Major International Business Headlines Brief::: 20 January 2025

[Bulls n Bears]

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Major International Business Headlines Brief:::  20 January 2025 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Africa: Billionaire Wealth Surges By $2 Trillion in 2024, Three Times Faster Than the Year Before, While the Number of People Living in Poverty Has Barely Changed Since 1990

ü  Nigeria: $6bn Mambilla Power Contract Deal - Obasanjo, Buhari Testify in Paris Court

ü  Africa: What Does Does the Future Hold for Africa's Generation Beta?

ü  South Africa in 2025 - 8 Key Factors That Will Shape the Future and Test the Government

ü  Kenya: Clinical Officers Maintain Nationwide Strike Set for Sunday Still On

ü  Kenya: Governors Dismiss Budget Controller's Stance On Bursaries, Cite Social Protection

ü  Nigeria: Why 2025 Budget Increased By 56 Percent - Osun Government

ü  African Banks Lead IPO Surge Across Stock Markets in 2025

ü  Nigeria: Dangote Refinery Has Reduced Petrol Imports - OPEC

ü  Africa's Economy to Improve in 2025 Despite Global Stagnation - New UN Report

ü  Ghana: Reviving the Cedi - a Blueprint for Ghana's Economic Stability

ü  Melania Trump launches her own cryptocurrency

ü  TikTok restores service in US after Trump pledge

ü  Shein backlash fails to deter shoppers: 'I spend £20 a month'

 


 <mailto:info at bulls.co.zw> 

 


 

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Africa: Billionaire Wealth Surges By $2 Trillion in 2024, Three Times Faster Than the Year Before, While the Number of People Living in Poverty Has Barely Changed Since 1990

Oxfam predicts there will be at least five trillionaires a decade from now.

 

204 new billionaires were minted in 2024, nearly four every week.

 

Sixty percent of billionaire wealth is now derived from inheritance, monopoly power or crony connections, as Oxfam argues that "extreme billionaire wealth is largely unmerited."

 

Richest 1 percent in the Global North extracted $30 million an hour from the Global South through the financial system in 2023.

 

Oxfam urges governments to tax the richest to reduce inequality, end extreme wealth, and dismantle the new aristocracy. Former colonial powers must address past harms with reparations.

 

 

Billionaire wealth grew by $2 trillion in 2024 alone, equivalent to roughly $5.7 billion a day, at a rate three times faster than the year before. An average of nearly four new billionaires were minted every week.

 

Meanwhile, the number of people living in poverty has barely changed since 1990, according to World Bank data.

 

In 2024, the number of billionaires rose to 2,769, up from 2,565 in 2023. Their combined wealth surged from $13 trillion to $15 trillion in just 12 months. This is the second largest annual increase in billionaire wealth since records began. The wealth of the world's ten richest men grew on average by almost $100 million a day --even if they lost 99 percent of their wealth overnight, they would remain billionaires.

 

Last year, Oxfam predicted the emergence of the first trillionaire within a decade. However, with billionaire wealth accelerating at a faster pace this projection has expanded dramatically --at current rates the world is now on track to see at least five trillionaires within that timeframe.

 

This ever-growing concentration of wealth is enabled by a monopolistic concentration of power, with billionaires increasingly exerting influence over industries and public opinion.

 

Oxfam publishes "Takers Not Makers" today as business elites gather in the Swiss resort town of Davos and billionaire Donald Trump, backed by the world's richest man Elon Musk, is inaugurated as President of the United States.

 

"The capture of our global economy by a privileged few has reached heights once considered unimaginable. The failure to stop billionaires is now spawning soon-to-be trillionaires. Not only has the rate of billionaire wealth accumulation accelerated --by three times-- but so too has their power," said Oxfam International Executive Director Amitabh Behar.

 

"The crown jewel of this oligarchy is a billionaire president, backed and bought by the world's richest man Elon Musk, running the world's largest economy. We present this report as a stark wake up-call that ordinary people the world over are being crushed by the enormous wealth of a tiny few," said Behar.

 

The report also shines a light on how, contrary to popular perception, billionaire wealth is largely unearned --60 percent of billionaire wealth now comes from inheritance, monopoly power or crony connections. Unmerited wealth and colonialism --understood as not only a history of brutal wealth extraction but also a powerful force behind today's extreme levels of inequality-- stand as two major drivers of billionaire wealth accumulation.

 

Oxfam's calculates that 36 percent of billionaire wealth is now inherited. Research by Forbes found that every billionaire under 30 has inherited their wealth, while UBS estimates that over 1,000 of today's billionaires will pass on more than $5.2 trillion to their heirs over the next two to three decades.

 

Many of the super-rich, particularly in Europe, owe part of their wealth to historical colonialism and the exploitation of poorer countries. For example, the fortune of billionaire Vincent Bolloré, who has put his sprawling media 'empire' at the service of France's nationalist right, was built partly from colonial activities in Africa.

 

This dynamic of wealth extraction persists today: vast sums of money still flow from the Global South to countries in the Global North and their richest citizens, in what Oxfam's report describes as modern-day colonialism.

 

The richest 1 percent in Global North countries like the US, UK and France extracted $30 million an hour from the Global South through the financial system in 2023.

 

Global North countries control 69 percent of global wealth, 77 percent of billionaire wealth and are home to 68 percent of billionaires, despite making up just 21 percent of the global population.

 

The average Belgian has about 180 times more voting power in the largest arm of the World Bank than the average Ethiopian.

 

Low- and middle-income countries spend on average nearly half of their national budgets on debt repayments, often to rich creditors in New York and London. This far outstrips their combined investment in education and healthcare. Between 1970 and 2023, Global South governments paid $3.3 trillion in interest to Northern creditors.

 

The history of empire, racism and exploitation has left a lasting legacy of inequality. Today, the average life expectancy of Africans is still more than 15 years shorter than that of Europeans. Research shows that wages in the Global South are 87 to 95 percent lower than wages in the Global North for work of equal skill. Despite contributing 90 percent of the labor that drives the global economy, workers in low- and middle-income countries receive only 21 percent of global income.

 

Globally, women are more often found in the most vulnerable forms of informal employment, including domestic work, than their male counterparts. Migrant workers in rich countries earn, on average, about 13 percent less than nationals, with the wage gap rising to 21 percent for women migrants.

 

"The ultra-rich like to tell us that getting rich takes skill, grit and hard work. But the truth is most wealth is taken, not made. So many of the so-called 'self-made' are actually heirs to vast fortunes, handed down through generations of unearned privilege. Untaxed billions of dollars in inheritance is an affront to fairness, perpetuating a new aristocracy where wealth and power stays locked in the hands of a few," said Behar.

 

"Meanwhile, the money desperately needed in every country to invest in teachers, buy medicines and create good jobs is being siphoned off to the bank accounts of the super-rich. This is not just bad for the economy --it's bad for humanity."

 

Oxfam is calling on governments to act rapidly to reduce inequality and end extreme wealth:

 

Radically reduce inequality. Governments need to commit to ensuring that, both globally and at a national level, the incomes of the top 10 percent are no higher than the bottom 40 percent. According to World Bank data, reducing inequality could end poverty three times faster. Governments must also tackle and end the racism, sexism and division that underpin ongoing economic exploitation.

 

Tax the richest to end extreme wealth. Global tax policy should fall under a new UN tax convention, ensuring the richest people and corporations pay their fair share. Tax havens must be abolished. Oxfam's analysis shows that half of the world's billionaires live in countries with no inheritance tax for direct descendants. Inheritance needs to be taxed to dismantle the new aristocracy.

 

End the flow of wealth from South to North. Cancel debts and end the dominance of rich countries and corporations over financial markets and trade rules. This means breaking up monopolies, democratizing patent rules, and regulating corporations to ensure they pay living wages and cap CEO pay. Restructure voting powers in the World Bank, IMF and UN Security Council to guarantee fair representation of Global South countries. Former colonial powers must also confront the lasting harm caused by their colonial rule, offer formal apologies, and provide reparations to affected communities.

 

Read the original article on Oxfam.

 

 

 

 

 

Nigeria: $6bn Mambilla Power Contract Deal - Obasanjo, Buhari Testify in Paris Court

Former presidents Olusegun Obasanjo and Muhammadu Buhari are testifying before the International Chamber of Commerce (ICC), Paris, France, in connection with the $2.3 billion arbitration proceedings filed against Nigeria by Sunrise Power over an alleged breach of contract by the federal government.

 

Sources confirmed to Daily Trust yesterday that both leaders are in Paris in respect of the matter.

 

A presidential spokesman, Bayo Onanuga, had Saturday night denied a report that the Presidency forced some eminent Nigerians to testify in the arbitration proceeding taking place in Paris.

 

 

Onanuga, who did not deny the existence of the case, had said: "All the eminent Nigerians involved in Nigeria's defence are doing so willingly and out of sheer patriotism and conviction. President Tinubu and the entire country are grateful to them."

 

Obasanjo's media aide, Kehinde Akinyemi, told Daily Trust on the telephone yesterday that his principal is currently in France.

 

He, however, said he was not privy to what took the former leader there.

 

"I can confirm to you that the former president is right now in France and that is the only thing I know," he said in a telephone conversation yesterday.

 

Obasanjo had, in an interview with TheCable in 2023, said: "If a commission of inquiry is set up today to investigate the matter, I am ready to testify."

 

Efforts to reach Malam Garba Shehu, the spokesperson to former President Buhari were not successful as his lines could not be reached through calls and texts, including WhatsApp messages.

 

However, other sources confirmed that Buhari travelled out of Nigeria, but could not say whether he is currently in France or another country.

 

How the case started

 

Sunrise, on October 10, 2017, started the arbitration against Nigeria at the ICC, Paris, seeking a $2.354 billion award for "breach of contract" in relation to a 2003 agreement to construct the 3,050 megawatt plant in Mambilla, Taraba State, on a "build, operate and transfer" basis valued at $6 billion.

 

A former Minister of Power, Works and Housing, Babatunde Fashola, in 2017, had described Sunrise Power as a middleman.

 

The minister had said the Buhari administration was directly contracting the Engineering, Procurement and Construction (EPC) contractor, Sinohydro Corporation Limited, a Chinese firm, currently handling the project.

 

After several negotiations, a former Minister of Power, Sale Mamman, had, in 2020, reportedly said the parties had reached an out-of-court settlement of $200 million.

 

The court battle took a new turn when Sunrise later filed a $400 million compensation claim at the ICC against the government for breaching the new agreement.

 

The company had said the sum was to serve as an out-of-court settlement which the government allegedly failed to honour as it had agreed to pay in 14 days after it was signed by a former Attorney-General of the Federation and Minister of Justice, Abubakar Malami and Sale Mamman for the government and the Chairman/CEO of Sunrise Power, Leno Adesanya.

 

The company's legal representative, Femi Falana, then filed a lawsuit at the International Court of Arbitration on May 11, demanding $400 million as overall claims, including penalties.

 

According to Sunrise in its claim document, the amount was to be paid "within 14 days" of the execution of the terms of the agreement on January 21, 2020, along with a 10 per cent penalty if there is a default in the settlement terms.

 

The company had also said it was agreed in the pact signed that it would be restored as the local partner for the current $5.8 billion Mambilla power project.

 

A follow-up on this showed that the pact was revised and the local partner condition was removed. The federal government later requested a review of the negotiation, citing the COVID-19 pandemic effects on the Nigerian economy.

 

Obasanjo's intervention

 

Obasanjo, in the interview he granted TheCable in 2023, challenged his former Minister of Power, Olu Agunloye, how he got the prerogative to award the contract to Sunrise in 2003.

 

"When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission and I did not give him any permission.

 

"If a commission of inquiry is set up today to investigate the matter, I am ready to testify. I do not even need to testify because all the records are there. I never approved it.

 

"When he presented his memo to the federal executive council (on May 21, 2003), I was surprised because he had previously discussed it with me and I had told him to jettison the idea, that I had other ideas on how the power sector would be restructured and funded.

 

"I told him as much at the council meeting and directed him to step down the memo. I find it surprising that Agunloye is now claiming he acted on behalf of Nigeria. If I knew he issued such a letter to Sunrise, I would have sacked him as minister during my second term. He would not have spent a day longer in office", the former president said.

 

Reacting to Obasanjo's claims, Agunloye had said the government was not compelled to pay any amount to Sunrise under the build, operate and transfer (BOT) agreement.

 

He said the arrangement remained as it was to be fully funded by the newly registered company, whose declared assets were worth less than $2,000 at the time.

 

Ex-minister, Agunloye, declared wanted by EFFC

 

In December 2023, the Economic and Financial Crimes Commission (EFCC) declared Agunloye wanted over allegations of fraud to the tune of $6 billion in the Mambilla hydropower contract.

 

While the minister presented himself to the agency, the EFCC arraigned him before Donatus Okorowo in January 2024 where he pleaded not guilty to the charges read against him.

 

He was later remanded in Kuje Prison pending the perfection of his bail conditions.

 

Meanwhile, Buhari had also written to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, denying authorising the settlement agreement of 2020.

 

He had stated: "While I understood that my ministers of justice, power and water resources were approached by Sunrise and were engaging with various stakeholders that were involved in the project to resolve the issues blocking the project's implementation, at no time did I specifically instruct them to enter into and conclude any settlement agreement with Sunrise Power and Transmission Company Limited.

 

"Indeed, when the proposed settlement agreement and addendum were presented to me for my consideration and approval on 20th April, 2020, I refused to approve the settlement deal because I was convinced that there was no basis for Sunrise's claim.

 

"I hope the above clarifications will assist you in your defence of our country from these 'invisible contractors who all too often quietly take Nigeria for many millions in out-of-court settlements', as I stated in my recent statement regarding Nigeria's victory in the P&ID saga", the former president said.

 

- Daily Trust.

 

 

 

 

Africa: What Does Does the Future Hold for Africa's Generation Beta?

London — Demographers say the first members of Generation Beta are being born this month, following on the heels of Millennials, Gen Z and Gen Alpha. VOA spoke with African futurists on what they think will define the lives of the continent's Gen B'ers, from AI to better life expectancy and economic growth.

 

Labels like Baby Boomers, Millennials or Generation Alpha are increasingly used globally to describe people born about the same time, often sharing similar experiences and challenges.

 

VOA spoke with African futurists and scientists to understand how Gen B, who will be born between now and 2039, can expect Africa to have changed by the time they are adults.

 

 

Halidou Tinto is a scientist from Burkina Faso, who is conducting cutting edge research with the recently developed malaria vaccine. He says futurists believe that people born in Africa in 2024-2025 can reasonably expect that malaria will no longer be a major public health problem in the years to come, and especially when these babies become adults.

 

More than 200 million people in Africa catch malaria each year, and a half-million people die of it, according to the World Health Organization.

 

Malaria is particularly deadly for children. According to UNICEF, the U.N.'s children's agency, improvements in public health like this will lead to a brighter future for children born in coming years.

 

Paul Quarles Van Ufford, a social policy adviser for UNICEF, says "Children born today, also, are less likely to die before their fifth birthday and one of the big progress stories in Africa, because of vaccination, management of diseases and that there is less poverty is that child mortality has reduced."

 

He says that life expectancy in Africa has increased "exponentially" in the last 20 years. Data from the U.N. shows that if current trends continue, Africa's life expectancy could reach 70 by 2050, compared to 61 years old now.

 

Researchers in Kenya -- who have recently developed an Artificial Intelligence, or AI, chat bot to educate young people about HIV and AIDS -- say the role of AI is going to grow in Africa.

 

Dr. Consolata Gakii, with the University of Embu, says "The young people are coming up with, utilizing AI to solve societal or local problems, from image processing to precision of weather, there is so much that is happening within our country," she said.

 

Jakkie Cilliers, head of African Futures at the South Africa based Institute for Security Studies, says Gen B's relationship with technologies like AI will only expand in coming years.

 

"It's a future of more freedom and more self-dependence, a future of innovation, a future in which technology really leads to benefit the ordinary person and the relationship between technology and the individual, I think is, just every year, is going to expand," he said.

 

Cilliers adds that tech will allow greater access to the globally developing "gig economy," which means workers will become less reliant on the government.

 

He also says that about the time Gen B members become adults, the continent will pass an important milestone. For the first time, there will be more people of working age on the continent than dependents, like children and older people. That could lead to an explosion in economic growth.

 

Although there are many challenges facing Africa, Generation Beta has a lot to get excited about.

 

-VOA.

 

 

 

 

South Africa in 2025 - 8 Key Factors That Will Shape the Future and Test the Government

South Africa's political and economic landscape shifted significantly after the 2024 national elections. The ruling ANC's dramatic loss of support resulted in a government of national unity - a pivotal moment in the country's political history.

 

It is still too early to assess the unity government's success. But it signifies an effort by political parties to agree on the values and principles that should guide behaviour and decision-making in the national government.

 

The unity government presents new possibilities for South Africa. In the words of President Cyril Ramaphosa:

 

 

to work together as political parties for the good of the country, and to deliver a government that will be united in action and purpose.

 

However, a key question remains: will it hold? The question arises because the unity government demands that its constituent parties cooperate, even though their respective constituencies may want different things.

 

Certain issues will put pressure on the coalition. Consequently, the unity government raises uncertainties about the country's political stability and direction. Particularly given the coalition's heavy reliance on President Cyril Ramaphosa's facilitating leadership.

 

As a political science researcher, I have studied South Africa's political landscape for the past two decades, and analysed its political risk.

 

Here I outline eight key factors - among others - that will shape the country's short and medium term trajectory and test the strength of its unity government.

 

Depth of democracy

 

It was necessary to form the unity government to stabilise governance. But its durability is uncertain. The coalition's middle ground may be strained as conflicting priorities arise among its members. Key are ideological differences over National Health Insurance and conflicting foreign policy issues.

 

At the same time, legitimacy and confidence in governance need to be restored. Voter turnout has declined - from 89% in 1999 to 58% in 2024.

 

Read more: South Africa's unity government could see a continuation of the ANC's political dominance - and hurt the DA

 

If this democracy experiment fails, it could dent the confidence of voters and business. Forming the unity government improved business confidence to "cautious optimism".

 

Incumbency and succession

 

Divisions in the ANC continue to threaten its unity. These were highlighted at the party's 2017 elective conference. Ramaphosa narrowly secured re-election as ANC president, exposing serious rifts within the party. These internal divisions cast uncertainty over Ramaphosa's effective leadership of his party. His successor might affect the ANC's future role in the unity government.

 

The ANC's national elective conference in 2027 will set the party's direction and mark the end of Ramaphosa's leadership.

 

Early jostling for positions in the ANC has begun, amid ideological differences over the future of the party, the unity government and the country.

 

Trust in government

 

Public confidence in government institutions has eroded since 1994, particularly at the municipal level. Protests at the poor - or lack of - delivery of basic services, including water and sanitation, are pervasive. Violent protests reflect growing dissatisfaction.

 

Declining trust in parliament and other governmental bodies - starting during former president Jacob Zuma's term (2009-2018) - is a major concern.

 

Read more: South Africa's new unity government must draw on the country's greatest asset: its constitution

 

Much of the electorate feels that voting changes nothing.

 

It's uncertain whether the unity government can boost public confidence and trust.

 

Disparities and unemployment

 

Stark wealth disparities and unemployment exceeding 30% add to societal tensions. Youth unemployment is even higher.

 

The risk of large-scale political unrest has decreased since democracy in 1994. But frustration among the poor, unemployed and marginalised still carries the risk of sporadic riots and instability.

 

The violent protests in July 2021, mainly in the provinces of KwaZulu-Natal and Gauteng, are a reminder. The underlying factors for over 300 fatalities, looting and destruction stemmed from the state's failure to address poverty.

 

The unity government needs to power economic growth, create jobs and reduce poverty.

 

Safety and security

 

Safety and security rank among South Africa's most pressing issues. Crime rates remain alarmingly high, including organised crime and violence.

 

Trust in police is low, fuelling growth in the private security sector. There are now over 2.7 million registered private security officers and 150,000 police officers.

 

The "oldest and simplest justification" for government is to protect citizens from crime and violence.

 

The unity government must restore public trust in the police and enhance security.

 

Economic sentiment

 

Despite the country's numerous challenges, the economy attracted nearly R100 billion (US$5.3 billion) in foreign direct investment inflows in 2023, equivalent to 1.4% of GDP.

 

Against expectations, inflows have exceeded outflows every year since the 2008/9 global financial crisis.

 

The country offers several advantages to foreign investors. These include world-class financial services and communication sectors, robust capital markets, quality tertiary institutions and a transparent legal framework.

 

Read more: Cyril Ramaphosa's leadership style didn't impress voters -- but seeking consensus may be what South Africa's unity government needs

 

It also has abundant natural resources, a strategic geographic position as a gateway to sub-Saharan Africa, and a degree of political and policy stability.

 

Crime remains perhaps the greatest deterrent for potential tourists. It's also a pressing concern for business leaders.

 

Addressing crime must thus be among the top priorities of the unity government.

 

Government competence

 

Poor governance and a crisis of competence plague public administration, particularly at the local level. Service delivery failures, such as water provision, stem from inadequate skills and from corruption and maladministration.

 

State-owned enterprises also pose governance challenges. Eskom, the power utility, seems to be turning around. However, the Post Office, Transnet - the transport utility - and others exemplify systemic inefficiencies and corruption.

 

The July 2021 unrest underscored the state's institutional weaknesses. The report on the riots stated that inadequate service delivery, bad living conditions, economic challenges and persistent poverty created fertile ground for unrest.

 

The unity government must foster a professional and effective public service that delivers tangible improvements.

 

Regional landscape

 

South Africa is not threatened by any neighbours. However, illegal migration has become a major cause for concern since the economic crisis in Zimbabwe began in the 1990s. Perceptions are growing that migrants are overwhelming the resources of the country, and take jobs from South Africans and engage in crime.

 

The presence of illegal miners, many from impoverished neighbouring nations, heightens social tensions.

 

Read more: South Africa's foreign policy: a unity government must be practical in a turbulent world

 

The jihadist conflict in Mozambique and current political instability there pose regional security concerns for South Africa.

 

The country was recently forced to shut its primary border crossing with Mozambique, a hub for coal and chrome exports, amid the latter's election-related protests. Addressing these regional dynamics requires a strong foreign policy stance and robust measures to pursue peace in Mozambique.

 

Theo Neethling, Professor of Political Science, Department of Political Studies and Governance, University of the Free State

 

This article is republished from The Conversation Africa under a Creative Commons license. 

 

 

 

Kenya: Clinical Officers Maintain Nationwide Strike Set for Sunday Still On

Embu — The Kenya Union of Clinical Officers (KUCO) has reiterated that the nationwide strike for all clinical officers set to commence on Sunday is on course.

 

KUCO issued a 14-day strike notice that will lapse on January 19 over alleged discrimination by the Social Health Authority (SHA) and unfulfilled Collective Bargaining Agreement (CBA).

 

KUCO Secretary General George Gibore said SHA had denied facilities owned by clinical officers' contractual right to receive patients registered under the authority.

 

Additionally, Gibore said the authority had failed to empanel them to allow them pre-authorization so that they can provide healthcare services to patients seeking their services.

 

"They are imposing nonexistent laws that for facilities owned by clinical officers to be allowed to see patients, they must seek a second registration under Kenya Medical Practitioners and Dentists Council (KMPDC)," he said.

 

 

Speaking in Embu during a meeting with clinical officers from the County on Friday at Embu Level Five Hospital, Gibore said the move will derail service delivery and deny thousands of patients' accessibility to healthcare.

 

KUCO National Trustee Moses Baiyenia said cartels who are members of KMPDC had taken over control of SHA blocking healthcare providers other than doctors from providing services with SHA.

 

"These are the people who are frustrating the effort by the President by locking out clinical officers who provide the majority of clinical services," he lamented, while calling for the dismissal of Health Cabinet Secretary Deborah Barasa.

 

On CBA, the Sec Gen said many Counties had not promoted their clinical officers or transition contractual staff on a permanent basis against the agreement signed last year and filed in court.

 

"We are here, and we have been going around the country sensitizing our members in preparation for the strike that is to start," he said, noting the strike was necessitated by the government for taking no action to avert it.

 

Embu Branch Secretary James Nyaga reaffirmed their commitment to take part in the strike in solidarity with their colleagues countrywide.

-Capital FM.

 

 

 

Kenya: Governors Dismiss Budget Controller's Stance On Bursaries, Cite Social Protection

Nairobi — The Council of Governors (CoG) has defended the issuance of county-administered bursaries, citing social protection grounds and the principle of separation of powers.

 

County chiefs insisted that no provision in the law bars devolved units from dispensing bursaries.

 

In a statement on Friday, CoG Chairperson Ahmed Abdullahi highlighted a legal lacuna in legislation concerning the administration of bursaries and scholarships within the country.

 

In a letter dated January 14, the Controller of Budget (CoB) had stated that county governments have no legal basis to issue bursaries to students in post-primary institutions, asserting that the mandate lies with the national government.

 

Governor Abdullahi, referencing Article 43(3) of the Constitution, however argued that both levels of government are obligated to provide appropriate social security to individuals who cannot support themselves and their dependents.

 

 

"If the Constitution intended to obligate the National Government exclusively, it would have overtly stated so. Therefore, the argument that bursaries are an exclusive function of the National Government is not constitutionally founded," Abdullahi stated.

 

Transfer of function

 

The CoB, Margaret Nyakango, argued that county governments could only administer bursaries for post-primary education if the functions are formally transferred from the national government.

 

"Consequently, for any county government to offer educational support toward functions classified under Part 1 of the Fourth Schedule, there is a need to transfer the function in accordance with Article 187 of the Constitution," Nyakango wrote in her letter.

 

The devolved units emphasized that county-administered bursaries aim to advance social protection by supporting vulnerable members of society and promoting the right to education.

 

"The principles that underscore social protection require that beneficiaries are not left more vulnerable but instead have their dignity increasingly restored," Abdullahi stated.

 

"This raises the question: what is the fate of students who are poor and vulnerable and depend on this support?" the CoG Chairperson posed.

 

Abdullahi defended the constitutionality of the bursaries, noting that they have been approved by county assemblies and have undergone rigorous public participation to enhance educational opportunities in communities.

 

"To this end, we call upon the Controller of Budget to appreciate and uphold decisions made by the County Assemblies on approved budgets. Furthermore, the Controller should address the Heads of Counties, Excellency Governors, on matters of governance and policy," Abdullahi stated.

 

The Fourth Schedule of the Constitution outlines the functions assigned to both county governments and the national government.

 

Nyakango pointed out that Part 1 of the Fourth Schedule designates functions such as universities, tertiary education institutions, primary schools, special education, secondary schools, and special needs education institutions to the national government.

 

"Conversely, Part 2 of the Fourth Schedule assigns pre-primary education, village polytechnics, home craft centers, and childcare facilities to county governments," Nyakango affirmed.-Capital FM.

 

 

 

Nigeria: Why 2025 Budget Increased By 56 Percent - Osun Government

The 2025 budget is expected to fast-track the revitalisation of various sectors of the Osun State economy

 

The Osun State government has increased its 2025 budget from N390 billion to N427 billion, a 56 per cent rise from the 2024 fiscal year.

 

The increase, announced Thursday, aims to accelerate development across various sectors of the state's economy.

 

Governor Ademola Adeleke initially presented a N390 billion budget to the Osun State House of Assembly, which was later revised upward by N37 billion.

 

Commissioner for Economic Planning, Budget, and Development Moruf Adeleke explained the increase at a press conference in Osogbo, emphasising the government's commitment to fulfilling its promises to the people.

 

 

The commissioner explained that the 2025 budget, christened "Sustainable Growth and Transformation," was drafted to fast-track the revitalisation of various sectors of the economy for the overall development of Osun State.

 

According to him, "The 2025 budget was predicated on government policies and influenced by macroeconomic variables such as inflation rate, GDP growth rate, exchange rate, and oil price, as well as the citizens' needs, leading to a significant upsurge of 56% as against the 2024 budget.

 

However, Mr Adeleke, a professor, contended that to realise the N427 billion budget, the state government projected to receive N251,670,167,990 from the Federation Accounts Allocation Committee (FAAC). Also, N109,870,932,830 is expected from Internally Generated Revenue (IGR) and N36 billion from capital receipts, adding that N30 billion was the year's opening balance.

 

Giving a further breakdown, he disclosed that N109 billion was allocated for infrastructure development, N59 billion to governance, N46 billion invested in human capital, N31 billion was earmarked to improve healthcare services, N31 billion for urban development, N13 billion was dedicated to youth development programs, and the agriculture sector got N7 billion.

 

Meanwhile, Mr Adeleke also hinted that "the N100 billion infra plan is a work in progress. Once we are done with it, we are continuing to give our people more infrastructure." Premium Times.

 

 

 

African Banks Lead IPO Surge Across Stock Markets in 2025

At least five financial companies are set to go public on African stock exchanges in 2025, reflecting the financial sector's significant influence on the continent's economies. Listings are expected in Abidjan, Libreville, Douala, Tunis, and Algiers.

 

In Benin, the government will sell 30-40% of its stake in Banque Internationale pour l'Industrie et le Commerce (BIIC), raising 92-121 billion FCFA ($145-192 million). BIIC, formed in 2020, holds 22% of Benin's banking assets, with total assets reaching 1,411 billion FCFA by mid-2024. Cameroon's Commercial Bank will list 30% of its shares on the Central African Stock Exchange (BVMAC), while the government retains a 51% stake.

 

 

BGFI Holding, the largest financial group in Central Africa, will debut 10% of its shares to fund its strategic growth plans. In Algeria, Banque de Développement Local (BDL) will offer 30% of its capital, becoming the second-largest stock by market cap on the Algiers Stock Exchange. BNA Assurances will also become the 6th insurance company to list in Tunis.

 

You can follow Daba's reporting on Africa on WhatsApp. Sign up here

 

Key Takeaways

 

The 2025 IPO wave underscores financial companies' increasing dominance in African stock markets. In 2024, financial sector stocks boosted key indices like BRVM Composite, which rose 28.89%, driven by strong performances from banks such as BOA Mali (+92.2%) and BICICI (+86.92%). In Tunisia, financial firms accounted for 54.6% of market capitalization, with BNA Assurances transitioning to the main market to attract institutional investors. Similarly, Algeria's IPOs of public banks like CPA and BDL reflect modernization and potential privatization in a largely state-controlled sector. For smaller exchanges like BVMAC, the listing of BGFI Holding could significantly increase market depth and attract institutional investors. With markets like Douala and Libreville seeking to replicate BRVM's success, IPOs are poised to strengthen financial markets across the continent, improving liquidity and investor confidence.

-Daba Finance.

 

 

 

Nigeria: Dangote Refinery Has Reduced Petrol Imports - OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) has forecast global oil demand growth rate at 1.4 million barrels per day (mb/d) in 2025, with a similar growth rate expected in 2026.

 

This is coming amidst the projection by the federal government to increase crude oil production above 2million barrels per day.

 

In its latest monthly report for January 2025, released on Wednesday, the organisation also pointed at the 650,000-barrel per day Dangote Refinery which it stated has disrupted the European markets and reduced petrol imports.

 

In the report, OPEC projected a robust global economic expansion and healthy oil demand growth for 2025 and 2026.

 

 

The report stated that demand in the region of the Organisation for Economic Cooperation and Development (OECD) is expected to grow by 0.1 mb/d, while the non-OECD region is expected to drive demand growth by accounting for 1.3 mb/d of the total increase in both 2025 and 2026.

 

On a regional basis, OECD oil demand is forecast to expand by around 0.1 mb/d, y-o-y, entirely from the Americas, while non-OECD oil demand is expected to witness growth of around 1.3 mb/d, mostly in India, China, Other Asia, the Middle East, and Latin America."

 

"This outlook assumes continued inflation normalisation through 2026, providing support for further adjustments in monetary policies in major economies. The services sector is expected to drive global growth, alongside an expected gradual recovery in the industrial sector, despite prevailing uncertainties," the report said.

 

According to the report, the growth in global oil demand is expected to be driven by transportation fuels, particularly aviation and road mobility.

 

"Gasoline requirements are also set to see support from steadily rising road mobility in major consuming countries and regions, such as China, the Middle East, India and the US. Both on-road diesel, including trucking, as well as industrial, construction and agricultural activities in non-OECD countries are expected to support diesel demand. Light distillates are projected to be supported by petrochemical capacity additions and margins, mostly in China and the Middle East," the report added.

 

On Dangote refinery, the report said, "The ongoing operational ramp-up efforts at Nigeria's new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market," the report stated.

 

It further explained that Nigeria, a country historically dependent on fuel imports to meet its energy needs, is now freeing up gasoline volumes in global markets due to increased local production.

 

This development, OPEC added, will necessitate "New destinations and flow adjustments for the extra volumes going forward."

 

-Daily Trust.

 

 

 

Africa's Economy to Improve in 2025 Despite Global Stagnation - New UN Report

The latest WESP 2025 says targeted investments, inclusive governance, and enhanced regional collaboration will support the continent's long-term development goals

 

Africa is poised for modest economic growth in 2025, with recovery driven by major economies such as Nigeria, Egypt, and South Africa, according to the World Economic Situation and Prospects 2025 report released by the United Nations.

 

Despite these gains, the continent faces significant challenges, including high inflation, mounting debt, and climate-related vulnerabilities.

 

 

The global economy is expected to grow by just 2.8 per cent in 2025, a stagnation from the 2024 rate and notably below the pre-pandemic average of 3.2 per cent

 

The report, produced by the UN Department of Economic and Social Affairs (DESA), stresses that "The world economy has remained resilient through 2024, avoiding a broad-based economic contraction despite years of multiple, mutually reinforcing shocks."

 

However, persistent structural issues such as weak investment and sluggish productivity continue to constrain global recovery.

 

In his foreword, the United Nations Secretary-General António Guterres points out that the world continues to face "challenges that slow the rate of economic progress and the pursuit of better lives for all,"

 

Africa's economic outlook

 

Africa's economic growth is forecast to improve from 3.4 per cent in 2024 to 3.7 per cent in 2025 and further to 4.0 per cent in 2026. This positive trajectory reflects recoveries in key economies and ongoing efforts toward regional integration under the African Continental Free Trade Area (AfCFTA).

 

"Economic growth in Africa is projected to strengthen... driven by recovery in the region's largest economies," the report states.

 

East Africa continues to show robust growth, while other regions face distinct challenges.

 

Central Africa, for instance, is constrained by stagnating oil production and political instability, while high debt burdens and youth unemployment remain pressing concerns across the continent.

 

Challenges

 

Inflation is a major obstacle for African economies, with several countries experiencing double-digit rates. The report notes, "Food inflation remains particularly persistent in developing economies, with about half of them experiencing rates above 5.0 per cent in 2024," a trend that exacerbates food insecurity in vulnerable populations.

 

Debt servicing is also a significant burden. The report reveals that in 2024, interest payments consumed an average of 27 per cent of government revenues in Africa, up from 19 per cent in 2019. This limits fiscal space for essential investments in health, education, and infrastructure.

 

While Africa's growth outlook is positive, addressing structural challenges is critical for sustaining momentum.

 

The report highlights the importance of targeted investments, inclusive governance, and enhanced regional collaboration to achieve long-term development goals.

 

Opportunities in critical minerals

 

Africa's abundant reserves of critical minerals, including cobalt and lithium, present opportunities for economic growth.

 

The report underscores that "Countries with rich critical mineral reserves have immense potential to leverage these resources to stimulate economic growth and promote sustainable development."

 

However, challenges such as environmental degradation, governance issues, and unequal benefit distribution must be addressed to realize these opportunities fully.

 

The report emphasizes the need for sustainable practices, stating, "Robust tax systems can be put in place to capture public revenues. Countries can implement fiscal rules and establish stabilization funds to manage and save excess revenues from critical minerals sectors during boom periods."

 

Li Junhua, the Under-Secretary-General DESA, maintains that "Critical minerals have immense potential to accelerate sustainable development, but only if managed responsibly."

 

Call for international cooperation

 

The WESP 2025 report calls for bold international cooperation to address Africa's development challenges. It urges reforms in the global financial architecture to provide greater support for developing countries.

 

Additionally, investments in renewable energy and sustainable infrastructure are highlighted as critical for fostering resilience and growth.

 

"The pursuit of net-zero emissions by 2050 will require the widespread deployment of clean energy technologies alongside universal energy access but will also entail economic, social, and environmental challenges," the report warns.

 

"Countries cannot ignore these perils. In our interconnected economy, shocks on one side of the world push up prices on the other. Every country is affected and must be part of the solution--building on progress made," warns Mr. Guterres, adding: "In 2025, countries must deliver on those promises, particularly at the Fourth International Conference on Financing for Development."-Africa Renewal.

 

 

 

Ghana: Reviving the Cedi - a Blueprint for Ghana's Economic Stability

THE Ghanaian cedi has long served as a mirror of the country's economic health, symbolising both its achievements and persistent challenges. As a vital component of national identity and economic stability, the cedi's performance directly impacts inflation rates, public debt, and the cost of living for millions of Ghanaians. Over the years, however, the cedi's depreciation has emerged as a recurring concern, eroding public confidence, increasing the cost of imports, and adding to the burden of external debt. This depreciation has amplified inflationary pressures, contributing to a challenging fiscal environment and widening the gap between Ghana's economic aspirations and its current realities.

 

 

On January 13, 2025, a sense of cautious optimism emerged as Finance Minister-designate Dr. Cassiel Ato Forson addressed Parliament's Appointments Committee. With a clear understanding of the stakes, Dr Forson outlined an ambitious strategy to stabilise the cedi and lay a sustainable foundation for Ghana's economic growth. Recognising that currency depreciation accounts for nearly 90 per cent of the increase in external debt, his proposed measures aim to tackle systemic issues, including fiscal mismanagement, export underperformance, and weak foreign reserves. Dr Forson's vision, if executed with precision and diligence, could mark a watershed moment in Ghana's economic journey, a bold step toward fiscal resilience, sustainable development, and renewed global confidence in the nation's economic framework.

 

The cedi crisis and its impacts

 

The persistent depreciation of the cedi has been one of Ghana's most formidable economic challenges, underscoring deep structural vulnerabilities in the nation's fiscal and monetary systems. Over the past decade, the cedi has steadily lost value against major global currencies like the US dollar, euro, and British pound. This decline has eroded investor confidence, increased the cost of doing business, and left the economy more susceptible to external shocks.

 

One of the most concerning effects of the cedi's depreciation has been its impact on Ghana's external debt. Finance Minister-designate Dr. Cassiel Ato Forson highlighted that currency depreciation accounts for a staggering 90 per cent of the increase in Ghana's external debt. By the end of 2024, external debt had ballooned to $29.9 billion, creating a significant financial strain on the country. This issue is exacerbated by the fact that a substantial portion of Ghana's debt is denominated in foreign currencies, making repayments more expensive as the cedi weakens. Servicing this debt consumed 40 per cent of the government's total revenue in 2023, diverting critical resources away from essential sectors like education, healthcare, and infrastructure.

 

The effects of the depreciating cedi are felt not only at the macroeconomic level but also in the lives of ordinary Ghanaians. Inflation soared to 40.1 per cent in October 2023, driven in part by the increased cost of imported goods, from food staples to industrial equipment. Households have faced rising prices for everyday essentials, while businesses have struggled to absorb the higher costs of imports, resulting in reduced profit margins and, in some cases, layoffs. This inflationary environment has further eroded the purchasing power of citizens, deepened inequality and reduced overall economic stability.

 

Moreover, the depreciation of the cedi has strained Ghana's foreign exchange reserves, which stood at a precarious $4.1 billion in 2024--covering only two months of imports, far below the recommended minimum of three months. This limited reserve buffer has made it increasingly difficult for the Bank of Ghana (BoG) to intervene effectively in the foreign exchange market to stabilize the cedi. As a result, speculative activity has heightened, further exacerbating currency volatility.

 

Ghana's total public debt reached GH₵575 billion in 2024, equivalent to 77.5 per cent of GDP, placing the country in a precarious fiscal position. This level of debt far exceeds the 70 per cent threshold considered sustainable for emerging markets, raising alarms about the potential for debt distress. The high debt burden, combined with a weakening cedi, has diminished the government's fiscal space, making it challenging to fund development projects and social programs crucial for economic growth and poverty alleviation.

 

The urgency of addressing the cedi crisis cannot be overstated. The depreciation of the currency is not merely an economic issue; it is a national priority with far-reaching implications for Ghana's fiscal health, business environment, and social stability. Stabilizing the cedi is essential not only to reduce the debt burden but also to restore confidence in the economy, attract foreign investment, and create a sustainable path to economic recovery. Without decisive action, the cedi's downward trajectory could undermine the nation's broader development goals and further strain the livelihoods of its citizens.

 

Dr Forson's strategic vision

 

1. Stabilising the cedi

 

Dr Forson's priority is to stem the tide of cedi depreciation. This involves:

 

1. Coordinated Policies:

 

Collaborating with the Bank of Ghana to implement monetary policies that curb inflation and stabilise the currency.

 

2. Foreign Reserves Management:

 

Strengthening reserves, which stood at $4.1 billion in 2024, to support import cover and currency defense.

 

2. Debt Restructuring and Management

 

With external debt service consuming 40 per cent of revenue in 2023, Dr Forson proposed:

 

1. Renegotiation of External Debt:

 

Working with international creditors to restructure repayment terms.

 

2. Sustainable Borrowing:

 

Aligning borrowing with growth-driven projects to ensure long-term returns.

 

3. Export Growth and Diversification

 

A diversified export base is crucial for reducing reliance on foreign exchange. Plans include:

 

1. Promoting Non-Traditional Exports (NTEs):

 

Ghana's NTEs, valued at $3.3 billion in 2023, can be expanded through agro-processing and industrial minerals.

 

2. Value Addition:

 

Shifting from raw exports to finished products to enhance export earnings.

 

4. Fiscal Discipline

 

Restoring fiscal discipline is vital for economic recovery. Dr. Forson's measures include:

 

1. Expenditure Control:

 

Cutting wasteful spending while prioritizing essential sectors like education and healthcare.

 

2. Revenue Mobilisation:

 

Increasing tax compliance and broadening the tax base to boost domestic revenue.

 

3. Economic Transformation: What's at stake?

 

The implementation of these strategies has the potential to transform Ghana's economic landscape:

 

4. Reduced Debt Pressure:

 

Stabilizing the cedi would lower the cost of external debt servicing, freeing resources for development.

 

5. Economic Growth:

 

With GDP growth projected at 3.8 per cent in 2024, fiscal discipline and export diversification could accelerate this figure significantly.

 

6. Job Creation:

 

Investments in local industries and export-oriented sectors could generate thousands of jobs.

 

7. Improved Living Standards:

 

A stronger cedi would curb inflation, making goods and services more affordable.

 

Conclusion

 

Dr Cassiel Ato Forson's bold blueprint to stabilize the cedi represents not just a plan but a vital opportunity for Ghana to reclaim its economic footing and secure a brighter future. His comprehensive approach, which prioritises fiscal discipline, debt restructuring, export diversification, and coordinated monetary policies, offers a pragmatic and hopeful pathway for addressing Ghana's economic challenges. While the obstacles are significant, ranging from entrenched structural weaknesses to global economic uncertainties, the potential rewards of a successful implementation are transformative.

 

The success of this initiative hinges on several critical factors. First, strong institutional coordination between the Ministry of Finance, the Bank of Ghana, and other economic stakeholders is essential to ensure the seamless execution of monetary and fiscal policies. Second, public accountability and transparency will be crucial to building trust, both domestically and internationally, while fostering a culture of compliance and fiscal prudence. Lastly, unwavering commitment to fiscal discipline must remain at the core of the nation's recovery efforts, ensuring that resources are allocated efficiently, and wastage is minimised.

 

The stability of the cedi will not only symbolise economic resilience but also serve as a cornerstone for broader national progress. A stable currency has the potential to reduce inflation, ease the burden of external debt servicing, and attract much-needed foreign direct investment. It can also revitalise critical sectors such as agriculture, manufacturing, and services, creating jobs and fostering inclusive economic growth.

 

If Dr Forson's strategies take root, Ghana could position itself as a model for economic reform across the African continent. By addressing the root causes of fiscal instability and leveraging its unique strengths, the nation could lead by example, demonstrating how sound economic policies can translate into tangible benefits for its people. The ripple effects of such success would extend beyond Ghana's borders, inspiring neighbouring countries to adopt similar reforms in pursuit of stability and prosperity.

 

The road to recovery will undoubtedly be challenging. The journey requires not only determined leadership but also the collective effort of government institutions, private enterprises, and ordinary citizens. However, with a clear vision and a united front, Ghana has the potential to revive the cedi, rebuild confidence in its economy, and unlock the vast opportunities that lie ahead. Dr Forson's vision is more than a plan; it is a call to action for a nation ready to rise to its challenges and chart a new course for the future. Through resilience, innovation, and collaboration, Ghana can turn its economic trials into triumphs and ensure a sustainable and prosperous legacy for generations to come.-Ghanaian Times.

 

 

 

 

Melania Trump launches her own cryptocurrency

Incoming first lady Melania Trump has launched a cryptocurrency on the eve of her husband's inauguration as US president.

 

The announcement comes a day after President-elect Donald Trump launched the $Trump cryptocurrency. Both coins have risen but have seen volatile trade.

 

"The Official Melania Meme is live! You can buy $MELANIA now," she posted on the social platform X on Sunday.

 

The website for the "Official Melania Meme" says it is a crypto asset created and tracked on the Solana blockchain.

 

 

Disclaimers on the websites of both the $Trump and $Melania coins said they were "not intended to be, or the subject of" an investment opportunity or a security.

 

According to the CoinMarketCap website, $Trump has a total market valuation of about $12bn (£9.8bn), while $Melania's stands at around $1.7bn.

 

Trump had previously called crypto a "scam" but during the 2024 election campaign became the first presidential candidate to accept digital assets as donations.

 

On the campaign trail, Trump also said he would create a strategic bitcoin stockpile and appoint financial regulators that take a more positive stance towards digital assets.

 

That spurred expectations that he would strip back regulations on the crypto industry.

 

In the wake of Trump's victory, bitcoin jumped to a record high is currently trading at $140,000, according to crypto trading platform Coinbase.

 

On Friday, the incoming artificial intelligence (AI) and crypto tsar David Sacks held a "Crypto Ball" in Washington, DC.

 

Other cryptocurrencies, including dogecoin - which has been promoted by high-profile Trump supporter Elon Musk - have also risen sharply this year.

 

Under President Joe Biden, regulators cited concerns about fraud and money laundering as they cracked down on crypto companies by suing exchanges.-bbc

 

 

 

 

TikTok restores service in US after Trump pledge

TikTok is resuming services to its 170 million users in US after President-elect Donald Trump said he would issue an executive order to give the app a reprieve when he takes office on Monday.

 

On Saturday evening, the Chinese-owned app stopped working for American users, after a law banning it on national security grounds came into effect.

 

Trump, who had previously backed a ban of the platform, promised on Sunday to delay implementation of the law and allow more time for a deal to be made. TikTok then said that it was in the process of "restoring service".

 

Soon after, the app started working again and a popup message to its millions of users thanked Trump by name. In a statement, the company thanked the incoming president for "providing the necessary clarity and assurance" and said it would work with Trump "on a long-term solution that keeps TikTok in the United States".

 

 

What to know after Supreme Court decision to ban TikTok in the US

TikTok creators mourn app where 'overnight' success is possible

Americans and Chinese share jokes on 'alternative TikTok'

TikTok CEO Shou Chew is expected to attend Trump's inauguration Monday.

 

Posting on Truth Social, a social media platform he owns, Trump said on Sunday: "I'm asking companies not to let TikTok stay dark! I will issue an executive order on Monday to extend the period of time before the law's prohibitions take effect, so that we can make a deal to protect our national security."

 

TikTok's parent company, Bytedance, previously ignored a law requiring it to sell its US operations to avoid a ban. The law was upheld by Supreme Court on Friday and went into effect on Sunday.

 

It is unclear what legal authority Trump will have to delay the implementation of a law that is already in effect. But it expected that his government will not enforce the ban if he issues an executive order.

 

It's an about-face from his previous position. Trump had backed a TikTok ban, but has more recently professed a "warm spot" for the app, touting the billions of views he says his videos attracted on the platform during last year's presidential campaign.

 

For its part, President Joe Biden's administration had already said that it would not enforce the law in its last hours in office and instead allow the process to play out under the incoming Trump administration.

 

 

But TikTok had pulled its services anyway on Saturday evening, before the swift restoration of access on Sunday.

 

The short-form video platform is wildly popular among its many millions of US users. It has also proved a valuable tool for American political campaigns to reach younger voters.

 

Under the law passed last April, the US version of the app had to be removed from app stores and web-hosting services if its Chinese owner ByteDance did not sell its US operations.

 

TikTok had argued before the Supreme Court that the law violated free speech protections for its users in the country.

 

The law was passed with support from both Republicans and Democrats in Congress and was upheld unanimously by Supreme Court justices earlier this week.

 

The issue exposes a rift on a key national security issues between the president-elect and members of his own party. His pick for Secretary of State, Marco Rubio, had vocally supported the ban.

 

"TikTok extended the Chinese Communist Party's power and influence into our own nation, right under our noses," he said last April. But he seemed to defer to the president-elect when a journalist asked if he supported Trump's efforts to restore the ban.

 

"If I'm confirmed as secretary of State, I'll work for the president," he told Punchbowl media last week.

 

After Trump intervened on Sunday morning, Senate Intelligence Committee Chair Tom Cotton, a Republican senator from Arkansas, broke with Trump by saying that any company that helps TikTok stay online would be breaking the law.

 

"Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability under the law, not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs," he wrote on social media.

 

 

An executive order that goes against the law could be fought in court.

 

Several states have also sued the platform, opening up the possibility to TikTok being banned by local jurisdictions, even if it is available nationally.

 

Although the platform went live again on Sunday for existing users, the question of whether third-parties - hosting platforms or app stores like Google or Apple - could support TikTok in the US remains murky, says University of Richmond law professor Carl Tobias. The app had been removed from those stores in anticipation of the ban.

 

"It is murky," he told the BBC.

 

In a post on Truth media, Trump promised to shield companies from liability, opening the door to TikTok being available on Apple and Google again.

 

"The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order," the president-elect said on Truth Social Sunday.

 

But during the Supreme Court hearings, Solicitor General Elizabeth Prelogar was adamant that an executive order cannot change the law retroactively.

 

"Whatever the new president does, doesn't change that reality for these companies," Justice Sonia Sotomayor said during the hearings.

 

"That's right," Prelogar said.

 

Professor Tobias said that the law does include a provision that would allow the president to postpone the ban for up to 90 days, if he can show that the company is making substantial progress on alleviating national security issues. But, he said, it's not clear whether those conditions have been met.

 

"The best thing Trump could do is work with Congress, and not potentially be in violation of the law or have any questions left hanging," he said.

 

"I don't know that we're going to know a whole lot more until we see that executive order."-bbc

 

 

 

Shein backlash fails to deter shoppers: 'I spend £20 a month'

Emily, 21, spends around £20 a month at Chinese fast-fashion giant Shein, turning to it whenever she needs a new party or holiday outfit.

 

"You can almost always find what you're looking for, even if the quality is bad", she says.

 

Like millions in the UK and the US, she buys from the online shop mostly because of how affordable it is.

 

The firm has faced scrutiny over how it treats workers, with a BBC investigation highlighting 75-hour weeks for workers in contravention of Chinese labour laws, but it is unlikely shoppers will be put off buying their clothes there.

 

 

'Affordable'

Emily has considered stopping buying from Shein due to its labour practices, but says everywhere else "is way too expensive".

 

"I'm happy to talk about the fact I shop at Shein because I know I'm not the only one," she adds.

 

The numbers show she's right, with Shein transforming from a little-known company just a few years ago into one of the world's biggest clothing firms.

 

Global sales are estimated to have reached $36.9bn (£30.2bn) last year, according to GlobalData.

 

Shein is a private company and does not report its global results.

 

But profits in the UK doubled in 2023 to more than £24m, according to a Companies House filing.

 

Shein stocks thousands of different clothing lines, dwarfing rival fast fashion brands such as H&M and Zara.

 

It sells many clothes for below £10, and turns around new designs quickly.

 

The firm has been gearing up for for a stock market flotation in the UK, putting it under scrutiny over both its working practices and its environmental impact.

 

Last year, Shein itself found child labour in its supply chain after tightening scrutiny of suppliers.

 

It has also faced allegations that it uses cotton produced using forced labour, and last week declined to tell MPs whether it used such cotton.

 

Shein was contacted for comment.

 

In response to the BBC investigation into worker conditions it said it is "committed to ensuring the fair and dignified treatment of all workers within our supply chain" and is investing tens of millions of dollars in strengthening governance and compliance.

 

"We strive to set the highest standards for pay and we require that all supply chain partners adhere to our code of conduct," it said.

 

 

Workers get paid about one to two yuan for making a tee-shirt - which is the equivalent of between 11p and 22p.

 

Sarah Johnson, the founder of consultancy Flourish Retail, a former head of buying and merchandising for Asos China, said the firm could pay suppliers more, which would give them more leeway to pay workers.

 

The supplier "doesn't get paid an awful lot of the final price" of the garment.

 

When it comes to workers, "you could raise their pay and it would make a minimal amount of difference to the garment price," she said.

 

An alternative would be for the firm to make less profit, she added.

 

'I'm going to save up'

Sophie Wills stands on a Birmingham street with the top half of her hair dyed blonde and the other half black, wearing a pink cosy jacket

Sophie Wills says Shein is 'probably a no-go now' after finding out about supply chain working conditions

 

Sophie Wills, from Birmingham, said she had previously bought clothes from the retailer due to their affordability.

 

"Times are hard," Sophie says, adding she probably couldn't afford higher-end clothes at the moment.

 

However, she says saving up and "making investments in stuff that is probably higher quality would be a good way to go".

 

'My whole outfit is from Shein'

Thando Sibenke wears a black coat and white hooded top standing next to her friend on a street in Birmingham

Thando Sibenke, pictured with her friend Hafizh Saputra, says she will do more research about firms she buys clothes from

 

Thando Sibenke says she regularly shops at Shein.

 

"My whole outfit's from Shein right now," she says, adding she likes the price, convenience, and variety.

 

However, Thando says she plans to do more research in the future on how the clothes she buys are made.

 

'I'm embarrassed'

Georgina, 24, from London, says she is "embarrassed" that she has shopped at Shein - and has now stopped.

 

"Since reading up on it, the negatives massively outweigh the positives and even when seeing Shein clothing in charity shops, I don't feel comfortable buying it."

 

Fashion designer and academic Shazia Saleem said that people in Generation Z - those born between about 1995 to 2010 – often say in surveys that sustainability and ethics are important to them, but that doesn't necessarily come through in their buying choices.

 

Young people can feel pressure to buy new outfits to keep up appearances on social media, and they don't have much disposable cash, so will probably continue to buy fast fashion, she said.

 

She added that although people should make informed buying decisions, it should be down to the government to strengthen existing UK trading standards rules to make sure companies are selling sustainable and ethically sound products.

 

The truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success

Shein lawyer refuses to say if it uses Chinese cotton

Louise Deglise-Favre, senior apparel analyst at GlobalData, also said she expected affordability to continue to outweigh ethical concerns for Shein shoppers.

 

Younger customers tend to not have much disposable income due to being in school or low paying jobs, she said.

 

Shein releases thousands of new products daily, which can encourage shoppers to buy too much - but it's also a response to "the desire from consumers to constantly update their wardrobes with the latest trends", she adds.-bbc

 

 

 

 

 

 

 

 

 

 

 


 


 


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INVESTORS DIARY 2025

 


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Companies under Cautionary

 

 

 


 

 

 

 


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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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