Major International Business Headlines Brief::: 16 April 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  16 April 2024 

 


 


 

	
 


 

 


 

ü  Nigeria: Naira Surges Against Dollar, Hits 5-Month High

ü  Gambians Express Frustration As All Ferries Shuttling the Banjul-Barra
Route Undergo Maintenance

ü  Mozambique: Pirates Release Ship Hijacked in Mozambique Channel

ü  Nigeria's Inflation Hits 33.20 Percent Amid High Food Prices

ü  Nigeria: Prices of Garri, Akpu, Others Push Food Inflation to 40 Percent

ü  Kenya: Tea Worth Ksh2b Unsold As KTDA Reinstates Minimum Price On Older
Stocks

ü  Uganda: Besigye to Join City Traders in Tax Protest

ü  Kenya: Equity Bank Expands Money Transfer Services to 30 Countries

ü  Kenya: KQ, SAA Reopen Talks On Pan-African Airline After Takasto Deal
Failed

ü  Kenya Power Cuts Electricity Costs By 13.7pc for Domestic Users

ü  Kenya's Cost of Living to Drop Further On Lower Food, Fuel Prices

ü  Africa: Leaders Need to Break the Chokehold of Debt and Austerity. Our
Health Depends On It

ü  China economy grows faster than expected in first quarter

ü  Donald Trump's Truth Social shares drop to lowest since January

ü  Oil prices lower after Iran attack on Israel

ü  Flights cancelled and disrupted after Iran's attack on Israel

 


 

 


 <https://www.cloverleaf.co.zw/> Nigeria: Naira Surges Against Dollar, Hits
5-Month High

The Naira experienced a significant rally against the US Dollar, breaking
through critical resistance levels to trade below N1,000 in some segments of
the black market as of late Sunday.

 

This performance aligns with earlier predictions by Goldman Sachs and comes
amid heightened global geopolitical tensions.

 

"The Naira's current bullish momentum is projected to persist, potentially
pushing the exchange rate below N1000 per US dollar in the upcoming months,"
economists from the American investment bank, Goldman Sachs, commented.

 

This upturn in the Naira's value follows a period of volatility where it
suffered considerable devaluations since last June. Efforts by Nigerian
financial authorities, including successive interest rate hikes now pegged
at 24.75%, and strategic foreign exchange interventions have notably
contributed to this stabilization.

 

 

"The Central Bank of Nigeria's (CBN) aggressive monetary policy adjustments
and the implementation of new market strategies have been central to the
recovery of the Naira from its prior losses," a CBN spokesperson stated
during the latest Monetary Policy Committee (MPC) meeting.

 

Additionally, the geopolitical landscape has influenced market movements.
The recent Iranian strike on Israel spurred a flight to safety, which
bolstered the US dollar against other currencies.

 

However, the dollar steadied after initial gains, with Israeli ministers
indicating no immediate plans for retaliation, which somewhat eased market
fears.

 

Goldman Sachs had earlier adjusted its forecast in March, predicting that
the Naira would strengthen to N1200 per dollar by 2024. The firm cited
increased capital inflows and a series of policy initiatives aimed at
bringing stability to the foreign exchange market as key drivers behind this
optimistic outlook.

 

 

Finance Minister Wale Edun also unveiled plans for higher inflows of US
dollars, including the sale of foreign currency bonds in the second quarter.
This move is part of broader efforts to attract overseas capital with
high-yield short-term debt products.

 

Despite the rallying Naira and strategies to boost economic inflows,
Nigeria's gross foreign reserves have declined, even as global commodity
prices, particularly crude oil, continue to rise. Nigeria's oil grades are
currently trading at a premium over the ICE Brent benchmark, which could
potentially offset the negative fiscal impacts of reduced production
volumes.

 

"The ongoing geopolitical unrest in the Middle East and the anticipation of
further instability have had significant ripple effects on global markets,
influencing commodity prices and currency valuations alike," explained an
industry analyst.

 

- Leadership.

 

 

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

 

Gambians Express Frustration As All Ferries Shuttling the Banjul-Barra Route
Undergo Maintenance

Passengers who used the Banjul - Barra ferry crossing on daily basis have
over the weekend express their frustration as authorities at Gambia Ports
Authority said they have suspended their ferry service in this seaway.

 

The Management of the Gambia Ferry Services has on Friday 12th April 2024
issued a press release informing its customers that the Kanilai ferry has
been withdrawn from services for repair work with immediate effect.

 

The press release further indicated that all ferries are currently under
maintenance and there will be no ferry services across the Banjul and Barra
route until further notice. Meanwhile, travellers and vehicular operators in
particular, are advised to use the Senegambia Bridge.

 

 

"During this period of services closure, the management will be doing
everything possible to restore the Banjul-Barra ferry service as soon as
possible. The understanding of the public is highly solicited as these
repair works are geared towards providing safe and more reliable ferry
services," the press release stated.

 

Fatou Nyang a passenger, who lives in Barra and works in Banjul, wondered
how they are going to cope with this new development.

 

"How are we going to cope with this situation? Boats are not reliable means
of transport because sometimes you can stand for hours without having a boat
to cross," Nyang told this reporter.

 

Madam Nyang said since she started using the ferry services on daily basis,
this is the first instance that all ferries shuttling the route on a daily
basis have ceased operation at the same time.

 

"We cannot rely on boats to go to work in Banjul. Secondly, boat fares are
very expensive when compared to the ferries," she said.

 

Lamin Cham, a businessman who lives in Barra and sells at the Albert Market
in Banjul, said he used to close work late every day and join the last ferry
going to Barra.

 

"With this current situation I always close my shop by six and rush to the
ferry terminal in order to get a boat to cross to Barra. I cannot stay in
Banjul till late evening because the boats are not reliable means of
transportation," he said.

 

Abubacarr Secka, a driver said it will be a nightmare for commercial vehicle
drivers transporting passengers to Dakar to drive to Senegambia Bridge in
Farafenne and then go to Dakar.

 

"The government should fast track the maintenance of both farriers and bring
them back to service," he said.

 

Mr Secka said the authorities should not have allowed this situation to
happen in the first place because they were aware of the conditions of the
ferries, adding that they should have ensured that one of the ferries is in
operation.

 

Many people who spoke to this reporter at the Banjul ferry terminal express
similar frustrations. They urged the government to fast track the
maintenance of both farriers and make sure that they start operation as soon
as possible.

 

- Foroyaa.

 

 

Mozambique: Pirates Release Ship Hijacked in Mozambique Channel

Maputo — Somali pirates have released the Bangladeshi-flagged merchant
vessel "Abdullah', hijacked over a month ago, long with its 23 member crew -
but only after a ransom of five million US dollars was paid.

 

The European Union Naval Force (EU NavFor) in a statement on 15 April
confirmed the release, adding its Operation Atalanta was the first actor to
respond to the hijacking of the vessel on 12 March, when one Atalanta vessel
started shadowing the vessel.

 

The "Abullah' was sailing from Maputo to the United Arab Emirates, with a
cargo of coal.

 

The Reuters news agency quoted two pirates as saying the "Abdullah' was
released on Sunday after the ransom had been paid.

 

 

The ship's owner, the KSRM Group, said the vessel and its crew were freed
following negotiations. "We struck a deal with the pirates,' Mizanul Islam
of SR Shipping, the group's maritime arm, told Agence France Presse (AFP).

 

"We cannot say more about the money,' he added, but said all the crew are
safe and secure.

 

The ship has since resumed its journey to the UAE, escorted by two warships.

 

A Somali publication "Garowe Online' reported that at least eight pirates
were apprehended on the East Coast of Puntland moments after the "Abdullah'
was released.

 

"A high-ranking officer from Puntland Police Force informed Garowe Online
that they have apprehended eight members of the pirate group holding the
Bangladesh-flagged ship MV Abdullah. It has not been confirmed whether the
ransom money paid to the pirates was recovered during the operation,' the
publication reported.

 

Puntland is part of Somalia that declared itself an autonomous state in
1998. It says it wishes to be part of a federal Somalia, but does not
recognise the current Somali government.

 

 

 

Nigeria's Inflation Hits 33.20 Percent Amid High Food Prices

The food inflation rate in March 2024 quickened to 40.01 per cent on a
year-on-year basis

 

Nigeria's annual inflation rate rose to 33.20 per cent in March from 31.70
per cent in February, the National Bureau of Statistics (NBS) said on
Monday.

 

The statistics office said the March 2024 headline inflation rate increased
by 1.50 per cent compared to the February 2024 headline inflation rate.

 

On a year-on-year basis, the NBS said the headline inflation rate was 11.16
per cent points higher compared to the rate recorded in March 2023, which
was 22.04 per cent.

 

 

"This shows that the headline inflation rate (year-on-year basis) increased
in March 2024 when compared to the same month in the preceding year (i.e.,
March 2023).," it said.

 

Furthermore, the bureau said on a month-on-month basis, the headline
inflation rate in March 2024 was 3.02 per cent, which was 0.10 per cent
lower than the rate recorded in February 2024 (3.12 per cent).

 

This, it said, means that in March 2024, the rate of increase in the average
price level is less than the rate of increase in the average price level in
February 2024.

 

According to the report, the food inflation rate in March 2024 quickened to
40.01 per cent on a year-on-year basis, 15.56 per cent points higher than
the rate recorded in March 2023 (24.45 per cent).

 

In recent years, food prices have been on the rise across Nigeria. The
situation deteriorated due to the impact of government policies such as the
removal of subsidies on petrol, among others.

 

The upward trend in the prices of these staples and other products has
weakened the purchasing power of many citizens, making it difficult for many
households in the country to afford daily meals.

 

Nigeria's naira has, on several occasions, plunged to record lows across
both the official and unofficial markets amidst an increased forex demand
and a surge in the prices of goods and services across the country.

 

This prompted the Nigerian government to put measures and reforms in place
to safeguard the country's foreign exchange market and combat speculative
activities.

 

Earlier in April, the Central Bank of Nigeria (CBN) disclosed that it sold
$10,000 to each Bureau De Change operator at a rate of N1,101 per US dollar
to address the lingering price distortions affecting the naira exchange rate
in the forex markets.

 

 

This newspaper reported that the naira on Friday experienced huge
appreciation at the official market, trading at N1,142.38 to the dollar.

 

Data from the official trading platform of the FMDQ Exchange, which oversees
the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the
naira gained N88.23.

 

In its inflation report Monday, the NBS said the contributions of items on
the divisional year-on-year level to the increase in the headline index are
food & non-alcoholic beverages (17.20 per cent), housing, water,
electricity, gas & other fuel (5.56 per cent), clothing & footwear (2.54 per
cent), and transport (2.16 per cent),.

 

Others are furnishings & household equipment & maintenance (1.67 per cent),
education (1.31 per cent), health (1.00 per cent), miscellaneous goods &
services (0.55 per cent), restaurant & hotels (0.40 per cent), alcoholic
beverage, tobacco & kola (0.36 per cent), recreation & culture (0.23 per
cent) and communication (0.23 per cent).

 

The percentage change in the average CPI for the twelve months ending March
2024 over the average of the CPI for the previous twelve-month period was
27.13 per cent, showing a 6.76 per cent increase compared to 20.37 per cent
recorded in March 2023.

 

Food inflation

 

The food inflation rate in March 2024 was 40.01 per cent on a year-on-year
basis, 15.56 per cent points higher than the rate recorded in March 2023
(24.45 per cent).

 

The bureau said the rise in food inflation on a year-on-year basis was
caused by increases in prices of garri, millet, Akpu uncooked fermented
(which are under the bread and cereals class), yam tuber, water yam (under
potatoes, yam, and other tubers class), dried fish sardine, mudfish dried
(under fish class), palm oil, vegetable oil (under oil and fat), beef feet,
beef head, liver (under meat class), coconut, watermelon (under fruit
class), Lipton tea, bournvita, milo (under coffee, tea and cocoa class).

 

"On a month-on-month basis, the Food inflation rate in March 2024 was 3.62
per cent, which shows a 0.17 per cent decrease compared to the rate recorded
in February 2024 (3.79 per cent).

 

"The average annual rate of Food inflation for the twelve months ending
March 2024 over the previous twelve-month average was 31.40 per cent, which
was 8.69 per cent points increase from the average annual rate of change
recorded in March 2023 (22.72 per cent)," the report said.

 

- Premium Times.

 

 

 

 

Nigeria: Prices of Garri, Akpu, Others Push Food Inflation to 40 Percent

Nigeria's headline inflation rose to 33.20 percent, data from the National
Bureau of Statistics has shown.

 

In a report on Monday, the NBS said headline inflation rate, which was 31.70
percent in February, showed an increase of 1.50 percent points.

 

Also, food inflation increased to 40 percent with prices of garri, akpu,
water melon, among others cited as the reason for the increase.

 

It stated that on a year-on-year basis, the headline inflation rate was
11.16 percent points higher compared to the rate recorded in March 2023,
which was 22.04 percent.

 

 

"This shows that the headline inflation rate (year-on-year basis) increased
in the month of March 2024 when compared to the same month in the preceding
year (i.e. March 2023)."

 

It added that on a month-on-month basis, the headline inflation rate in
March 2024 was 3.02 percent, which was 0.10 percent lower than the rate
recorded in February 2024 (3.12 percent).

 

"This means that in the month of March 2024, the rate of increase in the
average price level is less than the rate of increase in the average price
level in February 2024," it said.

 

The NBS noted that the Food inflation rate in March 2024 was 40.01 percent
on a year-on-year basis, which was 15.56 percent points higher compared to
the rate recorded in March 2023 (24.45 percent).

 

"The rise in food inflation on a year-on-year basis was caused by increases
in prices of the following items garri, millet, akpu uncooked fermented
(which are under the bread and cereals class), yam tuber, water yam (under
potatoes, yam, and other tubers class), dried fish sadine, mudfish dried
(under fish class), palm oil, vegetable oil (under oil and fat), beef feet,
beef head, liver (under meat class), coconut, water melon (under fruit
class), lipton tea, Bournvita, Milo (under coffee, tea and cocoa class).

 

 

"On a month-on-month basis, the food inflation rate in March 2024 was 3.62
percent which shows a 0.17 percent decrease compared to the rate recorded in
February 2024 (3.79 percent).

 

"The fall in Food inflation on a month-on-month basis was caused by a fall
in the rate of increase in the average prices of guinea corn flour, plantain
flour etc (under bread and cereals class), yam, Irish Potatoe, Coco Yam
(under potatoes, yam & other tubers class), titus fish, mudfish dried (under
fish class), Lipton, Bournvita, Ovaltine (under coffee, tea and cocoa
class).

 

"The average annual rate of food inflation for the twelve months ending
March 2024 over the previous twelve-month average was 31.40 percent, which
was 8.69 percent points increase from the average annual rate of change
recorded in March 2023 (22.72 percent)," it added.

 

- Daily Trust.

 

 

 

 

Kenya: Tea Worth Ksh2b Unsold As KTDA Reinstates Minimum Price On Older
Stocks

Kenyan tea worth Ksh2.3 billion was withdrawn from the market in the latest
sale as the Kenya Tea Development Agency (KTDA) instructed brokers to sell
the beverage at the reserved price, resulting in traders rejecting millions
of kilos of the commodity offered for sale.

 

Buyers turned down at least 9.8 million kilogrammes of tea offered for
trading at the auction by KTDA in sale 15, citing a mismatch between price
and quality.

 

The amount of tea withdrawn represented 52 percent of the total commodity
offered at the Mombasa Tea Auction floor for sale.

 

During the sale, KTDA directed brokers to sell their tea at $2.43, the
government-set minimum price for smallholder farmers' commodity. In the
previous sale, the agency had instructed brokers to sell the beverage at the
best-offered bids.

 

 

"The previous week, KTDA had instructed brokers to sell the old teas at the
best-offered bids. However, last week, they imposed reserved prices on old
stocks, leading to significant withdrawals," said a tea broker who spoke to
Business Day Africa.

 

Last month, the agency initiated the release of aged tea stocks into the
market at prices below the government-mandated minimum, aiming to alleviate
warehouse congestion and boost liquidity.

 

Exceeding 70 million kilogrammes, the tea reserves within KTDA's warehouses
and facilities have remained stagnant due to their uncompetitive pricing,
stemming from the enforced minimum price at the auction.

 

Critics contend that anchoring the minimum price to production expenses
rather than the intrinsic value of tea was imprudent.

 

Furthermore, industry experts emphasise the impracticality of establishing a
uniform market price due to the varied quality of teas sourced from distinct
regions.

 

"Auction prices should reflect the inherent disparities in quality between
teas originating from the eastern and western regions of the Rift," said a
tea trader, highlighting the inequity perpetuated by the current pricing
structure.

 

Consequently, the inflexibility of the minimum price regime has prompted
buyers to favor alternative high-quality teas over KTDA offerings,
exacerbating the volume of tea left unsold at the auction.

 

- Business Day Africa.

 

 

 

Uganda: Besigye to Join City Traders in Tax Protest

Fresh from his western region consultations and then from sending off their
fallen activists in Teso, the opposition stalwart Kizza Besigye has dived
into the running city traders' strike protesting what he refers to as a bad
taxation regime.

 

"A Ugandan trader is like a cow that is being milked but no fed, they pay
VAT, withholding tax, import duties, occupation tax and copyright tax if
it's a hotel industry and may others but the collected funds is not
reflected in the needs of the community but pocketed by a few," Besigye
said.

 

"Traders should not call of the strike or honour any call to meet the
president without if their gradiences are not addressed "

 

To Besigye, who was addressing the media at his Katonga office on Monday,
the government deliberately over taxes small scale enterprises with the
intention to keep the population at a low end.

 

With political parties already embroiled in political differences, Besigye
believes double taxation being committed by the regime is an evil that every
patriotic Ugandan including those in NRM should unite and join him to fight
against.

 

"Activist in the NUP, DP, UPC and others should all join us in the struggle
to save Ugandan tax payers from the tax burden," Besigye said.

 

The traders have spent weeks long on strike protesting the taxman's
enforcement of the electronic receipt to determine applicable taxes.

 

Traders found dodging the new receipting system risks paying over Shs6
million in fines.

 

- Nile Post.

 

 

 

 

Kenya: Equity Bank Expands Money Transfer Services to 30 Countries

Nairobi — Equity Bank has expanded its money transfer services to over 30
countries through a new deal with Mastercard, a global payment platform.

 

Remittances are vital in sub-Saharan Africa, with a reported $53 billion
flowing into the region in 2022.

 

In Kenya, the Central Bank of Kenya reported $5.77 billion worth of foreign
currency inflows in 2022.

 

The collaboration aims to promote financial inclusion by providing faster,
more secure, and more cost-effective cross-border transactions through
Mastercard cross-border services.

 

"Providing innovative solutions that deliver the choice, security, and
flexibility that customers transacting from Kenya need and expect is a
factor we take pride in," said Mark Elliott, Division President for
Sub-Saharan Africa at Mastercard.

 

 

"Mastercard is delighted to collaborate with Equity Bank to make this level
of payment ingenuity a reality for Equity Bank customers, giving Mastercard
an opportunity to bring millions of people from underserved communities into
the financial and digital economy," Elliott added.

 

The new partnership offers cost-effective international transactions with no
landing fees, making it accessible and cost-effective for customers,
aligning with the evolving payment landscape.

 

Stakeholders, including senders, will benefit from reduced costs and secure
remittances through Mastercard's global brand and delivery network.

 

"This collaboration underscores our commitment to providing accessible
financial solutions that meet the evolving needs of our customers and
solidifies our role in fostering inclusive growth across the region," James
Mwangi, Group Managing Director and CEO of Equity Group Holdings Plc, said.

 

- Capital FM.

 

 

 

Kenya: KQ, SAA Reopen Talks On Pan-African Airline After Takasto Deal Failed

Kenya's national carrier and South Africa Airways (SAA) have reopened
discussions on the creation of a Pan-African Airline, following the
withdrawal of Takatso, an investment firm set to acquire a majority stake in
SAA.

 

Executives from Kenya Airways flew to South Africa last month at the
invitation of SAA to chart a new course and establish fresh timelines for
the long-anticipated airline's formation.

 

"We went to South Africa to chart a new path after Takatso's withdrawal. We
are commencing negotiations anew," stated a representative from Kenya
Airways.

 

 

Kenya Airways said it anticipates getting a clearer perspective on the
progress of the negotiations by year-end, aiming to achieve tangible
advancements in their plans.

 

The initiative, spearheaded by the Takatso Group over three years, aimed to
acquire a controlling interest in South Africa's national carrier, thereby
facilitating its revitalisation with renewed financial support.

 

Initially, the Takatso Aviation consortium, endorsed by the government as
the preferred partner, had secured approval to acquire a 51 percent stake in
SAA.

 

However, their surprise withdrawal last month has disrupted this trajectory,
with the South African Government citing a revised transaction structure as
the cause of the setback.

 

"The business valuation now stands at R1 billion, with the property valued
at approximately R5.5 billion. Consequently, any negotiations regarding this
transaction must consider the revised valuations," stated government
officials.

 

The envisioned Pan-African Airline, a collaborative initiative between Kenya
Airways and SAA, was slated for establishment this year. Nevertheless, Kenya
Airways had last month disclosed last week that the project faces
postponement as both airlines prioritize efforts to recapitalise.

 

The establishment of the airline had been delayed as the two prospective
alliance partners focused on recapitalisation.

 

This partnership aimed to leverage assets, enhance connectivity for
passengers and cargo, and make air travel more accessible through
competitive pricing and expanded route networks.

 

- Business Day Africa.

 

 

 

 

Kenya Power Cuts Electricity Costs By 13.7pc for Domestic Users

Nairobi — Kenyans will now enjoy cheaper electricity bills after Kenya Power
announced a 13.7 percent power cost cut starting this month.

 

The utility firm links the drop to the strengthening of the Kenyan shilling
against the American dollar as well as a decline in fuel prices.

 

According to the company, the fuel cost charge and foreign exchange
fluctuation adjustment, which comprise the key variable components of the
electricity bill, were reduced by 37.3 percent between March 2024 and April
2024.

 

For example, the fuel cost charge was reduced from Sh4.64 in March 2024 to
Sh3.26 in April 2024, and from a high of Sh4.93 in January 2024.

 

On the other hand, the forex adjustment charge was reduced from Sh3.68 in
March 2024 to Sh1.96 in April 2024 and from a high of Sh6.85 in January
2024.

 

"We are happy to note that the reduction has given reprieve to our customers
and we are optimistic that the prevailing macro-economic environment and the
improved hydrology, which enables us to dispatch less thermal power, will
sustain the benefit to our customers," Kenya Power Managing Director & CEO
Joseph Siror said.

 

A customer under the Domestic Customer 1 (DC1) tariff band (those consuming
less than 30 units per month of electricity) will pay Sh629 in April 2024
compared to Sh729 for similar units in March 2024, representing a 13.7
percent reduction.

 

Similarly, a customer under the Domestic Customer 2 (DC2) tariff (averaging
31-100 units per month) will pay Sh1,574 in April 2024 compared to Sh1,773
in March 2024, representing a 11.2 percent reduction.

 

Those under the Domestic Customer 3 (DC3) tariff band (averaging more than
100 units per month) will pay Sh3,728 in April 2024 compared to Sh4,127 in
March, representing a 9.7 percent reduction.

 

- Capital FM.

 

 

 

 

Kenya's Cost of Living to Drop Further On Lower Food, Fuel Prices

Kenya is poised for a sustained decline in inflation, propelled by a
consecutive four-month downturn in fuel and food prices alongside a robust
shilling, offering respite to consumers grappling with a soaring cost of
living.

 

The Energy and Petroleum Regulatory Authority effected reductions in the
price of super petrol by Ksh5, diesel by Ksh10, and kerosene by Ksh18.

 

In Nairobi, a litre of super petrol will now fetch 193.84, diesel Ksh180.38
per litre, and kerosene Ksh170.06 per litre.

 

The dip in fuel costs coincides with a notable decrease in other
commodities, mainly food, over recent months.

 

For instance, Kenya's staple meal, a two-kilo packet of flour, has plummeted
from a peak of Ksh230 to an average of Ksh140, with sugar seeing a decline
from Ksh430 to Ksh330 for the same quantity.

 

Given the significant portion of the inflation basket that food represents,
these developments hold substantial sway in shaping the overall cost of
living in the nation.

 

 

Data from the Kenya National Bureau of Statistics (KNBS) on consumer retail
prices reveals a downtrend in inflation to 5.7 percent in March from 6.7
percent a month earlier, mirroring the downward trajectory of food prices.

 

Further relief in the high cost of living is anticipated with the
strengthening of the shilling, currently trading at 130 against the dollar,
down from a previous high of Ksh160. This implies reduced expenses for
consumers on imports, as goods are expected to become more affordable.

 

The decreasing fuel costs are expected to have a ripple effect, with
manufacturers, power producers, and service providers anticipated to
integrate these cost savings, thus contributing to the ongoing inflation
downturn.

 

The reduction in fuel expenses is projected to extend to the electricity
sector, with bills expected to align with the decreased fuel costs, thereby
impacting the fuel cost charge, which holds a substantial share in
electricity billing.

 

The persistent challenge of the high cost of living has been a focal point
for President William Ruto's government, contending with public
dissatisfaction and demonstrations, witnessed last year led by the
opposition.

 

- Business Day Africa.

 

 

 

 

Africa: Leaders Need to Break the Chokehold of Debt and Austerity. Our
Health Depends On It

Washington DC — As leaders gather for the Spring Meetings of the IMF and
World Bank amid the cherry blossom trees of Washington, DC, there is some
good news to celebrate.

 

After three years of difficult negotiations within the G20 Common Framework
on Debt, with the support of the IMF, Zambia has finally secured serious
debt relief and restructuring with both government and private creditors,
which will help enable vital and urgent investments in health, education,
and social protection.

 

For too long, Zambia's plans for ending AIDS as a public health threat by
2030, and for realising crucial development needs, have been held back by
constraints in investment caused by the debt crisis. The debt relief and
restructuring that has been agreed at last gives the country a fighting
chance. All those who have facilitated this agreement have saved and
transformed lives.

 

 

The leaders gathering in Washington DC, including G20 Finance Ministers and
international financial officials, can and should do much more, however.
They can secure a much greater legacy than helping one country begin to
untie itself from debt distress whilst leaving many other countries choking.

 

The agreement with Zambia has shown that the debt crisis is not fate but is
a man-made situation which people can unmake. But so far, Zambia has been
the only country which has benefitted from the new debt framework.

 

Slow and opaque international negotiations have not resolved the crisis that
is leaving half of African economies either facing debt distress or at high
risk of doing so.

 

 

Sub-Saharan African countries' debt repayments have unaffordably high
interest rates: for years they have been paying rates that are between four
to eight times the rates that high income countries pay.

 

Sub-Saharan African countries are spending far more on debt servicing than
on health - indeed, half are paying three times more. Last year, in Angola,
Kenya, Malawi, Rwanda and Uganda, debt service obligations exceeded 50% of
government revenues.

 

The damage that fiscal constraints are causing to health security is not
only a moral outrage, but also dangerous for the whole world. In contrast,
coordinated significant debt restructuring and relief by leading creditor
countries, and by the investment firms based in those countries, will be
good for the whole world - facilitating health security, stability and
sustained prosperity.

 

Fiscal modelling demonstrates that the costs of inaction would be much
larger than the costs of action.It is deeply concerning, therefore, that
even at this time of polycrisis, some officials are continuing to pressure
countries to maintain fiscal restraints, or even to tie them tighter.
Continuing with austerity would be a grave mistake.

 

 

As United Nations Secretary-General António Guterres has highlighted, the
global financial system is perpetuating and exacerbating inequalities, and
is failing to provide a global safety net for developing countries.

 

Reform of the global financial architecture is urgent. This includes the
need for a stable and timely debt restructuring mechanism, and for increased
aid and sustainable and affordable concessional financing for low and
low-middle income countries. It includes also the need for global
coordinated action, and global rules, which will help advance fair taxation
and the tackling of tax evasion.

 

There is, rightly, a consensus that low- and middle-income countries need to
become increasingly fiscally self-reliant. The evidence is clear: achieving
this requires growing new avenues for countries' domestic revenue
collection.

 

Brazil, host of November's G20 meeting in Rio de Janeiro, has placed the
establishment of new taxes on the agenda as a way for countries to source
revenue that can be invested in health and other social priorities.

 

Needs include taxes on the wealth and on the capital gains of individuals
and companies to ensure a reduction in inequality, with revenues collected
redeployed for social priorities such as health, HIV, child welfare, gender
equality, and social protection.

 

Investing in health works. The extraordinary advances secured by the global
HIV response have proven what can be achieved. Since 2010, AIDS-related
deaths have declined by 51% worldwide. New HIV infections have fallen by
38%. And three quarters of the 39 million people living with HIV are on
antiretroviral treatment.

 

But right now, there is significant shortfall in the global investments
required to end AIDS as a global health threat by 2030. The US$ 20.8 billion
available for HIV programmes in low- and middle-income countries in 2022 was
2.6% less than in 2021, and well short of the US$ 29.3 billion needed by
2025. The final miles are the hardest, and need more investment, not less.

 

The world can end AIDS as a public health threat by 2030, be well-prepared
for the next pandemic, and overcome the world's dangerous health
inequalities. But to ensure sufficient and sustainable resources requires
leaders meeting in Washington DC need to be bold.

 

Now is the moment to frontload investment in health, education, and social
protection. Economic stability and health security depend on multilateral
coordinated action to drop debt, increase aid and concessional financing,
and facilitate progressive taxation.

 

Decisions that leaders take this year will help determine whether the world
successfully navigates the challenges of this decade and beyond. For the
health security of everyone, leaders need to break the chokehold of debt and
austerity, now.

 

Jaime Atienza is UNAIDS Director of Equitable Financing

 

IPS UN Bureau

 

Follow @IPSNewsUNBureau IPS.

 

 

China economy grows faster than expected in first quarter

China's economy made a stronger-than-expected start to the year, even as the
crisis in its property sector deepened.

 

According to official data, gross domestic product (GDP) expanded by 5.3% in
the first three months of 2024, compared to a year earlier.

 

That beat expectations the world's second largest economy could see growth
slow to 4.6% in the first quarter.

 

Last month, Beijing set an ambitious annual growth target for world's second
largest economy of "around 5%".

 

Data from the National Bureau of Statistics (NBS) also showed first quarter
retail sales growth, a key gauge of China's consumer confidence, fell to
3.1%.

 

"You cannot manufacture growth forever so we really need to see households
come to the party if China wants to hit that around 5% growth target," Harry
Murphy Cruise from Moody's Analytics told the BBC.

 

In the same period property investment fell 9.5%, highlighting the
challenges faced by China's real estate firms.

 

 

The figures came as China continues to struggle with an ongoing property
market crisis. According to the International Monetary Fund (IMF), the
sector accounts for around 20% of the economy.

 

The latest data also showed new home prices fell at the fastest pace for
more than eight years in March.

 

The real estate industry crisis has been highlighted in January when
property giant Evergrande was ordered to liquidate by a court in Hong Kong.

 

Rival developers Country Garden and Shimao have also been hit with a
winding-up petitions in the city.

 

Last week, credit ratings agency Fitch cut its outlook for China, citing
increasing risks to the country's finances as it faces economic challenges.

 

At the annual gathering of China's leaders in March officials said the
economy grew by 5.2% in 2023.

 

For decades the Chinese economy expanded at a stellar rate, with official
figures putting its GDP growing at an average of close to 10% a year.-bbc

 

 

 

 

Donald Trump's Truth Social shares drop to lowest since January

Donald Trump's social media company is eyeing plans to issue millions more
shares, just as the former president's hush-money criminal trial begins in
New York.

 

The move from Trump Media also marked a step toward letting insiders,
including Mr Trump, sell their holdings.The company has already been hit by
a wave of selling since official trading started after its formal stock
exchange debut in March.

 

Shares fell another 14% on Monday.

 

As Mr Trump sat quiet and motionless in the courtroom shares in the company
which runs the social media platform Truth Social slid to less than $28
apiece.

 

It debuted on the Nasdaq stock exchange last month, via a merger with
Digital World Acquisition Corp, a shell company that was created in 2021 to
find a firm to buy and make public.

 

The deal, which briefly sent the share price surging above $70, injected
about $200m into the company and has generated billions of dollars in paper
wealth for Mr Trump, who is the majority shareholder.

 

Will Truth Social solve Trump's money problems?

 

Mr Trump, who is currently running for re-election while facing numerous
legal battles, is currently barred from selling his shares until about
September.

 

In a regulatory filing, Trump Media said a potential 146.1 million shares
could be sold, including 114.8 million shares owned by Mr Trump.

 

It also notified investors of plans to issue roughly 21.5 million additional
shares in connection with warrants, which give the owner the right to shares
at a certain price. Trump Media said it expected to raise about $247m via
such sales, which are common after a public listing like Trump Media's.

 

The update, which had been expected, had been in the pipeline for some time.

 

"There are no new issuances of shares being disclosed for the first time in
the preliminary S-1 filed today. All categories of issuances were previously
disclosed in public filings prior to the shareholder vote for our merger,"
the company said in a statement.

 

Still, shares in the firm fell to their lowest levels since January after
the announcement.

 

Analysts say Trump Media shares remain over-valued compared with the size of
Truth Social, which attracted an estimated 7.7 million visits last month.
Its auditor has warned it is at risk of failure, after it reported less than
$5m (£4m) in sales and more than $50m (£40.1m) in losses in 2023.

 

 

Analysts have said appetite for Trump Media stock has been boosted by
small-time investors, rather than big Wall Street firms.

 

Their bets on the company caused a big spike in the price of Digital World
shares when the plan to buy Trump Media was first announced in 2021 and
again in January, as Mr Trump emerged as the leading Republican presidential
candidate.

 

In recent weeks, Mr Trump has sought to raise confidence in the company,
noting that Truth Social was "the primary way I get the word out and, for
better or worse, people want to hear what I have to say".

 

"If people who believe in putting America First and want to Make America
Great Again, support TRUTH, we will be your Voice like never before," he
urged his followers on the platform over the weekend.

 

"Think of this as a Movement, the Greatest Movement in the History of our
Country," he said.-bbc

 

 

 

Oil prices lower after Iran attack on Israel

Oil prices fell on Monday after Iran's reprisal attack on Israel over the
weekend.

 

Brent crude - a key benchmark for oil prices internationally - was lower but
still trading close to $90 a barrel.

 

Prices had already risen in expectation of action by Iran, with Brent crude
nearing a six-month high last week.

 

Analysts said the markets would be looking to see how the conflict could
affect global supply chains.

 

Oil price fluctuations can cause ripple effects across the world due to
countries being heavily reliant on the commodity, which is used to produce
fuels such as petrol and diesel. Fuel and energy prices have been a major
driver behind the higher cost of living worldwide in the past couple of
years.

 

 

When Russia invaded Ukraine in 2022, oil prices soared to $120 a barrel over
supply fears as western nations imposed sanctions on Russia, one of the
world's major oil exporters. The jump led to not only higher prices at the
pumps, but also countless other goods as businesses adjusted their prices to
cover higher costs.

 

Analysts said Israel's reaction to the attack would be key for global
markets in the days and weeks ahead.

 

Israeli Defence Minister Yoav Gallant has said the confrontation with Iran
is "not over yet".

 

His comments came after Iran launched drones and missiles towards Israel at
the weekend after vowing retaliation for an attack on its consulate in the
Syrian capital Damascus on 1 April. Israel has not said it carried out the
consulate strike, but is widely believed to have been behind it.

 

Why has Iran attacked Israel?

What was in wave of Iranian attacks and how were they thwarted?

 

At the end of last week, the price of Brent crude touched $92.18 a barrel,
the highest since October, but on Monday it fell back to around $89.50.

 

The price of gold - often seen as a safe investment at times of uncertainty
- also dropped.

 

After hitting a record high of $2,431.29 an ounce on Friday, gold fell back
to $2,332.97 on Monday.

 

Energy analyst Vandana Hari said the fall in the price of oil meant
"clearly, the oil market does not see the need to factor in any additional
supply threat at this point".

 

But Peter McGuire from trading platform XM.com said he expected the energy
market to be volatile and predicted that oil prices would surge if Israel
responded strongly to Iran's move.

 

 

However, April LaRusse, head of investment at Insight Investment, said it
was likely that markets would "trade sideways until we have more
information".

 

"Unfortunately this situation in the Middle East has been going on for some
time and the longer you have a bit of geo-political tension going on the
more markets wait to see and there isn't sort of a panic reaction as the
first move," she told the BBC's Today programme.

 

Share markets in the Asia-Pacific region slipped on Monday as investors
weighed the impact of the attack. The UK's FTSE 100 share index also fell
marginally.

 

Russ Mould, investment director at investment firm AJ Bell, said the markets
had "started the week with relative calm".

 

However, he said there was a "continuing nervousness among investors".

 

 

"The situation remains fraught and, beyond the geopolitical and humanitarian
implications, a more widespread conflict in the Middle East could see energy
prices surge and unpick central banks' careful efforts to bring down
inflation," he added.

 

Iran is the seventh largest oil producer in the world, according to the US
Energy Information Administration, and the third-largest member of the Opec
oil producers' cartel.

 

Analysts say that a key issue for the oil price going forward is whether
shipping through the Strait of Hormuz will be affected.

 

The Strait - which is between Oman and Iran - is a crucial shipping route,
as about 20% of the world's total oil supply passes through it.

 

Opec members Saudi Arabia, Iran, the UAE, Kuwait and Iraq send most of the
oil they export through the Strait.

 

On Saturday, Iran seized a commercial ship with links to Israel as it passed
through the Strait of Hormuz.-bbc

 

 

 

 

Flights cancelled and disrupted after Iran's attack on Israel

Airline passengers are facing cancellations or disruption to flights to
Israel and surrounding countries after Iran's airstrikes at the weekend.

 

EasyJet has suspended flights to and from Tel Aviv up to and including
Sunday, 21 April.

 

Wizz Air said it would resume journeys to Israel on Tuesday, 16 April after
stopping flights to Tel Aviv on Sunday and Monday.

 

However, it warned: "Passengers may experience some schedule changes."

 

Wizz Air said that it was "closely monitoring the situation with the
relevant authorities and keeping its passengers informed of all schedule
changes".

 

 

"All passengers affected by the schedule changes will be provided with
rebooking or refund options," it added.

 

Israel closed its airspace on Saturday evening after Iran launched its
first-ever direct assault on the country. Iran launched drones and missiles
towards Israel in retaliation for a strike on Tehran's consulate in Damascus
on 1 April, which killed a number of senior Iranian commanders.

 

Israel has not said it carried out the consulate strike, but is widely
believed to have been behind it.

 

Israel reopened its airspace early on Sunday morning as did Jordan, Iraq and
Lebanon, which had stopped flights for a period.

 

German airline group Lufthansa said that it had suspended flights to and
from Tel Aviv, Erbil and Amman up to and including Monday, but said they
would re-start on Tuesday.

 

However, it said that flights to Beirut and Tehran would remain suspended
until at least 18 April.

 

A spokesperson said: "The Lufthansa Group had already decided on Friday, 12
April, to fly around Iranian airspace up to and including Thursday, 18
April, and thus temporarily suspend flights to Tehran."

 

 

Meanwhile, KLM cancelled all flights to and from Tel Aviv until Tuesday.

 

Re-routed flights

Other airlines are re-routing their flights which could add time to
journeys. Australia's Qantas said its planes are changing course to avoid
Iran's airspace.

 

Virgin Atlantic said: "We are not currently overflying Iraq, Iran, or
Israel, but we continue to monitor the situation for any potential impact on
our operations.

 

"The safety and security of our customers and people is paramount and always
will be. We apologise for any inconvenience caused to customers by slightly
longer flight times."

 

The airline stopped flying to Israel last year but a spokesperson said it
was aiming to resume journeys in September.

 

 

British Airways said there would be a flight to Tel Aviv on Monday, but
added it was keeping the situation under review.

 

The UK flag carrier, which is owned by International Airlines Group (IAG),
restarted flights to Israel earlier this month after suspending journeys
last October.

 

It had been operating four flights a week to Israel since the beginning of
April. Planes stop at Larnaca in Cyprus where there is a crew change to
avoid staff staying overnight in Tel Aviv. The flights then operate non-stop
from Tel Aviv to the UK.

 

Iberia Express, also owned by IAG, cancelled flights to Tel Aviv on Sunday
and Monday.

 

Finnair said that it had suspended operations over Iranian airspace until
further notice. Flights from Doha will re-route over Egypt which, a
spokesperson said, would result in delays of a "few minutes".

 

 

The European Union Aviation Safety Agency (EASA) reiterated its previous
guidance to airlines to use caution in Israeli and Iranian airspace.

 

"The European Commission and EASA will continue to closely monitor the
situation to assess any potential safety risks for EU aircraft operators and
be ready to act as appropriate," it said.

 

Qatar Airways said it had resumed flights to Iran, flying to Tehran,
Mashhad, Shiraz and Isfahan. "The safety and security of our passengers
remains our top priority," it said.

 

Banner saying 'Get in touch'

Have your flights been affected because of concerns raised here? You can get
in touch by emailing haveyoursay at bbc.co.uk.-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

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www.facebook.com/BullsBearsZimbabwe



 

 

 


 

INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

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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