Major International Business Headlines Brief::: 01 August 2024

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Major International Business Headlines Brief:::  01 August 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Africa: Biden Administration Wants 'Modernization, Re-authorization' of
U.S.-Africa Trade

ü  Nigeria Under Cost of Living Pressure - 8 Essential Reads On Rising
Tensions

ü  Kenya: Can Kenya's Gen Z Lead an African Agriculture Revolution?

ü  South Africa: We Asked Cape Town's Transport Boss About the Future of
Passenger Rail in the City

ü  Kenya: Debt and the Gen Z Protests - the Moral Economy of the African
Crowd

ü  Ghana: Demand for Dollar to Increase As Importers Prepare for Christmas
Festivities

ü  Uganda: Museveni Engages Standard Chartered Bank On Funding Key Projects

ü  Nigerian Govt Grounds Arik's Operations

ü  Nigeria: Dangote Refinery - for Love of Country, Beyond Profit and
Passion

ü  Kenya's First Shariah-Compliant 'Linzi Sukuk' Bond Start Trading At NSE

ü  Nigeria: $2.5m Debt - Local Airfare May Increase As Federal Govt Grounds
Arik Air

ü  Nigeria Records 1.6m Oil Production Daily - NNPCL

ü  CrowdStrike sued by shareholders over global outage

ü  Uber strikes EV deal with Chinese Tesla rival BYD

ü  Turbulence takes instant noodles off Korean Air menu

 


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Africa: Biden Administration Wants 'Modernization, Re-authorization' of
U.S.-Africa Trade

Monrovia — The administration of U.S. President Joe Biden has expressed its
continued commitment to the African Growth and Opportunity Act, the U.S.
program for sub-Saharan nations to access American markets with thousands of
products from the continent. The commitment, made at the 21st AGOA Forum in
Washington D.C. earlier this month, is the latest attempt to renew the U.S.
legislation that has bolstered trade relations with Africa.

 

"We also discussed opportunities to modernize the Agoa program to realize
its full potential as a tool for development," Assistant U.S. Trade
Representative for Africa Constance Hamilton said during an online briefing
on Monday. Hamilton used the occasion to call for U.S. and AGOA partners to
work together to promote "stronger, high-standard" investment opportunities,
while also reaffirming the American President's "strong support" for the
"modernization and the re-authorization" of the program.

 

 

AGOA was enacted in 2000 as a major U.S. policy instrument to reinforce its
economic engagement with Africa. Products - such as African fabrics and
textiles - from eligible countries are allowed duty-free in U.S. markets,
promoting economic growth on the continent. Participants at the just-ended
forum, held under the theme, "Beyond 2025: Re-imagining AGOA for an
Inclusive, Sustainable and Prosperous Tomorrow",  called on U.S. lawmakers
to further extend the AGOA program which comes to an end next year when the
10-year extension granted by Congress in 2015 comes to an end.

 

Although AGOA remains an important instrument for trade relations between
both regions of the world, the U.S. Deputy Assistant Secretary for African
Affairs, Joy Basu, was keen to stress during Monday's briefing that there
are many other programs the U.S. Govt uses in its relations with Africa that
work in a "symbiotic way" with AGOA, "which were also featured very
prominently at our forum".

 

 

Basu spoke of the range of "tools" at the U.S. disposal, including at the
State Department, the U.S. Trade Relations Office,  USAID, as well as
Prosper Africa (another U.S. govt initiative also focused on trade and
investment relations with Africa) that enhance not just economic activity on
the continent, "but to really strengthen the partnership between the U.S.
and Africa".

 

On how the U.S. is working with partner nations to ensure more utilization
of the AGOA programs, Basu said the State Department enhanced its focus on
"commercial diplomacy", by empowering U.S. embassies to work directly with
the business community in their host countries to create awareness of AGOA
benefits, "but also that they are reaching back to Washington to help those
companies produce higher-quality products at greater quantities". She said
more than 100 individuals have been hired across eligible countries to offer
"targeted advisory services" for African companies on their AGOA-related
questions.

 

On the lingering issue of removing barriers in the U.S. market to allow
citrus fruits from South Africa, including the parts of the country that
have been excluded due to the "sanitary and phytosanitary" concerns, U.S.
Assistant U.S. Trade Representative Hamilton said the U.S. Department of
Agriculture is working with its South African counterpart to resolve any
outstanding issue, a reference to recent hurdles with the free trade
agreement between the two nations that have hampered the multi-million
dollar industry.

 

Last week's forum brought together senior government officials from across
the U.S. Government and AGOA-eligible countries, and representatives from
key regional economic organizations, labor, civil society, and the private
sector. The gathering meant stakeholders could evaluate the program's
successes and shortcomings. Analysts say some of the 32- eligible countries,
including South Africa, were seeking to repair their relations with the U.S.
which has "faltered" in the last few years.

 

 

 

 

Nigeria Under Cost of Living Pressure - 8 Essential Reads On Rising Tensions

In recent times, Nigeria, Africa's largest democracy, has been under intense
pressure.

 

Assailed by rising inflation, food insecurity and the rising cost of fuel
and energy, Nigerians have had to endure diminished purchasing power, hunger
and youth unrest.

 

These factors have led to agitations by various segments of society,
including demands for higher wages by government workers.

 

At The Conversation Africa, we have been working with academic experts to
gain insights into the issues troubling Nigeria and Nigerians. Here are
eight essential reads that we have published on the developments in Nigeria.

 

Fuel subsidy removed

 

In one of his first official acts as Nigeria's president, Bola Tinubu
announced the complete removal of fuel subsidies. It shouldn't have come as
a surprise, as all leading candidates in the presidential election had
promised to end what was considered a major drain on the country's
resources. But as Stephen Onyeiwu explains, the devil in this instance might
be in the approach.

 

 

Read more: Nigeria's fuel subsidy removal was too sudden: why a gradual
approach would have been better

 

Workers demand more

 

With fuel subsidies gone and inflation biting hard, the Nigerian workers'
union naturally demanded higher wages. This led to tension and strike
action. The Nigerian government ultimately increased the national minimum
wage to N70,000 naira (US$42.14) a month. Stephen Onyeiwu argues that this
was not going to solve any problem for the Nigerian worker.

 

Read more: Nigeria's minimum wage has never protected workers from poverty:
here's why

 

Inflation defies global logic

 

The Nigerian government continues to try different approaches to solve the
problem of rising inflation and its impact on the purchasing power of
citizens. Curiously, some strategies that worked in other parts of the world
appear to have failed in Nigeria. Stephen Onyeiwu outlines how Nigeria's
inflation is a product of multiple factors.

 

Read more: Inflation in Nigeria is still climbing while it has slowed
globally: here's why

 

Government declares a state of emergency

 

As food price increases continued - and an estimated 25 million people faced
hunger - President Bola Tinubu declared a state of emergency on food
insecurity. Stephen Onyeiwu expressed doubts about the efficacy of this
approach, arguing that Nigeria's food inflation requires a bold and well
articulated strategy to transform agriculture and rural life.

 

Read more: Nigeria's food insecurity: declaring a state of emergency isn't a
real solution - here's what is

 

 

Hunger ravages children

 

In the midst of rising fuel costs, food inflation and food insecurity,
Nigerian children are experiencing severe food poverty. Unicef, the UN
agency for children, reported that 11 million Nigerian children were
affected. Blessing Akombi-Inyang warns that affected children are at risk of
stunted growth and development, increased susceptibility to diseases and
higher mortality rates.

 

Read more: 11 million Nigerian children are going hungry: how this hurts
their health and what needs to be done

 

Deflecting attention

 

Confronted with economic challenges, the Nigerian government had a moment to
spare for changing the country's national anthem. The government decided to
replace an anthem it adopted in 1978 with an old one that was originally
adopted for official use in 1960. The bill was rushed through the National
Assembly in a few days. Samuel Oyewole thinks this was nothing but an
attempt to deflect attention from the real issues.

 

Read more: Nigeria's national anthem change was a tactic to distract
attention from the country's real problems -- political analyst

 

Corruption is the real culprit

 

Nigeria may be Africa's largest democracy, but that is simply in population
size. In terms of the real values of democracy, including good governance,
Nigeria appears to be lagging. Fidelis Allen chalks this down to corruption
and lack of welfare policies.

 

Read more: Nigeria has a democracy deficit -- corruption and a lack of
welfare policies are to blame

 

Nigeria's young population offers potential

 

Nigeria's population was estimated to be around 206 million in 2020. The
country is easily the most populous in Africa. And it has one of the largest
youth populations in the world. With a median age of 18.1 years, 70% of
Nigeria's people are under 30 and 42% are under 15. Akanni Ibukun Akinyemi
and Jacob Wale Mobolaji write that - if well managed - the size and
youthfulness of the population offer great potential to expand Nigeria's
capacity as the regional economic hub of Africa. But a large population of
young people with limited opportunities is an additional social pressure.

 

 

 

 

 

 

Kenya: Can Kenya's Gen Z Lead an African Agriculture Revolution?

Urbana, Illinois, Us — Kenyan Gen Z recently led a series of historic
protests that resulted in Kenya's President rejecting the Finance Bill 2023
and dissolving his cabinet. These protests are inspiring a wave of change,
revolutions, and optimism in Kenya and the African Continent.

 

Importantly, these protests present Kenyans with a chance to reflect on
governance and other fundamental issues including food insecurity and
hunger, youth unemployment and an agricultural sector that is yet to deliver
for Kenyans and the African continent.

 

The agricultural sector, that is a source of livelihood for over 70% of
African citizens if tapped upon by Gen Zs can offer a crucial part of the
solution to this dilemma.

 

For one, as a sector, agriculture provides multiple avenues for Gen Zs and
youth to tap in- from the production all the way to marketing agricultural
products to the consumers.

 

Further, according to the African Development Bank, and The World Bank this
sector is projected to be worth around one trillion dollars by 2030, with
opportunities at every stage of the agricultural value chain.

 

 

Gen Zs possess the energy and creativity needed to revolutionize African
agricultural sector. They have college degrees, are tech-savvy,
purpose-driven and entrepreneurial

 

At the same time, according to the world bank's "Unlocking Africa's
Agricultural Potential" report, there are enormous opportunities stemming
from the several areas where the sector is currently lagging.

 

These include the gap between regional demand and supply, the low adoption
of irrigation technologies and climate-smart farming practices, limited use
of inputs and new technologies including precision technologies, ranging
from remote sensing platforms, use of sensors and drones, automated
mechanical weeders drones, satellite powered weather stations, soil health
determination and monitoring tools and artificial intelligence.

 

 

Gen Z and the youth can view these as opportunities that can be tapped on
and leveraged to bring upon this agricultural revolution.

 

But to tap onto these opportunities presented by the agricultural sector
value chain and to transform the sector into a high-technology powerhouse of
innovation and a global food powerhouse, Gen Z will need to access financial
capital and other investments.

 

Governments in African countries, including Kenya and other credible
development funding agencies such as USAID, The Rockefeller foundation, and
the African Development Bank, must finance entrepreneurial efforts and
agriculture-focused startups launched by Gen Zs.

 

Indeed, Kenya's and Africa's Gen Zs have the potential to lead the
much-needed Africa's agricultural revolution that will see Kenya and other
African countries produce abundant, safe and healthy food that will not only
meet the continent's food needs, but also be of such taste, class and
distinction that the whole world will want it.

 

Gen Zs possess the energy and creativity needed to revolutionize African
agricultural sector. They have college degrees, are tech-savvy,
purpose-driven and entrepreneurial.

 

Time is ripe to tap on this youthful Gen Z generation and ensure that they
are supported financially and with the knowledge they need to lead the
much-needed African agriculture revolution. It will do more than produce
food. It will create jobs, wealth and bring the much-needed makeover of the
agricultural sector in Kenya and Africa.-IPS.

 

 

 

 

South Africa: We Asked Cape Town's Transport Boss About the Future of
Passenger Rail in the City

Rail forms the backbone of public transport in Cape Town, but it has been
broken for a decade under PRASA's management.

Government policy allowing passenger rail to managed by capable metropolitan
municipalities - devolved from PRASA - was adopted two years ago.

The City's push to move forward with devolution has so far been stonewalled
by the national Department of Transport.

 

The newly appointed Minister of Transport, Barbara Creecy, has been
"incredibly responsive" to the City of Cape Town's request to discuss
shifting the management of Metrorail from PRASA to the municipality.

 

Mayco Member for Urban Mobility Roberto Quintas says communication with the
new minister so far consisted of "a few WhatsApp chats" and was informal,
but he was confident Creecy would "be a new broom".

 

"I'm confident that serious inroads can be made, with many things ...
including our account-based ticketing, including the rail devolution
strategy," said Quintas during an exclusive interview in his Civic Centre
office. (Account-based ticketing allows customers to use a debit card to get
a ticket.)

 

The May 2022 gazetting of the White Paper on National Rail Policy, gazetted
in May 2022, allows for capable municipalities to manage rail networks in
their city. But previous transport ministers have stonewalled the City's
attempts to develop a rail devolution strategy.

 

 

In August last year, Mayor Geordin Hill-Lewis threatened to lodge an
intergovernmental dispute against PRASA after numerous unsuccessful attempts
to negotiate a Service Level Agreement (SLA) with PRASA over the running of
Metrorail, which is the rail passenger service in Cape Town and to
surrounding areas such as Stellenbosch and Wellington.

 

It appeared Hill-Lewis's threat did shift attitudes. Quintas said City of
Cape Town officials were given more access to the national department's
devolution planning and strategy committee meetings. "Our officials were
made to feel a lot more welcome and included ... but we're still quite
frankly very much outsiders on it."

 

In the meantime, and with no input from the national Department of Transport
or PRASA, the City of Cape Town had pressed on with their own feasibility
study for the devolution of rail, he said.

 

The study has modelled various scenarios, said Quintas, ranging from doing
nothing, to completely managing rail in the city and surrounding areas
without any funding or subsidy - a situation which would potentially
bankrupt the City.

 

 

While the lack of information from the national transport department and
PRASA meant the study is happening "in a vacuum", the experts conducting it
"know what to look for and where to look for it".

 

He said the study was about 70% complete and would be put before council for
approval at the end of this year or early next year, before being presented
to the national transport department.

 

Feasibility study

 

The scenarios the City are investigating include public private
partnerships, working with PRASA, replacing PRASA, or creating a separate
entity involving the City, PRASA, and the Western Cape Government.

 

Some scenarios were more likely than others, but Quintas stressed the City
was "really working in a spirit of cooperation".

 

"We have no intention of a hostile takeover," said Quintas. "We believe in
partnerships, between other spheres of government, organs of state, and the
private sector."

 

Quintas would not be drawn on the contents of the City's study, but he did
provide some clues as to what it might contain.

 

He said globally, in cities with functioning passenger rail, the
municipality was the planning and management authority, but not necessarily
the operator.

 

In many cases, rail was operated by a private company which was subsidised
by the state. Such international transport operators "could establish a
presence here" provided they met transformation requirements, "to do what
they do best, which is run trains on time in a safe and reliable manner".
Quintas said he was not sure a government was the right entity to run an
efficient train service. A partnership with a private sector player seemed
to be the City's preference. Although private companies exist to make a
profit, government subsidies would keep ticket prices affordable, he said.

 

It seemed the MyCiTi bus was at least partly being used for the City's rail
devolution study, as an example of a public-private partnership.

 

"We subsidise the operations of the MyCiTi bus service through 5% of rates
... And Vehicle Operating Companies run the service, and your municipality
is a regulatory entity." However, he said MyCiTi was unusual in that the
City was "both, administrator, and operator to a degree".

 

"Considering it is a subsidised service run largely by a public private
partnership, it potentially offers a model for Cape Town's rail devolution
strategy."

 

A working passenger rail service is better for the taxi industry

 

 

Quintas said that he would like to see the taxi industry working with the
City to provide feeder services to rail and MyCiTi trunk routes.

 

"We've had one very brief eagle-eye discussion with Santaco about the fact
that we are firmly of the opinion they would actually make more money with
the trains running."

 

Taxis were currently inching along the N1 and N2 during peak traffic, with a
set number of passengers until they got to their destination at the taxi
rank. "Then have to turn around, race to get back to pick up another load
and then sit in traffic again."

 

The taxis could be making numerous short journeys with a high passenger
turnover, picking up people and dropping them off at the nearest train or
MyCiTi station, from which they would continue their journey to or from the
city. "Devolution would naturally want to include every component of the
transport ecosystem, in which the taxis play an essential part."

 

Service Level Agreement

 

Quintas said the City had been trying to get a Service Level Agreement (SLA)
developed and signed with PRASA so that each entity could identify and
honour their responsibilities. He said PRASA had agreed to work toward a
Memorandum of Understanding, but this was not legally enforceable, unlike an
SLA.

 

"I can understand their hesitation to sign an SLA given the colossal
challenges they're facing," he said, as the rail infrastructure had been
steadily declining from at least 2015, with the Covid period resulting in an
"absolute decline to the point of scuttling the rail service".

 

While PRASA was slowly improving the service, with extra trains on the
Southern Line running more regularly, and efforts being made to re-establish
the crucial Central Line, it still was not reliable enough to encourage
people who owned cars to rather use the train.

 

"All we care about is rail working. ... If it was working under PRASA, we
could get on with what we need to do."

 

But negotiations for an SLA were "back on track", and with PRASA CEO Hishaam
Emeran, there was "no issue with cooperation". However, PRASA could only do
what the national transport department allowed them to do, said Quintas.
Creecy's cooperation was thus vital, and her responsiveness and willingness
to meet once she was back in Cape Town provided hope, he said. And once the
City's feasibility study for rail devolution was published, it could perhaps
provide a blueprint that other cities could adapt to their unique
requirements.

 

"We might see some movement toward the end of this year, maybe next year
with the national government coming to the party."

 

"Our objective is simple: to get passenger rail back up and running in the
quickest possible way, so that it can become once again a reliable form of
mass public transport. It needs to be a mass people mover at really
affordable prices."-GroundUp.

 

 

 

 

Kenya: Debt and the Gen Z Protests - the Moral Economy of the African Crowd

A generation after the 1980s debt crisis triggered the rebirth of democracy
on the continent, will Kenya's youthful idealists spark a pan-African
revolt?

 

The protests in Kenya mark a turning point in Kenya's, perhaps even
Africa's, political trajectory. Changes were already apparent in Kenya's
last elections, in which the William Ruto-led Kenya Kwanza campaign inserted
a class element that disrupted decades of elite pacts that had been
underpinned by ethnic-based voting. The tax protests take this a step
further, giving voice to those who have felt ignored and disenfranchised by
the government's decisions. Now the crowd, through their protests, have
exerted an influence beyond the traditional patronage networks. How did this
happen? Will it have a lasting impact? And will it spread to other African
countries?

 

 

In 1971, the British historian E. P. Thompson published an article titled
'The Moral Economy of the English Crowd in the 18th Century'. It argued that
the riots, especially bread riots, that plagued 18th century British
politics reflected not so much the disorder of agitators, looters and
hooligans, as contemporary politicians liked to paint them, but the attempt
by ordinary poor people to enforce the laws and customs that protected their
livelihoods and made life affordable for them. Their targets were traders
and magistrates who ignored the rules for their own profit. The state
nevertheless saw them as a threat and responded with repression. It took
decades for the protesters to organise themselves politically and campaign
successfully for the vote as a more effective way for their voice to be
heard.

 

The recent Kenyan protests were linked to similar concerns, in this case to
rising prices caused by tax increases, but with one big difference: it was
not just the poor protesting but the middle classes, the mobile
phone-owning, digitally-mobilised youth of Gen Z. This is much more
politically threatening to the status quo.

 

While the immediate target was to rescind the proposed tax increases that
would have impacted immediately on the cost of living for all Kenyans, the
protests were focused as much on the endemic corruption amongst the
political and business elite, including Ruto's immediate circle, as on the
IMF, whose 2021 $2.3 billion bailout package was predicated on draconian tax
measures and subsidy withdrawals to pay off the accumulated debts of the
past. As ordinary citizens reeled from the cost-of-living crisis that
predictably followed, the elite's affluent lifestyle, flaunted on social
media and impervious to the tax hikes, simply rubbed salt in the wound.

 

 

Above all, protesters were making the point that the taxes proposed in the
budget were unfair. Not only were they retrogressive, impacting more heavily
on the poor, but they were also designed to raise money to repay loans from
which the elite had grown fat and from which the middle and lower classes
had derived little tangible benefit. Sure, there was now the Standard Gauge
Railway from Mombasa to a place called Duka Moja, a very expensive white
elephant that neither provided them with jobs nor helped them cover the
rising cost of living.

 

President Ruto initially condemned the protests as the 'treasonous' actions
of 'criminal' elements and sent in the army to 'restore order', killing some
39 protesters in the process. There is still argument over whether the
looting of shops and burning of the Parliament building was caused by hired
vandals brought in to discredit the protests and provide a justification for
repression, or by some protesters simply expressing their anger or taking
advantage of the situation. In practice, it doesn't matter: the damage was
done, and the country was shocked.

 

Ruto is finding out that in a society with a degree of accountability,
protest that deteriorates into disorder is what Thompson calls a 'social
calamity': it destroys existing social and political relations on which
political stability is built. Under an authoritarian government, those in
power have little compunction in deploying force to repress dissent: they
rule by fear, and this simply reinforces the intimidation of society.
Opposition leaders and dissidents can be rounded up, beaten and imprisoned
or killed without it threatening their dominance.

 

But where government is by consent, the authorities need to protect their
legitimacy. The question is, whose consent? Kenya is a democracy, and Ruto
became president in an election in 2022 declared adequately free and fair.
The budget was approved by a democratically-elected Parliament. And yet
people still took to the streets in protest.

 

As Peter Lockwood has argued, Kenyan politics appears to be moving away from
ethnically-based voting towards interest-based voting. Ruto's success among
Kikuyu voters was based partly on his appeal to the 'hustlers': the poor,
the street vendors, the disadvantaged who wanted to believe he would help
them. But it was also based on their disenchantment with Uhuru Kenyatta's
'elite capitalism' and Kenya's patron-client politics (neo-patrimonialism
for political scientists), in which political support for the president buys
access to lucrative business opportunities. It is worth pointing out that in
the 2022 elections, eight million eligible voters did not vote - a figure
bigger than the number who voted for Ruto - suggesting a profound
disenchantment with the political establishment. In addition, close to four
million more young Kenyans simply refused to register as voters, suggesting
something of a collective boycott against an electoral system in which costs
incurred during the campaigns, not least via voter bribery, were more than
offset by salaries, perks and bribes in Parliament.

 

Where a political system is sewn up through patronage, the only way for
those outside the system to make their voices heard is in the street.

 

 

What fuelled the protests of the crowds in Nairobi and throughout the
country was that Ruto had not changed this political process but simply
shifted the benefit to his friends and political allies. Not just the
hustlers but Kenya's middle classes are suffering from the inflation that
debt-fuelled spending and the falling shilling have brought. They see no
reason to suffer higher taxes to pay off the debts that were accumulated
without their consent, and which are against their objective interests. Ruto
had done little to prepare the political ground for his debt strategy -
either through the tax-and-pay approach approved by the IMF or the
cut-and-pay policy he now proposes.

 

The imprudent borrowing and incompetent investment by the previous
government (in which Ruto was Deputy President) was the cause of the debt
crisis that now dominates budget policy. To better informed observers, the
international financial system is just as complicit in it. The IMF was deaf
to the pleas of activists to deny the Kenyatta government a bailout. And
once again, its debt repayment package not only victimises ordinary Kenyans,
but going by the failure of similar reforms in the 1990s, it is medicine
that could well prove more harmful than the cure.

 

Being forced first to withdraw the budget and now to restructure his whole
cabinet shows that Ruto has registered the need to re-establish his
legitimacy by bringing in a wider range of political forces to the
government. But until the policy issue is debated honestly in public, Ruto's
government will remain vulnerable to popular protest, regardless of whoever
is co-opted into the cabinet. The moral authority of the crowd has been
asserted: it will not disappear, even if it is no longer on the street.

 

Kenya is not alone in facing this kind of economic crunch over debt, but
others have handled it differently. Ghana and Zambia were unable to avoid
defaulting on debt payments, and could not restructure their debt
obligations to meet the unaffordable repayments that would involve
drastically raising taxes or cutting spending. The cost has been exclusion
from global capital markets and weakened currencies - but they have so far
avoided riots. The issue is already a critical one in the Ghanaian elections
due in December 2024, so the debate there cannot be avoided.

 

Senegal's elections earlier this year posed a political rather than economic
challenge, but it was as much the people on the street as the phone calls
from global leaders that finally persuaded Macky Sall to allow the elections
to go ahead and hand over the Presidency peacefully to opposition leader,
Diomaye Faye.

 

The African country most vulnerable to such popular protests is currently
Nigeria. The #EndSARS protests in October 2020 already demonstrated the
ability of young Nigerians to mobilise public protest against what was seen
as the recurrent injustice of arbitrary police arrests. Though it came to an
abrupt end after the 'Lekki Gate massacre' - the state has taken extensive
steps to discourage such protests since - the mobilisation of middle class
opinion fed through into Peter Obi's strong showing in the 2022 Nigerian
elections.

 

The Nigerian state, even more than the Kenyan, revolves around patronage
networks lubricated by access to state funds. The dependence on oil revenue
has meant that personal and trade taxation in Nigeria is negligible. Tax
collection is reported to have risen from 6.7% of GDP in 2021 (OECD) to
10.8% in 2023 (government adviser), but this is just as likely an indication
of Nigeria's economic contraction; taxation in Nigeria still remains amongst
the lowest in the world. But people do care about the cost of living, the
removal of fuel subsidies, and the falling value of the Naira - all of which
underpinned the general strikes called by Nigerian unions in May and June
this year, demanding a raise in the minimum wage. If nothing is done about
it sooner rather than later, the Nigerian crowd could take to the streets
once more to demand action from a government that has so far failed to
deliver.

 

For now, the Tinubu government seems to believe that maintaining the
patronage networks is more important for its political survival than fending
off public protest, and that the corruption underpinning those networks can
be left in place. Given the size, diversity and devolution of Nigeria's
political system, that may be right - for now. The legitimacy of the
Nigerian state, eroded by the jihadi insurgency in the North, and buffeted
by banditry and abductions almost everywhere else, remains precarious. The
risk is that if things do not improve soon, protests will break out. The
authorities may lose political control completely in some areas, which in
the prevailing circumstances, they will find very hard to restore without
more drastic political and economic reform.

 

Only time will tell.

 

Nick Westcott is Professor of Practice in Diplomacy at the Centre for
International Studies and Diplomacy at SOAS, University of London.

 

 

 

 

 

 

 

 

Ghana: Demand for Dollar to Increase As Importers Prepare for Christmas
Festivities

Currency deals say governments needs to be proactive to forestall a free
fall of the cedi as importers prepare to place orders for Christmas

 

Currency dealers are cautioning that the demand for the dollar will rise in
August as importers begin placing orders for Christmas goods. Traditionally,
the cedi has depreciated from August through November, a trend exacerbated
in the past two years by delays in the cocoa syndicated loan and Ghana's
exclusion from the capital market due to its debt distress.

 

As July ends, market watchers are urging the Bank of Ghana and the
government to take proactive measures to prevent a rapid depreciation of the
cedi.

 

 

"During the third quarter, seasonal trends indicate that demand for the
greenback will start building up from next month, continuing through the
third quarter and into the fourth due to goods being imported for Christmas
activities. Therefore, there is no respite for the cedi in sight, at least
not this quarter," Kodzo Dziwornu Letsa told The Accra Times.

 

Another threat to the Cedi's stability is the rising cost of fuel on the
international market. Ghana's oil imports increased from $422.6 million in
May 2024 to $428.3 million in June 2024, placing significant strain on the
cedi and potentially undermining recent economic gains.

 

The bid/offer ratio is currently around GH¢15.67/ GH¢15.77, indicating a
1.48% decline in the cedi's value relative to the US dollar. The spike in
oil imports has led to increased demand for foreign exchange, further
pressuring the cedi. In response, the Bank of Ghana sold $40 million to oil
importers through the Bulk Distribution Companies (BDCs) forex auction.

 

To prevent a free fall of the cedi typically seen during this period, the
Central Bank will need to sustain its interventions and act earlier.
Although the country's Gross International Reserve has increased from 2.9
months of import cover in May to 3.1 months in June, this offers limited
comfort for the government to intervene regularly in the market.

 

Other analysts suggest that the government may need to seek additional
dollar inflows from Afrexim Bank or expedite the process to secure the cocoa
syndicated loan by its traditional month of September, rather than November
or December as has been the case in recent years.

 

-Accra Times.

 

 

 

 

Uganda: Museveni Engages Standard Chartered Bank On Funding Key Projects

Kampala — On July 25, President Yoweri Museveni met with a team from
Standard Chartered Bank's Export Finance division at State House, Entebbe,
to explore potential funding for various projects in Uganda, including those
in the extractive sector, which have faced negative publicity due to
environmental concerns.

 

Uganda aims to commence oil production by 2025, but the absence of essential
infrastructure, including a refinery ($3-$4 billion) and the East African
Crude Oil Pipeline ($3.5-$4 billion), raises doubts about meeting this
target.

 

President Museveni urged the bank to increase support for local scientists
and to show interest in projects such as the Standard Gauge Railway (SGR),
the UMEME buyout, and solar-powered irrigation. He emphasized the importance
of wealth creation, highlighting four key sectors: commercial agriculture,
manufacturing, infrastructure, and resource management.

 

 

"The raw materials, the energy, as well as some of the infrastructure, are
already there, but what is not there adequately is the manufacturing. The
dedicated Ugandans are there, but they don't have capital," he noted.

 

Sanjay Rughani, Managing Director and CEO of Standard Chartered Bank Uganda,
acknowledged the bank's historic role in Uganda's development.

 

He stated that the lender has contributed 3 percent of Uganda's GDP through
lending, value addition, and supporting projects. Rughani revealed that the
bank is currently involved in projects worth USD 1.3 billion and has
expressed interest in financing additional projects, including the SGR and
the UMEME buyout, totaling USD 4 billion.

 

Faruq Muhammad, Managing Director and Global Head of Structured Export
Finance at Standard Chartered Bank, praised Uganda as a favorable market.

 

"Uganda is a very good market for us. My first visit to Uganda was when we
were financing Warid Telecom (now Airtel), which had just received an
operational license. As an international institution, we have a lot of tools
and products, and we appreciate the opportunity to use them as a joint
benefit for the government and us partners," Muhammad stated. He mentioned
ongoing projects like transmission lines, the Kidepo Road Project, and oil
roads.

 

Maria Kiwanuka, Board Chairperson of Standard Chartered Bank Uganda and
former finance minister, emphasized the bank's role in economic development.

 

"There are quite a number of projects that we have executed here in
collaboration with the Ministry of Finance, Planning, and Economic
Development. We have worked very well with the government of Uganda in
several areas, especially infrastructure development," she said. Kiwanuka
also noted the bank's significant lending to manufacturers, totaling Shs 400
billion over the years.-Independent (Kampala).

 

 

 

Nigerian Govt Grounds Arik's Operations

NAMA urged all parties to the dispute to resolve their issues as quickly as
possible so Arik can resume flight operations.

 

The Nigerian Airspace Management Agency (NAMA) has grounded the operations
of Arik Airline over a $2.5 million debt owed to Atlas Petroleum
International Ltd.

 

The development was made known in a statement issued Tuesday by NAMA's
director of public affairs and consumer protection, Abdullahi Musa.

 

According to the statement, the decision is in compliance with a court
ruling regarding the debt case.

 

"On the 19th day of July 2024, the enforcement department of the FCT High
Court enforced an Order made by the Court regarding a debt of $2.5 million
owed by Arik Airline to one Atlas Petroleum International Ltd by attaching
their aircraft," NAMA said.

 

 

It noted that the court further gave Arik a notice of Public Auction of the
planes slated for 26 July if it fails to pay the judgement debt.

 

"All these were served on our agency and also on our supervising minister,
the minister of aviation The records show that on the 8th day of March,
2016, the Judgement Debtor (ARIK) appealed the decision of the High Court of
Lagos State entering judgement against it to the Court of Appeal and on 30th
September 2021, the appeal was dismissed by the Court of Appeal in a
unanimous decision with cost," NAMA said.

 

According to the statement, Arik again appealed to the Supreme Court for
leave to appeal the decision of the appeal court, and on 9 January, the
Supreme Court delivered its ruling dismissing Arik's application for leave
to appeal.

 

NAMA explained that the judgement was registered in the FCT High Court and
that on 26 June, Justice O. A. Adeniyi, then sitting in Court 8, Maitama in
Abuja, made an order after hearing the motion (No: M/9785/2024) filed on
behalf of Atlas Petroleum.

 

"...attaching all the moveable properties belonging to the Judgement Debtor,
including the Judgement Debtor's aircraft with Registration No: B737-700/
5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX, in satisfaction of the
judgement debt,"the statement partly read.

 

NAMA explained that copies of the court order and Certificate of Judgment
were served on it and the aviation minister, but that Arik obtained an ex
parte order stopping further execution of the court ruling even though they
have not been formally served the exparte order.

 

"In the circumstances, since the first execution took place by attaching the
aircraft, further execution by way of sale can be halted whilst the parties
go back to court to resolve the issues," NAMA said.

 

 

"However, in order to preserve the subject matter of the present dispute
which are the aircraft in question (the res), which have already been
attached, we have decided to comply with the effect of the supreme court
order, by grounding the aircraft (subject of dispute) so that they are not
taken out of the jurisdiction of the court or tampered with in a way as to
frustrate the courts."

 

The agency also said the aviation minister, Festus Keyamo, being a senior
advocate, understands the implication of the Supreme Court order dismissing
the motion for leave to appeal.

 

"The minister will not risk his licence as a legal practitioner or his
privilege as a Senior Advocate of Nigeria by engaging in acts that will
frustrate an order of the Supreme Court of Nigeria," NAMA added.

 

NAMA urged the parties to the dispute to resolve their issues as quickly as
possible so Arik aircraft could resume flight operations.

 

Arik airline reacts

 

In his reaction to the situation, on Tuesday, the Chief Executive Officer of
Arik, Roy Ilegbodu, lamented that this decision was made without warning or
consultation. He said the decision has serious repercussions for the
airline's passengers, dedicated employees, and the Nigerian economy.

 

"Our priority has always been to connect people and facilitate commerce,
especially on critical domestic routes. The grounding of our fleet disrupts
these vital services, leaving passengers stranded and inflating already high
travel costs. This decision hurts everyday Nigerians who rely on our flights
for business, family, and essential activities," the official said.

 

He said NAMA's decision also disregards ongoing judicial processes,
explaining that on 26 February 2016, a judgement was made in favour of Atlas
Petroleum International Limited and Engineer Arthur Eze.

 

He, however, explained that there is an ongoing case in the Federal High
Court, where Asset Management Corporation of Nigeria (AMCON) is asserting
its secured interest in Arik's assets.

 

Despite this, Mr Ilegbodu said, a writ of attachment was issued on 18 July,
targeting Arik's aircraft.

 

"The High Court of the FCT on July 25, 2024 clearly instructed all parties
to maintain the status quo. We therefore are perplexed as to the grounding
of our fleet, which is an overreach of the ongoing judicial processes and
directives of court," the official said.

 

"We believe this action undermines the rule of law and sets a dangerous
precedent, prioritising unsecured private interests over the public good and
the rights of secured creditors. We are committed to following the legal
process and have full faith in the judiciary to resolve these matters
fairly."

 

 

Mr Ilegbodu said Arik airline has always been a proud partner in Nigeria's
growth, providing reliable and safe air travel. He urged the authorities to
reconsider their decision.

 

"Lift the grounding order, and allow us to continue serving the public and
supporting the economy. We stand with our passengers and employees during
this challenging time and are working tirelessly to resolve this situation.
Your support and understanding are greatly appreciated.

 

"We sincerely regret any inconvenience caused to our esteemed passengers,"
he added.

 

Measures

 

Meanwhile, the Federal Airports Authority of Nigeria (FAAN), in a statement
issued by Obiageli Orah, its director of Public Affairs and Consumer
Protection, said it has implemented proactive measures to assist stranded
Arik Air passengers.

 

"This is to inform the public that the Federal Airports Authority of Nigeria
(FAAN) is aware that Arik Airline has been grounded due to litigation issues
between the airline and their creditors," FAAN said.

 

It said the authority has instructed all airport managers across the country
to assist the affected passengers as Arik Airline works out plans to rebook
and transfer passengers to other available flights.

 

"For further information, please contact Arik Airline on these lines:
0700003592745, 02012799999. FAAN will continue to ensure safety, security,
and comfort for all air travellers in Nigeria," the statement said.

 

Similarly, the Nigeria Civil Aviation Authority (NCAA) in a statement by its
spokesman, Michael Achimugu, said it is aware of the grounding of Arik's
aircraft over legal issues and the attendant impact on its flights and
intended passengers.

 

"While the NCAA monitors the situation and engages Arik Air on its plans for
affected passengers, our Consumer Protection Officers are available at the
terminals to monitor passenger handling and to offer information," the NCAA
said.

 

It said affected travellers may also walk into the NCAA Consumer Protection
offices or send an email to cpd at ncaa.gov.ng

 

"NCAA empathises with all affected passengers and wishes to assure the
protection of their rights as critical stakeholders," Mr Achimugu said.

 

-Premium Times.

 

 

 

 

 

Nigeria: Dangote Refinery - for Love of Country, Beyond Profit and Passion

Critics of the Dangote Refinery might be called "deniers." Their scepticisms
stem from Nigeria's history of failing its citizens, making it difficult for
them to believe that an individual could succeed where the country has
faltered. Building a refinery of such magnitude seems impossible, yet it
becomes achievable when driven by forces greater than mere wealth, passion,
or fame.

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA), led by Farouk Ahmed, had initially made disparaging remarks about
the upcoming refinery. The resulting accusations and counteraccusations have
tarnished the optics of what should be a collaborative effort in the
national interest. Politics has seeped into this highly regulated industry,
causing parties to take sides.

 

 

However, all stakeholders are interdependent and should consider the
economic implications of their actions beyond Nigeria's borders. Dangote
requires regulation to thrive in the global oil market, while the Nigerian
government needs the Dangote Refinery to address its own shortcomings.
Fortunately, reason and dialogue have prevailed, with President Tinubu
directing the NNPC supply Dangote Refinery with crude oil following public
outcry.

 

The physical existence of the refinery cannot be denied. Located in Ibeju
Lekki, the 2,635-hectare complex housing Dangote Petroleum Refinery and
Petrochemicals FZE is expected to stabilize the market, inspire hope, and
showcase Nigeria as a land of opportunity for both domestic and
international investors. This monumental project is redeeming Nigeria and
Africa's image, demonstrating the country's capacity to rise above mere
importation, which has long hindered its economy.

 

A nation that has sought foreign direct investment globally cannot afford to
be insensitive or politicize one of the few business ventures capable of
generating significant foreign exchange. According to Vice President Aliko
Dangote, "56% of the production would be exported, generating approximately
$17 billion in foreign exchange."

 

To realize the full potential of the Dangote Refinery and similar
enterprises, all parties must make sacrifices and compromises to stabilize
the economy. Despite scepticisms, the refinery's imposing physical structure
is a testament to its significance. With a $20 billion investment, it stands
as the largest private investment in Africa and a potential economic
game-changer.

 

The 650,000-bpd refinery, utilizing cutting-edge technology, can meet 100%
of Nigeria's liquid product requirements (gasoline, diesel, kerosene, and
aviation jet fuel) at full capacity, in addition to producing polypropylene,
fertilizer, and other petrochemicals. Naturally, this disruption to the
status quo has led to backlash from groups that have long benefited from the
current system.

 

 

For decades, Nigeria's oil production capacity has been in decline due to
various factors, including mismanagement, illegal refining, and unchecked
exports. The Dangote Refinery has emerged as a crucial solution to fill this
gap, arriving at a critical juncture when neither modular nor green
refineries have been able to meet local demand.

 

Despite temporary setbacks and potential infractions, the Dangote Refinery
seems unstoppable. The project has already overcome significant challenges,
including the dredging of 65 million cubic meters of sand at a cost of 300
million euros over 18 months to reclaim land from the Atlantic Ocean.

 

In a country lacking infrastructure, Dangote Refinery had to build its own,
including roads, ports, and marine facilities. This investment extends
beyond the refinery itself, with 112 roads constructed within and outside
the complex.

 

What drives a businessman who was already successful as a commodity importer
to undertake such a massive project? It began with former President Olusegun
Obasanjo encouraging Dangote to produce locally what he once imported. This
led to the creation of a diversified conglomerate spanning cement
production, crude oil and gas exploration, agriculture, and petrochemicals,
with operations in at least 10 African countries.

 

For Dangote, this venture transcends personal comfort or wealth. His
daughter, Fatima Dangote, Executive Director of Commercial Operations,
praises her father's incredible energy, patriotism, commitment to
pro-Nigerian causes, goal-setting abilities, and resilience.

 

The refinery's job creation potential is significant, providing stable
livelihoods for millions of workers and their dependents. This should elicit
excitement, support, and encouragement from both federal and state
governments.

 

Dangote himself stated, "Our refinery was designed to refine different
grades of crude, so we can buy from anywhere. But importation brings in
poverty and ships out jobs." The refinery currently employs 30,000 people,
with a target of 100,000, 97% of whom are Nigerians, including young
engineers, industrial chemists, and lab scientists who demonstrate
proficiency in operating the complex machinery and systems.

 

For a man who has fought all his life for causes he believes in, stabilizing
his refinery in the face of opposition from entrenched interests in the
petroleum sector is yet another battle he must win. This fight is not just
for his own sake, but for the thousands of youth employed at the refinery,
for the much-needed foreign exchange, and to salvage Nigeria's image in the
complex web of international politics and economics.

 

The Dangote Refinery has taken on a life of its own, becoming an institution
"owned" by over 200 million Nigerians. Fortunately for Dangote, most
Nigerians appear to stand solidly behind him in this endeavour.

 

Zainab Suleiman Okino is a syndicated columnist. She chairs the Blueprint
Editorial Board and can be reached at zainabokino at gmail.com

 

-Premium Times.

 

 

 

 

Kenya's First Shariah-Compliant 'Linzi Sukuk' Bond Start Trading At NSE

Nairobi — President William Ruto has launched the country's first
shariah-compliant bond, the 'Linzi Sukuk,' on the Nairobi Securities
Exchange's (NSE's) Unquoted Securities Platform (USP).

 

The Islamic security, valued at Sh3 billion, is set to finance the
development of 3,069 affordable housing units in what the head of state now
says will address the critical need for affordable housing in the country.

 

President Ruto emphasized the importance of this initiative in fostering a
dynamic and inclusive capital market with the potential to impact various
sectors positively.

 

 

"I am delighted by the response and commitment and commend your efforts in
crafting this landmark asset-based security which has the potential to
enhance efficiency in the delivery of our priority projects through optimal
financial costs," he said.

 

He expressed confidence that the financing of affordable housing through
such innovative financial instruments would create numerous job
opportunities for Kenyans, thereby stimulating commerce through
public-private partnerships.

 

The Linzi Finsco Trust received a nod from the Capital Markets Authority of
Kenya (CMA) last year to float the country's inaugural Islamic bond.

 

Unlike traditional bonds, a sukuk bond is compliant with Sharia law, which
prohibits the payment of interest.

 

Instead, sukuk bonds provide investors with a share of the profits generated
by the underlying assets.

 

The introduction of the Linzi Sukuk bond is expected to attract a diverse
pool of investors, particularly those seeking Sharia-compliant investment
opportunities.

 

The Affordable Housing project, which is a key pillar in Ruto's development
agenda, aims to address the housing deficit in the country by providing what
the government has defended as affordable units.- Capital FM.

 

 

 

 

 

Nigeria: $2.5m Debt - Local Airfare May Increase As Federal Govt Grounds
Arik Air

Return tickets on local airlines in Nigeria may increase due to the
grounding of four Arik Air aircraft by the minister of aviation and
aerospace development, Festus Keyamo, over a $2.5 million debt to Atlas
Petroleum.

 

Aviation stakeholders have predicted that with the grounding of Arik Air,
the capacity of local airlines will shrink and lead to a hike in air ticket
prices.

 

They argue that with return tickets currently at N283,000 on busy routes, it
may furtrher increase in coming weeks if the impasse continues.

 

 

LEADERSHIP reports that the aviation minister had grounded Arik Air fleet
after the enforcement of an order made by the FCT High Court regarding a
debt of $2.5 million owed by Arik Airline to Atlas Petroleum International
Ltd, by attaching their aircraft.

 

Arik was further given a notice of a public auction of the planes by the
court which was slated to be held on the 26th of July 2024 if the airline
failed to pay the judgement debt.

 

Meanwhile, Arik Air has acknowledged that the decision of the minister to
ground its operation was in disregard of the ongoing judicial processes.

 

According to the chief executive officer, Arik Air (in receivership),
Captain Roy Ilegbodu, "On February 26, 2016, a judgement was made in favour
of Atlas Petroleum International Limited and Engineer Arthur Eze. However,
there is an ongoing case in the Federal High Court, where Asset Management
Corporation of Nigeria (AMCON) is asserting its secured interest in Arik's
assets.

 

"Despite this, a writ of attachment was issued on July 18, 2024, targeting
our aircraft, subsequent to which, further to an originating motion filed by
AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all
parties to maintain status quo.

 

"We, therefore, are perplexed as to the grounding of our fleet, which is an
overreach of the ongoing judicial processes and directives of court.

 

"We believe this action undermines the rule of law and sets a dangerous
precedent, prioritising unsecured private interests over the public good and
the rights of secured creditors. We are committed to following the legal
process and have full faith in the judiciary to resolve these matters
fairly," he stated.

 

However, the general secretary, Aviation Round Table Initiative (ARTI),
Olumide Ohunayo, urged all the parties involved to resolve their differences
through negotiation.

 

 

According to Ohunayo, the grounding of the airlines' aircraft would lead to
capacity gaps that would fuel an increase in airfares across the country.

 

"There was a court order on some aircraft of the Arik Air, the order was
from the Supreme Court; if there is a Supreme Court order and you do not
negotiate the judgement, then this is bound to happen. The ministry has
implemented the Supreme Court judgement that they should have done long ago
but decided to wait till July 30 in order for Arik to negotiate with the
judgement creditor or they should have gone to court to see how the judgment
can be reversed or set aside.

 

"Also, I expected that there would be a human face because Dana is out, and
there will be a strong effect on fares and capacity in the industry. There
should be a way out of this process rather than just allowing the grounding
of the aircraft and Arik must be ready to come to the table to discuss.

 

"Due to the state of the industry at the moment, we are lacking in capacity
which is affecting fares, so I think the debtor, the creditor and the
ministry should sit and do serious negotiations to ensure that Arik
continues operation while they resolve the issue.

 

"I am not saying it's wrong to ground the aircraft but we must look at how
it affects the industry, hence the three must come to the table to see what
can be done to solve the issues that have brought about this judgement,"
Ohunayo stated.

 

In the same vein, the Nigerian Airspace Management Agency (NAMA) disclosed
that the Ministry of Aviation and Aerospace Development is enforcing the
judgment of the court.

 

According to the director of public affairs and consumer protection,
Abdullahi Musa, Arik Air is yet to serve the agency an ex parte order
stopping further execution of the order.

 

Abdullahi stated that the minister, being a member of the Inner Bar himself,
understands the implication of the Supreme Court order dismissing the motion
for leave to appeal and will not risk his licence as a legal practitioner or
his privilege as a Senior Advocate of Nigeria by engaging in acts that will
frustrate an order of the Supreme Court of Nigeria.

 

He, however, urged both parties to resolve their issues as quickly as
possible so that the Arik aircraft in question can resume flight operations.

 

Moreover, the Federal Airports Authority of Nigeria (FAAN) has directed all
airport managers across the country to assist the affected Arik Air
passengers with plans to rebook and transfer passengers to other available
flights.

 

According to the director of public affairs and consumer protection,
Obiageli Orah, the authority is aware that Arik Airline has been grounded
due to litigation issues between the airline and its creditors.

 

We Are Working To Move Stranded Passengers - NCAA, FAAN

 

Meanwhile, following the grounding of Arik Air which has rendered many
passengers stranded, the Nigeria Civil Aviation Authority (NCAA) and the
Federal Airports Authority of Nigeria (FAAN) have moved to ease the stress
and move the passengers to other flights.

 

In a statement by the NCAA spokesperson, Michael Achimugu, the Authority
said it "is well-informed of the grounding of Arik Air aircraft over legal
issues and the attendant impact on its flights and intending passengers.

 

"While the NCAA monitors the situation and engages Arik Air on its plans for
affected passengers, our consumer protection officers are available at the
terminals to monitor passenger handling and to offer information."

 

Achimugu also urged air travellers to walk into the NCAA consumer protection
offices, identify and speak with the officers for assistance or send an
email to [email protected].-Leadership.

 

 

 

Nigeria Records 1.6m Oil Production Daily - NNPCL

The group managing director , Nigerian National Petroleum Company Limited
(NNPCL), Mele Kyari, said the country now records 1.6 million barrels of
crude oil production daily.

 

This is just as the Nigerian Navy has promised to promote ease of doing
business in the sector by addressing challenges to the implementation of
Petroleum Industry Act.

 

Kyari represented by the managing director, NNPCL, Mr Folorunsho Karim
stated this during a meeting of Maritime Stakeholders with the Chief of the
Naval Staff Vice Admiral Emmanuel Ogalla in Abuja.

 

He assured that with the support of the Nigerian Navy and other relevant
stakeholders, crude production would reach the targeted 2mbpd by year-end.

 

 

"The target is to increase production to 2 million barrels by the end of the
year, and we are fully committed in doing that. I appreciated the effort and
the support of the Nigerian Navy for making this possible because without
them, we wouldn't be able to achieve this. So they have been giving us a lot
of support and we're having a reduction in oil theft. And the pipeline
vandalism has also decreased significantly and a lot presently going on in
the industry right now. And we hope that we will sustain this. We'll be able
to achieve our target of 2 million barrels per day toward the end of the
year," he said.

 

The Chief of the Naval Staff Vice Admiral Ogalla said the meeting was
convened to bring together industry regulators, maritime law enforcement as
well as industry players to discuss critical issues germane to maritime and
energy security.

 

He said the development of Nigeria's oil sectors over the last few decades
has witnessed several complex security challenges, such as violent
agitations, oil theft, pipeline vandalism, and piracy/sea robbery, amongst
others.

 

Ogalla said the menace was driven by the proliferation of small arms and
light weapons, communal clashes, poverty and unemployment.

 

He added that traditional means of addressing the security challenges, have
not yielded the desired result hence, the meeting also aimed to address
emerging security issues arising from implementation of the Petroleum
Industry Act.

 

He said the federal government's drive to develop the nation's Blue Economy
requires the support of all stakeholders, adding that the president has
expressed a desire to enhance the ease of doing business within the maritime
environment as well as the oil and gas sector in order to eradicate poverty.

 

He said the NN has sustained its maritime security operations through
surveillance, response capability and law enforcement in addition to
collaboration with all maritime stakeholders.

 

He added that the Navy rejigged its operations and established OP DELTA
SANITY in Jan 2024 which has led to the arrest of 35 ships involved in oil
theft and handed them over to appropriate prosecuting agencies.

 

He assured Nigerian Navy's commitment to the fulfilment of its statutory
roles in order to emplace a conducive maritime domain for economic
prosperity of the nation.

 

He said the Navy was working to ensure that its operations do not constitute
obstacles to the operators but rather contribute to them being able to
perform their duties and produce optimally.-Leadership.

 

 

 

 

CrowdStrike sued by shareholders over global outage

CrowdStrike is being sued by shareholders after a faulty software update by
the cybersecurity firm crashed more than eight million computers and caused
chaos around the world.

The lawsuit accuses the company of making "false and misleading" statements
about its software testing.

It also says the company's share price dropped 32% in the 12 days after the
incident, causing a loss in market value of $25bn (£14.5bn).

CrowdStrike denies the allegations and says it will defend itself against
the proposed class action lawsuit.

 

The suit filed in the Austin, Texas federal court, alleges that CrowdStrike
executives defrauded investors by making them believe the company's software
updates were adequately tested.

The lawsuit is seeking an unspecified amount of compensation for investors
who owned CrowdStrike shares between 29 November and 29 July.

It cites chief executive George Kurtz, who said in a conference call on 5
March that the firm's software was "validated, tested and certified."

CrowdStrike told BBC News that its disputes the claims.

“We believe this case lacks merit and we will vigorously defend the
company,” a spokesperson said.

CrowdStrike IT outage affected 8.5 million Windows devices, Microsoft says

How China swerved worst of global tech meltdown

 

Meanwhile, the chief executive of Delta Air Lines, Ed Bastian, has said in
an interview with business news channel CNBC that the disruption caused by
the outage cost the airline $500m, including lost revenue and compensation
to passengers.

Delta has reportedly hired a prominent lawyer and is preparing to seek
compensation from CrowdStrike.

The faulty update on 19 July crashed 8.5 million Microsoft Windows computers
around the world. The outage disrupted businesses and services, including
airlines, banks and hospitals.

In a detailed review of the incident, CrowdStrike said there was a "bug" in
a system designed to ensure software updates worked properly.

CrowdStrike said the glitch meant "problematic content data" in a file went
undetected.

The company said it could prevent a repeat of the incident with better
software testing and checks, including more scrutiny from developers.-BBC

 

 

 

 

 

Uber strikes EV deal with Chinese Tesla rival BYD

Uber has announced a deal which aims to bring 100,000 electric vehicles
(EVs) made by China's BYD to the ride-hailing giant's global fleet of cars.

The two companies say they will offer Uber drivers incentives to switch to
electric cars, including discounts on maintenance, charging, financing and
leasing.

The multi-year agreement will be rolled out first in Europe and Latin
America, before being made available in the Middle East, Canada, Australia
and New Zealand.

The announcement comes as EV sales around the world have slowed and Chinese
car makers face higher import charges in places like the US and the European
Union.

 

"The companies aim to bring down the total cost of EV ownership for Uber
drivers, accelerating the uptake of EVs on the Uber platform globally, and
introducing millions of riders to greener rides," the two firms said in a
statement.

They also said they will work to integrate BYD's self-driving technologies
into Uber's platform.

Earlier this year, Uber said it was working with Tesla to promote EV
adoption among its drivers in the US and planned to develop a purpose-built
EV with South Korean car giant Kia.

The US, the European Union and other major markets have recently hiked
tariffs on China-made EVs in moves aimed at protecting their car industries.

The move has prompted BYD and other Chinese EV makers to expand their
production facilities outside China.

In July, BYD agreed a $1bn (£780m) deal to set up a manufacturing plant in
Turkey.

The new plant will be able to produce up to 150,000 vehicles a year,
according to Turkish state news agency Anadolu.

The facility is expected to create around 5,000 jobs and start production by
the end of 2026.

Also last month, BYD opened an EV plant in Thailand - its first factory in
South East Asia.

BYD said the plant will have an annual capacity of 150,000 vehicles and is
projected to generate 10,000 jobs.

At the end of last year, BYD announced it would build a manufacturing plant
in EU member state Hungary.

It will be the firm's first passenger car factory in Europe and is expected
to create thousands of jobs.

The company has also said it is planning to build a manufacturing plant in
Mexico.

BYD, which is backed by veteran US investor Warren Buffett, is the world’s
second-largest EV company after Elon Musk's Tesla.-BBC

 

 

 

 

 

 

Turbulence takes instant noodles off Korean Air menu

If you're taking a flight on Korean Air, you might soon notice something
missing from your menu - a cup of instant noodles.

>From 15 August onwards, the carrier will stop serving the noodles to economy
class passengers. It said the increased risk of turbulence, narrow aisles
and passengers sitting closely together could mean "burn incidents occur
frequently".

Business and first class fliers, however, will continue to enjoy the treat.

The snack has long been a passenger favourite and something the carrier is
widely known for. Many praise the fact that it is available for free on
request.

 

In a statement, the carrier said that since 2019 the number of times
turbulence had occurred on its flights had doubled.

It added that in economy class, several cups of noodles are all served at
once, saying that the "risk of burns is greater with passengers crowded
together".

But in business and first class the snacks are brought individually to these
passengers, reducing the likelihood of spillage in the event of turbulence,
the carrier said.

Up until now, the Korean carrier had been providing the noodles for free to
passengers on longer routes.

But this will now be replaced with sandwiches, corn dogs, pizza and "Hot
Pockets" - crusty turnovers filled with cheese, meat and vegetables.

The move sparked discussion on social media. Some users expressed relief,
while others pointed out that the carrier was still serving other items that
could cause burns.

"Aren't coffee and tea hot?" said one comment.

However, another called it a "very good decision", saying they had always
been "nervous" that they would be scalded.

One user said they had hoped the instant noodles would be removed "because
of the smell".

Korean Air said it will "continue to seek service methods that are safe
while increasing customer convenience and satisfaction".

Earlier this year, Singapore Airlines said it would stop serving hot drinks
and meals during turbulence as part of a "more cautious approach".

A 73-year-old British passenger died and dozens more were injured when
flight SQ 321 encountered turbulence over Myanmar and was diverted to
Thailand in May.

Turbulence is one of the most unpredictable of all weather phenomena, with
severe turbulence becoming more likely with climate change, recent research
shows.-BBC

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from s believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


 (c) 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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