BizBytes – 29 June, 2023
Thursday 29 June, 2023
AI Video Startup Runway Secures $141M Funding from Google, and Nvidia for Advancing Video Generation Technology
New York-based AI startup Runway AI has raised $141 million in funding from investors, including Google, Nvidia, and Salesforce. The company specialises in artificial intelligence software that can create short videos based on typed words. The latest funding brings Runway's total raised amount to approximately $237 million. The investment will be used to research video and image-generation AI models further. Runway's innovative technology aims to tackle the complexities of generating videos from written prompts, offering new possibilities for AI in the content creation industry.
Moody's Partners with Microsoft and OpenAI to Develop AI Assistant for Risk Assessment
Moody's Corporation has announced its collaboration with Microsoft and OpenAI to create an artificial intelligence (AI) assistant called "Moody's Research Assistant." The tool aims to help customers, including analysts, bankers, advisers, researchers, and investors, analyse the information required for risk assessments. Moody's plans to showcase a version of the assistant to select clients later this year. The company has already deployed Microsoft's AI assistant technology to its employees, enabling them to search internal data, including Moody's Orbis database. Moody's envisions future AI assistants for lending, underwriting, and other tasks. -Bloomberg
France Gears Up for Further Protests Following Police Shooting of Teenager
France is preparing for more clashes and protests after the police killing of a teenager in Paris sparked widespread unrest. The government mobilises 40,000 police officers, including 5,000 in Paris, as demonstrations spread beyond the suburbs. The officer who fired the fatal shot has been detained and investigated for murder. The violence on Wednesday night resulted in over 180 arrests, and officials, including President Emmanuel Macron, have condemned the attacks. The incident highlights long-standing tensions in France's poorer suburbs and raises questions about policing practices. -Bloomberg
Moody's: Eskom Debt Plan Reduces Risks for South Africa, Boosts Liquidity
Moody's Investors Service has stated that South Africa's plan to provide debt relief to struggling power utility Eskom Holdings SOC Ltd. and potentially write off municipalities' arrears will enhance liquidity and reduce funding risks for the government. The proposed R254bn ($13.6bn) relief package aims to strengthen Eskom's balance sheet by covering interest payments over the next three years, contingent on private partnerships to operate its plants and transmission network. Moody's analysts believe that if Eskom successfully implements the plan, it would benefit the wider economy, sovereign, municipalities, banks, and companies. The proposal is also expected to strengthen Eskom's balance sheet and mitigate nonpayment risks on its debt. -Bloomberg
South Africa's Central Bank Governor Foresees Prolonged Period of High-Interest Rates
South Africa's central bank governor, Lesetja Kganyago, stated that monetary policy would remain tight for a longer duration to tackle persistent inflation. Despite a recent slowdown in inflation, it has remained above the central bank's target range for a year. The repurchase rate currently stands at 8.25%, the highest level in 14 years. The duration of higher interest rates will depend on whether inflation reaches the target and remains anchored. There is uncertainty regarding whether the central bank will follow the Federal Reserve and pause interest rate hikes in the upcoming meeting.
South African Court Declares Cancellation of Zimbabwean Permits Unlawful
South Africa's High Court has ruled that cancelling special permits for Zimbabwean nationals, which grant them the right to live and work in the country, is unconstitutional and unlawful. The decision to end the permits, affecting around 178,000 Zimbabweans, was challenged by the Helen Suzman Foundation due to a lack of public consultation. The court ruling prohibits the arrest and deportation of permit holders who don't possess a valid exemption certificate. The government has been given until the end of 2024 to rectify the process.
South African Banks and Insurers Criticized for Lack of Succession Planning
South African financial institutions are facing criticism for their inadequate succession planning, resulting in excessive reliance on current personnel, warns the Prudential Authority. Large banks are particularly vulnerable as retiring board members leave behind a lack of ready successors. Smaller banks and insurers struggle to retain talent due to bigger rivals offering higher salaries, compounded by rising emigration hindering their ability to attract and retain skilled professionals. The concerns arise as Nedbank Group and Investec Plc search for successors for their CEOs and other key positions.
BMW Invests R4.2bn in SA Plant, Paving the Way for Electric Future
BMW South Africa is committing R4.2bn over five years to transform its Rosslyn manufacturing plant for the era of electro-mobility. The investment will prepare the facility to produce the next-generation BMW X3, the first electric model manufactured in South Africa exclusively for global markets. This move underscores BMW's dedication to the country, secures jobs, and positions the company as a key player in the automotive industry's transition to a greener economy.
Ex-Finance Minister of Mozambique to be Extradited to US for Credit Suisse Bond Fraud
Manuel Chang, the former Finance Minister of Mozambique, is set to be extradited to New York in July to face charges related to a $2 billion bond fraud scandal involving Credit Suisse. Chang, detained in South Africa since December 2018, is accused of conspiring with Credit Suisse bankers to deepen Mozambique's debt through dubious maritime projects. Credit Suisse paid a settlement of nearly $475 million in 2021, while a Credit Suisse unit and three former bankers pleaded guilty in the same case. Mozambique is challenging associated loans in the London High Court.
Poland Bolsters Border Security Amid Wagner Threat, Braces for Hybrid Warfare Escalation
Poland will enhance security measures on its border with Belarus due to concerns over the presence of Wagner mercenary forces and the potential escalation of hybrid warfare. Deputy Prime Minister Jaroslaw Kaczynski expressed worries about the situation's danger to Ukraine, Lithuania, and Poland. The Polish government has observed increased attempts by migrants from Africa and the Middle East to cross into the country from Belarus, accusing President Alexander Lukashenko's government of aiding the process. Poland intends to increase military presence and build new defenses along the border. The ruling Law & Justice party plans to propose stricter border protection measures at the EU summit. -Bloomberg
Gates Foundation Invests $550 Million in Final-Stage Trial of Tuberculosis Vaccine, Aiming to Replace Century-Old Shot
The Bill & Melinda Gates Foundation, in collaboration with the Wellcome Trust, will conduct a $550 million final-stage trial for a tuberculosis (TB) vaccine. The aim is to determine whether it can replace the currently used, century-old shot, which has limited effectiveness. Led by the Gates Medical Research Institute, the study will receive $400 million from the Gates Foundation and up to $150 million from the Wellcome Trust. TB affects a quarter of the global population, causing 1.6 million deaths in 2021. The experimental vaccine is expected to offer better protection against the disease and reduce its spread. -Bloomberg
Eskom Latest: Generation Improves, Off-Peak Blackouts Suspended
By Paul Burkhardt and Mpho Hlakudi
Eskom Holdings SOC Ltd. said it has developed guidelines to allocate access to the country's electricity grid, prioritizing projects that are ready for development.
While the most industrialized nation on the continent is in need of generation capacity to end record power outages, projects have been sidelined due to a shortage of connections to the grid. The utility has drafted rules designed to grant equal access to stations "based on a demonstrated readiness," according to Eskom officials.
The practice of "grid-capacity hogging" presents a challenge, the utility said in a presentation on its Interim Grid Capacity Allocation rules. "All grid connection applications shall be treated in a non-discriminatory manner to ensure a fair, transparent, equitable, open access."
Off-Peak Blackouts Return (June 28, 8:30 a.m.)
Eskom Holdings SOC Ltd., South Africa's state power utility, will cut 2,000 megawatts of power from 7 a.m. Wednesday until 4 p.m., scrapping a plan to suspend electricity rationing during daytime because of delays in returning some of its generating units to service.
The utility will thereafter cut 3,000 megawatts from the grid until midnight, it said in a Tweet.
Thieves Threaten World Bank's Coal Rail Project (June 28, 6 a.m.)
A World Bank Group-funded effort to increase train access to a power plant in South Africa's coal-rich region has started to significantly backslide as criminals target the country's rail system.
Development of a 68-kilometer route between Ermelo, east of Johannesburg, and Eskom's Majuba power station started over a decade ago to replace the continuous flow of trucks delivering coal to the plant. Once completed, the rail line will be cheaper, faster and more environmentally friendly, according to the World Bank.
South Africa Forms Hydrogen Pact With Germany (June 27, 8:41 p.m.)
South Africa and Germany signed an agreement to create a task force that will help Africa's most industrialized nation create projects that are able to meet international demand for green hydrogen.
An agreement signed by Electricity Minister Kgosientsho Ramokgopa and Robert Habeck, German vice chancellor and minister of economic affairs and climate action, will assist to drive the commercial viability of green hydrogen projects and infrastructure in both nations, the Ministry of Electricity said in a statement.
Outages Cost Mall Operator $3 Million in Five Months (June 27, 5:47 p.m.)
South Africa's power cuts cost listed retail property owner Hyprop Investments Ltd. 55.3 million rand ($3 million) in the five months through May.
The owner of shopping malls in sub-Saharan Africa and Eastern Europe managed to recover 86% of that cost, according to a statement on Tuesday. All its centers in South Africa, which includes Somerset Mall near Cape Town and Rosebank Mall in Johannesburg, continue to trade during so-called loadshedding.
Hyprop's portfolio has full backup capacity with 81 generators, other than the Canal Walk center in Cape Town, where six prime rate generators are being commissioned, it said.
Monday 26 June to Wednesday 28 June, 2023: Wagner Group mutiny coverage: Vladimir Putin accuses Wagner Group leaders of betraying Russia
For 15 to 23 June, 2023 click here.
For Wednesday, 14th June 2023 click here.
For Tuesday, 13th June 2023 click here
For Monday, 12th June 2023 click here.
For Friday 9th June 2023 click here.
For Thursday 8th June 2023 click here.
For Wednesday 7th June 2023 click here.
For Tuesday 6th June 2023 click here.
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