Major International Business Headlines Brief::: 24 July 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  24 July 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: Gabon President Invites Dangote to Invest in Cement, Fertiliser
Production

ü  Zambia: Malawi's Kwacha Syndicate Exposed After Zambia Bust

ü  South Africa: Electricity System Still Vulnerable Despite 120 Days With
No Load Shedding

ü  Nigeria: National Assembly Passes N70,000 New Minimum Wage Bill

ü  Nigeria: Breaking - Reps Approve Additional N6.2 Trillion Spending in
2024 Budget

ü  Nigeria: Refinery Too Vital to Fail, Says Obi, Wades Into Dangote/Nnpcl
Feud

ü  Ghana: Finance Minister - We Are Staying Within Our Budget Limits

ü  South Africa: GNU Gives SA a Honeymoon Period for Keeping Its Agoa
Status, Say Analysts

ü  Nigeria: Kyari Speaks On Allegations of Owning Blending Plant in Malta

ü  Ghana Requires $12bn Investment Over Next 3 Years to Drive Economic
Growth - Finance Minister

ü  Ghana: Mid-Year Budget Review Today Amidst Austerity and Rising Costs

ü  Ghana: Monetary Policy Committee Begins Meeting Amidst Easing but High
Inflation

ü  Luxury brands suffer as Chinese shoppers hold back

ü  Cyber-security firm rejects $23bn Google takeover

ü  Delta faces probe as CrowdStrike disruption lingers

 


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Nigeria: Gabon President Invites Dangote to Invest in Cement, Fertiliser
Production

The invitation comes amid Mr Dangote's recent decision to halt investment in
Nigeria's steel industry to avoid the accusations of being considered
monopolistic.

 

The President of Gabon, Brice Oligui Nguema, has invited the President of
Dangote Group, Aliko Dangote, to invest in cement and fertiliser production
in the country.

 

The invitation comes amid Mr Dangote's recent decision to halt investment in
Nigeria's steel industry to avoid the accusations of being considered
monopolistic.

 

In a statement on Tuesday, the company said the President urged Mr Dangote
to explore potential investment opportunities in the country's cement and
fertiliser sectors, specifically urea and phosphate production.

 

 

During the visit, according to the statement, Mr Dangote engaged in
discussions with Mr Nguema and other top government officials.

 

"The talks focused on how Dangote Industries could contribute to Gabon's
economic growth by establishing cement and fertiliser plants, which are
vital for the country's infrastructure development and agricultural
productivity," the statement said.

 

It said President Nguema expressed enthusiasm about the potential
partnership, highlighting Gabon's commitment to creating a conducive
environment for foreign investments while noting that the collaboration with
Dangote Industries would bring significant benefits, including job creation,
technology transfer, and enhanced industrial capacity.

 

On his part, Mr Dangote underscored his company's dedication to fostering
economic development across the continent.

 

He emphasised that investing in Gabon's cement and fertiliser sectors aligns
with Dangote Industries' strategic vision of expanding its footprint and
supporting sustainable development across Africa.

 

"We are excited about the opportunity to invest in Gabon. Our goal is to
contribute to the country's economic diversification and industrialisation
efforts. By leveraging our expertise in cement and fertiliser production, we
aim to support Gabon's infrastructure and agricultural sectors," Mr Dangote
was quoted as saying in the statement.

 

According to the statement, the visit marks a significant step towards
strengthening economic ties between Nigeria and Gabon.

 

"As Dangote Industries continues to explore and finalise investment
opportunities, both nations anticipate mutual benefits that will drive
economic progress and regional integration.

 

"The potential investment by Dangote Industries in Gabon is expected to
bolster the country's industrial landscape, ensuring a steady supply of
essential materials for construction and agriculture. This development
aligns with President Nguema's vision of transforming Gabon into a
diversified and self-sustaining economy," the statement said.

 

 

In the coming months, it said further discussions and assessments will be
conducted to finalise the investment plans.

 

"The collaboration between Dangote Industries and the Gabonese government
holds promise for a robust partnership that will significantly impact
Gabon's economic landscape," it said.

 

The Dangote Group and the petroleum regulators in Nigeria have been at
loggerheads over the control of the petroleum downstream market in the past
couple of months.

 

Last month, the vice president oil and gas at Dangote Industries Limited,
Devakumar Edwin, accused International Oil Companies (IOCs) of doing
everything to frustrate the survival of Dangote Oil Refinery and
Petrochemicals.

 

He said the IOCs are deliberately frustrating the refinery's efforts to buy
local crude by jerking up the high premium price above the market price,
thereby forcing it to import crude from countries as far as the United
States, with its attendant high costs.

 

On Sunday, Mr Dangote told PREMIUM TIMES in an exclusive interview that he
is willing to give up ownership of his multibillion-dollar oil refinery to
Nigerian National Petroleum Company Limited (NNPC Ltd).

 

- Premium Times.

 

 

 

Zambia: Malawi's Kwacha Syndicate Exposed After Zambia Bust

A sophisticated money laundering syndicate involving Malawi's currency has
been uncovered, spanning borders and leading to significant seizures in
Zambia. Malawi state agencies are now working diligently to repatriate the
impounded funds, exposing a complex network of currency smuggling and
potential counterfeiting.

 

Two weeks ago, Zambia's Drug Enforcement Commission (DEC) apprehended two
foreign nationals--Russian and American--found in possession of Malawian
Kwacha totaling K42,184,000, concealed in eight wooden boxes, at Kenneth
Kaunda International Airport (KKIA). The money, mostly in K20 and K50
denominations, was destined for the United States via Turkish Airlines.

 

 

Further investigation led authorities to a hotel in Lusaka, where additional
currencies were seized.

 

In an exclusive interview with NyasaTimes, Director of Public Prosecutions
(DPP) Masauko Chamkakala explained that a team from his office, the Reserve
Bank of Malawi, and the Fiscal Police traveled to Zambia last week where
they met with their Zambian counterparts to understand the events
surrounding the bust.

 

"We discovered that in 2022, someone abandoned K840,000 in very small
denominations in a hotel in Lusaka. Early this year, another person was
intercepted with large amounts of Malawi Kwacha in small currencies at Mwami
Border, and another was apprehended at Chipata Border with K76 million in
small notes," Chamkakala said. This suggests that the recent bust is part of
a larger syndicate that had been ongoing for a while.

 

The operation, which involved coordination between multiple Zambian agencies
including the DEC, the Zambian Police, and the National Prosecution
Authority, highlighted the complexity and reach of the syndicate.

 

The DPP elaborated on the cooperative efforts: "I can confirm that we
traveled to Zambia where we met officials from the Bank of Zambia, Zambian
Police, DEC, and the National Prosecution Authority. We wanted to understand
the whole issue and establish a clear plan for addressing it."

 

Chamkakala noted that the prevailing theory is that the Malawi currency,
particularly the K20 and K50 notes, is recycled to print stronger
currencies.

 

"The security paper on which the currencies are printed is almost impossible
to find. We suspect these individuals possess technology to delete the
printing and reprint stronger currencies over it. The 20s and 50s are likely
in demand because they are the same size and color as some global
currencies, such as the Canadian dollar," he said.

 

The DPP emphasized that Malawi authorities are collaborating with Zambian
officials to recover the funds and are considering seeking assistance from
the US government to determine the intended use of the money in the US.
However, bringing the culprits to Malawi to face trial poses significant
challenges.

 

"There are several technicalities. First, the offenses we would charge them
with here are not offenses in Zambia. Unfortunately, extradition laws
require that the offenses be recognized in both countries. Possession of
foreign currency is not an offense in Zambia. But we will continue to hold
meetings with our Zambian counterparts and explore other possibilities," he
said.

 

The recent arrests and discoveries have opened a broader investigation into
the smuggling and laundering operations.

 

Chamkakala highlighted the importance of this effort, noting that it is
crucial to understand the full scope of the network and its operations. "We
are dealing with a highly organized group that has been exploiting legal and
logistical loopholes to move large sums of money across borders. Our goal is
to shut down this operation and ensure that those responsible are held
accountable," he stated.

 

He noted that the investigation is ongoing, with both Malawian and Zambian
authorities committed to uncovering the full extent of the syndicate.

 

- Nyasa Times.

 

 

 

 

 

South Africa: Electricity System Still Vulnerable Despite 120 Days With No
Load Shedding

While this week marks 120 days without load shedding in South Africa,
President Cyril Ramaphosa says it is too soon to claim victory.

 

"Our electricity system is still vulnerable, and we cannot yet rule out a
possibility of further load shedding," President Ramaphosa said on Tuesday.

 

The President said this when he tabled the 2024/25 Presidency Budget Vote in
Parliament.

 

He told Members of Parliament (MPs) that one of the greatest impediments to
economic growth has been the electricity crisis, which the Presidency has
been instrumental in addressing.

 

The National Energy Crisis Committee, which was established in 2022 to
oversee the implementation of the Energy Action Plan, is chaired by the
President and coordinated at a technical level by the Director-General in
the Presidency.

 

"With the support of the National Energy Crisis Committee, there has been a
marked improvement in the performance of Eskom's power stations, which
produce the bulk of South Africa's electricity."

 

 

WATCH | President Cyril Ramaphosa addresses the National Assembly during the
tabling of the Presidency's Budget Vote.

 

Meanwhile, he said regulatory changes have enabled substantial new
investment in electricity generation.

 

He announced that government has also been working closely with independent
power producers (IPPs) in steering their projects through to the
construction phase, contributing significantly to the reduction in the
severity of load shedding.

 

"We are going to continue working with companies, financial institutions and
business organisations, both South African and international, during the
course of our ambitious investment drive over the last five years."

 

According to the Head of State, alleviating load shedding, improving the
performance of the logistics system, reducing the cost of data, improving
water supply, attracting the much-needed skills, and the reforms already
underway will provide a significant boost to the economy in the medium term.

 

"In addition, these reforms support the repositioning of strategic
State-owned enterprises by strengthening their balance sheets and improving
their operational performance, while also enabling higher levels of private
investment in infrastructure."

 

READ | President: 100 days of no load shedding no reason to relax

 

Corruption

 

The President also touched on corruption and stated that government has made
important progress in implementing the recommendations of the State Capture
Commission.

 

"This includes the work of our law enforcement agencies to bring
perpetrators to justice and to recover stolen funds, as well as the
legislative and other changes needed to strengthen the fight against
corruption and prevent state capture."

 

In addition, he said the Presidency plays a pivotal role in ensuring that
the work of the Special Investigating Unit (SIU) has an impact and that
people involved in wrongdoing face the consequences of their actions.

 

"The Presidency has forged a close working relationship with the SIU and law
enforcement agencies to monitor the implementation of the recommendations
for criminal, disciplinary and administrative action arising from SIU
investigations," he added.

 

- SAnews.gov.za.

 

 

 

Nigeria: National Assembly Passes N70,000 New Minimum Wage Bill

President Bola Tinubu transmitted the bill to both chambers of the National
Assembly on Tuesday.

 

The Senate on Tuesday passed the new National Minimum Wage Bill to empower
Nigerian workers to earn at least N70,000 on a monthly basis.

 

In the House of Representatives, the bill scaled second reading.

 

The executive bill seeks to amend the minimum wage from N30,000 to N70,000
and reduce the review period from five years to three years.

 

President Bola Tinubu had earlier today transmitted the New minimum wage
bill to both chambers of the National Assembly on Tuesday, seeking
expeditious support of the lawmakers for its passage.

 

The Senate President, Godswill Akpabio, announced passage of the bill during
the plenary after the senators supported it.

 

The President Tinubu's letter containing details of the minimum wage bill
was first read by Mr Akpabio.

 

Thereafter, the Senate Leader, Opeyemi Bamidele, moved a motion to refer the
bill to the Committee of the Whole for immediate consideration of the bill
clause by clause.

 

 

The motion was subsequently seconded by the Minority Leader, Abba Moro.

 

The senate president then directed members of the upper chamber to refer it
to the Committee of the Whole for consideration.

 

At the committee, none of the senators debated or spoke on the bill before
the clause by clause was approved.

 

After approving the bill clause by clause, the senate president put the
passage to vote and the senators supported it through voice votes.

 

In the House, the Majority Leader of the House, Julius Ihonvbere, led the
debate on the bill.

 

Borno South Senator, Ali Ndume, had recently criticised the new N70,000
minimum wage.

 

Mr Ndume, a member of the All Progressives Congress (APC) as the president,
said the approved minimum wage cannot sustain a household because it can
only buy 50kg of rice.

 

The senator based his argument on the fact that many Nigerians are hungry
and angry towards the government because of the harsh economy.

 

He advised the president to review the minimum wage in the interest of
Nigerian workers.

 

- Premium Times.

 

 

 

 

Nigeria: Breaking - Reps Approve Additional N6.2 Trillion Spending in 2024
Budget

Last week, President Bola Tinubu requested the addition of N6.2 trillion to
the budget through a bill to amend the 2024 Appropriations Act.

 

The House of Representatives has passed the N6.2 trillion additional
spending in the 2024 budget.

 

President Bola Tinubu last week requested the addition of N6.2 trillion to
the budget through a bill to amend the 2024 Appropriations Act.

 

The bill scaled second reading last week and was referred to the House
Committee on Appropriations for further legislative action.

 

The passage of the bill followed the consideration of a report submitted by
the committee chairman, Abubakar Bichi, during plenary on Tuesday.

 

Details to follow...

 

- Premium Times.

 

 

 

 

Nigeria: Refinery Too Vital to Fail, Says Obi, Wades Into Dangote/Nnpcl Feud

The Presidential Candidate of the Labour Party (LP) in the 2023 election,
Peter Obi has waded into the feud between the Dangote Group and federal
regulators over the Dangote Refinery.

 

Obi, in a series of tweets on his X handle urged the Nigeria National
Petroleum Corporation and other government agencies to tread with caution in
handling whatever dispute they have with Dangote because of the far reaching
implications of their actions on the Nigerian economy.

 

He argued that the Refinery deserved full support to operate not
vilification. Obi wrote: "Dangote Refinery Should Be Fully Supported, Not
Vilified The recent conflicts between Dangote Industries and some government
agencies are deeply troubling.

 

"This issue transcends political affiliations and personal grievances. "It
is fundamentally about Nigeria's economy, future, and the well-being of its
citizens. Given Alhaji Dangote's significant contributions to Nigeria, these
disputes must be resolved swiftly.

 

 

"Government agencies should be directed to offer the necessary support for
the seamless launch and operation of the Dangote Refinery and its associated
enterprises.

 

"The refinery has the potential to generate approximately $21 billion in
annual revenue and create over 100,000 jobs, with numerous additional
positive impacts on the economy.

 

"Its strategic importance in addressing Nigeria's fuel crisis, boosting
foreign exchange earnings, and fostering economic growth cannot be
overstated.

 

"The refinery is too vital to fail and must not be hindered, considering its
crucial role in our national welfare.

 

"The Federal Government and its agencies need to recognize the significance
of Dangote's contributions. Alhaji Dangote is not just a businessman; he is
a national and African brand symbolizing patriotism, commitment, and
impactful entrepreneurship.

 

Despite operating in a challenging business environment, he has established
a remarkable industrial hub in Nigeria, encompassing over 15 sectors,
including cement, sugar, salt, fertilizer, infrastructure, tomatoes,
automotive, energy, petrochemicals, rice, poly sacks, real estate, mining,
logistics, and maritime.

 

"Alhaji Dangote's unwavering dedication to Nigeria's industrialization, job
creation, and economic growth, despite adversities, warrants full support
and protection.

 

"With economic indicators like unemployment, inflation, Forex scarcity, and
debt worsening, every sensible and patriotic government should regard
enterprises like Dangote Industries as national treasures, meriting robust
support and protection.

 

"In the interest of Nigeria and its citizens, as well as Africans at large,
I urge the Federal Government and its agencies to provide Dangote
Industries, especially the refinery, with all necessary support."

 

- Vanguard.

 

 

 

 

Ghana: Finance Minister - We Are Staying Within Our Budget Limits

Finance Minister Dr. Mohammed Amin Adam has assured Ghanaians that the
government is staying within its budget limits. During his mid-year budget
review presentation in Parliament, he emphasised that the government has
carefully managed its spending to remain within the 2024 Budget
Appropriation.

 

Dr. Adam highlighted that by the end of June 2024, the government had
exceeded its non-tax revenue target by 0.2 percent. He promised that any new
spending will be carefully evaluated to ensure it does not undermine the
recent economic improvements.

 

 

Total Revenue and Grants for the first half of 2024 however amounted to
GH¢74.7 billion, 1.9 percent below the target of GH¢76.1 billion. Despite
the shortfalls, he explained that the outcome shows a nominal year-on-year
growth of 24.6 percent and constitutes 42.3 percent of the Budget's Total
Revenue for the year.

 

The revenue performance was mainly driven by strong performances in Non-oil
Tax Revenue and Non-oil Non-Tax Revenue, which partly offset the shortfalls
in oil receipts for the period, the Minister added. Total Expenditures
(commitment) amounted to GH¢95.9 billion, below the budget target of
GH¢104.8 billion.

 

Dr. Amin Adam reaffirmed the government's commitment to fiscal discipline
and maintaining the economic gains achieved so far. "We are living within
our means," Dr. Adam said, noting that the country is on track to achieve a
primary surplus of 0.5 percent of GDP by the end of the year.

 

He also reported significant progress in managing Ghana's debt. He noted
that the government successfully completed the second review of its Extended
Credit Facility with the International Monetary Fund (IMF), receiving a
third disbursement of 360 million US dollars, totaling around 1.6 billion US
dollars. Additionally, Ghana's debt restructuring with official creditors,
amounting to 5.1 billion US dollars, has resulted in 2.8 billion US dollars
of debt relief. This means Ghana will not need to repay this debt from 2023
to 2026.

 

Furthermore, negotiations with Eurobond holders have led to the cancellation
of 4.7 billion US dollars of debt and provided 4.4 billion US dollars in
debt service relief between 2023 and 2026.

 

- Accra Times.

 

 

 

 

South Africa: GNU Gives SA a Honeymoon Period for Keeping Its Agoa Status,
Say Analysts

New Trade and Industry Minister Parks Tau is fighting for SA's continued
participation in Agoa at the Agoa Forum in Washington this week.

 

The formation of the Government of National Unity (GNU) has secured South
Africa a "honeymoon period" for retaining its privileged access to US
markets under the African Growth and Opportunity Act (Agoa). This is the
view of US politicians and South African trade analysts on the eve of the
annual Agoa Forum which runs from Wednesday, 24 July to Friday, 26 July in
Washington.

 

South Africa's continued participation in Agoa and its good diplomatic
relations with the US generally have been under attack in the US, mainly
from conservative Republican members of Congress -- though with some
Democratic support -- who have tabled legislation that would oblige the
Biden administration to conduct a comprehensive review of US-SA bilateral
relations that includes an assessment of whether SA is undermining US
national security and foreign policy interests.

 

These legislators have been antagonised over the past two years by the ANC
government's friendships with Russia, China and Iran -- and its perceived
hostility to Israel, particularly in taking it to the International Court of
Justice on charges of genocide in Gaza.

 

If the legislation proposed by Republican Representative John James passes
and the Biden administration is forced to review US-SA relations and...

 

Read the full story on Daily Maverick.

 

 

 

 

Nigeria: Kyari Speaks On Allegations of Owning Blending Plant in Malta

Mr Kyari said he is not aware of any employee of the NNPC that owns or
operates a blending plant in Malta or anywhere else in the world.

 

The Nigerian National Petroleum Company Limited (NNPC Ltd) Group Chief
Executive Officer, Mele Kyari, on Tuesday said he does not own or operate
any business directly or by proxy anywhere in the world except a local mini
Agric venture.

 

Mr Kyari, in a statement posted on his X handle on Tuesday, made this known
in reaction to a claim made by the President of Dangote Group, Aliko
Dangote.

 

Mr Dangote, speaking at the House of Representatives on Monday, alleged that
some personnel of NNPC Ltd, oil traders and terminals have opened a blending
plant in Malta.

 

"Some of the NNPC people and some traders have opened a blending plant
somewhere off Malta. We all know these areas. We know what they are doing,"
Mr Dangote said, according to reports.

 

 

A blending plant is a facility with no refining capability but is capable of
producing finished motor gasoline through mechanical blending or blending
oxygenates with motor gasoline.

 

In his reaction on Tuesday, Mr Kyari said he is not aware of any employee of
the NNPC that owns or operates a blending plant in Malta or anywhere else in
the world.

 

"I am inundated by enquiries from family members, friends and associates on
the public declaration by the President of Dangote Group that some NNPC
workers have established a blending plant in Malta, thereby impeding
procurements from local production of petroleum products.

 

"To clarify the allegations regarding the blending plant, I do not own or
operate any business directly or by proxy anywhere in the world except a
local mini Agric venture. Neither am I aware of any employee of the NNPC
that owns or operates a blending plant in Malta or anywhere else in the
world," Mr Kyari said.

 

He explained that a blending plant in Malta or any part of the world does
not influence NNPC's business operations and strategic actions.

 

"For further assurance, our compliance sanction grid shall apply to any NNPC
employee who is established to be involved in doing so if availed, and I
strongly recommend that such individuals be declared public and be made
known to relevant government security agencies for necessary actions given
the grave implications for national energy security," he said.

 

Background

 

Last month, the Vice President of Dangote Industries Limited (DIL),
Devakumar Edwin, accused International Oil Companies (IOCs) in Nigeria of
doing everything to frustrate the survival of Dangote Oil Refinery and
Petrochemicals.

 

He said the IOCs are deliberately frustrating the refinery's efforts to buy
local crude by jerking up the high premium price above the market price,
thereby forcing it to import crude from countries as far as the United
States, with its attendant high costs.

 

 

Speaking to a group of energy editors at a one-day training programme
organised by the Dangote Group at the time, Mr Edwin also lamented the
activity of the Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) in granting licences indiscriminately to marketers to
import dirty refined products into the country.

 

Responding to the claim at the time, the NMDPRA said there is no dirty fuel
being imported into the country, noting that it takes seriously its
statutory mandate to ensure that only quality petroleum products are
supplied and consumed in Nigeria.

 

The NMDPRA explained that the Economic Community of West African States
(ECOWAS) heads of state in 2020 endorsed a declaration adopting the Afri-5
fuel roadmap that requires that certain products have a minimum of 50 parts
per million (ppm) litres of sulphur.

 

Last Wednesday, Mr Edwin insisted that IOCs operating in Nigeria have
consistently frustrated the company's requests for locally produced crude as
feedstock for its refining process.

 

Mr Edwin's response came against the background of a statement by the chief
executive officer of the Nigerian Upstream Petroleum Regulatory Commission
(NUPRC), Gbenga Komolafe.

 

Mr Komolafe had, in an interview on ARISE News TV, said that "it is
'erroneous' for one to say that the IOCs are refusing to make crude oil
available to domestic refiners, as the Petroleum Industry Act (PIA) has a
stipulation that calls for a willing buyer willing seller relationship."

 

Mr Edwin stated that IOCs prefer to sell crude to international trading
arms, who then sell it at a margin.

 

He highlighted that when cargoes are offered to the oil company by the
trading arms, it is sometimes at a $2-$4 (per barrel) premium above the
official price set by NUPRC.

 

The NMDPRA Chief Executive, Farouk Ahmed, while speaking to the state house
correspondents last Thursday, said the refinery is still at the
pre-commissioning stage and has not yet been licensed.

 

Mr Ahmed said the allegations raised by the refinery that its operations are
being scuttled owing to a lack of supply of crude oil by IOCs are untrue,
noting that Mr Dangote is requesting that the regulatory suspend or stop all
importation of petroleum products, especially automotive gas oil (AGO) or
jet kero and direct all marketers to the refinery.

 

The House of Representatives had resolved to set up an ad hoc committee to
investigate the alleged conspiracy by IOCs against the refinery.

 

The resolution follows a motion of urgent public importance moved by the
Minority Leader, Kingsley Chinda (PDP, Rivers), last Thursday.

 

 

In the motion, Mr Chinda said the alleged conspiracy undermines the
refinery's performance from complete optimisation.

 

"The alleged conspiracy against Dangote refinery relates to efforts by the
IOCs to deliberately frustrate the refinery's ability to buy local crude oil
by manipulating and increasing the premium price above the market price," he
said.

 

Mr Chinda added that "whilst the IOCs are keen on exporting raw materials to
their home countries and thus creating wealth and employment for their
countries, thereby adding to their GDP, Nigeria continues to be a dumping
ground for refined products, thus making us dependent on imported petroleum
products."

 

Consequently, the House urged the federal government, the NUPRC, the NMDPRA,
and well-meaning Nigerians to support Dangote Refinery to succeed.

 

Following the crisis, Mr Dangote halted plans to invest in Nigeria's steel
industry. Last Saturday, Mr Dangote said his company's board decided against
the steel investment to avoid the accusations of being considered
monopolistic.

 

On Monday, Nigeria's Minister for State, Petroleum Resources (Oil), Heineken
Lokpobiri, convened a high-level meeting with Dangote, NNPC and others to
address the ongoing issues surrounding the Dangote Refinery.

 

The refinery

 

The 650,000 barrels per day Dangote Petroleum Refinery commenced production
of diesel and aviation fuel in January.

 

Announcing the commencement of production, the company said the refinery had
received six million barrels of crude oil at its two SPMs 25 kilometres from
the shore.

 

The first crude delivery was done on 12 December 2023, and the sixth cargo
was delivered on 8 January.

 

The company made a further move towards the commencement of the production
of refined petroleum products with the receipt of an additional one million
barrels of bonny light crude supplied by the NNPC Ltd.

 

In April, the company commenced supplying petroleum products to the local
market.

 

Last month, Mr Dangote said that Premium Motor Spirit (PMS), popularly known
as petrol, refined at the refinery, will hit the market by July.

 

NNPC Limited had earlier announced plans to acquire a 20 per cent stake in
the refinery.

 

However, last Sunday, Mr Dangote said NNPC Ltd now owns only a 7.2 per cent
stake in the refinery due to its failure to pay the balance of its share,
which was due in June.

 

"The agreement was actually 20 per cent, which we had with NNPC, and they
did not pay the balance of the money up till last year, and then we gave
them another extension up till June (2024), and they said that they would
remain where they have already paid which is 7.2 per cent. So NNPC, the
government (sic) owns only 7.2 per cent, not 20 per cent," Mr Dangote said,
according to reports.

 

Confirming the development in a statement, the NNPC Ltd said its period
assessment of the investment portfolio led to the decline in its share of
the refinery.

 

On Sunday, Mr Dangote told PREMIUM TIMES in an exclusive interview that he
is willing to give up ownership of his multibillion-dollar oil refinery to
the state-owned energy company NNPC Limited.

 

- Premium Times.

 

 

 

 

Ghana Requires $12bn Investment Over Next 3 Years to Drive Economic Growth -
Finance Minister

Ghana will need $12 billion in the next three years to invest in the economy
to promote the growth of the country, the Finance Minister, Dr Mohammed Amin
Adam, has disclosed.

 

To this end, he has appealed to the Arab Bank for Economic Development in
Africa (BADEA) to provide concessional loans to Ghana and finance
Public-Private-Partnership projects in the country.

 

Dr Adam disclosed this during the launch business meeting with some senior
officials of BADEA on the sidelines of the 50th anniversary meeting of the
organisation in Ghana.

 

He said the objective of the government was to achieve the pre-COVID-19
growth of seven per cent from the current 2.9 per cent.

 

BADEA with its headquarters in Khartoum in Sudan is an independent
international finance institution established in 1974 and commenced its
developmental activities in 1975.

 

As part of the programme, the Ghana Investment Promotion Authority (GIPC)
briefed the team about the investment opportunities that exist in the
country.

 

Dr Adam in his remarks said Ghana recorded high public debt in recent times
due to the COVID-19 pandemic, which occasioned the need for the government
to borrow to save lives and keep the economy running.

 

According to the Minister, the high public spending during the COVID-19 era
led to the soaring of public debt and budget deficit which at a point was
between 13 and 14 per cent, and hence the need for the government to seek
International Monetary Fund support to restore macroeconomic stability and
tame the growing public debt.

 

Dr Adam said the IMF programme had helped to bring back macroeconomic
stability to the country and the economy was recovering faster than
anticipated, adding that the economy last year grew at 2.9 per cent higher
the target of 1.5 per cent and in the first quarter of this year grew at 4.7
per cent against the target of 3.1 per cent.

 

Dr Adam said inflation had trended down from 53 per cent the previous year
to about 22 per cent currently and the Cedi was currently stable against its
international peers.

 

The Finance Minister said as part of efforts to boost the country's economic
recovery, the government had launched the Small and Medium-scale Enterprise
(SME) Growth and Opportunity Programme and intend to raise $600 million from
private sources to support SMEs and called for BADEA's support for the
programme.

 

Dr Adam called for a Saudi-Ghana Business Summit to be organised in Riyadh
in October, and stressed the need for BADEA to strengthen its partnership
with Ghana which was started in the 1970s.

 

The Chief Operating Officer in charge of Public Sector of BADEA, Diab
Karrar, said Ghana and BADEA established a relationship in the 1970s.

 

He said BADEA had so far invested in about 42 projects with total investment
of $511 million and pledged BADEA's continued commitment to strengthen its
partnership with Ghana.

 

The Chief Executive Officer of Saudi Fund for Development, Dr Sultan
Abdulrahman, said his outfit was supporting 11 projects in the country and
would continue to support education and health to propel the development of
the country.

 

The Deputy Chief Executive Officer of GIPC, Mr Yaw Amoateng Afriyie, said
the objective of his outfit was to attract $70 billion worth of Foreign
Direct Investment into the country in the short to medium term.

 

He said Ghana abounded in numerous investment opportunities and urged BADEA
to take advantage of that to diversify their investment portfolios.

 

- Ghanaian Times.

 

 

 

 

Ghana: Mid-Year Budget Review Today Amidst Austerity and Rising Costs

Mid-Year Budget Review to offer glimpse into how the rest of the year will
look like.

 

Finance Minister Dr. Mohammed Amin Adam will present the Mid-Year Budget
Review to Parliament today, July 23, offering a glimpse into the economic
outlook for the rest of the year. This will be his first budget presentation
since taking office earlier this year following a cabinet reshuffle.

 

The review follows Ghana's recent debt restructuring deal with external
creditors, which has provided some clarity on the nation's debt burden and
impact on the country's short to medium-term revenue prospects. It is also
conducted within the constraints of an International Monetary Fund (IMF)
programme, which mandates specific targets for Ghana to qualify for the next
tranche of funds disbursement.

 

 

Currently, the public is grappling with high food prices, soaring fuel
costs, and increased utility tariffs, contributing to a harsh economic
environment marked by a high cost of living and declining real incomes.

 

A statement from the Ministry of Finance indicates that the review will
offer a comprehensive update on the implementation of the 2024 Budget. It
will provide insights into the nation's economic and fiscal performance
during the first half of the year, including updates on growth measures,
revenue, expenditure performance, debt sustainability, and the IMF-supported
Post Covid-19 Programme for Economic Growth (PC-PEG).

 

Dr. Amin Adam will also outline the economic outlook for the second half of
the year, potentially revising policies to promote SME growth and ensuring
the effective implementation of key government programmes. The review will
address revenue measures, expenditure controls, and financing adjustments
based on the past six months' economic performance.

 

Given the current economic hardships, the public is eagerly anticipating
policies that could alleviate the high cost of living, while investors with
locked-up investments are hoping for commitments from the government to
repay their funds, either in full or partially.

 

Previously, Dr. Amin Adam stated that the government does not plan to seek
parliamentary approval for additional spending, suggesting no new taxes or
major projects will be announced. However, he will need to detail how the
government intends to mobilize more domestic revenue and control spending as
required by the IMF.

 

This presentation will be the first in seven years without former Finance
Minister Ken Ofori-Atta's direct involvement. However with his current role
as Senior Presidential Advisor and Special Envoy for International Finance
and Private Sector Investments, Mr. Ofori-Atta is expected to have
contributed to the budget. Notably, this may be the first budget
presentation since 2017 without Bible quotes, potentially replaced by
Quranic references if Dr. Amin Adam follows his predecessor's format.

 

- Accra Times.

 

 

 

 

Ghana: Monetary Policy Committee Begins Meeting Amidst Easing but High
Inflation

Current economic environment and IMF programme may drive MPC to maintain
policy rate again.

 

Today, July 23, the Monetary Policy Committee (MPC) of the Bank of Ghana
will commence its regular meeting to review the state of the economy. Held
every other month, this meeting also serves to announce the policy rate,
which indicates the direction of interest rates in Ghana.

 

This session is particularly notable as it follows Ghana's recent debt
restructuring agreements with its main external creditors. Coinciding with
the Mid-Year Budget review presentation to Parliament, the MPC will have
ample information to assess the economy's performance and consider measures
to restore stability.

 

 

The meeting comes on the heels of declining year-on-year inflation, which
stood at 22.8% in June, down from 23.1% in May when the last meeting was
held. While the decreasing inflation rate could suggest a reduction in the
policy rate from its current 29%, the month-on-month inflation of 2.9% in
June limits the scope for significant changes.

 

Furthermore, the Committee will be influenced by the International Monetary
Fund (IMF) Board's statement after approving Ghana's third tranche of $360
million on June 28. The IMF emphasised, "Going forward, maintaining an
appropriately tight monetary stance, and enhancing exchange rate flexibility
are of the essence, along with timely implementation of Fund's advice on
safeguards."

 

This guidance suggests the MPC may lean towards keeping the rate unchanged
unless there is a clear outlook for a significant reduction in inflation in
the coming months.

 

However, economists such as Dr. John Kwakye of the Institute of Economic
Affairs continue to challenge the MPC's approach of maintaining a high
policy rate to combat inflation. In his latest post on X, Dr. Kwakye
questioned, "Are implementing tight monetary policy measures and increasing
reserve ratio, the solution to Ghana's inflation that is being fueled by
food prices, fuel prices, utility tariffs, transport fares and exchange rate
depreciation?"

 

The perspectives of economists like Dr. Kwakye, along with others sharing
similar views, cannot be entirely ignored by the Committee. The final
decision on the policy rate and the economic review will be revealed on
Monday, July 29, when Governor Dr. Ernest Addison addresses the media
regarding the meeting's outcomes.

 

- Accra Times.

 

 

 

 

Luxury brands suffer as Chinese shoppers hold back

China's economic slowdown and a crackdown by Beijing on displays of wealth
are taking a toll on some of the world's top luxury brands.

LVMH says its sales in Asia, which include China but not Japan, fell by 14%
in the three months to the end of June, worsening from a 6% decline in the
first quarter.

The Paris-based firm is not alone, as many of its competitors are also
seeing sales slow in the world's second largest economy.

It comes as Chinese shoppers cut back on expensive purchases and government
censors shut down social media accounts of influencers who have shown off
their luxury goods online.

 

LVMH, which is the world's largest luxury group, also said its overall
revenue growth had slowed to 1% for the period.

Still, the group's chairman and chief executive Bernard Arnault remained
cautiously optimistic.

“The results for the first half of the year reflect LVMH’s remarkable
resilience... in a climate of economic and geopolitical uncertainty."

"While remaining vigilant in the current context, the Group approaches the
second half of the year with confidence," he told investors.

Shares in the the company - home to 75 high-end brands including Louis
Vuitton, Dior and Tiffany & Co - have fallen by almost 20% over the last
year.

LVMH is not the only big name feeling a slowdown of luxury goods sales in
China.

In its latest financial figures, upmarket British fashion label Burberry
said its sales in mainland China had fallen by more than 20%, compared to a
year earlier.

Swatch Group - the Swiss watchmaker which owns Blancpain, Longines and Omega
- said weak demand in China helped push down its sales by 14.4% for the
first six months of 2024, compared to the same time the previous year.

Richemont, which owns Cartier, saw sales in China, Hong Kong and Macau, fall
27% year-on-year in the quarter ending on 30 June.

And German fashion giant, Hugo Boss, downgraded its sales forecasts for the
year on concerns about weak consumer demand in markets like China and the
UK.

Other major luxury goods industry players, including Hermes and Gucci-owner
Kering, are due to report their latest financial results this week.

Recent data out of China suggest the economy is still struggling to recover
from the pandemic downturn, as both second quarter growth and June retail
sales figures came in below expectations.

Flaunting luxury brands online has also come under the scrutiny of Chinese
authorities.

In May, state-controlled newspaper Global Times reported that an internet
celebrity called Wanghongquanxing was banned from social media "amid a
crackdown on online wealth show-offs."

His account on Douyin, China's equivalent of TikTok, had more than four
million followers.

Several other popular influencers have also seen their accounts deleted in a
campaign that China's internet watchdog has said was aimed at banning
"vulgar" and deliberately ostentatious content.-BBC

 

 

 

 

 

 

Cyber-security firm rejects $23bn Google takeover

Israeli cyber-security firm Wiz has rejected a $23bn (£17.8bn) takeover
offer from Google parent company Alphabet, in what would have been its
largest-ever acquisition.

In an internal memo to staff seen by the BBC, Wiz founder and chief
executive Assaf Rappaport said he was "flattered" by the offer.

He said the company would instead seek to reach $1bn (£775m) in revenue
before selling shares to the public.

A source close to the deal told the BBC the offer was "very tempting", but
Wiz believed it was big enough to go it alone and attempt to become the
biggest cyber-security company in the world.

Earlier this year, the firm reported an annual recurring revenue of $500m
(£387m).

And it claimed itself to be the fastest-growing software company in history
in 2022, when it reached $100m (£74m) in annual revenue in its first 18
months.

Wiz and Alphabet have been approached for comment.

“I know the last week has been intense, with the buzz around a potential
acquisition," said Mr Rappaport in the memo sent to staff.

“While we are flattered by offers we have received, we have chosen to
continue on our path to building Wiz.”

In turning down Google's offer, Wiz will look to make an initial public
offering (IPO) - a major step which would see the firm debut on a stock
exchange.

 

Military to Microsoft

Wiz is the third venture by Mr Rappaport and his three co-founders Ami
Luttwak, Roy Reznik and Yinon Costic, who first met while serving in the
Israeli military.

The group worked together in the country's equivalent of the UK's GCHQ or
the US National Security Agency.

Many of the biggest Israeli cyber-security companies in the world have been
created by people who served in this division, including Check Point, Palo
Alto and Armis.

In 2012 the founders started a cyber-security company called Adallom, which
was bought by Microsoft for $320m (£248m) three years later.

The founders took their team to the tech giant as part of the deal, where
they worked on security products.

They left Microsoft and launched Wiz in March 2020.

Getty Images/Bloomberg Google/Wiz logosGetty Images/Bloomberg

Google's acquisition of Wiz would have been the tech giant’s largest-ever
acquisition

Commentators have attributed the founders' work at Microsoft for creating
such excitement at Alphabet about a potential purchase of Wiz.

In May, it was valued at $12bn (£9.3bn) during a $1bn (£775m) fundraising
campaign.

“This is the mindset we need in Europe," said London Stock Exchange head of
tech Neil Shah in a post on LinkedIn.

"The founders of Wiz walk away from a billion $ payday and have put it back
on the roulette table in the hope of a more rewarding outcome in the long
term.

“They saw where the value went last time when they sold. Good luck to them.”

Wiz has bases in New York, Tel Aviv and three other US locations according
to its website.-BBC

 

 

 

Delta faces probe as CrowdStrike disruption lingers

The US has opened an investigation into Delta Airlines as it struggles to
recover from last week's global IT outage.

Transportation Secretary Pete Buttigieg said Delta must provide passengers
with refunds and other compensation for disrupted travel as required by law.

A day earlier, Delta, which has cancelled more than 5,000 flights since
Friday, signalled it could take several more days for operations to return
to normal.

Meanwhile, CrowdStrike's boss George Kurtz, whose cybersecurity firm sparked
the chaos with a faulty overnight update, has also been called to testify in
Congress.

 

The House Committee for Homeland Security said in a letter: "While we
appreciate CrowdStrike’s response and coordination with stakeholders, we
cannot ignore the magnitude of this incident.

It added: "Recognising that Americans will undoubtedly feel the lasting,
real-world consequences of this incident, they deserve to know in detail how
this incident happened and the mitigation steps CrowdStrike is taking.”

CrowdStrike said it was working on ways to make it easier and faster to fix
the issue, which downed an estimated 8.5 million Microsoft Windows devices
globally, hitting airlines, health systems and other services.

In many cases, IT teams had to reboot computers manually.

Delta, which appears to have had more difficulty recovering than other
airlines, said that its crew-staffing system had been affected by the
incident.

As of Tuesday morning, it had already cancelled more than 400 flights and
delayed hundreds of others, following more than 1,150 cancellations a day
earlier, according to tracking firm Flight Aware.

Delta said it was focused on restoring operating and "fully cooperating"
with the Department of Transportation's investigation.

"Across our operation, Delta teams are working tirelessly to care for and
make it right for customers impacted by delays and cancellations as we work
to restore the reliable, on-time service they have come to expect from
Delta,” the company said.

But the incident has raised pressure on the company.

In announcing the investigation, Mr Buttigieg said: "All airline passengers
have the right to be treated fairly, and I will make sure that right is
upheld."

"While you should first try to resolve issues directly with the airline, we
want to hear from passengers who believe that Delta has not complied with
[the transport department's] enforced passenger protection requirements
during the recent travel disruptions. We will follow up," he wrote on social
media.

Senator Maria Cantwell, who leads the Senate commerce committee, also sent a
letter to the company, noting that it had been "far slower" than other
airlines to recover.

She faulted the firm for inaccurately describing passenger rights to refunds
on its website and noted its responsibility to ensure live customer service
agents are available to assist customers.

"While the technology outage was clearly not caused by Delta or any airline,
I am nevertheless concerned that Delta is failing to meet the moment and
adequately protect the needs of passengers," she wrote.

The Biden administration in April finalised a rule requiring that airlines
promptly and automatically refund passengers for significant changes to
their travel, and other issues.

It was part of a broader effort to step up policing of airlines after a
series of major travel meltdowns.

Last year, Southwest Airlines agreed to pay $140m (£108m) resolve a
Department of Transportation investigation launched after a storm disrupted
service and set off a cascade of cancellations during the busy 2022 holiday
travel period.-BBC

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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

Email:                <mailto:bulls at bullszimbabwe.com>
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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


 (c) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:
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