Major International Business Headlines Brief::: 09 October 2023

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief:::  09 October 2023 

 


 

 


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

 


 

 


 

ü  Rwanda Closes All Diesel Power Plants

ü  Nigeria: Customers Groan Over High Cost of Yam in Niger

ü  Nigeria: FG Targets 40 Million Jobs in 2 Years From Methanol Technology

ü  Nigeria: Dyeing Business Dying as 525-Year-Old Kano Pit Faces Extinction

ü  Tanzania: Small Scale Mining Areas to Be Connected to Power

ü  Nigeria: Federal Govt to Launch U.S.$617 Million Investment in Digital,
Creative Enterprises

ü  Ethiopia Mulls Policy Shift to Allow Foreign Exporters Imports Access

ü  Kenya: Govt to Ban Wheat, Maize Imports to Protect Local Farmers

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

ü  Rwanda: World Bank Names Rwanda Among Africa's 'Pocket of Resilience'
Nations

ü  Oil prices rise on fear of Middle East supply disruptions

ü  Car workers strike not expanded as concession made

ü  Nevada lithium mine leads to 'green colonialism' accusations

ü  High US jobs growth fuels rate rise expectations

ü  Tweet saying FTX was 'fine' was false, court hears

 


 

 


 <https://www.cloverleaf.co.zw/> Rwanda Closes All Diesel Power Plants

Rwanda closed all its diesel power plants in June this year, stopping the
generation of such electricity as the country's hydroelectricity and methane
gas sources expanded to make a significant contribution to the grid.

 

Speaking in a media interview on Sunday, October 8, infrastructure minister
Jimmy Gasore said two new power plants, Rusumo Hydro Project and Shema Power
Lake Kivu Ltd were opened recently, a development that facilitated the
decommission of diesel power plants.

 

The Rusumo Hydro Project is a joint scheme shared by Rwanda, Burundi, and
Tanzania. Upon full operation, it is expected to generate 80MW, with each
country getting 26.6MW. Shema Power Lake Kivu Ltd is a methane gas power
generation plant that aims at generating 56MW.

 

 

Before the closure of the diesel power plants, Rwanda had five such power
plants, generating 26.76 per cent of the total electricity in the country.

 

In addition to this, the country has up to four thermal power plants that
use alternative fuels such as methane and peat. Altogether, such power
plants were generating 51 per cent of the total electricity in the country
before the decommissioning of diesel power plants.

 

In an earlier interview, the Managing Director of the Energy Development
Corporation Limited (EDCL), Felix Gakuba, told The New Times that diesel-run
power plants were expensive to run due to fuel consumption, and noted that
once the Rusumo Hydro Project starts to work, such plants would be stopped.

 

With such developments in place, the government hopes to lower electricity
prices "soon". Gasore encouraged people to use electric vehicles, because
"there is enough electricity" in the country because we are "not importing
it from Saudi Arabia or Russia," as we do with petroleum products.

 

 

Meanwhile, the country is also planning to harness solar energy. According
to Rwanda Energy Group (REG), with a potential of 4.5 kWh per m2 per day and
approximately five peak sun hours, solar energy has a huge potential in
Rwanda.

 

Statistics from REG show that Rwanda's total on-grid installed solar energy
is 12.230 MW originating from five solar power plants namely the Jali power
plant generating 0.25MW, Rwamagana Gigawatt generating 8.5 MW, Ndera Solar
power plant generating 0.15MW and the Nasho solar plant generating 3.3 MW.

 

The Government of Rwanda intends to increase the number of solar power
plants to reduce the cost of production and take advantage of available
renewable sources in Rwanda.

 

-New Times.

 

 

 

Nigeria: Customers Groan Over High Cost of Yam in Niger

Minna — Customers are groaning over the high cost of yam in Niger State
markets.

 

Daily Trust on Sunday gathered that five tubers of yam cost between N3,000
and N5,000 depending on the size.

 

A customer, Sadiq Mohammed, told our correspondent that he has been buying
potatoes for over a month due to the high cost of yam.

 

Traders at the Maitumbi Market told our correspondent that the price was
fair when compared to two months ago when farmers in the state had not
started harvesting.

 

Hajiya Halima Isah, a trader, said "the price has even come down because
Gbagyi farmers have started harvesting. Before now, when we were supplying
from Bendel, five tubers normally sold for N2,500 was N5,000 without
bargaining."

 

 

Daily Trust on Sunday gathered that most of the yams currently in Niger
State markets were supplied from Ekiti and Edo despite the fact that the
state was one of the major yam producers in Nigeria.

 

A yam seller at the Paiko International Yam Market, Yahaya Salihu,
attributed the high cost of yam to high cost of transportation.

 

"Personally, I supply yam to Niger State from Ekiti but there are other
traders who buy from Bendel. We also supply to the neighbouring countries of
Republic of Niger and Benin Republic. We pay N18,000 per hundred tubers
known as 'kwariya' from Ekiti State. A J-5 bus carries 24 'kwariya'. So, it
costs us N432,000 to fully load a J-5 bus from Ekiti to Niger State. So, how
do you expect the price to fall," he asked.

 

He said late harvesting of yam in Niger State was caused by late rainfall on
one hand and banditry on the other hand, especially in major yam producing
LGAs.

 

Daily Trust on Sudnay recalls that major yam producing LGAs of Shiroro,
Munya, Paikoro and Rafi have been battling banditry and insurgency for the
past eight years, with over 29,000 farmers forced out of their communities.

 

-Daily Trust.

 

 

 

Nigeria: FG Targets 40 Million Jobs in 2 Years From Methanol Technology

The federal government said its methanol fuel technology programme would
create over 40 million new employment opportunities for Nigerians in two
years.

 

The Minister of Science, Innovation and Technology, Chief Uche Nnaji, who
disclosed this in Abuja at the weekend, said the government's methanol
economy revolution would harness the vast potential of methanol as a clean
and sustainable energy source and position the country as a leader in
Africa's energy transition.

 

"It can potentially create over 40 million new employment opportunities in
two years and complement other efforts in curbing the effects of fuel
subsidy removal on the populace," Nnaji said. The minister added that
President Bola Ahmed Tinubu's administration was committed to solving
Nigeria's problems through innovation in science and technology.

 

He expressed dissatisfaction that despite the country's rich endowment in
natural resources, youth unemployment remains a massive challenge as the
country constantly exports domestic jobs by importing products that can be
produced locally.

 

The minister also maintained that Executive Order 5 would tackle the
bottleneck mitigating against the manufacturing sector in Nigeria, adding
that improved power supply, locally fabricated machines and local
technologies, if well harnessed, would increase export and boost Gross
Domestic Product (GDP).

 

-Daily Trust.

 

 

 

 

Nigeria: Dyeing Business Dying as 525-Year-Old Kano Pit Faces Extinction

The popular and historic 525-year-old Kano dyeing pit situated in the
ancient Kofar Mata area in Kano State is currently facing extinction. In a
recent visit to the once fascinating, ever-busy dyeing pit, our
correspondent observed that it is now in shambles.

 

It was also observed that few people work as dyers in very few functional
pits.

 

The Kofar Mata dyeing centre was established in 1498 by Muhammadu Dabosa,
who came to settle in Kano from Rimaye in the present day Katsina State.
Beside being a farmer, Dabosa began the dyeing of cloths as a family craft,
and since then, the family has been running the business.

 

 

The historic Kofar Mata pit is one of the historical monuments in Kano
State. The centre has served as a first port of call to national and
international guests and tourists who visited Kano State on either official
or personal engagements.

 

While the centre serves tourism purposes and is visibly noticed by
passersby, it is clear that one could pass the Kofar Mata without noticing
the centre, which is located by the roadside, with petty traders displaying
their goods along the old perimeter fence.

 

Moving into the pits area, one is greeted with a display of many dyeing
pits, amounting to 144. However, not more than five are now functional, just
to keep the business going.

 

Daily Trust on Sunday reports that majority of the pits now serve as
dumpsites, majorly with plastic waste mixed with water, a situation that
could trigger pollution and lead to outbreak of diseases.

 

 

Speaking on the situation, the secretary of the centre, Haruna Baffa, said
the act was on purpose despite that it didn't look healthy.

 

"Normally, when we leave the place open the sun hits the pits and they
crack, that is why we leave the refuse inside, but if we can get orders from
people, we can open all the dye pits.

 

"Two years back, the business was moving more than this. We are now facing
problems, especially since the naira redesign era. The business is not going
well. Normally, the people provide the money and we buy the fabrics. We used
to buy one yard at N400, but it is now N700. It is very expensive," he said.

 

He said many people had left the business they inherited from their parents
and sought for other avenues to earn a living, adding that it is only
through miracle and patriotic act on the part of the operators that the
business is still afloat to this day.

 

"Many of us have resorted to other businesses because this one is no longer
lucrative here.

 

 

"Female members of the family are equally involved in the business because
they are the ones who create the beautiful designs on the fabrics that are
already dyed by the men.

 

"A lot of tourists come to us from all over the world to have a look at how
we operate and how we have managed the use of the same method we inherited
to produce such textile materials with excellent quality," he said.

 

According to the secretary, records exist to show that fabrics made by Kofar
Mata dyers were adjudged the best over the years. He added that their
ancestors told them that a Kofar Mata-finished fabric was always in high
demand, especially during festive periods.

 

"Kofar Mata-finished fabrics were the best among what we sold here in those
days. We usually ran out of stock due to high demand by people from Mali,
Togo, Niger, Senegal and some countries in Asia and Europe. We were not only
rich but also proud of the craft," he added.

 

He further lamented that with the intrusion of the Chinese into the dyeing
business, thousands of youths across the state were rendered jobless as the
foreigners were allowed to import low and cheap quality fabrics made from
plastic fabrics instead of cotton into Nigeria.

 

The dyeing business has continued to suffer neglect from successive
governments as those in it complain of lack of support and encouragement
from the authorities concerned, as well as the coming of the Chinese into
the business.

 

On his part, Ibrahim Hamisu, popularly known as Babaliya, who is the public
relations officer of Kofar Mata Dyeing Centre, further pointed out that the
pits, popularly called 'tukunyar baaba,' were up to 144 in number.

 

"We have them in different sizes. There were those of 6 metres, 4 metres and
3 metres. During that time, if someone intended to throw stones into this
factory, it would have landed directly on people here. This is because
everywhere used to bustle and business was booming. We produced goods and
worked from morning until night everyday. But as you can see now, the place
has gone down and there are many reasons for that.

 

"This place is a prominent. We do business with expatriates, including white
people from Italy. We do business with people from African countries, such
as Niger, Senegal and Mali.

 

"However, insecurity, particularly in the North, have been a key contributor
to the decline in our business as these people no longer feel safe to come.
We know it was not always like this; and we are hopeful that soon, this
shall become history.

 

"Normally, two people worked in a pitch, one person at each side. We had up
to 50 male workers in the factory. There were about 30 female workers who
make the designs from home and bring it here for us to dye.

 

 

"In total, in the past we had about 80 workers here, both males and females.
And that was just between the time of the Buhari administration and the
present administration.

 

"In the past, everybody knew how thriving this business was because the
youth were serious with it. We had a lot of people who patronised us, as
well as those who brought their goods for dyeing.

 

"It was with the coming of this new administration that everything changed,
but we are hoping that everything would go back to how it used to be and
even more.

 

"As you know, every business has its season. Just like other textile
businesses, ours too thrives more during festive seasons," he said.

 

Reacting to the situation, the executive secretary, Kano History and Culture
Bureau, Ahmad Abba Kabir, said they were determined to upgrade the facility
since they have the responsibility of protecting, conserving and developing
the history and cultural heritage, sites and monuments in Kano State.

 

He said, "Taking into cognizance the socioeconomic significance of the
dyeing pit, the present administration is committed to uplifting the status
of Kano. The History and Culture Bureau has made proposals to the state
government to gather such historic sites, and this is part of it.

 

"We are working to upgrade its physical structure to a world class facility
in modern dyeing. And it will go a long way in creating opportunities for
our teeming youth.

 

"We are working on bringing befitting architectural designs; and I assure
you that you will see all I am telling you in due course.

 

"We are also working to partner with organisations, both at the local and
international level, to see how best we can develop this important
facility."

 

-Daily Trust.

 

 

 

Tanzania: Small Scale Mining Areas to Be Connected to Power

Geita — THE government has started to implement a special project to connect
electricity to small-scale mining areas to minimize production costs and
promote the use of technology in the mining sector.

 

Deputy Prime Minister and Minister of Energy, Dr Dotto Biteko revealed that
recently while speaking to the people after inaugurating electricity
services in the villages of Magenge and Kasesa of Busanda constituent in
Geita district.

 

Dr Biteko said the project is part of the two projects being implemented in
Geita district, which are the Rural Electricity Agency project, Phase Three,
Round Two (REA3R2) and the Electricity Distribution in Mining.

 

 

He said there have been many complaints from small-scale miners claiming to
use oil machines in extracting and refining minerals which contribute to
high cost and thus being less profitable.

 

"We aim to minimize the production costs at the mining areas because the
price of oil has been increasing on daily basis, we must look for a relief
to save our small miners, and we do not only talk, we are committed to
implementation the project.

 

The Geita Regional Commissioner, Mr Martin Shigella said currently the
region is facing a shortage of electricity in the island areas but the
government is working on that and has come up with a project to reach people
in the areas.

 

Busanda Member of Parliament, Engineer Tumaini Magesa admitted that
supplying electricity to small-scale miners, will help them to abandon poor
technology and advance to modern technology.

 

Earlier, the Director of Rural Electricity, Engineer Jones Olotu said the
government has allocated 39.1bn/- to connect electricity to villages which
are yet to be reached with the service noting that so far 334 villages have
electricity out of 461 villages.

 

Engineer Olotu said that in Geita district, 70 villages are not connected to
power and contractors are at work and already 42 villages have been
electrified.

 

According to The Tanzania Electric Supply Company Manager Engineer Grace
Ntungi said about 18bn/- has been allocated for the Small Mining project, to
deliver electricity to 35 areas of small-scale miners in the regions of
Geita, Mwanza, Simiyu, Mara and Kagera.

 

-Daily News.

 

 

 

Nigeria: Federal Govt to Launch U.S.$617 Million Investment in Digital,
Creative Enterprises

Determined to deliver on the promise to create millions of jobs in the
technology space, President Bola Ahmed Tinubu's administration has proposed
November 2023 to launch the $617.7 million Investment in Digital and
Creative Enterprises (i-DICE) programme.

 

To ensure this unfolds into a reality, Vice President Kashim Shettima has
given an order to members of the i-DICE Steering Committee to make sure the
programme starts before the end of November this year.

 

According to a statement by his media aide , Stanley Nkwocha, the vice
president gave the directive yesterday when the i-DICE team gave him an
update on the progress made so far during a meeting at the Presidential
Villa, Abuja.

 

 

At the meeting, Sen. Shettima emphasised the importance of the initiative to
the federal government's digital jobs drive, saying the administration was
keen on delivering on its promises to Nigerians.

 

He urged all partners in the i-DICE programme to ensure judicious
utilisation of the funds, noting that the $617.7 million scheme could be a
game changer.

 

He stated: "The peculiarity of the challenges we face in the country demands
that we have to create jobs for our teeming youths to address the crises
associated with youth unemployment. I want to appeal to all of us here to
unite and see that this programme takes off latest by the end of November
this year."

 

Speaking with State House correspondents after the meeting, Minister of
Finance, Mr Wale Edun, described the project as "very key to the promise of
His Excellency, President Bola Ahmed Tinubu, particularly to the youth, for
the creation of 1.2 million digital jobs.

 

"This $617 million project will go a long way to achieving the President's
priorities on job creation and economic growth, particularly inclusivity.
One of the major elements is going to have 50% participation by women," he
added.

 

Minister of Communications, Innovation and Digital Economy, Mr Bosun
Tijjani, said the scheme is a unique opportunity.

 

He said: "The Nigerian technology and creative ecosystem has been doing well
and is the best on the continent. We actually want to be a leader globally.
And there's no other way to do that than investing in the technology
startups that are building these solutions."

 

Managing Director of the Bank of Industry, Mr Kayode Pitan, hinted that the
vice president gave them marching orders to start by next month.

 

-Leadership.

 

 

 

Ethiopia Mulls Policy Shift to Allow Foreign Exporters Imports Access

Ethiopia is considering allowing foreign exporters established in the
country to utilize export revenues for imports, a move requested
particularly by meat exporters to offset losses from exporting business,
incurred by high domestic inflation.

 

In a major policy shift, the government is aiming to reverse a longtime ban
on foreign businesses importing goods into the country.

 

A joint task force comprised of officials from the Ministry of Trade,
Industry and the Ethiopian Investment Commission (EIC) along with other
stakeholders, is currently conducting research that will likely result in
allowing foreign investors in Ethiopia to engage in import operations other
than own inputs.

 

 

"Research is underway to allow FDI exporters to do import business. This
discussion has been ongoing for a while, but we determined further study was
needed before making any changes," stated Temesgen Tilahun, deputy
commissioner at the EIC. "It will be allowed for strategically important
sectors."

 

Temesgen says the study will be presented to policymakers. "It is a
multi-stakeholder initiative and different institutions are represented in
the team."

 

- Advertisement -If approved, the move would enable foreign companies
established in Ethiopia to utilize forex retention brought in through
exports to import items while also contributing to the government's efforts
to address supply constraints and inflation issues facing the country.

 

Tilahun Abay, an advisor to the Ministry of Industry, elaborated on the
government's considerations.

 

 

"In our three-year medium-term plan, the government prioritized improving
supply and properly addressing inflation. Allowing foreign companies in
Ethiopia to engage in importing is one potential tool," he told The
Reporter.

 

Currently, the law prohibits FDIs from conducting import operations in
Ethiopia. "So far, the law prohibits FDIs to do import business in Ethiopia.
Now there is consideration, though a final decision has not been made yet,"
Tilahun added.

 

The initiative comes after requests by existing FDI exporters seeking to
compensate for losses in their export businesses. Allana Group Ethiopia, a
leading processed meat exporter, is among those lobbying for import rights.

 

In a letter to the Ethiopian Livestock Development Institute last August,
Allana outlined two options. The first was allowing the company to utilize
foreign exchange reserves from exports for importing.

 

 

The second proposal was to establish a level playing field by banning all
exporters from compensating losses through imports. "If need be, the
government should take 100 percent of the foreign currency from exporters
and create a level field for all," the letter stated.

 

Allana requested the option as "justification" to stay viable.

 

"We incur a USD 2,500 loss for every ton of meat we export because the price
of livestock in the domestic market is up to three times higher than the
international meat price," Kelifa Hussein, CEO of Allana Group Ethiopia,
told The Reporter.

 

Domestic inflation, according to Kelifa, is forcing exporters to export at a
loss. "Even though the central bank recently increased our forex retention
rate from 20 to 40 percent, we still can't use those funds for import
business."

 

The CEO says that local exporters are compensating for their export losses
by importing items and profiting up to 200 percent from those imports. "But
as foreign exporters, we aren't allowed to import, so we have no way to
offset our losses."

 

"If the government does not accept our request, we'll have to stop all
export operations," the CEO explained. He says the Ministry of Agriculture
has accepted the request.

 

"It's a real problem, so our request has been forwarded to the PM's
macroeconomic team. We're just waiting on a final decision now--our issue
does not give us time," added Hussein.

 

Tilahun acknowledged the government aims to gradually open imports and
retail to foreign players.

 

"It's already planned to allow strategic commodity imports by foreign
suppliers as a stepping stone towards implementing the African Continental
Free Trade Agreement," he said.

 

However, Tilahun fears fully liberalizing imports could undermine local
producers.

 

"Therefore, it will be step-by-step--first allowing FDI exporters based in
Ethiopia to import using their self-generated forex. Then, gradually, the
retail business will also be opened as well."

 

-Reporter.

 

 

 

Kenya: Govt to Ban Wheat, Maize Imports to Protect Local Farmers

Nairobi — No permits will be issued to millers to import wheat or maize into
the country.

 

President William Ruto said the move is aimed at protecting local farmers.

 

He said the Government will only deviate from the directive if the local
produce is insufficient.

 

The President pointed out that the Government will allocate Ksh 4 billion to
buy maize from farmers.

 

The Head of State maintained that the move is aimed at stabilising prices.

 

He was speaking on Thursday at State House, Nairobi, when he met a
delegation from Narok North Constituency led by its MP Agnes Pareiyo.

 

Also in the meeting were Governors Patrick Ole Ntutu (Narok) and Jonathan
Leleliit (Samburu), Narok West MP Gabriel Tongoyo, MCAs and grassroots
leaders.

 

"We ask our farmers not to sell their produce at throw-away prices."

 

To reduce post-harvest losses over high moisture, the Head of State
announced that NCPB driers will be used to dry farmers maize at a minimal
fee of Ksh 50.

 

This is from a high of nearly Sh400 a bag.

 

"Even if farmers don't want to sell their maize to NCPB, they will have an
opportunity to dry their produce at the State agency and store it," he
explained.

 

The President said a KCC milk plant will be constructed in Narok to improve
milk quality and thus boost prices. - Presidential Communication Service

 

-Capital FM.

 

 

 

 

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.

 

 

 

Rwanda: World Bank Names Rwanda Among Africa's 'Pocket of Resilience'
Nations

Sub-Saharan Africa is bracing itself for a slowdown in economic growth, with
projections indicating a decline from 3.6 per cent in 2022 to 2.5 per cent
in 2023, as per the latest World Bank forecast.

 

The World Bank released its findings on Wednesday, October 5, underlining a
grim economic outlook for Africa, characterized by sluggish growth recovery.
It emphasised the urgent need for stability, increased growth, and job
creation to avert a potential "lost decade."

 

ALSO READ: World Bank official talks support for disaster-struck families

 

Andrew Dabalen, the World Bank's Chief Economist for Africa, highlighted
that the region's poorest and most vulnerable populations are
disproportionately affected by this economic deceleration, leading to
sluggish poverty reduction and limited job opportunities.

 

 

"With up to 12 million young Africans entering the labor market across the
region each year, it has never been more crucial for policymakers to revamp
their economies and provide better job opportunities for the people,"
Debalen stressed.

 

The report reveals that regional growth is projected to slow to 2.5 per cent
in 2023, dropping from 3.6 per cent in the previous year, with an
anticipated rebound to 3.7 per cent next year and 4.1 per cent in 2025.
However, in per capita terms, the region has not experienced positive growth
since 2015, as economic activity has failed to keep pace with the rapid
increase in population.

 

The report also notes that while approximately 12 million Africans join the
labor market annually, the current growth patterns generate only 3 million
jobs in the formal sector.

 

 

South Africa, the continent's most developed economy, is expected to grow by
a mere 0.5 per cent this year, primarily due to its severe energy crisis.
Similarly, economic growth in Nigeria and Angola, top oil-producing nations,
is anticipated to slow to 2.9 per cent and 1.3 per cent, respectively.
Sudan, amidst a major internal armed conflict, faces a significant 12 per
cent contraction. Excluding Sudan, regional growth is estimated at 3.1 per
cent.

 

Bright spots

 

Despite domestic challenges and uncertain global growth, the World Bank
identifies "pockets of resilience" within the region. For instance, the
Eastern African community is projected to achieve a growth rate of 4.9 per
cent in 2023, while the West African Economic and Monetary Union (WAEMU)
anticipates a growth rate of 5.1 per cent.

 

Analysing the speed and persistence of per capita growth over two timeframes
--2001-2019 and 2022-2025 -- the report shows that a few countries,
including Rwanda, Benin, Côte d'Ivoire, Ethiopia, Mauritius, and Uganda, had
demonstrated economic resilience, maintaining growth rates above 2.5 per
cent in both periods

 

However, the report raises concerns about the quality and sustainability of
this growth in the future.

 

ALSO READ: Rwanda projected to register highest GDP growth in region

 

According to the World Bank, Rwanda's economic activity had a robust start
in 2023, with real GDP growing by 9.2 per cent year-on-year in the first
quarter, following an 8.2 per cent increase in 2022. The Bank attributes
this expansion to robust growth in private consumption and increased net
exports.

 

While inflation is on a downward trend, it remains above central bank
targets in most regional countries, including Rwanda. Contributing factors
include a global demand slowdown, easing global supply chain disruptions,
lower commodity prices, and contractionary monetary policies, all leading to
lower inflation. In 2023, inflation is expected to decrease to 7.3 per cent,
down from 9.3 per cent in 2022.

 

Inflationary pressures stem from higher food and fuel prices, coupled with
weaker domestic currencies, disproportionately affecting the income and
consumption of the poor who allocate a larger portion of their income to
food.

 

-New Times.

 

 

 

Oil prices rise on fear of Middle East supply disruptions

Oil prices jumped by 4% on Monday on concerns that the situation in Israel
and Gaza could disrupt output from the Middle East.

 

West Texas Intermediate (WTI), the benchmark for US oil, rose to more than
$86 (£70) a barrel.

 

The price of Brent crude also surged in early Asian trading.

 

The Israel and Palestinian territories are not oil producers. But the Middle
Eastern region accounts for almost a third of global supply.

 

A wave of attacks launched by the Hamas militant group on Saturday was the
biggest escalation between the two sides for decades.

 

Western nations condemned the attacks but a spokesperson for Hamas told the
BBC that the group had direct backing for the attack from Iran.

 

Iran denied involvement in the attack at at UN Security Council meeting in
New York on Sunday, Reuters reported. But Iranian President Ebrahim Raisi
has expressed support for the attack.

 

"The risk premium on oil is rising due to the prospect of a wider
conflagration that could spread to nearby major oil producing nations such
as Iran and Saudi Arabia," energy analyst Saul Kavonic told the BBC.

 

"If the conflict envelops Iran, which has been accused of supporting the
Hamas attacks, up to 3% of global oil supply is at risk," he added.

 

Around a fifth of global supply would be "held hostage", Mr Kavonic said, if
passage through the Strait of Hormuz, a vital oil trading route is
disrupted.

 

The Strait of Hormuz is crucial for the main oil exporters in the Gulf
region, whose economies are built around oil and gas production.

 

Uncertainty over how events could develop in the coming days may also drive
investments into US Treasury bonds and the dollar - which investors
traditionally bought at times of crisis, said James Cheo from HSBC bank.

 

"At this stage, there is a bit of nervousness. [Investors] want to see a
little more clarity, particularly on economic data and on developments
associated with geopolitical uncertainty," added Mr Cheo, the Southeast Asia
and India chief investment officer of the bank's private banking and wealth
management division.

 

Following Russia's invasion of Ukraine in February 2022, oil prices soared,
hitting more than $120 a barrel in June last year.

 

They fell back to a little above $70 a barrel in May this year, but have
steadily risen since then as producers have tried to restrict output to
support the market.

 

Saudi Arabia, a major oil producer, said it would make cuts of million
barrels per day in July.

 

Other members of Opec+, a group of oil-producing countries, also agreed to
continued cuts in production in an attempt to shore up flagging prices.

 

Opec+ accounts for around 40% of the world's crude oil and its decisions can
have a major impact on oil prices.-bbc

 

 

 

 

Car workers strike not expanded as concession made

The United Auto Workers (UAW) union has not expanded its strike action
against three of America's biggest car firms, citing "significant" progress
in talks.

 

Union boss Shawn Fain said it would hold off after General Motors had agreed
that workers at its electric vehicle battery factories would automatically
become union members.

 

But while it will not stage walk outs at new locations, the strike
continues.

 

"Our strike is working but we're not there yet," said Mr Fain.

 

Roughly 25,000 car workers at GM, Ford Motor and Chrysler parent Stellantis
are currently on the picket line.

 

The union, which represents roughly 146,000 people at the firms, declared a
strike in mid-September, after contracts between the two parties expired.

 

It is the first industrial action by the UAW to target all three companies
at once, but it has remained limited in scope, as the union calls on select
locations to participate, wielding the threat of more to try to pressure the
companies to agree a deal.

 

So far, the union has ordered walkouts at five factories and 38 parts depots
operated by GM and Stellantis.

 

This week, the UAW considered a strike at GM's SUV manufacturing plant in
Arlington, Texas, but Mr Fain said the company had "leapfrogged" the pack in
talks.

 

GM said in a statement that negotiations were "ongoing", adding the company
would "continue to work toward finding solutions to address outstanding
issues".

 

"Our goal remains to reach an agreement that rewards our employees and
allows GM to be successful into the future," the car maker said.

 

Why are US car workers on strike?

The union opened negotiations calling for pay rise of roughly 40% over four
years and an end to practices that give newer hires lower pay and fewer
benefits, among other demands.

 

The companies have maintained that the union's requests would impact their
ability to invest in the long term. They have countered with pay increase of
about 20% and some other concessions.

 

How workers at battery plants, formed by joint ventures, would be treated
had loomed over the talks, as the industry prepares to ramp up electric
vehicle production.

 

US President Joe Biden and former President Donald Trump, who is running for
re-election, have both visited Detroit area to address the strikes, which
comes as labour tensions simmer across the country.

 

Mr Fain said the fight for better contracts was about more than workers,
saying: "This is the entire working class," at an event in Detroit.

 

"It's shameful where we are as a nation," he added.-bbc

 

 

 

 

Nevada lithium mine leads to 'green colonialism' accusations

In the high Nevadan desert near the Oregon border lies an enormous deposit
of lithium, a metal that is essential in the production of electric car
batteries.

 

President Joe Biden wants to get it out of the ground. But its exploration
is dividing communities which are usually on the same side of political
arguments.

 

Environmentalists and native people cannot agree on whether a new rush for
this "white gold" should be supported or fiercely opposed.

 

"The entire environmental community is split on this thing," says Glen
Miller, who used to be on the board of local environmental charity Great
Basin Resource Watch, which is opposed to mining.

 

In March, the diggers moved into a stunningly beautiful area called Thacker
Pass, 4,000ft (1,219m) above sea level. It was formed by an ancient volcano
and has sagebrush valleys ringed by desolate mountain tops.

 

After years of legal battles, Lithium Americas had finally won its bid to
mine the area.

 

The location of the Thacker Pass Project highlighted on a map

Mr Biden has said explicitly that he wants the US to be the world leader in
electric cars - and wants the lithium that is key to making them to be mined
in the US.

 

Last year he said that America had to import "close to 100%" of its lithium
from countries like Australia, Chile and China.

 

But some environmentalists say mining more lithium is the wrong approach.

 

Split opinions

"Mining operations are in fact very damaging to the environment. And we've
got to be very careful how we permit these things," says John Hadder,
director of Great Basin Resource Watch.

 

"We can reduce demand for minerals by just changing habits. One thing I'm
really concerned about is that we're losing an opportunity to do other
things to address climate change," he says.

 

The mine has created fractures within Mr Hadder's group.

 

Mr Miller resigned from its board last year after coming out in support of
the mine.

 

"I just think that climate change is so important, and lithium is so
important for electrifying the transportation industry," he says.

 

Mr Miller is a former academic at the University of Nevada. Some of his
research has been partly funded by Lithium Americas, but he denies that has
anything to do with his stance on the mine.

 

"[Some] environmentalists will say we should drive less, we should not use
anything that requires us to pull these metals up. Nobody's going to do
that," he says.

 

Tim Crowley, vice-president of government affairs at Lithium Americas, says
he considers himself an environmentalist.

 

He has been a mining advocate for the last two decades in Nevada - and has
been in many a scrap with environmentalists who oppose mining projects.

 

And the division is not exclusive to environmentalists.

 

'It should be a historical site'

Sentinel Rock is nicknamed Nipple Rock by some locals because of its unusual
formation. Every year a group called The People of the Red Mountain come
here to remember their ancestors - who they say were murdered at Thacker
Pass.

 

The Shoshone-Bannock and Paiute tribes believe this area is on the site of
an atrocity in 1865.

 

"The US Cavalry chased the people into this area right here where the mine
is being dug up at the moment. And they were massacred by the US Calvary,"
says Ka'ila Farrell-Smith, a member of The People of the Red Mountain.

 

"It's a tragedy, it should be a historical site
 unfortunately, the
corporations didn't hear that," she says.

 

The objection is that although the land is owned by the Bureau of Land
Management, the tribes say it has been stolen from local people and that
local members should get to decide how it is used.

 

Lithium Americas argues there is not evidence the massacre happened on the
site - and has won in court.

 

Mr Crowley also points out that some local native Americans are already
working on the mine and support the project - something Ka'ila accepts too.

 

This is an incredibly remote area - well-paid jobs are a rare thing.

 

But the history of colonialism for people like Ka'ila is still raw.

 

She believes the Thacker Pass mine is a textbook example of "green
colonialism" - the notion that once again native people are being ignored,
this time in the name of preventing climate change.

 

"These aren't the people flying all around the world in jets. It's unfair,"
she says.

 

'There has to be more'

The mine itself is still in its infancy. Lithium will not be produced here
until at least 2026 - and will go to General Motors.

 

The worry that the People of the Red Mountain have now is that this mine is
just the beginning. There is a lot of lithium here, and there are several
companies hoping to mine it.

 

Mr Crowley is pretty open about Lithium Americas' ambitions for the area.

 

"There has to be more [lithium] in the United States if it's going to be
self-sufficient. There has to be more, there has to be more development," he
says.

 

If he is right, the whole area, of stunning natural beauty, could be
tarnished by lithium mines - and all in the name of saving the planet.-bbc

 

 

 

 

High US jobs growth fuels rate rise expectations

The number of US jobs surged more than expected last month, fuelling
expectations that interest rates could rise further.

 

Employers added 336,000 jobs in September, almost double the 170,000
estimated, according to figures released by the Labor Department.

 

Data for August was also revised higher to show 227,000 jobs were created
instead of 187,000 previously reported.

 

The unemployment rate in the US remained at 3.8%.

 

The leisure and hospitality sector added 96,000 jobs alone in September,
above the average monthly gain, with employment in food services and bars
rising by by 61,000 over the month and returning to pre-pandemic levels.

 

But while job numbers surged, monthly wage growth remained moderate in
September, with average hourly earnings rising 4.2% in the 12 months to
September.

 

Last month, the US central bank kept its key interest rate unchanged as it
considers whether it has done enough to stabilise inflation, which is the
rate prices rise at.

 

The Federal Reserve's rate target at 5.25%-5.5% is the highest level in more
than two decades. The bank has raised borrowing costs from near zero in
March 2022 in a bid bring rising prices under control.

 

But the jobs market's resilience in the face of the Federal Reserve's
attempts to cool down the economy has led to suggestions interest rates
could remain tight for some time.

 

Janet Mui, head of market analysis at wealth manager RBC Brewin Dolphin,
said the 336,000 job gains "blows past even the most bullish estimate".

 

Following Friday's figures, traders added to bets that the central bank will
raise interest rates before the end of the year and keep them high for
longer next year.

 

US jobs chart

The US, like many countries, suffered huge job losses as the Covid pandemic
swept across the world in 2020, but employment rebounded strongly in 2021
and 2022 as restrictions were eased.

 

Job growth has since levelled off, but September's 336,000 figure is well
above the pre-pandemic average.

 

Brian Coulton, chief economist at ratings agency Fitch, said the strong jobs
growth would "keep upward pressure on wages, making it more likely that the
Fed has further to go in raising interest rates".

 

Seema Shah, chief global strategist at Principal Asset Management agreed the
Federal Reserve would "need to respond with more rate hikes", saying the
figures reinforced the "higher for longer narrative".

 

Consumer prices in the US also rose more than expected in September due to
higher costs for rent and fuel.

 

The inflation rate, which measures the pace of price rises, was 3.7% over
the 12 months to August, up from 3.2% in July.

 

While inflation has dropped significantly from its peak last year, it is
still higher than the Federal Reserve's 2% target.-bbc

 

 

 

 

Tweet saying FTX was 'fine' was false, court hears

A co-founder of FTX told a court that a tweet sent by Sam Bankman-Fried
assuring that the cryptocurrency exchange was "fine" was false.

 

Former executive Gary Wang said when Mr Bankman-Fried made the post he was
aware that the firm faced an $8bn hole. It declared bankruptcy days later.

 

Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on
trial for fraud.

 

Mr Wang has already pleaded guilty.

 

The 30-year-old, a friend from high school maths camp who became chief
technology officer at FTX, took the stand for a second day on Friday,
answering questions about spreadsheets, tweets and private chats as
prosecutors probed the gap between the firm's public face and its inner
workings.

 

Mr Wang said Mr Bankman-Fried had repeatedly made public claims about the
firm's financial health that were not based on reality.

 

"FTX was not fine," Mr Wang said. "Assets were not fine, because FTX did not
have enough assets for customer withdrawals."

 

FTX collapsed into bankruptcy in November last year as a flood of customers
tried to withdraw their money.

 

Soon after, Mr Bankman-Fried was charged with fraud, money laundering,
accused of stealing money from FTX customers, and lying to investors and
lenders. He has denied the charges against him.

 

What you need to know about Sam Bankman-Fried trial

The Department of Justice has alleged he funnelled the money of customers
into property purchases, political donations, marketing and other spending
through Alameda, a crypto trading firm Mr Bankman-Fried had founded a few
years earlier.

 

"We said publicly that we would not use customer funds like this," Mr Wang
told the court.

 

Before FTX's bankruptcy, Mr Wang said he and Mr Bankman-Fried discussed the
steadily growing hole on the firm's balance sheet, created by massive
withdrawals of customer funds by Alameda.

 

As early as the end of 2019, Alameda was already withdrawing more than what
FTX took in from fees charged to customer trading on its platform, he said.

 

The court heard by June 2022, Mr Bankman-Fried had asked for a review of
Alameda's debts to FTX, leaving top executives debating via spreadsheet how
to calculate the true number. Mr Wang that month put that figure at roughly
$11bn.

 

Alameda's account had features - including a $65bn line of credit at FTX and
the ability to run a negative balance - that made it unique, he said,
despite public claims to the contrary.

 

In one instance in 2019, a few months after starting FTX, Mr Bankman-Fried
wrote on Twitter that his trading firm, Alameda, had an account on the
exchange that was "just like everyone else's".

 

That same day, Mr Wang said, Mr Bankman-Fried asked him to tweak the
platform's code, allowing Alameda to withdraw unlimited funds.

 

In another instance, the FTX boss posted about the amount held in a fund
supposed to protect in the event of losses using what prosecutors called a
"fake number".

 

Christian Everdell Mr Bankman-Fried's lawyer, had less than an hour to
cross-examine Mr Wang before the court session ended for the day.

 

He suggested that the unique features of Alameda's account were due to its
role on the platform as a "market-maker" responsible for helping trading
flow smoothly.

 

The trial is expected to last six weeks. Mr Wang will continue to testify
next week, followed by Caroline Ellison, Mr Bankman-Fried's former
girlfriend and the former chief executive of Alameda, who has also pleaded
guilty.-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  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 301380 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 118578 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 41189 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65558 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231009/a4092a06/attachment-0001.obj>