Major International Business Headlines Brief::: 31 July 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  31 July 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Tanzania: Mombasa Port Sees 18% Rise in Transit Cargo Amid Dar es Salaam
Inefficiencies

ü  Uganda: Kampala Traders Announce Business Shutdown Until President
Museveni Addresses Concerns

ü  Ethiopian Airlines Defends Transporting Live Monkeys to US As 'Complying
With Aviation Rules'

ü  Uganda: Traders Welcome the Anti-Counterfeit Bill

ü  South Africa: Trade Minister Tau Confident U.S. Will Renew SA's Agoa
Membership

ü  South Africa: Gold Demand Hits Q2 Record As Price Maintains Glittering
Surge to New Peaks

ü  South Africa: Predictions That the South African Economy Will Start
Growing Again Are Proving Correct

ü  Ethiopia: World Bank Provides $1 Billion Grant, $500 Million Concessional
Credit for Ethiopia

ü  Mozambique: Residents Block Main Road in Demand for Electricity

ü  Kenya: Plans to Extend Oil Pipeline From Eldoret to Kampala Ongoing

ü  Malawi: Chakwera's ATM Strategy - Govt to Rake K238bn in Two Mining Deals
Signed

ü  Kenya: Govt Has Not Inked Any Deal Yet With Adani Regarding JKIA Upgrade
- Mudavadi

ü  Japan hikes interest rates for second time since 2007

ü  TikTok HQ staff hit by mass food poisoning incident

ü  Microsoft says cyber-attack triggered latest outage

ü  City of cafes: Shanghai’s love affair with coffee

ü  Amazon responsible for product recalls, says US

 


 <mailto:info at bulls.co.zw> 

 


 

Tanzania: Mombasa Port Sees 18% Rise in Transit Cargo Amid Dar es Salaam
Inefficiencies

Kenya's Port of Mombasa has seen a significant increase in transit cargo in
the first half of the year, as hinterland countries shifted their freight
operations from the Dar es Salaam harbour due to inefficiencies there.

 

Transshipment through Mombasa rose by 18 percent, with notable growth from
Burundi, Rwanda, and the Democratic Republic of Congo and South Sudan.

 

Burundi experienced the most substantial increase, with the port handling
1,502 Twenty-Foot Equivalent Units (TEUs) in the first six months of 2024,
up from 357 TEUs during the same period in 2023, a 320 percent rise.

 

 

Rwanda also saw an 82 percent increase in TEUs, from 7,182 to 13,059, while
Tanzania's volumes grew by 62 percent, from 5,131 TEUs to 8,325 TEUs.

 

The efficiency of the Port of Mombasa, where cargo clearance can take as
little as four days, compared to up to 25 days at Dar es Salaam, has
attracted shippers.

 

This efficiency helps avoid significant demurrage costs associated with
delays. The Central Corridor, which begins at the Port of Dar es Salaam and
serves Tanzania, Zambia, Rwanda, Burundi, Uganda, and Eastern DRC, remains
the shortest route for these countries.

 

However, the Dar es Salaam Port, Kenya's main regional competitor, is
grappling with severe congestion, leading to prolonged vessel clearance
times.

 

This congestion has an impact on shipping costs and causes market shortages,
prompting Great Lakes countries to divert more traffic to Mombasa.

 

Key metrics at the Port of Mombasa have improved, with the turnaround time
for container vessels decreasing from an average of three days in 2022 to
two days in 2023.

 

The average container dwell time also dropped to 3.5 days from 3.9 days last
year, a 10 percent improvement.

 

Additionally, ship waiting time for containerised vessels decreased to 0.2
days, while the gross vessel turnaround time fell significantly from 90.5
hours in 2022 to 64.1 hours in 2023.

 

Business Day Africa.

 

 

 

 

Uganda: Kampala Traders Announce Business Shutdown Until President Museveni
Addresses Concerns

In a bold move, Kampala traders have declared their intention to shut down
their businesses starting Wednesday, citing frustration with President
Yoweri Museveni's repeated cancellations of planned meetings.

 

The traders, organized under the Kampala City Traders Association (KACITA),
are demanding a direct and respectful dialogue with the President to address
their pressing concerns.

 

Isa Ssekitto, the spokesperson for KACITA, expressed the traders' discontent
following President Museveni's latest cancellation of a scheduled meeting on
July 31. The traders are protesting against the implementation of the
Electronic Fiscal Receipting and Invoicing System (EFRIS) and the burden of
high taxes, which they claim are stifling their businesses.

 

 

"Our businesses are our livelihoods, and we are struggling under the weight
of these high taxes and the EFRIS system. We need the President to see sense
in meeting with us or at least communicate in a dignified way," Ssekitto
stated.

 

Adding to the traders' grievances is dissatisfaction with Kampala Minister
Minsa Kabanda, whom they accuse of not adequately addressing their issues.
The traders feel neglected and disrespected by the authorities, leading to
their drastic decision to shut down operations.

 

The planned shutdown is expected to have significant economic repercussions,
as Kampala's trading sector is a vital component of the city's economy.
KACITA is hopeful that the action will compel President Museveni to
prioritize their concerns and engage in meaningful discussions.

 

The traders' protest highlights the broader challenges faced by business
owners in Uganda, including regulatory pressures and the need for supportive
government policies. As the shutdown looms, all eyes are on President
Museveni and his administration's response to the traders' demands.

 

The situation remains tense, with traders determined to keep their
businesses closed until they receive a satisfactory response from the
President. The coming days will be critical in determining the future of
Kampala's trading community and their relationship with the government.

 

Nile Post.

 

 

 

 

Ethiopian Airlines Defends Transporting Live Monkeys to US As 'Complying
With Aviation Rules'

Addis Abeba — Ethiopian Airlines has defended its transportation of live
primates to the US for laboratory use as complying with "international
aviation" rules, following criticism from the animal rights group PETA.

 

In a press briefing held yesterday, Ethiopian Airlines CEO Mesfin Tasew
responded to allegations that the airline flew 250 long-tailed macaques to a
US importer that supplies monkeys for laboratory experiments.

 

The CEO stated, "this is complying with international aviation rules; we
transport such animals under legal permits from both the US and other
countries, and we comply with international laws."

 

 

PETA has launched a campaign against Africa's largest airline over the
purported transport of the endangered monkeys across the Atlantic. In a
statement, the group accused Ethiopian Airlines of "facilitating their use
in experimental procedures."

 

Earlier this month, two American and a UK citizen were arrested in Addis
Abeba as they were preparing to stage a demonstration outside the airline's
headquarters demanding the Airlines to stop shipping endangered monkeys. The
trio were deported after imprisoned for over 24 hours.

 

The CEO further refuted the recent allegations by Eritrean authorities used
to justify suspending the airline's flights, labeling them "baseless" and an
attempt to "smear" its reputation.

 

The row emerged after the flag carrier received a letter dated July 21st
from Eritrea's Civil Aviation Authority stating the flight ban. However,
Ethiopian Airlines claims the specific reasons were not properly
communicated and said that it is "currently seeking clarification".

 

A letter circulated online, allegedly from Eritrean aviation officials,
accused Ethiopian Airlines of engaging in "consistent and persistent
malicious trading practices," citing a litany of claims including systemic
issues with luggage handling, pricing irregularities, prolonged delays, and
failure to properly compensate passengers.

 

Addressing these allegations during the press briefing, Ethiopian Airlines
Group CEO Mesfin Tasew denied any such misconduct, emphasizing Ethiopian
Airlines' commitment to professionalism and diligently serving the region
"with the highest standards."

 

Tasew stated that although the airline received a letter from the Eritrean
Civil Aviation Authority, the letter failed to specify reasons for the
decision. He stressed that the airline operates according to international
laws and strives to ensure the proper treatment and accommodation of
passengers.

 

The CEO mentioned that in March, Eritrea's Civil Aviation Authority had sent
a letter to Ethiopian Airlines concerning luggage mishandling and requesting
compensation for affected passengers.

 

He reported that Ethiopian Airlines took immediate corrective action,
reducing the number of passengers per flight to ensure that passengers
traveled with their luggage, effectively resolving the issue.

 

Tasew said, "Treating this as a criminal offense is not appropriate," adding
that Ethiopian Airlines is ready to address mistakes and is working towards
maintaining healthy relations, trade, and tourism between Eritrea and
Ethiopia. He said efforts are being made to engage with Eritrean authorities
to prevent flight suspensions.

 

Separately, the CEO dismissed as "false and unaccepted" an accusation
reported by CNN's Africa correspondent that Ethiopian Airlines had forcibly
removed a passenger with Somali citizenship from her seat and handed it over
to an Ethiopian official, sharing the alleged incident via video footage.

 

Tasew provided clarification, stating that there were three passengers
involved in the situation, none of whom were officials. He explained that
the passengers were VIPs from a neighboring country traveling in business
class, while the individual in question had an economy class ticket and had
entered the plane without proper permission.

 

"We had no reason whatsoever to reassign the passenger's seat to someone
else," the CEO asserted, adding that despite efforts by the airline to
provide accurate information to the journalist, they were unsuccessful in
doing so.

 

The Airlines reported earning revenue of 7 billion USD during the 2023/24
financial year, transporting 17.1 million passengers.

 

Addis Standard.

 

 

 

 

Uganda: Traders Welcome the Anti-Counterfeit Bill

Traders in Kampala have welcomed the proposed Anti-Counterfeit Goods and
Services Bill 2023 as it will save them from unfair competition from
substandard and counterfeit alternatives.

 

In July 2023, Asuman Basalirwa, the member of parliament for Bugiri
municipality, secured leave from parliament to allow him to introduce

 

"The Anti-Counterfeit Goods and Services Bill, 2023" for which he has
already made a draft.

 

The objective of the bill is to prohibit the sale, manufacture, production,
packaging, re-packaging, labelling, marketing, blending, processing,
treatment, importation and exportation of counterfeit goods and counterfeit
services that infringe upon protected intellectual property rights and
prescribed standards; to prohibit release of counterfeit goods and
counterfeit services into the channels of commerce; and to create offences
for dealing in counterfeit goods and counterfeit services.

 

 

During the final consultative meeting to seek the public's views about the
bill at Kampala Sheraton hotel, manufacturers, traders and business people
appreciated the bill, stressing that it has been long overdue because
counterfeits are eating into the market share of legitimate businesses and
providing unfair competition since they are sold at a cheaper price.

 

Agnes Ssali, the legal director and company secretary of Uganda Breweries
Limited, said counterfeits remain a significant challenge for private
business and especially those in the fast-moving consumer goods space.

 

She noted that counterfeit products have created an unfair playing field for
legitimate alcohol players since those involved do not pay taxes and do not
adhere to any prescribed legal standards and they have seen reports of
death, blindness and other adverse effects from the consumption of
counterfeit and substandard alcohol products.

 

Ssali, however, noted that even though they welcome the proposed law that is
intended to curb this vice and they are committed to supporting
anti-counterfeit efforts, the law needs to have punitive deterrent measures
and consistence in terms of enforcement and prosecution which have been a
challenge in the existing pieces of legislation which try to tackle this
vice.

 

"We, therefore, welcome the move to have in place a law that expressly
prohibits the sale, manufacture and importation of counterfeit goods and
services and that seeks to impose punitive sanctions against those that are
found culpable for its infringement. This will enhance the protection of the
general public against substandard and defective goods and services and
owners of licenses of intellectual property rights will be protected against
brand infringement," she said.

 

 

Thaddeus Musoke, the chairman of KACITA, said the bill if passed into law,
is going to help traders and producers protect their brands from
illegitimate traders who duplicate their products thereby messing with their
businesses.

 

He, however, expressed fears of enforcement agencies like the Uganda
National Bureau of Standards (UNBS) being underfunded which has at times
created corruption tendencies that in order to access standards and
effective services, you have to do business under the table.

 

"The companies UNBS contracted to do the Pre Export Verification of
Conformity exercise don't test these commodities; they just take pictures
and certify them after meeting some costs. Let us strengthen the capacity of
the standards body because if our agencies are still underfunded, we shall
not achieve our goal of fighting counterfeits," Musoke said.

 

Basalirwa, the mover of the bill in parliament, told stakeholders in the
meeting that he identified the need to have a comprehensive piece of
legislation to address the subject of counterfeits in
thecountrybecauseeventhoughthereare laws such as the intellectual property
law, Copyright and Neighbouring Rights Act, Trademark Act and the Penal Code
Act, there was still no single uniform law that is unique to counterfeits
and standards of goods and services.

 

Basalirwa stressed that the bill suggests more punitive measures with very
heavy and deterrent punishments of ten years and above imprisonment and
fines that are five times the value of that good or service that is being
imitated. Aiding and abetting counterfeit goods and services will also be an
offence under this law.

 

"We have structured the law in such a way that it makes counterfeiting and
producing substandard products a very risky and dangerous business."

 

However, from the consultation meetings held in different parts of the
country including Mukono, Bugiri, Mbale, Soroti, Kasese, Mbarara, Gulu, Arua
and Kampala, the people said the punishment put in the bill of ten years is
just a joke and they proposed at least 20 years and some even life
imprisonment.

 

The public also expressed their worries about the possible weak
implementation of the law, citing so many examples like where UNBS finds
substandard products, somebody pays money and they are released or some one
is taken to court, they pay a small fine and they are let go.

 

But Basalirwa said the bill is hybrid with an objective of establishing a
cost efficient intergovernment agency collaboration against counterfeiting
of goods and services. "On implementation, we are seeking a multi-agency
cooperation. We want this law to give mandate to existing agencies like
UNBS, UCC, NEMA, URA, and URSB to do the implementation," he said.

 

According to the Anti-Counterfeit Network, Uganda loses up to Shs 6 trillion
to counterfeits and substandard products every year, a figure economists say
could be more and increasing every year and, according to Economic Policy
Research Centre, close to 40 per cent of Ugandan businesses felt that they
suffered due to unfair competition from counterfeit and cheaper substandard
products.

 

Observer.

 

 

 

 

South Africa: Trade Minister Tau Confident U.S. Will Renew SA's Agoa
Membership

South Africa pressed the US to reauthorise Agoa before its November
elections. It's also lobbying hard against US legislation calling for a
comprehensive review of US-SA relations.

 

Trade, Industry and Competition Minister Parks Tau is confident that the US
will allow South Africa to continue participating in the African Growth and
Opportunity Act (Agoa) and that the US will reauthorise this preferential
trade measure as a whole before it expires next year.

 

Tau was addressing a press conference in Cape Town after his return from the
2024 Agoa Forum in Washington. When he was in the US capital he urged
members of the Biden administration and of Congress not to remove South
Africa from the programme, which gives eligible sub-Saharan African
countries duty-free access to the US market for most exports.

 

Some members of Congress had threatened to kick SA out of Agoa because of
its perceived friendships with the US's enemies, Russia, China and Iran.

 

"We received bipartisan support for the reauthorisation of Agoa... We're
confident that Agoa would continue and that South Africa would stay in
Agoa," said Tau.

 

He said his delegation, which included Deputy Minister Andrew Whitfield, had
met a wide range of officials as well as members of Congress from both
parties and business leaders.

 

Legislation which had originally suggested South Africa's possible exclusion
had been withdrawn "and there's no Agoa resolution...

 

Daily Maverick.

 

 

 

 

South Africa: Gold Demand Hits Q2 Record As Price Maintains Glittering Surge
to New Peaks

Global demand for gold scaled new highs for the second quarter (Q2) of a
calendar year in 2024, underpinning the precious metal's run to record-high
prices.

 

The gold price remains on an absolute tear, scaling new highs this year as
central banks diversify their reserve holdings and investors seek safe
havens amid rising geopolitical tensions and uncertainty.

 

According to data compiled by the World Gold Council, the precious metal hit
a record high of $2,480.25 an ounce on 17 July, and it remains within
spitting distance of that peak.

 

The council's latest quarterly Gold Demand Trends report shows global gold
demand rose 4% year-on-year in Q2 2024 to 1,258 tonnes, a Q2 record in its
data series since 2000. The gold price averaged $2,338 an ounce during the
quarter, which ended 30 June, 18% higher year-on-year.

 

Key drivers

 

The key drivers were central bank demand, which declined from Q1 but rose 6%
year-on-year to 183 tonnes.

 

Central banks, notably those in emerging markets, have been on a gold-buying
binge in a diversification drive away from dependence on the US dollar as a
reserve currency.

 

"Our annual central bank survey confirmed that reserve managers believe gold
allocations will continue to rise over the next 12 months, driven by the
need for portfolio protection and diversification in a complex economic and
geopolitical environment," the World Gold Council...

 

Daily Maverick.

 

 

 

South Africa: Predictions That the South African Economy Will Start Growing
Again Are Proving Correct

Has the tide finally turned on the South African economy? While early days,
it seems that the new business-friendly coalition government has wrested
back control of economic policy from the suffocating clutches of Luthuli
House. Investors are cautiously optimistic.

 

Listen to this article 6 min Listen to this article 6 min The market
indications are clear. First, South African government debt has been a
winning investment since the change of government. South African bonds have
already returned a world beating 9.3% in dollar terms this year, more than
any other local-currency sovereign debt. According to Bloomberg data, the
average return for other similarly rated emerging markets have been a
miserly 0.1%.

 

The yield on the benchmark 2035 South African government bond has dropped
about 140 basis points since the election in May, to abouyt 11% (bond prices
move inversely to yields). After a hiatus of several years when South
African bonds were ignored by foreign buyers, offshore investors finally
seem to be moving back into the market. They have been net buyers of the
nation's debt to the tune of R23.4 billion ($1.3 billion) this year -- on
track for the largest annual inflow since 2019, according to the JSE.

 

Foreign exchange markets have also cheered the change in government. While
less pronounced than the shift of investor sentiment in the bond market, the
ZAR is almost 5% stronger against the USD since its pre-election weakest
point in April...

 

Daily Maverick.

 

 

 

 

Ethiopia: World Bank Provides $1 Billion Grant, $500 Million Concessional
Credit for Ethiopia

Addis Abeba — The World Bank's Board of Executive Directors approved today
the Ethiopia First Sustainable and Inclusive Growth Development Policy
Operation. This policy operation supports home-grown reforms that will
ultimately help the country transition to a more inclusive economy that
allows the private sector to contribute more strongly to growth. While
strengthening the financial sector, expanding trade options, and improving
fiscal transparency, this engagement will also boost protections for poor
and vulnerable households during periods of economic change. It consists of
a $1 billion grant and $500 million concessional credit from the
International Development Association (IDA).

 

 

Reforms supported by the operation help increase the private sector
orientation of Ethiopia's economy by addressing the root causes of
macroeconomic imbalances and expanding trading opportunities. The operation
also supports a more sustainable and inclusive growth model through reforms
to improve financial stability and financial sector competition, increase
fiscal transparency, improve public spending effectiveness and the
performance of state-owned enterprises, as well as expand social safety
nets.

 

"Successful implementation of these reforms can help the country reach its
full potential so more Ethiopians can thrive. Importantly, there is a strong
emphasis on protecting poor and vulnerable people from the costs of economic
adjustment and expanding opportunities for them to participate in the
economy," said Maryam Salim, World Bank Country Director for Eritrea,
Ethiopia, South Sudan, and Sudan.

 

The operation also helps promote sustainable land and forest management and
expand access to renewable energy. This will support Ethiopia in achieving
its climate change goals and building more resilience to climate risks. The
operation is complemented by the World Bank's broader portfolio in Ethiopia
which includes investments in health, education, social protection, energy,
finance, digital, agriculture, transport and trade logistics, water and
sanitation, and urban development.

 

The World Bank Group is one of Ethiopia's largest providers of development
finance. Ethiopia currently receives over $2 billion in concessional
financing each year from IDA with roughly half of this as grants. IDA
commitments now stand at $15.5 billion, with almost $7 billion available to
disburse. The International Finance Corporation's (IFC) investment portfolio
is $320 million. The Multilateral Investment Guarantee Agency (MIGA) is
actively engaged with $1.15 billion in guarantees.

 

Looking ahead, the World Bank is committed to supporting Ethiopia's
aspiration of becoming a middle-income country. IDA expects to provide
around $6 billion in new commitments over the next three fiscal years and
support economic reforms through fast-disbursing budget support. IFC is
planning about $2.1 billion in investments and MIGA expects to grow its
engagement, including under the World Bank Group Guarantee Platform. Subject
to the Board's approval of new operations and availability of IDA resources,
this implies a total financial package of over $16.6 billion in undisbursed
and future commitments available over the next three years.

 

The World Bank Group extends its deepest sympathies to the people of
Ethiopia following the devastating landslide in the Gofa Zone, which
resulted in the tragic loss of life, the displacement of many people and
destruction of infrastructure. We stand ready to assist Ethiopia respond to
and recover from this tragedy. WB

 

Addis Standard.

 

 

 

 

 

Mozambique: Residents Block Main Road in Demand for Electricity

Maputo — A group of residents from Pateque neighbourhood, in Manhiça
district, about 60 kilometres north of Maputo city, on Monday blocked a
section of the country's main north-south highway (EN1) pursuing a demand
for electricity, after the publicly-owned electricity company, EDM,
allegedly broke promises to electrify the region.

 

According to the Pateque residents, after several meetings with EDM
representatives it was agreed that the electrification of the area would
take place last June, but so far nothing has been done.

 

The failure of EDM to honour its promise led residents to block EN1 in the
early hours of Monday in an attempt to rouse the attention of the
authorities. They burnt tyres on the road and threw up barricades to prevent
cars from passing

 

 

According to one local source, "in this neighbourhood, we have no
electricity, no water and almost everything is missing. Several times we've
been forced by supposed men from EDM to open up streets and give up part of
our back yards to allow electricity pylons to be erected, but still nothing
has been done.'

 

Another source said that EDM has been pledging to make electricity
connections for years but it has been lying to people because nothing is
ever done.

 

"We are fed up. There are many rapes and crimes in this neighbourhood
because of the lack of electricity. We've heard several promises and so far
nothing is happening. The blockade of the road was due to the fact that the
residents were fed up with so many promises from EDM', the source said.

 

For his part, the EDM Director in Marracuene district, Eduardo Pinto, said
that the Pateque neighbourhood is part of the "Energy for All' project and
will soon be covered.

 

"The Pateque electrification project did not go ahead in June. Although no
new date has been given, it has been guaranteed that work will start soon,
since some of the necessary material is already in Maputo and the contractor
has already been selected', he said.

 

Although the Police were called to restore order and remove the barricades
from the road, there were no reports of any fatalities during the protests.

 

 

 

 

Kenya: Plans to Extend Oil Pipeline From Eldoret to Kampala Ongoing

Nairobi — Kenya and Uganda have held discussions on the possible extension
of the petroleum products pipeline from Eldoret to Kampala, Uganda.

 

This follows a meeting that was held last week between Uganda's Minister of
Energy and Mineral Development Ruth Ssentamu and Kenya's Ministry of Energy
officials led by State Department for Petroleum PS Mohammed Liban.

 

"Extension of the pipeline to Uganda is a strategic move for Kenya as the
country seeks to regain its competitive advantage in the petroleum export
market, particularly in light of Uganda's new importation strategy," KPC
Managing Director Joe Sang said.

 

 

"KPC is open and willing to collaborate with the Ugandan government to lay
the Eldoret - Malaba pipeline," he added.

 

The project will entail construction of a multi-product oil pipeline from
Eldoret to Malaba (Kenya-Uganda border) on Kenya's part.

 

However, Uganda will be responsible for building a connecting line to
Kampala, while future expansions to Kigali and Rwanda are also being
considered.

 

Ssentamu noted that the visit entailed planning and preparation for the
kick-off of the project as well as understanding Kenya Pipeline's
operations, infrastructure, and human capacity.

 

This initiative follows Uganda's recent transition to independent fuel
imports, which began in early July, thereby ending its previous dependence
on Kenya for the supply of refined petroleum products.

 

Under a new agreement between the Uganda National Oil Corporation (UNOC) and
Vitol Bahrain, Uganda aims to secure more competitive fuel prices while
still relying on Kenya's Port of Mombasa and the Kenya Pipeline Company's
(KPC) infrastructure for the transportation of these products to the Western
Kenya depots of Eldoret and Kisumu.

 

The concept for this pipeline was first mooted in 1995 through a Memorandum
of Understanding between Uganda and Kenya and was revisited in May 2024
following a feasibility study funded by the European Investment Bank, which
confirmed the project's viability.

 

Capital FM.

 

 

 

 

 

Malawi: Chakwera's ATM Strategy - Govt to Rake K238bn in Two Mining Deals
Signed

Malawi is set to make about K238 billion from the decision of giving a
go-ahead to Lotus Resources and Lancaster Exploration Limited (BVI) to start
mining works at Kayerekera in Karonga and Songwe Hill in Phalombe. The move,
which is part of President Lazarus Chakwera's-agriculture, tourism and
mining (ATM) strategy-was revealed during an agreement signing ceremony
between government officials and Lotus as well as Lancaster Exploration
Limited, at the Office of the President and Cabinet in Lilongwe on Friday.

 

Minister of Mining Monica Chang'anamuno said finalisation of the agreement
with the companies would bring tremendous revenues to the Treasury aside
from the hundreds of jobs to be created at the mines.

 

 

She said the two deals are in line with President Lazarus Chakwera's
agriculture tourism and mining (ATM) strategy which highlights mining as a
key component in rebuilding the country's economy.

 

The minister said: "In this agreement with Lotus, we are expected to get
$1.6 million [K2.7 billion] per month in dividends and $20 million [about
K34 billion] in royalties per year from Kayerekera with uranium prices
pegged at $65 [K110 500] per pound.

 

"While with Lancaster Exploration Limited doing the mining at Songwe Hill in
Phalombe, we are expected to get $120 million [K204 billion] per year for
both royalties, dividends and taxes," Chang'anamuno said.

 

She also said Lotus will employ 450 direct workers and 200 indirect workers,
while Lancaster would employ 1 200 direct workers and 500 indirect workers
per annum in the 18-year mine duration.

 

Minister of Finance and Economic Affairs Simplex Chithyola Banda said he
expected the two deals to boost the foreign exchange vault.

 

"However, let me request the companies to consider processing the minerals
do and value addition in the country because that will help the country
generate more resources than exporting raw minerals," he said.

 

On his part, Lotus Resources managing director Keith Bowes said they would
go into full production in 24 months.

 

While Lancaster Exploration Limited and Mkango Resources director Alexandar
Lemon said they will speed up the first phase of construction of the mining
operation at Songwe Hill in Phalombe.

 

Nyasa Times.

 

 

 

 

Kenya: Govt Has Not Inked Any Deal Yet With Adani Regarding JKIA Upgrade -
Mudavadi

Nairobi — Prime Cabinet Secretary Musalia Mudavadi has assured that the
government has not signed any deal with Adani Airports Holdings Limited over
Jomo Kenyatta International Airport (JKIA) infrastructure upgrade.

 

Mudavadi re-affirmed that due process will be followed in accordance with
the law regarding the proposed expansion and modernization of the Nation's
major Asset to ensure that the country benefits.

 

This is after the Kenya Airport Authority (KAA) received a Privately
Initiated Proposal (PIP) from Adani Airport Holdings of India in March 2024
to invest in national infrastructure priority projects.

 

"In response to concerns raised, modernization of the Jomo Kenyatta
International Airport will be conducted in strict adherence to our
constitution and specifically in accordance with the legal framework
established under the PPP Agreement," he said.

 

 

The Prime CS said no terms have been agreed upon by government regarding the
proposal that is currently undergoing the requisite due process, reviews and
negotiations in compliance with the Public-Private Partnerships Act

 

"For the avoidance of any doubt, all terms and conditions of the proposed
arrangement are subject to negotiation in accordance with the provisions of
the PPP Act and no terms have been agreed upon as yet," he stated.

 

Mudavadi promised that the government will prioritize Kenya's national
interest should the proposal sail through to ensure that the private party
is held fully accountable for the performance of its obligations under the
Agreement.

 

He stated that if Adani Holding company investors will be found unsuitable
to upgrade the Airport government will seek other alternative proposals to
bridge the infrastructure gap at JKIA.

 

"As part of the review process, a detailed due diligence investigation of
the project proponent will be conducted, in accordance with the provisions
of the PPP Act. If the results of the due diligence are not satisfactory or
the proposal is not approved, the Government will have recourse to other
options including consideration of airport alternative proposals," added
Mudavadi.

 

Capital FM.

 

 

 

 

Japan hikes interest rates for second time since 2007

Japan's central bank has raised the cost of borrowing for only the second in
17 years as it tries to normalise monetary policy in the world's fourth
largest economy.

The Bank of Japan (BoJ) increased its key interest rate to “around 0.25%”
from the previous range of 0% to 0.1%.

It also outlined a plan to unwind its massive bond buying programme as it
eases back from a decade of stimulus measures.

The move comes hours before the US Federal Reserve is set to announce its
latest interest rate decision, while an announcement is also expected from
the Bank of England on Thursday.

 

"The rate hike was widely expected after domestic media reported the
decision ahead of time on Tuesday night," said Stefan Angrick, a senior
economist at Moody's Analytics.

"But the move sits uncomfortably with a poor run of economic data and lack
of demand-driven inflation."

Official figures showed Japan's economy shrank by an annualised 2.9% in
January to March, while consumer prices rose by a less-than-expected 2.6% in
June from a year earlier.

"Despite sluggish consumer spending, monetary officials sent a decisive
signal by raising interest rates and allowing for more gradual balance sheet
reduction," said Frederic Neumann, Chief Asia Economist at HSBC.

"Barring major disruptions, the BoJ is on course to tighten further, with
another interest hike by the start of next year," he added.

In March, the BoJ raised borrowing costs for the first time since 2007.

It meant that there were no longer any countries in the world left with
negative interest rates.

In 2016, the BoJ cut its main interest rate below zero in an attempt to
stimulate the country's stagnating economy.

When negative rates are in force people have to pay to deposit money in a
bank. They have been used by several countries as a way of encouraging
people to spend their money rather than putting it in a bank.

During the pandemic, central banks around the world slashed interest rates
as they attempted to counteract the negative impact of border closures and
lockdowns.

At the time some countries, including Switzerland and Denmark, as well as
the European Central Bank, introduced negative interest rates.

Since then central banks around the world, like the US Federal Reserve and
the Bank of England, have raised interest rates to curb soaring prices.-bBC

 

 

 

 

TikTok HQ staff hit by mass food poisoning incident

Singapore health and food safety officials have said they are investigating
an incident that left 60 people with gastroenteritis symptoms

Dozens of staff at the Singapore office of TikTok's parent company,
ByteDance, have been hospitalised in an apparent food poisoning outbreak.

Health and food safety officials in the city state are investigating the
incident, which left 60 people with symptoms of gastroenteritis on Tuesday.
Fifty seven of them were treated in hospital.

ByteDance has also said it is looking into what caused its employees to fall
ill.

The BBC understands that no food is prepared or cooked at the ByteDance
offices and that it uses third party caterers to supply food.

Seventeen ambulances were sent to the building in Singapore's business
district to treat those who had fallen ill, according to local media
reports.

"We take the health and safety of our employees very seriously and have
taken immediate steps to support all affected employees, including working
with emergency services to provide care," a ByteDance spokesperson told the
BBC.

"We are investigating the matter and are working with the relevant
authorities on this."

"Food operators must play their part by adhering to good food safety
practices" said the Singapore Food Agency (SFA) in a joint statement with
the city-state's Ministry of Health.

"SFA will not hesitate to take enforcement action against errant food
operators," the statement added.

Founded in 2012 by Chinese entrepreneurs, ByteDance had its first major
success with short video app Douyin in China. A year later, it launched
TikTok, an international version of Douyin.

TikTok, which is not available in China, has more than a billion active
users around the world.

It is now run by a limited liability company based in Singapore and Los
Angeles but is essentially owned by ByteDance.-BBC

 

 

 

 

Microsoft says cyber-attack triggered latest outage

A global outage affecting Microsoft products including email service Outlook
and video game Minecraft has been resolved, the technology giant said in an
update.

The firm said preliminary investigations show the outage was caused by a
cyber-attack and a failure to properly defend against it.

 

Earlier, the company issued an apology for the incident, which lasted almost
10 hours and caused thousands of users to report issues with Microsoft
services.

It comes less than two weeks after a major global outage left around 8.5
million computers using Microsoft systems inaccessible, impacting healthcare
and travel, after a flawed software update by cybersecurity firm
CrowdStrike.

 

"While the initial trigger event was a Distributed Denial-of-Service (DDoS)
attack... initial investigations suggest that an error in the implementation
of our defences amplified the impact of the attack rather than mitigating
it," said an update on the website of the Microsoft Azure cloud computing
platform.

DDoS attacks work by flooding a website or online service with internet
traffic in an attempt to throw it offline, or otherwise make it
inaccessible.

"It seems slightly surreal that we’re experiencing another serious outage of
online services from Microsoft," said computer security expert Professor
Alan Woodward.

“You’d expect Microsoft’s network infrastructure to be bomb-proof."

Earlier, An alert on the technology giant's service status website said the
outage affected Microsoft Azure - the cloud computing platform behind many
of its services - and Microsoft 365, which includes systems like Microsoft
Office and Outlook.

It also listed its cloud systems Intune and Entra as among those impacted.

Microsoft said it had implemented a fix for the problem which "shows
improvement", and it would monitor the situation "to ensure full recovery".

"We sincerely apologise for the inconvenience," it said in a post on X,
formerly Twitter.

Who has been affected?

The outage appears to have impacted other services which rely on Microsoft's
platforms, with Cambridge Water among those affected.

"Due to worldwide issues with Microsoft Azure, a problem with our website is
affecting several services including MyAccount and PayNow," it said in a
post on X.

The HM Courts and Tribunals Service - which is responsible for the
administration of criminal, civil and family courts and tribunals in England
and Wales - said it was aware of issues with "multiple online services".

Some customers of NatWest also reported issues.

A spokesperson for the bank told the BBC: “We are aware that some customers
experienced difficulties accessing our webpages today. This was linked to
the issues reported by Microsoft Azure which has affected some Microsoft
services globally.

“The issue has now been resolved and our webpages are functioning as normal.
We apologise to customers for any inconvenience caused.”

Meanwhile, top flight Dutch football team FC Twente tweeted an update to
their fans to say its ticketing website and club app were unavailable to
supporters as a result of the outage.

The issues with one of Microsoft's premier products appeared hours before
the tech giant was due to provide its latest financial update.

Microsoft Azure has been a key profit driver for Microsoft in recent years.

But demand has slowed in recent months, rattling investors.

Shares in the firm dropped by 2.7% in after-hours trade on Tuesday after the
company reported weaker growth than expected in the April-June period.

Revenue in the "intelligent cloud" unit rose 21% year-on-year in the
quarter, Microsoft said.

Overall revenue increased 15% to $64.7bn (£50.4bn), while profit rose 11% to
$22bn.-BBC

 

 

 

 

City of cafes: Shanghai’s love affair with coffee

Walk through the streets of Shanghai and its café culture is unmissable.
There are some areas where you won’t be able to turn without passing yet
another new little café.

China’s financial capital now has so many coffee shops that the government
claims it has the most of any city in the world.

The city’s café culture has been developing for years, but the post-Covid
opening up has really given it a boost, as locals embrace outdoor living,
looking for places to meet their friends and family.

However, with so many new establishments, the competition for customers has
become fierce. Most owners we spoke to don’t think all these businesses can
survive.

Shanghai officials say there are “more than 8,000 cafes in the city”. And a
report by the Shanghai International Coffee Culture Festival, recorded 9,553
coffee shops at the end of 2023.

And it’s not just the number of outlets that sets Shanghai apart.

Where other Chinese cities are still dominated by big coffee chains like
Starbucks and its local rival Luckin, Shanghai’s café explosion is largely
fuelled by niche, independent outlets, like Hidden Track.

 

Owner of Hidden Track Dong Xiaoli 

For the owner of Hidden Track, coffee is an obsession

Its owner Dong Xiaoli says she had "no choice” but to dive head first into
the industry because she was so passionate about coffee.

But it hasn’t been easy.

Asked what advice she would give someone considering following in her
footsteps, she laughs and replies: “I’d say don’t do it.”

“The investment versus return is awful. You need to buy expensive machines
and put a lot of money into decorating. You’re earning very small amounts of
money compared to other industries.”

To succeed in this very crowded market, having a distinct vibe has become as
important as anything else in attracting customers.

Hidden Track has gone for a limited menu and a simple, minimalist vibe which
opens onto the street in a welcoming fashion.

 

Customers at coffee shop in Shanghai

Shanghai officials estimate there are more than 8,000 cafes in the city

Being seen at a café here is considered hip and urbane, and that has helped
drive young customers through the doors. Cafes have become a social occasion
with many young people to get dressed up and meet for coffee and a chat.

Shanghai's residents who have long seen themselves as the inheritors of an
outward-looking, cosmopolitan attitude which permeated Shanghai in the early
decades of the 20th century, are also proud of their café culture.

“Shanghai has long been an international trading city: we started drinking
coffee a long time ago. Smaller cities will also gradually get different
types of cafes,” says one man sitting at a café.

A woman nearby agrees that the local café culture is now solidly
established. Asked how many cups of coffee she drinks a day, she laughs out
loud and replies: “As many as I like.”

 

Japanese importer of specialist coffee

Yuan Jingfeng, who runs the R1070 café, says all his beans come from Japan

And as the cafes increase, so does the appetite for experimentation.

The coffee converts of this tea-drinking giant are keen to try new flavours
and new brews.

Yuan Jingfeng, who runs the R1070 café, says all his beans come from Japan.

“My costs are very very high. My imported beans include American and Italian
styles which are all imported from Japan in their original packaging,” he
says.

“Wholesale prices have gone up dramatically over the past few years. The
wars in Yemen and Ethiopia have both had an impact. The good beans are
getting fewer while the number of coffee drinkers keeps increasing."

But, so far, he says he has resisted passing on the increased costs to his
growing base of coffee drinkers.

AC café is owned by deaf people and employs deaf baristas.

Yang Yanfang – who interprets at AC for those who can’t speak with their
hands – says that, after the pandemic, "friends are really keen to meet up
for a coffee or a drink and Shanghai has become a city with a really strong
coffee culture."

"I can skip meals, but I can't skip my coffee," she adds.

 

AC café in Shanghai

AC café employs deaf baristas and sign language interprepters

And this is not the only café of its kind.

Another popular café, which is operated by blind staff, serves coffee
through a hole in the wall, from someone wearing a monkey suit arm, to
customers waiting in the street.

Along one stretch of road, we counted 18 cafes within only a couple of
hundred metres. All of them had plenty of customers inside.

Owners are hoping this will not be just a passing fad.

According to some estimates, China’s coffee market was valued at more than
260 billion yuan (US$35bn) last year. It’s been projected that it could
increase by another hundred billion (US$13bn).

The country’s branded coffee shop market grew by 58% last year, according to
the World Coffee Portal.

 

Coffee shop on bund that turns into bar

Coffee shop by day, bar by night

With overheads so high in Shanghai, many coffee shops can’t afford to have
their space under-utilised at night. So, when the sun goes down, they are
turning their cafes into bars, sometimes with live music.

The owner of the Flower Café and Bar, Wang Xi, has a prime spot with a clear
view of the city. His margins are very tight but, at the moment, his venture
is surviving.

“I’m a quite optimistic,” he says. “I hope the Chinese economy will quickly
return to pre-pandemic levels. If the economy flows again, everyone will
make a profit.”

China’s economy may be facing some significant hurdles but, as Wang Xi
speaks, he looks out across the customers sitting at little tables and
chairs staring down Suzhou Creek towards a gleaming Shanghai skyline and –
on this night – it’s hard not to share his optimism.-BBC

 

 

 

 

Amazon responsible for product recalls, says US

US regulators have ruled that Amazon is responsible for handling recalls of
unsafe products sold on its site and must improve its process.

They said Amazon's alerts were not sufficient to convince its customers to
stop using such products and ordered the company to submit a new plan for
how it will respond.

The decision by the US Consumer Product Safety Commission (CPSC) came after
the agency sued the e-commerce giant in 2021 for distributing more than
400,000 hazardous items, including faulty carbon monoxide detectors.

Amazon said it planned to appeal the finding, while defending its practices.

 

In the event of a recall, Amazon said it currently removes products from its
site and notifies customers.

"We are disappointed by the CPSC’s decision. We plan to appeal the decision
and look forward to presenting our case in court," the company said in a
statement.

In this case, Amazon said it had stopped selling the unsafe products
identified in the complaint, which included the faulty carbon monoxide
detectors, hairdryers without electrocution protection, and children’s
pyjamas that did not meet flammability rules.

It said it had notified customers, instructed them to stop using the items
and provided refunds.

But the commission said Amazon's messages failed to include terms like
"recall" and supply other information.

Amazon "did not take adequate steps to encourage its customers to return or
destroy them, thereby leaving consumers at substantial risk of injury," it
said.

Amazon has long pushed back on claims it was liable for products sold by
other businesses on its platform.

In this case, Amazon had disputed its responsibility as a "distributor"
under the law, arguing that it was simply acting as an outside logistics
provider.

But the commission said Amazon's role went beyond that of an ordinary
shipping company when merchants used its "Fulfilled by Amazon" service,
which handles the majority of sales on the platform.

For businesses enrolled in the programme, Amazon controls the return
process, communicates with customers, enforces pricing rules and screens
items for eligibility, according to the commission's decision.

In a statement, the commission said its decision was based on the facts of
this particular case, while adding: "As with all agency decisions, companies
may be interested in considering the applicability of the analysis in the
decision to their own products and practices".

The ruling enters ongoing debate about what responsibility online platforms
have for content on their site.

In 2020, a California appeals court found Amazon could be held liable for
damages in a case involving a defective laptop battery sold on its site.

A year later, Amazon introduced a new product guarantee, which includes
refunds and a process for resolving personal injury disputes.

"We stand behind the safety of every product in our store," the company said
on Tuesday, adding that it had measures in place to prevent unsafe products
and monitor listings.-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:
<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
5557 | +263 71 944 1674

 


 

 

 

 

 

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