Major International Business Headlines Brief::: 31 May 2023

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Major International Business Headlines Brief::: 31 May 2023 

 


 

 


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

 


 

 


 

ü  South Africa: Standoff Between Shack Dwellers and Sand Mining Company in
Khayelitsha

ü  Namibia: Mining, Energy Could Liberate Namibia - Alweendo

ü  Africa: Nigeria Should Engage China for AfCFTA Success

ü  Malawi: Govt Mandates NFRA to Buy Maize On Behalf of Admarc

ü  Kenya: Nairobi Expressway Seeks Views on Proposed Haile-Selassie Exit
Expansion

ü  South Africa: Strategic Equity Partnership for SAA Aimed At Saving
Airline - Gordhan

ü  South Africa: R1.8 Billion Allocated to Improve Police Visibility

ü  Nigeria: Expert Warns Petrol Marketers Against Hoarding

ü  Nigeria: Fuel Queues - Nigerian Regulatory Agency Warns Against Panic
Buying

ü  Malawi: Develop Positive Perception Towards Bank Loans, NBM Urges SMEs

ü  Nvidia briefly worth $1 trillion thanks to AI boom

ü  AI 'godfather' Yoshua Bengio feels 'lost' over life's work

ü  Coffee and chocolate help drive supermarket prices higher

ü  Foxconn: iPhone maker hikes pay ahead of new model launch

 


 

 


 <https://www.cloverleaf.co.zw/>          South Africa: Standoff Between
Shack Dwellers and Sand Mining Company in Khayelitsha

Mining operations halted after families living in shacks near the site
complain about sand filling their homes

 

A sand mining company operating in Khayelitsha, Cape Town, has suspended
operations after shack dwellers complained their homes are filled with sand
and have become inhabitable.

 

The company was granted a permit by the national Department of Mineral
Resources and Energy in 2018, before most of the shacks were built on the
land.

 

The City of Cape Town gave permission for the company to operate on the land
in 2019 and moved some of the families. The others will not be moved until
next year.

Meanwhile, the City says, the permission it granted has expired.

The City is to investigate the matter.

 

Families in Vosho informal settlement in Khayelitsha say sand being moved by
a sand mining project nearby is making their homes uninhabitable.

 

The area, with shacks perched on a large dune, has been nicknamed
Plattekloof after the suburb in the north where homes overlook the city.

 

According to the City of Cape Town mining company, Maccsand was granted a
permit by the national Department of Mineral Resources and Energy in 2018,
before most of the shack dwellers occupied the land. The permit expires in
2024. Deputy Mayor and Mayoral Committee Member for Spatial Planning and
Environment, Eddie Andrews, said in 2019 the City had granted the company
permission to remove the dune. The permission lapsed in October 2021.

 

After the mushrooming of Vosho informal settlement, the City moved hundreds
of families to land near Baden Powell Drive in 2020/21, but a few shacks
remain, close to the site. Families living there told GroundUp that their
homes, food and other belongings are covered in sand.

 

"The sand moves into the shacks because the construction vehicles work too
close to them. We don't want the project to continue to compromise the
safety of the residents," said community leader Baphelele Dokolwana.
Dokolwana said residents wanted to be moved.

 

But the City said environmental restrictions on the land where the Vosho
families had been moved meant it could only accommodate 335 families. The
remaining families would be moved in 2024, the City said.

 

Community leader, Nonkululeko Nyathi, said some shacks near the site had
been abandoned. "The sand invaded some shacks and made them unliveable. One
resident can't even open their door. The affected residents have no money to
buy material to rebuild elsewhere," said Nyathi.

 

Bongani Khawushe, who settled in Vosho in 2018, said he had been forced to
abandon his shack. "My brother and I removed the sand from behind my shack
with spades, but it kept on piling up," he said. "Everything, including my
bed and cupboard, is now covered with sand. I couldn't even open the door on
Wednesday when I came to check on my shack." Khawushe has since moved to his
brother's home in Makhaza.

 

Andrews said the City's land use property inspectors would investigate the
matter and take appropriate action.

 

Asked about safety, the City said the residents' complaint "appears to be
the result of ineffective implementation of health and safety standards by
the mining operator." The City said it was the national department's
responsibility to monitor compliance at the site.

 

The City promised to investigate and ask the mining company to meet the
community and ward councillor to address these issues.

 

In response to GroundUp's questions, John Pretorius, Maccsand's Public
Relations Officer, said the dune had overshadowed the shacks "long before
Maccsand arrived at the site". He said shack dwellers building shacks there
was "tantamount to inflicting safety hazards amongst themselves due to the
close proximity of the shacks on the dune".

 

But, he said Maccsand had abandoned the levelling of the dune to consult
with the councillor and the families concerned. "About eight shacks are
affected at this point," he said.

 

"We hope the councillor can arrange meetings so that the levelling can
proceed. Maccsand will never put residents' lives in danger as we comply
with the Health and Safety Act of 1993," he said.

 

Pretorius said residents had "started to panic" when the company's
excavators began work on top of the hill. "The project manager explained to
the residents his intention to make it safer. But they seem not to grasp
that Maccsand wants to make it safer."

 

GroundUp.

 

 

 

 

Namibia: Mining, Energy Could Liberate Namibia - Alweendo

If Namibia is to be unchained from the triple shackle of unemployment,
poverty and inequality, it will depend heavily on how it deals with
opportunities presented by the energy and mining sectors.

 

This is the position of energy minister Tom Alweendo, who was addressing
parliamentarians during a workshop under the banner 'Maximising Mining and
Energy Potentials' in Swakopmund yesterday.

 

The two sectors, he said, are to Namibia what blood is to life. It is no
exaggeration, he hastened to say.

 

"It is that important. Recently and in both sectors, promising things have
happened. For example, in the petroleum sector, oil has been discovered in
sufficient quantities that justify commercial production. In the mining
sector, because of the energy transition brought about by the global
undertaking to address the effects of climate change, there is now a global
demand for critical raw materials and metals. Some of these minerals, such
as lithium, are available in our country," Alweendo stated.

 

 

The technocrat, who has courted controversy in recent times was not done,
emphasising the sectors could be Namibia's silver bullet, if decisive
management.

 

"We therefore have a clear window of opportunity to transform our economy.
Depending on how we decide to deal with these opportunities, we have the
real potential to effectively address the triple social ills of
unemployment, poverty, and inequality," the former national planning
commissioner said.

 

Criticism has not only rained but poured on Alweendo over his ministry's
decision to first declare a Chinese mining company's licence [Xinfeng] as
satisfactory just to cancel it days later.

 

The ministry had to cancel a press conference aimed at explaining why they
u-turned after Xinfeng dragged them to court.

 

Communities in the Daures constituency, where Xinfeng operates, alleged the
company is carrying out illegal lithium mining in Uis.

 

"With regards to the mining sector and especially with regards to the
critical raw materials, these are minerals that are highly sought after
globally. For that reason alone, we cannot mine these minerals where they
are exported in their basic raw form or where minimal value has been added.

 

"And where possible, we need to insist that processed minerals are used as
inputs into locally manufactured goods, such as batteries, allowing us to
export manufactured goods," the minister said.

 

In the petroleum sector, he said the recent discovery of oil and gas in
commercial quantities hold great potential to transform the economy beyond
taxes and royalties that would accrue to the State.

 

 

"And as it was to be expected, following the discovery, two related
questions are being posed: One, what will be the impact of the oil discovery
on the Namibian socio-economic landscape? Two, what are the chances that the
oil discovery becomes a curse rather than it becoming a blessing? The short
answer to these questions is that it will all depend on what we decide to do
today. The impact will be what we decide it to be," he said, seemingly
rolling the ball to the MPs.

 

"We know of countries where the discovery of oil became a curse and there
are also countries where the discovery became a blessing. I would like to
believe that we all want our discovery to be a blessing rather than a curse.
However, for it to be a blessing depends mostly on our policy environment,
especially our institutional and political aspects of it. It has been proven
that countries with strong institutions, a stable political system and an
effective legal framework, were able to manage their oil revenue with a
positive impact on their economies and for the benefits of their citizens."

 

But like a dark cloud that has a silver lining, all hope is not lost for
Namibia, a country lauded for its strong systems, processes and
institutions, he said.

 

"I have reason to believe that our institutions, our political system, and
our legal framework are such that there is no reason why the oil discovery
should not be a blessing. What we need to do, however, is to manage the
resources with a clear understanding that the resources belong to both the
current and future generations," he said.

 

The minister continued: "Necessarily, therefore, the management of the
resources must benefit both generations. In addition to the revenue that
will accrue to the State through various taxes such as income tax and
royalties, the local economy stands to gain more from local content. Local
content is the value that the extraction of oil brings to the local economy
beyond the resource revenues. This value will be obtained from the provision
of ancillary services to the oil sector. Among these are the provision of
services such as engineering, logistics, accommodation, and catering. Some
of the services can readily be provided by local businesses, while others
might take a while before our local businesses are able to provide such
services."

 

Corruption

 

Late last year, Alweendo said he would feel betrayed if his erstwhile
technical advisor Ralph Muyamba or any other official used information
entrusted to him in confidence for self-enrichment.

 

At the time, he maintained his long-held anti-corruption stance, saying he
was unaware of any dubious activities under his watch at the ministry. "Yes,
I'd feel betrayed."

 

Alweendo said the bribery allegations surrounding Muyamba are being dealt
with by the Anti-Corruption Commission.

 

Alweendo and Muyamba, who hurriedly resigned 24 hours after the allegations
surfaced, and former mining commissioner Erasmus Shivolo have been fingered
in a N$50 million bribery scandal that allegedly blocked the renewal of the
exclusive prospecting licence (EPL) of Karlowa Mining Enterprises.

 

Ironically, Alweendo also removed Shivolo from his position as mining
commissioner amid the bribery claims. He, however, maintained it was purely
an administrative decision.

 

According to him, he strongly believes in the doctrine that individuals
should not occupy key positions, especially if they preside over major
resources, for too long.

 

Shivolo had been in the position since 2008.

 

Asked why he did not remove him immediately when he assumed duty as mines
and energy minister, Alweendo said he needed time to settle in and could not
instantly make changes at the ministry.

 

Since then, Alweendo has been extinguishing fires over the purported bribery
that seemingly refuses to die.

 

He also profusely denied accepting bribes from Chinese company Xinfeng
Investment.

 

In the public domain, the technocrat-turned-politician has largely been seen
as a squeaky clean staunch anti-graft activist. He is also highly rated
among his Cabinet colleagues.

 

Alweendo, alongside land reform minister Calle Schlettwein, were among the
few senior government figures who came out strongly to condemn the Fishrot
corruption when it unfolded in 2019.

 

He maintains nothing has changed.

 

New Era.

 

 

 

Africa: Nigeria Should Engage China for AfCFTA Success

Aligning trade and investment interests under the AfCFTA can activate more
productive Nigeria-China relations.

 

Nigeria is a state party to the African Continental Free Trade Area (AfCFTA)
agreement but was among the last of 54 countries to sign due to
uncertainties about the deal's impact on its domestic market.

 

The free trade agreement will hopefully drive the continent's
industrialisation agenda and bring prosperity to Africans. But Nigeria's
dependence on crude oil exports and the challenges facing its manufacturing
sector could suppress the benefits.

 

The country must engage strategically with key partners like China, and
negotiate mutually beneficial deals that can increase its competitiveness
under the AfCFTA. Such negotiations could be part of a broader Nigerian
strategy on China in an increasingly multipolar world, a recent study by
Dataphyte in Nigeria says.

 

Nigeria has Africa's largest economy, and there's a misconception that this
gives it an unfair advantage in the AfCFTA. With over 200 million people, it
is also Africa's most populous country. Nigeria's export basket is dominated
by oil and gas products, with crude oil making up over 70% of its exports in
2022. This commodity dependence has negatively affected the country's
socio-economic indicators.

 

 

Nigeria's low industrial base and unconducive operating environment mean
that in the near term, it will participate in the AfCFTA mainly as a
consumer market. A 2023 study on the AfCFTA's beneficiaries estimated a
welfare gain of US$146.12 million for Nigeria and US$1.46 billion for South
Africa, because of the latter's much higher manufacturing capacity.

 

Nigeria's low industrial base means that in the near term, it will
participate in AfCFTA mostly as a consumer market

 

These difficulties led to groups such as the Manufacturers Association of
Nigeria contributing to the country's delay in signing the agreement. This
reluctance contrasts with Nigeria's 'Afrocentric' policy and the major role
its officials played in actualising the free trade deal.

 

China is projected to benefit significantly from the agreement, even though
a fully implemented AfCFTA could see trade diverted away from China as
African countries do business with each other. Efforts to increase the
production of goods and services on the continent may benefit China as a
source of intermediate goods and machinery.

 

In 2017, McKinsey estimated that there were over 10 000 Chinese-owned firms
in Africa, so China is well positioned to take advantage of a local
manufacturing boost. The increased demand for intra-African trading
infrastructure can also be met by Chinese contractors experienced in
deploying such projects in Africa. The continent has surpassed Asia as the
largest destination for Chinese construction projects.

 

Nigeria and China have strong relations, with Nigeria being China's top
African export market in 2021 and the second largest in 2022. As Nigeria's
largest import partner, China contributed significantly to Nigeria's trade
deficit of US$11.1 billion in 2021. Since joining China's Belt and Road
Initiative in 2018, Nigeria has been a key destination for Chinese
construction, investment and trade, receiving around US$7.5 billion in
Chinese foreign direct investment from 2013-21.

 

 

China can help Nigeria improve its infrastructure and support its
manufacturing sector

 

In January, China's Ambassador to Nigeria, Cui Jianchun, underscored the
countries' strong trade and investment ties. However, China seems the more
strategic of the two. In 2017 for example, Nigeria asked Taiwan to relocate
its representative office away from Abuja just a day after China announced a
US$40 billion investment plan in Nigeria. Nigeria denied any link between
the events. Its Parliament has in fact actively scrutinised Chinese
activities. In 2016 it criticised certain firms and, in 2020, launched an
investigation into Chinese loans.

 

Nigeria must work better with China to strengthen its position in the
AfCFTA. With foreign investment and knowledge transfer, China can help
Nigeria improve its infrastructure and support its manufacturing sector.

 

China already understands and successfully navigates Nigeria's complex
operating environment. So promoting manufacturing investment to the Chinese
private sector may be easier than for other investors. China also
understands the capacity gaps in Nigeria's manufacturing sector and can help
fill them in the medium to long term.

 

But China also has its interests to protect, such as more jobs for its
workers, easy access to raw materials, and selling more goods as Africa gets
richer.

 

Navigating these diverse interests and finding opportunities for mutually
beneficial cooperation should be a pillar of a Nigerian strategy on China.
Such a strategy will need to consider the evolution of Nigeria-China
relations and both countries' expectations of each other in order to address
Nigeria's growing dependency on China.

 

Navigating diverse interests and finding ways to cooperate should underpin a
Nigerian strategy on China

 

Chinese-operated Special Economic Zones in Nigeria make it difficult to
boost local manufacturing - something a strategy should confront.
Twenty-eight thousand Nigerians reportedly lost their jobs in the textile
industry due to cheaper Chinese imports.

 

African nations have shown varying levels of agency in their relations with
China, but China still appears to be setting the agenda. Nigeria could
provide leadership to other countries on the continent in this regard.
Understanding China better, clarifying its interests and leveraging it to
benefit Africans is crucial for Africa as geopolitical tensions rise.

 

The continent must proactively explore opportunities presented by China's
Belt and Road Initiative to meet the AfCFTA's infrastructure needs. The
implications of bilateral trade treaties like the China-Mauritius free trade
agreement will need to be examined closely.

 

Nigeria has faced foreign policy challenges both in and outside Africa. Its
needs under the AfCFTA should drive more strategic engagement with China. If
President Bola Tinubu's new government accepts the task of providing
leadership in Africa-China affairs, this could launch a new era in Nigeria's
external relations.

 

Teniola Tayo, Consultant, ISS and Muhammed Badamasi, Associate, Aloinett
Advisors

 

ISS.

 

 

 

Malawi: Govt Mandates NFRA to Buy Maize On Behalf of Admarc

Government says it has given K6 billion to National Food Reserve Agency
(NFRA) to start buying maize.

 

This means NFRA has been given the mandate to purchase the strategic grain
instead of Admarc.

 

NFRA's acting Chief Executive Officer David Loga says in a statement that
NFRA has now opened its market for buying of maize for the 2023/24 Strategic
Grain Reserve (SGR) replenishment.

 

"The buying price is K550 per kilogram and the procurement is on a
first-come basis until the 30th September 2023 or upon reaching the targeted
tonnage, whichever comes earlier," reads the statement in part.

 

NFRA plans to buy 10, 822 metric tonnes of maize using the K6 billion.

 

The decision by government to release the funds comes amid concerns that
government was delaying the exercise, thereby giving room to vendors to
penetrate the market.

 

-Nyasa Times.

 

 

 

Kenya: Nairobi Expressway Seeks Views on Proposed Haile-Selassie Exit
Expansion

Nairobi — The Nairobi Expressway is seeking public views on the construction
of the new Haile-Selassie Exit consisting of five lanes.

 

The views should also capture the upgrade of the Museum Hill Exit A and the
upgrade of the Jomo Kenyatta International Airport (JKIA) Entrance.

 

"The Government of Kenya through the Kenya National Highways Authority has
identified the need to optimize and upgrade some of the toll stations on the
27.1 km Nairobi Expressway," the agency said.

 

CALE Infrastructure Construction Company, a subsidiary of China Road and
Bridge Corporation Kenya, will implement the upgrade and toll optimization.

 

Centric Africa, a firm of registered experts, has received a commission to
carry out the Environmental and Social Impact Assessment.

 

The purpose of this Questionnaire is to obtain your views and suggestions as
one of the identified key interest groups.

 

-Capital FM.

 

 

 

 

South Africa: Strategic Equity Partnership for SAA Aimed At Saving Airline -
Gordhan

Public Enterprises Minister Pravin Gordhan says the sale of shares in South
African Airways (SAA) was aimed at ensuring that the State-owned airline is
saved and does not undergo liquidation.

 

Gordhan was addressing Parliament's Standing Committee on Public Accounts
(SCOPA) on Tuesday.

 

A Strategic Equity Partnership with Takatso Consortium is expected to pave
the way for the sale of some 51% of the airline's shares, pending regulatory
and other approvals.

 

Gordhan told the committee that government's fiscal position does not allow
for SAA to continue being funded purely from the public purse. He, however,
said that government will still hold a strong stake in the airline.

 

 

"The reality is that there are going to be times when the State doesn't have
all the funding to manage whatever it is holding on to or provide additional
investment for a particular entity, enterprise or business to actually grow.

 

"So this is not privatisation in the sense that we are not selling 100%.
Firstly, we've got 49%. Secondly, we've got the golden share and the golden
share means we own the brand, and headquarters [are] in South Africa.
Transformation of the staff and management will take place. All of that is
prescribed in the purchase and sale agreement.

 

"We do not have the financial capacity to hold onto everything as the State
but our intention was never to privatise. Our intention was to save the
airline. Our intention was to avoid liquidation because then everything
would have been sold to the private sector. So this was ultimately the best
that was possible within the limitations that we had," he said.

 

The Minister explained government's reasons for seeking out a Strategic
Equity Partner for the airline.

 

"The additional partner is required in order to put in money which will
enable the airline to expand... in a systematic way, based on commercial
criteria and a reasonable chance of success of those routes paying back...
its own cost for a start, let alone the profits it would make.

 

"The issue is not the current way of operating. The issue is the future
growth," he said.

 

Answering questions on the consortium's ability to invest some R3 billion
into the airline, Gordhan said there is no reason to doubt that it will not
honour that agreement.

 

"We, at this point in time, have no reason to doubt Takatso's bona fides. We
believe that they will deliver cash when it is required and that they will
have to solve their own problems, in terms of their own minority
shareholders.

 

"In terms of timelines, the Competition Commission process took about 10
months. The competition tribunal is set for the third week of June...and
then there are a few regulation hoops to cross. I imagine that by the end of
July/August, we should have completed all the regulatory requirements."

 

The Minister said although the aviation industry has endured a challenging
period as a result of the COVID-19 pandemic, the sector is recovering.

 

"Today we find ourselves in a position where at least there's some more
competition in the aviation industry, locally particularly.

 

"As SAA grows and the acquisition of the Strategic Equity Partner is
concluded, we will have even more effective competition as well. The
beneficiary at the end of the day will be the traveling consumer more than
anybody else," he said.

 

-SAnews.gov.za.

 

 

 

South Africa: R1.8 Billion Allocated to Improve Police Visibility

Government has allocated R1.8 billion for the procurement of police vehicles
to improve police visibility in its crime fighting efforts.

 

Addressing a media briefing in Cape Town, Police Minister General Bheki Cele
said R65 million has been allocated to the top 30 crime heavy stations to
address murder and other contact crimes.

 

"Over and above this additional funding, we are responding directly to calls
by communities to increase the capability and training of the Tactical
Response Teams (TRT). The TRT are being deployed at stations and districts
in identified high crime areas," the Minister said on Tuesday.

 

 

He said these highly trained and highly skilled officers will act as force
multipliers at local level and assist in policing high-crime areas.

 

The Minister was presenting the quarterly crime statistics, reflecting on
crimes reported and detected by the South African Police Service (SAPS) from
1 January 2023 to 31 March 2023.

 

"SAPS is also enhancing specialised tracking teams, who will be trained
further at provincial and district level to effectively track and apprehend
offenders.

 

"The tracking teams will be instrumental in the success of Operation
Shanela, where emphasis is also placed on executing arrest warrants," the
Minister said.

 

SAPS is also purchasing unmanned aerial vehicles (drones) to better police
from the sky.

 

"More drone pilots are also being licensed and drone pilot interns are being
recruited. Body-worn cameras, as well as shot spotters in high-density crime
areas, are being prioritised," Cele said.

 

Contact crimes

 

When it comes to contact crimes, 206 more counts of murder were recorded;
sexual offences decreased by 594 cases; attempted murder increased by 475;
assault with the intent to inflict grievous bodily harm increased by 98;
common assault increased by 3 480; common robbery increased by 957, and
robbery with aggravating circumstances increased by 1 677.

 

Murder increased countrywide by 3.4% between January and March 2023.

 

The Minister said 6 289 people were killed with either a firearm, knife,
sharp and blunt instruments, stone and even bare hands, between January and
March this year.

 

"The majority of the killings took place in the KwaZulu-Natal, Western Cape
and Gauteng provinces, with arguments, vigilantism and robberies topping the
motive list for murder.

 

"KwaZulu-Natal also reported the highest figures of multiple-murder cases,
followed by the Eastern Cape with 206 cases and 155 victims, respectively.

 

"The Free State, Northern Cape and Western Cape provinces recorded decreases
in murder figures, with both the Western Cape and Northern Cape reporting a
double digit decrease in murder cases," the Minister said.

 

Cele said while more work still needs to be done to combat contact crime,
the drop in murder figures in some provinces is welcomed.

 

"These crime figures also show that the Western Cape is turning the corner
on contact crime cases," he said.

 

Overall, contact crimes increased by 6 299 cases.

 

-SAnews.gov.za.

 

 

 

Nigeria: Expert Warns Petrol Marketers Against Hoarding

"It is risky for any marketer to attempt to hoard the product...," the
professor said.

 

A Professor of Energy and Electricity Law at the University of Lagos, Yemi
Oke, on Monday warned marketers against hoarding of petroleum products.

 

Mr Oke said it is unpatriotic and will certainly become counter-productive
for any marketer to attempt or contemplate hoarding petroleum products.

 

Fuel queues returned to Nigerian cities on Monday as many motorists
scrambled to get petroleum products hours after President Bola Tinubu
announced that the government will put an end to the fuel subsidy regime.

 

 

Mr Tinubu had, in his inaugural address at Eagle Square, Abuja, declared
that there would no longer be a petroleum subsidy regime as it was not
sustainable.

 

He said the current 2023 budget only has provision for the fuel subsidy till
June, adding that the funds meant for subsidies will be diverted to the
creation of public infrastructure, education, health care and jobs.

 

Mr Oke, in a statement Monday night, said the administration of the
immediate past president, Muhammadu Buhari, already decided to put an end to
the subsidy regime by June.

 

"The new President, Bola Ahmed Tinubu simply emphasized that the current
supplementary budget even makes no provisions for subsidy beyond June.

 

"It is risky for any marketer to attempt to hoard the product because the
new regime allows marketers to bring in products and sell at rates suitable
to them, which may even drive prices lower," he said.

 

Mr Oke explained that a deregulated petroleum regime simply means that any
prudent marketer can bring in products, and may sell at cheaper rates to
edge out unscrupulous, greedy and unpatriotic marketers.

 

He noted that the margin of subsidised petroleum and open-market rates is
not as substantial, and may even be sold at slightly cheaper rates compared
to the current rate.

 

Also lending credence to the likelihood of market forces throwing up
slightly cheaper or moderately higher petroleum product rates is the
recently commissioned Dangote Refineries, he argued.

 

"Nigerians should definitely expect an abundance of petroleum products,
particularly Petroleum Motor Spirit (PMS) and will diligently manage their
consumption patterns.

 

"Market structures will modulate prices and may drive supply "high"
(northwards) and prices "low" (southwards).

 

"Business prudence demands that the current supplies should not be distorted
by unpatriotic marketers who might want to create needless artificial
scarcity. Doing this will surely be counterproductive aside from being
criminal and reprehensible," he said.

 

Premium Times.

 

 

 

Nigeria: Fuel Queues - Nigerian Regulatory Agency Warns Against Panic Buying

"We, therefore, call on Nigerians to remain calm and resist the urge to
stockpile as it poses a significant safety hazard," an official said.

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA) has cautioned Nigerians not to panic over subsidy removal, saying
it has enough petroleum products to meet the country's demand.

 

The NMDPRA said this in a statement on Tuesday by its General Manager,
Corporate Communications, Kimchi Apollo.

 

The statement was issued against the backdrop of the government's
declaration that it will put an end to the fuel subsidy regime.

 

President Bola Tinubu on Monday in his inaugural address at Eagle Square,
Abuja, declared that there would no longer be a petroleum subsidy regime as
it was not sustainable.

 

He said the current 2023 budget only has provision for the fuel subsidy till
June, adding that the funds meant for subsidies will be diverted to the
creation of public infrastructure, education, health care and jobs.

 

 

In its statement on Tuesday, the NMDPRA said contrary to speculations and
concerns, the announcement is in line with the Petroleum Industry Act (2021)
which provides for total deregulation of the petroleum downstream sector to
drive investment and growth.

 

"The Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA) wishes to address concerns regarding the announcement of the
removal of subsidy on Premium Motor Spirit (PMS) by President Bola Ahmed
Tinubu.

 

"Contrary to speculations and concerns, the announcement is in line with the
Petroleum Industry Act (2021) which provides for total deregulation of the
petroleum downstream sector to drive investment and growth.

 

"We are working closely with NNPC Limited and other key stakeholders to
guarantee a smooth transition, avoid any disruptions in supply as well as
ensure that consumers are not short-changed in any form," the agency said.

 

The NMDPRA, however, assured that there is an ample supply of PMS to meet
demand.

 

"We have taken necessary steps to ensure distribution channels remain
uninterrupted and fuel is readily available at all filling stations across
the country," the statement said.

 

"We, therefore, call on Nigerians to remain calm and resist the urge to
stockpile as it poses a significant safety hazard."

 

The agency noted that the removal of subsidy on petrol is a step towards
building a more sustainable and prosperous future for Nigeria.

 

"We will continue to monitor activities and implement necessary measures to
enhance transparency and accountability in the petroleum downstream sector,"
it said.

 

 

Queues

 

Fuel queues returned to Nigerian cities Monday as many motorists scrambled
to get petroleum products hours after Mr Tinubu announced that the
government will put an end to fuel subsidy.

 

A PREMIUM TIMES correspondent who visited petrol stations across the
nation's capital city Monday evening found that some filling stations were
under lock and key while some were besieged by motorcyclists, tricycle
owners, as well as private and commercial drivers.

 

The same trend was witnessed in Lagos, Ogun, and Ado-Ekiti, the capital of
Ekiti State Lagos, Ogun.

 

Many filling stations in the Lugbe area of Abuja sold petrol at prices
ranging between N194 and N198. Outside Abuja, residents said fuel stations
sold petrol for N230.

 

Fuel subsidy

 

The Nigerian government has subsidised fuel and fixed retail prices of
petroleum products for decades. But the payment has threatened the nation's
fiscal position and impacted the government's ability to fund developmental
projects across the nation.

 

In November 2021, the federal government announced its plan to remove the
fuel subsidy and replace it with a monthly N5,000 transport grant for poor
Nigerians.

 

But the government later suspended the plan after the Nigeria Labour
Congress (NLC) and Trade Union Congress (TUC) threatened to embark on mass
protests.

 

The Minister of Finance, Zainab Ahmed, in January last year said the
government had realised the timing of its planned removal of petrol subsidy
is "problematic", and will worsen the suffering of Nigerians.

 

In the first quarter of 2023, Mrs Ahmed said that it will be more
appropriate for the government to begin the implementation of its fuel
subsidy policy in the second quarter of the year.

 

But in April, the National Economic Council (NEC) suspended the planned
removal of subsidy on petroleum products by the end of President Muhammadu
Buhari's administration.

 

The new government led by Mr Tinubu on Monday reinforced its decision to end
the subsidy regime because it is not sustainable.

 

-Premium Times.

 

 

 

Malawi: Develop Positive Perception Towards Bank Loans, NBM Urges SMEs

Bank of the nation, National Bank of Malawi (NBM) Plc has urged Small and
Medium Enterprises (SME's) in the country to develop a positive perception
towards bank loans which are affordable and easy to access.

 

Speaking during a breakfast interaction with SMEs in Blantyre on Thursday,
NBM's Head of Retail Banking Oswin Kasunda said most businesses have
stagnated because its owners are afraid to access loans due to the
perception that the interest rates are very high.

 

According to Kasunda, their interest pricing is slightly above two percent
per month but people think it is a high rate because they are grossing it up
per annum.

 

 

"If you compare with other microfinance institutions you will find that the
interest rate is very high, probably 20 percent. So, our interest rates
might be a bit high but we think that we are providing affordable pricing.

 

"Pricing is also a factor of a return that the customer is getting, we
cannot charge a customer a higher price than what he can get in terms of
return," said Kasunda.

 

Small and Medium Enterprises Development Institute (SMEDI) Business
Information and Advisory Officer, Compstone Soko, hailed NBM for the
interaction session saying it will enhance partnerships between the private
sector and the public sector in terms of helping SMEs access loans.

 

"We believe that through digital platforms SMEs can access the services as
you are aware most of these financial institutions are located in the urban
areas but yet we have more SMEs in rural areas, so with phones and the
internet we believe these services can be easily accessed," said Soko.

 

One of the SMEs, Brenda Chitanda of House of Men clothing shop said the
interaction helped her to appreciate the tailor-made products NBM has in
stock which has changed her negative perception of the bank loans.

 

"They have explained the kind of loan that SMEs can apply for and also the
duration of repaying, but before this interaction we didn't know how to go
about it," said Chitanda.

 

Nyasa Times.

 

 

 

 

Nvidia briefly worth $1 trillion thanks to AI boom

The elite club of US companies worth more than $1 trillion got a new member
on Tuesday - at least for few hours.

 

Chip maker Nvidia briefly joined the ranks, as its share price shot up more
than 5% before retreating.

 

Shares had already jumped more than 25% last week after the company forecast
"surging demand" due to advances in artificial intelligence (AI).

 

Apple, Amazon, Alphabet and Microsoft are the other publicly traded US firms
worth more than $1tn (£800bn).

 

Founded in 1993, Nvidia was originally known for making the type of computer
chips that process graphics, particularly for computer games.

 

The firm's affable co-founder Jensen Huang took a punt by investing in added
functionality for Nvidia chips long before the AI revolution - a long game
that appears to have paid off.

 

Its hardware underpins most AI applications today, with one report
suggesting it has cornered 95% of the market for machine learning.

 

ChatGPT, the chatbot that sparked AI fervour with its launch last year, was
trained using 10,000 of Nvidia's graphics processing units (GPUs) clustered
together in a supercomputer belonging to Microsoft.

 

Nvidia: The chip maker that became an AI superpower

Over the past 12 months, Nvidia's share price has more than doubled, as
investors bet the company will profit as AI ushers in the next wave of tech
advances.

 

The California-based firm ended trading in New York on Tuesday worth more
than $990bn, after shares closed at about $401 apiece, or up nearly 3%.

 

"We view Nvidia at the core hearts and lungs of the AI revolution," Wedbush
Securities analyst Dan Ives wrote last week, after the firm told investors
it expected to bring in $11bn in sales in the three months to August -
almost 50% more than analysts had predicted.

 

Living up to the promise of its lofty valuation could prove difficult,
however.

 

Though Nvidia boomed during the pandemic, its overall revenue growth was
flat last year, while profits were cut in half.

 

There are questions about whether Nvidia can keep up with demand, especially
as rivals AMD and Intel race to develop their own offerings, and start-ups
emerge.

 

The firm also faces ethical issues, such as whether it should vet the AI
products for which it produces chips, amid swirling concerns about the
impact of AI on society.

 

At current prices, Nvidia boasts a market value more than eight times higher
than that of Intel. That's despite Intel reporting more than $63bn in
revenue last year, compared with Nvidia's $27bn.

 

Geir Lode, head of global equities at Federated Hermes, said the magnitude
of the recent leap in Nvidia's share price was "an astonishing surprise even
to techno-optimists".

 

Nvidia share price

"Artificial intelligence is the next super charged growth area, and we
expect this is just the beginning," Mr Lode said. "We know growth will be
there, but valuations can be hard to justify."

 

Investor Cathie Wood, chief executive of Ark Invest, who is known as a tech
booster, sold her stake in Nvidia in January, missing the gains made since
then.

 

She recently tweeted that the firm's shares were "priced ahead of the
curve". She said markets were making a mistake to think the company was "the
only AI play".

 

In the past, investors have not hesitated to sour on former favourites.

 

Facebook-owner Meta, which joined the $1tn club in 2021, was booted out just
a few months later, as its shares lost roughly three quarters of their
value. It is valued at about $670bn today.

 

Communications giant Cisco was also seen as a likely trillion dollar club
member during the dotcom tech bubble of the late 1990s. But that bubble
burst and the firm is valued at about $200bn today.-bbc

 

 

 

 

AI 'godfather' Yoshua Bengio feels 'lost' over life's work

One of the so-called "godfathers" of Artificial Intelligence (AI) has said
he would have prioritised safety over usefulness had he realised the pace at
which it would evolve.

 

Prof Yoshua Bengio told the BBC he felt "lost" over his life's work.

 

The computer scientist's comments come after experts in AI said it could
lead to the extinction of humanity.

 

Prof Bengio, who has joined calls for AI regulation, said he did not think
militaries should be granted AI powers.

 

He is the second of the so-called three "godfathers" of AI, known for their
pioneering work in the field, to voice concerns about the direction and the
speed at which it is developing.

 

In an interview with the BBC, Prof Bengio said his life's work, which had
given him direction and a sense of identity, was no longer clear to him.

 

"It is challenging, emotionally speaking, for people who are inside [the AI
sector]," he said.

 

"You could say I feel lost. But you have to keep going and you have to
engage, discuss, encourage others to think with you."

 

The Canadian has signed two recent statements urging caution about the
future risks of AI. Some academics and industry experts have warned that the
pace of development could result in malicious AI being deployed by bad
actors to actively cause harm - or choosing to inflict harm by itself.

 

AI could lead to extinction, experts warn

AI chatbots 'may soon be more intelligent than us'

Is artificial intelligence a good idea?

Twitter and Tesla owner Elon Musk has also voiced his concerns.

 

"I don't think AI will try to destroy humanity but it might put us under
strict controls," he said recently at an event hosted by the Wall Street
Journal.

 

"There's a small likelihood of it annihilating humanity. Close to zero but
not impossible."

 

Fellow "godfather" Dr Geoffrey Hinton has also signed the same warnings as
Prof Bengio, and retired from Google recently saying he regretted his work.

 

Prof Bengio told the BBC all companies building powerful AI products needed
to be registered.

 

"Governments need to track what they're doing, they need to be able to audit
them, and that's just the minimum thing we do for any other sector like
building aeroplanes or cars or pharmaceuticals," he said.

 

"We also need the people who are close to these systems to have a kind of
certification... we need ethical training here. Computer scientists don't
usually get that, by the way."

 

But not everybody in the field believes AI will be the downfall of humans.

 

The third "godfather", Prof Yann LeCun, who along with Prof Bengio and Dr
Hinton won a prestigious Turing Award for their pioneering work, has said
apocalyptic warnings are overblown.

 

Others argue that there are more imminent problems which need addressing.

 

Dr Sasha Luccioni, research scientist at the AI firm Huggingface, said
society should focus on issues like AI bias, predictive policing, and the
spread of misinformation by chatbots which she said were "very concrete
harms".

 

"We should focus on that rather than the hypothetical risk that AI will
destroy humanity," she added.

 

There are already many examples of AI bringing benefits to society. Last
week an AI tool discovered a new antibiotic, and a paralysed man was able to
walk again just by thinking about it, thanks to a microchip developed using
AI.

 

But this is juxtaposed with fears about the far-reaching impact of AI on
countries' economies. Firms are already replacing human staff with AI tools,
and it is a factor in the current strike under way by scriptwriters in
Hollywood.

 

"It's never too late to improve," says Prof Bengio of AI's current state.
"It's exactly like climate change.

 

"We've put a lot of carbon in the atmosphere. And it would be better if we
hadn't, but let's see what we can do now."-bbc

 

 

 

 

Coffee and chocolate help drive supermarket prices higher

The rate of price rises at UK supermarkets hit a new high in the year to May
due to coffee, chocolate and non-food goods.

 

The British Retail Consortium (BRC) and NielsenIQ said that the overall rate
of inflation at grocers reached 9%.

 

While prices for fresh food have fallen marginally, the cost of commodities
such as coffee and cocoa has jumped.

 

The government is in talks about asking supermarkets to cap prices on food
items to help with the cost of living.

 

An agreement, which would be voluntary, would limit the cost of basic foods
such as bread and milk.

 

But the BRC has dismissed caps, stating the government should focus on
cutting red tape so resources could be "directed to keeping prices as low as
possible", as opposed to "recreating 1970s-style price controls".

 

On Monday, Sainsbury's cut the cost of more than 40 of its own-brand
products including cheese, yoghurt and cream.

 

"Whenever we are paying less for the products we buy from our suppliers, we
will pass those savings on to customers," said Rhian Bartlett, its food
commercial director.

 

The BRC and NielsenIQ figures, covering the week between 1 and 6 May, show
that overall food inflation ticked lower from 15.7% in the year to April to
15.4%.

 

Despite the fall, the figure is the second highest rate of food inflation on
record.

 

A decline in the rate of price rises does not mean food costs have fallen,
it simply means they are going up at a slower pace.

 

What is inflation?

Inflation calculator: How much are prices rising for you?

Meanwhile, the pace of price rises for non-food goods grew from 5.5% in the
year to April to 5.8% in May.

 

This is despite supermarkets making "heavy discounts" on goods such as
footwear, books and home entertainment, according to Helen Dickinson, chief
executive of the BRC.

 

Fresh produce showed a slowdown in price rises, from 17.8% to 17.2% in May.

 

In April, supermarkets cut the price of milk by 5p, taking cost of a pint to
90p. However, that is still almost double pre-Covid prices in March 2020.

 

Price growth for ambient foods - which are goods that can be stored at room
temperature - rose in the year to May from 12.9% to 13.1%. It is the fastest
increase on ambient foods prices on record, said the BRC and NielsenIQ.

 

Ms Dickinson said: "The price of chocolate and coffee rose off the back of
the ongoing high global costs for these commodities."

 

Last week, official figures showed that the overall headline rate of
inflation had fallen sharply to 8.7% in April - the first time it fell under
10% since August.

 

However, the drop was less than economists and investors had expected after
grocery price rises remained close to the highest rate in 45 years.

 

It is also still more than four times the Bank of England's 2% target rate
of inflation. The Bank has lifted interest rates 12 times in a row to 4.5%
in an attempt to calm price rises.

 

But following the higher-than-expected figure for April, some analysts
speculated that interest rates could reach 5.5% by the end of the year.

 

Food production costs have risen due to a number of factors including the
cost of energy which rose following the end of Covid lockdowns, which pushed
up demand, as well as Russia's attack on Ukraine.

 

Russia, which is a major oil and gas producer, was hit with sanctions.

 

Ukraine - known as the breadbasket of Europe - is one of the biggest
exporters of grain in the world and has seen shipments severely disrupted
because of the war.

 

Adverse weather conditions in some parts of Europe and Africa also impacted
some fresh vegetables earlier this year, leading to supermarkets introducing
customer limits on sales of peppers, tomatoes and cucumber.

 

Wholesale gas prices have started to drop but retailers claim that falling
production costs take time to filter through to supermarket shelves due to
the long-term contracts they typically sign with food producers.

 

Mike Watkins, head of retailer and business insight at NielsenIQ, said:
"Food retailing in particular is competitive, so hopefully the recent price
cuts in fresh foods is a sign that inflation has now peaked, albeit ambient
inflation may take a little while longer to slow."-bbc

 

 

 

Foxconn: iPhone maker hikes pay ahead of new model launch

Apple supplier Foxconn is ramping up efforts to recruit more workers for the
world's largest iPhone factory, ahead of the launch of a new model.

 

Foxconn says new workers at its plant in Zhengzhou, China will get bonuses
of up to 3,000 yuan ($424; £343) if they stay in the job for at least 90
days.

 

Current employees who successfully refer a friend or family member will also
qualify for an award, it says.

 

The iPhone 15 is expected to be launched in September.

 

Foxconn employees who refer a new recruit will now receive 500 yuan if the
person stays at the company for a month, a post seen by the BBC on the
popular Chinese messaging app WeChat said.

 

It marks the latest move by the Taiwan-based manufacturer to improve
benefits for its workers at the huge plant - known as iPhone City.

 

A Foxconn spokesperson declined to comment when approached by the BBC.

 

iPhone maker sees revenue slump as demand weakens

Original iPhone fetches $63k - but there's a catch

Last year, hundreds of workers protested at the Zhengzhou plant over Covid
restrictions and claims of overdue pay.

 

Videos, which were shared online in October, also showed people jumping a
fence outside the Foxconn factory after it was locked down due to a
coronavirus outbreak.

 

In November, Apple warned that shipments of the iPhone 14 would be delayed
after Chinese officials locked down a district of Zhengzhou, where iPhone
City is located.

 

The iPhone maker then recruited new workers with promises of higher bonuses.

 

However, one worker told the BBC that the contracts were changed so they
"could not get the subsidy promised", adding that they had been quarantined
without food.

 

Foxconn said in response that "a technical error occurred during the
onboarding process", adding that the pay of new recruits was "the same as
agreed (in the) official recruitment posters".

 

The Zhengzhou plant employs more than 200,000 people, making Apple devices
including the iPhone 14 Pro and Pro Max.-bbc

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

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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