Major International Business Headlines Brief::: 08 April 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  08 April 2024 

 


 


 

	
 


 

 


 

ü  Kenya's Sugar Pricing Committee Cuts Cane Prices By 14 Percent

ü  Kenya: KQ to Change Airbus Lease From Wet to Damp, With Training of Crew

ü  Kenya: President Ruto Tells Doctors to Make Realistic Demands in Strike
Stand Off

ü  Nigeria: Exclusive - How Multichoice Nigeria Was Defrauded of N7.9
Billion

ü  Tanzania: Minister Jafo Highlights What Union Has Achieved in Key Sectors

ü  Kenya, France Finalize Deal to Fund Nairobi Commuter Railway

ü  Uganda: Bukomansimbi Goat Traders Frustrated With Prolonged Quarantine

ü  Kenya's Weekly Coffee Sales Reach $10 Million

ü  Botswana Leads Calls On G7 Countries to Review Diamond Tracking
Initiative

ü  Ghana: President Akufo-Addo Appoints New CEO for GNPC

ü  Brazil Supreme Court judge opens inquiry into Musk

ü  China property giant Shimao faces winding-up case

ü  Boeing plane engine cover falls off prompting investigation

ü  McDonald's: Behind the fast-food firm's boycott controversy

ü  US jobs boom raises doubts about rate cuts

 


 

 


 <https://www.cloverleaf.co.zw/> Kenya's Sugar Pricing Committee Cuts Cane
Prices By 14 Percent

Kenya's Sugar Pricing Committee has implemented a 14 percent reduction in
the price of sugarcane, responding to a concurrent decrease in the cost of
the commodity on the retail market.

 

In the most recent review, the committee, mandated with periodically
assessing sugarcane prices, revised the cost from Ksh5,900 per tonne in
March to Ksh5,100, marking one of the sharpest cuts in recent months.

 

"The second Interim Sugar Pricing Committee held a meeting on Thursday April
4, 2024 in Kisumu. During the meeting to review sugarcane price, the
committee resolved that the new sugarcane price will be Ksh5,100 effective
Monday April 8,2024," said the Head of Sugar Directorate Jude Chesire in a
letter to stakeholders.

 

 

Agriculture and Food Authority cited a notable decline in retail sugar
prices as the driving factor behind this adjustment.

 

"The sugar prices have gone down further that is why, and this is attributed
to increased production," said Mr Chesire.

 

Presently, a two-kilogramme sugar packet is available at Ksh390, down from
Ksh450 in August of the previous year.

 

However, data from Kenya's statistics agency-KNBS, indicates the price of
sugar was up by 21 percent in March.

 

To determine the sugarcane cost, the committee considers prevailing sugar
prices and ex-factory rates, aiming for equitable returns to both growers
and millers.

 

The committee comprises representatives from various entities, including
AFA, the Ministry of Agriculture, farmers, millers, and sugar-producing
counties.

 

The government had last year put measures in place to tame the rising cost
of the sweetener in the market. The intervention included boosting imports
to enhance local supply and improving the efficiency of domestic millers.

 

The decline in price of commodity is also attributed to increased local
sugar production after it permitted sugar factories to fully resume
operations last December.

 

In July last year, the regulatory body imposed a four-month ban on cane
milling to allow the crop in the fields to mature before resuming
production.

 

This decision coincided with India, a major global sugar producer, imposing
export restrictions to safeguard its local stocks amid a worldwide shortage
that escalated sugar prices.

 

- Business Day Africa.

 

 

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

 

Kenya: KQ to Change Airbus Lease From Wet to Damp, With Training of Crew

Kenya Airways (KQ) has commenced training sessions for its cabin crew,
aiming to replace the current staff provided under the Airbus wet lease
agreement.

 

With a target of training 60 cabin crew members, KQ has already commenced
training for 30 personnel, with specialised trainers deployed for the task.

 

To facilitate this transition, KQ intends to shift the terms of the lease
from wet to damp, accommodating the necessary personnel adjustments.

 

In a damp lease arrangement, the lessor provides the aircraft, flight crew,
and maintenance, while the lessee assumes responsibility for cabin crew
provision, a model sometimes referred to as a moist lease.

 

 

Language barriers and divergent customer service approaches within the cabin
have led to service disruptions, prompting KQ's decision to take proactive
measures.

 

"The differing customer approach and language barriers necessitate our
direct intervention through crew training," remarked a KQ spokesperson
regarding the initiative.

 

Business Day Africa has also established that customer dissatisfaction also,
particularly in the premium class, has prompted KQ to consider aircraft
replacement.

 

Business class travelers have voiced concerns about seat functionality,
citing issues with reclining mechanisms impeding comfort during flights.

 

Despite primarily operating Boeing and Embraer aircraft, KQ acknowledges the
need for Airbus standards training due to its recent lease of an A330
aircraft.

 

The A330, leased to bolster capacity during peak seasons last December, will
continue in service as KQ's Boeing 787 remains grounded due to spare part
unavailability.

 

KQ entered a short-term wet lease agreement with Hi Fly, a prominent lease
and charter specialist airline, to mitigate operational disruptions caused
by spare part shortages.

 

Under the ACMI (Aircraft, Crew, Maintenance, and Insurance) lease structure,
the lessor provides the aircraft and crew, ensuring continuity of
operations.

 

The Airbus A330 offers seating for 299 passengers, including 24 in business
class and 275 in economy class.

 

- Business Day Africa.

 

 

 

 

Kenya: President Ruto Tells Doctors to Make Realistic Demands in Strike
Stand Off

Eldoret — President William Ruto has emphasized the need for doctors to
understand the government's fiscal constraints, stressing the importance of
living within means when it comes to salaries and allowances.

 

During a church service at Africa Inland Church (AIC) Fellowship Eldoret in
Uasin Gishu county, President Ruto underscored the value of the work done by
doctors and interns in the healthcare sector while acknowledging the
financial limitations faced by the government.

 

"The resources we have are only sufficient to pay KSh70,000 for intern
doctors. This is not a salary; it is a stipend for only one year.
Afterwards, they will be employed," President Ruto explained.

 

 

He further added, "As a nation, we must agree that we must live within our
means. We cannot continue to spend the money we do not have."

 

President Ruto highlighted the current state of the country's wage bill,
noting that it stands at 47% of the KSh2.2 trillion revenue collected
annually. He emphasized the need to reduce it to the legal requirement of
35%.

 

"We are spending KSh1.1 trillion of the KSh2.2 trillion revenue we collect
every year to pay salaries and allowances. This is way above what we should
be spending on salaries," President Ruto stated.

 

To address this issue, President Ruto announced plans to host a conference
from April 15 to 17 aimed at discussing and finding solutions to the
nation's wage bill challenge. He emphasized the importance of freeing up
resources for other crucial sectors such as healthcare and education, as
well as creating opportunities for the youth.

 

"We intend to grow more food and reduce imports," President Ruto said,
urging farmers to take advantage of the current rainy season to boost
agricultural productivity.

 

President Ruto's remarks come amidst ongoing discussions regarding the
country's financial management and the need for prudent decision-making to
ensure sustainable development and economic stability.

 

About The Author

 

PRESIDENTIAL COMMUNICATION SERVICE

 

See author's posts

 

- Capital FM.

 

 

 

 

Nigeria: Exclusive - How Multichoice Nigeria Was Defrauded of N7.9 Billion

According to Mr Giwa, he acted on Multichoice Nigeria's behalf in arranging
with JNFX, under 10 Multichoice contracts, for the exchange of Naira into
dollars.

 

Multichoice Nigeria Limited, a company engaged in the provision of satellite
television services across Africa, was defrauded of the total sum of N7.9
billion in a controversial foreign currency exchange deal, court documents
seen by PREMIUM TIMES have shown.

 

The botched foreign currency exchange transaction involved Akintunde Giwa, a
currency exchange broker; JNFX Limited, a currency exchange firm; Ashay
Mervyn, a representative of JNFX, and Frontier Financial Technologies
Limited.

 

 

Mr Giwa is a currency exchange broker who earns a commission by assisting
those looking to buy US dollars with Nigerian Naira. JNFX is a private
limited company incorporated in England and engaged in foreign exchange and
international money transfer business. Frontier Financial Technologies
Limited is a Nigerian company where Mr Mervyn is a director, court documents
showed.

 

The case was brought before Stuart Isaacs, who sat as a Deputy Judge of the
High Court, in the Business and Property Courts of England and Wales. The
judgment was delivered remotely to the parties' representatives by e-mail
and released to the National Archives on 2 April.

 

While the claimant, Mr Giwa, was represented by Matthew Bradley and Rumen
Cholakov as instructed by Peters & Peters Solicitors LLP, Joseph Wigley
(instructed by Cooke, Young & Keidan LLP) appeared on behalf of the first
defendant, JNFX Limited.

 

 

Mr Mervyn and Frontier Financial Technologies Limited - listed as second and
fourth defendants, respectively - had no representatives in the case.

 

The claim against the third defendant, JNFX Nigeria Limited, was
discontinued and the company was excluded from the judgment.

 

Botched Contract

 

PREMIUM TIMES' review of court documents showed that MultiChoice Nigeria had
engaged Mr Giwa and his companies for many years to arrange the exchange of
Naira for dollars in connection with MultiChoice Nigeria's business.
According to Mr Giwa, he acted on Multichoice Nigeria's behalf in arranging
with JNFX, under 10 Multichoice contracts, for the exchange of Naira into
dollars.

 

In the proceedings at the UK court, MultiChoice Nigeria assigned its claims
to Mr Giwa, whose primary dealings with JNFX were conducted with Mr Mervyn,
a representative of JNFX "who had ostensible if not actual authority from
JNFX to enter into the MultiChoice Contracts."

 

 

Court documents showed that Multichoice Nigeria Limited paid N7.9 billion
(N7,914,209.196.50) to Mr Giwa, the currency exchange broker, who in turn
made payments to JNFX Limited, a currency exchange firm, under the
MultiChoice contracts. Details showed that the satellite service company
paid the Naira into the bank accounts of companies controlled by Mr Giwa and
were then sent to bank accounts nominated by JNFX through Mr Mervyn in
return for dollars to be paid into an account held at Standard Chartered
Bank in London in the name of MultiChoice Africa, another company within the
MultiChoice group of companies.

 

However, no dollar payments (amounting to $16.2 million) were received by
the company in return, according to Mr Giwa.

 

Backend Details

 

>From early 2021, court documents show, Mr Mervyn increasingly instructed Mr
Giwa to send the Naira to a bank account held at First City Monument Bank in
Nigeria in the name of Frontier Limited. Mr Giwa alleged that JNFX and Mr
Mervyn failed to pay into the MultiChoice Account the full equivalent dollar
sums or to reimburse MultiChoice Nigeria its Naira. A total of N7.9 billion
(N7,914,209.196.50) was paid to JNFX under the MultiChoice contracts for
which no dollar payments (amounting to $16,230,369) were received in return.

 

The tenth and last contract, concluded on 8 September 2021, provided for the
conversion of N4.9 billion into $10 million but no dollar sum was paid in
return for the Naira amount paid.

 

Meanwhile, the court documents showed that Mr Mervyn and Frontier, a
Nigerian company where Mr Mervyn is a director, have not responded to the
claims against them and have taken no part in the proceedings.

 

Interestingly, Mr Mervyn had been declared wanted by the Economic and
Financial Crimes Commission (EFCC) in an alleged case of obtaining money
under false pretence and fraudulent conversion of funds. The UK court said
that his whereabouts are unknown and a worldwide freezing order (WFO) had
earlier been granted against him and Frontier in 2022 but was discontinued
in June 2023.

 

JNFX in its argument stated, among others, that Mr Mervyn lacked actual
authority to enter into the Multichoice contract and act as its agent.

 

Arguments

 

In his arguments, Mr Giwa, on whom the burden of proof lies, submitted that
JNFX has no realistic prospect of showing that Mr Mervyn is not guilty of
deceit and lacked ostensible authority to act as its agent in entering into
the MultiChoice contracts and that it is not therefore liable for Mr
Mervyn's deceit. He also argued against the claim that JNFX would not in any
event have been obliged to fulfil any of its obligations under the
MultiChoice contracts due to the requirement in its standard terms of
business which would have governed them that all payments to it must be made
to a bank account in the name of JNFX.

 

JNFX on its part argued that the quantum of Mr Giwa's claim should be
reduced to $8.4 million ($8,429,369) in light of dollar payments made by it
for which no credit has been given, adding that his application raises
complex issues of fact which need to be the subject of disclosure and
evidence at a trial.

 

 

Mr Giwa submitted that the defendants have no real prospect of defending the
claim and that there is no other compelling reason for a trial. He argued
that he is entitled to summary judgment; and that the amended defence
discloses no reasonable grounds for defending the claim. JNFX, on its part,
submitted that its defence has a real prospect of success, and that summary
judgment should therefore be refused.

 

JNFX argued that the failure of Mr Mervyn to fulfil his intention and
execute the exchange contract is not evidence of the falsity of those
intentions when made. Based in particular on the evidence of JNFX's
solicitors, the company claimed that it was "perfectly possible" that Mr
Mervyn only subsequently got into difficulties related to the depreciation
of the Naira against the dollar which resulted in his original intentions
not being able to be fulfilled.

 

Verdict

 

The court agreed that the matters presented by Mr Giwa are not themselves
evidence of the falsity of Mr Mervyn's intentions on which the contractual
agreements are founded. But when taken together with all the other matters
relied on, the court rejected JNFX's solicitors' alternative explanation as
the more plausible explanation.

 

Commenting on JNFX's claim that Mr Mervyn had no actual authority to
represent the company, the court dismissed the claim and agreed with Mr Giwa
based on the facts that Mr Mervyn corresponded from a JNFX email address,
was described in the emails' signature block as JNFX's "Head of Global
Markets" with the contact and website details of JNFX given, and also
described himself as "Head of Emerging Markets".

 

"Importantly, it is also clear that Mr Green (JNFX's managing director) and
Mr Eisenberg (of JNFX) were aware from having been copied into or forwarded
communications from Mr Mervyn to Mr Giwa and third parties such as
MultiChoice and Dubai Islamic Bank of the role being claimed by Mr Mervyn
and at no time disclaimed that role or indicated that he lacked the
authority to transact the business which he was transacting," the court
ruled.

 

After reviewing the various arguments and evidence presented by the parties,
the court held that Mr Giwa is entitled to summary judgment in respect of
his claim of deceit against JNFX and Mr Mervyn in the sum of N7.9 billion
(N7,914,209.196.50) together with interest.

 

It also held that JNFX's defence be struck out to the extent that it pleads
a defence to the claim of deceit, and refused permission to amend JNFX's
defence in so far as the amendments relate to a defence to the claim of
deceit.

 

"The application for summary judgment or to strike out JNFX's Defence so far
as concerns the contractual claim against JNFX is dismissed and that claim
shall proceed to trial," the court held.

 

- Premium Times.

 

 

 

Tanzania: Minister Jafo Highlights What Union Has Achieved in Key Sectors

Dodoma — MINISTER of State in the Vice-President's Office (Union and
Environment), Dr Selemani Jafo has said a lot of success have been
registered in education, health and water sectors in 60 years of Union
between Tanganyika and Zanzibar.

 

He made the remarks on Friday in Dodoma as he highlighted on some of the
positive impacts that have been brought courtesy of the Union between the
two sides.

 

"In our Union, we have made major strides in health sector with more than
9,000 health centres that have been built. In every council, you find health
facilities and dispensaries that are providing services to people," Dr Jafo
said.

 

 

He added that with the Covid-19 relief fund the country received from the
International Monetary Fund (IMF) amounting to 600million US dollars in
2021.

 

The IMF board approved a disbursement of 189 million US dollars to Tanzania
under its Rapid Credit Facility (RCF), as well as 378 million under the
Rapid Financing Instrument (RFI). Part of which was invested in developing
water projects in both Tanzania mainland and Zanzibar as well as fostering
education sector through construction of classrooms.

 

"Almost 100 million US dollars went to Zanzibar, the money was used for
construction of modern classroom blocks and also, in each district of the
Isles, there is a well-stocked hospital providing services to people," he
said.

 

Moreover, Dr Jafo said that the prevailing peace and security in both sides
of the Union plays a crucial role in attracting tourists.

 

 

"In Zanzibar, you see an increasing number Airplanes landing with big number
of tourists, the similar scenario is at the Kilimanjaro International
Airport (KIA) and at Julius Nyerere International Airport (JNIA) leading to
economic growth in both sides of the Union thanks to the strong unity we
have," he said.

 

Furthermore, he said that the Tanzania Social Action Fund (TASAF) which
operates in both sides of the Union has brought in significant development.

 

"I can say TASAF projects have made outstanding performance in both mainland
and Zanzibar not forgetting projects that facilitate environment
issues...all these are remarkable successes that we are enjoying as
Tanzanians," he said.

 

In other development, he said that the ongoing tree planting campaign in
both sides is bringing positive impacts by ensuring preservation of
environment.

 

"I thank the environment ambassadors who are doing a commendable job of
promoting this essential campaign," he said.

 

- Daily News.

 

 

 

 

Kenya, France Finalize Deal to Fund Nairobi Commuter Railway

Nairobi, Kenya — Kenya and France have finalized an agreement to facilitate
funding for the upgrading of the Nairobi Commuter Railway, a rail network
serving Nairobi and its suburbs, officials said on Saturday.

 

Musalia Mudavadi, prime cabinet secretary who is also the cabinet secretary
for foreign and diaspora affairs, told journalists in Nairobi, the capital
of Kenya, that the east African nation will receive a 138.7-million-U.S.
dollar loan to modernize its metropolitan railway line.

 

"This project aligns with Kenya's sustainable urban development initiatives,
aiming to enhance transport services and mobility in the Nairobi
metropolitan area," Mudavadi said during a joint press conference with
French Minister for Europe and Foreign Affairs Stephane Sejourne.

 

 

He added that the two countries have also agreed to expedite the
implementation of a key project to create eight socio-sports and cultural
complexes throughout the country that will be co-financed by the two
countries to the tune of 76. 8 million dollars.

 

On his part, Sejourne said that the two countries also agreed to strengthen
their bilateral cooperation on climate action as well as step up efforts to
cut greenhouse gas emissions and strengthen resilience and adaptive capacity
by prioritizing green growth.

 

The two ministers called for the need to strengthen access to sustainable
energy and welcomed Africa's green industrialization initiative and
transition launched by Kenya.

 

They committed to addressing the full lifecycle of plastics and plastic
pollution in all its dimensions, including primary plastic polymers and
associated chemicals.

 

The ministers also emphasized the need to further preserve, protect and
restore critical ecosystems, including forests and other wooded land,
wetlands such as peatlands and mangroves and ocean that are the main natural
carbon sinks and biodiversity reservoirs.

 

- Independent (Kampala).

 

 

 

 

 

Uganda: Bukomansimbi Goat Traders Frustrated With Prolonged Quarantine

In Kigangazi Town Council, Bukomansimbi District, a rift has emerged between
goat traders and local authorities following the prolonged cattle quarantine
affecting the town's livestock market.

 

The traders' discontent reached a boiling point after neighbouring
sub-counties were cleared from foot and mouth disease (FMD) quarantine while
Kigangazi remained under the restriction.

 

Kigangazi Town Council and other sub-counties, including Bigasa, Kitanda,
Bukango, and Kagologolo Town Council went into quarantine on January 14
after the outbreak of foot and mouth disease in Bukomansimbi.

 

Wednesday flea market day, a staple for residents to sell their merchandise,
became a battleground for dissent.

 

 

Ssekajja Kirigwajjo, a vocal leader among the traders, voiced their
grievances, alleging that promises made by a veterinary doctor [Name
withheld for legal reasons - editor] to have the quarantine lifted were not
honoured despite financial transactions.

 

"Our veterinary doctor, [name withheld], told us about the foot and mouth
disease and he told us that the disease has come from our neighbouring
district Sembabule but he told us to collect some money so that they do not
put us into cattle lockdown," Kirigwajjo said.

 

"Each of us brought Shs5,000 but since then we have never seen him anywhere
and even if we call him he no longer answers our calls."

 

Some of frustrated goat traders in Kigangazi Town Council Another trader
added: "When he was collecting the money, he said it was buying FMD vaccines
so that all cattle get vaccinated with the aim of avoiding quarantine but
until now he is nowhere to be seen."

 

 

The chairperson for goat traders, John Ssebulime, lamented the dire
circumstances faced by traders since January, emphasising their heavy
reliance on goat sales for livelihoods.

 

Grace Nalwoga, who is responsible for fee collection at the market, said she
was no longer collecting the dues because of the market's closure, leaving
her tender inactive.

 

"You pay the taxes before starting work. Now I have skipped 16 markets,
including those for seasons and those for festive days but this time I
skipped the festive days," Nalwoga said.

 

"I have incurred losses of between Shs2.5 million and Shs3 million, and I do
not know where I'm going to get the money from."

 

Kigangazi Town Council chairperson, Yasin Kawuma, highlighted the economic
toll on the council due to lost tax revenue from the dormant market.

 

He said since Kigangazi is still a new town council, they have never
received any funds from the government and the town council was run on taxes
yet the goat market is the main source of tax collection in Kigangazi.

 

The situation escalated further as traders, led by Kirigwajjo, vowed to defy
the lockdown and resume selling their goats.

 

"We are already going back to the market and on Wednesday next week we have
to trade by force," he said.

 

In response, Steven Nfashengabo, the RDC of Bukomansimbi and head of the
district foot and mouth disease task force, reiterated the necessity of the
quarantine, citing Kigangazi's role as the epicentre of the disease
outbreak.

 

"The Ministry of Agriculture told us to lift the ban on the sub-counties but
Kigangazi remained because it was the source of foot and mouth disease in
Bukomansimbi so we are still following up to see whether the disease became
has been eradicated," RDC said.

 

Despite urging traders to keep calm, tensions continue to simmer between
traders and authorities.

 

- Nile Post.

 

 

 

 

Kenya's Weekly Coffee Sales Reach $10 Million

Kenya's Coffee prices surged by three percent in the latest auction, driven
by concerns of a global shortage exacerbated by heavy rains disrupting
Brazilian crop yields. This spike propelled farmers' overall earnings for
the week to $10 million.

 

During this week's auction, the price of the beverage soared to $245, up
from $237 in the previous sale.

 

On Tuesday, both arabica and robusta coffee prices experienced significant
increases in the world market, with arabica hitting a one-month high and
robusta reaching an unprecedented peak.

 

Market momentum was fueled by persistent worries stemming from Monday
regarding the potential impact of extensive rainfall in Brazil's key
coffee-producing regions on crop yields.

 

 

The Minas Gerais region, which accounts for roughly 30 percent of Brazil's
arabica production, suffered negative impacts from the rains, raising
concerns about supply disruptions in the market.

 

This uptick in prices translated into a commendable boost in the overall
sales value, climbing to an impressive $10.2 million from the previous $7
million.

 

Notably, Kenya's premier coffee-grade AA witnessed a spike in value, with a
50-kilo bag commanding $315 compared to the previous sale's $313. Similarly,
Grade AB, the second-tier in terms of quality, experienced an increase,
fetching $247 per bag, up from the preceding $237.

 

The government of Kenya is actively advocating for coffee reforms aimed at
increasing farmers' earnings by eliminating brokers along the value chain.

 

Kenya primarily sells up to 95 percent of its total production to the world
market, with only five percent allocated for local consumption.

 

- Business Day Africa.

 

 

 

 

Botswana Leads Calls On G7 Countries to Review Diamond Tracking Initiative

Gaborone, Botswana — Africa's leading diamond producer, Botswana, has
written to the Group of Seven leading industrial countries seeking to
reverse an initiative requiring all producers to send gems to Belgium for
certification. This follows G7 move to prevent the import of diamonds mined
in Russia.

 

Botswana President Mokgweetsi Masisi told diplomats in Gaborone Wednesday
the G7 traceability mechanism poses an unfair burden on African diamond
producers.

 

The G7 is an informal grouping of seven of the world's advanced economies,
including Canada, France, Germany, Italy, Japan, the United Kingdom and the
United States. They have required since March 1 that all diamonds entering
G7 countries be sent through Antwerp, Belgium, to determine their origin.

 

 

The controls are meant to prevent Russian diamonds out of global markets
amid concerns the revenues will be used to finance Russia's Ukraine war.

 

"We cannot agree to an attempt to undermine our quest for development by
taking charge and responsibility of our own value addition of our
resources," Masisi said. "Because if you make Belgium, Antwerp the single
node for verification, gosh, what impudence. When we mine our diamonds here
and we are certain they are mined here and you add another layer of cost,
delay and time and risk to direct interaction with customers and clients and
you take them still to Antwerp, it's not acceptable."

 

Masisi said African diamond producing countries were not consulted by the G7
before the measures were introduced in March.

 

 

"When the G7 made these propositions, that are inimical to our interests and
particularly Botswana because we are one of the largest producers at least
outside Russia," he said. "They were essentially regulating our industry
completely without our participation. You can't do this without engaging us,
particularly Botswana. They did reach out and send people here. The
engagement was pretty patronizing. They had essentially made up their
minds."

 

Masisi said he is lobbying other leaders to protest the controls.

 

Botswana, together with Angola and Namibia, two other African diamond
producers, sent a letter protesting G7's move but there has been no
response.

 

"We wrote a letter, we authored the main letter, we shared it with other
producing countries namely Namibia and Angola and we asked them to be
co-signatories and with minor amendments we all co-signed and sent it to G7
and we have not gotten a response. Apparently they say they are consulting
but the requirements have kicked in and luckily the World Diamond Council
has also protested because there has been serious disruption to the flow of
diamond trade, and cost implications and delays."

 

 

Masisi said Botswana in particular already has advanced verification and
traceability systems.

 

The G7 move is seen as undermining the Kimberley Process, an existing
commitment to remove conflict diamonds from the global supply chain.

 

"The African Diamond Producers Association is very right to protect their
interests," said Jaff Bamenjo, coordinator of the Kimberley Process Civil
Society Coalition, which acts as an observer of the Kimberly Process.

 

"That is legitimate. However, the G7 is also right to protect the values and
principles they cherish and defend. The main issue to us, as the Kimberley
Process Civil Society Coalition, is how much we accommodate the legitimate
concerns of each other. That is the question. But I should say, the G7 in my
opinion, from the very onset made a mistake not to consult the African
diamond producers right from the initial stages."

 

Belgian-based diamond industry researcher Hans Merket told VOA traceability
measures are necessary but that there is also a need to respond to African
producers' concerns.

 

"A serious advancement of traceability in the diamond trade is long
overdue," Merket said. "Too many actors have been overtly comfortable in a
lack of transparency for many years. I think delays in the implementation of
the scheme in the first month were a growing pain and have already been
partly resolved after some adaptations. The added costs I think are also
manageable given that the scheme only applies to more valuable diamonds of
about 1 carat."

 

More than 100 diamond businesses recently wrote a letter to the Antwerp
World Diamond Centre expressing concerns over delays in customs clearance of
diamonds since the G7 introduced the traceability measures.

 

- VOA.

 

 

 

 

Ghana: President Akufo-Addo Appoints New CEO for GNPC

Joseph Abuabu Dadzie has been appointed as the acting Chief Executive
Officer (CEO) of the Ghana National Petroleum Corporation (GNPC).

 

Prior to his appointment, Joseph Dadzie served as the deputy chief executive
(DCE) responsible for Commerce, Strategy, and Business Development within
the corporation.

 

Joseph Dadzie's appointment comes following the tenure of Opoku-Ahweneeh
Danquah, who was appointed GNPC CEO in April 2022.

 

"Pursuant to Section 10 (2) of the Ghana National Petroleum Corporation Act,
1983 (P.N.D.C.L. 64), I am pleased to inform you that the President has
appointed you to act as the Chief Executive of Ghana National Petroleum
Corporation (the "Corporation") pending receipt of the required advice of
the honourable Minister for Energy, given in consultation with the Public
Services Commission," a letter signed by the Secretary to the President,
Nana Bediatuo Asante dated Wednesday, 3 April 2024 read.

 

"Your appointment is effective 2nd May 2024. I take this opportunity to
congratulate you formally on your appointment."

 

"Kindly indicate your acceptance or otherwise of this appointment, within 14
days of receipt of this letter Please accept the President's best wishes,"
the appointment letter read.

 

- GhanaToday.

 

 

 

 

Brazil Supreme Court judge opens inquiry into Musk

A Brazilian Supreme Court judge has opened an inquiry into Elon Musk after
the multi-billionaire said he would reactivate accounts on the social media
platform X, formerly Twitter, that the judge had ordered to be blocked.

 

Mr Musk posted on the platform that the restrictions had been lifted because
the court order was unconstitutional.

 

He also called for Justice Alexandre de Moraes to "resign or be impeached".

 

If X fails to comply with the order, it will be fined 100,000 reais
($19,774; £15,670) a day.

 

In his decision, Justice Moraes wrote that Mr Musk had launched a
disinformation campaign against the Supreme Court.

 

The platform's Global Government Affairs team said the company was not
allowed to say which accounts were affected.

 

But Mr Musk has since posted that "X will publish everything demanded by
[Moraes] and how those requests violate Brazilian law".

 

The profiles are believed to have been linked to far-right movements which
posted content related to riots on 8 January last year when thousands of
supporters of Brazil's former President Jair Bolsonaro stormed the country's
Congress, the Supreme Court and the presidential palace.

 

Justice Moraes gained prominence after his decisions to restrict social
media platforms in the country.

 

He is also investigating Mr Bolsonaro and his supporters for their roles in
an alleged attempted coup d'état.

 

On Saturday, the former president posted a video of a meeting he had with Mr
Musk in May 2022.

 

Hours earlier, Mr Bolsonaro also called on his supporters to gather on 21
April.

 

Meanwhile, Brazil's communication minister Paulo Pimenta criticised Mr Musk,
posting in capital letters that "social networks are not a lawless land".

 

"We will not allow anyone, regardless of the money and power they have, to
affront our homeland," he added.

 

 

If X decides to disobey the order, the platform could be blocked temporarily
according to Bruna Santos who is the global campaigns manager at non profit
organisation Digital Action.

 

"Musk acted to provoke the Brazilian judiciary," she said. "I think there is
a real chance that X might get blocked."-bbc

 

 

 

 

China property giant Shimao faces winding-up case

China's crisis-hit property market has been dealt a fresh blow as major real
estate developer Shimao Group has been hit with a winding-up petition.

 

State-owned China Construction Bank (Asia) filed the petition in Hong Kong
over Shimao's failure to repay loans worth HK$1.58bn ($201.8m; £159.7m).

 

It is rare for a Chinese bank to take such legal action against one of the
country's developers. Similar cases against other property firms were
launched by overseas-based creditors.

 

Shimao said in a stock exchange filing it would "vigorously" oppose the
lawsuit.

 

Its shares, which have lost a third of their value since the start of the
year, fell by more than 15% to hit an all-time low during Monday's trading.

 

Like several other Chinese property developers, Shanghai-based Shimao
defaulted on offshore bonds in 2022.

 

Last month, it laid out detailed plans to restructure its debts.

 

In January, rival real estate giant China Evergrande was ordered to
liquidate by a Hong Kong court.

 

With more than $300bn of debt, Evergrande has been the poster child of
China's real estate crisis.

 

Property developer Country Garden also defaulted on its overseas debt last
year and faces a winding-up petition.

 

The first hearing for that petition, which was filed by Ever Credit Ltd, is
scheduled for 17 May.

 

Ever Credit is a unit of Kingboard Holdings, a laminates maker and property
investor.

 

China's real estate industry has been facing a major financial squeeze since
2021 when the government introduced measures to curb the amount big
developers could borrow.

 

Since then several large property firms have defaulted on their debts.

 

Problems in China's property market have a major impact on its economy as
the sector accounts for around a third of the economy.-bbc

 

 

 

Boeing plane engine cover falls off prompting investigation

Airline regulators in the US have begun an investigation after an engine
cowling on a Boeing 737-800 fell off during take-off and struck a wing flap.

 

The Southwest Airlines flight returned safely to Denver International
airport at about 08:15 local time (15:15 GMT) after originally departing to
Houston.

 

The aircraft had 135 passengers and six crew members on board and rose to
about 10,300 feet (3,140m) before landing.

 

The incident comes amid manufacturing and safety concerns at Boeing.

 

Southwest Airlines said its maintenance teams would review the Boeing
737-800 after its cowling, which covers the plane's engine, fell off. The
airline confirmed it was responsible for maintenance of such parts.

 

"We apologise for the inconvenience of their delay, but place our highest
priority on ultimate safety for our customers and employees," a statement
said.

 

The plane was manufactured in 2015 according to regulator Federal Aviation
Administration (FAA) records, and the 737-800 is an earlier generation of
the 737 from the latest Max model.

 

 

The FAA said the Boeing aircraft was towed to the gate after landing.

 

Boeing declined to comment when approached by BBC News, referring questions
to Southwest for information about the airline's plane and fleet operations.

 

Southwest said it would fly passengers on another plane to Houston about
three hours behind schedule.

 

Boeing has been under scrutiny following a dramatic mid-air blowout in
January, in which passengers on the flight from Portland, Oregon, to
California narrowly escaped serious injury.

 

On Friday, it was announced Boeing paid $160m (£126m) to Alaska Air to make
up for losses the airline suffered following the emergency.

 

Regulators temporarily grounded nearly 200 Boeing 737 Max 9 jets after a
door plug fell from the Alaska aircraft shortly after take-off.

 

Boeing has been trying to repair its reputation for years after crashes in
2018 and 2019 involving a different version of the 737 Max plane killed 346
people.

 

 

Its popular 737 Max planes were subsequently grounded globally for more than
18 months.-bbc

 

 

 

 

McDonald's: Behind the fast-food firm's boycott controversy

The sudden decision by McDonald's to take over ownership of its branches in
Israel has thrust the franchise company Alonyal and its chief executive Omri
Padan into the spotlight.

 

McDonald's will buy back all of its Israeli restaurants after global sales
slumped due to a boycott of the brand over its perceived support for Israel
in its war against Hamas in Gaza.

 

The fast-food giant uses a franchise system which means that individual
operators are licensed to run outlets and employ staff. But the broader
company came in for criticism after Mr Padan offered free meals to Israeli
forces around the start of the Israel-Gaza war on 7 October.

 

A boycott was sparked after Muslim-majority countries such as Kuwait,
Malaysia and Pakistan issued statements distancing themselves from the firm
for what they saw as support of Israel.

 

Mr Padan, however, is not new to controversy related to the
Israeli-Palestinian conflict. In the 30 years the businessman has been
operating restaurants for McDonald's in Israel, he has been at the centre of
a number of disputes.

 

Getty Images McDonald's sign in IsraelGetty Images

In 2013, the Israeli businessman angered Israel's settler movement when he
refused calls to open a branch of the fast-food chain in the settlement of
Ariel in the occupied West Bank. Mr Padan's company Alonyal was asked to set
up a restaurant in a shopping centre but declined, saying the firm had a
policy of staying out of the occupied territories.

 

At the time, the firm said the decision had not been co-ordinated with
McDonald's headquarters in the US.

 

Israel has built about 160 settlements housing some 700,000 Jews since it
occupied the West Bank and East Jerusalem - land the Palestinians want as
part of a future state - in the 1967 Middle East war.

 

The vast majority of the international community considers the settlements
illegal under international law, although Israel disputes this.

 

Mr Padan is one of the founders of the group Peace Now, which opposes all
settlements and views them as obstacles to peace. Peace Now says he is no
longer a member of the group, which was founded in 1978.

 

A leader of the Yesha Council, the settlers' umbrella organisation, said at
the time that McDonald's had gone from being a for-profit company to one
with an "anti-Israeli political agenda".

 

Alonyal's decision resurfaced in 2019 when McDonald's won a tender to run a
restaurant and hot dog stand at Israel's Ben-Gurion Airport.

 

In response, several letters of protest were sent by settlement leaders in
the West Bank that called on the finance and transportation ministries, as
well as the Israel airport authority, to block the move. Protests were also
held outside the fast-food chain's restaurants in Tel Aviv.

 

And on Thursday, it was abruptly announced that Alonyal would sell the
sprawling franchise back to the US food giant.

 

 

The terms of the deal were not disclosed by McDonald's, although a
reputation management expert, who has worked on behalf a number of large
companies but did not want to speak on the record, said that those outraged
by the decision to offer free meals to Israeli forces may be "angry that
this deal makes Mr Padan possibly a very rich man".

 

They might be pleased though, about the effect the boycott has had.

 

Mr Padan's departure comes after McDonald's said that the Israel-Gaza
conflict had "meaningfully impacted" performance in some overseas markets in
the fourth quarter of 2023.

 

For the unit that includes the Middle East, China and India, sales growth
stood at 0.7% in the fourth quarter of 2023 - far below market expectations.

 

At the start of the year, McDonald's chief executive Chris Kempczinski
blamed the backlash on "misinformation".

 

The boycott was also described as "disheartening and ill-founded" by the
firm, which 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.

 

The brand management expert said: "I get it. They are buying back the
franchises to regain control but I'm not sure they have."

 

They also questioned where the company might draw a line: "Does this mean
[McDonald's] will now need to act and offer deals in other areas where
reputational damage has been caused?"

 

On Thursday, McDonald's said that it "remains committed to the Israeli
market and to ensuring a positive employee and customer experience in the
market going forward."

 

It also thanked Alonyal for building the brand in Israel, while Mr Padan
said: "We are encouraged by what the future holds."

 

BBC News did not receive further comment from Mr Padan or Alonyal through
McDonald's.-bbc

 

 

 

 

US jobs boom raises doubts about rate cuts

Employers in the US added more than 300,000 jobs last month - the biggest
gain in almost a year - as the boom in the world's largest economy
continued.

 

The jobless rate fell to 3.8%, as most sectors, including health care,
construction and the government added roles, the Labor Department said.

 

It marked another month of stronger-than-expected growth. Economists had
forecast job gains of about 200,000.

 

Analysts said the strong figures could delay cuts to US interest rates.

 

The US central bank's key interest rate is currently at the highest level in
more than two decades, in a range of 5.25%-5.5%.

 

Analysts have expected the Federal Reserve to start cutting rates this year
to avoid a harsh slowdown triggered by high borrowing costs.

 

But a stronger-than-expected economy has raised doubts about how soon those
cuts might come.

 

"The blockbuster 303,000 increase in non-farm payrolls in March supports the
Fed's position that the resilience of the economy means it can take its time
with rate cuts, which might now not begin until the second half of this
year," said Paul Ashworth, chief economist at Capital Economics.

 

The Fed raised interest rates sharply in 2022 to try to slow the economy and
ease the pressures that were pushing up prices at the fastest rate in
decades.

 

Price inflation in the US has since cooled, dropping to 3.2% in February,
without the big jump in unemployment some had feared would follow the rise
in borrowing costs.

 

US holds interest rates steady but signals cuts ahead

Economists said the labour market has been helped by government spending in
areas such as high tech manufacturing and infrastructure.

 

An influx of more than three million immigrants last year has also added to
the workforce, which analysts say may be helping to keep a lid on wages,
allowing the jobs boom to proceed without reigniting inflation.

 

In March, the average hourly pay was up 4.1% from a year earlier, roughly in
line with expectations and near a three-year low.

 

President Joe Biden hailed the latest figures as a "milestone in America's
comeback".

 

But Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, warned
that the strong jobs growth could make returning the inflation rate to the
Fed's 2% target difficult.

 

The report signals that "the economy has plenty of excess energy that may
need to be tamed by continued higher rates," she said, noting that some
analysts are now betting rate cuts will not come until 2025.

 

Higher interest rates in the US have put pressure on economies around the
world, as they entice investors to America and away from other countries.

 

"The Federal Reserve's dashboard still has some warning lights to deal with
before signalling the all-clear for cutting," she said.-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 

Blog:                  <http://www.bullszimbabwe.com/blog>
www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:           <http://www.facebook.com/BullsBearsZimbabwe>
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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