Major International Business Headlines Brief::: 17 July 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  17 July 2024 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  South Africa: Food or Electricity - Power Tax Forces a Cruel Choice On Joburg's Poorest People

ü  Nigeria: Kaduna Petroleum College to Be Operational Soon - Minister

ü  Kenya Airways to Add Three Boeing Aircraft Under Dry Lease

ü  Kenya: Protestors Sustain Anti-Govt Demos in Kisii, Nakuru and Kajiado

ü  Nigeria to Resume Crude Oil Refining in August, Industry Authorities Say

ü  South Africa: Chinese E-Commerce Companies Popular in South Africa

ü  Tanzania's Seaweed Farmers Bring the Ocean's Bounty to the World

ü  Ghana: Fuel Prices Set to Increase Today, Potentially Affecting Food Costs Again

ü  Kenya: Counties Face Sh20bn Budget Cut As Ruto Declines Allocation Bill

ü  Ugandan Economy Back On Track, DRC Reparation Continues - Ggoobi

ü  UK banking giant HSBC names new chief executive

ü  China tycoon Guo convicted in US over $1bn scam

ü  Musk to move SpaceX and X HQ over gender-identity law

ü  Disney investigating massive leak of internal messages

ü  Microsoft's hire of start-up staff probed as possible merger

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa: Food or Electricity - Power Tax Forces a Cruel Choice On Joburg's Poorest People

Only 10,979 residents of more than 900,000 in need are excluded from a crippling R230 prepaid electricity surcharge. Many more should be.

 

Massive power tariff increases in Johannesburg are forcing poor people to choose between buying electricity and buying food. The city's residents now pay 12.74% more for electricity overall, while poor prepaid users also have a R230 surcharge (a service tax) added on top of that. This increases costs by 60% (for 200 units/month) and 45% (for 300 units/month), EE Business Intelligence owner and energy analyst Chris Yelland has shown.

 

In an area that is a sample of poor Johannesburg, Daily Maverick found that people were pawning their goods to pay for electricity and food. Others were making choices to eat or stay warm.

 

"We can't put on our geysers to bathe. You can't drink coffee when it's cold [because it's too expensive to boil water]," said Lilian Schlaar, a resident of an old-age home complex in Claremont.

 

Claremont is a dirt-poor suburb to the gritty west of Johannesburg. It's neglected in the ways that so many parts of the vibrant and hustling city now are. Traffic lights never work. The roads are disintegrating, with grass growing through the tar. Water cut-offs, caused by leaky reservoirs and a system of pipes that has yet to be replaced since Pa fell off...

 

- Daily Maverick.

 

 

 

 

Nigeria: Kaduna Petroleum College to Be Operational Soon - Minister

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri has said that the Petroleum Technology Development Fund-owned College of Petroleum and Energy Studies, Kaduna, will soon become operational.

 

The minister stated this during a facility tour of the institution located along the Kaduna-Zaria Expressway way, behind the Kaduna International Trade Fair Complex.

 

Lokpobiri, accompanied by top management staff of the PTDF expressed satisfaction on the state-of-the-art facilities on ground in college established in 2009 which has so far gulped more than N15bn.

 

 

Our correspondent reports that 15 years later, the projects still remain incomplete but under the new leadership at the PTDF, projects in the institution are near completion.

 

However, the minister after the facility tour of projects, noted that with the facilities on ground, it was time to ensure the college was operational while adding that the ministry will not allow the college to rot away.

 

According to the Minister, "The college with the mandate to train senior cadre officers in the oil and gas sector, would save the country a lot foreign exchange from training Nigerians overseas."

 

The Minister said, "I am waiting on the Executive Secretary to give the relevant briefs then I will brief Mr. President to see how the place will be commissioned and put to use as soon as possible.

 

"So, I believe that today's inspection is absolutely satisfactory because I saw more than what I was told in the briefs. I am happy that I came today and I am happy that Nigerians will also have the privilege of seeing this through different media and then continue to give us the cooperation that is needed to enable us to complete this project and then use them for the purpose that they have been built."

 

Earlier in his address, the Executive Secretary of the PTDF, Ahmad Aminu, expressed the readiness of the institute to go operational as most projects had reached completion stage.

 

He added that so far Sixty-three (63) out of the Eighty-Seven (87) contracts awarded have been completed while twenty four (24) contracts were at various stages of completion.

 

- Daily Trust.

 

 

 

 

Kenya Airways to Add Three Boeing Aircraft Under Dry Lease

Kenya Airways plans to lease three aircraft this year to meet rising passenger demand amid fleet capacity constraints.

 

CEO Allan Kilavuka said the airline has submitted a dry leasing bid and is optimistic about securing at least three planes despite the tight market supply.

 

Last year, Kenya Airways requested two aircraft but failed to acquire any due to a global shortage.

 

"We had bid for two aircraft last year but did not get them. Now, we expect to secure at least three this year," Mr Kilavuka told Business Day Africa.

 

 

Currently, the airline has leased an Airbus, acquired last year for the peak season to enhance capacity. Initially intended as a short-term lease for the festive season, the agreement was extended due to high travel demand as some of the airline's aircraft remained grounded due to a lack of spare parts.

 

Kenya Airways last year entered a short-term wet lease agreement with Hi Fly, a lease and charter specialist, to address operational disruptions caused by spare part shortages.

 

Under the ACMI (Aircraft, Crew, Maintenance, and Insurance) lease structure, the lessor provides the aircraft and crew, ensuring continuity of operations.

 

However, the airline shifted from a wet to a damp lease this year due to service disruptions from language barriers and differing customer service approaches within the cabin.

 

In a damp lease, the lessor provides the aircraft, flight crew, and maintenance, while the lessee supplies the cabin crew, a model also known as a moist lease.

 

Mr Kilavuka said the airline currently prefers Boeing but remains open to Airbus if necessary. "For now, we shall stick with Boeing, but Airbus is still on the cards," he said in an interview.

 

The Airbus A330 offers seating for 299 passengers, including 24 in business class and 275 in economy class, providing a significant boost for Kenya Airways' medium and long-haul routes.

 

-Business Day Africa.

 

 

 

Kenya: Protestors Sustain Anti-Govt Demos in Kisii, Nakuru and Kajiado

Nairobi — Hundreds of protestors confronted police in major towns across the country on Tuesday, sustaining anti-government demonstrations despite major concessions by President William Ruto.

 

Demonstrators took to the streets in Kisumu, Nakuru, Kisii and Kitengela a day after President Ruto singed out the Ford Foundation as the sponsor violent protests witnessed since June 25 when demonstrators stormed Parliament over the passing of the Finance Bill 2024.

 

In Kisii, protestors converged at Kisii town paralysing business activities.

 

Chanting anti-Ruto slogans, demonstrators asked why the Head of State spared Prime Cabinet Secretary Musalia Mudavadi in an unprecedented Cabinet purge.

 

The protesters dismissed the claim Ford Foundation was funding anti-government demonstrations.

 

"No one has a hand in these protests. I have frequently participated in all these protests and no one has ever sent me money," George Mong'are said.

 

 

"We are doing this to streamline the country," he remarked.

 

A few police officers deployed across the town centre kept watch as mostly youthful protestors agitated.

 

Businesses remain closed for fear of looting amid stone-throwing incidences.

 

In Nakuru, business came to a standstill as police battled anti-government protesters who set tires alight.

 

Journalist wounded

 

The ensuing confrontation saw the police fire teargas canisters with protesters retreating occasionally.

 

One person sustained a stone injury as protestors engaged the police. In a similar incident, a journalist sustained a serious injury after police reportedly opened fire on protestors.

 

 

The Nakuru-based journalist was rushed to a local hospital after she was hit with rubber bullets. The facility was not immediately available for a comment.

 

In Nyeri, protesters assembled in Karatina where they set tires ablaze on key roads.

 

Similar events ensued in Kitengela where protesters clashed with the police.

 

In Kisumu, businesses hurriedly closed down as demonstrators stormed the city centre after an initial reluctance.

 

Motorcyclists blaring their horns first made rounds within the Central Business District (CBD), warning to businesses that opened on account of calm reported in Kondele, the traditional epicentre of protests in the lakeside city.

 

 

 

Nigeria to Resume Crude Oil Refining in August, Industry Authorities Say

Abuja, Nigeria — Nigeria plans to resume local refining of crude oil in early August, national petroleum authorities announced Monday.

 

The resumption would end years of idleness at Nigeria's state-owned refineries, and analysts say that if successfully implemented, it would lower fuel prices.

 

The Nigerian National Petroleum Company made the announcement while addressing an emergency session at the National Assembly. Lawmakers called the session to interrogate central bank authorities, the national economic management team and the NNPC about the country's economic standing.

 

The chief executive officer of the NNPC, Mele Kyari, said one of the two Port Harcourt refineries in the oil-rich Niger Delta region will begin operations in about two weeks.

 

He said the other one will come into operation by the end of the year and allow Nigeria to begin exporting refined oil.

 

 

"We're very optimistic that by December this country will be a net exporter," he said, "that is [in] combination of production coming from us and the Dangote refinery and other smaller producing companies."

 

The Dangote refinery is a privately owned facility being built near Lagos.

 

Nigeria's minister of state of petroleum resources, Heineken Lokpobiri, voiced optimism about the impact of the revived refineries.

 

"The easiest way for Nigeria to come out of its economic problems is through the oil and gas sector," Lokpobiri said. "As a sector, we have a clear plan to gradually ramp up production. Right now, we have a clear plan to see how we can get 2 million barrels and more."

 

This is not the first time officials have announced the resumption of domestic oil refining.

 

They made similar announcements in December and March. On Monday, authorities said unforeseen technical difficulties hampered previous resumption dates.

 

 

All four government-owned refineries, which can process about 450,000 barrels of crude per day, have been moribund for years, forcing the country to rely on imports to meet its petroleum needs, estimated at 66 million liters (17.4 million gallons) per day.

 

Oil industry analyst Faith Nwadishi voiced doubts the refineries will operate again.

 

"I'm just keeping my fingers crossed and trying to be very optimistic about this because it will go a long way in reducing the hardship and perhaps also reduce the pump price ... especially," Nwadishi said. "But being somebody who's in the sector, I become a little bit skeptical. We have an allocation of about 445,000 [barrels per day] for domestic consumption, which, if properly refined, we'll have about 70 million liters. That covers our daily consumption."

 

The Nigerian oil industry has been hampered in recent years by theft and corruption. On Monday, the Nigeria Extractive Industries Transparency Initiative said about 140,000 barrels of crude oil were lost to theft every day between 2009 and 2018.-VOA.

 

 

 

South Africa: Chinese E-Commerce Companies Popular in South Africa

Johannesburg — Rotondwa Mbadaliga is a self-professed "shopping addict." The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.

 

Mbadaliga has more than 200,000 followers on TikTok where she mostly talks about fashion, sometimes posting videos of herself excitedly opening her newly arrived purchases from China.

 

"The variety is the main thing I really like and enjoy with shopping on Temu or Shein," she says, adding that South African brands and shops aren't as trendy.

 

"I don't think you can beat the prices," she adds.

 

But the prices of clothing on these e-commerce sites are expected to soon get more expensive.

 

South Africa's tax authority plans to start imposing a 45% tariff and a value-added tax, or VAT, an indirect tax on the consumption of goods and services on orders of imported clothing that cost under 500 rand, or $27. Some consumers are pushing back with an online petition protesting the higher import duties.

 

 

Chinese e-commerce in South Africa

 

Shein, which has been available in South Africa since 2020, and Temu, which entered the market in January, have had huge success in the country, which has a growing middle class, tech-savvy youth and widespread internet access.

 

For women's clothing purchases online, Shein is the top retailer with a 35% market share, according to data from Marketing Research Foundation, a nonprofit South Africa-based marketing survey group.

 

For its part, Temu is the most-downloaded app among iOS and Android users in South Africa.

 

Mbadaliga acknowledges that quality can sometimes be an issue.

 

"With shopping from China, you need to be OK with making a loss in some way," she says, adding that she has a box of clothes bought on the platforms that didn't fit or work out.

 

 

Her aunts in their 30s, who earn more, prefer to buy from foreign brands with brick-and-mortar stores in South Africa such as Zara because they believe the quality of clothing is better, Mbadaliga notes.

 

But she says longevity and quality don't matter so much to her because she will only wear a garment while it is in style.

 

Industry pushback

 

South African retailers and local e-commerce platforms have been left reeling by the success of Chinese e-commerce and fearing their inability to compete.

 

Some South African companies and industry groups have lobbied the government to close an import tax loophole, a so-called de minimis rule, for small parcels of clothing. The loophole was introduced decades ago for items such as gifts before the advent of online shopping.

 

 

Under that system, small parcels pay a low 20% import duty. However, local clothing retailers, who order in bulk, pay a 45% tariff plus a VAT rate.

 

"We don't mind competition ... but what we find unpalatable, quite frankly, is an opportunity which is being taken advantage of where we believe we actually have an unfair and non-level playing field," Michael Lawrence, executive director the National Clothing Retail Federation of South Africa, told VOA.

 

"We're seeing 100,000 parcels a day, I'm told by some players, coming in. So, we're not talking about an occasional occurrence. We're talking about a significant commercial activity," he says.

 

When South Africa's tax authorities implement the higher tax rate for imported clothing under 500 rand, those shippers will be paying the same rate of 45% plus a VAT as the bulk shipments incur.

 

Contacted for comment, a Temu spokesperson told VOA: "Temu operates a direct-from-factory online marketplace that connects consumers with cost-efficient manufacturers. By reducing the number of intermediaries between consumers and producers, we can eliminate extra costs and pass those savings on to consumers through lower prices."

 

"We compete fairly and transparently, adhering to the rules and regulations of each market we serve. Our growth does not rely on the de minimis policy. We support policy changes that benefit consumers and believe that as long as rules are applied fairly, they will not affect the competitive landscape," the spokesperson added.

 

Shein did not respond to a request for comment.

 

Local alternatives

 

South Africa is not without its own e-commerce sites.

 

E-commerce company Takealot has accused the Chinese online shopping giants of exploiting tax loopholes.

 

"These platforms contribute to a market imbalance by flooding the market with inexpensive imports," the company said last month in a statement. "Such trends pose significant challenges to the development and sustainability of domestic industries."

 

"This form of commerce extracts value from South African consumers without contributing to local communities, ultimately harming small businesses, local manufacturers and the limited job opportunities available," it continued.

 

To boost local industry, Takealot recently signed a multimillion-dollar deal with the government in South Africa's Gauteng province, which includes the capital, Pretoria, and economic powerhouse Johannesburg. Called the Takealot Township Economy Initiative, it is focused on creating jobs and supporting small, Black-owned businesses.

 

 

Local online fashion retailer Zando launched its international e-commerce platform Zando Global earlier this year.

 

"With the rise of Shein and Temu, South African consumers have often found themselves hesitant to order internationally due to concerns about product quality, delivery reliability, and returns processes. Zando Global steps in as the local hero, offering a trustworthy alternative for those seeking international products without the uncertainties of ordering from abroad," the company said in an April press statement.

 

When asked whether the market is already saturated by Shein and Temu, Zando Global's CEO Morgane Imbert told VOA she believed the company could compete.

 

"We genuinely believe there is room for a player like Zando, because we think that we can offer a different experience, focusing on the quality of the product, the customer service and curated local and global fashion trends," she says.

 

"We're definitely supporting local brands and companies through the marketplace," Imbert added.

 

US behemoth

 

Zando and Takealot must also compete with U.S. e-commerce company Amazon, which entered the South African market in May, its first foray into sub-Saharan Africa. Reports suggest Amazon had a slow start, but that could change.

 

On its website, Amazon says it is providing South African consumers with a "new online shopping experience." It added, the site will include products from independent South African sellers and small and medium-size enterprises "to connect customers with businesses throughout the country."

 

Still, like "shopping addict" Mbadaliga, many South Africans will not be easily weaned off Shein and Temu.

 

The on-line petition to the South African government aimed at stopping the import duty has garnered more than 21,000 signatures since June, hoping to change the minds of government authorities who have yet to implement the new tax rules originally set for July 1.

 

-VOA.

 

 

 

Tanzania's Seaweed Farmers Bring the Ocean's Bounty to the World

As the sun rises over Pemba island in Tanzania, Shajia and other seaweed farmers head towards the water to harvest their seaweed at low tide.

 

When Shajia first started farming seaweed in 1995, she did it largely along the shore. In the decades since, conditions have changed.

 

"Due to the high temperatures caused by climate change, the seaweed was not doing well on the shores," she explains. "We were forced to go deeper into the ocean."

 

The IFAD-supported LDFS project is helping Shajia adapt to the new normal. As well as receiving equipment, she's learned how to grow seaweed along ropes. This ensures a plentiful harvest that is easier to gather and is protected from the tides.

 

Processing the precious produce

 

At midday, the boats return to shore, laden with their glistening produce. The seaweed is then sorted and spread out on drying racks at the local collection centre.

 

 

The dried seaweed is then exported for use in medicines and processing into carrageenan, a gelling substance that is used in everything from shampoo to soy milk. With government plans to establish a processing plant on Pemba, farmers will soon be able to move up the value chain and get higher profits for their produce.

 

Beauty business

 

Twenty-six-year-old Saumu has been farming seaweed on her underwater plot for two years. After receiving training and equipment through LDFS, she increased her yield to 290 kilos. She uses her earnings to pay for her children's education and to purchase iron sheeting to build a new home.

 

Saumu is also part of a collective of young women who produce a rich seaweed skincare oil. While they currently use imported powdered seaweed, they plan to purchase equipment to process Pemba-grown seaweed into powder themselves.

 

Saumu is a role model for other young women. "We need to take advantage of the opportunities in front of us, like the seaweed farming, which can benefit us and our families."

 

*

 

For centuries, the islands off the east African coast have been part of a vast oceanic network spanning the Indian Ocean, with sailors following the trade winds all the way to southeast Asia. Today, rural people in the region are sustainably harvesting the ocean's bounty before it sets out across the world.

 

-IFAD.

 

 

 

Ghana: Fuel Prices Set to Increase Today, Potentially Affecting Food Costs Again

Market watchers predict another fuel price increase from today amidst high food inflation.

 

Starting today, Tuesday, July 16, fuel prices are expected to rise as the second pricing window begins. Market analysts predict a potential increase of up to 4%, which could negatively impact the transportation of goods, especially farm produce, from the farm gate to market centers.

 

The Chamber of Petroleum Consumers (COPEC) has forecasted a 4% hike in petroleum product prices. According to COPEC, retail prices for Petrol, Diesel, and LPG are set to rise due to the further depreciation of the cedi against the dollar, from $1: GH¢15.2779 in the previous pricing window to $1: GH¢15.462. Major oil marketing companies may sell Petrol at GH¢14.795 per liter, Diesel at GH¢15.332 per liter, and LPG at GH¢16.205 per kilogram, with a 14.5 kg cylinder reaching GH¢234.97.

 

 

Some companies, however, might maintain or slightly increase their prices to attract customers.

 

This marks the second fuel price increase in July, which could lead to agitation among commercial transport operators for fare hikes. The last transport fare increase occurred in April, ranging between 15% and 20%, which significantly impacted transportation costs and resulted in the transport sector posting the highest month-on-month inflation rate of 10.6% in May, affecting the overall cost of goods and services.

 

Even without a general fare increase for commercial transport, haulage trucks transporting goods, particularly food items, are likely to charge higher prices. This could further elevate food prices, which are already experiencing high inflation rates.

 

In June, locally produced items had higher inflation rates, with 18 of the top 20 items with the highest inflation rates being locally produced. Common vegetables like okro, pepper, tomatoes, onions, and cabbage recorded inflation rates exceeding 50%.

 

These significant price increases in food and other locally produced items could be exacerbated by another round of fuel price hikes, as predicted by COPEC and other market analysts.

 

-Accra Times.

 

 

 

Kenya: Counties Face Sh20bn Budget Cut As Ruto Declines Allocation Bill

Nairobi — County governments are bracing for a Sh20 billion cut marking a slide below the Sh385 billion allocation for the 2023/24 Financial Year, the highest since the onset of devolution.

 

The downward revision that will see the equitable share for devolved units decline from a proposed Sh400 billion to Sh380 billion became apparent on Tuesday when President William Ruto declined to sign the County Allocation of Revenue Bill.

 

In his memorandum to the Senate, President Ruto cited the withdrawal of the Finance Bill 2024 which he argued had necessitated a government-wide revision of budget allocations.

 

 

"NOW THEREFORE, in exercise of the powers conferred on me by Article 115 (1) (b) of the Constitution, I decline to assent to the County Allocation of Revenue Bill, 2024, and refer the Bill for reconsideration by the Senate with the recommendations," the President's memo stated.

 

Senate Speaker Amason Kingi referred the memorandum to the Senate Finance and Budget Committee chaired by Mandera Senator Ali Roba and directed him to expedite the matter to unlock funds for counties.

 

The Roba-led committee has until Thursday, July 18, to table its report for consideration by the Senate.

 

Ruto declined to sign the Finance Bill despite rooting for its passage after a chaotic protest that saw protestors storm Parliament on June 25 leaving a trail of destruction and deaths.

 

President Ruto said the withdrawal of the Bill would result in a budget deficit, with no additional taxation mechanism to finance the Sh3.9 trillion FY2024/25 budget.

 

 

Revised County Allocation

 

In the revised allocations, Nairobi County will still receive the largest share at Sh19.7 Billion, followed by Nakuru County, which will get Sh13.3 billion.

 

Turkana County will receive Sh12.9 billion, Kakamega Sh12.7 billion and Kiambu Sh12 billion respectively.

 

Kilifi will receive Sh11.9 billion, Mandera County will receive Sh11.4 billion, and Bungoma County will get Sh10.9 billion.

 

Kitui is projected to receive Sh10.6 billion while Meru's allocation is set at Sh9.7 billion.

 

Wajir will get Sh9.7 billion while Machakos will get Sh9.4 billion.

 

Kisii County is expected to receive Sh9.1billion while Narok will oversee a Sh9 billion allocation.

 

Kwale will control Sh8.7 billion and Uasin Gishu Sh8.3 billion.

 

Makueni is expected to receive Sh8.3 billion, Kisumu Sh8.2 billion and Migori Sh8.2 billion.

 

Garissa is set to receive Sh8.1 billion while Homa Bay will get Sh8 billion. Kajiado County is set to receive Sh8.1 billion.

 

Mombasa County will receive Sh 7.7 billion, Marsabit County (Sh7.4 billion), Trans Nzoia (Sh7.3 billion), and Murang'a Sh7.3 billion.

 

Busia will receive Sh7.3 billion, Nandi (Sh7.1 billion), and Siaya (Sh7.1 billion) while Tana River will get Sh6.6 billion.

 

Kericho will manage Sh6.6 billion, Baringo (Sh6.5 billion) and West Pokot (Sh6.4 billion).

 

Nyeri is set to receive Sh6.3 billion while Nyandarua will get Sh5.8 billion.

 

Samburu is projected to receive Sh5.5 billion, Kirinyaga (Sh5.3 billion), Laikipia (Sh 5.2 billion) and Embu (Sh5.2 billion).

 

Vihiga is set to receive Sh5.1 billion, Nyamira (Sh5.2 billion) and Taita Taveta (Sh4.9 billion).

 

Elgeyo Marakwet is set to receive Sh4.7 billion, Tharaka Nithi (Sh4.3 billion), Isiolo County (Sh 4.8 Billion) and Lamu (Sh3.1 billion).-Capital FM.

 

 

 

 

Ugandan Economy Back On Track, DRC Reparation Continues - Ggoobi

Kampala, Uganda — Secretary to the Treasury Ramathan Ggoobi has said Uganda's economy is back on track, and indications are of even stronger growth in the coming years.

 

He said this as he announced today that government has released Sh5.899 trillion, representing 21.3% of the discretionary budget, to cater for first quarter (July to September ) expenditure. Uganda's budget for the this financial year is sh72 trillion.

 

"The QI release is in line with our continued effort of fiscal consolidation through coordinated fiscal and monetary policy. All accounting officers must ensure that they pay salaries, pensions and gratuity by the 28 th of every month," Ggoobi warned.

 

 

While Shs1.990 trillion of this will cater for wages and salaries across government, a lot of it will go towards resolving domestic arrears amounting to Sh199.83 billion and Sh247 billion towards the International Court of Justice (ICJ) award to DRC of $325million.

 

"Uganda's economy has fully recovered from various shocks, crises and false alarms. You recall that when Covid-19 happened, leaders were told it would be worse than the financial crisis of 2008 and potentially as bad as the Great Depression of the 1930s. Instead, a fast and strong recovery has unfolded," Ggoobi told the press in Kampala today.

 

He said GDP grew by 6 percent last financial year 2023/24 up from an average of 4.1 percent in period between FY 2019/20 and FY2022/23. "Remember that GDP growth had previously reduced to 5. This 6 % impressive growth was on account of higher growth in all sectors. The services sector grew by 6.6%, up from 5.9%; while the industry sector increased by 5.8%, up from 4.0%. The agriculture, forestry, and fishing sector saw growth of 5.1%, compared to 4.5% previously."

 

He added that economic growth in FY2024/25 is projected between 6 and 6.5 percent, rising above 7 percent in the subsequent years driven by our Tenfold Growth Strategy. "This strategy is hinged on increased investment and growth in agro-industry; tourism development; mineral development including oil and gas activities; and science, and innovation (STI) including ICT."

 

"At 3.9 percent in June 2024, inflation has been contained within the target thanks to the strong coordination of monetary and fiscal policies. Uganda has sustained good food supply chains leading to low food crop inflation."-Independent (Kampala).

 

 

 

 

UK banking giant HSBC names new chief executive

"[Mr Elhedery] is an exceptional leader and banker who cares passionately about the Bank, our customers, and our people," HSBC's chairman Sir Mark Tucker said in a statement.

“I am deeply honoured by the trust placed in me to lead this great institution into the future," Mr Elhedery said.

In his time at HSBC Mr Elhedery has held several roles, including being the co-head of the business that houses its trading and investment banking advisory operations.

Mr Quinn, who has worked at HSBC for 37 years, was first appointed as its chief executive on an interim basis in 2019, after his predecessor John Flint was ousted from the role.

In March 2020, he took the reins of HSBC on a permanent basis.

Mr Quinn oversaw the sale of several of the bank's businesses around the world.

HSBC recently completed the sale of its operations in Canada and announced plans to do the same with its business in Argentina.

The sales were part of efforts by the London-based bank to focus more on faster-growing markets in Asia.

He also steered HSBC through the pandemic and fought off pressure from a major shareholder to break up the 160-year-old lender.

The attempt to spin off the bank's Asia assets was a sign of the challenges faced by HSBC at a time of increased tensions between the US and China.

In April, the lender reported a 1.8% drop in profit for the first three months of 2024, compared to the same time last year.

The company said its pre-tax profit for the period came in at $12.7bn (£9.8bn), which was a little better than expected by market analysts.

HSBC is due to announce its financial results for the second quarter at the end of this month.-BBC

 

 

 

 

China tycoon Guo convicted in US over $1bn scam

Self-exiled Chinese businessman Guo Wengui has been convicted by a US court of defrauding his online followers in a billion-dollar scam.

He was found guilty on nine of the 12 criminal counts he faced, including racketeering, fraud and money laundering.

Guo's sentencing has been scheduled for 19 November, when he could face decades behind bars. He has been in prison since his arrest in March 2023.

He is a critic of the Chinese Communist party and was an associate of Stephen Bannon, an ex-White House chief strategist under former president Donald Trump.

Guo goes by several aliases, including Miles Guo, Miles Kwok and "Brother Seven". He was named as Ho Wan Kwok when he was indicted in 2023.

Prosecutors said Guo raised more than $1bn (£770m) from online followers, who joined him in investment and cryptocurrency schemes between 2018 and 2023.

The money he raised was used to fund Guo's lavish lifestyle which included a 50,000 square foot mansion, a $1m Lamborghini and a $37m yacht, they said.

"Thousands of Guo's online followers were victimised so that Guo could live a life of excess," the US Attorney in Manhattan, Damian Williams, said after the verdict.

 

How a Chinese tycoon built a pro-Trump money machine

Guo's political activism and his links to high-profile, right-wing US politicians and activists earned him hundreds of thousands of online followers, most of them Chinese people living in Western countries.

Guo's lawyers tried unsuccessfully to sway the jury by saying their client was not driven by money.

Instead, they portrayed him as a fervent opponent of China's political system and his ostentatious lifestyle was a critique of the Chinese Communist Party.

After his arrival in the US in 2017, Guo's outspoken opposition to China's rulers inspired several ventures with Bannon.

They appeared frequently together in online videos, and in 2020 they launched a campaign called the New Federal State of China, with the goal of overthrowing the Chinese Communist Party.

Later that year, Bannon was arrested over an unrelated fraud case while on Guo's yacht in Connecticut. He was later pardoned by then-president Donald Trump.

Bannon is currently serving a four-month sentence for contempt of Congress.-BBC

 

 

 

 

Musk to move SpaceX and X HQ over gender-identity law

Billionaire Elon Musk has said he will move the headquarters of two of his most high-profile companies, rocket firm SpaceX and social media platform X, out of California to Texas.

He cited his opposition to a new Californian state law which bans schools from requiring staff to disclose information about a child's gender identity - including to parents.

"This is the last straw," he wrote on social media.

The businessman had already moved Tesla's headquarters to Texas in 2021, a move he first threatened over Covid-era lockdowns.

Since then, he has become increasingly involved in US politics.

Over the weekend, he formally endorsed Donald Trump for president. On Tuesday, the Wall Street Journal reported he would be directing $45m a month toward his campaign. Mr Musk replied on Twitter/X with a picture of "fake gnus".

 

Could X go bankrupt under Elon Musk?

Elon Musk's X anti-hate group case thrown out

The issue of what schools should tell parents about their children's gender identities has become a major topic of debate in the US.

LGBTQ advocates say students have a right to privacy, but others argue parents have a right to know what is happening with their children.

Mr Musk, who has a transgender daughter, has previously said he "supports trans" while expressing impatience with pronouns, which he has described as an "aesthetic nightmare".

Last year, he said he would lobby to criminalise transgender medical treatment that would lead to what he described as "severe, irreversible changes to children below the age of consent".

"Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas," he said in a post on X on Tuesday, noting that he had previously expressed his opposition to the bill.

 

In explaining the decision to move X to Austin, Mr Musk criticised the state of affairs in San Francisco, saying he had "had enough of dodging gangs of violent drug addicts just to get in and out of the building".

California Governor Gavin Newsom, whose name is among the ones that have been floated to possibly replace President Joe Biden as the Democratic candidate for the upcoming election, took to social media in an apparent criticism of Mr Musk's decision.

“You bent the knee,” Mr Newsom posted, along with a screenshot of a 2022 post from Donald Trump criticising the billionaire.

A spokesperson for the governor said after the bill was signed that it kept "children safe while protecting the critical role of parents".

"It protects the child-parent relationship by preventing politicians and school staff from inappropriately intervening in family matters and attempting to control if, when, and how families have deeply personal conversations," Brandon Richards told the Associated Press.

States have historically competed aggressively to woo companies to establish headquarters, bringing with them high-paying corporate jobs.

Mr Musk himself is already a resident of Texas, which has no income tax.

SpaceX, which employs more than 5,000 people in California, according to state records, also already has a large base of operations in the state.

In response to Mr Musk's pledge, Greg Abbott, governor for Texas, said: "This cements Texas as the leader in space exploration."

Neither SpaceX nor X responded to requests for comment about whether the decision to move headquarters would lead to job cuts in California.-BBC

 

 

 

 

Disney investigating massive leak of internal messages

Disney has confirmed it is investigating an apparent leak of internal messages by a hacking group, which claims it is "protecting artists' rights".

The group, Nullbulge, said it had gained access to thousands of communications from Disney employees and had downloaded "every file possible".

It is not clear how commercially sensitive the information is for the media and theme park giant, but it is reported to include messages about upcoming projects the firm is working on.

"Disney is investigating this matter,” a company spokesperson told the BBC in an email.

Nullbulge's website says the group targets anyone it believes is harming the creative industry by using content generated by artificial intelligence (AI), which it describes as "theft".

The BBC has made contact with the hackers who claim to be in Russia and say they got into Disney's internal Slack messaging system through an insider.

But when asked for a sample of the stolen data to verify its authenticity, the hackers did not respond - meaning the BBC has not been able to independently assess if the huge data trove is genuine.

"Disney was our target due to how it handles artist contracts, its approach to AI, and its pretty blatant disregard for the consumer," the hackers claimed.

They said they released the data because they didn't expect Disney to meet their demands to stop using AI.

It is unusual for hackers to claim they are "Russian hacktivists" with an ethical agenda - most cyber criminals, including those in Russia, aim to make money by extorting their victims.

 

Spread of AI

The leak was first reported in the gaming press and then picked up by the Wall Street Journal, which said some of the leaked material related to advertising campaigns and interview candidates, with some dating back as far as 2019.

There has been growing concern amongst performers, artists and other creatives that the rapid spread of generative AI will undermine their livelihoods and damage the creative environment.

Generative AI is trained on vast bodies of existing material - including texts, images, music and video. It is then able to produce new work of a standard that can be hard to distinguish from human-generated material.

Some artists and authors have claimed AI firms breached copyright by using their original work to train these AI tools.

Nullbulge describes itself as "a hacktivist group protecting artists' rights and ensuring fair compensation for their work".

"Our hacks are not those of malice, but to punish those caught stealing," it says on its website.

"We will work tirelessly to develop and implement solutions that protect the rights and livelihoods of artists in the digital age."

The Walt Disney company's businesses range from film-making and streaming services Disney+ and Hulu, to video games and theme parks dotted across the globe. It owns the hugely successful Marvel and Star Wars franchises.-BBC

 

 

 

Microsoft's hire of start-up staff probed as possible merger

Microsoft is being investigated in the UK over whether it has effectively merged with an artificial intelligence (AI) start-up firm by hiring its staff.

Key employees at Inflection AI left the company in March to join the tech giant, with co-founder Mustafa Suleyman becoming head of its new AI division.

The Competition and Markets Authority (CMA) said it would investigate whether this constituted a merger, and if so, whether it could lessen competition.

"We are confident that the hiring of talent promotes competition and should not be treated as a merger," a Microsoft spokesperson told the BBC.

The CMA also said Microsoft had entered into a "non-exclusive licensing deal" to use the company's AI models.

What is AI, how does it work and what can it be used for?

The initial probe, also referred to as a phase one inquiry, comes after the CMA called for views on Microsoft's hiring of Inflection staff in April.

Mr Suleyman previously said in a post on X he was "excited" to take up his new position at Microsoft - and would be taking several Inflection colleagues with him.

This included the company's chief scientist and Mr Suleyman's "friend and long time collaborator" Karén Simonyan.

If the CMA finds that there is enough evidence to suggest there has been a "merger" between Microsoft and Inflection that could lessen competition, it will progress to a more in-depth investigation.

It says it will make a decision on whether the transaction should be cleared or investigated further by 11 September.

 

Generative AI

Inflection AI specialises in so-called generative AI - where media such as text and images can be created by computers trained on vast libraries of existing data.

The hype around the tech and the language models underpinning it has spurred several big deals between tech giants and smaller developers.

Chief among them is Microsoft's multi-billion dollar backing of OpenAI, which enabled it to bring popular chatbot ChatGPT to its search engine Bing.

Other firms, including Google and Meta, have likewise embedded generative AI products such as chatbots and image generators across their services to try and capitalise on investor and consumer interest in the technology.

And the reliance of tech firms on powerful hardware to provide these buzzy, energy-intensive services has seen firms like Nvidia soar to new heights of market value and prominence.

The CMA previously hinted at its "real concerns" over big tech's AI dominance and the risk of larger firms leveraging their resourced to control access to AI hardware and products in April.

Its chief executive Sarah Cardell said in a speech the watchdog had identified an "interconnected web" of AI partnerships involving Google, Apple, Microsoft, Meta and Amazon.

"Without fair, open, and effective competition and strong consumer protection, underpinned by these principles, we see a real risk that the full potential of organisations or individuals to use AI to innovate and disrupt will not be realised, nor its benefits shared widely across society," she said.-BBC

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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