Major International Business Headlines Brief::: 14 December 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  14 December 2023 

 


 

 




 


 

 


 

ü  Somalia: IMF and World Bank Announce U.S$4.5 Billion in Debt Relief for
Somalia

ü  Nigeria: Economic Reforms - Nigerians Under Poverty Line Rise to 104
Million - World Bank

ü  South African Govt Eyes Nuclear Energy Despite Just Energy Transition
Plans

ü  South African Govt Eyes Nuclear Energy Despite Just Energy Transition
Plans

ü  Nigeria: Tinubu Sacks Heads of Nigeria's Aviation Agencies, Appoints
Replacements

ü  Somalia Granted $4.5 Billion in Debt Forgiveness

ü  Africa: COP28 Ends With Agreement On Fossil Fuels, but Reservations
Remain

ü  Kenya's Debt Distress Averted as Economy Gains Stability, Says President
William Ruto

ü  Tanzania: Eacop First 100 Km Consignment Pipes Arrive in Dar

ü  Kenya: Diaspora Key in Our Economic Development - President Ruto

ü  Congo-Kinshasa: Would Congo Prosper If It Dumped the Dollar?

ü  Africa: Could Angola Become Africa's Logistics Hub?

ü  Rwanda: Facebook, Instagram to Start Paying Kenyan Content Creators

ü  Federal Reserve signals interest rate cuts next year

ü  Ex-BP boss to lose £32m after 'serious misconduct'

ü  Etsy: Online marketplace lays off 11% of staff to cut costs

ü  Elon Musk's Tesla recalls two million cars in US over Autopilot defect

ü  Mastercard and Visa face post-Brexit card fee cap

 


 

 


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Somalia: IMF and World Bank Announce U.S$4.5 Billion in Debt Relief for
Somalia

The Executive Boards of the International Monetary Fund (IMF) and the World
Bank’s International Development Association (IDA) have approved[1] the
Heavily Indebted Poor Countries (HIPC) Initiative Completion Point for
Somalia, which provides total debt service savings for the country of US$4.5
billion.[2] Following HIPC Completion Point, Somalia’s external debt has
fallen from 64 percent of GDP in 2018 to less than 6 percent of GDP by end
2023. This debt relief will facilitate access to critical additional
financial resources that will help Somalia strengthen its economy, reduce
poverty, and promote job creation.

 

 

Debt service relief has been provided by the IMF (US$343.2 million), IDA
(US$448.5 million), African Development Fund (ADF) (US$131.0 million), other
multilateral creditors (US$573.1 million), as well as by bilateral and
commercial creditors (US$3.0 billion). Bilateral creditors include members
of the Paris Club, creditors from the Arab Coordination Group, and other
official bilateral creditors.

 

“Somalia's debt relief process has been nearly a decade of cross
governmental efforts spanning three political administrations. This is a
testament to our national commitment and prioritization of this crucial and
enabling agenda,” said Somalia’s President, H.E. Hassan Sheikh Mohamud. “For
Somalia to move forward in the positive economic direction we all needed, we
had to reform our laws, systems, policies, and practices. Reaching the HIPC
Completion Point is the fruit of these reforms. When my government committed
to the reform program nearly a decade ago, this was the result we
envisaged.”

 

 

“Somalia's reform journey has been a true national process culminating in
the remarkable success of determined economic reform implementation despite
external challenges such as painful regular climatic shocks and the ongoing
fight against international terrorism. We are proud to have reached the HIPC
Completion Point,” said Somalia’s Minister of Finance, H.E. Bihi Iman Egeh.
“Through our enabling reforms, we have consistently raised domestic revenue,
strengthened public financial management, improved good governance and
central banking operations, and enhanced the capacity of our national
institutions. We will build on these successes going forward.”

 

The Executive Directors of both institutions determined that Somalia has
made satisfactory progress in meeting the requirements to reach the HIPC
Completion Point. Somalia has implemented a poverty reduction strategy for
at least one year and maintained a track record of sound macroeconomic
management as evidenced by the satisfactory implementation of the Extended
Credit Facility (ECF) supported program (see IMF Press Release No. 23/437).
This performance was achieved despite Somalia having to face the global
Covid-19 pandemic, prolonged and severe drought, a desert locust
infestation, the impact of external shocks on food supply and prices, and
significant security risks. Somalia maintained steadfast progress on
structural reforms and implemented thirteen of fourteen floating Completion
Point triggers, including on public financial and expenditure management,
domestic revenue mobilization, governance, social sectors, and statistics.
The IMF Executive Board granted a waiver for the adoption and implementation
of a single import duty tariff schedule at all ports.

 

 

“Somalia has made significant strides in rebuilding its economy and
institutions after a devastating civil war. Reaching the HIPC Completion
Point is a testament to the Somali authorities’ strong and sustained policy
and reform efforts over the past years, despite numerous challenges, as well
as the strong support from international partners,” said the IMF’s Director
for the Middle East and Central Asia, Jihad Azour. “The Completion Point is
a momentous achievement that restores debt sustainability and over time
offers access to new external financing to support inclusive growth and
poverty reduction. Maintaining sound macroeconomic policies and sustaining
the reform momentum remain critical after the Completion Point for Somalia
to reap the full benefits of the debt relief.”

 

“Reaching the HIPC Completion Point is a historic milestone for which the
Somalia Government deserves full credit,” said the World Bank Vice President
for Eastern and Southern Africa, Victoria Kwakwa. “Somalia has implemented
critical reforms in support of pro-poor growth, poverty reduction, better
public financial management and debt management. These reforms establish the
conditions for the effective use of irrevocable debt relief to support the
people of Somalia. Deepening structural reforms after the Completion Point
will be critical to boost private sector growth and create fiscal space to
invest more in human development and infrastructure in support of inclusive
and resilient growth.”

 

The Somali authorities remain firmly committed to sustaining the reform
momentum post-HIPC to build resilience, promote inclusive growth, and reduce
poverty. The World Bank and IMF will continue working together to provide
the technical assistance and policy guidance the authorities need to achieve
these goals. The IMF will continue its engagement with Somalia in the
context of the new three-year IMF financial arrangement as well as capacity
development support sponsored by the Somalia Country Fund. The World Bank
has agreed on a new five-year Country Partnership Framework with Somalia
focused on continuing support to state and institution building,
infrastructure and jobs, human capital, and resilience. The current World
Bank portfolio in Somalia stands at US$2.3 billion spanning human capital
development, access to energy, and action against cyclical climatic shocks
such as floods and drought.

 

Debt service savings of US$4.5 billion incorporate debt relief of about
US$4.2 billion under the Enhanced HIPC Initiative, US$115.1 million under
the Multilateral Debt Relief Initiative (US$96.4 million from IDA and
US$18.7 million from ADF), US$164.3 million under beyond-HIPC debt relief
from the IMF, and commitments from Paris Club creditors to provide
beyond-HIPC debt relief to cancel most of their outstanding claims.

 

The Heavily Indebted Poor Countries (HIPC) Initiative

 

In 1996, the World Bank and IMF launched the HIPC Initiative to create a
framework in which all creditors, including multilateral creditors, can
provide debt relief to the world's poorest and most heavily indebted
countries to ensure debt sustainability, and thereby reduce the constraints
on economic growth and poverty reduction imposed by the unsustainable debt
service burdens in these countries. Somalia is the 37th country to reach
Completion Point under the HIPC Initiative.

 

The Multilateral Debt Relief Initiative (MDRI)

 

Created in 2005, the aim of the MDRI is to further reduce the debt of
eligible low-income countries and provide additional resources to help them
reach their development objectives. Under the MDRI, three multilateral
institutions—the World Bank’s IDA, the IMF, and the African Development
Fund—provide 100 percent debt relief on eligible debts to qualifying
countries, at the time they reach the HIPC Initiative Completion Point.

 

 

 

 

Nigeria: Economic Reforms - Nigerians Under Poverty Line Rise to 104 Million
- World Bank

Nigeria's poverty level has taken a notch higher, at the backdrop of the
recent economic and fiscal reforms, World Bank report reveals.

 

A World Bank report has indicated that Nigeria's poverty level has taken a
notch higher, at the backdrop of the recent economic and fiscal reforms.

 

The key reforms include the removal of petrol subsidy and the foreign
exchange market rate restructuring.

 

The bank, however, commended the Federal Government for what it considered
'bold reforms' necessary to rescue Nigeria from fiscal cliff, describing the
current pains as temporary.

 

 

But it also said the policies have created intense pressures on cost of
living, which have pushed more Nigerians into hardship, with 104 million now
living below the poverty line.

 

The World Bank report also indicated that the number of poor people in
Nigeria had grown from 95 million in 2021 to 100 million in 2022, while the
Nigerian Bureau of Statistics, NBS, indicated that the figure was 82.9
million in 2019 and 85.2 million in 2020.

 

In its World Bank Nigeria Development Update, NDP, entitled 'Turning the
Corner: Time to Move From Reforms to Results', the bank stresses the need to
continue with the reform momentum to complete the reforms and to address the
costs of the reforms.

 

It further stated: ''Inflation remains at record high levels for Nigeria,
27.3 per cent Year-on-Year, YoY, in October 2023, partly driven by the
one-off price impacts of the removal of the gasoline subsidy.

 

''The impact of this is especially hard on poor and vulnerable citizens. The
FX market has remained volatile and in a period of continuing adjustment to
the new policy approach, with significant fluctuations in the exchange rate
in both the official and the parallel markets. Revenue gains from the FX
reform are visible.

 

''However, there is a need for more clarity on oil revenues, especially the
financial gains of Nigeria National Petroleum Corporation Limited, NNPCL,
from the subsidy removal, the subsidy arrears that are still being deducted,
and the impact of this on Federation revenues.''

 

In his appraisal of the country's reforms, Shubham Chaudhuri, World Bank
Country Director for Nigeria, stated: ''The petrol subsidy and FX management
reforms are critical steps in the right direction towards improving
Nigeria's economic outlook. Now is the time to truly turn the corner by
ensuring coordinated fiscal and monetary policy actions in the short to
medium term.

 

''Continued reform implementation can ensure that Nigeria benefits from the
difficult adjustments underway. This includes ensuring that improved oil
revenues following the sharply increased PMS price accrue to the Federation.

 

 

''In the medium-term, the economy will then begin to benefit from increasing
fiscal space for development spending, including on power and transport
infrastructure, as well as on human capital.''

 

He further said that between N300 billion -N400 billion was expended on fuel
subsidy monthly, before the subsidy removal and that the expectation was
that the NNPCL should have been paying such amount to the Federation
Account, but which has not been the case.

 

World Bank's recommendations

 

The latest NDU report recommended specific actions required to further
sustain and achieve the full benefits of reforms already embarked on by the
Government.

 

These include: controlling inflation and improving the stability of the FX
market; achieving fiscal consolidation by sustaining savings from the PMS
subsidy reform and improving non-oil revenues; addressing structural
barriers to growth, such as removing trade barriers.

 

It stated further: ''With the continued implementation of macroeconomic
stabilization reforms, Nigeria's economy is expected to grow at an average
annual rate of 3.5 per cent in 2023-2026, or 0.5 per centage points higher
than in a scenario where the reforms had not been implemented.

 

Alex Sienaert, World Bank Lead Economist for Nigeria and co-author of the
Report, also stated: ''In 2024, Nigeria has an opportunity to turn the
corner to a more stable and predictable macroeconomic environment, and
easier access to foreign exchange (FX) and imported inputs, which is
critical to creating new jobs and lifting people out of poverty''.

 

The NDU report indicated that Nigeria was not yet out of the woods but on
the path to full recovery, as a result of the various policies being
implemented by both fiscal and monetary authorities.

 

The World Bank called on the Nigerian National Petroleum Company Limited
(NNPCL) to make public its Statement of Accounts and transparently disclose
its revenue inflows.

 

The report read in part, ''The removal of the subsidy was announced on May
29 and pump prices were adjusted on June1.

 

''This results in expected fiscal savings of around N2 trillion in 2023 or
0.9 per cent of GDP.

 

''Between 2023 and 2025, the expected gains are over N11 trillion, against a
scenario in which the subsidy had continued''.

 

NNPCL's account for scrutiny --Edun

 

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale
Edun, also insisted that NNPCL's account must be audited.

 

His words, ''There will be earnest scrutiny and I am sure NNPC is getting
ready for that. We want revenue to come into the government coffers from
NNPC and all other revenue agencies.''

 

 

The last two Minister of Finance, namely, Mrs. Kemi Adeosun and Mrs. Zainab
Ahmed had publicly said that the accounts of the NNPCL would be looked into,
but there has been no report of such audit made public.

 

Salary review in 2024

 

Mr. Edun also revealed that the federal government would come up with a new
structure of salaries in 2024.

 

He did not give details, other than that it was statutory to review salaries
every five years, according to the Salaries and Wages Commission Act and
that all stakeholders including labour leadership would be involved.

 

Huge FX in Domiciliary Accounts

 

The Minister of Finance revealed that wealthy Nigerians were holding huge
sums of dollars and other foreign currencies in their Domiciliary bank
accounts in the country.

 

According to him, there was a lot of FX liquidity in Nigeria and the Federal
Government would take steps to make holders of such accounts release the
money.

 

Mr. Edun said that the government would not force holders of such accounts
to give them up but would provide incentives to enable them invest in
attractive instruments, going forward.

 

I'm not against quasi-fiscal interventions but --Cardoso

 

The Governor of the Central bank of Nigeria, Mr. Olayemi Cardoso, who was a
panelist at the NDU presentation said that he was not against quasi fiscal
interventions by the CBN but that his focus would remain how to reduce
inflation through price stability.

 

On the controversy around his failure to convene a Monetary Policy Meeting
since coming into office, the governor said that the past frequent MPCs did
not achieve their objectives and that he would not continue along that line.

 

His words, ''To what extent did the meetings achieve their objectives? The
answer is no. That is why we have chosen to do it differently. Holding these
meetings take a lot of time and energy.''

 

According to him, his team holds Liquidity Management meetings every 8.00 am
to review the liquidity situation in the system and that he would take every
necessary action to mop up excess liquidity in the system, adding, ''we have
increase OMO (Open Market Operations) both in value and volume.''

 

Industry Minister counters W/Bank on power subsidy

 

In her contribution, the Minister of Industry, Doris Uzoka-Anite, disagreed
with the position of the World bank on Power subsidy.

 

The bank had advocated a power regime without subsidy in order to boost
investor confidence and ensure a cost- reflective tariff.

 

However, the minister insisted, ''there is nothing wrong with power sector
subsidy. Subsidy in the power sector is subsidy that supports production.
Countries everywhere support production and export.''

 

Vanguard News

 

 

 

 

South African Govt Eyes Nuclear Energy Despite Just Energy Transition Plans

Cape Town — Minister in The Presidency responsible for Electricity
Kgosientsho Ramokgopa announced that South Africa will soon begin the
procurement process for some 2,500MW of nuclear energy. Ramokgopa said that
national power utility Eskom's current power station fleet is ageing -
meaning that South Africa will have to generate additional sources of
energy.

 

The announcement comes less than a month after the World Bank Board said a
U.S.$1 billion Development Policy Loan was offered to support the
government's efforts to promote long-term energy security and a low carbon
transition. Additionally, the government's pursuit of nuclear energy comes
amid the nation's main reliance on coal; South Africa is currently ranked
eighth in the world in terms of the total amount of coal used for
electricity generation, according to The Conversation. About 85% of the
nation's electricity is produced in coal power plants.

 

It also comes as plans for a Just Energy Transition (JET) - which is defined
by the implementation of climate policy in a way that is as fair and
inclusive and leaves no one behind, according to the Paris Agreement - which
saw Presidential Climate Commission Commissioner Joanne Yawitch announce in
2022 that South Africa requires an initial funding of about U.S.$86 billion
(R1.5 trillion) to transition to a low carbon and climate resilient society
for the five-year period 2023-2027.

 

South Africa is in the midst of a protracted energy crisis which has had a
marked negative impact on productivity and safety since 2007.

 

 

 

 

South African Govt Eyes Nuclear Energy Despite Just Energy Transition Plans

Cape Town — Minister in The Presidency responsible for Electricity
Kgosientsho Ramokgopa announced that South Africa will soon begin the
procurement process for some 2,500MW of nuclear energy. Ramokgopa said that
national power utility Eskom's current power station fleet is ageing -
meaning that South Africa will have to generate additional sources of
energy.

 

The announcement comes less than a month after the World Bank Board said a
U.S.$1 billion Development Policy Loan was offered to support the
government's efforts to promote long-term energy security and a low carbon
transition. Additionally, the government's pursuit of nuclear energy comes
amid the nation's main reliance on coal; South Africa is currently ranked
eighth in the world in terms of the total amount of coal used for
electricity generation, according to The Conversation. About 85% of the
nation's electricity is produced in coal power plants.

 

It also comes as plans for a Just Energy Transition (JET) - which is defined
by the implementation of climate policy in a way that is as fair and
inclusive and leaves no one behind, according to the Paris Agreement - which
saw Presidential Climate Commission Commissioner Joanne Yawitch announce in
2022 that South Africa requires an initial funding of about U.S.$86 billion
(R1.5 trillion) to transition to a low carbon and climate resilient society
for the five-year period 2023-2027.

 

South Africa is in the midst of a protracted energy crisis which has had a
marked negative impact on productivity and safety since 2007.

 

 

 

 

Nigeria: Tinubu Sacks Heads of Nigeria's Aviation Agencies, Appoints
Replacements

The aviation agencies affected include FAAN, NAMA, NCAA and NiMET.

 

President Bola Tinubu has sacked the heads of Nigeria's aviation agencies
including FAAN, NAMA, NCAA and NiMET.

 

The sack was announced in a statement on Wednesday by presidential
spokesperson Ajuri Ngelale.

 

New officials were also appointed to head the agencies.

 

Mr Ngelale said the replacements were done ''to bring world class standards
to Nigerian Civil Aviation in consumer protection and the promotion of the
wellbeing of Nigerian passengers and other sectoral stakeholders.''

 

Read the full statememt below.

 

STATE HOUSE PRESS RELEASE

 

PRESIDENT TINUBU APPROVES LEADERSHIP CHANGES IN THE AVIATION AND AEROSPACE
DEVELOPMENT SECTOR

 

In line with his determination to bring world class standards to Nigerian
Civil Aviation in consumer protection and the promotion of the wellbeing of
Nigerian passengers and other sectoral stakeholders, President Bola Tinubu
has approved the suspension, removal, and replacement of the following Chief
Executive Officers under the Federal Ministry of Aviation and Aerospace
Development:

 

 

(1) Managing Director of the Federal Airports Authority of Nigeria (FAAN),
Mr. Kabir Yusuf Mohammed has been removed from office and replaced with Mrs.
Olubunmi Oluwaseun Kuku as the substantive Managing Director of the Federal
Airports Authority of Nigeria.

 

(2) Managing Director of the Nigerian Airspace Management Agency (NAMA), Mr.
Tayib Adetunji Odunowo has been removed from office and replaced with Engr.
Umar Ahmed Farouk as the substantive Managing Director of the Nigerian
Airspace Management Agency.

 

(3) Director-General of the Nigerian Safety Investigation Bureau (NSIB),
Engr. Akinola Olateru has been removed from office and replaced with Mr.
Alex Badeh Jr. as the substantive Director-General of the Nigerian Safety
Investigation Bureau.

 

(4) Director-General of the Nigerian Meteorological Agency (NIMET), Prof.
Mansur Bako Matazu has been removed from office and replaced with Prof.
Charles Anosike as the substantive Director-General of the Nigerian
Meteorological Agency.

 

(5) Rector of the Nigerian College of Aviation Technology (NCAT), Capt.
Alkali Mahmud Modibbo has been removed from office and replaced with Mr.
Joseph Shaka Imalighwe as the Acting Rector of the Nigerian College of
Aviation Technology (NCAT), pending the appointment of a substantive Rector,
in accordance with Section 13(2) of the Nigerian College of Aviation
Technology Act, 2022.

 

(6) Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt.
Musa Shuaibu Nuhu has been suspended from office to enable the Economic and
Financial Crimes Commission (EFCC) to conduct an unfettered investigation
into the activities of the suspended Director-General and other senior
officials in the Nigeria Civil Aviation Authority. Capt. Chris Najomo
assumes office as the Acting Director-General of the Nigeria Civil Aviation
Authority immediately.

 

Furthermore, President Bola Tinubu approves the commencement of a diligent
process to be conducted by the Minister of Aviation and Aerospace
Development to recruit a substantive Vice-Chancellor and other principal
officers of the African Aviation and Aerospace University (AAAU).

 

The President anticipates that the new leadership across this critical
sector will uphold the safety, convenience, and comfort of the Nigerian
people as primary and sacrosanct in all of their administrative activities.
Due to the high cost of underperformance in the sector, the President
demands the immediate establishment of world-class policy design,
implementation, and regulatory frameworks to reposition the sector in
alignment with his Renewed Hope Agenda.

 

All of the above-mentioned directives of the President take immediate
effect.

 

Ajuri Ngelale

 

Special Adviser to the President

 

(Media & Publicity)

 

December 13, 2023

 

-Premium Times.

 

 

 

 

Somalia Granted $4.5 Billion in Debt Forgiveness

The International Monetary Fund and the World Bank approved $4.5 billion in
debt forgiveness for Somalia Wednesday after the Horn of Africa nation
completed years of financial reforms under the Heavily Indebted Poor
Countries Initiative, or HIPC.

 

The initiative was launched in 1996 by the IMF and the World Bank to help
the world's poorest countries achieve debt sustainability.

 

In a statement, the IMF and the World Bank said the debt relief will
''facilitate access to critical additional financial resources that will
help Somalia strengthen its economy, reduce poverty, and promote job
creation.''

 

''Following HIPC Completion Point, Somalia's external debt has fallen from
64 percent of GDP in 2018 to less than 6 percent of GDP by end 2023,'' the
statement added.

 

The Somali government welcomed the debt forgiveness.

 

''It's a huge milestone, and we are really proud,'' Minister of Finance Bihi
Egeh told VOA in an interview.

 

 

''To see that Somalia has reached the completion point, it entails a huge
achievement. At the same time, it's also a huge responsibility, because
Somalia has to stand on its feet and sustain on the reform gains that has
been made over the years and enhance domestic revenue mobilization,'' Egeh
said.

 

Somalia is the 37th country to complete the HIPC process, which has been in
place since 1996.

 

The debts are from 1991, when former President Mohamed Siad Barre was
ousted, and the state collapsed.

 

World Bank Country Manager Kristina Svensson said the move gives Somalia a
new beginning on its journey to boost the economy.

 

''This is a huge debt relief for Somalia,'' Svensson told VOA Somali in an
interview. ''This means a fresh start for Somalia, and it's a very important
signal to investors, to [the] private sector.''

 

The Somali Cabinet in October approved over a $1 billion for next year's
budget, most of it expected to come from external support, as the Somali
government is yet to collect revenue from the entire country. Most of the
revenue the government currently relies on comes from Mogadishu's seaport
and airport.

 

Svensson said it is important that the government raises domestic revenues.
She said it would be challenging for Somalia to take new loans now that the
debt is forgiven.

 

''Because of the very low revenue, just like if you have a credit card, and
you cancel all the debt, you cannot just start taking new debt if you do not
have income,'' she said.

 

''Because the revenues are so low, it will be very challenging for Somalia
to take on any debt that is not highly concessional, which means they have
very favorable conditions.''

 

Egeh said the government is committed to increasing domestic revenue from
its current level of $345 million annually. He said he is not planning to
take on new loans.

 

''We are actually striving to enhancing and strengthening our domestic
revenues so that we will be able to meet our domestic operations, and in the
near future to also cover some of the development needs,'' he said.

 

Svensson said Somali authorities have shown commitment to reforms, not only
during one administration. She said international financial institutions
want to see Somalia continue reforms.

 

''There was one HIPC Completion Point trigger that was not achieved, and
that was related to harmonization of customs tariffs and implementation of
the same customs tariffs in the ports of Kismayo, Bossaso and Mogadishu,''
she said.

 

She cited ''political challenges'' for the lack of implementation of the
tariff harmonization.

 

''That is a sign this reform needs to continue ... there needs to be an
intergovernmental agreement on customs.''

 

She said Somalia recently joining the regional East African Community
economic bloc will be an additional incentive for this reform to happen,
because an EAC goal is for countries to harmonize customs regimes.-VOA.

 

 

 

Africa: COP28 Ends With Agreement On Fossil Fuels, but Reservations Remain

United Nations Secretary-General, Antonio Guterres, says limiting global
heating to 1.5°C will be impossible without the phase-out of fossil fuels.

 

The United Nations conference on climate change ended in Dubai, United Arab
Emirates, on Wednesday, with an agreement on transitioning away from fossil
fuels, the substances that cause climate change.

 

While many have lauded the inclusion of language for transitioning away from
these substances, many, including the United Nations Secretary-General,
Antonio Guterres, think it is inevitable to phase out fossil fuels.

 

 

''To those who opposed a clear reference to phase-out of fossil fuels during
the COP28 Climate Conference, I want to say: whether you like it or not,
fossil fuel phase-out is inevitable. Let's hope it doesn't come too late,''
the UN Chief said as soon as the agreement was reached.

 

In a post on social networking platform X (formerly Twitter), Mr Guterres
said science, which featured prominently in the two-week conference, says
limiting global heating to 1.5°C will be impossible without the phase-out of
fossil fuels.

 

''The era of fossil fuels must end - and it must end with justice and
equity,'' Mr Guterres said.

 

Addressing the delegates at the start of the conference, the UN head had
urged nations to phase out fossil fuels: ''We cannot save a burning planet
with a firehose of fossil fuels. We must accelerate a just, equitable
transition to renewables.''

 

On a positive note, the adopted text also called for tripling renewable
energy and doubling the global average annual rate of energy efficiency
improvements by 2030.

 

It also called for the acceleration of efforts towards the phase-down of
unabated coal power. It recognised that transitional fuels could play a role
in facilitating the energy transition while ensuring energy security.

 

The first in 30 years

 

''For the first time in three decades of climate negotiations, the words
'fossil fuels' have made it into a COP outcome. We are finally naming the
elephant in the room. The genie is never going back into the bottle,''
Mohamed Adow, Director of Power Shift Africa, said, applauding the adopted
text.

 

Despite the new text's strong signal, he says the world must refrain from
embarking on unproven and expensive technologies like carbon capture and
storage, which fossil fuel interests will attempt to use to keep dirty
energy on life support.

 

 

''The transition is neither funded nor fair. Finance is where the whole
energy transition plan will stand or fall. We also need much more financial
support to help vulnerable people in some of the poorest countries adapt to
climate breakdown impacts,'' Mr Adow added.

 

For Joab Okanda, Senior Climate Advisor, Christian Aid, ''It is clear that
the era of fossil fuels is coming to a close.''

 

Although the much-desired phase-out was not adopted, he is optimistic that
the end is coming for dirty energy.

 

He said ''There is a gaping hole in climate finance to fund the transition
from dirty to clean energy in developing countries. Without that, we risk
the global shift being much slower.''

 

Many other civil society organisations had mixed feelings about the outcome
document.

 

''Fossil fuels are the leading driver of climate change and its health
impacts, and inflict additional health hazards from the moment of extraction
to combustion,'' said Jess Beagley, Policy Lead, Global Climate and Health
Alliance.

 

She said the adopted text signalling the impending end of the fossil fuel
era named the need to end dependence on fossil fuels for the first time in
30 years but leaves gaping and potentially dangerous loopholes such as
carbon capture and storage, ''transitional fuels'' like fossil gas, and
nuclear power.

 

Carbon Capture and Storage involves technology for capturing carbon dioxide
(CO2) at emission sources, transporting and then storing or burying it in a
suitable deep, underground location.

 

Harjeet Singh, Head of global political strategy at Climate Action Network
International, noted that although ''a glaring spotlight on the real
culprits of the climate crisis'', the resolution is marred by loopholes that
offer the fossil fuel industry numerous escape routes, relying on unproven,
unsafe technologies.

 

''The hypocrisy of wealthy nations, particularly the USA, as they continue
to expand fossil fuel operations massively while merely paying lip service
to the green transition, stands exposed. Developing countries, still
dependent on fossil fuels for energy, income, and jobs, need robust
guarantees for adequate financial support in their urgent and equitable
transition to renewable energy.

 

This story was produced as part of the 2023 Climate Change Media
Partnership, a journalism fellowship organised by Internews' Earth
Journalism Network and the Stanley Center for Peace and Security.

 

-Premium Times.

 

 

 

 

 

Kenya's Debt Distress Averted as Economy Gains Stability, Says President
William Ruto

Nairobi — President William Ruto has announced that Kenya has successfully
averted the threat of debt distress, emphasizing that the nation's economy
is on a stable and sustainable path.

 

He credited the government's implementation of well-considered policies for
this achievement, policies that have promoted sustainable economic growth.

 

During the 60th Jamhuri Day celebration held at Uhuru Gardens in Nairobi,
President Ruto highlighted that the government has made the right decisions,
undertaken necessary sacrifices, and made prudent choices. These efforts
have yielded positive results, positioning Kenya as one of the world's
fastest-growing economies.

 

President Ruto pointed to several favorable economic indicators, including a
decrease in inflation and robust GDP growth, as signs of Kenya's economic
stability and growth.

 

The celebration was attended by dignitaries, including President Sahle-Work
Zewde of Ethiopia, President Hussein Mwinyi of Zanzibar, Deputy President
Rigathi Gachagua, Vice-President Prosper Bazombanza of Burundi, Wamkele
Mene, Secretary-General of the Africa Continental Free Trade Area, Cabinet
Secretaries, and others.

 

 

To ensure sustainable economic growth, President Ruto emphasized that the
government has intentionally increased investment in human capital
development. Notably, the total allocation to education has been raised by
Ksh 127 billion.

 

In the agricultural sector, the government has taken significant steps, such
as registering farmers, providing crop-specific fertilizers, implementing
reforms in the tea, coffee, sugarcane, and edible oils industries, and
making mobile dryers available.

 

President Ruto described the Universal Health Coverage plan as a
transformative initiative that will alleviate millions of Kenyans from the
burden of hospital bills.

 

He also highlighted the government's commitment to job creation for the
youth through programs like the Affordable Housing Plan and the
establishment of ICT hubs to unlock online job opportunities.

 

The President noted that the government has fulfilled its promise to provide
affordable credit and free entrepreneurs from exploitative money lending
services. The Hustler Fund, he added, has grown to become the largest
financial inclusion program in Kenya.

 

In a significant announcement, President Ruto revealed that visa
restrictions for visitors to Kenya will be lifted starting January 2024,
further promoting tourism and economic growth.

 

Later at the State House Gardens, the President hosted a luncheon and
recognized individuals for their outstanding contributions to the country.

 

-Capital FM.

 

 

 

 

Tanzania: Eacop First 100 Km Consignment Pipes Arrive in Dar

DAR ES SALAAM: THE first consignment of 100 kilometres pipes for the East
African Crude Oil Pipeline (EACOP) have arrived in Dar es Salaam Port,
signalling the initiation of the main construction phase for the
cross-border pipeline project.

 

EACOP will transport crude oil from the Lake Albert region of Uganda to the
Chongoleani peninsula near Tanga in Tanzania, where it can access world
markets. The project represents a major inward investment in Uganda and
Tanzania.

 

An event to mark the occasion was held yesterday between EACOP's
Shareholders, at the storage yard operated by EACOP's Tanzania Logistics
partner, SuperDoll. They will then be transported to Nzega, Tabora Region.

 

 

Speaking at the yard in Dar es Salaam yesterday, the project coordinator
from the Tanzania Petroleum Development Corporation (TPDC), Safiel Msovu
said that the pipes have arrived in the country as part of the first phase
of building 100 kilometres and have been received at the EALS yard.

 

''The process for burying pipes will start in April 2024. The completion of
the project will depend on the progress of the work, but it is expected to
be completed by December 2025 and crude oil will start to flow from Uganda
to the Indian Ocean in 2026,'' Msovu said.

 

He said that the government of Tanzania through TPDC is continuing to
coordinate and supervise the project. So far, more than 500 billion
shillings have been provided by the government for the project including
compensation of the people who are going to be affected by the project.

 

EACOP Managing Director Martin Tiffen said that the company is committed to
ensuring that its operations meet the highest standards of environmental
protection and safety. The transportation of pipes from the Port of Dar es
Salaam to various project sites will be done using new trucks with
high-quality standards.

 

''The project has invested heavily in comprehensive driver training,
focusing on road safety exercises, emergency response, travel plans, and
compliance with traffic regulations. State-of-the-art technology is being
used for pipe lifting activities,'' he said.

 

He said the best available technology has been incorporated for line pipe
lifting operations. Vacuum lifting and 'rob rigging' are employed to ensure
that personnel are kept out of the 'line of fire' during lifting operations.

 

''As the on the ground construction of this 1443km pipeline progresses,
EACOP remains committed to delivering this project with the utmost
responsibility, contributing to the sustainable growth and prosperity of
East Africa,'' he Said.

 

Ugandan Ambassador to Tanzania, Retired Colonel Fred Mwesigye, said that the
government of Uganda is happy to see it is returning the favour to
Tanzanians who fought and shed blood for them.

 

''Uganda is happy to see that it has found a way to return thanks to
Tanzanians who shed blood to fight for Uganda. I thank the Presidents of
Tanzania and Uganda for agreeing to pass this pipeline through Tanzania,''
he said.

 

EACOP will transport crude oil from the Albert Lake area in Uganda to the
Chongoleani peninsula near Tanga in Tanzania for export to international
markets.

 

The 1,443-kilometre (896-mile) East African Crude Oil Pipeline (EACOP)
project, being built by the governments of Uganda and Tanzania, will be the
longest heated pipeline in the world when completed.

 

This massive export oil transportation system includes 1,443 kilometres (296
kilometres in Uganda and 1,147 kilometres in Tanzania) of 24-inch buried
pipeline, six oil pumping stations, two pressure reduction stations, and a
marine oil export terminal in Tanzania.

 

-Daily News.

 

 

 

Kenya: Diaspora Key in Our Economic Development - President Ruto

Nairobi — The government is implementing robust measures to promote local
investment by the Diaspora.

 

President William Ruto said the Kenyans in the Diaspora play a key role in
the development of the country.

 

He noted that their contribution through remittances has overtaken the
performance of major exports.

 

''We want to create a seamless network that facilitates, promotes and
supports the Diaspora investment at home,'' he said.

 

He made the remarks on Wednesday during the Diaspora Investment Conference
held in Nairobi.

 

The President said the Government is implementing the Global Labour Market
Strategy to help the youth get employed abroad.

 

This, he observed, will foster the transfer of knowledge, skills and
technology in the country.

 

To further expand job opportunities in the country, President Ruto said the
Government is establishing Special Economic Zones to attract foreign direct
investments.

 

The President said funds have been allocated for the construction of
infrastructure in six SEZs.

 

He added that the SEZs will not only offer incentives to investors but also
enhance the country's manufacturing and export capacity.

 

''Our goal is to expand job opportunities both locally and abroad for our
youth,'' he said. - Presidential Communication Service

 

-Capital FM.

 

 

 

 

 

Congo-Kinshasa: Would Congo Prosper If It Dumped the Dollar?

Next week, voters in Congo will decide whether President Felix Tshisekedi
will serve a second term. Many voters want their leader to revive the DRC's
fragile economy by dumping the dollar.

 

Seated on a little chair in the popular Lumumba market, located in the
Bandalugwa district of the Congolese capital, Kinshasa, trader Rosette Kungi
mixes beans in a large green bucket next to her cardboard price signs that
change every day.

 

In recent months, the Democratic Republic of Congo's local currency, the
Franc Congolais, or Congolese franc (CDF), has been heavily devalued.

 

A year ago, the CDF was trading at around 2,000 to the dollar -- now it is
trading at around 2,700.

 

"Prices in Congolese francs are rising all the time," Kungi lamented.
"Today, $10 is worth 27,000, or even 28,000 CDF -- and soon it will be
30,000."

 

 

"A box of fish used to cost $15, but now I buy it for $80," she told DW.

 

Another trader, Helene Timba, said that she needs to pay the price
fluctuations every day. As she waved away the flies that landed on her fresh
fish stall, she said that setting the price of goods has become a daily
negotiation.

 

"We buy a bag of beans with dollars, but we sell it in Congolese francs,"
she said, "and if we want to buy more, we have to buy the dollar, which is
making our lives difficult."

 

Would de-dollarizing Congo help its economy?

 

The country's economy was informally "dollarized" in 1994, when the DRC was
known as Zaire and run by autocrat Mobutu Sese Seko. Inflation had reached
an all-time high of 24,000% leading to the collapse of the economy.

 

The US dollar is still considered the DRC's main commercial currency --
while wages continue to be paid in the national currency.

 

Most of the country's goods are imported, and the war in Ukraine has caused
the price of wheat, oil and other commodities to spike.

 

Some 62% of Congo's population -- or 60 million people -- live on less than
$2.15 a day, according to World Bank data.

 

Congolese President Felix Tshisekedi is standing for reelection in elections
due to be held later this month.

 

"We won't vote if we're hungry," said Rosette Kungi.

 

"The president must make an effort to abolish this dollar so that our
currency regains its value," said another trader.

 

Congolese Finance Minister Nicolas Kazadi told reporters at the end of
November that the DRC is "too extroverted."

 

"If we produced in Congolese francs, if we thought in Congolese francs, we
would not have suffered the impact of the exchange rate," Kazadi added.

 

In order to import goods, the Congolese have to obtain dollars, and so the
law of supply and demand justifies the Congolese franc losing its value,"
said economic analyst Al Kitenge.

 

"As products are imported, people need foreign currency to import them,"
said Al Kitenge, "but when they come to the market to get foreign currency,
demand is so great that the Congolese franc loses value because people are
prepared to pay more to get that foreign currency and to import them."

 

To stabilize its currency, the Central Bank of Congo has injected $150
million into the country's commercial banks -- a measure that has brought
relief to Congolese households for only a short time.

 

"A temporary solution," Kitenge pointed out.

 

Edited by: Keith Walker

 

While you're here: Every weekday, we host AfricaLink, a podcast packed with
news, politics, culture and more. You can listen and follow AfricaLink
wherever you get your podcasts.

 

 

 

 

Africa: Could Angola Become Africa's Logistics Hub?

The Lobito corridor, which connects the Angolan coastline to rich
agricultural production zones & the DR Congo and Zambia, is critical to
unleashing a diversified economy for Angola and its neighbors, according to
the World Bank.

 

 

Yes, according to Catarino Fontes Pereira, head of Angolan logistics
regulatory agency

 

To help diversify the economy, the Angolan Regulatory Agency for Cargo
Certification and Logistics (ARCCLA) oversees implementation of the
country's logistics network projects. In this interview with Africa
Renewal's Kingsley Ighobor, Catarino Fontes Pereira, president of ARCCLA's
board of directors spoke about the potential for current projects to foster
national and regional economic development.

 

Why did you send some of your staff to the training organized by UN
Conference on Trade and Development (UNCTAD)

 

We have the responsibility to regulate and supervise logistics in Angola.
Through our Ministry of Transport, UNCTAD assists in training Angolans,
including young people. We must develop the capacities of our staff so that
they can perform more efficiently.

 

As you know, ARCCLA is a very young institution. We need a certain level of
knowledge on, for example, how to conduct PPP (Public private partnerships)
[public-private partnership] processes. Our staff must understand important
variables in structuring a project.

 

 

UNCTAD has extensive knowledge about logistics around the world, especially
in Africa, and so we needed it to help us as we took the first steps in
project execution. So, the team learned some important concepts.

 

Have they started applying those concepts in their work?

 

Yes. One of the concepts we learned was risk sharing. In setting up PPP
projects, we must understand how to share the risks involved. We represent
the government, and our partner may represent a concessionaire, and so we
must share the risks.

 

Another concept was project viability. We must understand how to conduct
studies that make a project feasible for international institutions like the
World Bank, the International Monetary Fuhd and others.

 

Do you intend to organize more training for your team?

 

Of course! Capacity building should be a continuous process. The development
of any institution depends especially on human capital. When people are
well-instructed and well-capacitated, they develop our institution. As an
institution created a few years ago, we need to learn, grow and reach the
level that we intend to reach. Therefore, we must be very well-prepared.

 

We are on our way to being a logistics hub, with the support of
organizations like UNCTAD.

 

What is your ideal situation for logistics in Angola?

 

We are striving to reach an acceptable level. The level of interoperability
of our logistics is not yet stable among members of the logistics chain.
Many elements are missing. We must bring the operators together for them to
understand their role and the role of the government.

 

When we harmonize and synchronize our work, Angola will have an acceptable
level of logistics.

 

 

How soon? Next year? 2025? 2030?

 

As soon as possible. We think that, in 2025, we can reach a level that is
significantly better than where we are today.

 

Do you coordinate logistics with your counterparts in other countries,
particularly neighboring countries?

 

At the continental and subregional levels, we are working together. We are a
member of the Union of African Shippers' Councils, an African institution
where we share trading information and discuss strategies for developing
logistics in Africa., an African institution where we share trading
information and discuss strategies for developing logistics in Africa.

 

Angola is also a signatory to the African Continental Free Trade Agreement
(AfCFTA), and we constantly discuss with other countries areas of
collaboration on free trade.

 

In your conversations with representatives of other countries, do you sense
momentum in developing the infrastructure needed to accelerate the
operationalisation of the AfCFTA?

 

Yes, and we have good examples. Senegal, for one, has developed its ports to
a very high level. Ethiopia is doing a lot in logistics development and
organization. South Africa is constructing massive infrastructure. In
Angola, we just inaugurated a new airport that will make us logistics hub,
not only within Africa but also for connecting Africa with Asia and South
America.

 

What logistics systems are you specifically talking about?

 

They include infrastructure to bring produce from the big farms. We must
have the capacity to transport products from the countryside to a storage
facility. We must have the ability to conduct phytosanitary inspections so
that we can prepare these products for export and the domestic market.

 

How does improved infrastructure support Angolan entrepreneurs?

 

We have a strategic programme for developing logistic infrastructures in
Angola. Considering our needs, we identified six strategic locations.

 

Two are in the northern region. The first is in Luvo, where we share a
border with the Democratic Republic of Congo (DRC). Luvo holds significance
because of its high level of trade.

 

The second is in Soyo, a major oil hub in Zaire Province. We need logistic
infrastructure because of the new oil refinery in Zaire Province.

 

We have a strategic programmed for developing logistic infrastructures in
Angola.

 

The third and fourth are the Lobito Corridor and Caála in the Huambo
Province, the main hub for agriculture in Angola.

 

The fifth is Luau, on the western border between Angola and the DRC.

 

Lastly, the sixth is Arimba in Huila Province, strategically positioned to
facilitate the export of ornamental stones such as marble and granite.

 

So, when these six logistics locations are working effectively, we can say
that Angola has an organized logistics operation. We are on our way to being
a logistics hub, with the support of organizations like UNCTAD, we will get
there!

 

-Africa Renewal.

 

 

 

 

 

Rwanda: Facebook, Instagram to Start Paying Kenyan Content Creators

President William Ruto has announced that Facebook's parent company, Meta,
has agreed to monetise content in Kenya following successful talks, Daily
Nation reports.

 

Speaking on Tuesday during the Jamhuri Day celebrations at Uhuru Gardens in
Nairobi, Ruto said he had spoken with Meta and the company has agreed to let
content creators monetize their content.

 

President Ruto said content creators will now be able to earn a living by
producing original content on Facebook and Instagram.

 

He revealed that Meta had run a pilot programme with eligible Kenyan content
creators.

 

 

''I have good news for our creatives and those who imagine and produce
content through Facebook and Instagram. Just yesterday, Meta committed to
helping creators in Kenya earn money for crafting original content.
Following a pilot programme with eligible creators in the country, Meta will
be expanding monetisation opportunities and allowing more creators to earn a
living doing what they love,'' he said.

 

Facebook is a free social networking app that allows users to connect with
friends and family through private chats, sharing photos and videos, and
posting updates on their profiles.

 

It has been a critical tool in redefining relationships in the digital age,
where people rely on social apps to connect.

 

Kenya will now join Egypt and South Africa which have been the only two
countries in the continent which has Facebook Creator programme.

 

These were the only two countries in Africa where you could monetize your
Facebook audience or content.

 

It can be attributed to its high usage; Egypt ranks 10th in the list of
world countries that use Facebook the most, with 42 million people in 2023
and South Africa takes position 20 with over 20 million users.

 

Per industry insiders, Facebook compensates content creators Sh1,200 ($8) to
Sh3,000 ($20) per 1,000 views, and the average CPM (Cost Per Mile) in most
African countries ranges in the lows of $8 - $10 because the marketing
industry is underdeveloped when comparing it with countries like USA,
Australia, Canada, and the UK.

 

Cost Per Mile is also cost per 1,000 views.

 

With a base CPM of Sh1,200 ($8), most Facebook creators in the category of
micro-influencers - accounts with one thousand to ten thousand followers -
earn an average of between Sh92,000 ($600) to Sh200,000 ($1,300) in a month.

 

Monetizing your Facebook account will not only help you build a passive
income to add to your savings bucket but also build your relationship with
fans and followers through entertaining, engaging, and high-value content.

 

However, before you start earning through Facebook in-stream ads for
video-on-demand and live videos, there are minimum requirements you must
have attained on your Facebook page or profile.

 

-New Times.

 

 

 

 

 

Federal Reserve signals interest rate cuts next year

The US central bank has signalled it could start cutting interest rates next
year if inflation continues to fall.

 

Forecasts released by the Federal Reserve showed a majority of policymakers
expect to cut its key interest rate in 2024.

 

But on Wednesday the central bank decided to keep rates unchanged again at
5.25%-5.5%, a 22-year high.

 

Markets surged on signs borrowing costs could be reduced next year, with the
Dow Jones closing at a new record high.

 

The three major indexes in the US ended the day up 1.4%.

 

The bank has raised rates sharply since March 2022, in a bid to cool the
economy and slow price rises, which last year soared at the fastest rate in
decades.

 

"It is far too early to declare victory," said bank chairman Jerome Powell.
"There is a lot of uncertainty and we've seen the economy move in surprising
directions, so we're just going to need to see further progress."

 

But the Fed's confidence is growing.

 

US jobless rate falls to lowest level since July

Projections released after the meeting showed that none of the rate-setting
committee members believed they would have to raise rates further in 2024.

 

Instead, a majority of policymakers now expect to cut rates below 5% next
year - a big shift from a few months ago.

 

"This gives real credence to the view that [the Fed] thinks inflation is
under control and believes that policy is producing the right outcome for
the economy," said Neil Birrell, chief investment officer at Premier Miton
Investors, a London-based asset management firm.

 

The Fed announcement came ahead of a number of central bank meetings in
Europe. The Bank of England, which meets on Thursday, is also expected to
hold interest rates again.

 

In a press conference after the announcement, Mr Powell said he welcomed
signs that inflation, the rate at which prices rise, had slowed.

 

But Mr Powell said the bank remained alert to the risks of rising prices,
noting that inflation remained above the 2% rate that the bank wants to see.

 

While Fed policymakers do not expect any further hikes, Mr Powell said they
did not want to take the option off the table.

 

"If the economy does not evolve as projected, the path of policy will
adjust," he said.

 

Inflation in the US has already come down significantly since its 9.1% peak
in June 2022.

 

Prices were up 3.1% last month, compared with a year earlier, according to
Labor Department figures released this week.

 

Fed members expect inflation to fall further next year, but do not expect it
to return to the 2% target rate until 2026.

 

By making borrowing more expensive, higher interest rates encourage saving
and reduce borrowing for home purchases and business investments, cooling
the economy and easing the pressures pushing up prices.

 

Officials expect the US economy to grow by 1.4% next year, which is
significantly slower than this year's pace.

 

The Fed also expects an uptick in the unemployment rate, which currently
stands at 3.7%.-bbc

 

 

 

 

Ex-BP boss to lose £32m after 'serious misconduct'

Former BP boss Bernard Looney will forfeit up to £32.4m after the oil giant
found he committed "serious misconduct" in failing to disclose relationships
with colleagues.

 

Mr Looney is to be dismissed without notice and will not receive further
salary or benefits, the oil giant said.

 

He resigned in September after admitting not being "fully transparent" about
his past personal relationships.

 

The board said they had been "knowingly misled" by Mr Looney.

 

On Wednesday, the firm said Mr Looney had given "inaccurate and incomplete
assurances" as part of an investigation into the relationships in 2022.

 

Mr Looney said in a statement that he was "disappointed with the way this
situation has been handled".

 

His dismissal means he will get no further salary, pension allowance or
benefits, no annual bonus, and lose out on nearly £25m in share awards.

 

It is understood that Mr Looney's decision to resign meant his long-term
performance share awards lapsed along with his annual bonus for 2023, which
represented the majority - 87% - of the £32.4m package. The board also
decided to halt other payments and bonuses.

 

BP first launched a review of Mr Looney's relationships with colleagues
following an anonymous tip-off in 2022.

 

At the time, the company said Mr Looney disclosed "a small number of
historical relationships with colleagues prior to becoming CEO" and it found
no breach of company conduct.

 

Mr Looney gave assurances then about disclosing the past relationships, as
well as his future behaviour.

 

But in September the board said it had received similar allegations
"recently", prompting another review.

 

BP career

Mr Looney had spent his career at BP, which he joined in 1991 as a drilling
engineer.

 

Born in Ireland and raised on a farm, he became a member of its executive
team in 2010.

 

Before taking over as chief executive from Bob Dudley, he was previously
head of oil and gas production.

 

Mr Looney presented himself as more approachable, posting pictures of
smiling employees on Instagram when he took over in 2020.

 

He initially set out a plan to sharply cut net carbon emissions by 2050, but
was later criticised by environmental groups for watering down the target.

 

His time as boss coincided with a tumultuous period for the company,
including coronavirus pandemic lockdowns when demand for oil and gas fell
sharply.

 

Months into his role as chief executive he also told staff that BP planned
to cut 10,000 jobs due to the pandemic.

 

In 2022, the start of the war in Ukraine sent energy prices soaring, and
prompted the firm to leave Russia after pressure from the UK government.

 

Mr Looney's departure from BP comes as a series of high profile dismissals
of executives in the UK has put a spotlight on executive personal behaviour.

 

Tony Danker, the head of the UK's largest business lobby group the CBI, was
fired in April over complaints about his behaviour at work.

 

Meanwhile, Crispin Odey was forced to step down from the hedge fund he
founded in June after reports of sexual harassment allegations by 13 women.
He has denied the claims.

 

Chief financial officer Murray Auchincloss has been acting as BP's interim
chief executive while the oil firm investigated allegations about Mr Looney,
and searched for his successor.

 

Mr Auchincloss has previously said the firm's "strategy hasn't changed" and
that "the leadership team we have in BP is also unchanged", despite Mr
Looney's exit.

 

Mr Looney was approached for comment.-bbc

 

 

 

Etsy: Online marketplace lays off 11% of staff to cut costs

Etsy is cutting about 225 jobs, or 11% of its workforce, as part of a plan
to bring down its costs.

 

As part of the move several executives will leave the online marketplace,
including its chief marketing officer.

 

Chief executive Josh Silverman told staff the cuts were needed as sales had
been "essentially flat" for two years.

 

He acknowledged the "unfortunate" timing of the cuts, during the holiday
season, adding that laid-off staff would be paid until at least 2 January.

 

The job cuts are part of a strategy to make Etsy a "more focused, agile
company", Mr Silverman said in post on the firm's website.

 

The lay-offs will cost the company as much as $30m (£23.7m) for severance
payments, employee benefits and related costs, it said in an announcement to
investors.

 

Following the job cuts, which are expected to be completed in the first
three months of next year, Etsy's core marketplace team will employ around
1,770 people.

 

line

What is Etsy and who owns it?

The online marketplace allows independent sellers to set up their own shop.
It specialises in bespoke items, handicrafts or things not usually available
in High Street shops.

 

Etsy Inc. is a US-based company which trades its shares on the Nasdaq stock
exchange in New York, where it listed its stock in 2015. Etsy's shares are
currently trading at around $84 each - a far cry from a record high of more
than $294 during the Covid pandemic in 2021.

 

Its biggest shareholders are major financial institutions such as Vanguard
Group and BlackRock.

 

The company is led by chief executive Josh Silverman who has worked at an
eclectic mix of businesses such as online auction site eBay, the internet
chat firm Skype and American Express. He has been chief executive since
2017.

 

It was originally founded in 2005 by Rob Kalin, Chris Maguire, Haim Schoppik
and Jared Tarbell who started the business from Mr Kalin's Brooklyn
apartment. None of them remain with the firm.

 

line

In August, Etsy said it would change its policy after sellers complained of
money being withheld.

 

The U-turn came after the BBC reported that some sellers had 75% of their
money frozen for 45 days.

 

Etsy said it was "substantially decreasing" the amount of money it would put
on hold but did not state the new rate or time frame.-bbc

 

 

 

 

 

Elon Musk's Tesla recalls two million cars in US over Autopilot defect

Tesla is recalling more than two million cars after the US regulator found
its driver assistance system, Autopilot, was partly defective.

 

It follows a two-year investigation into crashes which occurred when the
tech was in use.

 

The recall applies to almost every Tesla sold in the US since the Autopilot
feature was launched in 2015.

 

Tesla, owned by billionaire Elon Musk, said it would send a software update
"over the air" to fix the issue.

 

The update happens automatically and does not require a visit to a
dealership or garage, but is still referred to by the US regulator as a
recall.

 

The UK Driver and Vehicle Standards Agency said it was not aware of any
safety issues involving Teslas in the UK, noting that cars sold in the UK
are not equipped with all of the same features as cars in the US.

 

"Teslas sold in the UK market are not self-driving and are not approved to
do so," a spokesperson said, adding that the agency would continue to
monitor the situation.

 

Autopilot is meant to help with steering, acceleration and braking - but,
despite the name, the car still requires driver input.

 

Tesla's software is supposed to make sure that drivers are paying attention
and that the feature is only in use in appropriate conditions, such as
driving on highways.

 

But the US National Highway Traffic Safety Administration (NHTSA) said a
two-year investigation of 956 Tesla crashes found that "the prominence and
scope of the feature's controls may not be sufficient to prevent driver
misuse".

 

"Automated technology holds great promise for improving safety but only when
it is deployed responsibly", the NHTSA wrote, adding it would continue to
monitor the software once it was updated.

 

Tesla did not respond to a request for comment.

 

According to the recall notice, the company did not concur with the agency's
analysis but agreed to add new features to resolve the concerns, including
additional checks on turning on the self-driving features.

 

The recall comes a week after a former Tesla employee told the BBC he
believed the technology was not safe.

 

Lukasz Krupski, speaking after winning the Blueprint Prize which recognises
whistleblowers, told the BBC: "I don't think the hardware is ready and the
software is ready".

 

"It affects all of us because we are essentially experiments in public
roads", he claimed.

 

Reacting to the news of the recall Mr Krupski told the BBC it was "a step in
the right direction" but pointed out it was not just a problem in the US.

 

"The hardware is the same in all the Teslas in the US, China etc.", he said

 

Safety metrics

On Tuesday, Tesla defended the safety of Autopilot in a post on X (formerly
Twitter) in response to a Washington Post article.

 

"Safety metrics are emphatically stronger when Autopilot is engaged than
when not engaged" it wrote, pointing to statistics that suggested there were
fewer crashes when the system was used.

 

Jack Stilgoe, associate professor at University College London, who
researches autonomous vehicles, said Tesla should have spent more time
developing the system in the first place.

 

"The conventional way of ensuring safety is to check that a car is safe when
it leaves the factory", he told the BBC.

 

But despite this being the second recall this year affecting Tesla vehicles,
Susannah Streeter of investment company Hargreaves Lansdown, said her
assessment was that it should not check the carmaker's momentum too greatly:

 

"This recall of 2 million cars on its own is not likely to seriously quash
enthusiasm. The share price has dropped back slightly, but it doesn't look
like it'll be hit by a bad bout of skidding.

 

"After all, recalls in the car industry are far from unusual and the group
also has the financial ability to invest in fixes", she added.

 

Tesla has heavily promoted the technology in its cars and says remaining at
the cutting edge of self-driving is key to its future growth.

 

Goldman Sachs analysts estimated this month that Tesla's most advanced
Autopilot offering, full self driving, could end up generating more than
$50bn a year in revenue by 2030, up from $1bn-$3bn presently.

 

In the US, the full-self driving package costs $12,000, or a $199 monthly
subscription fee.

 

"Autonomy is really where it's at," Mr Musk told investors this summer.

 

Additional alerts

Critics have said Tesla has misled customers about its software's
capabilities, contributing to risks.

 

The carmaker is facing other government investigations, as well as a number
of lawsuits in the US in relation to crashes involving the software.

 

But a jury in one of the first cases to go to trial found that Tesla's
autopilot technology was not to blame.

 

The new controls that Tesla has agreed to do should help limit drivers from
using Autopilot unsafely, said Professor Missy Cummings, director of the
Autonomy and Robotics Center at George Mason University.

 

But she added that there was "an opportunity missed" for regulators to
require Tesla to make Autopilot features unavailable in places where it is
not supposed to be used.

 

The recall centres on a part of Autopilot called Autosteer.

 

Autosteer helps keep a car in the correct lane in conjunction with
"traffic-aware cruise control" which matches the speed of the car to that of
the surrounding traffic.

 

The driver is expected to have their hands on wheel and be ready to take
over from the assistive system when required.

 

When Autosteer is on, systems in the car monitor that the driver is paying
attention. If it detects the driver isn't there are warning alerts. There
are also alerts if the driver tries to use Autosteer in inappropriate
circumstances.

 

According to the NHTSA recall report, the "over the air update" will include
additional alerts and monitoring "to encourage the driver to adhere to their
continuous driving responsibility whenever Autosteer is engaged."-bbc

 

 

 

 

 

Mastercard and Visa face post-Brexit card fee cap

The payments watchdog has proposed a cap on fees that credit card firms such
as Mastercard and Visa charge retailers for payments between the EU and the
UK.

 

The fees, which can get passed on to consumers, cost UK firms an extra £150m
to £200m last year, the Payment Systems Regulator (PSR) said.

 

The payments giants have probably raised fees to an "unduly high level"
since Brexit, the regulator suggested.

 

However, the firms disputed this, with Visa saying a cap was "not
justified".

 

The European Union (EU) has a cap on so-called "cross-border interchange
fees", which retailers pay when customers in the UK buy from the European
trading bloc.

 

The cap used to apply in the UK too, before Brexit.

 

But since the UK's exit from the EU, Mastercard and Visa have "significantly
raised" the fees charged to retailers in Britain, the watchdog found.

 

Larger UK firms may absorb these fees, but smaller companies may pass these
costs onto UK and EU consumers, a PSR spokesperson said.

 

"In short, at this stage, we do not think this market is working well," PSR
managing director Chris Hemsley said.

 

The watchdog has proposed an initial, time-limited, cap of 0.2% for debit
card transactions, and 0.3% for credit cards, for transactions made online
at UK businesses. This would be in line with the EU cap.

 

Visa strongly disputed the findings of the PSR's interim report though and
said its proposals were "not justified".

 

"Accepting reliable, secure, and innovative digital payments represents
enormous value to UK businesses, especially when selling overseas," a
spokesperson said.

 

The fees apply to less than 2% of UK card payments - cardholders in the
European economic area buying online from a UK seller - "and reflect the
fact that these transactions are more complex and carry far greater risk of
fraud," they added.

 

Mastercard said the fees offer value in a competitive market.

 

"We do not agree with the PSR's findings and will continue to educate them
on the critical importance of electronic payments to the UK economy," a
spokesperson said.

 

The PSR has invited feedback on the proposals before the end of January,
with a final report due in the first three months of 2024.

 

Last month a UK government-commissioned report said Britain needs a "digital
alternative" to relying on the US payments giants, echoing longstanding
ambitions in the EU for a "home grown" alternative.-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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