Major International Business Headlines Brief::: 30 January 2023

Mon Jan 30 09:25:18 CAT 2023

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Major International Business Headlines Brief::: 30 January 2023 

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ü  Mining giant 'sorry' over lost radioactive capsule in Australia

ü  Adani Group says Hindenburg fraud claim 'calculated attack on India'

ü  Ryanair and EasyJet ready to snap up Flybe staff

ü  Flybe administration: Scramble to change plans after airline ceases trading

ü  Over-50s at work: 'You feel your usefulness has passed'

ü  LVMH: Luxury giant's sales soar despite China losses

ü  'Elon Musk has made me embarrassed to drive my Tesla now'

ü  Jeremy Hunt says significant tax cuts in Budget unlikely

ü  Rolls-Royce is a burning platform, claims new boss

ü  Hemp makes a comeback in the construction industry

ü  Nigeria: Airlines Struggle for Survival Under Current Foreign Exchange Rate

ü  Nigeria: Blue Line Rail Will Generate Its Own Electricity

ü  Nigeria: CBN Extends Deadline for Use of Old Naira Notes

ü  Kenya: How Entrepreneur Entrenched Cycling in Juja Through Bike Hiring

 <mailto:info at bulls.co.zw> 

Mining giant 'sorry' over lost radioactive capsule in Australia

Mining giant Rio Tinto says it is working with authorities to try to find a radioactive capsule that went missing in Western Australia this month.

"We recognise this is clearly very concerning and are sorry for the alarm it has caused," the firm told the BBC.

The casing contains a small quantity of radioactive Caesium-137, which could cause serious illness if touched.

It was lost between the town of Newman and the city of Perth, a distance of roughly 1,400km (870 miles).

"As well as fully supporting the relevant authorities, we have launched our own investigation to understand how the capsule was lost in transit," Rio Tinto's Iron Ore chief executive Simon Trott said in a statement.

"As part of this investigation we are working closely with the contractor to better understand what went wrong in this instance," he added.

Urgent search for radioactive capsule in Australia

The company said the capsule left its Gudai-Darri mine in Western Australia on 12 January. It was reported missing on 25 January.

"Rio Tinto engaged a third-party contractor, with appropriate expertise and certification, to safely package the device in preparation for transport off-site ahead of receipt at their facility in Perth. Prior to the device leaving the site, a Geiger counter was used to confirm the presence of the capsule inside the package."

A Geiger counter is an electronic device used for detecting and measuring radiation.

State officials have issued a radiation alert across part of Western Australia.

The small, silver capsule, used as a sensor, is just 6mm (0.24 inches) in diameter and 8mm long.

However, exposure to trace quantities of the metal is like "receiving 10 x-rays in an hour, just to put it in context, and... the amount of natural radiation we would receive in a year, just by walking around," said Western Australia's chief health officer Andrew Robertson.

The state's desert is remote and one of the least populated places in the country. Only one in five of Western Australia's population lives outside of Perth, the state's capital.

However, officials say they are concerned that someone could pick up the capsule, not knowing what it is.

"If you have contact or have it close to you, you could either end up with with skin damage, including skin burns... and if you have it long enough near you, you could cause what is called acute radiation sickness, and that will take a period of time," Mr Robertson added.

This incident comes as the company is trying to repair its reputation in Australia after it was hit by a backlash for destroying sacred Aboriginal rock shelters in Western Australia.

Rio Tinto blasted the 46,000-year-old rock shelters at Juukan Gorge to expand an iron ore mine.

The incident sparked a major outcry that led to several of the company's top bosses standing down.

In September 2020, then-chief executive Jean-Sébastien Jacques and other senior executives, including the heads of its iron ore and corporate relations divisions, said they would leave the company.-BBC

Adani Group says Hindenburg fraud claim 'calculated attack on India'

The company owned by Asia's richest man Gautam Adani has issued a detailed rebuttal of allegations of wrongdoing by short seller Hindenburg Research.

In a document, which runs to more than 400 pages, Adani Group says the report is a "calculated attack on India".

Later on Sunday, Hindenburg said "Adani failed to specifically answer 62 of our 88 questions" detailed in its report.

Adani Group, an Indian conglomerate, had more than $50bn ($40.4bn) wiped off its stock market value last week.

It also said that it had complied with all local laws and had made the necessary regulatory disclosures.

"All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," Adani Group said in a 413-page document issued late on Sunday.

It went on to accuse the Hindenburg report of being intended to enable the US-based short seller to book gains, without citing evidence.

"This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors," it added.

"Short-selling" is when someone bets against a company's share price in the expectation that it will fall.

In response Hindenburg said: "To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future."

"We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

Fortune of Asia's richest man hit by fraud claims

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

It comes as Adani Group's flagship firm, Adani Enterprises, is this week pushing ahead with a $2.5bn share sale.

Last week, a report published by Hindenburg questioned the Adani Group's ownership of companies in offshore tax havens such as Mauritius and the Caribbean.

It also claimed Adani companies had "substantial debt" which put the entire group on a "precarious financial footing".

But on Thursday, Adani Group said it was evaluating "remedial and punitive action" against Hindenburg Research in the US and India.

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

Also on Thursday, Hindenburg responded to Adani's comments, saying the firm had not addressed "a single substantive issue we had raised".-BBC

Ryanair and EasyJet ready to snap up Flybe staff

Staff who have lost their jobs due to the collapse of regional airline Flybe should apply for roles with EasyJet and Ryanair, say the two budget operators.

Flybe went into administration on Saturday, putting 277 staff out of work.

The British Airline Pilots' Association (Balpa) said it had received phone calls in the early hours of Saturday morning from worried Flybe staff.

But the union's leader, Martin Chalk, said there were jobs "out there".

EasyJet said it had 250 vacancies for cabin crew.

Ryanair posted a message on the careers section of its website saying that it had vacancies in all categories, including pilots, engineers and ground staff.

"Of course there is upset and concern," said Mr Chalk, Balpa general secretary.

Some staff had already been through a similar experience when Flybe collapsed three years ago, he said. When this happened, the airline shed 2,000 staff and then relaunched in April last year.

"The advantage is, this time around, the market is somewhat more buoyant than it was, now that Covid is largely in the rear view mirror," said Mr Chalk.

Airlines are also determined to avoid a repeat of last year's catastrophe, when staff shortages led to thousands of flight cancellations, leaving passengers stranded and demanding compensation.

'Jobs for all'

Flybe has cancelled all planned flights to and from the UK after going into administration - affecting 75,000 passengers in total. Passengers have been scrambling to find alternative ways to travel.

However, most Flybe staff are unlikely to be left high and dry, said airline analyst John Strickland.

"My expectation is that airlines haven't completed all their recruitment for the summer, so there will be gaps and opportunities," he said.

A post on Ryanair's website encouraged Flybe staff to apply for new roles with the airline.

"[Ryanair has] positions for all of you, across all areas of our business, including flight crew, cabin crew, engineers, ground staff and office staff," it said.

EasyJet said it was not currently advertising for pilots, but would encourage Flybe cabin crew to apply for the 250 vacancies it has at Gatwick and Luton airports.

Flybe cabin crew would be fast tracked and could start work after 10 days, EasyJet said. Successful applicants for head office roles could be fast tracked within 14 days.

Optimism

Flybe first went into administration in March 2020, knocked off course by the pandemic, which saw almost all flights grounded. It was rescued by Thyme Opco, a firm linked to US hedge fund Cyrus Capital, and relaunched in early 2022, but as a much smaller operator.

This meant many fewer jobs were at stake this time round, said airline analyst John Strickland.

"[And] it's definitely a more hopeful time for the staff," he said. "The original Flybe company collapsed with around 70 aircrafts and we were just going into the industry-wide shock that Covid created.

"Contrast with this the revived Flybe, with only around five aircrafts, going into a period when we are looking to put Covid substantially behind us, a period when airlines are optimistic about bookings."

Both Ryanair and EasyJet appear to be in a strong position to take on staff, he added.

Ryanair has already returned to being profitable, defying the challenges of last year, and chief executive Micheal O'Leary recently told the Financial Times he sees "no signs" of the current economic slowdown hitting airlines.

EasyJet chief executive Johan Lundgren told the BBC his firm has experienced a bounce-back in sales, reducing its losses.

Mr Strickland said Flybe had not succeeded in taking advantage of the return in travel demand, due to stiff competition, rising fuel prices and because the airline lacked "a clear and defensible business strategy, given that regional flying is the toughest segment to be in".

Balpa's Mr Chalk said he would like to work with the sector and the government to try to ensure there was a more stable market, rather than "the churn" of companies picking up staff from each other.-BBC

Flybe administration: Scramble to change plans after airline ceases trading

For Sophie Levy, a relaxing break to visit family in Windsor was scuppered when Flybe declared on Saturday that it was cancelling all flights.

The airline said it had ceased trading, with 277 out of 321 staff being made redundant.

Sophie is one of 2,500 people who were forced to change their Saturday travel plans last minute.

She flew with Flybe on Friday from Newquay in Cornwall to Heathrow, with a return flight scheduled for Sunday.

"I will now be getting a train at short notice that will put me out of pocket," she told BBC News.

"My relaxing weekend turned out to be manic."

Sophie is in the Royal Navy, based at RNAS Culdrose in Cornwall, and said she was under pressure to return to her base in time for a promotional course.

The airline has cancelled all planned flights to and from the UK after going into administration - affecting 75,000 passengers in total.

Flybe said it would not be able to help passengers arrange alternative flights.

Many customers have said they only found out about the cancellations while travelling to the airport.

Freddy McBride, 61, from Balham in south London, was due to fly with his wife from Heathrow to Belfast on Saturday morning but had to rebook with Aer Lingus.

He said he got up at the "crack of dawn" trying to check in, as he had been unable to do so the night before.

"I left my wife to do it while I got the train," which was before 07:00 GMT, he said.

"I got to Hatton Central [station] and I checked my email and it says they've gone into administration. It's just outrageous."

'£100 out of pocket'

Natalie Punshon from Darlington was in Belfast after her Sunday Flybe flight back to Newcastle was cancelled.

"This morning I woke up to two emails, one saying the flight was cancelled and another that I could check in for the flight," she said.

She said she had booked a flight back with Easyjet, but that she was now £100 out of pocket.

Chris Donnelly, who was scheduled to fly from Belfast City to Heathrow at 07:25 GMT, also said his flight had been cancelled.

At 03:07 GMT he received an email from Flybe stating that the company had gone into administration, he said. The email advised passengers not to travel to the airport.

Mr Donnelly, a school principal and political commentator, was on his way to the airport when he saw the email.

Chris Donnelly - head of St John the Baptist Primary School in Belfast

Image caption,

Chris Donnelly was on the way to the airport when he read an email about his cancelled Flybe flight

He was able to book an alternative flight from Belfast to Gatwick, but doing so at short notice was inconvenient, he said.

He added that he had booked train tickets from Heathrow into central London for £50 - which he now did not need.

'I don't know what has happened'

Neil Baker from Teesside made a Flybe booking on Friday through a third-party website. He bought tickets for his mother, who is 87, and her friend to travel during the May bank holiday, he said.

"I received an email that there would be a delay in getting a booking confirmation which has happened to me before," he said.

"Now I hear that Flybe has gone into administration, I don't know what has happened to the flights."

He said he is now waiting to hear from the third-party website to find out if his booking went through.

Flybe's administrator confirmed 277 of its 321 staff were being made redundant.

Financial advisory firm Interpath said the rest of the company's staff would be retained.

Until the most recent collapse, Flybe operated flights on 21 routes from Belfast City, Birmingham, and Heathrow to airports across the UK as well as to Amsterdam and Geneva.

A statement published on the Flybe website early on Saturday said the High Court had appointed joint administrators for Flybe Limited.

It added that anyone who had booked a flight with the airline via an intermediary should contact that intermediary directly.

The government said its "immediate priority" would be to support anyone trying to get home and Flybe staff who have lost their jobs.

The Civil Aviation Authority (CAA), the body which overseas air travel in the UK, has issued advice to customers:

·         Those who booked directly with Flybe with a credit, debit, or charge card should contact their card provider for a potential refund

·         Card providers may ask for a "negative response" letter, proving the status of the airline. This will published on the website of the CAA

·         The CAA may launch an operation to repatriate stranded passengers, but this has not been announced yet. It is worth checking their website

·         Customers who booked their flights as part of a package deal with a travel agent may be ATOL-protected (Air Travel Organisers' Licensing) and are advised to speak to their agent

·         Most Flybe bookings are not part of a package holiday and are unlikely to be ATOL-protected, but may still be covered through travel insurance if it covers scheduled airline failure-BBC

Over-50s at work: 'You feel your usefulness has passed'

Michael O'Reilly from Bexhill wants a job, but says he can't find one because companies don't want people his age.

"It's horrible," he says. "You feel your usefulness has passed."

His experience is not unusual. New research from the Chartered Management Institute (CMI) suggests firms are much less open to hiring older workers than they are to bringing in younger talent.

Yet at the same time the chancellor is urging people who retired early to return to work.

In a speech on Friday, Jeremy Hunt said there were almost 300,000 fewer people in employment than before the pandemic, and warned firms would find it difficult to grow if they could not find enough staff.

"So, to those who retired early after the pandemic, or haven't found the right role after furlough, I say: Britain needs you," Mr Hunt said.

But the CMI, a professional body focusing on management and leadership, warns that to bring more older workers back into the workforce, employers will also need to "shift their attitudes" towards hiring.

The CMI surveyed more than 1,000 managers working in UK businesses and public services. It found that just four out of 10 (42%) were open "to a large extent" to hiring people aged between 50 and 64.

Hunt says significant tax cuts in Budget unlikely

Pay rises at fastest pace for over 20 years

Over-50s encouraged to end early retirement

The survey, carried out at the end of October 2022, found that most employers were more open to hiring workers in younger age groups.

Almost three quarters, 74%, of managers were open to a large extent to hiring younger workers between the ages of 18 and 34.

Slightly fewer, that is 64%, were very open to hiring those aged between 34 and 49.

The number dropped furthest for applicants in the over-65 aged group. Just 18% of managers said they were open to a large extent to hiring people in that category.

The findings are despite the benefits older workers can offer. Mr O'Reilly has decades of experience working in the banking sector, starting as a programmer and moving up to global IT management positions. He is over 50, although he avoids giving his exact age to potential employers.

"What tends to happen is, over the phone the initial conversation is fine, but when you do video calls or face-to-face interviews the dynamics change. You can tell by their manner and their body language, they're not really paying attention to you," he told the BBC.

Leadership failings

Ann Francke, chief executive of the CMI, said it was employers, as much as older workers, who needed to hear the chancellor's message about encouraging them back to the labour market.

Employers were complaining of severe labour shortages, she said, while also admitting that they are hesitant to bring in older workers.

"[That] points to both cultural and leadership failings in businesses of all sizes, and that needs to change," she said.

Ms Franke said that older workers could be lured back, if they were offered training and flexible working options.

"But unless those doing the hiring revisit their attitudes, older workers will continue to be excluded, just when the labour market needs them the most," she said.

Wasted talent

Many sectors across the economy are suffering from acute staff shortages. But at the same time around a quarter of people of working age - about 10 million people - don't have jobs. Some are looking for jobs, others are students or carers, or are unable to work due to ill-health.

In his speech on Friday, Mr Hunt said if students were excluded from the figure, there were 6.6 million people who were "economically inactive", describing it as "an enormous and shocking waste of talent and potential".

A significant number of those, more than one million, are people between the age of 50 and 64, who have retired early.

Who are the millions of Britons not working?

Some firms are welcoming the move to encourage retirees back to work. Emma Harvey, a human resources executive from the insurance company, Axa UK, said bringing more over-50s back into work would help provide the "talent and the skills" that Axa needed, as well as ensuring the firm's workforce properly reflected its customer base.

"Given that we've got such a shortage of workers, it's absolutely a space where every business should be looking, and it's certainly one that's a critical one for Axa," she said.

Learning

Shevaun Haviland, director general of the British Chambers of Commerce, said firms repeatedly told her they could not hire the staff they needed.

While improving childcare and other strategies could also help bring younger workers back into the workforce, luring back the over-50s was also "part of the answer" to filling those labour shortages, she told Sky News on Sunday.

Advising companies how they can embrace a multi-generational workforce could also help shift attitudes, Mr O'Reilly believes.

So, while he is still looking for employment, he has also set up the Age Diversity Network, an organisation which works with employers highlighting the benefits of hiring older workers.

"I, and many other older workers, still have a lot to offer," he says.

"I still want to learn, and am more than happy to work at a lower level and give something back based on my experience and to help others gain from that experience."-BBC

LVMH: Luxury giant's sales soar despite China losses

The world's biggest luxury group has reported strong sales driven by the holiday shopping season.

LVMH said they experienced a second straight record year with revenue and profits despite geopolitical tensions and high cost of living.

Sales reached almost $25bn (£19.9), a 9% increase in the final three months of the year.

The company saw strong growth in Europe, US and Japan which made up for losses in China due to Covid lockdowns.

In Asia, LVMH did experience a 20% drop in growth in the first nine months as the world's second largest economy doubled down on its zero-Covid policy.

However, LVMH chairman and chief executive Bernard Arnault said he felt cautiously optimistic about "green shoots" in China.

"We have every reason to be confident, indeed optimistic about China," Mr Arnault said at the group's earnings presentation.

He pointed to their Macau stores as a sign of what could come. "Business is back, the Chinese are buying," he said.

LVMH brands include Tiffany's, Christian Dior, Sephora, Hennessey and Moët.

Its designer label Louis Vuitton did exceptionally well. Its revenue surpassed $21.7bn for the first time. The label recently launched a new collaboration with Japanese contemporary artist Yayoi Kusama, who is known for her art made of colourful dots.

LVMH's earnings are viewed by analysts as a bellwether in the luxury market.

Bain and Company said they see a boost in spending on personal luxury goods overall.

"The personal luxury market is projected to see further growth of at least 3-8% next year, even given a downturn in global economic conditions," according to a report from the consulting company.

Earlier this month, LVMH made changes to its leadership staff. Mr Arnault, one of the world's richest men, appointed his daughter as the head of the fashion house Dior. Delphine Arnault, 47, replaced Pietro Beccari - who took over as chief executive of Louis Vuitton.

All five of Mr Arnault's children hold management positions at brands in the group.-BBC

'Elon Musk has made me embarrassed to drive my Tesla now'

When Anne Marie Squeo received her fiery red Tesla sports utility vehicle in 2020, the 55-year-old marketing and communications professional felt like she had joined a special "club" of people who were doing something to help the environment, while still driving with style.

But last year, as Tesla boss Elon Musk shared right-wing conspiracy theories on Twitter, posted a picture of guns by his bedside, and proposed terms to resolve the war in Ukraine that were adamantly rejected by many of the country's top leaders, Anne Marie's satisfaction gave way to shame.

"It's been very depressing, and sometimes embarrassing to be driving this car around," says Anne Marie, a former journalist who lives in Connecticut and wrote an article about her discomfort. "I wondered if people were making a judgement about me that I wasn't looking for."

Once hailed as the secret to Tesla's success, Elon Musk now appears to be one of its biggest problems, as his steady stream of politically charged social media posts alienates key parts of Tesla's customer base, just as increased competition starts to eat away at the firm's dominance of the electric car market.

The value of Tesla shares plunged by roughly two-thirds last year - the biggest decline since the company went public in 2010 - reflecting the worries, as well as concerns about disruptions to production and the effect of high borrowing costs and a weaker economy on demand.

In December, major investors - many of them long-time allies of Mr Musk - went public with their alarm, accusing him of abandoning Tesla after his $44bn (£36.4bn) takeover of Twitter in October and damaging the car company's brand.

A line chart showing the price of Tesla stock, which peaked at $410 in November 2021, is now $172 per share.

The fact that Mr Musk sold roughly $20bn worth of Tesla shares last year - sales that weighed on the stock and were prompted at least in part by the Twitter purchase - did not help.

"It's cost everybody a tonne of money. Certainly it didn't protect Tesla shareholders," says investor Ross Gerber, who is now seeking a seat on Tesla's board of directors and calling for changes, including starting to spend money on advertising, which Tesla has long prided itself on being able to do without.

Mr Gerber, the head of Gerber Kawasaki Wealth and Investment Management and a self-described friend of Mr Musk, says he remains optimistic about the company's fortunes, and has increased his firm's holdings as the stock has tumbled.

But he says the company needs to have a dedicated chief executive and create its own voice, one distinct from Mr Musk.

"It's very hard to believe now that Elon is a positive advertising force for Tesla," he says.

Mr Musk, who has more than 127 million followers on Twitter, this week rejected suggestions that his unfiltered style on social media was hurting the Tesla brand, saying his mass following "speaks for itself".

But in recent weeks, facing concerns about buyer demand, Tesla announced major price cuts in the US, Europe and China - running as high as 20% on some models in the US.

Analysts expect the move to blunt some of the brand damage, as financial considerations outweigh buyers' moral qualms.

But the move will hurt the firm's profit margins, and for some car purchasers there is no turning back.

Indie Grant, who works in the insurance industry in New Zealand, ruled out a Tesla due to Mr Musk's politics when buying an electric car last year, opting for a Peugeot instead.

"With him being so tied to the brand, buying a Tesla feels very much like a passive but regular announcement of 'I think Elon is great. I love everything he does,'" the 35-year-old says.

"That really wasn't the message we wanted to give and with so many options, taking that out of the running didn't affect the choices too much."

There is little that would prompt a Tesla purchase now, Indie says. "My opinion of Tesla would only change if he weren't associated with it anymore."

Mr Musk has landed in hot water for his social media posts before.

One - about considering taking Tesla private in 2018 - sparked fraud accusations from regulators, which the firm and Mr Musk each paid $20m to settle. He was in court again this week defending the post in a class-action suit brought by shareholders who said they lost money in the share price gyrations that followed its publication.

Another - calling a man involved in the rescue of Thai schoolboys a "pedo guy" - led to a defamation case, which Mr Musk won, after saying he did not think the insult would be taken seriously.

Now, though, Mr Musk isn't just another person tweeting; he is the owner of the platform.

That has raised the prospect of his political views, which he shares with increasing frequency, affecting how Twitter moderates the content on its site - a matter described by many, including Mr Musk, as important to American democracy.

After taking over, Mr Musk moved quickly to remove the ban on former US President Donald Trump, also issuing a tweet that read: "My pronouns are Prosecute/Fauci" - referring to Dr Anthony Fauci, the public face of the US Covid-19 response - causing outrage among liberals, who are the most likely to buy electric cars in the US,Tesla's biggest market.

"This is largely a political story," says Jordan Marlatt, tech analyst at Morning Consult, which tracks public perception of thousands of brands in the US, and has seen a sharp decline in favourability towards Tesla among Democrats since April, when Mr Musk first announced the Twitter deal.

"He's been a lot more outspoken on his personal politics than he has before and that's bleeding over to consumer sentiment."

Mr Marlatt says brands typically recover from damage stemming from politically charged incidents within 90 days.

"What's different for Twitter and for Tesla is that steady drumbeat," he says. "It's every day, almost every hour sometimes."

Anne Marie, who has voted for both Democrats and Republicans, says prior controversies felt like one-off events, but the flood of commentary last year wore her down.

"Elon Musk being a bit of a wild card is not new," she says. "What was different was this level of consistency in doing it every day and the fact that he was really going after social issues with the seeming intent of riling people up."

She says at the moment she can't imagine buying a Tesla the next time she needs a car.

"At the end of the day, there's a lot of variety to choose from - are you going to really align yourself with a company that maybe doesn't represent your values anymore? I wouldn't feel comfortable doing it."-BBC

Jeremy Hunt says significant tax cuts in Budget unlikely

Jeremy Hunt has warned it is "unlikely" that there will be room for any "significant" tax cuts in the Budget.

The chancellor has been under pressure recently from some in his party to cut taxes to stimulate the UK economy.

But Mr Hunt said that a pledge to halve the rate of inflation "is the best tax cut right now".

He admitted the UK was going through "a difficult patch" but insisted the country "can get through it and we can get to the other side".

On Friday, Mr Hunt set out a plan to help lift the UK's economic growth.

After a turbulent autumn, when financial markets pushed up the country's cost of borrowing, Mr Hunt said he was determined to show that the UK was responsible.

That meant "showing the world, showing the markets that we are a responsible nation, that we can pay our way, that we can balance our books", he said.

He added that "it is unlikely that we would have the room for any significant tax cuts" at the Budget in March.

Government borrowing - which is the difference between spending and tax income - rose to a record £27.4bn in December. It was the highest amount for that month since 1993.

Borrowing was driven by the cost of helping households and businesses with rising energy bills. Higher inflation also pushed up interest payments on debt owed by the government.

The rate of price rises - or inflation - has begun to slow, but at 10.5% remains close to a 40-year high.

Prime Minister Rishi Sunak has pledged to halve inflation by the end of the year.

But some economists have said prices will begin to fall back naturally, without government policies, due to commodity prices and shipping costs decreasing towards the end of last year. Energy prices are also expected to ease in the second half of 2023.

Mr Hunt said: "The biggest tax cut that we can give the British people is to halve inflation, that means the value of their weekly shop won't continue to go up, the value of their pay packet won't continue to be eroded and that's what we are focused on."

Four 'Es'

The chancellor also unveiled a plan to grow the UK economy, though it drew a mixed reaction with some business groups criticising a lack of detail.

He said the strategy would focus on four pillars, or "four Es": enterprise, education, employment and everywhere.

He said that while it was not a series of measures or announcements, it would provide "the framework against which individual policies will be assessed and taken forward".

But the Institute of Directors (IoD) suggested Mr Hunt add a fifth E for "empty" after not issuing concrete plans.

IoD chief economist Kitty Ussher said businesses needed "government action to counteract the negative mood", such as continuing the capital investment super-deduction and bringing in tax credits for employers who invest in skill shortage areas.

Mr Hunt said the government planned to achieve growth in multiple sectors across the UK, including digital technology, green industries, life sciences, advanced manufacturing and creative industries.

The TUC said the lack of the mention of public sector pay in the speech was the "elephant in the room".

"Public servants will be deeply worried about the chancellor's warnings of further restraint. We know that is usually code for cuts," said the union's general secretary Paul Nowak.

Craig Beaumont, of the Federation of Small Businesses, said the contents of Mr Hunt's speech had "all the right elements", but warned the "proof will be in the pudding in the years ahead".

Brian Palmer, founder of robotics firm Tharsus in Blyth, Northumberland, said the "themes" that the government was talking about were important, but said firms "need to see the detail".

"There is a lack of a clear long-term strategy. Without that long-term plan, businesses can't get behind it, can't have the confidence that the government's going to follow through with the policies."

Brian, whose company makes high-tech equipment for companies such as Ocado, warned some firms were already holding back on investment because of a lack of confidence.

"The government needs to provide industry with a clear idea of what the playing field is going to look like going forward," he added.

Presentational grey line

Many have interpreted Mr Hunt's speech as an attempt to respond to criticism that the government has no long-term plan for growth.

Carmakers articulated that idea this week. On Thursday, figures from the Society of Motor Manufacturers and Traders (SMMT) showed the number of new cars made in the UK has sunk to its lowest level for 66 years, with the SMMT warning that the UK was lagging behind other countries, particularly on offering state aid to manufacturers.

Make UK, which represents the manufacturing industry, said there had been "some hugely damaging big picture issues caused by the absence of an industrial strategy which are impacting on some of our strategic sectors".

Mr Hunt said he wanted to tackle poor productivity and said the UK's exit from the European Union would encourage risk-taking and changing regulation.

'Cold comfort'

Looking at the wider picture, Mr Hunt said that "declinism about Britain" was wrong and praised what he called "British genius and British hard work".

"Some of the gloom is based on statistics that do not reflect the whole picture," he said.

But Liberal Democrat MP Sarah Olney said: "Jeremy Hunt's speech is cold comfort for families and pensioners facing unbearable price rises."

Labour's shadow chancellor Rachel Reeves said that "13 years of Tory economic failure have left living standards and growth on the floor, crashed our economy, and driven up mortgages and bills".

"The Tories have no plan for now, and no plan for the future," she added.-BBC

Rolls-Royce is a burning platform, claims new boss

The new boss of Rolls-Royce described the engineering giant as a "burning platform" and said the company's performance is "unsustainable".

Tufan Erginbilgic, a former executive at oil giant BP, told staff that they faced a "last chance" to change.

"Every investment we make, we destroy value," he told employees, according to the Financial Times.

Rolls-Royce told the BBC Mr Erginbilgic had been "honest about our financial underperformance" compared to others.

Rolls-Royce is one of the UK's flagship companies. Its engines and systems are on planes such as the Airbus A350 and Boeing 787.

It was one of many firms hit hard by the Covid pandemic when air travel was grounded for months and it axed 9,000 jobs.

But in a broadcast to staff, Mr Erginbilgic said Rolls-Royce had "not been performing for a long, long time".

The ex-oil executive added that the company was a "burning platform", meaning it is imperative to get out of the situation it finds itself in.

"It has nothing to do with Covid, let's be very clear. Covid created a crisis, but the issue in hand has nothing to do with it," Mr Erginbilgic said. "Given everything I know talking to investors, this is our last chance."

Mr Erginbilgic took over as chief executive of Rolls-Royce from Warren East, who led the firm for eight years, earlier this month.

He is charged with significantly improving the performance of the company, which analysts have said is often less profitable than US rival General Electric in the aircraft sector.

Mr East had said in 2021 that company was "set it on track for growth in the future" and that the worst times were behind, after huge losses of £4bn in 2020. led to thousands of job cuts.

The new boss stressed to staff he was convinced he could improve the company, but warned employees needed to "think differently, act differently, make a difference so this business corrects itself and we don't have much time".

A spokesman for Rolls-Royce said Mr Erginbilgic "laid out his priorities for all of us and stressed the need for everyone within the business to work together in order for Rolls-Royce to succeed".

Some analysts believe Mr Erginbilgic has a tough task ahead.

"The challenge is that there may not be easy solutions," said George Zhao, an analyst at Bernstein.

"Many rounds of restructuring and asset sales were already undertaken under prior chief executive Warren East, putting to question just how much more can be implemented."-BBC

Hemp makes a comeback in the construction industry

Weary of his life as a computer engineer, in 2010 Elad Kaspin packed his bags and travelled the world.

Mr Kaspin wanted a break from Israel, describing life in the country as complicated. "I knew I didn't want to live there, in spite of having a good life with a good salary," he says.

After two years of travelling, he arrived in Colos, a village in southern Portugal, between the towns of Odemira and Ourique. He liked it so much he decided to stay.

He was not the only one. In recent years the region has seen a wave of migrants, attracted by the dramatic, vast and empty plains, a laidback way of life, good weather, and cheap property.

But that popularity was not generating good, stable jobs.

So, with the help of childhood friend Palestinian Omer ben Zvi, Mr Kaspin decided to start a company, Cânhamor.

Their idea was to take advantage of Portugal's relaxation of laws governing the cultivation of hemp, part of the cannabis family of plants.

With official permits, the cultivation of cannabis and hemp has been permitted since 2018.

The laws have been refined since then, but with authorisation from the General Directorate of Food and Veterinary Affairs, farmers can grow hemp as long as there is oversight from regulators.

It marks a revival for hemp in Portugal. It was an essential raw material for the nation's maritime expansion, which began in the 15th Century, when it was used to make cords, ropes and sails.

Hemp fibre was prized for its durability, a quality which has caught the attention of today's construction industry.

Not only is it tough, but hemp also has the potential to make big savings in carbon dioxide emissions.

The plant traps carbon dioxide when cultivated and can, when made into blocks, replace concrete, which is a carbon-intensive product.

According to a European Commission report, the carbon sequestering properties of hemp are remarkable.

In just five months one hectare (2.5 acres) of hemp can trap between 9 and 15 tonnes of carbon dioxide.

Mr Kaspin wanted to exploit those properties by setting up his own business making hemp construction blocks.

With an initial investment of €1m (£880,000; $1m), Cânhamor was formed at the beginning of 2021, and production began a few months later.

The blocks are made of so-called hempcrete, a mix of hemp plant parts, water and limestone powder.

According to Mr Kaspin, the blocks have several advantages over traditional building materials.

As well as being much less carbon intensive to make, he says hemp blocks are better at insulating from heat and sound than brick and concrete.

He also says that they are very resistant to fire.

In 2019 researchers in Australia conducted tests on hemp walls, including simulating a bush fire, and found the material very resistant to fire damage.

However, hemp blocks have to compete with concrete which is cheaper, stronger and well known to builders.

The cost of hemp blocks also reflects the cost of growing hemp which includes expensive inputs like fertiliser.

In the early days, Mr Kaspin struggled to convert customers to hemp blocks.

"The construction sector is a very conservative sector with almost non-existent changes. Many architects and builders do what they have always done. It is not easy to introduce new things," he says.

But after several trials, they found some customers and have been building up the business ever since.

Currently Cânhamor produces between 4,000 and 10,000 blocks every month, enough to build about three houses.

Demand is strong and the company has a new factory planned, which should produce about 120,000 blocks a month.

So the next problem is sourcing enough hemp to feed the new factory.

At the moment Cânhamor buys hemp from abroad which pushes up the cost of its blocks. The plan is to persuade more local farmers to cultivate the plant.

"There was no factory because there was no cultivation, and there was no cultivation because there was no factory. We have the opportunity and the privilege to break this cycle," Mr Kaspin says.

"With local materials, and with larger capacity, production costs will drop significantly. In 2024 we will be able to offer our blocks at much lower prices," he predicts. "Even cheaper than concrete."

To produce enough hemp fibre, he estimates that 1,000 hectares of hemp will need to be cultivated.

"We are in talks with several farmers. We offered to buy their whole crop. And we know that there are people who want to buy not only blocks, but every hemp by-product that we will make in the new factory."

They will start tests in January with a handful of experienced local farmers, planting hemp in a cultivation area of up to 10 hectares, "so they can try and see," says Mr Kaspin.

He expects to be able to tap up to 150 hectares of local hemp production by the end of this year. For 2024, the target is 500 hectares. But it will depend on Alentejo's farmers' willingness to change tack towards the leafy plant.

Cânhamor will have to compete with larger European companies such as Belgium's Isohemp.

Its factory, located in central Belgium, has a production capacity of five million blocks per year, or enough to build around two houses a day.

Unlike Cânhamor, it can source most of the hemp it needs locally, from the north of France and the south of the Netherlands.

But the two firms do share one similar challenge.

"The construction sector is indeed a very traditional market and habits take time to change. The current obstacles are the lack of knowledge of the product," says Charlotte De Bellefroid from Isohemp.

Back in southern Portugal, Cânhamor is set to become one of the biggest local employers, raising its number of workers to 30, up from the current six who work on the production line.

Marcelo Guerreiro, Ourique's Mayor, tells the BBC: "We weren't acquainted with hemp's potential but we dealt with the proposal with an open mind."

The local council gave Cânhamor the land it needs for the new factory. Cânhamor has raised the money needed to build the factory, estimated at €5m.

"Thirty jobs is very significant for Ourique and Cânhamor will become one of the biggest employers of the town," the mayor says.

"We are satisfied with the recent evolution concerning cannabis in Portugal, not only in legislative terms but in terms of society acceptance," he adds.-BBC

Nigeria: Airlines Struggle for Survival Under Current Foreign Exchange Rate

United Nigeria Airline (UNA) has disclosed that local airline operators can no longer survive at the regular commercial foreign exchange rate in the country.

Speaking in Abuja, over the weekend, at a retreat organised by the management of United Nigeria Airlines to mark its two- year operation in the aviation industry, the airline's chairman, Prof. Obiora Okonkwo, however, demanded special funding window for the aviation sector to thrive.

According to him, providing special funding window for operators in the aviation sector became necessary given its essential duty nature and its growing contribution to the nation's Gross Domestic Product (GDP).

He said, since other sector of the economy, such as, agriculture enjoyed such privileges, it should also be extended to the aviation sector.

"We are just asking for a special funding window that should be of a single digit and that is easily accessible, not necessarily on paper but accessible. We still believe that this government has done a lot for the aviation industry, though, more needs to be done.

"We think the bigger legacy that this government will leave for the aviation industry is to ensure that the operators survive. No operator should go under, rather let there be new operators in the business of aviation," Okonkwo said.

According to him, indigenous airline operators have been very patriotic and have contributed immensely to the growth of the nation's GDP.

"We are very patriotic Nigerians, who have contributed so much to the GDP of the nation, created employment.

sector is a sector that I advise this government and incoming government to take very seriously because, if properly harnessed, it will be a great source of foreign exchange for the country, especially, if the local operators should be empowered. This industry, we believe remains a critical and essential industry and should be treated as such.

"This industry can not survive further at the regular commercial rates. We know that there are previledges given to sectors like agriculture and others. Aviation should be considered also.

"If this is done, I have no doubt that the operators will be stronger and further render better services to the people," he stressed.

He emphasised further that there was need for government to consider a special funding for the sector operators.

"Government should consider a window of special Funds at a single unit loan for the operators because it is a win -win situation for the companies and the government. This is one sector that pays the government as they receive their own because, every ticket that is issued all agencies of government have their own.

"It creates high level, high powered employment, high skilled workers that pay good income tax to the government and so, this is one of the sectors that should be taken seriously and the operators are happy to work out all the new arrangement with the government.

"So, you can imagine a situation where you go to the bank today and access naira loan at the rate of 25 to 30 per cent and then you go back to the foreign exchange window and buy it at the rate of N750, you just basically operate for notting," he said.

Speaking earlier, the chief operating officer of the airline, Osita Okonkwo, said the company's strategy would be to continue on its growth part.

He said, despite challenges, the company survived, saying it was grateful to God, the travelling public and the regulators that have kept fate with the company.

"We have started with A 320, which is already flying. More will join the fleet. We are expanding our destinations, we have the objective of having a foot print in every airport in Nigeria. We are about to start Jos and Benin and other towns in the North- East and North-West will follow.

"We are going outside Nigeria. We are moving regionally, we are going through the regulatory process now, and we have gotten our airline carriers permit. We have got designations to a number of countries, which will be announced soon," he said.

-Leadership.

Nigeria: Money Market - Cutting Dollar Spending With Afrigo, Nigeria's Domestic Card

Last week, the Central Bank of Nigeria(CBN), in collaboration with the Nigeria Inter Bank Settlement System (NIBSS) unveiled Afrigo Pay, Nigeria's own domestic card, putting a definitive end to the payment of dollars as charges on payment cards in the country.

With the domestic card which is meant to serve as both a credit card and debit card, among other functions, Nigeria follows the example of countries such as China, Turkey and Brazil which have harnessed the transformative benefits for their respective payments and financial systems, particularly, for the unbanked.

A card scheme is a central payment network that uses credit and debit cards to process payments. Its primary role is to manage payment transactions, including operations and clearing.

Visa and MasterCard, two of the largest global brands, offer credit and debit cards that have become synonymous with a payment type that is accepted around the world; these two huge brands are known as card schemes. Both Visa and Mastercard alongside Verve are the current card schemes that are used in Nigeria.

Card schemes have four players, the cardholder, the card issuer, the merchant and the acquirer, all of which together make up an open-loop system that allows consumers to seamlessly purchase items or services from merchants by letting the banks do all the work on their behalf.

Asides these four primary players in the card scheme, there are also intermediaries that facilitate the transaction, including the payment gateway and the payment processor.

Speaking at the virtual unveiling of Afrigo, the governor of the Central Bank of Nigeria(CBN), Godwin Emefiele had noted that the National domestic card scheme, which will be accessible to all Nigerians, will help address the financial inclusion gap in the country and also address the country's local peculiarities.

While the foreign cards remain convenient, especially, for international transactions, he explained that the domestic cards are expected to better serve the unbanked market and increase competition within the payment landscape.

Emefiele stated that, although the penetration of card payments in Nigeria has grown tremendously over the years, "many Nigerians are still excluded. The challenges that have limited the inclusion of Nigerians include the high cost of card services as a result of foreign exchange requirements of international card schemes and the fact that existing card products do not address local peculiarities of the Nigerian market.

"This effort is not a quest to prevent international service providers from continuing to provide services in Nigeria. Rather, it is aimed at providing more options for domestic consumers whilst also promoting the delivery of services in a more innovative, cost effective and competitive manner."

According to CBN, the domestic card is expected to have the capacity to reduce Nigeria's reliance on foreign-owned financial services companies.

The CBN governor, noted that "at this time of of foreign exchange challenges that persists globally it is important that that we have this card to to ensure that all card transactions, online transactions where you're using cards will now effectively immediately begin to go on the Nigerian National Domestic system.

"At some point in the next few weeks, I'm sure that the CBN will come up with the cut off which will mean that all domestic transaction all domestic transactions that are going to be conducted in Nigeria will have to be through the Nigerian domestic cards.

"The charges on the foreign cards are in dollars, we will no longer pay dollars for those cards for the charges on those cards. We would only pay dollars for charges for transactions that are done with our domestic card or foreign cards outside Nigeria. NIBBS and the Central Bank of Nigeria and the Nigerian banks will work together to see to how to segregate those transactions to ensure that we would only make charges or fees for international transactions that are conducted on both these cards or the Visa or MasterCard as they are today."

To the CBN deputy governor, Financial System Stability(FSS), Aisha Ahmad, who also serves as the Chair of the board of NIBSS, noted that, with the launch of Afrigopay, "a lot of opportunities are being created within the ecosystem, and there is more opportunities that will be brought back by this Afrigo card.

"So leveraging its industry position, NIBBS and with a strong regulatory backing of the Central Bank of Nigeria, Afrigo card has been has been brought up. I think it is important to also explain what the corporate structure for delivering this card looks like.

"The company -Afrigopay Financial Services- is a domestic Card Scheme. Duly licenced by the Central Bank of Nigeria is an affiliate of NIBBS but it is constructed as a distinct legal entity, with its world class management team to deploy and operate the domestic scheme for the benefit of the industry."

The CBN governor had noted that the apex bank remains "committed to a robust, efficient and safe national payments system and welcomes innovation from both domestic firms and foreign investors. The Nigerian market is vast, and the current participants have done so much in the last twelve years to transform the ecosystem. Yet there is much ground to be covered as millions of Nigerians are yet without payments cards to consummate transactions.

"I am convinced that the National Domestic Card Scheme will make this a reality in the coming months. We can no longer neglect the vast majority of the Nigerians whose daily payments needs are micropayments. We need to capture them in national statistics to further understand their transaction dynamics and properly target interventions in that sector of the economy."

-Leadership.

Nigeria: Blue Line Rail Will Generate Its Own Electricity

Following the commissioning of the Lagos Blue Line rail by President Muhammadu Buhari, the Lagos State Commissioner for information, Gbenga Omotosho, has said the blue lines will generate its own electricity to power its rail transportation system.

He noted that it was the first of its kind in Africa, which has its own dedicated Independent Power Plant (IPP) with four power sources thereby eliminating the fear of power outage while on the train.

He however assured Nigerians that the cost to use this mode of transportation isn't going to be exorbitant as transportation is not something that the government relies on to make huge revenue.

"It's the comfort of Lagosians the government is looking at and not how much to charge or anything that will make anybody to complain," he said.

Omotosho who was a guest on the Morning show of ARISE NEWS Channel, the broadcast arm of THISDAY Newspapers, commended the Lagos State Governor, Babajide Sanwo-Olu for bringing the project to life.

He also clarified that the commissioning which was done prior to this was that of the completion of infrastructure like the tracks and signalisation and not the services of the blue line as speculated.

He said: "For us in Lagos, it is a thing of joy, and we are not talking about whether this project was dropped at some time or not.

"This one that we are talking about is quite different from the one you are talking about, the metro line. This one was conceptualised by the Asiwaju Bola Ahmed Tinubu's administration and then successive administrations after that, they have been following up until Bababjide Sanwo-Olu promised and resolved that he was going to complete it and thank God, he has completed it now."

Giving information as to when it will be open to the public officially, the commissioner said they were still looking to take journalists, professional associations, engineering groups on board for them to test-run it before Lagosian will have full access to it.

Fielding questions on when the Red Line rail will be completed, Omotosho said it would be completed and inaugurated in the first quarter of the year.

He, however, said there had been delays in building all the overpasses because many are being built at the same time and the weather didn't help which caused the contractors to be delayed.

The commissioner further warned Lagosians to desist from displaying all sorts like clothes for sale on the railway track, as it has been fenced off and there are notices all over the place alerting people of electrification which could be fatal.

Also speaking about the John Randle Centre for yoruba culture and history, he said the present administration chose to use the place to promote tourism in the state as well as build an urban regeneration program.

According to him, Onikan where the facility is situated, is also the first of its kind in Lagos.

He explained further that there is a place to learn about the yoruba culture, its impact, and everything about the yoruba history.

"For us in Lagos, it is an edifice that we are proud of because it's symbolic of our attempt to make our young ones realise that history is very important, the yoruba culture is very rich and it's something to sell to the world.

-This Day.

Nigeria: CBN Extends Deadline for Use of Old Naira Notes

The CBN governor, who spoke to journalists Sunday morning, said he had the approval of President Muhammadu Buhari for the extension.

Central Bank of Nigeria (CBN) has announced a 10-day extension of the deadline for the use of old naira notes across Nigeria.

The CBN governor, who spoke to journalists Sunday morning, said he had the approval of President Muhammadu Buhari for the extension.

The new deadline is now 10 February instead of the former 31 January deadline, he said.

Mr Emefiele spoke in Daura, Katsina State, after a meeting with the president who is in his home state for official duties.

Mr Emefiele said Nigerians, who are yet to change their naira notes from the old to new ones, now have an opportunity to do so.

He said people must utilise the opportunity because the deadline will not be extended again.

PREMIUM TIMES reported how the CBN last October introduced redesigned 200, 500 and 1000 naira notes and gave a deadline of 31st January for the use of the old notes.

However, the new notes have been scarce, thus leading to calls for an extension.

Mr Emefiele did not elaborate on what the central bank was doing to resolve the scarcity of the new notes.

Background

Last October, the apex bank announced its decision to redesign the notes, adding that members of the public were hoarding banknotes, with statistics showing that over 85 per cent of the currency in circulation is outside the vaults of commercial banks.

On Sunday, Mr Emefiele assured that the currency has yielded significant results.

"Available data at the bank showed that in 2015, currency-in-circulation was only N1.4 trillion. As of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the banking Industry and N2.7 trillion held permanently in people's homes," he said.

He said since the commencement of the programme, the CBN has collected about N1.9 trillion, "leaving us with about N900 billion (N500b + N1.9trillion).

"We are happy that so far, the exercise has achieved a success rate of over 75 per cent of the N2.7 trillion held outside the banking system.

According to him, Nigerians in the rural areas, villages, the aged and the vulnerable have had the opportunity to swap their old notes, leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitisation team exercise.

"Aside from those holding illicit, stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped the opportunity to deposit their legitimately trapped monies at the CBN for exchange."

-Premium Times.

Kenya: How Entrepreneur Entrenched Cycling in Juja Through Bike Hiring

Nairobi — If you have traveled to various parts of the country either in urban or rural areas, you have most likely spotted a black mamba bicycle, which is the typical mode of transport for most households.

But with the rapid change in the transport industry, the use of bicycles has been overtaken by events with motorized transport.

Nevertheless, the cycling culture has permeated regions in the country and in some areas, becoming a 'bikes for hire' business venture.

In the outskirts of Juja Town, we meet with David Michael, a youth who turned his hobby of cycling to a business hub.

Michael for years used to cycle from Juja to Thika which is 13 kilometers apart almost daily and over time it became his mode of transport.

In 2016, after a brainstorm with his cycling friends on how to survive the harsh economic times and get a source of livelihood, they decided to use what was on their hands to make a living.

"We started first by cycling just for fun then we saw it as a potential. We can do something like hire bikes and earn something. That's when we started with few," Michael stated.

"We started with three bicycles then the business started booming," he said.

Michael and his friends started a business called 'Saikle Kenya'. In Juja town it was the first of its kind as it was the sole business, hiring bicycles hourly to the residents.

In the first year, it was an extreme boom with most of the customers being Jomo Kenyatta University of Agriculture and Technology (JKUART) Students who walk for miles going to class and commuting within the area.

But within a year, Michael started facing competition.

"In every business, when you start a unique business of course you will get copycats who became our competitors. But the business is still fine and sustainable as it has enabled me to open more business," he told Capital FM News.

In Kenya, bicycles are seen as an inferior mode of transport chosen by the poor.

Most people prefer driving vehicles to commute from one place to the other be it with personal vehicles, matatus or tuktuks.

But over time bicycles have become a viable mode of transport for students from JKUAT to commute to classes.

With time the business has inculcated the art of cycling in Juja town.

"Someone might come and hire a bicycle then he or she might feel it is too costly to keep hiring the bicycle. Maybe in a month it might cost him Sh3,000 and therefore he or she decides to buy a bike. That's how the culture has been inculcated," Michael stated.

As with any other business, challenges are rife and Michael tells us hiring bicycles is a risk as sometimes they are stolen.

"The biggest challenge is theft; someone can come hire the bike and still won't return the bike even if we have all his details. Especially during the time when all students are closing the school. What we do is to be stricter," the Saikle Kenya Chief Executive Officer states.

When learning institutions close or students are having exams there is always a dip in revenues. It's more seasonal depending on the school calendar.

"This business is just like an entertainment site, when students are having exams we don't have many customers until when they are back. When they go home, we just go home," Michael pointed out.

Saikle Kenya involves hiring imported bikes which have been used and disposed of from the USA and United Kingdom; he repairs some of them and gets them back to business.

"If these Ex-UK bicycles could be cheaper than how we purchase them,then the business will be better,"Michael says.

He advocates for cycling as an alternative mode of transport saying that if you want to survive the pressure that comes with urban living and hard economic times, cycle a little more.

"Look like a country like the UK even the MPs are riding to Parliament. In Kenya we only focus on vehicles, if you have a vehicle you are one of the richest people but bike is the best to keep fit," he states.

"When I feel stressed I just get my personal bike and ride all the way to Thika. Bicycles help us with mental health. It is rare to find a cyclist with mental health issues. Its really hard!" Michael exclaims.

-Capital FM.

Invest Wisely!

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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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