Major International Business Headlines Brief::: 16 June 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 16 June 2023 

 


 

 


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

 


 

 


 

ü  Namibia to Host Africa Hospitality Investment Forum

ü  South Africa: Joburg Roads Agency CEO Fired

ü  Nigeria's Inflation Hits 22.41% As Food Prices Rise

ü  Nigeria: Beware! Guide 'Against Bank Account Hackers' Is Not From
Nigeria's Central Bank

ü  Ghana: Otumfuo Applauds Vodafone Ghana's Unwavering Commitment to Ashanti
Region

ü  Ghana: Raising Revenue From Extractive Sector - Ghana Can Bag U.S.$4.2
Billion Annually ...to Resolve Current Economic Crisis - IFS

ü  Ghana: Govt Rolls Out Alternative Livelihood Programme for 8,000 Fishers
During Closed Season

ü  Ghana: Kpedze SHS Invention to Go Through Refining

ü  Ghana: Exempt Exploration Firms From VAT On Drilling and Laboratories -
GCM

ü  iPhone maker Foxconn to switch to cars as US-China tensions soar

ü  Maharashtra: The Indians taking on oil giants to stop $40bn refinery

ü  New Zealand: Economy slips into recession after interest rate hikes

ü  We Soda scraps UK share listing in blow to London

ü  The workers already replaced by artificial intelligence

 


 

 


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

Namibia to Host Africa Hospitality Investment Forum

The land of the brave was this week selected to host the Africa Hospitality
Investment Forum (AHIF) in 2024.

 

AHIF is the leading hospitality investment conference that connects business
leaders from the international and local markets, driving investment into
tourism projects, infrastructure and hotel development across Africa.

 

Executive director of strategy and branding at the Namibia Investment
Promotion and Development Board (NIPDB) Margareth Gustavo received the baton
from Matthew Weihs, who is the founder and managing director of the Bench.

 

 

The bench is the official organising partner for AHIF during the official
announcement in Nairobi, Kenya.

 

According to NIPDB, Namibia's winning bid builds on the foundational
strengths of easily accessible cities, an accommodating visa policy,
state-of-the-art infrastructure, diverse accommodation possibilities and
rich tourism experiences.

 

"With the assurance of a high-level patron, AHIF2024 promises to be a
landmark event that cements Namibia's position as a premier destination for
tourism and a favourable hub for investment. We eagerly anticipate welcoming
delegates from across the globe and showcasing Namibia's renowned
hospitality, charm and investment possibilities," stated the investment
board.

 

The board continued that the win to host the forum is a milestone in
Namibia's economic growth and development journey. It signifies recognition
of the nation as a significant player in Africa's burgeoning tourism and
investment sector. Namibia is well-equipped and eager to rise to the
occasion.

 

 

The opportunity to host AHIF2024 amplifies the country's commitment to
elevating our hospitality and tourism sector, which contributes up to 14% of
the national gross domestic product and employs over 100 000 Namibians.

 

"Our goal is to create an impactful event, backed by our robust private
sector, the support of relevant government authorities and the enthusiasm of
stakeholders in our hospitality and tourism sector," stated NIPDB, a state
company with the mandate to make sure Namibia attracts as many investors as
possible.

 

According to the Bank of Namibia fourth quarter of 2022 bulletin, tourism
activity, as proxied by the total airport passenger arrivals, recorded a
significant increase, year-on-year, largely due to base effects, following
the easing of travel restrictions.

 

The total tourist arrivals rose, year-on-year, to a headcount of 96 755
during the fourth quarter of 2022 from 56 916 registered during the same
quarter of 2021.

 

"The recovery was partly due to the easing in travel restrictions, as the
economy continued to open up, in addition to positive developments in the
vaccine rollout worldwide. The yearly increase in the airport passenger
arrivals was reflected in both international and regional arrivals, though
total arrivals were 17.6% less than the pre-pandemic level during the
quarter under review, compared to the fourth quarter of 2019," reads the
bulletin.

 

-New Era.

 

 

 

South Africa: Joburg Roads Agency CEO Fired

The Johannesburg Road Agency (JRA) has terminated the contract of CEO Tshepo
Mahanuke.

 

Mahanuke has been serving suspension since November last year after
allegations were raised that he misrepresented his qualifications.

 

He was appointed to the position in August last year.

 

JRA board chairperson Charles Cilliers said the board's decision to fire
Mahanuke was taken following an investigation into the matter.

 

"Given the serious nature and far-reaching ramifications of the matter at
hand, coupled with the findings of a rigorous investigation and the failure
of Mr. Mahanuke to respond to the charges levelled against him, the JRA
Board resolved to immediately terminate Mr. Mahanuke's employment with the
Johannesburg Roads Agency," he said.

 

Cilliers added that Mahanuke was fired in accordance with the law after
Mahanuke failed to provide any evidence to repudiate evidence that he had
misrepresented qualifications.

 

"The decision to terminate Mr. Mahanuke's employment at the JRA complies
with the Labour Relations Act, Schedule 8- Code of Good Practice on
Dismissal, the relevant Case Law, and also considers the severe legal costs
already incurred thus far," he said.

 

Mahanuke was given seven days to appeal the decision however, according to
the JRA, he has not yet done so.

 

-SAnews.gov.za.

 

 

Nigeria's Inflation Hits 22.41% As Food Prices Rise

The NBS said food inflation was 24.82 per cent in May, up from 24.61 per
cent in April.

 

Nigeria's annual inflation rate rose to 22.41 per cent in May from 22.22 per
cent in the previous month, the National Bureau of Statistics (NBS) said
Thursday.

 

The statistics office said the May 2023 inflation rate showed an increase of
0.19 per cent points when compared to April 2023 headline inflation rate.

 

The NBS said on a year-on-year basis, the headline inflation rate was 4.70
per cent points higher compared to the rate recorded in May 2022, which was
(17.71 per cent).

 

 

"This shows that the headline inflation rate (year-on-year basis) increased
in the month of May 2023 when compared to the same month in the preceding
year (i.e., May 2022)," it said.

 

President Bola Tinubu had, in his inaugural address on 29 May, announced the
removal of fuel subsidy.

 

Following the announcement, the NNPCL directed its outlets nationwide to
sell fuel between N480 and N570 per litre, an almost 200 per cent increase
from the initial price below N200.

 

The hike immediately triggered an increase in transportation fares and
prices of goods and services by various percentages.

 

Inflation has remained high in Africa's largest economy, prompting the apex
bank to hike interest rates to their highest levels in nearly two decades.

 

In an aggressive push to contain the nation's inflationary pressure, the
Central Bank of Nigeria, in May, raised its benchmark lending rate to 18.5
per cent.

 

The NBS said food Inflation was 24.82 in May, up from 24.61% in April.

 

-Premium Times.

 

 

 

Nigeria: Beware! Guide 'Against Bank Account Hackers' Is Not From Nigeria's
Central Bank

IN SHORT: While the country's main bank would want to protect Nigerians from
bank account fraud, a guide purporting to be from it is more likely to get
the faithful into trouble.

 

Has the Central Bank of Nigeria (CBN) published a step-by-step guide on how
Nigerians can protect their accounts from hackers?

 

That's the claim in a Facebook post, dated 28 April 2023, of what appears to
be a screenshot of a CBN statement.

 

The headline reads: "CBN against bank account hackers". It goes on to give
instructions on how you can freeze your account should you be targeted by
online scammers or your phone be stolen.

 

 

The claim also appears here and here.

 

Such information may easily go viral, given that it claims to be from the
country's financial services regulator. And if the information is incorrect,
many who follow it could fall victim to fraudsters.

 

So is this an official CBN statement?

 

CBN rubbishes 'fake' statement

 

Whenever the CBN issues a statement, it will always include its logo. The
absence of this on the screenshot should be an immediate red flag that the
statement is not from the bank.

 

The statement also has grammatical errors, which is uncharacteristic of an
institution of the bank's standing.

 

On 28 April, the central bank tweeted that the statement was fake.

 

"It is important to be cautious and vigilant of fake news, pages, or
accounts run by individuals with ill intentions posing as the Central Bank
of Nigeria (CBN)," it said.

 

 

 

Ghana: Otumfuo Applauds Vodafone Ghana's Unwavering Commitment to Ashanti
Region

The Asantehene, Otumfuo Osei Tutu II, has lauded Vodafone Ghana for its
unwavering commitment and substantial contribution towards the progress of
the Ashanti Region.

 

Otumfuo Osei Tutu II highlighted Vodafone Ghana's steadfast support for the
Asantehene Open Golf Championship, even in challenging economic times.

 

He also recognised the company's crucial initiatives that have significantly
impacted the region, particularly in the realms of education and health
care.

 

This commendation was made during a visit by Vodafone Ghana's senior
management team, led by CEO, Patricia Obo-Nai, to the Manhyia Palace.

 

 

The visit was aimed at communicating Vodafone Ghana's continued sponsorship
of the Asantehene Open Golf Tournament, a commitment they have upheld for
seven successive years since 2017.

 

She also announced the celebration of the 2023 Vodafone Ashanti Month, which
is an annual celebration.

 

Otumfuo Osei Tutu II expressed his gratitude to Vodafone for spearheading
sustainable development initiatives in the Ashanti region through job
creation, building digital economy as well as enhancing the health and
education sectors.

 

In response, Patricia Obo-Nai thanked Otumfuo and reaffirmed Vodafone
Ghana's dedication to Asanteman.

 

She emphasised that their support for the golf tournament and other
initiatives was geared towards fortifying Vodafone's relationship with
Otumfuo Osei Tutu II and the people of Asanteman, while also fostering
sustainable development in the region.

 

"As part of our Ashanti Month celebrations, we aim to give back to our
customers and the community. So, we urge individuals and businesses to
leverage all the opportunities we offer during Ashanti Month and beyond,"
she said.

 

The month-long celebration will include the launch of an ICT hub at the
Ashanti Regional Library, a collaborative effort with the Ghana Library
Authority.

 

-Ghanaian Times.

 

 

 

Ghana: Raising Revenue From Extractive Sector - Ghana Can Bag U.S.$4.2
Billion Annually ...to Resolve Current Economic Crisis - IFS

The government has been urged to focus on the extractive sector to raise
revenue as part of efforts to revive the economy under the International
Monetary Fund (IMF) Extended Credit Facility programme (ECF), instead of
relying on taxes.

 

The Institute of Fiscal Studies (IFS), an economic and financial think tank,
said Ghana could raise more than $4.2 billion annually from the extractive
sector to prop up the economy from the current crisis, which is more than
the $3 billion government is raising from the IMF over the next three years
as part of the ECF with the Fund.

 

The Senior Research Fellow of IFS, Dr Said Boakye, who made the call during
a press conference to assess Ghana's ECF with the IMF, said Ghana could
raise substantial revenue from the extractive sector through active
participation of extraction of the country's mineral resources, joint
ventures and production sharing approach.

 

 

According to him, studies conducted by the IFS indicated that out of the
$22.72 billion worth of minerals produced in Ghana from 2015 to 2018, only
$1.48 billion, representing a meager 6.5 per cent was paid as revenue to the
government.

 

"The remaining $21.14 billion, representing 93.5 per cent went to the
private producers of the minerals, mainly multinational, even though mineral
resources are public endowed from God and should therefore benefit the
state, which holds them in trust for the people," Dr Boakye stated.

 

He said the country was not making much from its mineral resources because
government relied on fiscal approach through concessionary arrangement to
generate revenue.

 

 

"From IFS's research, the revenue gap between Ghana and its peers is largely
due to the country's relatively poor revenue generation from the extractive
sector, which is the result of leaving the sector in the hands of
multinationals through concession arrangements that yield paltry revenue to
the state, while the multinationals repatriate billions of dollars in
resource rents," Dr Boakye stated.

 

He said between 2015 and 2018 only 10.5 per cent of the $14.14 billion
supernormal profit generated from mineral production, was paid as revenue to
the government, leaving the private sector producers to keep as much 89.5
per cent of the supernormal profits.

 

In contrast, Dr Boakye indicated that for instance, in Botswana, mineral
revenue constituted about 95 per cent of supernormal profit and about 52 per
cent of the total value of mineral production.

 

In the oil sector, the government of Ghana's revenue amounts to less than 20
per cent of the total value of production, whereas the Nigerian in that
country.

 

"These wide differences in the extractive sector revenue generation are
because in Nigeria and Botswana, the governments are active participants
with significant stakes in their oil and mining sectors, respectively, while
the Ghanaian government has limited directing participating interests in the
extractive sector, and instead over-relies on fiscal instruments under
concessionary arrangements to generate revenue," Dr Boakye stated.

 

-Ghanaian Times.

 

 

 

Ghana: Govt Rolls Out Alternative Livelihood Programme for 8,000 Fishers
During Closed Season

The Minister of Fisheries and Aquaculture, Mrs Mavis Hawa Koomson has said
the alternative livelihood programme rolled out by her outfit to cushion
fishers during the close season will be upscaled to cover over 8,000 fishers
this year.

 

The alternative programme apart from directly supplying all affected persons
along the entire value chain of the industry with household support, would
also introduced them to other economic activities.

 

The alternative livelihood included; training in masonry, carpentry,
dressmaking, hairdressing, electronics and auto engineering.

 

Mrs Koomson disclosed this in Accra yesterday when she took her turn at the
bi-weekly Minister's Briefing organised by the Ministry of Information.

 

 

This closed season is scheduled between July 1 and August 31, 2023.

 

The artisanal and inshore fleets would observe theirs from July 1 to July 3
while that of industrial trawl vessels would have theirs from July 1 to
August 31.

 

Mrs Koomson said all the necessary consultations with all stakeholders in
the fishery industry had been done before the announcement.

 

She said the closed season was introduced as a recovery strategy to restock
the country's depleting stocks and the strategy was based on scientific
recommendations.

 

She explained that the closed season had been implemented since 2017 with
the exception of 2020 due to the COVID-19 pandemic.

 

Mrs Koomson indicated that during the 2022 closed season, the ministry
distributed 20,000 25kg bags of rice and 8,333 cartons of cooking oil to
support fishers during the closure in order to mitigate the impact of the
closed season on fishers and processors.

 

 

"The ministry also supported fishers with 6,000 bundles of wire mesh, 20,000
basins, 1,710 chest Freezers and 1,150 subsidised outboard motors," she
added.

 

The minister further disclosed that the ministry and its partners, including
the Ghana Fisheries Recovery Activity had launched alternative livelihood
training support for fishers starting with 550 fishers in masonry,
carpentry, dressmaking, hairdressing, electronics and auto engineering,
among other things, in selected communities along the coast.

 

"This training would be scaled up to cover 8,000 fishers and after the
training, trainees would be supported to set up to ensure that they can earn
incomes from their trade," she noted.

 

Mrs Koomson said an Electronic Monitoring System equipped with a video
recorder, a camera, and a Global Positioning System would be fixed on three
pilot trawl vessels to record fishing activities at sea 24 hours, seven days
in a week as part of measures to combat illegal fishing in our waters.

 

"Also, there will be an implementation of ministerial directives on trawl
gear specifications to reduce the catch of juvenile fishes and bycatches, as
well as directives requiring trawl vessels to stay at sea for no more than
30 days for any fishing expedition," she added.

 

Meanwhile, the minister has notified that La Cote d'Ivoire would be
implementing its 2023 closed season at the same period with Ghana.

 

However, Togo, Benin, and Liberia were expected to join next year, she added

 

-Ghanaian Times.

 

 

 

Ghana: Kpedze SHS Invention to Go Through Refining

A prototype solar dehydrator developed by some students of the Kpedze Senior
High School (SHS) in the Volta Region is being refined and enhanced by the
Council for Scientific and Industrial Research (CSIR) for commercialisation.

 

The device meant for preservation of vegetables and fruits to reduce
post-harvest losses, includes a refrigerator to help reduce contamination
during food processing as well as maintain nutrients level.

 

It won the students the first position in the 3rd edition of the Energy
Commission (EC)'s SHS Renewable Energy Challenge contested by 119 SHSs
across the country, last year.

 

 

At the launch of the 4th edition of the contest in Accra on Tuesday, the
Executive Secretary of the Commission, Oscar Amonoo-Neizer, said after the
enhancement the device would be outdoored at this year's finale in October
then commercialised, and promoted for use in agro processing.

 

He said the enhancement was in line with a Memorandum of Understanding
between the EC and CSIR to ensure the sustainability

 

of the challenge through continued development and commercialisation of the
students' projects.

 

"This partnership offers an opportunity for students, teachers, and schools
to reap financial benefits from their projects. This collaboration between
the EC and CSIR underscores our commitment to nurturing innovation and
propelling these remarkable projects towards real-world implementation," he
said.

 

Launched in 2019, the Challenge, a flagship programme of the commission,
aims to promote the development and efficient use of renewable energy
resources through public education, training and regulation of entrepreneurs
in the sector.

 

 

With support from its partners, it is also to facilitate the mainstreaming
of renewable energy and energy efficiency technologies and programmes into
the curriculum of educational and training institutions.

 

This year's Challenge is themed "Mechanised Small-Scale Agriculture using
Renewable Energy Technologies" and requires participating schools to develop
projects in the field of agriculture that incorporate renewable energy
technologies.

 

Mr Amonoo-Neizer, said since its introduction, the challenge had served as a
platform to foster renewable energy-focused research and development among
students while also facilitating mentorship programmes that encourage the
transformation of ideas into impactful and commercially viable solutions.

 

He applauded the project partners; German Agency for International
Cooperation (GIZ), Ashesi University, Bui Power Authority, and Sunon Asogli
Power (Ghana) Limited, for their invaluable support.

 

The Minister of Energy, Dr Matthew Opoku-Prempeh, in a speech read on his
behalf said the challenge would help address the gap between academia and
the industry, which has impeded growth and stifled innovation.

 

On the challenge for the year, he said, it was crucial in addressing
difficulties associated with large-scale farming practices that heavily rely
on manual labour and conventional machinery.

 

"I urge everyone to foster an environment of encouragement and support for
schools, teachers, and students, enabling them to unleash their full
potential in conceptualising and developing innovative projects and
products," he said.

 

The German Ambassador to Ghana, Daniel Krull, said with the increasing
energy prices and growing debts of the energy sector, renewable energy was
the best option given their supply security, cost effectiveness and positive
impact on climate.

 

-Ghanaian Times.

 

 

Ghana: Exempt Exploration Firms From VAT On Drilling and Laboratories - GCM

The Ghana Chamber of Mines (GCM) has reiterated the need for exploration
companies to be exempted from the payment of Value-Added Tax (VAT) on
drilling and laboratories.

 

That, the President of the GCM, Mr oshua Mortoti, said, would help attract
exploration capital to the country's mining industry.

 

Addressing the 95th annual general meeting of the GCM as part of the 2023
and 5th Mining and Energy Summit in Accra at the weekend, he said
exploration investment in Ghana had declined significantly in recent years.

 

"This is alarming for a country where mining is critical for forex and
fiscal revenue generation," he stated.

 

 

Mr Mortoti said VAT was payable on exploration expenditure, and could not be
recovered by the exploration companies unless they made commercial find and
started production.

 

"This implies that where exploration was unsuccessful, VAT would not be
recoverable. Effectively, the extent of actual exploration activity is
diminished upfront cost such as VAT on inputs. Thus, relieving the usually
illiquid exploration companies from the payment of VAT would not only
improve their cash flow situation and reduce their operation costs, but also
enhance the country's image as a competitive destination for exploration
investment," he stressed.

 

Mr Mortoti said some resource-rich countries, such as South Africa, were
pursuing initiatives to ensure fresh inflows to revitalise exploration
investment, and Ghana should pursue same, saying in the long run, that would
guarantee continuous mineral production and flow of fiscal and forex
receipts as well as other benefits from the minerals sector.

 

 

The President of the GCM mentioned a number of fiscal issues, such as the
Imposition of Growth and Sustainability Levy, Price Stabilisation and
Recovery Levy, and Energy Debt Recovery Levy.

 

These fiscal policies would further increase the already-high-cost of
production and cash inflows for the mining companies.

 

Highlighting the mineral production and export for the country, Mr Mortoti
said the country's main minerals recorded mixed performances in 2022.

 

He said while gold and diamond output increased, the production of bulk
minerals, and bauxite declined year-on-year.

 

"The country's gold output, thankfully, increased from 2.8 million ounces to
3.7 million ounces in 2022, due to concurrent growth in the output of both
large and small-scale sectors. This translates into a 32 per cent increase
in production in the gold sub-sector," he stated.

 

-Ghanaian Times.

 

 

 

iPhone maker Foxconn to switch to cars as US-China tensions soar

iPhone maker Foxconn is betting big on electric cars and redrawing some of
its supply chains as it navigates a new era of icy Washington-Beijing
relations.

 

In an exclusive interview, chairman and boss Young Liu told the BBC what the
future may hold for the Taiwanese firm.

 

He said even as Foxconn shifts some supply chains away from China, electric
vehicles (EVs) are what will drive its growth in the coming decades.

 

As US-China tensions soar, Mr Liu said, Foxconn must prepare for the worst.

 

"We hope peace and stability will be something the leaders of these two
countries will keep in mind," 67-year-old Mr Liu told us, in his offices in
Taipei, Taiwan's capital.

 

"But as a business, as a CEO, I have to think about what if the worst case
happens?"

 

The scenarios could include attempts by Beijing to blockade Taiwan, which it
claims as part of China, or worse, to invade the self-ruled island.

 

Mr Liu said "business continuity planning" was already under way, and
pointed out that some production lines, particularly those linked to
"national security products" were already being moved from China to Mexico
and Vietnam.

 

He was likely to be referring to servers Foxconn makes that are used in data
centres, and can contain sensitive information.

 

Foxconn, or Hon Hai Technology Group as it is officially known, started off
in 1974, making knobs for TVs. Now it is one of the world's most powerful
technology companies, with an annual revenue of $200bn (£158.2bn).

 

It is best known for making more than half of Apple's products - from
iPhones to iMacs - but it also counts Microsoft, Sony, Dell and Amazon among
its clients.

 

For decades, it has thrived on a playbook perfected by multinational
corporations - they design products in the US, manufacture them in China and
then sell them to the world. That is how it grew from a small
component-making business to the consumer electronics giant it is today.

 

But as global supply chains adjust to souring ties between Washington and
Beijing, Foxconn finds itself in an unenviable spot - caught between the
world's two biggest economies, the very nations that have powered its growth
until now.

 

The US and China are at loggerheads over many things, from trade to the war
in Ukraine. But one of the biggest potential flashpoints is Taiwan, where
Foxconn is headquartered.

 

Caught in the middle

Taiwan has been a thorny issue for a long time but Chinese leader Xi
Jinping's repeated pledges of "reunification" have upset the uneasy status
quo. Meanwhile, the US, under President Joe Biden, has been more vocal in
its support for Taiwan in case of an attack.

 

Some US voices have crossed China's red line, calling for independence,
although the White House has reaffirmed its position that it maintains
diplomatic relations with Beijing and not Taipei.

 

There are hopes of a thaw with US Secretary of State Antony Blinken visiting
China this weekend. But there are also fears of a conflict - one US general
has estimated it could happen as soon as the next few years.

 

"The United States and China are engaged in what we see as strategic
competition," said Shihoko Goto, the deputy director for the Asia programme
at the Wilson Center in Washington DC.

 

"Foxconn wants to do business with both, but there can only be one winner."

 

But Mr Liu does not think it is that simple. For one, he said, Foxconn's
business model, which relies on US designs and Chinese manufacturing, is far
from over.

 

"We hire a lot of workers and most countries, including China, want to
support their workers," Mr Liu said, adding that the Chinese government
wants companies like Foxconn to keep going because of the huge number of
jobs they create.

 

Are rising tensions putting pressure on the model? "So far? We haven't seen
it," he told us.

 

But the West and its allies have called for countries and companies to
"de-risk" from China - a long-term shift to curb global reliance on China
that is yet to play out.

 

When asked if that was impacting business, Mr Liu responded cautiously.

 

Some overseas clients had pushed to move production out of China, he said,
but this was their decision to make, not Foxconn's.

 

"They get the push from their government about de-risking, and then they
will let us know."

 

The Covid challenge

Geopolitics aside, Covid-19 is another reason companies might consider
"de-risking" from China.

 

A mix of harsh Covid policies, a lack of space for quarantine and the
infectiousness of the Omicron variant led to protests and riots at Foxconn's
factory in Zhengzhou - the world's biggest iPhone plant - in late 2022.
Hundreds of workers, who feared the spread of the virus, fled the campus on
foot.

 

Mr Liu said the scenes that played out for the world to see were caused by a
lack of transportation due to Beijing's unyielding zero-Covid policy.

 

But when pressed further, he admitted that he should have handled things
differently.

 

"If the same situation occurs again, I would stop production altogether," he
said, reiterating that he would have made that decision even at the risk of
irking clients like Apple.

 

The company's success certainly rests on its impressive client base, but
Foxconn is just as indispensable to those clients.

 

To understand how essential it is to Apple, for instance, you just need to
look at how much of the iPhone is made by Foxconn - around 60%, by some
estimates. The factories in China make some of the most essential parts of
the device - camera modules, connectors, even the back of the phone casing.

 

iPhone on wheels

That expertise is also what Mr Liu is hoping will fuel Foxconn's next big
bet: electric cars.

 

"Look at this - this is a big iPhone, so we're very familiar with this," he
said, pointing to a panel that controlled the car he had taken us for a
drive in.

 

Built for families and priced for an aspiring global middle class, the shiny
white SUV is one of several models manufactured by Foxconn.

 

"The reason why we think this is a great opportunity for us is that with the
traditional gas engine, you have engines which are mostly mechanical. But
with EVs, it's batteries and motors," he explains.

 

That is a familiar language for a technology company like Foxconn, he added.

 

Foxconn's hopes to capture about 5% of the global electric vehicle market in
the next few years - an ambitious target given the firm has only made a
handful of models so far. But it is a gamble that Mr Liu is confident will
pay off.

 

"It doesn't make sense for you to make [EVs] in one place, so regionalised
production for cars is very natural," he added. Foxconn car factories will
be based in Ohio in the US, in Thailand, Indonesia and perhaps even in
India, he said.

 

For now, the company will keep focusing on what it does best - making
electronic products for clients. But perhaps not too far in the future,
Foxconn will start selling its own cars.

 

Either way, with the foray into electric cars, Foxconn is diversifying not
just production but also supply lines - both of which, Mr Liu believes, hold
the key to the company's future.-bbc

 

 

 

 

Maharashtra: The Indians taking on oil giants to stop $40bn refinery

An expansive laterite plateau, which is flanked by cliffside fishing
villages, mango orchards and ancient petroglyphs, is being acquired to make
way for the world's largest petrochemical refinery in western India's
ecologically fragile Konkan belt.

 

In late April, angry protests erupted in Ratnagiri district of the western
Indian state of Maharashtra when authorities began testing the soil for the
mega project to be built by a consortium of Indian state-run oil majors and
global giants Saudi Aramco and Abu Dhabi National Oil Company (ADNOC).

 

Thousands of villagers, led by women, braved the intense summer temperatures
and lay on the roads to prevent officials from entering the site. Many
others shaved their heads and went on a hunger strike to mark their dissent.

 

When talks with the villagers proved unsuccessful, police imposed a curfew
on their movement and used batons and teargas to disperse the protesters.
Women protesters and anti-refinery activists were detained, some for several
days.

 

Across the region, there's now simmering discontent over what villagers
allege were "undemocratic and coercive" tactics by authorities to saddle
them with a mammoth industrial project they've vehemently opposed for nearly
a decade.

 

Mounting opposition

"We don't want this chemical refinery. We will not allow dirty oil from an
Arab country to destroy our pristine environment," Manasi Bole, one of the
protesters, told the BBC.

 

Across the villages we travelled to, there was anxiety about the refinery.

 

"They say the plateau is a barren wasteland, but it's a source of water for
our springs, a place where we go to forage for berries, and grow vegetables"
Ms Bole said.

 

Aboard his trawler boat, fisherman Imtiaz Bhatkar said he was worried about
losing his livelihood every day because of the proposed refinery.

 

"We won't be allowed to fish in a 10km (6.2 mile) radius because the crude
tankers will be moored at sea," Mr Bhatkar said. "Nearly 30,000 to 40,000
people - local and from outside - depend on fishing in just this one
village. What will they do?"

 

The environment law that mobilised two million Indians

Mango growers in the region - famed for the prized Alphonso mangoes - told
us the slightest air pollution and deforestation would severely damage their
yields given how sensitive the Alphonso variety is to the vagaries of wind
and weather patterns.

 

Mired in politics

Successive state governments in Maharashtra have been expedient in their
stance on the refinery. They have supported it when in power and challenged
it when in opposition.

 

Initially planned as a $40bn (£31.6bn) venture, the size of the
60m-tonne-per-annum project has had to be cut by a third because of the long
delays in getting it off the ground.

 

The project was first announced in 2015 to be built in Nanar village, a few
kilometres away from the current site in Barsu village in Ratnagiri. The
plans were scrapped after it met with stiff opposition from the residents of
Nanar, its village council and environmental groups.

 

The state's previous chief minister Uddhav Thackeray revived it last year,
proposing Barsu as the new site.

 

But out of power now, he has changed his view in support of the locals.

 

Protesters lying on the roads to prevent police

Image caption,

In April, protesters braved intense summer temperatures and lay on the roads
to prevent police from entering the site

The present-day government - which comprises of a splintered faction of Mr
Thackeray's party and the BJP - says resistance to the project is
politically motivated

 

"This is a non-polluting green refinery. As the industries minister, it is
my job to clear the misunderstandings of people who are being misled by
external forces," Uday Samant, a state minister told the BBC.

 

Contrary to widespread claims, there will be no damage to the petroglyphs -
or rock carvings - in the region which are now part of UNESCO's tentative
world heritage list, he said.

 

Mr Samant also claimed the government has already acquired 3,000 of the
5,000 acres of land on which the refinery will be built.

 

What the BBC saw on the ground, however, belied some of his assertions.

 

The soil testing for the project, for instance, took place barely a few
metres away from some of the 170 petroglyphs on the plateau. Letters of
objection from at least six local village councils were brushed aside by
authorities, saying people from these hamlets didn't own the land on which
the refinery would come up.

 

The movement that shut down a copper plant

But locals say they were conned into selling land parcels at throwaway
prices to investors - some of which included politicians, police officials
and civil servants - without being informed that it would be given away for
a refinery project.

 

"The government is allowing the fate of this region to be decided by 200
investors rather than by its people," said Satyajit Chavan, an anti-refinery
activist who spent six nights in jail for social media posts urging
residents of the region to join in the protests.

 

Ecology vs economy

Divisions over the refinery have been drawn on several lines in this
tropical idyll, including geography, class and ideological leanings.

 

Away from the rural interiors, in the town of Rajapur, Suraj Pednekar, a
small business owner, insisted the project will vastly improve the fate of
Ratnagiri district, an industrial laggard in the country's richest province.

 

The government's own estimates suggest Maharashtra's GDP will get a 8.5%
boost.

 

Petroglyphs – or rock carvings – in the region are part of the UNESCO’s
tentative world heritage list

"Entire generations of young men and women have to go to Mumbai and Pune
every year to make a living," Mr Pednekar said. "Villages are being emptied
out because there are no jobs. If we get the refinery here and it employs
50,000 people, the population will go up and it will help local businesses.
Why should we resist that?"

 

His views are echoed by several others in the bigger towns whose traditional
livelihoods will not be directly affected by the project. But they are
drowned out by villagers.

 

"These so-called jobs will go to educated graduates, not the local
fishermen. We don't need such jobs," said Mr Bhatkar.

 

According to Ms Bole, even if the locals are given work, it will be lower
level jobs of sweepers or watchmen.

 

Across the state, there appears to be growing support for this people's
fight.

 

At a meeting in Pune city recently, local writers, poets, activists and
resistance groups vowed to galvanise massive crowds to mount pressure on
authorities to scrap the project.

 

"Our campaign will focus on urging people to not vote for politicians or
political parties who are in favour of the refinery," Mr Chavan told the
BBC.

 

>From Enron in the 1990s to an attempt by the French to construct a now
stalled nuclear power plant here in the early 2000s to various major
industrial proposals by Indian conglomerates like the Reliance Group and the
Tata Group, over the years, local resistance groups have made several
behemoths retreat from the Konkan.

 

Whether or not the proposed refinery meets the same fate remains to be seen.
But crowd after crowd of local villagers told us they will fight till their
very last breath till it goes away.

 

Yet again, it appears, this region has become a faultline between India's
economic ambitions and the ecological sensitivities of its people.-bbc

 

 

New Zealand: Economy slips into recession after interest rate hikes

New Zealand's economy has fallen into recession after the country's central
bank aggressively raised interest rates to a 14-year high.

 

Its gross domestic product (GDP) fell by 0.1% in the first three months of
the year, official figures show.

 

That followed a 0.7% contraction in the previous quarter, which means the
economy is in a "technical recession".

 

The Reserve Bank of New Zealand (RBNZ) has increased the cost of borrowing
sharply since October 2021.

 

New Zealand was one of the first countries to start raising rates in the
wake of the pandemic and has outpaced the US Federal Reserve. Last month,
the RBNZ increased its main interest rate to 5.5%.

 

People in New Zealand, who were already facing rising prices, are now
feeling the impact of higher rates as mortgage repayments and the cost of
other loans jump.

 

"Interest rates are crippling," David Jordan, an Auckland-based web engineer
told the BBC.

 

"I have seen many job losses in my industry as start-ups try to save money,
though consultancies working with big global firms seem to be faring
better," he added.

 

Central banks around the world increased the cost of borrowing as they tried
to curb price rises that were triggered as economies opened up after the
Covid lockdowns.

 

Inflation was also driven higher by the rising cost of everything from fuel
to food, due to the Ukraine war.

 

In the first three months of this year, New Zealand's economy was also
impacted by Cyclones Hale and Gabrielle and teachers' strikes.

 

"The adverse weather events caused by the cyclones contributed to falls in
horticulture and transport support services, as well as disrupted education
services," Jason Attewell, economic and environmental insights general
manager at Statistics New Zealand said in a statement.

 

A technical recession is defined by an economy shrinking for three-month
periods, or quarters, in a row.

 

Earlier, the RBNZ signalled that it had no further plans for further hikes.
The contraction adds to expectations that the central bank will not raise
rates again in the foreseeable future.-bbc

 

 

 

We Soda scraps UK share listing in blow to London

The world's largest producer of natural soda ash has scrapped plans to sell
shares on the London Stock Exchange less than two weeks after announcing the
move.

 

We Soda reportedly wanted to raise £600m through a flotation, valuing the
firm at more than £6bn.

 

However, the company said UK investors "remain extremely cautious" and We
Soda was unable to reach a fair valuation.

 

We Soda's reversal is a blow to the UK's reputation as a financial centre.

 

Just two weeks ago, the firm's chief executive, Alasdair Warren, declared
"London still works", and said that the London market would "well understand
our business".

 

Prior to that Arm Holdings, the Cambridge-based microchip designer, chose
the US over the UK despite lobbying by the UK government to list its shares
in London.

 

Earlier this year, building materials giant CRH said it would be moving its
main share listing from London to New York.

 

We Soda's flotation would have been the UK's largest so far this year and
the company would have entered the blue chip FTSE 100 index.

 

But this week, Mr Warren said: "This extreme investor caution in London
meant that we were unable to arrive at a valuation that we believe reflects
our unique financial and operating characteristics."

 

He told the BBC's Today programme that the valuation was "not just a UK
issue" but a "broader European issue".

 

Mr Warren said companies usually accept that there will be a discount on the
price for shares during initial public offerings (IPOs).

 

"Typically it's 15 to 25%," he said. "When that discount effectively doubles
then you've got to consider whether it makes sense to launch.

 

"The valuation just was not at the level that we thought made any sense for
our company."

 

Mr Warren continued to back London as a viable place to sell its shares. But
he said that We Soda would look to grow in North America, adding: "So
perhaps when we reconsider coming back to the market, that will be a
credible alternative."

 

He said: "It's all going to depend on initial public offering market
conditions across Europe, the state of our business where we sit in terms of
the balance between Europe and North America, and we'll have to evaluate it
at the time."

 

Presentational grey line

Does it matter where a business chooses to list?

Pension funds, or individual investors, can buy shares whether they are
listed in the UK, US or one of the European exchanges.

 

But a UK listing generates significant ancillary business for a UK financial
services industry that still makes up more than 10% of the UK's entire
economy and contributes more than 10% of all taxes paid here.

 

Accountants, lawyers, financial PR firms and others feed off the fees that
UK listings generate.

 

The exodus has not gone unnoticed by the government. It has been scrambling
to try to make the UK a more attractive place for companies to set out their
stall.

 

Is London's stock market losing its lustre?

Presentational grey line

We Soda is owned by Ciner Group, a Turkish industrial conglomerate
controlled by billionaire Turgey Ciner, but has its headquarters in London
and Europe is its biggest market.

 

The firm produces soda ash which is found in washing powder detergents and
used in the production of glass, solar panels and batteries for electric
vehicles.

 

According to consultancy firm EY, the amount raised through share flotations
on the London Stock Exchange fell by 90% last year.-bbc

 

 

 

The workers already replaced by artificial intelligence

Until recently Dean Meadowcroft was a copywriter in a small marketing
department.

 

His duties included writing press releases, social media posts and other
content for his company.

 

But then, late last year, his firm introduced an Artificial Intelligence
(AI) system.

 

"At the time the idea was that it would be working alongside human lead
copywriters to help speed up the process, essentially streamline things a
little bit more," he says.

 

Mr Meadowcroft was not particularly impressed with the AI's work.

 

"It just kind of made everybody sound middle of the road, on the fence, and
exactly the same, and therefore nobody really stands out."

 

The content also had to be checked by human staff to make sure it had not
been lifted from anywhere else.

 

But the AI was fast. What might take a human copywriter between 60 and 90
minutes to write, the AI could do in 10 minutes or less.

 

Around four months after the AI was introduced, Mr Meadowcroft's four-strong
team was laid off.

 

Mr Meadowcroft can't be certain, but he's pretty sure the AI replaced them.

 

"I did laugh-off the idea of AI replacing writers, or affecting my job,
until it did," he said.

 

The latest wave of AI hit late last year when OpenAI launched ChatGPT.

 

Backed by Microsoft, ChatGPT can give human-like responses to questions and
can, in minutes, generate essays, speeches, even recipes.

 

Other tech giants are scrambling to launch their own systems - Google
launched Bard in March.

 

While not perfect, such systems are trained on the ocean of data available
on the internet - an amount of information impossible for even a team of
humans to digest.

 

So that's left many wondering which jobs might be at risk.

 

Earlier this year, a report from Goldman Sachs said that AI could
potentially replace the equivalent of 300 million full-time jobs.

 

Any job losses would not fall equally across the economy. According to the
report, 46% of tasks in administrative and 44% in legal professions could be
automated, but only 6% in construction and 4% in maintenance.

 

The report also points out that the introduction of AI could boost
productivity and growth and might create new jobs.

 

There is some evidence of that already.

 

This month IKEA said that, since 2021, it has retrained 8,500 staff who
worked in its call centres as design advisers.

 

The furniture giant says that 47% of customer calls are now handled by an AI
called Billie.

 

While IKEA does not see any job losses resulting from its use of AI, such
developments are making many people worried.

 

A recent survey by Boston Consulting Group (BGC), which polled 12,000
workers from around the world, found that a third were worried that they
would be replaced at work by AI, with frontline staff more concerned than
managers.

 

Jessica Apotheker from BGC says that's partly due to fear of the unknown.

 

"When you look at leaders and managers, we have more than 80% of them that
use AI at least on a weekly basis. When you look at frontline staff, that
number drops to 20% so with the lack of familiarity with the tech comes much
more anxiety and concern on the outcomes for them."

 

But perhaps there is good reason to be anxious.

 

For three months last year, Alejandro Graue had been doing voiceover work
for a popular YouTube channel.

 

It seemed to be a promising line of work, a whole YouTube channel in English
had to be re-voiced in Spanish.

 

Mr Graue went on holiday late last year confident that there would be work
when he returned.

 

"I was expecting to have that money to live with - I have two daughters, so
I need the money," he says.

 

But to his surprise, before he returned to work, the YouTube channel
uploaded a new video in Spanish - one he had not worked on.

 

"When I clicked on it, what I heard was not my voice, but an AI generated
voice - a very badly synced voiceover. It was terrible. And I was like, What
is this? Is this like going to be my new partner in crime like the channel?
Or is this is this going to replace me?" he says.

 

A phone call to the studio he worked for confirmed the worst. The client
wanted to experiment with AI because it was cheaper and faster.

 

That experiment turned out to be a failure. Viewers complained about the
quality of the voiceover and eventually the channel took down the videos
that featured the AI-generated voice.

 

For more on AI watch Talking Business with Aaron Heslehurst

But Mr Graue did not find that very comforting. He thinks the technology
will only improve and wonders where that will leave voiceover artists like
him.

 

"If this starts to happen in every job that I have, what should I do? Should
I buy a farm? I don't know. What other job could I look for that is not
going to be replaced as well in the future? It's very complicated," he says.

 

If AI is not coming for your job then it is likely you might have to start
working with one in some way.

 

After a few months of freelance work, former copywriter Dean Meadowcroft
took a new direction.

 

He now works for an employee assistance provider, which gives wellbeing and
mental health advice to staff. Working with AI is now part of his job.

 

"I think that is where the future is for AI, giving quick access to
human-led content, as opposed to completely eliminating that human aspect,"
he says.-bbc

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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

 


 

 

 

 

 

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