Major International Business Headlines Brief::: 15 June 2023

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com         <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 15 June 2023 

 


 

 


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

 


 

 


 

ü  Kenya: Connectivity Vital for Creative Economy - President Ruto

ü  Kenya: Revised Finance Bill Still to Hurt Kenyans' Pockets More

ü  South Africa: R83 Million and Three and a Half Years Later Only One RDP House to Show for It

ü  Uganda: Budget 2023/24 - Breakdown of Key Highlights

ü  South Africa: Illegal Connections to Blame for Leaving Learners in the Dark, Says Eskom

ü  Nigeria: Central Bank Directs Banks to Trade Forex At Any Rate

ü  Nigeria's Telecom Access Gaps Drop By 53%

ü  Ghana: SIM Card Re-Registration 'Wahala'

ü  Kenya: Traders at Mutindwa Market Counting Losses After Fire Razes Structures

ü  Ghana: Ecobank Poised for Sustainable Growth Despite Challenges - Board Chairman

ü  Uganda: Smart Cities Should Embrace Women Street Vendors

ü  Nigeria Grants Licences for New Oil Export Terminals

ü  US holds interest rates steady in first since 2022

ü  Beyoncé blamed for inflation surprise in Sweden

 


 

 


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

Kenya: Connectivity Vital for Creative Economy - President Ruto

President William Ruto has said the Government is committed to enhance the digital superhighway to create opportunities for content creators to make a living.

 

The President said the government is looking to set up 25,000 free WiFi hosptots around the country to improve Internet access and give young people access to the digital superhighway.

 

The President revealed Google is supporting the set up of the hosptots.

 

"I appreciate Google's support in enhancing the digital superhighway and creative economy pillar of our transformational agenda. In particular, for your support for our plan to provide free wi-fi hotspots across the country."

 

The President was speaking during the closing ceremony of YoutubeBlackVoices, a fund designed to grow the presence and talents of black content creators across the world, including Kenya.

 

The Head of State also noted that the number of YouTube channels had grown exponentially.

 

"The number of YouTube channels in Kenya with over 1 millions views has grown by 110 pet cent in the last year proving our capacity for creative content generation is enough to generate livelihoods and become an economic sector."

 

Over 90 goverment institutions including TVETs, hospitals and law courts will also be connected to the Internet imminently, he added. - Presidential Communication Service

 

-Capital FM.

 

 

 

Kenya: Revised Finance Bill Still to Hurt Kenyans' Pockets More

The government has moved to salvage the petroleum business sector at the expense of Kenyans by increasing the VAT on petroleum from 8 percent to 16 percent.

 

Kenyans will now be forced to adopt green energy or bear with the increased cost of living as the government maintained that the negative impact of retaining VAT at 8 percent outweighs the positives.

 

This is despite the public outcry by different stakeholders that the increased percentage of VAT on petroleum products will raise the cost of living.

 

"The government stands to lose as petroleum businesses become perpetual creditors which then impact quality of service delivery by the government to the citizenry," said Finance Committee Chair Kimani Kuria.

 

"Dealers incur VAT at 16 percent but when they sell it it's at 8 percent. This means there's an 8 percent difference.

 

Given the increase in the VAT on petroleum products, Kuria said they have proposed incentives to sectors that offer alternatives to fuel consumption by zero-rating bio fuel energy, Liquefied Petroleum Gas(LPG), and clean cooking stoves.

 

 

"We have had interest conservation with players of clean energy which include Koko Fuel which are able to produce bio ethanol for cooking which was costing Sh 10 bob for a family to prepare a meal," said the Molo MP.

 

The proposed VAT increase comes at a time when global oil prices have been soaring, exerting additional pressure on consumers' wallets.

 

The implementation of a VAT hike will further burden businesses and individuals already struggling to recover from the shocks of a pandemic-induced economic downturn.

 

Mobile Money Transfer

 

It's a reprieve for Kenyans as the proposal to increase tax on mobile money transfers from 12 percent to 15 percent has been shelved.

 

 

Instead, the committee has resorted to retaining it at 12 percent as telco operators had argued that the move would have drawn back efforts of financial inclusion for low-income earners through mobile money.

 

The additional costs will likely be passed on to customers, many of whom are unbanked and rely on the service for essential daily payments.

 

"We have reduced the raise of tax on mobile money transfer from 15 percent to 12 percent," Kimani stated.

 

Digital Content Tax

 

The income earned through digital content monetization will be subjected to a 5 percent withholding tax, which matches with the percentage rate for other professional services.

 

The bill defines content creators as any individual that is offering "entertainment, social, literal, artistic, educational or any other material electronically," through websites, and social media platforms like Facebook, Twitter, or Instagram, in partnership with brands or retailers.

 

Content creators had faulted the William Ruto-led government's plan to increase the tax to 15 percent saying it will stifle the creative's industry.

 

"We observed that this was unfair because all the other professional fees, legal fees, accounting and insurance fees is charged at 5 percent. We said we are going to treat digital content creators just like all the other creators," Kuria stated.

 

Export Levy

 

In the revised Finance Bill, 2023, the Finance Committee has proposed to impose additional levies on imported products such as steel, paper, plastics, and paints among other goods.

 

The proposed radical tax measures aimed at promoting local businesses, protecting jobs, and boosting manufacturing by zero-rating raw material components for manufacturing.

 

"We have zero rated all raw materials components that are used in assembling mobile phones. We are hoping that by them transferring incentives to Kenyans we are not just going to make our own mobile phones but we are going to export them,"Kimani noted.

 

To promote the manufacturing sector, the revised Bill proposes to provide for export levy, imported into the country for home use to promote local production at 17.5 percent.

 

"We have introduced export levy at 17.5 percent ,so those who import cement and bars from Kenya can export but it will be at a cost.We are going to make local products cheaper,"the Molo MP said.

 

-Capital FM.

 

 

 

 

South Africa: R83 Million and Three and a Half Years Later Only One RDP House to Show for It

The Namibia Stop 8 Housing Project in eThekwini started in 2019 but to date only one RDP house has been completed.

Hundreds of families relocated for the project have been living in cramped conditions in a poorly serviced transit camp for three and half years.

The municipality blames bureaucratic delays, the Covid pandemic, the July 2021 unrest, and the KZN floods for the delays.

The Namibia Stop 8 Housing Project in Inanda, eThekwini, started in 2019, but to date only one RDP house has been completed.

 

 

Residents say the construction company was on site from 2019 to 2020, but stopped because of the Covid pandemic.

 

According to eThekwini Municipality spokesperson Lindiwe Khuzwayo, the development - located about 30km from Durban centre - comprises 500 serviced sites and 343 new housing units. She said R83-million had been spent so far.

 

The money had been spent on roadworks, stormwater, sewers, platforms and foundations, water reticulation, and some top structures.

 

At the council meeting on 31 May it was revealed that R43-million is needed to complete the project, according to the Democratic Alliance human settlements spokesperson and member of the provincial legislature, Marlaine Nair.

 

She says no more money should be allocated without "a comprehensive report that addresses the project's progress, challenges, and any potential irregularities".

 

 

When we visited the area last week we found one road tarred for less than 500 metres, and the other roads gravel. The stormwater system was incomplete. Some sewer trenches have been dug. A total of 13 houses were at foundation level. One house was complete.

 

eThekwini Councillor Zamani Khuzwayo (DA) said the project was 51% complete and the new finishing deadline was December 2024.

 

Khuzwayo blamed delays on bureaucracy and obtaining the necessary approvals, the relocation of families to temporary housing units, Covid, the 2021 July unrest, and the KZN floods.

 

Families who were relocated in November 2019 said they were told the project would take 18 months. Three and half years later, they are still sitting in transit camps.

 

Community leader Thami Ngidi said residents had been sceptical from the outset. He said out of 500 families, only 311 agreed to be moved.

 

"Unfortunately the officials managed to convince some of us. We ended up agreeing to be moved," said Ngidi.

 

The informal settlement of Namibia Stop 8 was established in 1960. Residents, who refused to be relocated, live in homes made of reused bricks and corrugated iron. Some residents built pit toilets for themselves.

 

Several hundred families who refused to move will have to be relocated to finish the project.

 

Resident Buzani Mkhize said, "I told them that I want to be closer when they build my house so that immediately when they finish I move in. We know houses are being [illegally] sold in other areas."

 

Tsepo Magubane said when his parents were relocated, his backyard room was demolished.

 

"I refused to go live in a one-room house with my parents and siblings. Our house is in the first row. We were told it will be done within six months but that never happened."

 

Conditions at the transit camp are poor. Each family has to share a single room and there is a lack of toilets. People have to carry five and ten-litre buckets to the toilets to flush them. Water is currently being delivered by truck. Residents we spoke to said the water truck can be absent for weeks.

 

Mayor Mxolisi Kaunda said the municipality is busy with the repairs to vandalised pumps and apologised for the water situation.

 

-GroundUp.

 

 

 

Uganda: Budget 2023/24 - Breakdown of Key Highlights

Ahead of the reading of the national budget by the minister of Finance on June 15, 2023, as required by the Public Finance Management Act 2015, Section 13(3); the minister, on behalf of the president, is obligated to present the proposed annual budget to parliament by the April 1 each year.

 

This year, the rite was fulfilled on May 18, when the parliament of Uganda considered and approved the annual budget for the financial year 2023/24. Out of sheer serendipity, this presentation of the budget to parliament brought to the surface the actual state of the economy of Uganda.

 

 

The glaring highlights of the Budget Committee report on the annual budget estimates for financial year 2023-24 are: The budget for FY 2023/24 has been projected at 52.74 trillion shillings [$13.9 billion], an increase of 4.606 trillion shillings [$1.2 billion] from the previous financial year, which was 48.134 trillion shillings [$12.8 billion].

 

This budget is going to be financed by domestic revenues, budget support [loans, grants], domestic borrowing, interest payments, local government revenue, and project support [external].

 

In the presentation of this report by the budget committee in parliament, it came to light that Uganda's nominal debt to GDP fell from 53.1 percent for FY 2022/23 to 52.4 percent for FY 2023/24, a drop of 0.7 percent. This dip in debt in relation to GDP is a result of economic growth: rise in GDP, which can be attributed to inflation.

 

Inflation swells GDP as more money in circulation translates to more spending, which then triggers demand that ends in more production, which implies growth. In Uganda, inflation as measured by the Consumer Price Index for the 12 months to August 2022 was 9.0 percent (Uganda Bureau of Statistics).

 

 

Globally, inflation reached a 27-year high of 9.6 percent by October 2022. This hike in prices, had a ripple effect on the GDP, dwarfing the public debt. Therefore, the drop in debt as a ratio of GDP is in no way a result of increased productivity; rather, it's a butterfly effect of inflation.

 

Explicitly, the report reveals that Uganda's public debt increased from $20.98 billion [78.7 trillion shillings] to $21.74 billion [80.7 trillion shillings] in the first half of FY 2022/23, and interest payments rose by 1.42 trillion shillings [$375.8 million] to 6.112 trillion shillings [$1.6 billion] in 2023/24 from 4.69 trillion shillings [$1.23 billion] in FY 2022/23.

 

Out of this stock, 47.7 trillion shillings [$12.85 billion] is external debt, while 33 trillion shillings [$8.89 billion] is domestic debt. In short, Uganda's public debt has increased by $760 million [2.8 trillion shillings] in the previous financial year to date.

 

 

The money approved to service debt obligations for FY 2022/23 amounted to 15 trillion shillings [$3.9 billion] by the end of December 2022. Of that, 6.5 trillion shillings [$1.7 billion] has been spent thus far. For the financial year 2023/24, a total of 17.1 trillion shillings [$4.5 billion] has been proposed to service the country's debt, an increase of 2.1 trillion shillings [$553.7 million] from the previous financial year.

 

This clearly implies that, as a country, Uganda is borrowing more, and the money it spends on servicing its debt goes up each year because the national risk of defaulting is high.

 

During the first half of FY 2022/23, revenue from exports amounted to $2.2 billion [8.4 trillion shillings], an improvement of 24.2 percent from $1.7 billion [6.8 trillion shillings] recorded in the first half of FY 2021/22, mainly due to the resumption of gold exports.

 

Even so, the first half of FY 2022/23 raked in merchandise worth $4,095.0 million [15.5 trillion shillings] in imports, which is 23.1 percent higher than what was shipped in the first half of FY 2021/22.

 

The document revealed that the twelve months leading to November 2022 saw a widening deficit in the BoU's current account to $3,968.6 million [15 trillion shillings]. As a result, the overall balance of payments deficit was $676.5 million [2.5 trillion shillings].

 

A current account deficit indicates that a country is importing more than it is exporting. It shows that Uganda is spending beyond its means. A deficit of the current account will depreciate the shilling, making imports expensive and inadvertently causing inflation and a drop in incomes.

 

What's more, the current account deficit will lead to the raising of interest rates by the BoU to get money to fill the gap caused by the deficit. A rise in interest rates leads to expensive loans, and less currency in circulation. All in all, current account deficits reflect low productivity and low investment in an economy.

 

The budget committee report disclosed that Uganda's international reserves dropped by 2.9 trillion shillings [$775.9 million] from $4,346.0 million [16.3 trillion shillings] at the end of November 2021 to $3,570.1 million [13.4 trillion shillings] in November 2022.

 

The outcome of this dip is that as the reserves reduce, so does the value of the shilling, implying that BoU's ability to back up the shilling in case it crashes is stretched thin. It also slurs the image of Uganda internationally, as trading partners can't be sure their payments will be honoured; this defers foreign trade. Diminishing reserves play a key role in determining Uganda's unfavorable credit rating.

 

The report also revealed a deficit of 94.8 billion shillings [-$25 million] in cumulative revenue collected for the half year FY 2022/23, and an international trade tax deficit of 114.04 billion shillings [$30.3 million] during the first half of FY 2022/23. Tax revenue as a percentage of GDP is 12.90 percent, as attested by the National Budget Framework Paper 2022-23, which is below the World Bank's advised minimum limit of 15 percent.

 

A low tax revenue-to-GDP ratio means that a country doesn't collect enough resources to spend on improving its infrastructure, health, and education sectors.

 

In similar fashion, deficits in the BoU's current account and in revenues collected, together with a slump in international reserves; an economic growth exaggerated by inflation, and an increasing national debt/interest payments, spell dark times ahead for the economy of Uganda.

 

On a brighter note, the report revealed a 6.03 billion shilling [$1.5 million] surplus after the reopening of the economy in the tourism/hotel industries, existing side by side with a surplus of 1.36 billion shillings [$358,662] in real estate. Seeing as this year's proposed estimates for the national budget place external financing at 8.26 trillion shillings [$2.1 billion].

 

And an additional 2.78 trillion [$734.8 million] in grants and loans, which make up 21 percent of the proposed budget, that's directly under the control of aggrieved external players/ donors who have been raffled by the recent signing of the anti- homosexuality bill by President Museveni, even threatening sanctions and other penalties.

 

It is my prognosis that it's going to be a long and hot financial year, and climate change has nothing to do with it!

 

-Observer.

 

 

 

South Africa: Illegal Connections to Blame for Leaving Learners in the Dark, Says Eskom

Staff of Bloekombos High School make photocopies at neighbouring schools for exams

 

Learners and staff at Bloekombos High School have been struggling without proper electricity for about three weeks now.

Eskom says the problem is ultimately caused by the illegal connections made by the shack dwellers who live close to the school.

The school uses a generator but it costs R1,000 to refill per day.

Teachers are working in dark classrooms, learners without internet access at home struggle with assignments, and staff have to make photocopies for exams at neighbouring schools.

It's been four months since Bloekombos High learners marched to Eskom's local Kraaifontein office to ask that their school be connected to electricity. But they remain in the dark.

 

Learners say they are struggling to cope during their June exams without access to electricity.

 

 

In February the learners demanded that Eskom restore electricity supply to their school. At the time, the school had been without consistent supply for several months.

 

Eskom then temporarily fixed the problem until about three weeks ago when electricity was cut again. According to Eskom, the illegal connections from surrounding informal settlements had blown a fuse which they replaced.

 

Sources at the school say staff spends over R1,000 to refill one of the generators every weekday.

 

France Nyambi, who teaches Life Orientation, said teachers are struggling to prepare reports for all 2,000 learners because the computers are off. "Classrooms are dark, so learners can't see properly. Lack of electricity will adversely affect their exam results. Today all the grades wrote exams, but we struggled to make photocopies of exam papers for all of them," he said.

 

 

Nyambi urged Eskom to come up with a permanent solution.

 

Another teacher, Winstson Williams, said he has to read out loud to learners in his class instead of giving them printed handouts. "I normally explain things to them for 20 minutes and give them copies afterwards. Now I must read for them because I can't make copies for them," he said.

 

Matriculant, Liyahluma Oliphant, said the lack of electricity at school forces learners without other access to the internet and power to submit their research assignments late. "In the afternoon I use a torch to light a classroom and study for the June exams," she said. "Our textbooks contain old information. When the teachers used projectors, they exposed us to the latest information. Today we started the exams late because our teachers were tied up, making photocopies for the whole school."

 

School Governing Body chairman, Mbulelo Ncedani, said the school's pass rate has been dropping because of the school's electricity problems. "By denying the learners access to electricity, Eskom is destroying their future. We want Eskom to deal with this issue urgently. Teachers are struggling as they now have to go to other schools to photocopy exam papers."

 

 

He said some parents want Eskom to install a separate electricity pole in the school's yard that will be inaccessible to the nearby shack dwellers.

 

Eskom senior technician Kobus Lamprecht told GroundUp the power utility was waiting for the municipality to approve a wayleave for them to build a new line for the school.

 

"The current problem is with the high voltage cable to the school. It's not yet clear what is wrong with the cable. Two or three shacks must be removed. The school has no electricity currently because the fuses have been damaged again."

 

Subcouncil manager Amelia van Rhyn met the learners, teachers and community leaders to discuss the electricity supply problem at Kraaifontein municipality. She said all but one department had signed Eskom's wayleaves.

 

Western Cape Education of Education spokesperson Millicent Merton said: "The school started experiencing problems and reported it to Eskom who promised to send out a technician."

 

Merton said the school is using a generator to continue with teaching and learning.

 

Eskom spokesperson Kyle Cookson said Eskom informed shack dwellers whose homes are preventing technicians from doing repair work. "Eskom has also engaged with stakeholders and the local councillor who is aware of the request for access to the cable so that repairs can begin promptly," he said

 

Cookson said Wallacedene residents also marched to Eskom in Kraaifontein on Tuesday to complain about the "endless electricity supply problems".

 

"Illegal connections, cable theft and vandalism are a major problem in Bloekombos and Wallacedene," he said.

 

-GroundUp.

 

 

 

 

Nigeria: Central Bank Directs Banks to Trade Forex At Any Rate

There are indications that the Central Bank of Nigeria, CBN has directed banks to trade foreign exchange at any exchange rate in the Investors & Exporters window based on willing buy, willing seller arrangements.

 

In response the I&E window exchange rate rose sharply to N610 per dollar, as at N12:50 pm from N471.67 yesterday night.

 

Though the CBN is yet to issue a statement to this effect, two banking executives however confirmed to Vanguard that it is true that the CBN has given the directive to the banks.

 

Impact

 

Meanwhile, an investment banker and the Co-founder, Comercio Partners, Nnamdi Nwizu, said the immediate impact of the directive is enhanced foreign exchange inflow into the economy and further rise in the inflation rate, as the I&E window exchange rate rises aggressively as already seen today.

 

-Vanguard.

 

 

 

 

Nigeria's Telecom Access Gaps Drop By 53%

Access gaps refer to the cluster of communities or grouped areas in different parts of the country that are bereft of access to telecom services

 

The number of identified areas of clusters across Nigeria without access to the telecommunications services has been reduced by 53.1 per cent as at the end of 2022.

 

The Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission, Prof. Umar Garba Danbatta, disclosed this at a recent telecoms industry stakeholders forum in Yenagoa, Bayelsa state, according to a statement by Reuben Muoka, the Director, Public Affairs of NCC.

 

 

Danbatta, who was represented at the forum by the Head, Pre-Licensing at the Commission, Usman Mamman, said from 207 clusters of access gaps in 2013, the industry has witnessed a reduction to 97 as of end 2022 by bridging 110 clusters of access gaps, representing a 53.1 per cent reduction.

 

He said by implication, the number of Nigerians who fell within the access gap which were estimated at 37 million in 2013 has been reduced to 27 million, following increased access to telecoms services by those hitherto not digitally included.

 

Access gaps refer to the cluster of communities or grouped areas in different parts of the country that are bereft of access to telecom services and till date, the NCC has reduced clusters of access gap by more than half.

 

Danbatta said, "We have worked tirelessly to ensure we bring telecom services to people living in rural, unserved, and underserved areas of this country, totalling 37 million people courtesy of the consultancy that was conducted in 2013.

 

 

"By 2019, we had succeeded in reducing the clusters of access gaps to 114 through the deployment of the necessary infrastructure needed to bring services to people living in rural, unserved and underserved areas of the country. The deployment of infrastructure is in terms of base transceiver stations, which resulted in the reduction of Nigerians in those clusters from 37 million to 31 million in 2019.

 

"By 2022, we have reduced the clusters of access gaps to 97 from 207 in 2013. The number of Nigerians again have come down from 37 million in 2013 to 27 million as we speak. We achieved this by deploying, from 2009 to 2011, a total of 79 new base transceiver stations," he said

 

Danbatta stated that in 2013 to 2018, the telecom sector also witnessed the deployment of additional 124 base transceiver stations while from 2019 to 2022, a total of 364 base transceiver stations were deployed.

 

"So far, the total number of base transceiver stations we have deployed to date between the time the access gaps were identified till the end of 2022 are 567," he said.

 

While describing the reduction in access gap so far as a landmark, Danbatta, however, said the Commission will not rest on its oars as it thrives to ensure that the remaining 27 million Nigerians, who currently lack access to telecoms services, are provided with services.

 

Meanwhile, the EVC said part the regulatory interventions of the Commission to bridge the remaining 97 access across the country to provide ubiquitous connectivity in all the nooks and crannies of Nigeria are the issuance of the Mobile Virtual Network Operator (MVNO) Licences and the deployment of Fifth Generation (5G) networks, among others.

 

-Premium Times.

 

 

 

 

Ghana: SIM Card Re-Registration 'Wahala'

In October 2021, the government embarked on an exercise to re-register all mobile phone SIM cards in the country to ensure sanity and security within the mobile telecommunication space.

 

SIM cards, known technically as Subscriber Identification Module is a removable card fixed inside a cell phone that stores data unique to the user, such as identification numbers, passwords, phone numbers, and messages.

 

Among other things, the regulations help law enforcement agencies identify SIM card owners, track criminals who use phones for illegal activities, and curb phone theft, hate text messaging, mobile fraud activities, and SIM Box fraud.

 

 

It was also expected to help identify subscribers using value-added services such as mobile banking, mobile money, and electronic payment services.

 

The exercise was to last for six months, meaning it was supposed to have been completed in March 2022. Circumstances were such that most Ghanaian mobile phone users could not re-register their SIM cards. The calls were from all angles for the government to extend the exercise to enable such citizens to complete the process. The Minority in Parliament, for instance, urged the President to intervene in the matter as there were so many mobile phone subscribers who had not been able to re-register their sim cards for various reasons, paramount among them was difficulty in securing their Ghana cards, the prerequisite for the sim card registration.

 

 

The government then extended the exercise from March this year to July last year. as the deadline for all persons to re-register their SIM cards with their Ghana Cards.

 

For the second time, the deadline for the exercise was thwarted by the inability of some Ghanaians to acquire their Ghana Cards and it was again extended to 30th September last year. This in effect ended an anniversary of its commencement. Meaning the exercise lasted for a whole year yet many had not been able to re-register their SIM cards. In the words of the Minister for Communications and Digitalisation, Ursula Owusu-Ekuful "Any SIM card that has not been registered by the end of the extended period will be barred from receiving specific services, including voice and data services." But this was not wholly done for obvious reasons.

 

 

The very final deadline was pinned at 31st May this year. The exercise is mandatory as mobile phone users who cannot re-register their SIM cards will automatically have their numbers deactivated from the system of their service providers. According to the Ministry, persons who had failed to comply with the directive after the deadline would have had their SIM cards deactivated.

 

This directive occasioned an untold rush at the offices of the Telecommunications and the National Identification Authority (NIA). A high level of apprehension and anxiety also ensued among the populace. This was against the backdrop of the basic directives of the primary Ghanaian Identity Card, The Ghana Card being the sole document needed to be used for the exercise.

 

The Statistics are that as of January this year, Ghana had registered approximately 46 million mobile connections, up from 41.69 million in the same month of last year. The number of mobile connections corresponded to 140 percent of Ghana's total population, as one person can use multiple networks at the same time.

 

Much as it is appreciated that many people own multiple mobile phone lines, the number of people without Ghana card to enable them to process the re-registration of their SIM cards are also many. The Executive Secretary of the National Identification Authority (NIA), Professor Kenneth Agyemang Attafuah, has disclosed that over 15.7 million Ghanaians have received their Ghana cards as of July last year. This means over half of the population does not have their Ghana cards at the time.

 

This has placed an enormous responsibility on the NIA now than ever before. Even though the process of issuing Ghana cards is continuous, it is incumbent on the NIA to be more proactive and faster than before to issue Ghana cards for the citizens to enable them to beat the third deadline.

 

Professor Attafuah, most of the cards have even been printed, but their owners have not collected them. Some Ghanaians who have already been issued with the card have had them either missing or defaced, while some have errors and, therefore, cannot synchronise with details on their SIM cards. The need for additional centres for the processing and collecting of Ghana cards is critical, at least for this exercise.

 

Media reports have it that NIA offices and centres, which had been virtually besieged before the extension of the deadline, appeared almost empty at a point in time until people realised that their SIM cards had been deactivated. This is the Ghanaian mentality and attitude that needs to be changed. It is always a last-minute call, and most often, they are disappointed.

 

Statistics available indicate that over 8 million unregistered SIM cards have been deactivated by the various telecommunication companies after the May 31 deadline announced by the government for the registration exercise. Many people including, as per media reports, "the Speaker of Parliament, Alban Bagbin's official SIM card has been deactivated despite undergoing the SIM registration exercise."

 

Not too sure whether or not this or the mad rush for Ghana cards compelled Parliament to summon the Minister of Communications, Ursula Owusu-Ekuful to appear before Parliament on Thursday, June 8, 2023. It was rather a good move as there were too many issues, some of them so ambiguous to comprehend. Her appearance on the floor.

 

For example, some subscribers who had gone through the re-registration process yet had their SIM cards deactivated, and some others, about 7.4 million mobile money accounts, holding an amount of about GH₵200 million, and have not been re-registered have been deactivated.

 

The assurance by Dr Kenneth Ashigbey, Chief Executive Officer of the Chamber of Telecommunications, to restore mobile money accounts is refreshing.

 

"If you do not have a Ghana Card, go to the National Identification Authority to obtain a card. Once you have the Ghana Card, dial the registration code, and register. Once you have registered, you will get your number back," Dr Ashigbey said.

 

Perhaps the worse and most serious was the fact that Agents of the Telecommunications firms who were assisting in the re-registration dubiously used the data of innocent subscribers to register many other SIM cards in some cases ten SIM cards linked to people's Ghana cards without their knowledge. The seriousness and the danger is that the users of these dubiously registered SIM cards may use them to commit crimes in the name of the Card owners.

 

It is believed that Ghanaians will take advantage of the last extension to re-register their SIM cards to avoid losing their numbers which have been more or less their identities.

 

Much benefit is derived from this exercise and all must endeavor to compromise for its success. Obviously, SIM card re-registration will be harder for fraudsters to hijack your data. Because telco providers now have access to subscriber information, each SIM card will have its own identity. Your SIM card data will become more secure and less vulnerable to hackers.

 

On the economic front, SIM Registration will enhance economic growth and gradually formalise the informal sector as people will now be able to access E-Government services and other private e-services. In addition, SIM Registration will also support financial inclusion across the vulnerable sectors. It is also to develop and build a SIM database with integrity, boosting confidence and security for the use of services dependent on the communications network.

 

Under the measure, mobile device users must re-register their SIM cards, whether prepaid or postpaid. This is to help curb cybercriminal activities. it will help also to address issues related to trolling, hate speech, and online disinformation.

 

-Ghanaian Times.

 

 

 

Kenya: Traders at Mutindwa Market Counting Losses After Fire Razes Structures

Traders in Mtindwa market located along Kangundo road are counting losses following a midnight inferno that saw properies reduced to ashes.

 

It is not yet clear what the cause of the fire might have been.

 

This comes barely three days after the popular Toi market faced yet a similar incident that saw the destruction of milluins worth of property in an inferno believed to have been started by someone.

 

The traders have called on police to investigate the matter.

 

-Capital FM.

 

 

 

Ghana: Ecobank Poised for Sustainable Growth Despite Challenges - Board Chairman

The Ecobank Ghana Plc is poised for sustainable growth and profitability, despite incurring a loss in the 2022 financial year, Chairman of the Board of Directors of the bank, Samuel Ashitey Adjei, has stated.

 

He said impairment charge on the government bonds due to the domestic debt restructuring in 2022 resulted in a net impairment charge of GH¢1.7 billion, and a loss of GH¢27. 2 million before tax payment, compared with the pre-tax profit of GH¢893.73 million in 2021.

 

Addressing the 2022 annual general meeting of the bank last Friday, Mr Adjei said, "We are confident in the resilience and potential of our institution, and we look forward to a bright future together."

 

 

The Chairman of the Board of Directors said total revenue of the bank increased by 40.3 per cent to GH¢2. 97 billion.

 

The growth in revenue, he said, was mainly driven by increases in net interest income and fee-based income, as well as the successful implementation of trade and cash management initiatives.

 

Mr Adjei said net interest income grew by 65 per cent to GH¢2.5 billion.

 

"Our balance sheet remained strong with total assets of GH¢25. 9 billion, growth of 44.5 per cent from the previous year," Mr Adjei stated.

 

The Chairman of the Board said customers' deposits reached GH¢20. 4 billion, up by 54.4 per cent, driven by improved product offering and increase in customer confidence in the Ecobank brand.

 

He said the bank's supportive digital channels and active customer engagements also contributed to the deposit growth.

 

 

"Despite the economic challenges, we continue to support business growth, as evidenced by our net loan book of GH¢8. 9 billion, which is one of the largest in the industry," Mr Adjei said.

 

The Managing Director of Ecobank Ghana Plc, Mr Daniel Sackey, in his address, said the bank was positioned for strong growth going forward despite the challenges last year, due in part, to the domestic debt exchange programme arising out of the International Monetary Fund (IMF)'s programme.

 

"Notwithstanding the shocks, I am pleased to report to our valued shareholders that your Bank, Ecobank Plc, Is very strong and resilient and remained a significant player in the market," he stated.

 

Mr Sackey said management of the bank would continue to monitor developments in the economy and adapt and continuously strive to provide the best services to customers.

 

-Ghanaian Times.

 

 

 

Uganda: Smart Cities Should Embrace Women Street Vendors

Last year, Kampala Capital City Authority (KCCA), a member of the Africa Smart Towns Network (ASToN), hurriedly implemented the concept of smart cities, contrary to the core smart city value of inclusiveness.

 

With the assistance of the Uganda Police Force and military, KCCA pushed street vendors, who are predominantly women, off the streets to pave way for a smart city; ergo, street vendors were arrested, detained, tortured, and lost access to public space for their families.

 

When push came to shove, KCCA took a fit-all approach, relocating street vendors to markets. This did not go well with the majority of street vendors, who were not consulted by the authority. The cities of Lira and Fort Portal learned bad manners and followed suit.

 

 

Relatedly, across the continent, the smart city craze continued. Informal workers were evicted from the Port Harcourt informal settlement in Nigeria that housed over 15,000 families, and in Mauritius, "squatters", in three regions, were violently evicted during the Covid-19 lockdown.

 

These ordeals, though gruesome, are not a shock because several studies have indicated that smart technology, whether employed ignorantly, indiscriminately, invertedly, or out of excitement, in cities can exacerbate social inequality.

 

Today, women street vendors are back on the streets, and their daily contestation for public space with KCCA and city dwellers has not stopped. The brutal arrests by law enforcement have continued and gone unchecked.

 

But harnessed in the right way, the concept of smart cities holds great potential to contribute to informal workers' welfare and livelihoods and resolve the impasse between KCCA and female street vendors.

 

 

Cities, governments, and other stakeholders should walk the walk of inclusive development; they should include street vendors in the initial stages of city planning. Often, the inclusion of street vendors has been an afterthought, and yet their participation is a prerequisite for a successful smart city.

 

To achieve this, KCCA and authorities in other cities should first consider conducting surveys in their respective cities in order to prepare any plan or strategy for female street vendors. The uniqueness of street vending has informed its trade patterns and demand for specific places of operation.

 

These include capital, culture, traffic, population, and gender. For example, when you stroll on the streets of Kampala, you will realize that most of them are dotted with female street vendors that are either selling fruits or other merchandise whose value, in most cases, does not exceed two dollars.

 

 

To dictate that such street vendors should take up expensive stalls in markets is counterproductive. However, with smart inclusive planning and gender-sensitive approaches that are informed by the views, needs, and challenges of street vendors can be adopted.

 

These may include themed-based organization, sustainable street vendor zoning, intuitive improvisation, and others. These approaches address both the problem of access to space for informal workers and serve as a source of revenue for local authorities.

 

For brevity, I am restricting myself to sustainable street vendor zoning and intuitive improvision. With sustainable street vending zoning, women street vendors are assigned to particular streets, specific hours of the day, and public holidays, among others, to carry out their trade.

 

On the other hand, intuitive improvisation is an approach that requires urban planners, based on prevailing circumstances, to think unconventionally and improvise street vendors' access to public places.

 

In Kampala, for instance, KCCA can capitalize on the seasons synonymous with nsenene, an African edible bush cricket, a delicacy that both the affluent and the downtrodden have munched with happiness, courtesy of the women street vendors, to create seasoned-based markets.

 

Finally street vendors are not dirty as projected by those who alienate them. Instead, we have to embrace them in our urban planning as it is always projected.

 

Along the Nile, in the city of Cairo, is a great story of the waste pickers, or zabbaleen, as they are referred to. For long, they had been overlooked, but later authorities recognized that they were better placed to run waste management activities than companies. Since their integration into waste management, Cairo has never looked back.

 

The author is the executive director at Jua Kali Initiative, an organization that advocates for rights of informal workers

 

-Observer.

 

 

Nigeria Grants Licences for New Oil Export Terminals

They are the first set of licences to establish crude oil terminals, sealed and granted by the NMDPRA.

 

The federal government has issued licences to the NNPCL Exploration and Production Ltd. and Belema Sweet Export Terminal Ltd for the establishment of crude export terminals.

 

The licences were approved and issued to the companies on Tuesday in Abuja by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.

 

The News Agency of Nigeria (NAN) reports that the NNPCL Exploration and Production Ltd. operates Utapate Export Terminal, located in Akwa Ibom State while the Belema Sweet Export Terminal Ltd is located in Rivers State.

 

 

They are the first set of licences to establish crude oil terminals, sealed and granted by the NMDPRA.

 

Speaking at the signing of the Terminal Establishment Licences, Mr Ahmed said the development would add more than four million barrels of capacity to Nigeria's Export Storage.

 

He said the issuance of the licences was pursuant to the provisions of the Petroleum Industry Act (PIA 2021) which stipulated new provisions for the establishment of new export terminals.

 

According to the PIA Section 174(1) (a) "Except in accordance with an appropriate licence issued by the Authority, a person shall not undertake the following activities with respect to midstream petroleum liquids operations."

 

He said the licence which it processed and approved enables one to establish, construct or operate a terminal or other facility for the export or importation of crude oil or petroleum products.

 

 

Responding, Modibbo Ahmed, who received the license on behalf of the Nigerian National Petroleum Company Ltd (NNPC Ltd) disclosed that the crude oil terminal would be operational within three months.

 

According to him, the NNPCL E&P is a subsidiary of the NNPC Ltd responsible for the exploration and production of crude oil and will have its first cargo soon for the benefit of Nigerians.

 

The Chief Executive Officer of Belema Oil Producing Ltd., Tein Jack-Rich, who lauded the federal government for facilitating business operations in Nigeria said the terminal would bring Nigeria to a global scale as a high-breed terminal.

 

Mr Jack-Rich said the terminal had the capacity to generate over $11 billion in national revenue and over 400,000 barrels of crude daily with a storage point that could store eight million barrels of crude.

 

"Basically the terminal will create over 100,000 jobs for people of the Niger Delta and Nigerians at large, and Nigeria will benefit through revenue earnings when operational," he said.

 

He said the establishment of the Belema Sweet Crude Export Terminal would position Nigeria as the global leader in establishing a climate-conscious crude oil export terminal with integrated renewable energy through a virtual power plant model.

 

Speaking on the subsidy removal, he said the development would spur the production of more oil and crude for local refineries and consumption.

 

"With this, what we produce will be accounted for. We also have another wing of the project to establish a mini refinery to refine excess capacity for local consumption," he said.

 

-Premium Times.

 

 

 

Beyoncé blamed for inflation surprise in Sweden

Thought the war in Ukraine or supply chain snarls were to blame for rising prices? You must not know 'bout Beyoncé.

 

The start of the singer's world tour in Sweden last month sparked such a frenzy of demand for hotels and restaurant meals that it has shown up in the country's economic statistics.

 

Sweden reported higher-than-expected inflation of 9.7% in May.

 

Rising prices for hotels and restaurants were behind the surprise.

 

Michael Grahn, economist at Danske Bank, said he thought Beyoncé helped drive the jump in hotel rates. She may also have been the force behind the unexpectedly strong uptick in recreation and culture prices, he said.

 

"I wouldn't ... blame Beyoncé for [the] high inflation print, but her performance and global demand to see her perform in Sweden apparently added a little to it," he wrote in an email to the BBC.

 

There is little doubt that the singer's first solo tour in seven years marks a big economic moment. At least one estimate suggests the run could gross almost £2bn by the time it ends in September.

 

Searches for accommodations in cities on the tour shot up after it was announced, Airbnb reported. Tickets for many concerts sold out within days and prices soared on the resale market.

 

In the UK, 60,000 people descended on Cardiff, including fans from Lebanon, the US and Australia. Demand for hotel rooms tied to her concert in London was so strong that in one case, some homeless families being housed in a hotel by the local council were reportedly booted to make way for her fans.

 

The Stockholm concerts, where Beyoncé played to a crowd of 46,000 for two nights, reportedly drew fans from around the world - especially the US, where a strong dollar against the krona helped to make tickets in the Nordic country seem a relative steal.

 

In an email to the Washington Post last month, Visit Stockholm described the boom in tourism to the city as the "Beyoncé effect" .

 

Inflation in Sweden peaked at 12.3% in December. The 9.7% rate last month was down from 10.5% in April, official figures show. Financial markets had expected around 9.4%.

 

For one star to have such an impact is "very rare", Mr Grahn told the BBC, adding that big soccer tournaments can have a similar effect.

 

He wrote on social media that he expected trends to return to normal in June.-bbc

 

 

 

 

US holds interest rates steady in first since 2022

The US central bank has announced it will hold interest rates steady - the first time it has opted against a rise in more than a year.

 

The Federal Reserve kept the target for its benchmark rate at 5%-5.25% saying it wanted time to assess the impact of rate hikes so far.

 

The bank has already raised rates 10 times since March 2022 as it battles to bring inflation under control.

 

Bank forecasts show most officials expect rates to rise further.

 

A majority expect the Fed's key rate to stand above 5.5% at the end of the year and one person sees it climbing above 6%.

 

Federal Reserve chairman Jerome Powell said the bank was still waiting for evidence that inflation was slowing "decisively" - though it has come down sharply from its peak last year, as the shock to food and energy prices from the war in Ukraine subsides.

 

"We're just not seeing a lot of progress," he said. "We're going to have to keep at it."

 

Consumer prices rose 4% in the 12 months to May, climbing just 0.1% from a month earlier, the Labor Department reported on Tuesday.

 

But that remains higher than the 2% rate the bank considers healthy. Prices for many items beyond food and energy continue to rise steadily.

 

The Fed has already lifted its benchmark rate to the highest levels since 2007 to try to rein in the increases.

 

Further rises, after a pause, would follow a path carved out by central banks in countries such as Australia and Canada, which recently announced rate hikes following a break, citing stubborn inflation pressures. The European Central Bank is expected to raise rates at its meeting this week.

 

In the US, Mr Powell said officials wanted time to assess how the economy was adjusting to the shift to higher rates, as the change ripples out to the public in the form of higher costs for mortgages, business loans, credit cards and other borrowing.

 

"Given how far we've come, it may make sense for rates to move higher but at a more moderate pace," he said.

 

In theory, higher borrowing costs should reduce demand for loans for homes, business expansions and other activity, eventually cooling the economy and easing pressures pushing up prices.

 

But despite pockets of pain, such as a sharp slide in home sales, the economy has held up better than many expected so far.

 

Fed policymakers now expect the economy to grow 1% this year - stronger growth than anticipated in March, according to projections that accompanied the rate announcement. The unemployment rate is also forecast to be 4.1%, lower than previously estimated.

 

The estimates also show they see less progress controlling inflation than in March.

 

Mr Powell said what the Fed will do at its next meeting remains a "live" question. He added that he saw no chance that rates would come down this year.

 

The three major US indexes fell following the announcement, which suggested rates would end the year higher than markets had expected.

 

"The Fed had to do something to knock market optimism today, otherwise it risked a tougher inflation fight and deeper economic woes down the line," said Seema Shah, chief global strategist at Principal Asset Management.

 

Charles Lieberman, chief investment officer at Advisors Capital Management, said the pause was a recognition of the risk that the Fed's jump in rates to more than 5% in less than 18 months could trigger an economic slowdown that would lead to millions of job losses.

 

The bank is also trying to account for the impact of a string of recent bank failures, which could reduce lending further.

 

"Five percentage points is just absolutely enormous .... So this is a big impact," said Mr Lieberman, who previously worked at the Federal Reserve Bank of New York. "It doesn't mean they're necessarily done."

 

Diane Swonk, chief economist at KPMG in the US, said the public should not expect a return to lower rates anytime soon.

 

She said the economy generally has become "much more inflation prone" due to factors such as increased geo-political tensions, a move to more regional supply chains, and extreme weather events upsetting food supplies and prices more frequently.

 

"You're going to see a much more activist central bank policy with higher bouts of inflation and bouts of rate hikes than we saw from the world we left," she said.

 

"A pause is not an end," she added. "They don't want to let their guards down yet with regard to inflation."-bbc

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

GetBucks

EcoCash

 


TSL

Econet

Turnall

 


First Capital Bank

ZBFH

Fidelity

 


Zimplow

FMHL

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and d from third parties.

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell: +263 77 344 1674

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 59971 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 137697 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29989 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65569 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230615/b1b1b789/attachment-0001.obj>