Major International Business Headlines Brief::: 18 March 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  18 March 2024 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: An Emergency Call to End Perennial Power Blackouts

ü  Africa: Pan-African Airline Plans in Limbo As SAA Capital Injection Deal Collapses

ü  Egypt: EU to Provide Egypt $8.06 Billion Funding Package

ü  Angola: Minister of State Denies Debt Moratorium With China

ü  South Sudan: Kiir Sacks New Finance Minister, Appoints 12th Man in 13 Years

ü  Kenya: Govt to Leverage On Kenya Power Lines for Last Mile Internet Connectivity - CS Owalo

ü  Nigeria's Consumer Protection Agency Speaks On Increase in Price of Sachet Water

ü  Nigeria's Electricity Supply Will Improve Within Six Months - Minister

ü  Tanzania: New Dawn for Rwanda-Tanzania Businesses

ü  Uber agrees $178m payout to Australia taxi drivers

ü  United Airlines flight 433 lands safely without panel in Oregon

ü  Norfolk County Council beats Apple in £385m iPhone row

ü  EU backs law against forced labour in supply chains

ü  McDonald's blames global outage on third party

 


 

 


Nigeria: An Emergency Call to End Perennial Power Blackouts

"The time for the review of contracts of Nigerian DisCos and GenCos is due."

 

>From the unending spell of electricity outages in certain parts of the country to complete blackouts in other parts since late last year, the crisis bedeviling the Nigerian power sector has become deeply concerning. It has evoked the usual nauseating blame games among stakeholders in the power value chain. Businesses - small and large scale - have been ruined and social life thrown into jeopardy, while families are grating their teeth as the high cost of fuel to power their generators exacts a heavy toll on their lean finances. Most cannot sleep comfortably at night any more. The health implications are hazardous! Besides slowing economic growth and aggravating unemployment, the power situation is triggering security challenges nationwide. Robberies and criminal activities that thrive under the cover of darkness are gradually becoming commonplace.

 

 

The electricity distribution companies (DisCos) and Transmission Company of Nigeria (TCN) attribute the present low power supply to a slump in generation due to the shortage of gas supply to the electricity generation companies (GenCos). In Ibadan and parts of Ogun state and other areas, constant outages have been attributed to the criminal damage of power infrastructure, recurrent TCN maintenance work and energy theft.

 

This account belies the real issue, which the Minister of Power, Adebayo Adelabu, exposed at a meeting with stakeholders last week. Pointedly, he accused the DisCos of rejecting the power load given to them for distribution, thus throwing the country into avoidable darkness and utter anguish. It has been their long vexatious transactional model, arising from gross incompetence and ill-preparedness for the business, marking them out as the weakest link in the power value chain, as the minister described them; and rightly so.

 

 

Therefore, the minister warned them to improve their service delivery, or have their operational licenses withdrawn. The National Electricity Regulatory Commission (NERC) has been put on alert in this regard. Adelabu emphasised: "Willful refusal by any DisCo to take up available power is a qualified basis for the revocation of license too."

 

No country goes through spells of power outages as often as is the case in Nigeria and expects to be an economic success.

 

When the Power Holding Company of Nigeria (PHCN) was unbundled into 11 firms in 2013, it was thought to be the game-changer in the power sector, required to unleash maximal productivity, which in turn would impel rapid economic growth. Regrettably, the 'game changer' has turned out to be a farce. The unbundling of the power sector was supposed to guarantee that only players with the technical know-how and capacity to invest would be allowed into the arena. Incredibly, available power is still fluctuating between 3,000 megawatts and 4,500 megawatts since then, despite over N1.6 trillion interventions by the Central Bank of Nigeria (CBN) - a development some analysts considered an aberration for a sector that was supposed to have been fully privatised.

 

 

Arguably, deceit and the lack of transparency are embedded in the business templates of many of the DisCos, to the extent that they still dither on installing prepaid meters for their customers, preferring instead their addiction to profiteering by giving bills through the rule of the thumb. One of them said, barefacedly, a few years ago: "As investors, we need to look at where we are going and also consider whether the metering scheme will get us to where we are going. However, if it will not get us to where we are going, we will drop it." Truly, this has continued to define their conduct against what is the global best practice.

 

The DisCos' ill-disposition to the metering project explains why out of 12.8 million registered electricity customers in the country, only 5.7 million of them had been metered as of February 2024, leaving a gap of 7.1 million in over a decade. This is unacceptable. It promotes the weird monthly practice of "estimated billing" system, alluded to, which fleeces customers for power they did not consume; and motivates some criminally-minded elements to resort to power theft, which does not help the system either.

 

The predilection for overbilling in the absence of prepaid meters was writ large in the recent Abuja DisCo's advertised N923 million debt claim against the State House, Abuja, whereas the outstanding reconciled bill paid eventually was N342.3 million. Why the State House and 86 MDAs, said to owe billions of naira, cannot be on prepaid meters, exposes the underbelly of the distribution network's operations.

 

Under such warped business approach, an efficient and transparent system of debt collection from customers across Nigeria is lost. The net effect is the loss of revenue for their operations, inadequate resources or failure to pay the GenCos for power sold to them, and default in paying their heavy indebtedness to banks. The DisCos cannot replace obsolete or damaged transformers, poles, cables, fuses and other technical accoutrement, without illegal levies on communities with electricity repair issues. The GenCos are owed a staggering N1.3 trillion. This is an albatross for the power sector.

 

However, the current abysmal power supply is not new. It has been a routine malady since 2013. Three administrations have experienced the rot, namely: Goodluck Jonathan's regime, which sabotaged national interest in the privatisation; the Muhammadu Buhari administration; and now that of Bola Tinubu. Globally, privatisation is utilised in stimulating economies and attracting foreign direct investments. This was the public expectation a decade ago, but it was dashed here, as reputable international operators were not allowed to be part of the bidding process.

 

As it later became evident, local investors that had neither the financial capacity nor the technical know-how to bring the much-needed sea change in the sector emerged. They ran to our local banks for loans to start off their operations, which could not have been so with foreign investors. What followed was a struggle to service the monthly debts and pay salaries, and little or nothing was left to plough back into the business. Effectively, cronyism and official corruption trumped national interest.

 

 

It is here that the rain started beating the country in its desire for improved power supply. That mess has not been cleared up for a new order to prevail. In 2016, Buhari's address at the National Economic Council retreat alluded to mistakes made and their consequences: constant outages; high electricity bills; obsolete equipment, like transformers; power fluctuations and low voltage. Building gas powered plants in areas where gas pipelines do not exist simply typifies how not to govern and plan for the economy! Unfortunately, the Buhari administration did nothing to change the narrative until he left office.

 

Presently, the power sector is in dire need of FDI to revolutionise it. This is captured in the huge outlay of $900 billion in the National Integrated Infrastructure Master Plan for the next 30 years, which purportedly began in 2014. This implies an injection of $30 billion annually into the system. Neither the government nor our banks have such funds. This ought to be the playground of foreign capital. Therefore, the minister's long term plan for the DisCos to recapitalise is a non-starter, with their indebtedness to local banks already.

 

Arising from all this, the vacuity of the minister's threat to withdraw the licenses of errant DisCos is evident. One of his predecessors, Professor Chinedu Nebo had similarly heckled them on their non-performance on 24 November, 2014 with this note of finality: any culprit would be sanctioned "or its license withdrawn." Nothing happened! With the big masquerades involved, a minister or NERC has no power to beat them into line, where the political will is hollow as it has been since 2013.

 

It is a big shame that an economy that prides on being Africa's biggest, is trifling with just 4000 MWs of electricity generation for over a decade. Nigeria's highest generation was 5,700MW in 2021, according to Adebayo, when South Africa, the second largest economy on the continent, generates 10 times more.

 

Having set up a Power Sector Intervention Fund in 2014, with an initial deposit of N300 billion, and gained nothing, as the prevailing woes exemplify; and with the subsequent unbundling of PHCN and yet the ugly beats go on, this disorder recommends a new Marshall plan. The $800 million Geometric Power plant in Aba, owned by a former Minister of Power, Bath Nnaji, with the capacity to generate and supply electricity round the clock, shows what a well-organised private sector initiative and capital can do. This investment paradigm is one of the ways going forward across the country.

 

The DisCos and GenCos are not the only ones challenged in service delivery. The TCN as a public concern still lacks the capacity to transmit power. Tested operators outside this jurisdiction should come in through a more credible round of privatisation.

 

With shortcomings in gas-powered thermal power configurations, alternative energy sources such as hydro, coal, solar and wind should be pursued vigorously. Every contract has terms of reference that must be adhered to. The time for the review of contracts of Nigerian DisCos and GenCos is due. It they are not measuring up, the government should measure up by being bold enough to terminate them. Nigerians and the economy need a breather. Power drives life.

 

-Premium Times.

 

 

 

 

Africa: Pan-African Airline Plans in Limbo As SAA Capital Injection Deal Collapses

Pan-African Airline, a highly anticipated venture, finds itself in a state of uncertainty following the collapse of plans for a private capital infusion into South African Airways (SAA).

 

The plan, spearheaded by the Takatso Group over the past three years, aimed to secure a majority stake in South Africa's national carrier, paving the way for its resurgence with fresh financial backing.

 

Initially, the Takatso Aviation consortium, endorsed by the government as the preferred partner, secured approval for acquiring a 51 percent share in SAA.

 

However, recent developments have derailed this trajectory as the South African Government disclosed that the proposed acquisition has faltered due to a revised transaction structure.

 

 

"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," said the Government.

 

The envisioned Pan-African Airlines, a collaborative effort between Kenya Airways and SAA, was slated for establishment this year. However, Kenya Airways revealed last week that the project faces postponement as both airlines prioritise recapitalisation efforts.

 

"The plans are still on but will be delayed because we are recapitalising this year, and I believe so is SAA," Allan Kilavuka, CEO of Kenya Airways told Business Day Africa earlier.

 

Under the leadership of Harith General Partners, Takatso Group had outlined a plan to acquire a controlling 51 percent stake in SAA Group, injecting a substantial sum of $167 million into the carrier's operational coffers.

 

The genesis of this collaboration traces back to November 2021 when a strategic partnership framework was inked between Kenya Airways and South African Airways, witnessed by Presidents Cyril Ramaphosa and Uhuru Kenyatta (former) of South Africa and Kenya, respectively.

 

This pact aimed to synergise assets, bolster connectivity for both passengers and cargo, and render air travel more accessible through competitive pricing and expanded route networks.

 

-Business Day Africa.

 

 

 

 

Egypt: EU to Provide Egypt $8.06 Billion Funding Package

The money, paid out over three years, is partly to help Egypt "move further away from Russian gas" and fund efforts to curb migration.

 

The European Union will provide Egypt with a funding package of €7.4 billion ($8.06 billion) from 2024-2027, the EU Commission announced on Sunday.

 

The funding is intended to assist Egypt in stabilizing its economy while reducing its dependence on Russian gas. It includes a grant to help address the flow of migrants from the region into Europe.

 

The deal includes €5 billion of macro-financial assistance, €1.8 billion of investments and €600 million in grants over the next three years to support Egypt's faltering economy.

 

European Commission President Ursula von der Leyen headed a delegation of several European leaders meeting President Abdel Fattah el-Sisi in Cairo.

 

Egypt's strategic importance

 

 

The agreement lifts the EU's relationship with Egypt to a "strategic partnership" aimed at boosting cooperation in renewable energy, trade, and security.

 

"With Egypt's political and economic weight and its strategic location in a very troubled neighborhood, the importance of our relations will only increase over time," von der Leyen wrote on X, formerly Twitter."

 

El-Sissi's office said in a statement that the deal aims to achieve "a significant leap in cooperation and coordination between the two sides and to achieve common interests."

 

Egypt's economy, which is focused on expensive infrastructure mega-projects, has been hit hard by recent economic shocks.

 

The country is under political and economic pressure due to the ongoing conflict in Gaza. Fighting there has meant important income earners for Egypt, like tourism and shipping through the Suez Canal, have been throttled.

 

 

Earlier this month the International Monetary Fund (IMF) agreed to an $8 billion loan package after Cairo implemented a flexible exchange rate and raised interest rates.

 

That followed an announcement in February by Egyptian leaders that the United Arab Emirates would be investing €32 billion directly into the Egyptian economy, mostly via a construction project at Ras al-Hikma, a Mediterranean peninsula near the city of Alexandria.

 

EU concerned by migration flows

 

European governments have long been worried about the risk of instability in Egypt where economic adversity has pushed increasing numbers to migrate.

 

This is in addition to the 9 million migrants and refugees that the UN's International Organization for Migration has residing in the country.

 

A senior European Commission official said the deal includes steps on "security, counter-terrorism cooperation, and protection of borders, in particular the southern one" with Sudan.

 

It follows other controversial deals the EU has sealed in northern Africa, including Libya, Tunisia and Mauritania, to stem the flow of irregular migrants.

 

Italian Prime Minister Giorgia Meloni and Greek Prime Minister Kyriakos Mitsotakis, whose countries are front-line countries that receive the vast majority of migrants to Europe, joned Von Der Leyen on her Cairo trip.

 

The Greek government is especially worried about the increasing arrivals of migrants of Egyptian origin.

 

The UN Refugee Agency has already registered more than 1,000 people arriving on Greece's southernmost island, Gavdos, and neighboring Crete, via a new refugee route from Tobruk in Libya.

 

The EU will provide assistance to Egypt's government to fortify its borders.

 

US-based Human Rights Watch criticized what it labeled "the EU's cash-for-migration-control approach" that it said "strengthens authoritarian rulers while betraying human rights defenders, journalists, lawyers and activists whose work involves great personal risk."

 

lo/sms (AFP, dpa, Reuters)

 

 

 

 

Angola: Minister of State Denies Debt Moratorium With China

Shandong — The Minister of State for Economic Coordination, José Massano, clarified Sunday, in Shandong, that the debt relief agreement between Angola and the People's Republic of China does not mean a moratorium (delay or suspension of payment).

 

Speaking to the press, regarding the results of President João Lourenço's visit to China, the official said that, despite the agreements reached, the debt payment schedule remains unchanged.

 

According to José Massano, negotiations with the main creditor, the China Development Bank, resulted in an agreement to "restating the reimbursement mechanics".

 

 

Angola has a debt with the People's Republic of China set at around 17 billion US dollars, according to data presented this week by the Angolan Head of State, during official negotiations.

 

The Angolan President detailed that, of this amount, around 12 billion US dollars were contracted from the Chinese Development Bank (CDB) and EximBank, with oil collateral and reimbursement clauses that burden debt service.

 

According to José Massano, within the framework of the negotiations, China became more flexible and gave Angola the possibility to deliver a lower guarantee reserve.

 

'The calendar is not changed, but what will now happen is that our installments, part of which served to constitute a guarantee reserve, this reserve will become lower, allowing us to release, on average, per month, something around USD 150/200 million'.

 

He stressed that there was only a change in mechanics, particularly the constitution of reserves, guarantees for debt service, and therefore there was no moratorium.

 

 

'We managed to leave here with closed deals. We are not talking about moratoriums here. That's not what brought us. We have these deposits for future responsibilities', stressed the Minister of State.

 

The government official indicated that the agreements reached will bring two gains to Angola, that is, 'part of the deposits made will be returned to Angola', and onwards there will be 'a need for fewer idle resources to fulfill these services'.

 

He said that Angola should, from April onwards, start to feel this change, having highlighted that the initial calendar will be fulfilled from the point of view of maturity.

 

'It didn't care, nor did it extend its maturity. It will remain the same as we had initially. From April onwards, we will have greater availability on the treasury side, to meet the needs of importing goods and services that the country does not yet have internally, somewhere around 150 to 200 million dollars/month', he reiterated.

 

 

Therefore, he said, debt relief will allow not only greater flexibility in the execution of the General State Budget, but also the country's ability to supply the foreign exchange market with more resources necessary for imports of goods and services.

 

In another area, he said that the visit made it possible to make progress with financial institutions, in terms of mobilizing resources, as 'the lines were coming to an end'.

 

'We have agreements with disbursement deadlines, periods

 

for us to use resources, but some projects are at a stage that indicates that a longer period is needed for these disbursements', he explained.

 

José de Lima Massano said that, there too, there was an agreement and the periods were extended.

 

'It means that we can continue to execute the projects with this security of having the funds available to guarantee payment to contractors,' he assured.

 

Likewise, he indicated, the country managed to obtain guarantees of developments that will continue, and lines of credit for small and medium-sized companies, here also with the China Development Bank.

 

'Furthermore, we must highlight the great flexibility we found from Chinese financial institutions, which understood our context, the history of the relationship and the fact that we do not have situations of non-compliance. This allowed them to have greater confidence,' he commented.

 

With these gains, José Massano said that there will be, on the institutional side, this flexibility, but also a greater interest in supporting the private sector, particularly small and medium-sized companies.

 

Regarding the business side, he stated that there were also very positive results, because there was a considerable number of Chinese companies (they are among the largest in the world) interested in investing in Angola.

 

These companies, he said, want to invest in various domains such as healthcare, agriculture, military industry and textile industry.

 

'We therefore have strong expectations of more direct Chinese investment in our economy, helping to face the great challenges that the country is facing', he said, stressing that 'it was a successful mission'.

 

According to the Minister of State for Economic Coordination, the main objectives that the Executive intended with the mission to China were achieved. FMA/VIC/DOJ

 

-ANGOP.

 

 

 

 

South Sudan: Kiir Sacks New Finance Minister, Appoints 12th Man in 13 Years

South Sudan President Salva Kiir has sacked his finance and planning minister after just six months in office.

 

In a presidential decree on Friday evening, Kiir replaced Dr Bak Barnaba Chol with Daniel Awow Chuang.

 

South Sudan is primed to go to polls for the first time in December even as indications are that the election will be pushed back by at least two more years.

 

Chuang, an engineer, was a minister for petroleum just two years ago before he was sacked. He was later appointed as a technical advisor in the finance and planning ministry under Dr Bak.

 

Eng Chuang becomes the 12th minister of finance and planning since independence on July 9, 2011 - and the 20th since 2005 when South Sudan signed the Comprehensive Peace Agreement that marked its separation from the Arab north.

 

Dr Bak's sacking comes on the back of the country's civil service going six months without salary amid skyrocketing inflation.

 

 

In February, he angered a section of war veterans with comments after their protest over delays in payment of medical allowances.

 

Also read: South Sudan's new finance minister braving 'ghosts' and crocodiles

 

He also left Kiir fuming after admitting that the country had no money to meet the 400 percent pay rise government had pushed for in August.

 

Bak, 43, had been picked from the University of Juba where he taught economics. He arrived with a youthful vigour and rare boldness after apparently diagnosing corruption and endemic failure to deposit revenue collection into the Consolidated Fund.

 

But his economic reform policy triggered a quiet backlash. Matters rose to a head when Bak restructured operations at Nimule border post and sent several illegal revenue collectors packing.

 

He also ramped up the push for reforms in the payroll to drain the economy of 'ghost' workers and refused to clear several invoices, saying claims had to first be verified.

 

While Kiir initially supported the youngest minister he ever appointed - including issuing a presidential decree on January 15 to approve of the payroll reforms and forensic audit into claims worth millions of dollars - Friday evening's decision shows Bak was fighting a vain battle.

 

South Sudan has hardly had an economy. Its finance and planning ministry is the cash cow for the powerful, who lobby day and night for appointment that would give them powers over the central bank and national petroleum authority.

 

-Nile Post.

 

 

 

 

Kenya: Govt to Leverage On Kenya Power Lines for Last Mile Internet Connectivity - CS Owalo

Siaya — The government will use the existing Kenya Power infrastructure to take fiber optic cable to the rural areas, cabinet secretary for Information, Communication and the Digital Economy, Eliud Owalo has said.

 

Owalo said that the government has already embarked on the program that will see over 100,000 kilometers of fiber optic cable laid as part of the last-mile internet connectivity across the country.

 

He was speaking today at Ajigo and Ndori markets in Bondo and Rarieda sub-counties respectively where he officially launched free public Wi-Fi.

 

"We have changed the model of rolling out the fiber. As opposed to digging trenches to lay fiber, we are going to leverage on the already existing Kenya Power lines so that as we roll out electricity, we also roll out fiber using the same lines" said Owalo.

 

 

He was flanked by Siaya county commissioner, Susan Waweru, Bondo member of parliament, Dr. Gideon Ochanda, former Rarieda MP, Nicholas Gumbo, and former police spokesman, Charles Owino among others.

 

Owalo said that the government plans to launch 25,000 Wi-Fi hotspots across the country and also launch 1450 digital hubs in each ward countrywide.

 

"To sort the question of youth unemployment, we want to establish and operationalize a digital hub in every ward," he said adding that already, members of parliament have facilitated the review of the constituencies development fund act so that three percent of the funds will be used to establish the facilities.

 

The cabinet secretary called on Kenyans to support the Kenya Kwanza government to enable it to deliver on its mandate, adding that the days of politicking were over.

 

Owalo said that through the leadership of President William Ruto, the government was committed to the improvement of infrastructure in the wider Nyanza region.

 

About The Author

 

KNA

 

See author's posts

 

-Capital FM.

 

 

 

 

 

Nigeria's Consumer Protection Agency Speaks On Increase in Price of Sachet Water

The price of sachet water has gone up across the country in recent times.

 

The Federal Competition and Consumer Protection Commission (FCCPC) on Friday described the increase in the price of sachet water in the country as unacceptable and unfair.

 

The FCCPC acting Executive Vice-Chairman/Chief Executive Officer, Adamu Abdullahi, disclosed this while speaking at an event to commemorate the 2024 World Consumer Rights Day in Abuja on Friday.

 

The price of sachet water has gone up across the country in recent times. Currently, a bag of sachet water sold between N200 and N250 now sells as high as N500 in Abuja and other parts of the country.

 

 

Some residents of the Enugu metropolis had earlier in February expressed discontent over the scarcity and rising cost of drinking water in the state capital despite the state government's promises.

 

Speaking on Friday, Mr Abdullahi explained that there was no reason for the increase in the price of sachet water in the country while noting that the astronomical increase in the price of sachet water by various associations is "unacceptable and unfair" to consumers.

 

"Yes, power (electricity), fuel, and price of nylon have increased, but that cannot explain the cause of the astronomical rise in price," Mr Abdullahi said.

 

"What we have discovered is that most products now have associations, even the sachet water producers. When you have your eggs that you brought from your farm to sell at Wuse Market, the association of egg sellers will tell you that you have to sell to them at cheaper rates while they resell to consumers at higher prices," he added.

 

 

He noted that this has now resulted in the emergence of cartels.

 

"And cartels, anywhere in the world, are not acceptable. Our act is against price fixing, and it is not acceptable to us. We will find out these cartels and do something about their activities. Consumers international joined the efforts that gave us an inkling of how prices have rolled in Nigeria in the last three months, and it is so surprising and unacceptable.

 

"It is simply the issue of cartels, and we have to break in, find out what is going on, and dissolve such cartels. But the consumers are the ones who will lodge the complaint with us before we go and find out.

 

"As we navigate the complexities of the digital age, permit me to state that FCCPC is also concerned with other prevailing issues bedevilling consumers in Nigeria, particularly the rapidly rising price of food, as in most other nations of the world," he added.

 

Notwithstanding, Mr Abdullahi said the commission is not a price control agency.

 

"We are deeply committed to addressing the rapid rise in food prices affecting Nigerian consumers," he said.

 

He further explained that the surge in food prices can be attributed to various factors, including market cartels, price fixing, hoarding, and gouging or a lack of transparency in pricing.

 

"A few weeks ago, we intensified our surveillance operations. This led to an enforcement action against unlawful and unfair pricing practices thus sending a clear message that such behaviours will not be tolerated.

 

"The FCCPC is actively engaged in combating these challenges to ensure fair pricing and protect consumers' interests. I assure you that despite the challenges we face in the marketplace, the FCCPC remains resolute in its determination to protect Nigerian consumers and create the enabling environment for businesses to compete," he said.

 

-Premium Times.

 

 

 

 

Nigeria's Electricity Supply Will Improve Within Six Months - Minister

The minister maintained that the federal government's position on the implementation of a cost-reflective tariff for the power sector was inevitable.

 

The Minister of Power, Adebayo Adelabu, has assured Nigerians that the ongoing power upgrade and investment in the power sector would improve electricity supply within the next three to six months.

 

Mr Adelabu gave the assurance during a working visit to some ongoing projects in Maryland and Alausa substations on Thursday in Lagos.

 

The News Agency of Nigeria (NAN) reports that Mr Adelabu visited Ikeja Electric and other ongoing projects in the Lagos metropolis.

 

 

He disclosed that upgrading some substations in Lagos by the Transmission Company of Nigeria (TCN) had commenced on 30MVA transformers to 100 MVA and 205 MVA in Maryland and Alausa, respectively.

 

The minister maintained that the federal government's position on the implementation of a cost-reflective tariff for the power sector was inevitable.

 

He said that investment across distribution companies (DisCos) was low due to the unavailability of funds to carry out infrastructure upgrades, appealing to the companies to ensure good service delivery to justify tariff review.

 

He said the ministry would do all it could to ensure that DisCos up their games through massive investment, noting, "if that fails, it will resort to legal backing."

 

Mr Adelabu bemoaned the rising cases of vandalism of power assets across the country, recommending capital punishment for vandals.

 

 

He labelled vandals of power assets as "killers of people and saboteurs of business growth".

 

"We need scapegoats. We are ready to give them the right punishment in terms of prosecution.

 

"Punishment for vandals should go beyond six months jail term. Capital punishment should be meted out to power vandals. They kill people, and they kill businesses," he said.Mr Adelabu added that all hands must be on deck among operators within the power sector value chain.

 

He said it remained worrisome that the country with an installed capacity of 13,000MW was generating a paltry 5,000MW.

 

Mr Adelabu pledged to change his master plan from a top-to-bottom approach to a bottom-to-top.

 

"Going forward, efforts will now be concentrated on development and infrastructure upgrade from DisCos to GenCos and then transmission.

 

"If we get it right at the DisCo level, then we are most certain that we are almost getting there. The meeting is planned, not accidental. You have made landmark achievements in the last 10 years.

 

 

"You have done well in relation to other DisCos. We can just shake your hands and leave, but they said the biggest room is the room for improvement.

 

"You are a model DisCo, the biggest in terms of revenue collection. I don't know the one that is bigger between you and Ibadan DisCo, in terms of industrial clusters, because I am aware there are a lot of industries within your catchment areas," he said.

 

Mr Adelabu urged Nigerians to continue contributing positively to the growth of the country despite the current economic challenges.

 

"It is a bad time for the country. I mean, if you look at the hardship in terms of commodities and prices, these have affected the purchasing power of a lot of people.

 

"I believe that this is the time for all of us to wake up and do things well for the country.

 

"Though I am bothered about what is happening, but I am not discouraged.

 

"This is the time that you (DisCos) should work hard with us to get desired improvements in power supply to people and businesses," he added.

 

He urged DisCos to work closely with the government to expedite national development through a sustainable power sector for a reliable and cost-effective sustainable power supply.

 

Earlier in her address, the Chief Executive Officer of Ikeja Electric, Folake Soetan, while reeling out some of the giant strides recorded by the company, said that the company had achieved a lot in terms of infrastructure upgrades and capital expenditure.

 

Ms Soetan said that the company's total CAPEX in 2015 was N5 billion but grew to N50.58 billion in 2023.

 

She added that the average revenue collection in 2015 was N3.75 billion and grew to N18.22 billion as of 2023.

 

On metering, she said 30,000 meters were deployed to consumers as of 2015, while the figure hit 800,000 as of 2023.

 

Ms Soetan lamented that revenue collection in the industry was largely hampered by the huge metering gap and non-payment of bills.

 

She worried that meter bypass and energy theft contributed immensely to the losses recorded by DisCos.

 

The Ikeja Electric boss said power generating capacity was still significantly lower than the electricity demand.

 

This she noted had resulted in frequent power outages and load shedding.

 

(NAN)

 

-Premium Times.

 

 

 

 

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.

 

 

 

 

Uber agrees $178m payout to Australia taxi drivers

Uber has agreed to pay A$271.8m ($178.3m; £140m) to settle a lawsuit in Australia, according to a law firm for taxi operators and drivers.

 

Maurice Blackburn Lawyers filed the class action on behalf of over 8,000 taxi and hire car owners and drivers.

 

The case alleged they lost income when the the ride-hailing giant "aggressively" moved into the country.

 

"Uber fought tooth and nail at every point along the way," the law firm said.

 

"Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today's proposed settlement, we put these legacy issues firmly in our past," Uber said in a statement.

 

The company did not disclose the size of the proposed settlement.

 

"It would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court," it said.

 

 

The class action was filed against Uber in 2019 in the Supreme Court of Australia's Victoria state.

 

"This case succeeded where so many others have failed. In Victoria, Queensland and Western Australia, cases were brought against governments and all of them failed," Maurice Blackburn principal lawyer Michael Donelly said.

 

"What our group members asked for was not another set of excuses - but an outcome - and today we have delivered it for them," he added.

 

Before any pay out can be made the court still needs to approve the proposed settlement as being in the best interests of group members.

 

San Francisco-based Uber, which was founded in 2009, operates in around 70 countries and more than 10,000 cities globally.

 

Over the years, it has faced protests by taxi drivers in cities around the world.

 

In December 2023, the company won a lawsuit brought against it by 2,500 taxi drivers in France.

 

 

A Paris commercial court ruled that Uber had not committed acts of unfair competition.

 

The taxi drivers had been seeking €455m ($495.4m; £389m).-bbc

 

 

 

 

United Airlines flight 433 lands safely without panel in Oregon

A Boeing plane landed without one of its fuselage panels at an airport in the US state of Oregon on Friday, says United Airlines.

 

A spokesperson said United flight 433, from San Francisco, arrived at the Rogue Valley International Airport in Medford, Oregon, at about 11:30 (18:30 GMT) on Friday.

 

The 25-year-old Boeing 737-800 was carrying 139 passengers and 6 crew.

 

No-one was injured - the missing panel went unnoticed during the flight.

 

Boeing is under fierce scrutiny after a series of high-profile safety incidents.

 

 

Amber Judd, a senior official at Rogue Valley International Medford Airport, said the plane landed safely and the external panel was only discovered missing during a post-flight inspection.

 

"We'll conduct a thorough examination of the plane and perform all the needed repairs before it returns to service," she said.

 

An investigation would be carried out "to better better understand how this damage occurred", she added.

 

The missing panel was next to the landing gear, on the underside of the aircraft, according to images of the aircraft on social media. All outgoing and incoming flights were paused at the airport to search for debris, none was found.

 

The US Federal Aviation Authority (FAA) said it was investigating how the panel came apart.

 

 

Boeing came under renewed scrutiny after a January incident involving a Boeing 737 Max 9 - part of a new range of planes to succeed older 737s - saw an unused cabin door blow out a few minutes after take-off in January.

 

The incident on board Alaska Airlines flight 1282 left a gaping hole in the side of the plane and forced an emergency landing.

 

National Transportation Safety Board A National Transportation Safety Board investigator surveys the broken window panel, in an image from the investigation taken two days after the incident in JanuaryNational Transportation Safety Board

A safety board investigator examines the broken panel two days after the incident in January

Testifying before US lawmakers on 7 February after the Alaska Airlines blowout incident, the head of the FAA, Mike Whitaker, said inspections of 737 Max aircraft had shown that "the quality system issues at Boeing were unacceptable and require further scrutiny".

 

Initial findings of a probe found that four key bolts that were meant to lock the unused door to the fuselage appeared to be missing. Mr Whitaker said that Boeing would be held accountable for any future failure or refusal to comply with the FAA.

 

 

Earlier this month, fumes detected in the cabin of an Alaska Airlines Boeing 737-800 bound for Phoenix forced pilots to return to Portland airport.

 

Fifty hurt as jet to NZ hit by 'technical' issue

Boeing whistleblower found dead in US

Boeing 737 Max boss out after blowout

On Monday, at least 50 people were injured after a Boeing 787-9 Dreamliner flying from Australia to New Zealand suddenly dropped without warning, leaving passengers who were not wearing seatbelts tossed into aisles and flung into the ceiling.

 

In response to that incident, Boeing has told airlines that pilots need to check their seats - after reports said a flight attendant accidentally hit a switch in the cockpit which pushed the pilot's seat forward into the controls - forcing the plane's nose down.

 

Despite the reported incidents, commercial aviation remains one of the safest ways to travel, experts and regulators say.-BBC

 

 

 

 

Norfolk County Council beats Apple in £385m iPhone row

Apple has agreed to pay $490m (£385m) to settle a lawsuit led by Norfolk County Council.

 

The class action alleged the tech giant's boss, Tim Cook, defrauded shareholders by covering up lower demand for iPhones in China.

 

Norfolk Council said a pension fund it administered lost money as a result of Mr Cook's actions.

 

In a statement, the Norfolk Pension Fund said it was "very proud of this recovery for investors."

 

The statement continued: "We are mindful that we are stewards of pensions relied upon by thousands of families and individuals.

 

"When and where it's warranted, we will take decisive action to recover losses when our participants' investments are harmed by fraud."

 

The BBC has approached Apple for comment.

 

 

The class action lawsuit - meaning it is on behalf of a group of claimants - centred around comments made by Apple's chief executive Tim Cook.

 

He told investors on 1 November 2018 that there was "sales pressure" in some countries but he "would not put China in that category."

 

However, two months later, on 2 January 2019, Apple downgraded its quarterly revenue forecast, citing tensions between China and the US - leading to a sharp drop in Apple's share price.

 

Within that two-month window, reports emerged that Apple had told its top smartphone assemblers to "halt plans for additional production lines" for the recently released iPhone XR.

 

The claimants in this case were all investors who had bought shares between November 2018 and January 2019.

 

They said they lost money because they had been falsely reassured by Mr Cook's comments in November.

 

The case was originally brought against Apple and Mr Cook by the US city of Roseville. Norfolk Council, which administers the £4.9bn Norfolk Pension Fund, took over the lawsuit as lead plaintiff in 2020.

 

 

Apple had fought the litigation, and a trial was scheduled for later this year. This preliminary settlement - filed on Friday with the U.S. District Court in Oakland, California - should mean that will no longer happen, however it still requires approval by a judge.

 

It is not known what portion of the settlement Norfolk County Council will receive.

 

Apple posted $97 billion of net income in the last fiscal year. The pay-out equals a little under two days of profit for what is one of the world's wealthiest companies.-BBC

 

 

 

 

EU backs law against forced labour in supply chains

Human rights campaigners wanted the EU law to go further in tackling forced labour

European Union countries have agreed to a law requiring companies to ensure their supply chains do not cause environmental damage or use forced labour.

 

A majority of 17 out of the 27 members backed the legislation on Friday and there were no votes against it.

 

The agreement came only after substantial changes were made to the original text.

 

Critics argue that the law has now been diluted too much to be effective.

 

The Corporate Sustainability Due Diligence Directive (CSDDD) will mean European companies have to document that products they import adhere to environmental and human rights standards, such as not involving child labour.

 

 

They will also be required to prevent or minimise potential harm and to communicate their findings.

 

However, compromises made following weeks of negotiations on the draft text mean only larger businesses that have 1,000 employees or more and which have a net turnover of at least €450m (£384m; $489m) will be affected.

 

The original proposal was for it to affect firms with 500 employees or more and with a revenue of €150m.

 

The draft legislation must be approved by the European Parliament to become law - and MEPs are expected to back it.

 

Businesses will then be given time to implement the new practices.

 

 

Friday's approval of the draft legislation comes after the bloc failed twice in February to get it approved.

 

Among the countries that objected to the original text were Germany and Italy, which feared it would hit their industries harder due to their high numbers of small and medium businesses.

 

There were also concerns that companies would remove themselves from the EU due to bureaucracy and legal risks.

 

Markus Beyrer, Director General of lobby group BusinessEurope, said the new rules would add "unparalleled obligations, set harsh sanctions with potential existential implications for companies, and unilaterally expose them to litigation from all parts of the world".

 

"European companies with global operations, some with millions of indirect relationships, will be put at a disadvantage compared to their global competitors," Mr Beyrer added.

 

 

Environmental and human rights campaigners welcomed the move to improve firms' accountability, but voiced disappointment with the draft law.

 

According to the World Wide Fund for Nature (WWF), almost 70% of European companies have been removed from the new obligations due to the changes to the draft text.

 

"This spineless deal completely disregards the needs of both companies and communities to effectively tackle the impacts of climate change," said Uku Lilleväli, a WWF spokesperson.

 

Oxfam's Economic Justice lead Marc-Olivier Herman said "they slashed the rules to appease big business, dealing a blow to Europe's self-claimed standing as a champion of democracy and human rights".

 

Campaign group Anti-Slavery International wrote on X, formerly Twitter, that it was "very happy to see that the [European] Council has been able to come together and uphold this commitment, prioritising people and planet over political and business interests".-BBC

 

 

 

 

McDonald's blames global outage on third party

McDonald's has revealed the technical problems which brought much of its fast food chain to a standstill on Friday were caused by a third party provider.

 

The international restaurant said the global outage happened during a "configuration change" and stopped stores taking orders in the UK, Australia and Japan - amongst others.

 

McDonald's stressed the issue was not caused by a cyber attack.

 

Stores in the UK and Australia are open again after their systems froze.

 

Those in Japan are reportedly also resuming trade after being forced to close.

 

 

The company experienced a "global technology system outage, which was quickly identified and corrected," McDonald's chief information officer Brian Rice, said.

 

He said many countries were now operating normally while the rest were in the process of coming back online.

 

"Notably, this issue was not directly caused by a cybersecurity event - rather, it was caused by a third-party provider during a configuration change," he added.

 

Mr Rice said what had happened was the "exception to the norm, and we are working with absolute urgency to resolve it".

 

'Couldn't serve anyone'

Problems started in the early hours and continued throughout the morning, but the company would not say how many stores were affected.

 

 

Sarah McLean, who owns a franchise across the Midlands, said that all of her 21 branches had been affected.

 

"My restaurants were impacted very early in the morning, so thankfully the impact wasn't too significant, about an hour and a half," she told the BBC. But during that time they "couldn't serve anyone".

 

Downdetector, a system used to monitor IT problems in businesses, noted a spike in issues with the McDonald's UK app from around 05:00 GMT on Friday.

 

Some social media users posted their discontent.

 

"@McDonaldsUK why can I order through the app this morning but all of my local McDonald's are closed when they are meant to be 24 hours?!" Tom Bennison in the East Midlands posted on X, formerly Twitter.

 

 

Andrew Evans in Birmingham posted: "Hmmm @McDonaldsUK my local is turning everyone away saying there's a national outage on your ordering system?"

 

Problems were reported in several countries, including New Zealand, Austria and Germany, but come the afternoon they were starting to get resolved.

 

Japanese news agency Kyodo reported that stores across Japan were beginning to resume operations following the system disruption.

 

McDonald's in Japan had earlier said: "There is currently a system failure. We apologise for any inconvenience this may cause and ask that you please wait for a while until the service is restored."

 

Posting on X, Ted Anderson said he had gone into a restaurant in Japan to find it cash only and staff "calculating the totals on paper".

 

 

By 14:15 GMT, McDonald's Australia said all of its restaurants had re-opened.

 

"A huge thanks again to our wonderful customers and hard-working crew for your patience and support," it said.

 

In New Zealand, X user Germin van Royen said: "The Mcdonalds outage is crazy. Went in tonight and drive thru + all kiosks were down. A system that can fail nation wide is bad but across multiple countries too!? Bonkers."

 

The fast food chain has about 40,000 restaurants worldwide, with around 1,450 restaurants across the UK and Ireland and more than 14,000 stores in the United States.

 

It operates nearly 3,000 across Japan and roughly 1,000 in Australia.-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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