Major International Business Headlines Brief::: 04 December 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  04 December 2023 

 


 

 




 


 

 


 

ü  South Africa: Govt's Failure to Prevent Energy Crisis is Unconstitutional, Court Finds

ü  Nigeria: No Worries, Nigeria Will Surpass Opec's 1.5m Bpd Oil Quota in 2024 - Govt

ü  Kenya: Kakuzi Bags 5 Avocado Awards

ü  Nigeria's Economy Begins Major Shift As Oil Sector Rebounds

ü  Nigeria: How Intel Waived $193m Debt to Resolve Stalemate Over Pilotage Contract - NPA

ü  Tanzania: Samia Invites Global Agro Investors

ü  Tanzania: Govt Set to Announce Over 11,000 New Jobs

ü  Tanzania: Cop 28 - Samia Touts Clean Energy Use

ü  Mozambique State Loses Over 43 Millions Meticals Due to Poultry Smuggling

ü  Tanzania's Digital Economy Framework Set for Launch in January

ü  Africa: Botswana Africa Good for Investment

ü  Spotify to axe 1,500 workers to cut costs

ü  Could X go bankrupt under Elon Musk?

ü  Bankruptcy 'opportunity' after student loan crisis

ü  US aims to limit China's role in electric cars

ü  Couple's property ordeal captivates Chinese internet

 


 

 


 

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

South Africa: Govt's Failure to Prevent Energy Crisis is Unconstitutional, Court Finds

The Pretoria High Court has ruled that numerous government failures caused load shedding, infringing on South Africans’ basic rights in breach of the Constitution, News24 reports.

 

The December 1 ruling, written by Judge Norman Davis on behalf of a full bench of judges, ordered Electricity Minister Kgosientsho Ramokgopa to ensure by the end of January 2024 that "there shall be sufficient supply or generation of electricity to prevent any interruption of supply as a result of load shedding" to all public health facilities, all public schools, and the South African Police Service and police stations.

 

The ruling sets out several government failures which it found had resulted in the country's energy crisis and rotational national power cuts. Government failures include:

 

running power stations beyond their capabilities without maintaining them

not ensuring or approving enough revenue for services,

and failing to protect Eskom against criminal activity, corruption and state capture.

The court found that these failures breached South Africans’ rights to human dignity, to life, to freedom and security, to an environment that is not harmful to health and well-being, of access to healthcare services, to access of sufficient food and water, and to basic education.

 

Moneyweb reports that the ruling comes at a time when preparations for national and provincial elections next year are gaining momentum.

 

 

 

Nigeria: No Worries, Nigeria Will Surpass Opec's 1.5m Bpd Oil Quota in 2024 - Govt

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said at the weekend that Nigeria remains on track to surpass the crude oil production quota handed down to the country by the Organisation of Petroleum Exporting Countries (OPEC).

 

Last week, at the 36th OPEC and non-OPEC ministerial meeting, the producers' group projected that Nigeria could only achieve an oil production quota of 1.5 million barrels per day in 2024.

 

That was after a week-long intense negotiations that saw the parties agree to raise the country's production quota for next year, from 1.38 million bpd to 1.5 million bpd by the oil cartel.

 

 

Three consultancy firms, IHS, Rystad Energy, and Wood Mackenzie had countered Nigeria's submission that it was ready to produce as much as the current 1.742 million bpd for next year.

 

But in their findings, the research firms projected that despite Nigeria's pledges, the situation on the ground did not show that it could even meet the 1.58 million barrels per day initially being debated.

 

However, the minister who gave an incline as to how the proceedings went, stated in a post on his official X/Twitter handle at the weekend that Nigeria currently produces 1.5 million barrels of crude oil per day.

 

The minister expressed the confidence that the country will surpass the projections in the 2024 budget.

 

However, THISDAY's findings showed that the minister was talking about the combination of crude oil and condensates. Condensates are usually outside OPEC's computation in handing down quotas for member countries and allies like Russia. Nigeria's production in October was 1.35 million bpd.

 

 

The OPEC quota of 1.5 million bpd for 2024 also appeared to be at variance with President Bola Tinubu's forecast in the proposed 2024 budget, wherein Nigeria adopted a daily oil production estimate of 1.78 million bpd.

 

Lokpobiri said: "Arising from the 36th OPEC and non-OPEC ministerial meeting held via video conferencing, I stated that Nigerians should know that our total production currently is 1.5 million bpd for crude and 300,000 bpd for condensate.

 

"So what we are producing is much more than what is projected in the 2024 budget estimate and as such, there is nothing to worry about.

 

"However, it is worthy of note, that there was a general production cut across all OPEC member nations in our last meeting in June of this year. So it was not only Nigeria but all OPEC member states agreed to the 10 per cent cut.

 

 

"We are on track with the objective of maintaining and surpassing the quota, especially as we work productively towards resolving all bottlenecks that might pose as hindrances to the objective."

 

The authorities had at various times promised to meet the OPEC quota, which Nigeria has failed to fulfil in at least three years, by latest this December. This seems not practical, although production has increased marginally in the last few months.

 

Meanwhile, to sustain the country's drive for increased production, Lokpobiri has engaged in a pivotal meeting on the sidelines of the ongoing 28th United Nations Climate Change Conference (COP28) with the Chairman of Baker Hughes, Mr. Lorenzo Simonelli.

 

A statement by the Special Adviser to the minister on Media and Communications, Nneamaka Okafor, said the meeting marked a significant milestone as Baker Hughes, a global energy technology company, expressed keen interest in sustaining and enhancing its investment in Nigeria's oil and gas industry.

 

Simonelli, the statement said, conveyed Baker Hughes' commitment to contributing to the energy transformation agenda of the current administration led by Tinubu.

 

The chief executive emphasised the company's readiness to collaborate with the federal government in advancing sustainable energy practices, aligning with the goals of the ongoing COP28.

 

"Nigeria is a blessed nation with vast potential and great opportunities in diverse sectors. As a partner with the federal government over the years, we are inspired to direct investment in the refinery domain of the oil and gas.

 

"Therefore, whatever that we can do to support to get started, I am willing to do that even now," the Baker Hughes chief stated.

 

During the discussions, he also reiterated Baker Hughes' commitment to supporting Nigeria's efforts in achieving energy sustainability.

 

He acknowledged the critical role the country plays in the global energy landscape and emphasised the importance of public-private partnerships in driving meaningful progress.

 

In his remarks, Lokpobiri commended the oil servicing firm for its longstanding partnership with Nigeria in the energy sector.

 

He highlighted the company's valuable contributions over the years and expressed optimism about deepening the collaboration through increased investment in the nation's oil and gas industry.

 

Lokpobiri assured the Baker Hughes delegation of the Nigerian government's commitment to creating an enabling environment for investments in the refinery sector.

 

The minister affirmed that adequate measures would be put in place to facilitate the seamless actualisation of Baker Hughes' investment plans, aligning with the overall vision of the current administration.

 

"I am very happy that you have joined other companies in identifying the great opportunities and government's favourable policies in our oil and gas sector and with the advent of the Petroleum Industry Act (PIA), we now have a workable framework that guarantees conducive environment for investment," the minister said.

 

The meeting between Lokpobiri and Simonelli, the statement said, sets the stage for a promising collaboration that not only strengthens the ties between Nigeria and Baker Hughes, but also contributes to the realisation of sustainable energy goals on a global scale.

 

Describing the meeting as highly constructive, Lokpobiri stated that the strong expression in directing investments towards the refinery domain of the nation's oil and gas industry was quite commendable.

 

"Recognising the history of collaboration between Baker Hughes and our country, I reiterated the government's dedication to cultivating partnerships with potential investors.

 

"The company's commitment to advancing the energy sector aligns with our national objectives and I conveyed appreciation for their sustained involvement.

 

"Assurances were given regarding a conducive environment for investment, as I emphasised the government's readiness to facilitate and support endeavours that contribute to the growth and sustainability of our petroleum resources," Lokpobiri added.

 

-This Day.

 

 

 

Kenya: Kakuzi Bags 5 Avocado Awards

Nairobi — Listed superfood producer Kakuzi has won five avocado awards in this year's Avocado Industry Excellence Awards.

 

The awards included Avocado Person of the Year 2023, Large Scale Orchards, Large Scale Exporter, Growers Nursery-Seedlings, and Auxiliary Services Categories.

 

Kakuzi became first in the large-scale orchards for over 200 acres and first in the other categories.

 

"We are honored and excited by the nominations alongside our industry peers. We continue to encourage and participate in such industry initiatives as part of our corporate commitment to grow the local avocado production and export opportunity," the company's managing director, Chris Flowers, said.

 

Kakuzi's avocado sales have recently accelerated, with exports to Europe and China peaking.

 

This year, Flowers disclosed that Kakuzi had planted 13,542 seedlings during the current short rain season as part of its avocado orchard expansion strategy.

 

-Capital FM.

 

 

 

 

Nigeria's Economy Begins Major Shift As Oil Sector Rebounds

There are indications that Nigeria's economy is reversing back to oil-sector led development while the gains made in non-oil sector is now reversing.

 

But feelers from the Organisation of Petroleum Exporting Countries, OPEC, have indicated that a fresh challenge to the nation's new strength in the crude oil sector has started emerging.

 

Vanguard's findings across performance benchmarks showing signs of rebound in the sector includes rising rig count, recoveries in several oil terminals, opening up of new oil wells as well as stable export prices.

 

 

Average rig count, an index of measuring activities in the upstream sector, rose year-on-year, YoY by 62 per cent to 15 between June and October 2023, compared to nine recorded in the corresponding period of 2022.

 

A month-on-month breakdown of the data compiled by OPEC for five five-month period covering June - October 2023 put Nigeria's rig count at 16, 14, 18, 15 and 13 in June, July, August, September and October 2023, respectively.

 

This shows a significant improvement compared to the 11, 11, 10, 7, and 8, recorded in June, July, August, September and October 2022, respectively.

 

The organization did not specify the driving factors, but checks by Vanguard pointed to the continued positive response of stakeholders, especially investors to Nigeria in the post-Petroleum Industry Act, PIA regime.

 

 

The PIA, a comprehensive legislation was signed into law by former President Muhammadu Buhari to bring about restructuring and repositioning of the oil and gas industry for new investments while enhancing transparency and accountability.

 

Oil production rises to 1.4m bpd

 

The nation's oil output has recorded a huge rise by over 40 percent from the low base of below one million barrels per day (mbpd) last year to 1.45 mbpd in October 2023.

 

This means that when condensate, which Nigeria can produce between 300,000 bpd and 400,000 bpd is considered, the nation's total output would be more than 1.6 million bpd.

 

Based on the data from Nigerian Upstream Petroleum Regulatory Commission (NUPRC), major oil terminals performed strongly in the third quarter of 2023, Q3:2023.

 

Specifically, Forcados terminal recorded a massive 6,028.5% YoY rise just as Bonny terminal recorded 1,875.7% rise, while Brass recorded 245.5% rise and Escravos rose by 24.0%).

 

 

All other terminals reported uptick in production for the first time in recent years.

 

Impact of Nembe crude

 

Checks by Vanguard indicated that the nation's total oil output has been impacted by the recommencement of production and export of Nembe crude by the NNPC/ Aiteo Joint venture.

 

The Nembe Crude Oil Blend, produced by Aiteo, the operator of the NNPC/Aiteo Oil Mining Lease, OML 29 Joint Venture, JV, was disclosed at the just-concluded Argus European Crude Conference in London.

 

The OML 29, acquired from Shell in 2014 was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.

 

Already, two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands, thus signaling the beginning of activities at the Nembe Crude Oil Export Terminal, NCOET, which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

 

Europe gasps for Nigeria's oil

 

Executive Director, Crude & Condensate, Maryamu Idris, NNPC Trading Limited, said in a panel presentation at the just-concluded Argus European Crude Conference in London that the Nigerian crude flow to Europe has increased in a bid to fill supply gaps left by the ban on Russian crude.

 

She pointed out that six months before the Ukraine war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710,000 bpd six months later and 730,000 bpd so far this year.

 

According to her, "This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners. Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel. Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition -- Nembe Crude - fits well into this basket. This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade."

 

According to her, NNPC Limited has secured vital partnerships with notable financial institutions to promote upstream investments to restore and sustainably grow production capacity in the coming years.

 

Analysts' insights.

 

Giving their perspectives on the impact of the development in the oil sector, analysts at Afrinvest West Africa, a Lagos based investment house, stated: "Following expectations of a continued increase in oil production, we anticipate the oil sector would play a larger role in contributing to the overall real GDP for the full year of 2023.

 

"Also, ramping up oil productions to levels around 1.8mbpds would position Nigeria to capitalize on potential exchange rate revaluation gains from crude oil sales".

 

Also commenting, economists at CardinalStone Capital, another Lagos based finance and investment firm, stated: "Looking ahead, we expect the oil sector to exit a recession in Q4'23, as we anticipate a sustained improvement in oil production, settling at 1.50mbpd".

 

"Higher oil output translated to improved quarter-on-quarter, QoQ, GDP performance of 2.6%."

 

Non-oil sector reverses trend.

 

But while the oil sector is recording massive rebound, growth in non-sector has reversed.

 

Giving insight into this development, analysts at CardinalStone stated: "The weaker growth in the non-oil sector may have stemmed from the dual actions of the CBN. First, the CBN pulled back from the direct development finance interventions orchestrated by the former CBN leadership.

 

"Given that a significant portion of CBN's development finance is concentrated in the Agriculture sector, the stoppage, coupled with pre-existing issues like insecurity, might have constrained the sector's outturn, whose growth (+1.30% YoY) recorded the lowest Q3 performance on record.

 

"The second action of the CBN was the sustained hawkish rendition, which resulted in material increases in the domestic interest rate.

 

"This elevated borrowing rate might have dampened sentiment in the Manufacturing sector, which recorded a marginal increase of 0.48% YoY (vs. 2.20% YoY in Q2'23).

 

"In addition, the lingering currency pressures further stoked the weak outturn in the manufacturing sector, as we note that 60.00% of companies on the NGX 30 have significant FX needs.

 

The OPEC challenge

 

Meanwhile, the OPEC and non-OPEC Ministerial Meeting, ONOMM, has forecasted Nigeria's oil output at 1.5 million bpd in 2024, indicating that a production cut back would put Nigeria's quota around that level, down from 1.8mbpd.

 

This is coming at time Nigeria has based her economic recovery and fiscal plan 2024 - 2026 on a high output level of between 1.7mbpd and the current 1.8mbpd existing OPEC quota.

 

At its 36th ONOMM held via videoconference monitored by Vanguard, Thursday, ONOMM, stated: "In accordance with the decision of the 35th OPEC and non-OPEC Ministerial Meeting, the completion of the assessment by the three independent sources (IHS, Wood Mackenzie and Rystad Energy) for production level that can be achieved in 2024 by Angola, Congo and Nigeria as follows: Angola at 1,110 t/bd, Congo at 277 t/bd and Nigeria at 1,500 t/bd."

 

Experts comment, make case for more investment

 

With the recent shifts in Nigeria's economy bringing the oil sector back to dominance, industry experts and economists are recommending best positioning for the country to maximize the value to create inclusive growth.

 

The Founder and Executive Chairman of AA Holdings, Mr. Austin Avuru, has called for massive investment to meet set targets in the future.

 

He regretted that investment into Nigeria's oil and gas industry dropped by 77.3 per cent to $5 billion in 2021, from $22 billion in 2014, due mainly to increased divestment by the International Oil Companies, IoCs.

 

He said: "The IoCs are leaving and will continue to divest. The IoCs are not hiring and investing as much as they used to invest in the oil and gas industry. It is only a few Independents that are still investing.

 

"The nation's oil and gas reserves have been standing at more than 30 billion barrels and 203 trillion cubic feet respectively for too long. We need to increase investment to hit the 40 billion barrels reserves and 600 trillion standard cubic feet of gas in the coming years. That would require the deployment of many rigs.

 

"We need to increase funding. Significant infrastructure is required. We need to invest in infrastructure not only in the upstream sector but also in the midstream and downstream sectors."

 

Reacting on the implications of the recovery of oil sector, Prof Uche Uwaleke, President, Association of Capital Market Academics of Nigeria, ACMAN, said: "Largely on account of improvement in oil production from 1.22mbpd in Q2 2023 to 1.45mbpd in Q3. At current favourable oil price level, a further increase in oil production to meet OPEC quota of 1.74mbpd will significantly move the needle into the positive territory thereby boosting overall GDP in the process.

 

"Oil sector improved chiefly on account of increase in crude oil production during the quarter (from 1.22mbpd to 1.45mbpd.

 

"Industry and agriculture sectors appeared hugely impacted by economic headwinds during the quarter.

 

"The sudden removal of fuel subsidy in May 2023 could be blamed for the performance of the Transportation sector still in the negative territory (-35.85%).

 

"The Agriculture sector (comprising 4 activities, though dominated by crop production) recorded a declining performance over Q2. (1.30% still far from its pre COVID'19 levels).

 

"In my view, this identified growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as ours. Little wonder, economic growth does not appear inclusive reflecting in rising unemployment and poverty levels (new NBS methodology attempts to mask this)

 

"It's time we reset this faulty economic structure, leveraging technology, in favour of the productive sectors: Industry and Agriculture.

 

"Indeed, structural change is strongly recommended (by UNCTAD) as one of the ingredients of building productive capacities."

 

In his own reaction, Tajudeen Olayinka, CEO, Wyoming Capital and Partners, said: "Even though it is still a far cry from what is considered to be a transformative number for the economy, it should still be considered a good development. Any effort to improve dollar liquidity in the economy is much appreciated at this time.

 

"The sad experience of oil theft and banditry we suffered under former President Muhammadu Buhari must not be allowed to continue. It was as if we had no government."

 

-Vanguard.

 

 

 

 

Nigeria: How Intel Waived $193m Debt to Resolve Stalemate Over Pilotage Contract - NPA

The Nigerian Ports Authority (NPA) has explained how INTELS Nigeria Limited waived $193 million as part of deliberate and conscious effort to resolve the stalemate on the pilotage contract with the federal government.

 

The NPA said that the agreement that culminated in the waiver of the $193,317,556 accumulate interest on debt owed, which was reached with INTELS was done in the national interest.

 

It assured stakeholders and Nigerians that revenue generation would now increase as a result of the effort, even as it praised the Minister of Transportation, Marine and Blue Economy, Adegboyega Oyetola, for working tirelessly to ensure that the crisis was resolved.

 

 

The Authority pointed out that the minister was disheartened by the needless loss of revenue as a result of the stalemate on the pilotage contract, adding that the minister's show of concern underscored his commitment and patriotism towards resolving the protracted dispute.

 

Significantly, the NPA disclosed that Nigeria would save a princely $326.895 million from the agreement it reached with INTELS on the contentious pilotage contract.

 

The Authority said the federal government would earn a benefit to the tune of over $500,000,000.00 - taking into consideration the interest waiver of $193,317,556.

 

The arrangement also included the reduction in interest rate on the outstanding debt from 6-months LIBOR rate + 6.5 per cent to 6-months SOFR rate + 3 per cent, the spread of the repayment of the debt over 15 years, with the first two years interest-free and the reduction in commission from 28 per cent to 24.5 per cent.

 

 

The NPA said, in a statement entitled: "Setting the Record Straight in Respect of Service Boat Monitoring Operation in Nigerian Ports Authority: Reinstatement of INTELS Nigeria Limited as Management Agent," that there was misinterpretation in a section of the media, citing a letter issued by the Port Manager, Lagos Port Complex, Apapa and addressed to Shipping Companies on the matter.

 

The Autority said that "It is has become necessary to put the record straight for the benefit of the public and the generality of stakeholders in the Port industry.

 

"This is also to avoid distortions and conjectures, which may arise by reason of wrong interpretation of the aforementioned letter."

 

The NPA said it agreed a waiver of the sum of $100,000,000 being part of the accrued interest as of 31st July, 2023 on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement.

 

 

According to the Authority: "A further waiver of the interest accruing on the outstanding debt under the Phase 4B Agreement for the period of two years commencing from 1st of July 2023 and ending on the 30th of July, 2023 which is estimated in the sum of $93,317,556.

 

"Reduction of the interest rate on the indebtedness to Deep Offshore Services Limited from 6-months LIBOR rate + 6.5% to 6-months SOFR rate + 3% effective from the date of execution of Supplemental Agreement. The Authority will be saving a total sum of US$ 326,895,226 as a result of waiver of part of accrued interest and reduction of interest rate from 6.5% to 3% on the debt over the next 15 years.

 

"Reduction of the agency commission on Pilotage collections from 28% to a lower commission of 24.5% as opposed to increasing it due to astronomical rise in cost of operations. The proposed spread of the debt of $522,433,453.25 to be paid back over a 15-year period will, of itself, earn for the Authority a huge benefit in terms of preservation of funds to meet its other operational needs over the period."

 

The NPA stated that the above facts represented the true position on the matter, adding that, "The interest of the authority is to ensure that services are provided in line with international best practices and to enhance the revenue profile of the federal government. In order to mitigate the attendant loss of revenue and surmount the legal impasse created by the dispute, the authority proposed a settlement initiative with INTELS, which was submitted to the to the federal government through the Ministry of Transportation.

 

"Intels also made proposal for settlement on behalf of itself and Deep Offshore Services Nigeria Limited. Protracted negotiations followed and the parties eventually reached a settlement following remarkable concessions by Intels/Deep Offshore and verifiable gains by NPA/the federal government.

 

"The parties agreed to the following proposed Terms of Settlement; waiver of the sum of $100,000,000.00 on the outstanding indebtedness of the authority to Deep Offshore Services Limited, a further waiver of interest which may accrue on the outstanding debt to Deep Offshore Services Limited over a period of two years between 1st of July, 2023 to 30th June, 2025 which is estimated in the sum of $93,317,556, reduction of interest rate on the outstanding indebtedness to Deep Offshore Services Limited from Libor+6.5 per cent to SOFR+3 per cent, reduction of the agency commission on Service Boat Pilotage collections from 28 per cent to 24.5%. The agreement to be renewed for a further period of 15."

 

The NPA added that the federal government considered the proposal and approved the same on the 18th of August, 2023.

 

"The federal government further directed that the withdrawal of the cases was to be carried out by filing Terms of Settlement by the parties and for the Court to adopt same as Judgment of the Court. The authority was also to discontinue the un-concluded procurement process, which process was in dis-obedience to the Orders of the Federal High Court, Lagos.

 

"The Parties executed Terms of Settlement on the 24th of August, 2023, and same was adopted as the Judgment of the Federal High Court in Suit No. FHC/L/CS/1058/2020 on the 21st of September, 2023 by Honourable Justice A.M. Liman. Arising from the foregoing, the authority also filed a Notice of Withdrawal at the Court of Appeal, Lagos in respect of the appeal at the Court of Appeal, Lagos.

 

"Following the Judgment of the Federal High Court, Lagos, the Nigerian Ports Authority and Intels Nigeria Limited executed the managing agency agreement, while a Supplemental Agreement with Deep Offshore Services Limited for the Phase 4B Port Development was also executed in view of the fact that the initial Agreement was suspended."

 

The NPA further stated that the federal government lost humongous revenue in the period the NPA took over the management of pilotage.

 

According to the NPA, "After the expiration of the Service Boat Management Agreement, the authority took over the performance of the service through various Departments and Divisions. However, due to the constraint of not having the requisite technology to monitor the operations, the expected revenue dwindled and it resulted in the drastic reduction of revenue generation for the Authority.

 

"An analysis of its impact on the authority's revenue showed a sharp decline from $216million and $209 million in 2014 and 2015 respectively under INTELS agency to $130 million and $99 million in 2020 and 2021 respectively after take over by NPA. The situation in 2023 is even worse as the collection up to June 2023 was only $55.3 million."

 

While admitting that errors were made by the past management of the NPA, it stated, "Prior to the expiration of the Service Boat Monitoring Agreement, the authority commenced the procurement process for the engagement of Service Boat Operations Monitoring Agents.

 

"Several companies submitted bids and the Parastatal Tenders Board of the authority considered the proposals and approved to forward the Four Nos. companies considered qualified for the next stage of the process, to the Ministerial Tenders Board for further procurement processes in line with the requirement of the Public Procurement Act. The Four companies are; Pacific Silverline Limited, Nexttee Oil and Gas Trading Company Nigeria Limited, ICA Logistics Limited and Ishasha Investments Limited.

 

"Shortly after the opening of the bids, Intels Nigeria Limited and Deep Offshore Services Limited instituted a suit no FHC/CS/L/1058/2020 at the Federal High Court, Lagos against the Authority seeking orders of the Court to restrain the authority from engaging new Service Providers to carry out the monitoring of Service Boat Operations in the Exclusive Economic Zone.

 

"Intels further claimed that the authority was in breach of the management agreement and sought reliefs including that the contractual status quo remains. Deep Offshore claimed that the termination of the Managing Agency Agreement will negatively affect process of recovery of the Project cost from the Authority.

 

"The Federal High Court, Lagos per Justice Oweibo by an Order of Interim Injunction dated 24th July, 2020 restrained the authority from giving effect to the Public Notice calling for Expression of Interest for the provision of the Service Boat Operation from interested entities in line with the Procurement Act."

 

It added, "The authority notified Intels Nigeria Limited vide its letter dated 5th August, 2020 of the expiration of the Service Boat Management Agreement on the 8th of August, 2020 and of its intention to take over the provision of the said Service Boat Operation. A Public Notice was equally issued to all Service Boat Operators requesting them to deal with the various Port Management on all Service Boat issues. Intels Nigeria Limited again approached the Federal High Court, Lagos in suit no. FHC/L/CS/1058/2020 requesting for an Order of the Court to restrain the Authority from giving effect to the Notice of Expiration served on Intels.

 

"At the Federal High Court, Lagos Coram Hon. Justice Aikawa granted an Ex parte Order of Interim Injunction on the 28th August, 2020 restraining the authority from giving effect to the Notice of expiration of the Agreement pending the determination of the arbitration between the parties.

 

"By another application dated the 18th of September, 2020, the Authority challenged the jurisdiction of the Court to entertain the suit without first issuing and serving on the authority the mandatory pre-action Notice as provided in the Nigerian Ports Authority Act. The Federal High Court, Lagos Coram Oweibo J., notwithstanding the above objection extended the lifespan of the Interim Injunction and thereafter referred the matter to Arbitration."

 

The NPA said that the orders of the Federal High Court should have effectively stalled the Procurement process adding, "However, despite the orders of the Court, the authority continued with the procurement process and forwarded the names of the companies to the Federal Ministry of Transportation. The procurement process was subsequently put on hold based on the advice from the Federal Ministry of Transportation that the authority should comply with the orders of Court.

 

"The authority was thereafter sued by Pacific Silverline Limited, Nexttee Oil and Gas Trading Company Nigeria Limited, ICA Logistics Limited and Ishasha Investments Limited at the Federal High Court, Lagos in suit No. FHC/L/CS/1772/2022 seeking declarative reliefs and an injunction restraining the Authority and the Honourable Attorney General of the Federation from awarding the contract for the Service Boat Operations Monitoring contract in the four pilotage districts to any other entity other than one which participated fully in the procurement process.

 

"The Federal High Court on the 11th of July, 2023 upheld the objection of the authority and struck out the suit. The claimants have since filed an appeal at the Court of Appeal against the ruling of the Federal High Court and also applied for an injunction to restrain the Authority from executing the ruling of the Court. The appeal is pending at the Court of Appeal, Lagos and no date has been fixed for the hearing of same.

 

"Messrs Pacific Silverline Limited recently filed another suit at the Federal High Court, Kano in suit no. FHC/KN/CS/245/2023 against the Honourable Attorney General of the Federation challenging the approval granted the authority to settle the cases between the Authority and Intels Nigeria Limited. The Federal High Court wholly dismissed the said suit on the 30th of November, 2023."

 

It continued: "In order to mitigate the attendant loss of revenue and surmount the legal impasse created by the dispute, the authority proposed a settlement initiative with INTELS which was submitted to the federal government through the Ministry of Transportation. Intels also made proposal for settlement on behalf of itself and Deep Offshore Services Nigeria Limited. Protracted negotiations followed and the parties eventually reached a settlement following remarkable concessions by Intels/Deep Offshore and verifiable gains by NPA/the federal government."

 

- Vanguard.

 

 

 

 

Tanzania: Samia Invites Global Agro Investors

UAE, Dubai: PRESIDENT Samia Suluhu Hassan on Sunday invited stakeholders across the world to come and invest on tremendous agro-opportunities available as Tanzania rolls out the Building a Better Tomorrow (BBT) programme.

 

Dr Samia said BBT is built for realising inclusive economic development and environment protection.

 

"Welcome one, welcome all. Tanzania is ready to work with everybody who is ready to work with us," Dr Samia said at the on-going Conference of the Parties (COP28) in Dubai, United Arab Emirates (UAE) when she chaired a side-line high level meeting on agricultural opportunities for green growth transformation in Tanzania.

 

 

She said Tanzania intends to be a hub for food production in Eastern and Central Africa in line with the nation's agriculture agenda that aims at making the sector grow by 10 per cent by 2030 whereby there will be eight million full irrigated hectares.

 

Dr Samia said to achieve the target a total of 1.8 billion US dollar (over 4.52tri/-) is needed to be raised in the next seven years.

 

Speaking about the BBT which kicked off last year, Dr Samia said the programme has been fostering youth and women engagement in farming in effort to upscale jobs creation in the country with over 61 million people of whom 70 per cent are youths.

 

He said the programme embraces agro-green revolution by operating alongside irrigation systems which increase working hours per year to secure all workforces in sustainable production whereby some of them could get into unsustainable activities including charcoal burning causing deforestation.

 

 

He said BBT not only targets on beating the Sustainable Development Goals (SGDs) two which advocates for zero hunger but also the goal 13 which alerts UN members including Tanzania to take urgent actions to combat climate change and its impacts.

 

She said COP 28 offers a pitch for Tanzania to realise its green agricultural transformative vision by utilising presence of key stakeholders including heads of states, international agencies such as World Bank, World Food Programme (WFP), Food and Agriculture Organisation (FAO) and African Development Bank Group (AfDB) who have been supporting holistic development approach in the country.

 

Dr Samia called potential private sectors from all over the world to cooperate with Tanzania in facilitating green agricultural revolution through among others partnership in entire agro-value chains.

 

For his part, World Bank's Global Director of Agriculture and Food Global Practice, Mr Martien van Nieuwkoop commended Tanzania for initiating the BBT which creates conducive atmosphere for the youth and women involvement in production to cater for per capital Income, economic growth and climate change mitigation.

 

"Tanzania is already doing, congratulation. The World Bank is interested to replicate this approach of Tanzania to other countries" he said.

 

He said Tanzania by using her domestic resources and multilateral finance including from the World Bank can smoothly run the BBT which have impactful meaning for citizen livelihoods and the country.

 

This year's Dubai global conference on climate change (COP 28) kicked off on November 30 and is expected to conclude on December 12 this year.

 

It is expected to speed up transition to clean energy, catalysing climate financing by environment stakeholders delivering on old promises and setting the framework for a new climate financing approach.

 

-Daily News.

 

 

 

 

Tanzania: Govt Set to Announce Over 11,000 New Jobs

Dodoma — DODOMA: THE government will any time soon advertise over 11,000 new job opportunities particularly in the education and health sectors, Deputy Minister in the Prime Minister's Office (Youth Employment and the Disabled), Patrobas Katambi has revealed.

 

In the yet to be announced new jobs, Persons With Disabilities (PWDs) will get 3 per cent of the slots, thanks to the newly released guidelines for employment in the public service.

 

According to Mr Katambi, in the new guidelines, in every employment opportunities that will be announced by the government, PWDs will have a 3 percent share, in efforts to empower them.

 

 

He made the government's commitment during a workshop for Persons with Disabilities held in the Capital City under the auspices of the World Health Organisation (WHO).

 

The workshop was coordinated by the Tanzania Federation of Disabled People's Organisations (SHIVYAWATA).

 

In a bid to create awareness about disabilities and promote inclusivity, SHIVYAWATA in collaboration with WHO organised the workshop on Friday for PWDs ahead of the International Day of Persons with Disabilities celebrated annually on December 2nd.

 

Celebrations to mark the Day were held at the national level in the Capital City, Dodoma, yesterday.

 

As Tanzania joins the world in celebrating the day, the Dodoma workshop stood as a testament to the determination and resilience of individuals who rise above their challenges.

 

It served as a rallying point to raise awareness, cultivate understanding, and work towards a society that embraces and empowers all its members.

 

 

Speaking at the workshop, Mr Katambi said the Sixth Phase government under President Samia Suluhu Hassan was firm to ensure that inclusivity and equal rights remain stronger than ever.

 

The deputy minister urged the society to reconsider norms and create an environment where every person, irrespective of their abilities, can thrive and contribute to the progress of the nation.

 

According to him, the government was reviewing the policy for development and services for PWDs, adding that the exercise was participatory by engaging all stakeholders.

 

"The multi sectoral team is continuing with the exercise and this is done to implement a directive by President Samia when she met PWDs at Chamwino State House in Dodoma," he noted.

 

The workshop, brought together an inspiring group of individuals who have defied all odds to achieve greatness in various fields.

 

The focus, according to the chairperson of the Federation of Disabled People's Organisations, Mr Ernest Kimaya, was on fostering collaboration, sharing experiences and providing valuable resources to empower those living with disabilities.

 

SHIVYAWATA Chairperson paid tribute to WHO for bringing together all disability groups to engaged in dynamic discussions, interactive sessions, and practical skill-building exercises.

 

"WHO has always been with us to ensure that we are healthy, because there are no lives without healthier persons," said Mr Kimaya.

 

-Daily News.

 

 

 

 

Tanzania: Cop 28 - Samia Touts Clean Energy Use

UAE, Dubai: PRESIDENT Dr Samia Suluhu Hassan on Saturday said clean cooking energy is the heart of climate change mitigation for inclusive sustainable development in Africa.

 

Dr Samia made the statement while presiding over the launch of the Africa Women Clean Cooking Support Programme (AWCCSP) which was one of sideline events at the on-going Conference of the Parties (COP 28) in Dubai, United Arab Emirates (UAE).

 

She said the urgency for fostering clean cooking fuel is rooted from the fact that as of today 80 per cent of Sub Saharan Africa's households use wooden biomass energy which has adverse impact on the environment and health.

 

 

Dr Samia expounded that such a portion of wooden biomass energy use has been culminating in deforestation amounting to 3.9 million between 2010 and 2020 hectares of forest in Africa, a situation that retards the continent's efforts on cutting carbon emission (CO2).

 

Dr Samia said the wooden biomass energy has been also leading to women and girls' health problems after a prolonged inhalation of thick fumes from firewood, saying it is from this ground the AWCCSP is designed to solve the problems pertaining to loss of biodiversity.

 

"We decided to launch this programme to show our own commitment to mitigations, we want to show that even though our emission levels are relatively low, we will also act and deliver," she said.

 

"Clean cooking energy is about mitigation, women empowerment and welfare. Women and girls bear the brunt of lack of sustainable energy cooking solutions" Dr Samia stressed.

 

 

She said for decades women in Africa have been using a lot of their time in gathering firewood which comes with lack of time engaging in economic production, adding that the AWCCSP will bridge the economic disparity while making Africa green.

 

She said the programme which encompasses promotion of use of gas cooking stoves and gas cylinders in Africa, Tanzania in particular by fostering energy and policies changes to cater for the earth's prosperity, will cut carbon emission significantly.

 

She also used the platform to call upon fellow heads of state and stakeholders including the United Nation Capital Development Fund (UNCDF) to collaborate with Tanzania in fast tracking realisation of positive results from the programme.

 

Through the agenda-responsive and fair energy transition method, President Samia believes they can transform the energy landscape, empower women and girls, and usher in a more sustainable future for Africa.

 

 

"Your invaluable contribution will be the driving force behind this transformative journey," she noted.

 

Dr Samia said collective commitment should manifest itself in concrete actions that empower and uplift people's lives.

 

"The insights shared and commitments made here today give us an impetus to push forward with this programme," she said, adding "I'm convinced that we can see collaboration and accelerate the achievement of universal access to clean cooking across Africa."

 

"As a way forward, I wish to propose that in collaboration with other states and partners... Tanzania offers to convene an expert meeting in Tanzania on the date specified and will inform all of you." Dr Samia noted.

 

According to Dr Samia, a group of specialists will be gathered to discuss specifics on how to organise and implement the initiative to guarantee that a broad effect can be achieved.

 

For his part, South Africa President, Mr Cyril Ramaphosa commended Dr Samia for taking a leading role in calling for clean cooking energy which is an urgent development issue.

 

He said South Africa has well succeeded in ensuring electricity access across the country by over 93 per cent but mostly powered by coal which is fossil fuel.

 

He argued that as Africa undergoes transition to clean cooking energy capitalising in available renewable energy source is a must.

 

Mr Ramaphosa said the country will achieve its renewable energy ambition by engaging people in rural and urban areas including those investors in fossil fuel to transform their power plants into clean ones.

 

African Development Bank Group's (AfDB) President, Dr Akinwumi Adesina highlighted the urgent nature of transition to clean energy in Africa, saying at least 300,000 women and 300,000 girls die every year in the continent due to unclean cooking energy usage.

 

Dr Adesina said realisation of clean cooking energy all over the continent requires a total of 4 billion US dollar (about 10tri/-) of investment per year.

 

He called upon African countries to effectively use the natural gases available as pivot for clean cooking energy utilisation in households.

 

The COP 28 kicked off on November 30 and is expected to conclude on December 12 this year.

 

-Daily News.

 

 

 

 

Mozambique State Loses Over 43 Millions Meticals Due to Poultry Smuggling

Maputo — Maputo, 3 Dec (AIM) - The Mozambican state lost over 43 million meticais (about 670 thousand US dollars, at the current exchange rate) this year due to the smuggling of poultry products across the borders of the southern province of Maputo.

 

According to Maria Machicoa, of the Maputo provincial branch of the Mozambique Tax Authority (AT), customs duties and other taxes on products smuggled in the last two weeks from South Africa, should have raised around 14 million meticais.

 

She was speaking to reporters minutes after the incineration of around 500 kilos of chicken and 4,500 dozen eggs, which had been seized from smugglers. The incineration took place on Friday at the Mulotane administrative post, in Maputo's Boane district.

 

For her part, the director of Agriculture and Fisheries in Maputo province, Mariamo José, said the destruction of the smuggled poultry products is aimed at preventing disease and ensuring public health.

 

"The incineration also aims to protect our national industry from avian flu detected in neighboring South Africa', he said, explaining that these products were recently seized at the Ressano Garcia border crossing in Maputo province.

 

 

 

 

Tanzania's Digital Economy Framework Set for Launch in January

Dar es Salaam — A working group of respected digital experts drawn from public and private institutions have finally endorsed suggestions and recommendations on the proposed national digital economy programme.

 

The programme, to be known as Tanzanian Digital Economic Framework (DEF), will guide the nation in handling electronic messages and documents in its day-to-day economic activities.

 

The Permanent Secretary in the Ministry of Information, Communication and Information Technology, Dr Mohammed Abdula, said here yesterday that that now the proposed document has been endorsed by experts, it is a full-fledged official document ready for formal launch.

 

 

"We have finished the basic work; the most important part of this national effort on this proposed programme. It will be launched early next year as Tanzania's Digital Economic Framework (DEF), Dr Abdulla said, adding that with the work done by experts this is cause to believe that the nation will benefit a lot from the document.

 

Since November 6, this year, distinguished individuals have worked on the document giving recommendations and suggestions so that Tanzania benefits from the implementation of the framework. The team worked as the Digital Transformation Working Group (DTWG) of the Tanzania National Business Council (TNBC) and Mr Abdulla was the group's chairman.

 

The document adopted by the working group will be formally submitted the National Chairman of the TNBC, President Samia Hassan for her perusal, Dr Abdulla said.

 

The TNBC Executive Secretary, Dr Godwill Wanga, praised the work of the working group saying with the DEF in place Tanzania will be able to operate a digital economy that will be a competitive economy in the world. "The digital economy will cut down costs in doing business. Therefore, the national economy will grow and the incomes of individual Tanzanians will grow too," he said.

 

 

The Managing Director of the Azam Media, Mr Tido Mhando, said he believes Tanzania's media will give support to the DEF because they are obvious significant beneficiaries. "The government's strategies in strengthening the ICT are now obvious because the government has been working closely with the private sector towards having a digital national economy. This has been a very welcome development for the good of the nation," he said.

 

The Chief Executive Officer of Multichoice Tanzania, Ms Jacqline Woiso, promised young people of unreserved support in developing the national digital economy.

 

"Using the DEF, we shall support talented young people who are all out to develop digital initiatives. We also promise to work closely with the education ministry towards that end," she pledged.

 

-Daily News.

 

 

 

Africa: Botswana Africa Good for Investment

Dubai — Vast natural resources, coupled with a vibrant and educated youthful population put Botswana and the African continent in better stead as investment destination for green technologies, says President Dr Mokgweetsi Masisi.

 

He speaking during a high-level panel discussion on the sidelines of COP28 in Dubai, United Arab Emirates on Friday. Panelists included President Dr Hage Geingob of Namibia, Mr Jean-Paul Adam Deputy Special Advisor to the UN on Africa, Ms Joyce Msuya, Assistant Secretary-General for Humanitarian Affairs as well as Mr Kamal Amakrane, Managing Director for Global Centre for Climate Mobility.

 

 

The quartet deliberated on the topic titled: Addressing the Climate Crisis and Human Settlements Nexus in Africa, Preventing further loss and damage from climate impact through technology.

 

President Dr Masisi, who hosted the event in his capacity as Chair for Knowledge and Data for Africa Climate Mobility Flagship Programme reminded the audience that the harsh realities occasioned by climate change had led to loss of lives, displaced people, degradation of the environment and affected agricultural throughput.

 

President Masisi was however, quick to point out that Africa and the rest of the developing world should not just apportion the blame on the developed world because they too contributed to the greenhouse effect albeit at a small scale.

 

It is to this end, he stated, that Africa should forge partnerships with the rest of the world to bring about lasting solutions to arrest climate change.

 

 

"We have the responsibility to avoid pitfalls," he underscored.

 

He was happy that COP28 had reached a major milestone by delivering a historic agreement to operationalise the fund, which would assist developing nations that were vulnerable to the adverse effects of climate change referred to as the 'loss and damage'.

 

The United Arab Emirates has contributed US$100 million, the United Kingdom 40 million pounds, Japan US$10 million and the United States has contributed US$17.5 million.

 

Dr Masisi's wish is to have Botswana have partners in solar harnessing and water harvesting; an undertaking, he relayed would not only improve the livelihoods of Batswana but would go a long way at keeping at bay the use of fossil fuels that were not environmentally friendly.

 

President Geingob's main concern was the lack of action by the developed world that he said was essential for the further development of the motherland through the employment of eco-friendly or renewable technologies.

 

He said his country was endowed with huge resources that only needed investors to chip in and turn things around.

 

Ms Msuya echoed President Geingob's words and called for action that she said would ensure progress as far as green technology and capacity building of the developing nations were concerned.

 

Mr Amakrane was of the view that people needed to be empowered in their habitats to curb mobility that may be caused by the harsh realities of climate change.

 

Once empowered, he said people would stay put and not see the need to traverse elsewhere in search of better livelihoods.

 

Mr Adam's take was to learn the world's best practices of mitigation and adaptation that he said would bring about a win-win solution for all.

 

-Botswana Daily News.

 

 

 

 

Spotify to axe 1,500 workers to cut costs

Swedish music-streaming giant Spotify has announced it is cutting 17% of its workforce, about 1,500 jobs, as the company seeks to clamp down on costs.

 

Chief executive Daniel Ek said he had made the "difficult" decision with economic growth slowing "dramatically".

 

Spotify employs about 9,000 people, and Mr Ek said "substantial action to rightsize our costs" was needed for the company to meet its objectives.

 

He added he understood the cuts would be "incredibly painful for our team".

 

"I recognize this will impact a number of individuals who have made valuable contributions", Mr Ek said. "To be blunt, many smart, talented and hard-working people will be departing us."

 

Spotify cut staff earlier this year but these plans dwarf those previous announcements.

 

In its latest results, Spotify had reported a profit of €65m (£55.7m) for the three months to September - its first quarterly profit for more than a year - helped by price rises and higher subscriber numbers.

 

The tech company has been expanding worldwide as it seeks to reach a billion users by 2030.

 

It currently has 601 million of them, up from 345 million at the end of 2020.

 

Mr Ek said that given the recent "positive" results, the job cuts being announced "will feel surprisingly large" for many people.

 

He said Spotify had considered making smaller reductions during 2024 and 2025, but decided that more drastic action was needed to improve the company's finances.

 

Since it launched, Spotify has spent a lot of money on growing the business, and in securing exclusive content, such as podcasts created by the likes of Michelle and Barack Obama as well as the Duke and Duchess of Sussex.

 

The deal with Harry and Meghan cost a reported $25m (£19.7m) and saw just 12 episodes delivered over two and a half years before the deal ended in June.

 

Commenting on podcast content, Mr Ek told the BBC in September: "The truth of the matter is some of it has worked, some of it hasn't."

 

The company will start informing affected employees on Monday. Employees will get about five months of severance pay, holiday pay, and healthcare coverage for the severance period.

 

Spotify will also offer immigration support to employees whose immigration status is connected with their employment.

 

Tech layoffs continue to bite

These jobs losses are the latest in a series of layoffs announced in the tech industry, which has cut tens of thousands of jobs following a boom during Covid pandemic lockdowns.

 

British telecom group BT said in May that it will axe up to 55,000 jobs by the end of the decade.

 

Tech giants Meta and Microsoft also revealed plans to reduce their workforce by as many as 10,000 employees this year.

 

Online retail giant Amazon announced it was cutting over 18,000 jobs worldwide and Google parent company Alphabet announced cuts of around 12,000 people.

 

Smaller firms have also felt the pinch with Yahoo and LinkedIn both announcing cuts this year too.

 

Apple however seems to have bucked the trend, announcing that it would be hiring some staff in the AI sector.-bbc

 

 

 

 

Could X go bankrupt under Elon Musk?

Elon Musk's profane attack on advertisers boycotting X, formerly known as Twitter, has baffled experts. If advertisers keep leaving and don't come back, can X survive?

 

Short presentational grey line

In April, I sat down with Musk for the first of his many chaotic interviews about his acquisition of X.

 

He said something that, in hindsight, was rather revealing, but which passed me by at the time.

 

Talking about advertising, he said: "If Disney feels comfortable advertising children's movies [on Twitter], and Apple feels comfortable advertising iPhones, those are good indicators that Twitter is a good place to advertise."

 

Seven months later, Disney and Apple are no longer advertising on X - and Musk is telling companies that have left to "Go [expletive] yourself."

 

The companies paused adverts after an investigation by a US organisation, Media Matters for America, flagged ads appearing next to pro-Nazi posts. X fiercely challenged the report, questioning its research methods, and launched a lawsuit against the organisation.

 

In a fiery interview on Wednesday, Musk also used the "b" word - bankruptcy, in a sign of just how much the ad boycott is damaging the company's bottom line.

 

Elon Musk visits Israel after antisemitism row

For a company he bought for $44bn (£35bn) last year, bankruptcy might sound unthinkable. But it is possible.

 

To understand why, you have to look at how reliant X is on advertising revenue - and why advertisers are not coming back.

 

Although we don't have the latest figures, last year around 90% of X's revenue was from advertising. It is the heart of the business.

 

On Wednesday Musk more than hinted at this.

 

"If the company fails… it will fail because of an advertiser boycott. And that will be what bankrupts the company." he said.

 

Mark Gay, chief client officer at marketing consultancy Ebiquity, which works with hundreds of companies, says there is no sign anyone is returning.

 

"The money has come out and nobody is putting a strategy in place for reinvesting there," he says.

 

On Friday, retail giant Walmart announced it was no longer advertising on X.

 

After Musk had told advertisers who quit X where to go in Wednesday's interview at the New York Times DealBook Summit, he said something that made advertisers wince even harder.

 

"Hi Bob", he said - a reference to the chief executive of Disney, Bob Iger.

 

When Musk puts chief executives "in his crosshairs" like this they will be even more reticent to be involved with X, says Lou Paskalis, of marketing consultancy AJL Advisory.

 

Jasmine Enberg, principal analyst at Insider Intelligence, adds: "It doesn't take a social media expert to understand and to know that publicly and personally attacking advertisers and companies that pay X's bills is not going to be good for business."

 

So could X really go bankrupt?

If advertisers are gone for good, what does Musk have?

 

When I interviewed him in April, it was clear he understood that subscriptions on X were not going to replace advertising money.

 

"If you have a million people that are subscribed for, let's say, $100 a year-ish, that's $100m. That's a fairly small revenue stream relative to advertising," he told me.

 

In 2022, Twitter's advertising revenue was around $4bn. Insider Intelligence estimates this year it will drop to $1.9bn.

 

Elon Musk launches profane attack on X advertisers

Elon Musk visits Israel after antisemitism row

The company has two major outlays. The first is its staffing bill. Musk has cut X to the bone already, laying off thousands.

 

The second is servicing the loans Musk took out to buy Twitter, totalling about $13bn. Reuters has reported that the company now has to pay $1.2bn or so in interest payments every year.

 

If the company cannot service the interest on its loans or afford to pay staff then, yes, X really could go bankrupt.

 

But that would be an extreme scenario that Musk would surely want to avoid.

 

A worker uses a smartphone while dismantling a Twitter's sign at Twitter's corporate headquarters building as Elon Musk renamed Twitter as X and unveiled a new logo, in downtown San Francisco

 

 

He has options. By far the simplest thing for Musk would be to put more of his money in - but it sounds like he doesn't want to do that.

 

Musk could try to renegotiate with the banks for less onerous interest payments. He could ask, for example, for "payment in kind" interest - where payments are delayed.

 

But if renegotiation does not work and the banks don't get their money, then bankruptcy could be the only option, and at that point the banks could try to push for a change in management.

 

"It would be very messy and complex," says Jared Ellias, a professor of law at Harvard Law School. "And it would be extremely challenging. It would create a lot of news because he would constantly get deposed and have to testify in court."

 

It could be terrible for Musk's business reputation, and would also impact how Musk could borrow money in the future.

 

And in a bankruptcy scenario, would X simply stop working?

 

"I find that to be very hard to believe," says Ellias. "If that happened, it'd be because Elon decided to pull the rug out. But even then, if he were to do that, the creditors would have the option of pushing the company into bankruptcy, getting a trustee appointed and turning the lights back on," he says.

 

What next for Musk?

The obvious solution to all these problems for X is to simply find another revenue stream - and fast. Musk is certainly trying.

 

He has launched a new audio and video calls service. Last month he streamed himself playing video games - he hopes X can compete with apps like Twitch.

 

He wants X to become the "everything app", covering everything from chat to online payments.

 

According to the New York Times, which got hold of the pitch deck Musk was giving to investors last year, X was supposed to bring in $15m from a payments business in 2023, growing to about $1.3bn by 2028.

 

X is also sitting on a huge treasure trove of data, and its vast archive of conversations can be used to train chatbots. Musk believes this data is vastly valuable.

 

So X does have potential.

 

But in the short term, none of these options plug the hole advertisers have left.

 

It's why Musk's profane outburst was so baffling to many.

 

"I don't have any theories that make sense," Paskalis says. "There is a revenue model in his head that eludes me."

 

--bbc

 

 

Bankruptcy 'opportunity' after student loan crisis

Drowning in debt, more and more Americans are taking advantage of a Biden-era change that has made it easier to have student loans forgiven - if they're willing to apply for bankruptcy.

 

Elizabeth Hadzic, a divorced mum-of-three, has ideas about what she would do if she weren't facing a mountain of student debt: open her own therapy practice, return to her native Canada, work remotely and spend a month with her grandchild.

 

A change to the US bankruptcy process could make it all possible.

 

Last year, the US said it would make it easier for people to free themselves of student loans in bankruptcy, a prospect long considered hopeless.

 

It is a move with potentially vast implications in a country where more than 43 million people carry student debt, generating a total debt load of more than $1.7tn (£1.34tn), and borrowers often face heavy monthly bills decades after they have finished their education.

 

Bankruptcy, said Ms Hadzic, "opens up opportunity that I couldn't really see before."

 

This summer she asked the government to erase more than $100,000 in debt from student loans she took on to train as a therapist. She faces potential monthly bills of more than $1,400 - a sum she said she cannot afford alongside the rest of her expenses.

 

"I thought I'd be able to pay it off... but what I do for work just doesn't make that volume of money," said the 50-year-old, who worked for community health, prison and homeless programmes before switching to a private company in 2019 to try to earn more.

 

"In my mind, I kept thinking I'm going to pay this money back until I realized it just wasn't going to happen... I would be paying this the rest of my life."

 

For decades, student loans in the US have faced a higher bar for forgiveness than other debts, like credit-cards, with borrowers forced to prove "undue hardship" if forced to repay - a term that has led to contentious court battles.

 

The rules were created to prevent borrowers from taking on big loans with no intention of repaying - and limit the potentially huge cost to the federal government, which is the largest provider of student loans in the US.

 

But critics say it has led to a system that is unduly harsh, generating horror stories of the government fighting bankrupt single mothers and cancer patients for thousands of dollars in monthly debts they are unable to pay.

 

Unlike the UK and other parts of the world, monthly student loan payments often bear no relation to a borrower's income; nor do they come with an expiration date.

 

President Joe Biden, whose most ambitious debt forgiveness plan was blocked by the courts this year, backed changes to the bankruptcy system during his 2020 presidential campaign.

 

Guidance from the Department of Justice announced last year instructed officials to avoid litigation and agree to discharge the loans if a borrower faces higher expenses than income; is unlikely to be able to pay the loan in the future; and has made an effort to pay.

 

An estimated 250,000 people with student loans file for bankruptcy in the US each year, and under the new guidelines, about 100,000 could be eligible for some student debt relief, according to estimates by Jason Iuliano, a law professor at the University of Utah.

 

But so far, only a small number - about 630 - have actually petitioned to discharge their student loans as part of their personal bankruptcy.

 

The Department of Justice would not say how many of those claims had been resolved, but said some relief had been granted in 99% of those that had. Advocates said that number stood at just a few dozen as of July.

 

With many lawyers still learning about the changes, John Rao, senior attorney at the National Consumer Law Center, said the programme needed more time to prove itself.

 

But even if the numbers remain small compared to the problem, he said the impact should not be underestimated.

 

"There are real stories and people behind those numbers," he said. "While it may only be a couple thousand who might use this, for them, it's changed their lives."

 

Kestrel O'Conally of Washington filed for relief this spring, hoping for a discharge of more than $600,000 in student debt, including nearly $175,000 in interest, racked up in pursuit of a doctorate in psychology.

 

With little other debt, the 41-year-old said she had never considered bankruptcy before a friend alerted her to a news article describing the changes.

 

In her situation, as a renter with few assets, the consequences from bankruptcy, like having credit cards cancelled, seemed like small prices to pay, she said.

 

"It was a no brainer," she said. "I get my life back."

 

Those who have pursued relief via bankruptcy typically face months of wait. Aaron Ament, president of the National Student Legal Defense Network, warned those delays could worsen if the idea gains traction.

 

Petitions in the first 10 months since the change were already about 30% more than the average pre-pandemic year.

 

Those numbers are expected to accelerate, as borrowers have to resume student loan payments after a three-year pandemic-related pause ended in October.

 

"It's getting real now in terms of coming up with the money to pay the loans out of their existing budget," said Latife Neu, a student loan and bankruptcy lawyer in Washington state, who said she had seen a steady uptick in inquiries.

 

Ms Hadzic said her bankruptcy was not technically triggered by her student loans, but by thousands of dollars in credit card debt racked up when her youngest son landed in hospital and she had to take off work.

 

But her lawyer, Timothy Chambers, said without addressing the student loans as well, he feared she could land in a similar financial crisis.

 

"I'm hoping this will be able to give people like Elizabeth that absolute fresh start which bankruptcy is supposed to give," he said.-bbc

 

 

 

 

US aims to limit China's role in electric cars

The US has unveiled rules aimed at keeping Chinese components out of electric cars sold in the country.

 

The restrictions are tied to government incentives for electric cars made in America.

 

The hotly-debated limits are intended to help build up the industry in America, but critics say they could slow adoption of electric cars.

 

Chinese firms currently produce the vast majority of electric car batteries and the minerals used in them.

 

But US politicians have cast over-reliance on Chinese manufacturers as an economic and security risk.

 

Planned partnerships between major firms, such as Ford and China's CATL, a battery manufacturer, have been subject to criticism and debate.

 

Last year, Congress passed a climate law offering billions in tax incentives and other money to try to boost the industry in the US.

 

The law included a tax incentive worth up to $7,500 per vehicle for buyers of electric cars made in America.

 

The climate law, which the White House says has sparked nearly $100bn in private investment in the US related to electric cars, immediately barred electric cars made outside the country from receiving tax credits.

 

Starting in 2024, the law also barred cars from eligibility for tax credits if they contain battery components manufactured or assembled by a "foreign entity of concern".

 

By 2025, the restrictions will expand to cars that contain critical materials extracted, processed or recycled by such an entity.

 

The proposal announced on Friday says the government will define a "foreign entity of concern" as a company headquartered in or owned or controlled by China, Russia, Iran or North Korea.

 

Any company in which the government of these countries holds 25% or more of a board's seats, voting rights or shares would fall under the rules, which now open for a period of public comment.

 

"President Biden entered office determined to reverse the decades-long trend of letting jobs and factories go overseas to China," said John Podesta, senior adviser to the President for Clean Energy Innovation and Implementation.

 

"Thanks to the Investing in America agenda and today's important guidance from Treasury and the Department of Energy, we're helping ensure that the electric vehicle future will be made in America."

 

Only about 20 of more than 100 models of electric vehicles for sale in the US currently qualify for the tax credit, according to the Alliance for Automotive Innovation (AAI), a lobby group representing carmakers, which said the guidance offered much needed clarity to their members.

 

It said it appeared that cars produced using batteries and materials from certain kinds of partnerships with Chinese firms, if located in the US, would not run afoul of the rules.

 

It also praised officials for exempting certain "trace" materials from the rules for two more years.

 

"The EV transition requires nothing short of a complete transformation of the US industrial base. It's a monumental task that won't happen overnight," AAI president John Bozzella wrote.

 

"The Treasury guidance recognizes the complexity of this task and the challenges facing automakers with some good balance."

 

But Senator Joe Manchin, a Democrat from a coal state who provided a key vote on the climate bill, said the administration was interpreting the law too loosely.

 

"This administration is, yet again, trying to find workarounds and delays that leave the door wide open for China to benefit off the backs of American taxpayers," he said in a statement, adding that he would push for revisions and support any lawsuit against the rule.-bbc

 

 

 

 

Couple's property ordeal captivates Chinese internet

A young Chinese couple whose struggles to own a flat shed light on the country's economic downturn have captivated the nation.

 

Zhang Yiliang and his wife Dong Lijun, both in their 30s, have documented the last two years of their lives, starting with the moment they purchased the flat. Their account "Liangliang Lijun couple" has earned more than 400,000 followers on Douyin.

 

What began as a celebration eventually ran into trouble, including rows with the property developer who they said owed them money. In recent weeks, they alleged they were assaulted and had their videos censored, which gained them the sympathy of millions online.

 

Their experience as small-towners who had big-city dreams appears to have resonated with so many ordinary Chinese people - and mirrored their challenges and dashed hopes amid a property crisis in a sluggish economy.

 

"What you are posting is real life," a Douyin user wrote. "In fact, life is hard for most young people. It's not a party every night." Another comment, which was liked hundreds of times, read: "Their story resonates because they are just like us."

 

Some said their aspirations represented the so-called Chinese dream, a concept popularised by President Xi Jinping, which champions the rejuvenation of the Chinese nation.

 

"Liangliang and Lijun painted a visible model for the 'Chinese dream'," a former journalist said in a video on his social media channel. "This is to tell everyone, especially young people: The most diligent, law-abiding, and optimistic citizens do not deserve the Chinese Dream, let alone others. Thanks to the couple for helping us see the cruel side of China's reality."

 

But the video has since been deleted, and his Weibo account has been banned from posting.

 

At the centre of the couple's emotional rollercoaster is their flat, which they bought in 2021. They first posted about their purchase on Douyin, the Chinese version of TikTok in November that year.

 

"Now among all the lights, there will be one lit up just for me," the overjoyed couple wrote alongside the video they shared on their account, Liangliang and Lijun.

 

People attend a job fair for university graduates at a gymnasium in Hefei, Anhui province, China September 4, 2023.

 

They posted constantly about the progress of the construction of their flat, and visited the site almost every month.

 

One month later, Ms Dong came home with bad news - she was forced to accept a salary cut, bringing it down to just 2,000 yuan (about $282; £222) a month. In a video, she is seen crying while delivering the news to her husband: "Our salary is already the lowest... What should I do?"

 

The video likely echoed similar stories across China as unemployment increased. "I can't be the only one crying while watching their videos," a comment read.

 

But for the young couple, the worst was yet to come.

 

In May 2022 the developer - Sunac China Holdings Limited - admitted to financial problems after missing an interest payment deadline on a bond.

 

This was a time when other property developers, such as Evergrande, were struggling to pay off debts and deliver homes. But Mr Zhang and Ms Dong were still optimistic. Days after the announcement, Mr Zhang said in a post: "We chose Sunac so we should trust them. We believe they will act responsibly as a company should, and deliver the project."

 

Anxious Chinese home buyers reel from Evergrande crisis

Why people in China stopped paying their mortgages

But two months later construction stopped. They spent the next few months calling for the firm to resume construction, which happened early in 2023. During that time, they had a daughter.

 

Life seemed like it was back on track - but they said the company still owed them a 20,000-yuan rebate, which they had been asking for over months.

 

Then on 15 November, the couple went to an event hosted by Sunac and live-streamed their encounter. Their Douyin account has no posts after that day.

 

But soon social media was abuzz with posts and comments, saying the couple had been beaten during the livestream, video of which is no longer available. Screengrabs that have been shared by users also show a series of posts, where Mr Zhang appears to have visited a hospital. In another video posted on Ms Dong's personal account on 18 November, he said, "There are a lot of rules in this society for us to follow. It's not unusual that our videos got restricted or disappeared."

 

The couple said they called the police immediately. Local police told the Southern Metropolis Daily that they had "punished" the attackers and would follow up on the matter. Sunac China did not respond to the BBC's questions.

 

In a now-deleted video, Ms Dong puts tape over Mr Zhang's mouth - possibly a sign of them under pressure to be silent

The incident drew enormous attention online and from Chinese media. It topped the topic chart on Weibo, China's equivalent of X, with tens of thousands of comments and posts. While some cast doubt on their version of events, many sympathised with them.

 

"People get beaten up and they are not allowed to speak up. Are they still allowed to live?" a top-liked comment reads. "Can we help them, and help our society?" another Weibo user asked.

 

"They went to the developer again and again, because they are very poor and they really need that money. They recorded the process of being beaten, and they were wronged but had nowhere to go," Hu Xijin, former editor-in-chief of the state-run Global Times, wrote on Weibo.

 

The memes that lay bare China's youth disillusionment

"It is very important for us to ensure ordinary people's hard work pays off, and their passion and hope for the future stays alive," he added.

 

Mr Zhang and Ms Dong say they are yet to receive the rebate. Last week they provoked fresh discussion - full of anger and disappointment - when they said they were going to leave Zhengzhou and go back to Mr Zhang's hometown.

 

"Ordinary people like them are the majority, so the way things ended for them is particularly painful to us," a Weibo comment liked thousands of times reads.

 

But the couple have since said they are undecided - suspicion joined sympathy as some users wondered whether Mr Zhang and Ms Dong are profiting from all the attention online.

 

Others asked if they were giving in to pressure from local authorities, who wanted to stave off the bad publicity for Zhengzhou.

 

A comment under their latest video, on Ms Dong's personal Douyin account, reads: "It's too hard. It's too hard to be yourself."-bbc

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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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