Major International Business Headlines Brief::: 27 June 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 27 June 2023 

 


 

 


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ü  South Africa: Govt Needs R210 Billion for Electricity Grid Upgrade

ü  Kenya: President Ruto Assents to the Finance Bill

ü  Kenya: President Ruto to Ban Imported Shoes in 2 Years

ü  Seychelles Assesses Emergency Preparedness for Main Port and Airport

ü  South Africa: Eskom Granted Postponement to Meet Minimum Emission
Standards

ü  Kenya: Govt Committed to Reform Boda Boda Business, Stop Criminalising
the Sector - President Ruto

ü  South Africa: Global Development Financing Must Achieve Local Benefits

ü  Nigeria: Lagos-Ibadan Expressway Reconstruction - Commuters, Motorists
Agonise Over Gridlock

ü  Nigeria: Subsidy - Lack of License, Foreign Exchange, Others Hinder Fuel
Importation

ü  Nigeria: Naira - Importers Groan As Customs Raise Exchange Rate to
N589.45/$1

ü  Meta: Facebook owner launches virtual reality subscription service

ü  Supermarkets under pressure to explain high prices

ü  UK could be starved of energy, warns North Sea boss

ü  HSBC to leave Canary Wharf tower for new world headquarters

ü  Follow EU regulation to keep costs low, says Ford boss

 


 

 


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The

South Africa: Govt Needs R210 Billion for Electricity Grid Upgrade

Electricity Minister Kgosientsho Ramokgopa says that approximately R210
billion (about U.S.$11 billion) is needed to upgrade the electricity
transmission grid infrastructure to accommodate future renewable energy
projects, reports IOL. At a Sunday June 25, 2023 briefing, he said that the
government planned to find "creative ways" to fund this through the private
sector. Ramokgopa added that progress is being made in collaboration with
local governments and municipalities to expand embedded energy and renewable
energy projects at the municipal level. These initiatives aim to increase
electricity generation in the country. The resumption of Units 1, 2, and 3
at Kusile Power Station is expected to further improve the energy
availability factor (EAF) at Eskom. This will allow Eskom to do more planned
maintenance on its power stations and improve energy efficiencies by 1000MW
over the next six months.

 

 

Deputy President Mashatile's Lavish Lifestyle Reported

 

News24  is reporting that Deputy President Paul Mashatile has been leading a
life of luxury and excess, frequently using multimillion-rand homes owned by
wealthy individuals connected to government contracts. The news outlet
reports that one of Mashatile's biggest benefactors is Edwin Sodi, a
businessman currently on trial for corruption and fraud charges. Mashatile
did not respond to inquiries or requests for comment on the matter.

 

Fatal N2 Collision in KwaZulu-Natal Causes Traffic Disruption

 

Two people lost their lives in a head-on collision between two trucks on the
N2 in Nkwazi, located in northern KwaZulu-Natal, reports Times Live. Three
critically injured individuals are trapped, and efforts are being made to
rescue them. The northbound lane is completely closed, while one southbound
lane remains open, with traffic being redirected. Unfortunately, the
situation has been compounded by one of the trucks carrying alcohol, which
has resulted in traffic congestion. IPSS medical rescue's Samantha Meyrick
reported that the truck carrying alcohol was being looted.

 

-South African news

 

 

 

Kenya: President Ruto Assents to the Finance Bill

Nairobi — President William Ruto has signed into law the Finance Bill that
was approved by the National Assembly last week.

 

Officials said he signed the Bill into law on Monday morning at State House,
Nairobi.

 

“President William Ruto has assented to the Finance Bill,” State House Press
Secretary Emmanuel Talam said.

 

The controversial Bill was passed during a stormy session largely boycotted
by the Opposition.

 

Following the passage, President Ruto has affirmed that the tax bill will
enable his administration to deliver on their manifesto pledge to Kenyans
and cut on huge dependence on external debt.

 

The Finance Bill seeks to raise additional revenue in taxes in the region of
Ksh130 billion to finance the Kenya Kwanza administration’s Ksh3.6 trillion
budget for the 2023/24 financial year.

 

Among the key contentious issues in the Bill include the housing levy, which
was amended to 1.5 percent of gross pay from the initial 3 percent.

 

 

Employers are required to remit 1.5 percent housing levy deducted from
employees to the government in nine days to fund affordable housing scheme.

 

Employers will also be required to remit their top-up within the same period
within nine days failure to which they face a penalty equivalent to two
percent of the unpaid funds for every month the same remain unpaid.

 

With the bill victory, Kenyans are set to brace themselves for high cost
living following the increase on Value Added Tax (VAT) on petroleum products
from 8 to 16 per cent.

 

This will result in an increase of over Sh12 per litre of diesel and super
petrol. It could see super petrol increase to around Sh200 a litre.

 

 

Bus fares as well as commercial vehicle fares are set to increase which will
raise transport costs for commuters and the cost of production for those in
the logistics sector.

 

The Energy and Petroleum Regulatory Authority (Epra) is expected to announce
higher fuel prices following the assent of the bill.

 

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.

 

Opposition leader Raila Odinga has vowed to lead mass protests after a
public rally in Kamukunji set for Tuesday.

 

Speaking during a press conference on Thursday, June 22, 2023, Martha Karua
and other Azimio leaders invited Kenyans to a consultation at the Kamukunji
Grounds on Tuesday, June 27, 2023.

 

Azimio Coalition has expressed readiness to partner with civil society in
pushing for their agenda for the sake of Kenyans who are suffering once he
jets back to the country.

 

The Odinga-led coalition had suspended the weekly protest to give dialogue a
chance through a 14-member bi-partisan team who fail to reach a consensus on
sticky issues.

 

-Capital FM.

 

 

 

Kenya: President Ruto to Ban Imported Shoes in 2 Years

Nairobi — President William Ruto will ban imported shoes in two years to
support the local leather industry has been facing cheap products from
abroad.

 

Instead, the Head of State said that the country will use its own skins to
make the products.

 

He said that the country's leathers were being given to dogs while we were
buying those from abroad at exorbitant prices between Sh20,000 and Sh40,000.

 

"Within the next two years, I will ban shoes imported from abroad. We will
be making shoes with leather from our cows," President Ruto said on Sunday
during a Sunday service in Kajiado County.

 

To support the industry, the Government has allocated nearly Sh2 billion for
the treatment of cowhide to improve the local supply chain.

 

This, he said, will increase earnings for farmers who sell their hides at
throw-away prices.

 

Local farmers have resorted to throwing goat and cow skins due to the cheap
prices that they fetch at local tanneries, which has, in turn, impacted
local shoe production.

 

Fierce competition from countries such as America, and China, among others,
whose shoes are way cheaper has also made shows making business in Kenya not
so lucrative.

 

-Capital FM.

 

 

 

 

Seychelles Assesses Emergency Preparedness for Main Port and Airport

There is a need for command posts at the Victoria Port and Mahe
International Airport to shift from an operational to a management mindset
when dealing with emergencies, said an officer of Seychelles' Disaster Risk
Management Division (DRMD).

 

The chief risk management officer, Daniel Cetoupe, made the statement on
Friday, after two days of emergency preparedness tabletop exercises at the
port and airport.

 

Following the operationalisation of Seychelles' National Integrated
Emergency Management plan, DRMD has identified a series of plans that need
to be relooked at. The priority is the port and the airport given the
economic importance they have for the country as the two entry points.

 

 

Cetoupe told SNA that they are re-looking at their plans to make it a
national one.

 

"The internal plans and procedures of these two places are okay, but the
problem lies in how responders connect with their plans," he said.

 

DRMD in collaboration with the World Bank, supported the Seychelles Ports
Authority (SPA) and the Seychelles Civil Aviation Authority (SCAA) with the
review of the National Port and Airport Emergency Plan, which took place
from June 20-23. The partners involved undertook two days of training and
tabletop exercises.

 

The consultant from the World Bank in risk management, disaster, and alert
system, Darmen Ellayah, shared that the plan needs to be a strong one as
Seychelles is exposed to risks and has only one international airport and
port.

 

 

"As Seychelles is also far from other countries, waiting for foreign
assistance will take more time. As such, it is important that all local
partners become more resilient to deal with emergencies," said Ellayah.

 

On both days at the Silver Level, the port and the airport had to deal with
an artificial emergency scenario.

 

The aim of the exercises was to identify gaps and limitations, as well as
assess how the different partners understand and undertake their roles and
responsibilities under the emergency plan.

 

"We still have some challenges in the sense that people see themselves as
being more operational rather than making decisions. We have a tendency
during emergency to respond to an emergency, rather than manage it," said
Cetoupe.

 

He added that "we are looking at how they take collective decisions and not
the operation itself in response to the emergency. They need to set their
priorities, and objectives, and identify the resources they need to manage
all this, as well as how the flow of communication needs to take place at
the Silver Level to the Platinum Level. There is the need for such exercises
to be conducted more often so that the participants can better work
together."

 

Seychelles adopted the Integrated Emergency Management System which has four
levels of emergency management. At the Bronze Level, are the first
responders, at Silver Level there - are the command posts. The National
Emergency Operation Centre is at the Gold Level and at the Platinum Level
brings together ministers.

 

-Seychelles News Agency.

 

 

 

South Africa: Eskom Granted Postponement to Meet Minimum Emission Standards

The National Air Quality Officer (NAQO) has granted Eskom a postponement to
meet the Minimum Emission Standards (MES) at the Kusile Power Station,
subject to certain strict conditions.

 

The Department of Forestry, Fisheries and the Environment (DFFE) said the
postponement is from 5 June 2023 to 31 March 2025.

 

"The postponement application was necessitated by the failure of Kusile west
stack on 23 October 2022. The failure limited the power station's ability to
operate three commissioned generating units (units 1, 2 and 3). These units
would each provide some 700MW in total, 2 100MW to the national grid and
potentially reduce load shedding by two levels," the department said on
Sunday.

 

 

Eskom's short-term technical solution is to return the units through
construction of three temporary stacks that will bypass the Flue Gas
Delsuphurisation (FGD) plant while repairs to the affected stack are
underway.

 

The operation of these three temporary stacks will enable the return of 2
100MW to the grid to reduce load shedding.

 

NAQO, in concurrence with the Nkangala District Municipality as the
Atmospheric Emissions License Authority, considered Eskom's postponement
application, the impacts on health and environment, and balancing this
against the negative impacts of electricity supply, and determined that the
application should be granted.

 

The application was granted under the following conditions:

 

Eskom is required to take measures to mitigate harm caused by the exposure
of sulphur dioxide to its employees and surrounding communities. This must
include, at minimum, independent health screenings and the referral of
people requiring healthcare to the appropriate public health facilities for
treatment.

 

 

Eskom is required to submit a detailed plan on the mitigation measures it
intends to put in place within 21 days of receipt of the decision. This plan
will be approved by the NAQO and Nkangala District Municipality.

 

Eskom is required to submit quarterly progress reports on the implementation
of the compliance road map and commitments made towards recommencing use of
the Flue Gas Delsuphurisation.

 

This decision must be reflected in Kusile Power Station AEL to be of any
force and effect.

 

In addition to these conditions, Eskom also has to meet any requirements set
by the Nkangala District Municipality.

 

This decision may be reviewed by the NAQO with the concurrence of Nkangala
District Municipality during the postponement period in line with the
National Environmental Management Air Quality Act provisions.

 

-SAnews.gov.za.

 

 

 

Kenya: Govt Committed to Reform Boda Boda Business, Stop Criminalising the
Sector - President Ruto

Nairobi — President William Ruto said the Government is formalizing the
sector that creates 1.5 million jobs, generating Sh300 billion a year.

 

Besides organising them in SACCOs, he said the exercise will also include
the administration of continuous training and maintenance of a database of
operators.

 

This, he explained, will provide the Government with a platform to improve
the well-being of operators.

 

"We will work with all stakeholders to ensure the training and licensing of
Boda Boda riders does not exceed Sh2500," he added.

 

He made the remarks during the launch of the Boda Boda Empowerment Programme
at the Kenyatta International Convention Centre, Nairobi.

 

 

Present were Cabinet Secretaries Kipchumba Murkomen (Roads and Transport),
Susan Nakhumicha (Health), Nairobi Governor Johnson Sakaja, and Boda Boda
riders from across the country led by their National Executive Chairman
Kevin Mubadi.

 

The Head of State said formalising the sector will also facilitate access to
affordable credit through the Hustler Fund.

 

He noted that the programme's initial phase will train 200,000 riders
selected from all the 47 counties.

 

The training will entail road safety, traffic regulations, accident
management, entrepreneurship and financial management.

 

The President said the Government is reducing taxes on electric motorbike
parts to reduce the cost of the final product and encourage its uptake.

 

"You will save upto 68 per cent to power electric motorbikes and save upto
30 per cent in servicing cost," he said.

 

 

The President called on County Governments to designate Boda Boda zones as
well as spaces for them to pick up and drop off their pillion riders.

 

He urged the riders to steer clear of politics and focus on growing their
incomes.

 

Murkomen said the Government is keen on restoring law and order in the Boda
Boda sector and promote road safety.

 

"We will ensure all Boda Boda are members of a SACCO."

 

Ms Nakhumicha asked the Boda Boda riders to add their dependents in NHIF
cover for them to benefit from its services.

 

Mr Sakaja said the use of electric motorbikes will reduce the cost of
operating bodaboda and increase riders' earnings.

 

He said it will also help in the country's environmental conservation
efforts.

 

Mubadi lauded the government for rolling out the affordable housing
programme that will give bodaboda riders an opportunity to own homes.

 

-Capital FM.

 

 

 

South Africa: Global Development Financing Must Achieve Local Benefits

With improved funding for South Africa's Just Energy Transition, the country
will be able to invest significantly in bolstering the electricity grid and
new renewable energy generation.

 

In his weekly newsletter to the nation on Monday, President Cyril Ramaphosa
said this will significantly help to end load shedding.

 

The President's newsletter comes after his participation at the New Global
Financing Pact Summit in Paris last week, where several world leaders
gathered.

 

"With improved funding for our Just Energy Transition, we will be able to
invest substantially in strengthening our electricity grid and new renewable
energy generation.

 

 

"This will make a significant contribution to ending load shedding and
securing a reliable and affordable supply of electricity. This will, in
turn, promote economic growth, make our exports more competitive and create
employment," he said.

 

The President explained that the funding will enable the country to develop
new industries, such as electric vehicles and green hydrogen, which will
increase the country's industrial output and create jobs for the economy of
the future.

 

Through such funding, investment in infrastructure, expanding the capacity
of the economy and reducing the costs for emerging businesses will be
increased.

 

"There are immediate challenges that we are addressing as a country. We are
working to accelerate the implementation of our Energy Action Plan and
Economic Reconstruction and Recovery Plan so that we can end load shedding,
grow the economy and create jobs," he said.

 

 

At the same, the President stressed the importance of asserting the needs
and interests of developing economies in international fora, so that the
country can raise the funds that are required to achieve a just transition
and advance developmental objectives.

 

This is important not only for people in South Africa, but for people
throughout the Global South.

 

In summarising the outcomes of the Summit, French President Emmanuel Macron
said: "More than ever, international solidarity and transfers from the
richest countries to the most vulnerable ones are essential to shape a
fairer world."

 

President Ramaphosa said this is a view that African leaders share, and they
will continue to work with other countries across the world to ensure that
it becomes a reality.

 

Reflecting on the summit, President Ramaphosa reiterated that global
development financing, if properly directed and provided on a significant
scale, can make a huge difference to the lives of people living in countries
like South Africa.

 

 

During the summit, the President told world leaders that the Global South
"does not want to be treated like beggars, as if we are asking for charity".

 

"The industrialisation and economic development of the Global North was
achieved at the expense of the Global South. Wealthier countries therefore
have both an obligation and an interest in supporting development and
climate action in poorer countries.

 

"As South Africa, we argued for a fundamental overhaul of the international
financial institutions that are responsible for supporting development
across the world," he said.

 

The President called for a restructuring of bodies such as the World Bank
and International Monetary Fund to be more inclusive and responsive, saying
they should provide funding in a way that does not increase the debt burden
of countries that are already struggling to service their debt.

 

The President said the international community must appreciate the scale of
the challenge and make sure that sufficient funds are available.

 

As a start, industrialised countries need to meet their existing
commitments, such as mobilising $100 billion a year for climate action in
developing economies. He said that even as this goal is achieved, much more
money will be needed to ensure an effective response to climate change.

 

"While the Paris Summit is not a formal structure through which
international agreements are reached, it is significant that there was broad
consensus among most of the countries that much more funding is needed and
that international development banks needed to be significantly reformed to
direct that funding to where it will have the greatest impact.

 

"There was general agreement that additional private sector funding should
be mobilised and that funding should be provided on better terms," he said.

 

-SAnews.gov.za.

 

 

 

Nigeria: Lagos-Ibadan Expressway Reconstruction - Commuters, Motorists
Agonise Over Gridlock

FOR some days now, commuters, motorists and residents living along the
Lagos-Ibadan Expressway, who ply the ever-busy expressway, have been passing
through hell as a result of the ongoing unending reconstruction work on the
road.

 

The truth of the matter is that it is not that the road users have not been
going through pains resulting from the heavy gridlock on both sides of the
dual carriageway before now. The untold hardship and pains have been there
since the commencement of the reconstruction of the road by construction
giant, Julius Berger Nigeria Plc about five years ago. But these few days
beginning from last week Friday, the traffic situation has worsened thereby
causing untold hardship on road users.

 

 

Specifically, starting from last week Friday, the whole stretch of the road
was on lock down from morning to the early hours of Saturday for commuters
and motorists due to the reconstruction of the expressway at Berger.

 

The effect of the barricade is responsible for massive traffic build-up on
both sides of the road that is now causing commuters and motorists several
hours to get to their destinations.

 

The gridlock continued Saturday and Sunday (yesterday). For Lagos-bound
commuters and motorists, the gridlock was compounded by ram sellers and
buyers at Kara Ram market as traffic extended from the long bridge to Berger
yesterday.

 

Meanwhile, efforts to get the reaction of the Federal Controller of Works in
Lagos State, Engr. Olukorede Keisha, were unsuccessful.

 

Lagos proposes suspension for Sallah

 

However, Lagos State Government has urged the Federal Ministry Works and
Housing to suspend further work till after the Eid-el-Kabir celebration.

 

The Permanent Secretary, Lagos State Ministry of Transportation, Engr.
Abdulhafiz Toriola, told Vanguard that the Ministry of Transportation has
approached the Controller of Works in Lagos of the need to suspend further
work along the axis to ease off expected influx of vehicles and reduce
hardship during the coming Eid-el-Kabir, Muslim celebration, scheduled to
commence on Wednesday.

 

-Vanguard.

 

 

 

Nigeria: Subsidy - Lack of License, Foreign Exchange, Others Hinder Fuel
Importation

Barely a month after deregulation, operators in the downstream sector have
not been able to import petrol into Nigeria, due mainly to a lack of license
and foreign exchange.

 

Checks by Vanguard, weekend, indicated that many oil marketers that applied
for license are still waiting for the Nigerian Midstream and Downstream
Petroleum Regulatory Authority, NMDPRA, to release it.

 

It also showed that the six companies, including Eterna, which got the
license have not started importing the product into the country.

 

The checks further indicated that despite the floatation of foreign exchange
rates by the Central Bank of Nigeria, CBN, many oil companies still find it
difficult to go into business.

 

 

A visit to many private depots in Apapa, Lagos, showed that the oil
marketers are not contemplating importation in the coming weeks because of
uncertainties currently staring oil marketers in the face.

 

This means the Nigerian National Petroleum Company Limited is the only
entity still importing fuel into the country.

 

We have not started importing fuel -- oil marketers

 

The national president, Independent Petroleum Marketers Association of
Nigeria, IPMAN, Elder Chinedu Okoronkwo, could not be reached for comments,
yesterday.

 

But in an interview with Vanguard, yesterday, the national operations
controller of IPMAN, Mike Osatuyi, who noted said the oil marketers have not
yet commenced the importation, said: "The cost of importing petrol has
tripled because of subsidy withdrawal.

 

"We now need more funds to put into the business than before. Remember the
exchange rate of the naira has also increased from over N400/ a dollar to
over N700/per a dollar.

 

 

"This means that a lot of funds are needed than before. it is not easy for a
single company to bring out that level of money. So, we are discussing with
the banks.

 

"It will take some time to conclude the various discussions before securing
funds for the importation. The price of petrol may be high at the initial
period, but it would drop later as many oil marketers begin to import the
product."

 

Ex-depot price rises to N505 per litre

 

Already, he said the ex-depot price of the product has increased from over
N400 per litre to N505 over the weekend, thus forcing the independent
marketers that lift the product from private depots to sell at different
prices, ranging from N510 -N530, depending on location, to recover cost.

 

It takes time to get license --Applicant

 

A chief executive officer, who pleaded anonymity, said: "We have applied for
license to import. We are waiting on the regulator. We also need huge
foreign exchange at a competitive rate because it cost billions of naira to
bring a mother vessel into the country. This has to be done in an
environment of certainty.

 

"We cannot dabble into fuel importation at this time. Adequate caution is
required from everyone, including the banks that will provide the funds, to
ensure that such investment could be recovered at least with minimal profit.

 

"It is a business that one can easily get his or her fingers burnt. We are
currently watching the investment landscape and will import at the right
time."

 

Regulator keeps mum

 

The Authority Chief Executive, Nigerian Midstream and Downstream Petroleum
Regulatory Authority, NMDPRA, Farouk Ahmed, did not respond when Vanguard
reached out yesterday

 

Transporters charge high fares

 

Meanwhile, transporters, including Uber, have increased their fares by more
than 100 per cent on all routes.

 

For instance, it now costs over N2,000 for commuters to move from Ikorodu to
Mile 2 in Lagos, a distance that used to be below N1,000.

 

It also cost more than N1,500 to travel from Marina to Ajah, a distant that
used to be less than N1,000.

 

-Vanguard.

 

 

 

Nigeria: Naira - Importers Groan As Customs Raise Exchange Rate to
N589.45/$1

>From today, June 26, 2023, importers will pay more import duty for the
clearance of their cargoes at the nation's seaports as the Central Bank of
Nigeria (CBN) has increased the official exchange rate used by the Nigeria
Customs Service (NCS) to calculate import duties and levies from N422.30/$1
to N589/$1.

 

The increment recorded was as a result of the floating of naira that allowed
market forces determine the exchange rate of its currency. When the CBN
dictated the rates, the cargo clearance exchange rate on the customs single
window was N422.30/$.

 

However, maritime experts have argued that the new customs exchange rate
effectively means that there would be an increase in import duty payable by
clearing agents to the Customs service.

 

 

Confirming the increment to LEADERSHIP, the public relations officer,
Association of Nigerian Licenced Customs Agents (ANLCA), Comrade Omome
Monije, rued the increment saying from Monday, clearing agents will pay more
for cargo clearance.

 

She said the increment will affect vehicle clearance saying clearing agents
should engage their clients to forestall disagreement.

 

"The federal government has increased the Dollar exchange rate, from N422.30
to N589.45 to a dollar. What it implies in simple terms is that, if clearing
agents have a Debit Note as at Friday that has not been paid on the system
or Pre-Arrival Assessment Results (PAAR) or they have given you the value
and you have not captured, it has affected you directly on Monday."

 

"Once there is a change in the portal, there is nothing anybody can do about
it. But if you have captured or access your work, you are good to go and
your consignment would be released for you if you don't have any
infraction."

 

She explained further that clearing agents that hasn't done capturing of
their consignment even if they have captured their consignment would have to
pay with the old price.

 

"Whether you have collected your value, whether you have a PAAR, if you have
not done your assessment as of now, you can't capture with that old rate.
Especially for the Roll On Roll Off (RORO) or those that are doing PARR door
to door. It's a Federal government policy. We stakeholders can't do anything
for now, saying it's the prerogative of FG to intervene and stabilize the
foreign exchange market."

 

Also speaking, a Licensed Customs Agent, Remilekun Sikiru, confirmed that
the new rate has been effected on the Nigeria Customs Service portal.

 

According to him, the Customs duty payable on vehicles have increased
astronomically.

 

"For instance, the total duty payable on a Toyota Camry was N901,000 before
now, but it has now increased to N1,270.000 Duty payable on Venza according
to him was N1.632million before, but it is now increased to N2.278million.
In the same vein, Toyota Corolla total duty payable was N786,000 before, but
it has now increased to N1.097million."

 

The Secretary of Association of Nigerian Licensed Customs Agents (ANLCA) at
Tin Can Island Port, Barr Ovien Imonitie, said as at last check on Saturday
morning, the exchange rate has increased $589.

 

Barr Ovien said that the New Federal Govt Approved Exchange Rate for Doing
Business both Import & Export has increased, even as he advised all clearing
agents to adjust their Custom Duty Payment on all imported Goods.

 

-Leadership.

 

 

 

Meta: Facebook owner launches virtual reality subscription service

Facebook owner Meta has launched a virtual reality (VR) subscription service
as it tries to make that part of its business profitable.

 

Meta says paying users will get access to two new games a month.

 

For the first three months of the year, the parent company of Instagram saw
a $4bn (£3.1bn) loss at its VR unit.

 

Meta faces competition from firms including technology giant Apple, which
unveiled its highly anticipated mixed-reality headset this month.

 

On Monday, the company said the Meta Quest+ service, which costs $7.99 a
month or $59.99 for an annual subscription, was compatible with its Quest 2,
Quest Pro and upcoming Quest 3 headsets.

 

In 2021, Meta chief executive Mark Zuckerberg unveiled plans to build a
"metaverse" - an online world where people can play games, work and
communicate in a virtual environment, often using VR headsets.

 

"Over time, I hope that we are seen as a metaverse company and I want to
anchor our work and our identity on what we're building towards," Mr
Zuckerberg said.

 

In February last year, Meta unveiled several ambitious artificial
intelligence projects, and Mr Zuckerberg described AI as "the key to
unlocking the metaverse".

 

The company reported a profit of $5.7bn for the first three months of this
year, surpassing market expectations.

 

However, its Reality Labs division, which produces VR headsets and other
products, reported a net loss of $4bn for the period.

 

Earlier this month, Apple unveiled its Vision Pro mixed-reality headset, in
its first major hardware launch in almost a decade.

 

Apple's headset, which will be released early next year in the US, will be
priced at $3,499.

 

That is considerably more than other headsets currently available in the
market. Meta's VR headsets are priced between $299.99 and $999.99.-bbc

 

 

 

 

Supermarkets under pressure to explain high prices

Supermarket executives will be questioned by MPs on Tuesday over why food
prices are still rising as some wholesale costs are falling.

 

The UK's biggest grocers - Tesco, Sainsbury's, Asda and Morrisons - will
face a parliamentary committee examining the cost of a weekly shop.

 

The price of goods continues to grow but not as steeply as in recent months,
according to the latest figures.

 

Food inflation reached 14.6% in June the British Retail Consortium said.

 

That is down from 15.4%% in the year to May.

 

British Retail Consortium chief executive Helen Dickinson said: "If the
current situation continues, food inflation should drop to single digits
later this year."

 

However, food prices remain a key reason why the overall rate of inflation
in the UK remains stubbornly high.

 

And with many hard-pressed households also facing rising rents or mortgage
costs, there is pressure on the supermarkets to defend the stubbornly high
cost of shopping.

 

On Tuesday, MPs will grill senior supermarket bosses about food and fuel
price inflation, asking if prices will come down this year.

 

Politicians, trades unionists and the Governor of the Bank of England have
all questioned why prices on supermarket shelves have not fallen as rapidly
as the cost of some ingredients such as wheat.

 

They have suggested that retailers may be failing to pass on savings and are
banking the profit instead.

 

The Competition and Markets Authority is examining the issue.

 

Supermarkets deny they are profiteering from high prices and claim their
profits are being squeezed.

 

The grocers say they are cutting prices where they can, arguing falls in
commodity prices take time to filter through to the consumer.

 

Most of the big chains have recently introduced high profile price cuts to
staples, with Sainsbury's on Monday the latest to announce it was investing
£15m to reduce the cost of basics such as rice, pasta and chicken.

 

Tesco, Morrisons, M&S, Aldi and Lidl have all reduced prices on basic foods
such as bread, milk and butter in the past few months.

 

However, some items such as milk and eggs remain relatively expensive
compared to pre-Covid prices.

 

"These latest price cuts will help reassure customers that we will continue
to pass on savings as soon as we see the wholesale price of food fall," said
Rhian Bartlett, food commercial director at Sainsbury's, and one of the
executives due to appear before MPs on Tuesday.

 

As well as pointing to recent price cuts, the executives are likely to tell
the committee that not all commodities have been falling in price, said Ged
Futter, a retail analyst and former senior buying manager at Asda.

 

"Yes, prices have come down for some things, but other things have gone up
like sugar, potatoes [and] chocolate," he said.

 

Severe weather has meant lower supplies of potatoes, carrots and onions
grown in the UK, meaning more have had to be imported.

 

Wheat, which has fallen in price on global markets, is largely supplied from
UK growers, and food manufacturers will still be buying last year's crop at
last year's prices, Mr Futter said.

 

"They wont get a new price until they get into a new contract. Just because
prices have gone down globally that doesn't mean the price here goes down
immediately," he said.

 

Similarly, cheese sold today has been made with milk bought up to 12 months
ago, so won't reflect recent falls in milk prices, he said.

 

The British Retail Consortium has previously said there is typically a
three- to nine-month lag for price falls to be reflected in shops.

 

Mr Futter thinks supermarket executives will point to other costs affecting
food retail, from rising wages to the added charges related to Brexit, such
as veterinary certificates.

 

A study by academics at the London School of Economics last month found
nearly a third of food price inflation since 2019 was due to Brexit.-bbc

 

 

 

 

UK could be starved of energy, warns North Sea boss

The UK is at risk of being "starved" of North Sea energy leaving it reliant
on imports, a major oil and gas producer has told the BBC.

 

Ithaca Energy said Labour's pledge to ban new oil and gas exploration in the
North Sea and current taxation policy was "spooking" investors.

 

Ithaca is almost entirely invested in North Sea oil and gas.

 

Environmental groups say any new oil and gas fields in the region would take
the UK over its carbon budget limits.

 

Last week, Labour leader Sir Keir Starmer said a Labour government would not
grant licences to explore new fields in the North Sea, saying it would be an
"historic mistake" to wait until UK oil and gas runs out.

 

But Gilad Myerson, executive chairman of Ithaca, said the move would
threaten the UK's energy security.

 

"By a new government imagining they'll be able to stop licences and oil
development in the UK, ultimately what that means is that they'll be
starving the UK of energy, and it will become very dependent on energy from
abroad," he said.

 

North Sea oil and gas is traded on international markets and the prices are
set globally, but Mr Myerson insists much of it is used domestically, and it
therefore has a lower carbon footprint than energy imported from abroad.

 

"Most of the hydrocarbons in the UK are developed and are produced for the
UK market. Some of the oil will go to refineries abroad, but will ultimately
make its way back to the UK," he said.

 

A Labour spokesperson said that while the party would not issue any new
licences, it would "continue to use existing fields in the North Sea for
decades to come".

 

"The best way to bring down bills, increase our security and sovereignty,
and create good jobs is to get on with a sprint for clean energy and we
welcome all businesses being part of that."

 

Politicians 'spooking' investors

Ithaca, which has stakes in six of the 10 largest oil and gas fields in the
North Sea, is also worried about the current government's approach to
taxation.

 

Last May, the government introduced a windfall tax on energy company
profits, known as the Energy Profits Levy. It was set at 25%, but was later
increased to 35% in the Autumn Statement, taking the overall tax rate on
companies in the sector to 75%.

 

How does the windfall tax work?

Earlier this month, the Treasury announced the windfall tax would stay in
place until 2028 but would be scrapped if oil and gas prices fell closer to
historical levels for a sustained period.

 

But Mr Myerson said the chances of oil and gas prices falling sufficiently
to trigger the elimination of the tax were "extremely low" as supply and
demand had changed after the Russian invasion of Ukraine.

 

"At the moment, the taxation regime is changing constantly and it's very
difficult to invest huge amounts of capital when you don't know what type of
return you'll be getting," Mr Myerson said, adding that Ithaca was
considering investing elsewhere in Europe and the US, whom he said were
"more supportive" to oil and gas.

 

He said the company was still committed to investing in two of the biggest
undeveloped oil fields in the North Sea, the controversial Cambo and
Rosebank fields. Rosebank has the potential to produce 500 million barrels
of oil, and could be approved by the government within weeks.

 

But he said they would only be developed if it made financial sense, and
said political announcements from all sides had been unhelpful.

 

"Politicians keep making statements which spook investors.

 

"They are saying they do want hydrocarbons, then they say that they don't
want hydrocarbons. When it comes to a project like Cambo and Rosebank, you
need to make sure that the environment is stable because this is a project
that will last for 10 years."

 

A spokesperson for the Treasury said it was "right that we recover excess
profits resulting from Putin's war" and that the money raised from the
windfall tax had been used to help people with their energy bills.

 

"But we also want the oil and gas sector to invest in British jobs and our
energy security. That's why our new Energy Security Investment Mechanism is
designed to give investors the confidence to keep investing in domestic oil
and gas production, based on historic prices."

 

Energy security

Environmental groups say that claims the industry would shut down overnight
with the end of new North Sea licences are scare stories and that even one
new oil and gas field in the region would push the UK over its carbon budget
limits.

 

Erik Dalhuijsen, the founder of Aberdeen Climate Action, is critical of both
the government and Labour policies on the future of the North Sea.

 

"There is only one decision that can be made and that is that new
exploration needs to be stopped immediately," he told the BBC.

 

"There is no room in our carbon budget for additional hydrocarbons. There is
already enough hydrocarbons in the proven reserves to blow the climate
change carbon budget several times over.

 

"The real answer to energy security is to generate your own homegrown
energy, which is renewables. The Ukraine situation is evidence that fossil
fuels are not the secure energy source that you need."

 

The oil and gas sector supports 200,000 UK jobs, according to trade body
Offshore Energies UK.

 

One of Mr Myerson's biggest concerns is around job losses if the North Sea
sees no further investment.

 

He believes it is unrealistic to expect someone working on an oil platform
to be able to install a windfarm as they would not have the technical
expertise.

 

However, Friends of the Earth and others argue that with the right support
and investment, the renewable energy sector could support three times as
many jobs as oil and gas.

 

Mr Dalhuijsen, who previously worked as a petroleum engineer in the oil and
gas sector, is himself looking to retrain to retrofit buildings to make them
more energy-efficient.

 

My Myerson agrees that wind and solar are important technologies and Ithaca
is looking to invest in them as well, but says: "It's impossible to just
turn off a switch and imagine we can live in a world without hydrocarbons."

bbc

 

 

 

HSBC to leave Canary Wharf tower for new world headquarters

HSBC is to move its world headquarters from its 45-storey Canary Wharf
tower, possibly back to the City of London.

 

The banking giant is to move out of 8 Canada Square by 2027 when its current
lease expires, after two decades.

 

The move is part of plans to downsize its office space following the
Covid-19 pandemic, as the bank says it is now committed to flexible working.

 

HSBC has told the BBC it is negotiating a new lease on BT's former
headquarters near St Paul's Cathedral.

 

The proposed new office, in the Panorama St Paul's development, will be much
smaller than the bank's current headquarters, which houses about 8,000
staff.

 

HSBC Chief Executive Noel Quinn previously said he thought going to the
office five days a week was "unnecessary"

HSBC said the new development "is being designed to promote wellbeing and
constructed to best-in-class sustainability standards, using predominantly
repurposed materials".

 

HSBC moved to Canary Wharf in 2002, having previously been based at sites in
the City of London.

 

HSBC's decision to return to London's historic financial district within the
Square mile is a "huge vote of confidence for the City", said the City of
London Corporation policy chairman, Chris Hayward."This move further
solidifies the City's reputation as a prime destination for financial
services firms, offering them unparalleled opportunities.After the pandemic,
HSBC told staff it was going to reduce office space globally by about 40% to
reduce costs and energy and allow more employees to work from home.

 

Chief executive Noel Quinn said he thought going to the office five days a
week was "unnecessary" and its managers were often travelling to locations
around the world during the week.

 

HSBC told the BBC that talks began into a move to this site after a review
into its future location last year. It said the new office would "support
digital innovation" and help it meet net zero carbon commitments.

 

HSBC says the move to new offices will help it meet net zero carbon
commitments

It is not known what HSBC's tower, owned by Qatari investors, will be used
for when the bank moves out.

 

The Canary Wharf Group, which owns and runs the estate, has not commented on
HSBC's move but said the area had become more diverse in recent years.

 

Having started life as a financial district, it is now home to a growing
number of health and life science firms.

 

It also has 3,500 residents living in build-to-rent flats on the site, the
Canary Wharf Group said.-bbc

 

 

 

Follow EU regulation to keep costs low, says Ford boss

Britain should continue following EU car regulations to avoid extra costs
for consumers, says the boss of Ford.

 

Tim Slatter's comments come as car manufacturers prepare for the first major
review of Britain's post-Brexit trade deal with the EU.

 

Some Brexit campaigners want the UK do more to set itself apart from the EU
and to focus on markets beyond Europe.

 

But the chairman of Ford said UK car manufacturers believe their future lies
mainly in Europe.

 

Speaking on the eve of the International Automotive Summit in London, Tim
Slatter said: "It's really important that we maintain really good alignment
to the European [regulatory environment] because that's where we build and
sell most of our vehicles.

 

"Otherwise, what we're going to see is a lot of extra cost come into the
cost of developing vehicles and producing vehicles and that can't be a good
thing for customers."

 

The UK / EU Trade and Cooperation Agreement (TCA), which governs trade
between Great Britain and the EU, is due to be reviewed in 2025-26. Northern
Ireland is more closely bound to the EU under separate arrangements.

 

Ford to cut one in five jobs in the UK

One result of the TCA deal is that it allows UK manufacturers to export into
the EU with zero quotas and zero tariffs. To gain access to the single
market, UK car manufacturers are obliged to follow EU regulations.

 

Britain is free to diverge from EU regulations. But if it does so, it will
find that access to the EU market is restricted.

 

Mr Slatter told BBC Newsnight: "The trade and cooperation agreement remains
the critical thing - frictionless trade, tariff free trade. It's very
important that Great Britain maintains good regulatory alignment with the
European Union.

 

"There are sort of three big regulatory environments for automotive in the
world. There's the North American one, the European one and the Japanese
one. And it's really important that we maintain really good alignment to the
to the European one, because that's where we build and sell most of our
vehicles."

 

The car industry is deeply concerned about one aspect of the TCA which is
due to kick in next January: the "rules of origin".

 

>From January 2024 UK cars sold to the EU - and cars sold in the opposite
direction - could face a 10% tariff.

 

That will happen if electric cars built in the UK or the EU bust one or more
of two targets: having more than 45% of any vehicle by value, or 60% of
their battery, made from parts outside the EU and the UK.

 

The rule was drawn up by the European Commission to encourage both UK and EU
car manufacturers to accelerate the production of electric vehicle parts in
Europe. At the moment the European car industry is heavily reliant on
supplies from China and South Korea.

 

UK and EU car manufacturers have been lobbying the European Commission to
extend the deadline to 2027. Both sides will be hit as they sell into each
other's markets.

 

But EU countries selling to each other will not face the tariff. This means
the tariff would not have applied had the UK remained in the EU.

 

Tim Slatter said that car manufacturers cannot avoid the 10% tariff in
January, which will mean that environmentally friendly cars will be
penalised while carbon-emitting cars will not.

 

"We'll have this very unusual situation where the technology that we're
trying to promote and government is trying to promote to help decarbonise
our economy will be taxed and the traditional technology won't be taxed. And
that's clearly not what was intended when the when this rules of origin
regulation was put in place," said Mr Slatter.

 

It will represent a "double whammy", he added. The tariff would increase car
prices for consumers, add costs to industry and undermine two key targets:
increasing the production of Battery Electric Vehicles and ensuring all cars
are Zero Emissions Vehicles.

 

Mr Slatter added that the timeline that was set out did not anticipate the
complexity of achieving local manufacture - specifically on the battery
within the battery cell.

 

"The cathode active material, which makes up about 50% of the value of the
cell, is not yet produced in sufficient quantities, either in the UK or in
Europe, to support the industry. And that's one of the key things which
needs to be changed so that the industry can make this meet this rules of
origin requirement," he said.

 

A government source told the BBC: "The Business and Trade Secretary has
raised the rules of origin issues with her EU counterpart and is determined
to ensure the UK remains one of the best locations in the world for
automotive manufacturing, especially as we transition to electric
vehicles."-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  

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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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