the future, will have a specific section focused on managing gas revenues. The Law on the Sovereign Wealth Fund, he added, will publicly report the amounts that the State earns over the years.

 

The Fund, Tonela said, will take the form of a dossier of financial assets, managed in accordance with internationally established rules and principles, with the purpose of generating savings for future generations.

 

He added that the Bank of Mozambique will be the operational manager of the Fund, under an agreement signed between the central bank and Tonela's Ministry.

 

The bill on the Fund, submitted to the Assembly, envisages that, in the initial years, 60 per cent of revenue from gas will go towards financing the state budget, while the other 40 per cent will be invested in the Wealth Fund. Later, these figures will be reversed, with 40 per cent for the state budget and 60 per cent for the Fund.AIM.

 

 

 

China property giant Country Garden warns of up to $7.6bn loss

Country Garden, which is one of China's biggest property developers, has warned that it could see a loss of up to $7.6bn (£6bn) for the first six months of the year.

 

The announcement is the latest sign of the major issues faced by the world's second largest economy.

 

This week official figures showed China had slipped into deflation for the first time in more than two years.

 

Exports have also fallen sharply, while youth unemployment is at a record high.

 

Shares in Country Garden Holdings were down by almost 10% in Hong Kong trade on Friday morning.

 

Country Garden "is expected to record a net loss ranging from approximately RMB45 billion [$6.24bn; £4.9bn] to RMB55 billion for the six months ended 30 June 2023," the company said in an announcement to the Hong Kong Stock Exchange.

 

The expected loss compares to a $265m profit for the same time last year.

 

The firm also said it has set up a special task force, headed by its chairman Yang Huiyan, to find ways to turn the business around.

 

Earlier on Thursday, rating agency Moody's downgraded the company's rating, citing "heightened liquidity and refinancing risks".

 

It came as China faced a number of economic challenges, which have raised questions about the pace of its post-pandemic recovery.

 

Earlier this week, official figures showed the country's exports fell by a larger-than-expected 14.5% in July compared with a year earlier, while imports dropped 12.4%.

 

Youth unemployment, which is at a record high, is also being closely watched as a record 11.58 million university graduates are expected to enter the job market this year.

 

Burnt out or jobless - meet China's 'full-time children'

The memes that lay bare China's youth disillusionment

On Thursday, US President Joe Biden said China's growing economic issues make it a "ticking time bomb."

 

At a fundraising event in the western state of Utah, Mr Biden also said "China is in trouble" as he highlighted its high unemployment and aging workforce.

 

The country is also tackling ballooning local government debt and challenges in the housing market.

 

Last month, Evergrande, which was once China's biggest real estate firm, revealed that in 2021 and 2022 it lost a combined $81.1bn.

 

It came as the firm, which defaulted on its debts in late-2021, reported its long overdue earnings to investors.

 

Evergrande has been struggling with an estimated $300bn of debts.

 

The huge losses highlight how much the developer was rocked in recent years by the property market crisis in China.

 

Problems in China's property sector - which includes everything from building homes to industries making white goods that go in them - can have a major impact on the country as it accounts for around a third of the economy.-bbc

 

 

 

US inflation ticks higher in July on housing costs

Prices continued to rise in the US last month, despite a sharp increase in interest rates to stamp out inflation.

 

The rate of inflation was 3.2% over the year to July, driven by higher housing, car insurance and food costs, the Labor Department said.

 

That was up from 3% in June, which was the lowest rate in more than two years.

 

Analysts had expected the increase in the headline rate, after relatively weak price inflation last July.

 

But that said the report from the US Labor Department offered other signs that price increases were subsiding.

 

"Underlying inflation is heading in the right direction," said Hussain Mehdi, macro and investment strategist for HSBC Asset Management, while Harvard economist Jason Furman called the latest figures "unambiguously good news".

 

The US central bank has raised its benchmark interest rate to more than 5.25% - the highest level in 22 years - in a bid to cool the economy and ease the pressures pushing up prices.

 

Inflation in the US hit a peak of 9.1% last year, far above the US Federal Reserve's 2% target.

 

However, it has eased significantly as the shock to food and energy prices from the war in Ukraine has faded.

 

Ryan Sweet, chief US economist at Oxford Economics, said the decline did not imply that it was "mission accomplished" for the rate-setting central bank.

 

"Still, we expect the Fed to skip rate hikes in September and November, when inflation should have decelerated even further," he said.

 

Compared with June, core prices rose at a relatively modest 0.2%. That was the same pace as between May and June.

 

Prices for some items, including used cars and airline fares, dropped last month.

 

Many analysts are expecting costs for housing, which is weighted heavily in US inflation calculations, to start to ease in coming months, pointing to independent reports showing a slowdown in the growth in rental rates.

 

But a recent rise in fuel prices could mean it takes longer than hoped for inflation to ease its grip on the economy.

 

Though the prices remain lower than a year ago, the average national price for regular gasoline in the US jumped above $3.80 per gallon earlier in August, up from about $3.50 a month earlier, according to the motor club association AAA.

 

"The recent trend is encouraging and confirms that inflation is headed in the direction [the Fed] wants," said Wells Fargo economist Sarah House. "That said, we are cautious about getting overly excited."-bbc

 

 

Wegovy weight-loss drugmaker sees profits soar

The maker of weight-loss jabs Wegovy and Ozempic, Danish pharmaceutical giant Novo Nordisk, has reported a sharp rise in profits on the back of surging demand for the drugs.

 

Net profits were 39.2bn kroner (£4.5bn) for the period from January to June, rising 43% from 27.5bn kroner a year earlier.

 

The firm's boss said it was serving "more patients than ever before".

 

Demand has been so strong the company is grappling with supply strains.

 

Wegovy - an obesity treatment that is taken once a week - tricks people into thinking they're already full, so they end up eating less and losing weight.

 

Famous personalities such as Elon Musk are among the reported users of the drug, which has captivated Hollywood and the public more widely since it was approved by regulators in the US in 2021.

 

Media reports have described Wegovy and Ozempic - a diabetes treatment with similar effects - as "miracle" drugs that will spark a "revolution" in weight loss.

 

On Wednesday, a new trial showed Wegovy has been proven to also reduce the risk of a stroke or heart attack.

 

The firm hailed it a "landmark trial", saying it would change the way obesity is regarded and treated.

 

The company also said it was lifting its annual profits and sales forecasts.

 

"The growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before," said boss Lars Fruergaard Jorgensen.

 

Wegovy was approved for NHS use earlier this year after research suggested users could shed more than 10% of their body weight.

 

But in trials, users often put weight back on after stopping treatment.-bbc

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


Padenga

EGM

Royal Harare Golf Club

August 16 – (10am)

 


Border Timbers

EGM

4 – 12 Paisley Road, Southerton, Harare, or virtually :https://escrowagm.com/eagmZim/Login.aspx” 

August 18 – (10am)

 


zIMBABWE

 

2023 harmonised elections

August 23

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <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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