Major International Business Headlines Brief::: 30 July 2024

Tue Jul 30 10:52:28 CAT 2024

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Major International Business Headlines Brief:::  30 July 2024 

 <mailto:info at bulls.co.zw> 

ü  Nigeria's Spending On Jet Fuel Importation Falls 87% to N31bn

ü  Nigeria: Divestment - Seven Environment, Community Issues Holding Down Sellers, Buyers - Investigation

ü  Niger: French Nuclear Giant Slips Into the Red Following Niger-French Breakup

ü  Nigeria: Olam Agri in Nigeria Partners Kwara Govt to Empower Agri-Extension Workers

ü  South Africa: Eskom Fleet's Winter Performance 'Exceeding Even Our Own Expectations' - Electricity Minister

ü  Africa: Agoa Still in the Balance for South Africa, and Pressure Must Be Sustained On the U.S.

ü  South African Maritime Authority Works to Avert Disaster After West Coast Oil Spill

ü  Ethiopia: IMF Approves Four-Year U.S.$3.4 Billion Extended Credit Facility Arrangement for Ethiopia

ü  Nigeria: Tinubu Orders Sale of Crude Oil to Dangote, Other Refineries in Naira

ü  Uganda: In Uganda, a Substantial Teacher Pay Raise Isn't Good News for Everyone

ü  Air NZ becomes first big carrier to drop climate goal

ü  McDonald's to 'rethink' prices after sales fall

ü  Winter fuel payments scrapped for millions

ü  Meloni meets Xi as Italy vows to 'relaunch' ties with China

 <mailto:info at bulls.co.zw> 

Nigeria's Spending On Jet Fuel Importation Falls 87% to N31bn

Nigeria's spending on kerosene type jet fuel importation fell quarter-on-quarter (QoQ) by 87 percent to N31 billion in the first quarter of 2024 (Q1'24) from N239.18 billion in Q4'23.

Meanwhile, according to a report on 'Foreign Trade in Goods Statistics' by the National Bureau of Statistics (NBS) for Q1'24, also indicated that the product was among the top traded in West Africa during the period.

Jet A-1 is a kerosene-type fuel compatible with most jet aircraft, both civil and military, helicopter turbine engines, turboprops and compression-ignition piston engines.

Recall that in March 2024, a statement by the Director of Public Relations and Information, AVM. Edward Gabkwet, noted that the Chief of Air Staff, Air Marshal Hassan Abubakar, decried the high costs of fuel prices as well as the introduction of surcharges, while pleading with the National Assembly to permit the Air Force to import Jet A-1 fuel to sustain ongoing air operations.

According to Abubakar, the cost of Jet A-1 was about N1,200 per litre as against the N360 per litre the service budgeted for adding that this issue was affecting the effectiveness of the NAF.

This comes at the backdrop of a shipment of jet fuel to Europe by Dangote Refinery, with stakeholders expecting that in-country distribution would have addressed the issue of high cost of the product in Nigeria.

The inaugural shipment, loaded onto the "Doric Breeze" vessel, departed from the Lekki Free Zone in Lagos on May 27th and is currently en route to Rotterdam, Netherlands, according to S&P Global Commodities at Sea data.

The cargo, containing 45,000 metric tons of jet fuel, was awarded to BP as part of a 120,000-metric-ton tender offered by the refinery. Spanish refiner Cepsa also secured a portion of the tender.

- Vanguard.

Nigeria: Divestment - Seven Environment, Community Issues Holding Down Sellers, Buyers - Investigation

There are indications that seven factors - many years of environmental pollution, conflicts with host communities, petitions against divestment, several judgment debts, decommissioning liabilities, lack of financial capacity and lack of adequate technical competence - might stop some companies from selling and buying oil assets, under the current divestment programme.

This is even as the government has insisted that due process be followed as contained in the Divestment Framework, consisting of seven cardinal pillars in line with the Petroleum Industry Act, PIA and the national interest of Nigeria.

The pillars encompass technical capacity, financial viability, legal compliance, decommissioning obligations, host community engagement, labor relations, and data repatriation.

Checks by Energy Vanguard indicated that some companies involved in the various divestment have made submissions to demonstrate their commitments toward protecting the environment, resolving communal issues, decommissioning as well as financial and technical competence while others have not sufficiently done so.

Also, while the government has cleared Eni's to sell Nigerian Agip Oil Company Ltd (NAOC) assets to Oando Plc, others to be concluded included the ExxonMobil/Seplat deal, involving the divestment of the entire interest in Mobil Producing Nigeria Unlimited to Seplat Energy and the sale of Shell Petroleum Development Company of Nigeria Limited (SPDC) onshore assets to Renaissance Group.

The group is made up of five Nigerian exploration and production companies (ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and The Waltersmith Group) plus an international energy group (Petrolin Limited).

It was further learnt that sellers' pre-deals financial obligations will be more than a billion US dollars, even as it remains unclear if they have the capacity to pay.

It was also gathered that the oil assets will add between 300,000 bpd and 350,000 bpd to the nation's output, amounting to $28 million at the current $80 per barrel price of oil in the global market.

FG to disclose status of outstanding divestment

The Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gbenga Komolafe, could not be reached for comments over the weekend.

But a reliable source in the Commission, who pleaded anonymity, said: "Already, the Commission has concluded plans to provide updates on the status of the various divestment. We have been working to ensure the divestment are concluded in a very responsible and transparent manner.

"Some IoCs, still have unresolved environment and community issues in the Niger Delta. Some communities have gone as far as writing petitions against them, saying they would not want to be transferred to other parties without resolving them.

"There are also others with outstanding issues, due to several decades of oil and gas exploration, production and pollution, including communal conflicts. In some cases, debts or claims have not been paid after years of court judgments.

"The government would like to get satisfactory answers or concrete plans toward addressing these and other matters, including technical and financial capacities. So, it would be difficult for companies with such issues to scale through. If they do, I will be surprised because there is zero tolerance against these issues as the Commission would not want to be blamed now and in the future for any consequences."

We regulate to protect national interest -- NUPRC

The source also said: "As a regulator, our work is guided by the comprehensive Divestment Framework consisting of seven cardinal pillars. Each aspect is meticulously assessed to safeguard national interests and ensure a seamless transition. The framework was established for the first time in the 68-year history of Nigeria's exploration and production, in line with the PIA and the national interest of Nigeria. The regulator has defined clear seven regulatory pillars and gazetted assignment regulation in line with the law to transparently guide divestment and assignment of interests in the upstream. Should the law be fulfilled and upheld in our national interest against the wishes of a few cabal? I think so."

Oil theft, sabotage major causes of spill -- Shell

Further checks by Energy Vanguard indicated that many IoCs and other stakeholders do not make their daily environment-related information public as a matter of policy.

However, in its latest briefing notes obtained by Vanguard, Shell noted that only few spills occur as a result operational issues, adding: "Most oil spills in the Niger Delta region continue to be caused by crude oil theft, the sabotage of oil and gas production facilities, and illegal oil refining, including the distribution of illegally refined products.

"In 2023, about 94% of the oil spills of more than 100 kilograms from SPDC-operated facilities were caused by illegal activities of third parties - 139 incidents with a total volume of 1.4 thousand tonnes, compared to 75 incidents in 2022 with a total volume of 0.6 thousand tonnes."

- Vanguard.

Niger: French Nuclear Giant Slips Into the Red Following Niger-French Breakup

French nuclear giant Orano ended the first half of the year with a loss of €133 million, weighed down by difficulties in its mining activities in Niger due to a "highly degraded" political context since a military regime came to power a year ago.

At the end of June 2024, the group noted "the deteriorated situation affecting mining operations in Niger," Orano's chief financial officer, David Claverie, said in a statement.

The coup d'état in Niger on 26 July last year led to a halt in imports of critical materials necessary for uranium exploitation in Orano's Somaïr mine, such as soda ash, carbonate, nitrates and sulphur.

And although uranium extraction continued in the first quarter of 2024 "after several months of early maintenance," Somaïr's sales were unable to resume "due to a lack of logistics solutions approved by the Niger authorities".

The blockage led the mine into "financial difficulty ... weighing on its ability to continue its operations", the statement read.

In late June, Niger decided to withdraw the licence of Imouraren SA, a company jointly operated by Orano, Niger Mining and Korea Electric Power, and which ran the Somaïr mine.

The situation could eventually lead to "insolvency in the short to medium term, in the coming months", Claverie said.

Niger's junta returns French-run uranium mine 'back to public domain'

Growing French reliance on nuclear

According to figures published by the French Ministry of Ecological Transition, 40 percent of France's energy consumption comes from nuclear, 28.1 percent from petrol, 15.8 percent from natural gas, and 12.9 percent from alternative sources such as wind and hydropower.

French electricity company EDF's figures show that nuclear generates 70.6 percent of the country's electricity supply, compared to hydropower on 11.2 percent, wind power 6.3 percent and solar 2.2 percent.

In February last year, French President Emmanuel Macron called for a "nuclear renaissance" in order to "move away from fossil fuel" via the construction of 14 new nuclear reactors.

The Russian invasion of Ukraine later that month encouraged countries to reduce their dependence on Russian gas imports and gave new impetus to developing the nuclear industry.

As a result, France's dependency on uranium is set to grow substantially in the coming years.

France's Macron calls for a nuclear power 'renaissance', building at least 6 reactors

Other sources of uranium

In order to counter the "loss" of Niger and its mining operations, Orano sought to reassure clients about supply security, which "remains ensured thanks to the diversity of its supply sources" in other regions.

According to an infograph by the company published in 2021, France has been gradually moving away from Niger's uranium.

Most of the "yellow cake" now comes from Kazakhstan (2,840 tonnes), with Niger's Somaïr (1,996 tonnes) a solid second until 2023. The Cigar lake mine in Canada also produces 1,788 tonnes.

Macron is shopping for uranium in Kazakhstan after the loss of Niger

More recently, France has been looking into possible cooperation with Mongolia as well.

Despite its troubles in Niger, the group confirmed its outlook for the end of the year, with stable revenues of around €4.8 billion and a pre-tax margin rate on revenue maintained between 22 percent and 24 percent.  RFI website.

Nigeria: Olam Agri in Nigeria Partners Kwara Govt to Empower Agri-Extension Workers

The workshop provided a platform for equipping extension agents with practical knowledge and skills to support farmers effectively which is a significant stride towards the overall development of the agricultural sector in Kwara State.

In collaboration with the Kwara State Ministry of Agriculture, Olam Agri in Nigeria's Integrated Feed & Protein Business has launched a 2-day Agri-Extension Capacity Building Workshop to empower agricultural extension agents and officers in Kwara State. This vital initiative occurred in Ilorin on July 15 and 16, 2024.

The workshop provided a platform for equipping extension agents with practical knowledge and skills to support farmers effectively which is a significant stride towards the overall development of the agricultural sector in Kwara State. Top-ranking officials from the state government comprising Oloruntoyosi Thomas, the Commissioner for Agriculture, Mrs Funke Sokoya, the Permanent Secretary of the Ministry of Agriculture, Afolabi Temple, the Press Secretary in the Ministry of Agriculture, and other directors provided support at the workshop. Overall, a total of 118 extension officers were trained.

Mr Seyi Adesomi, Vice President of Manufacturing and Technical Services at Olam Agri, stressed the importance of this empowerment, stating, "This workshop equips extension agents with the necessary skills to train farmers on essential practices like sustainable agriculture, post-harvest loss reduction, and farm mechanization." He noted that the focus on soybean production aligns with Olam Agri's commitment to supporting the growth of this crucial crop in Nigeria.

Mrs Thomas, the commissioner for agriculture, reiterated the state government's unwavering commitment to ensuring food security and promoting sustainable practices. She stated, "We are committed to supporting our agricultural extension agents, who are critical in empowering our farmers. This workshop provides them with the necessary tools and knowledge to deliver effective extension services, particularly in soybean production."

In addition to these efforts, Olam Agri is set to commission a new soybean crushing facility in Kwara State in the coming months. This facility will play a crucial role in boosting the local soybean processing capacity, creating jobs, and supporting the agricultural value chain in Kwara State, underscoring Olam Agri's commitment to advancing agricultural development and economic growth in the region.

Olam Agri is a market leading, differentiated food, feed and fibre agri-business with a global origination footprint, processing capabilities and deep understanding of market needs built over 34 years. With a strong presence in high-growth emerging markets and products across grains and oilseeds, freight, integrated feed and protein, rice, edible oils, specialty grains & seeds, sugar, cotton, wood products, rubber and risk management solutions, Olam Agri is at the heart of global food and agri-trade flows with 39.6 million MT in volume traded in 2023.

Focused on transforming food, feed and fibre for a more sustainable future, it aims at creating value for customers, enabling farming communities to prosper sustainably and strive for a food-secure future. Olam Agri Holdings Limited, which holds the Olam Agri business, is a 64.6% owned subsidiary of Olam Group.

Olam Group is a leading food and agri-business supplying food, ingredients, feed and fibre to 22,000 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a global network of farmers

- Premium Times.

South Africa: Eskom Fleet's Winter Performance 'Exceeding Even Our Own Expectations' - Electricity Minister

In a media briefing on Monday, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa lauded Eskom's winter energy availability factor hitting 70%, beating their own projections.

At the briefing, Ramokgopa heaped praise on Eskom group executive for generation Bheki Nxumalo and other members of the executive, as he announced that the utility's energy availability factor (EAF) was "exceeding even our own numbers".

The minister was saying that the percentage of time that electricity was available as required had increased to more than 15% above the same levels for this time last year, going far beyond what anyone on the team had expected to be possible in the middle of winter when peak electricity demand rises significantly.

Speaking about what he called the "stellar performance of the grid", Ramokgopa said "the numbers are far exceeding even our own expectations and projections of where we thought we will be this time of the year in the journey to recovery".

"We are getting closer to the resolution of the energy deficit."

Ramokgopa shared some details. "Over the past week, what we have seen as a trend, and it appears to be sustained now... Eskom has averaged 70% of the EAF." He emphasised that this was just for the past week and that the EAF year to date is 62%.

Eskom explains that the EAF is "the difference between the...

-Daily Maverick.

Africa: Agoa Still in the Balance for South Africa, and Pressure Must Be Sustained On the U.S.

New Minister of Trade, Industry and Competition Parks Tau has made a compelling case that South Africa is seeking to reset its relationship with the United States, which has faltered during the past few years.

Listen to this article 7 min Listen to this article 7 min Last week, the 21st Africa Growth and Opportunity Act (Agoa) Forum was held in Washington DC. This annual forum is mandated by the Agoa legislation and is meant to provide an opportunity for stakeholders to evaluate the programme's successes and shortcomings.

The first day of the event provided opportunities for the private sector, civil society and African governments to gather and provide their inputs to the formal government-to-government forum held on days two and three. This year's forum was a subdued affair, perhaps owing to the unprecedented political dynamics in Washington, the visit of Israeli Prime Minister Benjamin Netanyahu, or plain Agoa Forum fatigue - or a combination of the three.

The private sector forum was opened by US Trade Representative Katherine Tai and Secretary of State Antony Blinken. Both members of President Joe Biden's cabinet underscored the importance of US-Africa trade and the renewal of the Agoa legislation which expires next year.

While there has been historic bipartisan support for Agoa since its passage in 2000, the debate has centred on what to include in the next version of the Bill. Some argue that a lean Bill... Daily Maverick.

South African Maritime Authority Works to Avert Disaster After West Coast Oil Spill

A Panama-flagged cargo ship broke apart over the weekend on the West Coast. Severe weather has hindered a thorough assessment of the damage and extent of an oil spill from the vessel, with potential impacts on nearby fishing grounds, estuaries and islands supporting threatened species of seabirds.

Listen to this article 7 min Listen to this article 7 min The MV Ultra Galaxy beached on its side in a remote area of the West Coast in early July during a severe storm. It broke apart at the weekend, battered by more stormy seas, causing an oil spillage.

The fertiliser cargo aboard the ship has dissolved into the ocean, with its white carrier bags washing ashore on nearby beaches.

Before the vessel broke apart, several lube oil drums and eight tonnes of marine gas oil were removed from it.

The spokesperson for the South African Maritime Safety Authority (Samsa), Tebogo Ramatjie, said their focus was now on preventing the remainder of the fuel from spilling into the sea and then safely removing the wreck.

"That requires planning because now we are working with a vessel that broke apart on Friday. It changes a lot of things. We are going to have to sit down and plan again about how to then remove [the wreck]. We need to remove the fuel as safely as possible and as quickly as possible, and then eventually remove the wreck from the beach," he said.

Samsa said attempts were being made to contain...

-Daily Maverick.

Ethiopia: IMF Approves Four-Year U.S.$3.4 Billion Extended Credit Facility Arrangement for Ethiopia

Addis Ababa — The International Monitory Fund (IMF) executive board has approved a four-year 3.4 billion US dollars extended credit facility arrangement for Ethiopia.

The four-year financing package will support the Homegrown Economic Reform (HGER) Agenda to address macroeconomic imbalances, restore external debt sustainability, and lay the foundations for higher, inclusive, and private sector-led growth.

The Executive Board's decision will enable an immediate disbursement of SDR 766.75 million (equivalent to about 1 billion USD), which will help Ethiopia meet its balance of payments needs and provide support to the budget.

The homegrown economic program, supported by the four-year ECF arrangement, envisages a comprehensive policy package to stimulate private sector activity and increase economic openness to promote higher and more inclusive growth.

According to IMF press release, strengthening social safety nets to mitigate the impact of reforms on vulnerable households is a critical component of the authorities' reform program.

Key policies include: (i) moving to a market-determined exchange rate to help address external imbalances and relieve FX shortages; (ii) combating inflation through modernizing the monetary policy framework, eliminating monetary financing of the budget, and reducing financial repression; (iii) creating space for priority public spending through mobilizing domestic revenues; (iv) restoring debt sustainability, including through securing timely debt restructuring agreements with external creditors; and (v) strengthening the financial position of state-owned enterprises to tackle critical macro-financial vulnerabilities.

"This is a landmark moment for Ethiopia", said IMF Managing Director Kristalina Georgieva. "The approval of the ECF is a testament to Ethiopia's strong commitment to transformative reforms. The IMF looks forward to supporting these efforts to help make the economy more vibrant, stable, and inclusive for all Ethiopians."

The program is expected to help catalyze additional external financing from development partners and provide a framework for the successful completion of the ongoing debt restructuring.

- ENA.

Nigeria: Tinubu Orders Sale of Crude Oil to Dangote, Other Refineries in Naira

Abuja — The Federal Executive Council (FEC) rose from its meeting presided over by President Bola Tinubu on Monday with an express approval of the sale of crude oil to indigenous refineries including Dangote Refinery in Naira.

Briefing newsmen at the end of the meeting at the State House, Abuja, Special Adviser to the President on Revenue, Zacch Adedeji said President Tinubu has directed the Nigeria National Petroleum Corporation Limited, to ensure this is done with immediate effect.

His words: "Today, at the Federal Executive Council, there was a memo by Mr President, which is to promote the sale of crude oil within local refineries and Nigeria National Petroleum Corporation (NNPC), to deal in our local currency.

"The attitude of Mr President is thinking outside the box to solve Nigeria's problem and actually to localised the solutions to Nigeria's problem.

"He has approved through the Council that effective immediately, that NNPC get engaged with local refineries and we are starting that with Dangote Refinery. That the sales of crude oil to Dangote Refinery be denominated in Naria and also the sales of byproducts from Dangote Refinery to distributors also be conducted in naira.

"And what does it mean to our economy? One, the pressure on foreign exchange will be reduced."

Adedeji said Nigeria currently spends between 30% to 40% of foreign exchange on importation of PMS that it consumes.

According to him: "Monthly, we spend roughly $660 million in these exercise and if you analyse that will give us $7 .92 billion annually.

"With this approval today through FEC led by Mr President, this has reduced by minimum of 90 percent. Because what we have today, the transaction will now be down in our local currency not only to Dangote Refinery but to all local refineries for all our local consumption and this will actually stabilise the pump price.

"This will also make economic stability a reality because there is no longer reality on the fluctuation in forex. Once again, this is an innovation of solving our problem as a country today."

Details Later....

- This Day.

Uganda: In Uganda, a Substantial Teacher Pay Raise Isn't Good News for Everyone

Kampala, Uganda — The government boosted pay to attract and retain public school teachers. As far as private school students are concerned, it's worked a little too well.

Avis Natukunda would still be in private school if it weren't for a lack of teachers.

The aspiring economist needed to pass her exams to be able to go to university, but when she sought out her teachers, particularly her math teacher, to go over materials she didn't understand, they were nowhere to be found.

So, in the middle of the 2023 school year, Natukunda, 17, asked her parents to transfer her from the private school she'd attended for four years to a public school.

"I worried about having to adapt to a new environment, a new culture and having to start afresh making new friends," she says. "It took a bit of time for me to adjust."

Natukunda blames the lack of access to teachers at her private school on a recent salary increase for those teaching in government-run secondary schools. Her math teacher was on campus at least four days a week before the increase, she says. After, he was only around twice a week.

"When I want to consult him, he is not available," she says.

In 2022, the Ugandan government tripled or quadrupled public secondary school science teacher salaries, depending on the teacher's level of training. Salaries for science teachers with two-year diplomas working full time increased from 900,000 Ugandan shillings (236 United States dollars) to 3 million shillings (788 dollars). Salaries for those with degrees, which take three to four years to complete, and who work full time increased from up to 1.2 million shillings (315 dollars) to 4 million shillings (1,050 dollars) per month.

The government raised their pay as part of a broader effort to improve science teaching and learning, increase the number of students, and encourage innovation in the sciences, says Aaron Mugaiga, secretary general of the Uganda Professional Science Teachers' Union. The hope was that with higher salaries, public schools would retain more science teachers who would focus on teaching rather than working at multiple schools to make ends meet.

Private school students, proprietors and teachers, however, say the raise has made it more difficult to hire and retain science teachers. Instead, they flock to public schools, which pay better. Biology and chemistry teachers are particularly scarce. Private schools say they can't afford to incentivize teachers to work for them by matching the higher salaries, so they lose them to public schools. Currently, part-time science teachers in private schools earn 300,000 to 500,000 shillings (79 to 131 dollars) monthly. When adjusted to a full-time salary, the highest-earning science teacher in a private school earns one-third the salary of the lowest earning in government schools. Some schools have increased pay for science teachers but say it eats into their profits and ultimately increases costs for students and their families. Part-time teachers have become particularly difficult to hire because many were public school teachers who needed to supplement their income before the raise.

The Ministry of Education and Sports did not respond to several requests for comment.

Adam Mugarura Tusiime, the assistant commissioner of human resource management at the Ministry of Public Service, says the government plans to increase salaries for all teachers on its payroll, not just science teachers. He did not comment on the lack of teachers at private schools.

"We don't control what happens in private schools," Tusiime says.

There are more than 8,000 private secondary schools in Uganda, says Patrick Kaboyo, who runs a private school and is the secretary of the Federation of Non-State Education Institutions.

The schools face an uphill battle when recruiting and retaining science teachers, he says. They have nothing to offer during salary negotiations. Even science teachers who work part time in private schools set tough conditions, he adds.

"If they are to teach four times a week in school, they tell you they will come twice," he says. "If you don't want their terms, you can get another person."

Brenda Niwagaba, head teacher at Universal High School Kisaasi, a private school, says she lost two biology teachers to public schools last year. Those that stayed have become difficult to manage, and her school had to get creative to retain science teachers.

Last year, they recruited three science teachers directly from university to train and mentor them. The new method worked. The new teachers work four days a week when previous teachers would only come in one and a half days a week.

Rahman Mutibwa, an administrator at the private Ahmadiyya Muslim High School, says many science teachers must work in more than one school to cope with the cost of living. Some private schools, including his, felt they had no choice but to increase teachers' salaries despite not bringing in enough profit to break even and run effectively.

"If you don't increase for them, you lose them," he says.

He would not say how much his school increased science teacher salaries nor whether his school lost profit by doing so.

Even with more pay, there aren't enough science teachers to go around. If they taught in one school full time, other schools would miss out on their services.

"If you close them up in one school, other schools won't get teachers," Mutibwa says.

Working part time at two schools isn't ideal, especially for the students, says Kalifan Kiyaga, a physics and math teacher at Universal High School Kisaasi. Kiyaga works part time in another school, which he declined to name, to make up for the lower pay. He spends four days at Universal and three at the other.

Kiyaga says he's applied to work in government schools over the years but is happy in private schools. He feels it would be too burdensome on students' families to increase their pay. Despite being paid less, he loves his job and thinks students perform better in private schools.

"I enjoy it. It's a service. I don't do it for money, though," he says.

James Njuki, 19, a student at Universal High School Kisaasi, thinks his teachers are trying their best given the circumstances. He's adapted to not having enough time with his teachers, but it isn't easy.

They are only at school three days a week and have full schedules, he says.

"When they move from one class, they go to another. So getting time outside class to consult them is not easy," says Njuki, who aspires to study pharmacology at university.

To compensate, he tries to ask his questions during class time. When he does want to meet with teachers outside class, there is always a long line.

Njuki says he plans to stay in private school for now. However, he worries his parents will have to pay more in fees if the school hires more teachers or raises their salaries to keep up with government schools.

"My parents may find challenges having to pay. I may find myself ending the school term with a fees balance," Njuki says.

The Federation is advocating that all schools have equal access to teachers, says Kaboyo, FENEI's secretary. He and other private school proprietors are advocating for a public-private partnership.

"There should be efforts to create a pool of expert science teachers, so all public and private schools can tap from that pool," he says.

At the public school she now attends, Natukunda says she has access to a math teacher every day of the week. There is more than one, and they are at school every day. Meanwhile, her friends at her old private school still struggle.

The government needs to come up with a way to ensure both private and public schools have access to science teachers, she says. "I feel for my friends in private schools."

Apophia Agiresaasi is a Global Press Journal reporter based in Kampala, Uganda.

- Global Press Journal.

Air NZ becomes first big carrier to drop climate goal

Air New Zealand has abandoned a 2030 goal to cut its carbon emissions, blaming difficulties securing more efficient planes and sustainable jet fuel.

The move makes it the first major carrier to back away from such a climate target.

The airline added it is working on a new short-term target and it remains committed to an industry-wide goal of achieving net zero emissions by 2050.

The aviation industry is estimated to produce around 2% of global carbon dioxide emissions, which airlines have been trying to reduce with measures including replacing older aircraft and using fuel from renewable sources.

"In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," Air New Zealand Chief Executive Officer, Greg Foran, said in the statement.

In 2022, Air New Zealand adopted a 2030 target to cut its emissions by almost 29%.

It was much more ambitious than a 5% reduction goal over the same period set by the global aviation industry.

Sustainable Aviation Fuels (SAF) are a key part of the sector's strategy to cut emissions but airlines have struggled to purchase enough of it.

"The price of [SAF] is more expensive than traditional fuels, and there is not enough capacity to produce that at scale," said Ellis Taylor from aviation analytics firm Cirium.

"The delays in new aircraft deliveries are affecting airlines around the world, with both Boeing and Airbus under-delivering new jets over the last few years, largely due to snags in the wider supply chains of the manufacturers," he added.

Aerospace giant Boeing has faced a number of major issues in recent years.

This month, Boeing agreed to plead guilty to a criminal fraud conspiracy charge after the US found the company violated a deal meant to reform it after two fatal crashes by its 737 Max planes that killed 346 passengers and crew.

The firm has also come under increased scrutiny after a door panel in a Boeing plane operated by Alaska Airlines blew out soon after take-off and forced the jet to land.-BBC

McDonald's to 'rethink' prices after sales fall

McDonald's is reconsidering its pricing strategy, after customers cutting back their spending took a bite out of the fast food giant's sales.

Outlets open for at least a year saw sales fall 1% over the April-June period compared with a year earlier - the first such decline since the pandemic.

The drop came despite the hamburger chain offering money off deals to try to win back cost-conscious customers and those who have boycotted the chain over the Israel-Gaza war.

Boss Chris Kempczinski said the poor results had forced the company into a "comprehensive rethink" of pricing.

He told investors that the firm would lean on discounts to try to stop the sales decline

Executives pointed to recent promotions, such as a $5 happy meal in the US and a campaign in the UK in which diners can select three items for £3.

Those are expected to be extended in the coming months and the firm said it was working with franchisees on other "value" efforts.

Shares in the company rose more than 3% after the update, as Mr Kempczinski said McDonald's had the scale to make the strategy work.

"We know how to do this. We wrote the playbook on value and we are working with our franchisees to make the necessary adjustments," he said.

McDonald's has been facing a backlash from customers after raising prices significantly during the pandemic.

Last month, the head of its US operations formally responded to the complaints with an open letter to customers, saying social media was painting an inaccurate picture.

He said the average price of a Big Mac in the US, which is now $5.29 (£4.11), was up 21% since 2019 - roughly in line with the pace of inflation - and many items had risen by less.

But on the call with investors, Mr Kempczinski conceded the company had work to do to reclaim its reputation for value.

Price increases, made in response to inflation, had "led consumers to reconsider their buying habits", Mr Kempczinski admitted.

Though some markets have been able to adjust, in others, "a more comprehensive rethink has been required", he said.

McDonald's has increased prices on key items faster than its peers, said Bank of America analyst Sara Senatore.

"Consumers are savvy, aware of that," she said. "The $5 meal that they have launched may be starting to change perceptions, but we are not seeing a trend change yet in terms of transactions and that's what they're going to need to see."

McDonald's is the latest corporate giant to warn of slower consumer spending, including in major economies such as China.

The company said overall revenue, which includes sales at newly opened stores, was flat year-on-year. Profits slipped 12%.

McDonald's said lower income customers were particularly hurting and the loss of those buyers was not being made up by wealthier households trading down.

Demand at its restaurants fell in the US, the company said, while weakness in France and price wars in China also weighed on sales.

France is among the countries where the brand has been caught up in boycott calls sparked by Israel's war in Gaza. Other US companies, including Starbucks, have also been affected.

"Consumers are being more discerning about where, when and what they eat, and I would say we don't expect significant changes in that environment for the next few quarters," a McDonald's executive said on the call.-BBC

Winter fuel payments scrapped for millions

Around 10 million pensioners in England and Wales will lose their winter fuel payments under new plans announced by the chancellor.

>From this autumn, those not on pension credit or other means-tested benefits will no longer get the annual payments, worth between £100 and £300.

A planned cap on social care costs and several major rail and road projects have also been axed, as Rachel Reeves said she had to make "urgent decisions" because of the previous government's "undisclosed" overspending.

Shadow chancellor Jeremy Hunt said her claims were “spurious”.

Mr Hunt said the Conservatives had been open about the state of the public finances while in power, and Ms Reeves had held talks with Treasury officials before the election.

The Scottish government said it was “deeply disappointing” changes were made to the winter fuel payment by the chancellor “without any consultation or discussion” between ministers.

The responsibility for the payment is set to be transferred to the Scottish Government this winter and replaced with a Scottish equivalent - the pension age winter heating payment.

In Northern Ireland, ministers will decide whether to follow the UK government’s decision to restrict winter fuel payments.

How will the chancellor's announcement affect Scotland?

Speaking to a packed House of Commons, Ms Reeves referred to a public spending audit she had requested from Treasury officials, describing the economic legacy she had been left as "unforgivable" and announced a series of decisions designed to reduce spending.

However, she also announced that public sector pay recommendations were being accepted in full, meaning 5.5% rises for NHS workers and teachers, 6% for the armed forces, 5% for the prison service, and 4.75% for the police.

In addition, junior doctors have been offered a 22% pay rise over two years.

The pay deals will cost an additional £9.4bn, with two-thirds of this funded by central government, and all departments asked to find savings totalling £3bn to make up the rest.

The result of the pay awards and the recalculated departmental spending was a "£22bn hole in the public finances”, Ms Reeves said, which required immediate reductions in spending.

Cancelled projects

The following infrastructure projects have been scrapped:

A two-mile road tunnel close to Stonehenge

A bypass to take traffic on the A27 away from Arundel in West Sussex, which had already been put on hold by the previous government

Former Prime Minister Boris Johnson’s plan to build 40 new hospitals in England by 2030

The Restoring Your Railway Fund - a scheme designed to reopen previously closed rail lines

In addition, Ms Reeves said several other policies of the previous Conservative government would not go ahead, including:

A planned cap on care charges for older people

The planned sale of publicly owned NatWest shares

The Rwanda deportation scheme for illegal migrants

The Advanced British Standard, a qualification which former Prime Minister Rishi Sunak said would replace A-Levels and T-Levels

Rachel Reeves's spending audit at-a-glance

'Bean counters' get their revenge

Rachel Reeves: Who is the UK's new chancellor?

While Mr Hunt disputed the idea that there were hidden overspends, some economists, including the Office for Budget Responsibility (OBR) and the Institute for Fiscal Studies (IFS), appear to be backing some of Ms Reeves' claims that there were surprises lurking in departmental budgets.

But her decisions have also been called a "political choice" by economists and Conservative politicians.

For instance, Paul Johnson, director of the IFS, said that "half of [the] spending 'hole' is public pay over which government made a choice and where pressures were known".

'How dare they?'

Addressing MPs, a visibly angry Ms Reeves said the former government had committed to spending money it did not have and that it did not tell the independent economic watchdog, the OBR, about this.

"How dare they?" she said, referring to claims the books were "open".

She said the unfunded overspend from the previous government included £6.4bn on the asylum system, including the Rwanda scheme, a number that Mr Johnson from the IFS said was "huge" and that did "genuinely appear to have been unfunded".

0:50

Jeremy Hunt: Reeves 'trying to hoodwink' voters over tax and spending

The OBR said in a letter published on Monday that it was "made aware of the extent of these pressures at a meeting with the Treasury last week".

It said this could “constitute one of the largest year-ahead overspends against... forecasts outside of the pandemic years”.

As a result it is reviewing how it prepared its forecast for the March 2024 Budget and will assess "the adequacy of the information and the assurances provided to the OBR by the Treasury regarding departmental spending".

'Biggest betrayal in history'

Mr Hunt denied the previous Conservative government had covered anything up and accused Labour of misleading the public on tax rises.

"Taxes will have to go up, and she chose not to tell us," he said, forecasting that Ms Reeves' first Budget would be the "biggest betrayal in history by a new chancellor".

The chancellor said during her speech that the next Budget would be on 30 October.

She also said that public sector spending reviews looking ahead three years will take place every two years - the last one happened in 2021.

A Covid corruption probe will try to get back the £2.6bn Labour says was "lost" in dodgy contracts signed during the pandemic.

In accordance with Labour's manifesto, private schools will be taxed at 20% from 1 January next year, and oil and gas companies will face a higher windfall tax.

Liberal Democrat Treasury spokesperson Sarah Olney urged Labour to go further to make large companies "pay their fair share" of tax.

Labour has previously said it will not borrow to fund "day-to-day costs", which means it would only pay for current expenditure using the money it raises in tax. It also pledged to have debt falling by the end of the parliament.

During the election campaign, the Conservatives made similar commitments on taxation and spending.

Economists said at the time both parties would either need to cut spending or raise taxes under their self-imposed fiscal rules.-BBC

Meloni meets Xi as Italy vows to 'relaunch' ties with China

Italy's Prime Minister Giorgia Meloni has said China is an "important interlocutor" in managing global tensions, as she met President Xi Jinping in Beijing.

President Xi in turn hailed the "long-established friendly" ties, as well as "tolerance, mutual trust and mutual respect" between Beijing and Rome.

During her first trip to China since taking office, Ms Meloni and Chinese Premier Li Qiang met on Sunday and signed a three-year plan to strengthen economic co-operation.

The five-day visit comes after Ms Meloni last year removed her country from President Xi's signature Belt and Road Initiative (BRI).

At the time, Rome said the massive Chinese investment scheme aimed at promoting bilateral trade had gained less than expected.

Ms Meloni said her visit to China was an effort to "relaunch" the relationship.

After talks with President Xi at Beijing's Diaoyutai State Guesthouse, Ms Meloni said: "There is growing insecurity at an international level and I think that China is inevitably a very important interlocutor to address all these dynamics".

She said the two nations must "think together" to remain stable and guarantee peace.

In a statement, Italy's prime minister's office said the two leaders' discussions included the war in Ukraine, the risks of a further escalation of the situation in the Middle East and the growing tensions in the Indo-Pacific.

It added that Prime Minister Meloni and President Xi addressed some of the most important global governance issues, "from artificial intelligence to the fight against climate change and the UN Security Council reform".

Mr Xi urged Rome and Beijing to "uphold the spirit of the Silk Road", so that East-West relations could "rebound into a new era".

"Both sides face important opportunities for mutual development", he said, adding, "Beijing welcomes Italian companies that invest in China and is willing to import more high-quality Italian products".

Italy was the only major Western nation to sign up to the BRI, one of China's most ambitious trade and infrastructure projects, sometimes referred to as the "New Silk Road".

The move was heavily criticised at the time by the US and some other major Western countries.

Since coming to power in 2022, Ms Meloni has sought to lead a more pro-Western and pro-Nato foreign policy than her predecessors.

Before withdrawing from the BRI, Ms Meloni had described the former government's decision to join it as "a serious mistake".

"Every country which is a [BRI] member knows that China is first and they are second and I don't think Italy as a G7 member wanted to be grouped together with Russia, Pakistan or Sri Lanka," said Alicia Garcia-Herrero, chief economist for the Asia Pacific region at investment bank Natixis.

"Without BRI [membership] Meloni is coming to China at a different level of engagement - less as a vassal and more as a partner," she added.

Under Ms Meloni, Italy has moved to block a Chinese state-owned company from taking control of tyre making giant Pirelli.

Rome has also supported a recent move by the European Commission to impose tariffs of as much as 37.6% on electric vehicles imported from China.

Two-way trade between two countries reached 66.8 billion euros (£56.3bn) last year, making China Italy's largest non-EU trading partner after the US.-BBC

 Invest Wisely!

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