Major International Business Headlines Brief::: 15 March 2024

Fri Mar 15 09:12:10 CAT 2024

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Major International Business Headlines Brief:::  15 March 2024 

 <mailto:info at bulls.co.zw> 

ü  Tanzania: New Dawn for Rwanda-Tanzania Businesses

ü  East Africa: Kenya Sugar Reforms in Focus As Comesa Safeguards Expire

ü  Kenya: KQ Boosts New York Flights Ahead of Summer Surge

ü  Rwanda, Tanzania Move to Open New Border Post As Tanzanian Minister Hails Ties

ü  Kenya: Reprieve for Kenya's Consumers As Fuel Prices See Largest Decline Yet

ü  Somalia: Paris Club Creditors Cancel 99 Percent of Somalia's Debt

ü  South Africa: SAA, Takatso Deal Collapses

ü  South Africa: The European Company That Profited From Corruption At Prasa

ü  Nigeria Clips Nurses' Wings to Prevent Brain Drain

ü  Central Africa Says Economic Bloc Poorest, Integration Stagnant At 4%

ü  TikTok ban: China attacks 'bandit logic' of House vote

ü  American Riviera Orchard: Meghan launches surprise new lifestyle brand

ü  Shell boss got £8m pay package in first year

ü  Marlboro firm sells $2.2bn stake in Bud Light owner

Tanzania: New Dawn for Rwanda-Tanzania Businesses

Rwanda and Tanzania are two different countries but someway with shared similarities. Rwanda is a geographically small country compared to Tanzania, but the two countries are among the fastest growing economies in Africa.

In fact, the two are ranked among the fastest-growing economies in Africa. The African Development Bank forecast the two countries will be among the top 20 world's fastest growing economies in the world in 2024.

Rwanda is estimated to grow at 7 per cent and Tanzania at 6.1 per cent in 2024. This robust expansion translates to a lucrative market brimming with potential for investors and businesses.

It is exactly what January Makamba, the Foreign Affairs Minister and East African Cooperation of Tanzania, implied in his long social media post on his last day of the visit to Rwanda. He made a strong case for Rwanda and Tanzania to tap into the potential that the countries have to promote shared interests.

"Tanzania is Rwanda's second largest trading partner. The potential to be first exists. We are going to work on it," the minister said in a long Twitter post, after concluding his three-day visit to Rwanda - a tour in which he made several commitments on behalf of Tanzania.

Indeed, Tanzania can be a strategic business partner for Rwanda. To start with, Tanzania is about 36 times bigger than Rwanda, way too big that what happens in Tanzania affects the entire East African region.

That is because Tanzania is a major trading hub in the region. The country's commercial port of Dar Es Salaam is a major logistics hub, connecting six landlocked neighbouring countries to the international markets.

Dar Es Salaam port processed 1.4 million metric tons of cargo and 63,000 containers last year. Rwanda is the third largest user of the port with more than 80 per cent of the country's cargo passing through the port.

It just makes so much sense for the two countries to strengthen their business ties, and that is a good enough foundation to build on, and Makamba agrees: "We've committed to make it easier for them to continue to use it. We've opened TPA [Tanzania Ports Authority] Offices in Kigali. We've assigned pieces of land to Rwanda for dry ports at Isaka and Kwala."

Tanzania assigning pieces of land to Rwanda for the two dry ports of Isaka and Kwala is a win for the business community. Isaka is exceptionally a strategic port because it offers transportation and distribution services to land-locked countries like Rwanda.

Rwanda would have a fair advantage if it can tap into Isaka port. The development of the assigned pieces of land would enable Rwanda to offset the hefty costs that logistic companies spend on transporting their goods from the port of Dar Es Salaam to Rwanda.

"Isaka is such a strategic dry port that could serve Rwanda in a meaningful way. The cost of transport would go down, the time it takes to process cargo would reduce, and it would prevent unnecessary costs logistic companies spend when the port of Dar Es Salaam is congested," Philbert Inkindi, Chief Commercial Officer at Dubai Ports World Rwanda weighed in.

Kwala, too, is another key port. Earlier this year, the Tanzanian government brought Kwala port into full operation in an effort to streamline the flow of cargo at Dar Es Salaam port. Kwala now handles 60% of Tanzania's cargo flow.

A multifaceted partnership

Rwanda being Tanzania's second largest trading partner means that there are more opportunities for business collaboration. From agriculture, tourism, and information and communication, to fast-moving consumer goods, the two countries have a chance to collaborate.

For instance, the Minister said, Rwanda gets a significant share of cereals from Tanzania. "We've decided to regularise this market. Rwanda has invested in a dairy factory in Mwanza, where farmers will get a lucrative market for milk. We have ensured the success of this venture."

Rwanda and Tanzania are also looking to develop their agriculture sectors through joint agriculture research. This would ultimately promote agro processing industries and allow other players to enter the market.

Bakhresa Grain Milling, an agro processing subsidiary of Tanzania's billionaire Said Salim Bakhresa's group Bakhresa, offers a template. Bakhresa Grain has been operating in Rwanda for more than 15 years now, producing wheat products.

Another Tanzanian billionaire industrialist Mohammed Dewji last year said he would invest $100 million into Rwanda. Dewji owns METL, a food and packaging conglomerate with presence in 11 African countries.

The two established players showcase the growing appetite for cross-border business ventures.

"We plan to do joint agriculture research through an MoU on Agriculture Cooperation that will be signed in May," Makamba said, revealing that the two countries agreed to open a new border post along the Tanzania-Rwanda border to ease the movement of goods and people.

What is clear, there are a lot more possibilities for business communities than one would think. How fast these possibilities can translate into tangible actions depends very much on how quickly the two governments will get down to business.

- New Times.

East Africa: Kenya Sugar Reforms in Focus As Comesa Safeguards Expire

Kenya's sugar sector faces an uncertain future as the Common Market for Eastern and Southern Africa (Comesa) safeguards, providing protection against inexpensive imports for over a decade, are set to expire.

Agriculture Cabinet Secretary Mithika Linturi informed MPs recently that Comesa has communicated its decision not to grant further safeguards once the current one concludes.

In the previous year, Nairobi secured a two-year extension to address pending reforms before market liberalisation takes place.

Mr Linturi stressed ongoing efforts to meet the deadline, stating, "We are implementing reforms to comply with the timeline; Comesa has notified us that additional safeguards will not be issued after the current ones expire in the next two years."

Initially granted in 2002, Kenya has repeatedly sought extensions, surpassing the maximum allowable duration for these protective measures.

Comesa, under the safeguard regime, mandated Kenya to develop a rapidly maturing cane, transition from a weight-based payment method to sucrose content, and rectify the high production costs incurred by the sector.

Furthermore, Comesa urged the Kenyan government to privatise all state-owned sugar firms, facilitating the infusion of fresh capital and enhancing their competitiveness.

Despite a decade passing since these directives were issued, many of the stipulated reforms remain unmet. Notably, the country's production costs persist at a significantly elevated level, with a tonne reaching up to $1,000, compared to Mauritius, where the same quantity is produced for $400.

Attempts to privatise state-owned factories have encountered obstacles, primarily due to protracted court cases hindering the process.

Under the Comesa safeguards, Kenya is allowed to import at least 350,000 tonnes of sugar from the member states.

- Business Day Africa.

Kenya: KQ Boosts New York Flights Ahead of Summer Surge

Kenya Airways has announced an increase in flights to New York in anticipation of a surge in passenger numbers during the upcoming summer season.

The East African nation's premier airline will inaugurate two additional flights on the New York route from June 15 to September 28, 2024, aligning with the peak summer season.

This will elevate the weekly flight tally to nine, with Thursday and Saturday offering passengers the flexibility of two flight options--morning and afternoon departures--from New York.

In a bid to enhance passenger convenience, Kenya Airways has crafted a unique schedule feature, affording travelers the opportunity for same-day arrival in New York.

Commencing with a morning departure from Nairobi, this arrangement facilitates afternoon arrival in JFK, catering to the diverse needs of passengers.

The carrier has partnered with the Kenya Tourism Board (KTB) to position Kenya as a tourist destination in North America through a trade roadshow.

The roadshow, scheduled to take place from 19th-21st March 2024 in New York, Boston, and Toronto, aims to showcase Kenya and stimulate travel demand for the country.

The overarching objective of this roadshow is to spotlight Kenya's rich cultural heritage, natural splendor, and myriad attractions, thereby igniting fervent interest and stimulating travel demand in the country.

Since its inception in 2018, Kenya Airways has steadfastly nurtured the direct route between New York and Nairobi, recognising its pivotal role as one of the cornerstone routes within its network.

Kenya Airways is poised to introduce several new routes and intensify frequencies on existing ones, as it expands its global footprint and enhances connectivity across diverse markets.

New Destinations:

Starting March 25th, 2024: From its hub in Nairobi, Kenya, KQ will operate five weekly flights to Eldoret, Kenya. Flights to Eldoret will be available on Mondays, Wednesdays, Fridays, Saturdays, and Sundays.

Starting June 14th, 2024: From its hub in Nairobi, Kenya, KQ will fly three times weekly to Maputo, Mozambique. Travelers can enjoy flights on Wednesdays, Fridays, and Sundays.

Increased Frequencies:

New York, USA: From June 15th, 2024, KQ will increase its peak frequencies to New York, offering two additional weekly flights. With flights on Thursdays and Saturdays, passengers will have even more flexibility when travelling to the iconic city.

Paris, France: Effective July 5th, 2024, KQ will boost frequencies to Paris with two additional weekly flights. Operating on Fridays and Sundays, these additional flights cater to the extra demand expected during the Olympics.

Accra, Ghana & Freetown, Sierra Leone: From June 2nd, 2024, Kenya Airways will increase capacity to Accra and Freetown by deploying our B787-8 aircraft. This enhancement will provide passengers with more comfortable and convenient travel options to these destinations.

Lagos, Nigeria: Kenya Airways will add three additional flights to Lagos, Nigeria. Starting from April 1st, 2024, passengers can enjoy one additional weekly flight on Saturdays, followed by two additional flights from June 3rd, 2024, on Mondays and Thursdays.

- Business Day Africa.

Rwanda, Tanzania Move to Open New Border Post As Tanzanian Minister Hails Ties

A top Tanzanian oficial has announced plans to open a new border post with Rwanda, as part of a raft of measures to scale up ties between the two East African countries.

January Makamba, Tanzania's Minister of Foreign Affairs and East African Cooperation, who has just wound up a visit to Rwanda, says the proposed border crossing will be set up in Tanzania's Kyerwa district in Kagera Region.

The two countries mainly rely on Rusumo border post to transact business.

Tanzania's top diplomat was on a four-day visit to Rwanda since March 12, leading a delegation of senior officials from the Ministries of Transport, Trade and Industry, ICT, Agriculture, Energy, and other key parastatals.

While reflecting on the key outcomes of his visit in a lengthy post on X, Makamba said President Paul Kagame reaffirmed the friendship between the two countries, describing them as "neighbours, brothers and sisters, joined by geography, history and culture -- and a shared destiny".

Reflecting on his audience with President Kagame, Minister Makamba said, "His guidance on advancing our relations was insightful."

Rwanda is the third largest user of Dar es Salaam port with more than 80 per cent of its cargo passing through it, with 1.4 million metric tonnes of cargo and 63,000 containers processed at the port in 2023 alone.

'Tanzanian farmers will benefit from Rwanda diary investment'

Makamba said: "We have also decided to work on opening a new border post in Kyerwa District in Kagera region to enable easier movement of goods and people."

Makamba recalled that Tanzania offered Rwanda pieces of land set set up dry ports at Isaka and Kwala, urging the private sector to leverage the opportunity, and noting that Tanzania had the potential to become Rwanda's number one trading partner.

"We've committed to be a reliable partner...and we're keen to expand (business). Tanzania is Rwanda's second largest trading partner. The potential to be first exists. We are going to work on it. Rwandans buy a lot cereals from Tanzania.

"We've decided to regularise this market. Rwanda has invested in diary factory in Mwanza, where farmers will get lucrative market for milk. We have ensured the success of this venture. We plan to do joint agriculture research through an MoU (Memorandum of Understanding) on Agriculture Cooperation that will sign in May."

ALSO READ: Rwanda, Tanzania sign four bilateral agreements

He added: "Rwanda uses Tanzania broadband infrastructure for a certain amount of capacity in its connectivity. We have committed to be a reliable partner in this area and we are keen to expand this business."

'We are friends'

"We must work together to solve common challenges and prioritise things that will improve the lives of people from our two countries. The bilateral relations between our two countries have always been excellent and they keep improving to greater heights."

The message of President Kagame "to me and my delegation was clear: we are friends, neighbours and brothers and sisters, joined by geography, history and culture - and a shared destiny," he said. "We must work together to solve common challenges and prioritise things that will improve the lives of people from our two countries."

The Tanzania minister added, "The bilateral relations between our two countries have always been excellent. They keep improving to greater heights. As diplomats, this is what we live for: to always improve on relations."

Rwanda and Tanzania are both members of the East African Community, an eight-nation bloc that seeks to foster socioeconomic and political integration among member states.

- New Times.

Kenya: Reprieve for Kenya's Consumers As Fuel Prices See Largest Decline Yet

Fuel prices have experienced a significant decrease in the latest review, shortly after President William Ruto hinted at a potential reduction in costs.

The Energy and Petroleum Regulatory Authority has slashed the price of super petrol by Ksh7.21, diesel by Ksh5.09, and kerosene by Ksh4.49.

In Nairobi, a litre of super petrol will now be priced at Ksh199.15, diesel at Ksh190.38 per litre, and kerosene at Ksh188.74 per litre.

While addressing the public in Kericho on Thursday, Dr Ruto stated that Kenyans should anticipate a reduction in the cost of fuel as a result of an upcoming review by EPRA.

"We have already tackled the dollar exchange rate matter, and today, the price of fuel is expected to decrease further," he said.

- Business Day Africa.

Somalia: Paris Club Creditors Cancel 99 Percent of Somalia's Debt

Mogadishu, Somalia — The Paris Club of Creditors has reached an agreement with the government of Somalia that will result in the cancellation of up to $2 billion of the country's debt- approximately 99% of the debt owed by the country to the group.

This was disclosed in a statement from the group yesterday where it stated it will forgive the country's nominal debt of $1.2 billion under the Enhanced HIPC Initiative framework.

The move comes following Somalia's completion of the Enhanced Heavily Indebted Poor Countries (Enhanced HIPC) Initiative of the IMF where the country was exiled from the international financial system for about 30 years.

What the club is saying is, "To contribute to restoring the debt sustainability of the Federal Republic of Somalia, Paris Club creditors committed to cancel USD 1.2 billion in nominal terms under the Enhanced HIPC Initiative framework. Creditors welcomed and supported the commitment of the Federal Republic of Somalia to seek treatment at least as favourable from all its other official bilateral and external commercial creditors."

"In addition, Paris Club creditors confirmed their willingness to grant additional debt cancellation on a voluntary and bilateral basis for an amount of USD 815 million."

"The Paris Club consensus and the expected additional bilateral efforts would result in a reduction of more than USD 2.0 billion, representing 99% of the debt of the Federal Republic of Somalia owed to Paris Club members as of January 2023."

Furthermore, the club welcomed Somalia's commitment to poverty eradication, education, and health reforms to create a foundation for sustainable economic growth.

What you should know

The Heavily Indebted Poor Countries (HIPC) initiative was launched in 1996 and during that period has canceled debt to the tune of $120 billion for 36 out of 39 qualified countries. Somalia is the 37th country to benefit from the initiative.

The $2.0 debt cancellation for Somalia represents over 50% of the country's public external debt of $3.8 billion. The reorganization of Somalia's debt was facilitated by representatives from Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, the Russian Federation, Spain, the United Kingdom, and the United States of America with the European Commission, AfDB, and OECD as observers.

- Shabelle.

South Africa: SAA, Takatso Deal Collapses

Following three years of negotiation, Minister of Public Enterprises Pravin Gordhan has announced the termination of negotiations for the transaction to sell 51% of South African Airways (SAA) to the Takatso Consortium.

The collapse of the negotiations - which put an end to the sale to the equity partner - was announced during a media briefing by the Minister in Cape Town on Wednesday evening.

Gordhan explained that while three years ago, a valuation of SAA's business and assets had been reached, circumstances have now changed - prompting a disagreement on the revised transaction structure.

Three years ago, the airline had undergone business rescue, battled through being grounded and was facing serious challenges following the COVID-19 pandemic.

"Late last year, clearly, we had a different market, we had a different economy, and we had a different flying public in terms of numbers of people that were flying and a new valuation was done.

"And the new valuation...the business came out now at a value of R1 billion and the property went up to about R5.5 billion which meant that any negotiations on this transaction would have to take into account the new valuations that have emerged," he said.

The Minister revealed that negotiations continued "for the latter part of last year" and since this year began.

"However, we came to a point where whilst there was meeting of minds...on some of the issues, there were other issues on which there was no meeting of minds.

"So late last week, there was agreement that in terms of a clause in the old sale and purchase agreement, whereby mutual consent, this transaction could be terminated. That clause was put into action and both parties have agreed - after we enquired about the status of the negotiation - that there was no clear path forward as far as the transaction with Takatso is concerned."

Gordhan insisted that because SAA remains a public entity:

Cognisance must be placed on its growth over the past five years;

Fair value must be placed on the sale of the 51% stake in the airline;

and the process to sell the shares must ensure that SAA is left in a "more sustainable condition than it was in 2019".

He added that despite the collapse of the deal, the future remains bright for the airline and dismissed any notions that it will rely on government bailouts going forward.

"We are convinced, in terms of the numbers available to us, that it can sustain itself for the next year to 18 months and there are various, other ways in which immediate financing can be obtained.

"But at no stage, in the course of the months that come, will SAA get money from the fiscus. It must run its operations as efficiently as it can and as profitably as it can and sustain itself," he said.

READ | Strategic Equity Partnership for SAA aimed at saving airline: Gordhan

Moving forward

Gordhan assured employees of the state-owned airline that their jobs are currently not in danger as a result of the collapse of the deal.

"So the message to the SAA staff...is that you don't worry about your jobs, you don't worry about the future of your families, that we will ensure that we work with the board and management...to continue to support the sustainability of SAA and to ensure that the corporate plan that has been developed by SAA is further strengthened," he said.

The Minister added that the corporate plan is well fleshed out and projects a growth in the airline.

"That corporate plan actually entails the gradual growth in the number of routes that SAA will take up in the course of the next few years. Currently, it has about 19 routes and that will grow up to 40 routes in a five year period.

"Similarly, it will have the capacity to lease more aircraft, both for domestic use, use within the continent and for inter-continental flights as well.

"All of these plans will be rigorously examined with the necessary aviation expertise to ensure that jobs are secure, that the airline is secure and that there is a future for SAA and its flag to be seen continuously within the country, within the continent and across continents as well," Gordhan said.

- SAnews.gov.za.

South Africa: The European Company That Profited From Corruption At Prasa

This article is the first in a series of articles on corruption in PRASA's dealings with a front company called Swifambo Rail Leasing. It focuses on Vossloh, a European rail technology company, which made billions of rands through a dubious partnership with Swifambo.

In 2012, a deal was struck that contributed to the near collapse of the Passenger Rail Agency of South Africa (PRASA). The Swifambo deal for 70 locomotives led to billions of rands in losses for PRASA and accelerated the decline of passenger rail services in South Africa.

Swifambo, a front company set up shortly before the deal, partnered with Vossloh España -- the Spanish subsidiary of Swiss railway stock manufacturing firm Stadler -- to supply the locomotives. Stadler acquired Vossloh España in 2016 from German headquartered rail technology company, Vossloh AG. Vossloh España was owned by Vossloh AG at the time it partnered with Swifambo on the PRASA deal which was worth R3.5-billion.

In 2018, the Supreme Court of Appeal upheld a decision by the Johannesburg High Court declaring the contract corrupt. The court said that Swifambo had acted as nothing but a front for Vossloh in the deal.

Vossloh made R1.8-billion from a dodgy deal and has not paid back a cent

The locomotives supplied by Vossloh, known as the Afro4000, were meant to improve long distance passenger services between South African cities, but were revealed to be too tall for South African railways. Yet PRASA ended up paying Swifambo R2.7-billion for the trains.

Swifambo went into voluntary liquidation in 2018. The trains are now being auctioned by Swifambo's liquidators, Tshwane Trust, to recover amounts owed to PRASA.

Vossloh received R1.8-billion of the R2.7-billion Swifambo was paid by PRASA. According to the draft report of a 2017 investigation by forensic auditor Ryan Sacks, commissioned by the Hawks, and a separate investigative report by forensic auditor Jan Dekker, commissioned by the liquidators, Vossloh made the most money from the corrupt contract -- even more than Swifambo's director, Auswell Mashaba.

Yet Vossloh has not paid back a single cent.

Vossloh's records show just how profitable the corruption at PRASA was for its European business. Before the locomotive contract, Vossloh had already scored a major cash injection from PRASA, when Its German subsidiary, Vossloh Kiepe, shipped 272 air conditioning units to PRASA in 2012 worth €80-million in a deal where there were "significant irregularities", according to Sacks's draft report.

That same year, Vossloh opened its South African headquarters, Vossloh Southern Africa Holding Company, in Midrand, Gauteng. A year later, in 2013, it landed the "megacontract" for the locomotives for PRASA through its front company, Swifambo. At the time Vossloh España agreed to partner with Swifambo to provide the trains, Vossloh AG's profit was declining. The company's annual report for the year ending 2011/2012 showed a 5.7% decline in sales. Then, in 2013, orders rose by more than 37% to €453-million. South Africa's order of 70 locomotives made up more than half the value of orders Vossloh received in 2013.

The deal was set up to benefit a few at the expense of PRASA and South African commuters.

Between 2011 and 2015, Vossloh made ten payments totalling R88.9-million to companies owned by Makhensa Mabunda, a well-connected businessman who is believed to have set up the Swifambo/Vossloh deal with PRASA. Popo Molefe, then chairman of the PRASA board, has revealed in court papers that Swifambo director Mashaba identified Mabunda as the businessman who engineered the PRASA deal by inviting Mashaba's company to submit a proposal for the tender.

The payments to Mabunda were flagged as suspicious in a report by the Reserve Bank in 2017, according to the Sacks report.

News24 first revealed the payments made by Vossloh to Mabunda in 2018, and Open Secrets referred to them in an article in its Unaccountable series on Vossloh in 2021. After the News24 story was published, Vossloh AG confirmed that it paid Mabunda and his company S-Investments about R90-million as an "independent sales representative" who simply acted as a middleman to bring "Vossloh España, the supplier, together with its customer Swifambo". But there is more to it than that.

As Open Secrets reported in 2021, Sacks found that Vossloh had paid the startup costs of Swifambo in 2011 and 2012 -- more than a year before Swifambo scored the PRASA contract and partnered with Vossloh España. And Mabunda's companies continued to receive money from Vossloh three years after the startup costs were paid.

Vossloh had no legitimate reason to pay Mabunda, but so far nothing has come from the Reserve Bank's report. There does not appear to have been any further investigation into whether these payments were potential kickbacks for Mabunda's role in securing the billion rand contract.

And little action has seemingly been taken by PRASA to recover the funds that are so vital to improve services for commuters. Molefe, as Prasa chairman, filed papers in court in 2017 to compel the Hawks to investigate corruption at PRASA. But so far, the Hawks have made no progress in their investigation into the PRASA and Swifambo corruption case, and there has been no judgment in the court action to compel the Hawks to investigate these matters.

Swifambo's liquidators have numerous ongoing civil claims to recover funds from Swifambo with regard to its contract with PRASA. So far the liquidators have auctioned 8 of the 13 locomotives Vossloh delivered for just under R100-million, but this is only a fraction of the R1.8-billion Vossloh made from the deal.

Nearly three years ago the Hawks told the Zondo Commission that the Swifambo investigation was "90% complete". But responding to questions by Open Secrets in March, the National Prosecuting Authority said the case was "still under investigation" and no prosecutions can take place until the Hawks finalise the police work. Deputy Head of Public Prosecutions Rodney de Kock said other law enforcement agencies were collaborating on the case.

However, PRASA's spokesperson Andiswa Makanda has told Open Secrets that the agency believes the Hawks are prioritising the case and the agency is "cooperating with law enforcement agencies involved in the investigations". And the Special Investigating Unit (SIU), which investigates matters referred to it by the Presidency, announced in February 2024 that its eye was now on the Swifambo contract, and investigations into Mashaba and PRASA are underway.

Vossloh España's parent company, Stadler, also declined to comment

Spanish authorities in 2022 submitted a Mutual Legal Assistance (MLA) request to South Africa in relation to an investigation into Vossloh España and others involved in the deal. Makhensa Mabunda is one of the individuals named in the Spanish MLA request. The NPA declined to comment to Open Secrets on the status of the MLA request.

Vossloh España's parent company, Stadler, also declined to comment on the allegations of its involvement in corruption with Swifambo, saying the matter is before the courts in South Africa.

The Reserve Bank told Open Secrets that it "does not comment on ongoing investigations" and did not "have further details that can be provided at this time".

Mabunda was the inside man behind the Swifambo deal, and bank records show just how much he gained from being well-connected. Our next article in this series focuses on the man who made the Swifambo deal possible, and who is complicit in creating the access to transport struggles faced by South African commuters today.

- GroundUp.

Nigeria Clips Nurses' Wings to Prevent Brain Drain

LAGOS/MUTARE, Zimbabwe - Nigerian nurse Temitope Ogundare has laid out a fastidious, one-year plan to get himself a well-paid nursing gig in Britain.

Saving half his monthly salary of 45,000 naira ($29) - hard earned in a private clinic - he successfully financed the key English language test needed to bolster his credentials.

Then nailed the required score to get to the next stage of his job hunt.

But now the 25-year-old nurse says his plans are stuck in limbo due to strict, new rules brought in by the Nigeria Nursing and Midwifery Council to ensure home-grown talent stays home.

Like many African, Caribbean and Asian nations with robust education systems and strong English language skills, Nigeria has a brain-drain crisis as an army of nurses, doctors and carers is increasingly drawn to work overseas.

According to its nursing council, about 15,000 nurses left Nigeria last year to take up jobs abroad.

Since 2016, the percentage of African clinical staff working in the National Health Service in Britain has risen from 1.9% to 3.8% in 2023, with most coming from Nigeria.

Stumbling block

The new regulations, which came into force this month, require that applicants to foreign nursing boards clock up two years work experience in Nigeria, and get letters of good standing from a current employer and a past training college.

Applicants must wait at least six months to get the documentation - a process that previously took a week.

The changes sparked protests by nurses who say the rules hold them back and open them to potential abuse from employers.

"This a stumbling block to my career. I am stuck," said Ogundare, a newly graduated nurse.

His current job pays less than $30 a month - income that barely cover his food and journey to work; it doesn't even stretch to his rent.

Nigeria is in the grip of a severe cost-of-living crisis, with consumer inflation running close to 30%, while the local currency has hit record lows and food prices have soared.

Mass exodus

A typical starting salary for a Nigerian nurses ranges from $18 - on a par with the national average - to $50 a month.

Widespread dissatisfaction among health professionals stems not just from the poor pay on offer, but also from the sector's limited career paths and its demanding conditions, leading many to move overseas where they can earn up to 10 times more.

Destinations of choice are Britain, Canada and the United States, countries where entry-level nurses can earn from $36,000 up to $55,000.

Last year, 12,099 Nigerian-trained nurses were registered with Britain's Nursing and Midwifery Council (NMC). Only the Philippines and India surpassed Nigeria as countries with more nurses working in Britain.

But Nigeria says the exodus is hurting its health system, as home-trained nurses head to more affluent countries.

Faruk Abubakar, the registrar of the nursing council - the body that regulates nursing practice - says the new vetting rules are vital if Nigeria is to stem its brain drain.

Abubakar told local media that his council was getting ever more complaints from hospital administrators about nurses quitting without giving due notice, creating scheduling havoc and leaving wards short-staffed.

More than 15,000 Nigerian nurses migrated last year to take overseas employment, he said.

"If we allow every Nigerian to leave as they graduate, who is going to handle our health care services?" Abubakar asked.

He said some of the new rules expressly aimed to protect the nurses, many of whom had to take lower-paying jobs in hospitals and care homes after relocating overseas.

Context reached out to Abubakar for comment on the new rules but received no reply.

Where Zimbabwe leads, Nigeria follows

What awaits nurses in Nigeria has already happened to many of their counterparts in Zimbabwe, which each year loses thousands of trained nurses to Britain and other rich nations.

The Home Office in London said it had issued health and care work visas to 21,130 Zimbabweans in 2023.

Seeking to slow the exit, Zimbabwe's health ministry in 2022 assumed control of the verification process previously run by the country's nursing council, and has since been accused of withholding documents that are crucial to winning foreign work.

Some nurses said they had waited many months for documents that had once taken days to land.

"It is clearly a sabotage plan. They want to frustrate me. I have been waiting for nearly two years," said Precious, 31.

After working five years at the state-run Sally Mugabe Central Hospital in Harare, Precious said she began looking for alternate jobs in Britain to boost her pay.

Most nurses in Zimbabwe earn less than $100 a month and could get at least 10 times that overseas.

Kundai, 38, who works at Chitungwiza Hospital outside the capital, has waited months for her exit documents - with no end yet in sight.

"I tried to follow up recently but was told the papers were not ready. This is so unfair ...," said Kundai, who gave only her first name.

Better pay

As for other ways to stop the brain drain, nursing advocates want governments to give health workers a good reason to stay rather than simply block their exit.

Authorities should provide better pay, offer more opportunities and boost work conditions, said Cynthia Adeyeri from the Nurses Reform Initiative, a Nigerian advocacy group fighting for industry change.

She said a survey of more than a thousand nurses had revealed that some midwives in Nigerian clinics earned as little as 25,000 naira a month - matching the earnings of domestic help and falling below the minimum wage of 30,000 naira.

"If a nurse falls ill, they can't pay for antibiotics from their salary because after they take out transportation (to get to work), there is nothing left to do much," she said.

($1 = 1,560.0100 naira)

- Thomson Reuters Foundation.

Central Africa Says Economic Bloc Poorest, Integration Stagnant At 4%

Yaounde, Cameroon — The Central African Economic and Monetary Community, CEMAC, marks its 30th anniversary this week but by some measures has little to celebrate. The bloc says member countries conduct most of their trade with outside countries and have made little attempt to break down economic barriers between them, leaving CEMAC the least developed and poorest economic bloc in Africa.

Officials say the Central African Economic and Monetary Community remains the least integrated economic bloc in Africa, despite its very strong economic and social potential.

CEMAC officials say member countries conduct more than 80 percent of their foreign trade with Europe, China and Russia - and only 4 percent with each other.

The CEMAC countries -- Cameroon, Chad, Equatorial Guinea, Republic of Congo, Gabon and the Central African Republic --- created the bloc in 1994 to promote the free movement of goods and persons across borders and promote regional integration.

Sylvestre Michel Nkou is an economic adviser to the Congo government and CEMAC. He spoke during celebrations marking the economic bloc's 30th anniversary in Yaounde Thursday.

Nkou says CEMAC member states should emulate the Economic Community of West African States, in which civilians and merchants move from one country to the other without fear of police harassment, brutality or the confiscation of their goods. He says poverty will be reduced in central Africa and the economic bloc will cease to become the poorest on the continent when integration becomes a reality, not a political slogan.

Nkou said CEMAC countries continue to erroneously believe that each state can develop on its own. He said CEMACs close to 70 million population constitute a large market which remains underused.

Achingale Queen Anyifuet, an international relations scholar at Cameroon's International Relations Institute, says insecurity, Boko Haram conflicts affecting Chad and Cameroon, political tensions and armed attacks in the CAR and the military juntas in Chad and Gabon have diverted the CEMAC leaders' attention from economic development.

"If you look at the rankings of 'Ease to do Business' countries in the world, the CEMAC region is far below," saod Achingale. "Out of the 197 countries, Cameroon which is the first [among CEMAC states], is ranked 167, so there is a lot to do. We have to put in place programs that address the key roots of conflicts, we have to look at security, ensuring a stable environment which is very key to economic development. We need to promote peace, which is one of the objectives of CEMAC."

Achingale said the World Bank's Ease of Doing Business report quantitatively measures the ease of doing business in countries around the world, focusing on business regulations and property rights protections.

Thierry Ndong, an expert in regional integration and analyst working with CEMAC, says the regional economic bloc has also failed to create a regional airline, build roads linking capitals of CEMAC member states and create a regional stock exchange.

Ndong says a program to develop an economic zone in the border towns of Kye-Ossi, in Cameroon, Bitam in Gabon and Ebebiyin in Equatorial Guinea is among failed projects initiated by CEMAC officials. He says he is surprised that CEMAC keeps money to organize seminars to evaluate nonexistent projects that were initiated 15 years ago as a sign of economic integration without consulting the people who are the main beneficiaries.

CAR President Faustin-Archange Touadera, who is also the CEMAC president, is expected to address issues concerning the underdevelopment of the economic bloc in a March 16 message.- VOA.

TikTok ban: China attacks 'bandit logic' of House vote

TikTok content creators held a small protest outside the White House after the bill was passed in the House of Representatives.

China has attacked a bill going through Congress that could ultimately see TikTok banned in the US, accusing it of "unjustly" behaving like a "bandit".

The bill passed by the House of Representatives would give TikTok's parent company six months to divest from the firm or face a ban on the app.

It still faces an uphill battle in the Senate but President Joe Biden says he will sign it if it passes Congress.

Beijing has vowed to take" necessary measures" to protect its interests.

TikTok is owned by Chinese company ByteDance, a Beijing-based firm registered in the Cayman Islands.

US lawmakers have expressed concern about the app, saying the data of Americans potentially in Chinese hands makes it a national security risk. TikTok's owners have rejected those accusations.

In a rare show of bipartisanship on Wednesday, the House voted overwhelmingly to pass the bill, with 352 representatives voting in favour of the proposed law and 65 against.

At a news conference in Beijing on Thursday, Chinese foreign ministry spokesman Wang Wenbin said the vote on the bill "runs contrary to the principles of fair competition and justice".

"When someone sees a good thing another person has and tries to take it for themselves, this is entirely the logic of a bandit," Mr Wang added.

Another Chinese official, commerce ministry spokesperson He Yadong, said that China would "take all necessary measures to safeguard its legitimate rights and interests".

It is unclear whether the bill has enough support to pass the US Senate. It's also possible that the bill will never come up for a vote, leaving the current status quo in place.

Republican Donald Trump has said he is now opposed, having previously backed a ban.

Could the US ban TikTok?

After its passage in the House, TikTok CEO Shou Zi Chew said that the bill would take "billions of dollars out of the pockets of creators and small businesses".

"It will also put more than 300,000 American jobs at risk and it will take away your TikTok," Mr Chew said in a video posted on TikTok and on X, formerly known as Twitter.

On Wednesday, several TikTok "creators" told the BBC they feared for their livelihood and businesses if the bill becomes a law.

"I buy items from small businesses and showcase them on my platform - I enhance them," said Ophelia Nichols, an Alabama-based creator with more than 12m followers on the platform. "It's the small businesses that will suffer...you have to worry about that."

TikTok's Mr Chew also urged its users to speak out against the vote and contact their lawmakers - an effort that has already seen the offices of some members of Congress inundated with calls from angry constituents.

The approach is one that has irked US lawmakers. One of the bill's co-sponsors, Texas Republican Chip Roy, told the BBC in an interview that he believes TikTok "shot itself in the foot" with the lobbying effort.

"[That is] demonstrating that they want to use the power of their technology to persuade people and inform them through their viewpoint," he said, adding that the effort amounted to "the propaganda angle that we're seeing out of TikTok."

TikTok is banned in China along with other social media platforms.

Instead, Chinese users use a similar app, Douyin, which is only available in China and subject to monitoring and censorship by the government.

Meanwhile, on Thursday Canada's government revealed that a national security review of TikTok's planned expansion in the country that quietly began in September is ongoing.

Speaking to reporters in Ottawa, Prime Minister Justin Trudeau declined to comment on the review or to say whether Canada is considering a ban similar to the one being proposed in the US.

"We're watching, of course, the debate going on in the United States," he told reporters.

Who could buy TikTok?

Former Treasury Secretary Steven Mnuchin said on Thursday that he was putting together a team of investors to make a bid to buy TikTok.

"It's a great business," he told broadcaster CNBC, adding that it would be owned by a US company.

"There's no way that the Chinese would ever let a US company own something like this in China," he added.

Canadian businessman Kevin O'Leary, one of the stars of the TV programme Shark Tank, has also said he is interested in buying the company.

When the Trump administration ordered a sale in 2020, some of the biggest firms in the US emerged to explore bids, which then reportedly valued the firm at about $50bn.

Microsoft ultimately lost out to a team that included Walmart and software giant Oracle. The deal fell apart amid legal challenges and the change-over to a new administration.

Today, TikTok's reach and advertising revenue have increased significantly, leading to an estimated valuation of $268bn.-BBC

American Riviera Orchard: Meghan launches surprise new lifestyle brand

The Duchess of Sussex has launched what appears to be a new lifestyle brand, American Riviera Orchard.

The surprise unveiling was made on Thursday with a new Instagram account and web page containing few details.

Meghan closed her former lifestyle brand, The Tig, upon her engagement to marry the Duke of Sussex.

Since stepping back from official royal duties, she has embarked on media ventures, many aimed at female audiences.

There are few details about the new brand available.

The American Riviera Orchard Instagram account features a brief, grainy video showing hands arranging flowers, Meghan stirring a pot in a kitchen, and a woman in a ballgown standing at the end of a long colonnade.

The website includes the brand logo and a prompt to sign up for a waiting list.

The bio section of the Instagram account, which already has tens of thousands of followers, simply says "by Meghan, The Duchess of Sussex" and "Established 2024".

The part of California where Meghan, Prince Harry and their children live is often referred to as the "American Riviera".

US media report there is a pending trademark application for "American Riviera Orchard", showing that the brand plans to sell home goods, such as decanters and kitchen linens, as well as preserved foods such as jellies.

The application also mentions cookbooks.

The 42-year-old former Suits star has recently been in the public eye more in the US.-BBC

Shell boss got £8m pay package in first year

Shell's new boss received a pay package of almost £8m in his first year in the role, the energy giant has revealed.

Detail of the pay emerged as Shell watered down one of its carbon reduction targets.

Wael Sawan was paid a total of £7.94m, including bonuses, although that was below the £9.7m received by his predecessor, Ben van Beurden, in 2022.

The size of the pay package came under fire from pressure groups.

Jonathan Noronha-Gant, senior fossil fuels campaigner at Global Witness, said the amount was "a bitter pill to swallow for the millions of workers living with the high costs of energy".

Shell also announced that it planned to reduce the "net carbon intensity" of the energy it sells by 15-20% by 2030, compared with a previous target of 20%.

It also dropped its plan to reduce net carbon intensity by 45% by 2035.

Shell said this was due to "uncertainty in the pace of change in the energy transition".

The company said it would now focus on "value over volume" and concentrate on selling electricity to business customers rather than households.

Separately Shell set a new goal to reduce customer emissions from the use of the company's oil products, like petrol and diesel, by 15-20% by 2030.

Shell reports lower profits as energy prices cool

Rival energy giant BP said last year that it was scaling back its plans to cut carbon emissions.

BP also reported last week that its chief executive, Murray Auchincloss, received a pay packet worth just over £8m last year.

The size of pay packages at energy firms has come under scrutiny after companies saw huge profits when oil and gas prices soared in the wake of Russia's invasion of Ukraine.

Andrew Speke, spokesperson for the High Pay Centre said Shell was "more interested in prioritising the enrichment of their executives and shareholders".

"This is evidence of the urgent need to reform company law... to force companies like Shell to address excessive executive pay."-BBC

Marlboro firm sells $2.2bn stake in Bud Light owner

The maker of Marlboro cigarettes, Altria Group, says it will sell more than $2.2bn (£1.7bn) of shares in AB InBev, the owner of the Bud Light and Stella Artois beer brands.

The move will see Altria offloading 35 million AB InBev shares.

The tobacco giant currently owns a stake of around 10% in the world's biggest brewer, worth about $12.7bn.

Bud Light sales have been hit after a US boycott over its work with transgender influencer Dylan Mulvaney.

The sale is "an opportunistic transaction that realises a portion of the substantial return on our long-term investment," Altria's chief executive, Billy Gifford, said in a statement.

"Our continued investment reflects ongoing confidence in ABI's long-term strategies, premium global brands and experienced management team," he added.

Belgium-based AB InBev also said in a filing with regulators that it had agreed to buy $200m of its shares from Altria.

In February, the company - which also owns a stable of other major beer brands including Beck's, Corona and Leffe - said its annual revenues in the US fell by 9.5% "primarily due to the volume decline of Bud Light."

However, globally AB InBev saw total revenues rise by 7.8% for the year, which helped to boost 2023 profits to more than $6.1bn.

Bud Light faced a wave of criticism after it sent a personalised can of beer to Ms Mulvaney for an online post.

Within weeks, industry analysts reported that Modelo - sold in the US by a rival firm - had replaced Bud Light as the top-selling beer in the US, and rivals such as Coors Light and Miller Light were gaining fast.

Following Ms Mulvaney's social media post promoting the beer with her personalised can, many on the right criticised the company for going "woke".

Woke is an informal term from the US, meaning alert to injustice and discrimination in society, particularly racism and sexism. It is often used by the right in a derogatory way towards left-leaning views on topics from climate change to support for minorities.

Musician Kid Rock, NFL player Trae Waynes and model Bri Teresi all shared videos of themselves shooting Bud Light cans.

The company's response to the criticism - which included putting two executives blamed for the relationship on leave - was subsequently decried by many on the left.

AB InBev's US-listed shares fell by almost 4% in extended trading in New York.-BBC

 Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

2024 auction tobacco marketing season opens

13 march

Good Friday

march 29

Easter Monday

1 April

Independence Day

April 18

Workers day

1 May

Companies under Cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

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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.

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