Major International Business Headlines Brief::: 31 October 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  31 October 2023 

 


 

 


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

 


 

 


 

ü  Nigeria, Germany Sign MOU On Solid Minerals Exploitation

ü  Kenya Sets Up First Smartphone Assembling Plant in East Africa

ü  East Africa: Kenya's Cargo Battle Plan - Keeping Tanzania at Bay

ü  Kenya: President Ruto Says Kenyans to Transact Using Fingerprints, Iris By Dec

ü  Ethiopia: IGAD Reviewing Implementation of Kampala Declaration

ü  Kenya: Production of Local Smart Devices to Drive Digital Growth

ü  Nigeria Loses Billions of Naira to 70 Lagos-Abidjan Checkpoints

ü  Kenya's First Sh7,499 Smartphone Assembly Plant Opened in Machakos

ü  Uganda's Economy Grew Faster Amidst High Interest Rates

ü  South Africa: Matric Exams Begin - As Load Shedding Resumes!

ü  Fukushima: US buys Japan seafood to counter China ban

ü  General Motors deal clears way for end to US car strike

ü  Facebook and Instagram launch ad-free subscription tier in EU

ü  Elon Musk expected to attend AI summit in UK

ü  Higher interest rates help to more than double HSBC profits

 


 

 


 <https://www.cloverleaf.co.zw/> Nigeria, Germany Sign MOU On Solid Minerals Exploitation

The federal government said the partnership with GeoScan GmbH will help Nigeria fully explore its solid mineral resources, which can make a substantial contribution to the country's Gross Domestic Product.

 

Nigeria's Solid Minerals Development Fund (SMDF) and GeoScan GmbH of Berlin, Germany, have signed a Memorandum of Understanding (MOU) on solid minerals development.

 

This significant agreement was formalised on Sunday during the visit of German Chancellor, Olaf Scholz to Abuja, Nigeria.

 

Dele Alake, the minister of Solid Minerals Development, announced the MoU at a press briefing after a meeting of the Federal Executive Council (FEC).

 

 

Highlighting the significance of the MoU, Mr Alake said it is expected to advance solid minerals exploration, exploitation, and judicious use of the revenue accruing to the federal government.

 

The minister said GeoScan GmBH possesses cutting-edge technology capable of exploring mineral deposits up to 10,000 meters below the surface, which is a remarkable advancement in the field of mineral exploration.

 

He emphasised the cost-effectiveness of this proprietary technology, which, he said, is 80 per cent cheaper than current exploration processes and three times faster in locating underground deposits.

 

"The gathering of geodata is very expensive. Now this particular technology, which is top-notch, is 80 per cent cheaper than current processes in the world, three times faster to locate deposits down underground, " he said.

 

 

Given Nigeria's vast and unexplored mineral landscape, estimated to be worth around $700 billion, the .inister noted that the MoU with GeoScan GmbH presents a significant opportunity for the country.

 

"We constitute about 0.02 per cent of the global mining budget. With the $700 billion estimation of our solid minerals deposit, we still have over 90 per cent of the entire landscape of Nigeria unexplored.

 

"And because it's an expensive business, that underscores the significance of a landmark that we recorded yesterday with the GeoScan GmbH supported also by the German chancellor and our President.

 

"I'm happy to tell you that there's no kobo commitment on the part of Nigeria. The company will establish its technology and plant here and move around the country to enable us to further explore all the other mineral deposits that we have," he said.

 

The minister pointed out that many critical minerals, essential for the production of electric vehicles, batteries, and other advanced technological equipment, are abundant in Nigeria.

 

He added that these resources play a crucial role in the global shift toward clean and green energy, aligning with the global trend of addressing climate change.

 

He said the partnership with GeoScan GmbH will help Nigeria fully explore its solid mineral resources, which can make a substantial contribution to the country's Gross Domestic Product (GDP), aligning with President Tinubu's Renewed Hope Agenda of positioning solid minerals as a significant economic driver alongside petroleum.

 

The MOU was signed by Oliver Haeggberg, CEO of GeoScan GmbH, Germany, and Fatima Shinkafi, the Executive Secretary and Chief Executive Officer (CEO) of SMDF, representing Nigeria.

 

Mr Haeggberg was part of the business delegation that accompanied the German Chancellor during his official visit to Nigeria, who met with President Tinubu and the Nigerian delegation at the Business to Government (BTG) roundtable meeting.

 

- Premium Times.

 

 

 

Kenya Sets Up First Smartphone Assembling Plant in East Africa

Nairobi — Kenyans can now access affordable locally assembled smartphones following the launch of the state-of-the-art East Africa Device Assembly Kenya Limited, located in Athi River.

 

The device assembly factory was set-up as a joint venture of local Mobile Network Operators and International device manufacturers.

 

The devices which will be available countrywide at Faiba shops and dealer stores as well as Safaricom shops and Masoko online platform will retail from Sh7,499.

 

The anchor mobile phone devices at launch will be the 4G-enabled Neon 5" "Smarta" and 6 1/2" "Ultra", with further devices diversifying the product range to be launched in the next few months, including a locally assembled tablet.

 

The factory which is in fulfillment of government's promise to establish local smartphone assembly capacity in Kenya has been built with a capacity to produce up to 3million mobile phone units annually.

 

"This assembly plant will support government's agenda to enhance digital inclusion in the country. We have been able to achieve affordability through a collaborative approach that comprises industry partnership and favourable government policies," said Joshua Chepkwony, Chairman of EADAK.

 

Additionally, it is projected that the factory will generate between 300 and 500 direct jobs, foster local talent development and contribute to the country's economic growth.

 

"The launch of EADAK reaffirms our belief in the power of connectivity to transform lives and drive economic progress. This partnership underscores our relentless pursuit to expand 4G access and empower Kenyans through affordable, high-quality smartphones, create employment opportunities and grow our economy," said Peter Ndegwa, CEO, Safaricom

 

- Capital FM.

 

 

 

East Africa: Kenya's Cargo Battle Plan - Keeping Tanzania at Bay

Kenya initiated a series of measures to revitalize its cargo business at its ports, challenged by competition from the port of Dar es Salaam, reports The East African.

 

Cargo owned by governments in the region will be handled by the Government Clearing Agency (GCA) while other policies include reduction of port fees and  an extension of the storage duration for transit cargo.

 

Kenya is reportedly scrapping destination charges, offering importers from the landlocked East African Community partners who use the Port of Mombasa potential savings of up to U.S.$1,200 per 40-feet container.

 

According to Salim Mvurya, the Cabinet Secretary for Mining, Blue Economy and Maritime, the move is meant to revitalise the institutions, which have capacity to contribute to Kenya's economy, and to ensure safety and confidentiality in clearing of sensitive government cargo.

 

 

As a result, private clearing agencies will lose profitable contracts, and more than 20 million metric tonnes of cargo will be affected.

 

52% of cargo cleared at different border points belongs to government ministries, departments and agencies, indicates data from the Kenya National Bureau of Statistics.

 

Protests

 

Over the years, the GCA was apparently proven ineffective, leading the government to rely on private agents for clearing goods. However, the Kenya International Freight and Warehousing Association (Kifwa) is currently protesting against the decision to centralize government-owned cargo, which began three months ago. They argue that the government should support business, not directly engage in it.

 

Roy Mwanthi, Chairman of Kifwa, said that in 2022, 51 percent of the 33.9 million metric tonnes of cargo handled at the Port of Mombasa belonged to the government. The consolidation of government cargo will have significant implications, especially for delivering project materials to remote areas, as the government lacks the capacity to efficiently handle such large cargo volumes. This decision comes as a setback for Kifwa, which was preparing to introduce new cargo handling rates and minimum service fees, set to take effect from December 1, as a measure to mitigate against inflation.

 

 

In response to intense competition from the Dar es Salaam port, Kenya re-evaluated its trade agreements with South Sudan and the Democratic Republic of Congo. As a result, the storage period for transit cargo bound for Juba and Kinshasa nearly doubled.

 

New recommendations

 

A report released on October 24, 2023, reveals that cargo destined for Juba and Kinshasa will now benefit from an extended free storage period of 45 days, up from the previous 20-25 days. For cargo headed to Uganda, the storage period was increased by two days, providing a 30-day free storage window. Goods intended for Burundi and Rwanda will now have a 35-day free storage period, up from the previous 30 days.

 

The move comes in response to the negative impact of charges imposed by shipping lines at the Mombasa port without approval from the Kenya Maritime Authority. These charges were driving away users and causing a decline in cargo throughput.

 

In 2022, despite a marginal increase in container traffic, the cargo handled at the port decreased by 1,9 percent. Major shipping lines introduced various fees such as equipment management fees, ex-border charges, late documentation per bill of lading fee, container cleaning fees, and import documentation fees, which were revoked by the Tanzania Shipping Agencies Corporation operating the Dar port.

 

Geoffrey Kainuko, the Principal Secretary of the State Department of Shipping and Maritime Affairs, believes that these adjustments will help in retaining and attracting clients.

 

 

 

 

 

Kenya: President Ruto Says Kenyans to Transact Using Fingerprints, Iris By Dec

Nairobi — President William Ruto has assured that Kenyans will be able to transact using fingerprints and iris by December when the Digital ID platform dubbed the Maisha Number becomes operational.

 

The President promised that the Digital ID will be in use come December with the testing program set to be concluded end of November to pave way for the seamless launch.

 

In September, the government postponed the planned launch due to unavoidable circumstances and promised to announce a new date.

 

"I have been assured by all the stakeholders led by the Ministries concerned that by December we will be able to launch the digital IDs where every Kenyan don't have to carry any paper plastic or otherwise as an ID," he said.

 

President Ruto stated that the planned roll out was on course saying the commencement of the use of the digitized model of national identification is progressive.

 

 

"Kenyans will be able to be identified digitally using their iris or fingerprints and we can transact without the necessity of people struggling to identify who they are," the President noted.

 

Set to gradually replace the current national IDs, the digitized identification will virtually incorporate all personal detailed identifier data including Birth Certificate, death certificate, Maisha card as well as driver's license among others.

 

Newborn children will be assigned a distinct number that will serve as their birth certificate number and later as an identification number for all government services, including, registration of death.

 

Maisha Number will feature a Machine-Readable Zone, conforming to International Civil Aviation Organization (ICAO) standards.

 

This master database will manage data for all registered citizens, refugees, and foreigners using fingerprint biometric technology, enhancing data accuracy and reliability.

 

It will consolidate existing independent databases into a single integrated register, serving as the central reference for all data related to Kenyan citizens and foreign residents in the country.

 

On the other hand, the Digital ID will be a digital representation of an individual, organization, or device, typically encompassing personal attributes, credentials, and authentication.

 

This enhancement distinguishes the Maisha Card from its predecessor, the Huduma Card, which marked an attempt to digitize identity under former President Uhuru Kenyatta's regime.

 

The comprehensive rollout of the project has been estimated to take a transition period of 2 to 3 years.

 

- Capital FM.

 

 

 

Ethiopia: IGAD Reviewing Implementation of Kampala Declaration

Addis Ababa — IGAD has started today reviewing the implementation of the Kampala Declaration on livelihoods and self-reliance for refugees as well as returnees and host communities in the region, where Ethiopia's achievements have been noteworthy.

 

The declaration represents a significant commitment by IGAD member states in promoting the economic self-reliance of refugees, returnees, and host communities, and working towards more sustainable and durable solutions to displacement in the region.

 

IGAD adopted Kampala Declaration in Kampala, Uganda in March 2019, it was indicated.

 

 

In a speech read out on behalf of Workeneh Gebeyehu in a two-day annual conference in Addis Ababa, the Executive Secretary of IGAD, Fathia Alwan, Director of Health and Social Development said that the Kampala declaration demonstrates the commitment of member states.

 

The declaration came following the Nairobi declaration in 2017 when seven IGAD heads of state had met in Kenya to discuss the challenges of refugees and address the issue of displacement in the IGAD region, it was stated.

 

The Kampala declaration is in line with the global compact of refugees and it is a significant milestone in our collective efforts to improve the livelihoods of refugees and host communities in the region, he indicated.

 

"This declaration also underscores our commitment to promoting the sustainable livelihood and enhancing the wellbeing of citizens in the IGAD region. One of the core benefits of this declaration is inclusively ensuring that all members of the society have access to the opportunities for a better livelihood," Workneh said.

 

 

He added the Kampala declaration gives a strong emphasis on building self -reliance through the collaborative approach of government, refugees, development partners, the private sector and also the betterment of the displacement affected community.

 

Recall the IGAD region is home to millions of forcibly displaced persons due to complex interlinked factors.

 

According to the UN Refugee Agency, the region hosted over 5 million registered refugees and asylum seekers as of August 2023, and over 13.5 million internally displaced persons (IDPs) in the region as of July 2023.

 

Following the review of the implementation of the declaration, the executive secretary noted that a monetary and evaluation framework will be developed by the IGAD member states.

 

 

Deputy Representative of UNHCR Ethiopia Office, Margaret Atieno appreciated IGAD for the leadership it has taken to ensure the Kampala Declaration implementation process moves forward by organizing regional consultations.

 

According to her, over 17 million of people are forcibly displaced as refugees and IDPs, including those who have returned to their places of origin.

 

Climate change, including El Nino and conflicts are contributing factors for displacement, she noted.

 

"They (refugees) continue to face various challenges with respect to accessing decent livelihood opportunities, access to land, freedom of movement, access to financial assistance, right to employment pathways," the representative said.

 

Despite tremendous challenges, Atieno noted that efforts have already demonstrated some tangible dividends, especially on advocacy and project investments.

 

"In Ethiopia for example, those include the increased participation of the private sector in engaging forcibly displaced population and various high impact projects by multilateral development banks such as the World Banks......."

 

She finally reaffirmed the commitment of UNHCR in supporting IGAD and member states in the efforts of assisting refugees.

 

Director General of Ethiopian Refugees and Returnees Service, Teyiba Hassan on her part said since the adoption of the Kampala Declaration, the government of Ethiopia has created favorable conditions for refugees to engage in gainful employment opportunities.

 

Ethiopia is working hard to create economic opportunities for refugees and host communities.

 

This has enabled the creation of 129,450 direct and indirect economic opportunities for the refugees and host communities, of which 38,621 are refugees, she said.

 

Regarding access to economic opportunities, over 16,000 resident and work permits have been issued for refugees, to engage them in joint projects, self and wage employment pathways, she indicated.

 

She added that the country has also made efforts to link the refugees with the national TVET system.

 

Nigussu Tilahun, State Minister of Labour and Skill on his part said that historically, Ethiopia welcomed refugees with open arms, where, today, it is hosting a significant number of refugees.

 

"This makes us the third largest refugee hosting country in Africa. We are also working diligently to repatriate Ethiopian citizens from abroad and address internal displacements due to various crises," he indicated.

 

The state minister added that Ethiopia has yielded tangible results that have helped the refugees to access job opportunities and embark on entrepreneurship.

 

- ENA.

 

 

 

 

Kenya: Production of Local Smart Devices to Drive Digital Growth

Nairobi — The Government will prioritise the production of affordable smart devices to boost digital access.

 

President William Ruto said the move will expose Kenyans to broader and better opportunities.

 

He noted that going digital on a large-scale will spur the country's growth.

 

"It will also catalyse the actualisation of our development agenda," he explained.

 

The President made the remarks on Monday during the opening of the East Africa Device Assembly Kenya in Mavoko, Machakos County.

 

He also launched locally assembled devices.

 

Cabinet Secretaries Eliud Owalo (Information, Communication & Digital Economy) and Susan Nakhumicha (Health), Safaricom CEO Peter Ndegwa, Jamii Telecom CEO Joshua Chepkwony, Safaricom Chief Business Development & Strategy Officer Michael Mutiga, were present.

 

The President noted that the provision of affordable digital smart devices will no longer just be about mobile telephony and fintech penetration.

 

"It is also about universal access to goods and services as the driver of our transformation." - Presidential Communication Service

 

- Capital FM.

 

 

 

 

Nigeria Loses Billions of Naira to 70 Lagos-Abidjan Checkpoints

Nigeria is losing hundreds of billions of Naira annually as a result of about 70 illegal checkpoints mounted on the Lagos-Abidjan and Atan-idiroko corridors by the Nigeria Police Force (NPF), LEADERSHIP can exclusively reveal.

 

It was gathered that after the Nigeria Customs Service (NCS) had removed illegal checkpoints on the Lagos-Abidjan and Atan-idiroko corridors, the Police mounted over 70 checkpoints on the trade corridors.

 

The multiple checkpoints are, however, threatening inter-border trade between Nigeria-Benin Republic and other West African countries on the two important trade routes.

 

 

Sources revealed that Nigeria could be losing hundreds of billions of Naira annually to the development at a critical time the country is exploring extra revenue windows.

 

LEADERSHIP reports that the Abidjan-Lagos transport corridor is the major east-west transport corridor in West Africa, connecting the capital cities of five countries (Côte d'Ivoire, Ghana, Togo, Benin and Nigeria). Travel along the corridor is recognised as critical to the socio-economic development of the region.

 

However, to maximise the potentials inherent in the trade corridors, the Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, reduced Customs checkpoints on the two corridors.

 

The Customs CG said: "We want to enhance our national security, but we are going to do it with a fewer number of checkpoints; we are working with other security agencies to see how we can rationalise the checkpoints. This is to make life easier for business, so, I want to charge you all to make life and the work of our security agencies easier."

 

 

While the Customs Service management approved only eight checkpoints on the two trade corridors, the Nigeria Police operates 70 while other security agencies such as Nigerian Army operates six; Nigerian Immigration Service (NIS) operates eight; Nigerian Agricultural Quarantine Service (NAQS) and the Federal Road Safety Corps (FRSC) with two.

 

However, maritime stakeholders have said that proliferation of Police checkpoints on the corridors will be a clog to the smooth running of the trade agreement among Nigeria, Benin Republic and other countries' capitals.

 

According to trade experts, the Inspector General of Police, Kayode Egbetokun, should order his officers to dismantle illegal checkpoints as it serves as an albatross to trade.

 

They further argued that the checkpoints are capable of discouraging the country from effectively taking advantage of the Africa Continental Free Trade Area (AfCFTA) Agreement.

 

 

Also, the Nigerian Shippers' Council (NSC) noted that trade barriers not only disrupt seamless flow of goods but also pose a direct threat to regional integration endeavours.

 

The immediate-past executive secretary, Hon. Emmanuel Jime, said various studies conducted along the borders of West African nations had persistently highlighted the bottlenecks faced by traders, particularly in border crossings.

 

Jime stated that the trade barriers comprise transit checkpoints with unwarranted delays, extortion, illegal fees, and demands for bribes, saying 'it has far-reaching consequences.'

 

Confirming the obstacles on Lagos -Abidjan corridor, the principal trade advisor, Economic Community of West African States (ECOWAS) Commission, Justin Bayili, said delays occasioned by checkpoints were militating against trade facilitation.

 

Bayili stated that there is a need to create good conditions for trade facilitation in the region.

 

"Two months ago we took a trip from Mile 2 to Badagry and experienced 57 checkpoints. This delayed goods and thus made the goods costly for the business community," he said.

 

Speaking with LEADERSHIP, the immediate past acting president, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said there should be a political will to end illegal checkpoints on border corridors in the country.

 

Farinto stated that since Customs, the designated agency for border protection, has reduced its checkpoints to the approved numbers, the Police should also follow suit in order to make trade across borders seamless.

 

"What we need to note is that we need the political will to let President Bola Tinubu know that in-view of the fact that Customs has removed illegal checkpoints on trade corridors, the Police are yet to comply and do same. All we need is people who can take the bull by the horn to make trade seamless.

 

"Customs has reduced their checkpoints to approved numbers, then why is it inevitable for Police to also follow suit? And if they refuse, there should be sanctions for that," he stated.

 

On his part, the president-general of the National Association of Freight Forwarders and Consolidators (NAFFAC), Adeyinka Bakare, warned that Nigeria businesses may suffer major setbacks if government fails to resolve the bottlenecks on the movement of goods from all the entry points and international frontiers.

 

He said Nigerian goods and services have potential to compete favourably in the region.

 

Bakare expressed concern over the multiple checkpoints manned by security agencies and touts, noting that the illegalities would further affect foreign and local investment.

 

He lamented that the association has engaged government at all levels in furtherance to tackling the illegalities along the Lagos Abidjan corridor.

 

According to him, there are only five checkpoints between Ghana and Benin, adding that Nigeria only has over 30 checkpoints manned by operatives of the government on the Lagos- Abidjan corridor, which he described as extortion of the highest order.

 

He further disclosed that trade barriers must be eliminated for the country to participate fully in AFCFTA, just as he called on the Tinubu administration to reduce the number of checkpoints along the routes to encourage international trade.

 

The NAFFAC boss explained that Nigeria stands a chance to benefit immensely in the exportation of her commodities to other countries of the continent if well harnessed.

 

"The issue of multiple checkpoints along the entry points is killing the business and it will affect the AFCFTA. The multiple checkpoints are not limited to the Lagos Abidjan corridor alone. It is common in the northern region of the country and the government is not doing anything about it," he noted.

 

Effort to speak with the Force Public Relations Officer, Muyiwa Adejobi, proved abortive, as text and Whatsapp messages sent to him were not replied at the time of filing this report yesterday.

 

- Leadership.

 

 

 

 

Kenya's First Sh7,499 Smartphone Assembly Plant Opened in Machakos

Nairobi — Kenya's first smartphone assembly plant has been opened at Athi River in Machakos to produce affordable gadgets for Kenyans.

 

The phones will be manufactured at East Africa Device Assembly Kenya Limited (EADAK), a joint venture of local mobile network operators and international device manufacturers.

 

The devices, which will be available countrywide at Faiba shops and dealer stores as well as Safaricom shops and the Masoko online platform, will retail from Sh7,499.

 

Mobile phones will be 4G-enabled Neon 5 'Smarta' and 6 1/2 'Ultra'.

 

However, plans are underway to make more products in the next few months, including locally assembled tablets.

 

 

The factory, which is in fulfillment of the government's promise to establish local smartphone assembly capacity in Kenya, has been built with a capacity to produce up to 3 million mobile phone units annually.

 

"This assembly plant will support government's agenda to enhance digital inclusion in the country," said Joshua Chepkwony, Chairman of EADAK.

 

"We have been able to achieve affordability through a collaborative approach that comprises industry partnership and favourable government policies," he added.

 

They project the new facility to generate 300 and 500 direct jobs, foster local talent, and boost the local economy.

 

"The launch of EADAK reaffirms our belief in the power of connectivity to transform lives and drive economic progress," said Peter Ndegwa, CEO, Safaricom.

 

"This partnership underscores our relentless pursuit to expand 4G access and empower Kenyans through affordable, high-quality smartphones, create employment opportunities and grow our economy," Ndegwa added.

 

- Capital FM.

 

 

 

 

Uganda's Economy Grew Faster Amidst High Interest Rates

Kampala, Uganda — Uganda's economy grew faster in the last financial year than previously anticipated a good sign for the Bank of Uganda, which is attempting to control the surge in commodity prices.

 

Gross domestic product, the broadest measure of economic output, rose 5.3% for the Financial Year 2022/23 higher than the revised growth rate of 4.6% for the Financial Year 2021/22, according to the latest Bank of Uganda annual report released this month. That is a 0.7 percentage point higher than the central bank initially estimated.

 

"Growth was largely driven by services and industry sectors," the central bank said, noting that the services sector grew at 6.2%, 2.1% percentage points higher than the previous fiscal year growth owing to an increase in trade, real estate, education and repair activities. The industrial sector grew at 3.9% driven by manufacturing and construction activities with 80% combined contribution to the industry growth.

 

 

However, there are signs that the growth momentum is beginning to wane reflecting low domestic demand as high interest rates weigh on the activities.

 

"Indeed, high-frequency indicators of macro-economic activity point to a softening in the growth momentum in the three months to June 2023, with Purchasing Managers Index declining to 56.4 in June from 57.4 although this reading remains above the 50-mark," the central bank said.

 

"Going forward, prospects for domestic economic growth are diminishing impacted by adverse global economic developments, tighter domestic monetary and financial conditions, and falling consumer and business confidence.

 

 

The local currency has recently come under pressure especially from the US dollar, primarily due to global factors like heightened uncertainty kindled by the Russia-Ukraine war and now Hamas and Israel, supply chain disruptions that spiked commodity prices, and portfolio investors exiting the domestic debt market due to tight global financial market conditions as central banks in advanced economies hiked their interest rates to reign in surging inflation.

 

Similarly, to combat inflation, the BoU raised the central bank rate from 7.5% to 10% in three steps starting July to October 2022 and maintained it at 10% until June 2023. This triggered commercial banks to increase their lending rates to the customers to more than 20%.

 

Banks remain resilient

 

Despite inflation and geopolitical tensions, Bank of Uganda Deputy Governor, Dr. Michael Ating-Ego says the banking sector remained resilient. This is partly explained by the fact that under the new legal instrument, the minimum required paid-up capital for financial institutions effective December 2022, was increased to Shs 120bn and Shs 20bn from Shs 25bn and Shs1bn for commercial banks and credit institutions, respectively and to Shs 150bn and Shs 25bn in June 2024.

 

 

For that, the bank's total assets grew by 8.4% to Shs48.3 trillion for the year ending June 30, 2023, due to holdings by the government securities which rose 12.2% as well as an increase in minimum capital requirements despite a slowdown in credit growth.

 

"Concerns about slowing economic growth (also) induced greater caution in banks towards extending loans to the private sector," BoU said, adding that as a result, commercial banks' gross loans increased by a merely 4.7% to Shs19.4 trillion, which was lower than the 12.2% growth posted in the previous year.

 

Private sector credit surges

 

On the other hand, private sector credit rose to an annual average growth rate of 10% last financial year from 9.5% in the previous year, with both shilling and dollar-denominated loans growing by 12% and 4.7% from 10.9% and 6.2% respectively during the same period under review. However, despite the growth in private sector credit, it remained below the 12% pre-COVID historic levels.

 

Moreover, the growth in private sector credit was uneven across all sectors with agriculture, transport and communication, electricity and water, building, mortgage, construction and real estate slowing down. Manufacturing, trade, business services as well as personal and household loan sectors recorded sharp growth.

 

Relatedly, the ratio of Non-Performing Loans to gross loans edged up from 5.32% in June 2022 to 5.76% in June this year but had come off of a high of 5.89% in April this year mainly on the back of improving liquidity conditions and a pick up in the economic activity.

 

Interestingly, customer complaints against supervised financial institutions reached 433, 258 which were lower than 917, 938 raised during the last financial year. The biggest number of complaints were in the mobile money and mobile banking category, accounting for 40% of the complaints raised, followed up by loan processing at 12.8%, agent banking at 9.8% and debit cards at 6.9%.

 

Overall, mobile money recorded a faster growth in complaints partly as a result of an increase in the uptake of mobile money services promoted by financial inclusion campaigns.

 

As the Bank of Uganda issued more currency to meet the economy's demand, currency issuance costs also increased by 16% to Shs 199.3 billion during the same period under review. Moving forward, BoU projects the economy to grow in the range of 5-6% in the Financial Year 2023/24 riding on continued economic recovery and the developments in the oil and gas ahead of production.

 

- Independent (Kampala).

 

 

 

 

South Africa: Matric Exams Begin - As Load Shedding Resumes!

Thousands of matric learners are starting their final exams on Monday as load shedding resumes across the country.

 

At least 717,377 matriculants in 6,898 centres will sit for their exams as the 2023 National Senior Certificate examinations begin.

 

Eskom resumed Stage 2 load shedding on Sunday night and said it would escalate the nationwide black-outs to Stage 3 on Monday.

 

For the past three years, the government has been promising back-up power for state schools during load shedding but this has not happened.

 

A nationwide rollout of rooftop solar panels has also not begun. However, even that solution would not help some schools in major CBDs that rely on electricity as they have no access to direct sunlight.

 

Minister of Basic Education Angie Motshekga told a media briefing that everything was ready for an incident-free start to the exams.

 

Motshekga said there were 34,626 fewer candidates this year than in the class of 2022, adding that this was because more learners were reaching their final without failing along the way.

 

"There has been an increase in the number of part-time learners from 168,631 in 2022 to 181,143 in 2023. A total of 207 question papers, 72,500 invigilators and 52,500 markers will drive the examination process.

 

"Furthermore, our roster boasts 72,500 invigilators who are ready to ensure the smooth conduct of the examinations, compared to 72,000 last year," Motshekga said.

 

Motshekga said the State Security Agency had audited the process to ensure there were no paper leaks.

 

The exams start with Computer Applications Technology and Information Technology but these are subjects that are written by learners in affluent schools with some form of backup power.

 

- Scrolla.

 

 

 

Fukushima: US buys Japan seafood to counter China ban

The US military in Japan has started to bulk buy the country's seafood in response to a Chinese import ban after the release of treated water from the Fukushima nuclear plant.

 

The US ambassador to Japan Rahm Emanuel said Washington may also look into other ways to help counter China's ban.

 

He described it as part of Beijing's "economic wars".

 

China, which was the biggest buyer of Japanese seafood, said it barred imports due to safety fears.

 

Last year Japan exported more than 100,000 tons of scallops to China. The first purchase under the US scheme is a fraction of that - just under a metric ton of the shellfish.

 

Mr Emanuel told the Reuters news agency it is the start of long-term contract that will extend over time to all types of seafood.

 

The purchases will be used to feed military personnel and be sold in shops and restaurants on military bases in Japan.

 

"It's going to be a long-term contract between the US armed forces and the fisheries and co-ops here," Mr Emanuel said.

 

"The best way we have proven in all the instances to kind of wear out China's economic coercion is come to the aid and assistance of the targeted country or industry," he added.

 

The US military had not previously bought Japanese seafood in Japan and Washington may also look at its fish imports from Japan and China, Mr Emanuel said.

 

In response to Mr Emanuel's comments, China's foreign ministry spokesperson Wang Wenbin told a news conference on Monday: "the responsibility of diplomats is to promote friendship between countries rather than smearing other countries and stirring up trouble".

 

In recent months, Mr Emanuel has spoken out about China on various issues including its economic policies and treatment of foreign businesses.

 

His comments come as several top US officials, including Secretary of State Antony Blinken, have visited Beijing in an effort to ease tensions between the world's two biggest economies.

 

More than a million tonnes of treated waste water accumulated at the Fukushima nuclear plant after it was severely damaged in a 2011 tsunami.

 

The Chinese import ban came despite Japan saying the water was safe, and many scientists agreeing. The United Nations' nuclear watchdog also approved the plan.

 

Tokyo has also stressed that similar releases of waste water are common from other nuclear power plants in China and France.

 

Japan makes regular reports to show that the seawater near Fukushima is showing no detectable levels of radioactivity.

 

On Sunday, trade ministers from the Group of Seven (G7), an organisation of the world's largest so-called "advanced" economies, called for the immediate repeal of bans on Japanese food.-bbc

 

 

 

General Motors deal clears way for end to US car strike

General Motors has struck a deal with the United Auto Workers (UAW) union to end a six-week strike in the US.

 

The tentative agreement follows similar deals at Ford and Chrysler-maker Stellantis, the other two carmakers affected by walkouts.

 

Nearly 50,000 workers and dozens of sites were involved in the action, the first in union's history to target all three firms at once.

 

US President Joe Biden welcomed the deal hailing the deal as "great."

 

The president added: "These record agreements reward auto workers who gave up much to keep the industry working and going during the financial crisis more than a decade ago."

 

Mr Biden had visited a picket line at the start of the strike to express support for the workers' cause, becoming what is believed to be the first sitting president in modern times to do so.

 

General Motors (GM), Ford and Stellantis have all now agreed to pay raises of roughly 25% over the four-year term of the new contracts, as well as other changes, including making it easier for so-called "temporary" staff to transition to full-time and receive full benefits.

 

For the lowest-paid workers, the changes could mean pay jumps of more than 150% by the end of the deals, according to the union.

 

Car workers will return to their jobs while the new contract is finalised, the union said in a statement.

 

"We wholeheartedly believe our strike squeezed every last dime out of General Motors," UAW President Shawn Fain said in a video address. "They underestimated us. They underestimated you."

 

The chief executive of GM Mary Barra welcomed the deal.

 

"GM is pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the US," she said in a statement.

 

Credit rating agency Moody's has estimated that such a deal would add more than $1bn in costs for each of the car companies.

 

Some company leaders have expressed fears that the added costs will give an advantage to rival carmakers with staff who are not union members.

 

But Art Wheaton, of Cornell University's School of Industrial and Labor Relations, said he expected the agreements to increase expectations for higher wages across the US car industry.

 

"The UAW has had a grand slam home run and has won for everybody," he said, adding that the UAW president had deployed "masterful" tactics in the row.

 

"Shawn Fain has dramatically exceeded my expectations for what he could accomplish," he added. "It's a massive success and a good sign for the future of workers in general."

 

Mr Fain, who was elected this spring, took a hard line in negotiations, casting the car workers' battle as part of a bigger fight against the "billionaire class".

 

He provided regular public updates on the talks, a break with previous practices, at one point theatrically ripping up a company offer in a social media broadcast.

 

The union, which opened talks seeking pay rises of roughly 40%, has kept the companies on the defensive, selectively adding new plants to the strike since its start in September.

 

It declared a walkout at another GM facility on Saturday.

 

GM said last week that the strike had already cost it $800m to date.

 

The labour fight at the car companies was closely watched, coming at a time when low unemployment and high inflation have emboldened worker demands across the country.

 

It follows high-profile stand-offs at UPS, Amazon, Starbucks and others.-bbc

 

 

 

 

Facebook and Instagram launch ad-free subscription tier in EU

Facebook and Instagram are launching subscriptions in most of Europe that will remove adverts from the platforms.

 

People using the Meta-owned platforms will be able to pay €9.99 (£8.72) per month for an ad-free experience. It will not be available in the UK.

 

In January, Meta was fined €390m for breaking EU data rules around ads.

 

The regulator said at the time the firm could not "force consent" by saying consumers must accept how their data is used or leave the platforms.

 

The subscription tier will be exclusive to people in the EU, European Economic Area and Switzerland from November.

 

But it will only be accessible for people aged over 18 at first, with the firm looking into how it can serve ads to young people in the EU without breaking the rules.

 

Meta said its new subscription was about addressing EU concerns, rather than making money.

 

"We believe in an ad-supported internet, which gives people access to personalised products and services regardless of their economic status," the firm wrote in a blog.

 

"The option for people to purchase a subscription for no ads balances the requirements of European regulators while giving users choice and allowing Meta to continue serving all people in the EU, EEA and Switzerland.

 

"We respect the spirit and purpose of these evolving European regulations, and are committed to complying with them."

 

Users will be given the choice either to continue using the platforms for free - and have their data collected - or to pay and completely opt out of targeted ads by removing them.

 

But they could end up paying more than the initial monthly fee.

 

The service will cost an additional €3 per month if paid for on iOS or Android, to account for the additional fees taken by these platforms.

 

But this extra charge can be avoided by paying for the platform via the Facebook and Instagram websites, rather than the mobile apps.

 

Meanwhile, from March 2024, users must pay more money for each additional account they have on the platforms - such as having both a business and personal account.

 

The announcement comes after Elon Musk's X, formerly Twitter, introduced an ad-free Premium+ service priced at £16 per month.

 

There is also a much cheaper subscription tier on X that will still feature ads but give people the option to edit posts, as well as the standard premium tier that grants people a blue checkmark amongst other benefits.

 

TikTok has also been testing a monthly subscription to remove ads - priced at $4.99 - but there is no indication yet that this will be rolled out globally.-bbc

 

 

 

 

Elon Musk expected to attend AI summit in UK

Elon Musk is expected to attend a global summit on artificial intelligence in the UK this week.

 

UK Prime Minister Rishi Sunak said he would do a live interview with the tech billionaire after Thursday's event.

 

The summit, at Bletchley Park, hopes to bring together AI experts and global leaders to discuss the potential risks of artificial intelligence.

 

US Vice-President Kamala Harris and European Commission President Ursula von der Leyen are due to attend.

 

The BBC also understands Open AI's Sam Altman and Meta's Nick Clegg will join the gathering - as well as a host of other tech leaders.

 

One of the godfathers of AI, Yoshua Bengio, has confirmed to the BBC he will be there.

 

In a post on Mr Musk's X, formerly known as Twitter, Prime Minster Sunak said: "In conversation with Elon Musk. After the AI Safety Summit. Thursday night on X."

 

Recent advances in AI have been hailed as revolutionary but also dangerous - even a possible threat to humanity itself. It could lead to mass job losses and supercharge disinformation.

 

On Monday President Joe Biden signed an executive order that would require Artificial Intelligence (AI) developers to share safety results with the US government.

 

However, Mr Musk may argue for the US and other countries to go further.

 

US announces 'strongest action yet' on AI safety

In March he signed an open letter calling for a pause to "Giant AI Experiments".

 

In an interview with the BBC in April Mr Musk said he had been worrying about AI safety for over a decade.

 

"I think there should be a regulatory body established for overseeing AI to make sure that it does not present a danger to the public," he said.

 

Mr Musk has also pitted himself against AI companies due to the data they use to train chatbots - the software that learns how humans interacts by scraping masses of data from various sources to fuel its knowledge and interaction styles.-bbc

 

 

 

Higher interest rates help to more than double HSBC profits

Rising interest rates have sent profits at HSBC soaring as the banking giant set out plans to hand billions more dollars to its shareholders.

 

HSBC said profits more than doubled to $7.7bn (£6.35bn) in the three months to September from the same period a year ago, although that was below forecasts.

 

It said it had benefited from higher interest rates which allow it to charge more to lend to people and businesses.

 

The Bank of England will announce its latest decision on rates on Thursday.

 

It is widely expected to hold it for a second month at 5.25%. Prior to that, the central bank had raised interest rates 14 times in a row from a historic low of 0.1%.

 

Other central banks have also been lifting rates - the US Federal Reserve will publish its latest decision on Wednesday - and HSBC said "the higher interest rate environment" had spurred growth globally.

 

The company expects its net interest income, which is the difference between what it earns from lending money and the interest it pays to savers and depositors, to rise above $35bn this year. In the latest results for the three months to 30 September, it rose to $9.2bn from $8bn in the same period last year.

 

Banks have been under pressure to pass on higher interest rates to savers, including from Chancellor Jeremy Hunt who said in June that it was "taking too long".

 

Alicia Garcia-Herrero, chief economist for the Asia Pacific region at investment bank Natixis, said that before interest rates began to increase, banks made relatively little from lending money but still had to make payments to people and businesses that deposited money.

 

"Let's not forget that banks were in dire shape before because they had no room. So they have gone from no room to lots of room," she told the BBC's Today programme.

 

HSBC said that it would return a further $3bn to its shareholders, taking the total it will hand back to investors to $7bn this year. It will also pay out dividends.

 

Although the bank's profit jumped over the past three months, the figure fell short of the $8.1bn expected by analysts.

 

HSBC's operating expenses rose due, in part, to performance-related pay as well as higher technology costs and the impact of inflation.

 

Last week, the government announced that a cap on bankers' bonuses will be removed. It will come into force on Tuesday, 31 October nearly a decade after the measure was introduced following the 2008 financial crash.

 

For the last financial year, HSBC trimmed its bonus pool by 4% to $3.4bn.

 

The bank, which has its headquarters in London, generates most of its income in Asia.

 

It said it had taken a $500m hit related to China's crisis-hit property market led by Evergrande.

 

"We continue to monitor risks related to our exposures in mainland China's commercial real estate sector closely, and there remains a degree of uncertainty in the forward economic outlook, particularly in the UK," it said.

 

Last week, HSBC's Asia-focused rival Standard Chartered reported an unexpected plunge in its third-quarter profit due to a near-$1bn combined hit from its exposure to China's real estate and banking sectors.-bbc

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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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