Major International Business Headlines Brief::: 03 May 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 03 May 2023 

 


 

 


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ü  US bank shares slide after First Republic rescue

ü  India's Go First cancels flights after bankruptcy

ü  Air travel chaos looms as US keeps 5G altimeter refit deadline

ü  UK watchdog plans to shake up stock listing rules

ü  Tinder swipes left on Russia a year after invasion

ü  Online banking fears prompt call for more hubs

ü  South Africa: Calls for Govt to Hire More Public Servants 

ü  Nigeria and Digital Banking - a Revolution Still Waiting to Happen

ü  Africa: Current Business Issues in African Countries Conference Opens in
Agadir, Morocco

ü  South Africa: Higher Load Shedding Stages Back

ü  Nigeria: Soludo Threatens Pay Cut for Workers Observing Sit-At-Home

ü  Nigeria: Strike - Demands By Resident Doctors Absurd - Ngige

ü  Ghana: Soaring Prices and Dwindling Farm Yields Drive Growing Hunger in
Ghana

 


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US bank shares slide after First Republic rescue

Shares in several regional banks in the US have dropped sharply, as
investors fear the banking crisis that has gripped financial markets is not
over.

 

The falls come a day after the collapse of First Republic, which was seized
by regulators and sold after worried customers withdrew more than $100bn.

 

It was the second biggest bank failure in US history and the third since
March.

 

Shareholders were wiped out - and are now eyeing risks at other banks.

 

California-based PacWest Bancorp, which has been under scrutiny for its
lending to firms backed by venture capital, saw shares plunge 28%.

 

Shares in Western Alliance, headquartered in Arizona, dropped 15%.

 

The turmoil comes as the banking sector is adjusting to a sharp rise in
interest rates.

 

The US central bank has raised its benchmark rate from near zero last March
to more than 4.75%. It is expected to announce another 0.25% increase this
week.

 

The moves are impacting the US economy, which could hurt banks as businesses
and households start to struggle to make debt payments.

 

Many analysts are worried about risks to banks lurking in the commercial
property sector, which has been hit by a fall in demand for office space due
to the expansion of remote work.

 

The rise in interest rates has put some banks in a bind, as higher rates
hurt the market value of some debts issued when borrowing costs were lower.

 

The fears intensified in March, when panic sparked by the sudden collapse of
Silicon Valley Bank - then the US's 16th largest lender - prompted global
sell-offs of bank shares and led many US bank customers to shift their money
to firms seen as safer.

 

Bigger banks proved to be the winners, while regional firms came under
pressure.

 

The fears claimed Signature Bank and ultimately First Republic, which could
not survive the loss of funds.

 

PacWest reported last month that its deposits shrunk 16% from the end of
December to the end of March, while Western Alliance shares fell 11%.

 

Both banks said they had seen deposits start to increase again more recently
as the fears subsided.

 

Jamie Dimon, chief executive of JP Morgan Chase, which bought First Republic
from the government, said on Monday that he thought the fall of First
Republic marked the end to "this part" of the crisis.

 

"This part of the crisis is over," he said. "Down the road, there are rates
going way up, real estate, recession - that's a whole different issue, but
for now, everyone should just take a deep breath."

 

Analysts have said the US banking system - which has more than 4,000 banks -
could be poised for a wave of consolidation as the economy weakens.

 

They have compared the situation to the 1980s, when hundreds of lenders
closed after being caught off guard by a sharp rise in interest rates and
bad commercial property loans.

 

"It's primarily been an interest rate problem but if we slide into a
recession, it could be a double whammy," said banking consultant Bert Ely.

 

"I think maybe heads are screwed on a little bit better than they were in
the 80s but there's still lots of uncertainty that's out there."-BBC

 

 

 

 

India's Go First cancels flights after bankruptcy

Indian budget airline Go First has cancelled all of its flights for the next
three days after filing for bankruptcy protection.

 

The carrier says "a full refund will be issued" to affected customers.

 

It is the first major airline in the country to file for bankruptcy since
Jet Airways went bust in 2019.

 

Go First blamed US engine maker Pratt & Whitney for having to ground many of
its planes, which it says caused a severe cash flow problem.

 

The company "had to take this step due to the ever-increasing number of
failing engines supplied by Pratt & Whitney," Go First said in a statement.

 

Go First said that the problem forced it to ground 25 aircraft - about half
of its fleet of Airbus A320neo planes - which caused about 108bn rupees
(£1bn; $1.3bn) in lost revenue and expenses.

 

The airline also accused Pratt & Whitney of not following an order by an
emergency arbitrator, which included supplying "at least 10 serviceable
spare leased engines by 27 April 2023".

 

In response, Pratt & Whitney said it was "complying with the March 2023
arbitration ruling" and it cannot comment further as "this is now a matter
of litigation".

 

India's Civil Aviation Minister Jyotiraditya Scindia said:" The government
of India has been assisting the airline in every possible manner."

 

The collapse of Go First, which is owned by Indian conglomerate Wadia Group,
underscores the fierce competition in the country's airline sector.

 

In November, the country's second and third largest carriers - Air India and
Vistara - announced that they planned to merge.

 

In 2019, Jet Airways, which was at the time one of India's biggest airlines,
was grounded after struggling with more than $1bn (£800m) of debt.

 

It has so far been unable to restart operations due facing a lengthy
insolvency process.-BBC

 

 

 

Air travel chaos looms as US keeps 5G altimeter refit deadline

The US will not delay a deadline for airlines to refit planes with new
sensors to address possible 5G interference, despite concerns the cut-off
date could cause travel disruption.

 

Transportation Secretary Pete Buttigieg said on Tuesday that airlines were
told the 1 July deadline remained in place.

 

Airlines have warned that they will not be able to meet the deadline and may
be forced to ground some planes.

 

Telecoms firms have previously delayed 5G rollout to allow airlines to
adapt.

 

The Federal Aviation Administration (FAA) and aviation companies have
previously raised concerns that C-Band spectrum 5G wireless could interfere
with aircraft altimeters, which measure a plane's height above the ground.

 

In a call with airline companies on Tuesday, Mr Buttigieg called on them to
work aggressively to retrofit their planes before the deadline, according to
the Reuters news agency.

 

Concerns about 5G interference led to some disruptions at US airports last
year.

 

Major tech companies, like Verizon and AT&T agreed last year to delay the
rollout of 5G technology until 1 July 2023 to allow airlines time to
retrofit their altimeters.

 

The decision came after several other previous delays.

 

The International Air Transport Association (IATA), a trade group
representing more than 100 airlines that fly in and out of the US, has said
that the decision to not extend the deadline makes summer disruptions more
likely.

 

"Supply chain issues make it unlikely that all aircraft can be upgraded by
the 1 July deadline, threatening operational disruptions during the peak
northern summer travel season," the organisation said on Tuesday, adding
that the estimated cost to upgrade planes is $638m (£511m).

 

"Airlines did not create this situation. They are victims of poor government
planning and coordination," Nick Careen, from IATA, said.

 

Why your new phone could disrupt flights and ground planes

Airlines have previously said they want 5G signals to be excluded from "the
approximate two miles of airport runways at affected airports as defined by
the FAA".

 

Phone companies have spent tens of billions of dollars on upgrading their
networks to deploy the 5G technology, which they say brings much faster
internet services and greater connectivity.

 

Technology companies have said 5G is safe and have accused the aviation
industry of fearmongering and distorting facts.

 

Graphic showing how 5G signal could interfere with aviation

In a separate development, the FAA on Tuesday proposed new rules for many
Boeing aircrafts due to the possibility of new 5G interference.

 

The proposed rules affect nearly 20,000 planes worldwide. They require
revised flight manuals, bans on some landings, and new operating procedures
for landings and approaches when dealing with 5G interference.

 

A representative for Boeing told Reuters that the company "continues to work
with suppliers, regulators, the airlines and telecom companies to ensure
long-term stability and help mitigate operational restrictions where
possible".-BBC

 

 

 

UK watchdog plans to shake up stock listing rules

The UK's financial watchdog has announced plans to shake up its rules in a
bid to attract more companies to list shares on UK stock markets.

 

The Financial Conduct Authority (FCA) said its proposals would simplify
regulations to make the UK "more competitive" with stock markets abroad.

 

But there are concerns the changes could erode shareholders' rights.

 

The move comes after British tech firm Arm and other businesses have shunned
the UK and chosen to list in the US.

 

Arm's decision raised concerns over the attractiveness the UK's stock
markets.

 

The FCA's proposals include replacing two listing categories with one single
one and removing the requirement for shareholders to have a vote on on
transactions such as acquisitions.

 

While the UK has been Europe's biggest financial hub for many years,
listings in the country have dropped by 40% since 2008, according to a
government review.

 

The revamp of the listing rules also comes after the boss of Microsoft hit
out at the UK after the firm was blocked from buying US gaming firm
Activision. He claimed the EU was a better place to start a business.

 

Microsoft furious after Call of Duty deal blocked

With the government making one of its post-Brexit goals to bring in a
"light-touch" set of rules for science and technology to encourage economic
growth, companies deciding the list abroad and British firms being taken
over by overseas ones has stoked fears that the UK is not as attractive.

 

Listing a firm on a stock exchange takes it from being a private to a public
company, with investors able to buy and sell shares of a company's stock on
specific exchanges. Companies often list on stock exchanges to gain access
to a wide range of investors.

 

The FCA said it wanted to make the listing regime, which are the rules
companies must follow to be allowed to list their shares in the UK, "more
effective, easier to understand and more competitive".

 

It said the current regulations had been seen by some as "too complicated
and onerous", though it pointed out decision by firms to list is based on
more factors than regulation alone, such as taxation and investment
opportunities.

 

The changes to the rulebook includes replacing existing "standard" and
"premium" listing categories with one single category and set of
requirements.

 

It would mean eligibility requirements that can deter start-ups and newer
companies are removed, the FCA said.

 

Currently, businesses wanting to list shares on any of the FTSE indexes -
which include some of the largest global firms - have to hold a premium
listing and are required to comply with the UK's highest standards of
regulation and pay substantial costs.

 

The FCA has also proposed the removal of mandatory shareholder votes on
transactions such as acquisitions to reduce frictions to companies pursuing
their business strategies.

 

'Rebalance rules'

Nikhil Rathi, chief executive of the FCA, said the reforms would "rebalance"
the burden of regulation to benefit listed companies and investors.

 

"We want to encourage more companies to list and grow in the UK, versus
other highly competitive international markets," he added.

 

But Mr Rathi said while regulation "plays an important part" in where a
company lists, it would be "influenced by many factors so substantive change
will require a concerted effort from government and industry as well".

 

Investment groups broadly welcomed the plans, but there were warnings that
the current proposals could erode shareholders' rights and undermine market
standards.

 

Richard Wilson, chief executive of interactive investor, said his firm
"strongly" supported the principles of reforming the listing rules, but said
"eroding shareholder rights risks undermining market standards, and this is
not the right answer".

 

He warned that removing mandatory shareholder votes on transactions was a
"major red flag".

 

Anne Fairweather, head of government affairs and public policy at investment
company Hargreaves Lansdown, said the move from the FCA was "welcome", but
said there needed to be consideration over the impact removing some
investors' rights would have.

 

"A focus on disclosure and engagement of investors, rather than reems of
paper in a prospectus which aren't read, is welcome," she added.

 

Andrew Griffith, Economic Secretary to the Treasury, said the proposals were
an "important step forward" in improving the international competitiveness
of the UK.

 

"We are the largest financial centre outside the US but we recognise that
companies and investors have a choice and it is important our rule book
keeps pace with practices elsewhere whilst still benefiting from the
high-quality reputation of our markets," he said.-BBC

 

 

 

Tinder swipes left on Russia a year after invasion

The owner of the dating apps Tinder and Hinge has announced it will stop
operating in Russia, more than a year after the war in Ukraine broke out.

 

Match Group said its brands were taking steps to "restrict access" to
services and would withdraw from the Russian market completely by 30 June.

 

The move comes after many global companies cut ties with Russia after the
invasion in February 2022.

 

The BBC has approached Match Group for comment.

 

The US company made the announcement in its annual report on Tuesday, adding
that it was "committed to protecting human rights".

 

In the immediate weeks after Vladimir Putin's invasion of Ukraine, many
businesses, largely Western firms, announced they were suspending activities
in Russia, or withdrawing from the country altogether.

 

As pressure from consumers grew, McDonald's, Coca-Cola, Starbucks and
Heineken announced they were cutting ties.

 

Tinder rival Bumble told the BBC it stopped operations in Russia and Belarus
in March last year.

 

Match Group, whose brands include other dating sites such as Plenty of Fish,
has made few public statements about its Russian operations.

 

However, the company, which employs more than 2,700 staff worldwide, did
flag negative impacts on its European business in March 2022, according to
news agency Reuters.

 

Match Group claims Tinder is the world's "most popular app for meeting new
people".

 

What's changed?

The time it has taken for the firm to announce its withdrawal from Russia
has been questioned, with the majority of businesses who made such
announcements doing so at the beginning of the conflict.

 

The Moral Rating Agency, a campaign group calling for Western firms to leave
Russia, said Match Group's reason for leaving being to protect human rights
wasn't credible.

 

"What has changed in the last year that made it wake up now? Putin has been
relentlessly attacking Ukraine since he invaded the country," said Mark
Dixon, founder of the Moral Rating Agency.

 

"Tinder is fast for dating action but slow on moral action. It should just
switch it off tomorrow."

 

Mr Dixon added a "silver lining" in Match Group leaving was that it cutting
off its apps in Russia would be "immediately noticed" by users there.

 

'Not a good look'

Match Group shareholder Friends Fiduciary Corp told Reuters that the
company's continued presence in Russia didn't reflect well on Match.

 

"It's not a good look for a trusted brand to be continuing operations in a
nation where the head of state has been indicted by the International
Criminal Court," said executive director Jeff Perkins.

 

Other technology firms, such as Netflix and Apple, paused operations in the
country in 2022.

 

McDonald's meanwhile confirmed it would leave for good and sell its
restaurants in May.

 

The fast food chain opened its first restaurant in the country in 1990, with
the move coming to symbolise a thaw in Cold War tensions.

 

Last week French drinks giant Pernod Ricard said it was "working hard to
find the best way" to stop exporting brands to Russia, including Beefeater
gin and Jameson whiskey, having previously admitted to restarting exports.

 

The International Criminal Court has issued an arrest warrant for Russian
President Vladimir Putin for alleged war crimes in Ukraine. It says he is
responsible for war crimes during the Ukraine war, which includes the
unlawful deportation of children from Ukraine to Russia.-BBC

 

 

Online banking fears prompt call for more hubs

Shared banking hubs should be opened more quickly to help those who feel
uncomfortable managing their finances online, a charity has said.

 

Age UK said many people who were older or on lower incomes wanted to
interact in person when dealing with money.

 

Its survey suggested that 27% of over-65s and 58% of over-85s relied on
face-to-face banking.

 

Hundreds of bank branches have closed in recent years but only four premises
shared by different banks have opened.

 

Banks have pointed to the large reduction in branch use - a trend
accelerated by the Covid pandemic - and the popularity of managing money via
smartphones, as good reason for diluting their branch network.

 

But Age UK said its survey suggested those who were most likely to feel
uncomfortable using online banking were aged over 85, female, on a low
income, or more disadvantaged than their counterparts.

 

Among those who were uncomfortable, the key concerns about online banking
were fraud and scams, a lack of trust in online banking services, and a lack
of computer skills.

 

Graph showing branch closures in different areas on deprivation scale

The survey size becomes relatively small when broken down, but Age UK said
that 34% of those with an annual income of less than £17,500 mainly banked
face-to-face, compared to 15% of those with an income of £30,000 to £49,999
a year.

 

Separate figures show that, since the start of 2020, more branches have
closed in poorer parts of the UK than in better-off areas.

 

In its report called "You can't bank on it anymore", Age UK said it was
vital that physical banking spaces were protected.

 

Charities and consumer groups have called for an acceleration in the
introduction of banking hubs, when all branches have closed in an area.

 

These hubs see counter services run for the major banks, often by the Post
Office, and dedicated rooms where customers visit community bankers from
their own bank. The costs of the hub are shared between the participating
banks.

 

However, only four hubs have opened so far, while an average of 54 branches
have shut each month since January 2015, according to consumer group Which?.
Another 48 hubs have been agreed for areas across the UK, but they can take
12 months to find a premises and get up and running.

 

Saving cash: A customer said we'd changed her life

Ring if you need financial help, says bank boss

Caroline Abrahams, charity director at Age UK, said: "We need to face up to
the fact that huge numbers of older people, the oldest old, especially, are
not banking online. Even older people who do bank online often want the
ability to talk to a bank employee in the flesh about some kind of
transaction.

 

"A lack of face-to-face banking will only serve to further exclude the
millions of people on a low income who have no or limited access to the
internet."

 

John Howells, chief executive of cash machine and cash access network Link,
said: "It is vital to protect face-to-face banking services for the millions
of consumers who rely on cash.

 

"The proposed national network of shared banking hubs being provided by the
banking industry are proving a popular and easy to use way to do that."-BBC

 

 

 

 

South Africa: Calls for Govt to Hire More Public Servants 

South African Federation of Trade Unions (SAFTU) General Secretary
Zwelinzima Vavi has urged the government to increase the number of public
servants and improve their salaries, reports SABC News. Addressing the
federation's Workers' Day gathering in Durban, Vavi said the government
needed to pay civil servants a minimum living wage of R75 per hour or
R12,500 per month. Some workers believe that the government has failed to
create enough jobs in the public sector, which has not kept up with
population growth.

 

Concert Organiser, Medical Company Deny Negligence in Treating Late Rapper
Costa Titch

 

News24 reports that claims of medical negligence and a lack of adequate
medical personnel at the popular Ultra Music Festival have emerged following
the death of hip-hop artist Constantinos Tsobanoglou, popularly known as
Costa Titch. Friends of the rapper and his manager claimed that Costa Titch
did not get proper medical assistance after he collapsed on stage at the
music festival held in Johannesburg. The 28-year-old entertainer died on
March 11. Both concert organiser Ultra SA and Altor Emergency Medical
Services, which were contracted to provide medical assistance at the event,
have denied the allegations. The City of Johannesburg has indicated that the
matter is under investigation by the police.

 

 

Prime Energy Drink Sells Out Amid Frenzy in Checkers Stores

 

Prime Energy Drink, owned by popular YouTube stars KSI and Logan Paul, has
caused a frenzy in South Africa, with some Checkers stores reporting it sold
out, reports EWN. The popularity of Prime is attributed to its scarcity and
the trend of conspicuous consumption, especially among younger people.
Parents queued outside Checkers stores nationwide to be the first to
purchase the drink, resembling scenes from Black Friday. Checkers is the
official retail partner of Prime in South Africa.

 

-South African news

 

 

 

Nigeria and Digital Banking - a Revolution Still Waiting to Happen

At the end of 2022 the Central Bank of Nigeria launched new banknotes. At
the same time it also capped withdrawal of the new banknotes. The rollout of
the currency change was shambolic. But it also led people to turn to digital
financial services such as the use of point of sale (PoS) machines for
payments in their transactions. Digital financial services are financial
services which rely on digital technologies for their delivery and use by
consumers. The Conversation Africa's Wale Fatade asks Iwa Salami, an expert
in financial technology regulation and financial regulation in emerging
economies, to explain the increase and its implications.

 

 

How did the botched currency changeover affect the way Nigerians used the
banking system?

 

The Central Bank set a deadline of 31 January 2023 for all old notes to be
deposited in banks in exchange for new. The country was plunged into a
currency crisis when all old notes were out of circulation and the new notes
were hardly circulating. The ensuing scarcity of cash made life unbearably
hard for Nigerians.

 

One outcome was that Nigerians sought alternative ways to pay for goods and
services using digital alternatives, such as point of sale machines. Between
2017 and 2022, the number of point of sale terminals in Nigeria grew
significantly.

 

In 2017, there were around 155,000 terminals, and this number has increased
to roughly 1.1 million as of April 2022. Merchants and PoS operators handle
the machines. Their operations are regulated by the Central Bank.

 

 

It also resulted in a surge in point of sales transactions in Nigeria. There
was a 40.69% year-on-year increase from the N573.72 billion (US$1.24
billion) transactions that was done in January 2022 to N807.16 billion
(US$1.75 billion) in January 2023. Total cashless transactions also rose by
45.41% year-on-year to N39.58 trillion (US$85.96 billion) in January 2023.

 

What are the most developed forms of electronic transacting in Nigeria?

 

Point of Sale (PoS): These devices are installed both by traditional banks
as well as by payment service banks. They are now ubiquitous throughout
Nigeria - in supermarkets, large retail outlets as well as in small-scale
businesses set up for this purpose only.

 

Payment service banks: These are technology driven companies licensed by the
Central Bank to engage in banking activities. Examples are Hope and
MoneyMaster.

 

 

Fintechs: This includes any app, software, or technology that allows people
or businesses to digitally access, manage, or gain insights into their
finances or make financial transactions. A number of companies offer these
services in Nigeria. They include Flutterwave, Piggyvest, OPay, Interswitch,
Kuda and Remita.

 

Online banking offered by traditional banks: All Nigerian banks offer online
services. However, the services aren't always reliable. During the currency
crisis, for example, platforms collapsed and customers were unable to
transact. Digital platforms didn't have the ability to cope with the deluge
of online transactions.

 

Mobile money: Financial service offered by a mobile network operator and can
be independent of the traditional banking network. A bank account is not
required to use mobile money services - the only pre-requisite is a basic
mobile phone.

 

Those offering this service include MTN and Airtel Africa. As with most
other countries on the continent, mobile money uptake in Nigeria has been
slow. The exception has been Kenya, where the launch of MPesa in 2007 led to
a massive uptake in mobile financial services.

 

In 2022, the Central Bank of Nigeria issued MTN the first license to operate
mobile money services. It started operations in May. MTN is the largest
mobile network operator in Nigeria.

 

Can you paint a picture of the banking landscape?

 

In 2021 Nigeria had 122.3 million active bank customers. According to
February 2022 data only 39% of Nigerians use the formal banking system.

 

As has been shown elsewhere, mobile money offerings, as well as other
digital services, can extend banking to the unbanked.

 

In 2022 the volume of transactions performed electronically in Nigeria
surged to the highest in five years. The total volume of the Inter Bank
Settlement Scheme Instant Payment Platform transactionsrose by 613.1% to 5.2
billion in 2022 from 729.2 million in 2018. Its value also increased by
381.5% from N80.4 trillion (US$174.6 billion) as at 2018 to N387.1 trillion
(US$840.67billion) in 2022.

 

In my view, the spike in the value of transactions carried out at
point-of-sale devices in Nigeria in January 2023 - they went up by 40.7%
higher compared to the same month in 2022 - shows a wider adoption of
digital payments. It is also an indication of the huge opportunities that
mobile money operators and other forms of digital payments have in Nigeria.

 

How does Nigeria's digital currency eNaira fit into the picture?

 

eNaira was launched by the Central Bank in October 2021. However, less than
0.5% of Nigerians were recorded as using it a year after its launch.

 

The Central Bank didn't have an adoption strategy for the eNaira planned
ahead of the currency change over. This was clearly a missed opportunity.

 

Although the aim of the currency was to facilitate financial inclusion and
shrink the size of the informal market, it's fallen short of the mark. It is
currently only accessible to those with bank accounts. So, despite a
reported increase in the number of e-Naira wallets to 13 million since
October 2022, and an increase in the value of transactions in 2023, a lot
still needs to be done to drive widespread adoption by the financially
excluded.

 

Rethinking its architecture and policies to drive its adoption could
include:

 

making it accessible to all with a mobile phone;

incentivising people to use it such as granting significant discounts when
used to pay taxes and for other public services; and

embedding mobile network or payments apps into Central Bank Digital Currency
wallets for the wallets to be inter-operable with mobile network operators'
infrastructure.

A lesson of the currency crisis is that fintech offers a solution to the
limitations of legacy financial institutions, and at the same time, they can
help address the financial exclusion challenge in Nigeria.

 

Had Nigeria appreciated the value of digital finance and particularly the
key role to be played by mobile money operators, the impact of the crisis
would not have been as painful.

 

Iwa Salami, Reader (Associate Professor) in Law, University of East London

 

 

 

Africa: Current Business Issues in African Countries Conference Opens in
Agadir, Morocco

Organized by Nicolais School of Business, Wagner College based in New York,
Ibn Zohr University is hosting the fourth Edition of the Current Business
Issues in African Countries (CBIAC) this year.

 

The start of Thursday's Conference brought together about 209 people from 10
Countries, across Africa and the United States.

 

Since the Conference was launched in 2017, each year, it gathers Business
Leaders, NGO Leaders, Researchers, Students, Educators from African
Countries, Wagner College, and the local New York City Community to discuss
the most pressing issues impacting businesses in African Countries.

 

 

The Theme for the 2023's CBIAC is Management and Resilience of African
Organizations in Times of Crisis." And the Topics under discussion for the
two-day Conference revolved around the reciprocal impact of businesses,
government, and society.

 

The Conference's impetus is the discussions derived from the UNCTAD 14 and
UNCTAD15 (United Nations Conference on Trade and Development) Conferences,
held in Nairobi, Kenya, in July 2016 and in Barbados in October 2021.

 

Speaking at the Official start of the CBIAC, Wagner College's Professor and
Founder of the CBIAC, Shani Carter expressed gratitude to the faculty and
Staff of Ibn Zohr University for hosting the Conference adding; this is the
first time the Conference is being hosted in Africa since its formation.

 

"Last year, one of the presenters was Sarah Bensel, who is a Ph.D. student
here and she is finishing her Ph.D. this year after the conference ended,
Sara reached out to me and asked if I was interested in

 

 

having the conference on the African continent. And I said, yes, there have
been many people who've asked me to have the conference in Africa. And so
she offered the University of Ibn Zohr."

 

Professor Carter Continued "And so that's why we're here in Morocco because
they were very interested in having the conference and promoting business
issues on the African continent. And they've been very generous with their
time and talent and everything for the last year of planning the conference
and this is the first time the conference is being held in Africa."

 

The partnership with Ibn Zohr University Wager's professor told FPA that the
conference provides a perfect opportunity for students at Ibn and
participants from other countries as well as Wagner College to increase
collaboration between faculty, students, local communities, and business
leaders; to explore productive ways, strengthen businesses, network, explore
investment opportunities, organizational growth, and finding solutions
during crisis.

 

 

The first day of the Conference saw 20 presentations which were done in
person, and virtually. The President of Ibn Zohr University Mr. Abdelaziz
Bendou, the dean, Mr. BOUAZIZ Simohamed, Ms. Aarti Ivanic, the Dean of
Nicolais School of Business at Wagner College, and Mr. BINKKOUR
Mohamed-President of the organizing committee at Ibn Zohr all expressed
their warm gratitude and unflinching support to the CBIAC.

 

Business leaders from other African countries spoke about businesses and
entrepreneurship during the pandemic and how they became flexible and
resilient and on top of that, they also shared how they succeeded in
reducing the risks of their businesses being hard hit during the global
health crisis (Covid-19 Outbreak).

 

The event also had business leaders who shed light on how the government
interacted with businesses in Morocco and lessons other countries can learn
from their experiences.

 

Sara Bensel, the person behind the invitation of CBIAC to be hosted in
Africa and at Ibn Zohr University, in her words described the conference as
a motivation for business students at the university and help shift their
mindset more positively about a lot of things and the way they see business
in Africa.

 

"This conference is going to motivate and push students to switch from
French research to English research. I mean that future researchers and
Ph.D. students turn their research to English and another that would be more
interesting, and to change that ancient module here in Morocco and
universities." Sara Bensel, a Ph.D. Student said.

 

The thematic areas of the 2023 Current Business Issues in African Countries
conference are supply chain, climate change, COVID-19, sustainable
development, and entrepreneurship.

 

Liberian Journalist, Evelyn Kpadeh Seagbeh, and Founder of Just A Girl
Initiatives is also serving on the CBIAC governing board including Abou Sy
Diakhate, a Community Organizer & Advocate from New York, Valerio Thompson
Boco from Equatorial Guinea, Savita Gautam- Professor of International
Business-New Delhi Institute of Management, Dr. Philip Munyao of Kenya,
Sarah Donovan, Chief Mpaka Princewill, Chair of Princewill Properties USA
among others.

 

-New Republic.

 

 

 

 

South Africa: Higher Load Shedding Stages Back

State power utility Eskom has announced that load shedding will be ramped up
to higher stages this afternoon (Tuesday) due to delays in the return to
service of at least nine generating units.

 

Stage 6 load shedding will commence from 4pm this afternoon until 5am on
Wednesday morning.

 

This will be followed by Stage 4 which will remain in place until 4pm.

 

Stage 6 will then commence again with a drop down to Stage 3 from 5am on
Thursday morning.

 

"The delays in returning a unit to service at Arnot, Camden, Duvha, Kendal,
Kriel, Lethabo, Matimba, Matla and Tutuka power stations contributed to the
current capacity constraints. The team is working around the clock to ensure
that generating units are returned to service as soon as possible.

 

"We thank those South Africans who do heed the call to use electricity
sparingly and efficiently in helping to alleviate the pressure on the power
system, as this is assisting in avoiding higher stages of load shedding,"
Eskom said.

 

-SAnews.gov.za.

 

 

 

Nigeria: Soludo Threatens Pay Cut for Workers Observing Sit-At-Home

Governor Charles Soludo of Anambra State has threatened to cut salaries of
workers who are absent from work on sit-at-home days in the state.

 

He spoke on the issue while addressing Anambra State workforce at May Day
celebration held at Dr. Alex Ekwueme Square, Awka on Monday.

 

According to him, Monday's sit-at-home has become an excuse for workers to
stop coming to work on Mondays, noting that it cannot continue.

 

Recently, Soludo had increased workers' salaries by 10 per cent.

 

-Daily Trust.

 

 

 

 

Nigeria: Strike - Demands By Resident Doctors Absurd - Ngige

The doctors had on Saturday requested tangible steps on the "upward review"
of CONMESS and payment of all salary arrears owed its members from 2014.

 

The Minister of Labour and Employment, Chris Ngige, has described as
"absurd" the demands by medical doctors under the aegis of the Nigerian
Association of Resident Doctors (NARD).

 

In an ultimatum issued on Saturday, the association requested tangible steps
on the "upward review" of the Consolidated Medical Salary Structure
(CONMESS) and payment of all salary arrears owed its members from 2015.

 

 

The doctors, amongst other issues, also demanded the immediate payment of
the 2023 Medical Residency Training Fund (MRTF) and threatened to embark on
an indefinite strike within two weeks if their demands were unmet.

 

The association also condemned the controversial bill seeking to compel
medical and dental practitioners to practise for five years before
relocating abroad, noting that such would rather escalate the challenge of
brain drain in the health sector.

 

But Mr Ngige while speaking during "the morning show" on Arise TV on Monday,
criticised the doctor over the ultimatum issued.

 

He said the resident doctors are suffering from "entitlement syndrome",
insisting that the federal government has gone to great lengths "to give
them everything they want."

 

"We have been managing their matter and have given them everything they
want, including the residency training programme funds, we are paying them,
even when in training, we pay them a full salary, pay them all the
allowances and you decided that we have not done enough," he said.

 

 

"As I said before, you have the option to go. It is left for the education
and health ministries to fashion out what they can do."

 

On the new bill, Mr Ngige said "So you asked that a bill submitted by a
member be removed as a condition not to commence strike? That is absurd," he
added.

 

"The entitlements syndrome, the sense of entitlement is too much in this
country and as I said earlier, you obey the law you look odd, you apply the
law, you look odd or you are a wicked man. I don't have any apologies for
whatever I have done in the management of trade disputes," the minister
said.

 

Resident doctors

 

Resident doctors are doctors undertaking training to become
specialists/consultants. They make up the bulk of the doctors in Nigeria's
tertiary hospitals and when the NARD goes on strike, activities are crippled
in such hospitals.

 

 

The association had in January issued an ultimatum to the government to
resolve issues affecting its members, including the immediate
implementation, and payment of the new hazard allowance and arrears.

 

New/Unmet demands

 

The doctors in a communique issued at the end of their National Executive
Council (NEC) meeting on Saturday and signed by their President, Emeka
Innocent, said the government is yet to meet their demands.

 

Mr Innocent said the body frowns at the deliberate refusal by the government
to pay the salary arrears of 2014,2015 and 2016 to its members as well as
the arrears of the consequential adjustment of minimum wage.

 

The NARD President said many state governors "are yet to implement the
appropriate CONMESS structure, domesticate the Medical Residency Training
Act (MRTA) or improve on the hazard allowance paid to NARD members."

 

In the nine-point resolutions, the doctors demanded an "immediate increment
in the CONMESS salary structure to the tune of 200 per cent of the current
gross salary of doctors in addition to the new allowances included in the
letter written by NARD to the Minister of Health, Osagie Ehanire, in 2022.

 

Other demands include: "The immediate massive recruitment of clinical staff
in the hospitals and the complete abolishment of bureaucratic limitations to
the immediate replacement of doctors who leave the system.

 

"Immediate commencement of payment of all salary arrears owed our members by
the various state governments, notorious amongst which is the Abia State
government."

 

-Premium Times.

 

 

 

Ghana: Soaring Prices and Dwindling Farm Yields Drive Growing Hunger in
Ghana

Accra — 'Everybody buys food. So if there's a problem with food prices then
it becomes a major driver of food insecurity.'

 

For the past five years, Laudina Mills has been selling rice meals and a
popular dish of boiled beans and fried plantain known as gorbe to a mixture
of businessmen and students near Accra Technical University, but the
skyrocketing costs of ingredients is costing her customers and cutting into
her margins.

 

"I used to sell a plate of rice for 5 cedis ($0.44), but now I have to sell
at 10 cedis," 32-year-old Mills told The New Humanitarian as she sliced a
plantain into some hot oil in Accra, Ghana's capital.

 

 

Frank Newman, a 24-year-old engineering student, is a regular customer who
has to tighten his belt. "Sometimes I skip meals and have just one square
meal a day," he said.

 

Farmers aren't faring any better.

 

"For the past two years, farmers have cut down on their production of
cereals, which is the staple in most areas in the country," said Ayuba
Abubakari, project manager for ActionAid Ghana, which has been working with
small-scale farmers.

 

High fertiliser prices have forced Peter Aye, 45, to scale back his
agricultural ambitions, for which he has taken loans from banks and family
members. At Kumasi, some 250 kilometres northwest of Accra, he can only now
cover 300 acres of land with oil palm - as well as local staples such as
cassava, plantain, and maize - compared to 400 acres previously.

 

This is mainly due to fertiliser prices, which have been rising since 2020
and further spiked as a result of Russia's invasion of Ukraine. A bag now
costs between 400-700 cedi compared to 250-350 last year, and Aye says he
has to buy them from the open market because the government's subsidy
programme is so inconsistent.

 

 

Ghana, the world's second-largest cocoa producer, is facing its worst
economic crisis in a generation. Food and farming are on the front line,
threatening a vicious cycle of rising hunger, malnutrition, and lower food
production, as well as reduced school attendance, which can have longer-term
repercussions for the country's development.

 

A combination of high commodity and energy prices, excessive lending to the
central government by the Bank of Ghana, a weak currency, and the economic
fallout from the pandemic are to blame, according to economists and aid
workers.

 

Since neighbouring countries such as Togo, Burkina Faso, and Côte d'Ivoire
import Ghanian produce to supplement domestic production, the West African
nation's woes could also undermine regional food security.

 

 

Consumer inflation slowed to 45% in March from a 22-year-high of 54.1% in
December, but the pain continues for ordinary Ghanians. This is partly
because inflation rates for food and non-alcoholic beverages, and for cereal
and cereal products, remain high: 50.8% and 68.8% respectively.

 

"Everybody buys food. So if there's a problem with food prices, then it
becomes a major driver of food insecurity," said Andrew Agyei-Holmes, a
research fellow at the Institute of Statistical, Social and Economic
Research of the University of Ghana. "[Cereals and cereal products] are what
is consumed by many households," he explained.

 

Ghana's currency, the cedi, depreciated 40% against the US dollar last year,
and the country is in the process of restructuring its debt. It stopped
repayments in December, on reaching a preliminary deal with the
International Monetary Fund (IMF) on a $3 billion rescue package.

 

Ghana's bid is being closely watched by others in similar positions. About
60% of low-income countries and 30% of middle-income countries are currently
considered at high risk of - or are already in - debt distress, according to
a recent report by food systems experts.

 

Rising hunger

 

In 1957, Ghana became the first sub-Saharan nation to gain independence from
British colonial rule. It has since been hailed as one of the most
politically and economically stable countries on the African continent, but
the lower-middle income country is seeing an increase in people going
hungry.

 

"For us as a community food bank, it was quite clear that hunger was
increasing because we started having this rapid growth in terms of demand
for food, mostly from people in the middle class," said Elijah Amoo Addo,
chef and founder of Food for All Africa.

 

Servings of hot meals, which his organisation provides to vulnerable groups,
jumped to over 1,000 packs a week in the second quarter of 2022, from 700
packs previously, and they are now providing between 1,100 and 1,500.

 

The new hungry are not only those who became unemployed during the economic
downturn but also people who still have jobs, according to Addo: "Almost 20%
of beneficiaries currently under the hot meals programme are working, but
they have not received their salaries for two to three months now."

 

The latest official figures showed 42% of the population - 13 million out of
30.8 million people - were eating low quality food or reduced their food
intake between April and June 2022 (a decrease from 49% in the previous
quarter), but vast majorities of those surveyed said they have inadequate
foods (96%), are worried (95.4%), ate less (91.1%), and skipped a meal
(88.5%). Nearly two in three said they had "run out" of food.

 

More worryingly still, among children under five, wasting - being too thin
for their height - has doubled since 2017, according to a February 2023
report by the government and two UN agencies.

 

The national figures also mask geographic inequalities, as two in three
people are going hungry in the worst-affected regions, such as the Upper
East and the North East.

 

A major cause of rising hunger is stagnant wages, said Lucia Acosta,
coordinator of CEHDA, an association founded by Ghanians who migrated to
Spain that has been helping students and small-scale farmers in the Savannah
Region in Ghana's northwest.

 

"I am experiencing it in my daily life," Acosta said. "Comparing the price
of an item with the price in my own country in Spain or in Europe, it's
almost the same. But when you compare the salaries here in Ghana, it's a
fifth of the average salary in Spain."

 

The World Bank has said poverty in Ghana is expected to increase in the
short term "due to the cumulative effects of increases in electricity and
water tariffs, rising food prices and an increase in VAT (value added tax)".

 

The crisis is also affecting the government's school meals programme - a key
initiative aimed at tackling hunger and malnutrition, and at increasing
enrolment at the same time. Set up in 2005 and supervised by the Ministry of
Gender, Children and Social Protection, it provides public school students
with a daily meal. "In the rural areas where there is quite a lot of
poverty, the only incentive for children to go to school is because of the
meal," explained Addo.

 

The programme has been criticised for its meagre budget of one cedi ($0.09)
per pupil, and for offering low-quality food. Kate Bigson, a lecturer at Wa
Technical University in far northwest Ghana who led an assessment into the
nutritional quality of the meals, blames this largely on the financing
structure, whereby the caterers have to finance the meals up front and are
reimbursed by the government later.

 

After 18 years, the future of the initiative is now on the line. Local media
reported that caterers in some regions recently protested and threatened to
stop working after the government failed to pay them. Without sustained
support, enrolment will decline and students will drop out, while well-off
parents will send their children to the more expensive private schools, said
Abubakari.

 

"For Action Aid, we think that education is a public good and once you try
to privatise it, then you widen inequality," he added.

 

An unpredictable future

 

Abubakari believes the government should provide social protection
programmes for communities, including farmers, and there should be concerted
efforts for debt relief at regional and international levels because
austerity measures often stipulated in bailouts prevent governments from
enacting programmes to help people.

 

Meanwhile, Addo recalls speaking to a 69-year-old mother in rural Ghana who
relies on monthly remittances of 250 cedi to her mobile phone from her
working son in Accra.

 

"The government, in trying to solve the economic challenges, instituted an
electronic levy on monies transferred through mobile platforms. The amount
she received is reduced, yet the prices of food have doubled," he said.

 

"It seems our government is not taking into consideration the fact that
whatever decisions or measures they put in place would affect the ordinary
and low-income citizens of Ghana. You are talking about almost half of our
population."

 

Rashid Abubakar Iddrisu, CEHDA's president and founder, grew up in the Sawla
community in northwestern Ghana where he says hunger is increasing every
year as yields dwindle amid changing rainfall patterns.

 

Iddrisu left Ghana years ago in search of a better life, travelling to
Europe through Burkina Faso, Niger, Algeria, and Libya. Eventually he
settled in Spain, only to find more hardship and poor pay. He set up CEHDA
in 2007 to help people like him in Spain, but also to inform people back
home of the realities of migration and provide them with livelihood
opportunities. Climate change is now threatening to wreck those hopes.

 

"We used to have the first rains in February. By the end of February, people
were already farming and waiting for the second rain," he said. "Now, we
have the first rains at the end of March. We don't know when the second rain
will come."

 

To build resilience, CEHDA is making its own compost, turning to local and
ancestral seeds, and advocating an agroecological approach that cares for
the soil and shuns chemicals.

 

Action Aid, which said it has seen similar disruption in the rainfall
patterns in the south, is also promoting food sovereignty and agroecology to
the farmers it is supporting, most of whom are small-scale, women, and grow
food for local consumption.

 

Agyei-Holmes, the agricultural economist, was more optimistic, telling The
New Humanitarian he even sees some opportunities to increase food
production.

 

In Ghana's middle belt, the first rains seem to be lasting longer while the
second rains are arriving earlier, he said. This provides an opportunity to
grow more crops but also a short period to dry them, but farmers are
reluctant to expand production for fear of losing their harvests to
spoilage, Agyei-Holmes explained.

 

"So if we can address this problem of storage and drying, we can push
farmers to produce in both seasons, and the total production will be
something like 160% or 170% [of normal production]," he said.

 

For Agyei-Holmes, it's even more vital to improve Ghana's food security and
agriculture because of its role in feeding other nations: "The Ghanaian
situation, if it worsens, will become a problem for us, but [it will be]
more problematic for our neighbours who import grains from us."

 

Jessica Ahedor reported from Accra, Ghana. Thin Lei Win reported from Turin,
Italy. Edited by Andrew Gully.

 

Jessica Ahedor, Freelance journalist based in Ghana, and the founder of
Science Journalism Ghana, a news platform focused on medicine, the
environment, engineering, and science and technology

 

Thin Lei Win, Freelance journalist covering food systems and climate change

 

Read this report on The New Humanitarian. The New Humanitarian puts quality,
independent journalism at the service of the millions of people affected by
humanitarian crises around the world.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

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
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any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


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