Major International Business Headlines Brief::: 05 April 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  05 April 2024 

 


 


 

	
 


 

 


 

ü  Senegal's New Leader Announces Audit of Oil, Gas and Mining Sectors

ü  Uganda: Govt Imposes Hefty Fine for Vandalism On Entebbe Expressway

ü  South Africa: Joburgers Remain the Nation's Big Spenders While Loyalty
Programmes Rule the Roost

ü  South Africa: Harmony, Unions Strike Gold With Historic Five-Year Wage
Pact

ü  Uganda: Petroleum Authority Says Negative Propaganda Hurts Uganda's Oil
Sector

ü  Nigeria: Updated - EFCC, FIRS Fail to Arraign Binance Officials in Tax
Evasion, Money Laundering Cases

ü  Namibia: !gawaxab Warns of 'Dutch Disease' Amid Oil, Green Hydrogen
Discoveries

ü  Namibia: Govt Spends N$39,8m On Funerals, Celebrations in One Year

ü  Namibia Urged to Grow in Sectors That Create Jobs

ü  Kenya: MPs Want Answers From Linturi in Raging Fake Fertilizer Scandal,
Summons Issued

ü  Nigeria: How New Gas Price Template for Strategic Sectors Will Benefit
Nigerians

ü  McDonald's to buy back all its Israeli restaurants

ü  Boeing pays Alaska Air $160m after mid-air blowout

ü  Joe Lewis: How one of Britain's richest people broke insider trading laws

 


 

 


 <https://www.cloverleaf.co.zw/> Senegal's New Leader Announces Audit of
Oil, Gas and Mining Sectors

In his first speech to the nation since his election as president of
Senegal, Bassirou Diomaye Faye said one of his first policy moves would be
to audit the country's oil, gas and mining sectors to root out corruption.

 

"The exploitation of our natural resources, which according to the
constitution belong to the people, will receive particular attention from my
government," said Faye in the president's traditional speech given the day
before the country's independence day.

 

"I will proceed with the disclosure of the effective ownership of extractive
companies [and] with an audit of the mining, oil, and gas sector."

 

Senegal's first offshore oil development is due to start production in the
middle in this year.

 

The Sangomar oil and gas project, operated by the Australian Woodside Energy
is expected to produce about 100,000 barrels per day.

 

Faye, a former tax inspector who defeated the ruling coalition's candidate
by a landslide in last month's presidential election, also sought to
reassure investors, who he said are "welcome in Senegal".

 

"Investor rights will always be protected, as well as the interests of the
state and the people," he said.

 

The 44-year-old pan-Africanist has become the youngest leader ever in charge
of Senegal, and the youngest currently in power in Africa.

 

He has never held elected office before.

 

(with Reuters)

 

-RFI website.

 

 

 

 

Uganda: Govt Imposes Hefty Fine for Vandalism On Entebbe Expressway

In a bid to combat road vandalism and ensure the preservation of taxpayer
funds, the government has implemented a significant penalty for offenders
damaging the Entebbe Expressway.

 

Mr Allan Ssempebwa, spokesperson for the Uganda National Roads Authority
(UNRA), revealed that offenders will be fined Shs15 million.

 

This decisive action reflects the government's growing concern over the
costly cycles of road installation and restoration.

 

Mr Ssempebwa said those responsible for damaging the highway will be held
accountable for the full extent of the damage, including the repair or
replacement of the infrastructure and all accompanying components.

 

 

"The government can't keep on installing and restoring damaged
infrastructure, it's actually wastage of tax payer's money," Ssempebwa said.

 

While addressing concerns about the condition of the Entebbe Expressway,
Ssempebwa reassured the public that the road is world-class in design and
finishing.

 

He clarified that the hefty fine is not a reflection of any shortcomings in
the highway's construction but rather a proactive measure to deter vandalism
and ensure its longevity.

 

"We are happy as UNRA, an agency in charge of roads in Uganda now that
reflecting on the past rates at which people died on the express highway has
reduced to zero for the last one month," he added.

 

Ssempebwa further highlighted the need for increased sensitisation on road
safety and proper driving behavior, particularly addressing the issue of
over-speeding on the expressway.

 

He urged law enforcement officers not only to focus on issuing tickets but
also to engage motorists and educate them on safe driving practices.

 

Entebbe Expressway is a four-lane toll highway designed to provide an
efficient mass transit route between two vital cities of Kampala and Entebbe
in the Greater Kampala Metropolitan Area and decongest the capital city.

 

The 49.6km highway was constructed with funding from both the Exim Bank of
China (73.58 percent) and the government (26.4 percent) by China
Communications Construction Company Ltd.

 

At its completion in November 2012, the highway had cost $479 million (about
Shs8.4 billion), making it one of the most expensive road networks in the
world.

 

The Entebbe Expressway is a toll road with UNRA regulating the charges on
motorists who ply the highway.

 

However, being a speed highway, the Expressway is often the bane of many
motorists who "fly" into accidents - including a number of occasions when
they have rammed into the toll charges area.

 

- Nile Post.

 

 

 

 

South Africa: Joburgers Remain the Nation's Big Spenders While Loyalty
Programmes Rule the Roost

Joburgers, Capetonians, and Durbanites are splurging at varying rates, with
Cape Town leading the charge in increased spending on groceries, dining out,
and travel.

 

Joburg residents spend 47% more than the average South African, while
Capetonians spend 38% more and Durbanites 13% more, according to Discovery's
Spend Trend 24 survey released on 4 March, 2024.

 

However, spending increased most in Cape Town, moving up 6% year-on-year on
the back of increased spending on groceries, eating out and travel. Joburg
did take top prize as "foodies" of the nation for spending in the eating out
category.

 

Globally, persistent high inflation has made consumers more cautious with
their spending, driving them to choose bank cards over cash not just for
access to credit but to exploit value from loyalty programmes.

 

"We know that the loyalty market has always been dynamic, but post the
pandemic it's unleashed a new wave of innovation. So, despite there being
geographic and industry differences, we see that consumers are looking for
rewards programmes where they can enable it quite seamlessly via digital
channels," says Lineshree Moodley, country manager for Visa.

 

A 2023 Euromonitor study shows that 86% of South Africans expressed concern
last year about the increasing cost of goods, with 37% intentionally buying
in bulk or deliberately shopping at stores with loyalty programmes.

 

Amanda Cromhout, chief executive of Truth, a...

 

-Daily Maverick.

 

 

 

 

South Africa: Harmony, Unions Strike Gold With Historic Five-Year Wage Pact

Harmony Gold signed a historic inflation-linked five-year wage agreement
with five unions on Thursday, the day after the precious metal's price hit a
record high. The deal should maintain harmony in Harmony's shafts and is a
welcome development after a wave of wildcat, underground sit-ins late last
year signalled rising labour tensions.

 

The deal is the first five-year wage agreement with all of its unions in
Harmony's 73-year history and was reached three months before the expiry of
the current one - without a single tool being downed.

 

The previous three-year deal was also clinched without a hint of strike
action.

 

This should maintain harmony in Harmony's shafts, which have been rocked in
the past by union unrest, and provides certainty on labour costs over the
next five years as the company embarks on an expansion project at its
Mponeng operation, the world's deepest mine.

 

For the members of the five unions involved - Solidarity, Uasa, NUM, Amcu
and Numsa - the agreement provides for five years of annual pay increases
linked to inflation or higher, providing them with a long-term sense of
security regarding their incomes.

 

CEO Peter Steenkamp said in a statement that the deal "... is testimony to
the strength of our labour relations... It is fair and balanced, considering
the impact that increases in the cost of living are likely to have on
employees over the next five years."

 

One thing that would not have been lost on unions was the price of gold,
which raced to a...

 

-Daily Maverick.

 

 

 

 

Uganda: Petroleum Authority Says Negative Propaganda Hurts Uganda's Oil
Sector

The Petroleum Authority of Uganda has decried continued false propaganda on
oil and gas sector that they said is making it hard to attract investors.

 

While leading a delegation of officials from the Ministry of Foreign Affairs
including Uganda's ambassadors to China, France, UAE and Tanzania to a tour
of Kingfisher oil fields, Kabalega international airport and industrial park
in Kikuube, officials from PAU said negative propaganda by some individuals
is hurting the country's oil sector.

 

The legal and corporate affairs director, Ali Ssekatawa told the delegation
that works are in progress, noting that land compensation now stands at 96%,
but reaffirmed government stand that the first oils will be in 2025.

 

"So far so good, seven wells have been drilled, and now the drilling rig is
on another well pad. We don't see any reason for not having the first oil
drops, " Ssekatawa said

 

He noted that they have a challenge of external forces who have since
intensified their efforts of spreading false propaganda about the sector,
with the latest claim being that the sector is affecting 230 rivers and
death of wild animals.

 

"Every time these voices continue moving, it means there are a number of
investors that can't invest in Uganda, especially in our sector of oil and
gas. It is also affecting the tourism sector."

 

Ssekatawa also highlighted the reasons for leading the ambassadors for a
tour, noting that they can help counter the false propaganda.

 

"The only way we can address this is to counter them in conferences because
they have gone a little serious to the extent of taking Ugandans abroad to
go and talk ill about the gas.Now when we join some of these conferences, we
ask them to quantity their statements but they shy away, meaning it is time
to have intellectual debates to fight the propaganda ," Ssekatawa said

 

He equally wondered why they accuse Uganda, yet in North America 50
exploration licenses have been issued and in many other countries.

 

The ministry of foreign affairs permanent secretary Bagiire Vincent Waiswa
who headed the delegation said their focus is to see and then be able to
advocate and work on the image of the country from an informed point of
view.

 

"A lot has been happening with false propaganda being spread but we are here
and all is moving well. Our diplomats have now seen and can counter the
false propaganda,"Bagiire noted.

 

- Nile Post.

 

 

 

Nigeria: Updated - EFCC, FIRS Fail to Arraign Binance Officials in Tax
Evasion, Money Laundering Cases

Binance and its two officials - Tigran Gambaryan and Nadeem Anjarwalla -
were scheduled to be arraigned before the Federal High Court in Abuja on
five counts of money laundering and tax evasion on Thursday.

 

The scheduled arraignment of top Binance officials at the Federal High Court
in Abuja failed on Thursday after the Federal Inland Revenue Service (FIRS)
said it could not serve charges on the defendants.

 

The Economic and Financial Crimes Commission (EFCC) similarly failed to
arraign them in a separate case before another judge of the court.

 

A lawyer to the Nigerian tax agency, FIRS, Moses Ideho, informed the judge,
Emeka Nwite, that his client made efforts to serve the charges on Tigran
Gambaryan, one of the two Binance executives charged in the case, but was
denied access.

 

Mr Gambaryan is being held by the EFCC in Abuja, Nigeria's capital city.

 

Binance and its two officials - Tigran Gambaryan and Nadeem Anjarwalla -
were to be arraigned on five counts of money laundering and tax evasion
before Mr Nwite on Thursday.

 

 

"My Lord, the prosecution has not been able to serve a copy of the charge on
the second defendant (Tigran Gambaryan).

 

"As a result, we mobilised the court bailiff to serve the second defendant
but he was denied access, too," Mr Ideho told the court.

 

Thereafter, the prosecution lawyer sought the court's permission to serve Mr
Gambaryan with a copy of the charge.

 

He, also, prayed the court to allow Mr Gambaryan to confer with his lawyers
to determine the mode of plea he would take.

 

But, Mr Gambaryan's lawyer, Chukwuka Ikwazom, a Senior Advocate of Nigeria
(SAN), opposed his client's taking of plea in the matter.

 

Mr Iwazom said he needed time to discuss the case with Mr Gambaryan.

 

"For another agency of government to say it has no access to the defendant
shows the 'seriousness' of how the prosecution handles the case," Mr
Gambaryan's lawyer told the court.

 

 

After a heated argument over the failure of the government to effect service
on the second defendant, Mr Ideho sought an adjournment to enable Mr
Gambaryan to consult with his team of lawyers regarding the charge.

 

The charge was eventually served on Mr Gambaryan, prompting the judge to
adjourn further hearing until 19 April for arraignment of the defendants.

 

The other case

 

Meanwhile, a separate case against Binance and its executives before Mr
Nwite was stalled on Thursday after Mr Gambaryan's lawyer, Mark Mordi, a
SAN, contested the mode of service of the charge concerning money laundering
on his client.

 

The suit is being prosecuted by Nigeria's anti-corruption agency, the EFCC.

 

 

At the hearing on Thursday, EFCC lawyer, Ekele Iheanacho, urged the court to
direct Mr Gambaryan to take his plea.

 

But, Mr Mordi challenged the joint nature of the charge which has Binance,
Messrs Gambaryan and Anjarwalla as co-defendants.

 

The defence lawyer contended that the EFCC was statutorily required to serve
the charge on each of the defendants.

 

"This is a joint charge and it is incumbent on the prosecution to serve the
charge on the 1st defendant (Binance). Having not done that I do not think
this matter can go on," Mr Mordi argued.

 

Citing Section 477 of the Administration of Criminal Justice Act (ACJA),
2015, Mr Mordi further contended that "each of the defendants should be
served separately."

 

However, the EFCC lawyer, Mr Iheanacho disagreed with the defence lawyer's
submissions.

 

The prosecution lawyer told the court that Mr Gambaryan declined to receive
service of the charge on behalf of Binance.

 

Mr Iheanacho argued that Mr Gambaryan serves as a Binance representative in
Nigeria, who should receive the charge on behalf of the crypto exchange
company.

 

He based his argument on Section 487 of the ACJA.

 

"Binance has no physical footprint in Nigeria. But Mr Gambaryan qualifies as
an agent of Binance in Nigeria," the EFCC lawyer argued.

 

He noted that the service on Binance which Mr Gambaryan refused to accept
was a proper service on the crypto exchange firm.

 

He urged the court to dismiss Mr Mordi's submission, adding that the latter
lacks the capacity to question the mode of service of the court document on
Binance.

 

Responding, Mr Mordi told the court that his client declined to accept
service of the charge on behalf of Binance because he is not a
representative of the company in Nigeria.

 

"My Lord, let us not treat this matter with trifle. Due process must be
followed; service has not been effected," Mr Mordi said.

 

After taking the arguments both lawyers and the judge adjourned the case
until 8 April for ruling.

 

Charges

 

In the FIRS case marked: FHC/ABJ/CR/115/2024 dated and filed 22 March by the
FIRS' team of lawyers, led by Moses Ideho, the prosecution accused the
defendants of committing the alleged offences on or about 1 February.

 

Count one alleged that while involved in carrying and offering services to
subscribers on their platform, known as Binance, they failed to register
with the FIRS, for the purpose of paying all relevant taxes administered by
the service.

 

Count two alleged that while they were offering taxable services to
subscribers on their trading platform known as Binance, they failed to issue
invoices to those subscribers for the purposes of determining and payment of
their Value Added Tax (VAT).

 

Count three accused them of offering services to subscribers on their
trading platform in the buying and selling of cryptocurrencies and the
remittance and transfer of those assets, and that having offered those
services, it was obliged to deduct VAT and did fail to deduct necessary VAT
arising from their operations.

 

In count four, the prosecution accused them of offering services to
subscribers on their trading platform, aided and abetted those subscribers
to unlawfully refuse to pay taxes, or neglect to pay those taxes.

 

The alleged offences, according to the prosecution, are punishable under
Sections 8 and 29 of the VAT Act of 1993 (as Amended), Section 40 of the
FIRS Establishment Act, 2007 (as amended) and under provisions of Section 94
of the Companies Income Tax Act (as amended) respectively.

 

- Premium Times.

 

 

 

 

Namibia: !gawaxab Warns of 'Dutch Disease' Amid Oil, Green Hydrogen
Discoveries

Bank of Namibia governor Johannes !Gawaxab has cautioned against the
phenomenon whereby the rapid development of the oil and gas and green
hydrogen industries in Namibia may lead to a decline in investments in other
vital sectors such as agriculture, fishing and tourism.

 

While acknowledging the positive contributions of oil and gas exploration
activities, as well as green hydrogen investments to Namibia's economic
growth, !Gawaxab said this could have potential repercussions for monetary
policy.

 

Speaking at a public lecture at Lüderitz yesterday, he said the increased
export of natural resources could lead to currency appreciation,
subsequently encouraging imports and discouraging exports from other
sectors, thereby impacting their competitiveness.

 

 

He also highlighted the potential impact on Namibia's current account
deficit, citing a recent example where the deficit worsened to 15% in 2023
from 12,5% in 2022, largely attributed to intensified exploration and
appraisal activities.

 

While a recovery to 12,6% is expected in 2024, !Gawaxab said there are
projections of a further deterioration to 14% in 2025 if unchecked.

 

"These issues, if left unchecked, could potentially culminate into resource
curse risks for Namibia or what is referred to as Dutch disease," !Gawaxab
said.

 

Dutch disease is typically caused by uneven growth across sectors when
resources such as oil are discovered, and the mismanagement of these
resources, often associated with corruption.

 

Originating in the 1960s when The Netherlands discovered gas reserves in the
North Sea, the phenomenon saw non-oil sectors becoming less competitive and
unemployment increasing from 1,1% to 5,1%.

 

!Gawaxab listed Venezuela, Ghana, Nigeria and Angola as countries who
suffered Dutch disease, following oil discoveries in their countries, and
credited Norway and the United Arab Emirates as countries who turned their
fortunes around.

 

!Gawaxab said in order to positively benefit from these resources, there
needs to be a long term goal of where Namibia sees itself in the years to
come.

 

"We need to ensure strong and competent institutions that are transparent
and free of corruption," !Gawaxab said.

 

He called for the implementation of other measures to prevent Namibia from
falling victim to the curse, such as establishing stabilisation funds,
planning for future generations through initiatives like the Welwitschia
Sovereign Fund, diversifying into other economic activities due to the
volatility and depletion of oil resources, and promoting local content
participation in the industry's value chain, alongside appropriate monetary
and fiscal policy frameworks supportive of macroeconomic stability.

 

Furthermore, !Gawaxab said the oil and gas discoveries and the anticipated
green hydrogen industries are expected to change the socio-economic
landscape of the town of Lüderitz and drive the need for the town council to
make large sections of land available for industrial and residential
purposes.

 

He said as a significant initial move, the council has formulated a strategy
to enlarge the townland area of Lüderitz, yet he acknowledged several
obstacles that must be tackled, including mining licences impeding urban
expansion, the difficult topography, funding constraints and limited water
availability.

 

"Lüderitz has a unique opportunity to be a leading economic hub in Namibia
and an example of prudent natural resources management that benefits the
people," !Gawaxab said.

 

- Namibian.

 

 

 

Namibia: Govt Spends N$39,8m On Funerals, Celebrations in One Year

The office of the Prime Minister spent N$39,8 million on 38 funerals,
Independence Day and Heroes Day celebrations last year.

 

These funds were from the office's N$1,1 billion budget for the previous
financial year.

 

Prime minister Saara Kuugongelwa Amadhila on Tuesday motivated her office's
budget allocation for the year in the National Assembly.

 

"The prime minister accounted for the funds spent on state events held
during the year under review: state and official funerals: N$33,8 million;
Independence Day: N$2,9 million; Heroes Day: N$3,1 million," she said.

 

 

On average, each of the funerals cost the government N$889 473.

 

In the 2022/23 financial year, the government spent N$2,1 million on 23
state funerals.

 

"N$2 million was spent on 23 burials; N$1 million was spent on the 32nd
Independence Day anniversary at Swakopmund in the Erongo region; Heroes Day
commemoration: N$1,8 million was spent on Heroes Day commemoration at
Mariental, in the Hardap region," former deputy prime minister Netumbo
Nandi-Ndaitwah said last year.

 

Moreover, the prime minister said the government has not spent half of the
N$892 million by 28 February this year.

 

"Against a budget of N$892 million, as at 28 February 2024, the expenditure
under the drought relief programme stands at N$361 million, of which N$307
million was expended towards food assistance, while the logistics costs
[took] up N$33,7 million," she said.

 

Livestock subsidies cost N$7,2 million, while water provision accounted for
N$13,8 million.

 

 

The prime minister expressed concern that the rainfall pattern has started
to show drought and low grazing patterns in most parts of the country.

 

"As a result of this, the office will conclude assessments on the immediate
interventions needed to save lives and support livelihood, due to imminent
drought in 2024," Kuugongelwa-Amadhila said.

 

Over N$700 million was spent on the current drought-relief programme,
conducting the annual vulnerability assessment and analysis, the
operationalisation of the national emergency operation centre, the
development of the national resilience building strategies, and the
continued roll-out of the commodity and beneficiary management information
system, among others.

 

The Public Service Commission would require N$35,3 million, while the
Cabinet administration support management has been allocated N$15,6 million.

 

The Cabinet decisions experience a less than 50% execution rate, the prime
minister highlighted.

 

Last year, the Cabinet took 284 decisions for implementation offices,
ministries and agencies.

 

"The bi-annual reports on the implementation of Cabinet decisions were
compiled and submitted to the Cabinet for approval. As per the findings of
the reports, 43% of the Cabinet decisions were fully implemented.

 

"The implementation of the remaining 57% of the decisions requires a longer
time, and their implementation is ongoing," Kuugongelwa-Amadhila said.

 

- Namibian.

 

 

 

 

Namibia Urged to Grow in Sectors That Create Jobs

Namibia should make a deliberate effort to invest in improving agriculture
production and value chains, as well as target other sectors like
construction to stimulate employment creation and improve economic growth,
analysts say.

 

They are also calling on the country to find avenues to create more
opportunities for local industries, primarily those in the construction
industry.

 

This was said by economist Salomo Hei and senior statistician for national
accounts at the Namibia Statistics Agency (NSA), Titus Kamatuka, on Desert
Radio recently while responding to trade statistics showing Namibia has
achieved a gross domestic product (GDP) of 4,2% by the end of the 2023
financial year.

 

 

Hei said while this shows the economy is on a solid trajectory, more efforts
need to be put into creating value chains in agriculture to reap the maximum
benefits for the economy.

 

"In general these figures show the economy is doing pretty well and
continues to grow. The key sectors that continue to do well include the
mining sector, specifically the diamond industry, which continues to
dominate.

 

"Reasonable growth has also been experienced in the tertiary industry.
However, there are also sectors that did not do so well, and these include
construction and agriculture," he said.

 

The statistics also show there has been constant growth in the period under
review, and this has been sustained for some time.

 

"This means the economy is doing pretty well, however, sectors like mining
are more capital intensive and do not necessarily create jobs," he said.

 

 

Commenting on the same issue, Kamatuka said Namibia also needs to look at
possible avenues to expand the local manufacturing industry.

 

"There are quite a few low-hanging fruits in the manufacturing industry the
country can tap into. One of them is to reduce the importation of certain
goods that can be produced locally.

 

"For example, it will be important to see that some things, including the
manufacturing of toothpicks and other smaller essentials, is done locally.

 

"Sectors such as tourism also have the potential to create the needed jobs
in numbers and is definitely one the government can prioritise in terms of
creating jobs.

 

"While it is important to see that the economy is growing, the most
frequently asked question is why is the economy growing while there are no
jobs? Many people still ask us this," he said.

 

- Namibian.

 

 

 

 

Kenya: MPs Want Answers From Linturi in Raging Fake Fertilizer Scandal,
Summons Issued

NAIROBI, Kenya - Members of the National Assembly are intensifying efforts
to uncover the truth behind the fake fertilizer scandal by summoning
high-ranking officials from the Ministry of Agriculture.

 

The National Assembly Departmental Committee on Agriculture has extended
invitations to Agriculture Cabinet Secretary Mithika Linturi and Principal
Secretary Paul Rono to testify before the committee next Monday. They are
expected to provide insights into how counterfeit fertilizer infiltrated
National Cereals and Produce Board (NCPB) stores.

 

Additionally, the committee will hear from NCPB Managing Director Joseph
Kimote and Kenya Plant Health Inspectorate Service (KEPHIS) Managing
Director Theophilus Mutui regarding the fraudulent fertilizer within the
fertilizer subsidy program.

 

 

Committee Vice Chair Brighton Yegon emphasized the need for compensating
farmers who suffered losses due to the use of counterfeit fertilizer and
holding accountable the fraudulent suppliers.

 

"The key question this committee seeks to answer is how the fake fertilizer
managed to reach NCPB stores, particularly if officials were aware of its
counterfeit nature," stated Yegon.

 

An earlier meeting to investigate the matter was postponed due to the
unavailability of involved parties, except for the Managing Director of the
Kenya Bureau of Standards.

 

Yegon further announced that the committee plans to meet with SBL Innovate
Manufacturers Limited, the producers of GPC Plus Organic Fertilizer, on
April 9, 2024.

 

MPs will also conduct field visits to various NCPB depots nationwide to
ascertain the availability, fairness in distribution, pricing, and quality
of the fertilizer sold.

 

The findings from the agricultural committee's probe and field visits will
inform a report proposing stern recommendations for approval by the House.

 

Yegon emphasized the gravity of the issue, stressing its potential impact on
the government's efforts to ensure food security in the country.

 

Matayos MP Geoffrey Odanga raised concerns about Agriculture CS Linturi's
denial of the existence of fake fertilizer in the country despite KEBS
flagging counterfeit fertilizer in multiple regions.

 

"We are aware of individuals aiming to sabotage the country's food security
by using such fertilizer to profit from potential food shortages," stated
Odanga.

 

He criticized the government's handling of the fertilizer shortage issue and
called for urgent measures to support farmers facing challenges. - Capital
FM.

 

 

 

 

Nigeria: How New Gas Price Template for Strategic Sectors Will Benefit
Nigerians

On Easter Monday, the Nigerian Midstream and Downstream Petroleum Regulatory
Authority announced the establishment of the year 2024 Domestic Base Price
and applicable wholesale price on natural gas for the strategic sectors.

 

The announcement saw an increase in the price of natural gas for the
strategic domestic sectors including power generation companies by 11 per
cent. The move is in line with the provisions of the Petroleum Industry Act,
2021, assented to by former President Muhammadu Buhari on the 16th of August
2021 and gazetted on the 27th of August 2021.

 

The PIA provides a clear regulatory framework for the determination of a
Market-based pricing regime for the domestic gas market in Nigeria.

 

 

Specifically, Section 167, the Third and Fourth Schedule of the PIA 2021,
mandated the NMDPRA to determine the Domestic Base Price (DBP) and the
marketable wholesale price of natural gas supplied to the strategic sectors.

 

The Chief Executive Officer of the NMDPRA, Farouk Ahmed, had while making
the announcement said natural gas for power generation companies would now
be $2.42 per metric million British thermal unit, higher than the previous
rate of $2.18 mmbtu. All the other two strategic sectors being Gas-Based
Industries (GBI) and Gas to Commercial (GTC) take a cue from the DBP in
their price build up.

 

The adjustment in price has been generating a lot of interest from the
public. While some commentators had questioned the justification for the
increase despite complaints of shortages and undersupply of gas by the power
generation companies (GenCos), others have said that with the new price
increase, the subsidy to be paid by the Federal Government in 2024, which
was pegged at N1.67 trillion in January this year, would increase markedly.

 

The purpose of this article is to provide a context as to why the NMDPRA, in
compliance with the provisions of the PIA, took the decision to adjust the
DBP and how Nigerians will benefit from the decision of the midstream and
downstream petroleum regulator.

 

For a start, let's deal with the question on why the wholesale price of gas
to power plants was increased marginally. Recall that in July 2021, the gas
price to power plants was reduced from $2.5/mbtu to $2.18/mbtu. The purpose
of the change in price then was to allow quick desired industrial revolution
embarked upon by the administration of former President Muhammadu Buhari.

 

Since then, the gas price to power has remained unchanged despite all the
inflationary pressures and increasing operating costs over the last three
years, while power plants continue to complain of insufficient gas supply.

 

 

It should be noted that the DBP is to guide gas pricing and supply
especially to the strategic sectors of the economy mainly power, Gas Based
Industries and Gas to Commercial. The Authority in line with the provisions
of the law and objectives of the government for the gas sector, strives to
ensure that it puts in place a pricing regime that assume gas supply to
those critical sectors at most affordable rates.

 

This informed the establishment of the 2024 DBP which was arrived at after
extensive consultation with all critical stakeholders. It should be noted
also that the Authority, after taking good cognisance of the macro and micro
economic environment and gas market conditions in 2023, maintained $2.18
status quo for 2023.

 

It is expected that the slight price increase to $2.42/mbtu, which is still
lower than the pre-2021 price, together with the presidential executive
orders, focused security management, completion of critical infrastructure,
settlement of legacy arrears, will allow upstream gas producers to bring
more gas to the domestic market and power plants.

 

The Petroleum Industry Act (PIA), passed in August 2021, mandates the
Authority to determine the best prices for overall gas market development.
Specifically, Section 167, the Third and Fourth schedule of the PIA 2021,
mandated the Authority to determine and announce on a yearly basis, the
wholesale domestic base price of natural gas and the wholesale price of
marketable gas to the power, commercial and gas-based industry strategic
sectors. It is instructive to state that before a final decision was taken
on the matter, stakeholders across the value chain were consulted as part of
the process as mandated by the PIA. The NMDPRA, as the Regulator, also took
steps that will move the overall gas market forward.

 

It is a well-known fact that in recent times, the Nigerian economy has been
battling with issues of galloping inflation. Figures obtained from the
National Bureau of Statistics showed that inflation had risen from 21.91 per
cent as of February 2023 to 31.71 per cent in February 2024. It is for this
reason that the PIA also allows, subject to certain limitations, for upward
price adjustment on a yearly basis to account for inflation on a yearly
amount or percentage.

 

It is instructive to also state that the new price template is not
determined arbitrarily. There are factors that the NMDPRA must take into
consideration before arriving at the new price template. It is in line with
the provisions of the PIA that the domestic base price was computed
according to approved principles. One of the principles is that the price
must be of a level to bring forward sufficient natural gas supplies for the
domestic market on a voluntary basis by the upstream petroleum industry.

 

The second principle is that the price must not be higher than the average
of similar natural gas prices in major emerging countries that are
significant producers of natural gas based on countries determined by the
Authority.

 

The third principle in determining prices is that the lowest cost of gas
supply must be based on three-tier costs of supply framework, while
market-related prices must also be tied to international benchmarks. It is
in line with the above stated principles that the change to the domestic
base price of gas rose by about 11 per cent.

 

However, it must be stated that the impact of the gas price increase on the
cost of electricity tariffs is just a conservative increase of about N4/kWh
passed on to electricity customers. This is because not all electricity
generation is gas-based. Additionally, electricity tariffs are impacted more
significantly by inflation, devaluation, and Aggregate, Technical,
Commercial, and Collection (ATC&C) losses. It is also possible for this
increase to be fully absorbed by the high-income band, but the final
increase to grid tariffs will be communicated by the Nigeria Electricity
Regulatory Commission.

 

The subsidy on electricity is the result of the cost of electricity supply
against production cost of which feedstock (gas) is one of the several
components in the cost build up. Studies however indicate that the current
13 per cent adjustment in DBP will translate to very minimal increase in
electricity tariff which is a far cry from the total subsidy exposure. The
Authority was guided by the provisions of the PIA to arrive at the price of
gas supply that shall encourage voluntary supply of gas from upstream to
domestic users including the critical power segment

 

Those pondering over the reason for the gas price review, given the recent
passage of the Petroleum Industry Act, should know that increased gas
pricing would incentivise gas suppliers to bring on-stream gas from higher
cost fields. Without significant new gas development, the shortfall in gas
supply by 2030 is expected to be as high as 3 BCF per day, exacerbating gas
constraints to the power sector, and severely affecting facility utilization
for commercial, GBI sectors, and export markets. This is why the PIA 2021
empowers the Authority to set prices of natural gas and to facilitate a
shift to a willing buyer/willing seller market.

 

With this development, it is expected that new gas projects would start
coming on-stream in late 2024 and with the new gas price, existing gas
supply agreements will remain valid though new pricing is expected to take
immediate effect.

 

The decade of gas seeks to deepen the utilisation of gas through the
creation of a domestic market that supports optimal investment in gas supply
through right pricing adequate infrastructural capacity, improving demand
and adequate stakeholder management.

 

The right pricing of gas must be of such level that adequately reflects
market realities such as inflation, cost reflectivity etc. The Authority was
adequately guided by the provisions of the PIA, wide consultation of
stakeholders in the industry as a build up to the adoption.

 

With the new gas prices, it is expected that Nigeria will continue to be
competitive in comparison with other gas producing countries, and
mitigations have been designed to cushion the impact on the lower income
population, which would be rolled out accordingly.

 

In conclusion, the NMDPRA would conduct quarterly reviews to update pricing
assumptions and models as macroeconomic conditions change while the next
price announcement is expected on 1st April 2025.

 

Ifeanyi Onuba, a chartered accountant wrote in from Abuja.

 

- Premium Times.

 

 

 

 

McDonald's to buy back all its Israeli restaurants

Fast food giant McDonald's is to buy back all its Israeli restaurants
following a boycott of the brand in response to the Israel-Hamas war.

 

The company said it had reached an agreement with franchisee Alonyal for the
return of 225 outlets across the country employing 5,000 people.

 

McDonald's was criticised after Alonyal started giving away thousands of
free meals to Israeli soldiers.

 

Sales in the region have slumped since the conflict began in October.

 

On Thursday, McDonald's said a deal had been signed with Alonyal which has
been running the chain of Golden Arches in Israel for more than 30 years.

 

The US company said the restaurants, operations and employees would be
retained "on equivalent terms" and that it remained "committed to the
Israeli market". Terms of the sale were not revealed.

 

The boycott was sparked after Muslim-majority countries such as Kuwait,
Malaysia and Pakistan issued statements distancing themselves from the firm
for its perceived support of Israel.

 

 

Vocal protests were staged world-wide as the grassroots boycott spread
beyond the Middle East.

 

In January the global food chain admitted the conflict had "meaningfully
impacted" its performance with business in France, Indonesia and Malaysia
suffering, although its trade in the Middle East was worst affected.

 

Chief executive Chris Kempczinski blamed the backlash on "misinformation"
but it hit the bottom line nonetheless and the company missed its first
quarterly sales target in nearly four years.

 

The boycott was described as "disheartening and ill-founded" by McDonald's.
The company relies on thousands of independent businesses to own and operate
most of its more than 40,000 stores around the world. About 5% are located
in the Middle East.

 

"In every country where we operate, including in Muslim countries,
McDonald's is proudly represented by local owner operators," Mr Kempczinski
said at the time.

 

"So long as this war is going on... we're not expecting to see any
significant improvement [in these markets]," the McDonald's boss added.

 

The company will be hoping that by taking the Israeli business back "in
house" it can restore its reputation in the Middle East and meet its key
sales targets once more.

 

Much of the Gaza Strip has been devastated during the Israeli military
operations that began after Hamas-led gunmen attacked southern Israel on 7
October, killing about 1,200 people and seizing 253 hostages.

 

About 130 of the hostages remain in captivity, at least 34 of whom are
presumed dead.

 

More than 33,000 people have been killed in Gaza since then, the territory's
Hamas-run health ministry says.-bbc

 

 

 

 

Boeing pays Alaska Air $160m after mid-air blowout

Boeing has paid $160m (£126m) to Alaska Air to make up for losses it has so
far suffered following a dramatic mid-air blowout in January.

 

Alaska said the money would address profits lost in the first three months
of the year and it expected further payouts in the months ahead.

 

Regulators temporarily grounded nearly 200 Boeing 737 Max 9's after a door
plug fell from an Alaska Air plane shortly after take-off.

 

Thousands of flights were cancelled.

 

However, a law firm which is representing some of the passengers on the
Alaska flight has criticised the move.

 

"Apparently, Boeing thinks it more urgent and important to pay those whose
corporate profits were at stake, but not those whose lives were at stake and
nearly lost," attorney Daniel Laurence said.

 

Ryanair warns of 10% fare rise as new planes delayed

 

Airlines are now contending with delivery delays as Boeing slows production
of new planes to try to resolve manufacturing and safety concerns.

 

In February, budget carrier Ryanair warned holidaymakers faced paying higher
fares because of the delays.

 

United Airlines, which had also warned investors of a financial hit from the
grounding, recently asked pilots to volunteer for unpaid leave, due to the
delivery changes.

 

In January, Alaska warned of a roughly $150m hit. "Although we did
experience some book away following the accident and 737-9 MAX grounding,
February and March both finished above our original pre-grounding
expectations," the airline said.

 

Boeing did not comment but warned earlier this year that it expected to
spend at least $4bn (£3.16bn) more than expected in the first three months
of the year.

 

The company has been in crisis since the 5 January emergency, in which
passengers on the Alaska Airlines flight from Portland, Oregon and bound for
California narrowly escaped serious injury.

 

'I sat inches away from US plane's mid-air blowout'

Key questions behind plane's mid-air blowout

An initial report from the US National Transportation Safety Board concluded
that four bolts meant to attach the door securely to the aircraft had not
been fitted.

 

Boeing is now facing a criminal investigation into the incident itself, as
well as legal action from passengers aboard the plane.

 

Last month, chief executive Dave Calhoun said he would step down by the end
of the year, the most high profile leader to leave the company in the wake
of the crisis.-bbc

 

 

 

 

Joe Lewis: How one of Britain's richest people broke insider trading laws

Billionaire Joe Lewis, whose family trust owns Tottenham Hotspur football
club, was fined $5m (£4m) Thursday, but will avoid prison after pleading
guilty to insider trading.

 

This is the story of how his plan to enrich his lovers, friends, and
employees unravelled.

 

The pilot had just touched down in Orlando when he texted a friend with a
hot tip: "Boss is helping us out."

 

The "boss" he was referring to was British tycoon Joe Lewis, and the helping
hand was a loan of half a million dollars. And it came with juicy stock
advice: buy shares in a pharmaceutical company that was about to announce
positive results for a new cancer drug.

 

Two weeks later, the pilot texted again, noting "the Boss has inside info"
and "knows the outcome".

 

 

He was right - the company's stock price jumped more than 16%. The pilot
cashed out and repaid the "Boss".

 

But there was one big hitch. The whole scheme was illegal.

 

One of Britain's richest men, the 87-year-old Lewis pleaded guilty to
insider trading as part of an agreement with prosecutors in January.

 

At a hearing in Manhattan on Thursday, he was fined $5m (£4m) and sentenced
to three years of probation, avoiding jail time. Lewis arrived in court
wearing an eye patch.

 

Federal guidelines in the case called for a sentence of between 18 months
and two years in prison, but both defence and prosecutors urged leniency,
citing Lewis' guilty plea, co-operation with authorities and poor health.

 

 

Judge Jessica Clarke said his crimes were "serious" and "strike at the
integrity of our markets" but said his circumstances did not warrant prison.

 

In court, Lewis referred to his childhood in London during the Blitz and
said: "At an early age, I learned how precious life is. I made a terrible
mistake. I broke the law. I am ashamed, sorry, and I hold myself
accountable."

 

As part of the plea deal, one of Lewis' companies, Broad Bay Ltd, also
pleaded guilty to securities fraud and was fined $44m (£34.8m).

 

A substantial part of his fraudulent activity, according to an indictment,
was not meant to pad his estimated worth of $6.2bn (£4.9bn).

 

Instead, the incident with his pilot Patrick O'Connor was just one of a
number of times that he passed along insider information about his companies
to his private pilots, friends, personal assistants and romantic partners,
in order to enrich his close associates.

 

 

In part, the billionaire hatched the scheme because he felt bad for never
setting up formal retirement plans for his pilots, according to a statement
he made in court at the time of his guilty plea.

 

Lewis was born in London's East End and took over a restaurant business
started by his father before selling it to focus on currency speculation and
investments.

 

He was reportedly one of the investors who made money betting heavily
against the pound prior to "Black Wednesday" - the UK's withdrawal from the
European Exchange Rate Mechanism in September 1992.

 

He founded the investment firm Tavistock Group, which has ownership stakes
in a large array of property, sports, finance, energy and life sciences
companies.

 

Lewis was ranked 39th in the 2023 Sunday Times Rich List and is best known
for his ownership of Tottenham Hotspur Football Club, which he bought a
controlling stake in for £22m in 2001 - a sum then worth around $32m.

 

 

In 2022, control was handed over to a family trust, and financial documents
the club filed with the UK's Companies House indicate that Lewis no longer
has "significant control" over the club.

 

His current fortune includes homes in several countries, a huge art
collection and $250m (£200m) yacht, which he used to secure a bail bond
after his arrest in July 2023.

 

Getty Images Aviva, Joe Lewis's superyacht, seen in London in 2018Getty
Images

Aviva, Joe Lewis's superyacht, seen in London in 2018

His position in the financial world gave him access to boardroom secrets,
and for years, prosecutors said, he tipped off associates so that they could
take advantage, in a fraud that netted millions of dollars.

 

In addition to pilots and workers on his yacht, romantic partners were also
on the receiving end of his criminal largesse.

 

 

In July 2019, a company called Solid Biosciences that Tavistock had invested
in was looking for fresh cash. While considering the deal, Lewis was given
confidential information about a clinical trial.

 

He was staying with his girlfriend in South Korea at the time, and told her
to pour money into the company. She invested around $700,000.

 

The following day the couple returned via private plane to the US. Along the
way, Lewis shared his insider tip with his pilots.

 

As results of the clinical trial were released, the company's shares
skyrocketed. Lewis' girlfriend more than doubled her money.

 

The fraud also went beyond insider trading, prosecutors said. Starting in
2013, Lewis concealed the true scale of his holdings in companies in order
to obtain favourable terms for stock deals.

 

 

His pilot, O'Connor, pleaded guilty to insider trading charges and will be
sentenced in May.

 

Another pilot, Bryan Waugh, pleaded not guilty and will go on trial later
this year. His lawyers have argued in court filings that he did not know
that the information he received from Lewis was confidential and not in the
public domain.-bbc

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

Cellphone:         +263 71 944 1674 | +27 79 993 5557 

Email:                <mailto:bulls at bullszimbabwe.com>
bulls at bullszimbabwe.com

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

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www.facebook.com/BullsBearsZimbabwe



 

 

 


 

INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

Independence Day

 

April 18

 


 

Workers day

 

1 May

 


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) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:
<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
5557 | +263 71 944 1674

 


 

 

 

 

 

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