Major International Business Headlines Brief::: 13 March 2023

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Major International Business Headlines Brief::: 13 March 2023 

 


 

 


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ü  Li Qiang: New premier tries to boost confidence in Chinese economy

ü  Silicon Valley Bank: Money in failed US bank is safe - US government

ü  Silicon Valley Bank: Offer made for UK arm of failed US lender

ü  Aramco: Saudi state-owned oil giant sees record profit of $161bn

ü  TikTok users shrug at China fears: 'It's hard to care'

ü  UK firms await government help after US bank collapse

ü  Li Qiang: China appoints Xi Jinping ally as premier

ü  Silicon Valley Bank: Is the UK right to bail out tech firms?

ü  Nigeria's Annual Trade Volume Rises to Near Pre-Covid Level

ü  Nigeria: Company Blames Insufficient Power Allocation for Unstable
Electricity Supply

ü  Nigeria: Why Tomato Price Rose, Days After Presidential Election

ü  Nigeria: Old Naira Notes Remain Legal in Bayelsa Till December 31 - Govt

ü  Uganda: Why Ugandans Are Getting Poorer?

 


 <mailto:info at bulls.co.zw> 

 


 

 

Li Qiang: New premier tries to boost confidence in Chinese economy

China's new premier Li Qiang has sought to restore confidence in the
country's economy in his first public address after taking up the role.

 

He said that a growth target set last week - 5% - would "not be easy" to
meet, but added that the "economy is stabilising and picking up again".

 

The world's second-largest economy is still reeling from the effects of
Beijing's zero-Covid policy.

 

Challenges also loom because of a declining population and job losses.

 

Investors' confidence too has taken a hit in recent years as China's leader
Xi Jinping consolidated his power, cracking down on private businesses, from
tech companies to the tutoring industry.

 

In an attempt to allay those concerns, Mr Li said, "During a period last
year, there was some incorrect opinion on the development of the private
economy and worried some entrepreneurs... The environment for the private
economy would get better and better and there would be more space for it."

 

Mr Li also struck a more conciliatory tone towards the US: "China and the
United States should cooperate, and must cooperate. When China and the US
work together, there is much we can achieve. Encirclement and suppression
are not advantageous for anyone."

 

As party chief of Shanghai, he oversaw one of the harshest zero-Covid
lockdowns that battered China's economic hub, leaving many without food.
Party officials often went above and beyond to implement what was seen as Mr
Xi's signature policy, which was reversed in December following widespread
protests.

 

Although Mr Li's appointment was near certain after the Party Congress in
October, he was formally appointed to the role only during the Two Sessions,
the annual meetings of China's legislature and top political advisory body
that ended on Monday.

 

As premier, he is now tasked with managing China's economy and his elevation
has surprised many - unlike almost all his predecessors, he has had no
experience working in the central government. But he is known as a loyalist
of Mr Xi's, who worked closely with him in Zhejiang - one of China's richest
provinces - between 2002 and 2007.

 

"Running the State Council machinery will require some adjustments, but he
likely had some 'practice' during Zero-Covid since Shanghai, as the largest
city in China, had to coordinate closely with State Council agencies and he
even took over the Covid leading group for months now," says Victor Shih, a
professor at University of California San Diego.

 

"On issues that Xi cares about, there will be very little room for
flexibility. However he [Li] may have greater ability to persuade Xi."

 

Mr Xi, the most powerful leader since Chairman Mao Zedong, also secured a
historic third presidential term during the Two Sessions last week. This too
was widely expected after the two-term limit on presidential term was
removed five years ago.

 

"This is my third term holding such a high office as the country's
president. The trust of the people is the greatest motivation for me to move
forward and a heavy responsibility on my shoulders," Mr Xi said on Monday.

 

"Security is the bedrock of development, while stability is a prerequisite
for prosperity," he said.-bbc

 

 

 

 

Silicon Valley Bank: Money in failed US bank is safe - US government

People and businesses who have money deposited with failed US bank Sillicon
Valley Bank (SVB) will be able to access all their cash from Monday, the US
government has said.

 

A statement from the US Treasury, the Federal Reserve and Federal Deposit
Insurance Corporation (FDIC) said depositors would be fully protected.

 

The taxpayer will not bear any losses from the move, the statement said.

 

SVB was shut down by regulators who seized its assets on Friday.

 

It was the largest failure of a US bank since the financial crisis in 2008.

 

The move came as the firm, a key tech lender, was scrambling to raise money
to plug a loss from the sale of assets affected by higher interest rates.

 

"The US banking system remains resilient and on a solid foundation, in large
part due to reforms that were made after the financial crisis that ensured
better safeguards for the banking industry," the authorities' joint
statement said.

 

"Those reforms combined with today's actions demonstrate our commitment to
take the necessary steps to ensure that depositors' savings remain safe."

 

Those actions also apply to Signature Bank of New York, seen as the most
vulnerable institution after SVB, which came under regulatory control on
Sunday.

 

As part of their moves to restore confidence, regulators also unveiled a new
way to give banks access to emergency funds.

 

The Federal Reserve said it would offer assistance through a new Bank Term
Funding Program, making it easier for banks to borrow from it in a crisis.

 

President Joe Biden said the American people could have "confidence that
their bank deposits will be there when they need them".

 

SVB was seen as a crucial lender for early-stage businesses in the tech
sector. It was the banking partner for nearly half of US venture-backed
technology and healthcare companies that listed on stock markets last year.

 

2px presentational grey line

Analysis box by James Clayton, North America technology reporter

I've been speaking to people with money stuck in SVB over the weekend.

 

One founder told me had been constantly refreshing his online banking page,
hoping it might work.

 

Another said he was confident the government would step in, but admitted he
might have lost about around 40% of the company's cash overnight.

 

This statement, then, has been welcomed by depositors. But there are those
that will raise eyebrows at this move.

 

SVB mainly banked start-ups and venture capitalists in Silicon Valley - the
tech elite. And those Silicon Valley elites tend to have more than a streak
of libertarianism to their politics: the boilerplate view is that government
is slow and too big.

 

Critics argue that it's with great irony that it's the government who has
stepped in to save the day. Some will wonder whether influential tech bros
have been given preferential treatment: capitalism for when things go well,
socialism for when it doesn't.

 

It's why the statement is worded carefully that taxpayers will not be paying
for this. Mr Biden will now have to defend the move - and reassure members
of his own party that guaranteeing depositors was the only way.

 

2px presentational grey line

SVB started as a California bank in 1983 and expanded rapidly over the last
decade.

 

But it came under pressure as higher interest rates made it harder for
start-ups to raise money through private fundraising or share sales.

 

In Silicon Valley, the reverberations from the collapse have been widespread
as companies face questions about what it means for their finances.

 

Paul Ashworth, chief North America economist at Capital Economics, said the
US authorities had "acted aggressively to prevent a contagion developing".

 

"Rationally, this should be enough to stop any contagion from spreading and
taking down more banks, which can happen in the blink of an eye in the
digital age. But contagion has always been more about irrational fear, so we
would stress that there is no guarantee this will work," he added.

 

Meanwhile, an offer has been made for SVB's UK arm. A consortium of
investors led by the Bank of London, a UK clearing bank, has submitted a
formal bid to the UK Treasury.

 

The British government has been working on a plan to support UK tech firms
affected by the collapse of SVB.-bbc

 

 

 

 

Silicon Valley Bank: Offer made for UK arm of failed US lender

An offer has been made for the UK arm of Silicon Valley Bank (SVB) after it
collapsed into administration, putting customer deposits at risk.

 

A consortium of investors led by The Bank of London, a UK clearing bank, has
submitted a formal bid to the Treasury.

 

The government has been working "at pace" on a plan to support UK tech firms
affected by the collapse of SVB.

 

There have been warnings some could struggle to pay their staff from Monday
without intervention.

 

It comes as US customers have been told their deposits will be fully
protected by the US government, putting pressure on the UK government to
act.

 

Earlier, Chancellor Jeremy Hunt told the BBC there was no risk to the UK's
financial system as a whole from the collapse of SVB, but "there is a
serious risk to some of our most promising companies in technology and life
sciences".

 

Mr Hunt said he had been working with the prime minister and Bank of England
governor "through the weekend to come up with a solution", and the
government would bring forward a plan in the "next few days".

 

However, Rachel Reeves, Labour's shadow chancellor, urged the government to
do more, warning UK start-ups needed to pay staff and maintain investor
confidence.

 

"We need, tomorrow morning, to hear from the government, how they are going
to protect firms," she said.

 

Faisal Islam: Is the UK right to bail out tech firms?

SVB, which focuses on lending to technology companies, was shut down by US
regulators on Friday in what was the largest failure of a US bank since
2008.

 

The bank's UK subsidiary will be put into insolvency from Sunday evening.
This will allow individual depositors to be paid up to £85,000 from the UK's
deposit insurance scheme - however many have far more money than this saved
with the bank.

 

The government is looking for a buyer for the UK arm, with other lenders
including Barclays and Oaknorth said to be mulling bids.

 

As a clearing bank, the Bank of London does not lend and holds all of its
deposits with the Bank of England. Its boss Anthony Watson said: "Silicon
Valley Bank cannot be allowed to fail given the vital community it serves.

 

"This is a unique opportunity to ensure the UK has a more diversified
banking sector, whilst allowing continuity of service to SVB's UK client
base."

 

More than 200 bosses of UK tech companies signed a letter addressed to Mr
Hunt on Saturday calling for government intervention.

 

The letter, from Fintech Founders, said many financial technology firms did
all of their banking with SVB "and will therefore go into receivership
imminently unless preventative action is taken".

 

"The firms affected by the collapse of SVB serve millions of people in the
UK along with businesses that are critical to our economy," the letter said.

 

"The cost of inaction here means that these firms could fail in the
short-term and your technology growth ambitions will fail in the long-term."

 

Toby Mather, chief executive and co-founder of Lingumi, an education
technology start-up, told the BBC his business was very exposed.

 

"85% of our cash is held in Silicon Valley Bank.. [So this] is a really
existential threat to us because I've got to pay my employees and they've
got kids and mortgages and so on."

 

One source in a tech firm told the BBC the situation could be "pretty
terminal" for many UK start-ups.

 

"This Monday, at least 200 firms employing tens of thousands of people will
find they can't pay their staff or suppliers because the bank they had an
account with has gone bust," the source said.

 

Between 30% and 40% of UK start-ups employing up to 50,000 people could be
affected by the collapse, the source added.

 

Michael Moore, director general of the British Private Equity and Venture
Capital Association, said this was an "urgent matter" and that "help is
needed by tomorrow [Monday]" for tech firms and entrepreneurs.

 

SVB collapsed in the US after failing to raise $2.25bn (£1.9bn) to plug a
loss from the sale of assets, mainly US government bonds, that were affected
by higher interest rates.

 

Its troubles prompted a run on the bank in the US and sparked investor fears
about the general state of the banking sector.

 

Silicon Valley Bank specialised in lending to early-stage businesses, and
the company served nearly half of US venture-backed technology and
healthcare companies that listed on stock markets last year.

 

The firm, which started as a California bank in 1983, expanded rapidly over
the last decade. It employs more than 8,500 people globally, with most of
its operations in the US.

 

But it has been under pressure as higher rates make it harder for start-ups
to raise money through private fundraising or share sales. More clients were
withdrawing deposits in a trend that snowballed last week.

 

Silicon Valley Bank UK, which has stopped making payments or accepting
deposits, is officially expected to go into insolvency on Sunday
evening.-bbc

 

 

 

 

Aramco: Saudi state-owned oil giant sees record profit of $161bn

Saudi oil giant Aramco has announced a record profit of $161.1bn (£134bn)
for 2022, helped by soaring energy prices and bigger volumes.

 

It represents a 46.5% rise for the state-owned company, compared with last
year.

 

It is the latest energy firm to report record profits, after energy prices
spiked following Russia's full-scale invasion of Ukraine in February 2022.

 

America's ExxonMobil made $55.7bn, and Britain's Shell reported $39.9bn.

 

Aramco also declared a dividend of $19.5bn for the October to December
quarter of 2022, to be paid in the first quarter of this year.

 

Most of that will go to the Saudi government, which owns nearly 95% of the
shares in the company.

 

Brent crude oil, the benchmark oil price, now trades at around $82 a barrel
- though prices exceeded $120 a barrel last March, after Russia's invasion,
and June.

 

"Aramco rode the wave of high energy prices in 2022," said Robert
Mogielnicki of the Arab Gulf States Institute in Washington. "It would have
been difficult for Aramco not to perform strongly in 2022."

 

In a statement on Sunday, Aramco said the company results were "underpinned
by stronger crude oil prices, higher volumes sold and improved margins for
refined products".

 

Aramco's president and CEO Amin Nasser said: "Given that we anticipate oil
and gas will remain essential for the foreseeable future, the risks of
underinvestment in our industry are real - including contributing to higher
energy prices."

 

To address those challenges, he said, the company would not only focus on
expanding oil, gas and chemicals production - but also invest in new
lower-carbon technologies.

 

Aramco - the world's second-most valuable company only behind America's
Apple - is a major emitter of greenhouse gas emissions that contribute to
climate change.

 

Responding to Aramco's announcement, Amnesty International's secretary
general Agnès Callamard said: "It is shocking for a company to make a profit
of more than $161bn in a single year through the sale of fossil fuel - the
single largest driver of the climate crisis."

 

She added: "It is all the more shocking because this surplus was amassed
during a global cost-of-living crisis and aided by the increase in energy
prices resulting from Russia's war of aggression against Ukraine."

 

Saudi Arabia is the largest producer in the oil cartel Opec (Organization of
the Petroleum Exporting Countries).

 

The Gulf kingdom has been condemned for a range of human rights abuses: its
involvement in the conflict in neighbouring Yemen, the murder in 2018 of
journalist Jamal Khashoggi, for jailing dissidents, and for the widespread
use of capital punishment.

 

In a separate development on Sunday, Iran said its oil exports had reached
their highest level since the re-imposition of US sanctions in 2018.

 

Oil Minister Javad Owji said exports increased by 83 million barrels in 2022
compared with the previous 12 months. In Iran, a new year starts in March.

 

Analysts say the rise is due to greater shipments to Iranian allies China
and Venezuela.

 

Tehran's export revenues took a significant hit after then-US President
Donald Trump pulled out of a landmark nuclear deal five years ago.

 

The US sanctions, coupled with economic mismanagement and corruption, have
meant that the Iranian economy has not had any substantive growth in the
past decade. And by some measures, it is still 4-8% smaller than it was back
in 2010.-bbc

 

 

 

 

TikTok users shrug at China fears: 'It's hard to care'

TikTok has been banned on government networks and devices in the US, Canada
and the European Union. But are the moves having any effect?

 

When TikTok would not load on her university's wi-fi network earlier this
year student Liz Barr was stymied - but not for long.

 

She soon figured ways around the block using personal mobile data or a
virtual private network (VPN). The block had been introduced after state
officials in Maryland banned the video app on government networks, citing
national security concerns.

 

"I was annoyed, because I live here and I get bored," says the 18-year-old,
who is studying computer science and creative writing at St Mary's College
of Maryland. "But now it works, so it's not that big of a problem."

 

The workaround shows the quandary facing the US and other countries as they
threaten to crack down on TikTok, which has exploded in global popularity in
recent years offering an endless feed of user-generated makeup tutorials,
life hacks, silly dances, and other confessionals curated by algorithm.

 

Rumbling against the social media platform, which is owned by the Chinese
tech giant ByteDance and has more than one billion users globally, has
reached new pitch in recent months.

 

Concerns have been especially loud in the US, where politicians from across
the ideological spectrum are urging steps to curtail its reach, arguing that
the data TikTok collects could be used by the Chinese government to spy on
Americans or influence political debates.

 

 

Dozens of states, like Maryland, have banned TikTok on government networks
and devices, moves that affect access in public libraries, universities and
elsewhere.

 

TikTok's chief executive is due to appear this month in Congress, which is
debating various proposals that could result in a wider national ban, while
the company remains in a years-long negotiation with the White House about
what changes it could make to satisfy the security concerns.

 

But among the app's prime users in the US - people aged under 25 - the
general frenzy has done little to dent use, if they're aware of it at all.

 

At the University of Oklahoma, which announced it was blocking the app on
the campus wi-fi in December, students were surprised and annoyed but
"people were pretty quick to figure it out and navigate it," says student
body president Christopher Firch, noting that most people can simply switch
from wi-fi to a personal mobile data plan to get around the ban.

 

"I don't want to negate a national security issue... but I just think people
are like, 'this sucks' and then laugh about it," he says. "They're not
taking it super, super seriously."

 

Among the American public broadly speaking, support for a ban on TikTok has
been rising.

 

In December, 53% of adults in the US favoured a national ban on
Chinese-owned social media apps, according to decision intelligence company
Morning Consult.

 

That compares to just 29% who said they supported blocking TikTok in 2020
when US President Donald Trump took steps to ban TikTok and WeChat - moves
that were later blocked in court.

 

But Americans aged 18-25 are less likely than older adults to be concerned
about competition with China and more likely to distrust the US government,
says Jordan Marlatt, tech industry analyst at Morning Consult. They also
have more positive views of social media.

 

Less than a third favoured banning Chinese social media apps, Morning
Consult's survey found.

 

Liz, the student in Maryland, says she is already giving up personal data to
many other apps and is sceptical that her information would be useful, even
if it were accessed.

 

"To me, I can understand banning it at government places because those are
more sensitive," she says. "But I'm not important enough as a college
student with eight cents to my name."

 

"It's hard to care about one [social media company] and not care about all
of them," says Iniko Thornell, 25, who works in New York City and has been
on the app for about two years. "I don't think anything on my TikTok is that
important," she adds.

 

Even those like 21-year-old Kate Nazzaro, who have quit TikTok, say their
concerns were unrelated to national security. Rather, she says, "I thought
it was bad for my brain."

 

TikTok has said it strictly limits who can access American user information
and would not provide data to the Chinese government if asked.

 

It says a ban would have "the effect of censoring the voices of millions of
Americans" and the US should instead approve a deal under negotiation in the
Committee on Foreign Investment in the US, which would store data of
American users in the US and create other oversight.

 

But at a time of heightened anti-China sentiment in Washington, the firm's
assurances have failed to persuade lawmakers, who have put forward a number
of proposals aimed at curbing the app and are expected to give chief
executive Shou Zi Chou a tough grilling on 23 March.

 

The popularity of TikTok, a tech giant from outside of Silicon Valley, has
brought home to the US questions that other countries have long faced about
what governments should do to protect their citizens' data, says Timothy
Edgar, a professor of computer science at Brown University who advised
former President Barack Obama on cyber security issues.

 

He says lawmakers are rightfully sceptical of TikTok's claims, but a ban
would do little to address the worries, noting that many social media apps
collect and sell data on users and are vulnerable to efforts by foreign
countries to influence political debate.

 

A ban is also unworkable without far bigger changes to the way the internet
is run in the US, says Bruce Schneier, a security technologist and author.

 

"It's easy to say your employees can't use it on government computers but
those teenagers... we cannot stop them - it's not going to work," he says,
noting that the internet as it stands was designed to be open. "We just
don't have that ability."

 

He adds: "We've built an internet where spying is the business model and at
this point, we can't pick and choose who gets to spy."

 

For now, the general shrug from Generation Z seems to be in part a bet that
the threats will not result in action anytime soon.

 

TikTok personality Colin Rea, who has built a following of 2.7 million for
his posts about rebuilding his life after prison, recently posted a video
urging fans to join him on alternate platforms, worried about losing his
livelihood if a ban moves forward.

 

He's not the only one to do so, but he told the BBC for now concerns about a
ban seem far more muted than in 2020, when furore erupted in response to Mr
Trump's orders.

 

"I think there would be more discussion if we hadn't already been in this
position so many times," he says.-bbc

 

 

 

 

UK firms await government help after US bank collapse

UK tech firms are anxiously waiting to find out what government support they
will get after the collapse of Silicon Valley Bank (SVB) in the US.

 

Some have told the BBC they could go bust if help does not come soon enough.

 

The Treasury says it is working to find a solution. An investment group has
also offered to buy the bank's UK arm.

 

It comes as US customers have already been told their deposits will be fully
protected by the US government, putting pressure on the UK government to
act.

 

Speaking to reporters in San Diego on Sunday evening, Prime Minister Rishi
Sunak said: "We will have something to say very shortly.

 

"But we will continue to support our world-beating technology sector and all
the high-skilled jobs that it supports and also you should be reassured that
our overall financial system is sound and there's nothing to worry about
there."

 

Earlier, Chancellor Jeremy Hunt told the BBC there was no risk to the UK's
financial system from the collapse of SVB, but "there is a serious risk to
some of our most promising companies in technology and life sciences".

 

He said he had been working with the prime minister and Bank of England
governor "through the weekend to come up with a solution", and the
government would bring forward a plan in the "next few days".

 

Labour has criticised the government for not acting sooner.

 

Silicon Valley Bank - which specialised in lending to technology companies -
was shut down by US regulators on Friday in what was the largest failure of
a US bank since 2008.

 

Faisal Islam: Is the UK right to bail out tech firms?

The bank's UK subsidiary was put into insolvency on Sunday.

 

It will allow individual depositors to be paid up to £85,000 from the UK's
deposit insurance scheme. However, most have far more money than this saved
with the bank and will struggle to keep going if they are not able to access
it.

 

Toby Mather, chief executive and co-founder of Lingumi, an education
technology start-up, told the BBC his business was highly exposed to SVB's
collapse.

 

He said: "85% of our cash is held in Silicon Valley Bank.. [So this] is a
really existential threat to us because I've got to pay my employees and
they've got kids and mortgages and so on."

 

He also warned the ripple effect could be "huge" if deposits are not
secured.

 

Camilla Easter, chief executive at Oxford Medical Products, a health-tech
company, said she was working "incredibly hard to see how we can meet our
obligations to our shareholders and creditors".

 

"What we need as an industry right now is for them to very rapidly give us a
short-term plan on how we can access our money in those accounts," she told
the BBC.

 

'Preventative action'

US based Etsy, the online crafts marketplace, said had experienced a delay
in issuing payments to some sellers related to the unexpected collapse of
Silicon Valley Bank.

 

It said teams were "working around the clock to implement a solution" and
that it expected to pay sellers via its other payment partners in the coming
days

 

More than 200 bosses of UK tech companies signed a letter addressed to Mr
Hunt on Saturday calling for the government to step in.

 

The letter, from Fintech Founders, said many financial technology firms did
all of their banking with SVB "and will therefore go into receivership
imminently unless preventative action is taken".

 

One source in a tech firm told the BBC between 30% and 40% of UK start-ups
employing up to 50,000 people could be affected by the collapse.

 

On Sunday, a consortium of investors led by The Bank of London, a clearing
bank, submitted a formal bid to buy SVB UK.

 

Others including a Middle Eastern investment fund and the banks Barclays and
Oaknorth are also said to be mulling offers.

 

SVB collapsed in the US after failing to raise $2.25bn (£1.9bn) to plug a
loss from the sale of assets, mainly US government bonds, that were affected
by higher interest rates.

 

Its troubles prompted a run on the bank in the US and sparked investor fears
about the general state of the banking sector.

 

On Sunday, the US government said people and businesses who had money
deposited in Silicon Valley Bank (SVB) would be able to access all their
cash from Monday.

 

It also said the taxpayer would not bear any costs from the move.

 

Silicon Valley Bank specialised in lending to early-stage businesses, and
the company served nearly half of US venture-backed technology and
healthcare companies that listed on stock markets last year.

 

The firm, which started as a California bank in 1983, expanded rapidly over
the last decade. It employs more than 8,500 people globally, with most of
its operations in the US.

 

But it has been under pressure as higher rates make it harder for start-ups
to raise money through private fundraising or share sales. More clients were
withdrawing deposits in a trend that snowballed last week.

 

Silicon Valley Bank UK, which has stopped making payments or accepting
deposits, is officially expected to go into insolvency on Sunday
evening.-bbc

 

 

 

Li Qiang: China appoints Xi Jinping ally as premier

The man nominated as China's next premier by President Xi Jinping has been
formally appointed by parliament.

 

Li Qiang, the former Communist Party leader of the country's biggest city of
Shanghai, will now lead the government, replacing retiring Li Keqiang.

 

The 63-year-old received almost every vote from more than 2,900 delegates at
the National People's Congress.

 

A close ally of Mr Xi, he is seen as a pragmatist and will be tasked with
reviving China's struggling economy.

 

New ministerial appointments are expected to be announced on Sunday.

 

No reporters were allowed in the room while ballots were cast during a
meeting of China's rubber-stamp parliament. There was applause as Mr Xi cast
his vote.

 

Mr Li - who is now the second-highest ranking official in China's political
system - received a total of 2,936 votes, with just three delegates voting
against his appointment and eight abstaining.

 

He then took an oath, swearing to be loyal to China's constitution and to
"work hard to build a prosperous, strong, democratic, civilised, harmonious
and great modern socialist country".

 

Mr Li was President Xi's chief of staff in the early 2000s, when Mr Xi was
party chief of Zhejiang province. Mr Li was made party secretary of Shanghai
in 2017.

 

During the pandemic, he oversaw Shanghai's strict lockdown, which led to
some residents struggling to access food and medical care.

 

His appointment comes after Mr Xi secured a historic third term as president
on Friday.

 

The president has solidified his rule as China reopens from his bruising
zero-Covid policy that has fuelled anti-government protests. The country is
also facing a falling birth rate that threatens its economic growth engine.

 

The so-called Two Sessions of the National People's Congress and the Chinese
People's Political Consultative Conference (CPPCC) this week is closely
watched as it provides a glimpse into China's direction in the coming years.

 

Since Mao Zedong, leaders in China had been limited to two terms in office.
When Mr Xi had this restriction changed in 2018, it transformed him into a
figure with a reach not seen since Chairman Mao.-bbc

 

 

 

 

Silicon Valley Bank: Is the UK right to bail out tech firms?

That was the claim made by Silicon Valley Bank UK last autumn as it
celebrated becoming a fully UK-run subsidiary with a promotional video
featuring cycle-in branches, ping-pong tables and dogs in the office.

 

At around the same time during the UK mini-Budget shock, there was a private
fear whispered from regulators. Away from the political blame game, the
unpublished Office for Budget Responsibility forecasts and reasonable
regulatory questions about an obscure corner of the pension fund market,
there was a really big picture concern for the global financial system.

 

After a decade and a half of near zero interest rates, the rapid rise in
rates was going to lead to at best unforeseen, unintended consequences in
hitherto stable corners of the system. At worst, the pensions "Liability
Driven Investment" crisis was just the first of a series of ticking
timebombs in debt markets that had become rather accustomed to borrowing
almost for free.

 

'Herd like'

Silicon Valley Bank (SVB) has proved to be one of those ticking timebombs.
Rising interest rates on government-backed borrowing contributed directly to
the problems in the bank's balance sheet. Its key asset - concentrating
entirely on the high tech sector - contributed to the herd-like flight of
its US deposits last week.

 

There is no systemic risk to UK financial stability from the direct fall of
Silicon Valley Bank's UK arm, authorities say. That is because it is very
small. Authorities won't say how many customers it had, but it only reached
£100m in deposits covered by the protection scheme last August. So we are
talking thousands of customers rather than tens of thousands, and it is
believed to have had several billion in deposits.

 

The UK arm is too small to impact UK financial stability directly. As a
result of its establishment as a full UK subsidiary there should also be
plenty of assets there to help mitigate the outflow of deposits. But it is
considered economically important to many potentially high growth companies.
Its customers' business model means they typically have low profits and
revenues, and draw down funds from the bank.

 

Who are those customers? There are two types in the UK - start-up tech
companies, and their funders in venture capital and private equity. The
government thinks there is a serious risk to the tech sector. Others, such
as former top Treasury boss Nick Macpherson fear that offering help beyond
the normal £85,000 deposit protection limit could create serious "moral
hazard", in other words reward risky behaviour.

 

Guarantees

Could the start-up business customers be treated differently to the big
investors? The government is in talks to get other banks to take on the
ailing UK arm of SVB or to offer some sort of guarantees to allow clients to
pay wages and suppliers. All this comes as the chancellor is planning to
make the UK's tech future a centrepiece of his Budget on Wednesday.

 

Ordinary UK depositors at other banks should be reassured. This is a very
specialist bank, only serving customers in a specific sector. However, what
is happening in the US is another matter. US regulators do not want to bail
out sophisticated tech investors who take financial risks with the promise
of fabulous returns.

 

But they will be keen to provide enough reassurance to avoid a run on
deposits spreading to smaller banks. If that happened it could cast a shadow
over other stock markets and the world economy too. So this does matter for
UK economic policy and US financial stability. It could also be a canary in
the coalmine for other unknown risks as the financial system is upended by
the recent end of nearly free money.-bbc

 

 

 

Nigeria's Annual Trade Volume Rises to Near Pre-Covid Level

The 169 per cent year-on-year increase in trade surplus recorded by the
federal government for 2022 has almost put Nigeria's annual trade volume at
the positive threshold of the pre-COVID years, data by the National Bureau
of Statistics (NBS) has indicated.

 

According to the NBS data, Nigeria recorded a N1.2 trillion goods trade
surplus in 2022, as export bills (N26.8 trillion) outweighed import earnings
(N25.6 trillion) for the first time since the preceding year (N2.23 trillion
in 2019).

 

Nonetheless, the 2022 surplus represents a 162 per cent improvement over the
N1.94 trillion goods trade deficit in 2021.

 

The report also showed that Nigeria's total merchandise trade in 2022
increased to N52.4 trillion from N39.75 trillion in 2021, while total export
value grew by 42 per cent to N26.8 trillion from N18.91 trillion in 2021.

 

The country's trade balance was N5.37 trillion in 2018 but fell to N2.23
trillion in 2019.

 

 

The following year, global trade volume fell as the economy grappled with
limiting the movement of people.

 

Nigeria's exports were reduced by 35 per cent, falling from N19.19 trillion
to N12.52 trillion.

 

Imports also fell significantly, but not enough to compensate for the large
gap in export figures caused by falling crude prices.

 

Nigeria's previously positive trade balance turned negative at the end of
the year, leaving a deficit of N178.26 billion, which ballooned to nearly N2
trillion by 2021.

 

However, in a report contained in the Cowry Weekly Financial Markets Review
& Outlook (CWR), which was released on Friday, analysts noted that the
increase in total exports was greater than the increase in total import
value, which stood at N25.59 trillion (23 per cent higher than N20.84
trillion in 2021).

 

 

According to the report, total trade fell by 4.52 per cent in the fourth
quarter to N11.72 trillion, compared to N12.27 trillion in the third quarter
of 2022, as total exports exceeded total imports.

 

"An analysis of the data filed shows that Nigeria exported mainly 'mineral
products' which amounted to N5.7trillion, or 89.11 per cent of total export
value; this was followed by "vehicles, aircraft, and parts thereof; vessels,
etc.', which were valued at N199.29 billion, or 3.13 per cent of the value
of total exports, and "products of the chemical and allied industries,"
worth N169.27 billion, or 2.66 per cent of the value of total exports.
Meanwhile, export value during the quarter was dominated by crude oil
exports (N4.9 trillion), which accounted for 77 per cent of total exports.

 

"Non-crude oil exports stood at N1.5 trillion, or 22.76 per cent of total
exports, of which non-oil products contributed N732.24 billion, representing
11.51 per cent of total exports.

 

 

The report noted that: "For the import values, which declined 15.5 per cent
in Q4 to N5.4 trillion, there were mineral fuels (N1.9 trillion), imported
machinery and transport equipment (N1.3 trillion), and chemicals and related
products" (N694.68 billion)."

 

"The value of imported manufactured goods in the quarter under review stood
at N2.5 trillion, a decrease of 14.11% compared to the value recorded in Q3
2022 (N2.9 trillion). The report said that this value also declined by
-18.43 per cent compared to the value recorded in Q4 of 2021 (N3 trillion)."

 

According to the report, the positive trade balance was recorded during the
period despite the weaker Naira (9.09 per cent year-on-year to N461.50 in
2022), weaker demand for export commodities, the effects of Russia's
invasion of Ukraine in 2022, which translated to weaker trade flows among
nations, and the continued high import costs as companies were hard hit.

 

It noted that demand for consumer, intermediate, and investment goods fell
sharply across the board due to these outcomes.

 

The report explained that the value of other oil product imports in the
fourth quarter of 2022 was N1.9 trillion, a decrease of 18.18 per cent from
the value recorded in the third quarter of 2022 (N2.3 trillion), but an
increase of 10.40 per cent from the value recorded in the same quarter of
2021. (N1.7 trillion).

 

In the review, Nigeria's major trading partners were China and Belgium,
according to the report.

 

At the same time, exports went to Spain and the Netherlands, with
superior-quality cocoa beans and sesame seeds being the two main
agricultural products traded.

 

"We note that Nigeria's trade balance can be further improved through
policies aimed at export promotion, especially for non-oil exports. This can
be achieved if FG creates an enabling business environment to improve trade
and exports, just as seen in the recent rise in the trade balance," the
report said.

 

It also stated that the pressure on the Naira as a result of depreciation,
rising inflationary levels, and headwinds faced by global trade in 2022 as a
result of slowing economies and supply chain congestion globally have
resulted in the shrinkage recorded in Nigeria's total trade balance.

 

-This Day.

 

 

 

Nigeria: Company Blames Insufficient Power Allocation for Unstable
Electricity Supply

Mr Muhammed apologised to electricity consumers for the inconveniences
caused by the load shedding.

 

The Abuja Electricity Distribution Company (AEDC) said insufficient power
allocation to the company by generation stations was responsible for the
unstable electricity supply in the region.

 

Adamu Muhammed, public relations Officer, Niger Region, AEDC, disclosed this
while speaking with the News Agency of Nigeria (NAN) on Sunday in Minna.

 

"The Management of AEDC PLC wishes to inform its valued customers that it is
aware of the unstable power supply experienced in recent times essentially
caused by insufficient power allocation.

 

 

"Due to the limited energy allocation, we have had and will continue to
implement load curtailment directives across our franchise to manage the
situation for grid stability.

 

"This will involve occasional/temporary interruption of power supply to
certain areas for a limited period.

 

"All this instability in power supply has to do with generation/transmission
stations. If the generation stations improve, definitely our allocations
will improve as well," he said.

 

Mr Muhammed apologised to electricity consumers for the inconveniences
caused by the load shedding.

 

"We are doing everything we can to ensure that the impact of the power
outages is minimised, and we appreciate your understanding and cooperation
during this challenging time.

 

"We appeal to our esteemed customers that we will continue to update them on
the situation and provide any necessary information when it is available,"
he said.

 

NAN reports that AEDC's franchise area covers the Federal Capital Territory,
Niger, Kogi and Nasarawa States.

 

The company is organised into nine regions and 39 area offices across the
four states.

 

-Premium Times.

 

 

 

Nigeria: Why Tomato Price Rose, Days After Presidential Election

Jos — The price of tomato has risen in Jos, the Plateau State capital, few
days after the presidential and National Assembly elections. Many are
wondering why there is a sudden change in the price of the commodity,
especially in the period when naira notes are scarce in the hands of buyers.

 

Weeks to the presidential poll, the price of tomato in the state fell
drastically and a basket of the commodity was sold between N700 and N1,000,
a situation that made many farmers and dealers to cry out over the magnitude
of losses they incurred. They attributed the situation to the scarcity of
naira notes.

 

 

The situation became worse as there were no buyers who could pay as low as
N700 per basket.

 

Traders who spoke with Daily Trust on Sunday attributed the sudden increase
in the price of the commodity after the elections to certain factors.

 

Abubakar Adamu, a tomato dealer at the popular Farin Gada market in Jos
North Local Government Area, attributed the price increase to the shortage
of the commodity in the North, where most farmers exhausted their tomatoes,
making Plateau and Kano the only places where one can find it at the moment.

 

"Dry season farming is almost everywhere in the North. The commodity was
cheap because most places engaged in farming and were harvesting
concurrently, so supply would be sufficient, thereby forcing the price to
come down. But all these places have exhausted their tomatoes, except
Plateau and Kano. That is why the demand is high. A basket of the commodity
is sold at N3,000," Adamu said.

 

 

Adamu said another factor could be connected to the fact that many farmers
did not cultivate tomatoes due to the high cost of doing so. He said, "Many
farmers do not have money to maintain their farms; that is why they left.
The present cash situation in the country also worsened the situation.

 

"Those still in the system are few and can't provide sufficient tomatoes.
This is also part of the reasons the price is increasing by the day."

 

Lamenting over the situation, Naomi Atik, a tomato dealer and farmer at the
Farin Gada market said, "There is no money for transportation to take
tomatoes to market because fuel has been expensive. Our tomatoes remained in
the farms and eventually got rotten. At a point, the price crashed and
farmers lost their capital. It was a difficult experience."

 

She attributed the sudden increase in price to the presence of more buyers,
especially those coming from the southern part of the country. "I think one
of the reasons for the rise in the price oftomatoes is that people from the
southern part of the country are coming to buy, after the presidential
election.

 

"The farmers are happy with the development because they have spent a lot
and need to recover their expenses."

 

Abdullahi Usman, the deputy chairman of the tomato market association said,
"I have been in this market for many years but never experienced a situation
where tomato would crash to the level we saw it this time.

 

"The cashless policy introduced by the Central Bank of Nigeria (CBN) is new
to farmers, so they don't accept mobile transfer. They prefer to sell their
products in cash. Tomato was everywhere in the market, and that was why many
of the farmers lost their capital."

 

He further explained that before the presidential election, buyers from the
South were afraid of the unknown, so they could not take their money to the
North.

 

Asked whether the price would continue to increase despite the cashless
policy, he said, "From now to July the price of tomato would not come down
because it is seasonal. Majority of the people of the area would engage in
other farming activities."

 

Naomi Atik further said, "It is our prayer that the price would shoot up so
that farmers can gain, but anything can happen. It can rise or come down,
depending on market situation."

 

The dealers further maintained that from now to July, there is the
likelihood that the price of the commodity would continue to increase.

 

-Daily Trust.

 

 

 

Nigeria: Old Naira Notes Remain Legal in Bayelsa Till December 31 - Govt

The Bayelsa State Government has said that based on the Supreme Court ruling
of March 3, the old naira notes of N500 and N1,000 will remain legal tender
in the state till December 31.

 

Reacting to the protest by citizens and other Nigerians doing business in
the state due to the suffering occasioned by the naira redesign policy of
the federal government, the state government urged banks and business owners
to obey the apex court ruling to ease the pains from Nigerians living in the
state

 

The Commissioner for Information, Orientation and Strategy in the state,
Ayibaina Duba, in a statement yesterday in Yenagoa, noted that the
government understands the pains of residents, but called for calm.

 

 

"The Bayelsa State Government understands the pains of residents of the
state following the implementation of the Central Bank of Nigeria's (CBN)
naira redesign policy and the Supreme Court ruling on the old currency
notes.

 

"The government thus urges residents to be calm and not engage in acts that
could jeopardise the peace of the state.

 

"The government notes that on March 3, the Supreme Court ruled that the old
notes, which had been phased out by the CBN, remained legal tender till
December 31 this year.

 

"While the state government is not against the naira redesign policy of the
federal government, it is, however, not comfortable with the method of its
implementation, which has resulted in further hardship on people of the
state, and indeed, the country.

 

"The government also calls on the CBN to take immediate steps to ease the
burden of doing business in the state by making implementation of the policy
less cumbersome," he said.

 

-Daily Trust.

 

 

 

Uganda: Why Ugandans Are Getting Poorer?

Overall, Ugandans are better off today than they were 10 years ago,
according to a report published on Feb.28 by the Legatum Institute, a
London-based think-tank. On specifics, however, many Ugandans are far worse
off than they were back then.

 

According to the report, Ugandans have better living conditions, health, and
education. On the economic front, they enjoy better infrastructure and
access to markets and an improved investment environment. On the worse side,
although they enjoy better safety and security, today Ugandans endure a
poorer level of governance and reduced personal freedom and social capital.

 

Based on the report, these worse indicators are the reason Ugandans are
poor. Based on the report, Ugandans are not as prosperous as they could be
because the government has focused on improving the economy and social
services while limiting personal freedom. The result has been bad
governance.

 

 

Uganda, for example, is ranked among the most improved countries in health
globally over the last 10 years. It has improved 11 positions on the
ranking. The health measure assesses the extent to which people are healthy
and have access to the necessary services to maintain good health.

 

It has also been ranked very highly on access to electricity with the report
noting how it has tripled from 12% in 2010 to 42% in 2020. The report also
notes that the country recently launched a last-mile connectivity project,
aimed at increasing rural electricity access, which according to the
government has increased it to 57%.

 

But Uganda has sank five positions down on the personal freedom ranking with
freedom of assembly and association, speech and access to information, and
equality before the law, all tumbling down.

 

It has also sunk four positions on the governance raking. Indicators that
are going down include executive constraint, political accountability, rule
of law, regulatory quality and institutional trust, and government integrity
and effectiveness.

 

 

"Prosperity is more than mere economic growth," the report authors say, "It
also requires political and social development."

 

They add: "Prosperity is built when leaders make choices to develop a
society that works for everyone - a society that is inclusive and has a
strong social contract that protects the fundamental liberties and security
of each individual."

 

"It is driven by an open economy that harnesses the ideas and talents of the
people of a nation. This in turn builds an enabling environment for all to
flourish by fulfilling their unique potential and playing their part in
strengthening their families, communities, and nations."

 

The crucial test

 

According to the Legatum Institute, a crucial test of the accountability of
governments and integrity of leaders is whether power can be transferred
peacefully. It is perhaps not surprising that sub-Saharan Africa has four of
the longest serving presidents in the world with each leader having been in
power for an average of 37 years.

 

 

Between them, Presidents Teodore Obiang Nguema of Equatorial Guinea, Paul
Biya (Cameroon), Denis Sassou Nguessa (Congo-Brazzaville) and President
Yoweri Museveni of Uganda have ruled for a total of about 150 years.

 

But Ugandans can be consoled by the fact that they are not in the worst
place on the planet. Uganda is ranked far above many countries in
Sub-Saharan Africa although the region is prospering at a slower pace than
the rest of the world, according to the report.

 

Entitled the "Prosperity Index 2023", the Legatum Institute report, just
like World Bank, the Atlantic Council, and the Institute for Global
Prosperity (IGP), routinely measure prosperity and release reports. Their
definitions of prosperity vary based on who is measuring it, the type of
measurement used, and what is being measured.

 

According to the Legatum Institute, "prosperity" is loosely interpreted as
every person having the opportunity to thrive by fulfilling their unique
potential and playing their part in strengthening their communities and
nations.

 

For the past 16 years, the Legatum Institute has been analysing countries
based on 12 pillars and 300 indicators to compile the index. The goal has
been to answer two questions: How do countries become prosperous? And why
are some of the least developed states like Uganda not catching up to the
rest?

 

"Prosperity," says the Legatum Institute, "is not just about what we have,
but also who we become."

 

It measures prosperity on 12 pillars: Safety and Security, Personal Freedom,
Governance, Social Capital, Investment Environment, Enterprise Conditions,
Infrastructure and Market Access and Economic Quality. Others are Living
Conditions, Health, Education, and Natural Environment.

 

According to the Index which was first launched in 2007, the most prosperous
countries in the world have high levels of personal freedom, safety and
security as well as education and health.

 

Such countries also have healthy natural environments and conditions that
promote economic prosperity through features such as protection of
investments, favourable business regulations and a healthy market
infrastructure. These elements represent some of the 12 indices that are
analyzed and weighted.

 

Worst and best countries

 

The Legatum Prosperity Index is in its 16th year and measures what it
defines as prosperity in 167 countries around the world representing close
to 99% of the world's population.

 

The latest edition ranks Denmark as the most prosperous country in the
world. The Scandinavian nation is followed by its Nordic neighbours; Sweden,
Norway and Finland while Switzerland, The Netherlands, Luxembourg, Iceland,
Germany and New Zealand complete the top ten most prosperous countries in
the world. At the bottom of the Index are; Sudan, Syria, Eritrea, the
Democratic Republic of Congo, Chad, Somalia, Afghanistan, Central African
Republic, Yemen and South Sudan. That means Africa and more specifically the
sub-Saharan part of the continent is lagging. The sub-region remains the
lowest-ranked region for prosperity, and is the worst-performing region in
eight out of 12 pillars.

 

But the index shows there are highlights of progress in the sub-Saharan
Africa region; especially in the areas of basic needs in health, education
and living conditions. Of the 49 countries that comprise the sub-region, 39
saw prosperity grow during the survey period with basic needs in health,
education and living conditions being met more than ever.

 

Still, there is lack of progress in core political and economic
institutions; a situation that the report notes is holding back the region's
prosperity.

 

Overall, however, the region saw an improvement in its prosperity in the
last decade. In particular, sub-Saharan Africa saw the greatest progress in
infrastructure and market access with Guinea, Botswana and Gabon
experiencing the largest improvements in the pillar in the region.

 

Among the notable improvements in Sub-Saharan Africa include a drop in the
percentage of people living on less than US$1.90 a day from 47.2% to 36.4%
while under-5 mortality has fallen from 98 deaths per 1,000 children to 70.6
deaths. Primary school completion rates have also risen from 56% to 65% over
the same period.

 

But these are also the most promising trends across the globe. For example,
the percentage of people living on less than US$5.50 a day has fallen
globally from 57% to 47% globally and has halved in East Asia and the
Pacific from 56% to 28%.

 

The percentage of children completing lower secondary school has risen from
74% to 80%. In Central and South Asia, it has risen from 68% to 79% while
the mortality rate for children under five has fallen from 37 deaths to 26
deaths per 1,000 children. In Sub-Saharan Africa it has fallen from 98
deaths to 71 deaths per 1,000 children.

 

Sub-Saharan Africa also saw the greatest deterioration in safety and
security out of all regions, with Mali, South Sudan and Cameroon
deteriorating at the greatest rate. Particularly, it is the increase in
terrorism and civil conflict that led the decline in the pillar.

 

For example; conflict deaths have risen three-fold to 24,000 while deaths
from terrorism have risen from 800 to 9000. Of the 54 African countries, 36
saw a deterioration in freedom of assembly and association.

 

The region also remains weak economically. Annual GDP per capita growth has
fallen from 3.1% to 0.3% and government debt is said to have risen from 32%
to 62% of GDP on average. Meanwhile youth unemployment has risen from 12.1%
to 15.4%.

 

Africa's most prosperous countries

 

Mauritius (47th in the world) is the most prosperous African country
followed in second place by Seychelles (51), South Africa (75), Cape Verde
(80), Botswana (83), Sao Tome and Principe (87), Namibia (90), Ghana (98),
Senegal (102) and Kenya completes the top-10 list on the continent.

 

Within the East African Community, Kenya remains the most prosperous country
and it is followed by Rwanda (11th on the continent and 111th in the world),
Tanzania (13th in Africa and 117th in the world) and Uganda (21 in Africa
and 129th in the world). South Sudan (49 in sub-Saharan Africa and 167th in
the world) is the least prosperous country in the world.

 

 

Meanwhile, Côte d'Ivoire (15th in sub-Saharan Africa and 120th in the world)
has seen its prosperity improve more than any other nation in the past
decade. The country's governance improved at the highest rate globally in
this period.

 

The West African country experienced a 47-rank improvement thanks to a
policy of reconciliation maintained by the current administration following
the armed conflict that raged on until 2011. This has seen government
effectiveness rise 101 places from 165th to 64th in the world.

 

On the other hand, a decline in safety and security following political
instability and a decade-long conflict saw prosperity in Mali (37th in
sub-Saharan Africa and 151st in the world) deteriorate at the greatest rate
in a decade. Mali's ranking for safety and security fell 91 places to 158th,
placing the country among the worst countries globally thanks to 326
terror-related injuries registered in 2020 compared to zero injuries in
2010.

 

Deteriorating civil liberties

 

Many countries, including several fragile democracies have deteriorating
civil liberties. This is the most concerning trend according to the Index.
It says executive constraints have deteriorated in every region, other than
Western Europe, and the level to which executive powers are effectively
limited by the judiciary and legislature has decreased.

 

According to the authors of the Index, recent economic shocks and attacks on
political institutions around the world have curtailed the achievement in
prosperity during the last decade. The impact of these upheavals on the
least prosperous countries was only one of a number of challenges they
faced.

 

"This led us to analyse the performance of the bottom 40 countries in 2023
and compared them with other countries over the last decade. We wanted to
know if the development gap was widening or narrowing. So, we asked: Is
prosperity in the world converging or diverging?"

 

"The good news is that basic needs are being met more than ever especially
in health, education and living conditions are improving around the globe;
most notably the bottom 40 in 2023 have since been catching up with the rest
of the world," the report reads in part.

 

"People around the globe are now better educated, better fed and protected
against preventable diseases. In these areas of development, we are heading
towards a converging world. But when we turn to other aspects of prosperity,
the world's least prosperous countries have been trailing further behind and
not catching up overall."

 

Of these bottom 40, twelve have experienced deteriorating prosperity. Safety
and security have worsened for those countries of the bottom of the index
with most of the two billion people affected by conflict residing in these
countries. In the bottom 40 countries of the index, there are fewer people
in the workforce than 10 years ago.

 

Personal freedoms have particularly deteriorated in as many as 108 countries
with Hong Kong coming off worse. The semi-autonomous Chinese territory is
said to have fallen from 47th position in the personal freedom ranking to
98th over the decade.

 

In the area of political diversity and media perspectives, India fell from
3rd to 89th in the last 10 years while eastern Europe registered the biggest
improvement in the area of social capital (41% to 74%). However, the report
noted that this particular element has also been rising around the world.

 

Overall, while the world's least prosperous countries are improving, they
are not catching up with the rest of the world. For example, notes the
Index, in six out of 12 pillars of the Prosperity Index, the bottom 40
countries have deteriorated, while, on average, the rest of the world has
improved.

 

While the bottom 40 group saw improvement in some areas, the progress was
not fast enough to catch up to the rest of the world. While extensive trade
deals allowed prosperous nations to gain access to almost half of the
world's markets, the bottom 40 countries have access to less than a third as
much.

 

The report notes that the scope of the trade deals of the bottom 40
countries increased from 8% to only 12% of the global economy. In contrast,
the top 40 countries have increased their trade deal access to foreign
markets for goods from 31% of the global economy to 45%.

 

There are also long-term weaknesses in the global economy, including
declining productivity and rising unemployment. For example, there has been
a long-term slowdown in productivity around the world, and, apart from in
Asia, the countries at the bottom of the Index have not caught up with the
rest of the world in productivity.

 

While productivity in Asian countries continues to rise, it has flatlined in
Africa and is deteriorating in Latin America and the Caribbean. In
Sub-Saharan Africa today, the average worker produces goods and services
worth $11,700 - just $600 more than 10 years ago. In Latin America and the
Caribbean, the average worker produces less than they did 10 years ago.

 

Speaking during the launch of the Index in London, Kemi Badenoch, the
British Secretary of State for Business and International Trade, discussed
the importance of international trade, saying: "Free and fair trade is what
global prosperity and security are based on. And it is not an empty
platitude."

 

"Trade means treating companies and countries equally and making sure that
the rules are abided by. That is what's going to work for the UK and for the
rest of the world," she said.

 

Meanwhile, the report notes that the most concerning global trend is the
backsliding of democratic practices and the deterioration of civil liberties
around the world; affecting all regions and countries throughout the index.
For example, the level to which executive powers are effectively limited by
the judiciary and legislature has decreased in every region other than
Western Europe. The same is true of civil liberties.

 

Over the last decade, personal freedoms have deteriorated and as many as 108
countries with an increasing hostility towards freedom of assembly and
association. Furthermore, freedom of speech is under threat, with censorship
increasingly common around the world including in democratic countries.

 

"The decline in democratic institutions comes at a time when the liberal
international order is facing a meaningful challenge for the first time
since the Cold War by actors such as the Kremlin and Beijing," the report
notes.

 

"Today, we find a world that is converging in humanitarian progress but
diverging in the strength of both its political institutions and the core
economic structures that lay the ground for true prosperity."

 

"It is the challenge of our lifetime to safeguard the principles of liberal
democracy, including the rule of law, personal freedoms and the affirmation
of human dignity that over generations have brought peace, stability and
economic growth to billions of people. To achieve widespread prosperity,
these principles must prevail."

 

-Independent (Kampala).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Good Friday

 

April 7

 


 

Easter Saturday

 

April 8

 


 

Easter Sunday

 

April 9

 


 

Easter Monday

 

April 10

 


 

Independence Day

 

April 18

 


 

Workers’ Day

 

May 1

 


 

Africa Day

 

May 25

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

TSL

Fidelity

 


Willdale

FMHL

ZBFH

 


GetBucks

Zimre

Seed Co

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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