Major International Business Headlines Brief::: 17 August 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 17 August 2023 

 


 

 


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

 


 

 


 

ü  Kenya: Employee Allowances to Be Included in Housing Tax

ü  Uganda Seeks Alternative Markets Following Kenyan Milk Ban

ü  Kenya: Whitman Says U.S.-Kenya Bilateral Trade Pact to Be Concluded By
End of Year

ü  Uganda: South Sudan, Uganda Yet to Resolve Captured Grains

ü  Uganda: Govt Eyes Tough Options Amid World Bank Cuts

ü  Uganda Airlines Launches Mobile App to Transform Passenger Experience

ü  Kenya's Tourism Earnings Surge 32pc to Sh116.2 Billion

ü  Ghana Records Gh¢ 4.5 Billion Trade Deficits in 2022 - GSS Report

ü  Ghana: Petrol, Diesel Prices to Increase Averagely By About 5.7 Percent -
Copec

ü  Ghana: FBNbank Ghana Opens Tema General Branch

ü  Kenya: Uproar Among Kenyans Over Petition Seeking Tiktok Ban in the
Country

ü  Uganda: Digital Number Plates Too Costly - Drivers

ü  Wage surge raises prospect of further interest rate hike

ü  Japan economy gets major boost from weak currency

ü  Target sales suffer after Pride month backlash

 


 

 


 

 <https://www.cloverleaf.co.zw/> Kenya: Employee Allowances to Be Included
in Housing Tax

Nairobi — Employee allowances will now be included in housing tax deductions
following a new directive from the Kenya Revenue Authority (KRA).

 

KRA yesterday directed employers to factor in staff allowances when
calculating final taxes for houses.

 

Such allowances were not included in the 2023 draft Finance Bill for the new
housing tax law.

 

"Gross monthly salary" constitutes basic salary and regular cash
allowances," KRA said.

 

"This include housing, travel or commuter, car allowances and such regular
cash payments and would exclude those that are non-cash as well as those not
paid regularly such as leave allowance, bonus, gratuity, pension, severance
pay or any other terminal dues and benefits."

 

In June, the National Assembly ratified the controversial Finance Bill of
2023, which sought to introduce a three percent housing tax on employers and
employees.

 

While employees were to be deducted 1.5 percent from their salaries to fund
housing programs, employers were to match the amount.

 

Tax on gross pay means that the taxman will net more money to actualize its
ambitious housing project.

 

Government and private top officials who earn thousands of shillings through
allowances will bear the full brunt of the new order.

 

"All employees irrespective of their contract of service shall pay the
affordable housing levy," KRA said.

 

"Taxpayers paying housing levy under Section 31B of the Employment Act are
not eligible for Affordable Housing Relief under the Section 30A of the
Income Tax Act Cap. 470."

 

-Capital FM.

 

 

 

 

Uganda Seeks Alternative Markets Following Kenyan Milk Ban

In the wake of the recent ban imposed by the Kenyan government on Ugandan
dairy products, Uganda is now exploring alternative markets for its goods.
In an address to the press by State Minister for Animal Industry, Bright
Rwamirama, he highlighted Uganda's intent to diversify its trade avenues in
response to the ban.

 

The ban on Ugandan milk by Kenya has prompted Uganda to shift its focus away
from a market that has exhibited inconsistent behaviour. Minister Bright
Rwamirama expressed the country's decision to seek more stable markets,
citing Kenya's abrupt changes in trade policies.

 

Rwamirama, stated that Uganda is unwilling to invest efforts in a market
that is characterized by unpredictable shifts.

 

 

"We are not going to focus on a market whose stand changes like a storm,"
said Rwamirama

 

Rwamirama refuted allegations that Uganda exports substandard milk to the
Kenyan market suggesting that these claims are part of a deliberate strategy
by Kenya to hinder trade between the two nations.

 

"The allegations of Uganda sending low-quality milk to the Kenyan market are
baseless. This is a ploy by Kenya to frustrate the trade between the two
nations," stated Rwamirama firmly.

 

As Uganda prepares to host the upcoming 16th African Conference scheduled
for next month, Rwamirama's statement comes at a crucial time with the
conference expected to provide a platform for Uganda to enhance
technological advancements within the dairy industry.

 

Uganda aims to utilize this opportunity to bolster its capabilities and
promote the quality of its dairy products. The five-day conference is set to
include participation from countries within the East African Community (EAC)
and the Common Market for Eastern and Southern Africa (COMESA).

 

With the Kenyan ban prompting a strategic shift in trade strategies, Uganda
is determined to explore new avenues and strengthen its position in the
global dairy market.

 

 

 

Kenya: Whitman Says U.S.-Kenya Bilateral Trade Pact to Be Concluded By End
of Year

Nairobi — United States Ambassador to Kenya Meg Whitman has revealed that
the US-Kenya bilateral trade agreement is set to be concluded by the end of
the year as a pace setter for Africa.

 

Speaking at the Devolution Conference in Eldoret Uasin Gishu, Whitman stated
that the bilateral trade agreement between Kenya and the US will be a first
of its kind to be negotiated by the US government.

 

"We hope this bilateral agreement will be concluded by the end of the year
and it will be a model to the rest of the African continent once signed,"
she said.

 

The United States and Kenya held pre-negotiating discussions in February
this year and the first negotiating rounds in April 2023.

 

 

According to Whitman, the United States is highly interested in Kenya trade
investment climate.

 

"Kenya has attracted many foreign direct investments. It has received more
venture capital funding than anywhere else on the African continent," she
observed.

 

Whitman has advised that even if President William Ruto's administration has
made great strides in building a business-friendly environment for foreign
investors there is still room for improvement by addressing challenges that
come up.

 

"Kenya is the leading financial hub, it is the gateway to the East Africa
market because 80 per cent of the regional trade passes through Kenya
Mombasa port," she added.

 

Whitman further indicated that many central and international banks are in
the state capital city, Nairobi therefore making Kenya the number one
investment trade destination.

 

 

She has also called on Rutos administration to address challenges facing
Cargo and container clearance at the Mombasa port.

 

"Despite improving logistics, the delivery cost of a container to Kenya
remains significantly higher than container shipment landing in Europe and
Asia," she said.

 

Back in the year 2010 it took over 11 days to clear a container at the port
of Mombasa but to date the government established measures to ease the
process where now container clearance takes 3-4 days despite cargo
increasing over the past 5 years.

 

In July 2020, the United States and Kenya entered negotiations to seek a
high standard agreement that will also complement regional integration
efforts within the East African Community EAC and African Continental Free
Trade Area AfCFTA.

 

Kenya has already signed bilateral trade agreements with many countries
including China, India Congo (DRC), Djibouti, Rwanda and Tanzania.

 

-Capital FM.

 

 

 

 

Uganda: South Sudan, Uganda Yet to Resolve Captured Grains

Uganda still has to negotiate with the government of South Sudan for the
release of dozens of trucks that were impounded for containing grains
contaminated with aflatoxins.

 

In May, the government of South Sudan impounded 90 trucks from Uganda that
had crossed into its territory carrying grains, mostly maize, that were not
fit for consumption.

 

The trucks carried other foodstuffs such as beans, sorghum, cassava flour
and finger millet. Aflatoxins are a type of fungi that are found on
agricultural crops such as maize (corn). Exposure to aflatoxins is said to
increase the risk of liver cancer.

 

The Uganda National Bureau of Standards confirmed that some of the produce
in the Ugandan trucks had tested positive for aflatoxins.

 

"Traders dealing in the supply of the above commodities should comply with
the requirements of safety and quality standards and must seek certification
of such commodities from UNBS before putting them on both the domestic and
export markets," UNBS advised.

 

 

The capture of the trucks has created a trade standoff between the two
neighbours, with tensions cooling recently after South Sudan released 23
trucks in June. South Sudan promised to release the rest of the trucks in
the weeks ahead, but no formal announcement has been made on whether they
have been let go. Negotiations by the different trade bodies of the two
countries are ongoing.

 

Related Stories

 

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stronger

 

2023-08-09 - Kabaka Mutebi at 30: What can Uganda learn from him?

 

2023-08-09 - Uganda Baati launches Safal Eye in the Wild photo competition
2023

 

2023-08-09 - Circus involved in modern weddings sending couples to URSB
office

 

2023-08-09 - What closure of UN human rights office means for Ugandans

 

2023-08-09 - UNBS cannot enforce standards without trust and integrity

 

2023-08-09 - We shall go step by step - Villa boss Mandela

 

-Observer.

 

 

 

 

Uganda: Govt Eyes Tough Options Amid World Bank Cuts

Less than two months since Uganda's ministry of Finance released its annual
budget, the government body is reviewing those plans after the World Bank -
the country's biggest development partner - decided to stop any further
financial support to the country due to what they said was harsh legislation
against homosexuals.

 

In taking its decision, the World Bank pointed out that its "vision to
eradicate poverty on a liveable planet can only succeed if it includes every
one irrespective of race, gender, or sexuality. This law undermines those
efforts..."

 

The impact of the World Bank's decision is bound to be felt throughout the
economy - from posh homes to shanty shelters. The bank's decision has jolted
government to cut back on expenditures, whose money was expected to trickle
down to people at the bottom of the economic barrel.

 

"The budget which we [released for] financial year 2023/2024 had elements
which have been affected. We are still gathering ideas about what to do in
line with adjusting the budget but this will require your approval," Henry
Musasizi, the minister of state for Finance, told parliament last week in
the wake of the World Bank's decision.

 

 

The World Bank has supported Uganda to the tune of over $5 billion since it
began supporting Uganda more than 50 years ago. The bank has supported
Uganda in nearly all the critical areas of the economy, from agriculture,
roads, health and education, to energy plants.

 

A lot of the World Bank's money is interest-free, although the bank earns
from the appreciation of the dollar throughout the repayment period. Unlike
other credit lines, the World Bank's repayment period can even stretch up to
40 years. Other international funders prefer to have their money repaid
within 20 years or less, putting government on pressure to pay back.

 

For Uganda's, the World Bank's announcement leaves the country with four
painful decisions - cut back on expenditure, raise the tax rates, raid the
foreign exchange reserves at the central bank, or borrow domestically to
plug the gap created by the decision.

 

 

Already, Matia Kasaija, the finance minister, in June this year, announced
numerous budget cuts for different sectors as the country struggled to bring
down its debt level, which is just below the 50 per cent to GDP targeted
threshold for East African countries.

 

Critical sectors such as health - and departments like the cancer institute
in Mulago - had witnessed budget cuts as government tried to stay afloat.
The World Bank decision only worsens the situation as government is expected
to cut further its expenditure.

 

The second option is of government to raise the taxes on different
commodities. With this financial year already underway, no new tax measures
can be announced midway. But enforcement on tax collection and paying
penalties is bound to get tougher.

 

 

Government will have to wait for the next financial year to announce the new
tax rates. For a public that is already struggling to make ends meet, the
new tax rates could throw a large size of the population into a desperate
situation and financial difficulty.

 

The national poverty rate will be one of the key figures to watch out at the
end of the year. Raiding the foreign exchange reserves to take care of its
import bills is another option that government will likely consider.

 

That option presents government with another headache because the amount of
money at the central bank has gone down. The estimated stock of reserves at
the central bank had dropped to $3.6 billion (3.6 months of import cover) at
the end of March 2023, compared to $4.4 billion (4.7 months of import cover)
a year earlier.

 

Government also has the option of borrowing money from the domestic market
by issuing securities such as treasury bonds and treasury bills. The
domestic market, which is dominated by private commercial banks, are
expected to bid with a higher coupon rate (interest rate) on these
government securities since they know the kind of desperate situation
government is.

 

Should government accept the demands of the domestic market, this will crowd
out private sector credit, denying local businesses the much-needed
investment capital. In doing so, these companies will neither be able to
expand nor create new jobs. Already, private sector credit had declined in
the first quarter of 2023, with Bank of Uganda pointing to an increase in
commercial bank interest rates as the reason why.

 

The option of borrowing from the domestic market has the risk of raising
interest rates in the market because of the competition for the available
bank credit. The increase in interest rates is likely to be passed on to the
final consumer in the form of a spike in the prices of goods and services.

 

This will not only trigger a jump in inflation, it will also eat into the
disposal income and savings of the public. The idea of looking East to
countries such as China might sound easy, but even that comes with its
risks. A lot of credit from these countries comes with strings attached,
dangled with a carrot-and-stick package.

 

This credit tends to push Uganda to an unwanted corner, with the
ramifications being witnessed years later as a default on the loan becomes
clear.

 

In the end, regardless of which option government takes to plug the gap left
by the World Bank's decision at least one thing is clear: the public should
tighten its belt because it is going to be one long rough financial ride.

 

-Observer.

 

 

 

Uganda Airlines Launches Mobile App to Transform Passenger Experience

Uganda Airlines, the national carrier, has taken a significant leap into the
digital age with the official launch of its mobile app.

 

The event, graced by aviation enthusiasts, stakeholders, and the media,
showcased the airline's unwavering commitment to elevating the passenger
experience through modern technology.

 

The launch event, which took place in the heart of the capital city's
Sheraton Hotel, marked a pivotal moment for Uganda Airlines as it unveiled
its state-of-the-art mobile app.

 

This app promises to revolutionize travel procedures and provide travelers
with unparalleled convenience, right at their fingertips.

 

 

Jennifer Bamuturaki, the Chief Executive Officer of Uganda Airlines, hailed
the launch as a "key milestone" in the airline's journey towards enhancing
service delivery.

 

"The launch of the app means the customer is going to be able to seamlessly
book a ticket on the app, pay for the ticket, check-in, and print the
boarding pass," shared Bamuturaki.

 

She further explained, "Usually, the customer would have to call in the call
center to book a ticket, but now you will be able to interact with strictly
Uganda Airlines and also be able to choose when you want to fly and also
choose the flight."

 

The Uganda Airlines mobile app features an intuitive user interface designed
to simplify travel planning, booking, and itinerary management.

 

Offering an array of features, including real-time flight updates, flight
booking, check-in services, viewing personal flight details, and access to
digital boarding passes, the app aims to redefine the air travel experience.

 

 

Addressing the paramount concern of data security in the digital age, the
app boasts robust encryption and authentication measures to ensure the
safeguarding of passenger data.

 

Bamuturaki emphasized that the launch of the mobile app aligns with the
airline's overarching strategy of modernization and technological
advancement.

 

"Apart from the check-in, you will also be able to check the flight status,
the schedules, and the different prices," she added.

 

The Uganda Airlines mobile app is set to create more personalized and
efficient interactions with passengers while making air travel more
accessible and appealing to a diverse audience.

 

The app also saves passenger profiles, eliminating the need to repeatedly
input personal information.

 

As the aviation landscape evolves, industry officials underscored that the
introduction of the Uganda Airlines mobile app underscores the carrier's
commitment to being at the forefront of digital transformation.

 

By leveraging the capabilities of digital tools, Uganda Airlines aims to
enhance the overall travel experience and stay ahead in an era of
technological advancement.

 

The app, which is available for download on both the Google Play Store and
the iOS App Store, signals a new era of convenience and efficiency for
travelers.

 

 

 

 

Kenya's Tourism Earnings Surge 32pc to Sh116.2 Billion

Nairobi — Kenya earned a total of Sh116.2 billion from the tourism sector in
the first half of the year to June, buoyed by a rising number of arrivals.

 

This represented a 32 percent jump from Sh152.6 billion during a similar
period last year, according to the Kenya Tourism Board (KTB).

 

Arrivals from entry points such as the Jomo Kenyatta International Airport
(JKIA) and Moi International Airport in Mombasa, among others, went up from
642,861 to 847,810 in the review period.

 

"The tourism sector in Kenya experienced a remarkable upswing in
international arrivals leading to a positive effect on the country's tourism
receipts," KTB says in a new report.

 

 

"This performance is a 92% recovery when compared to 2019 performance of
929,814 arrivals same period."

 

Out of 847,810 visitors, a majority came from the United States of America
(118,480), followed by Uganda (89,968), Tanzania (69,777), the UK (65,563),
and India (42,805).

 

The purpose of the visits is topped by a holiday, followed by business
meetings and conferences, visits to family and friends, transit, education,
and religious reasons.

 

Local tourism was impacted by Covid-19 lockdown measures such as flight bans
and border closures that saw hotels shut down.

 

Loosening of restrictions in 2021 helped rebound the sector, albeit
incomparable with pre-coronavirus times.

 

"The tourism sector in Kenya experienced a remarkable upswing in
international arrivals leading to a positive effect on the country's tourism
receipts," KTB added.

 

-Capital FM.

 

 

 

 

Ghana Records Gh¢ 4.5 Billion Trade Deficits in 2022 - GSS Report

The value of Ghana's total exports in 2022 stood at GH¢144.1 billion and
total imports at GH¢148.6 billion, creating a trade deficit of GH¢4.5
billion.

 

This is contained in the Ghana Statistical Service (GSS) maiden 2022 Trade
Vulnerability Report.

 

The report which collected the 2022 trade data highlighted Ghana's major
trading partners and the products the country exports.

 

It said four commodities, namely gold bullion, crude petroleum, cocoa beans,
cocoa paste, constituted about three quarters (75.0 per cent) of all 2022
exports.

 

 

"Four countries, Switzerland, China, Canada and South Africa account for
over half (50.0 per cent) of all exports and China, United Kingdom,
Netherlands, USA, India and Switzerland were the source of about half (50.0
per cent) of all imports," it said.

 

Speaking at the launch, the Government Statistician, Professor Samuel K.
Annim, said gold and crude oil constituted two-thirds of Ghana exports in
2022 to Switzerland, China, Canada and South Africa, adding that Ghana
exported to 161 countries while it imported from about 209 countries.

 

He said 48.1 per cent of gold exported last year went to Switzerland, while
South Africa took 24.8 per cent and India 21.4 per cent and the rest to
United Arab Emirates and other countries.

 

Prof. Annim said more than 75 per cent of the country mineral fuel and oil
export last year went to China, Canada and Italy, with China taking 38.1 per
cent of the mineral fuel and oil exports, Canada 33.0 per cent, Italy 6.9
per cent, United Arab Emirates 5.8 per cent and the rest to countries like
Spain, Malaysia.

 

 

For cocoa, he said half of the exports last year went to Netherlands, United
States of America and Belgium with Netherlands taking 27.6 per cent of the
trade, United States of America 12.7 per cent and Belgium 9.7 per cent.

 

In Africa, he said about 80.6 per cent of the country's exports went to
South Africa (51.3 per cent), Burkina Faso (15.7 per cent), Cote d'Ivoire
8.2 per cent) and Togo (5.4 per cent).

 

Prof. Annim touching on imports, said 50 per cent of Ghana's imports in 2022
came from China, United Kingdom, United States of America, Netherlands,
India and Switzerland.

 

He said almost two-thirds (63.3 per cent) of Ghana's import from Europe were
from the United Kingdom (34.2 per cent), the Netherlands (19.2 per cent) and
Switzerland (9.9 per cent), adding that two countries constituted almost
two-thirds (62.1 per cent) of imports from China, namely China (47.7 per
cent) followed by India at 14.4 per cent.

 

"Within Africa, South Africa is the main import trading partner, with almost
a quarter (23.8 per cent) of the total value of imports from African
countries followed by Egypt (14.3 per cent).

 

Associate Professor at the University of Ghana Institute of Statistical,
Social and Economic Research, Prof. Charles Godfred Ackah, who chaired the
programme said the report would provide data for planning on the country's
exports and imports.

 

He entreated the government to provide tax incentives and support the
private sector to produce to feed the local economy and the international
market.

 

The President of the Association of Ghana Industries, Dr Humphrey Ayim
Darke, lauded GSS for the report, stressing that the report had confirmed
all that AGI was asking to promote industrialisation of the country.

 

-Ghanaian Times.

 

 

 

 

Ghana: Petrol, Diesel Prices to Increase Averagely By About 5.7 Percent -
Copec

Prices of petrol and diesel are likely to increase averagely by about 5.7
per cent over the current mean price of GH¢12.45 per litre, beginning today
for the next two weeks.

 

The price of Liquefied Petroleum Gas is also expected to go up by about 11.9
per cent.

 

According to the Chamber of Petroleum Consumers (COPEC), the expected
increase was due to the 11.00 per cent rise in prices of finished products
on the international market, and the about 6.79 per cent surge in the price
of

 

crude oil, even though the forex or dollar exchange rate had relatively
decreased from a previous average of GH¢11.7185 to GH¢11.4538 (-2.26%) per
$1.

 

 

All pump prices are expected to be within (±5 per cent) error margin of
COPEC's prediction.

 

With the new prices, petrol is expected to sell at GH¢12.97 per litre on the
average, while diesel will go for GH¢13.43 per litre.

 

The 14.5 kilogramme LPG cylinder is expected to sell at GH¢178.36 within the
window.

 

Commenting, the Executive Secretary of COPEC, Duncan Amoah, urged the
government to reduce taxes on LPG or to subsidise the price of LPG to
promote its nationwide accessibility and usage, which would eventually help
save the environment.

 

Additionally, COPEC advocated reduction or take-off of some of the fuel
taxes to lessen the burden on consumers.

 

The total taxes and levies are about 25 per cent of the retail prices of
petrol and diesel

 

-Ghanaian Times.

 

 

 

 

Ghana: FBNbank Ghana Opens Tema General Branch

FBNBank Ghana has opened a new branch in Community 6 on the Tema General
Hospital Road.

 

The new branch, which is the bank's 24th footprint, is specifically designed
to cater for individual, commercial and corporate clients, some of whom are
in Tema and its environs.

 

This new branch is expected to attend to the needs of Small Medium
Enterprises (SMEs) and retail businesses in that catchment area.

 

The branch will also offer premium banking, which aims to deliver priority
service, comfort, security, luxury, and easy access to financial advisory
services to the bank's customer segment.

 

 

Mr Victor Yaw Asante, Managing Director and Chief Executive Officer of
FBNBank, speaking at the opening, said, "The opening of this branch is in
line with the bank's agenda to improve our network to be able to offer a
full range of services to our customers and clients. We will continue to get
closer to our customers, clients as well as prospects and develop customised
products and services to suit their needs. By this, we bring alive our brand
mantra of putting our stakeholders first."

 

"This is FBNBank Ghana's third physical touchpoint in Tema, having a branch
already situated at the Community One Market Square and an Agency at Ghana
Ports and Harbours Authority (GPHA), adjacent the revenue Centre near the
Long Room, also in Community One,"

 

He said, "This new branch will expand the bank's network to customers and
residents in other parts of Tema, especially the residential enclave, and
support the bank's efforts to continue to offer world class banking services
which deliver our Gold Standard of value and excellence and put our
customers at the heart of what we do."

 

-Ghanaian Times.

 

 

 

Kenya: Uproar Among Kenyans Over Petition Seeking Tiktok Ban in the Country

A cross section of Kenyans have called not to ban social media platform
Tiktok following a petition tabled in parliament.

 

Those who spoke to Capital FM News Wednesday argued that the government
should instead put in a place a regulatory framework to govern the platform
especially on explicit content.

 

They further observed that the social media platform has for a long time
been a source of livelihoods for most people devoid of age differences.

 

"Let them put rules to govern Tiktok. That's the way to go. This app helps a
lot of people earn a living," Jackline Mwende stated.

 

 

They argued that Tiktok is their only refuge after failing to get jobs from
what they say is a saturated market.

 

"The government should give us jobs if they want to ban Tiktok. We don't
have other jobs to do. Tiktok is the only job," George Ogutu said.

 

Already there seems to be a difference in opinions in parliament as
legislators pull from different directions.

 

Kakamega Senator Boni Khalwale says that parents should instead deny their
children access to mobile gadgets as a way of mitigating them from getting
their eyes on the obscene content ion Tiktok.

 

"Kenya does not have its own unique locus on the internet, which
parliamentary legislation can ring fence and lock. If you don't like Tiktok,
deny your kids access to a smartphone or computer, "posted Khalwale on his X
app account.

 

National Assembly Speaker Moses Wetangula on Tuesday acknowledged receipt of
the petition from petitioner Bob Ndolo, an executive officer of the Briget
Connect Consultancy which cited explicit content and lack of privacy among
others.

 

"The content that is being shared on the platform is inappropriate thus
promoting violence, explicit sexual content, hate speech, vulgar language,
offensive behavior which is a serious threat to the cultural and religious
values of Kenya," Wetangula said, quoting the petition.

 

The petitioner, Wetangula said, avers that in Kenya, the internet
application is not regulated by the Communications Authority of Kenya
leading to the failure to remove or block content that is offensive

 

-Capital FM.

 

 

 

Uganda: Digital Number Plates Too Costly - Drivers

In 2018, President Yoweri Museveni officially issued a directive authorizing
the Russian firm, Joint Stock Company Global Security, to execute a
compulsory digital surveillance system.

 

This system, designed to monitor all motor vehicles, motorcycles, and other
vessels within the jurisdiction of Uganda, requires an electronically
activated device to be affixed to each motor vehicle.

 

This initiative was not merely an isolated decision but a component of
President Museveni's comprehen- sive 10-point security measures. This
measure was formulated in response to a marked increase in gun violence
within the nation, a crisis that tragically resulted in the loss of several
Ugandan lives.

 

 

Notably, these heinous crimes were often perpetrated by individuals
utilizing motor vehicles and motorcycles, thereby necessitating a concerted
and technology-driven response. Codenamed "Intelligent Transport Management
System" (ITMS), the project took shape on July 23, 2021, when a 10-year
agreement was signed for the provision of this digital monitoring and
tracking system.

 

The Russian firm will implement the deal in partnership with the National
Enterprise Corporation (NEC). According to Gen Jim Muhwezi, the minister of
Security, the project will roll out on October 31, 2023.

 

Last week, the ministry of Works and Transport revealed on their website
that new vehicle and motorcycle owners would pay Shs 714,000 for the digital
number plates, while already registered users would be required to pay Shs
150,000 and Shs 50,000 for vehicles and motorcycles, respectively.

 

 

Winston Katushabe, the commissioner for Transport Regulation and Safety at
the ministry of Works and Transport, stated that the government would
receive a share of the non-tax revenue generated over the 10-year period.
The financial model, covering the total investment of the ITMS, including
the sale of number plates and traffic fines, informed the pricing of the new
digital plates.

 

"Even when it was not a security issue, the government had already started
initiating a new regime of replacing these number plates. Here we have a
total solution where the number plate has a tracker for security purposes,"
Katushabe explained.

 

Susan Kataike, the spokesperson for the ministry of Works and Transport,
confirmed that the company is ready to produce the first number plates by
October 31. The government has allocated land to the Russian company for
their offices, and construction is underway.

 

"The exercises would have started in March with the registration of
government vehicles; however, we were not ready. What you need to understand
is that it is a new technology, a new system which will be integrated into
the entire transport system," she told The Observer.

 

Reactions to the digital number plates were mixed. Some, like Ashadu
Kyambadde, a driver with over 50 years of experience, praised the benefits
to security organisations, saying it would allow for tracking vehicles and
individuals involved in crimes. Others expressed concern over the costs.

 

Michael Meneza, a driver and businessman, argued that the digital number
plates should be free of charge for those with old plates and that the cost
for new ones was unfair. Concerns were also raised about the lack of
government sensitization regarding the digital number plates and skepticism
about their effectiveness in the fight against crime.

 

Hakim Ddungu suggested that the government should engage with different
stakeholders in its plan to introduce digital number plates.

 

"This is a money-making venture for the government. We paid for these old
number plates; why should we pay for what we already paid for? The
government should engage us in a program, ask us to pay a service fee for
exchanging these number plates, but not just issue orders," John Kasumba
said.

 

He also proposed favourable programs, such as a payment plan and a grace
period of about one year, for people to pay for the new plates.

 

-Observer.

 

 

 

Wage surge raises prospect of further interest rate hike

Wages grew at a record annual pace in the April to June period, according to
new official figures.

 

Regular pay rose by 7.8%, the highest annual growth rate since comparable
records began in 2001.

 

The stronger-than-expected increase has fuelled forecasts the Bank of
England will be forced to raise interest rates again to calm inflation.

 

Inflation - which measures the rate at which prices rise - has eased but
remains high at 7.9%.

 

Darren Morgan, director of economic statistics at the Office for National
Statistics, which released the wage and employment data, said the latest
figures suggested real pay growth, which takes into account the rate of
inflation, is "recovering".

 

Prime Minister Rishi Sunak said there was "light at the end of the tunnel"
for the millions struggling with the cost of living.

 

However, wage growth is not quite outstripping the pace of price rises. Mr
Morgan told the BBC's Today programme that real pay growth was "still
falling a little", dropping by 0.6%.

 

Labour's shadow work and pensions secretary Jonathan Ashworth said: "These
figures confirm once again that the Tories are failing working people and
businesses across Britain."

 

New inflation figures are due out on Wednesday and analysts expect them to
show price growth slowed again during July to between 6.7% and 7%.

 

However, that remains far higher than the Bank of England's target to keep
inflation at 2%. Stronger wages will stoke concerns that price rises will
take longer to ease.

 

Sushil Wadhwani, a former member of the Bank's rate-setting Monetary Policy
Committee, said financial markets were projecting that an interest rate rise
at the next meeting in September was a "virtual certainty".

 

Markets are also forecasting that interest rates could now peak at 6% from
5.25% currently. Just a few days ago, rates were expected to peak at around
5.75%.

 

Mr Wadhwani, who serves on the chancellor's Economic Advisory Council, said:
"The key thing is how much does the Bank need to encourage the process by
raising interest rates further and I would argue that today's news is
disappointing in the sense that it implies that the Bank has more work to
do."

 

Firms fight back with new pay offers to keep staff

Five tips when asking for a pay rise

Why is UK inflation so high?

There are signs in the ONS's data that the UK jobs market is weakening. The
unemployment rate rose from 4% to 4.2%, while the number of people in jobs
ticked lower.

 

"The fall in employment in the three months to June and further rise in the
unemployment rate will be welcomed by the Bank of England as a sign labour
market conditions are cooling," said Ruth Gregory, deputy chief UK economist
at Capital Economics.

 

However, she added, given that wage growth is still accelerating, she
expects the Bank of England to increase its key interest rate again to 5.5%.

 

Commenting on another potential rise in interest rates, Mr Sunak said it was
a matter for the Bank. But he added: "The best way to be able to bring
interest rates down and stop them going up is to bring inflation down."

 

Chart showing wage growth and prices growth

Annual average pay growth in the private sector continued to outpace the
public sector at 8.2%. Wages in the public sector grew at an annual pace of
6.2% between April and June.

 

The number of vacancies in the UK jobs market fell again, down 66,000
between May and July. However, there are still more than one million
vacancies.

 

Finding enough people to fill vacancies is one of the biggest business
barriers facing Candice Mason, the owner of Masons Minibus & Coach Hire in
Hertfordshire.

 

"It is just dire," she told the Today programme. "It is not just me, it is
every operator that I speak to, we just cannot recruit and staff our
companies properly."

 

Ms Mason said the company had increased its wages to fill shifts left by
employees who, following Covid lockdowns, decided they wanted a better
work-life balance and therefore are working fewer days.

 

"But, of course, that created a bigger gap of needing to recruit anyway,"
she said. "It honestly has just been relentless since we came out of
lockdown. It is the most difficult part of the business at the moment."

 

Triple lock

The wage figures are likely to intensify political debate over next year's
rise in the state pension, which is governed by the so-called triple lock.

 

Government policy means the state pension rises the following April in line
with either average wage growth, the inflation rate or 2.5% - whichever is
higher.

 

It is based on wage growth between May and July, which the ONS will release
next month. The inflation figure for August is also used to decide pension
payments. This is released in September.

 

The latest set of figures signal that wage growth remains relatively high
and rising. That is likely to prompt discussion over the potential increase
in the state pension, and the allocation of government spending.

 

Pensioner groups say the state pension remains relatively low compared with
some other countries.

 

The employment data also showed that the rate of those considered
economically inactive edged lower to 20.9% between April and July.

 

Economically inactive people are those aged between 16 and 64 who are not
looking for work.

 

Numbers swelled during the Covid pandemic. The ONS said on Tuesday that the
number of people who were inactive because of long-term sickness had
increased to a record high of 464,225.

 

But the overall rate dipped because more people shifted out of being
economically inactive and into unemployment.

 

These are people who have been searching for work over the past four weeks
or are available to start a job within the next fortnight.-bbc

 

 

 

 

Japan economy gets major boost from weak currency

Japan's economy grew much faster than expected in the three months to the
end of June as the country's weak currency boosted exports.

 

The world's third largest economy saw its Gross Domestic Product (GDP) rise
by an annualised 6% in the period.

 

It is about twice the rate of growth forecast by economists and marks the
biggest rise in almost three years.

 

The fall in the value of the yen helped exporters as Japanese-made goods
became cheaper for consumers around the world.

 

Japan's currency has fallen sharply against major currencies in recent
months and is down by more 10% versus the US dollar this year.

 

"The weak yen is behind the positive GDP numbers," Fujitsu's chief economist
Martin Schulz told the BBC.

 

GDP is one of the most important tools for looking at how well, or badly, an
economy is doing.It helps businesses judge when to expand and hire more
people, and it lets government work out how much to tax and spend.

 

Profits at the country's car makers - including Toyota, Honda and Nissan -
have been boosted in recent months as they saw increased demand for exports.

 

While a weak currency makes what the country imports more expensive, prices
of commodities on global markets, like oil and gas, have fallen in recent
months.

 

That has resulted in a drop in the value of imports, down 4.3% from the
previous quarter, which EY's Nobuko Kobayashi called "a major culprit for
GDP growth".

 

Japan's economy has also been helped by a rise in tourist numbers after the
government lifted border restrictions at the end of April.

 

As of June, the number of foreign visitors to Japan had recovered to more
than 70% of pre-pandemic levels, according to the country's national tourism
authority.

 

Spending by tourists is also expected to give the country's economy an even
bigger boost from this month after China lifted a ban on group travel.

 

Before the pandemic Chinese visitors accounted for more than a third of
tourist spending in Japan.

 

That is helping to offset the impact of the slowing recovery of consumption
in the country itself after the pandemic.

 

"The main difficulty for Japan's second half is, however, that the domestic
economy is cooling," Mr Schulz said.

 

According to Marcel Thieliant of Capital Economics, the details of the data
"weren't as impressive as the headline."

 

He highlighted a number of issues including a fall in private consumption,
which makes up more than half of Japan's economy.

 

Japanese workers have seen their pay go up at the fastest rate in 28 years
but with inflation hovering near a four-decade-high wages have been falling
in real terms for well over a year.-bbc

 

 

 

Target sales suffer after Pride month backlash

US retail giant Target saw sales fall in-store and online for the first time
in years after a backlash over its Pride Month offering.

 

Sales dropped 5% in the April to June period compared with the same time
last year - its first fall in six years.

 

The decline followed controversy over some of the firm's LGBTQ Pride
merchandise.

 

It later removed items from some stores over concerns about staff safety.

 

Target's chief executive Brian Cornell said the decline in sales also
reflected the fact shoppers budgets' are being squeezed as the cost of
living remains high.

 

The firm said the impact of those forces was difficult to separate from
other issues, such as the calls for a boycott over its Pride month range.

 

It saw damage to in-store displays and the clothing merchandise, which
included a wide selection of items, including t-shirts decorated with
rainbows, "gender fluid" mugs and children's books titled "Pride 1,2,3" and
"I'm not a girl".

 

It ultimately removed certain items from the 2,000-piece collection. A
number were from a collaboration with transgender designer Erik Carnell's
Abprallen label, which faced criticism for items, sold elsewhere, featuring
images of pentagrams and horned skulls.

 

The firm's decision to remove the items, which it made citing employee
safety, prompted further outcry from Target customers who celebrate Pride.

 

Speaking as the firm provided investors with a quarterly update, Mr Cornell
said the firm planned to approach future partnerships with caution, while
still celebrating "heritage moments".

 

"As we navigate an ever-changing operating and social environment, we are
applying what we learned," Mr Cornell said.

 

Target removes some LGBTQ products after threats

Mr Cornell said Target had seen sales start to pick up again in July, after
the sharp drop in June.

 

But executives forecast weaker performance than previously anticipated for
the rest of the year, in part because of concerns about the impact on buyers
as a pandemic-era halt to student loan payments finally expires.

 

Target is the latest US company to face costs as LGBTQ issues increasingly
become a political flashpoint. Disney and Bud Light are among the other
brands who have faced similar customer boycotts and backlash.

 

Its report also offered a somewhat gloomy perspective on the health of the
American consumer, whose robust spending until now has been credited with
helping the world's largest economy defy predictions of a downturn.

 

Target said buyers were cutting back on items such as clothing and home
decor, as rising prices force people to direct more of their monthly budgets
to staples such as groceries.

 

The report's weaker than expected sales contrasted with other recent
indicators which showed resilient consumer spending.

 

A day earlier, the Commerce Department reported that retail sales rose 0.7%
from June to July, greater than expected.

 

Those figures were boosted by a jump in online sales, which coincided with
Amazon's annual Prime Day sales event.

 

Despite the sales fall, Target shares rose more than 6% in early trade,
reflecting stronger profits than investors had expected.-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 

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


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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