Major International Business Headlines Brief::: 09 May 2023

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Major International Business Headlines Brief::: 09 May 2023 

 


 

 


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ü  Janet Yellen: US treasury secretary warns of debt ceiling 'catastrophe'

ü  Mortgage refused 'for hosting Ukrainian refugees'

ü  US job creation robust despite banking crisis

ü  Tata Steel warns of uncertainty over future of UK business

ü  Bunting, biscuits, beer - Brits spend on Coronation

ü  Ex-Uber security chief sentenced over covering up hack

ü  HSBC foils plan by major investor to break up bank

ü  CBI hires ethics consultancy to overhaul culture

ü  White House: Big Tech bosses told to protect public from AI risks

ü  Unionised US Apple Store proposes asking for tips

ü  Kanye West Yeezy loss is hurting us, admits Adidas

ü  Tanzania: Kwala Dry Port Construction Thrills DRC Officials

ü  South Africa: President Ramaphosa Deploys 800 SANDF Members to Protect Eskom Power Stations

ü  Africa: Germany's Scholz Urges More Cooperation During Africa Trip

ü  Africa: IMF Chief Advocates Africa Continental Free Trade Area

 


 

 


Tech layoffs: LinkedIn cuts 700 jobs and closes China app

LinkedIn has become the latest tech firm to axe jobs, closing 716 roles out of a 20,000 workforce.

 

The social media network which focuses on business professionals will also phase out its local jobs app in China.

 

In a letter by the company's chief executive Ryan Roslansky, he said the move was aimed at streamlining the firm's operations.

 

In the last six months, firms including Amazon, LinkedIn's parent Microsoft, and Alphabet have announced layoffs.

 

"With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors," Mr Roslansky wrote.

 

He also said the changes would result in creating 250 new jobs which employees affected by the cuts in its sales, operations and support teams would be eligible to apply.

 

After mostly withdrawing from China in 2021, citing a "challenging environment", the remaining app called InCareers will also be phased out by 9 August. InCareers only covers the Chinese market.

 

A LinkedIn spokesperson said the firm will keep a presence in China to help companies operating there to hire and train employees outside the country.

 

LinkedIn has been the only major Western social-media platform operating in China.

 

When launched in 2014, the firm had agreed to adhere to the requirements of the Chinese government in order to operate there.

 

At the time, US senator Rick Scott called the move a "gross appeasement and an act of submission to Communist China", in a letter to LinkedIn chief executive Ryan Roslansky and Microsoft boss Satya Nadella.-bbc

 

 

 

 

Joe Biden wants US airlines to pay stranded passengers

US President Joe Biden says he wants to implement new compensation rules for airline passengers impacted by flight delays or cancellations.

 

The rules would require airlines to pay impacted passengers beyond a ticket refund if the carrier is responsible for the disruption.

 

This may involve covering meals and hotels in the event that travellers are stranded, officials said.

 

If implemented, it would be the first measure of its kind in the US.

 

On Monday, Mr Biden and Transportation Secretary Pete Buttigieg announced the incoming set of rules at a White House news conference.

 

It comes just a few weeks after Mr Biden confirmed he will be running for re-election in 2024, and just ahead of the peak summer travel season.

 

Speaking in front of the slogan "holding airlines accountable", Mr Buttigieg said that the new rules are aimed at ensuring that passengers do not foot the bill if an airline is at fault for travel disruptions.

 

"This rule would, for the first time in US history, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay," Mr Buttigieg said in a statement.

 

The rules would also aim at defining what falls under a "controllable cancellation or delay" that is the fault of the carrier.

 

According to the US Bureau of Transportation Statistics, delays caused by airlines could include issues related to maintenance or crew problems, aircraft cleaning, baggage loading or fuelling.

 

Some airlines already offer travel credits or vouchers in the event of delays or cancellations, but the new rules would make passenger compensation, including refunds, mandatory for all.

 

The announcement is part of a broader push by the Biden administration to intervene on behalf of consumers around hot button issues including so-called resort fees and airline seating policies.

 

Last summer, the transport department launched an online dashboard that compares compensation policies of each US-based airline as a tool to pressure companies into offering more for customers.

 

In response, many major US airlines volunteered to provide meals and hotel rooms for customers who are stranded by delays that are in the airline's control.

 

But, according to the transport department's dashboard, no airlines in the US offer cash compensation to passengers who are stranded for more than three hours as part of their official policy.

 

In response to Monday's announcement, Airlines for America, which represents the biggest US carriers, said more than half of cancellations in 2022 and 2023 were caused by "extreme weather" or air traffic control outages.

 

In a statement to Reuters, it added that airlines "have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time, but safety is always the top priority".

 

The current situation in the US around airline passenger compensation is far less generous than some other places around the world.

 

This includes the European Union and the United Kingdom, which require cash compensation of up to €600 ($660; £523) per passenger in the event of delays or cancellations that are the fault of the carrier.-bbc

 

 

 

Will the US default on debt? A really simple guide to debt ceiling

The US government could start to run out of money within weeks unless it allows itself to borrow more. So how did we get to this point?

 

There are dire predictions of global financial chaos if US Congress can't agree on a deal to raise what is known as the debt ceiling.

 

If the politicians fail to reach an agreement, the US could default on its debt.

 

So, what is the debt ceiling?

Also known as the debt limit, this is a law that limits the total amount of money the government can borrow to pay its bills.

 

This includes paying for federal employees, the military, Social Security and Medicare, as well as interest on the national debt and tax refunds.

 

Every so often US Congress votes to raise or suspend the ceiling so it can borrow more.

 

The cap currently stands at roughly $31.4tn (£25.2bn). That limit was breached in January, but the Treasury Department used "extraordinary measures" to provide the government with more cash while it figured out what to do.

 

How US debt ceiling became game of political chicken

Usually it's a formality for Congress to raise the limit as needed but this time it can't seem to agree on the terms.

 

Treasury Secretary Janet Yellen has warned that without more borrowing, the US will not have enough money to meet all of its financial obligations as soon as 1 June.

 

What happens if the debt ceiling isn't raised?

This has never happened before so it is not entirely clear, but it would cause major economic damage.

 

The government would no longer be able to pay the salaries of federal and military employees, or pensions.

 

National parks and other agencies would shut down, while companies and charities that count on government funds would be in peril.

 

Weather forecasts could be affected since so many rely on data from the government-funded National Weather Service.

 

US debt ceiling nightmare is crisis of its own making

What Danes can teach the US about its debt crisis

What happens if the US defaults on its debt?

If the government stops making interest payments on its debt, that would also put the country into default. The US briefly entered default in 1979, which the Treasury blamed on an accidental cheque processing issue, but an intentional default would shock the financial system where more than $500bn in US debt gets traded every day.

 

Moody's Analytics predicts that in a prolonged stand-off, stock prices would fall by almost a fifth and the economy would contract more than 4%, leading to the loss of more than seven million jobs.

 

Over the long term, if investors start to see US debt as risky they will charge the US more to borrow money. And since government borrowing helps determine interest rates more widely, the impact would trickle out to the rest of the economy, making borrowing money for a home or a car more expensive for everyone.

 

There are debates about whether the government could prioritise interest payments to avoid a debt default. But honouring commitments to the owners of US debt, which include financial firms, pension funds and foreign investors, while retirees and others go unpaid is seen as a difficult one to sell politically.

 

What's on the table now?

Last month, Republicans put forward a deal to suspend the debt limit by $1.5tn or until 31 March.

 

In exchange, they would keep spending for key agencies at 2022 levels during the next financial year- and limit growth to 1% annually over the next decade - moves that could lead to $4.8tn in savings.

 

The proposal would repeal key priorities of the Biden administration, such as student loan forgiveness and tax incentives for electric vehicles.

 

The White House has said the deal forces "middle class and working families to bear the burden of tax cuts for the wealthiest" and has "no chance" of becoming law.

 

How can Congress reach a deal?

Many analysts expect a short-term extension to give Congress more time to reach a deal. Others are floating more radical ideas, like minting a $1tn coin to pay debt or urging the president to declare that respecting government debt is a constitutional requirement.

 

In 2011, the last time the US was seen as at serious risk of a default, talks went down to the wire, before a compromise deal including $900bn in spending cuts over 10 years was announced hours before the deadline.

 

But even delays have consequences.

 

The 2011 stand-off prompted a downgrade in the US credit rating, sent the stock market plunging - and is estimated to have cost the public at least $1.3bn in higher borrowing costs that year alone.

 

Why is the debt limit so divisive?

The debt limit debate highlights one of the fundamental ideological differences between the two major US political parties.

 

The Republicans view government spending sceptically. To them, rising national debt is evidence of out-of-control government.

 

While debt-limit brinksmanship is a relatively new strategy for the party, many Republicans believe it is necessary because the nation's current course will ultimately lead to economic and social ruin.

 

Democrats, on the whole, view national government power as a force for good - a means to improve American lives and right historical wrongs.

 

They see raising the debt limit when necessary as housekeeping necessary to maintain the operation of the government.

 

The national debt, in their view, is simply a means to fund legislative programmes that have already been discussed and approved.-bbc

 

 

 

 

Firms urged to cut down on alcohol at work parties

Businesses are being urged to limit the amount of alcohol served at work social events in order to prevent people from acting inappropriately towards others.

 

The warning from the Chartered Management Institute (CMI) comes as it releases a new poll, suggesting a third of managers have seen harassment or inappropriate behaviour at parties.

 

Women were more likely than men to say they had witnessed this behaviour.

 

The CMI's boss said alcohol "doesn't need to be the main event" at parties.

 

That's something that Sarah, who's 27 and works in finance, agrees with.

 

"There are still wild parties in my industry, but I think this needs to change," she told the BBC.

 

"I'm very conscious not to drink too much at work parties. If people want to go off and buy lots of drinks after the event, that's up to them, but I think drinking at company socials can lead to inappropriate or regrettable behaviour."

 

'My generation has a different view of alcohol'

What counts as sexual harassment at work?

Sarah says it's important that colleagues are able to socialise with each other, but that alcohol shouldn't always be at the forefront of that.

 

"A lot of my friends don't drink, or they might be on medication which prevents them drinking. It's awkward for them if they're at a work party, and they have to ask three times just to get a soft drink, and they could also feel peer pressured to drink."

 

Managers' responsibility

The CMI, which is a professional body focusing on management and leadership, surveyed more than 1,000 managers at the end of April.

 

The poll, seen exclusively by the BBC, found that almost one in three managers (29%) report that they have witnessed inappropriate behaviour or harassment at work parties.

 

Thirty-three percent of women surveyed said they had seen this behaviour, compared with 26% of men.

 

Overall, two in five (42%) said work parties should be organised around activities that don't involve alcohol. Younger people, aged between 16 and 34, were most likely to say this.

 

The chief executive of the CMI, Ann Francke, told the BBC that socialising with colleagues is "a great team building opportunity" that many people enjoy.

 

But she added that managers have a responsibility to keep inappropriate behaviour in check, and to ensure there are safeguards in place.

 

"That might mean adding additional activities alongside alcohol, limiting the amount of drinks available per person or ensuring that people who are drinking too much are prevented from acting inappropriately towards others."

 

It comes after the CBI business lobby group was plunged into crisis following allegations of a rape at a summer work party in 2019 and other sexual misconduct at the organisation, which emerged last month. A second allegation of rape subsequently emerged, as reported by the Guardian.

 

Both rape allegations are being investigated by the police.

 

'Alcohol changes behaviour'

Alison Loveday, an employment lawyer and business consultant, said many companies now see alcohol-fuelled work parties as "too much of a risk".

 

"Boozy work parties are the exception rather than the rule today. They have become much reduced because there is a realisation that alcohol and lots of people doesn't necessarily go well together," she said.

 

John, who's 66 and has worked in a range of jobs over the years, says he's seen many people embarrass themselves and act badly at work parties.

 

"Alcohol definitely changes behaviour, so it's a risk to be drinking on the company watch," he says.

 

He thinks work social events should be linked to an activity with little or no alcohol.

 

"There are loads of alternatives, such as paintballing, escape rooms, or laser quest," he said. "Usually if you ask the group, they'll be up for trying something different, rather than the same old booze-ups."

 

Knowing the boundaries

However, pub landlord Leigh Watts, who runs the Greyhound Inn in Coventry, says alcohol can still play a part in work parties.

 

"People do need to let their hair down and have a laugh, particularly after Covid, and having a few drinks with colleagues is a part of that," he told the BBC.

 

Mr Watts held a staff party of his own last month, in which workers, who ranged in age from 16 to 70, were treated to an open bar.

 

"It's about being sensible and knowing the boundaries. But you can still enjoy yourself," he said.

 

David D'Souza, from the human resources body the CIPD, said that work social events may become even more important, with the rise of hybrid working.

 

"While they can, and should, be fun, organisations and leaders must not neglect their legal and ethical responsibilities to keep employees safe - obligations they have every single day in the workplace."

 

A total of 1,009 managers took part in the CMI's poll, which was conducted between 20 and 26 April 2023. The questions on work parties were asked as part of a survey regularly sent out to CMI's membership.-bbc

 

 

 

Firms urged to cut down on alcohol at work parties

Businesses are being urged to limit the amount of alcohol served at work social events in order to prevent people from acting inappropriately towards others.

 

The warning from the Chartered Management Institute (CMI) comes as it releases a new poll, suggesting a third of managers have seen harassment or inappropriate behaviour at parties.

 

Women were more likely than men to say they had witnessed this behaviour.

 

The CMI's boss said alcohol "doesn't need to be the main event" at parties.

 

That's something that Sarah, who's 27 and works in finance, agrees with.

 

"There are still wild parties in my industry, but I think this needs to change," she told the BBC.

 

"I'm very conscious not to drink too much at work parties. If people want to go off and buy lots of drinks after the event, that's up to them, but I think drinking at company socials can lead to inappropriate or regrettable behaviour."

 

'My generation has a different view of alcohol'

What counts as sexual harassment at work?

Sarah says it's important that colleagues are able to socialise with each other, but that alcohol shouldn't always be at the forefront of that.

 

"A lot of my friends don't drink, or they might be on medication which prevents them drinking. It's awkward for them if they're at a work party, and they have to ask three times just to get a soft drink, and they could also feel peer pressured to drink."

 

Managers' responsibility

The CMI, which is a professional body focusing on management and leadership, surveyed more than 1,000 managers at the end of April.

 

The poll, seen exclusively by the BBC, found that almost one in three managers (29%) report that they have witnessed inappropriate behaviour or harassment at work parties.

 

Thirty-three percent of women surveyed said they had seen this behaviour, compared with 26% of men.

 

Overall, two in five (42%) said work parties should be organised around activities that don't involve alcohol. Younger people, aged between 16 and 34, were most likely to say this.

 

The chief executive of the CMI, Ann Francke, told the BBC that socialising with colleagues is "a great team building opportunity" that many people enjoy.

 

But she added that managers have a responsibility to keep inappropriate behaviour in check, and to ensure there are safeguards in place.

 

"That might mean adding additional activities alongside alcohol, limiting the amount of drinks available per person or ensuring that people who are drinking too much are prevented from acting inappropriately towards others."

 

It comes after the CBI business lobby group was plunged into crisis following allegations of a rape at a summer work party in 2019 and other sexual misconduct at the organisation, which emerged last month. A second allegation of rape subsequently emerged, as reported by the Guardian.

 

Both rape allegations are being investigated by the police.

 

'Alcohol changes behaviour'

Alison Loveday, an employment lawyer and business consultant, said many companies now see alcohol-fuelled work parties as "too much of a risk".

 

"Boozy work parties are the exception rather than the rule today. They have become much reduced because there is a realisation that alcohol and lots of people doesn't necessarily go well together," she said.

 

There are many alternative activities that firms could use for work events that don't involve alcohol, says John, like paintballing

John, who's 66 and has worked in a range of jobs over the years, says he's seen many people embarrass themselves and act badly at work parties.

 

"Alcohol definitely changes behaviour, so it's a risk to be drinking on the company watch," he says.

 

He thinks work social events should be linked to an activity with little or no alcohol.

 

"There are loads of alternatives, such as paintballing, escape rooms, or laser quest," he said. "Usually if you ask the group, they'll be up for trying something different, rather than the same old booze-ups."

 

Knowing the boundaries

However, pub landlord Leigh Watts, who runs the Greyhound Inn in Coventry, says alcohol can still play a part in work parties.

 

Leigh Watts treated his staff to an open bar at their work party last month

"People do need to let their hair down and have a laugh, particularly after Covid, and having a few drinks with colleagues is a part of that," he told the BBC.

 

Mr Watts held a staff party of his own last month, in which workers, who ranged in age from 16 to 70, were treated to an open bar.

 

"It's about being sensible and knowing the boundaries. But you can still enjoy yourself," he said.

 

David D'Souza, from the human resources body the CIPD, said that work social events may become even more important, with the rise of hybrid working.

 

"While they can, and should, be fun, organisations and leaders must not neglect their legal and ethical responsibilities to keep employees safe - obligations they have every single day in the workplace."

 

A total of 1,009 managers took part in the CMI's poll, which was conducted between 20 and 26 April 2023. The questions on work parties were asked as part of a survey regularly sent out to CMI's membership.-bbc

 

 

 

Deposit-free mortgage aimed at renters launched

A deposit-free mortgage specifically aimed at people currently renting has been launched by a UK building society.

 

While a handful of other no-deposit deals are available, they all need the financial backing of family or friends.

 

Skipton Building Society says while its deal requires 12 months of on-time rental payments and a good credit history, it does not need a guarantor.

 

A campaign group said while no-deposit deals could help buyers, the lack of affordable homes remains a key problem.

 

Generation Rent, which campaigns on behalf of private renters, says the shortage of properties within the budget of first-time buyers remains a major stumbling block for those struggling to get on the property ladder.

 

First-time buyers are facing an uphill battle. Rapidly rising rents have made saving for a deposit increasingly difficult, at the same time that the government's flagship Help to Buy scheme, which ran for more than a decade and helped more than a quarter of a million first-time buyers, is no longer open.

 

Since the financial crisis in 2008 there have been very few 100% loan value mortgages available. Currently there are 15 other zero-deposit products on the market, according to financial data firm Moneyfacts, accounting for just under 0.3% of the UK market.

 

The new five-year fixed-rate mortgage from Skipton Building Society is distinctive from those existing products by not requiring a guarantor and is only for people currently renting a property. However, at 5.49% the interest rate is more expensive than the average five-year fix of 5%.

 

The Skipton, which is the UK's fourth biggest building society, says it recognised a "gap in the market".

 

Stuart Haire, the society's chief executive told the BBC that "until now there has been no solution for them [renters] to buy a property due to a lack of savings or access to family wealth".

 

David is renting with his partner and new baby in North Yorkshire. "It's getting that deposit together that's really difficult with rent prices." admits David. "In an ideal world we'd buy, but it's not possible."

 

"If I can prove I've been paying rent for the last 10 years of my life why can't I have a mortgage."

 

And David is not alone. Mortgage expert Andrew Montlake believes there is demand for a product like this, which provides another option for people stuck in the rental market. He thinks it will "help some people get onto the property ladder".

 

But many renters dreaming of a home will still be unable to get their hands on one of these mortgages. Even if someone has 12 consecutive months of good rental history, they still have to pass credit and affordability checks, ruling out many with CCJs or a poor credit rating.

 

It is also difficult at the moment to find an affordable property to rent to build that track record. Demand for rented accommodation has soared to more than 50% above normal levels according to Zoopla.

 

"It's not necessarily going to help all the people who are looking to buy a first-time home if there aren't more houses available to buy," says Will Barber Taylor from Generation Rent.

 

But, he adds, "it would need to be in combination with other factors to make it effective".

 

The government's Help to Buy scheme saw the Treasury lending homebuyers between 5% and 20% of the cost of a newly-built home, and up to 40% in London. Between April 2013 and September 2022, 375,654 homes were bought using a Help to Buy loan.

 

The scheme closed to new applicants in October 2022, but there are rumours that something along similar lines could be re-introduced. Housing Minister Michael Gove has said all policies to help first time buyers are "under review".

 

But a rise in zero-deposit mortgages may not be welcomed by everyone, as riskier mortgages with a high loan to value were a root cause of the 2008 financial crash.

 

"I know you're naturally going to get comparisons to what happened last time (in 2008)," says Mr Montlake. "But that was a maverick mortgage market where lenders were just interested in volume rather than quality."

 

"The world is very different now," he says, and adds that his opinion has changed over the past 15 years, as long as the 100% loan value mortgages are "underwritten sensibly".-bbc

 

 

 

Apple co-founder says AI may make scams harder to spot

Apple co-founder, Steve Wozniak, has warned that artificial intelligence (AI) could make scams and misinformation harder to spot.

 

Mr Wozniak says he fears the technology will be harnessed by "bad actors".

 

Speaking to the BBC, he said AI content should be clearly labelled, and regulation was needed for the sector.

 

The computing pioneer signed a letter in March alongside Elon Musk calling for a pause in the development of the most powerful AI models.

 

Mr Wozniak, better known in the tech world as Woz, is a Silicon Valley veteran who co-founded Apple with Steve Jobs and invented the first Apple computer.

 

Speaking to Zoe Kleinman, the BBC's Technology Editor, he talked about both the benefits of AI, and his concerns.

 

He said: "AI is so intelligent it's open to the bad players, the ones that want to trick you about who they are."

 

The term AI covers computer systems able to do tasks that would normally need human intelligence. This includes chatbots able to understand questions and respond with human-like answers, and systems capable of recognising objects in pictures.

 

Mr Wozniak doesn't believe AI will replace people because it lacks emotion, but he did warn that, in his view, it will make bad actors even more convincing, because programmes like ChatGPT can create text which "sounds so intelligent".

 

"A human really has to take the responsibility"

He thinks responsibility for anything generated by Artificial Intelligence and then posted to the public, should rest with those who publish it: "A human really has to take the responsibility for what is generated by AI."

 

He wants regulation to hold to account the big tech firms which "feel they can kind of get away with anything" .

 

But he sounded a note of scepticism that regulators would get it right: "I think the forces that drive for money usually win out, which is sort of sad."

 

'We can't stop the technology'

Mr Wozniak was a pioneer of computing and says missed opportunities at the birth of the internet have lessons for today's architects of Artificial Intelligence. He believes "we can't stop the technology", but we can prepare people so they are better educated to spot fraud and malicious attempts to take personal information.

 

The current boss of Apple, Tim Cook, told investors last week that it was important to be "deliberate and thoughtful" in how to approach AI: "We view AI as huge, and we'll continue weaving it in our products on a very thoughtful basis."

 

Apple co-founder Steve Jobs pictured with Apple CEO John Sculley and Steve Wozniak in San Francisco, 1984-bbc

 

 

 

 

India: What the smartphone market tells us about its economy

Even as Apple touts India as its next big growth area, clouds are gathering over the country's smartphone market.

 

Industry figures show that handset sales in the country have fallen to the lowest level since 2019.

 

It comes even as the technology giant's boss says India is at a "tipping point" with its expanding middle class.

 

While Apple, which last month opened its first two stores in India, grew its market share - cheaper rivals are struggling to sell their phones.

 

According to research firm the International Data Corporation (IDC), 31m smartphones were shipped in India during the first three months of this year.

 

That was 16% lower than in the same period of 2022 and the lowest first-quarter shipments in four years.

 

IDC highlighted that the sluggish demand came amid an uncertain economic outlook and as stockpiles of handsets remain high.

 

It also said that India's overall smartphone market will be flat this year after three quarters in a row of falling sales.

 

At the same time some analysts have pointed to the growing trend of "premiumisation" - when wealthier consumers move towards more expensive products.

 

"The premium segment's share almost doubled" in the first three months of this year compared to a year ago, according to Prachir Singh from technology market research firm Counterpoint.

 

However, as brands like Apple and Samsung benefit from this trend, demand for cheaper handsets made by companies like China's Xiaomi and Realme has been hit by the tough economic environment.

 

That end of the market is suffering as users take longer to upgrade their handsets, experts say.

 

The stark contrast between Apple's fortunes and the shrinking market for cheaper devices also reflects an uneven post-pandemic recovery in Asia's third largest economy.

 

"The K-shaped recovery is not allowing the consumption demand to become broad-based nor helping the wage growth especially of the population belonging to the lower half of the income pyramid," India Ratings and Research said.

 

"As a result, while there is visible demand for high-end automobiles, mobile phones and other luxury items, demand for items of mass consumption is still subdued," it added.

 

For example, sales of entry-level scooters were down by almost 20% in April this year, compared to the same month in 2019, before the pandemic hit.

 

This indicates that lower income customers "were are still hesitant to upgrade," according Manish Raj Singhania, the president of the Federation of Automobile Dealers Associations.

 

It also reflects the on-going problems in India's rural economy, which have been worsened by extreme weather events.

 

Lack of demand in rural areas has also been driving the decline in the consumer goods, like snacks and fizzy drinks, where growth has dropped to single figures after a year and a half of double-digit increases.

 

Household spending on goods and services, which had grown 20% year on year in March 2022, has also slowed sharply this year.

 

That came as India's consumers have been squeezed by rising interest rates and stubbornly high inflation.

 

Overall, the country's economic growth slowed to 4.1% for the first three months of 2023, the lowest growth for a year, official figures show.-bbc

 

 

 

Tata Steel warns of uncertainty over future of UK business

Tata Steel has warned that the finances of its UK business face "material uncertainty" given market conditions and the level of government support.

 

Tata said a stress-test of its European arm to assess the impact of a downturn had flagged concerns for the UK unit.

 

However, Tata Steel UK said it expected trading to pick up later this year.

 

The Department for Business said the government is providing support to protect the steel industry from "unfair trade and energy costs".

 

The UK business of India's Tata Steel employs about 8,000 people, with half at the Port Talbot steelworks in Wales.

 

In results published last week, Tata said that earnings at Tata Steel Europe - which includes the UK business - fell by more than 60% in the year to 31 March.

 

It added it had carried out tests to assess the potential impact of an economic downturn in Europe, given factors such as higher inflation and interest rates.

 

These tests found the outlook for the UK business would be "adversely impacted", but it added it was continuing to "implement various measures aimed at improving its business performance and conserving cash".

 

In July last year, Tata Steel said it would make a decision over the future of the its UK business in the next 12 months.

 

One uncertainty hanging over Tata Steel UK is what level of help it could get from the government.

 

The company is still in talks with the UK government over support to switch away from existing steelmaking processes to ones that emit less carbon.

 

Currently natural gas helps heat the blast furnaces and carbon, in the form of coke, is used to make iron as part of the steel-making process.

 

Replacing those processes with electric arc furnaces could reduce carbon emissions significantly especially if the electricity is generated from renewable sources.

 

Reports have suggested that the firm will get £300m, although the cost of decarbonising the Port Talbot plant has been estimated at up to £3bn.

 

A decision on support is needed soon, as the life of Tata's blast furnaces are coming to an end and electric arc furnaces take between four and five years to build.

 

Steel industry warns of more job cuts without help

Government to offer £600m for green steel switch

Last month, Tata Steel UK told the Welsh Parliament that it wanted a "level playing field" with its European rivals to help it switch away from coal.

 

The company's director of decarbonisation, Huw Morgan, said German firm Salzgitter had received €1bn towards its decarbonisation plans. "That's half of the capital investment that we believe that they require to make the transition," he said.

 

The Department for Business said: "We consider the success of the steel sector a priority and will continue to work intensively with the industry to help secure a decarbonised, sustainable and competitive future."

 

In a statement, Tata Steel UK said that while it "starts the year at the bottom of the cycle with challenging market conditions given the difficult economic position in the UK and Europe, we ended 2022-23 with a positive cash balance and un-utilised financing facilities".

 

"We are expecting that this - along with specific actions to improve business performance - will ensure that we manage this period of downturn.

 

"We should then be well placed to optimise our production and delivery volumes in 2023-24 as market conditions improve in the latter half of the year."-bbc

 

 

 

South Africa: Farmers in South Africa Face Power Cuts and a Weak Rand - but a Number of Factors Are Working in Their Favour Too

Winter is an important season for South African agriculture, with some of its key field crops being produced during the cold months of June, July and August, and maturing after that, with harvesting in December. Preparation of the land for winter crops begins in April, which is also the same time harvesting of the summer crops begins.

 

Farmers in the Western and Northern Cape, Free State, Limpopo and other winter crop growing regions are making arrangements for growing winter wheat, canola, barley and oats.

 

All of the country's wheat production takes place during the winter months, making the winter season an important contributor to the country's wheat needs. South Africa produces roughly 60% of its wheat requirements and imports the balance. It also produces, on average, about 90% of its barley annual consumption. Domestic production of oats is about 64% of annual consumption. The country is self sufficient in canola production.

 

 

This year, the outlook for winter crops is clouded by a difficult operating environment, especially the areas that are under irrigation.

 

The two biggest headwinds are power cuts and dollar strength. Nevertheless, there are also positives which should take the pressure off food price rises that have hit consumers hard. These positives include a fall in the cost of inputs, like fertiliser and agrochemicals, as well as good harvests from the summer season just ending.

 

Headwinds

 

The main contributing factor is the increase in recurring power cuts which will affect irrigation. South Africa's agriculture has never faced a period of power cuts as severe as the current ones.

 

 

The agricultural sector in general is heavily reliant on sustainable energy. For example, recent work by the Bureau for Food and Agricultural Policy (BFAP) shows that roughly a third of South Africa's farming income is directly dependent on irrigation. This shows that disruptions in power supply generally puts at risk a substantive share of the South African agricultural fortunes.

 

Of all South Africa's field crops, wheat has the largest production - about half - under irrigation. Of the other key field crops, about 15% of soybeans, 20% of maize and 34% of sugar production are under irrigation.

 

The potential disruption of irrigation would lead to poor yields, and ultimately a poor harvest. Such an eventuality would lead to an increase in wheat imports.

 

Industry role-players and the government are alert to the problem and are monitoring the impact closely through a ministerial task team. In addition, Eskom, the power monopoly, along with the government, are exploring possibilities of reducing power cuts which are expected to spike during the winter when demand usually rises.

 

 

The second headwind is that South African farmers have not benefited fully from the decline over the past year in the US dollar prices of some of their key inputs such as agrochemicals. This is because of the weakening of the South African rand against the dollar, shaving off some of the benefits of the price decline in US dollar terms.

 

Thirdly, farmers are experiencing lower commodity prices compared with last year. But a drop in input prices is providing a necessary financial cushion.

 

There are positives

 

On the plus side, the area plantings for all South Africa's major crops are expected to be above the five-year average area. This is according to Crop Estimates Committee, a government and industry body that monitors crop production.

 

Secondly, input prices have come off from last year's highs. For example, in February 2023, essential agrochemicals such as glyphosate, acetochlor, and atrazine were down in rand terms by 32%, 18%, and 2%, respectively compared to February 2022. These price declines have continued through to March 2023.

 

These declines would have been higher had the South African Rand not weakened against the US dollar over the same period. That's because in US dollar terms, the prices of the very same agrochemicals are down by 30% from February 2022. Prices of insecticides and fungicides have also declined notably from last year's levels.

 

Also worth noting is that in February 2023, essential fertilisers such as ammonia, urea, di-ammonium phosphate and potassium chloride were down 6%, 36%, 28% and 14% in rand terms, respectively. Again, in US dollar terms, the price decline was more notable, which speaks to the impact of the relatively weaker South African rand on imported products.

 

These price changes in inputs are vital as they impact vast components of the grain input costs. For example, fertiliser accounts for a third of grain farmers' input costs, while other agrochemicals account for roughly 13%.

 

A third positive factor is that the weather conditions for the winter crops also remain positive. In its Seasonal Climate Watch update published on 03 April 2023, the South African Weather Service noted that the winter crop growing regions of South Africa will receive rains.

 

A fourth positive factor is that the summer crops, which are nearing the harvest process, are in reasonably good condition. I generally expect an ample harvest in most summer crops, which is aligned with the view of the Crop Estimates Committee.

 

Takeways

 

>From a consumer perspective, developments are broadly positive and bode well for some moderation in consumer food price inflation in the second half of the year, when the decline in commodity prices could begin to filter into the retail prices.

 

The one major risk is electricity stability. This is as much a risk for farmers as it is for consumers.

 

However, I am hopeful that the government's interventions, such as the load curtailment and diesel rebate, to limit the damage of the electricity crisis to food production will help.

 

If the government's proposed interventions help during irrigation periods - afternoons and evenings - South Africans can expect a favourable winter season. The reduction in power cuts will also be particularly beneficial for food processors.

 

Wandile Sihlobo, Senior Fellow, Department of Agricultural Economics, Stellenbosch University

 

 

 

Rwanda Registers Record-High Growth in Women-Owned Businesses

There has been a tremendous increase in female ownership of individual enterprises in the past five years, showcasing the growth of women entrepreneurship in the country, a new report by Rwanda Development Board (RDB) indicates.

 

According to RDB's annual report released last week, female ownership of businesses increased from 27 per cent in 2017 to 34 per cent in 2022, indicating a trend towards greater gender balance in the private sector.

 

For instance, the figures show, in 2022, 39 per cent of companies had at least one female company director, "which highlights Rwanda's commitment to diversity and inclusivity in corporate leadership."

 

Overall 93,764 businesses were registered in 2022, comprising 18,692 domestic companies, 74,779 individual enterprises and 63 foreign companies.

 

"Female ownership of individual enterprises has risen significantly, from 38% in 2017 to 50% in 2022, underscoring the importance of women's empowerment and gender equality in the business sector," the report reads in part.

 

 

Over one billion investment

 

According to RDB, $1.6 billion worth of transformative investments in various sectors against a target of $2bn, was registered in 2022.

 

The investment, RDB said, is expected to generate 57,627 jobs. Total exports of goods and services recorded a significant increase in 2022, reaching $2.9bn, representing a growth of 40.5 per cent from $2.1bn in 2021.

 

"Rwanda ranked first in sub-Saharan Africa in the World Justice Project Rule of Law Index, a testament to the country's commitment to upholding justice and the rule of law, and generated a remarkable increase in tourism revenues with $445 million recorded in 2022 compared to $164 million in 2021, representing a 171.3 per cent increase," the report adds.

 

Major investment deals include BioNTech, ENI, Total, Mövenpick, and ARISE.

 

Rwanda also says it successfully expanded markets for the country's exports to several destinations, including the United Arab Emirates (UAE), the Democratic Republic of Congo (DRC), and India, further enhancing trade relations and boosting the economy.

 

Manufacturing, financial services, and insurance activities accounted for 45.6 per cent of total registered investments in 2022, and are expected to create 38.5 per cent of the total jobs to be generated from the investments

 

77.3 per cent of all investments registered or $1.2bn flowed into Kigali City, followed by the Northern Province, which attracted 11.7 per cent or $192m.

 

China, India leading FDIs to Rwanda

 

China is the leading source of Foreign Direct Investments (FDIs) to Rwanda, followed by India, the latest statistics from Rwanda Development Board (RDB) indicate.

 

According to RDB, both countries invested $333.4 million, accounting for 44.3 per cent of the total foreign investment to Rwanda within 85 projects.

 

Overall, the five leading foreign investor countries registered 40.7 of all investment volume, worth $665 million.

 

Other leading sources include the UK, South Africa, Kenya, and Nigeria.

 

-New Times.

 

 

 

Liberia: Labor Minister Denies Exclusion of Civil Servants From Labor Congress

Liberia's Labor Minister Cllr. Charles Gibson has refuted a recent claim that the government is depriving civil servants of being a part of the Liberia Labor Congress (LLC).

 

According to Minister Gibson, the Civil Servants Association (CSA) allegations are untrue, and the government has no intention of preventing civil servants from joining the LLC.

 

He gave the clarity during a press conference recently. Minister Gibson explained that the CSA previously requested to form part of the LLC, but the request was denied by the court in February 2020.

 

At the time, he said the court deemed the Civil Servants Workers Union of Liberia (CSWUL) as an incorporated association consisting of civil servants working in government.

 

 

As such, Gibson said, the body could not be subjected to the Decent Work Act that governs employees and workers of private institutions, businesses, and companies in Liberia.

 

Minister Gibson maintained that CSWUL is not a labor or trade union as per the Labor Law of Liberia, and it has not been eligible for membership within the LLC.

 

The dispute highlights the ongoing struggle for labor rights and representation in Liberia.

 

However, Minister Gibson noted that the Supreme Court in 2022 confirmed that the February 2020 LLC elections were "null and void."

 

"The results of the elections were nullified by the High Court on grounds that the newly elected President of the LLC was a civil servant who was being governed by the Civil Servants Act and wanted to also be governed by the Decent Work Act intended for the private sector," Cllr. Gibson explained.

 

He said the court-mandated the Ministry of Labor to constitute a credible team to conduct the LLC elections.

 

The Labor Minister further said the government is upholding labor standards to ensure that workers are paid better wages.

 

He said workers' rights are protected, and they are given preference for better employment opportunities as compared to expatriates.

 

He claimed that the ministry has received support from the government and its partners to carry out vigorous monitoring of the labor sector across the country.

 

According to him, various regulations and standing orders are being enforced by the government to provide job opportunities for Liberians.

 

Minister Gibson encouraged citizens to acquire vocational skills and training in various technical disciplines to increase their chances of being hired by companies and businesses.

 

While he did not intend to discourage Liberians from pursuing other academic disciplines, he claimed that those acquiring vocational and technical skills have a greater advantage to get jobs following the completion of their studies as compared to their counterparts.

 

-New Daw

 

 

Rwanda Registers Record-High Growth in Women-Owned Businesses

There has been a tremendous increase in female ownership of individual enterprises in the past five years, showcasing the growth of women entrepreneurship in the country, a new report by Rwanda Development Board (RDB) indicates.

 

According to RDB's annual report released last week, female ownership of businesses increased from 27 per cent in 2017 to 34 per cent in 2022, indicating a trend towards greater gender balance in the private sector.

 

For instance, the figures show, in 2022, 39 per cent of companies had at least one female company director, "which highlights Rwanda's commitment to diversity and inclusivity in corporate leadership."

 

Overall 93,764 businesses were registered in 2022, comprising 18,692 domestic companies, 74,779 individual enterprises and 63 foreign companies.

 

"Female ownership of individual enterprises has risen significantly, from 38% in 2017 to 50% in 2022, underscoring the importance of women's empowerment and gender equality in the business sector," the report reads in part.

 

 

Over one billion investment

 

According to RDB, $1.6 billion worth of transformative investments in various sectors against a target of $2bn, was registered in 2022.

 

The investment, RDB said, is expected to generate 57,627 jobs. Total exports of goods and services recorded a significant increase in 2022, reaching $2.9bn, representing a growth of 40.5 per cent from $2.1bn in 2021.

 

"Rwanda ranked first in sub-Saharan Africa in the World Justice Project Rule of Law Index, a testament to the country's commitment to upholding justice and the rule of law, and generated a remarkable increase in tourism revenues with $445 million recorded in 2022 compared to $164 million in 2021, representing a 171.3 per cent increase," the report adds.

 

Major investment deals include BioNTech, ENI, Total, Mövenpick, and ARISE.

 

Rwanda also says it successfully expanded markets for the country's exports to several destinations, including the United Arab Emirates (UAE), the Democratic Republic of Congo (DRC), and India, further enhancing trade relations and boosting the economy.

 

Manufacturing, financial services, and insurance activities accounted for 45.6 per cent of total registered investments in 2022, and are expected to create 38.5 per cent of the total jobs to be generated from the investments

 

77.3 per cent of all investments registered or $1.2bn flowed into Kigali City, followed by the Northern Province, which attracted 11.7 per cent or $192m.

 

China, India leading FDIs to Rwanda

 

China is the leading source of Foreign Direct Investments (FDIs) to Rwanda, followed by India, the latest statistics from Rwanda Development Board (RDB) indicate.

 

According to RDB, both countries invested $333.4 million, accounting for 44.3 per cent of the total foreign investment to Rwanda within 85 projects.

 

Overall, the five leading foreign investor countries registered 40.7 of all investment volume, worth $665 million.

 

Other leading sources include the UK, South Africa, Kenya, and Nigeria.

 

-New Times.

 

 

 

 

Kenya: House Sets May 20 Deadline for Public Memoranda on Ruto's Tax Plan

Nairobi — Kenyans have until May 20 to submit their views on this year's Finance Bill.

 

Clerk of the National Assembly Samuel Njoroge said in a public notice that the correspondence can be mailed or hand-delivered to the Departmental Committee on Finance and National Planning.

 

The setting of the new timeline comes a week after the National Treasury submitted the Finance Bill 2023 to the Parliament.

 

The Bill is proposing changes to the Employment Act to allow deductions of three percent from employees' basic pay to help fund President William Ruto's ambitious plan to build low-cost homes.

 

 

Unions protest

 

Public Sector Trade Unions have already threatened to call for industrial action if the proposed taxation in the Finance Bill is enacted into law.

 

In a statement read by Kenya Universities Staff Union (KUSU) Secretary General Charles Mukhwaya, the unions said they are concerned that the average public sector worker is already over-taxed.

 

They asked Parliamentarians to reject the proposals and urged the government to immediately engage representatives of workers' unions to agree on the best way forward.

 

"The Finance Bill 2023, if passed the way it is, will see total deductions of upto 22 percent of one's monthly earnings, with the remaining 48 percent still subjected to 16 percent VAT of all goods and services bought, whose prices are ever increasing. The rising cost of living makes a public service employee a slave who cannot afford a decent life," he said.

 

 

COTU Secretary General Francis Atwoli advised the government to be cautious in its approach to tax hikes, stating that proposed taxation measures can be counterproductive.

 

Azimio rejects new taxes

 

The Azimio Coalition led by Council Chairman Wycliffe Oparanya and Siaya Governor James Orengo called on the government to stop burdening Kenyans with high taxes as the country grapples with the high cost of living.

 

"If you keep on overburdening Kenyans, it will force the citizens to rise up," Oparanya warned, adding that "the Kenya Kwanza government removed the subsidies hence exposing citizens to the high cost of living".

 

Caleb Amisi who is the Saboti MP says tax increases should not come at a time majority of Kenyans are experiencing economic hardship.

 

He urged members in the bipartisan talks committee to ensure they give priority to the issue of over-taxation that he says has overburdened ordinary Kenyans.

 

The Finance Bill 2023 also proposes a raft of taxes that will have a major impact on Kenya's digital content creators and owners of platforms that facilitate the trading of digital assets.

 

The proposal includes a 15 percent withholding tax on payments related to the monetization of digital content, which will significantly impact the thousands of young people who make their living in the digital space.

 

Also, any person who receives rental income on behalf of the owner of the premises shall deduct tax and within 24 hours remit the amount to the taxman.

 

The Finance Bill 2023 is also seeking to introduce a tax on human hair, eyelashes, switches, and artificial nails in a move that will raise the prices of these beauty products whose usage is on the rise.

 

-Capital FM.

 

 

 

Kenya's Luxury Vehicle Sales Drop 65.5% on Slow Sales

Nairobi — Local sales of luxury vehicle brands such as BMW and Mercedes-Benz, among others, dropped by nearly 70 percent in the first quarter of the year ending March 2023 due to dwindling order demand.

 

The latest data from the Kenya Motor Industry Association (KMI) shows luxury cars sold by DT Dobie and Inchcape Kenya dropped to 11 from 29 during a similar period last year.

 

While DT Dobie sold three Mercedes Benz from 11 previously, orders for BMWs and Range Rovers dropped to two and one from 10 and six, respectively.

 

The decline also extends to the total number of vehicles sold during the period.

 

Dealers only managed to sell 2,758 units, representing a 13.9 percent drop from the previous period.

 

The slump in car sales comes at a time when the country's shilling is depreciating against the US dollar, as well as the Central Bank of Kenya's move to hike interest rates, which have made procuring loans more expensive.

 

A majority of cars bought locally are financed through bank loans.

 

Land Rover was the only one that recorded the growth, up from two before.

 

-Capital FM.

 

 

 

Rwanda: Bugesera Airport to Be Completed in 2026 - Here Are 5 Things You Should Know

Construction works on the proposed international airport in Bugesera district have gained momentum and there is optimism that it could be completed by 2026.

 

In September, 2022, during the Aviation Africa Summit, Rwanda showcased the airport's structural model, a facility expected to be only 40 kilometers away from Kigali.

 

 

With an estimated $2 billion worth of investment, the airport's developers say that the facility could potentially help Africa's aviation industry take off.

 

 

Here are 5 things you should know:

 

1. More than 8 million passengers a year

 

The new facility, according to developers, will boast a 130,000-square-meter main terminal building capable of accommodating 8 million passengers a year.

 

The figure is expected to rise to over 14 million passengers in the following decades.

 

"I'm amazed, it's like a dream come true to see the impact and magnitude of this project to the population," Jules Ndenga, CEO of Aviation Travel and Logistics (ATL) Holding told CNN.

 

ATL is overseeing the construction works.

 

"We are really impassioned to see the efforts completed and starting operations."

 

The facility will also see a dedicated cargo terminal, capable of accommodating 150,000 tons of cargo a year.

 

 

2. Beyond Rwanda's borders

 

The arrival of the new airport will help address the prevailing challenge of a fragmented network of routes that means passengers often have to travel via Europe or the Middle East when flying between African countries.

 

For instance, a lack of connections across the continent is grounding Africa's untapped potential in the aviation business.

 

Despite boasting 16.75 percent of the world's population with 1.4 billion people, the continent has less than 4 percent of the global air market, according to a 2018 report by the Single African Air Transport Market - an initiative set up by the African Union.

 

3. Focus on connectivity

 

The problem of connectivity presents the "biggest challenge" to the African aviation industry, according to RwandAir Chief Executive Yvonne Manzi Makolo.

 

 

"The continent is huge, it's vast, but it's difficult and unpredictable traveling within it ... and it's extremely expensive," Makolo told CNN, in a separate interview.

 

"What's making it more challenging is the conditions of operating within the African continent. The cost of operations is so much more, whether it's airport fees, whether it's ground handling, parking, overflight (flying from one country's airspace to another's) - everything is much more expensive.

 

Sometimes up to 50 percent more than in the Middle East and Europe, which makes the ticket prices even more expensive and makes (some) routes unviable."

 

But solutions are touching down, starting with the Single African Air Transport Market (SAATM).

 

First proposed in 2018, if implemented the policy would create a single market for African aviation, facilitating the free movement of people, goods, and services. The continent currently operates under bilateral air service agreements, a highly restrictive policy that makes it difficult to open new routes.

 

Just recently, Rwanda was chosen among 17 countries that are set to participate in an implementation pilot project of the Single African Air Transport Market (SAATM).

 

So far, just 35 of the 55 African states have signed up for SAATM, with more expected to follow.

 

4. Qatar-Rwanda partnership key

 

Qatar Airways will have a 60 percent ownership of the new airport as well as acquire 49 percent of shares in the national carrier, Rwandair, offering access to over 65 locations around the world.

 

The partnership, Ndenga said, comes at a time when Rwanda is positioning itself as Africa's centerpiece for air travel.

 

"The main objective of this effort is basically to make sure that Rwanda becomes an African hub where everyone will be transiting either for tourism, but also for business and different industries," Ndenga added.

 

"The impact will be in terms of providing a platform for all the economic life of the country to develop sustainability. We see that as not only an impact on the economy but in the neighborhood ... we know that this area will become a satellite city of the city center."

 

5. Kigali International Airport to host a training school

 

The new proposed international airport in Bugesera is a significant upgrade on the Kigali International Airport (KIA), which is expected to remain operational for special arrivals, some chartered flights, and a pilot training school, reported CNN.

 

Pre-pandemic, the airport was shuttling close to 1 million passengers annually.

 

In April this year, KIA was accredited to Level 1 of the Airport Customer Experience Accreditation programme, by the Airports Council International.

 

-New Times.

 

 

 

Africa Ren Finalizes The Shareholding Reorganization Of The Senergy 2 Solar Power Plan

Pioneer in renewable energy in Africa, Africa REN announces a change in the shareholding of Senergy 2 solar power plant. Historical shareholders have sold to a new investment vehicle set up by Africa REN and its partners. Located in Bokhol, in the north of Senegal, Senergy 2 was commissioned in 2016, making it the first solar photovoltaic power plant in West Africa.

 

In 2021, Africa REN raised a new vehicle, Africa REN Energy (ARE), from the pan-African private equity fund manager Metier Sustainable Capital and the Dutch development bank FMO. Senergy 2 was originally held by Africa REN Invest (ARI), the first investment vehicle of Africa REN. It is now ARE that has just finalized the acquisition of 60% of the shares of the plant from the historical shareholders.

 

The remaining 40% in this strategic asset for Senegal is acquired by the Senegalese Caisse des dépôts et consignations (CDC) in exchange of the shares it held in ARI. The transaction also allows Africa REN to fully divest its first renewable energy financial vehicle.

 

The solar power plant remains within the Africa REN group and will continue to be managed and operated by Africa REN Operations (ARO), the group's service company. ARO has experienced local teams and management tools to maximize the assets’ performance over the long term while ensuring compliance with its obligations to the stakeholders, such as lenders and local communities.

 

Outside Senegal, Africa REN develops, finances and operates infrastructure to increase access to electricity for the people of sub-Saharan Africa. In addition to Senergy 2 (25MW), Africa REN is completing the construction of the largest solar power plant in Burkina Faso, Kodeni Solar (38MW).

 

Africa REN's reliability, agility and expertise have opened a window of opportunity for public-private partnerships in the sector. Senergy 2 is testament to the Senegalese government's energy mix policy.

 

Gilles Parmentier, CEO of Africa REN, said, "The transaction we have just completed demonstrates the dynamism of the solar sector in West Africa and the attractiveness of this asset class for investors. We would like to thank our partners in Senegal for having helped structure this strategic transaction for the country. Senegal has led the way in solar electrification and Africa REN is proud to continue to actively contribute to this adventure."

 

Jean-Louis Vinciguerra, President of ARI, said, "Operational since 2016, the Africa REN Invest (ARI) investment vehicle has been a pioneer in solar energy in Sub-Saharan Africa. This sale allows ARI to be fully divested and return funds to its investors."

 

Marc Immerman, a Principal of Metier's Sustainable Capital practice, said, "We have been working with Africa REN and FMO for several years and are delighted to partner with them on this project. Africa REN has led the way in demonstrating that it is possible to deliver clean, sustainable and competitive energy projects that have a positive impact across the region."

 

Rinse Geuzendam, Senior Investment Officer Private Equity at FMO, said, "West Africa is a region where the opportunities in terms of renewable energy development are immense. Our collaboration with Africa REN and Metier is one of our most active in the area. We are proud to be part of this project that will continue to serve the people of Senegal in a sustainable manner.

 

About Africa REN

 

Africa REN is a developer and investor in sustainable infrastructure to increase access to energy and essential services on the African continent. Africa REN develops and operates solar power plants, storage solutions, power grids, street lighting solutions, wastewater treatment plants and drinking water production.

 

www.africa-ren.com

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

Africa Day

 

May 25

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

GetBucks

EcoCash

 


TSL

Econet

Turnall

 


First Capital Bank

ZBFH

Fidelity

 


Zimplow

FMHL

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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