Major International Business Headlines Brief::: 16 March 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 16 March 2023 

 


 

 


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

 


 

 


 

ü  Asia markets fall as global banking fears widen

ü  Credit Suisse to borrow up to $54bn from Swiss central bank

ü  US threatens TikTok ban if app is not sold

ü  Guo Wengui: US accuses Chinese tycoon of billion-dollar fraud

ü  People face biggest fall in spending power for 70 years

ü  Corporation tax: Jeremy Hunt confirms rise to 25% from April

ü  Energy bill help to continue until end of June

ü  Nigeria's Inflation Hits 21.91% Amid Cash Crunch

ü  Nigeria: Fuel Subsidy Removal - No Plan for Palliatives Yet for Nigerians
- Govt

ü  Flying Popularity Continues to Rise in Africa

ü  Kenya: Millennials Driving Car Sales Up in Kenya

ü  South Africa: Power Cuts Are Hurting Small Businesses in South Africa -
but Sharing Resources and Equipment Might Be a Solution

ü  Uganda: Post Bank and Other State Owned Banks Take On Sustainability
Certification

ü  Uganda: I&m Bank Uganda Launches Offshore Banking

ü  Nigeria: Federal Govt Assures IATA of Repatriation As Foreign Airlines'
Trapped Funds Hit $743m

 


 <mailto:info at bulls.co.zw> 

 


 

 

Asia markets fall as global banking fears widen

Stock markets across Asia fell on Thursday as troubles at international
banking giant Credit Suisse intensified fears of a wider bank crisis.

 

Major indexes in Japan, Hong Kong and Australia fell by over 1% amid heavier
losses in bank shares.

 

This comes as Credit Suisse said it would borrow up to 50bn francs ($54bn;
£44.5bn) to shore up its finances.

 

Shares in the bank plunged after it found "weakness" in its financial
reporting.

 

Problems in the banking sector surfaced in the US last week with the
collapse of Silicon Valley Bank, the country's 16th-largest bank, followed
two days later by the collapse of Signature Bank.

 

Developments at Credit Suisse were "amplified" by problems at the smaller
banks, Sayuri Shirai, an economics professor at the Keio University in Tokyo
told the BBC.

 

"Investors and creditors are concerned about risk. Banks may suffer from
raising funds, which in turn will affect the cost of funding for SMEs and
start-ups globally," she added.

 

Japan's Nikkei 225 index fell by 1.1% at mid-day Asian trading. The Topix
Banks share index fell by more than 4% after recording its worst day in
three years earlier this week.

 

Shares in Mitsubishi UFJ Financial Group, the country's largest lender by
assets, were down by 3%. This was in line with losses at counterparts
Sumitomo Mitsui Financial Group and Mizuho Financial Group.

 

Indexes in Hong Kong and Sydney fell by over 1.5%, while the Shanghai
Composite was 0.5% lower.

 

"Markets could return to normal quickly once the US centric episode fades to
the back burner. Broader contagion fears at this stage are limited as banks
are so much better capitalised in Asia," said Stephen Innes, managing
partner at SPI Asset Management.

 

Credit Suisse, founded in 1856, has faced a string of scandals in recent
years, including money laundering charges and other issues.

 

It lost money in 2021 and again in 2022 and has warned it does not expect to
be profitable until 2024.

 

The bank's disclosure on Tuesday of "material weakness" in its financial
reporting controls renewed investor concerns.

 

These were intensified when the Saudi National Bank, Credit Suisse's largest
shareholder, said it would not buy more shares in the Swiss bank on
regulatory grounds.

 

At that time, Credit Suisse insisted its financial position was not a
concern. But shares in the lender ended Wednesday down 24%, as other banks
rushed to reduce their exposure to the firm and prime ministers in Spain and
France spoke out in an attempt to ease fears.

 

On Thursday, Credit Suisse said it would borrow up to 50bn francs from the
Swiss central bank "to pre-emptively strengthen its liquidity".

 

The collapse of Silicon Valley Bank has also fuelled concerns about the
value of bonds held by banks, as rising interest rates made those bonds less
valuable.

 

Central banks around the world - including the US Federal Reserve and the
Bank of England - have sharply increased interest rates as they try to curb
inflation.

 

Banks tend to hold large portfolios of bonds and as a result are sitting on
significant potential losses. The falls in the value of bonds held by banks
is not necessarily a problem unless they are forced to sell them.

 

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

 

 

 

Credit Suisse to borrow up to $54bn from Swiss central bank

Troubled banking giant Credit Suisse says it will borrow up to 50bn francs
($54bn; £44.5bn) from the Swiss central bank to shore up its finances.

 

The lender said it was taking decisive action to strengthen its liquidity as
it looked to become a simpler bank.

 

Shares in Credit Suisse fell 24% on Wednesday after it said it had found
"weakness" in its financial reporting.

 

This prompted a general sell off on European markets, and fears of a wider
financial crisis.

 

Credit Suisse said its borrowing measures demonstrated "decisive action to
strengthen [the bank]".

 

"My team and I are resolved to move forward rapidly to deliver a simpler and
more focused bank built around client needs," Credit Suisse's chief
executive Ulrich Koerner said in a statement.

 

Problems in the banking sector surfaced in the US last week with the
collapse of Silicon Valley Bank, the country's 16th-largest bank, followed
two days later by the collapse of Signature Bank.

 

After Credit Suisse shares plunged on Wednesday, a major investor - the
Saudi National Bank - said it would not inject further funds into the Swiss
lender.

 

The worries spread across financial markets with all major indexes falling
sharply.

 

"The problems in Credit Suisse once more raise the question whether this is
the beginning of a global crisis or just another 'idiosyncratic' case,"
wrote Andrew Kenningham of Capital Economics.

 

The Swiss National Bank, which is Switzerland's central bank, and the Swiss
Financial Market Supervisory Authority sought to calm investor fears, saying
they were ready to help Credit Suisse if necessary.

 

Strict rules apply to Swiss financial institutions to "ensure their
stability" and Credit Suisse meets the requirements for banks considered
systemically important, the regulators said.

 

"There are no indications of a direct risk of contagion for Swiss
institutions due to the current turmoil in the US banking market," they said
in a joint statement.

 

The BBC understands that the Bank of England has been in touch with Credit
Suisse and the Swiss authorities to monitor the situation.

 

How bad is US banking crisis and what does it mean?

Warning that US banks face more pain

Credit Suisse, founded in 1856, has faced a string of scandals in recent
years, including money laundering charges and other issues.

 

It lost money in 2021 and again in 2022 - its worst year since the financial
crisis of 2008 - and has warned it does not expect to be profitable until
2024.

 

Shares in the firm had already been severely hit before this week - their
value falling by roughly two-thirds last year - as customers pulled funds.

 

The bank's disclosure on Tuesday of "material weakness" in its financial
reporting controls renewed investor concerns.

 

These were intensified when the chairman of the Saudi National Bank, Credit
Suisse's largest shareholder, said it would not buy more shares in the Swiss
bank on regulatory grounds.

 

At that time, Credit Suisse insisted its financial position was not a
concern. But shares in the lender ended Wednesday down 24%, as other banks
rushed to reduce their exposure to the firm and prime ministers in Spain and
France spoke out in an attempt to ease fears.

 

People queue up outside the headquarters of Silicon Valley Bank to withdraw
their funds on March 13, 2023 in Santa Clara, California.

 

 

This comes after Silicon Valley Bank (SVB) - which specialised in lending to
technology companies - was shut down on Friday by US regulators in what was
the largest failure of a US bank since 2008. SVB's UK arm was snapped up for
£1 by HSBC.

 

In the wake of the SVB collapse, New York-based Signature Bank also went
bust, with the US regulators guaranteeing all deposits at both.

 

However, fears have persisted that other banks could face similar troubles,
and trading in bank shares has been volatile this week.

 

The Stoxx Europe banking share index tumbled 7% on Wednesday.

 

In the US, shares in both small and large banks were hit, helping to push
the Dow down almost 0.9%, while the S&P 500 fell 0.7%.

 

The UK's FTSE 100 fell by 3.8% or 293 points - the biggest one-day drop
since the early days of the pandemic in 2020.

 

"This banking crisis came from America. And now people are watching how the
whole thing could also cause problems in Europe," said Robert Halver, head
of capital markets at Germany's Baader Bank.

 

"If a bank has had even the remotest problem in the past, if major investors
say we don't want to invest any more and don't want to let new money flow
into this bank, then of course a story is being told where many investors
say we want to get out."-bbc

 

 

 

 

US threatens TikTok ban if app is not sold

The US government says TikTok should be sold or else face a possible ban in
the country.

 

The video-sharing app, owned by Chinese company ByteDance, is accused of
posing a national security risk through data gathered from millions of
users.

 

A request for a change in ownership, first reported in the Wall Street
Journal (WSJ), was confirmed to BBC News by TikTok.

 

The company said a forced sale would not change its data flows or access.

 

The White House has not yet responded to a BBC News request for comment.

 

For years American officials have raised concerns that data from the popular
app could fall into the hands of the Chinese government.

 

According to the WSJ, US President Joe Biden's administration wants
ByteDance to divest itself of TikTok to create a clear break from China.

 

The newspaper said the Committee on Foreign Investments in the United States
(CFIUS), which oversees national security risks, unanimously recommended
ByteDance divest from TikTok.

 

A spokesperson for TikTok said it did not dispute the WSJ's reporting and
confirmed it had been contacted by CFIUS.

 

However, the spokesperson said the reporting was overstated and it was not
clear what "divestiture" meant in practice.

 

"If protecting national security is the objective, divestment doesn't solve
the problem: a change in ownership would not impose any new restrictions on
data flows or access." the spokesperson said.

 

"The best way to address concerns about national security is with the
transparent, US-based protection of US user data and systems".

 

A ban was first threatened under then-President Donald Trump in 2020.

 

However, Mr Biden's administration has also taken a dim view of the social
network.

 

TikTok hoovers up huge amounts of data on its users, similar to Instagram
and Twitter.

 

It can take biometric data from users and has access to location data. The
fear is the information could be passed to the Chinese government.

 

TikTok says it has undertaken an effort to move all US-based data to the US
as part of an initiative it calls Project Texas.

 

The company has told BBC News it still plans to move forward with that plan.

 

The development comes a week after new legislation was announced that would
expand the president's authority to ban TikTok nationwide was unveiled in
the senate.

 

The Restrict Act would allow the US Commerce Department to declare
foreign-linked companies national security risks.

 

TikTok is banned on government phones in the US, Canada and the EU.

 

Its chief executive, Shou Zi Chew, is set to testify before the US Congress
next week in a widely anticipated showdown.-bbc

 

 

 

 

Guo Wengui: US accuses Chinese tycoon of billion-dollar fraud

US authorities have charged a Chinese property tycoon based in New York with
orchestrating a billion-dollar fraud.

 

Guo Wengui and one of his business partners, Kin Ming Je, are accused of
wire fraud, securities fraud, bank fraud and money laundering.

 

Mr Guo is a critic of the Chinese government and an associate of ex-White
House chief strategist Stephen Bannon.

 

A fire broke out at Mr Guo's Manhattan penthouse apartment hours after he
was arrested.

 

A spokesman for the city's fire department said the fire was put out, no
injuries were reported and the cause is still under investigation.

 

In an online post earlier, Mr Guo said he was handcuffed and interrogated
for more than an hour.

 

Mr Guo goes by several aliases including Miles Guo, Miles Kwok and "Brother
Seven". He was named in the indictment unsealed Wednesday as Ho Wan Kwok.

 

The indictment alleges that Mr Guo and Mr Je raised $1bn (£830m) from
thousands of online followers who thought they were funding media businesses
and an exclusive membership club.

 

They also allegedly used a cryptocurrency called Himalaya Coin to steal
millions from investors.

 

Mr Guo's opposition to the Chinese Communist Party and his links to
high-profile, right-wing US politicians and activists earned him hundreds of
thousands of online followers, most of them Chinese people living in Western
countries.

 

Prosecutors say he took advantage of his prolific online presence to raise
money for his ventures. But instead of being invested in businesses, the
funds were allegedly funnelled into personal accounts tied to Mr Guo and Mr
Je.

 

Among other things, the money was spent on a 50,000 sq ft (4,345 sq m)
mansion in New Jersey, Lamborghini, Bugatti and Ferrari sports cars, and
nearly $1m worth of Chinese and Persian rugs.

 

Prosecutors say $100 million was put into a high-risk hedge fund and other
money was spent on luxury goods including a $140,000 piano, a $62,000
television and a $53,000 fireplace log cradle holder.

 

Guo Wengui owns the penthouse apartment of a building on Manhattan's Upper
East Side

Starting in September last year, the US government seized approximately
$634m of the proceeds from 21 different bank accounts.

 

The indictment alleges that Mr Guo built his following among opponents of
the Chinese Communist Party by founding two non-profit organisations.

 

Who is Guo Wengui?

Mr Guo was a real-estate developer who reportedly became one of China's
richest men before leaving the country in 2014.

 

In 2017, he claimed political asylum in the United States, alleging
persecution by Communist Party authorities.

 

Mr Guo has been the target of social media campaigns backing the Chinese
government, but has also been accused of spreading false rumours about Covid
and other subjects on his social media accounts and websites.

 

His outspoken opposition to China's rulers inspired several ventures with Mr
Bannon. They have appeared frequently together in online videos, and in
2020, they launched a campaign called the New Federal State of China, with
the goal of overthrowing the Chinese Communist Party.

 

Later that year, Mr Bannon was arrested while on Mr Guo's yacht in
Connecticut. Mr Bannon was charged in an unrelated case with fraud in an
alleged scheme to defraud people who funded a not-for-profit company to
build a wall on the US-Mexico border.

 

He has pleaded not guilty in that case, and was not named in the indictment
against Mr Guo and Mr Je.

 

Last year, Mr Guo's GTV Media Group agreed to pay $539m to the Securities
and Exchange Commission, the US financial regulator, to settle a lawsuit
alleging the company had misled investors in a cryptocurrency investment
scheme. The company did not admit wrongdoing in the case.

 

Mr Je, who also goes by the name William Je, was named in the indictment as
Mr Guo's financier. He is a dual citizen of Britain and Hong Kong, lives in
London, and is still at large, authorities said.

 

He is listed by UK Companies House as the director of two financial services
companies headquartered in west London: ACA Capital and Hamilton Investment
Management.

 

Among the funds seized by US authorities were bank accounts linked to
Hamilton and to Gettr, an alt-tech social media platform funded in part by
Mr Guo.

 

The BBC has contacted the companies.

 

In a statement, one of Mr Guo's foundations called the allegations against
him "fabricated and unwarranted" and accused the US justice system of being
controlled by the Chinese Communist Party, without providing evidence.-bbc

 

 

 

People face biggest fall in spending power for 70 years

The UK is expected to avoid a technical recession in 2023, Jeremy Hunt tells
the Commons.

 

People face their biggest fall in spending power for 70 years as the surging
cost of living eats into wages.

 

The government's independent forecaster said that household incomes - once
rising prices were taken into account - would drop by 6% this year and next.

 

Living standards won't recover to pre-pandemic levels until 2027, it warned.

 

It came as Chancellor Jeremy Hunt said the economy would shrink this year
but avoid recession.

 

Energy and food bills have shot up due to the war in Ukraine and pandemic,
and are squeezing household budgets.

 

Inflation - the rate at which prices are rising - is currently in double
digits.

 

It is set to more than halve to 2.9% by the end of this year, according to
the Office for Budget Responsibility (OBR). But for now, the figure remains
very high, and well ahead of average wages.

 

The drop in real household disposable income would represent "the largest
two-year fall in living standards since records began in the 1950s," Richard
Hughes, chairman of the OBR, said.

 

"We think households are going to dip into some of their savings to help
manage the squeeze on living standards and that supports growth in the near
term,"he added.

 

Chart showing living standards

The OBR looks at the government's tax and spending plans in the Budget and
then predicts how the country will perform over the next five years.

 

Previously it had expected the UK to fall into recession at the end of last
year and continue to shrink all of this year.

 

A recession is usually defined as when an economy gets smaller for two
three-month periods - or quarters - in a row.

 

The last time the UK's economy went into recession was in 2020, at the
height of the coronavirus pandemic.

 

The OBR now expects:

 

The economy to contract by 0.2% this year but avoid a recession

It will then grow by 1.8% in 2024, 2.5% in 2025 and 2.1% in 2026

Chancellor Jeremy Hunt said the predictions from the OBR were "proving the
doubters wrong".

 

But Labour criticised the announcements made during the Budget as "dressing
up stagnation as stability".

 

Adrian Hanrahan, managing director of chemicals firm Robinson Brothers in
the West Midlands, says that while the forecast is for prices to fall, at
the moment they are very high.

 

That's a huge challenge for the business, he told the BBC.

 

"I would love to consider growth and we all aspire to growth," he said.

 

"However, the challenges right now are for us to cope with high energy
costs, lack of resources, and labour shortages. Every penny we've got is
going into manufacturing, not investing."

 

The biggest issue Robinson Brothers is grappling with currently is high
energy prices, and Mr Hanrahan was disappointed not to hear anything in the
Budget to address that.

 

"All very well talking about growth in two or three years time. It's the
here and now that we want, and that wasn't available from the Budget today."

 

'Out of touch'

Independent research group the Institute for Fiscal Studies (IFS) said the
economic picture had not changed "enormously since the autumn".

 

IFS director Paul Johnson said the OBR "expects the economy to grow a bit
faster in the short-term, and a bit slower in the medium-term".

 

This would combine to create an economy that was "0.6% larger in real-terms
in 2027-28 than under the autumn forecast," he said.

 

Meanwhile, Labour leader Sir Keir Starmer accused the government of being
"out of touch" and putting the country "on a path of managed decline".

 

The chancellor also said the UK was on track to meet the government's
self-imposed spending rules.

 

According to these rules, government debt must be falling as a percentage of
growth in five years' time.

 

The chancellor has announced that the economy will avoid a "technical
recession" this year, but that doesn't mean we're out of the woods.

 

The size of the economy - the value of everything we make and produce this
year - is set to fall by about 0.2% according to the chancellor's figures.

 

It becomes a "technical recession" if the economy shrinks for two seasons
(three-month periods) in a row. So it's possible to avoid the technical
definition even if the economy is doing badly if it shrinks in the spring
and autumn but rises in the summer.

 

A forecast of a 0.2% shrinkage may be better than we thought last autumn
(shrinking by 1.4%) but it's hardly anyone's definition of doing well.-bbc

 

 

 

 

Corporation tax: Jeremy Hunt confirms rise to 25% from April

The rate of corporation tax, paid on company profits, will rise next month,
the chancellor has confirmed.

 

It will go up from 19% to 25% for companies with over £250,000 in profits,
Jeremy Hunt told the Commons.

 

He also announced a new scheme to allow every pound invested by businesses
in IT equipment, plants or machinery to be deducted in full from taxable
profits.

 

The tax hike, first announced in 2021 when Rishi Sunak was chancellor, has
been a source of much political debate.

 

Ex-PM Liz Truss attempted to scrap the policy in her mini-budget last
September and some Conservative MPs still oppose it.

 

Delivering his Spring Budget, Mr Hunt said the UK would still have the
lowest headline rate of corporation tax in the G7, a group of the world's
seven richest nations, even after the rise in April.

 

He said only 10% of businesses would pay the full rate and anticipated that
his new "full capital expensing" policy was equivalent of a corporation tax
cut worth an average of £9bn a year.

 

He told the Commons it would lead to a 3% increase in business investment a
year and without it, the UK would have "fallen down international league
tables on tax competitiveness and damaged growth".

 

The "full capital expensing" policy will mean companies can deduct spending
on investment from profits, meaning they have to pay lower amounts of
corporation tax.

 

The policy would be in place for three years initially but the government
hoped to make it permanent "as soon as we can responsibly do so", the
chancellor said.

 

Independent analysis by the Office for Budget Responsibility (OBR) said that
as a temporary measure, it provided a strong incentive for businesses to
bring forward any investment that had been planned for a later date.

 

At its peak, the scheme could see business investment up by about 3%, the
OBR report said. However it also pointed out that this was lower than the 5%
rise under the super-deduction scheme which this policy replaces.

 

Mr Hunt made the announcement after he confirmed the OBR forecasts the
British economy is to avoid a technical recession in 2023 but contract by
0.2%, before returning to growth in 2024.

 

UK has lowest headline corporate tax rate in the G7. .  .

Plans to hike corporation tax to 25% were first put forward by Rishi Sunak
two years ago, when he was chancellor under Boris Johnson.

 

The rise was justified as a means to claw back some of the billions of
pounds worth of public money that had been used to prop up businesses during
the Covid-19 pandemic.

 

Mr Sunak deferred the rise by two years, and in the time since, the policy
has been axed, reinstated and divided opinion in the Conservative Party.

 

Keeping corporation tax at 19% was a key plank of Liz Truss' low-tax
leadership platform when she beat Mr Sunak to become prime minister.

 

On 23 September, then-chancellor Kwasi Kwarteng confirmed the move in the
Commons, telling the country it would boost growth - but his Budget quickly
unravelled.

 

Three weeks later, Mr Kwarteng was sacked and the 25% policy was readopted
by Ms Truss as she sought to get investors and her own party back onside.

 

Some Tory MPs publicly oppose the rise, including Mr Johnson, despite the
fact he signed off on it when he was PM.

 

During a speech earlier this month, Mr Johnson said the government should be
"cutting corporation tax to Irish levels or lower". The rate is as low as
12.5% for some companies in Ireland.

 

Former business secretary Jacob Rees-Mogg echoed that view, saying the best
approach to tax policy was low rates with few exclusions.

 

He told the Commons: "We have a rise now in corporation tax but we then sort
of salami slice it a bit with some capital allowances to pretend it's not
much of a rise. This is not a good approach to tax policy."

 

Chart showing rates of corporation tax since 2000

 

 

 

 

Energy bill help to continue until end of June

The government will extend support for energy bills at current levels for a
further three months in Wednesday's Budget, as it seeks to boost growth.

 

Typical household energy bills in Britain had been due to rise to £3,000 a
year from April, but instead will be kept at £2,500 until the end of June.

 

But a £400 winter fuel payment will not be renewed, meaning households'
costs will still rise in the short term.

 

The chancellor is due to set out a broader plan later to grow the economy.

 

Among other things, he is expected to expand free childcare and ease pension
tax thresholds.

 

Under the Energy Price Guarantee, the government has been limiting energy
bills for a typical household to £2,500 a year, plus a £400 winter discount.

 

That help was set to be scaled back from 1 April, and with the £400 discount
also coming to an end many had warned this would heap hardship on families
already struggling with the cost of living.

 

Campaigners had urged the government to change course, pointing out that
falling wholesale energy prices have sharply cut the cost of offering
support.

 

Energy is regulated separately in Northern Ireland, where bills will be held
at £1,950 per year for an average household.

 

Chancellor Jeremy Hunt said: "High energy bills are one of the biggest
worries for families, which is why we're maintaining the Energy Price
Guarantee at its current level.

 

"With energy bills set to fall from July onwards, this temporary change will
bridge the gap and ease the pressure on families, while also helping to
lower inflation too."

 

Experts say the energy bill support scheme will not be needed this summer,
due to falling market gas prices.

 

BBC energy price graphic

Analysis firm Cornwall Insight forecasts that the Energy Price Cap - which
is set by the energy regulator Ofgem and limits what suppliers can charge
consumers per unit of energy - will fall to £2,100 a year for a typical
household from July.

 

Mr Hunt has said he will cut costs for vulnerable people by £45 a year by
bringing prepayment energy charges in line with customers who pay by direct
debit.

 

The Treasury said help for around eight million low income and vulnerable
households will continue, with families getting at least £900 in cash
payments over the next year.

 

But there are questions over the thinking behind the decision to extend the
Energy Price Guarantee. It is universal help - in other words, everyone gets
it, irrespective of how big an issue energy bills are in their home.

 

Critics say the £3bn extra it will cost would be better spent if targeted at
those who really need it.

 

Audit giant KPMG urged the government to come up with a long-term plan to
protect consumers from volatile energy prices.

 

"It can't just be another three months where we wait and see what happens to
wholesale prices," said Simon Virley, who leads its UK energy practice.

 

"The government needs to move beyond their short-term emergency measures and
find a way to target support for energy bills on those who need it
most."-bbc

 

 

 

Nigeria's Inflation Hits 21.91% Amid Cash Crunch

Inflation rose to 21.91 per cent in February compared to 21.82 per cent in
January

 

Amid the uncertainties being faced by Nigerians due to the scarcity of the
redesigned Naira notes, the nation's inflation rate rose in February.

 

Inflation rose to 21.91 per cent in February compared to 21.82 per cent in
January, the National Bureau of Statistics announced Wednesday.

 

The statistics office said the February 2023 inflation rate showed an
increase of 0.09 per cent points when compared to January 2023 headline
inflation rate.

 

More details later...

 

-Premium Times.

 

 

 

Nigeria: Fuel Subsidy Removal - No Plan for Palliatives Yet for Nigerians -
Govt

Under the federal government's 2022 to 2023 Medium-Term Expenditure
Framework, a proposal of N3.3trillion was only made for fuel subsidy between
January and June 2023.

 

The federal government says it has not concluded plans on palliatives that
would cushion the effect of fuel subsidy removal on Nigerians.

 

The Minister of State for Budget and National Planning, Clement Agba, stated
this while briefing journalists on Wednesday after the weekly Federal
Executive Council (FEC) meeting in Abuja.

 

Under the federal government's 2022 to 2023 Medium-Term Expenditure
Framework, a proposal of N3.3 trillion was only made for fuel subsidy
between January and June 2023.

 

 

Mr Agba stated that a committee headed by Vice President Yemi Osinbajo had
been working with the National Economic Council ( NEC).

 

It is a body made up of governors of the 36 states and the Federal Capital
Territory (FCT), working on the palliatives that will help to cushion the
effect of the subsidy removal.

 

According to the minister, the provisions for subsidy is up to June, 2023,
adding that the Ministry of Petroleum Resources and other relevant agencies
have also been working on the issue.

 

He, however, stated that the Minister of State , Petroleum Resources,
Timipre Sylva, would be in the best position to provide more updates on the
issue of the subsidy removal.

 

Mr Agba said: "For over a year plus now, the Vice President, Yemi Osinbajo
has been leading a Committee working on this and the National Economic
Council also has a committee that has also been doing same.

 

"So, the stage that we are in now is how to finalise the suggestions that
have come out from both the federal government and the governors' side.

 

"Like you know, it is something that is going to affect the entire nation.
They will just have to ensure that everyone is carried along, that is both
the federal and sub-national governments."

 

Mr Agba also disclosed that the council approved six medium term development
plans for Nigeria, which will run from 2021-2050, dealing with various
specifics.

 

He said: "The broad objectives are to create a stable and predictable
macro-economic environment.

 

"This is by adopting policies that are consistent with raising domestic
savings and investments, to establish a solid foundation for a concentric
diversified private sector led economy.

 

"It will as well create a more resilient business environment that creates
and support opportunities for Nigerians to realise their potentials, among
others."

 

The minister said the plans were developed in collaboration with the
sub-national governments, the three main political parties, PDP, APC and
APGA as well as the organised labour, the youth and women organisations,
religious bodies and traditional institutions.

 

(NAN)

 

-Premium Times.

 

 

 

Flying Popularity Continues to Rise in Africa

Africa has not been historically synonymous with air travel. Although it’s
the largest continent by size and population, home to 12% of the world’s
people, it hosts just 1% of the planet’s air traffic. That’s down to a
number of factors, but inadequate infrastructure, airline insolvency, and
lack of demand among African citizens are chief among them.

 

However, the dial does appear to be moving on that last issue at least. As
more airlines offer greater coverage on their route plans, and more Africans
have a larger amount of disposable income, interest in flying has steadily
recent. Of course, the pandemic put a check on such growth, but thankfully
it was just a temporary one and flying figures on the continent are now
continuing to climb.

 

Safer airlines

 

For too long, Africa endured a reputation as one of the most dangerous
places to fly anywhere in the world. This was due to lax standards, rogue
operations and old, unmaintained aircraft. However, the situation has
drastically improved in recent years, so much so that there is now a
plethora of options to choose from.

 

Indeed, there are currently 37 different airlines operating from Africa with
accreditation from the International Air Transport Association (IATA),
including such household names as Ethiopian Airlines, which is widely
regarded as one of the best airlines anywhere around the globe. This has
reassured passengers who may previously have been worried for their safety
when flying in Africa.

 

Developing infrastructure

 

One of the biggest issues plaguing African air travel has been insufficient
connectivity within the continent itself. Although there are some 800 routes
connecting African airports with countries in other continents, there are
just 500 intracontinental flight paths inside Africa itself. This means that
only 9% of air traffic in Africa was between African nations before the
outbreak of Covid-19.

 

This is clearly a problem – but it’s one which is being addressed. For
example, Brazilian small aircraft carrier Embraer has shown great interest
in developing intracontinental routes in Africa. With experience of handling
such routes in other parts of the world, and having already bolstered the
performance of some African airlines through use of its craft, Embraer is in
pole position to tackle the issue.

 

Greater demand

 

Of course, the biggest factor in the rising popularity of flying in Africa
is the people themselves. With safer aircraft and better route coverage,
more options now exist; but these would mean nothing were it not for the
interest of African citizens. A growing middle class has led to more
disposable income for everyday Africans, with many choosing to holiday
abroad in other countries on the continent.

 

At the same time, business travel is equally important to the African
aviation industry. The establishment of the African Continental Free Trade
Area (ACFTA) in 2018 has facilitated cross-border commerce and led to an
upsurge in planes traveling around the continent ferrying businessmen to and
from their work. All of this taken together means that the skies are the
limit for the African aviation industry moving forwards.

 

Has all this talk of air travel got you in the mood to take to the skies?
Until your next flight, you can visit
https://bitcasino.io/blog/tipshackstricks/aviator-game-strategies to play
the hugely popular Aviator casino game, as well as learning some tips and
tricks to improve your strategy. Happy flying!

 

 

 

Kenya: Millennials Driving Car Sales Up in Kenya

Nairobi — Millennials are a driving force behind the rise in car sales in
Kenya, and there are several reasons why this is the case. Kenya has been
experiencing steady economic growth in recent years, and this has led to an
increase in disposable income among young people. Many millennials now have
the financial means to purchase a car, and they are doing so in large
numbers.

 

With the steady rise in car prices over the past 3 years, car owners have
had to shelve the idea of disposing of their current vehicles with the fear
of not being able to afford a newer one. This is the trend globally, with
sellers in international markets such as Japan now holding their used cars
longer than in previous years.

 

 

This shortage has caused an increase in the price of used cars with small
vehicles like Toyota Vitz, Mazda Demio, and Honda Fit averaging slightly
over a million shillings. For this price, car buyers in Kenya are slowly
shifting towards buying locally used cars with a bigger engine capacity and
being disposed of around the same price or slightly higher as a smaller
vehicle that has been used foreignly.

 

The price increase is also attributed to newer features in cars like the
hybrid and electric cars, as well as those with functional upgrades like
cruise control, start-stop buttons, lane assist, and 360-degree cameras
among other features, all contributing to higher prices than their
previousmodels.

 

Despite the country's economic growth, many Kenyans are struggling with the
high cost of living, causing them to pursue loan facilities in order to
acquire newly imported cars. Data from the digital automotive financing
marketplace, Autochek Kenya shows that last year, people born between 1981
to 1996 better known as millennials, accounted for 69 percent of vehicles
purchased on loan.

 

 

This could be attributed to the fact that most people at this age are
already parenting and the need for a family car is very high. This pushes
them to look for financing especially if they want a fresh import. This age
group is also tech-savvy and environmentally conscious which triggers them
to look for newer cars with fewer carbon emissions and more advanced
features, like new hybrid models which do not come cheap. The average cost
of the cars they bought was Ksh.1,700,000.

 

"From our data, millennials are more receptive to vehicles with newer
technological features like hybrid and electric cars. This is due to their
fuel efficiency capabilities coupled with advanced features in the
vehicles." Said Michelle Gatamah, Autochek Africa's Global Head of

 

Marketing.

 

 

The data also shows that despite Toyota being the preferred car to buy, many
of them went for luxury brands such as Audi, Porche, and Mercedes Benz,
among others. "This is closely tied to millennials having access to loans
that empower them with a bigger financial muscle" continued Michelle.

 

Generation X, who were born between 1965 and 1980 spent an average of 2.2
Million shillings and went for bigger cars with good ground clearance and
like BMW X3 and X5, Subaru Outback, and Subaru Forester as well as new
crossover SUVs. They accounted for 20% of cars bought from loans.

 

This could be characterized by most of them with kids in college,
university, or just joining the workforce. Most of the people in this age
group pursued cars with off-road capabilities, a possible indication that
they are following up on their investments out of town as they plan for
retirement.

 

Closely following was generation Z, who went for smaller cars ranging at
1.3M. Born between 1997 and 2012, people in this age group are buying their
first car with their preference for Nissan, Toyota, and Suzuki cars.

 

Baby boomers bought the least amount of cars through loans. This could mean
that most of them were cashing in their retirement funds and not requiring
car loans as much as the other age sets.

 

The uptake of car culture in Kenya is also contributing to the rise in car
sales. Owning a car for personal use, status, or personal expression is
becoming more common. The rise of ride-sharing services such as Uber and
Bolt, Little Cab is also contributing to the rise as young people can now
earn an income through ridesharing, and owning a car is becoming a necessity
for those who want to participate in the gig economy.

 

The writer is Autochek Kenya Marketing and Partnership Manager

 

-Capital FM.

 

 

 

South Africa: Power Cuts Are Hurting Small Businesses in South Africa - but
Sharing Resources and Equipment Might Be a Solution

Worldwide, small and medium enterprises (SMEs) are seen as the backbone of a
thriving economy. They make up a substantial portion of the total number of
companies and are estimated to contribute over 87% of all jobs globally.

 

A recent World Economic Forum report showed that major disruptions affect
the value chain of SMEs significantly more than they affect larger
enterprises. Disruptions, such as COVID-19 and geo-political tensions, often
lead to failure among these businesses.

 

In South Africa, an example of a significant risk to SMEs is the acute
shortage of power. Power outages mean that they can't operate. No production
or trade is possible, and inventory is damaged. The enterprises can't plan
and execute their operations effectively, or meet the demands of their
customers. They can lose revenue and customers.

 

 

South Africa's acute power shortages are likely to go on for some time. But
we believe that the concept of the sharing economy holds promise to minimise
disruptions.

 

The concept is based on sharing and collaborating through digital platforms
within a community with similar characteristics. In our view, based on the
work from our doctoral research specialising in the digital transformation
of small and medium enterprises, we argue that small and medium enterprises
could use platforms like this to minimise the adverse effects of the ongoing
power cuts.

 

For example, they could share energy generation infrastructure such as
mobile battery storage units, portable generators and solar panels.

 

In addition, by sharing resources and equipment, SMEs could reduce
operational costs and increase their resilience in the face of power cuts.
The sharing economy could also help them connect with other businesses in
their community, creating new opportunities for collaboration and
partnerships.

 

 

Where it's worked

 

There are examples of this approach working elsewhere.

 

SonnenCommunity is a sharing economy platform that allows homeowners with a
battery-based energy storage system to share their excess energy with
community members. It's used in a host of countries, including Germany,
Australia, the US, Italy and the UK.

 

Members of this community are connected through a digital platform that
enables energy trade and communication between members.

 

Another example is Gridmate. This is a peer-to-peer energy-sharing platform
allowing people to donate energy to those in need.

 

In the South African context energy generation infrastructure could be
shared among community members with different scheduled power cuts. This
could include portable generators and mobile battery storage units.

 

 

However, for the system to work, communities setting up this arrangement
must be in close proximity to one another. This is because the scheduled
power cuts - known as load shedding - are normally set up in a way that one
zone will have power, while another has its power cut.

 

For this idea to work, the zones or load shedding blocks with complementary
power outage schedules should be in close proximity to each other.

 

The whole process is powered by digital platforms that facilitate sharing.
For example, a digital platform could be set up by local business forums
where there could be shared purchasing, crowdfunding, crowdsourcing, and
promotion of collective consumption.

 

The potential of the sharing economy in small and medium enterprises

 

Power outages are having a ripple effect on the economy. They are causing
delays in the delivery of goods and services, affecting consumer confidence,
and ultimately leading to a decline in economic growth.

 

For some small and medium enterprises, load shedding is a life-and-death
issue. The sharing economy would allow them to continue making a living.

 

This is particularly true for businesses operating in disadvantaged
communities. These often face additional challenges in accessing energy due
to location, limited infrastructure, financial constraints and other
factors. A more affordable and equitable energy system would allow
businesses to share resources and infrastructure.

 

Ofentse Olunloyo, Doctoral Candidate specialising in the Digital
Transformation of Small, Medium and Micro Enterprises (through the Sharing
Economy) | Master in Business Administration (MBA) | Digital Marketing
Expert, University of Johannesburg

 

Tankiso Moloi, Full Professor and Director: Academic at the Johannesburg
Business School, University of Johannesburg, University of Johannesburg

 

 

 

Uganda: Post Bank and Other State Owned Banks Take On Sustainability
Certification

As environmental, social and governance issues come to the core of corporate
governance and performance metrics in the corporate world globally, Post
Bank Uganda, Housing Finance Bank and Bank of Uganda have taken a step to
entrench these values in their operations.

 

This was revealed at the recent launch of the Sustainability Certification
Process for Uganda at Kampala Serena hotel spearheaded by European
Organisation for Sustainable Development (EOSD), the International Council
for Sustainability Standards together with Bank of Uganda and the Ministry
of Finance (MOFPED) as partners.

 

According to Arshad Rab of the Chairman of the International Council for
Sustainability and CEO of EOSD, the Sustainability Standard Certification
Initiative is the most comprehensive global frame work of its kind that will
enable local financial institutions which take it on become the drivers of
the country's 'new economy.'

 

 

"Financial institutions under the leadership of Bank of Uganda and the
Ministry of Finance which take up the Sustainability Standards Certification
Initiative (SSCI) will be equipped to take the lead in transforming the
country from a low technology and low value economy to a high value and
Hi-Tech economy" Arshad said.

 

Post Bank CEO Julius Kakeeto congratulated Bank of Uganda and Housing
Finance Bank upon being enlisted for the SSCI certification alongside Post
Bank Uganda.

 

He said "Post Bank has always been a socially oriented financial institution
with a focus on environment and governance. We have supported sanitation
projects around Kampala, renewable energy uptake through subsidized solar
loans, engaged various communities in financial literacy programs and
disbursed upkeep funds to many households across the country through our
vast branch network."

 

Going forward the bank is embedding sustainability into it's strategy having
started with making it apart of it's financial reporting and now enlisting
for the Sustainability Standards Certification Initiative, this will enable
Post Bank become a more resilient value driven financial Institution and we
look forward to acquiring the EOSD certification Kakeeto added.

 

Bank of Uganda's Deputy Governor Dr. Michael Atingi Ego while addressing
guests at the same event noted that the Standard Certification Process they
have started is in line with Bank of Uganda's mandate of ensuring price
stability and overseeing a sound financial system in the country in support
of social economic transformation. "It is for this reason the central bank
has taken a front seat in this process" he said.

 

Finance Minister Matia Kasaija congratulated the SSCI applicants HFB, BOU
and Post Bank for taking a step in the right direction and thanked the
European Organisation for Sustainable Development (EOSD) for accepting their
applications.

 

He concluded that acquiring the Sustainability Standards Certification will
enable the enlisted financial institutions deliver higher value to the
communities they serve and to their stakeholders as well.

 

 

 

Uganda: I&m Bank Uganda Launches Offshore Banking

I&M Bank Uganda in collaboration with Mauritius financial giant, Bank One
has launched Offshore Banking services for its clientele to have access to
the best global investment solutions.

 

Offshore Banking allows the client to make and receive payments
internationally, hold money and set up savings and investment accounts in
multiple currencies.

 

With this new service, I&M Bank Uganda customers will be able to manage
financial commitment across multiple countries and regions and also own bank
accounts outside their countries of residence.

 

Speaking at the launch at Kingdom Kampala Branch, the Bank's Acting Managing
Director, Mr. Sam Ntulume said the product would offer a world class
offshore banking option to its clients.

 

 

"I&M Bank boasts of a huge corporate clientele base and with our Corporate
Centre branch at Kingdom Kampala we thought it best to collaborate with our
sister company, Bank One to bring world class Offshore Banking services to
serve our high networth customers," said Mr. Ntulume.

 

Annette Nakiyaga, the Head of Marketing and Corporate Affairs added that
Offshore Banking appeals to people who reside overseas, international
expatriates, people that get paid in foreign currency, those who have family
members abroad and people that invest internationally.

 

"With Offshore Banking now available, our clients will enjoy multiple
benefits like the ability to receive payment for work done outside Uganda,
make international payments, access international funds and, most
importantly be able to diversify assets and hedge against the volatile
shilling," said Nakiyaga.

 

The requirement for one to be able to open an Offshore Bank account with I&M
Bank is a minimum of USD 5,000 deposit once an account is opened including a
balance build up period of up to 12 months (to reach USD 50,000 as deposits
or in investment).

 

Some of the benefits of I&M Bank Offshore Banking include seamless digital
banking, a dedicated relationship manager, access to an exceptional range of
international investment opportunities, a range of tailored lending
solutions in multiple foreign currencies for unique international needs and
foreign currency credit cards with loyalty benefits.

 

Bank One has been recognised internationally for being the best by Fitch
ratings. In 2022, it was named the Best International Banking Services
Provider in the Indian Ocean by CFI.co while in 2021, it scooped the Best
Mass Affluent Banking offering and Mortgage Product of the Year by the
Digital Banker (Global Retail Banking Innovation).

 

 

Nigeria: Federal Govt Assures IATA of Repatriation As Foreign Airlines'
Trapped Funds Hit $743m

Trapped funds of foreign airlines operating in Nigeria have risen to
$743.7million from $662m in January, 2023.

 

This was even as the minister of Aviation, Senator Hadi Sirika, assured the
International Air Transport Association (IATA) and foreign airlines that the
federal government would resolve the blocked funds of the foreign airlines
as soon as possible.

 

This was disclosed, yesterday, by IATA, in a letter addressed to the
minister of Aviation, Hadi Sirika, signed by the Area manager, West and
Central Africa, Dr. Samson Fatokun.

 

According to the letter, IATA and the global airline community seek an
invention from the minister for the resolution of airlines blocked funds
issues in Nigeria.

 

 

"For over a year, Nigeria has been the country with the highest amount of
airline-blocked funds in the world. Please find attached the comparative
table of airlines' blocked funds by country.

 

"Moreover, as of January 2023, airlines' blocked funds in Nigeria have
increased to $743.721.092 from $662m in January 2023 and $549m in December
2022," it pointed out,

 

However, the minister of Aviation, Senator Hadi Sirika, has assured IATA and
foreign airlines that the federal government would resolve the blocked funds
of the foreign airlines as soon as possible.

 

The minister gave the assurance when he met with IATA and foreign airline
operators, on Tuesday, to discuss trapped fund.

 

He urged international airline operators to be very considerate when dealing
with the issue bearing in mind the effects of Covid-19 and the recession the
country had experienced.

 

-Leadership.

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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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