Major International Business Headlines Brief::: 18 August 2023

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Major International Business Headlines Brief::: 18 August 2023 

 


 

 


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

 


 

 


 

ü  Nigeria: Economy - Nigeria in Trouble, Help Yourselves, Nigerian Governor Tells Residents

ü  Kenya, Germany Collaborate to Enhance Skilled Labor and Agricultural Sectors

ü  Nigeria: Oil Theft Triggered $10.7m Daily Loss From 2009 to 2020 - NEITI

ü  Kenya: Odinga Urges Counties to Focus on Programs That Will Create Jobs

ü  Nigeria Ends Oil Subsidy to Invest Savings in Infrastructure Development

ü  Kenya Breweries Limited, Muranga County Sign Sorghum Farming Deal

ü  South Africa: Security Workers Protest in Boksburg Over Unpaid Wages

ü  Ethiopia: News - Recent Conflict in Amhara Causes 2.5 Billion Birr Loss, Job Cuts As Industries Suffer Damages

ü  Kenya: Employee Allowances to Be Included in Housing Tax

ü  Uganda: Fintechs Help Drive Up Bank Accounts to 23 Million

ü  Evergrande: China property giant files for US bankruptcy protection

ü  Shop sales drop in July as rain dampens demand

ü  Cash, cars and homes seized in $735m Singapore anti-money laundering raids

ü  After McDonald's, Burger King India drops tomatoes from its menu

 


 

 


 

 <https://www.cloverleaf.co.zw/> Nigeria: Economy - Nigeria in Trouble, Help Yourselves, Nigerian Governor Tells Residents

The federal government on Thursday announced N5 billion palliative to each of the 36 states to cushion the effect of the removal of petrol subsidy.

 

Governor Godwin Obaseki has called on residents of Edo State to help themselves by contributing to the development of the state, saying that the federal government has thrown the country into an economic crisis.

 

"The country is in crisis economically. We can't continue to fold our hands and wait for a country that can't help us. Rather, we will do all we can to help ourselves and our state," Mr Obaseki said on Thursday in Benin at a workshop to discuss the implementation of the state's new Land Use Charge Law, according to a statement forwarded to PREMIUM TIMES by Crusoe Osagie, the special assistant on media project to the Edo State Government.

 

 

President Bola Tinubu's reforms - removal of petroleum subsidies and forex exchange liberalistaion - have continued to push up the price of goods and services in Nigeria, with the high inflation rate and the economic hardship causing unease across the country.

 

The Edo State Governor, Mr Obaseki said the state government has resorted to "taking care of those who can't feed themselves" in the state.

 

"From our revenue, we have decided to take money from our Internally Generated Revenue to look after those that can't feed - the poorest of the poor. We are doing our best as an administration to make things easy in Edo State for our citizens who have trust in this government," the governor said.

 

"If we are a truly thriving country, states will survive on their own, without relying on Abuja. Whether they give us or not, we would survive as a state. We have been surviving before now. Our administration is transparent and accountable, that is why the World Bank trusts us."

 

Workers' unions have kicked against the Nigerian government's reforms, while Mr Tinubu has continued to appeal for understanding and calm, arguing that his actions are for the good of the country.

 

The federal government on Thursday announced N5 billion palliative to each of the 36 states to cushion the effect of the removal of petrol subsidy.

 

-Premium Times.

 

 

 

 

Kenya, Germany Collaborate to Enhance Skilled Labor and Agricultural Sectors

Nairobi — In a strategic move aimed at bolstering skilled labour, boosting the agricultural sector, and fostering stable political ties, National Assembly Majority Leader Kimani Ichungwah engaged in a productive meeting with German Ambassador to Kenya Sebastian Groth at the parliament.

 

The discussions centered around the mutual benefits of collaboration between the two nations, focusing on Kenya's Technical and Vocational Education and Training (TVET) centers, the agricultural industry, and political stability.

 

TVET Enhancement and Skilled Labor Export to Germany

 

One of the key topics of the meeting was the enhancement of Kenya's TVET centers to meet the demands of the German labor market. Germany is currently in need of approximately 400,000 skilled laborers annually, and Kenya has emerged as a promising partner in fulfilling this demand. The leaders agreed that improving the quality of TVET education would provide a steady stream of competent human resources for Germany's labor market.

 

 

To facilitate this process, 60 TVET centers will be selected for comprehensive enhancements, aligning their curriculum with the requirements of various industries in Germany. The teaching of the German language will also be prioritized, as proficiency in the language is crucial for seamless integration into the German workforce.

 

Kenya has emerged as one of the six countries on Germany's radar for skilled labor market collaboration. The partnership is set to benefit both nations, with Kenya gaining the opportunity to address unemployment by channeling its skilled workforce towards international opportunities, while Germany meets its labor demands efficiently.

 

 

Agricultural Sector Boost through Value Addition

 

Recognizing the importance of Kenya's agricultural sector, the leaders discussed strategies for boosting value addition in key areas such as coffee, tea, and dairy. By focusing on processing and refining these products within the country, Kenya aims to increase its export potential and generate higher value from its agricultural resources. This collaboration holds the promise of creating additional job opportunities within the agricultural value chain while enhancing the country's economic resilience.

 

Political Stability and Bilateral Relations

 

Ambassador Sebastian Groth emphasized the significance of a stable political environment in nurturing strong diplomatic ties between the two nations. He expressed Germany's keen interest in Kenya's political stability, acknowledging Kenya as a reliable and steady partner. This alignment in values is expected to pave the way for increased cooperation in various sectors, including trade, education, and technology.

 

-Capital FM.

 

 

 

Nigeria: Oil Theft Triggered $10.7m Daily Loss From 2009 to 2020 - NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) on Wednesday said, Nigeria lost over 619.7 million barrels of crude oil valued at $46.16 billion or N16.25 trillion from 2009 to 2020 from theft and sabotage, amounting to losing over 140,000 barrels of crude valued at $10.7 million daily.

 

It added that the total revenue earnings of $741.48 billion to the government came from the oil and gas sector and N635.3 billion from the solid minerals sector between 1999-2020 and 2006-2020 respectively.

 

This was revealed when it held a stakeholders' roundtable for the final approval of the 2021 Industry Oil, Gas and Solid Minerals Reports before their release to the public.

 

 

At the forum in Abuja, the executive secretary of the organisation, Dr. Ogbonnaya Orji, noted that, in the absence of a board, the meeting was to get the nod of other stakeholders after the independent administrators submitted the documents.

 

The global Extractive Industries Transparency Initiative (EITI) Standard which provides guidance for NEITI's operations, requires that the Multi Stakeholders Group (MSG) which oversees the EITI reporting process and implementation in countries approve the industry reports produced before they are released to the public.

 

Orji recalled that so far, NEITI has conducted a total of 13 cycles of reconciliatory reports in the oil and gas sector and 11 cycles of reports in the solid minerals sector.

 

He reiterated that NEITI had reported on subsidy payments from the years 2005 to 2021 and its huge negative consequences to the nation.

 

 

In these reports, he noted that, it was revealed that Nigeria had spent $74.39 billion which translates to N13.7 trillion, with an average of N805.7 billion annually, N67.1 billion monthly or N2.2 billion daily.

 

"After extensive consultation with the international secretariat, it was agreed that representatives of Companies, Civil Society, Media and Government should be invited to review, deliberate and approve the reports.

 

"This is not the first time we are adopting this approach as you will recall that we had a similar experience when approving the 2019 Industry Reports immediately after my assumption of office. We had no Board then."

 

"The global EITI gave Nigeria waiver and approved that NEITI should convene a multi stakeholders' roundtable to review and approve the release of the reports," he stated.

 

In the reports expected to be officially made public latest by next month, he said the oil, gas and mining industries covered a total of 69 companies and 12 government agencies and one state-owned enterprise, while a total of 1214 companies with three government agencies were covered in the report of the solid minerals sector.

 

The objectives of the reports, Orji said, where to establish the quantities of minerals produced and utilised in the country.

 

Besides, he stated that the reports also sought to establish the revenue paid by oil, gas and mining companies and how much of such revenues were actually received into government coffers.

 

Other areas of focus by NEITI, Orji noted, are to identify investments made by the federation or the federal government in the oil, gas and mining industries, track subsidy payments, company remittances and liabilities.

 

"The processes followed especially on the basis for computation and remittances of all revenues payable to the government such as taxes, royalties and rents are equally of interest to NEITI.

 

"We hope that after this review and approval process, the independent auditors who are part of this meeting will in collaboration with the NEITI staff reflect your comments, observations and remarks in the reports before they are finalised and released.

 

"Our immediate priorities are: to release the 2020-2021 Oil, Gas and Mining Reports and the Fiscal Allocation and Statutory Disbursement reports. This is consequent upon the approval we seek today from you and to conduct the 2022-2023 industry reports in the oil, gas and mining sector," he stressed.

 

The stakeholders present were mainly drawn from the government, civil society organisations, extractive industries operators and regulatory agencies.

 

-Leadership.

 

 

 

Kenya: Odinga Urges Counties to Focus on Programs That Will Create Jobs

Nairobi — Opposition leader Raila Odinga has urged County governments not to charge extra levies but instead focus on investing in programs that will create jobs and put money in people's pockets.

 

Addressing the Devolution Conference held in Eldoret, Uasin Gishu county on Thursday Odinga has called upon county governments to be their own models of creativity and innovations.

 

"Do not copy how the national government is practicing devolution, do it in your own way, be your own model," he said.

 

The opposition leader says Instead of the county governments increasing charges for services delivered to the people they should focus on investing in development projects that will support economic growth by creating job opportunities especially for the jobless youths.

 

 

"County governments should not increase charges for services they provide in order to gain more revenue but work compassionately on projects that generate money, build roads for your people and this will give you great return," he stated.

 

The former prime minister has also encouraged county governments to allocate more funds in the cash transfer program to cushion the poor during tough economic periods adding that the controller of Budget and the central bank of Kenya need to re-examine the law concerning County Allocation Acts which contains a disbursement schedule.

 

"The National Treasury does not need to write a letter to the Central Bank of Kenya (CBK) to disburse funds to county governments," Odinga said.

 

Odinga has revealed that Kenya has marked a great milestone since devolution started over 10 years ago adding that the country now is a much-transformed landscape with amazing opportunities for rural economic revival.

 

"There is now economic transformation in rural areas and some previously dead towns and market centers are beaming with life after devolution," he said.

 

Odinga has further pointed out that a new number of middle-class people whose members have not stepped foot into any large city in Kenya is rising across the country all thanks to Devolution.

 

"Kenya made the best choice by endorsing devolution 13 years ago even if it was not an easy victory," Odinga revealed.

 

This is the 8th Devolution Conference attended by the former prime minister Raila Odinga Since devolution started.

 

-Capital FM.

 

 

 

Nigeria Ends Oil Subsidy to Invest Savings in Infrastructure Development

The new administration maintains that ending the subsidy will aid climate action and fund transportation and energy investments

 

Without the subsidy, Nigeria could conserve more than 15 million tonnes of CO2 each year.

 

"The fuel subsidy is gone," said Nigeria President Bola Tinubu, in his inaugural address on 29 May 2023. "The subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead rechannel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions."

 

The president's pronouncement prompted a spike in the pump price of petrol from about ₦780 a gallon (approximately $1) to ₦2160 a gallon ($2.80), driving up the overall cost of living in the country.

 

Organized labour threatened a nationwide strike if the government failed to reverse itself as former president Goodluck Jonathan did in 2012, when he tried to end subsidies. But after negotiations with the Tinubu administration, the unions reneged on their threat.

 

 

A spotlight on subsidies

 

Before President Tinubu's inauguration, the Nigerian government spent ₦400 billion (about $500 million) monthly to subsidize petroleum imports, according to Mele Kyari, chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL), licensed to operate in Nigeria's oil industry.

 

The subsidy was the difference between the projected open market price and the pump price. To make up for the market shortfall, the government issued it as a direct or indirect payment to individuals or companies that imported refined products.

 

In 2022, Nigeria's House of Representatives set up a panel to investigate its petroleum subsidy regime from 2017-2022. The government has yet to publish the panel's findings, submitted in June 2023, but it has maintained that the subsidies benefitted a few companies.

 

According to Femi Falana, a Senior Advocate of Nigeria and one of the country's renowned constitutional and human rights lawyers, the subsidies diverted huge sums of public funds to private pockets.

 

"This is one decision we must bear to save our country from going under and take our resources away from the stranglehold of a few unpatriotic elements," President Tinubu reiterated in his Democracy Day address on 12 June.

 

"This [subsidy removal] is one decision we must bear to save our country from going under and take our resources away from the stranglehold of a few unpatriotic elements."

 

Mr. Tinubu is confident that ending subsidy payments will free up resources for massive infrastructure investments in transportation, energy and other sectors.

 

Unintended consequences

 

 

By the early 1990s, Nigeria's four state-owned but independently operated oil refineries could not keep up with demand. The country began exporting the crude oil that its old refineries could not handle and then import the refined petroleum at a huge cost, which the government subsidized.

 

In 2000, the government approved about 20 licenses to private sector players for building new refineries in the country, yet they built none.

 

Why? Economists believe that those licensees chose not to build because the subsidies--in effect, price controls--might have prevented them from recouping their investment. As a case in point, the government's own revenues dwindled under record-low oil prices.

 

In recent years, the government has had to rely on the NNPC to foot the subsidy payments, Mr. Kyari stated in an interview. As a result, the NNPC cannot fulfill its mandated contributions to the federation account, which serves as a shared revenue pool distributed among Nigeria's federal, state and local levels of government.

 

Experts also argue that subsidy payments have fuelled excessive and less efficient energy consumption and growing budget deficits.

 

Sustainable advantages

 

The present administration also highlighted other advantages of ending the subsidy, such as decreases in carbon dioxide (CO2) emissions.

 

In early August, Vice President Kashim Shettima remarked that without the subsidy, Nigeria could conserve more than 15 million tonnes of CO2 each year, helping the nation to attain its nationally determined contributions to the Paris Agreement.

 

According to Mr. Shettima, the National Council on Climate Change's initial analysis shows a potential 30 per cent decrease in everyday fuel usage, equal to 20 million litres or 42,800 tonnes of CO2 emissions.

 

Many commend the government for framing infrastructure investment in terms of climate action (Goal 13).

 

-Africa Renewal.

 

 

 

 

Kenya Breweries Limited, Muranga County Sign Sorghum Farming Deal

Nairobi — Kenya Breweries Limited (KBL) and Murang'a County have signed a partnership that will see KBL support farmers growing sorghum in the area.

 

KBL Managing Director (MD) Mark Ocitti lauded the area's Governor Irungu Kang'ata for empowering farmers.

 

"The actualization of this deal is a dream come true as it sets the stage for the two entities to work closely in their efforts to create a sustainable pipeline for the much-needed raw material as well as elevate the status of the farmers who will benefit economically from the sale of sorghum to KBL," Ocitti said.

 

To date, KBL has built a solid sorghum and barley value chain that includes the 47,000 who have been contracted to grow sorghum in Kisumu, Migori, Siaya, Homa Bay, Busia, Tharaka Nithi, Meru, Narok, and Nakuru Counties.

 

 

Additionally, KBL will provide farmers with affordable credit facilities, field extension services, and link them with seed companies, fertilizer providers, and research institutes.

 

"We want to replicate the success we have had with the other counties to build a community of farmers who are capable of contributing fully to the economic development of the country," the MD added.

 

"It is such interventions that have seen us support over 80,000 businesses and employ over 200,000 people across the value chain that include retailers, farmers, distributors, and agents accounting for almost 2 percent of the total employment in the country."

 

Kang'ata welcomed the deal while saying it will transform local growers economically.

 

"As a county, we feel honoured to support KBL's long-term endeavors to establish a reliable pipeline source of raw materials with Murang'a County emerging as one of the key areas of focus. We shall use this opportunity to further advance the conversation on the need to support the consumption of safe alcohol among the youth."

 

With an annual demand of approximately 40,000 tonnes of sorghum, a rise in the production of sorghum-based beer presents an opportunity for farmers across the country to benefit manufacturers and distributors of inputs, processors, and retailers through the aggregation of service delivery points.

 

-Capital FM.

 

 

 

 

 

South Africa: Security Workers Protest in Boksburg Over Unpaid Wages

"It's amazing what politicians promise just to get our votes" says union leader

 

About 40 security workers, supported by the United Private Sector Workers Union, protested at the entrance to the City of Ekurhuleni offices in Boksburg on Wednesday.

The union claims that over 1,000 security guards are still waiting for wages outstanding since March to be paid.

They were employed by private companies contracted to the City of Ekurhuleni. These companies' contracts ended in June, though workers say their dispute over unpaid wages has been going on for years.

Security workers formerly employed by private companies contracted to the City of Ekurhuleni shut down the Boksburg Civic Centre on Wednesday, demanding that outstanding salaries be paid immediately.

 

 

About 40 security guards protested at the entrance to the City offices, preventing people from entering or leaving the building. According to the United Private Sector Workers Union (UPSWU) about 1,000 workers are due outstanding wages. The union said about 800 of those workers had lost their jobs when the municipality's contracts with the former companies ended in June this year. New companies were hired, but only a few of the security guards were absorbed by TSS Security and Bravo Security.

 

For the past two weeks, security guards stationed at municipal sites in Germiston, Benoni, Daveyton, Brakpan, Benoni, Alberton and Boksburg have been protesting. Most of them had been employed by security companies Khayalami and Zabalaza. They claim these companies owe them wages for months.

 

 

In February this year, GroundUp reported on a protest by the security workers who said they had not received their wages for November and December. The union said the municipality and security companies were blaming each other. The municipality claimed not to owe the companies any money, while the companies claimed they had not been paid and therefore could not pay the workers. One of the companies told the union that the City owed it about R18-million.

 

While a few payments have been made to the security guards in early August following protests, they claim a large sum of money is yet to be paid to them.

 

"Our workers are being exploited by political parties who are promoting their own interests at the expense of poor people," said Raymond Tshamano from the United Private Sector Workers Union.

 

"A R2-billion budget was allocated for safety and security, but instead of insourcing our workers they fired the old companies, introduced new companies and fired our workers. It's amazing what politicians can promise just to get our votes," Tshamano said.

 

GroundUp has not been able to contact all the security companies for comment by the time of publication. We did manage to speak to the chairperson of Bravo Span Security Ben Matlala. This company absorbed some of the employees that had worked for one of the previous security companies.

 

"Bravo had the right to employ its own people. As far as payments are concerned, the issue should be taken up with old employers as this does not concern us. The old security companies should pay their staff what they are due as contracts have ended," Matlala said.

 

City of Ekurhuleni spokesperson Zweli Dlamini, said it is the responsibility of the companies to ensure that their workers are paid. He confirmed that the security company contracts had ended. "The companies are appointed for three years. These companies are aware of this and should plan accordingly for their employees. Those workers are exploited and should protest on the premises of their employer and not at City offices," Dlamini said, adding that the City had made no promises to insource the guards.

 

-GroundUp.

 

 

 

Ethiopia: News - Recent Conflict in Amhara Causes 2.5 Billion Birr Loss, Job Cuts As Industries Suffer Damages

Addis Abeba — A recent conflict in the Amhara region between the federal government and a non-state armed group known as Fano has wreaked havoc on local industries, leading to damages. According to the initial assessment, the loss is estimated at 2.5 billion birr.

 

Amhara Industry and Investment Bureau announced yesterday that over 3,000 permanent workers lost their jobs due to the damage that occurred in industries. Particularly hard-hit are investments involved in the cultivation and marketing of flowers, vegetables, and fruits, according to Endris Abdu, the head of the bureau. Endris emphasized that the region's 38 industries engaged in the production and export of these agricultural products generated $128 million in revenue in the just-concluded fiscal year.

 

Endris has pointed out that business slowdown and investment activities in the region have been picking up speed after the signing of the Pretoria Peace Agreement between the federal government and forces in Tigray in November 2022. According to the Bureau, a total of 4,727 local and foreign investors applied for investment licenses in the 2015 Ethiopian fiscal year.

 

 

During the just-concluded fiscal year, the regional government invested a total of 464 million birr with the aim of revitalizing defunct industries. This initiative, dubbed "Ethiopia Tamerit," roughly translated as "Let Ethiopia Produce," was launched in May 2022. Its primary objective was the rejuvenation of over 446 dormant industries identified by the Ministry of Industry across the nation. The Bureau chief revealed that 324 previously defunct industries resumed production.

 

The industries in the region have suffered greatly due to a prolonged two-year conflict that began in November 2020 and caused widespread destruction across the Tigray, Amhara, and Afar regions. An assessment conducted by the Ministry of Industry a year ago revealed that industries situated in eight of the region's twelve zones, such as Dessie, North Shewa, Wollo, and South Gonder, have been severely impacted by the war. Kombolcha Industrial Park alone has incurred damages worth half a billion birr due to the conflict.

 

The extensive economic devastation caused by the two-year-long war in the Amhara region cannot be overlooked, especially considering that this region accounts for 22% of the national Gross Domestic Product (GDP). In a recent interview, Abate Getahun, the Director of the Amhara Region Rehabilitation, Reconstruction, and Redevelopment Fund Office, disclosed to Addis Standard that the estimated cost of rebuilding the war-ravaged areas in the Amhara region surpasses a staggering half a trillion birr.

 

For months, tension and sporadic clashes have engulfed large parts of the Amhara region, which is the second-largest regional economy after Oromia. However, the fighting has intensified since 03 August, 2023. The dire situation has prompted Yelikal Kefale, the President of the restive Amhara region, to request the intervention of the federal government.

 

On 04 August, 2023, the Council of Ministers unanimously decided to declare a state of emergency. Ten days after the Council of Ministers' decision, the House of People's Representatives endorsed the state of emergency, which will be enforced for the next six months.

 

Despite ongoing efforts, intense conflict has erupted in key urban centers such as Bahir Dar, Dibre Berhan, Gondor, and Shewa Robit, which are home to a substantial portion of the region's industries. A press release issued by the Ethiopian Human Rights Commission on 14 August, 2023, revealed that four heavily populated neighborhoods in the city of Debre Birhan experienced fierce fighting between 6 - 7 August, resulting in the tragic deaths of civilians, including factory workers who were caught in the crossfire and targeted by heavy artillery in their workplaces.

 

Last week, the command post responsible for managing the state of emergency announced that various cities and towns had been liberated from the grip of an armed group. Following the command post's implementation of a curfew and its advice to service providers, government offices, and commercial entities to resume activities, reports have emerged of major cities in the Amhara region gradually returning to a state of normalcy.

 

-Addis Standard.

 

 

 

 

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: Fintechs Help Drive Up Bank Accounts to 23 Million

Officials from the Uganda Bankers Association(UBA) have revealed that financial technology (also known as fintech) have helped drive up the number of bank accounts in the country to 23 million from 16 million in seven years.

 

"In Uganda, we have over 23 million bank accounts as of June 2023 in the system coming from under seven million accounts in 2016, thanks to the partnerships we have with mobile network operators and fintechs. This is a whopping 70% growth in only seven years from 16 million accounts or 2.2 million accounts added into the system annually," UBA chairperson , Sarah Arapta said.

 

 

She was speaking during this year's annual bankers' conference at Kampala Serena Hotel.

 

Arapta noted that disruptive technologies have significantly changed the way the financial eco-system operates and delivers products and services to clients by crashing barriers to entry and creating new markets for access to finance.

 

"This collectively has positively impacted economic growth through expansion of access to financial services (financial inclusion) reaching underserved consumers, the unbanked and previously hard to reach areas of the country."

 

The UBA chairperson noted that digital financial services are playing a significant role in growing credit

 

markets in Uganda in support of the resilience and inclusive recovery following the lull experienced during the pandemic, adding that this growth in digital lending is creating new opportunities contributing to more efficiency and inclusivity by overcoming both geographic access barriers as well other diversity related obstacles.

 

"Over the last seven or so years, the banking industry has disbursed credit or lent out approximately shs 6 trillion to over 13.3 million customers or micro borrowers via digital lending largely done via mobile phones with ticket sizes for individuals averaging from shs150,000 to shs1,000,000."

 

She noted that of the above 13.3 million customers, over 560,000 are SMEs who take between shs7 million to shs10 million daily, every 2-3 days in support of their businesses who include banking and mobile agents, retail shop owners, suppliers, market vendors dealing in food crops and produce among others.

 

The BOU deputy governor, Michael Atingi-Ego said technology-enabled innovation is transforming financial services by producing new business models, applications, processes, or products that enrich people's access to safe and secure storage of money; easier and quicker payments; loans; effective financial management; and other financial products and services, including investment and insurance.

 

 

"Fintech is improving financial inclusion. Mobile money has enabled millions of people who previously had no access to formal financial services to send and receive money, make payments, and save. Fintech has transformed payment systems, making them more efficient and accessible, such as through digital wallets and mobile payments," Atingi-Ego said.

 

He noted that fintech through data analytics, artificial intelligence, and machine learning, is facilitating rich insights into consumer behaviour, risk metrics, and financial and economic trends and thereby shaping the evolution of banking and financial services within the country's operating environment also influence central banking.

 

The BOU deputy governor however warned bankers that as more financial transactions move to digital platforms and online, the reliance on IT infrastructure grows, and so does the related IT and cyber security vulnerabilities.

 

"Cybersecurity and IT security, therefore, become increasingly important because the new convenience comes with increasing risks, as cyber criminals exploit vulnerabilities in digital systems to breach defences and gain unauthorised access to valuable data, which is the new oil," he said.

 

"Cyber-attacks targeting banks pose risks to individual institutions by disrupting critical financial operations, compromising transaction processing, access to customer accounts or performing essential functions. This can diminish public confidence in the banking system, especially if disruptions affect multiple banks or persist for a long time. The potential impact of cyber risks on the financial system invites a sector- wide approach to cyber security because a chain is only as strong as the weakest link."

 

 

 

 

Evergrande: China property giant files for US bankruptcy protection

Property giant Evergrande has filed for bankruptcy protection in the US as the real estate crisis in China deepens.

 

It will allow the heavily-indebted company to protect its assets in the US as it works on a multi-billion dollar deal with creditors.

 

Evergrande defaulted on its huge debts in 2021, which sent shockwaves through global financial markets.

 

The move comes as problems in China's property market add to concerns about the world's second largest economy.

 

China Evergrande Group made the Chapter 15 bankruptcy protection filing in a New York court on Thursday.

 

Chapter 15 protects the US assets of a foreign company while it works on restructuring its debts.

 

Evergrande did not immediately respond to a request for comment from the the BBC.

 

The group's real estate unit has more than 1,300 projects in more than 280 cities in the country, according to its website.

 

Its other businesses include an electric car maker and a football club.

 

Evergrande has been working to renegotiate its agreements with creditors after defaulting on its debt repayments.

 

With debts estimated to total more than $300bn (£235bn), it was the world's most heavily indebted property developer.

 

Its shares have been suspended from trading since last year.

 

Evergrande revealed last month that it lost a combined 581.9bn yuan ($80bn; £62.7bn) over the last two years.

 

Last week, another major Chinese property giant, Country Garden, warned that it could see a loss of up to $7.6bn for the first six months of the year.

 

Some of the biggest companies in China's real estate market are struggling to find the money to complete developments.

 

"The key to this issue is to complete unfinished projects because this will at least keep some of the financing flowing," said Steven Cochrane of economics research firm Moody's Analytics.

 

He added that many homes are pre-sold but if construction stops, buyers no longer make mortgage payments, which puts more strain on developers' finances.

 

Earlier this month, Beijing said that China's economy had slipped into deflation as consumer prices declined in July for the first time in more than two years.

 

Weak growth means China is not facing the rising prices that have rattled many other countries and prompted central bankers elsewhere to sharply increase borrowing costs.

 

The country's imports and exports also fell sharply last month as weaker global demand threatened the recovery prospects of the world's second-largest economy.

 

Official figures showed exports fell by 14.5% in July compared with a year earlier, while imports dropped 12.4%.

 

Earlier this week, China's central bank unexpectedly cut key interest rates for the second time in three months, in a bid to boost the economy.-bbc

 

 

 

 

 

Shop sales drop in July as rain dampens demand

Retail sales volumes fell by 1.2% between June and July after the wet weather hit clothing sales and the cost of living weighed on food shoppers.

 

The Office for National Statistics (ONS) said it was a particularly bad month for supermarkets.

 

"The summer washout combined with the increased cost of living meant sluggish sales for both clothing and food," it said.

 

Department stores also reported falling demand for household goods.

 

Illustrating how much prices have risen, the ONS said that compared to February 2020 - the last full month before Covid struck - total retail sales were 16.4% higher by value but 1.8% lower in the volume of goods people bought.

 

Earlier this week, new figures showed that inflation, which measures the rate at which prices are rising, slowed again to 6.8%. However, food prices are still increasing at a high rate.

 

The ONS said sales volumes at supermarkets fell by 2.6% in July after a rise in June.

 

It said "some of the fall was because of the poor weather reducing summer clothing sales. However, food sales in supermarkets also fell back".

 

Ruth Gregory, deputy chief UK economist at Capital Economics, said she was cautious about reading too much into the retail sales figures since it "had a lot to do with last month being the sixth wettest July since records began in 1836".

 

"But with the Bank of England's interest rate hikes still feeding through and consumer confidence falling, we remain downbeat on the outlook for overall spending this year," she said.

 

Inflation slows but flights and hotels keep prices high

How much are prices rising for you? Try our calculator

For some retailers, the poor weather meant customers changed what they bought.

 

Gary Grant, founder and chairman of The Entertainer toy retailer, told the BBC's Today programme that parents had spent more on items to keep children occupied during the rain.

 

He said that while its outdoor toy sales were "substantially down" on a year ago, "our indoor sales, whether that be our stationery items, our craft items, our puzzles, our games, things that you would need to keep your children occupied in the house, those sales have increased".

 

The rain also helped online retailers as shoppers stayed at home, with sales up by 2.8% in July.

 

In total, the share of retail sales online last month rose to 27.4% - the highest since last February - compared to 26% in June.

 

Meanwhile, the ONS revised down the growth in retail sales for June from a rise of 0.7% to an increase of 0.6%.

 

Silvia Rindone, managing partner of strategy and transactions at the accountancy firm EY, said that sales could bounce back in August as children prepare to go back to school.

 

"Retailers should see sales improve in August as families start shopping for the start of the new school year in September. 'Back to school' is often the highest spending season in retail after Christmas," she said.-bbc

 

 

 

 

Cash, cars and homes seized in $735m Singapore anti-money laundering raids

Singapore police have seized about S$1bn ($735m; £578m) - including luxury homes, cars and watches - in one of its biggest anti-money laundering probes.

 

Gold bars, designer handbags, wine and S$23m in cash were among the items seized in the raids.

 

Police arrested ten people in the operation, all of whom held foreign passports.

 

Raids of this size are rare in Singapore, which has one of the lowest crime rates in the world.

 

The Singapore Police Force said in a statement that simultaneous raids were held across the city-state on Tuesday.

 

It added that 94 properties, including houses in some of the country's most sought after areas, were seized, along with 50 vehicles.

 

Ten people, aged between 31 and 44, were arrested for alleged money laundering and forgery offences. Police said that those arrested had passports from China, Cambodia, Turkey and Vanuatu.

 

The group was "suspected to be involved in laundering the proceeds of crime from their overseas organised crime activities including scams and online gambling," according to the police.

 

"We have zero tolerance for the use of Singapore as a safe haven for criminals," said David Chew, director of the police's Commercial Affairs Department, which investigates white-collar crime.

 

"Our message to these criminals is simple - if we catch you, we will arrest you. If we find your ill-gotten gains, we will seize them. We will deal with you to the fullest extent of our laws," he added.

 

Police said another 12 people were assisting with investigations, while eight others are currently on its wanted list.

 

The country's central bank and financial regulator, the Monetary Authority of Singapore, said it had been in contact with financial institutions "where the potentially tainted funds have been identified".

 

It added that it would take "firm action" against institutions which did not meet official anti-money laundering requirements.-bbc

 

 

 

 

After McDonald's, Burger King India drops tomatoes from its menu

Burger King says it has removed tomatoes from its food in Indian outlets after a sharp rise in prices.

 

The fast food chain said it made the decision because of "unpredictable conditions on the quality and supply of tomato crops".

 

The burger chain is the second in the country after McDonald's to drop the ingredient from its menu.

 

Experts say crop damage due to bad weather conditions have caused a shortage in the market.

 

Earlier this week, US sandwich chain Subway also removed tomatoes from menus as India's food inflation hit its highest since January 2020, reports Reuters.

 

It even cancelled the free cheese slices the restaurant offered with the sandwich for years.

 

Prices of essentials have skyrocketed in India in recent months, with the tomato hitting a peak of 250 rupees ($3; £2.37) per kilo in July as monsoon rains disrupted crop and supply chains.

 

Why McDonald's dropped tomatoes from Indian menus

Tomato prices have since come down but earlier this month, India began importing it from neighbouring Nepal to manage the supply crisis.

 

These are being sold at 50 rupees per kilo in capital Delhi and the northern states of Rajasthan and Uttar Pradesh.

 

On Wednesday, Burger King added a new section to its official website in India called, "Why are there no tomatoes in my burgers?"

 

The food chain said its Indian franchisee followed "very high standards of quality" and that tomatoes will be back soon on the menu.

 

"Till then we request your patience and understanding," it said.

 

Last month, McDonald's also dropped tomatoes from most of its outlets in northern and eastern India.

 

The fast food giant attributed the decision to quality concerns and not the surge in prices.-bbc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


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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