Major International Business Headlines Brief::: 24 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:::  24 June 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: We'll Sanction Civil Servants Receiving Salaries After
Relocating Abroad - Tinubu

ü  Nigeria: Govt to Commence Construction of Additional 2,000 Housing Units
in 8 States

ü  Nigeria: InfraCredit Secures AfDB's $15m Facility to Support
Infrastructure Financing in Nigeria

ü  Kenya: Ethiopian Cuts KQ Dominance On Nairobi-Lusaka With Launch of
Zambia Airways

ü  Gambia: Electricity Scarcity - NAWEC Provides Timeline to Resolve
Problems

ü  Kenyan Leaders Under Fire in Lengthy X-Space Debate Over Finance Bill
2024

ü  Kenya: Netizens Rally Against Finance Bill With Brief Ruto Appearance At
X Forum

ü  South Africans Score Their Government Poorly On Its Economic Performance

ü  Ethiopia: New VAT Amendment Sparks Heated Debate Over Taxing Essential
Services

ü  Ghana: Rising Costs of Locally Produced Food Drive Ghana's Food Inflation

ü  Criminal charges recommended against Boeing - reports

ü  China and EU to hold talks on electric car tariffs

ü  Huge Saudi construction projects 'might get scaled down'

ü  UK's richest family convicted of exploiting servants

 


 <mailto:info at bulls.co.zw> 

 


Nigeria: We'll Sanction Civil Servants Receiving Salaries After Relocating
Abroad - Tinubu

President Bola Tinubu has criticised civil servants who still receive
salaries without formally resigning, despite relocating abroad were.

 

The president, who delivered the rebuke Saturday night at the 2024 Civil
Service Award and Gala Night, said not only will the culprits refund money
taken illegally, theirsupervisors and heads of department must also be
punished for aiding and abetting the fraud on their watch.

 

Tinubu equally honoured a civil servant, Odii Ndubuisi Barry, a GL 17
Director, with the Ministry of Humanitarian Affairs with a Presidential
Civil Service Merit Award for coordinating the movement of the Nigerian team
and international solicitors during the litigation between Nigeria and
Cameroon over Bakassi, as a protocol officer to the National Boundary
Commission.

 

 

Represented at the occasion by the Secretary of the Government of the
Federation, Senator George Akume, Tinubu urged those in charge to ensure
that the culprits were held accountable and the funds illegally paid
recovered.

 

He further vowed their supervisors and heads of the complicit departments
must also be punished for abetting the scam under their watch.

 

"During my recent visit to South Africa, I kept abreast of the week's
activities and was particularly struck by the revelations shared by the Head
of the Civil Service regarding employees who had relocated abroad while
drawing salaries without formally resigning.

 

"It is heartening to hear that measures have been taken to address this
issue, but we must ensure those responsible are held accountable and
restitution is made.

 

 

"The culprits must be made to refund the money they have fraudulently
collected. Their supervisors and department heads must also be punished for
aiding and abetting the fraud under their watch," Tinubu said.

 

According to the president, the Civil Service as the bedrock, engine,
locomotive of government, was necessary for the government to deliver public
goods to citizens.

 

He said it could not be a workplace, where anything is possible and where
workers violate rules without the fear of punishment or repercussion,
stressing that the civil service of any nation was too important for such
misconduct to take root or be tolerated.

 

His words: "Those who say that a nation is as good as its civil service are
close to the truth. You are the real establishment that remains to pilot
government affairs as we politicians come and go."

 

Tinubu said over the decades, successive governments, which initiated
various National Development Plans and programmes, relied on the civil
service to translate such plans into high-impact programmes and projects
across all sectors of the nation's economy.

 

 

While determined to continue the legacy, the president asserted that over
the past year, he had provided all the necessary support to the Head of the
Civil Service of the Federation to ensure the continued stability of the
civil service and to implement far-reaching policies and reforms capable of
improving efficiency and service delivery.

 

He noted that last year, the administration approved the implementation of
the civil service reforms in the Federal Capital Territory Administration,
resulting in the FCT Administration now having its civil service commission,
Head of Service and six permanent secretaries.

 

He said it was heartwarming to note that the Federal Civil Service was
driving a strategic plan that aligned with the priorities of the
administration's Renewed Hope Agenda.

 

Tinubu, therefore, commended the dedication of the Head of Service of the
Federation, Dr. Folasade Yemi-Esan, in steering reforms towards creating a
world-class service that upholds meritocracy and excellence.

 

He urged swift implementation of the reforms by ministers, permanent
secretaries and chief executives within their respective ministries, adding
their commitment to delivering on the Renewed Hope Agenda demanded urgency,
without compromising due process.

 

"I am aware that due process must be followed in conducting government
business but that should not give room for any form of red-tapes or
insistence on unnecessary bureaucracies.

 

"We have pledged to work for the Nigerian people, and it is critical that
all civil servants, and indeed all public servants, recognise the key role
they must play in the achievement of our national potential," he said.

 

In her keynote address, Yemi-Esan said after a rigorous selection process,
39 officers from the MDAs were deemed meritorious of the 2024 edition of the
Federal Civil Service Rewards and Recognition.

 

Each recipient got N500,000 each courtesy of the Aig-Imoukhuede Foundation.

 

The categories of awards presented were: Presidential Distinguished Public
Service Career Award; Presidential Civil Service Merit Award; Head of the
Civil Service of the Federation Award; Public Service Excellence Award and
2024 Sports Achievement Award.

 

The star prize, a brand new 2023 JAC JS4 SUV was won by Dr. Mrs Mercy
Olanike Ilori, a Director at Ministry of Transportation for facilitating the
development of the ministry's FCCCSIPS ecard and for championing the
implementation of the Performance Management System (PMS) in her ministry.

 

- This Day.

 

 

 

Nigeria: Govt to Commence Construction of Additional 2,000 Housing Units in
8 States

Abuja — The Minister of Housing and Urban Development, Ahmed Dangiwa,
yesterday announced that the federal government was set to officially
flag-off construction work for additional 2,000 housing units in eight
states in the South and North-Central zones of the country.

 

A statement from the minister's spokesman, Mark Chieshe, said that this is
in continuation of the groundbreaking ceremonies for Renewed Hope Cities and
Estates, which began earlier.

 

He listed the states slated for the exercise to include: Ebonyi, Abia, Akwa
Ibom, Delta, Osun, Oyo, Benue and Nasarawa.

 

The nationwide groundbreaking exercise, he said, is sequel to the official
launch of the housing programme by President Bola Tinubu in February 2024,
with the inauguration of 3,112 housing units in Karsana, Abuja.

 

 

It is also following the successful groundbreaking of 1,500 housing units in
five states in the north comprising: Katsina, Yobe, Gombe, Sokoto and Kano
from May 22 to 25, 2024.

 

The schedule for the flag-off of construction activities will begin with 250
housing units in Ebonyi on Wednesday, June 26, 2024, followed by 250 units
in Abia on Thursday, June 27 2024; 250 units in Akwa Ibom on Friday, June
28, 2024; and 250 units in Delta State on Saturday June 29, 2024.

 

Others are 250 units apiece in Osun, Oyo, Benue and in Nasarawa, bringing
the total to 2,000 housing units in the eight states.

 

According to the statement, this brings the total number of units under the
Renewed Hope Cities and Estates Programme since the official launch in
February to 6,612.

 

 

"All the housing projects are scheduled to be completed and commissioned by
the end of 2024 in line with the commitment of the minister to ensure
housing projects are speedily completed and occupied by Nigerians who need
them.

 

"Each Renewed Hope Estate in Ebonyi, Akwa Ibom, Abia, Delta, Osun, Oyo,
Benue, and Nasarawa will comprise 50 units of one-bedroom semi-detached
bungalow, 100 units of 2-bedroom semi-detached bungalow, and 50 units of
3-bedroom semi-detached bungalow," the statement added.

 

It quoted Dangiwa as saying that: "The houses will be built in line with
approved organic designs to allow eventual off-takers expand from one
bedroom to two bedrooms, and from two bedrooms to three bedrooms as incomes
increase over time. The design was adopted to enhance affordability for
Nigerians."

 

The 2,000 housing units, Dangiwa said, are being funded under the 2023
supplementary budget of the federal ministry of housing and urban
development.

 

The minister assured state governments that the housing programme is
designed to cover all states of the federation and those not captured under
the supplementary budget will be taken care of under the 2024 budget.

 

The 2,000 housing units are estimated to create about 50,000 skilled and
unskilled jobs in the states at an average of 25 jobs per unit, the minister
stressed.

 

"Beyond providing shelter for low-and-medium-income Nigerians, housing
construction is a major stimulus for the local economy, creating jobs,
supporting livelihoods, and developing the larger economy," Dangiwa said.

 

The housing projects also seek to promote inclusivity and integration and
address inequalities by providing a broad range of affordable homeownership
options.

 

These, it said, include single digit and up to 30-year mortgage loans to be
provided by the Federal Mortgage Bank of Nigeria (FMBN).

 

They also include rent-to-own options where beneficiaries can move in and
pay towards homeownership in monthly, quarterly, or annual instalments and
outright purchase for high income earners.

 

- This Day.

 

 

 

Nigeria: InfraCredit Secures AfDB's $15m Facility to Support Infrastructure
Financing in Nigeria

InfraCredit, an 'AAA' rated specialised infrastructure credit guarantee
institution, has announced the successful completion of a $15 million
subordinated unsecured 10-year facility with the African Development Bank
Group (AfDB).

 

The strategic partnership marks the second investment by AfDB in
InfraCredit, following an initial $10m facility in 2020.

 

Director General, African Development Bank Group, Mr. Lamin Barrow, who
expressed the Bank's satisfaction with the operation, said, "Our support to
institutions such as InfraCredit clearly demonstrates the importance of
promoting innovative and scalable solutions to leverage pools of capital
from domestic institutional investors, and position local capital markets as
viable alternative source of long-term funding to bridge the continent's
huge infrastructure deficit."

 

 

Specifically, the $15m facility strengthens InfraCredit's capital base and
supports its mission to bridge Nigeria's infrastructure financing gap. The
facility will boost private sector financing for critical infrastructure
projects across sectors such as power, renewable energy, telecommunications,
healthcare, green housing, and transportation.

 

Following this facility investment, InfraCredit's funded capital base will
increase to $187m (c. N264 billion). This investment by AfDB underscores its
confidence in InfraCredit's robust business fundamentals and commitment to
sustainable development.

 

By leveraging domestic capital markets, InfraCredit aims to deepen the local
debt capital market, attracting long-term investors and fostering economic
growth.

 

 

This investment aligns with AfDB's support for InfraCredit's Clean Energy
Transition Strategy and Roadmap, as well as InfraCredit's green finance
achievements. It reflects AfDB's commitment to promoting low-carbon
development and climate mitigation by leveraging private sector climate
finance.

 

Over the past 7 years, InfraCredit's guarantees have facilitated access to
N218bn ($445m) in local currency finance for 12 first-time issuers and over
20 infrastructure projects. InfraCredit's support enabled Nigeria's first
15-year green infrastructure bond and extended corporate bond tenors beyond
market norms to 20 years.

 

Chief Executive Officer of InfraCredit, Chinua Azubike, said: "We are
delighted by AfDB's confidence in our business model, which has successfully
facilitated private sector investment in impactful infrastructure projects
and InfraCredit's clean energy roadmap that has accelerated green finance
for climate-aligned infrastructure, fostering SME growth, job creation,
sustainable energy access, and overall economic development.

 

"Despite challenging market conditions, we have consistently demonstrated
strong fundamentals, solid portfolio performance, a proven track record and
profitability.

 

"The further expansion of our capital base by this facility will bolster our
ability to support access to long-term local currency domestic credit for
our rapidly growing pipeline of infrastructure projects currently worth over
N839bn ($579m), fostering job creation and economic growth."

 

- Daily Trust.

 

 

 

 

Kenya: Ethiopian Cuts KQ Dominance On Nairobi-Lusaka With Launch of Zambia
Airways

Zambia Airways is poised to launch direct flights between Nairobi and Lusaka
on June 27, effectively disrupting Kenya Airways' monopoly on the route.

 

Zambia Airways, backed by a 45 percent stake from Ethiopian Airlines, aims
to reshape the aviation landscape along this South African corridor.

 

The carrier will operate a three-weekly flight from its base at Kenneth
Kaunda International Airport to Kenya's JKIA. With an introductory offer of
Ksh62,000 for a return ticket.

 

KQ, which has daily flights on the route, is currently charging an average
of Ksh90,000 for a return ticket to the destination.

 

 

For years, Kenya Airways has held sway over the Nairobi-Lusaka route, with
direct flights serving as a cornerstone of its regional strategy.

 

Additionally, KQ has firmly established its presence in the southern part of
Zambia, with direct connections to the resort city of Livingstone.

 

The entry of Zambia Airways into this market signals a significant shift.
Ethiopian Airlines, renowned for its quick expansion initiatives, secured a
shareholding agreement with Zambia's principal development agency in 2019,
committing an initial investment of $30 million to revive the southern
African nation's flag carrier.

 

Ethiopian Airlines' ascent to the forefront of Africa's aviation sector has
been remarkable, surpassing regional rivals like Kenya Airways and South
African Airways in revenue and profitability.

 

Notably, Ethiopian Airlines has been actively acquiring shares in other
African carriers as part of its strategy to gain a competitive edge,
particularly against formidable rivals from the Gulf region.

 

Under the revival plan, Zambia Airways, dormant for over two decades since
its liquidation in 1994, aims to operate a fleet of 12 aircraft by 2028.

 

Ethiopian Airlines, in collaboration with Zambia's state-owned Industrial
Development Corporation (IDC), agreed to take a 45 percent stake in the
revamped Zambian carrier, with Zambia retaining the majority share of 55
percent.

 

- Business Day Africa.

 

 

 

Gambia: Electricity Scarcity - NAWEC Provides Timeline to Resolve Problems

Pateh Sowe, Operating Officer at the NAWEC Distribution Centre, Friday said
the company is implementing projects capable of addressing the troubles
being faced in the electricity supply system.

 

He said NAWEC has since 2017 been working with the World Bank to ensure that
they have a network that is fit for purpose.

 

"Looking at what we are operating in The Gambia, we have only distribution
system - we don't have transmission at different levels. We distribute and
transmit at the same time. Any problem we have on the system would trigger
an outage and that is not fit for purpose," Sowe said.

 

He said there should be a system for transmission and distribution done at
another level. He added that NAWEC is not using a system that operates in
that way.

 

 

Sowe explained thar NAWEC initiated certain projects to address this
problem, but they were delayed because of "safeguard issues." He pointed out
that the 225 Project seeks to establish 6 distribution lines, but the
project delayed because certain people are refusing to be compensated.

 

He stated that once they implement it, then there will be stability because
transmission and distribution will be handled at different levels.

 

"When a fault occurs in one line, you will have stability in the other
lines," he said.

 

The operating officer, Pateh Sowe, said the current system being used is not
fit for purpose.

 

"When there is a fault in one, the other systems will not operate," he said.

 

 

He indicated NAWEC's desire to commission the 225 Project in 2024. He
decried that some of the distribution installations were done in the 1960s
and 1980s. He said they were built for standby generators for homes.

 

"This is what has been expanded. A standby system that has been expanded to
take care of an entire nation over time, the adequate infrastructure is not
in place," he said.

 

He also discussed the challenges in the transmission system. He said they
have embarked on projects to improve the capacity of transmission. He added
that they are upgrading the transformers.

 

"This project has started and it is at an advanced stage. We will be able to
at least evacuate all the power we have within the system," he said.

 

On electricity expansion, he mentioned 5 projects they are implementing to
ensure every Gambian have access to electricity by 2025.

 

"If you don't have it in your house, your community will have access to
electricity. We are electrifying the entire Gambia by 2025. These are all
committed projects that are in implementationn stage," he said.

 

Sowe said NAWEC wants to ensure reliability and quality in their services.
He added that they now have a National Control Centre (NCC) that will be
responsible for monitoring and controlling of the system using digital
means. He explained NAWEC used transport and fuel to get to places to solve
problems, but with the new system, they will be operating digitally from the
NCC. He said they want to continue investing in renewable energy, which is
sustainable and cheaper than the fossil fuel they purchase using hard
currencies.

 

Foroyaa asked NAWEC to detail the electricity demand in terms and what they
are able to supply to the people.

 

Pateh Sowe said the current demand is 100 megawatts.

 

"The current load demand is 100 megawatts. We have 30 megawatts from
Karpower, 50 megawatts from NAWEC own production and we are importing 50
megawatts from Senelec. Meaning, the available capacity is enough for the
connected areas. Our problem is the network," he said.

 

He said the 225 Project should have been commissioned in 2022, but the
project delayed because of "safeguard issues", people are refusing to take
compensations and budgetary issues among others.

 

"The capacity available is there, but the offloading capacity is where the
problem is and that is what we are working on," he said.

 

- Foroyaa.

 

 

 

Kenyan Leaders Under Fire in Lengthy X-Space Debate Over Finance Bill 2024

Nairobi — Kenyan leaders and government supporters faced sharp criticism on
Saturday from thousands of Kenyans online for endorsing the proposed Finance
Bill 2024 while neglecting the country's challenges.

 

The Bill passed Thursday seeks to raise taxes in most commodities and
sectors further making life hard for most Kenyans.

 

In a heated online discussion that spanned over seven hours with more than
60,000 participants, including senior officials, speakers accused leaders of
misusing taxpayer funds instead of improving citizens' lives.

 

Among those in the Twitter Space were Roads Cabinet Secretary Kipchumba
Murkomen and Senate Majority Leader Aaron Cheruiyot, who faced scrutiny for
alleged fiscal mismanagement and taxation burden on Kenyans.

 

The X-Space was a culmination of street protests last week in various parts
of the country, including Nairobi where at least two protesters were shot
dead by police.

 

 

Participants reiterated their unwavering stance in defending their rights,
condemning what they perceived as political intimidation. Popular influencer
Amerix, known for "Masculinity Saturdays," addressed Senator Cheruiyot
directly, highlighting youth unemployment issues and criticizing the use of
public funds for charitable donations.

 

The discussion turned confrontational when Murkomen attempted to discuss the
Finance Bill but was redirected to address allegations concerning the
detained content creator Billy Simani, alias Crazy Nairobian.

 

"I have no information on Billy," Murkomen responded amidst demands to
disclose the influencer's whereabouts.

 

Government Spokesperson Isaac Mwaura and President William Ruto's Digital
Strategist Dennis Itumbi were also lambasted for their perceived role in
suppressing dissent.

 

Efforts by some participants to allow political figures to join the
conversation were met with opposition, as hosts sought to maintain focus on
grassroots voices and youth grievances.

 

 

The dialogue also drew participants from the Diaspora, critical of the
Finance Bill and advocating for job creation initiatives within Kenya rather
than exporting labor.

 

"I didn't choose Diaspora willingly; it was due to Kenya's tough
conditions," lamented one participant.

 

Amid accusations that movements like "Reject Finance Bill" and "Occupy
Parliament" were funded by individuals, participants emphasized that these
protests stemmed from genuine concerns over Kenya's economic challenges.

 

The GenZs have vowed more protests next week in what is dubbed Occupy
Parliament and State House.

 

About The Author

 

BRUHAN MAKONG

 

Bruhan Makong reports on security, human rights, and global affairs. He is
passionate about uncovering the truth, amplifying the voices often drowned
in silence, and holding those in power to account.- Capital FM.

 

 

 

Kenya: Netizens Rally Against Finance Bill With Brief Ruto Appearance At X
Forum

Nairobi — Kenyan netizens stormed X on Saturday, escalating protests against
the Finance Bill 2024 and condemning poor governance in the country.

 

The space forum organized by diverse Kenyans saw participation from
activists, members of civil society, professionals from various disciplines,
and politicians who found themselves at the center of discussion.

 

Notable political leaders who joined the forum included President William
Ruto, who exited after a few seconds amid the heated debate.

 

Other participants were Cabinet Secretaries Kipchumba Murkomen (Transport)
and Kithure Kindiki (Interior), Government Spokesperson Isaac Mwaura, and
Senate Majority Leader Aaron Cheruiyot, among others.

 

 

Generation Z, who have labeled the controversial Finance Bill 2024 punitive
and ill-timed, primarily oppose it, and have been mobilizing protests
nationwide.

 

Amid the escalating protests, President Ruto has maintained that the Bill's
benefits, once implemented, will be substantial.

 

However, the majority of Kenyans remain unconvinced, accusing him of
reneging on his campaign promise to make life more bearable.

 

Members of the National Assembly on June 20, 2024, voted in favor of the
Bill, with 204 lawmakers endorsing it to proceed to the next stage in the
Committee of the Whole House.

 

Meanwhile, 115 others opposed its passage, setting the stage for further
debate and potential amendments to its clauses.

 

During the space discussion on X, CS Murkomen was the first to face
accusations from users, who accused him of indulging in opulence at the
expense of hard-earned money from Kenyans.

 

 

"You have been a disgrace to our country. All you do is wear expensive
watches and donate millions to churches while Kenyans are suffering," one
user known as Amerix fired.

 

Another user named Shanki encouraged the electorate to ensure their voices
are heard in the 2027 elections.

 

"We need to teach these MPs who are not for the people by voting them out in
the elections," he said.

 

As of 3:24 pm EAT, the forum had attracted more than 53,000 participants,
with the number increasing as the discussion continued.

 

Davis Ayega is a versatile journalist, proficient in creative writing,
interviewing, and presenting. With a keen eye for detail, he demonstrates a
deep understanding of effective communication across diverse audiences. -
Capital FM.

 

 

 

South Africans Score Their Government Poorly On Its Economic Performance

More than eight in 10 South Africans (83%) say the country is heading in
"the wrong direction," a 37-percentage-point increase compared to 2011
(46%).

 

Fewer than two in 10 citizens (17%) describe the country's economic
condition as good, while 71% say it is bad. Close to half (45%) of citizens
rate their personal living conditions negatively. The share of citizens who
describe the country's economic condition as "fairly bad" or "very bad" has
increased by 24 percentage points since 2011. Poor citizens are far more
likely than the well-off to offer negative appraisals of the economy (81%
vs. 60%) and their own living conditions (72% vs. 18%). Only about
one-fourth (27%) of respondents expect economic conditions to improve in the
near future.

 

Overwhelming majorities are dissatisfied with the government's performance
on key economic measures, including keeping prices stable (93%), creating
jobs (90%), narrowing gaps between rich and poor (89%), and managing the
economy (81%).

 

Before the COVID-19 pandemic, South Africa's economy was growing slowly as
unemployment continued to rise and the country's world-record inequality gap
continued to widen (World Bank, 2023). The pandemic triggered a massive
economic slowdown in 2020. Severe lockdown measures intended to limit the
spread of the virus resulted in reduced economic activity and job losses
(Arndt & Robinson, 2020).

 

The country's economic revival has been slow and bumpy: Gross domestic
product growth was 1.9% in 2022 and only 0.6% in 2023 (Statistics South
Africa, 2024). While the finance and transport industries have shown
resilience and growth, most others continue to struggle (Statistics South
Africa, 2024).

 

Underlying structural challenges hamper inclusive economic growth and
exacerbate social and political pressures (Access Bank, 2022). These include
poor-quality education, a persistent skills shortage, labor-market rigidity,
deteriorating infrastructure, and escalating corruption and violence (Meyer,
2017). The Russia-Ukraine war has added higher costs of living, particularly
for essentials such as energy and staple foods.

 

 

In trying to alleviate the impact of COVID-19 on households and firms, the
South African government stepped up its spending to support small and
medium-sized enterprises with loans and introduced emergency social
transfers, which are still in place (Government of South Africa, 2020).

 

Through a newly established unit, Operation Vulindlela (2022), the
government embarked on a series of reforms to open key markets to greater
private-sector participation, including in energy, logistics, and other
network industries. Whether these reforms will be stalled or sped up under
the new coalition government remains to be seen.

 

What do South Africans say about the country's economic condition, their
personal living conditions, and the previous government's performance on
economic issues?

 

Findings from Afrobarometer's 2022 survey show that South Africans
overwhelmingly think their country is heading in the wrong direction. Fewer
than two in 10 citizens say the country's economic condition is good, and
only about one in four expect things to improve in the near future. Large
majorities give the government failing marks on key economic issues.

 

Nyasha Mpani Nyasha Mpani is project leader for the Data for Governance
Alliance Project, based at the Institute for Justice and Reconciliation.

 

Stephen Ndoma Stephen is the assistant project manager for Southern Africa

 

- Afrobarometer.

 

 

 

 

Ethiopia: New VAT Amendment Sparks Heated Debate Over Taxing Essential
Services

Addis Abeba — As the current fiscal year draws to a close, legislators have
been intensely debating a series of critical bills. These include a draft
proclamation regulating civil servants and a controversial bill that would
allow investigators to intercept communications without judicial approval in
cases of counterfeiting and terrorism financing.

 

Another key piece of legislation under consideration is an amendment to the
Value Added Tax (VAT) proclamation, first introduced in 2002.

 

This week, the House of Peoples' Representatives held a public consultation
meeting to discuss the recently introduced revised VAT bill. The proposed
legislation seeks to broaden the scope of VAT by including transportation
services as well as the supply of portable water and electricity.

 

The revised VAT bill was introduced to lawmakers shortly after Finance
Minister Ahmed Shide presented the budget proposal for the upcoming fiscal
year. This proposed budget outlines significant government spending,
totaling 971 billion birr, with the federal government aiming to collect 502
billion birr in tax revenue.

 

 

During his budget presentation, Minister Ahmed detailed plans to generate an
additional 92.5 billion birr through tax revenue adjustments. These
adjustments include amendments to current VAT and excise tax laws, along
with the implementation of new taxes such as property and green levies.

 

A lively public consultation meeting, organized by parliament on 18 June,
2024, saw stakeholders from various sectors engage in a heated debate.

 

The focus of the debate was a provision in the draft VAT bill that proposes
to include basic services within the VAT regime. Experts and officials from
the Ministry of Finance, including State Minister Eyob Tekalign, were
present to answer questions and provide clarification.

 

The proposed legislation specifically targets transportation services
provided by vehicles with less than eight passenger seats. This provision
includes services offered by taxi-hailing service providers but excludes
three-wheeled Bajaj vehicles. The bill also proposes to bring the provision
of portable water and electricity services under the VAT regime.

 

 

During the consultation, many participants pointed out a contradiction
between the proposed VAT inclusion of these services and the current legal
exemption for basic necessities. One participant argued that VAT is a
"pass-through tax," meaning businesses ultimately pass the cost onto
consumers. He also expressed concern that this policy shift could worsen
inflation.

 

A Ministry of Finance expert addressed these concerns by highlighting the
government's commitment to promoting mass transit. He explained that
individuals using smaller vehicles (seating less than eight) likely have the
means to absorb the VAT burden, while those who rely on mass transit are
typically less privileged.

 

 

Furthermore, the expert emphasized plans to exempt a baseline amount of
electricity and water consumption, enough for an average household's needs.
"Consumption exceeding this established limit would be subject to VAT," the
expert clarified. He added that the Ministry of Finance would conduct a
dedicated study to determine the precise threshold for the exemption.

 

A representative from the Ethiopian Flour and Powder Products Manufacturers
Association raised concerns about including food items like biscuits under
VAT.

 

"This primarily affects those who can't afford better food options," he
argued. "Many mothers pack their children's lunches with biscuits," he
added, highlighting the impact on essential food items.

 

The representative further pointed out that energy biscuits are a common
food source for workers in coffee-growing regions. "Taxing biscuits
contradicts the intended benefit of the tax law, which is to protect the
underprivileged," he concluded.

 

Officials clarified that the bill allows the government to exclude essential
food items. The revised bill grants the Council of Ministers the authority
to decide on these exclusions.

 

However, a macroeconomist, speaking to Addis Standard on condition of
anonymity, expressed reservations about this approach.

 

The economist argued that entrusting this decision-making power to the
Council of Ministers, already burdened with numerous pressing issues, might
not be the most efficient solution. He recommended transferring this
authority to the Ministry of Finance, which possesses the relevant expertise
and flexibility to make timely adjustments when necessary.

 

The draft legislation proposes extending the VAT regime to encompass
financial technology services, outlining a 15% VAT on many electronically
conducted transactions.

 

Representatives from Ethio Telecom and Safaricom Ethiopia raised concerns
about the limited scope of exempt on digital transactions. They argued that
this contradicts the country's vision of fostering a strong digital economy.

 

A representative from Ethio Telecom pointed out, "The revision seems to
include certain digital financial services we offer." He further argued that
including digital services under the VAT umbrella seems illogical at this
early stage, considering the sector's infancy.

 

"Ethio Telecom is currently laying the groundwork by launching select
digital services without commission charges," he explained. "Imposing VAT on
these services during this critical launch phase could be
counterproductive."

 

Representatives from both companies also sought clarification on the tax
treatment of transactions facilitated by platforms like Telebirr and M-PESA.

 

In response, Ministry of Finance experts clarified that transactions
conducted through these platforms would be exempt from VAT. However,
services provided by fintech and payment system operators in general would
be subject to VAT.

 

State Minister Eyob explained that the VAT amendment aims to integrate new
economic activities, like digital transactions, into the tax system.

 

He acknowledged the importance of fostering digital transformation but
emphasized that sufficient tax revenue is needed to finance the
infrastructure projects that will enable it.

 

Eyob further explained that when VAT was introduced in 2002, the goal was to
broaden the tax base and increase revenue from indirect taxes. "While we've
seen progress, the actual VAT collection falls short of its potential," he
stressed.

 

According to Eyob, the current revision to the proclamation aims to rectify
this discrepancy between actual and potential tax collection.

 

During the last fiscal year, VAT collections accounted for approximately 15%
of the total tax revenue generated. To finance the proposed budget for the
upcoming fiscal year, the government aims to collect nearly 100 billion birr
in the form of VAT, representing roughly 20% of total tax income.

 

Officials anticipate the enactment of this bill, with its provisions taking
effect at the beginning of the coming year.

 

- Addis Standard.

 

 

 

 

Ghana: Rising Costs of Locally Produced Food Drive Ghana's Food Inflation

Data from the Ghana Statistical Service shows that locally produced food
contribute more to inflation than imported counterpart.

 

Data published by the Ghana Statistical Service points to significant
factors contributing to the recent hikes in food prices across the country.
Food inflation stood at 22.6% in May, a slight reduction from 26.8% in the
previous month. However, a detailed analysis reveals that locally produced
food has been the primary driver of this inflation, overshadowing the impact
of imported foods.

 

According to the data, locally produced food contributed 28.6% to national
inflation, while imported food accounted for only 9.2%. This disparity
highlights that the rising cost of locally produced food is the main cause
of food inflation in Ghana.

 

Among the top 20 items with the highest inflation rates, eight were locally
produced foods, while only three were imported. The food sub-class
comprising vegetables, tubers, and plantain experienced an inflation rate of
37.9%.

 

 

Several factors have been identified as contributing to the rising costs of
locally produced foods. One major factor is the cost of transportation from
farm gates to markets. The year-on-year inflation for transport was 20%,
close to the national average.

 

However, the month-on-month inflation, which reflects the current situation,
saw a significant jump of 10.6% compared to the national average of 3.2%.
This substantial increase underscores the impact of transportation costs on
the prices of locally produced food, a concern frequently raised by traders.

 

Additionally, low production levels due to competing uses of arable land
have exacerbated the issue. Illegal mining activities, which destroy large
tracts of farmland, are a major threat to local food production, analysts in
the Agriculture sector have noted. Ironically, the mining communities are
also key farming areas.

 

Another competing use of arable land is real estate development, often
referred to as "concrete plantations." Large parcels of land previously used
for cultivating crops such as maize, cassava, and rice have now been
converted into residential areas, particularly in cities like Accra.

 

Despite the government's Planting for Food and Jobs initiative, which has
been in place since 2017, the food situation remains dire. The initiative
aimed to boost local food production but has faced challenges that have
hindered its effectiveness.

 

As Ghana grapples with these challenges, the need for strategic
interventions to stabilise food prices and support local farmers becomes
increasingly urgent. Addressing transportation costs, protecting arable land
from competing uses, and improving agricultural productivity are essential
steps to mitigate the ongoing food inflation crisis.

 

- Accra Times.

 

 

 

 

Criminal charges recommended against Boeing - reports

US prosecutors have recommended that the Justice Department (DOJ) brings
criminal charges against Boeing, according to the BBC's US partner CBS.

 

It comes after the DOJ said the plane maker had violated a settlement
related to two fatal crashes involving its 737 Max aircraft, which the firm
denied.

 

Boeing declined to comment when contacted by the BBC about the prosecutors'
recommendation.

 

The DOJ did not immediately respond to a BBC request for comment.

The recommendation is not a final decision and the details of any potential
criminal action were not known, CBS said.

News of the recommended charges was first reported by the Reuters news
agency.

 

The DOJ has until 7 July to make a final decision on whether to prosecute
Boeing.

The crashes - one in Indonesia in 2018 and another in Ethiopia in 2019 -
killed a total of 346 people.

Last week, relatives of the victims urged prosecutors to seek a fine against
Boeing of $25bn (£14.6bn) and pursue a criminal prosecution.

Under a deal reached in 2021, Boeing agreed to pay a $2.5bn settlement,
while prosecutors agreed to ask the court to drop a criminal charge after a
period of three years.

Last month, the DOJ said Boeing was in breach of the deal saying it had
failed to "design, implement, and enforce a compliance and ethics program to
prevent and detect violations of the US fraud laws throughout its
operations."-BBC

 

 

 

 

China and EU to hold talks on electric car tariffs

The risk of soaring Chinese electric car prices in the EU could be easing
after both sides agreed to negotiate a planned series of import taxes.

Top officials from both regions spoke about the tariffs on a call on
Saturday and agreed to discuss them further, though frictions remain.

 

The call marks the first time the two sides have agreed to negotiate since
the EU threatened China with electric vehicle (EV) tariffs of up to 38%.

The EU said Chinese EVs were unfairly subsidised by its government. In
response, China accused the EU of protectionism and trade rule breaches.

An EU spokesperson told the BBC the call between Trade Commissioner Valdis
Dombrovskis and his Chinese counterpart Wang Wentao was “candid and
constructive”.

They said the two sides would “continue to engage at all levels in the
coming weeks”.

 

However, the spokesperson also doubled down on the EU’s opposition to how
the Chinese EV industry is funded.

They said “any negotiated outcome” to the proposed tariffs must address the
“injurious subsidisation” of Chinese EVs.

China released a similar statement on Saturday and made clear it still
disagreed with the EU.

 

As well as its call with the EU, Mr Wentao met with German Vice-Chancellor
and Federal Minister for Economic Affairs and Climate Action Robert Habeck
on Saturday.

In a Facebook post about the meeting, China’s Ministry of Commerce said it
had told Mr Habeck about its “firm opposition” to the tariffs.

It repeated its threat to file a lawsuit with the World Trade Organisation
(WTO) “to firmly defend its legitimate rights and interests”.

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

 

Germany has also expressed criticism of the tariffs.

When the EU first proposed them last week following its investigation of
Chinese EVs in the trading bloc, Germany's Transport Minister, Volker
Wissing, said the move risked a "trade war" with Beijing.

 

"The European Commission's punitive tariffs hit German companies and their
top products," he wrote on X, formerly known as Twitter, at the time.

The European car industry has been critical too.

Stellantis - which owns Citroën, Peugeot, Vauxhall, Fiat, and several other
brands - said it did not support measures that "contribute to the world
fragmentation [of trade]".

 

The proposed charges range from 17.4% to 38.1%, depending on the brand and
how much they negotiated with the EU's investigation.

They would come on top of the current rate of 10% levied on all electric
cars produced in China.

 

The EU's intervention comes after the US made the much bolder move of
raising its tariff on Chinese electric cars from 25% to 100% last month.-BBC

 

 

 

Huge Saudi construction projects 'might get scaled down'

The Line, a planned 170km long linear city, may now initially extend for
only 2.4km

“They can keep saying that, and we can keep proving them wrong.”

 

That was the response of Saudi Arabia’s Crown Prince Mohammed bin Salman in
a TV documentary broadcast in July 2023, while talking about scepticism
surrounding Saudi Arabia’s flagship construction projects.

 

Almost a year later, some of the doubts are turning out to be true.

 

In recent months, Saudi Arabia has seemingly scaled back plans for its vast
desert development project Neom, which is the centrepiece of Vision 2030.

This is the economic diversification programme spearheaded by Prince
Mohammed, the Gulf state’s de-facto ruler, to transition the country’s
economy away from oil-dependency.

As well as Neom, Saudi Arabia is also developing 13 other large construction
schemes, or “giga projects” as they are referred, worth trillions of
dollars. These include an entertainment city on the outskirts of the capital
Riyadh, multiple luxury island resorts on the Red Sea, and a cluster of
other tourist and cultural destinations.

 

But low oil prices have impacted government revenues, forcing Riyadh to
reassess these projects, and explore new funding strategies.

An advisor, who is associated with the government but wished not to be
named, tells the BBC that the projects are being reviewed, with a decision
expected soon.

“The decision will be based on multiple factors,” he says. “But there is no
doubt that there will be a recalibration. Some projects will proceed as
planned, but some might get delayed or scaled down.”

 

Announced in 2017, Neom is a $500bn (£394bn) plan to build 10 futuristic
cities in a desert region in the north west of the country.

The most ambitious of them, and the one that has gained all the headlines,
is The Line. This will be a linear city consisting of two adjoined, parallel
skyscraper walls standing 500m high - taller than the Empire State Building.
Yet they will have combined width of just 200m, including the gap between
them.

 

 

Crown Prince Mohammed bin Salman is seeking to diversify the country's
economy

 

The original plan was that they would extend for 170km (105 miles), and
become home to nine million inhabitants.

But according to people familiar with the details – and as already leaked to
the press - the project developers will now focus on completing just 2.4km
by 2030, as part of the first module.

 

When The Line was first announced it was billed as a “carbon-free linear
city” that would redefine urban living, with amenities for residents like
parks, waterfalls, flying taxis, and robot maids.

The city would have no roads or cars, and would be made up of
interconnected, pedestrianised communities. It would also include an
ultra-high-speed train, with a maximum journey duration of 20 minutes
anywhere within city limits.

 

How many of these features will be part of the first phase are unclear.

Along with The Line, Neom is also due to include an octagon-shaped floating
industrial city, and a mountain ski-resort that will host the Asian Winter
Games in 2029.

Ali Shihabi, a former banker now on Neom's advisory board, says the targets
set for projects under Vision 2030 were deliberately “designed to be over
ambitious”.

“It was meant to be over ambitious, with the clear understanding that only a
part of it would be delivered on time. But even that part would be
significant,” says Mr Shihabi.

The scaling back of Neom has put the spotlight on the funding challenges
that the Saudi government is facing.

Neom is being paid for by the Saudi government through its sovereign wealth
entity, the Public Investment Fund (PIF).

The official cost to build Neom, $500bn, is 50% more than the country’s
entire federal budget for the year. But analysts estimate that it would
ultimately cost more than $2tn to execute the full project.

 

Saudi Arabia’s government budget has been in a deficit since late 2022, when
the world’s largest oil exporter began slashing production to accelerate
global prices. The government has forecast a deficit of $21bn for this year.

The PIF is feeling the pinch. It controls assets of about $900bn, but it had
just $15bn in cash reserves as of September.

Neom and The Line

 

Tim Callen, the former IMF chief to Saudi Arabia and now a visiting fellow
at the Arab Gulf States Institute, says that raising capital for Neom and
other large-scale projects is a key challenge in the future.

 

“It is going to be increasingly challenging to fund the PIF to the levels
that are required for these projects,” Mr Callen says.

 

The Gulf state is tapping other avenues to shore up capital.

 

Earlier this month, it sold roughly $11.2bn worth of shares in its national
oil company Saudi Aramco. Most of those proceeds are expected to go to the
PIF, which was also the biggest beneficiary when the company went public in
2019.

 

The sale comes amid volatility in oil prices. In July of last year, in an
attempt to bolster prices, the Saudi Arabia-led OPEC+ oil producing group of
countries curbed production.

 

Riyadh voluntarily cut its supplies by one million barrels a day. However,
this month, OPEC+ reversed the decision, and it will gradually start
increasing production from October.

 

According to the International Monetary Fund, the price of a barrel of oil
needs to be $96.20 for Saudi Arabia to be able to balance its budget. Brent,
one of the main benchmarks for crude, has been hovering around $80 a barrel.

 

The country has also relied on selling government bonds to maintain funding
flows for the PIF. The other challenge has been that foreign direct
investment has remained far below targets, underlining Riyadh’s struggle to
attract funding from private companies and international investors.

‘It’s going to be very difficult to persuade investors to come into projects
that they view as being overly ambitious,” says Mr Callen. “It’s unclear
where your returns will ultimately come from.”

 

The Gulf state is also funnelling money into sectors such as tourism,
mining, entertainment, and sports as part of the economic diversification
strategy.

 

In recent years, Saudi Arabia has won the hosting rights for several major
international events, such as the football Asian Cup in 2027, Asian Winter
Games in 2029, and the World Expo 2030. It has also emerged as the sole
bidder for the 2034 FIFA Men’s World Cup. All these projects will require
massive investments in the years to come.

 

Mr Shihabi expects the government to prioritise these international events
as they get closer. “Projects where we have specific deadlines to meet will
get prioritized by the nature of things,” he says.

 

In April, at a special meeting of the World Economic Forum meeting held in
Riyadh, the country’s Finance Minister Mohammed Al-Jadaan said the
government didn’t have an “ego”, and would adjust its Vision 2030 plan to
transform its economy as needed.

 

“We will change course, we will extend some of the projects, we will
downscale some projects, we will accelerate some projects,” he said.-BBC

 

 

UK's richest family convicted of exploiting servants

Four members of the UK's richest family have received prison sentences for
exploiting staff brought over from India to work at their Geneva villa.

 

Prakash and Kamal Hinduja, as well as their son Ajay and his wife Namrata,
were found guilty of exploitation and illegal employment by a Swiss court
and handed sentences ranging from four to four-and-a-half years.

 

They were acquitted on the more serious charge of human trafficking.

Lawyers representing the defendants said they intend to appeal against the
ruling.

 

Speaking outside the court, Robert Assael, the lawyer for the defendants,
said: "I'm shocked. We're going to fight it to the bitter end."

Three workers who were brought over from their native India alleged the
family paid them as little as £7 ($8) to work 18-hour days - less than a
tenth of the amount required under Swiss law - and confiscated their
passports.

 

They also claimed the family - whose fortune is estimated at around £37bn -
rarely allowed them to leave the house, which is in Geneva’s wealthy
neighbourhood of Cologny.

 

During the trial, prosecutors alleged the family spent more on their dog
than on their servants.

The defence argued that the employees received ample benefits, were not kept
in isolation and were free to leave the villa.

The employees "were grateful to the Hindujas for offering them a better
life", Mr Assael argued.

 

The elder Hindujas, both over 70, did not attend court proceedings, pleading
ill health. Ajay and Namrata did attend court but were not there to hear the
verdict.

Following the verdict, the prosecution requested an immediate detention
order for the younger Hinduja couple, but this was denied by the judge.

The defence said Kamal Hindula is currently in hospital in Monaco - and the
other three family members are at his bedside.

It is not the first time that Geneva, a hub for international organisations
as well as the world’s wealthy, has been in the spotlight over the alleged
mistreatment of servants.

 

Last year, four domestic workers from the Philippines launched a case
against one of Geneva’s diplomatic missions to the United Nations, claiming
they had not been paid for years.

 

The Hinduja family own the Hinduja Group, a multinational group with
interests in oil, gas, and banking.

 

The family also owns Raffles hotel in London.-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/20240624/981dd12f/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/20240624/981dd12f/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29356 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240624/981dd12f/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29321 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240624/981dd12f/attachment-0004.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/20240624/981dd12f/attachment-0003.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/20240624/981dd12f/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65554 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240624/981dd12f/attachment-0001.obj>