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Purchase Tax Exemption for Tesla: Is China Wooing American Companies With Tax Waivers?

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The Chinese Ministry of Industry and Information Technology (MIIT), has announced that it would grant a purchase tax exemption to all Tesla vehicles sold in the country. It is such an unbelievably exciting news, in the face of a trade war between the US and China that has forced their companies to severe ties and bask on the uncertainties of economic egotism. The move has given Tesla an edge in an uncommon ground.

The 2019 localization of Tesla’s Model 3 production and its Model Y in 2020, exemption from import duties, all are in the Chines deal with Tesla that the US Government didn’t see coming.

The purchase tax exemption means that buyers could save ten percent ($14, 000) in purchase cost. They are 16 Tesla’s vehicle models currently selling in the Chinese market, and the deal covers them all. Tesla has seen a remarkable growth in China this year. In the second quarter of the year, its revenue climbed 42 percent to $1.5 billion, which is a whopping 13.5 percent of total company revenue, Clean Technica reports.

With the new measures taken, the coming year is likely going to be more lucrative for Tesla. There is proliferating enthusiasm among the locals over the expanding production plants of Tesla in China, and many of them can’t wait to buy from new products. For instance, the construction of Gigafactory 3 has become more like a national pride to the Chinese. It was reported that locals are flocking to the site to fly drones over it,  take pictures and get in the queue for the Model 3s, which will be the first made in China Tesla product come early next year.

The production is expected to yield 250, 000 of the Model 3s, as the excitement among the locals is spurring the demand.

With this latest move, the Chinese Government seems to be on top of their game in the trade war. While the White House is issuing tariffs and sanctions, American companies moving to China is more like a friendly bullet with the American Government on the receiving end.

It actually looks like the “America first” gospel of Donald Trump has unprecedented loopholes that the Chinese Government is set to exploit. With Tesla on the move, it would only take a friendly smile from China for another American company to follow suit.

And in the event where Trump is taking a swipe at some Americans companies like Google, the Chinese playing the good guys with tax waivers is a smart reconnaissance.

Zenvus Loci Now Uses Tracking ID Over IMEI Number

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This morning we successfully tested a new protocol that will help Zenvus Loci customers use our package tracker more optimally. Zenvus Loci is a largely disposable package tracker but engineered to be re-usable. Our first prototype tracked with an IMEI number. Everything worked perfectly. But there was a problem: if you send a package to a customer with Loci and share the IMEI number (to help him track also), the customer can use that number to track wherever the tracker is, in future, even after your business relationship with him has ended. To fix that problem, we have introduced Tracking ID which expires after every logistics/delivery session. By doing that, only the buyer knows the IMEI and with the Tracking ID, only the specific customer can track the tracker (see the images below). To our partners, we will be in touch very soon as volume production begins (still accepting partner applications in selected regions; learn more, and email team here).

Zenvus Loci is a disposable or reusable package GPS that you can put in a briefcase, cargo, personnel, etc and monitor in real time its location. We see opportunities in tracking the specific cargoes (not just the trucks), ecommerce shipments, security guards, equipment on transit, law enforcement (police, army, etc), human (child, oil workers, etc), luggage (individuals shipping via buses, personal air travel luggage, etc), vehicles (no installation), etc. It is cheaper than anything in the market and it is rechargeable with USB. It has two versions: Zenvus Loci Mini and Zenvus Loci Max

Tracking in Buyer Portal

 

Tracking in Guest area

 

 

The New Crime

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History will have to record that the greatest tragedy of this period of social transition was not the strident clamor of the bad people, but the appalling silence of the good people.“~~ Martin Luther King Jr

Over the years, Nations have enacted laws criminalising certain offences. Our parliaments are so busy, due to legislation. However, there is one legislation that no parliament has made. Perhaps, the reason for this is because it disguises itself. Since it acts dumb, nobody concentrates on it. This is the new crime! It is not Murder, Theft, Abortion, or even Fraud! It is Silence!

Let’s look at the Holocaust in which about six million Jews died in the concentration camps. As Rabbi Mark Wildes rightly puts it, “We must never forget the hundreds of millions who watched and remained silent. The dozens of governments and heads of state who had the opportunity to intervene, but would not sacrifice military, political or even economic support to save innocent Jewish lives. ” According to him, what was more disturbing was the lack of reaction by members of the Jewish Community – Jews in positions of authority and leadership who failed to act.

It is not the violence of the few that scares me, it’s the silence of the many.”~~Martin Luther King Jr

When Not To Be Silent 

  • When Injustice Rules

Silence against cruelty is the biggest crime in the world, and we do. “~~Junaid Raza

Injustice is the progenitor of Oppression, Terror, and the likes. There are situations in which silence becomes an assent, and a signature to the reign of Injustice in the land. Sometimes we choose to ignore, because it doesn’t directly affect us. We turn a blind eye to what is happening in our immediate environment, because to us, we are not affected. We live in estates and GRAs, and do not concern ourselves with the injustice meted out to ordinary citizens who are not so privileged. We occupy a high position in government, and are entitled to a diplomatic passport to leave the country at will, when we sense danger in the land. In order to escape mob action, we choose to travel by air all the time, forgetting that one day the plane may crash.

We know there is hunger in the land, but still choose to spend millions and billions of our currencies on wrist watches, earrings, inner wears, and even on a foot wear. Of course, something is wrong with us. We know that the roads are dilapidated, but yet, we keep promising, year after year. Even the money for the execution of contracts, we slash it, and use the other half to fund our children’s education overseas. There is an abuse of power, and yet, you say everything is under control. How? In what way? You refuse to speak out, because you don’t want to lose your job. Even the Holy Book says that he who tries to save his life will lose it…

  • When there is degradation of our core values

I agree with Dante, that the hottest places in hell are reserved for those who in a period of moral crisis maintain their neutrality. There comes a time when silence becomes betrayal.“~~ Martin Luther King Jr

In our world today, nobody speaks up anymore. There is no integrity! There is no Accountability! We no longer emphasize on moral codes and moral standards. That is the reason some politicians are bold to embezzle funds meant for public projects, and we keep quiet. We buy ripe fruits at the market, without knowing that they were forced to ripen through the application of chemicals such as Calcium Carbide. We fail to speak up because we are major shareholders in such businesses. Nobody says a word, and so we let innocent citizens die through heart failure, liver failure, kidney failure, and even cancer. Is there a greater crime than this?

How about those who repackage expired goods for resale? And those who recycle medical waste like syringes, specimen bottles, etc? How about artisans such as carpenters, bricklayers, electricians, painters, vulcanisers, mechanics, etc, who cheat their customers through price inflation, as well as through the use of substandard materials in their work? Despite the fact that these unethical practices could lead to death, we say nothing, and do nothing. We have seen it all, in the churches, schools, offices, everywhere! In the words of Martin Luther King Jr, “To ignore evil is to become accomplice to it. “

He who passively accepts evil is as much involved in it as he who helps to perpetrate it. He who accepts evil without protesting against it is really co-operating with it. “~~Martin Luther King Jr

  • When there is hate everywhere

Our youths are losing focus, because they no longer believe in themselves, in their nations, and in their leaders. They believe that their representatives have failed. As a result, they resort to crime, and other social vices.

We live together, but suspect one another. There is hate everywhere, and war of words.

Our lives begin to end the day we become silent about things that matter.” ~~Martin Luther King Jr

We must rise to condemn evil, when we sense evil. If we refuse to speak up, the fire that is slowly ravaging the bushes, and other neighborhoods would soon devastate our homelands that there will be no escape.

In the words of Nadezhda Mandelstam, “I decided it is better to scream. Silence is the real crime against humanity.”

How to Bridge Hostel Scarcity in 13 African Countries

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As the world moves towards another decade, there are have been many projections regarding population growth and its positive and negative consequences on society. Some of the projections have largely been centred on Africa, expecting it to play key roles based on its huge young population which would be most needed from 2020.

In 2015, projections suggest that the continent has a population of 226 million aged between 15 and 24 years and expected to double by 2045. The growth has been predicted to contribute to the increase in the use of consumable and non-consumable goods, most especially student housing or hostels considering the fact that tertiary aged population growth has been exponentially in the last 5 years.

By 2020, tertiary aged population is expected to be 98.90 million. This has resulted in the emergence of new universities, both private and public. In 2017, World Bank notes that 7.2 million students enrolled in tertiary education in sub-Saharan Africa compared with less than 400,000 students recorded in 1970. According to the international body, the gross enrollment ratio (GER) for tertiary education grew at an average annual rate of 4.3 percent between 1970 and 2013.

UNESCO Institute for Statistics adds that the number of students in Africa enrolled in tertiary education has doubled from six million to more than 12 million over the last 15 years. As the enrollment grows every year, governments also increase their spending on public education, which covers expenditure on schools, universities and other public and private institutions delivering or supporting educational services.

These and the consideration of the quality of life in cities where the institutions are located, job prospects after education completion and affordability of available hostels have been shaping the supply of and demand for student housing on the continent.

Demand and Supply

Drivers for Growth

Source: UNESCO, Infoprations Analysis, 2019

By 2020, over 500,000 new purpose-built student beds will be demanded by additional students entering the market, if the sub-Saharan Africa tertiary gross enrollment ratio was to grow to 10.8%, according to JLL Africa, a commercial property and investment management services company.

To understand the demand country by country on the continent, Angola, Benin Republic, Botswana, Burkina Faso, Burundi, Cameroon, Cabo Verde, Central African Republic, Chad, Comoros, Congo (Brazzaville), Democratic Republic of Congo and Cote D’Ivoire within sub-Saharan region were selected (as the first set of countries for analysis).  Analysis reveals that some of these countries have prioritised the need to increase gross enrollment rate and education expenditure between 2012 and 2016 (the years data are available).

Botswana, Cabo Verde, Cameroon, Benin Republic, Burundi, Comoros, Congo (Brazzaville), Angola and Cote D’Ivoire were better in the area of gross enrollment rate, while Burundi, Cabo Verde, Cote d’Ivoire, Congo (Brazzaville), Comoros and Benin Republic were good in terms of expenditure on education (as percent of GDP), analysis suggests.

These countries have 46,914,829 tertiary aged population, according to 2017 estimates. From this estimate, analysis reveals that 9.1% (4,269,249) are expected to be in school between 2017 and 2019. Congo (Democratic Republic), Angola, Cote D’Ivoire, Cameroon and Burkina Faso are the most attractive countries, our analysis suggests.

Country Attractiveness Status

The Place of PPP

Despite the spending on the programmes to increase enrollment and improve public education in these countries, a huge shortfall in government funding creates opportunities for private investors to support governments in the provision of adequate hostels for the students through direct investment and public-private partnership (PPP) agreements. Investors need to move into the countries with high spending on enrollment and public education.

Nigeria’s Double 2% Premium Customers

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Two percent (2%) is a special number in Nigeria. Out of the 30 million people I have noted that have some money to buy things in the nation, 2% brings another dimension. According to government data, 2% of the Nigerian bank depositors control 90% of the total value. Also, Nigerians who have more than N500,000 ($1,400) in their bank accounts are just 2%. I have called this the Double 2% – the first 2%  controls 90% of the total deposits and the other 2% has more than $1,400 in their bank accounts. Certainly, there is an overlap in these two 2%s.

Director of Research and International Relations at the Nigeria Deposit Insurance Corporation, NDIC, Alhaji Mohammed Umar, disclosed this at the Businessday Capital Market Development Annual Conference in Abuja, yesterday. His words: “Our current deposit insurance coverage is N500, 000 for the Deposit Money Banks. And some people have said that it is low. I can tell you that it is very adequate for the majority of accounts. “It will interest you to know that it covers over 90 per cent of accounts in the country. Indeed, Nigerians who have more than N500, 000 in their accounts are just two per cent.

“What we found is that this two per cent Nigerians have 90 per cent of banks’ total deposits. Look at that – two per cent Nigerians own 90 per cent of total banks deposits, while the remaining 98 per cent have just 10 per cent of total deposits.  What that tells you is that the gap between the rich and the poor has continued in this country.”

If you miss this 2% in Nigeria, even if you are selling food and medicine, you will be in trouble because they are really the people that have money to spend. Also, if only 2% of the population has more than $1,400 in the bank, you need to test the viability of running a saving-based business model in Nigeria since people have really nothing to save: hand to mouth. The implication is that you have to depend on maybe another cohort which is certainly lower than 2%.

More so, if you use BVN (bank verification number), 2% of the about 40 million users will give you 800,000 people in the Double 2%. Those 800,000 people  – less than 0.5% of Nigeria’s population – are the jewels in the Nigerian economy for most companies in consumer business!