Major International Business Headlines Brief::: 09 August 2024

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Major International Business Headlines Brief:::  09 August 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Uganda Baati Says Counterfeits Hurting Country's Construction Sector

ü  Nigeria: CBN Demands Transaction Evidence On All Divestments,
Repatriation of Foreign Investments

ü  Nigeria: After 12 Years, Govt Reviews Curriculum With Technology, New
Skills in Focus

ü  Kenya: Value of Kenya's Coffee Surges 20% As Market Reopens

ü  Rwanda Suspends Beryllium Exportation Amidst Cases of Illegal Mining

ü  Kenya: Sugar Pricing Committee Criticized for Lowering Cane Prices

ü  Uganda: Workers MP Raises Concerns Over Too Many Retirement of Teachers

ü  Rwanda: Nyabugogo Bus Terminal to Get $100 Million Facelift

ü  Nigeria Needs All Hands On Deck to Exit Economic Crisis - Bagudu

ü  Nigeria: Unpaid $2.4bn 'Invalid' Fx Forwards Could Cripple Nigerian
Companies - NACCIMA

ü  Africa: Foreign Entrepreneurs Need Patience in Africa

ü  Global stocks climb as US recession fears ease

ü  Delta Airlines laces into CrowdStrike, says it lost $500m in outage

ü  The AI tech aiming to identify future Olympians

ü  Could Australia become a green hydrogen superpower?

 


 <mailto:info at bulls.co.zw> 

 


 

Uganda Baati Says Counterfeits Hurting Country's Construction Sector

Players have warned that counterfeits and substandard products that have
flooded Uganda are hurting the country's construction sector.

 

Speaking during an engaging with the media, officials from Uganda Baati
Limited said in many incidents, fraudsters target highly selling product
lines that they counterfeit.

 

"As we speak, there are a number of substandard products on the market. For
example, in the steel sector, it is very difficult for the end user to
actually tell what is standard and what is not. In hollow section, the
regional standard is one millimeter but some sell products below this
standard but most consumers won't differentiate," Ian Rumanyika, the head of
corporate affairs at Uganda Baati said.

 

 

"It is such a very fragile sector that counterfeits and substandard products
have flooded and are affecting genuine ones."

 

Rumanyika explained that while some of the counterfeits and substandard
products are locally manufactured, many are coming from as far as China and
flooded the Ugandan market.

 

"Recently we had a campaign on our new stone coated roofing tiles, lifestile
but we realized there are counterfeits trying to imitate lifestile coming
from China."

 

According to construction sector players, the counterfeits and substandard
products are on several occasions purchased by gullible customers and this
state of affairs has a toll effect on the sector.

 

Need for awareness

 

Rumanyika said creating awareness about counterfeits and substandard
products is key is the sector is to be clean.

 

 

"We need to inform and create awareness and educate suppliers and customers
on the importance of having quality products for purposes of building the
economy on a strong foundation. The construction industry in Uganda is a
recipient of substandard products within the different channels and as
leaders in the sector, we have been at the forefront of making sure we
advocate for the right standards and right products," Rumanyika said.

 

He said Uganda Baati has in the past partnered with Uganda National Bureau
of Standards and Uganda Manufacturers Association to advocate for standards.

 

Rumanyika insisted that it is everyone's role to ensure substandard and
counterfeit products are fought from the market or else everyone will suffer
consequences.

 

"We must come out to advocate for the right standards but also make sure
what we have on the market earns value for money. We are not there at the
end point where dealer or hardware is selling but we encourage consumers to
look out for standard products. For example, each of our products have our
logos and this is what the consumer should look out for to have value for
money."

 

Uganda Baati is this year celebrating its 60th anniversary.

 

According to Macklean Kukundakwe, the head of marketing at the company said
the year-long 60th anniversary celebrations are running under the theme,
'Building Uganda together'.

 

"The celebrations are broken into four themes where we celebrate Uganda
Baati in the past where we shall showcase the achievements of the company
since 1964 but shall also celebrate the employees that have been at the
company and the leadership team that has supported us," Kukundakwe said.

 

"We shall also celebrate Uganda Baati in the community where we shall unpack
our impact and contribution to the Ugandan communities where we operate.
This will be impact in shelter, environment, education and in health.We will
also showcase Uganda Baati in the future which is a story of what is going
to come in terms of innovation over the years and those planned in the next
five to ten years or so as we continue to grow the company and country at
large."

 

-Nile Post.

 

 

 

 

Nigeria: CBN Demands Transaction Evidence On All Divestments, Repatriation
of Foreign Investments

Abuja — The Central Bank of Nigeria (CBN), yesterday clarified that every
divestment or repatriation of foreign investment, be it a pre-liquidation or
matured investment, should present documented evidence.

 

These evidence of electronic Certificate of Capital Importation (CCI) as
well as evidence of redemption of investment in local currency assets (money
market instrument, debt securities, equities among others).

 

The apex bank provided the clarification in a correspondence titled,

 

"Circular on Memorandum 20-22 of the Foreign Exchange Manual", dated August
8, 2024, and signed by CBN acting Director, Trade and Exchange Department,
Dr. W.J. Him, which was addressed to all Authorised Dealer Banks (ADBs) and
the public.

 

 

Essentially, the circular explained that the Foreign Exchange Manual,
Memorandum 20 section 2 (vi) applies to both divestments and repatriation of
all CCI related transactions.

 

The section spells out the procedure for portfolio investment.

 

It stated that the prospective investor must appoint a local bank or broker
as an agent to purchase the instrument; the funds for the investment are
transferred electronically to a designated bank; on receipt of the funds,
the bank issues the investor with an electronic Certificate of Capital
Importation within 24 hours; Authorised Dealers shall keep separate records
of the investment and render returns to CBN in a format that will be advised
from time to time.

 

Also, with the eCCI, the investor through the bank or broker, accesses the
market and invests in any instrument of choice.

 

The manual further stipulates that "If at any point in time the investor
wants to divest, they shall go back to the bank with the following
documents: a. Evidence of electronic Certificate of Capital Importation; b.
Evidence of redemption of the money market instrument."

 

The memorandum further stated that only funds in-flowed through authorised
dealers by resident/non-resident Nigerian national and companies
specifically for the purpose of investment shall be eligible.

 

It added that exports and ordinary domiciliary account balances shall not be
eligible for the investment.

 

The revised Foreign Exchange Manual is compiled and issued by the CBN
pursuant to the powers conferred on it by the Foreign Exchange (Monitoring &
Miscellaneous Provisions) Act 17, of 1995 LFN Cap F34.

 

The document is intended as a guide to authorised dealers, authorised buyers
and the public in processing foreign exchange transactions.-This Day.

 

 

 

 

 

Nigeria: After 12 Years, Govt Reviews Curriculum With Technology, New Skills
in Focus

Abuja — After 12 years of curriculum review, the federal government has said
there is no going back in delivering to Nigerians a reviewed curriculum for
its basic and senior secondary schools which is aimed at addressing the
current learning crisis in the country and the encouragement of the use of
more technology.

 

The Minister of Education, Prof Tahir Mamman, who stated this on Thursday at
the Nigerian Educational Research and Development Council (NERDC)
Stakeholders' Dialogue and High-Level Policy Committee Meeting for the
review of Basic Education Curriculum in Abuja, said their commitment is
total, nonnegotiable and on the right course.

 

 

Represented by the Minister of State for Education, Dr Tanko Sununu, Mamman
said Nigeria is one of the countries that is greatly affected by learning
crisis and reports have shown that out of five children in the world, one of
them is out of school and that one out of five is a Nigerian.

 

According to him, "The curriculum was last reviewed 12 years ago and it is
an understatement to say what we have now addressed the need of the last
five years not to think of addressing the current need and the future
prospect of Nigeria.

 

"Report has also shown that out of four children in Nigeria at least one of
them suffers poor numeracy level, poor learning level and also poor critical
thinking level and these are all factors that retard national development
and we must be able to come together address them."

 

The minister explained that the new curriculum, when completed and
introduced will go a long way to address the challenges of poor learning
outcomes, depreciating value system and the review is aimed to expose
learners at the basic education level various skill development,
opportunities including job creating skills.

 

 

"This will create tendency in the learners to help them think independently,
innovate create and be able to solve various societal problem," he said

 

While noting that one of the critical aspects of the administration is to
revamp the education sector towards creating a vibrant workforce with
capability to take up various opportunities within the economic landscape
and beyond.

 

He said the curriculum review is very important because they must go back to
change mode of teaching to improve the perception and understanding of the
children.

 

On her part, the Acting Executive Secretary, NERDC, Dr. Margret Lawani, said
the current basic education curriculum can no longer meet the needs of their
time after 12 years of its development and therefore calls for a review.

 

"We recognize that the curriculum is an outcome of the decisions of the
people as to what knowledge, skills, values, and competencies students
should learn in school for them to live and meaningfully contribute to the
development and growth of society," she said.

 

She said that NERDC has brought in a number of new initiatives that aim to
ensure inclusivity and democratization of the curriculum review process to
ensure that the curriculum truly reflects the needs and ambitions of all
Nigerians.

 

This meeting is one of such initiatives aimed at collating the views and
inputs of critical stakeholders towards the design of a qualitative
curriculum for basic education in Nigeria.

 

"The current curriculum review drive is aimed at designing a globally
competitive competency and outcome-based curriculum that will take care of
critical emerging issues and provide the platform to instill the 21st
century skills in the learners, " she said.

 

While noting that the meeting is strategic to produce a curriculum that will
focus more on what the learners can do rather than what they can know, she
said the stakeholders are expected to make suggestions to the review process
and ratify the framework and structure, which will then launch them into the
technical process of curriculum drafting.  This Day.

 

 

 

 

Kenya: Value of Kenya's Coffee Surges 20% As Market Reopens

The value of Kenya's coffee surged 15 percent this week as the auction
reopened after a mid-season break, amid global price volatility.

 

The total value of the beverage at the Nairobi Coffee Exchange rose to $5.5
million from $4.8 million in the last sale before the break.

 

The increase was driven by strong returns from Kenya's top-grade coffees,
which saw significant growth.

 

Kenya's premier coffee grade AA surged, with a 50-kilo bag fetching $275, up
from $239 in the previous sale. Grade AB also saw an increase, with prices
rising to $236 per bag from $233.

 

Global coffee prices hit a one-month low this week, pressured by increased
global supplies. The International Coffee Organisation (ICO) reported a 3.8
percent year-on-year rise in June global coffee exports to 10.78 million
bags.

 

Additionally, global coffee exports from October to June increased by 10.1
percent year-on-year to 103.47 million bags.

 

Brazil, the world's largest coffee producer, is nearing the end of its
2024/25 coffee harvest, which was 87 percent complete by the end of last
month, compared to 80 percent at the same time last year and faster than the
five-year average of 84 percent.

 

Kenya exports up to 95 percent of its coffee production, with only five
percent consumed locally, meaning that a change in international price has a
direct impact on the local crop.

 

The Kenyan government is pushing for coffee sector reforms to increase
farmers' earnings by eliminating intermediaries in the value chain.-
Business Day Africa.

 

 

 

 

Rwanda Suspends Beryllium Exportation Amidst Cases of Illegal Mining

The Rwanda Mines, Petroleum, and Gas Board (RMB) has announced the
suspension of beryllium exportation, citing cases of illegal mining and
associated unrest and conflicts.

 

Beryllium is a strong, light metal used in aerospace and defense,
electronics, and nuclear industries.

 

The mining board did not provide details of the cases that unfolded to the
build-up of the decision, but noted that the suspension will last "until
further notice."

 

ALSO READ: 2023 recap: A look at Rwanda's mineral returns

 

"During this suspension period, RMB will conduct a comprehensive review of
the reported cases of illegal activities and implement improved export
procedures to streamline the beryllium business," RMB said in a public
notice released on Thursday, August 8.

 

The agency also warned that mineral exporters are "strictly required to
purchase minerals only from licensed mining companies," in accordance with
the law on mining and quarry operations.

 

Rwanda's mineral exports rose to over $1.1 billion in 2023, up from $772
million in 2022, a 43 per cent growth.

 

The growth, according to the mining board, is largely attributed to
increased value addition, continued professionalisation, greater investment
in mechanisation, and the strategic implementation of sustainable and
responsible mining practices.

 

However, it's not all rosy for the sector whose growth is still hindered by
illegal mining activities, particularly land owners who allow persons
without licenses to carry out mining activities on their land.- New Times.

 

 

 

 

Kenya: Sugar Pricing Committee Criticized for Lowering Cane Prices

Kisumu — The Sugar Pricing Committee has come under fire for reducing the
price of sugarcane based on the retail price of sugar.

 

Francis Wangara, Secretary General of the Kenya Union of Sugarcane
Plantation and Allied Workers (KUSPAW), warned that the new pricing
announced yesterday would severely impact farmers.

 

In a notice issued by acting Agriculture and Food Authority (AFA) director
Jude Chesire, the price for cane per ton for August is set at Sh. 4,950.

 

Chesire explained that this pricing follows the expiration of the interim
cane pricing committee and the absence of a cabinet secretary to appoint a
new one.

 

 

Wangara argued that the decrease in sugar prices in the market is due to
illegal sugar imports.

 

"The cost of sugar has gone down because of illegal sugar in circulation,"
he said, asserting that it is unfair to lower the cost of cane based on
these market prices.

 

Speaking in Kisumu, Wangara suggested that the aim is to reduce the cost of
domestically produced sugar by allowing cheap imports, despite the
increasing production of cane in the country.

 

He expressed concern that lowering cane prices would drive farmers out of
business.

 

"The committee has failed to protect farmers' interests and continues to
destabilize the local sugar industry," Wangara stated. He emphasized that
the solution lies in blocking illegal sugar imports, empowering farmers, and
operationalizing cane testing units to ensure farmers are paid based on
sucrose content rather than weight.

 

Wangara also welcomed the new Cabinet Secretary for Agriculture, Andrew
Karanja, urging him to prioritize providing affordable fertilizer to
sugarcane farmers.

 

"We want the CS to ensure equity and that no sector is given more attention
than the other," he said.-Capital FM.

 

 

 

 

Uganda: Workers MP Raises Concerns Over Too Many Retirement of Teachers

Arinaitwe Rwakajara, the Member of Parliament representing workers, has
expressed concern over the high number of teachers applying for early
retirement, warning of a potential crisis in the education sector.

 

"The current salary disparities could be driving this trend, as majority of
those applying for early retirement are arts teachers whose salaries have
not been enhanced," Rwakajara said.

 

"This is a worrying trend that needs to be addressed urgently."

 

Rwakajara is calling for the creation of a fund to support teachers who
cannot afford to pursue further education, with the costs to be deducted
from their salaries.

 

"This will help teachers upgrade their qualifications and remain in the
profession," he explained.

 

The MP warned that failure to act could lead to a severe shortage of
experienced educators, devastating the education sector.

 

"If we don't address this issue, we risk losing our best teachers and
compromising the quality of education in our country," Rwakajara cautioned.

 

Rwakajara's concerns come as the education sector faces the looming threat
of losing thousands of experienced teachers to early retirement.

 

The MP's call to action seeks to mitigate this crisis and ensure the
long-term sustainability of Uganda's education system."-Nile Post.

 

 

 

 

Rwanda: Nyabugogo Bus Terminal to Get $100 Million Facelift

Revamping Nyabugogo bus terminal is set to commence in 2025 and be completed
in 2027 at a cost of between $100 million and $150 million, Emma-Claudine
Ntirenganya, the City of Kigali Spokesperson told The New Times on Thursday,
August 8.

 

However, she said, "The final cost will be determined upon completion of the
study and validation."

 

Nyabugogo multimodal transit hub will facilitate movements of people within
Kigali and connection with the rest of Rwanda and neighbouring countries and
will have a modern complex replacing the current bus stop, transforming it
into a better hub for travelers.

 

 

ALSO READ: Kigali City names three roads to be dedicated to public buses

 

The project will be carried out by the city administration in partnership
with the World Bank.

 

The revamped bus terminal will also have space for travel-related business.

 

It is understood that as the project gets underway, bus services will be
temporarily relocated to another part of the Nyabugogo area to allow the
construction works of the new terminal to go on.

 

"The City of Kigali in collaboration with Transport agencies have identified
areas of temporary relocation which are in the vicinity of the existing hub
in order to not disrupt the surrounding businesses. The temporary relocation
sites will be communicated to the general public in the near future," she
explained.

 

Ntirenganya said Nyabugogo multimodal transit hub will align with Kigali's
vision to integrate various transport modes such as connecting buses,
motorcycles, bicycles, and pedestrian pathways for seamless transit.

 

ALSO READ: City of Kigali opens new public transport routes

 

The transit hub, she noted, will also align with sustainable development
initiatives such as incorporating renewable energy sources, efficient water
use, eco-friendly construction techniques as well as sustainable transport
infrastructure.

 

The transport facilitation facility also aligns with job creation and
business opportunities such as providing employment and fostering business
growth in the area, improved infrastructure and level of service that will
boost public transport.

 

"Nyabugogo bus terminal will accommodate an increased number of buses and
passengers. The exact number and size of all the necessary facilities to be
included in the hub are still under detailed analysis," Ntirenganya said.

 

Key facilities, she said, include bus terminal area, waiting areas, office
spaces, retail and administrative spaces, accessibility features,
information display and payment systems, sanitation facilities, security
facilities, recreational and wellness facilities among others.

 

Kigali also plans to put in place Dedicated Bus Lane (DBL) systems during
peak hours in some of the busy public transport corridors.

 

With this, it is expected that the average waiting time for buses during
peak hours may reduce from 30 to 15 minutes.

 

Alphonse Nkurunziza, a senior lecturer of transport planning, engineering
and urban structure at the University of Rwanda, said DBL is a key strategy
for improving the city's public transport system "because buses will move on
schedule" and won't be delayed by traffic jam in addition to revamping
Nyabugogo transit hub. New Times.

 

 

 

 

 

Nigeria Needs All Hands On Deck to Exit Economic Crisis - Bagudu

...Says crisis arose from several years of under-investment in critical
sectors

 

The Minister of Budget and Economic Planning, Sen. Abubakar Bagudu, says for
Nigeria to exit the current economic crisis, it needs collaborative efforts
of stakeholders.

 

"These choices we need to make to revive the economy are not the preserve of
government or anybody but the collective," he said.

 

Bagudu spoke at the launch of ActionAid Nigeria Country Strategy Paper in
Abuja on Wednesday and emphasised that President Bola Tinubu's
administration did not believe in a blame game but in rallying Nigerians to
confront the country's economic challenges.

 

 

"By doing so, we can transform our ways; we can localize the challenge; we
can find that rather than being presumptuous and judgmental, we can
collaborate and understand, localize the challenge, and everyone can
contribute to making it better, instilling a sense of hope and optimism," he
said.

 

The minister said that rather than point fingers, it was better to
appreciate that the crisis arose from several years of underinvestment in
critical sectors of the economy and pointed out that the solution lay in
sharing experiences with countries that had similar experiences but had
rebounded.

 

Citing Indonesia and Brazil, with populations similar to Nigeria, Bagudu
said both countries offered veritable examples of what the nation should
emulate if it would achieve the level of economic growth and development it
desired.

 

He said, "Brazil's federal budget is about $700 billion, and it has been
like that for upwards of a decade. Nigeria's federal budget now is about $20
billion, and maybe the highest it has been has been about $35 billion.

 

"Do we want to be like Brazil, or do we want to be like Indonesia? Can we
hope to achieve what they have achieved with that level of federal spending,
or do we confront this reality?

 

"When you confront your reality, like gathering the family around and
reminding everyone that we are not as rich as we think we are, maybe new
energy will come into the family, and the sense of entitlement will give way
to What I can do."

 

Speaking against the background of the recent cost-of-living protests, the
minister said Nigerians needed to understand that economic reform policies
required the economy to be repositioned for domestic and foreign investment
inflow.

 

He recognised the prevalence of poverty in the polity. Still, he said it
could only be eradicated through concerted efforts of all levels of
government working to include all strata of the society.

 

He said, "The ultimate end of social action is to include all, and local
economies can be made to include all. This can only happen when we embrace
cooperation, when we become less judgmental when we interrogate and
challenge public officials to give more effort and guidance, and when we
appreciate that we are not alone. Some of the challenges we are facing are
global.

 

"But yet we can't take luxury or comfort in that. We have to move quickly.
So, we are humbled to come and interact so that we can all mobilise together
to do better."

 

Vanguard.

 

 

 

 

Nigeria: Unpaid $2.4bn 'Invalid' Fx Forwards Could Cripple Nigerian
Companies - NACCIMA

In February, the CBN announced that a Deloitte audit found $2.4 billion of
the $7 billion FX claims invalid.

 

The Nigerian Association of Chambers of Commerce, Industry, Mines, and
Agriculture (NACCIMA) has said that the Central Bank of Nigeria's (CBN)
refusal to pay $2.4 billion foreign exchange (FX) forwards may push some
Nigerian companies towards insolvency.

 

NACCIMA National President Dele Oye, in a statement on Thursday, expressed
concerns that the failure to honour these FX forwards has saddled businesses
and financial institutions with crippling interest rates, averaging over 35
per cent.

 

 

Mr Oye said the unpaid claims have further strained relationships with
international trading partners and threaten the economy's overall stability.

 

In 2022 and 2023, various Nigerian companies and small to medium-sized
enterprises (SMEs) entered into FX forward contracts with the CBN.

 

In February, the CBN announced that a Deloitte audit found $2.4 billion of
the $7 billion in FX claims, which have pressured the naira and unsettled
the currency market, to be invalid.

 

"We discovered that of the roughly $7 billion, about $2.4 billion had
issues, which we believe had no business being there, and the infractions on
that ranged from so many things, for example, not having valid import
documents and, in some cases, entities that do not exist.

 

"There were account parties who had asked for foreign exchange and got more
than they asked for. There were some who didn't even ask for any and got. So
there were whole loads of infractions there," Mr Cardoso said at the time.

 

 

The NACCIMA boss noted that the contracts involve exchanging a specific
amount of foreign currency at a pre-agreed rate on a future date, but
despite the maturity of these contracts, the CBN has yet to settle them.

 

Mr Oye stated that NACCIMA has actively sought a resolution by urging CBN
Governor Olayemi Cardoso to reassess the bank's position.

 

He warned that if the issue is not solved amicably, forcing companies to
settle at current exchange rates could trigger a further depreciation of the
naira, as the market is ill-equipped to handle the resulting surge in demand
for US dollars.

 

"The inability of companies to absorb the exchange rate differences and
associated high-interest rates could lead to widespread bankruptcies,
further destabilising the economy," he said.

 

According to him, the affected companies could face an estimated loss of
about N2.4 trillion, which would reduce corporate income tax revenues for
the next two to three years, thus threatening federal government revenue.

 

Mr Oye said the CBN engaged the Economic and Financial Crimes Commission
(EFCC) to investigate dubious transactions and prosecute those involved in
fraudulent activities.

 

However, he argued that companies represented by NACCIMA, whose funds are
tied up, expressed frustration with the prolonged investigation process,
highlighting the severe financial strain and operational difficulties they
face.

 

He said many of these businesses had used bank-confirmed lines to open
Letters of Credit (LCs), paid import duties, and received goods, with their
suppliers mostly settled by their banks' correspondent banks. Despite CBN's
claim that the EFCC is investigating, these companies are suffering
significant financial pressure from their banks and suppliers, he said.

 

The NACCIMA boss criticised the CBN's approach, arguing that it lacked
procedural fairness since the affected companies were not given the
opportunity to respond to the audit findings before the conclusions were
made.

 

He accused the CBN of breaching contractual agreements by appointing
Deloitte and making subsequent decisions without involving the companies,
thus violating their right to a fair hearing.

 

"We have escalated the matter to the Hon. Minister of Finance, the Hon.
Minister of Industry, Trade and Investment, and the House Committee on SME
at the National Assembly, pointing out the unconstitutional nature of the
CBN's actions," Mr Oye said. Premium Times.

 

 

 

 

Africa: Foreign Entrepreneurs Need Patience in Africa

Some foreign companies are finding it hard to set up shop or expand in
Africa. The main hurdles include a lack of loans and foreign currency to
settle invoices, corruption and mismanagement. But opportunities are there.

 

Klingele Paper & Packaging Group has its branch in the Diamniadio industrial
estate of Dakar in Senegal . The German family concern produces high quality
boxes and pallets from imported corrugated cardboard.

 

Business is booming because of the high demand for this type of packaging
for fruit and vegetables, according to the company.

 

 

That's why it also wants to gain a foothold in Ivory Coast. But are still
many uncertainties surrounding the planned expansion.

 

Lack of foreign currency, high interest rates

 

Managing Director Jan Klingele hopes to be able to solve specific problems
with newly established contacts to local partners and authorities.

 

The "sometimes difficult administration and handling of taxes" play a role
here. "And the difficulty of obtaining foreign currency to settle invoices
from abroad for materials and machinery provided," Klingele told DW.

 

The availability of foreign currency is a major hurdle, according to Barroso
da Fonseca of Access Bank in Lagos, Nigeria. Da Fonseca is responsible for
European companies at the facility.

 

"Local and European companies often need to have access to foreign
currency," he told DW. "Banks don't have enough currency reserves."

 

 

The central banks in African countries operate differently to those in
Europe, with no general fiscal policy, he said. "This means great
uncertainty for companies and leads to barriers to investment."

 

In many places, central banks also set high key interest rates, making loans
more expensive. For example, in Angola, Ghana, Zambia and Nigeria, rates are
between 15 and 25%.

 

Young and small companies in particular often fail due to the risk premiums
and collateral demanded by banks in Africa, says Barroso da Fonseca. Banks
often demand collateral of up to 100% of the loan volume.

 

Capital costs are hardly competitive

 

Business in Africa is indeed difficult, according to Ghanaian economist
Daniel Amaty Anim.

 

Most financial institutions are not in a position to mobilize funds at a
competitive interest rate for companies that need the money for further
expansion.

 

 

"Exchange rates as well as the cost of capital on the continent make it very
difficult for businesses to plan over a longer period of time as the
macroeconomic environment is unpredictable," Anim told DW.

 

For producers in Africa that have competitors in other regions where capital
costs are relatively lower, pricing and economic survival are ultimately
problematic, according to Anim.

 

Better policies are needed

 

In addition to the financial situation, the political environment is also
difficult in many regions of Africa. In West Africa, Ghana is considered a
promising location yet there are economic policy deficits, according to
Anim.

 

"We have almost all policies or documents to support businesses, including
foreign direct investment. The problem is implementation."

 

There is also a high level of corruption. At every point in a process, you
have to "shake someone's hand with an envelope" before the relevant
procedure is processed," Anim told DW.

 

Kudzo Akpabli, a financial analyst in Ghana, confirmed the phenomenon to DW:
"The state of corruption and mismanagement means that if foreign companies
don't pay bribes, they won't get the support they need to thrive."

 

German economy: greater challenges than elsewhere

 

Despite the adversities, successful investments are also possible in Africa.
Many German companies have experienced this, says Christoph Kannengießer,
Managing Director of the German-African Business Association.

 

Nevertheless: "They have greater challenges to overcome than in other
international locations," Kannengießer told DW.

 

Kannengießer also counts access to capital among the challenges. "This is
closely linked to risk perception and the risk classification of the African
continent by financial and financing players, by states and rating agencies.
All of this hangs like a block on the leg of many financing and guarantee
issues."

 

Christophe Krug, responsible for business and development at the German
company KTI Plersch, is also familiar with these start-up difficulties.

 

The company cites the example of a plant in Senegal that produces 10 tons of
ice daily, using solar energy. The ice is the type that is essential for a
cold chain for fish, for example. A study commissioned by KTI Plersch and
the German state development agency GIZ put the additional demand in Senegal
at 1,000 tons of ice per day.

 

Lack of reliability

 

"Our concepts apply wherever fish is caught, as well as fruit and
vegetables. We would save tens of thousands of tons from rotting," Krug told
DW.

 

However, they would need more investment to build larger facilities.

 

But there is a lack of contacts and support from outside, such as permits.
Obtaining an appropriate loan for projects is a challenge, and the interest
conditions are too difficult.

 

The corporate strategist criticizes that many political players are not
reliable. He would like the German government to provide more direct funding
opportunities as part of its development cooperation.

 

 

 

Global stocks climb as US recession fears ease

The stock index of the UK's biggest publicly-listed companies edged higher
on Friday after concerns eased over the state of the US economy.

The FTSE 100, which is made up of the country's biggest businesses including
banks, airlines and housebuilders, rose in early trading.

It follows stronger trading in the US where stock markets had their best day
in almost two years on Thursday.

Global financial markets have been spooked in the past seven days over fears
that world's biggest economy could be heading for a slowdown.

But on Thursday, official data revealed US unemployment claims rose by less
than expected.

The benchmark S&P 500 index ended the day 2.3% higher. The Dow Jones
Industrial Average rose 1.8%, and the Nasdaq jumped 2.9%.

In London, the FTSE 100 ticked up 0.7%. Stock markets indexes in Paris and
Frankfurt followed a similar path.

Stocks in Asia made modest gains, recovering some of the losses after
Japanese indexes had their worst day since 1987 earlier in the week.

"The [US] latest jobless claims data, though not normally a major market
event, supports the view that recent pessimism may have been overdone," said
UBS Global Wealth Management.

Official figures from the US Labor Department showed first-time claims for
unemployment benefits in the US had fallen more than expected to 233,000
last week.

But despite the apparent recovery in global markets, analysts warn that
trading will likely remain choppy for the time being.

"The market volatility is creating trading opportunities for investors over
the short term," said Peter McGuire from trading platform XM.com.

"It will be a bumpy ride over the election season and we all await the [US
Federal Reserve] policy decision in September."

The Federal Reserve held off cutting interest rates last week - something
that typically boosts growth - in contrast to other central banks such as
the Bank of England.

But, this week's market upheaval stoked further speculation about when - and
by how much - the Fed will cut borrowing costs.

"[The] Fed is now likely to cut rates up to 50bps in September which in turn
supports expanding valuation for the market," said Jun Bei Liu, Portfolio
Manager at Tribeca Investment Partners.-BBC

 

 

 

 

Delta Airlines laces into CrowdStrike, says it lost $500m in outage

Delta Airlines has expressed frustration with CrowdStrike in a new letter on
Thursday, as the two companies continue to trade jabs after last month's
massive global network outage.

The US-based carrier accused the cybersecurity company of "negligence",
saying it was forced to cancel thousands of flights because of the outage
and had lost at least $500m (£392m) as a result.

CrowdStrike had denied it was solely responsible for Delta's flight
disruptions, which it said continued after other carriers came back online.

Delta has since been hit by a class-action lawsuit filed on behalf of
affected passengers.

 

The global glitch originated from CrowdStrike on 19 July, after it had sent
out a corrupted software update to its huge number of customers.

Microsoft estimated that 8.5 million Windows devices around the world were
disabled as a result.

Delta Airlines’ services were impacted for days after the outage, even after
other airlines appeared to have recovered. Delta cancelled around 7,000
flights over five days until 24 July, and is now being investigated by the
US Department of Transportation over the disruptions.

The airline has since blamed CrowdStrike and Microsoft for the disruptions,
and has threatened legal action against the two companies.

Both CrowdStrike and Microsoft have rejected the claim that they are
responsible for the disruptions at Delta.

Delta's CEO Ed Bastian wrote in a filing with the US Securities and Exchange
Commission on Thursday that what happened was “unacceptable”.

“Our customers and employees deserve better,” Mr Bastian wrote, adding that
the technology meltdown affected 1.3 million of Delta's customers.

CrowdStrike said on Sunday that it would defend itself “aggressively” should
Delta take legal action against it.

Microsoft also said it would fight back, and added that its preliminary
review shows Delta, unlike its competitors, was operating with an outdated
IT infrastructure.

In response, David Boies, an attorney representing Delta, wrote in a letter
to CrowdStrike on Thursday that “there is no basis - none - to suggest that
Delta was in any way responsible for the faulty software that crashed
systems around the world”.

He added that Delta Airlines had invested billions of dollars in its
technology, and said it struggled to restore operations because of its
reliance on Microsoft and CrowdStrike.

In response, a CrowdStrike spokesperson accused Delta of pushing "a
misleading narrative".

Delta is facing its own legal challenges after the outage, after a lawsuit
was filed against it on behalf of passengers whose flights were cancelled.

The legal action stated that “no other US airline had cancelled one-tenth as
many flights".

It also claimed that Delta failed to properly compensate passengers, and
that it had asked passengers to sign waivers releasing Delta of all legal
claims.

Many airlines rely on Microsoft’s Office365 for scheduling. The CrowdStrike
outage had crashed those systems, forcing them to resort to manual
scheduling.

CrowdStrike has since been sued by its shareholders, who accused the company
of making "false and misleading" statements about its software testing.
CrowdStrike has denied the allegations.-BBC

 

 

 

 

The AI tech aiming to identify future Olympians

Fans at the Olympics are trying out a new AI-powered talent spotting system
that hopes to find the gold medallists of the future. Its developers aim to
use a portable version of the technology to bring advanced sport science to
remote areas around the world.

 

As the alarm sounds, Tacto races frantically to swipe the infra-red sensors
in front of him as some of them suddenly flash blue.

Not far away his younger brother, Tomo, sprints down a short running track
as his motion is tracked by a series of cameras.

The seven and four-year-old siblings from Yokohama, Japan, are taking part
in a series of AI-powered tests that have been specially set up near the
Olympic Stadium in Paris.

 

A young boy sprints down a track while his father watches

Tomo has his sprinting skills assessed while being watched by his father Tad

The aim of the system is to identify the potential gold medallists of the
future.

Data is gathered from five tests which include activities like running,
jumping, and measuring grip strength.

This information is then analysed to assess a person's power, explosiveness,
endurance, reaction time, strength and agility.

The results are compared with data from professional and Olympic athletes.

 

A young boy plays a game where he has to touch illuminated sensors in front
of him

Tacto and his mother Nami test their reaction times

“We’re using computer vision and historical data, so the average person can
compare themselves to elite athletes and see what sport they are most
physically aligned to,” says Sarah Vickers, head of Intel’s Olympic and
Paralympic Program.

After completing the tests, each participant is told which sport they would
be most suited to from a list of 10.

Intel says all the data collected from the people taking part is deleted
once the process is complete.

Aside from technology, it is something the young brothers are having fun
doing.

“I enjoyed it,” says Tacto. “I liked the bit where we had to sprint the
best.”

 

Portable AI

Intel A man holds a tablet up and film a boy running across a squareIntel

Assessors in Senegal filmed children with tablets to allow AI to assess
their speed and agility

The AI system that is open to fans at Paris 2024 has a far smaller, more
portable counterpart that can be run on most devices which have a basic
camera and a little computing power.

“With just a mobile phone or a tablet or a PC you have this opportunity to
go into places where you couldn’t go before,” says Sarah.

This AI technology can assess people’s performance just by analysing video
from the camera without the need for physical sensors.

The International Olympic Committee recently took the system to Senegal,
where it toured around five different villages and assessed more than 1,000
children on their athletic potential.

Partnering with Senegal’s National Olympic Committee, and after a follow-up
round of more advanced tests, it identified 48 children with “huge
potential”, and one with “exceptional potential”.

They have been offered places on sports programmes if they want, to see how
far they can take their athletic abilities.

It is hoped that the system can be rolled out further and used to offer
opportunities to people in areas which it would be impossible to reach with
bulkier assessment systems.

 

A woman stands with her arms out in front of a digital display

Francesca, from Barcelona, is scanned by the system in Paris

Prof John Brewer, a visiting lecturer at University of Suffolk, who has
worked with England’s Football Association on talent identification, says
spotting potential at a young age is the “holy grail” of sport.

However, he warns that a basic system that can only measure a few attributes
would be limited when it comes to technical sports like football or
basketball, or ones that require endurance.

“If you want to win the marathon or the 10K you have to have that aerobic
capacity, that oxygen transport capacity, that no filming will ever show,”
he says.

Prof Brewer does see the benefits of the system for making initial
assessments of potential athletes.

“If they are revealing skill and agility which suggests that they are able
to have talent in a particular sport then that has to be encouraged,” he
says. “And if it is portable and can be taken to areas where they don’t
necessarily have access to high-tech assessment methods, then that can only
be a good thing.”

“But it would only be one part of a much bigger talent identification
system.”

Final results

Two men stand facing the camera with their arms around each other

Ex-swimmers Hank (left) and Brock had their skills assessed

Back at the Olympic Stadium, young Tacto has his results - he has been
identified as a potential sprinter.

He is delighted, although he says he currently prefers football and tennis.

Two more experienced athletes are Hank and Brock, who both used to compete
for their university in the US at inter-collegiate level. This standard can
offer world-class facilities and has produced many Olympians.

“We’re former athletes and we’re competitive and thought it’d be fun,” says
Hank.

“This kind of technology wasn’t around when we were swimming 10 to 15 years
ago,” Brock adds.

And what were their results?

“Rugby,” says Hank.

“I got basketball and I’ve literally never played basketball in my life,”
replies Brock.

“Well, he played with me once and we never allowed him back,” replies Hank.

It seems even with AI technology, computers cannot get it right every
time.-BBC

 

 

 

 

Could Australia become a green hydrogen superpower?

“If you remember being a kid and blowing up a balloon or into a milkshake,
your cheeks got sore because there is an energy penalty associated with
bubble formation.”

Paul Barrett, the Dublin-born chief executive of the Australian green energy
firm Hysata, is explaining the plan to create the cheapest hydrogen in the
world - by eliminating bubbles.

The company, based at Port Kembla, an industrial hub south of Sydney, is
using a familiar process known as electrolysis, which involves passing
electricity through water to split it into hydrogen and oxygen.

But Hysata has developed a special material which sits in the water and
which it says makes its electrolyser much more efficient than competing
products.

The company says it can produce a kilo of hydrogen using 20% less
electricity than conventional methods.

 

Hydrogen is the most abundant element on the planet and, crucially, when
used as a fuel or in industrial processes it does not produce carbon dioxide
(CO2).

Many see hydrogen as the answer to cutting carbon dioxide emissions,
particularly in heavy industry like steelmaking and chemical production.

Hydrogen production comes in four varieties - green, grey, blue and black.

The green variety is produced with renewable energy, grey comes from
splitting methane into carbon dioxide and hydrogen, while blue is made in
the same way, but the CO2 by-product is captured and stored.

The production of black hydrogen comes from partially burning coal.

But if there is to be a transition to green hydrogen then its supply needs
to be massively increased.

“Ensuring you have the production of green hydrogen close enough to the
demand point and being able to regulate the supply of that is probably the
biggest challenge,” explains Dr Liam Wagner, an associate professor at
Curtin University in Adelaide.

“The efficiency of production and the amount of energy required to run these
processes is the biggest frontier.”

Getty Images Sparks fly as a worker takes a sample of molten iron flowing
from a blast furnace in Duisburg, GermanyGetty Images

It's hoped green hydrogen can reduce the carbon footprint of heavy industry

 

Australia is rich in natural resources and has long been the world’s quarry.
It’s an export-driven nation; its coal has helped to power Japan, while its
iron ore has underpinned much of China’s growth. Many hope that hydrogen
could follow.

“The prospects for hydrogen are as a way of exporting energy to countries
that can’t produce enough of their own either as hydrogen in a liquid form
or as ammonia, which I think is the most likely,” Dr Wagner adds.

Hysata hopes to play a part in that. Its device was initially invented by
researchers at the University of Wollongong in the state of New South Wales.

In a conventional electrolyser, bubbles in the water can be clingy and stick
to the electrodes, clogging up the process and leading to energy loss.

By using a sponge-like material between the electrodes, Hysata eliminates
those troublesome bubbles.

“It is not unlike your kitchen sponge in terms of what it does. It is just a
lot thinner,” says Mr Barrett.

“It’s pretty easy to manufacture at a super low cost,” he adds.

Cost and efficiency have been major hurdles for the hydrogen sector, but
Hysata has recently raised US$111m (£87m) in investment to beef up its
production.

Ema Frery Dr Ema Frery (right) in a high-visibility with a colleague looking
down at some test equipment Ema Frery

Dr Ema Frery (right) is investigating capturing naturally produced hydrogen

 

“What we are speaking about is natural hydrogen which is coming directly
from the earth,” explains Dr Ema Frery, a research team leader at CSIRO,
Australia’s national science agency.

“A lot of rocks that are in Australia can produce hydrogen. We have a lot of
old granites that are now close to the subsurface and can generate hydrogen
through radiogenic processes.”

So-called geogenic hydrogen is also known as white or gold hydrogen.

Dr Frery, a French-born geoscientist based in Western Australia, is
investigating how it might be extracted, stored and used in an economically
viable way.

“A conventional hydrogen system can consist of a rock capable of generating
hydrogen at a given rate, migration pathways and a reservoir where the
hydrogen can be stored.

“Surface seeps at the top of the reservoir can indicate the presence of a
hydrogen system at depth,” she says. “It is happening in other countries. In
Mali, people are extracting natural hydrogen from the ground for more than
ten years to produce electricity for a local village.”

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Despite the research work, some doubt that hydrogen will become a big export
for Australia.

One of those is the Institute for Energy Economics and Financial Analysis
(IEEFA), a global research organisation which advocates the use of renewable
energy.

Exporting hydrogen from Australia would “make no financial sense”, according
to Amandine Denis-Ryan, the chief executive of the IEEFA in Australia.

“Hydrogen shipping would be prohibitively expensive. It requires extremely
low temperatures and large volumes, and involves high losses. Using hydrogen
locally makes much more sense.”

She hopes that government funding will not be “wasted” on such projects.

Like bubbles on electrodes, new technologies and processes invariably hit
sticky patches where progress is hindered and doubts amplified, but the
architects of hydrogen’s advance are confident it has a key part to play in
our energy transition.

Bahman Shabani, a professor at RMIT University’s School of Engineering in
Melbourne, is working to store surplus renewable energy using an
electrolyser, a storage tank and a fuel cell that together act like a
battery.

“Hydrogen is gaining popularity all around the world. If you look at the
investment levels in China, for example, in Japan, in Germany, in Europe in
general, in the United States, they are all realising the importance of this
area.-BBC

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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

Email:                <mailto:bulls at bullszimbabwe.com>
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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
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