Major International Business Headlines Brief::: 06 October 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  06 October 2023 

 


 

 


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

 


 

 


 

ü  South Africa: Economists Warn Against 'Chaotic Budget Cuts'

ü  Seychelles: Tourism - More Airlines Increase Flight Frequencies to
Seychelles Islands

ü  Nigeria: Subsidy Removal - Marketers Demand Emergency Palliative to Ease
Petrol Import

ü  Nigeria: Obasanjo Backs Local Manufacturers, SMEs to End Importation

ü  Morocco: Over 12k Participants Expected At IMF-WB Annual Meetings
(Official)

ü  Africa: It's Time to Fix the Problem of Africa's 500 Percent Debt Premium

ü  Seychelles Seeks Technical Assistance From World Bank for Waste
Management

ü  Sierra Leone: 'Death Sentence for Sierra Leoneans'

ü  South Africa: Eskom Owed R4.7 Billion By Gauteng Municipalities

ü  Kenya Emerging As ICT Destination - President Ruto

ü  Prada to design Nasa's new Moon suit

ü  Metro Bank shares plunge on fund raising reports

ü  Regulator sues Musk to force testimony in X probe

 


 

 


 <https://www.cloverleaf.co.zw/> South Africa: Economists Warn Against
'Chaotic Budget Cuts'

We're not facing an immediate fiscal crisis, says Institute for Economic
Justice

 

"Chaotic budget cuts" are not the answer to the shortfall between tax
collections and government spending, the Institute for Economic Justice has
warned.

 

In guidelines issued to national and provincial departments on 31 August,
the National Treasury pointed to an "exceptionally large" drop in tax
revenue of R22-billion for the first five months of the year. The Treasury
said borrowing conditions for the government were tough, and the public
sector wage increase hadn't been fully budgeted for. As a result, the
Treasury instructed government departments to make some cost cuts for the
rest of the year.

 

But in a report issued ahead of the Minister of Finance's budget policy
statement on 1 November, the IEJ says the shortfall isn't extraordinarily
large and there are ways to fix it without "chaotic budget cuts" which will
hit the economy hard.

 

 

The fiscal crisis "is being exaggerated for political purposes", say authors
Gilad Isaacs, Zimbali Mncube, Liso Mdutyasna and Kamal Rambuth.

 

They estimate the revenue shortfall for the financial year at about
R67-billion, in line with the Treasury's figures. Mostly, the slower tax
collections are the result of a slump in mining, which had contributed a
bigger and bigger chunk of corporate taxes in the last few years. Taxes paid
by firms in other sectors, and income tax paid by individuals, have been in
line with expectations. And the revenue shortfall is not abnormally high,
they say, pointing out that shortfalls of R61-billion, R58-billion, and
R70-billion were recorded in 2017, 2018, and 2019.

 

On the spending side, much of the overspend is the result of the
R37.5-billion public sector wage bill hike for which the Treasury should
have budgeted, they say: "if this overspend is a 'crisis' then it is one
entirely of National Treasury's own making".

 

 

The current budget mismatch "can be solved relatively easily," they say,
proposing a series of options to raise revenue:

 

To fix the immediate shortfall they propose that the government:

 

Move money from the Gold and Foreign Exchange Contingency Reserve Account,
which is the account in which the Reserve Bank records profits and losses
from foreign exchange transactions by the government. R459-billion in this
fund is owed to the government, the economists say; and

Borrow more. In 2022-23 South Africa's debt was at 71% of gross domestic
product, which is in line with the average of 69% for comparable economies.
And even if the whole budget mismatch was covered by borrowing, the debt to
GDP ratio would barely change, they say. Though in the long term South
Africa's debt trajectory is a concern, current levels is not at "crisis"
levels.

To raise additional revenue next year they propose that the government:

 

Raise taxes (but not VAT, which has a disproportionate effect on poorer
people)

Drop some tax breaks to high earners, especially for private pensions and
medical aid (individual tax breaks amount to R305-billion and cutting some
of these could raise upwards of R50-billion, they say;

Re-evaluate corporate tax subsidies;

Raise company tax back to earlier levels (it was cut from 28% to 27% in
2022). This is unlikely to discourage investment, they say, because
investors are more interested in reliable electricity, good port and rail
services, a safe environment, a skilled work force than in a slightly higher
tax rate; and

Reduce the cost of borrowing by moving to shorter term loans which are
cheaper, and renegotiating the terms of loans

In the medium term they say the government should:

 

Consider a wealth tax; such taxes have been used in other countries in times
of economic crisis and if the Treasury really believes this is a crisis, it
would be a good time to introduce a wealth tax, they say; and

Reintroduce some form of the old "prescribed asset" policy in which
retirement funds had to invest a proportion of their assets in government
bonds (effectively lending to government). This would mean safe, guaranteed,
returns for the investors and cheaper borrowing for the state.

-GroundUp.

 

 

 

Seychelles: Tourism - More Airlines Increase Flight Frequencies to
Seychelles Islands

Seychelles is becoming more accessible to visitors from other parts of the
world with an increase in airline connections and flight frequencies, said
Tourism Seychelles, the marketing arm of the tourism department

 

Last Saturday, Condor Airlines resumed seasonal flights to Seychelles with a
new innovative aircraft, the Airbus A330Neo-900. The charter airline links
Seychelles directly to Frankfurt in Germany.

 

Condor will operate a weekly direct flight enhancing the connection between
Germany and Seychelles and from November 21 to March 12, 2024, it will add
an additional weekly flight to the route.

 

 

Edelweiss Airline, the renowned Swiss leisure carrier, also resumed
operations with a weekly direct flight from Zurich to Seychelles.

 

Another European carrier, Turkish Airlines, will operate three weekly
flights end of October connecting Seychelles to Istanbul.

 

Ethiopian Airlines, one of Africa's leading carriers, is set to increase its
flight frequency to Seychelles to twice daily flights in October giving more
options for travellers from various parts of the world including the African
continent.

 

Emirates remains the leading carrier for travellers to Seychelles, currently
maintaining seven flights weekly and resuming its double daily flights as of
October.

 

Meanwhile, Aeroflot, Russia's national airline, will expand travel frequency
to Seychelles as of October 16. The airline will have three weekly flights
connecting Moscow directly to Seychelles, making sure that the Eastern
European country remains among the top source markets for the island.

 

 

The new flight connections are expected to increase visitors' arrivals to
Seychelles in the fourth quarter.

 

The director general for Destination Marketing, Bernadette Willemin, said,
"It gives us great pleasure to witness the surge in flight connections
between Seychelles and crucial markets. The Seychelles Islands have always
been known for their unparalleled natural beauty and vibrant culture and
with these new connections, we eagerly anticipate welcoming travellers from
across the globe to experience our unique paradise."

 

The figures released by the National Bureau of Statistics on September 7,
show that a total of 28,177 visitors arrived in Seychelles in August 2023,
representing a decrease of 4 percent compared to August 2022. However, year
to date figures show that 229,205 visitors disembarked in Seychelles
compared to 216,777 over the same period in 2022.

 

Tourism is the top contributor to the economy of Seychelles, an archipelago
in the western Indian Ocean.

 

Seychelles is currently served by five additional airlines - Air Seychelles,
Qatar Airways, Etihad Airways, Air Austral and Kenya Airways.

 

-Seychelles News Agency.

 

 

 

 

Nigeria: Subsidy Removal - Marketers Demand Emergency Palliative to Ease
Petrol Import

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called
on the Federal Government to set up "emergency palliative measure" that
would enable oil marketers to import petroleum products into the country for
the next three months at an exchange rate of N600 per dollar.

 

It said the palliative should be implemented by the federal government for
the next three months while waiting for the promised reactivation of the
nation's Refineries.

 

The National President of NOGASA, Benneth Korie who said this on Thursday
during the National Executive Council meeting of the Association noted that
the move will go a long way in cushioning the harsh effect of the high cost
of importation and equally bring about reasonable reliefs to businesses and
the cost of living generally.

 

 

In a communique which Korie read at the meeting, he called on the government
to quickly intervene in fixing the deplorable condition of roads in the
country, adding that the distribution of petroleum products across the
country is being hampered by unmotorable roads.

 

He explained further that while NOGASA applauded the removal of fuel
subsidy, the right steps must be taken to cushion its effects for the
survival of citizens and businesses.

 

According to the NOGASA President, Depot Owners are so terribly affected by
the increasing cost of crude oil and exchange rate to the extent that many
Depots are practically deserted as their owners are unable to secure Bank
loans to fund their business due to high interest rates.

 

 

He stated further that more worrisome is the fact that banks are not willing
to guarantee the release of funds to stakeholders as a result of the
difficulty, instability and galloping rates of foreign exchange and high
cost of the Dollar.

 

Korie further told journalists that many Depots are presently dried up or
out of stock, adding that these claims are evidently verifiable.

 

He said, "We wish to intimate you of our grave concerns over the growing
challenges of petroleum products procurement and distribution especially
with the attendant hardships resulting from increases in pump prices of
petrol (PMS) and diesel (AGO) across the country.

 

"NOGASA is seriously worried that between now and December this year, in the
absence of Government urgent intervention, there will be increasing loss of
lives, businesses and jobs with the accentuation by mass shut down of
filling stations and packing up of petroleum tankers, due to unattainable
high cost of importation, lifting, transportation and distribution of
petroleum products.

 

 

"It will be recalled that while NOGASA applauded the removal of fuel
subsidy, we warned and advised that right steps be taken to cushion its
effects for the survival of citizens and businesses.

 

"Similarly, Depot Owners are so terribly affected by the increasing cost of
the crude and exchange rate to the extent that many Depots are practically
deserted as their owners are unable to secure Bank loans to fund their
business due to high interest rates. Banks are not willing to guarantee
funds release to stakeholders as a result of the difficulty, instability and
galloping rates of foreign exchange and high cost of the Dollar. Many Depots
are presently dried up or out of stock, and this is no gainsaying as it is
evidently verifiable.

 

"Worst hit are Filling Stations whose owners find it extremely difficult to
secure funds to procure products for their retail outlets and both the
Independent and Major Marketers are so terribly affected that as at today,
filling stations are shutting down in great numbers on a daily basis and
dealers are going out of business with many more on the verge of bankruptcy
because of their inability to secure funds to facilitate orders for their
stations.

 

"Government must therefore urgently come to the aid of the industry as
quickly as possible to save it from an impending colossal collapse which
will in turn result in a more devastating blow to the economy at large.
Indeed, the success of this Government highly depends on the survival of the
Oil Industry, whose critical stakeholders are presently most negatively
affected."

 

He added that the poor road networks and maintenance need to be addressed as
this development is already a waiting threat to the laudable Compressed
Natural Gas driven transportation innovation of President Bola Tinubu.

 

Korie called for conscious and practical solutions to engage the local
workforce to speedily refurbish and resuscitate bad roads across the
country.

 

This, he added, would also create thousands of jobs for jobless youths and
other restive people in the communities which will definitely be a plus for
this administration.

 

"Finally, the government should do everything to ensure the removal of
everything that has to do with challenges in the areas of importation as
well as clearing in NIMASA, NPA, NMDPRA and other agencies that are involved
with dollar transactions for marketers.

 

"The bottlenecks are simply killing us. Our businesses are dying and the
system is not helping us at all. An urgent action is highly required to save
our industry from total collapse," he concluded.

 

-Leadership.

 

 

 

 

Nigeria: Obasanjo Backs Local Manufacturers, SMEs to End Importation

Former President Olusegun Obasanjo yesterday emphasised the need for the
government to encourage local manufacturers and entrepreneurs as part of
efforts to stop importations.

 

He spoke in Abeokuta, Ogun State, while delivering a keynote address titled,
"SME's key role in manufacturing and import substitution," at the unveiling
of the Luxe Regal Brand of Royal Chairs by the Olatunde Prestige Limited.

 

The event also featured the launch of a book titled, "Your Business as a
Ministry: Developing a Kingdom-centered Perspective to your Work," authored
by Tunde Ebidero.

 

 

Obasanjo, who was represented by his wife, Mrs Bola Obasanjo, explained the
importance of the manufacturing sector in developing the economy and
empowering teeming youths.

 

He lauded the company for breaking grounds in the industry and providing
jobs to the youths.

 

"By helping the people, you have served humanity," he said.

 

Speaking at the programme, the Olowu of Owu, Oba (Prof.) Saka Matemilola,
said, "We all know that the government can't do it alone. Enough of blaming
the government. Like Pastor Ebidero, let us think of what we can do to make
a positive difference. We should all think of what we can do to support the
government in creating jobs and thereby reducing poverty and crime in our
society."

 

Ebidero noted he had shut down his importation business and resorted to
local manufacturing of chairs.

 

He said within a few years of establishment, he had discouraged importation,
contributed to the local economy and employed about 1,000 youths.

 

-Daily Trust.

 

 

 

Morocco: Over 12k Participants Expected At IMF-WB Annual Meetings (Official)

Rabat — Around 12,200 participants from more than 180 countries will be
taking part in the Annual Meetings of the International Monetary Fund (IMF)
and the World Bank (WB), to be held in Marrakech from October 9 to 15, said,
on Thursday in Rabat, Minister Delegate for Relations with Parliament and
Government Spokesman, Mustapha Baitas.

 

The choice of Morocco to host these assemblies testifies to the great trust
in the Kingdom's capacities and potential, noted Baitas during a press
briefing held at the end of the weekly meeting of the Government Council,
noting that the Kingdom has achieved a series of economic reforms and
demonstrated resilience in the face of crises, notably the Covid-19
pandemic, inflation and low rainfall.

 

Morocco's hosting of such events is the outcome of work begun many years
ago, reflecting the trust repeatedly expressed by financial institutions in
providing the Moroccan government with a line of credit, as well as a set of
indicators, in addition to the rating issued by a group of international
institutions, which confirms the resilience of the national economy in the
face of several crises, he stressed.

 

-MAP.

 

 

 

Africa: It's Time to Fix the Problem of Africa's 500 Percent Debt Premium

Rather than having too much debt, the challenge for countries in Africa may
be that their debt is just too expensive. But there are remedies.

 

As finance ministers, officials and NGOs fly to Marrakech for the Annual
Meetings of the World Bank and IMF on 9-15 October, they should think
carefully about what they can deliver to meet two criteria: ambition that
meets the scale of the challenges we face; and decisions that are achievable
given the current political capital available. This may sound like an
impossible conundrum but African leaders have already laid out a blueprint.

 

With roughly five years of our current carbon budget remaining to stay
within 1.5°C above pre-industrial levels - and with new World Bank data
showing 8.6% of the world's population lives under $2.15 a day (unchanged
since 2019) - developing countries, particularly in Africa, need a major
injection of low-cost capital. Credible estimates put the external financing
needs in the region of $1 trillion a year by 2030.

 

 

This much is clear, yet the leaders of countries with the power to unlock
this capital are increasingly turning inwards, driven by domestic cost of
living crises and internal political challenges. The limited attention on
global issues tends to be drawn towards Ukraine and US-China tensions. With
election season also looming in the US, EU, India and South Africa, the
political window of opportunity could soon narrow, if not close.

 

This is the source of growing frustration among African leaders after three
years of exogenous shocks - from the COVID-19 pandemic, to Russia's invasion
of Ukraine and the resulting food and energy price shocks, to the debt
distress that has been exacerbated by the US raising interest rates. With
limited external support, increasing costs and devalued currencies eating
into their purchasing power, African finance ministers have been forced to
make impossible choices between servicing debt and paying civil servants or
funding education and health services.

 

Taking on yet more debt to solve these challenges may seem a risky strategy,
but new analysis casts a new light on the nature of the debt crisis. The ONE
Campaign has calculated that African countries are paying a 500% premium on
their borrowing from capital markets, compared to rates that could be
achieved with borrowing from the World Bank. This difference will result in
an additional $56 billion in debt service paid on loans taken out over the
last five years. What this suggests is that rather than having too much
debt, the challenge may lie in the fact that African countries' debt is just
too expensive.

 

Thankfully, there is a solution that could be unlocked quickly with the
current political capital available: reform of the Multilateral Development
Bank (MDB) system.

 

 

These banks are designed to solve this problem. Because they are guaranteed
by their shareholders - the world's major economies - they are considered
incredibly safe and can borrow cheaply on capital markets then pass that
low-cost lending onto countries that need it.

 

But these banks are too cautious.

 

Following a series of G20 commissioned expert reports calling for a tripling
of MDB firepower, the system has started to move. In September, the Asian
Development Bank (ADB) announced that it would unlock $100 billion over ten
years through more efficient use of its balance sheet. The Asian
Infrastructure Investment Bank (AIIB) announced a tripling of its climate
finance by 2030. And, this week, the World Bank's Development Committee will
discuss a proposal "Ending Poverty on a Livable Planet" to unlock an
additional $100 billion over ten years and reform the Bank's mission and
operations to be more effective.

 

This is progress, but not at the scale or speed needed.

 

At the Africa Climate Summit this September, leaders laid out a financial
reform agenda calling for a package of measures to meet current challenges.
This included unlocking $500 billion a year from the MDB system and
unleashing the power of IMF Special Drawing Rights, an international reserve
asset, to boost lending power.

 

At the World Bank and IMF annual meetings, leaders should decide to
implement this agenda through doing three things:

 

First, they should commit to incorporate "callable capital" into development
banks capital adequacy frameworks by April 2024. This is a guarantee that
already exists, committing major economies to step in if the banks get into
trouble. If the banks considered it as part of their risk assessments they
could lend much more while maintaining their credit ratings. Recent
estimates suggest the World Bank alone could release $190 billion as a
result.

 

Second, donor economies should decide to use their Special Drawing Rights to
leverage MDB capital. The African Development Bank has put forward a "hybrid
capital" proposal that would not spend the SDRs but use them as collateral
leveraged four times over. Five donors should commit $1 billion each to
unlock this pilot of $20 billion. The precedent could be game changing.
There are currently $375 billion SDRs sitting unused in advanced economies.
Leveraged four times this could unlock $1.5 trillion.

 

Third, IMF shareholders should approve a third seat on the Executive Board
of the IMF for sub-Saharan Africa. This would build on the African Union
being granted a seat at the G20 and respond to ongoing frustrations about
the lack of African representation in the governance of the Bretton Woods
Institutions.

 

Taking these steps would build the resilience of African economies and help
them invest in climate solutions for the future, while addressing the trust
deficit between Africa and Europe and North America in the wake of COVID-19
and Russia's ivasion of Ukraine. These are "no-regret" decisions.

 

David McNair is Executive Director at The ONE Campaign, Non-Resident Scholar
at the Carnegie Endowment for International Peace and sits on the European
Council for Foreign Relations.

 

-African Arguments site.

 

 

 

Seychelles Seeks Technical Assistance From World Bank for Waste Management

Seychelles is seeking the technical assistance of the World Bank through a
soft loan to address the problems the island nation is facing with its solid
waste management, said Vice President Ahmed Afif on Thursday.

 

In its meeting on Wednesday, the Cabinet of Ministers approved the proposal
for seeking a loan of $5 million from the World Bank.

 

"Seychelles imports a lot and most imports come in packaging. Today we are
producing around 90,000 tonnes of waste every year. This is a lot and it
creates many problems. Waste is deposited in bins and although there is a
system in place, it is not always efficient," Afifi told reporters in a
press briefing.

 

 

He said that those who collect waste deposit it on the landfill that is
already full and this is causing certain problems and when the landfill is
not properly managed, it creates other issues like the accumulation of
gases, which can cause fires.

 

Afif shared that according to the World Bank consultants, there are certain
things Seychelles can do to improve waste management.

 

"One is the way we manage our landfill and this is a specialised field and
we do not have all the knowledge. For example, how to structure it, and how
to remove all the spaces in which gas accumulates. There are techniques and
practices that are being used around the world and that we can update
ourselves with," he explained.

 

The Vice President said that one of the components is for "our people in the
Ministry of Environment and on the landfill will acquire the knowledge and
they will share with those operating the landfill so they can adopt the best
techniques."

 

 

Another component is to reduce waste going to the landfill by educating
people on how to reduce waste in bins by separating those that can be used
as compost and removing PET bottles, glass and metals.

 

"Since we introduced the redeem fees on PET bottles in 2008, we have reduced
by 450 million the plastic bottles going to the landfills and 35 million
aluminium cans. There are other products coming in plastic bottles and in
cans and we will learn what kind of technique they can help us with," he
added.

 

Afif said that there is also the idea that "we can use our landfill to
produce energy through biogas but we have been told that the volume of our
landfill is a bit too small and the investment will be very high this may
not be cost-effective. All these questions will be answered if we get the
technical assistance and they can help us formulate policies that will help
us reduce waste in bins and, therefore, less waste on the landfill."

 

-Seychelles News Agency.

 

 

 

 

Sierra Leone: 'Death Sentence for Sierra Leoneans'

Sierra Leoneans are caught in the web of extreme suffering to the point of
death due to an accelerated inflation of basic food commodities precipitated
primarily by fuel pump price hike, sharp increase in electricity tariff, and
above all a predictable increase in telecom tariff by mobile companies to be
soon announced.

 

"Due to the recent hike in the prices of petroleum products, electricity
tariffs, and the foreign exchange rate in the country, the telecommunication
sector is expected to normalize its tariff soon," a credible source within
the telecom industry states.

 

Just a month after the increase in the prices of petroleum products from Nle
25 to Nle30, the Electricity Distribution and Supply Authority (EDSA) on
October 1st issued a statement announcing a new tariff with nearly hundred
percent increment.

 

"On September 21 I credited my EDSA meter with Le500,000 and I got 178
units, and in just over a week today, I credited the same amount and I got
115 units. What EDSA is not just criminal, it is wicked and evil. EDSA has
chosen to somehow transfer the technical and commercial losses to the
consumer instead fixing the perennial transmission, network and theft
problems with determination," lamented Ade Macauley, a senior citizen.

 

 

EDSA had submitted that the tariff increase was precipitated by rampant
theft of electricity and that the institution was running at a loss.

 

Airlines in Sierra Leone have also informed the public about the new tax
that should be paid by outbound passengers.

 

"As directed by government of Sierra Leone, there will be an increase in
taxes of about one hundred and sixty-five dollars (USD 165.00) for all
travel out of Sierra Leone. This new tax takes effect from 1st of December,
2023, hence all ticket issued now for travel from the 1st December,2023,will
attract the new tax."

 

 

For the mobile companies, which are private and profit making entities,
there argument is that all other sectors have adjusted their charges as a
result of the factors listed above, but it is only the telecommunication
sector that has been left unattended.

 

"We are of the view that if nothing is done to protect the sector from
facing economic insolvent it will be counterproductive to the state in terms
of revenue generation, youth employment, and providing financial and moral
support to national activities. This sector which has been ostensibly
neglected is currently one of the highest taxpayers in the country that has
the highest rates of youth employment. With no iota of doubt, if the tariff
normalization does not take effect soon, there is a tendency for over 50% of
staff within the sector to lose their jobs and there is also a proclivity
for the sector to scale down or short down some sites in remote areas where
they are spending millions of Leones to provide connectivity. This it will
be a burden on the people and government of Sierra Leone which is more the
reason that the tariff adjustment is needed now to prevent such shortfall in
the sector," Kandeh Sesay, a journalist and newspaper owner.

 

Kandeh believes that other sectors like the media, sport, entertainment,
tourism, education, child welfare, civil society that are currently
benefitting hugely from the magnanimity provided by the telecommunication
sector will be left to suffer.

 

A seasoned economist, Mr. Dennis Sankoh has argued that when the cost of
producing goods or services is higher than the profit margin, it will lead
to a shutdown of operation. Therefore, he has urged the government of Sierra
Leone to intervene by factoring a new tariff adjustment to protect the
telecommunication industry from falling or find a win-win situation that
will lead to economic equilibrium in the sector.

 

"If the telecommunications sector continues to face serious economic
challenges or crisis it will hurt the economy in terms of services, trade,
Corporate Social Responsibility, and employment," he warned, adding by
applauding the telecom sector for still being committed to driving
investment in the sector.

 

However, the economic expert is of the view that the constant rise in input
costs whilst the tariffs are stagnated at a rate that had been fixed since
January 2023, it difficult for the sector to make more gains in terms of
investment and creation of jobs in the country. He added that the situation
will be further exacerbated by the devaluation of the Leone as against the
dollar.

 

-Concord.

 

 

 

South Africa: Eskom Owed R4.7 Billion By Gauteng Municipalities

Eskom announced on Wednesday that the municipal electricity debt in Gauteng
continues to increase rapidly.

 

This as the City of Tshwane and City of Ekurhuleni jointly owe Eskom R4.7
billion as of 31 August 2023.

 

Tshwane has accumulated a debt of about R3.2 billion over July and August
2023 due to erratic payments, while Ekurhuleni's debt is presently just
under R1.5 billion, the state-owned power utility said.

 

"The payment patterns by both municipalities have deteriorated to concerning
levels that further threaten Eskom's liquidity, financial performance, and
sustainability.

 

"The erratic payments by the City of Tshwane dating back to 2022 are
alarming. Also of serious concern is the entrenched practice by the City of
Ekurhuleni of settling its account late over the past six months," said
Eskom in a statement.

 

Despite all the avenues explored to recover the money, Eskom said both
municipalities have failed to fully honour their payments and to comply with
their electricity supply agreements.

 

-SAnews.gov.za.

 

 

 

Kenya Emerging As ICT Destination - President Ruto

Nairobi — Kenya's global and continental leadership in ICT is growing,
attracting the biggest technology companies in the world.

 

President William Ruto said the country's conducive investment climate and
tech savvy youth had made this possible.

 

Technology, he added, is a crucial emabler for the country's economic
growth.

 

"Kenya has emerged as one of the most exciting frontiers of global tech
competitiveness, with a high revolutionary potential across all sectors," he
said.

 

The President was speaking at the launch of the Amazon Web Services
Development Centre in Nairobi.

 

 

The centre is Amazon's second in Africa and will provide young people with
cloud computing skills and serve as a base for Amazon to extend its African
footprint.

 

"This Centre affirms Kenya's attractiveness as an investment destination and
recognises the opportunities in our digital and ICT sectors."

 

The launch comes just a fortnight after the President met AWS executives in
New York.

 

"We agreed that Kenya will develop and sustain a conducive business
environment that will allow them to expand their investment in Kenya," he
noted.

 

President Ruto said efforts to strengthen education in the country are meant
to enhance Kenya's human capital.

 

"We will continue investing in education and building partnerships so that
we can develop expertise to meet the needs of companies like Amazon," he
said.

 

US Ambassador to Kenya Meg Whitman pointed out that the launch of the centre
is an endorsement of Kenya's business environment.

 

"AWS is one of the most important tech companies in the world; the fact that
they have decided to set up a development centre in Kenya speaks volumes
about this country and this administration," she said.

 

AWS regional lead, public sector sub-Sahara, Robin Njiru lauded the
government's efforts to build a conducive environmental for foreign owned
firms.

 

Nairobi Governor Johnson Sakaja, ICT and the Digital Economy Principal
Secretary John Tanui his Investment counter Hassan Abubakar among other
leaders were present. - Presidential Communication Service

 

-Capital FM.

 

 

 

Prada to design Nasa's new Moon suit

Nasa astronauts will be flying in style, with luxury fashion designer Prada
helping design space suits for the 2025 Moon mission.

 

The Italian fashion house will work to design the suits alongside another
private company, Axiom Space.

 

In a press release, Axiom said Prada would bring expertise with materials
and manufacturing to the project.

 

One astronaut told the BBC he thought Prada was up to the challenge due to
their design experience.

 

That experience has been built not only on the catwalks of Milan but also
through Prada's involvement in the America's Cup sailing competition.

 

"Prada has considerable experience with various types of composite fabrics
and may actually be able to make some real technical contributions to the
outer layers of the new space suit," according to Professor Jeffrey Hoffman,
who flew five Nasa missions and has carried out four spacewalks.

 

But he said people should not expect to see astronauts in "paisley
spacesuits or any fancy patterns like that. Maintaining a good thermal
environment is really the critical thing".

 

"A spacesuit is really like a miniature spacecraft. It has to provide
pressure, oxygen, keep you at a reasonable temperature," he added.

 

Earlier this year, Axiom unveiled a spacesuit, which it said would be worn
on the upcoming Artemis 3 mission.

 

The suit weighed 55kg and was said to be a better fit for female travellers.

 

In a press release, Artemis and Prada said they would use "innovative
technologies and design" to allow "greater exploration of the lunar surface
than ever before".

 

The Artemis 3 mission will be the first time a crew has landed on the Moon
since Apollo 17 in 1972 and will have the first female to land on the Moon
in the crew - Christina Koch.-bbc

 

 

 

 

Metro Bank shares plunge on fund raising reports

Metro Bank's shares plunged after reports it is seeking to raise millions to
bolster its finances.

 

The bank's shares sank by as much as a third after newspapers reported it
needed to raise up to £600m.

 

Metro Bank sought to reassure investors about its financial position on
Thursday.

 

It did not comment on the figure, but said it "continues to consider how
best to enhance its capital resources".

 

The BBC understands Treasury officials have been in touch with the
Prudential Regulation Authority, the financial services regulator, who is
monitoring the situation at Metro Bank.

 

It followed earlier talks between the regulator and Metro Bank itself, which
insiders at the company portrayed as routine conversations.

 

The bank has stressed that its finances remain strong and it continues to
meet all regulatory requirements.

 

Customer deposits up to £85,000 are guaranteed by the Financial Services
Compensation Scheme, which guarantees that if a bank runs into trouble,
depositors will get their money back up to that level.

 

Metro Bank was founded in the wake of the financial crisis and was the first
to open in the UK in more than 100 years.

 

It positioned itself as a so-called "challenger" bank to the big High Street
names when it was founded in 2010, with its promise of being open seven days
a week, and it now has about 2.7 million customers.

 

Its shares were briefly suspended on Thursday morning and dropped more than
25% by the time markets closed. They had already suffered hefty falls last
month after regulators refused to approve a request to lower the capital, or
cash, requirements attached to its mortgage business.

 

The bank is now considering a number of options to boost its balance sheet
before some £350m worth of debt will need to be refinanced in October 2025.

 

Metro Bank shares

A share sale of some £100m is apparently on the table. The bank has also
asked advisers at Morgan Stanley to work on a deal with the hopes of raising
millions in an equity sale, borrowing up to £350m as well as looking at the
potential sale of assets - the money and property owned by a bank.

 

Metro Bank stressed that no decision had been made as yet and that it was
meeting all of the minimum cash requirements set out by financial watchdogs.

 

It is understood its chairman Robert Sharpe met with bosses at the
Prudential Regulation Authority on Thursday morning.

 

But there are some concerns that the High Street lender may struggle to
raise the money it might need in the future.

 

It returned to profit in the six months to the end of June this year, partly
helped by higher interest rates.

 

This marked the first half-year profit the bank had seen since an accounting
scandal in 2019, when it emerged that risk attached to some of its loans had
been underestimated.

 

Its current boss Daniel Frumkin said in July that 2023 would be a
"transitional year" for the bank.

 

Ratings agency Fitch placed Metro Bank on negative watch on Wednesday,
citing concerns over its capital strength and funding, as well as its
business model.

 

Metro Bank's stock market value is now less than £100m, having been valued
at around £3.5bn at its peak five years ago.

 

When it was founded in 2010, it won attention for having branches open seven
days a week and offering small touches like water bowls for customers' dogs.

 

But Russ Mould, investment director at AJ Bell, said: "Metro Bank has been
struggling for years to get on a path to sustained profitability and has
made lots of mistakes.

 

"It seems Metro was rather less adept at the nuts and bolts of banking
itself. The key question is will it find enough backers should it conduct a
fundraise?"

 

He also suggested that some existing investors might feel they have no
choice but to take part in any fundraising, "though they are unlikely to do
so with any great enthusiasm".-bbc

 

 

 

Regulator sues Musk to force testimony in X probe

Financial regulators in the US are suing Elon Musk after the billionaire
said he would no longer cooperate with its investigation into his purchase
of Twitter, now known as X.

 

The Securities and Exchange Commission (SEC) asked a federal court to order
him to comply with their request that he sit for a third session of
testimony about the deal.

 

The move to sue followed receipt of a letter from a lawyer for Mr Musk,
which said he refused to appear as requested.

 

It accused the SEC of "harassment".

 

"Unchecked government action is dangerous and the record here is troubling.
Mr Musk declines to acquiesce in the Commission's incursions and therefore
refuses to appear as you demand," lawyer Alex Spiro wrote.

 

The lawsuit is the latest feud between the SEC and Mr Musk, who once
declared on national television that he had "no respect" for the regulator.

 

The SEC launched its investigation of Mr Musk's $44bn purchase of X last
year.

 

Elon Musk under investigation over Twitter deal

The filing in San Francisco federal court said the agency is probing whether
his 2022 stock purchases before he bought the company outright and
statements he made about those investments broke securities laws.

 

Mr Musk participated in two half-days of testimony via video conference in
July, after he was subpoenaed, the SEC said. The agency said another session
was necessary because nearly half of the documents it had received regarding
the case came in after those meetings.

 

A letter from Mr Musk's attorney to the agency, shared as part of the
exhibit, said it was "unclear why the staff requires further time diverting
Mr Musk from his significant obligations to companies and
shareholders...Enough is enough".

 

The SEC has locked horns with Mr Musk before.

 

In 2018, it charged him with defrauding investors by claiming in a Tweet
that he had "funding secured" to take Tesla, the electric car company he
leads, private.

 

He later settled the charges, stepping down as chairman of the firm's board
and agreeing to accept what was dubbed a Twitter sitter - limits on what he
could write on social media about the company.

 

Mr Musk has repeatedly gone to court to have those limits removed, including
most recently in February.

 

Separately, a judge in New York ruled this week that Mr Musk must face a
lawsuit from former Twitter investors who claim he defrauded former
shareholders by failing to promptly disclose his share purchases, but an
insider trading claim was dismissed.-bbc

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

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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