Major International Business Headlines Brief::: 12 May 2023

Fri May 12 11:02:30 CAT 2023

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Major International Business Headlines Brief::: 12 May 2023 

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ü  Elon Musk says he has appointed new Twitter boss

ü  UK saw sluggish growth at start of year

ü  Peloton recalls 2 million bikes over injury risk

ü  Australian government approves first new coal mine since elected

ü  New York City passes law barring weight discrimination

ü  Adidas to sell Yeezy shoes and donate proceeds

ü  UK interest rates: Prices to be higher for longer, Bank of England warns

ü  India's Russia oil imports jumped tenfold in 2022, bank says

ü  South Africa: Mining Production Slows, Diamonds and Platinum Hit Hardest 

ü  Angola Overtakes Nigeria As Top African Crude Oil Producer

ü  Nigeria's Energy Deficit - Preparing for Fuel Subsidy Removal

ü  Nigeria: Cross River Barite Processing Plant to Save Nigeria $300m Yearly - Minister

ü  Kenya: Safaricom Ethiopia Gets Licence to Offer M-Pesa Services

ü  Uganda: Kampala-Masaka Road Cut Off By River Katonga

ü  Ethiopia's Informal Currency Exchanges - Validate or Veto?

ü  South Africa: Cabinet Welcomes Decision to Appeal Load Shedding Exemption Ruling

         Elon Musk says he has appointed new Twitter boss

He announced the news on the social media platform, which he bought last year for $44bn (£35.2bn).

Mr Musk did not name the site's new boss but said "she" would start in six weeks, at which point he would become executive chairman and chief technology officer.

He has been under pressure to name someone else to lead the company and focus on his other businesses.

Last year, after Twitter users voted for him to step down in an online poll, he said: "No one wants the job who can actually keep Twitter alive."

However, although Mr Musk had said he would hand over the reins, it was by no means clear when or even if it would happen.

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Tesla shares rose after the announcement. Mr Musk has previously been accused by shareholders of abandoning Tesla after his takeover of Twitter and damaging the car company's brand.

"We ultimately view this as a major step forward with Musk finally reading the room that has been around this Twitter nightmare," Dan Ives from the investment firm Wedbush Securities said.

"Trying to balance Twitter, Tesla, and SpaceX as CEOs (is) an impossible task that needed to change," Mr Ives added.

According to two US media reports, NBCUniversal's head of advertising Linda Yaccarino was in talks to become the chief executive of Twitter. The Wall Street Journal and Variety cited people familiar with the matter.

Twitter did not comment on the reports. NBCUniversal did not immediately respond to a BBC request for comment.

It is sometimes difficult to know when the billionaire and owner of Twitter is being serious.

Last month, when the BBC asked Mr Musk who was going to be boss of Twitter, he said he had made a dog Twitter's leader.

But if Mr Musk has indeed appointed a female executive, it would make her one of the few women to reach the top of a major technology company.

Women accounted for fewer than 10% of chief executives of tech firms included in America's 500 biggest companies last year.

Although Mr Musk has talked about paid subscribers to Twitter Blue, it is advertising that brings in the vast majority of revenue at Twitter.

The new boss will no doubt seek to improve relationships with advertisers, and smooth their fears over content moderation.

Mr Musk, a self-proclaimed free speech absolutist, has said he took over Twitter to protect free speech. However advertisers do not want their content next to misinformation or extremist content.

He purchased Twitter in October only after a lawsuit forced him to go through with the deal. Upon taking charge, Mr Musk controversially fired thousands of staff in a bid to cut costs at the firm, which has struggled to be profitable.

In March, Mr Musk said those efforts had paid off and the platform's finances were improving.

And last month he told the BBC that most of the advertisers that had abandoned Twitter immediately after the acquisition had returned.-BBC

UK saw sluggish growth at start of year

The UK saw weak growth at the start of the year as the economy was affected by strike action.

The economy grew by just 0.1% in the January to March period, the Office for National Statistics (ONS) said.

The figure comes a day after the Bank of England said it was more optimistic about prospects for the UK and that the economy would avoid recession.

The Bank also increased interest rates to 4.5% from 4.25% in its continued attempt to slow soaring price rises.-bbc

Peloton recalls 2 million bikes over injury risk

Peloton is recalling more than two million exercise bikes over concerns that the seat assembly could break during use and injure customers.

Owners have been advised to immediately stop using the bikes and contact Peloton for a free repair.

The company has received numerous reports of injuries including "a fractured wrist and lacerations" after the bike's seat detached during use.

The recall applies to bikes sold in the US from January 2018 through May 2023.

The US government's Consumer Product Safety Commission issued the recall on Thursday alerting owners to injury risks associated with bike model number PL-01.

Peloton issued a statement saying it has identified 35 reports of "seat posts breaking" out of the 2,160,000 bikes sold as of 30 April.

"As part of our commitment to product safety, we are voluntarily recalling the seat post of affected units to provide a free replacement seat post," the company said.

Peloton said members who purchased a bike in the UK, Germany and Australia are not impacted by the recall. The company is in talks with Canadian regulators and will issue an update to Canadian customers "within the coming days."

Peloton bikes soared in popularity during the pandemic after gyms closed to curb the spread of Covid-19. A basic Peloton bike starts at $1,445 (£1154), according to the company's website.

But the at-home exercise retailer has weathered controversy over the years. News of the latest voluntary recall sent the company's stock plunging by more than 8% on Thursday.

In 2019, the company came under fire for an ad campaign featuring a husband gifting his wife with an exercise bike for the Holidays.

"A year ago, I didn't realise how much this would change me," the woman says in the ad before documenting her exercise journey. Critics on social media labelled the campaign "sexist" and even "dystopian" and the backlash sent the company's stock plunging.

A year later, the company recalled its treadmill model after a child died and more than 70 people reported injuries.

Then, in a shocking twist, Mr Big, a fan-favourite character on the HBO series Sex and the City, died suddenly from a heart attack after riding a Peloton bike. The news devastated both fans and the company's share price, which fell more than 75% in 2021, according to CNN.

Later that year, Peloton CEO and co-founder John Foley resigned as the company struggled to turn business around as its pandemic popularity faded.-bbc

Australian government approves first new coal mine since elected

The Australian government has approved a new coal mine for the first time since it was elected - on a climate action platform - last year.

The government was bound by national environment laws when considering Central Queensland's Isaac River coal mine, a spokeswoman said.

Only one coal mine proposal has ever been blocked under those laws.

Scientists have repeatedly warned that any new fossil fuel projects are not compatible with global climate goals.

The Isaac River coal mine - which will be built near Moranbah, an 11-hour drive north of Brisbane - is expected to produce about 2.5 million tonnes of coal over five years.

The mine will extract metallurgical coal, also known as coking coal, which is used in steelmaking.

Although a small mine compared to others in the state, its production could amount to some 7 million tonnes of greenhouse gases in its lifetime, think tank the Australia Institute says.

Environment groups had called on the government to block the new development, on the grounds it would increase global emissions and damage the habitat of endangered or vulnerable species like the koala, the central greater glider and the ornamental snake.

But when Environment Minister Tanya Plibersek's proposed decision was announced on Thursday afternoon, the government said no-one had made submissions during the formal consultation period.

"The Albanese government has to make decisions in accordance with the facts and the national environment law - that's what happens on every project, and that's what's happened here," a spokeswoman for Ms Plibersek said .

The proponents of the mine, Bowen Coking Coal, will have the opportunity to respond to any proposed conditions on the development before it is formally approved - usually in a matter of months.

Since it came to power in May 2022 after campaigning on greater climate action, Anthony Albanese's Labor government has enshrined into law a stronger emissions reduction target - of 43% by 2030 - and has negotiated the introduction of a carbon cap for the country's biggest emitters.

But it has refused to rule out new coal and gas projects.

And while it in February blocked a coal mine on environmental grounds for the first time in history, it did not consider climate in doing so.

The UN's Intergovernmental Panel on Climate Change (IPCC) says any new fossil fuel projects are not compatible with the aim of the Paris Agreement - limiting global warming to 1.5 degrees. In fact, existing fossil fuel infrastructure must be urgently phased out, it says.

Greens environment spokeswoman Sarah Hanson-Young said the decision demonstrated a need for reform.

"Australia's environment laws are clearly broken. Polluting projects are failing to be assessed for the emissions they create," she said.-BBC

New York City passes law barring weight discrimination

New York City has passed a bill outlawing discrimination based on weight, joining a growing movement in the US to make size a protected trait on par with race and gender.

More than 40% of American adults are considered obese and studies show weight stigma is pervasive.

The bias can bring sharp costs, such as lower wages, especially for women.

City Councilman Shaun Abreu said weight discrimination was "a silent burden people have had to carry".

During public hearings, supporters cited difficulty navigating seating at restaurants and theatres, getting turned away by landlords, and butting up against weight limits on the city's bike sharing programme.

Councilman Abreu, who sponsored the bill, said he became more aware of the issue when he gained more than 40lb (18.1kg) during lockdown and saw a shift in how he was treated. He said the lack of protections had amplified the problems people face.

"They're being discriminated against with no recourse and society saying that's perfectly fine," he said.

The measure is expected to be signed into law by New York's mayor later this month. The effort received widespread support, passing 44-5, despite scepticism in some quarters.

New York City council's minority leader, Joseph Borelli, who is a Republican, told the New York Times he was worried the law would empower New Yorkers "to sue anyone and everything".

"I'm overweight but I'm not a victim. No-one should feel bad for me except my struggling shirt buttons," he said.

Michigan has barred workplace discrimination based on weight since 1976 and a handful of other cities, including San Francisco and Washington DC, have legislation on the books.

State-level bills have now been introduced in New York, Massachusetts, Vermont, and New Jersey.

The efforts follow a dramatic increase in obesity rates over the past 20 years.

Tegan Lecheler, advocacy director for the National Association for the Advancement of Fat Acceptance, which worked with Councilman Abreu on the New York City bill, said she hoped the measure would "encourage a larger conversation of framing this beyond health".

"It's not a health issue. It's a civil rights issue," she said. "This is really about if people are safe and protected and have the right to be in spaces."

New York's human rights law already bars discrimination in housing, the workplace and public accommodation based on 27 characteristics, including age, marital status, disability and national origin.

The bill adds weight and height to that list, while including exceptions for jobs in which weight and height are a "bona fide occupational qualification" or where there is a public health and safety concern.

Councilman Abreu said he hoped the move by the largest city in the country would encourage other cities and states to follow suit.

"We want this bill to send a message to everybody that you matter, regardless of if you're above or below average weight," he said. "That's why we pushed this."-BBC

Adidas to sell Yeezy shoes and donate proceeds

Adidas has decided to sell some of the trainers and other products it made with rapper Kanye West and donate some of the proceeds to charity.

The German sportswear giant cut ties with the celebrity, now known as Ye, last year after he made anti-Semitic comments.

The decision has cost the firm millions in sales and has it facing its first annual loss in more than three decades.

Shoes from the collaboration remain wildly popular in the resale market.

Chief executive Bjoern Gulden said the company was still working out how the sales would happen.

"What we are trying to do now over time is to sell some of this merchandise... burning the goods would not be a solution," he said at the company's annual shareholder meeting.

Adidas has about 1.2bn euros (£1bn; $1.3bn) worth of Yeezy shoes sitting in storage.

Mr Gulden said the firm had decided to sell some of the merchandise, instead of donating it, because it did not want to see the products reach the market indirectly.

Last week, Adidas said that if it decided not to "repurpose" its remaining unsold Yeezy stock, it would hurt its operating profit by €500m this year.

Kanye West Yeezy loss is hurting us, admits Adidas

Adidas Kanye West's Yeezy shoes 'collectors' items'

A sale could help reduce some of those losses. Ye will also be entitled to some of the money, under the terms of the partnership.

Shares in Adidas were up 2% following the meeting.

The company is being sued by investors who claim Adidas knew about Kanye West's problematic behaviour years before it ended their partnership.

Investors allege Adidas failed to limit financial losses and take precautionary measures to minimise their exposure.

Mr Gulden defended Adidas' years-long collaboration with the designer and musician, saying that "as difficult as he was, he is perhaps the most creative mind in our industry".

The company said it had concluded an internal investigation into reports that the artist had created a "toxic" environment.

It said the review had not substantiated all allegations of misconduct but that "erratic" behaviour had created challenges. It said that the firm was putting in place changes to prevent such problems from happening in the future. -BBC

UK interest rates: Prices to be higher for longer, Bank of England warns

Soaring food costs mean prices will remain higher for longer, the Bank of England warned, as it raised interest rates for the 12th time in a row.

Interest rates were hiked to 4.5% from 4.25% - the highest in almost 15 years - in the battle to slow inflation.

"It's taking longer for food price [falls] to come through," Bank boss Andrew Bailey told the BBC.

But Mr Bailey was more optimistic on how quickly the UK economy would grow, saying it would now avoid recession.

The Bank has been rapidly raising rates to try to slow the sharp rise in the cost of living.

UK inflation remains close to its highest level for 40 years, and is not dropping as quickly as predicted as prices in UK supermarkets remain high.

Some have questioned why a drop in the cost of wholesale food prices globally has not led to falls in the prices charged by UK supermarkets.

However, Mr Bailey said he did not think supermarkets and other grocers were charging customers more than they should.

"It actually doesn't look like that's going on," he told the BBC, adding that higher energy prices and the war in Ukraine had made it harder to import some foods and led to higher costs for retailers.

"Energy is quite a big element in the cost of food production and that's certainly had an effect in this crisis. Often producers have bought forward (supplies) at high prices because they were concerned about whether they were going to get the things they needed.

"But, as we said before, we are in very unusual times."

He said grocers had told him that they expected food inflation to "come down quite rapidly" throughout the rest of the year.

UK supermarkets have said there is typically a three to nine-month lag to see price falls reflected in shops.

On Thursday, the Treasury met with representatives from all major UK supermarkets to discuss food prices. The British Retail Consortium (BRC), which represents grocers, said the discussion was "very constructive".

"Retailers were able to explain the main drivers of food inflation, including high labour costs, energy prices, and manufacturing costs," it said.

It added that it had asked the government what it could do to mitigate the high cost of policy initiatives around packaging, recycling and the new Windsor Framework and UK border checks.

Inflation

The Bank now expects overall inflation - the rate at which prices rise - to drop to 5% by the end of this year, above the 4% previously predicted.

The increase in interest rates will mean higher mortgage, credit card and loan payments for some people, but the rise in rates could benefit savers.

By raising rates, the Bank expects people to have less money to spend and buy fewer things, which should help stop prices rising as quickly.

However, it also makes it harder for firms to borrow money and expand.

Around 85% of all mortgages are fixed-rate, according to the Bank, and about 1.3 million households are expected to reach the end of their deals this year and face a hike of up to £200 per month, based on current rates.

Compared with pre-December 2021 before interest rates began to rise, a typical tracker mortgage customer will be paying about £417 more a month, and variable rate mortgage holders about £266 more.

Mr Bailey said that while all inflation is difficult, rising food prices hit those on lower incomes harder because they spend a higher proportion of their money on food. "We are very, very conscious that all inflation is difficult and particularly for those least well off."

The Bank's chief economist Huw Pill recently sparked a backlash when he said people in the UK needed to accept that they would be worse off.

Mr Bailey said: "I don't think Huw's choice of words was the right one... to be honest and I think he would agree with me."

Better growth

Separately, the Bank of England was more positive on the outlook for the economy over the next few months - a stark contrast from its forecast six months ago when it said the UK would enter the longest recession on record.

"Modest but positive growth," is now expected, according to the Bank.

When the effects of strikes and the extra Bank Holiday for King Charles' Coronation are stripped out, the economy will have grown by 0.2% both in the first three months of the year and between April and June, the Bank predicts.

Falling energy prices as well as measures to help businesses and households announced in the Budget last month have led the Bank to change its forecasts.

What the latest interest rate rise means for you

When will interest rates start to go down?

Interest rates raised for 12th time in a row

The government has pledged to halve the rate of inflation by the end of the year.

Chancellor Jeremy Hunt said while it was "good news" that a recession was not longer forecast, the interest rate rise was "obviously be very disappointing for families with mortgages".

"But unless we tackle rising prices, the cost of living crisis will only carry on," he added.

Labour's shadow chancellor Rachel Reeves said the rise would leave people "wracked with anxiety".

UK interest rate graphic

Helen Parry, who works for DC Fruit and Veg in Stoke-on-Trent, said she had seen changes in her customers' choices and how they were avoiding treating themselves later in the month.

"They come, they do their shopping, they get what they need, and as the month goes on towards when their next payday is, it slows down a little bit," she said.--BBC

India's Russia oil imports jumped tenfold in 2022, bank says

India's imports of Russian oil rose tenfold last year, according to Indian state-controlled lender Bank of Baroda.

The figures show Asia's third largest economy saved around $5bn (£4bn) as it ramped up crude purchases from Moscow.

It comes as Western countries have been cutting their imports of energy from Russia after its invasion of Ukraine.

Russia has been selling energy at a discount to countries like China and India, which is the world's third largest importer of oil.

In 2021 Russian oil accounted for just 2% of India's annual crude imports. That figure now stands at almost 20%, Bank of Baroda said.

India's purchases of oil from Russia during the last financial year, saved it around $89 per tonne of crude, the figures show.

Despite pressure from the US and Europe, India has refused to adhere to Western sanctions on Russian imports. New Delhi has also not explicitly condemned Russia's invasion of Ukraine.

India has defended its oil purchases, saying that as a country reliant on energy imports and with millions living in poverty, it was not in a position to pay higher prices.

Since the Ukraine war began, Europe had imported six times more energy from Russia than India, the country's External Affairs Minister S. Jaishankar said in a TV interview last year.

"Europe has managed to reduce its imports while doing it in a manner that is comfortable," he said.

Mr Jaishankar added: "If it is a matter of principle why did Europe not cut on the first day?"

With no end in sight to the conflict, some analysts expect Russia to continue to offer cheap oil to Asia's biggest energy importers.

"We expect Russian crude intake to remain limited to these two countries [India and China], sustaining the steep discounts," Vandana Hari, from energy analysis firm Vanda Insights told the BBC.

India's oil refiners will continue to maximise their profit margins for as long as they can, but will simply "go back to their usual crude diet" if the sanctions were to be lifted, she added.-bbc

South Africa: Mining Production Slows, Diamonds and Platinum Hit Hardest 

Statistics South Africa data has shown that mining production and sales slowed by 2.6% in March 2023 compared to March 2022, reports SABC News.  The largest contribution to the decline in the annual figure came from diamonds and platinum group of metals. However, on a monthly basis, mining production exceeded expectations, increasing by 6.5% in March compared to February. Gold, platinum group of metals, iron ore, and manganese contributed to the increase. Economist at Efficient Group, Dawie Roodt says load shedding and the logistical constraints in the country will pose a challenge for mining production in the latter part of the year.

Fraud Charge Laid Against New Johannesburg Mayor 

A case of fraud has been reported at a police station in Soweto against Johannesburg Mayor Kabelo Gwamanda, reports eNCA. The allegations are connected to his investment company, iThemba Lama Afrika. The complainants say they were deceived into investing in the company with the expectation of substantial profits. Main opposition party Democratic Alliance (DA) is backing the individuals who filed the charges.

Excessive Spending on Councillors' Security Raises Concerns in KwaZulu-Natal Municipalities

Councillors in KwaZulu-Natal municipalities have spent R84.4 million on over 500 bodyguards and R21.9 million on chauffeurs, without proper risk assessment, reports News24. This is according to a report by the provincial cooperative governance and traditional affairs (Cogta) department, which monitors expenditure on councillors' security on a quarterly basis. The report highlights the lack of threat analysis for councillors receiving security. The top 10 municipalities with the highest security expenditures are Umzumbe, Harry Gwala district, uPhongolo, uMuziwabantu, uMgungundlovu district, Dannhauser, uThukela, Nkandla, and uMvoti. The eThekwini metro has the highest security budget at R21.7 million. Security analyst  Ntsikelelo Breakfast said councillors had "gone overboard".

-South African news

Angola Overtakes Nigeria As Top African Crude Oil Producer

Angola has now emerged the topmost crude oil producer in Africa, upstaging Nigeria as the latter's output level hits a new low.

The direct communication data in the April 2023 monthly oil market report (MOMR) of the Organization of Petroleum Exporting Countries (OPEC) shows that Angola recorded 1.06 million barrels per day (mbpd) crude production in April 2023.

Despite initial optimism, Nigeria's oil output dropped 23 per cent, month-on-month, MoM, to 999,999 barrels per day, bpd, in April 2023, from 1.3 million bpd in the preceding month of March 2023.

Also, on year-on-year, YoY, Nigeria's output level indicated a drop of 16.7 per cent to 999,999 bpd in April 2023, from 1.2 million bpd recorded in the corresponding period of 2022.

After a steady decline to about 1.1 mbpd in the second half of 2022, due majorly, to oil theft, Nigeria's oil output began to recover after a nationwide outcry in the fourth quarter of 2022 hovering at 1.3 million bpd in the first quarter of 2023.

At less than 1.0mbpd, this is the lowest production rate Nigeria has recorded in the year 2023 while Angola's output shows steady increases.

The OPEC figure is close to that of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the regulatory authority in Nigeria's petroleum industry, which shows that Nigeria produced 998,602 barrels per day during the period.

The OPEC report further stated that total OPEC-13 crude oil production averaged 28.60 million barrels per day in April 2023, lower by 191,000 barrels per day, month-on-month. Overall, the report showed that crude oil output increased mainly in Saudi Arabia, Angola and Iran, while production in Iraq and Nigeria declined.

OPEC noted in the MOMR that Nigeria's economy faced challenges in gaining momentum in the first quarter of 2023, with business activity and consumer spending remaining subdued, in addition to high input-cost inflation and lower employment levels compared with 2022.

-Vanguard.

Nigeria's Energy Deficit - Preparing for Fuel Subsidy Removal

According to the World Data Lab 2022, of the total 216.7 million Nigerians, 32 per cent live in extreme poverty. More than half of the extremely poor Nigerians, precisely 53 per cent of the extremely poor live in rural areas where the deprivation of access to basic social infrastructure such as access to reliable electricity in communities, public institutions, schools, hospitals, agro-processing, etc is at its highest.

According to the World Bank, only 57 per cent of Nigeria's population in 2021 has access to grid electricity. Forty-three per cent of Nigerians do not have access to grid electricity most of whom are in rural areas. This makes Nigeria the country with the largest energy access deficit in the world. The lack of reliable power is a significant constraint for the economy's growth and development as citizens and businesses in Nigeria experience an annual economic loss estimated at $26.2 billion as a result of poor electricity access.

The functionality of basic public services and utilities such as better health services, access to water, education, and agriculture, is dependent on their access to steady electricity.

Energy access has the potential to remove households from poverty. Access to electricity has a beneficial and considerable impact on household consumption per capita, increasing energy consumption leads to a decline in the poverty level.

However, connection to the electricity network does not imply actual access to the electricity supply in a reliable way. The 57 per cent of Nigerians connected to the national electricity grid are largely met with poor, unreliable electricity supply. This shortcoming is because the current grid generation capacity is about 4,500 megawatts (as against an installed capacity of 12,000 megawatts). Whereas total demand stands at around 35,000 to 40,000 megawatts.

More than 80 per cent of the actual power needs of on-grid consumers are met by using expensive diesel and petrol-fuelled backup generators. Given the poor grid access, over 22 million small gasoline generators are being used to power households and small businesses in Nigeria. This is costing domestic and business owners an estimated expense of $14 billion yearly to power 14GW of small-scale diesel and petrol-generating units because of the insufficient availability of electricity.

Nigeria's informal sector classified as micro, small and medium enterprises (MSMEs), makes up 65 per cent of the country's GDP. In Nigeria, 80.4 per cent of employment is in the informal sector. Most of the MSMEs identify unreliable electricity as a major challenge to their businesses and are willing to pay for a switch to renewable energy with the right incentive and product guarantee.

The Manufacturers Association of Nigeria (MAN) claimed that 40 per cent of the cost of conducting business in Nigeria is related to power generation expenses. These costs are doubling up fast as the fuel pump prices of independent retailers of petrol across the country have adjusted their pump prices to between N185 and over N300 per litre. With the plan to remove fuel subsidy, the effect on businesses and the population, especially women and youth who already bear the largest burden of the energy deficit, will be enormous.

Beyond the economic cost of these fossil generators, these generators are harmful to the health of the users causing approximately 1,500 deaths per year from inhaling generator smoke and carbon monoxide; increasing the chances of lung cancer by 70 per cent and causing hearing impairment in 2 of 3 users.

To reduce the burden and consequences caused by the poor electricity access in Nigeria, dependence on fossil fuel and the need to create more jobs to curb rising unemployment, and insecurity and boost productivity across sectors, households, businesses, investors and the government (at all levels) need to invest in other alternative sustainable energy sources that guarantee business optimization, reduce production cost, ensure healthy and clean environment like solar energy.

However, the purchase of solar power systems and other renewable energy appliances for Nigerian customers is capital-intensive for both individual customers and businesses. The increasing affordability of RE will mean the provision of access to energy financing for citizens. According to the Central Bank of Nigeria (CBN), the financial inclusion rate in Nigeria has grown up to 64 per cent. CBN targets and predicts this figure to increase to 95 per cent by 2024. Therefore, by implication, most Nigerian customers served by the banks do not have access to reliable electricity.

Financial institutions or governments through the Central Bank of Nigeria (CBN) and other regional international development organisations like ECOWAS and the African Development Bank (ADB) can develop financial mechanisms and institutions that will offer bank customers and small business associations in the region very low cost (single digit) loans to help them access reliable energy technologies.

To increase RE supply and lower the market prices, the federal government through the Federal Ministry of Finance, Budget and National Planning, should be consistent and committed to ensuring that its revenue-generating agenda is not compromising and destroying private sector efforts. For instance, exorbitant import duties and taxes on RE components is a huge barrier to generating clean jobs, increasing energy access for all, catalysing improved functionality of public utilities and encouraging private sector-led growth.

The Office of the Presidency should use its executive power to enforce the cutback or removal of the import duties on renewable energy components. This can be done through a quota limit on the free/zero duties on RE components, while also protecting the local production quota and enforcing local knowledge expansion in these technologies.

The renewable energy sector market and projects should be private sector led, not public sector as it currently is. For efficiency and effective growth of the renewable energy sector and speedy access to electricity for all, the private sector should be encouraged by the government with the right policies and regulations that increase energy access for all Nigerians.

John is with the Renewable Energy Association of Nigeria (REAN)

-Daily Trust.

Nigeria: Cross River Barite Processing Plant to Save Nigeria $300m Yearly - Minister

The Minister of Mines and Steel Development, Arc Olamilekan Olagbite, has said that Nigeria will no longer spend over $300 million every year to import processed barite for the oil sector.

He disclosed this in Ugaga community in Yala LGA of Cross River State where the federal government has established a N1bn barite processing plant where the natural resource is found in vast quantities.

The plant processes 10 tonnes per hour, according to Engineer Adigun Ajibola.

Barite is used mostly in the oil industry to boost oil production. It is crushed and screened to a uniform size and used as a filler or extender, an addition to industrial products, or as a weighting agent in petroleum well drilling mud specification.

Speaking when he commissioned the plant, the minister said before now the country was exporting raw barite ore which would be processed abroad, and was therefore losing lots of value.

He said this encouraged his ministry to launch the project of establishing the barite processing plant in November, 2021, in Port Harcourt, Rivers State.

The minister further said that Nigeria had a 4.8 gravity standard of barite in vast quantities which was far higher than the 4.2 found elsewhere.

Engr Dan Obong, one of the 20 beneficiaries of grants and donations of artisanal equipment from the ministry for the extractions of barite, commended the federal government for easing their tasks.

-Daily Trust.

Kenya: Safaricom Ethiopia Gets Licence to Offer M-Pesa Services

Nairobi — Safaricom Ethiopia has been granted a licence by the National Bank of Ethiopia, allowing the telco to expand its lucrative mobile money business to the untapped Horn of Africa country with over 100 million people.

The Payment Instrument Issuer Licence is the first to be issued to a foreign investor in the nation.

"The National Bank of Ethiopia has today issued a mobile money service license to Safaricom M-Pesa Mobile Financial Service Plc, a subsidiary of Safaricom Telecommunication Ethiopia Plc," the National Bank of Ethiopia said in a statement.

"This is the first mobile money license granted to a foreign investor in Ethiopia," it added.

With the new licence, the telco will now be able to offer services such as mobile banking, mobile wallets, internet banking, and card banking.

"The issuance of the mobile money license reflects the NBE's on-going objective of fostering financial inovation and inclusion in the Ethiopian market," it said.

"We welcome this shift to the use of digital financial services so as to bring greater efficiency, safety, and transparency to the country's rapidly growing financial system."

Only in October last year, Safaricom Ethiopia received a nod from the Ethiopian government to roll out M-Pesa.

The deal was brokered by President William Ruto and Ethiopia's Prime Minister Abiy Ahmed in Addis Ababa, Ethiopia.

"To this end, we will strongly support the spread of digital payment systems as a substitute for cash-based transactions within the economy," it said.

"We will also welcome the introduction of diverse forms of digital financial services so that, ultimately, these become a tool to help citizens transact, save, borrow, invest, and more as Ethiopia's financial system is modernized over the coming years," it stated.

"The National Bank of Ethiopia wishes Safaricom's M-PESA service well as it launches its operations in the very near future."

-Capital FM.

Uganda: Kampala-Masaka Road Cut Off By River Katonga

Masaka — Drivers are seeking alternative routes through the villages today after floods cut off Kampala-Masaka road in central Uganda after River Katonga burst its banks.

Travelers from Kampala to Masaka have been advised to use the Mpigi - Butambala - Ssembabule road as an alternative to get to Masaka.

In a statement, Uganda National Roads Authority (UNRA) said "We have reports of flooding at Katonga section on Masaka Road. Our teams are assessing the situation and exploring possible interventions & diversion routes. For now, we STRONGLY advise road users to exercise extreme caution when approaching this section."

"We urge motorists from Kampala to Masaka to DIVERT and use Mpigi--Kanoni--Maddu--Ssembabule--Masaka, and vice versa for those from Masaka--K'la as we allow water levels to subside."

Water levels rise

The water levels have risen considerably in recent days, posing a significant danger to both motorists and pedestrians attempting to cross. On Thursday, videos and photos emerged showing slow traffic movement at a section of the road where waters were overflowing onto the road.

Lydia Tumushabe, Katonga Region Police Spokesperson said that in a bid to ensure the safety of road users, they have been advised against using this section of the road at present.

"We strongly advise using alternative roads as we collaborate with Uganda National Roads Authority-UNRA to address the situation promptly...please exercise caution, follow traffic instructions, and watch out for updates," Tumushabe stated.

According to Allan Ssempebwa, the Spokesperson for UNRA, due to severe flooding at a section of the road, motorists traveling from Kampala to Masaka should use the recently constructed Mpigi-Kanoni-Maddu-Ssembabule-Masaka road, while those traveling from Masaka to Kampala should do the same in reverse.

"The diversion will remain in place until the water levels have sufficiently subsided," Ssempebwa noted.

The Mpigi-Kanoni-Ssembabule-Masaka route spans a total of 184km, which is almost double the distance of the direct route from Mpigi to Masaka, which is only 93.7km. As a result of this diversion, transport fares on the route are likely to increase, which will negatively affect travelers.

Additionally, the transportation of goods may also be delayed due to the longer distance, causing further inconvenience and expense.

Kampala-Masaka Highway is one of the busiest roads in the country with an estimated average daily traffic count of over 30,000 vehicles. The road is the main gateway to Tanzania, Burundi, Rwanda, and the Democratic Republic of Congo handling major cargo to and from.

In the past five years, several sections of this road, from Mpigi to Kalungu district, have been breaking down more prominently towards Christmas and Easter holidays, not only paralyzing transport but also putting the lives of hundreds of people plying the road on a daily basis at risk.

While it is common for several swamp sections of various roads to experience flooding during the rainy season, the current situation of flooding and damage to different sections of Masaka Road is attributed to continuous sand mining, rice growing, and other agricultural activities in the area.

According to reports, these activities have altered the (physical appearance of the land) and hydrology (the distribution and movement of water both on and below the Earth's surface) by digging trenches in the spacious swamp that connects directly to Lake Victoria, leading to the current situation.

Some years back engineers from UNRA, examined this section of the road and pointed out that the two activities have been leading to a decrease in how soils in the area hold or let water move. They noted that the wetland no longer holds water, resulting in flooding whenever it rains.

In recent days, flooding has also affected other sections in Lwera, Kamuwunga, and Lukaya as several streams in the area burst their banks following heavy rainfall.

Despite the National Environment Management Authority (NEMA) issuing a warning about the dangers of continuous sand mining and rice growing in the Lwera wetland to transportation along the Kampala-Masaka highway, they have controversially defended the continuation of these activities.

For sand mining, investors have stationed dredgers in the middle of the wetland and scooped up tons of sand from an area covering more than 100 kilometers across the highway, going more than 10 meters deep underneath the swamp. These activities create open pits that are always filled with water, leading to frequent flooding of the road.

In a recent interview with Eng. Lawrence Pariyo, the Head of Bridges and Structures at UNRA, revealed that they are currently re-engineering the affected section of the road to find a lasting solution. He also hinted at the possibility of raising some sections of the Lwera wetland with bridges, as well as the reconstruction of the Katonga bridge.

These measures are aimed at mitigating the impact of heavy rains and flooding on the road, thereby improving safety for motorists and pedestrians. - The Independent & URN

-Independent (Kampala).

Ethiopia's Informal Currency Exchanges - Validate or Veto?

The choices are stark, but the damaging impact must be mitigated to help improve foreign currency reserves.

Ethiopia's foreign currency deficit has led to a thriving black market exchange, fuelling already-problematic illicit financial flows in the country. The black market limits the inflow and facilitates the outflow of legitimate foreign currency.

Ethiopia has many unregulated foreign currency exchange bureaus. Profiteers use small shops, usually set up for lawful businesses like boutiques, from where they ask passers-by for foreign exchange. A US dollar is worth double the official bank rate on the black market.

Foreign currency is also diverted through illegal hawala - an informal money transfer outside the banking system. Ethiopians in the diaspora remit foreign currency to middlemen, who pay beneficiaries in Ethiopia in local currency at the black market rate.

Outflows are facilitated by vendors who either smuggle foreign currency collected in Addis Ababa through Bole International Airport, or transport it to Moyale and Togochale, towns on the border with Kenya and Somalia, a researcher told the ENACT project. Some foreign currency smuggled through these towns re-enters Ethiopia, only to be sent out again. Illicit traders approach bank officers in border towns with an offer to sell, or vice versa, according to a former federal prosecutor.

Illicit traders approach bank officers in border towns with an offer to sell, or vice versa

Banks in Moyale and Togochale process the foreign currency and disguise it as legitimately earned income from Ethiopian export businesses. A researcher said banks in border towns collaborate with their head offices in Addis Ababa, where someone buys the re-entered foreign currency at a higher price.

The role of banks on the black market isn't limited to border areas, says National Bank of Ethiopia (NBE) former governor Yinager Dessie. In Addis Ababa, banks pay black marketeers 30 ETB commission for a US dollar, and then sell the foreign currency at a rate above even the black market. Finding a higher bidder is easy - corrupt individuals launder ETB by paying more for hard currency. Importers' demand for forex is also significantly higher than the supply.

Ethiopia's foreign currency shortage is exacerbated by ongoing instability. Massive government spending on the war resulted in a foreign exchange reserve outflow of US$307 million during the 2020/21 fiscal year. The conflict obstructed foreign currency inflow by limiting tourism and foreign direct investment. It also affected Ethiopia's access to hard currencies by triggering economic sanctions and the suspension of aid and international loans.

The need to restore peace and stability, along with severe drought and skyrocketing inflation, has occupied government resources and attention, enabling the black market to thrive.

The National Bank of Ethiopia has tried to manage foreign currency shortages using several regulations

The NBE has tried to manage the shortage of foreign currency through several rules and regulations. Ethiopians travelling abroad can take no more than US$4 000 from their foreign currency account, for which proof of travel is required. International traders can spend only 20% of the foreign currency they bring to Ethiopia - 70% goes to the NBE and 10% to commercial banks.

In April 2022, the NBE tried to mitigate inflation by introducing Franco-Valuta, which allows importing of essential foodstuffs without using the banking system to buy or spend foreign currency. This turned the black market into a significant source of forex for Franco-Valuta importers. The ETB lost ground fast - a US dollar overshot from under 65 ETB to over 80 ETB in less than a week. The NBE revised the scheme to require importers to prove they use legally acquired foreign currency.

In May 2022, the NBE suspended commercial banks from providing forex-related services in Moyale and Togochale. In August, the Ethiopian National Intelligence and Security Service (NISS) reported the arrest of several Ethiopian and foreign nationals allegedly involved in illicit financial flows and illegal hawala.

In October that year, the NBE and NISS froze 1 054 bank accounts over black market exchange and illegal hawala. That same month, Ethiopia banned the import of goods deemed non-essential and stopped issuing Letters of Credit for 38 products, from cigarettes and whiskey to non-electric cars imported by private individuals.

Rather than intermittent efforts to put out fires, a consistent strategy of controls is required

Ethiopia may need to rethink its current approach, which focuses on controlling the black market. Rather than intermittent efforts to put out fires, a consistent strategy of controls is required. Last October's creation of a dedicated task force was useful, as it involves both regulatory bodies and law enforcement agencies. This should be complemented by a holistic government approach that establishes robust inter-agency coordination and cross-border cooperation.

A major difficulty though, is that many Ethiopians believe the black market exchange rate reflects the true state of the economy, not the official exchange rate, say anonymous sources. Government could consider legalising black market exchange and transforming it into a parallel market that the NBE can regulate. If legalised, such transactions could be recorded, taxed and used to support international trade.

However, legalisation might presuppose adopting a floating exchange rate, which can work best with a system that maintains a sustainable source of foreign currency, according to an expert who requested anonymity. This would probably result in considerable devaluation of the currency, which the government is unlikely to accept.

Ethiopia's government faces difficult choices - but a decision must be made in order to limit the damaging effects of the black market exchange and improve foreign currency reserves.

Tadesse Simie Metekia, Senior Researcher, Horn of Africa, ENACT Project, ISS Addis Ababa and Messay Asgedom Gobena, Assistant Professor, Ethiopian Policy University

This article was first published by ENACT.-ISS.

South Africa: Cabinet Welcomes Decision to Appeal Load Shedding Exemption Ruling

Cabinet says it welcomes the decision to appeal the recent North Gauteng High Court ruling that instructed Eskom to exempt public institutions from load shedding based on the implications of this judgement.

This comes after the high court found that load shedding constituted an infringement of constitutional rights and gave the Minister of Public Enterprises 60 days to ensure that public health facilities, schools and police stations are exempted from power outages or provide generators.

The Department of Public Enterprises on Monday said it was lodging an urgent appeal to set aside last Friday's judgment on load shedding.

Meanwhile, in a Cabinet statement released on Thursday, Minister in the Presidency, Khumbudzo Ntshavheni, said government is working closely with Eskom to fast track the repair of units that have resulted in Stage 6 load shedding in recent days and frustrated progress in the programme to improve energy security in the country.

The Minister said intense work is underway at Eskom to increase the utility's Energy Availability Factor through substantial maintenance.

In addition, Ntshavheni said Eskom is currently maximising the use of open cycle gas turbines, securing additional generation capacity from private investment in renewables and scaling up awareness to improve demand-side management from large electricity users and households.

"Acts of sabotage continue to plague Eskom's infrastructure and, therefore, the continued deployment of 880 SANDF [South African National Defence Force] members to safeguard a number of Eskom power stations is part of measures to prevent attempts to collapse the national grid," the Minister said.

President Cyril Ramaphosa has authorised the deployment of the SANDF members to safeguard a number of Eskom power stations around the country to the tune of R146 million.

The soldiers will work with the South African Police Service (SAPS) to prevent and combat crime and maintain and preserve law and order under Operation Prosper.

Meanwhile, Cabinet is reminding South Africans to continue to save electricity towards the national target to save 1 000MW.

-SAnews.gov.za.

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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