Major International Business Headlines Brief::: 12 July 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  12 July 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria-EU Partnership On Tech Innovation Will Unlock Nigeria's Economy -
Govt

ü  Uganda: Youths Challenged to Take Up Opportunities in Uganda's Oil and
Gas Sector

ü  Uganda: Petroleum Authority Reassures On Steps to Mitigate Oil Spill

ü  Uganda: Coffee Sector Moves to Fulfill New EU Export Regulations

ü  Uganda: Emyooga Cash Filling Nets for Munyonyo Fishing Community

ü  Egypt's Economy Takes Steady Steps to Adapt to Global Crises

ü  Nigeria: After Meeting Labour Leaders, Tinubu Says Nigerian Workers
Deserve Improved Welfare, Better Wages

ü  Nigeria: Govt, Oil Producers Agree On Viable Crude Supply Framework to
Local Refineries

ü  Nigeria: Minimum Wage - Tinubu, Labour Adjourn for More Consultation

ü  Why both businesses and scammers love India's payment system

ü  Pioneering British AI chip designer bought by Japanese firm

ü  US inflation cools to slowest pace in a year

 


 <mailto:info at bulls.co.zw> 

 


Nigeria-EU Partnership On Tech Innovation Will Unlock Nigeria's Economy -
Govt

The Minister of Innovation, Science and Technology, Uche Nnaji, has said the
collaboration between European Union (EU) and the federal government will
help to enhance research in technology innovation, advance technology
development and unlock Nigeria's potential to explore the world of
technology.

 

The minister said this during the just concluded Nigeria-EU Innovation Days,
which held at the Landmark Centre in Lagos yesterday.

 

The minister who was represented at the event by the Director General,
National Space Research and Development Agency (NASRDA), Dr. Matthew
Adepoju, said technology innovation remained the engine of economic growth
of any nation.

 

 

"The collaboration will enhance capacity building, and the government is
committed to ensuring a good support system from all stakeholders in the
private sector and academia that will drive collaboration and innovation,"
Nnaji said.

 

Stakeholders that attended the forum expressed confidence that the EU-Africa
Innovation Agenda would be a game-changer that will unlock Africa's vast
potential.

 

The two-day event, jointly organised by the European Union (EU) and the
Federal Government of Nigeria, brought together representatives of the
Nigerian, African at large, and European research and innovation ecosystems
to discuss the innovation opportunities for researchers in the e-Health,
Agritech and Industry 4.0 ecosystem.

 

In his opening remarks, the Minister of Youth Development, Dr. Jamila
Bio-Ibrahim, said Nigeria had been on the cusp of technological revolution,
with a vision to harness the power of science, innovation, and technology to
drive economic growth, create jobs, and improve the quality of life for all
Nigerians.

 

 

 

 

 

Uganda: Youths Challenged to Take Up Opportunities in Uganda's Oil and Gas
Sector

Ugandan youth have been urged to harness the numerous opportunities in the
oil and as and

 

mining sector, to benefit from the country's national resources.

 

The call was made during the recently concluded 2024 Youth in Energy
Conference organized by

 

TotalEnergies EP Uganda and key industry players at the Makerere University
School of Public

 

Health Auditorium that provided a platform for Ugandan youth to explore and
leverage

 

opportunities within the sector.

 

 

The conference, held under the theme Involving Youth in Africa's Energy
Transition, put the youth at the centre of conversations around energy
exploration in Uganda.

 

While delivering a keynote address, Ali Ssekatawa, the Legal and Corporate
Affairs Director,

 

Petroleum Authority Uganda (PAU) urged the youth to take up opportunities in
the industry,

 

emphasizing that the highest demographic employed in the sector are youth.

 

"Since 2012, we have had about 14,000 people working in the industry and of
whom are mostly youth, with less than 5% being older people. We also have a
national tool called the oil and gas talent register. I encourage you all to
visit and register, the total numbers are now at 9,245," Ssekatawa said.

 

Marc-Antoine Eyl-Mazzega, the Director of IFR Center for Energy and Climate
tasked the youth to look into the mining sector, stating that most skills
and qualifications cut across.

 

 

"Now, there is also an opportunity to open up the golden years of mining and
I must say that the African continent is endowered with the best resources
in the world and everything you need is here. So, mining is also equally
cool and a lot of jobs that you can find in hydrocarbons, you will also be
able to do for the mining industry," he said.

 

NJ Ayuk the Executive Chairman, Africa Energy Chamber, pointed out the
economic opportunities available within the oil and gas industry, urging the
youth to be proactive in seeking out educational and professional
development opportunities.

 

He highlighted that today's youth is deeply engaged on social media and can
transform the energy industry into a "cool" field and also emphasized the
importance of engaging in accurate information and driving meaningful
conversations around EACOP.

 

"Africa's energy sector is ripe with potential. The key is for young people
to engage, learn, and innovate to tap into these opportunities," he
remarked.

 

Commenting on the gaps and limited access to information in the sector,
Rahma Nantongo, a

 

recent graduate of Bachelor of Science in Petroleum, Geoscience and
Production from Makerere University emphasized the need to have more
information sharing initiatives such as the youth in energy conference.

 

"I would like to highlight the need for key stakeholders in Uganda's energy
space to work together with student associations and societies because I
believe that it's a part of the grassroot approach needed to ensure that
these information sharing initiatives are successful,"Nantongo said.

 

- Nile Post.

 

 

 

 

Uganda: Petroleum Authority Reassures On Steps to Mitigate Oil Spill

Oil spills can happen any place where oil is being extracted, transported,
or stored.

 

The Petroleum Authority of Uganda (PAU) has assured the country of steps it
has made and more to be made to mitigate potential oil spill in the future.

 

Uganda is aiming to produce, by 2025, around 1.4 billion barrels from two
oil fields in Tilenga, the larger one operated by France's TotalEnergies,
and Kingfisher, entrusted to the China National Offshore Oil Corporation
(CNOOC).

 

During a meeting with the Ambassador Richard Kabonero, head of regional
economic cooperation department at the Ministry of Foreign Affairs, PAU
director of environmental health and safety Joseph Kabusheshe said they
already have in place has a robust, detailed and comprehensive national oil
spill contingency plan which she needs to share with neighbouring countries.

 

 

"These strategic frameworks are designed to ensure rapid and effective
response to any potential oil spill incidents within Uganda," he said.

 

The discussions focused on enhancing Uganda's international collaboration
efforts concerning oil spill contingency preparedness and response
mechanism.

 

Oil spills can happen any place where oil is being extracted, transported,
or stored.

 

The magnitude of harm from a spill is determined by many factors, including
the amount and type of oil, location, season, weather, and actions taken to
clean up the spill.

 

 

Highlighting the inherent need for trans-boundary cooperation, Dr Kabusheshe
said it was critical to collaborate with neighbouring countries that could
be affected by oil spill events.

 

The Petroleum Authority of Uganda is a regulatory body responsible for
monitoring and regulating the exploration, development, and production of
petroleum resources in Uganda.

 

PAU ensures that petroleum activities in the country are conducted in a
manner that promotes sustainable development, environmental protection, and
economic growth.

 

Amb Kabonero expressed support for enhanced regional partnerships, adding
that it was necessary to have a cohesive, multinational approach to oil
spill management, which not only safeguards the environment but also ensures
sustainable development and mutual prosperity.

 

"Uganda and its neighbours need to be prepared in the unlikely event of an
oil spill," Kabonero said.

 

 

The meeting agreed to establish a dedicated committee tasked with
formulating and implementing strategic agreements with neighboring nations.

 

This committee will serve as a pivotal platform for dialogue, cooperation,
and coordination, ensuring that Uganda and its neighbors are well-prepared
to address any oil spill contingencies with unparalleled efficiency and
effectiveness.

 

"Our proactive measures and collaborative efforts underscore our dedication
to protecting the environment and fostering regional stability," said Amb
Kabonero.

 

"By working hand in hand with neighboring countries, we can collectively
mitigate the risks associated with oil spill incidents and safeguard our
shared natural resources."

 

This initiative marks a significant milestone in Uganda's environmental and
energy sector policies, reflecting the country's steadfast commitment to
international standards of safety, sustainability, and regional cooperation.

 

The proactive stance taken by Uganda will not only enhance the nation's
capacity to manage oil spill incidents but also strengthen its position as a
responsible and forward-thinking leader in the global oil and gas industry.

 

The Regional Economic Cooperation Department, headed by Amb Kabonero, is
dedicated to fostering economic partnerships and collaborative efforts
across the East African region.

 

The office plays a critical role in promoting regional stability, economic
growth, and sustainable development through strategic initiatives and
partnerships.

 

In January last year, Uganda launched its first oil drilling programme, a
key milestone as the country races to meet its target of first oil output in
2025.

 

The Kingfisher field is part of a $10bn scheme to develop Uganda's oil
reserves under Lake Albert in the west of the country and build a vast
pipeline to ship the crude to international markets via an Indian Ocean port
in Tanzania.

 

Uganda discovered commercial reserves of petroleum nearly two decades ago
but production has been repeatedly delayed by a lack of infrastructure like
a pipeline.

 

The Kingfisher field, operated by the state-owned CNOOC, is expected to
produce 40,000 barrels of oil per day at its peak.

 

-Nile Post.

 

 

 

 

Uganda: Coffee Sector Moves to Fulfill New EU Export Regulations

The Ugandan coffee sector has started preparing itself to fulfill the new
European Union regulations on coffee set to take effect on July, 1, 2025.

 

The new regulations seek to ensure that any coffee planted after 2020 in a
deforested area is not allowed into the EU market

 

Speaking during a stakeholders' dialogue organize by SEATINI at Hotel Africa
spoke of strategies to meet the standards.

 

"The regulation requires that we trace our coffee from the garden to the
market, which means we must know who is producing the coffee, where are they
located, which coffee are they growing and this requires us to file a due
diligence certificate. So, for those exporting coffee, they must file a due
diligence certificate which shows their location in terms of GPS
coordinates," Dr. Gerald Kyaalo, Director Development Services at UCDA said.

 

 

"If you have more than 10 acres of land you shall require a polygon map. A
polygon is kind of the entire drawing of your garden and if you have less
than 10 acres we require, one GPS point is mandatory for us to access the
European Union market."

 

SEATINI's Herbert KafeeroKyalo emphasized the need to have a national
traceability system by December 31, 2024, which includes comprehensive
farmer registration and location data.

 

" We need a national database where we have all our coffee farmers and their
locations and whether they have four acres or more. We must have it such
that our exporters are able to access the system, download the due diligence
certificate that shows that the coffee we are exporting is actually not
related to or is not resulting from deforestation, for us to achieve that,
we need to register and map all our farmers before January, 1."

 

 

Christine Kaaya Nakimwero, the Shadow Minister for Water and Environment,
advised UCDA to prioritize educating all farmers on the benefits of the new
regulations to avoid misconceptions.

 

She emphasized the importance of inclusivity, particularly for small-scale
coffee farmers.

 

"As we navigate the new EU directives, it is crucial we ensure every coffee
farmer understands its impact. Transparency and education will empower them
to thrive," she said.

 

"We need to be clear on the relationship between the database and taxation
of farmers to avoid any misconceptions that could drive them away from
compliance."

 

Herbert Kafeero Programs and Communications Manager at SEATINI Uganda
explained the importance of the new regulations to Uganda.

 

 

urged all coffee farmers to meet several traceability requirements by the
deadline of December 31, 2024 citing the significance of these directives
for Uganda because we need the EU market.

 

"These regulations are important to us as a country because they spell out a
number of requirements that we have to meet. We have to meet these
requirements because the European Union is a very important export market
for most of our agricultural products, in fact if we talk about coffee, 60%
of it goes to European Union and countries in Europe. So it means we cannot
afford to lose out on this very important market," Kafeero said.

 

Kafeero emphasized Uganda's need to access every available market for its
coffee.

 

However, he noted there insufficient funding for UCDA which he said could
potentially hinder the mapping process..

 

"European Union deforestation regulation is very tight but challenge with
the mandated institution which is Uganda coffee Development Authority is
that it tabled a budget of shs35.6 billion in order to enable them undertake
mapping and traceability but government was able to allocate shs13.9 billion
which is less of what they needed," Kafeero noted.

 

He called on government to empower UCDA with a financial muscle to undertake
mapping, stakeholder consultations and be able to capture the details, the
traceability requirements and also submit that report before the deadline.

 

Benjamin Mizindo, a coffee farmer from Mityana, said that the new
regulations will benefit them but noted concerns with the deadline.

 

"The deadline to operationalize these directives is very near. It is a few
months left to January 2025. When we look at traceability, very many farmers
are going to be left out because when you looks at the communities, it will
take some good time to trace all of them that means that UCDA may end up
considering a particular section of farmers which they can easily trace. Let
us hope some of us won't be excluded."

 

-Nile Post.

 

 

 

Uganda: Emyooga Cash Filling Nets for Munyonyo Fishing Community

Emyooga beneficiaries in Munyonyo have defied the odds of urban poverty by
utilising the funds to enhance their household income.

 

This is inline with the presidential dream of driving the 68 percent of
households from subsistence to money economy.

 

In the outskirts of Kampala, there lies Munyonyo community that hosts
Mulungu landing site fishermen Emyooga Sacco with a wider membership of 125
individuals.

 

This Emyooga category has turned out to be a beacon of hope for the
fishermen community operating from the shores of Lake Victoria in Mulungu,
with a cash basket of about Shs130 million.

 

 

Aisha Niyindora, a beneficiary of the Mulungu fishermen emyooga Sacco, said
her life has changed completely.

 

"I used to struggle a lot with working capital because Covid-19 had almost
pushed me out of business, but since I joined the Sacco, I now only have to
apply for a loan in the group," she says.

 

With 10 associations at hand, the chairperson of this Omwoga group, Dizzy
Mukasa Nabaweesi, says the living conditions of their members have changed
on the account of Emyooga intervention.

 

In terms of performance, Munyonyo landing site Fishermen Emyooga Sacco
counts membership savings of about Shs28.7 million, a loan portfolio of
Shs110 million and unpaid loans of Shs68.9 million.

 

"The previously struggling community for capital, these have now ventured
into income generating activities giving a brighter future to their
homesteads and families," Nabaweesi said.

 

This emyooga initiative is an intervention by President Museveni intended to
reduce the subsidence levels of the majority of homesteads, steer job
creation as well enhance value addition to minimise sale of unprocessed
products.

 

-Nile Post.

 

 

 

 

Egypt's Economy Takes Steady Steps to Adapt to Global Crises

Egypt's Ambassador to Japan, Mohamed Abu Bakr, confirmed that the Egyptian
economy is taking steady and rapid steps on the path to adapting to the
pressures imposed by global crises.

 

Mohamed Abu Bakr explained that Egypt's economic progress takes place
despite the difficult circumstances that the global economy is going
through, and despite the additional effects of the severe crises surrounding
Egypt's neighboring countries.

 

During his delivery of Egypt's speech before the meetings of the fifth
session of the Arab-Japanese Economic Forum, the Egyptian Ambassador to
Japan indicated that Egypt continues with an unwavering will to carry out
major and deep economic reforms.

 

Abu Bakr went on explaining that the reforms include: increasing the
competitiveness of the Egyptian economy, empowering the private sector,
supporting the green transformation, mobilizing foreign direct investments,
as well as promoting Egypt as a regional center for supply chains for
European companies and a center for the transfer and circulation of
renewable and green energy.

 

-Egypt Online.

 

 

 

 

Nigeria: After Meeting Labour Leaders, Tinubu Says Nigerian Workers Deserve
Improved Welfare, Better Wages

President Bola Tinubu has declared that Nigerian workers, as the driving
force of the country, deserve improved welfare, better wages, as well as
safe and enhanced working conditions.

 

Addressing the leadership of the Nigeria Labour Congress (NLC), led by the
president, Comrade Joe Ajaero, and that of Trade Union Congress of Nigeria
(TUC), also led by its president, Comrade Festus Osifo, yesterday in Abuja,
Tinubu said his administration prioritised the welfare of Nigerian workers.

 

The president said, "I pay attention to everything around me. A happy worker
is a productive worker. And society depends on the productivity of the happy
worker."

 

 

He, however, called for realistic expectations as regards the minimum wage
question. According to the president, "You have to cut your coat according
to available cloth. Before we can finalise on the minimum wage process, we
have to look at the structure.

 

"Why must we adjust wages every five years? Why not two? Why not three
years? What is a problem today can be eased up tomorrow.

 

"There is much dynamism to this process if we are not myopic in our
approaches. We can take a surgical approach that is based on pragmatism and
a deep understanding of all factors."

 

In his remarks, Ajaero emphasised the need for an upward adjustment to the
minimum wage, stating, "Between living wage and minimum wage, we need to
find a balance. Things are difficult for the Nigerian worker."

 

He congratulated the president on the judgement of the Supreme Court
affirming the constitutional rights of local governments as regards
financial autonomy and other salient principles.

 

The NLC president said, "I have to congratulate you on the issue of local
government autonomy. We have been in the streets protesting for local
government autonomy. Now that there is light at the end of the tunnel, it
will amount to ungratefulness if we fail to commend you."

 

On his part, the TUC president said inflation had adversely affected the
value of the naira and the measures initiated by the government to address
the rising cost of food and transportation needed to kick in to give
citizens relief.

 

He said the rollout of Compressed Natural Gas-powered buses will help in
checking the high cost of transportation, while the recent directive on the
suspension of duty on certain food imports will bring down the prices of
food items, if properly implemented.

 

Osifo stated, "We commend you on the landmark judgement of the Supreme
Court. History will not forget what has happened today. With this judgement,
we believe Nigeria will make progress."

 

 

Meanwhile, the meeting between Tinubu and leaders of NLC and TUC over the
new minimum wage yielded no result, as it failed to arrive at a conclusion.

 

Before yesterday's meeting held at the president's office at State House,
Abuja, the government and the organised private sector had agreed on a
monthly minimum wage of N62,000, while organised labour vowed not to go
below N250,000 for the least paid worker in the country.

 

Another meeting between Tinubu and organised was scheduled for next week to
continue discussion on the way forward with the new national minimum wage.

 

According to labour representatives, the one week interlude in the
discussion with the president was introduced to allow them to go back and
"internalise" issues raised during Thursday's discussion.

 

Addressing newsmen at the end of the meeting, Minister of State for Labour
and Employment, Hon. Nkeiruka Onyejeocha, Ajaero, and Osifo affirmed that
the meeting did not discuss anything in terms of naira and kobo.

 

Onyejeocha stated that Tinubu only had a discussion with the leadership of
the organised labour as a father to children, but expressed the hope that a
solution will soon be found to the minimum wage issue.

 

She stated, "It was a meeting between father and children and... I think we
are hopeful that very soon everything will be resolved.

 

"When father and children talk, you know what it is. That's just exactly
what has happened and it took us almost an hour, and I believe that it's all
for good."

 

Ajaero said there was nothing like negotiation during the meeting, but a
discussion on the current economic realities in the country.

 

According to him, "in real sense, it wasn't a negotiation but a discussion
and we have had that discussion. We agreed to look at the real terms
probably and reconvene in the next one week.

 

"So that's where we are, because we didn't go down there to talk naira and
kobo. At least, there were some basic issues that we agreed on."

 

Asked whether organised labour insisted on the N250,000 demand at the
meeting, Ajaero said, "I remember mentioning that we didn't go into naira
and kobo discussion. Now the status quo in terms of the amount, N250,000 and
N62,000, remains until we finish this conversation."

 

Osifo also said organised labour put all the economic indices on the table
and how they were biting on Nigerians.

 

He said, "In the meeting, we tried to put the issues on the table. Issues
that are bordering and biting Nigerians today, the economic difficulties and
the value of the naira, how it has also eroded, how these have affected the
prices of commodities and goods in the market.

 

 

"So, we tried to put these before Mr President because he is the president
of the country and the buck stops at his table.

 

"We have had all the conversations with all his agents, but today (Thursday)
we said let us meet with the father of the country and have this
conversation and make the argument that labour always make.

 

"We made all the arguments, the economic analysis, macro, micro, fiscal and
monetary issues. So we put everything forward and at the end, the president
made his remark as the president and we all agreed let's go back to
internalise it, have some conversations and by one week's time, we will come
back and we will continue the meeting."

 

Minister of Information and National Orientation, Mohammed Idris, expressed
optimism that there would be a positive result after next week's meeting.

 

Idris said, "Recall that already, there is 62,000 naira that has been put
out there from the government side and the organised private sector, but the
organised labour is still not accepting that but we know that they will come
to the table. We know that this is something that is going to be workable
for Nigerians.

 

"The organised labour and the government will reach an agreement. We have
adjourned now for a week. The labour union has asked the government to allow
them at least a week to discuss further and we have allowed them. We're
going to reconvene in the next one week and we hope and we believe by the
end of day, we'll have something that is good for all Nigerians.

 

"We do hope that by the time we come together again next week, we'll have
something that we can put out for Nigerians to see and to agree with."

 

However, a source privy to the meeting said Tinubu urged the organised
labour to consider the N62,000 offer the federal government and the
organised private sector made.

 

The source said Tinubu narrated what led to the subsidy removal and how
Nigeria was feeding its neighbours and was suffering.

 

The source, who spoke on condition of anonymity, said, " President Tinubu
suggested that instead of waiting for five years to review the minimum wage,
we can continue to dialogue and see the possibility of reviewing it every
two years.

 

"He also said that the organised labour should consider the N62,000 offer
because it is double of the N30,000 we were paying."

 

The source also said when the NLC president reminded Tinubu that it would
amount to wage reduction if organised labour accepted N62,000, as the least
paid worker currently went home with N72,000 (including wage award and 40
per cent increase), he (Tinubu) just laughed.

 

-This Day.

 

 

 

 

Nigeria: Govt, Oil Producers Agree On Viable Crude Supply Framework to Local
Refineries

In a bid to resolve the lingering inability of oil producers to adequately
supply local refineries crude feedstock, the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) said it called a meeting of all parties, where
a sustainable template had been agreed upon.

 

NUPRC said in a statement yesterday that the federal government and crude
oil producers in the country had now committed to working towards a viable
supply of crude oil to Nigeria's refineries under a market-determined
pricing system.

 

It said the aim was to ensure that while the operators did business
optimally, the refineries were not also starved of feedstock.

 

 

The issue of pricing for local crude sold to refineries in Nigeria had
remained a major problem, with Dangote Refinery recently accusing the
International Oil Companies (IOCs) of having a mark-up price of as much as
$6 over the normal rates.

 

Consequently, the industry regulator, NUPRC, directed oil refiners in the
country to provide monthly price quote on crude supply to ensure a more
seamless process.

 

The oil producers came under the umbrella of the Oil Producers Trade Section
(OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) to the meeting
called by NUPRC.

 

They agreed to concede to a framework that would be mutually beneficial,
with the aim of ensuring that local refineries were not strangulated due to
"off-the-curve" prices, the statement added.

 

The focus of the meeting held at the instance of Chief Executive of the
commission, Gbenga Komolafe, was on the status review of the framework for
seamless operationalisation of domestic crude oil supply obligation
template.

 

 

NUPRC said it was part of efforts to effectively implement key sections of
the Petroleum Industry Act (PIA), especially the issue of pricing and crude
supply to the domestic refineries.

 

At the event, Komolafe said President Bola Tinubu was fully committed to
providing a level playing field for producers and refiners to do business in
the industry.

 

He emphasised the need for a rule of engagement to ensure that the pricing
model from the oil producers did not hinder the domestic refineries.

 

Komolafe directed producers and refiners to provide NUPRC with cargo price
quotes on crude supply and delivery for effective monitoring and regulation
of transactions among parties.

 

"We need to have the price quotes monthly," the statement quoted Komolafe as
directing.

 

 

The NUPRC chief executive pointed out the convergence between the Domestic
Crude Supply Obligation (DCSO) and the country's energy security, indicating
that his team was re-engineering its regulatory processes to address the
challenges.

 

He added, "We allow all our processes to be transparent. While the federal
government targets the implementation of the regulation, all parties must
submit to the rules of engagement as a guide for operation."

 

He said the regulator was committed to driving the willing buyer/willing
seller provision.

 

Komolafe stated, "We have to discuss pricing, especially, as parties have
committed to respecting their domestic crude oil obligation. As the
regulator, we don't want the upstream sector to be operated sub-optimally
through cost under-recovery.

 

"So, the regulator is very alive to that. In crude pricing we will never
allow price strangulation to 'disincentivise' our domestic refining capacity
optimisation. The regulator does not support cost under-recovery in the
upstream sector.

 

"We will continue to work to ensure that crude supply profiteering, as a
negative factor that can strangulate our domestic refining capacity
optimisation, is disallowed."

 

He emphasised the imperative for appropriate pricing to drive willing buyer
willing seller referencing guided Fiscal Oil Price (FOP) published by the
commission in line with the provisions of the PIA.

 

The NUPRC chief executive added, "The NUPRC is committed to attracting the
needed investments to boost upstream development and optimisation of our
hydrocarbon resources, just as we want sustainability of domestic energy
supply in the midstream and downstream sector."

 

Meanwhile, Nigeria's new Dangote mega-refinery lapped up ever more US crude,
bringing the barrels thousands of miles across the Atlantic Ocean, Bloomberg
reported yesterday.

 

Dangote bought more than 16 million barrels of West Texas Intermediate (WTI)
crude oil so far this year, data compiled by Bloomberg showed. In August and
September, the proportion it will take from the US -- as opposed to Nigerian
barrels -- may be set to rise, based on tenders for new supply seen by
Bloomberg.

 

For Nigeria and Dangote, the use of US crude likely reflects where there are
spare barrels available to buy in the world and the most competitive price.
The refinery has been billed as a way of helping Nigeria wean itself off
foreign fuel supplies.

 

The refinery near Lagos mostly runs on local crude supplies that can reach
the plant from offshore terminals in as little as a couple of days.

 

It took in more than 41 million barrels of feedstock in the first half of
the year as it completed test runs and gradually increased processing rates,
tanker-tracking data showed. Of that, about a quarter has been American
supply, the report added.

 

Inflows of American feedstock could be about to increase significantly. In
the past week, Dangote purchased five million barrels of WTI Midland for
delivery next month and in September.

 

The company also started a tender process in which it was looking to buy a
further six million barrels of American crude for September.

 

Nigeria competes with rival suppliers, like the North Sea, Mediterranean and
North Africa, for crude sales in Europe and Asia, per the Bloomberg report.

 

-This Day.

 

 

 

 

Nigeria: Minimum Wage - Tinubu, Labour Adjourn for More Consultation

President Bola Tinubu and the LEADERSHIP of organised labour have adjourned
talks till next for wider consultation with stakeholders on the new national
minimum wage.

 

The president met yesterday at the Presidential Villa, Abuja, with the
leadership of the Nigeria Labour Congress and the Trade Union Congress (TUC)
apparently to end the protracted imbroglio over the new wage.

 

Tinubu said Nigerian workers deserve improved welfare, better wages, and
safe and enhanced working conditions as the nation's driving force.

 

The meeting was attended by NLC president Comrade Joe Ajaero and his of
Nigeria TUC counterpart Comrade Festus Osifo.

 

 

Tinubu, in a statement by presidential spokesman Ajuri Ngelale, said he is
concerned about the welfare of Nigerian workers and that his administration
is prioritising their concerns.

 

"I pay attention to everything around me. A happy worker is a productive
worker. And society depends on the productivity of the happy worker," the
President said.

 

However, the president called for realistic expectations as regards the
minimum wage question, stating: "You have to cut your coat according to
available cloth. Before we can finalize on the minimum wage process, we have
to look at the structure."

 

"Why must we adjust wages every five years? Why not two? Why not three
years? What is a problem today, can be eased up tomorrow. This process has
much dynamism if we are not myopic in our approaches. We can take a surgical
approach based on pragmatism and a deep understanding of all factors."

 

In his remarks, Ajaero emphasised the need for an upward adjustment to the
minimum wage, noting: "Between living wage and minimum wage, we need to find
a balance. Things are difficult for the Nigerian worker."

 

He congratulated the pesident on the Supreme Court's judgement affirming the
constitutional rights of local governments regarding financial autonomy and
other salient principles.

 

"I have to congratulate you on the issue of local government autonomy. We
have been in the streets protesting for it. Now that there is light at the
end of the tunnel, it will amount to ungratefulness if we fail to commend
you," the NLC president said.

 

Also, Osifo said inflation has adversely affected the value of the naira and
that the measures initiated by the government to address the rising cost of
food and transportation need to kick in to give citizens relief.

 

He said the rollout of Compressed Natural Gas-powered buses will help in
checking the high cost of transportation, while the recent directive on the
suspension of duty on certain food imports will bring down the prices of
food items, if properly implemented.

 

"We commend you on the landmark judgement of the Supreme Court. History will
not forget what has happened today. With this judgement, we believe Nigeria
will make progress," the TUC President also said.

 

Ajaero told State House correspondents that, "We didn't go down there to
talk naira and kobo."

 

He said the previous proposals - the government's N62,000 and labour's
N250,000 - remain unchanged pending further talks.

 

The meeting, which lasted about 90 minutes, focused on broader economic
issues affecting Nigerian workers.

 

Osifo said they presented arguments on "economic difficulties and the value
of the naira, how it has also eroded, and how these have affected the prices
of commodities and goods in the market."

 

Both parties agreed to reconvene in seven days after further consultations.

 

Minister of Information Mohammed Idris described the minimum wage
deliberations as "a work in progress."

 

-Leadership.

 

 

 

 

Why both businesses and scammers love India's payment system

Every day, for the last seven years, Arun Kumar has set up his fruit stall
on a busy Mumbai street.

 

It's not an easy way to make a living.

“Being a street vendor is a challenge. There's the fear of being robbed or,
as I am not a licensed vendor, the local body can come and dismantle my
store anytime," he says.

 

But over the past four years at least one aspect of his work has become
easier.

“Prior to Covid everything was in cash. But now everyone pays with UPI. Scan
the code and the payment is done within seconds.

"No issues of handling cash, giving change to customers. It has made my life
and business smooth,” he says.

 

UPI, or to give it its full name the Unified Payments Interface, was
launched in 2016 in a collaboration between India's central bank and the
nation's banking industry.

 

It's an app-based instant payment system, which allows users to send and
receive money, pay bills and authorise payments in a single step - no need
to enter bank details or any other personal information. And, perhaps most
importantly, it's free.

It has become so popular that India is now the biggest real-time payments
market.

In May, UPI recorded 14 billion transactions, up from nine billion the year
before.

Getty Images A UPI QR code is seen in a vegetable shop in MumbaiGetty Images

Scan the code and enter your pin - UPI is fast and free

 

But the popularity and ease of use has made it a rich feeding ground for
scammers.

“While digital payments are convenient, they do come with vulnerabilities,"
says Shashank Shekhar, founder of the Delhi-based Future Crime Research
Foundation.

Mr Shekhar says that scammers use a variety of ways to trick people,
including persuading them to share their UPI pin number, which is needed to
authorise payments.

Some scammers have also created fake UPI apps, that are clones of legitimate
banking apps, and then steal login details or other valuable information.

"The pace at which digital transformation took place in the country means
unfortunately digital literacy and safe internet practice could not catch
up," says Mr Shekhar.

He says that between January 2020 and June 2023 almost half of all financial
fraud involved the use of the UPI system.

According to government figures there were more than 95,000 cases of fraud
involving UPI in the financial year ending April 2023, up from 77,000 in the
previous year.

Shivkali was one such victim. She had always wanted to own a scooter, but
they were beyond her budget.

However, earlier in the year the 22-year-old, who lives in Bihar state in
northeastern India, spotted one for sale on Facebook that looked like a
great deal.

"I grabbed the opportunity without thinking," she says.

A couple of clicks later and she was talking to the owner, who said that for
$23 he would send over the vehicle papers.

That went smoothly, so Shivkali continued to send the owner money, via
instant transfers. She eventually ended up paying $200, but the scooter
(also commonly called a Scooty in India), was never delivered.

Shivkali realised she had been scammed.

"I did not think I could be cheated, as I have some education background and
know what is happing in the world. But scammers are smart. They have an art
of speaking to convince the opposite person,” she says.

The government and the central bank are looking at ways to protect UPI users
from scammers.

But at the moment, if a victim wants compensation, they have to approach
their bank.

“The problem is deep rooted," says Dr Durgesh Pandey, an expert in financial
crime.

"Most of the onus lies with banks and telecom companies. They are lax in
making identity checks, that’s why the fraudster can’t be traced.

"But the challenge for banks particularly is that they have to balance
between inclusivity, ease of business and enforcement of identity checks. If
they are too rigid, the vulnerable section of society will remain without
banking facilities.”

But Dr Pandey argues that in most cases of fraud, the bank is not totally to
blame.

“It’s a complex question because the problem lies with banks, but it’s the
victim who is giving his credentials in most case. I would say both victim
and bank should bear the loss.”

 

Poonam Untwal  Poonam Untwal sits in front of her computer wearing a stripy
pink dress and headscarfPoonam Untwal

Poonam Untwal says UPI is helping rural economies

Despite those problems, UPI is being promoted in rural areas where access to
banking services can be difficult.

Poonam Untwal from Rajasthan runs a guidance centre which helps people use
the internet and digital banking.

"Most of us are not that educated, nor know the proper use of smartphones. I
teach them that phones are no longer a device just to talk to people but
banks at their fingertips," she says.

She believes that UPI will help develop the local economy.

"Many women like me have a small business that we run from our home. Now we
can receive and send money with UPI. People who don’t have smart phones come
to my centre to get their transactions done," she says.

As well as making inroads into rural areas, UPI is spreading overseas.

Retailers in Bhutan, Mauritius, Nepal, Singapore, Sri Lanka and UAE will
take UPI payments.

And this year, France become the first European country to accept UPI
payments, starting with tickets to the Eiffel Tower.

 

Back in Mumbai, Mr Kumar is happy that he no longer has to use cash, but
remains wary.

If he can't get a good internet connection then customers can, by accident
or design, make off without paying.

"For a small vendor like me it [UPI] made receiving money very easy. But I
am always scared of fraud. I keep hearing in the news how the UPI frauds are
increasing. Hopefully some mechanisms are invented so a small vendor like me
doesn’t face losses.”-BBC

 

 

 

Pioneering British AI chip designer bought by Japanese firm

British artificial intelligence (AI) chip firm Graphcore - once considered a
potential rival to market leader Nvidia - has been bought by a Japanese
conglomerate.

Softbank has not disclosed how much it paid - but it is thought to be
considerably less than the £2bn the UK company was valued at after a
financing round in 2020.

Graphcore head Nigel Toon told the BBC it was "a tremendous endorsement of
our team".

 

However, the deal is likely to raise questions about the UK's ability to
develop firms which can take on the biggest players in the booming AI chip
market.

It is not the first time Softbank has acquired a promising UK start-up - in
2016 it controversially acquired another British chip designer, Arm.

Ben Barringer, technology analyst at Quilter Cheviot, said it was "another
bitter blow" to UK financial markets to see Graphcore follow suit.

 

"It comes at a time when London is looking for a blockbuster tech listing to
reinvigorate its reputation as a global financial centre," he said.

The Science Secretary Peter Kyle called the deal a "welcome end to the
uncertainty that has faced Graphcore and its employees".

 

But he also admitted it was a "reminder of the important work that needs to
be done" to make the UK "the best place to start and grow a business.”

Mr Toon said he believed the deal showed UK firms could compete with big
tech, claiming Graphcore went "toe to toe with the largest companies in this
space with a much smaller team with much less capital".

 

"It's really positive for the UK, bringing new investment here to help drive
the growth agenda which as we all heard recently is so important."

He said he would stay on as head of the company, and the move would lead to
Graphcore hiring new staff in its UK offices.

The firm will now be a subsidiary under SoftBank but will remain
headquartered in Bristol.

 

Drop in value

Though the sale price has not been made public, it has been reported that it
is $500m (£390m).

Mr Toon said he would not "go into any of the speculation" around the sums
of money involved.

But he did concede that the valuation of tech firms in general "have been up
and down".

"We've certainly seen a lot of other companies, their values have dropped
and investors have taken appropriate cautious decisions about how they value
investments on their books.

 

"Hopefully, as a result of this deal, we'll see big investment and huge
progress for Graphcore together with SoftBank."

Graphcore was founded in 2016 by Mr Toon and Simon Knowles - its computer
chips, the Colossus series, allow for powerful computer processing.

However it has struggled with slowing sales since its bumper 2020 valuation,
and announced in 2022 that it had closed offices in Norway, Japan and South
Korea.

Then in 2023, major tech investor Sequoia Capital said it had entirely
written off the value of its stake in the company.

 

That was a major disappointment considering, at one point, Graphcore was
seen as a potential competitor to Nvidia in the AI space.

Its would-be rival has grown significantly in value and briefly this year
held the title of the most valuable company in the world.

"I think this is actually good news for UK tech and Graphcore," said Dan
Ridsdale, head of technology at Edison Group.

 

"Nvidia has carved out a dominant position in Generative AI... but there are
other opportunities within AI and the industry will need viable competitors.

"But Graphcore will need substantial capital - it is a positive that
Graphcore has found an investor willing to take the risk and provide the
capital to put it in the mix."-BBC

 

 

 

 

US inflation cools to slowest pace in a year

Price rises in the US cooled in June, building hopes that the world's
largest economy is moving on from the bout of high inflation that hit after
the pandemic.

Prices rose 3% over the 12 months to June, as lower petrol prices helped to
deliver the slowest price inflation in a year, the Labor Department said.

 

It marked the third month in a row that inflation has fallen, easing
financial pressures on households and potentially clearing the way for the
US central bank to cut interest rates as soon as September.

 

The Federal Reserve's key lending rate has stood at more than 5.3%, a
roughly two-decade high, since last year.

Fed officials say high borrowing costs are weighing on the economy, helping
to reduce the pressures pushing up prices.

Analysts said the latest report could help to convince the bank that it has
done enough to cure the problem.

>From May to June, prices actually dropped 0.1% - the first outright monthly
decline in years.

 

“The latest inflation numbers put us firmly on the path for a September Fed
rate cut," said Seema Shah, chief global strategist at Principal Asset
Management.

The progress is welcome news for the White House, which has struggled with
widespread economic dissatisfaction as the jump in living costs and interest
rates squeeze households.

 

Over the past year, petrol prices and the cost of cars and appliances have
fallen, but the cost of other staples has continued to rise.

Grocery prices are up 1.1% since June 2023, while housing costs have climbed
5.2%.

 

Last month, the increases in rents and prices for services such as
veterinary treatment cooled, noted Greg McBride, analyst for Bankrate.com

“Shelter and services costs have been the long-standing and persistent
trouble spots in the inflation readings but maybe the tide is starting to
turn," he said.

At hearings in Washington this week, Republican lawmakers warned Fed
chairman Jerome Powell that a rate cut ahead of the November election would
be perceived as trying to "gin up the economy" for the president.

 

Mr Powell refused to speculate about when the Fed would make its next move,
but defended the bank's political independence and said its decision would
be rooted in the data.

 

He told lawmakers a cut was the most likely next step, noting that the bank
was alert, not just to inflation figures, but also to signs that the economy
was slowing.

"We're very much aware that we have two-sided risks now and we're determined
to balance those as best we can," he said. "We want to see more good
inflation data and we also want to continue to see a strong labour market."

 

In June, the US unemployment rate crept above 4% for the first time in more
than two years.

Consumer spending, which is the main driver of the US economy, has also
shown signs of weakening, as rising numbers of firms warn that households
are cutting back.

Food giant Pepsi-Co became the latest to do so on Thursday.

 

In a quarterly update for investors, it reported that sales in its North
America Frito-Lay and Quaker Foods units had fallen in the April-June period
compared with last year. Overall, revenue was up about 1% globally.-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
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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
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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.

 


 

 


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