Major International Business Headlines Brief::: 11 January 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  11 January 2024 

 


 

 




 


 

 


 

ü  Nigeria: December Inflation to Set New Record - Report

ü  Namibia: Multichoice Kicks TB Joshua's Channel to the Curb

ü  Uganda: Worth the Salt? Artisanal Miners Continue to Work Despite Health
Concerns

ü  Uganda: What Awaits Uganda's Mining Sector in 2024

ü  Uganda: Govt to Spend Sh23 Trillion On Debt Repayment Next Financial Year

ü  Rwanda: Inadequate Financing Undermining Rwanda's Mining Potential -
Official

ü  Nigerian Economy to Grow By 3.3% in 2024, Says World Bank

ü  East Africa: Scrap Metal Smuggling Could Cripple East Africa's
Infrastructure

ü  South Africa: Prasa Settlement to Double in Size in Spite of Problems
With Water and Sanitation

ü  South Africa: Work Experience Opportunities for Western and Eastern Cape
Youth Now Open

ü  Bitcoin: Crypto fans can now invest in exchange-traded funds - but what
are they?

ü  Boohoo put 'Made in UK' labels on clothes made overseas

ü  Post Office paid Fujitsu £95m to extend Horizon

ü  Government unveils biggest nuclear expansion in 70 years

ü  Amazon slashes jobs at Twitch, MGM and Prime Video

ü  Software firm SAP to pay $220m over bribery charges

 


 

 


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

Nigeria: December Inflation to Set New Record - Report

A report by the Financial Derivative Company has projected Nigeria's
inflation to rise to 28.7 per cent in December.

 

The report stated that the figure, which would be a record high on the
country's inflation figure would be correct subject to the margin of error
between -0.5 per cent to +0.5 per cent.

 

"This means that inflation in Nigeria will be at a record high. In view of
the fact that global and regional inflation has slowed and, in many cases,
falling, Nigeria is fast becoming an outlier.

 

"More importantly, most analysts are questioning the veracity of the
inflation data. The answer to this question is not far-fetched because
imported inflation has two components, the first is the nominal prices of
commodities in the global markets, and the other is the exchange rate effect
on domestic prices. The naira fell by 38.84 per cent in 2023; according to
Bloomberg, it is now the 3rd worst-performing currency in the world."

 

 

It stated that month-on-month inflation would see a marginal increase of
2.11 per cent.

 

It stated that monthly inflation is a more accurate measure of current
inflation than annual inflation as it gives the current situation in the
market more than historical inflation.

 

"We are projecting that month-on-month inflation will rise to 2.11 per cent
(annualised at 28.52 per cent) from 2.09 per cent (annualised at 28.19 per
cent) in November as cost pressures persist. It implies that the pace of
increase in the average price level surpassed the rate observed in October
2023."

 

 

It went further that food inflation would remain elevated due to the
planting season. "Food inflation has been a major driver of inflation in
Nigeria. Based on our model, it is projected to rise by 0.36 per cent to
33.20 per cent in December from 32.84 per cent in November."

 

"Notably, commodity prices moved in different directions in December. While
the prices of festive-related commodities like rice (17.14 per cent), egg
(15.38 per cent), and turkey (10 per cent) increased significantly, the
price of onions (64 per cent), tomatoes (47 per cent), yam (20 per cent),
and pepper (16 per cent) declined sharply due to the seasonal demand
(festivities)."

 

It added that core inflation (inflation less seasonality) is projected to
decline by 0.07 per cent to 22.21 per cent from 22.38 per cent in November,
noting that the marginal decline is partly due to appreciation in the value
of the currency (especially towards the end of December).

 

   - Daily Trust.

 

 

 

Namibia: Multichoice Kicks TB Joshua's Channel to the Curb

MultiChoice Namibia is getting rid of Emmanuel TV.

 

This was confirmed by the company's managing director, Roger Gertze, on
Wednesday.

 

This comes as allegations of being a cult leader and sexual abuser have been
levelled against the late founder of the channel, Temitope Balogun (TB)
Joshua.

 

"As part of this ongoing process, Emmanuel TV will no longer be available on
DStv and GOtv packages, effective 17 January 2024 at 23:59," Gertze said.

 

A group of over 25 women claim to have been abused by Joshua, who was also
the founder of the Synagogue Church of All Nations, a Christian megachurch
running Emmanuel TV.

 

   - Namibian.

 

 

 

 

Uganda: Worth the Salt? Artisanal Miners Continue to Work Despite Health
Concerns

Lake Katwe, Uganda — The unlicensed workers use what they have to combat
health fears in Uganda's top salt-producing lake. A new law is supposed to
offer protections. So far, little is on the way.

 

At first glance, the branches scratching the surface of Lake Katwe look like
a gripping artwork for the way they create different shapes in the water.
If, to an outsider's eye, their arrangement may seem random, for the
thousands of artisanal salt miners whose livelihoods depend on the lake,
every branch serves a purpose as they are used to mark the borders of their
salt pans.

 

"The divisions you see there are plots owned by us," says Sarah Tinditiina,
a salt miner who's been working here for 13 years. Tinditiina spends her
days scraping the lake bottom for rock salt. "We take long hours in the
evaporating water and, because of this, I feel so thirsty."

 

 

Located in Kasese district, in western Uganda, Lake Katwe is the top
salt-producing lake in the country and a key resource for Uganda's growing
salt production industry, which, according to the United Nations Comtrade
database, exported 7.4 United States dollars' worth of salt in 2022 to other
nations, including Democratic Republic of Congo, Rwanda and Sudan.

 

Artisanal mining refers to the manual extraction of minerals using basic
tools by workers not officially employed by mining companies. The practice
to extract salt from Lake Katwe is a centuries-old tradition dating to
pre-colonial times. Many salt pans lining the lake's shores have belonged to
the same families for decades and were passed down from one generation to
the next. In recent years, the lake has attracted an influx of job seekers,
with an estimated 10,600 miners -- mostly women -- working here today. This
represents a nearly 50% increase from a decade ago.

 

 

With weekly earnings ranging between 40,000 Ugandan shillings (10 dollars)
and 1 million shillings (272 dollars), salt miners see the promise of a
livelihood in the lake. But many also worry about their health.

 

Due to a lack of toilet facilities, salt miners immersed in waters for long
periods of time are at risk of sewage-borne illnesses, such as typhoid,
cholera and diarrhea, according to a 2018 report from the United Nations
Development Programme. The report also found that prolonged exposure to
brine can cause inflammation of reproductive organs and may affect miners'
fertility rates. Men reported deformed genitalia, and female miners said
they experienced high rates of miscarriage and infertility.

 

 

Local medical experts interviewed by Global Press Journal, however,
expressed skepticism about a correlation between salt water and low
fertility rates. "The miners have a phobia that their parts will be affected
but there is nothing that happens," says Paul Kaduyu, a gynecologist at
Mengo Hospital, in Kampala. Medical experts, however, confirm that brine
exposure can lead to skin conditions that can be exacerbated by a lack of
proper treatment, causing skin ulcers and infections.

 

When the Ugandan government approved the Mining and Minerals Act in 2022 to
regulate the work of artisanal miners, Lake Katwe's salt miners were hopeful
it would address their concerns. Under the new law, the minister of Energy,
Mining and Mineral Development may prescribe measures to make artisanal
miners' work safer, and so salt miners expected the government to facilitate
access to protective gear. But this never happened for the thousands of salt
miners who, like Tinditiina, are working in Lake Katwe without proper mining
licenses. Many of them say the government didn't consider their health
concerns.

 

Without proper equipment, miners have mostly continued to rely on improvised
protections. While men wear condoms or tie polythene bags around their
genitals, female miners wear sanitary pads or smear mixed cassava dough on
their genitalia before entering the salty waters.

 

"For the men, tying the penis for over seven hours tampers with the blood
circulation in the vessels, which itself causes problems," says Dr. Joel
Mirembe, senior medical officer at Mulago National Referral Hospital.

 

Because women may not be able to afford pads every day, they often opt for
old clothes, which may not be hygienic enough and could act as a "breeding
ground for infections," he adds.

 

In recent years, after news that salt miners were using condoms and pads as
protective gear spread across the country, tourists and journalists began
flocking to the lake.

 

"It became like a form of amusement for people to come and watch people who
work with condoms on and women who pad themselves every workday of their
lives," says Nicholas Kagongo, a former leader at the Lake Katwe Cooperative
Society, an organization representing local salt miners.

 

This was displeasing to the artisans, so they chose to hide the practice and
not talk about it.

 

Ibrahim Bahati and Ronald Aguma sit on the pavement, demarcating their pans.
They've been working in the lake for 25 years and 10 years, respectively. As
a welcome gesture, Aguma extends a hand in greeting. "They are lies," he
says, referring to the use of condoms by male salt miners as protection. But
he acknowledges the health risks of working in the lake. He thought the new
law would improve their conditions.

 

"We thought they would think of us. We go through too much toil, and we risk
our lives," Aguma says. "We enter the lake by 9 a.m. and come out by 5 p.m.
Naturally our body is shriveled because of too long a spell in water."

 

 

He displays the effect the salt has had on him -- some old and fresh cuts on
his elbows -- while Bahati, who has worked here longer, shows off a
patchwork of scars that run down his legs.

 

"I started with not a single scar, but see what my legs have become," Bahati
says. To protect fresh wounds from the brine, miners use a cheap adhesive
meant for metals that is unsuitable for human skin and may cause skin, eye
and respiratory irritation.

 

Seka Abdullakarim, who has worked here for four years, plans to quit his job
out of concerns for his health.

 

"I need to protect my life. I will need a generation under my name," he
says, referring to his desire to have children. When asked about what gear
he uses to protect himself from the brine, he smiles and dodges the question
by wading into the water, causing a ripple effect.

 

Margaret Akol, who has worked for 20 years as a leader of Women Salt Miners,
a local organization representing women salt miners, disapproves of the
miners' reticence to talk about their working conditions.

 

"Embarrassing as it is, if a problem is kept hidden, there will be no
solution," she says.

 

Meanwhile, the government lacks adequate resources to improve salt miners'
working conditions, says Vincent Kedi, assistant commissioner for licensing
and administration at the Directorate of Geological Survey and Mines. While
medical professionals say condoms and pads can cause skin irritations and
infections, Kedi says the government plans to start distributing these
improvised protections. "The condoms and pads have kept them safe," he says.

 

Kedi says some of the miners have reported having their uterus removed and
claimed it was connected to brine exposure.

 

Global Press Journal could not independently verify this claim and the
gynecologists interviewed for this article say it is highly unlikely that
brine exposure may lead to uterus removal. Tinditiina says three of her
fellow salt miners have had their uteruses removed.

 

"Our problems are more than what people think. It does not stop at our skin
peeling or itching," Tinditiina says. "Some of us have had the misfortune of
losing our wombs."

 

Not too far from where the miners work stands an abandoned salt factory,
towering over the lake. It operated for less than one year in the early
1980s. Kagongo says that the building machinery could not withstand the
waters' corrosive effects. "The metal pipes used to drill the salt corroded
in a month," he says.

 

For salt miners, the abandoned factory serves as another painful reminder of
the consequences the lake's waters may have on their bodies. "If salt can
destroy a machine in one year," Bahati asks, "then what harm can it do to a
human being who works in it for over 40 years?"

 

Edna Namara is a Global Press Journal reporter based in Kampala, Uganda.

 

   - Global Press Journal.

 

 

 

 

Uganda: What Awaits Uganda's Mining Sector in 2024

Uganda is finally putting in place measures to tap into the global demand
for critical minerals, which are needed for the smooth transition from
fossil fuels to clean energy technologies.

 

For more than three decades, private sector investments in Uganda's mining
sector have been low. The reasons have varied from the unavailability of
strong data about the potential of the country's geological system; the
absence of a mining major company to attract more investments in the
country; to poor infrastructure to support the mining sector.

 

There has been positive change. The biggest part of Uganda's geological
system has been mapped. While Uganda is yet to attract a major mining
company, recent discoveries have raised the profile of the country. And the
infrastructure - both the transport network and electricity generation -
have improved significantly around the mining areas.

 

 

The global wave of demand for critical minerals such as cobalt, lithium,
etc, which are needed in the manufacturing of electric batteries, is
something that has the potential of transforming Uganda's mining outlook.

 

As such, Uganda's mining prospects are looking positive based on the global
demand for critical minerals. Although there are some risks that investors
will have to contend with.

 

STATE MINING COMPANY

 

Uganda will test some sections of its new mining law in 2024, especially
with the creation of the national mining company. The set-up of this
company, especially whoever heads it, is expected to be one of the big
talking points in the sector.

 

 

The national mining company - modelled around the Uganda National Oil
Company - will hold the country's financial interests in the mining sector.
The law allows the state mining company to take up to 15 per cent
shareholding in a mining project. This provision has jolted prospective
investors, and many will look at it as a risk to any mining venture they
intend to enter.

 

However, Uganda's state mining company is not expected to enter into any
joint venture this year as most of the mining projects are at the risky
exploration stage. Such a joint venture could come into play in the medium
to long term as some exploration in the country matures to the development
stage.

 

In the short term, however, the one critical question that government will
grapple with is how to finance the state mining company. Already, the
government is dealing with high debt levels amidst insufficient tax
revenues.

 

 

VALUE ADDITION

 

The global energy transition, which calls for the exploration of critical
minerals, has reinforced government's resolve to promote value addition
within its mining sector. A ban on the exportation of raw minerals has
slowed down investments in some parts of the mining sector, with investors
arguing that the high costs of production - such as expensive electricity
and the absence of a local lucrative market for finished products - make it
hard for them to invest heavily in refining minerals.

 

Government is not expected to relax its policy on the ban on the export of
raw ores. Recently, the minister of Energy and Mineral Development, Ruth
Nankabirwa, signed a new statutory instrument that sets higher purity levels
for tin exports. The move is meant to force companies involved in the
exploration of tin to refine the mineral.

 

This policy directive could make it difficult for some companies to complete
transactions within the tin industry as it introduces a new condition of
value addition. For example, Gecko Uganda Limited, one of the main explorers
of tin in Uganda, acquired new four-year exploration tin licenses in
September 2023.

 

The company is, however, looking for new investors after a recent bid from
Australia's Javelin Minerals Limited collapsed due to unsatisfactory due
diligence results. During the negotiations, Javelin insisted that it would
only go ahead with the transaction if there was "a no regulatory action
condition" and "a no material adverse change condition."

 

Uganda's recent policy instrument, which raised the purity levels of tin
from the previous level of between 67 per cent and 70 per cent, to 99.85 per
cent, is an adverse regulatory action condition. There is a likelihood a
similar government position on the purity of minerals is being discussed in
regards to iron ore and gold.

 

Unlike tin, whose exploration volumes are low, the companies involved in the
gold industry are likely to push back. Gold is listed as one of Uganda's top
exports, with nearly 70 per cent of the exports said to be unprocessed.

 

REDUCING STEEL IMPORTS

 

In regards to iron ore, which is used to make steel bars, the government
will look to reduce the importation of steel. Uganda imports steel and iron
products worth $370 million, mainly from Asia, according to the Ministry of
Finance. Government is expected to come up with a policy measure to drag
down that figure by about 75 per cent.

 

Uganda's new Energy Transition Plan raises concerns over the level of carbon
emissions from the steel industry due to the use of coal during production.
There is low expectation, if any, that a short-term substitution from the
use of coal in the steel industry is available, although Uganda's government
is expected to place some urgency on finalising negotiations over the need
for a gas pipeline from Tanzania to support heavy industries such as steel.

 

 

The two countries have already agreed on doing feasibility studies about the
commercial viability of the project.

 

BENEFICIATION

 

One way the government intends to promote value addition is by creating
beneficiation facilities in the different regions of the country. This will
also help the government to track the minerals going in and out of the
country. This, if achieved, will boost the country's profile as being
transparent.

 

KILEMBE COPPER MINES

 

Four companies submitted bids to the Ministry of Energy and Mineral
Development in December for the revival of Kilembe Copper mines. The four
companies are: Gingko Energy, Liaoning Hongda (trading as Wagagai Mining),
Sinomine Power China, and Sarrai Group. Government will evaluate the bids
from these companies in January. Government is expected to announce its
preferred bidder at some point in the year as the country looks to revive
copper production at its once flagship mine, located in the western district
of Kasese.

 

MAKUUTU RARE EARTHS

 

The Makuutu rare earths project promises to be another flagship mine after
government awarded a conditional 21-year mining license to the project.

 

The award of the license will unlock the financing that is needed to move
the project forward. Australia's IonicRE has agreed to increase its
shareholding in the Makuutu project from 60 per cent to 94 per cent.
Rwenzori Rare Metals, the minority shareholder in the project, is in the
process of selling its stake in the project after its exploration license
expired at the end of December 2023.

 

The Makuutu rare earths project contains a basket of different minerals.
IonicRE says it is constructing a demonstration plant that will guide some
of its test works and mine plan.

 

URANIUM DEPOSITS

 

Government is showing renewed interest in uranium deposits, just over 10
years since it issued an order stopping any award of exploration licenses to
prospective investors.

 

Currently, government is undertaking tests on different samples with the
hope of attracting a prospective investor to partner in developing a
project. Government will continue to exclusively explore for potential
uranium targets throughout 2024 before it commits on its next plan.

 

The government remains committed to its plans of introducing nuclear energy
into its energy mix by 2032. The government wants one of the two large
nuclear reactors it intends to commission - each with a capacity of 1GW - to
use local uranium resources.

 

OROM CROSS GRAPHITE

 

The Orom Cross graphite project in the northern Uganda district of Kitgum
remains a promising development. And with graphite listed as a critical
mineral, which is used in lubricants and batteries, the developments at the
project will be followed keenly by prospective investors.

 

Blencowe Resources achieved a lot when it signed a $5 million grant from
Development Finance Corporation (DFC), a US financial institution, for its
Orom Cross project. The success of the tests and studies that Blencowe is
undertaking will determine if the next lines of tranches from DFC will be
released.

 

Should Blencowe succeed in getting more funding, there will be a major
announcement coming out of Kitgum towards the end of 2024 about plans of
progressing the project to the development stage.

 

There is probably no time that Uganda's mining industry looked brighter over
the last decade than it is today. Non-traditional minerals such as tin,
graphite and rare earths are raising the profile of Uganda's mining industry
within cabinet meetings. On top of that, the exploration of limestone in
places such as Karamoja has led to the emergence of new cement companies.

 

Although critical minerals are now being sought-after, Uganda's mining
sector is still held back by the limited budget support. Government spend on
the mining sector is still below two per cent of the total government
resource envelop. Government intends to allocate $8.3 million to the mineral
subsector in the next financial year, which starts in July 2024, which
represents a 35 per cent drop from the previous financial year.

 

The limited funding means that human capital is not enough to regulate and
supervise the sector. Government is, therefore, losing a lot of revenue due
to challenges in supervising the mining sector.

 

Also, collection of government data for certain mineral areas is not moving
as fast as investors would wish. If there is a doubling of government
funding to the mining sector, the outlook of Uganda will be transformed
greatly.

 

jeff at observer.ug

 

This outlook for 2024 first appeared in the Deep Earth report

 

   - Observer.

 

 

 

 

Uganda: Govt to Spend Sh23 Trillion On Debt Repayment Next Financial Year

Kampala, Uganda — The Ministry of Finance has revealed that the Government
will spend up to UGX 24.9 trillion on servicing Uganda's public debt.

 

This comes months after the Bank of Uganda reported that Uganda's public
debt as of August 2023 stood at UGX 88.807 trillion. The August debt figures
do not include the UGX 7 trillion worth of loans Parliament approved in
December.

 

While appearing before Parliament's Finance Committee to present the 2024/25
National Budget Framework Paper, Stephen Ojiambo, Commissioner of Accounts
in the Treasury Operations, said that in the coming financial year, the
Ministry of Finance will focus on payment of each debt as when it falls due
so as not to attract interest from the lenders.

 

 

According to the Ministry of Finance, the projection for expenditure on
external amortisation has increased because of huge principal repayments of
UGX 950 billion on the Karuma power dam project, UGX 190 billion on the
Isimba dam, UGX 108 billion on Kabalega International Airport, UGX 218
billion on Afrexim Budget support, UGX 241 billion on Standard Bank and UGX
365 billion on TDB budget support.

 

The latest development comes at the time the Bank of Uganda, in its
quarterly State of Economy report for December 2023, expressed concern over
the increasing public debt, saying that this is exerting pressure on revenue
collections with the report stating, "Interest payments and external debt
principal repayments exert elevated pressure on tax revenues to the extent
that for every UGX 100 collected in tax revenues, UGX 32 goes to debt
service, diminishing resources available for service delivery."

 

 

Support to private projects

 

The Ministry of Finance also revealed plans to inject UGX 197 billion into
Roko Construction Company and Lubowa Specialised Hospital. Officials said
this would be part of the Government's obligation to purchase shares in Roko
Construction Company and payment of four promissory notes for Lubowa
Specialised Hospital. The obligations to the construction firm and Italian
Enrica Penetti's Lubowa Specialised Hospital are projected to mature during
the 2024/25 financial year.

 

DR Congo debt

 

Next financial year, the Government has also budgeted for UX 274 billion as
part payment of the reparations to the Democratic Republic of Congo for the
resources that were plundered when the Ugandan troops operated in the
neighbouring country in the late 1990s. A 2001 UN report found Uganda's Army
guilty of looting minerals, coffee, timber and livestock during an earlier
deployment. In February 2022, the International Court of Justice (ICJ)
ordered Uganda to pay DRC $325m (about UGX1.234 trillion).

 

 

However, Basil Bataringaya, MP for Kashari North, wondered why the
Government is meeting debt obligations of international lenders and
commercial banks but ignoring the domestic arrears, whose biggest victims
are the local suppliers of goods and services to Ministries and agencies.

 

"I am aware that our current domestic arrears stand at about UGX 7.7
trillion, but when I was reading through the Budget Framework Paper, I saw a
provision of UGX 200 billion. So the UGX 7.7 trillion, these are Ugandans
who have lent money to the Government free with no interest rate, they have
supplied, they have done business, but they aren't yet paid," said
Bataringaya.

 

He warned that with the meagre money being put aside to clear domestic
arrears, it would take the Government around four decades to clear the
current domestic arrears.

 

"Now, UGX 7.7 trillion, if we take UGX 200 billion every year, we are going
to take 39 years to pay this UGX 7.7 trillion. So, my question is, this
person who supplied Uganda, what hope does he have? And remember, they used
bank loans, some of them will commit suicide," added Bataringaya.

 

Effects of anti-gay law

 

During the meeting, Henry Musasizi, Minister of State for Finance (General
Duties), revealed that the enactment of the Anti-Homosexuality Act has
created external financial risks and uncertainty for Uganda, thus prompting
the government to intensify negotiations with the World Bank to lift the ban
on lending to new projects in Uganda.

 

"The enactment of the anti-homosexuality Act has created external financing
risks and uncertainty. We have continued with our engagements with the World
Bank to ensure the lifting of the ban on the financing of the new projects,"
said Musasizi.

 

He said that Uganda's economic situation is further challenged by the lagged
effects of COVID-19 on economic growth and, consequently, revenue
mobilisation. The sharp increase in interest rates globally has increased
the cost of external borrowing.

 

Bank of Uganda also, in its December 2023 State of Economy Performance
Report, revealed that the pronouncement by the World Bank to halt funding
projects in Uganda following the passing of the Anti-Homosexuality Act saw
the Uganda Shilling depreciate in value against the dollar date.

 

According to the Central Bank, the shilling depreciated by 8 per cent to UGX
3,825.33 per US dollar in September 2022 from UGX 3,541.46 in April 2022.
BOU had to increase the cash reserve requirement (CRR) by 2 percentage
points to 10 per cent in June 2022 to drain excess liquidity and support the
shilling. Inflation has since fallen sharply, and portfolio outflows reduced
significantly.

 

"The exchange rate has been broadly stable, except in recent months, when it
depreciated, driven by sentiments around the World Bank's pronouncement on
the suspension of new financing," as noted in the Central Bank report.

 

Muwanga Kivumbi, MP for Butambala County, raised concern about the sharp
increase in commitment fees that are set to rise from UGX 19.348 billion to
UGX 70.616 billion. Commitment fees are charged on loan amounts not yet
disbursed after project effectiveness by creditors such as the African
Development Bank, French Development Agency, Exim Bank of China, and Exim
Bank of Korea, among others.

 

The Ministry of Finance, in its September 2023 Debt Statistical Bulletin,
indicated that Uganda's undisbursed debt reduced from $3.13 billion (about
UGX 11.850 trillion) as of June 2023 to $2.99 billion (about UGX11.321
trillion) by the end of September 2023 and all these idle loans are
attracting commitment fees.

 

   - Independent (Kampala).

 

 

 

 

 

Rwanda: Inadequate Financing Undermining Rwanda's Mining Potential -
Official

Lack of domestic financing tailored to the mining sector's needs is making
Rwanda's mineral business highly reliant on loans from foreign companies and
therefore biting into the country's revenues because investors use a big
chunk of their revenues to repay credit, lawmakers heard on Wednesday,
January 10.

 

This was revealed during a session in which Rwanda Mines, Petroleum and Gas
Board (RMB) officials appeared before the Lower House's Committee on
Political Affairs and Gender to provide responses to sector-specific issues
highlighted in the Office of Ombudsman's report for the fiscal year
2022/2023.

 

 

ALSO READ: Rwanda poised to meet $1.5bn mineral export target - regulator

 

The RMB CEO, Yamina Karitanyi, told lawmakers that majority of mining
activities in Rwanda were still artisanal, indicating that such a situation
creates challenges including issues related to environmental protection, in
addition to losing some minerals, as a result of the use of traditional
mining techniques.

 

All this stems from a general lack of access to finance among investors in
the sector, she said, pointing out that available financial products from
banks do not favourably respond to the sector's needs. While the extraction
of an estimated 80 per cent of minerals in Rwanda is done by local firms --
foreign companies account for almost 20 per cent of minerals extracted in
the country -- the trade of these naturally formed precious substances is
dominated by foreign finance, according to RMB Deputy Chief Executive
Officer, Ivan Twagirashema.

 

 

Twagirashema said that it is the traders who mainly need a lot of money so
that they can buy minerals to sell on the international market. Since
traders get funding from foreign financiers who also want to purchase the
minerals from the former, the financiers set conditions that result in the
traders remaining with a small margin, he pointed out.

 

"That's why money is generated, but it immediately gets back (in form of
loan repayment). That is why, of the $1 billion we will reach this time
[2023], a small proportion will remain in our economy," he said.

 

"We want to reach a level where our banking system has trust in them and
provides them with finance."

 

ALSO RAED: Mining: Officials confident sector will fetch $1b by end of 2023

 

Karitanyi said that foreign investors are able to buy minerals from Rwandans
and employ them, because they have access to better financing instruments
abroad.

 

 

"The competition we have currently is a foreigner who can go to the London
Stock Exchange, takes the most appropriate instrument, brings money here,
recuperates their investment but also takes the money back," she said.

 

Proposed solution

 

While there are countries where investors offer mining concessions as
collateral for bank loans, Karitanyi said, this is not possible in Rwanda
because, among other reasons, investors do not have enough exploration data
for their mineral reserves.

 

She noted that collaterals that local banks accept include buildings,
indicating that the maximum value of residential houses - for the relatively
well-off - is about Rwf500 million, an amount that is too little for mining
business.

 

"What we need is an access to finance for mining purposes. If you go to
banks here, you will not find a financial instrument meant for mining" she
told lawmakers, pointing out that mining requires long-term and affordable
loans.

 

For her, "the mining sector should be digested in our baking sector."

 

She expressed the concern that even the limited financing products available
on the market are short-term loans.

 

"Mining is a long-term endeavor, it's a long-term investment," she said,
pointing out that the government is committed to de-risking through carrying
out mineral exploration research to complement what investors can do, but
local banks should also develop financial products that adequately support
the sector.

 

"What we have started doing is holding talks between entities including the
Ministry of Finance and Economic Planning and banks to see how we can be
able to get finance that can be used in mining. This will help us to acquire
equipment which can help us to shift from artisanal mining practices to
professionalisation and modernisation," she said.

 

Rwanda's mining sector generated $851.6 million (approx. Rwf1 trillion) in
export revenues from January to September 2023, representing an increase of
45.6 per cent compared to $584.8 million recorded during the same period in
2022.

 

The country targets to earn $1.5 billion in 2024, according to RMB.

 

   - New Times.

 

 

 

 

Nigerian Economy to Grow By 3.3% in 2024, Says World Bank

Nigeria's per capita income is set to return to its pre-pandemic levels by
2025, reflecting a resilient recovery from the challenges posed by the
global health crisis.

 

The World Bank has revised its growth projections for Nigeria, foreseeing a
promising expansion of 3.3 per cent in 2024.

 

The bank in its Global Economic Prospects report for January 2024 also
forecast that the country's per capita income is set to return to its
pre-pandemic levels by 2025, reflecting a resilient recovery from the
challenges posed by the global health crisis.

 

According to the report, the Sub-Saharan African (SSA) region, which
includes Nigeria, witnessed a deceleration in economic growth, estimated at
2.9 per cent in 2023.

 

 

This slowdown is attributed largely to country-specific challenges, with
Nigeria facing issues such as elevated input prices for businesses.

 

Notably, three big economies in the region - Nigeria, South Africa, and
Angola - collectively experienced a diminished growth rate, averaging 1.8
per cent in 2023.

 

The improved economic outlook is attributed to the gradual fruition of
macro-fiscal reforms undertaken by the Nigerian government.

 

"Growth in Nigeria is projected at 3.3 per cent this year and 3.7 per cent
in 2025--up 0.3 and 0.6 percentage points, respectively, since June--as
macro-fiscal reforms gradually bear fruits.

 

"The baseline forecast implies that per capita income will reach its
pre-pandemic level only in 2025," it said.

 

 

Key sectors driving this growth include agriculture, construction, services,
and trade, the report said.

 

The World Bank's analysis points to these sectors as significant
contributors to the overall economic expansion in the coming years.

 

Background

 

Over the past few years, there has been a notable escalation in food prices
throughout Nigeria, exacerbated by the effects of government policies such
as the removal of subsidies on petrol, among other factors.

 

Responding to the worsening food security situation, President Bola Tinubu
declared a State of Emergency in July, aiming to address the surge in food
prices and alleviate the challenges faced by the populace.

 

He also directed that "all matters pertaining to food & water availability
and affordability, as essential livelihood items, be included within the
purview of the National Security Council."

 

Inflation

 

The World Bank report also showed an expected easing of inflationary
pressures, linked to the impact of exchange rate reforms and the removal of
fuel subsidies.

 

As these concerns gradually ease, inflation is predicted to stabilize.

 

"Inflation should gradually ease as the effects of last year's exchange rate
reforms and removal of fuel subsidies fade. These structural reforms are
expected to boost fiscal revenue over the forecast period," it said.

 

In November, Nigeria witnessed a surge in its annual inflation rate,
reaching 28.20 per cent, as reported by the National Bureau of Statistics.

 

On a year-on-year basis, the headline inflation rate in November 2023 was
notably higher by 6.73 percentage points compared to the rate recorded in
November 2022, which stood at 21.47 per cent.

 

While acknowledging these projections, the World Bank also emphasised the
need for continued vigilance and policy adjustments to navigate potential
challenges and uncertainties on the global economic horizon.

 

.

 

   - Premium Times.

 

 

 

East Africa: Scrap Metal Smuggling Could Cripple East Africa's
Infrastructure

Despite Kenya's export ban, members of the scrap metal industry are
colluding to spur the illicit trade.

 

On 11 January 2022, Nairobi was plunged into darkness after Kenya Power lost
supply along the Kiambere-Embakasi high voltage transmission power line.
Vandals in search of scrap metal had removed cross beams on the angle
towers, causing the towers to collapse.

 

That same month, Kenya's president at the time, Uhuru Kenyatta, imposed a
national ban on the local trade and export of scrap metals and scrap
batteries. The ban sought to safeguard essential infrastructure from
vandalism and protect East Africa's lead-acid battery manufacturers, who
source their raw materials from scrap batteries.

 

 

Scrap metals are used to produce steel products in the housing and road
construction industries, and batteries are recycled to manufacture new
lead-acid batteries.

 

In May 2022, the trade minister lifted the ban on the local trade, while
maintaining the prohibition on scrap metal exports. The ban was lifted after
regulations were developed that stipulated higher penalties for those found
guilty of repeated scrap metal export offences. The 2022 Scrap Metal Rules
added that second-time offenders should be fined approximately US$132 000
and serve five years in jail or both.

 

However, it seems these new regulations are doing little to reduce the
vandalism of public infrastructure or the theft that feeds scrap metal
smuggling from Kenya to the rest of East Africa. In May 2023, the Kenya
Revenue Authority intercepted five trucks transporting stolen scrap metal
and scrap batteries to Tanzania at the Taveta border.

 

 

Warehouse and scrap yard owners are key recipients and exporters of scrap
metals from Kenya

 

In the same month, a joint operation between police and Kenya Power saw
scrap metal dealers arrested for possessing property belonging to
electricity or telecommunication companies. Three months later, scrap metal
dealers were caught vandalising government vehicles at a garage in Nairobi.

 

According to Kenya's Scrap Metal Council, scrap metal smuggling in East
Africa is enabled by porous borders. Busia, Namanga, Taveta and Lunga Lunga
are some hotspots through which scrap metal is smuggled into Uganda and
Tanzania.

 

In 2022, the Kenya Roads Board set aside approximately US$40 million (KES5.9
billion) to replace vandalised road barriers, poles, road lights, bridges
and electric wires. This type of destruction of infrastructure continues as
organised criminals profit from the rising demand for scrap metal in East
Africa.

 

 

The illicit value chain that sustains the scrap metal trade starts with
'collectors' who vandalise public communication or transport infrastructure
to steal metal. They sell the scrap to warehouses or yards for US$0.26 per
kilogram and to other traders for US$0.33 per kilogram. The metal is then
sold to larger warehouses, which collude with transporters and border
officials to export the goods to neighbouring countries, including Tanzania.

 

Kenya's Scrap Metal Council believes that revoking trade licences is key to
deterring the illicit trade

 

While Kenya's ban on exporting scrap metal and batteries led to a crackdown
on collectors in major urban centres such as Nairobi, Nakuru, Nyeri and
Kisumu, it spared warehouse and scrap yard owners - the main recipients and
exporters of scrap metals.

 

Other segments of the illicit value chain have also been in the spotlight.
In May 2023, scrap metal dealers were linked to the use of child labour in
the collection of metals in Kericho County. Children Officer for the county,
Daniel Kiba, noted the increased number of children dropping out of school
to collect metal for sale to nearby scrap yards and warehouses.

 

Spokesman for the Battery Manufacturers Association, Peter Wafula, says
illegal exports continue because the licences of dealers whose trucks are
intercepted at border points while exporting scrap metals haven't been
cancelled. Also, the lack of a regional framework against scrap metal
smuggling enables the Tanzanian market for Kenyan goods. In Tanzania,
dealers are fined just US$4 000 for exporting scrap metal without a licence.
In Kenya the fine is over US$65 000.

 

Kenya should consider a permit system for importing furnaces and other
machines that facilitate smuggling

 

While fines have been imposed on dealers, the Scrap Metal Council believes
that revoking trade licences is key to deterring the trade in stolen metal.
This will also enhance the regulation of the scrap metal industry in Kenya
and protect critical infrastructure from vandalism.

 

Kenya's government must coordinate the agencies involved to collect
information, conduct border surveillance and prosecute those violating the
scrap metal export ban, including corrupt officials facilitating smuggling
in East Africa.

 

As the source of scrap metal smuggled into the rest of East Africa, Kenya
must take additional steps to tighten controls. These could include a permit
system for importing furnaces and other machines used to facilitate scrap
metal smuggling, as has been proposed in South Africa. This would help track
those who vandalise public infrastructure to smelt metal.

 

As with so much cross-border organised crime, harmonising legislation and
penalties across East African countries would help disrupt the theft and
smuggling of scrap metals. It would also limit the costs associated with
vandalised public infrastructure.

 

   - ISS.

 

 

 

 

South Africa: Prasa Settlement to Double in Size in Spite of Problems With
Water and Sanitation

Nearly 500 more families to be moved in by the end of the month

 

The number of families living on land owned by the Passenger Rail Agency of
South Africa (PRASA) near Stock Road train station in Philippi East, Cape
Town is to double by the end of January. But the 400 families already living
there complain of a shortage of toilets and water.

 

A total of 891 households are to be moved to the site.

 

This is part of Operation Bhekela, a joint operation between PRASA, City of
Cape Town, the Housing Development Agency, and national and provincial
departments of transport, human settlements, and public works, to clear more
than 5,000 shacks built along Cape Town's Central railway line at Langa,
Nyanga, and Philippi.

 

 

People settled on the railway line and rail reserve during the Covid
lockdown in 2020, when many could no longer afford to pay rent as
backyarders.

 

Zahid Badroodien, City of Cape Town Mayoral Committee member for water and
sanitation, said water is provided by tanker to the Stock Road station site
twice a week. He said the tanker had come on 3 January, 9 January and would
come again on 11 January. But residents say the tanker has not been seen
since 27 December.

 

They say they have to fetch water for drinking, cooking and washing from the
neighbouring suburbs of Acacia and Heinz Park or go further away to informal
settlements to draw water from communal taps.

 

"Water is a basic necessity and we just can't live without it," said
resident Lithimla Njokweni.

 

There are 40 toilets on the site but half of them have not been opened. The
rest are chemical toilets which, residents say, are not cleaned often
enough.

 

"Toilets are getting full and are now smelly. Rubbish is starting to pile up
because people don't have a designated place to throw their dirt," said
Njokweni.

 

When GroundUp visited the area on Monday, the alleys smelt of urine.

 

Badroodien said the chemical toilets were serviced "regularly" and had been
serviced between 1 January and 7 January.

 

PRASA spokesperson Andiswa Makanda told GroundUp that by the end of January
891 families would have been relocated to the temporary site.

 

With regard to the permanent relocation of the families to formal houses,
Makanda said: "The permanent relocation is pending statutory processes such
as the outcome of the rezoning application that has been submitted to the
City of Cape Town."

 

   - GroundUp.

 

 

 

 

South Africa: Work Experience Opportunities for Western and Eastern Cape
Youth Now Open

The Western Cape Department of Cultural Affairs and Sport, through its Youth
and After School Programme, is calling for unemployed youth, aged between 18
and 25, to apply to be part of the Year Beyond Youth Service Programme for
2024.

 

Applications for the education programmes are now open for youth living in
the Western and Eastern Cape who meet the criteria.

 

All the education programmes require a matric certificate and some require
minimum marks for language or maths.

 

The Year Beyond platform offers young people the opportunity to get a year
of hands on working experience and build their work readiness competencies,
while also giving back to their communities.

 

 

Commonly known as YeBoneers, successful applicants will be placed either at
a school or community hub where they will assist learners and parents.

 

The Eastern Cape programme is run with funding from the national government
and facilitated by the Western Cape Year Beyond team.

 

"The opportunity to provide youth in the Eastern Cape with this experience
is an important part of skills development beyond the Western Cape," the
statement read.

 

According to the provincial department, the success of the programme is
evident as seen from the feedback received from previous years.

 

Citing the data, the department said 96% of participants believe the
experience helped them to get to know themselves better and 95% feel the
programme prepared them better for the world of work and study.

 

Meanwhile, between 75% and 78% of YeBoneers have progressed to becoming
economically active in the world of employment or study, or a combination of
the two, upon finishing the programme.

 

"I encourage our young people to apply for this opportunity. It is a great
programme for our youth which equips them with skills for entering the world
of work or study. We want to give our youth a hand up to become successful
and active members of society who contribute not only to the economy but
also serve their communities," said Western Cape MEC of Cultural Affairs and
Sport, Anroux Marais.

 

Applications and further information on the education streams are now open
via the website: https://www.yearbeyond.org/apply.

 

Applications close on 18 February 2024.

 

   - SAnews.gov.za.

 

 

 

 

Bitcoin: Crypto fans can now invest in exchange-traded funds - but what are
they?

The US has made the long-awaited decision to allow Bitcoin to be part of
mainstream investing funds.

 

It has approved what are known as spot Bitcoin exchange-traded funds (ETFs),
which can be purchased by anyone from pension funds to ordinary investors.

 

The announcement from the head of the Securities and Exchange Commission was
accompanied by a stern warning about risks associated with the asset.

 

But cryptocurrency fans reacted with glee - and memes about becoming rich.

 

The US financial watchdog had repeatedly rebuffed earlier requests for
approvals, citing concerns about potential for fraud and manipulation.

 

But a US court said last year its justification was inadequate.

 

The go-ahead comes after a false start on Tuesday, when the regulator had to
rapidly withdraw an "unauthorised" post announcing the decision early.

 

SEC chairman Gary Gensler said on Wednesday that investors should not
mistake the new approvals for an endorsement of the cryptocurrency.

 

"Bitcoin is primarily a speculative, volatile asset that's also used for
illicit activity including ransomware, money laundering, sanction evasion,
and terrorist financing," he said.

 

"Investors should remain cautious about the myriad risks associated with
bitcoin and products whose value is tied to crypto."

 

But what is an ETF?

 

ETFs are portfolios that allow investors to bet on multiple assets, without
having to buy any themselves.

 

Traded on stock exchanges like shares, their value depends on how the
overall portfolio performs in real time.

 

An ETF could comprise a combination of gold and silver bullion, for example,
or a mixture of shares in both top technology and insurance companies.

 

Some ETFs already contain Bitcoin indirectly - but a spot Bitcoin ETF will
buy the cryptocurrency directly, "on the spot", at its current price,
throughout the day.

 

Why is there such excitement?

 

About a dozen investment companies, including Blackrock and Fidelity, have
been waiting for months for the US Securities and Exchange Commission (SEC)
to give them the green light to start buying Bitcoin for their own ETFs.

 

And after weeks of wrangling over wording, the first have now been given the
nod.

 

This means a new group of investors can now enter the speculative world of
Bitcoin, without having to worry about getting digital wallets or navigating
crypto exchanges.

 

Billions of dollars are expected to pour into the Bitcoin market, as these
financial companies start buying the digital coin.

 

A minority of analysts say the cryptocurrency's price will be little
affected, as spot Bitcoin ETFs are already established in other countries.

 

But with the US giants entering the market, most people are expecting the
value of bitcoins to rise with demand.

 

Bitcoin to blockchain: What key crypto words mean

Is El Salvador's Bitcoin bet paying off?

The price is notoriously volatile, however.

 

It rose to nearly $70,000 (£55,000) a coin in 2021, before falling to
$16,000 in 2022 as scandals shook the industry.

 

But in 2023, it rose steadily, partly due to the hype around the Bitcoin ETF
approval, and is now at $44,000.

 

Based on an idea published online in 2008, by someone calling themselves
Satoshi Nakamoto, Bitcoin was the first cryptocurrency and remains the most
valuable and famous.

 

Its price is often seen as a barometer for the whole industry of thousands
of other coins, tokens and products built on the same blockchain technology.

 

And with an influx of new money into the ecosystem, many expect a surge in
interest in cryptocurrency technology in general.

 

How will the decision affect cryptocurrency adoption?

 

Some say this landmark decision shows the establishment is finally taking
Bitcoin seriously, at least as a speculative asset.

 

For those who consider Bitcoin legitimate "digital gold", what better proof
could there be than the biggest wealth-management institutions flocking to
buy, overseen by regulators?

 

Others say cryptocurrency is about rejecting traditional financial systems
in favour of a decentralised, people-powered alternative. And investment
bankers buying Bitcoin just to get rich on US dollars is not what Satoshi
Nakamoto had in mind.

 

But judging from the excitement on social media, the prevailing sentiment is
hope the cash injection will make existing Bitcoin investors rich.

 

What are the risks to future investors?

 

The price of Bitcoin can change rapidly and often without warning or
explanation.

 

So investors will have to weigh that up when they opt for ETFs linked to the
digital coin.

 

But ETFs are often sold as high-risk, high-reward products anyway.

 

Another potential risk is cyber-crime.

 

Bitcoin and other cryptocurrencies have been subject to huge and costly
attacks that have seen crypto companies drained of sometimes hundreds of
millions of dollars overnight.

 

And if the likes of Blackrock become major holders of Bitcoin, their
cyber-security will be tested in ways to which they are unaccustomed.

 

Another downside is the cost to the environment.

 

Bitcoin relies on a huge number of powerful computers around the world, to
process transactions and create coins.

 

Renewable energy use is growing - but it remains to be seen how investment
companies can square the potential environmental cost of Bitcoin with buyers
worried about environmental, social, and corporate governance (ESG)
compliance.-bbc

 

 

 

 

Boohoo put 'Made in UK' labels on clothes made overseas

Fast-fashion firm Boohoo put "Made in the UK" labels on potentially
thousands of clothes that were actually made in South Asia, BBC Panorama has
found.

 

Plain T-shirts and hoodies had their original labels removed at Boohoo's
flagship factory, Thurmaston Lane in Leicester, last year.

 

On Tuesday, the BBC reported that the firm is considering closing the site.

 

Boohoo said the incorrect labels were down to a misinterpretation of the
labelling rules.

 

Thurmaston Lane opened two years ago and was promoted by the retailer as a
UK manufacturing centre of excellence, offering end-to-end garment
production in the UK.

 

The mislabelling took place at the factory, affecting up to one in 250 of
Boohoo's global supply of garments between January and October 2023.

 

The BBC estimates that this could amount to hundreds of thousands of wrongly
labelled garments. However, the retailer would not provide its own figures.

 

Boohoo changed the labels on items of clothing

Boohoo claims it was an isolated incident which had happened as "a result of
human error".

 

A company spokesperson said, "We have taken steps to ensure this does not
happen again."

 

The garments had been shipped from Pakistan and other countries in South
Asia to Boohoo's Leicester factory where they were printed on.

 

'Significant failure'

The BBC showed its findings to Chris Grayer, who spent more than 10 years as
head of supplier ethical compliance at High Street retailer Next.

 

He said the mislabelling suggested that there had been a "significant
failure of inspection" - and if it had happened where he had worked,
"garments would be recalled or stopped from being sold and all the labels
would have to be altered to the correct label".

 

Sylvia Rook, lead officer for fair trading at the Chartered Trading
Standards Institute, said that based on information provided by Panorama,
replacing country-of-origin labels with "Made in the UK" ones in this way
was "incorrect" and "could potentially mislead consumers".

 

Philip Dunne MP, chair of the Environmental Audit Committee, called the
labelling findings a potentially very serious allegation.

 

"Consumers should not be misled as to the source of garments that they're
buying," he said.

 

On Tuesday, the BBC reported that Boohoo is considering the closure of its
Leicester factory, which is the Manchester-based retailer's only UK
manufacturing site.

 

BBC Panorama understands that the company is proposing to close Thurmaston
Lane later this year.

 

Boohoo has previously said the Leicester site would "showcase UK
manufacturing" and demonstrate that "great products can be produced
responsibly and ethically in the UK".

 

When Thurmaston Lane was opened in January 2022, it reportedly employed 100
staff.

 

"The proposed closure is sad for the workers promised sustainable work
there," said Dominique Muller from the advocacy group, Labour Behind the
Label.

 

"It is also sad because it suggests the Boohoo model of fast and cheap
fashion is unsustainable and cannot be made outside countries with extremely
low wages and poor social protection."

 

Boohoo said that it is in a period of consultation with workers, while it
considers what to do with the site.

 

"We opened Thurmaston Lane to support the Group in several ways, as in any
retail business, the role of our sites continues to evolve over time," a
spokesperson said.

 

"We must now take steps to continue to ensure we are a more efficient,
productive and strengthened business."

 

BBC iPlayer

Boohoo's Broken Promises

 

Fast fashion giant Boohoo faced serious criticism in 2020 for poor working
conditions at its suppliers. A Panorama investigation reveals renewed
pressure to cut costs.

 

Watch now on BBC iPlayer

 

BBC iPlayer

Boohoo pledged to overhaul its practices in 2020, following reports that
staff at a factory making its clothes in Leicester were earning less than
the minimum wage, and that working conditions were unsafe.

 

The company asked a senior barrister to review its supply chain. Alison
Levitt KC found the allegations to be "substantially true".

 

Boohoo then introduced Agenda for Change - which includes promising to pay
its suppliers a fair price for garments, with realistic timescales.

 

But in 2023, a BBC Panorama undercover reporter at the company's Manchester
HQ saw evidence of staff pressuring suppliers to drive prices down, even
after deals had been agreed.

 

The reporter discovered that hundreds of orders placed with Thurmaston Lane
were actually being made by seven factories in Morocco and four in
Leicester.

 

Secret filming by Panorama at one of these suppliers - MM Leicester Clothing
Ltd - revealed staff being told they might have to work late into the night
with just hours' notice to get Boohoo's orders completed.

 

After BBC Panorama's investigation, Boohoo said it had "responsibly
disengaged" from MM Leicester Clothing Ltd "whilst honouring any outstanding
orders."

 

It said the Thurmaston Lane plans were not related to the BBC Panorama
investigation.-bbc

 

 

 

 

Post Office paid Fujitsu £95m to extend Horizon

The Post Office has paid Fujitsu over £95m to extend the troubled Horizon IT
system for two years after a plan to move to Amazon had to be abandoned.

 

A serving postmaster told the BBC the software is still unreliable, and
causes money to disappear.

 

Costs and delays are still dogging the Horizon project more than two decades
after the contracts were first signed.

 

The Post Office said it plans to start trialling a new system in branches
this year.

 

When Fujitsu won the contract to install computer terminals in over 17,000
Post Office branches around the UK, it called it "the biggest non-military
IT project in Europe", designed to automate and simplify everything from
selling stamps to paying pensions.

 

Nearly 28 years later, it is still in use throughout the country, still
plagued with difficulties, and the Post Office is struggling to replace it.

 

It led to what has been called one of the most widespread miscarriages of
justice in British history. Thousands of sub-postmasters who used Horizon to
manage their businesses were held accountable for losses which were not
their fault, with 983 receiving criminal convictions.

 

Their plight received new public attention this year when ITV broadcast a
drama series about their fight for justice.

 

Horizon is still in use in UK Post Offices to this day. One postmaster, who
runs two Post Offices in the South East of England and spoke to the BBC on
condition of anonymity, said the system is still unreliable.

 

“You still get shortfalls. You can’t trust it. You can’t rely on it.”
However, since the sub-postmasters won their court case in 2019, the Post
Office is more likely to resolve significant disputes in the
sub-postmaster’s favour, he said.

 

A Post Office spokesperson said: "As you would expect, we have made
significant changes in the way we work with Postmasters."

 

Abandoning the cloud

Horizon is currently housed in two Fujitsu-owned data centres in Belfast. In
December 2022, the Post Office abandoned a plan to move it onto the vast
network of data centres run by Amazon – a more up-to-date, flexible and
robust system used by thousands of other online services known as ‘the
cloud’.

 

“Everything seems to be ‘in the cloud’ these days,” a Post Office
announcement breezily noted in 2022. “You may well use the cloud to store
photos and music on your devices, for example.”

 

But later that year, the plan proved too difficult, and was abandoned.

 

A Post Office spokesperson said: “The age of Horizon and the complexity
involved meant that particular programme proved too technically challenging
and costly. A decision was taken in November 2022 to discontinue this
particular programme and resulted in a need to extend support services for
our current data centres.”

 

Person using Horizon system

The cost of abandoning this plan was £31m, according to the the Post
Office’s latest accounts, published in December and first reported by The
Stack news website.

 

The Horizon contract was meant to expire in 2023 but the challenges of
replacing it have been so great that it has been extended twice - for £42.5m
in 2021, and again last year in two contracts worth £16.5m and £36.6m.

 

These take the contract up to 1 April 2025, at a total cost of £95.6m.

 

The Post Office justified the £16m contract extension because a “program to
transfer the services to a new cloud provider created fundamental technical
challenges that POL [Post Office Limited] could not economically and
technically overcome.”

 

The Post Office is still working on a replacement for Horizon, dubbed “New
Branch IT”. The first installations were meant to happen last year, but it
is behind schedule.

 

A Post Office spokesperson said: “We are still working to come off Horizon.
We’ve been testing basic mails transactions live on this new system in two
pilot branches. Next, we are adding and testing more mails and back-office
functionality. After evaluation, this will be the version that we plan to
install in pilot branches later in 2024.”

 

In 2022 the Post Office awarded Accenture a £27m contract to assist with
moving their IT systems onto the cloud, and a separate contract to work on
the user interface for the new system.

 

The Post Office’s accounts also note that: “A further impairment review at
the cash generating unit (“CGU”) level was performed during the year
resulting in an additional impairment of capitalised software costs of £115
million.”

 

In accounting terms, an impairment usually means that an asset which was
once considered valuable has become less valuable, creating a loss for the
business. The Post Office has not given the BBC more detail about how this
loss had come about.

 

Fujitsu and Accenture declined to comment.-bbc

 

 

 

Government unveils biggest nuclear expansion in 70 years

The government hopes to boost the nuclear power industry with the biggest
expansion of the sector in 70 years.

 

A new large scale nuclear plant would quadruple supplies by 2050, which the
government claims would lower bills and improve energy security.

 

It also said its £300m ($382.6m) nuclear fuel programme would reduce
reliance on overseas supply.

 

But the Association for Renewable Energy and Clean Technology (REA) said all
clean energy needed fast-tracking.

 

Nuclear power currently provides around 15% of the UK's electricity but many
of the country's aging reactors are due to be decommissioned over the next
decade.

 

The government's Civil Nuclear Roadmap is intended to bolster the UK's
energy independence by exploring a new site for another nuclear power
station of the size and scale of the £30bn plants under construction at
Hinkley Point in Somerset and committed to Sizewell in Suffolk.

 

Industry sources have told the BBC the leading candidates would include
Wylfa in Anglesea or Moorside in Cumbria.

 

"Dragging their feet"

But progress is could be slow - from planning to "power on" can take nearly
20 years. Consultations for Sizewell took 10 years alone and building work
there is yet to start, because of ongoing protests.

 

Nuclear plant protesters lose appeal hearing

The government will hope to address such problems by streamlining the
development of new power stations. By introducing smarter regulation it
anticipates it will be able to deliver new nuclear power plants faster.

 

Jack Abbott, an expert in the clean energy sector, who is also a Labour
candidate in the neighbouring constituency to Sizewell, said the government
had been "dragging their feet" on nuclear for too long.

 

"Fourteen years and not one new site opened, despite inheriting ten approved
sites from the last Labour government. Labour supports expanding the UK's
nuclear power fleet, which must form a critical part of our future energy
mix," Mr Abbott said.

 

The REA is also sceptical. It said the government had been "exploring" a new
private-led nuclear plant for years. However, the association did commend
the government on its plans to commit £300m to produce reactor fuel in the
UK - currently only commercially produced in Russia.

 

Policy director Frank Gordon added: "We need to accelerate the deployment of
all clean energy sources, especially renewable power from diverse sources,
plus supporting the roll out of the much-needed clean technologies, energy
storage working at all scales and duration."

 

But the government said the plans would also support thousands of jobs as
well as "pushing Putin out of the global market" to provide a quarter of the
UK's electricity needs.

 

Prime Minister Rishi Sunak said nuclear was the "perfect antidote to the
energy challenges facing Britain".

 

Of the two consultations being published on Thursday one will focus on "a
new approach" to siting future nuclear power stations, empowering developers
to find suitable locations. The other will lead on encouraging private
investment.

 

"Community engagement will remain critical to any decisions, alongside
maintaining robust criteria such as nearby population densities," the
government said.

 

Tom Greatrex, CEO of the Nuclear Industry Association, welcomed the
publication of the roadmap and streamlined regulation but said the UK needed
to develop both large and small nuclear generation "at scale and at
pace".-bbc

 

 

 

 

Amazon slashes jobs at Twitch, MGM and Prime Video

Amazon is to axe hundreds of staff across its subsidiaries Twitch, Prime
Video and MGM studios.

 

More than 500 Twitch employees - a third of the streamer's workforce - will
be laid off, according to a note from chief executive Dan Clancy.

 

Amazon said several hundred employees at Prime Video and film studio MGM
will also lose their jobs this week.

 

The tech giant laid off more than 27,000 staff members in 2023 despite
bumper profits.

 

Twitch was initially set up for gamers to watch and share video gameplay
online. It was bought by Amazon in 2014 for $970m (£585m at the time).

 

In an email to employees, Mr Clancy said he was taking the "painful step to
reduce our headcount" to "build a more sustainable business".

 

He added that the company paid out $1bn to streamers in 2023, but had
"conservative predictions of how we expect to grow in the future."

 

Amazon made $9.9bn profit in July to September, according to its most recent
earnings report. That was up from $2.9bn in the same period in 2022.

 

In an email sent to staff at Prime Video and Amazon MGM Studios, senior vice
president of the department Mike Hopkins wrote: "We've identified
opportunities to reduce or discontinue investments in certain areas while
increasing our investments and focus on content and product initiatives that
deliver the most impact."

 

Mr Hopkins added that it was a "difficult decision to make".

 

The email indicated that job losses affect staff in the US and around the
world.

 

Amazon bought the hundred-year-old MGM Studios for $8.45bn in 2021.

 

In December, it announced it would start putting adverts on Prime Video from
5 February 2024.

 

The reductions at Amazon are the latest in a long series of job cuts in the
tech sector, which had expanded rapidly as people increasingly turned to
digital services during the pandemic, before contracting as that enthusiasm
waned.

 

According to US career consultancy Challenger, Gray & Christmas, the tech
sector cut 168,032 jobs in 2023 - up 73% compared to 2022.-bbc

 

 

Software firm SAP to pay $220m over bribery charges

Global software giant SAP has agreed to pay more than $220m (£172m) to
settle bribery charges involving government officials around the world.

 

The money and gifts, typically routed via outside business consultants, were
intended to help win business in South Africa, Indonesia and elsewhere,
according to US officials.

 

The schemes allegedly operated from at least December 2014 until January
2022.

 

SAP said it had cooperated with investigators and overhauled policies.

 

"SAP remains vigilant in maintaining the highest standards of ethics and
compliance," the company said in a statement.

 

SAP, which is headquartered in Germany and has shares listed in the US, is
among the world's largest software companies.

 

According to US court documents, subsidiaries of the firm in operating in
five countries in Africa, Azerbaijan and Indonesia engaged in bribery
schemes, "repeatedly" breaking company policies that were intended to guard
against corruption.

 

Golf, shopping and dining

In South Africa, it allegedly paid millions in fees to consultants, despite
no work being performed, and funded trips to New York for government
officials, including golf outings.

 

In Indonesia, it also funded shopping excursions and dining, as well as
making more explicit payments.

 

The Securities and Exchange Commission order cites WhatsApp discussions
including the instructions: "Seventy million, in fifty thousand bills
Bring
empty envelope".

 

Officials said SAP - which was punished for violating US laws against
bribery and corruption in Panama in 2016 - had failed to institute processes
to address the high risk of such issues, inaccurately recording the bribes
as legitimate business expenses.

 

The settlement includes a $118.8m criminal fine, according to the Department
of Justice and Securities and Exchange Commission, which worked with
authorities in South Africa on the investigation and announced the deal.

 

Penalties were reduced from the maximum possible after SAP cooperated with
investigators and moved to punish and fire employees involved in the
payments.

 

"SAP has accepted responsibility for corrupt practices that hurt honest
businesses engaging in global commerce," said US Attorney Jessica D. Aber
for the Eastern District of Virginia.

 

"We will continue to vigorously prosecute bribery cases to protect domestic
companies that follow the law while participating in the international
marketplace."

 

The US said it would drop the criminal charges against the firm after three
years if SAP complies with the announced agreement.-bbc

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

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Skype:         Bulls.Bears 



 

 

 


 

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:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

 


 

 

 

 

 

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