Major International Business Headlines Brief::: 11 June 2024

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com         <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief:::  11 June 2024 

 


                                                                                  

 

	
 


 

 


 

ü  South Africa: Post Office Workers Face Delays in Severance Payouts 

ü  Nigeria: Can Northern Nigeria Soar Above Poverty and Underdevelopment?

ü  Nigeria: Minimum Wage - We Won't Resume Strike for Now - Ajaero

ü  Nigeria: Labour Rejects Federal Govt's N62,000 'Starvation Wage'

ü  Ugandan Environmental Activist Freed After Five Days in Detention

ü  Nigeria: 5 Nigerian Stews You Can Make Without Tomatoes

ü  Ethiopia: A New Dawn: Ethiopia Gears Up for Economic Leap With First-Ever Stock Exchange

ü  Uganda: Museveni's Eye On Money Lenders, Economy

ü  Nigeria: Minimum Wage - Tripartite Committee Submits Report to Govt

ü  Nigeria: No Plan to Revoke Wema, Polaris, Unity, Fidelity Licences - CBN

ü  Nigeria: Six Months to End of Year - NDDC Proposes N1.911 Trillion As 2024 Budget

ü  Mozambique: Govt Denies Debt to Ex-SNASP Members

ü  Singapore Airlines turbulence victims offered payout

ü  Mini China parts probe expanded by US Senate panel

ü  Why the EU might be about to make Chinese electric cars more expensive

ü  Apple brings ChatGPT to iPhones in AI overhaul

 

 


 

 


 <https://www.cloverleaf.co.zw/> South Africa: Post Office Workers Face Delays in Severance Payouts 

Over 300 retrenched South African Post Office workers in Limpopo have not received their severance packages, reports SABC News. The workers are part of the over 5,000 retrenched by the cash-strapped state entity. Workers say the failure to pay their packages has affected their livelihoods. The retrenched workers at the Post Office have been waiting for their hard-earned money for two months since their employment was terminated in April. The former workers, who are displeased, claim that despite following up with the Post Office multiple times, they have not yet received their money. They have also expressed concerns about the Post Office's policy of paying for their packages in installments. They state that they are no longer able to support their families.  The retrenched workers say their families have been torn apart due to the Post Office's failure to pay their severance package. They have now taken the legal route against the Post Office as the last resort to get what is rightfully due to them. 

 

More South African news

 

 

 

Nigeria: Can Northern Nigeria Soar Above Poverty and Underdevelopment?

Northern Nigeria stands at a critical juncture, where the winds of change beckon, and the possibilities for transformation are vast. Yet, the region grapples with entrenched poverty, limited access to education, and inadequate healthcare. The narrative is not new, but the urgency for change has never been more pronounced.

 

Two years ago, a report by the National Bureau of Statistics highlighted this stark reality: Northern states rank among the poorest in Nigeria, according to the Multidimensional Poverty Index (MPI). The MPI measures various deprivations at the household level in health, education, and standard of living, painting a grim picture of the region's socio-economic conditions. States such as Sokoto, Taraba, and Jigawa consistently top the list of Nigeria's poorest, illustrating the depth and breadth of poverty in Northern Nigeria. This enduring poverty is exacerbated by low literacy rates, with many children out of school, and inadequate healthcare services, leading to high maternal and infant mortality rates.

 

 

To envision a future where Northern Nigeria transcends these challenges, we must consider various scenarios - each represented by a bird, symbolizing different paths the region might take. These scenarios - Possible, Plausible, Probable, and Preferable - offer insights into potential futures and guide our actions today.

 

Ostrich: The Possible Scenario

 

In this scenario, Northern Nigeria mirrors the ostrich - burying its head in the sand, ignoring the pressing issues, and maintaining the status quo. Here, poverty remains pervasive, and economic stagnation continues. Governance structures are riddled with corruption, and short-term political gains overshadow long-term developmental goals. Education and healthcare systems are underfunded, with limited improvements in infrastructure and quality.

 

 

The ostrich scenario unfolds with leaders clinging to power through patronage and populism, sidelining critical reforms. External aid and investments dwindle as confidence in the region's stability wanes. The youth, disillusioned by the lack of opportunities, either migrate to other regions or succumb to the lure of extremist groups. Social tensions rise, exacerbated by ethnic and religious divides.

 

Despite occasional attempts at reform, systemic issues remain unaddressed. International organizations and local NGOs continue to provide relief, but their efforts are mere band-aids on deep-seated wounds. The ostrich scenario is a stark reminder of what could happen if complacency prevails, and it underscores the urgent need for proactive measures.

 

 

Duck: The Plausible Scenario

 

The duck scenario represents a cautious and steady approach. Northern Nigeria, like a duck gliding on water, appears calm on the surface but paddles vigorously beneath. In this future, incremental progress is made, but it is uneven and slow. Governance sees modest improvements, with some leaders embracing transparency and accountability, yet old habits die hard.

 

Economic diversification begins to take root, with investments in agriculture, small-scale manufacturing, and renewable energy. However, these sectors face challenges such as inadequate infrastructure, limited access to credit, and bureaucratic red tape. Education reforms lead to higher enrollment rates, but quality remains a concern, particularly in rural areas. Healthcare access improves marginally, with new clinics and hospitals, yet they are often understaffed and under-resourced.

 

The duck scenario sees Northern Nigeria making strides, but the progress is fragile. Political will fluctuates with changing administrations, and policy continuity is rare. Community-driven initiatives gain traction, but they struggle to scale up without robust institutional support. The region avoids the worst outcomes of the ostrich scenario, but it falls short of unlocking its full potential.

 

Eagle: The Probable Scenario

 

The eagle scenario envisions a Northern Nigeria that rises to new heights through strategic vision and determined action. This future sees a significant overhaul of governance structures, driven by a new generation of leaders committed to integrity, inclusivity, and sustainable development. Anti-corruption measures are strictly enforced, and public trust in government institutions is restored.

 

Economic revitalisation takes center stage, with substantial investments in infrastructure, technology, and education. Agriculture remains a backbone, but it is modernised through mechanisation, improved supply chains, and market access. Renewable energy projects flourish, reducing reliance on fossil fuels and creating new jobs.

 

Education and healthcare systems receive comprehensive reforms, focusing on quality and accessibility. Teacher training programs, digital learning initiatives, and vocational training equip the youth with skills for the future. Healthcare delivery is enhanced through telemedicine, mobile clinics, and partnerships with international health organisations.

 

The eagle scenario is propelled by a collective vision of progress, resilience, and innovation. While challenges persist, such as occasional political instability and regional disparities, the region is on a path to sustainable development. Northern Nigeria becomes a model for other regions, demonstrating that with the right policies and leadership, transformation is possible.

 

Phoenix: The Preferable Scenario

 

In the phoenix scenario, Northern Nigeria undergoes a profound renaissance, rising from the ashes of its past struggles to create a future of unparalleled prosperity and harmony. This scenario is characterized by visionary leadership, radical reforms, and a united commitment to shared goals.

 

Governance in this future is marked by unparalleled transparency, accountability, and citizen engagement. The political landscape is transformed, with leaders prioritizing long-term development over short-term gains. Grassroots movements and civil society organizations play a crucial role in shaping policies and holding leaders accountable.

 

 

Economic diversification reaches its zenith, with a thriving mix of agriculture, manufacturing, technology, and services. Northern Nigeria becomes a hub for renewable energy, leveraging its natural resources to power industries and homes sustainably.

 

Education is reimagined, with universal access to high-quality schooling and higher education. Innovative teaching methods, cutting-edge technology, and a focus on critical thinking and creativity prepare the youth for global competitiveness. Healthcare becomes a model of excellence, with universal coverage, advanced medical facilities, and community health programs ensuring no one is left behind.

 

Social cohesion strengthens as ethnic and religious divides are bridged through inclusive policies and community-building initiatives. Women and marginalized groups play prominent roles in leadership and decision-making, fostering a culture of equality and respect.

 

The phoenix scenario is the epitome of what Northern Nigeria can achieve. It represents the highest aspirations and the realization of its vast potential. This future is not just possible but preferable, serving as a beacon of hope and inspiration for the entire nation.

 

Redefining Politics, Policy, Governance, and Development

 

These scenarios - ostrich, duck, eagle, and phoenix - provide a spectrum of potential futures for Northern Nigeria. They are not mere stories but reflections of the choices the region's elites make today. For the region to soar like an eagle or rise like a phoenix, a fundamental rethinking of politics, policy, governance, and development is imperative.

 

The region's political elites must embrace a vision beyond personal and partisan gains. They must prioritize integrity, transparency, and accountability, ensuring that governance serves the people. Policies should be evidence-based, inclusive, and forward-thinking, addressing both immediate needs and long-term goals.

 

There must be a concerted effort to diversify the economy. Investment in education, healthcare, and infrastructure is crucial, but so is fostering innovation and entrepreneurship if jobs are to be created.

 

Governance structures need reform. Decentralization would empower local governments and communities, allowing for tailored solutions that address specific local challenges. Civic engagement and participation would have to be encouraged, ensuring that development initiatives reflect the voices and needs of the people.

 

In closing, the future of Northern Nigeria is not predetermined. It will be shaped by actions, decisions, and collective will of the region's elites. By envisioning and striving for the phoenix scenario, they would be able to transform the region into a beacon of hope and prosperity.

 

Some quotes that summarise the write-up

 

"Despite occasional attempts at reform, systemic issues remain unaddressed. International organizations and local NGOs continue to provide relief, but their efforts are mere band-aids on deep-seated wounds."

 

"These scenarios - ostrich, duck, eagle, and phoenix - provide a spectrum of potential futures for Northern Nigeria. They are not mere stories but reflections of the choices the region's elites make today."

 

"The future of Northern Nigeria is not predetermined. It is shaped by actions, decisions, and the collective will of the region's elites."

 

"Northern Nigeria stands at a critical juncture, where the winds of change beckon, and the possibilities for transformation are vast. Yet, the region grapples with entrenched poverty, limited access to education, and inadequate healthcare."

 

- Leadership.

 

 

 

Nigeria: Minimum Wage - We Won't Resume Strike for Now - Ajaero

The Nigeria Labour Congress (NLC) has announced that it will no longer meet today to decide on the resumption of the suspended strike to demand a new national minimum wage.

 

The NLC President, Joe Ajaero, disclosed this yesterday at the ongoing International Labour Conference in Geneva, Switzerland.

 

Ajaero said: "We cannot declare strike now because the figures are with the President."

 

He added that the tripartite committee's proposals were awaiting the President's decision, and the NLC's National Executive Council would deliberate on the new figure once it was announced.

 

 

"During the tenure of the immediate past President, the figure that was proposed to him was N27,000 by the tripartite committee but he increased it to N30,000. We are hopeful that this President will do the right thing. The President had noted that the difference between N62,000 and N250,000 is a wide gulf," he said.

 

Ajaero berated governors who declared that they wouldn't be able to pay a minimum wage of N62,000.

 

He said, "How can any governor say he cannot pay? They cannot also be calling for the decentralization of the minimum wage.

 

"Are there wages decentralized? Governors whose states are not contributing a dime to the national purse and who generate pitiable Internally Generated Revenue (IGR) are collecting the same amount as governors whose states are generating billions of dollars into the FAAC.

 

"They should decentralize their salaries and emoluments first."

 

He praised Governor Godwin Obaseki of Edo State, who is paying a minimum wage of N70,000, as an example to be emulated.

 

 

He said, "So, where is the governor of Edo state, Godwin Obaseki getting his money from? He is paying N70,000 minimum wage. This is the type of governor that should be emulated and not the lazy ones."

 

Meanwhile, the ultimatum earlier given the federal government by organised labour to accede to its request of N250,000 new national minimum wage to avert a strike ends tomorrow.

 

There are strong indications that organised labour may resume its nationwide strike tomorrow. At midnight on Tuesday, the one-week window given to the federal government to wrap up negotiations on a new minimum wage expired.

 

The development followed deadlocked negotiations on Friday last week. The federal government offered N62,000, with labour proposing a different figure of N250,000.

 

Labour had previously suspended a nationwide indefinite strike to allow room for dialogue with the federal government; however, with little progress reported, they said that the outcome of the deadline will determine whether Nigeria will witness another nationwide strike starting Wednesday.

 

 

The assistant general secretary of the Nigeria Labour Congress (NLC), Chris Onyeka, who spoke yesterday in Abuja, said, "If after tomorrow we have not seen any tangible response from the government, the organs of the organised labour will meet to decide on what next".

 

Onyeka stated that the responsibility now lies with the federal government and the National Assembly.

 

He said, "Our demand is there for them to look at and send a federal executive bill to the National Assembly to look at what we have demanded, the various facets of the law, and then come up with a National Minimum Wage Act that meets our demands."

 

He warned that if their demands are not met by midnight today, labour unions will have to decide on the next course of action.

 

"It is not in my hands to tell you what we are going to do now, but it is in the hands of the organs," Onyeka stated, noting that these decision-making bodies include representatives from all parts of Nigeria and various religions.

 

The current standoff arises from the federal government's proposal of a N62,000 minimum wage, which labour unions have rejected.

 

Onyeka also clarified that the earlier nationwide strike was only paused, and if the organs decide to resume it, the strike would be reinstated immediately.

 

He also pointed out the broader implications of a strike, noting that a withdrawal of services would halt operations across various sectors, impacting the entire country. "If we withdraw our services, things will not work as they were working before," he said.

 

Amidst the uncertainty, the 37-member Tripartite Committee on National Minimum Wage submitted its report to the federal government yesterday, recommending a new national minimum wage for Nigerian workers across the public and private sectors.

 

The committee, inaugurated on January 30, 2024, by President Bola Ahmed Tinubu under the Minimum Wage Act of 2019, was tasked with reviewing the existing minimum wage and advising on an appropriate increase.

 

After months of deliberations and consultations with stakeholders, the Alhaji Bukar Goni Aji committee has concluded its assignment.

 

The secretary to the government of the federation (SGF), George Akume, received the report on Monday and commended the committee for its commitment and sacrifices.

 

"The Tripartite Committee has undertaken a critical national assignment," Segun Imohiosen, director of information and public relations in the Office of the SGF, said.

 

"Their report will guide the government's decision on a new minimum wage that is fair and sustainable for both workers and employers," he added.

 

However, details of the committee's recommendation, including the proposed minimum wage figure, have not yet been made public.

 

Once the leadership of organised labour, government and private sector representatives return from the ongoing ILO conference in Geneva, Switzerland, a formal presentation to President Tinubu is expected.

 

Nigeria's last national minimum wage increase was in 2019, when it was raised from N18,000 to the current N30,000 monthly rate.

 

Labour unions and workers have been calling for a further increase to account for inflation and the rising cost of living.

 

- Leadership.

 

 

 

 

Nigeria: Labour Rejects Federal Govt's N62,000 'Starvation Wage'

The Organised Labour has declared that it would no longer negotiate the N62,000 minimum wage offer being proposed by the Federal Government, describing the proposal as 'starvation wage.'

 

The Organised Labour, under the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), warned that should the Federal Government and National Assembly fail to act on the demands of workers by Tuesday, its organs will meet to decide on the resumption of the nationwide industrial strike.

 

Assistant General Secretary of the NLC, Chris Onyeka who revealed this during a session on Channels Television, Monday morning, said labour would take a stand when the one-week grace period given to the Federal Government on Tuesday, June 4, 2024, expires by midnight of Tuesday, June 11, 2024.

 

"The Federal Government and the National Assembly have the call now. It is not our call. Our demand is there for them (the government) to look at and send an Executive Bill to the National Assembly, and for the National Assembly to look at what we have demanded, the various facts of the law, and then come up with a National Minimum Wage Act that meets our demands.

 

 

"If that does not meet our demand, we have given the Federal Government a one-week notice to look at the issues and that one week expires tomorrow (Tuesday). If after tomorrow, we have not seen any tangible response from the government, the organs of the Organised Labour will meet to decide on what next," Onyeka said.

 

Talking about the possible decision of the Organized Labour if the government insists on ₦62,000, Onyeka said, "It was clear what we said. We said we are relaxing a nationwide indefinite strike. It's like putting a pause on it. So, if you put a pause on something and that organs that govern us as trade unions decide that we should remove that pause, it means that we go back to what was in existence before."

 

 

He emphasised that the Organized Labour won't accept any ₦62,000 or ₦100,000 "starvation wage" as the minimum wage for Nigerian workers, insisting on ₦250,000, as demanded by the Organised Labour at the last meeting of the Tripartite Committee on Minimum Wage on Friday, as the living wage for an average Nigerian worker.

 

"We have never considered accepting ₦62,000 or any other wage that we know is below what we know is able to take Nigerian workers home. We will not negotiate a starvation wage.

 

"We have never contemplated ₦100,000 let alone of ₦62,000. We are still at ₦250,000, that is where we are, and that is what we considered enough concession to the government and the other social partners in this particular situation.

 

"We are not just driven by frivolities, but the realities of the marketplace; realities of things we buy every day; bag of rice, yam, garri, and all of that," he said.

 

- Leadership.

 

 

 

 

Ugandan Environmental Activist Freed After Five Days in Detention

An environmental activist in Uganda who is opposed to a huge oil project led by French giant TotalEnergies has been freed after five days in detention, his employer said Monday.

 

Stephen Kwikiriza was found on Sunday evening dumped on a roadside in Kyenjojo, about five hours' drive west of the capital Kampala, said Samuel Okulony, director of the Environment Governance Institute (EGI).

 

The activist said he was beaten by army officers, Okulony said in a message to French news agency AFP, adding that he was being treated in a Kampala hospital.

 

"He is alive, is now safe, and is reconnecting with family. His condition is not good after having suffered severe beatings, mistreatment and abuse throughout the week."

 

 

A senior military officer on Monday confirmed Kwikiriza's detention.

 

"He was taken into custody for questioning regarding his illegal activities including mobilising fellow activists to oppose the oil pipeline," the officer told AFP on condition of anonymity, adding that he was released after interrogation.

 

"I have not been made aware of him being beaten during interrogation, it's a matter that can be investigated and verified."

 

International pressure

 

Okulony lauded "international pressure" for the release of Kwikiriza.

 

Global rights groups had raised concerns about Kwikiriza's fate after he went missing on Tuesday.

 

The International Federation for Human Rights (FIDH) described it as a "particularly worrying escalation of repression".

 

 

FIDH said 11 environmental activists "were kidnapped, arbitrarily arrested, detained or subjected to different forms of harassment by the Ugandan authorities between May 27 and June 5, 2024".

 

Human Rights Watch (HRW) had also voiced concern about Kwikiriza's disappearance.

 

"The Ugandan government needs to end its harassment of opponents of oil development in the country, such as the East African Crude Oil Pipeline Project," Myrto Tilianaki, senior environmental rights advocate at HRW, said in a statement.

 

Dire consequences

 

TotalEnergies signed an agreement with the China National Offshore Oil Corporation (CNOOC) in 2022 to develop Ugandan oil fields and ship the crude via a 1,445-kilometre pipeline to Tanzania's Indian Ocean port of Tanga.

 

President Yoweri Museveni, who has ruled Uganda with an iron fist since 1986, has regularly praised the oil project as an economic boon for the impoverished landlocked country.

 

The first oil is expected to flow in 2025 - almost two decades after the reserves were discovered in Lake Albert in northwestern Uganda.

 

Environmental groups say the project is having dire consequences for local communities and the environment in an area of rich biodiversity, and have accused TotalEnergies of greenwashing.

 

TotalEnergies in Uganda said in a statement it "does not tolerate any threats, intimidation, harassment or violence against those who peacefully and lawfully promote human rights in relation to our activities".

 

(with AFP)

 

 

 

 

 

Nigeria: 5 Nigerian Stews You Can Make Without Tomatoes

In this article is a compiled a list of five economical, locally sourced stews that can be made without tomatoes

 

With Nigerians staunch consumers of stew, tomatoes are a beloved staple, central to many traditional dishes.

 

But recently, the price of tomatoes have soared in the country with many Nigerians forced to search for alternative sauces to complement their daily meals.

 

In response, we've compiled a list of five economical, locally sourced stews and sauces that can be made without tomatoes:

 

Stews you can make without tomatoes

 

1. Garden Egg Sauce

 

A popular delicacy in southern Nigeria, Garden Egg Sauce serves as an excellent substitute for tomato stew. Essential ingredients include garden eggs (purple aubergine, white, or green), palm oil, smoked fish, ground pepper (chili or scotch bonnet), rinsed iru, onions, crayfish, and salt to taste. This versatile sauce pairs well with rice, yam, or plantain.

 

 

2. Pumpkin Leaf Sauce

 

Known locally as Ugu, pumpkin leaves are widely used in Nigeria. Pumpkin Leaf Sauce is not only flavorful but also healthy, consisting of a sauté of fluted pumpkin leaves and onions. Quick to prepare, this sauce requires chopped pumpkin leaves, seasoned beef or chicken (optional), meat stock, vegetable oil, chili pepper, onions, seasoning, and salt to taste.

 

3. Banga Stew

 

Known as Ofe Akwu, Banga Stew is a palm nut stew native to the Igbo tribe. Although extracting palm oil juice from palm nuts can be time-consuming, the resulting dish is deliciously rewarding. Ingredients needed are palm fruits or palm fruit concentrate, beef, dry fish, vegetables (scent leaves for Ofe Akwu or dried, crushed bitter leaves for Delta-style Banga soup), onions, crayfish, stock cubes, iru, salt, and chili pepper to taste.

 

 

4. Baobab Leaf Stew

 

A northern Nigerian delicacy, Miyan Kuka, or Baobab Leaf Stew, is a favorite among the Hausa tribe and is usually served with white rice. Key ingredients are beef, onions, dried fish, hot peppers (washed, soaked, and flaked), pounded kuka (baobab) leaves, dawadawa (fermented dried seeds of the African locust bean), yaji (suya seasoning), a pinch of potash, palm oil, seasoning cubes, and salt to taste.

 

5. Ofada Stew

 

Commonly called Ayamase, Ofada Stew is typically served with Ofada rice, a special local variety. However, it can also accompany regular white rice, yam, plantain, and even spaghetti. The simple ingredient list includes unripe habanero peppers, green tatashe or green bell peppers, locust bean seasoning (iru, ogiri okpei, or dawadawa), red palm oil, onions, crayfish, assorted meat, and fish.

 

Vanguard News

 

- Vanguard.

 

 

 

 

Ethiopia: A New Dawn: Ethiopia Gears Up for Economic Leap With First-Ever Stock Exchange

Addis Abeba — Ethiopia's financial landscape is currently on the cusp of a historic transformation as it gears up for the grand unveiling of its very first stock market, the culmination of over three years of strategic groundwork.

 

This journey began in 2021 with the appointment of Meles Minale, a macroeconomic advisor at the National Bank of Ethiopia, to spearhead a team of 14 experts in laying the foundation for Ethiopia's first full-fledged capital market.

 

The efforts of this team resulted in the establishment of the Ethiopian Capital Market Authority (ECMA), under the astute leadership of Brook Taye (PhD), a young economist with extensive experience from the Ministry of Finance and the private sector.

 

The Authority is entrusted with critical responsibilities, including the development of a regulatory framework, the creation of a long-term capital market development roadmap, and the review of institutional investor regulations, macro-financial policies, and tax policies. These preparations are essential for the establishment of the Ethiopian Securities Exchange (ESX).

 

 

With most of the preparatory work now completed, the inauguration of the ESX is scheduled for November 2024, marking a significant milestone in Ethiopia's economic evolution.

 

Officials emphasize that the ESX is already attracting significant investor attention and pulling in funds.

 

The Ethiopian Investment Holdings (EIH) is set to be one of the largest investors on the ESX.

 

In October 2023, EIH and four of the largest state-owned enterprises (SOEs) under its purview--namely, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), Berhanena Selam Printing Enterprise, Ethiopian Insurance Corporation (EIC), and Ethio Telecom--announced a combined 25% stake acquisition in the ESX.

 

 

In addition to securing 275 million birr from four state-owned enterprises (SOEs), the ESX sought to raise an additional 625 million birr from private entities.

 

Several prominent private banks with significant capital holdings have already announced their equity investments in the ESX.

 

For instance, Awash Bank emerged as the leading investor two months ago, acquiring shares valued at 70 million birr. Global Bank also contributed 50 million birr to the ESX's capitalization efforts.

 

Authorities also highlighted strong investment intentions from companies based in Kenya, Nigeria, and South Africa.

 

Notably, the Nigerian Exchange Group (NGX) publicly announced its acquisition of a stake in the ESX in April 2024, though the specific investment amount remains undisclosed.

 

As of one month ago, the ESX had successfully secured over 95% of its targeted capitalization of one billion birr. This achievement paves the way for the exchange to officially commence operations.

 

 

Senior government officials assert that Ethiopia's progress toward opening its capital market represents a fundamental transformation in its economic landscape.

 

Prime Minister Abiy Ahmed recently remarked that the introduction of a stock market in Ethiopia is "poised to be a game-changer, supporting the country in achieving its growth aspirations and attracting new capital," further noting that "this marks an exciting chapter for the nation."

 

While pronouncements by the Prime Minister and other high-level government officials have characterized the introduction of a capital market as a transformative development, experts caution against excessive optimism.

 

We are designing a capital market in which everyone can be a beneficiary." Brook Taye, Director General of the Ethiopian Capital Market Authority

 

Their caution is partly informed by the relatively modest impact observed from the establishment of capital markets in other African countries.

 

The past few decades have nonetheless witnessed a growth in the number of African stock exchanges, with cross-listings within the continent also increasing. From a mere eight exchanges in 1989, the landscape has expanded to encompass 29 exchanges, representing 38 African nations.

 

However, a recent report by the African Development Bank (AfDB) underscores the relatively limited role currently played by capital markets in the African economic landscape. With the exception of Egypt, whose stock exchange dates back to 1883, no African exchange boasts a total market value exceeding 20% of its corresponding gross domestic product (GDP).

 

Despite this caveat, experts acknowledge the potential of the initiative to serve as a significant driver of Ethiopia's economic development.

 

"While an immediate economic transformation may not be realistic," Henok Fasil (PhD), a macroeconomist and a consultant at the World Bank office in Ethiopia, contends, "the introduction of a capital market can significantly contribute to Ethiopia's growth ambitions by attracting fresh capital and fostering improved corporate governance practices."

 

The establishment of a capital market in Ethiopia is not an entirely novel endeavor. Public-share subscriptions by large corporations and financial companies have been documented as early as 1956.

 

The practice evolved into a more formalized share trading platform with the establishment of a dedicated share exchange department by the former State Bank of Ethiopia in 1960.

 

 

This development was followed by the creation of the Share Dealing Group under the National Bank of Ethiopia (NBE).

 

Comprised of various members, the Group facilitated share trading until its dissolution in 1975, a consequence of the nationalization of financial institutions and large companies.

 

However, officials contend that the current initiative represents a significant departure from these past attempts.

 

In an interview with the Addis Standard, Brook Taye, Director General of the Ethiopian Capital Market Authority, underscored the government's dedication to inclusivity, including addressing the financial requirements of small and medium enterprises (SMEs).

 

"We are designing a capital market in which everyone can be a beneficiary," he stated. "It's going to be open for everyone."

 

Can SMEs thrive with new funding avenue?

 

Studies underscore the critical role of SMEs in fostering economic development, particularly in developing nations like Ethiopia. SMEs are instrumental in generating a substantial number of employment opportunities within these economies.

 

However, a critical shortcoming exists within Ethiopia's financial sector: it has not sufficiently addressed the funding requirements of aspiring small and medium-sized business proprietors. This is because conventional lenders, such as banks, typically require collateral for SME loans, effectively excluding a large portion of SMEs who lack the necessary collateral, hindering their loan approval.

 

A recent study revealed that 76% of micro, small, and medium enterprises (MSMEs) in Ethiopia relied primarily on self-generated savings, contributions from family or friends, Equub (informal rotating savings and credit associations), and savings and credit cooperatives for their initial capital.

 

Brook explains how a capital market can alleviate this obstacle.

 

He states that the establishment of a capital market will enhance the banking industry's capacity to lend to SMEs, as larger companies will be able to raise capital through the market.

 

"These benefits have the potential to be realized," the director general stated, adding, "once they have grown, SMEs will also have the opportunity to be listed on the exchange themselves, allowing them to sell shares and issue corporate bonds."

 

However, Henok, argues that SMEs may face significant challenges in accessing these markets due to stringent listing criteria and low visibility for investors.

 

To grasp the potential of capital markets for facilitating capital formation and serving as a fundraising platform for SMEs, a thorough understanding of the different types of capital markets is essential.

 

Capital markets can be broadly categorized into primary and secondary markets.

 

The primary market serves as the venue for the initial issuance and sale of new shares to the public through initial public offerings (IPOs).

 

The proceeds generated from these primary market transactions are not only used for various purposes but also serve the critical function of financing real investments in tangible assets such as physical structures, plants and equipment, as well as inventories. Consequently, primary markets play a pivotal role in mobilizing financial resources, specifically for capital formation.

 

However, Gemechu Daba, an adjunct lecturer at Addis Ababa University, argues that the process of going public through an initial public offering (IPO) can be cost-prohibitive for SMEs operating in Ethiopia due to significant legal, accounting, and marketing fees.

 

"These expenses can pose a substantial burden for smaller companies," asserts Gemechu.

 

Subsequent to the issuance and purchase of securities in the primary market, secondary markets provide a platform for the resale of these securities.

 

While secondary market transactions may not directly contribute to additional real investments or capital formation, research suggests that they fulfill several valuable economic functions.

 

A recent study published by the Ethiopian Economics Association highlights that secondary markets, also known as stock exchanges, enhance liquidity by enabling the sale of securities on short notice.

 

Through the continuous fluctuation of security prices, secondary markets also signal to investors the relative efficiency of companies' management. Companies with superior performance are rewarded with rising stock prices, attracting further capital.

 

Although secondary markets can facilitate the efficient allocation of resources by directing capital towards companies demonstrating superior performance, only securities meeting the specific listing requirements of a particular stock exchange can be traded on that platform.

 

Citing the findings of various studies, some academics challenge the government's claim that the new Ethiopian secondary market (ESX) will be accessible to a wide range of companies, including SMEs.

 

Their skepticism seems justified by the initial composition of the listed entities.

 

At the launch of the exchange, at least 15 companies with substantial capital backing are anticipated to list, with the possibility of expanding to at least 50 entities, primarily banks and insurance companies.

 

 

With a business portfolio valued at $38 billion, Ethiopian Investment Holdings (EIH), along with four of the largest state-owned enterprises, including Ethio Telecom, are set to be among the largest participants in the ESX.

 

Despite these initial listings, Brook argues that establishing a capital market will benefit SMEs.

 

"There will be an alternative market on the exchange where SME-type products or assets supportive of SMEs will be listed," he elaborates. "For instance, factoring could exemplify a scenario where a purchase order can be aggregated, securitized, and listed, facilitating quicker payments for SMEs, thus enabling them to sustain their operations more efficiently than under the current circumstances."

 

The director-general also elaborates on the ancillary advantages associated with a developed capital market. He posits that such a market would augment the lending capacity of the banking sector towards SMEs.

 

The process of going public through an initial public offering (IPO) can be cost-prohibitive for SMEs." Gemechu Daba, an adjunct lecturer at Addis Ababa University

 

"This would be achieved by facilitating the direct capital acquisition of larger corporations within the market, thereby alleviating the strain on traditional lending channels," he stated.

 

Brook acknowledges that the benefits may not be immediate but emphasizes that this method of raising capital represents an efficient system for allocating financial resources.

 

Merid Tullu, a macroeconomist currently working in the private sector, proposes an alternative solution: the establishment of a dedicated market catering to the specific needs of SMEs.

 

"The most prevalent global practice for SMEs to raise capital involves over-the-counter (OTC) markets," he explained.

 

An OTC market is a decentralized financial system where participants trade various instruments, including stocks, commodities, and currencies, directly with each other. These transactions occur outside of a centralized exchange or with minimal broker involvement.

 

Merid emphasizes that, unlike established exchanges like the New York Stock Exchange, OTC markets are subject to less stringent regulations. According to him, this characteristic makes them potentially more attractive options for SMEs seeking to raise capital.

 

Brook disclosed that the Ethiopian Stock Exchange has already expressed its intention to establish an alternative board specifically designed for the participation of small and medium-sized businesses.

 

However, the director general of the authority emphasized that the focus should not solely be on permitting or denying SME listings. According to him, a critical factor is whether SMEs can access the appropriate type of capital.

 

"Should an SME choose to list on the exchange?" Brook elaborated, "it will face extensive disclosure requirements. For an SME with limited revenue, this raises a crucial question: should they prioritize core business operations or divert resources to hire a high-cost compliance advisor solely to achieve a listing?"

 

Overcoming transparency challenges

 

Gemechu, an adjunct lecturer at Addis Ababa University, believes capital markets like the one planned for Ethiopia hold the potential to revolutionize fundraising. However, he emphasizes that their success depends on addressing investor anxieties and establishing a well-functioning, trustworthy market.

 

In line with Gemechu's evaluation, Henok proposes the creation of a regulatory framework that safeguards investor interests and ensures corporate integrity.

 

"The sustainability of capital markets necessitates robust regulatory structures," Henok remarked. "The absence of such an environment could impede the efficacy and prosperity of Ethiopia's capital market unless substantial reforms are implemented."

 

Empirical evidence suggests that capital markets are highly vulnerable to fraud and manipulation. Companies may resort to deliberately misleading potential investors by presenting an unrealistically positive picture in their prospectuses and other publications.

 

Additionally, investors may be enticed into perilous situations by companies that intentionally conceal crucial information with potentially negative consequences. Insider trading, furthermore, has been a chronic ailment plaguing capital markets worldwide.

 

Experts underscore the need for a comprehensive set of laws, rules, and regulations to protect investors from fraud, misrepresentation, and collusion. They also emphasize the importance of establishing institutions with extensive powers to oversee and regulate Ethiopia's capital market.

 

In particular, scholars like Henok express concern about the current lack of transparency in Ethiopian corporations. Their concerns stem from the fact that transparency is critical for ensuring investors have access to reliable and timely information, which is essential for making informed investment decisions.

 

"The inability of many Ethiopian companies, particularly state-owned enterprises, to provide transparent financial statements could indeed pose a significant obstacle to the functioning of a robust capital market," Henok stressed. "Since such a lack of transparency can deter investment and undermine market credibility, authorities may need to enforce stricter disclosure requirements and penalties for non-compliance."

 

Brook, however, emphasized that adherence to this criterion is non-negotiable.

 

"Companies, whether public or private, that do not disclose their financial information will not be granted access to the capital market," he stated.

 

Haile Bayisa, a business law specialist and lecturer at Addis Ababa University, argues for a nuanced approach to financial regulation. While Haile acknowledges its importance for stability, he emphasizes that the law should also facilitate financial transactions and educate market participants.

 

"A stringent regulatory framework, both in legislation and enforcement, can discourage businesses from going public," Haile suggested. "Therefore, it is essential to strike a balance."

 

Navigating economic storm

 

While Ethiopian officials have emphasized the imminent launch of the Ethiopian Securities Exchange and the positive attention it has garnered, experts contend that the ongoing conflict in various regions of the country, combined with the prevailing macroeconomic instability, is likely to undermine the confidence of both companies eligible for listing on the exchange and prospective investors in shares and securities.

 

"Given the current challenges, including conflict, high external debt, and a scarcity of foreign exchange, Ethiopian companies might be hesitant to go public," Henok asserted. "These conditions can also undermine investor confidence, as the risks associated with economic volatility may outweigh potential returns."

 

Over the past two decades, Ethiopia has encountered significant macroeconomic challenges due to the soaring prices of goods and services. This phenomenon has resulted in a substantial increase in the cost of living, thereby eroding the disposable income of Ethiopian households.

 

Official data released by the National Bank of Ethiopia (NBE) underscores the severity of the situation.

 

Over the past decade, the yearly average inflation rate has been recorded at 16%, significantly exceeding the average saving interest rate offered by commercial banks, which currently stands at only 5%.

 

Recent conflicts have also impacted investor and entrepreneur perceptions of Ethiopia's business environment and the economic hardships the country confronts.

 

While acknowledging that current economic conditions are not ideal, Brook emphasizes that these difficulties are not permanent. He highlights that "while we have seen deterioration in some areas, there are significant progresses in other areas."

 

To illustrate this point, Brook cites the improvement in reducing the headline inflation rate from 27.8% in October to 23% in May 2024.

 

Given the current challenges, including conflict, high external debt, and a scarcity of foreign exchange, companies might be hesitant to go public." Henok Fasil (PhD), a consultant at the World Bank office in Ethiopia

 

He further clarifies that "although the reduction is not at the pace the government would prefer, inflation is demonstrably coming down."

 

While acknowledging concerns regarding the potential impact of macroeconomic challenges and conflicts on the exchange's effectiveness, Merid offers a contrasting perspective.

 

He argues that a capital market can provide a shield for both investors and entrepreneurs during economic downturns. He elaborates that, for example, during periods of inflation, investment becomes a more attractive option compared to saving.

 

"In a nation characterized by lower interest rates, such as Ethiopia," Merid explains, "savings can result in returns that are surpassed by inflation, essentially eroding the value of one's savings. Consequently, investing in real assets, which the capital market facilitates, becomes a preferable course of action as it offers the potential for higher returns."

 

- Addis Standard.

 

 

 

Uganda: Museveni's Eye On Money Lenders, Economy

Kampala, Uganda — In his latest State of the Nation Address 2024, President Yoweri Museveni wants to cap interest rates charged by money lenders who he said exploit desperate borrowers by charging them exorbitant rates.

 

"...some of the challenges we are facing are further complicated by the 'bloodthirsty parasites' in the form of the unregulated money lenders who charge extortionate interest rates from these desperate political actors when they come to borrow money for useless expenditures," the President said in his speech on June 6 at Kololo Ceremonial Grounds.

 

He added: "I have already directed the Minister of Finance to cap the interest rates chargeable by money lenders. The inflation rate in Uganda is 3%. Why should the commercial banks charge 20% interest? How about the money lenders charging 36% or more?"

 

Interest rates form the centre of economic fundamentals that fuel economic growth and the President could be alive to this fact which is why he is talking about it again.

 

 

Uganda's economy is free - where forces of demand and supply determine the price. The government has largely not intervened in many sectors to observe this market principle.

 

It is not clear how his finance managers are going to handle this matter. But obviously, experts say the best way to regulate money lenders, including informal ones, involves a multifaceted approach that combines robust legal frameworks, effective enforcement, borrower education, and leveraging technology.

 

By ensuring that regulations are comprehensive and enforced, borrowers can be better protected, and a fair lending environment can be maintained.

 

Countries like Kenya, India, Philippines have had some levels of success in regulating money lenders - a benchmarking exercise could help guide Uganda.

 

The other idea the President talked about was promoting alternative financial services like microfinance community-based savings groups and government projects that can offer financial services at a friendly rate.

 

 

Museveni said the Parish Development Model (PDM) and Emyooga funds are going to become the poor people's banks, able to lend at 12% or less after 24 months.

 

He said, already, he has directed the Attorney General to guide the Minister of Finance as to how he can criminalize the extortion of money lenders.

 

Paul Lakuma, a senior research fellow at Makerere University Economic Research Centre (EPRC) told The Independent on June 7 that the President's directive might not be easy to implement.

 

"The implementation may prove challenging because most money lenders are unobservable or informal. Also, the transactions between money lenders and their clients are based on a willing buyer--willing seller basis," Lakuma said.

 

 

Regarding rates charged by UDB (12% per year), Lakuma said, "Let's proceed with the rates proposed so far because the risk in the market goes beyond inflation. As much as we want to lend, we should protect the capital base of UDB and PDM. Therefore, the current interest rates are fair for now. If we deal with non-technical risk, in the future, we can further reduce the interest rates."

 

Organized groups like Cooperatives and traders under their umbrella body Kampala City Traders Association (KACITA) have repeatedly said their long-term solution to accessing affordable credit is setting up their bank.

 

The Minister of State for Cooperatives at the Ministry of Trade, Industries and Cooperatives Frederick Ngobi Gume says there is a need to establish a cooperative bank that is suitable for cooperators' aspirations, reliable, and simple to acquire to properly utilise their finances.

 

"Saccos have huge sums of money kept in other banks just accumulating and the returns are enjoyed by those banks, why can't we have our cooperative bank to collectively support our cooperative society?" Minister Gume asked while speaking at the Annual Teacher's SACCO capacity building workshop held in Kampala on June 7.

 

Minister Gume added the team from his ministry is carrying out consultations, and research from within and outside the country to provide a complete report that will result in the drafting of the Bill that will soon be tabled before the floor of Parliament.

 

But Lakuma has mixed views on this matter. "Setting up a bank will not solve people's problems," he said, "Even if we do, it must remain competitive and obey all rules, including liquidity and capitalisation requirements. The reserve bank will not allow you to run a bank that is messing with depositors' money. A bank runs on deposits and must utilise deposits prudently."

 

Beyond money lenders

 

Beyond the high interest rates, the President reminded the audience about the journey of Uganda's economy and where it is headed.

 

He said the correct philosophy, ideology, and strategy of his administration have enabled the economy and society of Uganda to go through five phases since 1986.

 

These phases are, the minimum economic recovery phase of restoring aspects of the small, colonial enclave money economy of the 3Cs and 3Ts (cotton, coffee, copper, tea, tobacco, and tourism); expanding that enclave with the more production of coffee, tea and more; then the diversification of the enclave economy by commercializing the production of bananas, cassava, milk, fruits, palm oil, cocoa, fish, beef; adding value to some of these raw-materials such as cotton, fruits, milk, tea, timber, sugar, and the knowledge economy, through the production of vaccines, the automobile industry.

 

 

He said those have enabled the economy to grow from US$1.5bn in 1986 to now US$55bn by the forex exchange method and US$180.29 bn by the Purchasing Power Parity method.

 

"With US$1,182 per capita, Uganda has entered the lower middle-income status," he said.

 

Regional markets

 

With a more united African market, Museveni said, Uganda can be able to negotiate with other countries for market access - the European Union, the United States of America - USA, China, Russia, the Gulf, - India, and more.

 

Internally, he said, his administration has guided the people that the social-economic transformation can be realized through education of all and prosperity for all programs by joining the four money-making sectors of Commercial Agriculture; Manufacturing; Services; and Information Communication Technology.

 

"The government has provided grants or soft loans, for wealth creators to use in joining these sectors in case they do not have their capital," he said.

 

He listed the funds: Operation Wealth Creation, NAADS, Entandikwa, PDM, Emyooga, the Youth Fund, the Women Fund, and GROW.

 

He said that these funds are for mainly low-income people. "The actors that are more empowered should borrow from the UDB for agriculture and manufacturing, and some of the services such as tourism," he said.

 

Museveni said these internal wealth creation efforts feed directly into the country's export strategy and overall economic growth.

 

To date, he said, Uganda exports goods and services worth US$2.140 billion to EAC countries and goods and services worth US$2.157billion to COMESA Countries.

 

There are, however, still non-tariff barriers. "With H.E William Ruto (President of Kenya), recently, we agreed to remove all these barriers against sugar, milk, eggs, fruit juices," Museveni said, "Therefore, let all the East Africans insist on full free trade in the EAC area and, eventually, in the whole Continental Free Trade Area (CFTA).

 

- Independent (Kampala).

 

 

 

 

 

Nigeria: Minimum Wage - Tripartite Committee Submits Report to Govt

The 37-member Tripartite Committee on National Minimum Wage, on Monday, submitted its report to Office of the Secretary to the Government of the Federation (OSGF).

 

Segun Imohiosen, Director Information and Public Relations Office at the SGF's office, announced this in a statement.

 

President Bola Ahmed Tinubu inaugurated a 37-Member Tripartite Committee on National Minimum Wage, on Tuesday 30th January, 2024, in accordance with the provisions of the Minimum Wage Act, 2019.

 

President Tinubu inaugurated the committee on Tuesday 30th January, 2024, in accordance with he provisions of the Minimum Wage Act, 2019.

 

 

The Committee was tasked with the responsibility of recommending a new national minimum wage for Nigerian workers in public and private sectors.

 

"The Tripartite Committee on National Minimum Wage has concluded its assignment and submitted Report to the Secretary to the Government of the Federation on Monday, 10th June, 2024," Imohiosen said.

 

He said a formal presentation of the report will be made to the President for appropriate action, when the leadership of the Organised Labour as well as representatives of Government and Organised Private Sector, who are presently in Geneva, Switzerland, for the ongoing International Labour Organisation (ILO) Conference, return to the country.

 

The SGF, Senator George Akume, thanked the Chairman of the Committee, Alhaji Bukar Goni Aji, and members for their commitment and sacrifices.

 

Efforts by Daily Trust to get insights or contents of the report, especially on the recommendations and figures proposed by the committee did not yield results.

 

Officials that were contacted either declined comments or said they did not know the contents of the report.

 

- Daily Trust.

 

 

 

 

 

Nigeria: No Plan to Revoke Wema, Polaris, Unity, Fidelity Licences - CBN

There is no plan to revoke the operating licences of Fidelity, Wema, Polaris and Unity Banks, the Central Bank of Nigeria has said.

 

The Acting Director of Corporate Communications of CBN, Mrs. Hakama Sidi Ali clarified, in Abuja, this afternoon, that the rumour of CBN's plan to revoke the licences of the above banks were false.

 

She also noted that a circular issued by CBN on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, was being re-circulated as though it was issued on June 10, 2024.

 

She blamed unscrupulous people for the development aimed at creating panic in the system.

 

 

Mrs. Sidi Ali there reassured members of the banking public of the safety of their deposits and the banking system's resilience.

 

The Ag. Director emphasised that Heritage's case was isolated, adding that allegations of further revocation of licences prior to the completion of the bank recapitalisation exercise were mere fabrications of those who didn't wish the banking sector well.

 

She added that even customers of Heritage Bank needn't worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment of the bank's insured deposits.

 

Mrs. Sidi Ali, therefore, urged the public to continue their regular banking activities without concern, dismissing any false reports regarding the health of specific Deposit Money Banks.

 

She confirmed that the CBN, with its robust regulatory framework, was proactively ensuring the stability of Nigeria's financial system, thereby guaranteeing the safety of depositors' funds in all Nigerian financial institutions.

 

 

While reiterating the assurances of the Governor (Olayemi Cardoso) that the recapitalisation of banks in Nigeria was intended to bolster the banking system and safeguard the sector against risks, Sidi Ali urged all stakeholders to cooperate in ensuring the success of the process, which she noted would be for the overall growth of the Nigerian economy.

 

According to her, "Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

 

"Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system."

 

- Vanguard.

 

 

 

 

Nigeria: Six Months to End of Year - NDDC Proposes N1.911 Trillion As 2024 Budget

Six months to the end of the fiscal year, the Niger Delta Development Commission, NDDC, has proposed a total sum of N1.911 trillion as its 2024 aggregate expenditure, just as it disclosed that it was working towards the completion of some ongoing projects in line with President Bola Tinubu's directive.

 

Presenting the NDDC aggregate expenditure of N1.911 trillion, tagged "Budget of Renewed Hope Agenda," before the Senator Asuquo Ekpenyong, APC, Cross River South-led Senate Committee on NDDC, the Managing Director, CEO of the interventionist agency, Samuel Ogbuku, said that the proposed revenue brought forward stands at 12,000,000,000; arrears owned by the Federal Government and recoveries by Federal Government Agencies are N170,000,000,000; and borrowings are N1,000,000,000:000.

 

 

Further breakdown by Ogbuku shows that part of the proposed revenue will be Federal Government Contribution, which is put at N324,800,000,000; Ecological Fund is N25,000,000,000; Oil Companies Contributions will be N375,000,000,000; and Internally Realized Income is N5,000,000,000.

 

Giving a breakdown of the agency's proposed expenditures, the Managing Director said that personnel is 38,545,349,193; overhead is N29,246,506,753; internal capital is put at 8.785, 4,31; legacy projects funded through borrowing are 1,000,000,000; and Projects (development) are N835,227,569,924.

 

The Managing Director told the Senators that his administration was committed to payment of legacy debts because they are for the welfare of the people in the Niger Delta, and for this, N100 billion has been earmarked to begin payment of legacy debts, adding that in 10 years, the commission would have offset the legacy debts.

 

 

Ogbuku said, "In order to also manage our indebtedness, because our indebtedness is not only towards paying contractors, it also gives us credibility in the budget due to the partnerships we tend going into. For the purpose of compliance, international organizations, they want to see your process of repayment of your debt.

 

"It is based on that we made a provision for payment of legacy debt in the budget. What we have there is about a hundred billion, which we believe if we phase out this, maybe in the next 10 years, we should have been able to pay off most of all these legacy debts. Some of these debts are even 20 years old.

 

Some of them are 15 years old, but they are not debts you can pay in one year. So we just want to face them within a period of may be 10 years. That's why we made that estimate provision.

 

 

"But I think we are here before you. Appropriation is in your hands. It is left for you and us to agree. If that is enough or if it is too much, we can all manage it together. But we can all work together to ensure that our indebtedness is reduced and it is well managed.

 

"We are sure, you saw, we are very, very committed in repayment of our debts. Because most of the people that did these jobs are people from the region. So we cannot also have a commission that also want to increase our people, but the commission should rather be able to bring happiness, joy to the people of the Niger Delta, and we are committed to that."

 

On the performance of 2023 budget, Ogbuku said, "an aggregate revenue of 876 billion naira was projected to fund the 2023 Budget "Budget of Rewind to Rebirth. This comprises overhead costs of N17.4 billion, personnel cost of N134.2, internal capital costs of N83.7 billion, and capital costs of N820.5 billion.

 

"As of April 30th, 2024, the Commission's actual aggregate revenue inflow was N683.2 billion Naira, approximately 78 percent of the targeted N876 billion Naira. This comprises N146.4 billion representing (122%) from the Federal Government and N394.5 billion (141%) from oil & gas companies. We had a cary forward of N105 billion from 2023, representing 2117%.

 

"Despite the challenges, we continue to meet our obligations. Please find attached to our submission the Budget Performance Report and Budget Implementation Report, with detailed payments, percentage of work done, and jobs awarded during the period."

 

Speaking further on the 2024 Budget, he said, "In the area of infrastructure, we came up with * Operation Light Up Niger Delta Region"; this has seen a reasonable number of the communities being lit up using solar-powered street lights, which have boosted the economic activities of communities at night.

 

"in response to the frequent flooding challenges faced by Niger Deltans. We have commenced construction of Multipurpose Emergency Shelter with a capacity of over 1000 accommodations, designed to serve as a refuge during flood emergencies. The facility includes essential amenities such as a school, hospital, cafeteria, police post, and recreation centre, aimed at providing comprehensive support to the community.

 

"The budget being presented today is a product of participatory budgeting process that involves vanous stakeholders within and outside the region. It is the foundation upon which we shall erect the future of the Niger Delta Region. The budget is going to be funded through statutory provision and borrowings to curb the inflation rate and ensure that quality projects are delivered to the Region on time.

 

"The proposed budget seeks to move the Commission from transaction to transformation, and it ig a product of participatory budgeting process that involves all the major stakeholders in the Niger Delta Region with the theme "Budget of Renewed Hope Agenda."

 

 

"In preparing the 2024 budget, our primary objective has been to sustain our robust foundation for sustainable economic development. An aggregate expenditure of N1.911 trillion is proposed for the Niger Delta Development Commission in 2024 on assumptions of revenue as follows:

 

"Accordingly, to this end, we are in partnership with the Industrial Training Fund to gainfully engage the youth of the region to reduce crime, economic sabotage, and also with the Niger Deka Chamber of Commerce, Trade, Mines, and Agriculture (NDCCTIMA). Several organisations and state governments have approached the Commission for partnerships, and we are currently engaging them to fine-tune the process.

 

"The main emphasis will be the completion of as many ongoing legacy projects that have advanced greatly. It is our expectation that by the end of the 2024 fiscal year we would have completed more than 200km of roads across the NDR, as we understand that our people have different expectations on the budget of NDDC and they believe the Commission will respond to all their demands. However, the reality is that resources are limited and no Budget can ever meet and satisfy the yearnings of each and every member of the rural communities. We can only devote our efforts to providing support for the needs of the greater number of our people.

 

"Our fiscal reforms shall introduce new performance management frameworks to regulate the overhead costs. Accordingly, only activities that are tied to measurable programmes will be approved. We have moved away from the previously line item budgeting system to sectoral allocation of funds to encourage performance, and we are confident that this will shore up productivity."

 

In his remarks, Chairman of the Committee, Senator Ekpenyong, warned against late submission of the budget of the NDDC, saying that next year's budget must be sent early to meet January to December budget cycle, noting that although the budget was brought late, the NDDC has recorded salient achievements like 'light up Niger Delta'.

 

He said, "I hope that the 2024 budget will consolidate on already existing projects. I commend the NDDC's scholarship programme."

 

- Vanguard.

 

 

 

 

Mozambique: Govt Denies Debt to Ex-SNASP Members

Maputo — Mozambique's Minister for Veterans' Affairs, Josefina Mpelo, has categorically denied that the government owes vast sums in compensation to former members of the now disbanded security service, SNASP.

 

Hundreds of mostly elderly former SNASP employees had camped for a week outside the United Nations offices in Maputo, demanding that the supposed debt be paid, until they were forcibly dispersed by the police last Tuesday.

 

It is not at all clear why the former SNASP members think they are still owed large sums decades after SNASP ceased to exist.

 

Mpelo told reporters that no money is owing. "The government, through the Ministry of Veterans' Affairs, paid the pensions, including seven years of compensation', she said.

 

 

The former SNASP members, according to a report in Monday's issue of the independent daily "O Pais', retorted that the minister "doesn't know what she's talking about'.

 

A representative of the ex-SNASP protestors, Adolfo Beira, declared "we can prove that we did not receive what she claims we received'.

 

The protestors say they were each promised five million meticais (about 78,000 US dollars, at today's exchange rate) but only received 280,000 meticais.

 

Beira said "this matter did not begin with this Minister', but with her predecessors (such as Mateus Kida and Eusebio Lambo).

 

"We never said we were not paid', added Beira. "They paid us crumbs which are not even a hundredth part of what was promised'.

 

He recommended that the Minister study the dossier on their demands. He also claimed that former President Armando Guebuza and the then head of the armed forces, Gen Lagos Lidimo, had shown no interest in solving the problem.

 

Beira made veiled threats. "We are organized, and it is up to them to solve the matter for better or worse. We are organized to make our claims peacefully, but if they prefer the use of force, we are also prepared for that'.

 

 

 

 

Singapore Airlines turbulence victims offered payout

Singapore Airlines has apologised and offered to pay compensation to passengers injured in extreme turbulence incident

Singapore Airlines has offered to pay compensation to those who were injured on a London to Singapore flight that encountered severe turbulence.

 

The airline said it was offering to pay $10,000 (£7,800) to those who sustained minor injuries, in a Facebook post.

For passengers with more serious injuries, the airline is providing "an advance payment of $25,000 to address their immediate needs" and further discussions to meet "their specific circumstances".

A 73-year-old British passenger died and dozens more were injured when flight SQ 321 encountered turbulence over Myanmar and was diverted to Thailand in May.

Singapore Airlines has not yet responded to a BBC News request for further information on how many people will be entitled to the payments.

More than a hundred people who had been on SQ 321 were treated in Bangkok hospital after the incident.

Early investigations showed that the plane accelerated rapidly up and down, and dropped around 178ft (54m) over 4.6 seconds.

Passengers described how crew and those not wearing seatbelts were sent flying and slammed into the cabin ceiling.

'Screaming in agony': Passengers recall horror onboard flight

A hospital in Bangkok where passengers are being treated said there were spinal cord, head and muscle injuries.

There were 211 passengers - including many Britons, Australians and Singaporeans - and 18 crew on board the Boeing 777-300ER aircraft at the time of the incident.

The company said it would offer a full fare refund to all passengers on the flight, including those who did not suffer any injuries.

On top of this, Singapore Airlines said passengers will received delay compensation in accordance with European Union or United Kingdom regulations.

The airline also offered S$1,000 ($739; £580) to all passengers to cover immediate expenses and it arranged for loved ones to fly to the Thai capital where requested.

Under international regulations, airlines must offer compensation when passengers are injured or die while on a plane.

The incident brought attention to seatbelt practices, as airlines usually allow passengers to undo their belts during normal cruise conditions.-BBC

 

 

 

 

Mini China parts probe expanded by US Senate panel

The head of the US Senate Finance Committee has expanded an investigation of BMW after the car maker was found to have imported vehicles to America that contained banned Chinese parts.

 

In a letter to BMW North America, Senator Ron Wyden, asked whether it had stopped importing components suspected of being made by people from China's Uyghur minority group in forced labour conditions.

BMW Group did not immediately respond to a request for comment.

Last month, BMW said it had "taken steps to halt the importation of affected products".

It came after a two-year long investigation by Senator Wyden's staff revealed at least 8,000 BMW Mini Cooper cars with banned parts had been imported into the US.

The report found that the cars contained components made by Chinese firm Sichuan Jingweida Technology Group (JWD).

"Is BMW certain that it is not currently importing vehicles containing components produced by JWD?", Senator Wyden's letter said, asking for answers by 21 June.

Other car makers named in the report included Jaguar Land Rover and Volkswagen.

The US Congress passed the Uyghur Forced Labor Prevention Act (UFLPA) into law in 2021.

The legislation is aimed at preventing the import of goods from China's north-western Xinjiang region where most Uyghurs live.

JWD was added to the UFLPA Entity List in December 2023, which means its products are presumed to be made with forced labour.

China has has faced accusations of detaining more than one million Uyghurs in Xinjiang against their will in recent years.

Beijing has rejected all allegations of human rights abuses in Xinjiang.

The Chinese Foreign Ministry has denounced the UFLPA saying it "harms the survival and employment rights of the people in Xinjiang".-BBC

 

 

 

 

Why the EU might be about to make Chinese electric cars more expensive

With China accused of selling electric cars at artificially low prices, the European Union is widely expected to hit them with tariffs this week.

 

The BYD Seagull is a tiny, cheap, neatly styled electric vehicle (EV). An urban runabout that won’t break any speed records, but nor will it break the bank.

In China, it has a starting price of 69,800 yuan ($9,600; £7,500). If it comes to Europe, it is expected to cost at least double that figure due to safety regulations. But that would still be, by electric car standards, very cheap.

For European manufacturers that is a worrying prospect. They fear the little Seagull will become an invasive species, one of a number of Chinese-built models poised to colonise their own markets at the expense of indigenous vehicles.

China’s domestic auto industry has grown rapidly over the past two decades. Its development, along with that of the battery sector, was a major component of the “Made In China 2025” strategy, a 10-year industrial policy launched by the Communist Party in Beijing in 2015.

The result has been the breakneck development of companies like BYD, now vying with Tesla for the title of the world’s biggest manufacturer of electric vehicles. Established giants such as SAIC, the owner of the MG brand, and Volvo’s owner Geely, have also become big players in the EV market.

Last year, more than eight million electric vehicles were sold in China – about 60% of the global total, according to the International Energy Agency’s annual Global EV Outlook.

For policymakers in Europe and the US, however, this is a cause for concern. With Chinese brands having plenty of surplus capacity and moving into international markets, they fear their own companies will be unable to compete. They claim hefty subsidies for domestic production allow Chinese firms to keep prices at a level other firms will struggle to match.

According to a report by the Swiss bank UBS, published in September, the Chinese advantage is real. It suggested that BYD could produce cars at some 25% lower cost than the best of the legacy global carmakers.

It said BYD and other Chinese firms were “set to conquer the world market with high-tech, low-cost EVs for the masses”.

Meanwhile, earlier this year, the Alliance for American Manufacturing warned that the introduction of cheap Chinese cars could be an “extinction-level event” for the US auto industry. It called for a “dedicated and concerted effort to turn those imports back”, concluding that there was “no time to lose”.

Last month, the US took decisive action. The Biden administration raised its tariff on imports of Chinese battery-powered cars from 25% to 100%. Sales of Chinese-made EVs in the US are currently negligible; with the new tariffs, they are likely to stay that way.

The move was part art of a wider package of measures targeting imports from China that has been condemned by Beijing as "naked protectionism".

At the same time, the US is subsidising its own car industry, through tax incentives that make domestically-produced vehicles cheaper to buy.

The EU appears to be taking a more moderate approach, despite tough rhetoric.

In her state of the Union address in September last year, the European Commission president Ursula von der Leyen announced an investigation into Chinese imports.

“Global markets are now flooded with cheaper Chinese electric cars," she said.

“Their price is kept artificially low by huge state subsidies. This is distorting our market.”

The initial results of that investigation are now imminent.

It is widely expected that the Commission will provisionally raise duties on EVs imported from China, from the standard level of 10% for third country imports to between 20 and 25%.

 

Getty Images Ursula von der LeyenGetty Images

Ursula von der Leyen has accused China of selling EVs for artificially low prices

According to Matthias Schmidt of Schmidt Automotive Research, this would be a rather more proportionate response than the US move.

“The 100% tariff is just pure protectionism, regressive and stifles innovation, and prevents a competitive landscape for the consumer," he says.

“If the EU imposes tariffs of no more than 25%, it will be more about levelling the playing field, and evening out the 30% cost advantage Chinese manufacturers have."

Nevertheless, tariffs could hurt European companies as well as helping them.

Firstly, they would not just affect Chinese brands. For example, BMW’s iX3 electric SUV is built at a factory in Dadong and exported to Europe. The company also intends to import large quantities of Chinese-made electric Minis.

Both models would be subject to the tariffs, leaving the manufacturer to absorb the extra cost, or raise prices. The US manufacturer Tesla would also be affected, as it builds cars in Shanghai for export to Europe.

Secondly, although European makes have invested heavily in production in China in recent years, in partnership with local manufacturers, a number of them still export high-value models to Chinese markets.

If China wanted to retaliate by imposing its own hefty tariffs, these shipments could be targeted.

Getty Images A BMW i5 electric carGetty Images

European carmakers are worried about retaliatory moves by the Chinese government

 

Small wonder then, that executives at European carmakers have been distinctly lukewarm about the EU’s initiative.

Earlier this year, Volkswagen Group’s chief executive Oliver Blume warned that the introduction of tariffs was “potentially dangerous”, because of the risk of retaliation.

Last month BMW boss Oliver Zipse told investors “you could very quickly shoot yourself in the foot” by engaging in trade battles, adding “we don’t think that our industry needs protection”.

Ola Källenius, chief executive of Mercedes-Benz has gone a step further, publicly calling for tariffs on Chinese EV imports to be lowered rather than raised, to encourage European companies to do a better job.

Support for the EU investigation has largely come from France. Yet even among French manufacturers, there is doubt as to whether tariffs are the correct approach.

Carlos Tavares, head of the Stellantis group which includes Peugeot, Citroen, Vauxhall/Opel and DS, has described them as “a major trap for countries that go down that path”.

He has warned that European carmakers are in a "Darwinian" struggle with their Chinese rivals, something that is likely to have social consequences as they pare back costs in an effort to compete.

Renault’s chief executive Luca de Meo, meanwhile, says “we are not in favour of protectionism, but competition must be fair”.

He has called for the adoption of a strong European industrial policy to promote the sector, taking inspiration from policies launched by the US and China – in an effort to compete with both.

Meanwhile, the UK is looking on with interest. The head of the country’s trade watchdog, the Trade Remedies Authority, has previously made it clear he would be ready to set up an investigation into Chinese EVs, if ministers or the industry wanted it.

So far it is understood no such request has been made. Ultimately, as a deeply political issue, it will be something for the next government to address, after the election.

What higher tariffs may give Europe is more time for both car manufacturers and policymakers to adapt to the challenge from China.

But many within the industry acknowledge that if Europe is to remain a major player in the global automotive sector, it will have to do much more than simply set up barricades at home.-BBC

 

 

 

 

Apple brings ChatGPT to iPhones in AI overhaul

Apple is to boost its Siri voice assistant and operating systems with OpenAI's ChatGPT as it seeks to catch up in the AI race.

 

The iPhone maker announced the Siri makeover along with a number of other new features at its annual developers show on Monday.

It is part of a new personalised AI system - called "Apple Intelligence" - that aims to offer users a way to navigate Apple devices more easily.

Updates to its iPhone and Mac operating systems will allow access to ChatGPT through a partnership with developer OpenAI.

ChatGPT can also be used to boost other tools, including text and content generation. The test version will become available in the autumn.

Tim Cook, Apple chief executive, said the move would bring his company's products "to new heights" as he opened the Worldwide Developers Conference at the tech giant's headquarters in Cupertino, California.

What is AI and how does it work?

The announcement was not welcomed by all. Elon Musk, the owner of Tesla and Twitter/X, threatened to ban iPhones from his companies due to "data security".

"Apple has no clue what's actually going on once they hand your data over to OpenAI," Mr Musk said on X. "They're selling you down the river."

Apple has faced pressure to introduce new AI features to its products after the rapid rise of rivals who have adopted the technology.

After it was usurped by Microsoft as the world's most valuable company in January, Apple was overtaken again by Nvidia in early June.

Ben Wood, chief analyst at CCS Insight, said that while Apple's new personal AI system "should help placate nervous investors", its ChatGPT integration may reveal and create deeper problems for the firm.

"Arguably this sees Apple admitting its limitations given ChatGPT will kick in at a point where Siri is no longer able to help a user," he told the BBC.

Apple has been largely absent in the avalanche of AI products released by tech firms in recent months.

Mr Cook told investors in 2023 that the company would approach the tech with care. On Monday, those plans were finally laid out.

What is 'Apple Intelligence'?

“Apple Intelligence” is not a product nor an app in its own right.

It will become part of every app and Apple product customers use - whether it’s a writing assistant refining your message drafts or your diary being able to show you the best route to get to your next appointment.

In that sense, it is similar to Microsoft's AI assistant Copilot – but you won’t have to pay extra to activate it.

Siri, the voice assistant Apple acquired in 2010, has been refreshed with a new interface and chattier approach to help users navigate their devices and apps more seamlessly.

Apple was keen to stress the security of Apple Intelligence during Monday's keynote.

Some processing will be carried out on the device itself, while larger actions requiring more power will be sent to the cloud - but no data will be stored there, it said.

This is vital to customers who pay premium prices for Apple's privacy promises.

The system "puts powerful generative models right at the core of your iPhone, iPad and Mac," said Apple senior vice president of software engineering Craig Federighi.

"It draws on your personal context to give you intelligence that's most helpful and relevant for you, and it protects your privacy at every step."

What does OpenAI and Apple deal mean?

Apple's decision to integrate OpenAI’s ChatGPT tech had been widely anticipated but it is an unusual move for a company that so closely guards its own products.

Google and Microsoft have recently faced scrutiny over errors made by their AI products in recent months, with the search giant rolling back a new feature in May after its erroneous answers went viral.

For years Apple also refused to allow its customers to download any apps outside of the App Store on the grounds that they might not be secure, and would not allow any web browser other than its own Safari for the same reason.

It only changed when forced to by EU legislation.

Is it a sign of recognition that even Apple can’t compete with ChatGPT right now?

If so, it tells us a lot about the current power of the AI supergiant OpenAI.

The firm did say it would integrate other products in future, but did not name any.

Apple announced that its mixed reality headset, the Vision Pro, will go on sale in the UK on 12 July. It has been available in the US since February.

Other new features announced on Monday include:

sending texts via satellite

scheduling messages to send at a later point

using head gestures (nodding for yes or shaking head for no) to control AirPods Pro

a dedicated app for passwords that is accessible across devices

the ability to hide certain apps or lock them away behind Face ID or passcodes.-BBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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

Email:                <mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com

Website:             <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:                  <http://www.bullszimbabwe.com/blog> www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:           <http://www.facebook.com/BullsBearsZimbabwe> www.facebook.com/BullsBearsZimbabwe



 

 

 


 

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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 141517 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 34917 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65573 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240611/9f30658c/attachment-0001.obj>