Major International Business Headlines Brief::: 02 February 2023

Thu Feb 2 11:25:03 CAT 2023

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Major International Business Headlines Brief::: 02 February 2023 

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ü  Shell reports highest profits in 115 years

ü  Fed announces smaller rate rise as inflation cools

ü  King Charles will not appear on new Australia $5 note

ü  Crypto theft: North Korea-linked hackers stole $1.7b in 2022

ü  Adani calls off share sale after price plunges

ü  UK interest rates: How high could they go and how a rise would affect you

ü  Facebook: Quarter of global population used site daily in December

ü  ChatGPT firm trials $20 monthly subscription fee

ü  British Gas admits debt agents break into homes

ü  Elon Musk's Tesla lost $140m on Bitcoin in 2022

ü  EU takes on US as tries to win electric car battle

ü  West Africa: AfDB Approves U.S.$50 Million, €50 Million Trade Finance Credit Line for ECOWAS Bank

ü  Liberia Loses Over U.S.$300 Million Yearly to Tax Waivers

ü  Nigeria: NCC Moves to Bridge Gender Inequality in ICT Sector

ü  Tanzania: Zanzibar Projects 6pc Economic Growth

 <mailto:info at bulls.co.zw> 

Shell reports highest profits in 115 years

Oil and gas giant Shell has reported record annual profits after energy prices surged last year following Russia's invasion of Ukraine.

The company reported adjusted earnings of $39.9bn (£32.2bn) for 2022, the highest in its 115-year history.

Energy firms have been making record profits after oil and gas prices jumped following the invasion of Ukraine.

It has heaped pressure on firms to pay windfall taxes as households struggle with rising bills.

Last year, the UK government introduced a windfall tax - called the Energy Profits Levy - on the profits of firms to help fund its scheme to lower gas and electricity bills.

Oil and gas prices had begun to rise after the end of Covid lockdowns but rose sharply after Russia's invasion of Ukraine.

White House calls Exxon record profit 'outrageous'

It led to to bumper profits for energy companies, but also fuelled a rise in energy bills for households and businesses. Along with rising food prices it has pushed inflation - the rate at which prices rise - to a 40-year high.

The government is limiting gas and electricity bills, meaning that a household using a typical amount of energy will pay £2,500 a year.

However, that is still more than twice what it was before Russia's invasion began.

In May, the government introduced its windfall tax on the profits made from extracting UK oil and gas. The rate was originally set at 25%, but it was increased to 35% in November.

Earlier this year, Shell said it would pay tax in the UK for the first time since 2017 as a result of the new windfall tax.

Shell chief executive Wael Sawan said the firm's results "demonstrate the strength of Shell's differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world".

"We believe that Shell is well positioned to be the trusted partner through the energy transition."-bbc

Fed announces smaller rate rise as inflation cools

The US central bank has raised interest rates again as it continues its fight to stabilise prices in the world's largest economy.

The Federal Reserve said it was raising its key rate by 0.25 percentage points.

That marks the smallest increase since last March, after a series of aggressive rate hikes last year.

But officials warned that they did not think they were finished raising rates, despite signs that price increases in the US are slowing.

The bank's moves are closely watched around the world as the US drives a global shift after years of low interest rates that followed the financial crisis.

The Bank of England and European Central Bank are expected to announce their own rate increases on Thursday.

The rate rise announced by the Fed on Wednesday was expected. It increases the bank's benchmark rate to a range of 4.5%-4.75% - the highest since 2007.

By pushing up borrowing costs, the Fed is trying to cool the economy and ease the pressures pushing up prices.

But officials risk triggering a painful recession, in which the economy slows so sharply that it prompts mass job cuts.

Pressure has mounted on the bank to slow, or stop, its rate hike campaign, as the higher borrowing costs hurt sectors such as housing and the US economy slows sharply.

Those voices have grown louder amid recent data showing inflation in the US dropping to 6.5% last month.

Many investors have been betting that the bank will raise rates only once more after this meeting.

But Federal Reserve chairman Jerome Powell said bank officials remained worried by data suggesting that the costs of many services - such as health care - are increasing far faster than the 2% pace considered healthy.

He said the bank would rather raise rates too high than declare victory over the problem prematurely.

"The job is not fully done," he said. "While recent developments are encouraging we will need substantially more evidence to be confident that inflation is on a sustained downward path."

In the statement announcing its decision, Fed officials said they continued to believe "ongoing" increases would be appropriate.

Projections released in December showed they thought the bank's benchmark rate could stand above 5% at the end of 2023.

Mr Powell declined to say whether officials had changed their views, noting that there was a lot of "uncertainty" about the outlook.

Stocks rose during and after the news conference, with the S&P 500 ending up more than 1%.

The market gains could be a sign that investors are gaining confidence that the central bank will be able to stabilise prices without a recession, said Jay Bryson, economist at Wells Fargo.

But Ronald Temple, chief market strategist at Lazard, said if investors get too optimistic that the rate rises are over, it may make the Fed's job harder.

"Taken together with today's report indicating near record level job openings, I believe markets remain too dovish regarding how high rates will go and how long they will stay there," he said.

"The more markets resist the Fed, the tighter conditions will have to be to tame inflation."-bbc

King Charles will not appear on new Australia $5 note

King Charles III will not feature on Australia's new five dollar note, the country's central bank has announced.

The new design will pay tribute to "the culture and history" of Indigenous Australians, the Reserve Bank of Australia (RBA) says.

A portrait of the late Queen Elizabeth II appears on the current design of the five dollar note.

The Queen's death last year reignited debates about Australia's future as a constitutional monarchy.

"This decision by the Reserve Bank Board follows consultation with the Australian government, which supports this change," the bank said in a statement.

"The Bank will consult with First Australians in designing the $5 banknote. The new banknote will take a number of years to be designed and printed. In the meantime, the current $5 banknote will continue to be issued. It will be able to be used even after the new banknote is issued," it added.

The RBA currently has no plans to change the design of any other denomination of Australian banknotes, a spokesperson told the BBC.

It has not yet set a date for when it will reveal the new five dollar note design, they added.

The decision was welcomed by Aboriginal politicians and community leaders.

"This is a massive win for the grassroots, First Nations people who have been fighting to decolonise this country," Lidia Thorpe, a Greens senator and DjabWurrung Gunnai Gunditjmara woman.

First Nations people lived in Australia for at least 65,000 years before British colonisation, according to recent estimates.

The King became the British monarch after his mother's death in September.

As the British monarch, he is also the head of state of Australia, New Zealand and 12 other Commonwealth realms outside the United Kingdom. The role is largely ceremonial.

The British monarch's portrait has appeared on at least one design in every series of Australian banknotes.

However, in September Australia said the image of the new monarch would not automatically replace the Queen on its five dollar notes, and that she might be replaced by Australian figures.

First pictures of King Charles banknotes revealed

What next for Australia after the Queen?

Much of Australia's currency already features Indigenous Australian figures and artworks.

In a 1999 referendum Australian voters chose to keep the British monarch as the country's head of state.

In 2021, Australia officially changed its national anthem to remove reference to the country being "young and free".-bbc

Crypto theft: North Korea-linked hackers stole $1.7b in 2022

North Korea-backed hackers stole $1.7bn (£1.4bn) of crypto in 2022, says blockchain analysis firm Chainalysis.

This nearly quadruples the country's previous record for cryptocurrency theft - $429m in 2021.

The loot also made up 44% of the $3.8bn stolen in crypto hacks last year, which the firm called "the biggest year ever for crypto hacking".

Experts have said the country, facing heavy sanctions, is turning to crypto theft to fund its nuclear arsenal.

North Korea has conducted six nuclear tests and analysts expect the seventh one this year, as the country accelerates its nuclear weapons programme under leader Kim Jong-un. Last year, Pyongyang launched a record number of ballistic and other missiles. This is despite the country's struggling economy.

"For context, North Korea's total exports in 2020 totalled $142m worth of goods, so it isn't a stretch to say that cryptocurrency hacking is a sizable chunk of the nation's economy," Chainalysis said in a report on Wednesday.

These hackers typically launder crypto through "mixers", which blend cryptocurrencies from various users to obfuscate the origins of the funds, the firm said.

Other experts have also said that North Korea launders stolen crypto through brokers in China and non-fungible tokens (NFTs).

Last month, the FBI confirmed that North Korea-affiliated Lazarus Group was responsible for a $100m crypto heist on a blockchain network called Horizon bridge last year.

Overall, decentralised finance protocols, or DeFi, accounted for over 82% of cryptocurrency stolen in 2022, Chainalysis' report said.

DeFi users know what will happen to their funds when they use them because smart contract codes governing these protocols are publicly accessible by default.

But this transparency also makes DeFi particularly attractive to hackers, who can scan the codes for vulnerabilities and "strike at the perfect time" to maximise their loot, according to the report.

David Schwed, chief operating officer at blockchain security firm Halborn, noted that DeFi developers "prioritise growth over all else", and funds that could be used to enhance security are often directed instead to rewards, in order to attract users.

DeFi developers can take a leaf from traditional financial institutions in making their platforms more secure, Mr Schwed said.

For instance, they can simulate different hacking scenarios to test their protocols, or design mechanisms to pause or halt transactions when suspicious activity is detected.

"You don't need to move as slow as a bank, but you can borrow from what banks do," he said.-BBC

Adani calls off share sale after price plunges

India's Adani Enterprises has called off its share sale after the share price plunged on Wednesday.

The Adani Group's flagship company confirmed the $2.5bn (£2bn) raised from the sale would be returned to investors after shares fell 26%.

The group's companies have seen more than $90bn wiped off their value since a US investment firm made fraud claims. Adani denies the allegations.

Gautam Adani, the founder, has fallen out of the top 10 richest in the world.

According to the Forbes real-time billionaires list, Mr Adani is now the 15th-richest person in the world, with a net worth of $74.7bn. He was third on the list last week.

The billionaire runs Adani Group, one of India's biggest companies. The flagship company Adani Enterprises has operations in a wide range of industries including commodities trading, airports, utilities and renewable energy.

Last week, Hindenburg Research, a company that specialises in "short-selling", or betting against a company's share price in the expectation that it will fall, released a report that accused Mr Adani of "pulling the largest con in corporate history".

It also alleged the Adani Group had engaged in decades of "brazen" stock manipulation and accounting fraud, and claimed its companies had "substantial debt" which put the entire group on a "precarious financial footing".

The group has dismissed the allegations as malicious and untrue, calling them an "attack on India".

Asia's richest man hits back at 'con' claims

Adani shares find investors despite fraud claim

The report came days ahead of a planned sale of Adani shares to the public, and on Tuesday, the $2.5bn share sale in the group's flagship company managed to scrape through to be fully subscribed despite the controversy.

But shares plunged 26.7% on Wednesday, taking the total fall in market value for the group over $90bn, according to Bloomberg.

After the market closed, Adani Group said the company would return the share sale proceeds due to "the unprecedented situation and the current market volatility".

"Given these extraordinary circumstances, the Company's board felt that going ahead with the issue would not be morally correct," said Mr Adani.

"The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO (follow-on public offer)."

Mr Adani said the company's balance sheet was "very healthy with strong cashflows and secure assets"

"We have an impeccable track record of servicing our debt," he added. "This decision will not have any impact on our existing operations and future plans."

Adani Group has hit back at the allegations against it and said it was evaluating "remedial and punitive action" against Hindenburg Research in the US and India.

It said it had always been "in compliance with all laws".

In an interview with Mint newspaper, the group's chief financial officer compared Hindenburg Research to General Dyer, the British officer of the Bengal Army responsible for a massacre that killed hundreds of Indians in the city of Amritsar in 1919.

Hindenburg responded saying the group was stoking a nationalist narrative to obfuscate the fraud allegations.-bbc

UK interest rates: How high could they go and how a rise would affect you

The Bank of England is expected to raise interest rates for the 10th time in a row later, but analysts predict it is nearing the peak.

The benchmark rate is widely expected to go up from 3.5% to 4%, after the Monetary Policy Committee meeting.

The rate is already at its highest level for 14 years.

The impact of a rate rise would be felt by borrowers - through higher mortgage and loan costs - and in better returns for savers across the UK.

At its December meeting, the Bank rate was increased from 3% to 3.5% - the latest in a series of increases since December 2021.

Analysts believe the rate will peak at 4.5% in the summer.

How high could interest rates go?

More rate rises are likely to come, but there is a widespread belief that these may end by the middle of the year. The Bank will be keen not to dampen the economy, which is expected to enter recession.

The peak is lower than predictions had suggested when the government was in turmoil after its mini-budget was badly received.

The Bank's monetary policy committee meets eight times a year to decide interest rate policy.

It is under pressure to put rates up because it has a target to keep inflation at 2%, but prices are currently rising at 10.5%, more than five times that level.

Interest rate movements since 2005

How do interest rates affect me?

Mortgages

Just under a third of households have a mortgage, according to the government's English Housing Survey.

After a period of ultra-low rates, many homeowners are now facing the likelihood of much more expensive monthly repayments. The Bank of England says up to four million households face a higher monthly mortgage bill this year.

When interest rates rise, about 1.6 million people on tracker and variable rate deals usually see an immediate increase in their monthly payments.

An increase in the Bank rate from 3.5% to 4% would mean those on a typical tracker mortgage would pay about £49 more a month. Those on standard variable rate mortgages face a £31 jump.

This would come on top of increases following the previous recent rate rises. Compared with pre-December 2021, average tracker mortgage customers would be paying about £382 more a month, and variable mortgage holders about £240 more.

Three-quarters of mortgage customers hold a fixed-rate mortgage. Their monthly payments may not change immediately, but house buyers - or anyone seeking to remortgage, estimated to be 1.8 million people this year - will have to pay a lot more now than if they had taken out the same mortgage a year or more ago.

There has been considerable upheaval in this market since September's mini-budget, even though most of the policies that were announced have now been ditched.

An average two-year fixed deal, which was 2.29% in November 2021, is now 5.44% - a difference of hundreds of pounds each month in repayments for a typical borrower.-bbc

Facebook: Quarter of global population used site daily in December

The number of people using Facebook daily grew to an average of two billion in December - about a quarter of the world's population.

The bigger-than-expected growth helped drive new optimism about the company, which has been under pressure as its costs rise and advertising sales slump.

Shares in parent company Meta surged more than 15% in after-hours trade as boss Mark Zuckerberg declared 2023 the "year of efficiency".

He said he was focused on cost cuts.

"We're in a different environment now," he said, pointing to the firm's revenue, which declined in 2022 for the first time in its history after years of double-digit growth.

"We don't anticipate that that's going to continue, but I also don't think it's going to go back to the way it was before."

Meta, which also owns Instagram and WhatsApp, announced a major restructuring last year, including reducing office space and cutting 11,000 jobs or about 13% of staff.

The firm said those moves cost it $4.6bn last year - hitting its profits, which were almost cut in half. It still brought it in $23.2bn in profit for the year.

"2022 was a challenging year but I think we ended it having made good progress," Mr Zuckerberg said.

In the three months to December, the firm said revenue was $32.2bn, down 4% year-on-year.

But that was better than many analysts had expected.

Meta had alarmed investors last year when it posted the first-ever decline in daily Facebook users in its history and signalled it was focusing investments on virtual reality, known as the metaverse.

But in December, the number of users on the site daily was up 4% from a year earlier, adding users even in Europe and the US and Canada.

Meta said the number of people active across all of its apps each day was up 5% year-on-year.

Mr Zuckerberg said the company was making progress with its video product - Reels - which it has been focused on as it faces off with rivals such as TikTok, which have gained traction, especially among younger users.

Mr Zuckerberg said those efforts were starting to pay off, and ad dollars were starting to follow users to the videos.

Investors seized on the company's forecast of lower costs and stronger sales than expected in the months ahead, helping send shares higher.

The company also said it would spend an extra $40bn to buy back shares, which dropped sharply last year amid investor doubts about the direction of the company.-bbc

ChatGPT firm trials $20 monthly subscription fee

The firm behind the popular AI chatbot ChatGPT is trialling a subscription service in the US.

For $20 (£16) per month, subscribers will get access to the platform even at peak times when it can be hard to log onto, and also "priority access" to new features, chatbot creator OpenAI said.

It plans to extend the trial more widely but initially it will only be offered to those on a waiting list.

The free version will still be available, the firm said.

In a blog post, OpenAI said it hoped the subscription would support free access. It currently costs the firm a small amount of money every time the chatbot is used.

ChatGPT provides convincingly human responses to questions using information from the internet.

New chatbot has everyone talking to it

Nick Cave says AI Nick Cave lyrics 'suck'

Within a few days of its launch, OpenAI boss Sam Altman tweeted that it had already been used more than one million times, however, the firm has not released any further data since then.

The chatbot has captured people's imagination by being able to mimic a wide range of writing styles, from journalist and doctor, to rock star and student essay writer.

The musician Nick Cave described its songwriting attempts in his style as "a grotesque mockery".

As well as being used for fun, people are asking ChatGPT to write website and marketing copy, find food recipes and write or check programme code.

There are fears that pupils are already using it to do their homework, and some cyber security experts have warned that it could be manipulated into writing malicious software known as malware.

'Future of search engines'

On Tuesday, OpenAI launched a tool which it claims can detect whether text was written by human or artificial intelligence.

Some experts believe that decent chatbots are the future of search engines - where AI searches the internet for one correct answer to a search query rather than serving up pages of links.

But ChatGPT currently does not attribute information or offer any comment about its accuracy, and there are many examples of it presenting misinformation as fact.

It is also restricted to the contents of the internet as they were in 2021. The version that's been released is version three, and the company has said the next generation is currently being built.

ChatGPT is known as a language learning model and many other firms are developing them. Google's is called Lamda, and was so convincing that Blake Lemoine, one of the engineers who worked on it, was convinced it was sentient.

Mr Lemoine was fired, and Google has always denied the claim. It has not released Lamda to the public.-bbc

British Gas admits debt agents break into homes

The boss of British Gas owner Centrica has said it is horrified that debt collectors have broken into vulnerable customers' homes to fit energy meters.

Debt agents working for British Gas expressed excitement at putting meters in the homes of people who had fallen behind on energy bills.

"This happened when people were acting on behalf of British Gas. There is nothing that can be said to excuse it," Chris O'Shea told the BBC.

The firm has suspended installations.

The move follows an undercover investigation by the Times, whose reporter went with agents working for Arvato Financial Solutions' - a company used by British Gas to pursue debts - to the home of a single father with three children.

After establishing the property was unoccupied, the reporter observed the agents work with a locksmith to force their way in and install a prepayment meter.

It reported that the locksmith said: "This is the exciting bit. I love this bit."

Mr O'Shea said: "The contractor that we've employed, Arvanto, has let us down but I am accountable for this.

"This happened when people were acting on behalf of British Gas. There is nothing that can be said to excuse it."

Agents also fitted a prepayment meter by force at the home of a young mother with an infant baby, the newspaper said.

Others who experienced similar treatment, according to materials seen by The Times, include a mother whose daughter is disabled and a woman described as having mobility problems.

Centrica said the suspension - where it applied to the court for a warrant to install a pre-payment meter - would last "until at least after winter" and that protecting vulnerable people was its priority.

Business Secretary Grant Shapps said he was "horrified" by the findings.

"Switching customers - and particularly those who are vulnerable - to prepayment meters should only ever be a last resort and every other possible alternative should be exhausted," he said.

"These findings suggest British Gas are doing anything but this."

It comes amid the rising cost of living and as household bills soar in part due to mounting energy costs.

'My energy firm forced me onto a prepayment meter'

What can I do if I can't pay my energy bill?

Who can get the latest cost-of-living payments?

Mr Shapps said the energy minister would hold a meeting with British Gas "in the coming days", adding: "He will be demanding answers to ensure this systemic failure is addressed."

A spokesperson for energy regulator Ofgem said: "It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so."

People using prepayment meters pay for their gas and electricity by topping up their meter, either through accounts or by adding credit to a card in a convenience store or Post Office.

This is a more expensive method of paying than by direct debit, but is sometimes the only option for people who have struggled to pay and are in debt to an energy supplier.

Many rented properties also have prepayment meters.

Problems can arise when residents no longer have any credit left on the meter and have no money to top it up - leaving them unable to cook or heat their homes.

Last month, the Citizens Advice charity called for a ban on energy companies "forcing" customers on to prepayment meters because they are struggling to pay bills.

In response to The Times, Gillian Cooper, head of energy policy at Citizens Advice, said: "It's truly shocking to see the extent of bad practices amongst some energy suppliers.

"Our frontline advisers know only too well the desperate situations so many struggling customers have found themselves in. Time and time again we have called for a ban on forced prepayment meter installations until new protections for customers are brought in.

"Ofgem and the Government need to act now - serious reforms must be made before these suppliers can be trusted again."

BBC News has contacted Arvato Financial Solutions for comment.-bbc

Elon Musk's Tesla lost $140m on Bitcoin in 2022

Tesla made a $140m (£113.5m) loss on its Bitcoin investments in 2022, according to filings.

The electric car maker told the US regulator it lost $204m on Bitcoin overall, though it gained back $64m through trading.

Tesla put $1.5bn into Bitcoin in early 2021, with chief executive Elon Musk saying it would be accepted as payment.

It changed course a few weeks later, and Tesla has since sold most of its Bitcoin holdings.

It now holds about $184m of Bitcoin.

Mr Musk has been among the most high-profile champions of cryptocurrency, with his pronouncements on social media often driving significant trading activity.

Tesla's February 2021 Bitcoin purchase caused the cryptocurrency to rise in price by more than 25% to $48,000 - a record high at the time.

It rose again in March 2021, when Mr Musk tweeted Tesla would allow customers to make their car purchases using Bitcoin. This enabled people in the US to secure orders with the equivalent of a $100 deposit in Bitcoin.

But the cryptocurrency subsequently fell by more than 10% two months later, when the firm backpedalled on this plan, citing climate change concerns.

According to the UK Treasury, Bitcoin's global annual energy consumption is estimated to be roughly 39% of the UK's - and some estimates put the cryptocurrency's even higher.

Its price soared to almost $70,000 in November 2022 before crashing by more than 50% when Tesla decided to offload most of its holdings.-bbc

EU takes on US as tries to win electric car battle

The European Commission has unveiled a plan to try to boost manufacturing of electric cars and renewable energy projects, as it fights to compete with the US.

The proposal calls for simpler regulation and faster access to funding for firms working in green industries.

It would also loosen state aid rules.

The move comes after the US announced big investments in climate friendly technologies, including incentives for US-made electric vehicles.

"Major economies are rightly stepping up investment in net zero industries," European Commission president Ursula von der Leyen said at a news conference. "What we are looking at is that we have a global playing field."

The International Energy Agency estimates the global market for mass-produced clean energy will triple to around $650bn 9£528bn) a year by 2030, with related manufacturing jobs more than doubling.

European leaders have expressed alarm that the $369bn in investments approved by the US last year will put Europe at a disadvantage economically as the industry grows, encouraging firms to relocate to America.

In the UK, business secretary Grant Shapps last month warned that the green subsidies could herald a "dangerous" slide into protectionism.

Despite the criticism - including accusations that the US is breaking free trade rules - the White House has shown little appetite for changing its plans, which US President Joe Biden has presented as key to re-energising the American economy.

"You see I'm getting criticized internationally for focusing on America," he said in a speech about the economy last week. "To hell with that. This is real serious."

The Green Deal Industrial Plan outlined by the European Commission includes reforming the bloc's electricity market, working on other free trade agreements and easing state aid rules, including to allow for bigger projects to qualify for aid without additional approval procedures.

But designing the programme to satisfy concerns that the beneficiaries of the changes will primarily be big economies such as France and Germany will be tricky.

The proposal will be debated at a meeting of the 27-member group later this month.

"Competitiveness in Europe cannot be built on state aid. But support may be needed to fulfil our objective to get rid of fossil fuels as quickly as possible," said Margrethe Vestager, executive vice-president in charge of competition policy.

"We will now seek member states views before we decide on the way forward."-bbc

West Africa: AfDB Approves U.S.$50 Million, €50 Million Trade Finance Credit Line for ECOWAS Bank

Bank partners Government of Canada to fund SMEs, agric

The Board of Directors of the African Development Bank Group (AfDB) has approved a dual-currency Trade Finance Line of Credit for ECOWAS Bank for Investment and Development (EBID) comprising $50 million and €50 million.

In a statement yesterday, the AfBD stated that an additional co-financing of $30 million for the credit line would come through the Africa Growing Together Fund (AGTF) from the People's Bank of China (PBOC).

EBID would use the three-and-a-half-year facility to provide direct financing to local corporates, it stated.

According to the AfDB, part of the facility would also be channelled through select local banks for on-lending to key sectors such as agriculture, infrastructure, and transport.

It stated further that the ultimate beneficiaries would be the Small and Medium-sized Enterprises (SMEs), local enterprises cooperatives and farmers in the West Africa region.

Speaking soon after the Board approval, the Deputy Director General for the West Africa Region, Joseph Ribeiro noted that regional development finance institutions like EBID are key partners of the African Development Bank and serve markets and client segments critical to the overall development of the continent.

"They play an important role in promoting trade and regional integration. This is the Bank's first financing support to EBID, and we look forward to an even stronger partnership in the near future," he said.

The Bank's Head of Trade Finance, Lamin Drammeh, stressed the critical need for such support in the region.

"We are excited to work with EBID to increase access to trade finance in the ECOWAS region with a special focus on the agriculture value chain, SMEs and women-owned businesses", he said.

"Regional institutions like EBID complement the Bank's efforts to bridge the trade finance gap in Africa and serve as an effective conduit for channeling much-needed funds to underserved countries and sectors", he added.

The AfDB estimated the annual trade finance gap for Africa to be around $81 billion.

"Compared to multinational corporates and large local corporates, SMEs and other domestic firms have greater difficulty in accessing trade finance," it added.

Meanwhile, the AfDB and the Government of Canada have established a new special fund to support Africa's small and medium-sized enterprises (SMEs) in the agriculture sector.

The Agri-food SME Catalytic Financing Mechanism aims to catalyse and de-risk investment for agriculture SMEs, as well as strengthen agricultural value chains and improve food security across the continent.

The two organisations made the announcement at a press conference held during at the Dakar 2 Africa Food Summit, recently.

"At the Africa Food Summit, we have seen a strong commitment to addressing the financing gap for SMEs and creating an environment that encourages private sector investments in climate-smart, gender-oriented agricultural solutions," the bank's Vice President for Agriculture, Human and Social Development, Dr. Beth Dunford, told reporters.

"The Agri-food SME Catalytic Financing Mechanism will help unlock opportunities for these businesses in Africa, particularly for women and youth," she said.

Canada contributed CAD 100 million ($73.5 million) to fund the mechanism, which was hosted by the AfDB.

Small and medium agri-businesses produce, process or transport around 65 per cent of Africa's food, yet they face a financing gap of more than $180 million annually.

The mechanism would provide concessional finance and technical assistance to financial intermediaries including agribusinesses, micro-finance institutions and impact funds.

The finance and assistance aim to enable the intermediaries to make loans to agri-SMEs working with women, and businesses that build resilience to climate change.

The Agri-food SME Catalytic Financing Mechanism would add to the Bank Group Affirmative Finance Action for Women in Africa's (AFAWA) goal of closing the $42 billion access to finance gap for women-led SMEs and to accelerate their growth.

The mechanism represents the bank's first blended financing facility to specifically target SMEs operating across the agricultural value chain. It mobilises public funds to de-risk agricultural financing, crowds in support to make SMEs more bankable, and collaborates with providers of capital to make banks more 'agriculture-friendly'.

"The best way to build up food security in Africa is to work with small-and-medium-sized agriculture and food businesses. Through a shared commitment between Canada and the African Development Bank, the Agri-food SME Catalytic Financing Mechanism will advance resilient growth and climate adaptation. It will also help African SMEs to pursue climate smart models, and support women by shifting attitudes that perpetuate gender gaps in financial inclusion," said Anita Vandenbeld, Parliamentary Secretary to Canada's Minister of International Development.

-This Day.

Liberia Loses Over U.S.$300 Million Yearly to Tax Waivers

--- "Each year, more than US$300 million is lost to tax waivers and incentive programs. There is a need to revisit our incentive policies and monitoring frameworks to safeguard our revenues," says Montgomery, the Deputy Commissioner General for Technical Services at the LRA.

The Liberia Revenue Authority is losing over US$300 million annually to tax incentives and waivers.

This revelation, which was contained in the presentation of Gabriel Montgomery, the Deputy Commissioner General for Technical Services at the LRA, comes as the Liberia national budget is yet to reach US$1 billion. The 2023 draft budget, which President George Weah has submitted for legislative approval amounts to US$777.9 million -- down by nearly US$29 million when compared with the US$806.5 million approved budget for the fiscal year 2022.

US$667.9 million of the proposed budget is domestic revenue (85.9% of the budget amount), while external resources on-budget account for US$110 million or 14.1%.

The drop comes as the country continues to collect minimal public revenues from many large-scale investments as a result of a narrow tax base.

"We are given bigger targets and are pushing ourselves to meet, but there is a need to consider the impact of tax incentives and other generous policy regimes in the revenue basket," Montgomery told members of the Joint legislative budget committee at a hearing, as he warned of serious serious risk to domestic revenue mobilization if tax waivers policies are not looked at properly.

"Each year, more than US$300 million is lost to tax waivers and incentive programs. We believe that incentives can be good if they are targeted towards investment and

growth promotion, and that specific requirements for qualification such as local content requirements and employment are met," he said. "There is a need to revisit our incentive policies and monitoring frameworks to safeguard our revenues."

Montgomery's disclosure is however not strange as this has been the position of the World Bank and the International Monetary Fund, which in times past have warned Liberia of the risks of tax holidays.

These breaks, which have swelled in the last two decades, have impacted the country's budget growth negatively in the form of foregone revenues -- making the country more heavily dependable on external grants to fund almost all of its development projects, as well as revenue in the form of budget support.

The World in particular has asked the Liberian government to narrow investment tax incentives, remove or streamline duty duty free privileges for lawmakers and other exemptions granted in concession agreements as a means of raising enough revenue to unlock the country's potential.

Low revenue generation means the government does not have the necessary funds to invest in physical and human capital development at a scale needed to lift the country from its 'least developed' status.

The World Bank, in a report, Liberia Domestic Revenue Mobilization Policy, notes that while tax concessions are a universal feature, the extremely narrow tax base in Liberia as well as lack of scrutiny on granting incentives and the fiscal implications calls for changes in the approach to tax concessions since the practice generates real costs in form of foregone revenues.

One risk factor with tax breaks, according to a 2018 study by the United Nations Department of Economic and Social Affairs Financing, entails significant costs, such as revenue loss, low economic efficiency, increased administrative and compliance costs, and excessive tax planning and tax evasion, which may exceed their benefits and considerably erode the general tax base; and in some cases, few new investments, with a significant cost to the government.

And so, Montgomery did not hold back his words when he told lawmakers that for the country to meet its increasing demand, tax incentives and other generous policy regimes need to be revisited or the country would continue to suffer US$300 million in annual losses.

According to him, the government is waiving almost everything and warned that it is not safe to continue that way. "There is a need to revisit our incentive policies and monitoring frameworks to safeguard our revenues. Domestic revenue mobilization is the lifeblood of our country's development. As donor support is drying up, we will continue to increase our reliance on the LRA to meet even more ambitious targets," Montgomery noted, as members of the house budget committee listened keenly.

-Observer.

Nigeria: NCC Moves to Bridge Gender Inequality in ICT Sector

Abuja — The Nigerian Communications Commission (NCC) has introduced the "Nigerian Girls Can Code," as part of efforts to bridge the gender gap between male and female stakeholders in the information communications technology (ICT) sector.

The Executive Vice Chairman (EVC) of the NCC, Prof. Umar Danbatta said this yesterday, during an award presentation ceremony at the Commission's headquarters in Abuja.

Speaking through the Executive Commissioner, Technical Services, NCC Ubale Maska, the EVC said the competition was designed to enhance digital literacy skills and bridge the digital divide between the men and women.

He stated that the inclusion of girls in the ICT was in line with the United Nations' efforts to empower girls in tech and close the digital

He said: "The competition has been designed to enhance digital literacy and skills for the country's emerging digital economy, bridge digital inequality, improve digital access as well as narrow the digital divide between men and women in the ICT innovation and development.

"The Nigerian girl can code competition is also framed to support technology skills learning for girls and promote broader national audience amongst others."

According to him, "empowering women and girls will fuel thriving economies, spur productivity and growth.

"Women lack access to decent work and face occupational segregation and gender wage gaps."

The EVC stated: "We believe that critical societal problems can be solved using technologies such as artificial intelligence, internet of things and data analytics.

"Application of these emerging technologies in agriculture has the potential to increase both operational efficiency of farmers and the yield of the land. It will provide competitive edge needed by farmers in terms of accurate decision making, improved productivity, and efficiency."

According to him, the aim of the Commission organising the competition was to: "empower women and young girls through technology skills and leadership opportunities to present and promote their schools support for STEM programme, and show them capacity for innovation to leverage ICT to ensure equitable and quality lifelong opportunities."

In his remarks, the Chairman, NCC Board of Commissioners, Adeolu Akande, stated that the competition was designed to address the challenges of digital inequality, bring equity and narrow the digital gap between men and women in ICT

He disclosed that the winners of the competition were selected based on the application functionality, innovation, accessibility, commercial potential and overall national impact.

-This Day.

Tanzania: Zanzibar Projects 6pc Economic Growth

DESPITE global economic crisis attributed to drought, Covid-19 pandemic and Ukraine/Russia war, economists here forecast the isles economy to grow at 6 per cent this financial year.

"We expect the economy to grow from 5.7 per cent recorded last year to 6.0 per cent this year," Head of the Economic Analysis Unit from the Planning Commission in the Ministry of Finance and Planning, Ms Shemsa Abdalla Mbarouk said.

Ms Mbarouk revealed this when presenting the 'Zanzibar Economy Status and Forecast' at the public forum to air views on "Zanzibar government national budget draft for 2023/2024 financial year held at Sheikh Idrissa Abdulwakil Hall, Kikwajuni on Tuesday.

Ms Mbarouk explained that the projected economic growth is backed by an increase in tourists' arrivals by 30 per cent from 538,202 tourists in 2022 to 699,863 tourists this year.

"Another factor is ongoing execution of big development projects, controlling inflation and increasing financial discipline in public offices," she said, adding that political and social stability with improved infrastructures and ports services will fuel economic growth.

She highlighted that the world economic growth is estimated to fall from 3.2 per cent in 2022 to 2.7 per cent in 2023 due to political instability caused by the Russia/Ukraine war, inflation, cost of living and financial instability in many countries.

However, she promised that the forecast about inflation in Zanzibar will decrease from 4.5 per cent in 2023 to 3.9 per cent in 2025 due to various reasons, including production costs due to the guaranteed price of cloves and good financial policies.

The forum was opened by the State Minister- Office of the President- Finance and Planning Dr Saada Mkuya Salum, who asked government institutions to ensure that they have sustainable work plans and spending.

She explained that many institutions are given money for use but it is upsetting that many have no work plan, financial and procurement plans.

"We will continue to monitor the institutions to promote financial accountability."

"The world economy has been affected by the Covid-19 pandemic followed by the conflict between Ukraine and Russia. But as the world recovers gradually, we in Zanzibar have to observe all financial precautions to remain stable," she said.

Dr Salum urged members of the public, particularly stakeholders to give their constructive views on the best way to move forward with the budget.

He said President Dr Hussein Mwinyi has been challenging the executives on being creative to find alternative ways of obtaining funds to reduce heavy reliance on funds at the treasury.

She said that in efforts to manage and finance projects, the government has been involving the private sector, both foreign and local, to help build the country's economy as witnessed in many countries.

Earlier, the Ministry's Deputy Permanent/Principal Secretary (PS) Mr Aboud Hassan said his office has been organising forums annually to meet the requirements of the public finance law number 12 of 2016 section 38 and 72, which requires engaging stakeholders in preparing the budget.

-Daily News.

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Axia 

EGM to approve the delisting of Axia from the ZSE and listing on VFEX

virtual

February 2 –  (9am)

Robert Mugabe National Youth Day

February 21

Cafca 

AGM

virtual 

February 23  - (12pm)

Ariston 

AGM

Centenary Room, Royal Harare Golf Club

February 24 - 3:30pm

Good Friday

April 7

Easter Saturday

April 8

Easter Sunday

April 9

Easter Monday

April 10

Independence Day

April 18

Workers’ Day

May 1

Africa Day

May 25

Companies under Cautionary

CBZH

TSL

Fidelity

Willdale

FMHL

ZBFH

GetBucks

Zimre

Seed Co

 <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 sources 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 sourced 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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