Major International Business Headlines Brief ::: 13 June 2025

[Bulls n Bears]

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Major International Business Headlines Brief :::  13 June  2025 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Lesotho: Mass Lay-Offs At Lesotho Garment Factories As U.S. Tariffs Bite

ü  Africa: World Fails to Meet 2025 Child Labor Target

ü  African Development Bank Group Delegation to Visit Tanzania

ü  Uganda's Economy Has Now Taken Off, No Return - Museveni

ü  South Africa: There Are More Than 20,000 Unfinished RDP Houses in the
Free State

ü  Uganda's Debt Crisis Deepens As Government Tables New Budget

ü  Kenya: No New Taxes, Just Reforms As Mbadi Unveils Sh30bn Revenue Plan in
2025 Budget

ü  Kenya: Treasury CS Mbadi Unveils Sh4.2tn Budget for 2025/26 in Parliament

ü  Uganda: Shs72tn Budget Sparks Outcry Over Mounting Debt and Lavish
Projects

ü  Kenya: Mbadi Urges Fiscal Prudence in Inaugural Budget Statement

ü  Global oil prices soar after Israel attacks Iran

ü  Some Jolly Rancher sweets unsafe to eat, FSA says

ü  China ready to drop all tariffs on African imports

ü  Reeves refuses to rule out tax rises after economy shrinks

ü  These touts made millions - and claimed staff at big ticketing firms
helped

 


 <mailto:info at bulls.co.zw> 

 


Lesotho: Mass Lay-Offs At Lesotho Garment Factories As U.S. Tariffs Bite

On 2 April, Jane*, a worker at Leo Garments clothing factory in Lesotho was
sent home. She is one of many workers left sitting at home as Lesotho faces
a potential 50% tariff hike from the United States.

 

Until the Trump administration introduced a 10% tariff, Lesotho exported
duty free to the US under the African Growth and Opportunity Act (AGOA). An
additional 40% tariff was suspended, pending negotiations. But as US buyers
weigh the prospect of an imminent hefty tariff, new orders have dried up,
forcing many garment factories in Lesotho to suspend production lines.

 

"Firms that we met are planning a three-month closure, but if there's no
change by September, they may pull out completely," warns United Textile
Employees Union (UNITE) secretary-general Solong Senohe.

 

"If the tariffs were only 10%, they say they would have no problem staying
in Lesotho and their buyers would not have a problem of placing orders. Now
Lesotho has a hanging 50% tariff, and no one knows when it will be
enforced."

 

When Senohe spoke to GroundUp, he had just come from a meeting with Lesotho
Precious Garments, who told him no new orders had been placed after the 50%
tariff announcement.

 

In a letter to UNITE, Precious Garments stated that it is "facing a great
shortage of orders". Similar letters were issued last month by TZICC
Clothing Manufacturers and Maseru-E-Textile, requesting meetings with UNITE
over imminent layoffs.

 

According to Senohe: "The entire industry is affected ... I recently spoke
with Nien Hsing International management, and they said that by the end of
July, all their American orders would be finished."

 

"80% of our clothing exports go to the US, while only 20% go to South
Africa," said Senohe.

 

The country already faces extreme unemployment. A 2024 Lesotho Labour Force
Survey found that 39% of youth aged 15-35 are unemployed.

 

The garment industry had reportedly already shed 16,000 jobs between March
2018 and March 2024, but with 34,151 jobs officially, it is still the
second-largest employer after the public sector. Senohe says the US tariffs
have put 20,000 jobs at risk.

 

On television on Monday, Prime Minister Samuel Matekane said US aid cuts and
tariffs "have crippled industries that previously sustained thousands of
jobs".

 

Workers from Leo Garments, Boming Lai Teng and Precious Garments, speaking
to GroundUp on condition of anonymity, say unionised workers have been the
first targets for the layoffs.

 

EFTU general secretary Tšepang Makakole said they had received reports of
discrimination against union members and had approached the Ministry of
Labour and the Lesotho National Development Corporation for intervention.

 

Last week, employees at Maseru-E Textile began negotiating with management,
demanding half-salaries while at home or severance pay. They had seen
workers at other factories laid off without pay.

 

Shop steward Mathuso Tlale said they became alarmed when they learned that
some of the Chinese employers were selling fridges, microwaves and general
household items. Maitumeleng Saoane, whose job is to record hourly
production at the factory, cited a 2023 example when the owners of a factory
vanished over a weekend, leaving unpaid wages.

 

On Friday, workers held a work stoppage and eventually walked out. On
Monday, they found the gates locked and police cars guarding the premises.

 

Union leaders were allowed in to meet the factory owners. Afterwards,
National Clothing Textile and Allied Workers Union secretary general Sam
Mokhele told workers they would have to stay home for three months starting
July.

 

He said the employers said they had not budgeted for severance pay, but had
agreed to pay those who had worked for the company for two years or more,
M1,000 (R1,000) per month. Those with short service would be given their
annual leave payment.

 

South African orders

 

Kerasemese Rantlhokoane, human resources manager at Lucky Manufacturing, who
also oversees operations at Leo Garments and Hong Da, told GroundUp that all
three "cut, make, and trim" factories have been hard hit.

 

"We are now depending on South African orders, but if South Africa gets hit
in the same way, we won't survive," he said.

 

He said even with reduced operations, factory owners must still pay rent,
utilities, and wages. "That's why some employers vanish or skip paying
salaries for months."

 

He said the owner who bought Leo Garments in February last year "is working
hard to find new markets ... But if it does close, workers will be paid
their terminal benefits."

 

Chinese staff selling belongings were lower-level staff who rotate in and
out, Rantlhokoane said.

 

Deputy president of the Lesotho Textile Exporters Association Ricky Chang,
who is also a director of Nien Hsing Textiles, said US importers are waiting
to see if any trade agreement can be reached and at what tariff level. Nien
Hsing Textiles produces Levi's jeans in Lesotho.

 

If the full 50% tariff is implemented, Chang said, the factories will close
or move to other countries. He said some factories have already planned for
this and are in discussion with trade unions.

 

"Lesotho's textile sector will need the government to act quickly and
achieve good results as soon as possible with its US counterparts."

 

Appeal to government

 

In a letter on 5 May to Prime Minister Matekane, UNITE said, "Thousands of
Basotho workers are facing three months lay-off without pay". The union
called for discussions with government on how to subsidise workers to
mitigate their plight.

 

On Wednesday, union representatives met Minister of Trade Mokhethi Shelile
and Minister of Labour and Employment Tšeliso Mokhosi.

 

UNITE deputy secretary general Potloloane Monare shared a report on the
meeting. The report said the ministers had held virtual meetings with US
officials.

 

"A final decision on the tariffs will be made by July 8, 2025 ... But it
looks likely that a 10% tariff will be applied to all African countries."

 

The report said the government said it lacked the resources to provide
financial support for workers sent home and would assess options.

 

Meanwhile, thousands of workers like Jane will be sent home when factories
complete existing orders. Jane can hardly pay her bills. She is weighing up
immigrating to Newcastle.

 

"I don't want to go illegally, but I'm running out of options," she said.
She has four children to support.

 

* not her real name

 

Read the original article on GroundUp.

 

 

 

Africa: World Fails to Meet 2025 Child Labor Target

Despite global gains on combatting child labor, sub-Saharan Africa still has
the highest number of underage workers, highlighting deeper challenges with
the continent's fast-growing economies.

 

There are now 138 million child laborers, down from an estimated 160 million
in 2020, the United Nations Children's Fund (UNICEF) and the International
Labor Organization (ILO) said in a joint report that was released to mark
Thursday's World Day against Child Labor.

 

The drop represents good news for child welfare, as in 2000, the ILO
estimated 245.5 million children were working. The almost 50% decrease is
especially promising as the number of children has risen by 230 million over
the same period.

 

The number of children, which the ILO defines as 5 to 17-year-olds, engaged
in "hazardous work" — mostly in mining, industrial or agricultural sectors —
has also decreased from 79 million in 2020 to 54 million in 2025.

 

However, the ILO says even optimistic estimates project it will be decades
before child labor is completely eliminated.

 

Challenges remain across Africa

 

Around 86.6 million child laborers — almost two-thirds of all child laborers
— are in sub-Saharan Africa.

 

Nankali Maksud, regional advisor for child protection at UNICEF, told DW:
"In terms of prevalence rate, it has been reduced. So we've gone from 24% to
22% between 2020 and 2024. But what we're challenged with in this region is
the rapid population growth. So in absolute numbers, we haven't made much
progress."

 

Particularly concerning for Maksud is that younger children (aged 5 to 11)
make up the largest share of child laborers.

 

"We're not addressing seriously enough poverty at household level,
particularly in rural areas. Unless we have the right political will and
financing to lift those households, we will not be able to address child
labor," she told DW.

 

Additionally, Maksud believes regional efforts to increase access to quality
education — through building schools and encouraging parents to send
children to school — must be prioritized, as well as stronger enforcement of
laws to punish child labor practices.

 

Recommendations also include more stringent labor inspections in high-risk
sectors like mining and agriculture, and improved supply chain
accountability.

 

"The majority of our countries have laws in place," Maksud told DW, noting
that enforcement of those laws is weak. "The ministries responsible for
issues like child labor, most of the time, they have the smallest budget
lines."

 

Lisa Zimmerman, head of the UNICEF country office in Madagascar, said 47% of
5- to 17-year-olds there are affected by child labor — much higher than in
other parts of sub-Saharan Africa.

 

"Child labour affects boys a little bit more than girls. It also affects
children in rural areas more than those in urban areas, and it generally
affects children from poor families," Zimmerman told DW, adding that "32% of
all children in Madagascar actually engaged in work under dangerous
conditions, so that is the worst form of child labor."

 

Climate change brings more misery to child workers

 

Multiple climate-related problems, from drought to cyclones, have plagued
agriculture-dependent Madagascans.

 

"Climatic shocks push families and children into labor, new forms of labor
and into more hazardous forms of labor," Zimmermann told DW.

 

Some rural communities in arid southwestern Madagascar have turned to mica
mining, instead or alongside agricultural practices.

 

Madagascar is the third largest exporter of mica, after Russia and India,
and the sector has boomed in recent years as the mineral is used in the
renewable energy sector.

 

"It's then mostly children that have to climb into the mines to support
their families and to have enough to eat," Zimmermann added.

 

Mica mining in these communities often involves the whole family, from
elders to young children. They also told UN researchers that if their family
members do not work, they cannot afford to eat.

 

The perpetuation of child labor

 

While the ILO defines child labor as work that deprives children of their
childhood, dignity, potential and development, especially with regard to
schooling, communities across Africa have their own understandings of what
constitutes child labor, and when it is necessary.

 

Lydia Osei, a researcher from the University of Ghana, has observed trends
within Ghanaian society.

 

"Child labor is a huge problem, except we haven't as people made conscious
efforts to deal with it," she told DW.

 

Particularly under scrutiny in West Africa is child labor in mining,
agriculture and housework. In Ghana, reports of child labor in cocoa farming
and informal mining are rife.

 

"I don't think any parent would want their child as young as 8 years to be
at the quarrying site, to be hit and hurt. But because tradition allows that
the child helps in the maintenance of the family, they take their children
to artisanal mining sites," Osei told DW.

 

Often, employers at mining sites participate in child labor by allowing
children to work alongside their parents, with small children given jobs in
sorting, or climbing into areas that adults cannot reach.

 

"Usually, young people do not get physical cash as payment. They get some of
the rocks or ore as payment," Osei told DW. "But because the underage
workers are usually able to get something they classify as enough, they
don't see it as exploitation. And that is why the relationship keeps going."

 

As in other communities, the effects of children being unable to attend
school and entering the job market early become apparent only in the long
term. For this reason, the ILO and UNICEF say governments across sub-Saharan
Africa need to introduce strategies that break the cycle of child labor.

 

'Trying to survive' 

 

Despite the disappointment of not eliminating child labor by 2025, Maksud
told DW progress is being made by the introduction legal frameworks to stop
child labor, and a continent-wide growth in education opportunities,
especially for girls. Maksud says as economies in sub-Saharan Africa grow it
raises the chances that all communities will receive better opportunities.

 

"Families are trying to survive and they're making choices not because
they're bad people, but because they're trying to survive. And if we give
them a way out that, maybe asking their children to work won't be a solution
they pick," Maksud told DW.

 

Edited by: Keith Walker

 

 

 

African Development Bank Group Delegation to Visit Tanzania

WHAT: African Development Bank Group delegation to visit Tanzania

 

WHO: High-level Bank delegation led by Bank Group President, Dr. Akinwumi
Adesina

 

WHEN: June 13- 15, 2025

 

WHERE: Dar es Salaam / Dodoma, Tanzania

 

The president of the African Development Bank Group, Dr. Akinwumi Adesina
will conduct an official visit to Tanzania from June 13 to 15, 2025, aimed
at reinforcing the Bank's partnership with the East African nation.

 

He will hold talks with Tanzania's president, Samia Suluhu Hassan, with a
focus on ongoing and future development opportunities for Bank financing.

 

While in Tanzania, Dr. Adesina will be conferred with an Honorary Doctorate
Degree from the University of Dar es Salaam in recognition of his
"outstanding leadership, lifelong commitment to Africa's transformation,"
and his contributions to the continent's progress.

 

Dr. Adesina is also scheduled to tour Bank-financed transportation projects
across the country, underscoring the institution's continued commitment to
infrastructure, economic growth, and social progress in Tanzania.

 

The African Development Bank's active portfolio in Tanzania is concentrated
in infrastructure development, with transport accounting for roughly 66
percent of all infrastructure financing. As of May 2025, the Bank has an
active transport portfolio of $2.41 billion across road, rail and aviation.
These transport operations are delivering critical infrastructure to support
mobility, logistics efficiency and boost regional competitiveness to
collectively position Tanzania as a strategic anchor and trade hub in East
Africa.

 

Read the original article on African Development Bank (AfDB).

 

 

 

Uganda's Economy Has Now Taken Off, No Return - Museveni

President Museveni has said that the economy has taken off and rallied
leaders to match financial allocations with performance and accountability.

 

He made the remarks during the unveiling of the 2025/ 26 financial year
budget.

 

The Shs 72.376 trillion budget was delivered under the theme: "Full
monetization of the Ugandan economy through commercial agriculture,
industrialization, expanding and broadening services, digital transformation
and market access".

 

In fulfillment of Article 155(1) of the Constitution and on behalf of the
president, Matia Kasaija, the Minister of Finance, Planning and Economic
Development, presented the Budget for the Financial Year 2025/26 to Ugandans
as approved by Parliament.

 

The ceremony took place at Kololo Ceremonial Grounds.

 

Referring to the Finance Minister's presentation, the president said, "Here
the size of Uganda's economy is now $61 billion by the exchange rate method
and $174 billion by the purchasing power parity method.

 

Given our population, which is about 45 million Ugandans, we are no longer a
least developed country. We are now a lower middle-income country."

 

Museveni emphasized economic stability indicators that signaled progress as
indicated by the Finance Minister.

 

"GDP growth, and price stability: Are the prices stable or not? Currency
stability, is the currency stable or not? Are jobs being created or not? Are
export earnings going up or not? And finally, are foreign direct investments
coming in or not? I thought we should note that."

 

 

President Museveni underscored that in 1986, Uganda's GDP was just $3.9
billion noting that, "You can see the economy has grown more than 20 times,
I thought you should mark that, because in a long speech like this you may
not notice the big picture."

 

This year's budget is anchored in the Fourth National Development Plan
(NDPIV) 2025/26-2029/30, with strategic investments categorized into ATMs
priority sectors such as agro-industrial development, tourism, minerals
(including oil and gas), ICT and "enablers" which are public infrastructure
and services critical for business growth.

 

But beyond the numbers and planning frameworks, President Museveni used his
address to spotlight mismanagement and inefficiencies in budget execution,
warning that Uganda's transformation cannot be undermined by negligence.

 

"I heard the veterans of Luweero in Lyantonde on Heroes Day raising issues.
When I checked, we had already provided Shs 218 billion or something like
that for the kasimo, and it was flipped to be Shs5 million for elders each
and Shs1 million for the supporters. So, what happened to this money?"
President Museveni asked.

 

He demanded clarity on the long-standing cattle compensation for
conflict-affected regions.

 

"For Teso, Lango, Acholi, we have always spent Shs 200 billion on that, and
we have already budgeted Shs 80 billion. So, leaders, follow up that money."

 

The president also turned his attention to public investments in sports
saying, "Then you get things like stadiums. The National Council of Sports
needs to explain to us. I hear some money has gone to Kakyeka

 

and a number of them to do some work, others are going to be done massively,
and so on. So, the Council of Sports should also explain and brief Maama
about this money."

 

President Museveni also reaffirmed the central role of government-led
initiatives such as NAADs, Operation Wealth Creation (OWC), the Parish
Development Model (PDM), and Emyooga in transforming lives.

 

"The Government, through the budgets, is the one that can help the people to
solve their problems. Programs like NAADs, OWC, PDM, Emyooga, etc., have
already shown that they can liberate people from poverty," he said.

 

He cited tangible examples of economic transformation driven by government
science and innovation.

 

"The current coffee boom was on account of the Government scientists who
developed the improved Clonal Coffee, different from the old variety that
people in Bushenyi had abandoned for the dairy industry. The dairy industry
in the cattle corridor, the Kalangala Palm oil projects, are projects pushed
by the government that have transformed people's lives," the president
noted.

 

Reject bribes

 

President Museveni sharply criticised the growing trend of political bribery
and vote-buying disguised as fundraising, warning that it is undermining the
electorate's power and sabotaging national progress.

 

"Not petty money from MPs for fundraising or bribes. The voters need to know
that these practices of bribes and fundraising are overthrowing the voters'
power to elect leaders that will work with the Central Government to solve
their problems," he said.

 

President Museveni was emphatic about the need for voters to resist being
seduced by envelopes of cash and instead focus on choosing leaders who will
protect their interests.

 

"Do not accept petty money from politicians and throw away your power to
elect a leader that can kwemerera (supervise) the money sent to you through
the parish, fight corruption, etc. Once we solve the political corruption
that has paralyzed the populist politicians, it will be easy to fight the
corruption of the Public Servants," he said.

 

Drawing on Uganda's history of civic engagement, President Museveni called
upon the people to be vigilant, insisting that the masses are the true
whistleblowers in the fight against corruption.

 

"It is because we have a reliable source for kurega (whistleblowing). These
are the people, the victims of the corruption."

 

He further outlined the key drivers of Uganda's transformation, crediting
the NRA/UPDF, the wealth creators in agriculture, manufacturing, services
and ICT, government scientists, and patriotic members of the political class
who support the NRM programs.

 

"The big changes that are happening in Uganda, are by the following actors:
the NRA/UPDF that liberated the country and has been ensuring peace ever
since; the wealth creators in the four sectors. The Government scientists
that make innovations, and the responsible members of the political class
that have been supporting the NRM programs. It is, therefore, not fair for
some actors to spoil these great successes," the president said.

 

"Some people say that they give bribes because Museveni is always giving the
khaki envelope to members of the population. Do not draw water and mud; do
not mix up issues. The brown envelopes I give are

 

part of the ancient traditions here. It is called okurongoora. It is the
King who does that to the singers, or wrestlers, etc. President is the
modern 'King'. You are not 'Kings'. I have a budget for that. I do not sell
my cows to get money to kurongoora singers."

 

He condemned the exploitative culture of individual fundraising pushed by
politicians, describing it as unsustainable and misleading.

 

"Fundraising was and is premature. The healthy fundraising is okusonda,
whereby you make small equal contributions but by many contributors," he
said.

 

Recalling a humble past, President Museveni invoked a childhood example from
his father, Mzee Kaguta, saying, "In the 1950s, Mzee Kaguta sometimes would
participate in kusondera (contribute) for

 

enjogga (a potful) of rwaagwa (banana alcohol). At that time, enjogga was
shs5 . Five people would contribute Shs 1 each."

 

He criticized politicians who create false impressions of wealth and burden
themselves with unsustainable donations.

 

"With the rampant fundraising, the MP carries the whole burden. It is really
extortion, but it was instigated by the MPs who created the impression that
they had the type of money which they did not have," the president noted.

 

Challenging the culture of silent approval of suspicious wealth, President
Museveni urged elders and church leaders to question the source of lavish
donations from young politicians.

 

"Even the church leaders and other elders should ask those young mistake
makers: 'Naye mwana wange, esente zino zonna, ozigyawa?' That is what a
responsible parent should ask omwana (son or daughter)

 

or omuzukulu (grandchild) if he/she sees him or her throwing around money,"
he said.

 

"The responsible parents do not accept stolen gifts from their children."

 

The Speaker of Parliament, Anita Among applauded the president for
fulfilling his constitutional duty by presenting the national budget for the
2025/2026 financial year, describing the moment as a reaffirmation of
Uganda's democratic and constitutional principles.

 

She emphasized that the presentation of the budget is not a one-man affair
but the result of a collaborative and consultative process involving
multiple stakeholders across government, civil society, and the citizenry.

 

"Today's budget reading is a culmination of inclusive engagement. It is the
result of cooperation among all stakeholders, and we commend the
participatory and transparent nature in which this process has been
undertaken," she said.

 

As a Parliament that prides itself on being people-centred, Among rallied
stakeholders to go beyond participation and ensure active involvement in the
implementation phase of the budget.

 

"We urge all players in the budget process to ensure civic awareness,
execution, and above all, accountability. Participation should not end with
planning. It must carry through to real impact," she stressed.

 

Among said Parliament remains fully cognizant of the critical role that
people's participation plays in shaping Uganda's development path,
describing it as a cornerstone of national progress.

 

"Participation of our people is not a formality, it is a principle. It
reflects the true spirit of our beloved nation," she affirmed.

 

Highlighting key milestones, the Speaker noted Parliament's significant
contributions in shaping the financial year 2025/2026 budget.

 

She said the legislature had diligently scrutinized and approved ministerial
policy statements during the period of April 9 to 16, ensuring alignment
with national priorities.

 

"During this period, Parliament approved ministerial statements that
provided a strong foundation for the budget," she revealed.

 

Further, she highlighted that the House passed seven crucial revenue bills
aimed at boosting government capacity to raise and manage revenue
sustainably.

 

"These revenue bills are instrumental in enabling the realization of the
targets set for the new financial year. They are not just laws, they are
economic tools designed to fuel transformation," said Among.

 

While presenting the budget, Kasaija stated that Uganda's economy is no
longer defined by fragility, but by resilience and stability, saying that
this has attracted investors and fueled sustained growth.

 

"Uganda's economy has fully recovered from previous global, regional, and
domestic shocks and is firmly on a path of transformation. We expect to grow
by 6.4 percent this coming financial year," the minister declared.

 

Kasaija attributed this economic strength to Uganda's sound fiscal policies,
targeted infrastructure investments, improved access to affordable credit,
and strong private sector development, all of which have helped reduce the
cost of doing business across the country.

 

Tracing Uganda's economic journey since 2010, the Minister highlighted the
government's long-term strategy anchored in patriotism, Pan- Africanism,
democracy, and socio-economic transformation--the four key principles that
continue to guide Uganda's development.

 

"The early years of the NRM government were focused on restoring peace,
stabilizing a broken economy, and addressing extreme poverty. Today, we are
firmly in the phase of socio-economic transformation," Kasaija explained.

 

"For the first time, Uganda also met the UN criteria for graduation from the
least developed country status in March 2024. This achievement reflects our
commitment to inclusive development," he said.

 

He noted that education and health remain top priorities, with Shs 11.4
trillion allocated under the Human Capital Development Program, noting that
funds will support teacher salary enhancements, classroom construction,
digital learning infrastructure, and reforms in the lower secondary
curriculum.

 

"We are also investing in youth skilling through the Presidential Industrial
Hubs and the Skilling Uganda Program, to boost employability and
productivity," Kasaija added.

 

He further highlighted that debt servicing takes a significant share of the
budget, with Shs 28.5 trillion allocated, Shs 11.3 trillion for interest
payments, shs 4.9 trillion for external debt, and shs 1.4 trillion for
clearing domestic arrears.

 

The minister clarified that the budget has been financed by Shs 37.2
trillion in domestic revenue, Shs 11.3 trillion in domestic borrowing, Shs
11.3 trillion from external project support, and Shs 10 trillion for
domestic debt refinancing.

 

Read the original article on Nile Post.

 

 

 

South Africa: There Are More Than 20,000 Unfinished RDP Houses in the Free
State

A couple in Balata village in the eastern Free State have waited 14 years
for their RDP home to be finished.

 

Theirs is one of more than 20,000 Breaking New Ground (BNG, formerly known
as RDP) houses in the province that are incomplete, says Zimasa Mbewu,
spokesperson for the Free State Department of Human Settlements. These
projects are "blocked" mainly because contractors failed to complete the
work they have been paid for.

 

Toloko Mofokeng and his wife Monyaduwe Tshabalala were allocated an RDP
house in 2011, to be built on a piece of land where they lived. A contractor
arrived the same year but left without doing anything. A second contractor
left after levelling the ground. A third contractor put in a concrete slab
before also abandoning the project.

 

Fourteen years later, the couple live in a shack next to the slab. The shack
leaks when it rains and will need to be rebuilt soon. Mofokeng, tired of
waiting, says he is considering building his own mud hut on the concrete
foundation.

 

Mbewu says the department has scrapped contractors who left work undone and
"blocked" housing projects, including Mofokeng's home, will be completed
over the next two years. She declined to name the contractors responsible
for Mofokeng's incomplete house, as disputes over payment were still taking
place.

 

Long history of housing failures

 

The Zondo Commission found that between 2010 and 2011, under former Premier
Ace Magashule, about R1-billion was spent on housing projects in the Free
State, many of which were never completed.

 

In 2014, the province entered into a R255-million corrupt tender for the
removal of asbestos roofs. That trial is continuing.

 

In 2021, the Auditor General wrote that for three years, the housing
department had spent most of the grants received for housing but had
delivered "significantly fewer houses than the target", with no consequences
for contractors who failed to meet their targets.

 

In 2024, the Auditor General commended the department on improving internal
controls, but the department only reported completing 50 Breaking New Ground
houses against a target of 2,065.

 

The Auditor General found there was insufficient evidence that even 50
houses had been built. "I could not determine the actual achievement, but I
estimated it to be materially less than reported," the Auditor General
wrote.

 

Read the original article on GroundUp.

 

 

 

Uganda's Debt Crisis Deepens As Government Tables New Budget

As Finance Minister Matia Kasaija presented Uganda's national budget for the
2025/26 financial year, alarm bells rang in Parliament over the country's
deepening debt crisis.

 

Shadow Finance Minister and Kira Municipality MP, Ibrahim Ssemujju Nganda,
raised urgent concerns about Uganda's growing borrowing appetite and
dwindling ability to repay.

 

"Who will lend us Shs 34 trillion?" Ssemujju asked, referencing the
government's plan to borrow an estimated Shs 34 trillion to finance the new
budget. According to the Medium-Term Debt Management Strategy, 68% of this
borrowing will be sourced from domestic commercial banks, while only 32% is
expected from multilateral lenders such as the World Bank and IMF.

 

Worryingly, only 9% of these loans are concessional, with over 16%
classified as expensive commercial credit.

 

Some of the new loans will reportedly fund recurrent
expenditure--contradicting previous government commitments to borrow
primarily for development projects.

 

Uganda's public debt now stands at Shs106.2 trillion, equivalent to 52.4% of
GDP. Of the Shs72 trillion budget for 2025/26, a staggering Shs27.3 trillion
(38%) is earmarked for debt servicing.

 

This includes Shs10 trillion for interest payments and another Shs10
trillion for redeeming domestic securities.

 

"We are now borrowing more to pay back existing loans--a dangerous fiscal
spiral," Ssemujju warned.

 

Despite these debt pressures, the Uganda Revenue Authority (URA) has been
tasked with collecting Shs 34 trillion in domestic revenue, up from Shs29.2
trillion last year.

 

However, URA has failed to meet its revenue targets for five consecutive
years, raising questions about the realism of this year's goal.

 

The targeted revenue includes Shs 12.9 trillion from direct domestic taxes,
Shs12.6 trillion from international trade, and Shs8.7 trillion from indirect
domestic sources.

 

Yet, with persistent shortfalls, high interest obligations, a depreciating
shilling, and declining foreign exchange reserves, Uganda's fiscal health
remains precarious.

 

China is now Uganda's second-largest creditor after the World Bank, with Shs
9.2 trillion owed to Beijing. Last year alone, Uganda paid Shs679 billion in
interest and fees to China.

 

Meanwhile, domestic debt--much of it borrowed from foreign-owned banks like
Stanbic and Standard Chartered--now exceeds Shs53 trillion.

 

Ssemujju cautioned that Uganda is borrowing more for consumption than
production, warning that the private sector is increasingly being crowded
out.

 

With general elections looming, there are growing fears that fiscal
indiscipline may worsen.

 

"This budget reflects misplaced priorities. We are enslaving future
generations without creating meaningful economic value," Ssemujju said.

 

Read the original article on Nile Post.

 

 

 

Kenya: No New Taxes, Just Reforms As Mbadi Unveils Sh30bn Revenue Plan in
2025 Budget

In his maiden budget speech to the National Assembly, Mbadi said the
government had heeded the loud and clear message from Kenyans, following
nationwide protests triggered by controversial tax proposals in the
2024/2025 Finance Act. He asked Parliament to observe a moment of silence in
honour of those who lost their lives during the demonstrations.

 

"Mr. Speaker, no life should be lost and no property should be destroyed
again. The message from Kenyans was clear," he said.

 

Instead of additional tax burdens, the 2025 Finance Bill proposes to raise
Sh30 billion in revenue through reforms, improved compliance, and
rationalisation of tax incentives.

 

 

"Since I took office at the National Treasury, I assured Kenyans that we
shall strive to reduce the tax burden. In this respect, the Finance Bill
2025 has neither proposed new taxes nor raised any tax rates," Mbadi stated.

 

He noted that tax expenditures -- revenue lost through exemptions and
incentives -- surged from Sh393.1 billion in 2022 to Sh510.6 billion in
2023, equivalent to 3.4 percent of GDP. To reverse this trend, the
government intends to streamline incentives to promote fairness and
eliminate distortions in the tax system.

 

"From the proposed reforms, we expect to raise Sh30 billion in additional
revenue," he said.

 

To support local industries and lower the cost of doing business, Mbadi
unveiled several customs measures agreed upon with East African Community
(EAC) ministers. Kenya will now import tea packaging materials and wheat at
reduced duty rates and extend duty remissions for sectors such as
telecommunications, animal feed, and leather.

 

 

"The meeting allowed Kenya to import tea packaging materials at a lower duty
rate of 10 percent. In addition, Kenya was granted an extension of duty
remission to import wheat at the rate of 10 percent," Mbadi said.

 

Kenya has also withdrawn its earlier request to maintain higher duties on
specific packaging materials -- a move designed to support tea exporters hit
by last year's tax hikes.

 

The Bill also includes sweeping amendments to streamline tax administration
and support economic recovery. Among the key proposals is the reduction of
the digital asset tax from 3 percent to 1.5 percent, aimed at encouraging
broader participation in virtual asset trading, particularly among the
youth.

 

"To encourage wider participation in virtual asset transactions, especially
among the youth, the Bill proposes to reduce the digital asset tax rate from
3 percent to 1.5 percent," said Mbadi.

 

In the real estate sector, the Bill proposes extending mortgage interest tax
relief to cover individuals constructing their own homes -- a benefit
previously restricted to homebuyers. Additionally, daily subsistence
allowances for private sector workers will rise from Sh2,000 to Sh10,000,
aligning them with public sector rates.

 

"To ensure fairness, the Bill proposes to extend this benefit to interest on
mortgages taken for construction of residential houses. This will support
home ownership and align with the BETA Pillar on Affordable Housing," said
the CS.

 

Mbadi also outlined efforts to position Nairobi as a regional financial hub.
Certified firms under the Nairobi International Financial Centre will
benefit from lower corporate tax rates and dividend exemptions --
conditional on job creation and capital reinvestment.

 

Other reforms target clarification within the VAT Act, improved VAT refund
processes, and stricter control of zero-rated and exempt goods. Amendments
to the Excise Duty Act will reduce burdens on alcohol manufacturers,
regulate plastic imports, and bring foreign digital service providers into
the tax bracket.

 

"This budget reaffirms the priority policies and strategies aimed at
stimulating economic recovery," Mbadi concluded. "The freedoms we enjoy in
this country have not come easy."

 

Read the original article on Capital FM.

 

 

 

 

Kenya: Treasury CS Mbadi Unveils Sh4.2tn Budget for 2025/26 in Parliament

Nairobi — Treasury Cabinet Secretary John Mbadi is presenting a Sh4.2
trillion budget for the 2025/26 financial year, with the government
targeting to raise Sh3.3 trillion in revenue and bridge a Sh900 billion
deficit through borrowing and grants.

 

Of the projected revenue, Sh2.7 trillion will come from taxes and Sh560
billion from other government levies.

 

To cover the shortfall, the Treasury expects Sh46.9 billion in grants, Sh592
billion in domestic borrowing, and Sh284 billion from external sources.

 

Recurrent spending is set at Sh3.1 trillion, with Sh725.1 billion allocated
for development and Sh436.7 billion earmarked for county governments.

 

The education sector received the largest share, with Sh701 billion
allocated. Of this, Sh377 billion will go toward teacher salaries, while
Sh55 billion will fund free day secondary school education, among other
programmes.

 

Read the original article on Capital FM.

 

 

 

Uganda: Shs72tn Budget Sparks Outcry Over Mounting Debt and Lavish Projects

Uganda's newly proposed Shs72 trillion budget for the 2025/26 financial year
has ignited sharp criticism from opposition lawmakers and economic experts,
raising alarm over the country's ballooning debt burden and the government's
spending priorities.

 

In a minority report presented to Parliament, MP Ibrahim Ssemujju condemned
the government's "obsessive borrowing," citing costly ventures like the
controversial Lubowa hospital project, which he described as a luxury Uganda
cannot afford.

 

His remarks follow a Bank of Uganda report from 2023, which revealed that
32% of the country's tax revenue is now consumed by debt servicing.

 

 

"This budget reflects a government more focused on prestige than public
welfare," Ssemujju said, warning that Uganda is mortgaging its future for
short-term, high profile gains.

 

The budget marks a staggering leap from Shs58 trillion in 2023 to Shs72
trillion in 2024, mirroring a broader trend among developing nations trapped
in rising debt due to high global interest rates.

 

The World Bank's 2023 International Debt Report cautioned that many such
countries, including Uganda, are veering toward crisis as debt obligations
increasingly crowd out essential social services like health and education.

 

Further compounding Uganda's financial strain is President Museveni's recent
military and diplomatic involvement in neighbouring South Sudan.

 

The April 2025 intervention, while aimed at stabilizing the region, has
raised eyebrows at home amid concerns that national resources are being
diverted from urgent domestic needs.

 

Critics argue that Uganda's economic strategy risks deepening inequality and
leaving critical sectors underfunded.

 

"This is not just a numbers issue it's a question of national priorities,"
said political economist Sarah Kaggwa.

 

"We're spending more on debt and diplomacy than on our own people."

 

As Parliament debates the proposed budget, the spotlight remains firmly
fixed on how Uganda will navigate its growing financial commitments and
whether the voices warning of a debt crisis will finally be heeded.

 

Read the original article on Nile Post.

 

 

 

Kenya: Mbadi Urges Fiscal Prudence in Inaugural Budget Statement

Nairobi — Treasury Cabinet Secretary John Mbadi has issued a stark warning
over Kenya's rising public debt, urging for tighter financial discipline,
strategic planning, and more efficient revenue mobilization to prevent a
looming fiscal crisis.

 

Presenting the 2025/2026 national budget estimates before the National
Assembly, Mbadi acknowledged that the government is operating within a
shrinking fiscal space after years of heavy borrowing.

 

He noted that the country's debt-carrying capacity has significantly
diminished, leaving limited room for additional borrowing without
jeopardizing economic stability.

 

"We face constraints on account of public debt accumulation. Progressively,
our debt-carrying capacity has narrowed," Mbadi told lawmakers.

 

"This calls for prudence and discipline in how we manage and take on new
debt."

 

The CS emphasized the need for tough but necessary decisions, including
streamlining public spending, ensuring that borrowed funds are directed
towards productive investments, and curbing waste and inefficiencies in
government operations.

 

"These constraints are interlinked, and addressing them requires strategic
planning, fiscal discipline, and a commitment to long-term sustainability,"
he said.

 

While underscoring the importance of boosting domestic revenue to support
development and social programs, Mbadi cautioned against overburdening the
private sector.

 

Excessive taxation, he warned, could suppress investment and hinder the
growth of small businesses, key drivers of Kenya's economy.

 

He said the 2025/2026 budget has been carefully crafted to balance revenue
generation with economic growth, incorporating feedback from recent public
consultation forums (barazas) to reflect the priorities and concerns of
ordinary Kenyans.

 

Mbadi's remarks come amid growing public scrutiny of government spending and
increasing frustration over the high cost of living.

 

Civil society groups and economists have called for a more transparent
budgeting process that prioritizes essential services--such as healthcare,
education, and infrastructure--while eliminating wasteful or redundant
expenditure.

 

With public debt now exceeding Sh10 trillion, the 2025/2026 budget is
expected to lay the foundation for economic recovery following recent
financial shocks.

 

However, analysts warn that without meaningful structural reforms and a
steadfast commitment to fiscal responsibility, Kenya risks slipping deeper
into a debt trap that could compromise future growth.

 

Read the original article on Capital FM.

 

 

 

Global oil prices soar after Israel attacks Iran

Global oil prices have jumped after Israel said it had struck Iran, in a
dramatic escalation of tensions in the Middle East.

 

The price of the benchmark Brent Crude was up by more than 10% shortly after
the news emerged, reaching its highest level since January.

 

Traders are concerned that a conflict between Iran and Israel could disrupt
supplies coming from the energy-rich region.

 

The cost of crude oil affects everything from how much it costs to fill up
your car to the price of food at the supermarket.

 

 

As trading began in Europe, prices had eased a little, around 5% higher than
Thursday's closing price. London-traded Brent crude was $72.80 a barrel,
while oil traded on the US's Nymex was at $73.20.

 

Share prices also fell across Asia and Europe on Friday. The UK's FTSE 100
index opened down 0.6%.

 

So-called "safe haven" assets such as gold and the Swiss franc have also
made gains.

 

Some investors see these assets as more reliable investments in times of
uncertainty.

 

The gold price hit its highest level for nearly two months, rising 1.2% to
$3,423.30 an ounce.

 

Live: Israel targets Iran's nuclear sites and military comanders in major
attack

Following Israel's attack, Israeli Defence Forces (IDF) said Iran had
launched around 100 drones towards the country.

 

Analysts have told the BBC that energy traders will now be watching how much
the conflict worsens in the coming days.

 

"It's an explosive situation, albeit one that could be defused quickly as we
saw in April and October last year, when Israel and Iran struck each other
directly," Vandana Hari of Vanda Insights told the BBC.

 

"It could also spiral out into a bigger war that disrupts Mideast oil
supply," she added.

 

In an extreme scenario, Iran could disrupt supplies of millions of barrels
of oil a day if it targets infrastructure or shipping in the Strait of
Hormuz.

 

The strait is one of the world's most important shipping routes, with about
a fifth of the world's oil passing through it.

 

At any one time, there are several dozen tankers on their way to the Strait
of Hormuz, or leaving it, as major oil and gas producers in the Middle East
and their customers transport energy from the region.

 

Bounded to the north by Iran and to the south by Oman and the United Arab
Emirates (UAE), the Strait of Hormuz connects the Gulf with the Arabian Sea.

 

"What we see now is very initial risk-on reaction. But over the next day or
two, the market will need to factor in where this could escalate to," Saul
Kavonic, head of energy research at MST Financial said.-BBC

 

 

 

Some Jolly Rancher sweets unsafe to eat, FSA says

A number of products from a brand of US sweets are "unsafe to eat" and
contain ingredients that could damage DNA and increase the risk of cancer,
the Food Standards Agency has warned.

 

UK businesses and consumers are being urged to stop buying and selling the
Jolly Rancher products, owned by US firm Hershey.

 

The FSA says they contain chemical compounds - mineral oil aromatic
hydrocarbons (MOAH) and mineral oil saturated hydrocarbons (MOSH) - that are
"not compliant with UK laws".

 

A spokesperson for Hershey said the safety of Jolly Rancher was its "first
priority", though it could not always guarantee that products produced in
the US would meet the regulatory requirements of other countries.

 

 

The FSA said the Jolly Rancher products pose a safety risk if consumed
regularly over time but there is "no immediate cause for concern, as [the]
food safety risk is low".

 

In a food alert published on Wednesday evening, the FSA said: "MOAH can
cause damage to DNA and has the potential to increase the risk of cancer,
particularly if consumed in high quantities over a prolonged period of time.

 

"MOAH is a genotoxic carcinogen, therefore no exposure is without risk to
human health."

 

MOAH and MOSH are used in confectionery to prevent stickiness and create a
glossy appearance.

 

According to the agency, The Hershey Company has been working with the UK
government body to remove the affected Jolly Rancher products from the UK
market since 2024, but some businesses in Britain have continued to import
the products.

 

The affected products are: Jolly Rancher Hard Candy, Jolly Rancher 'Misfits'
Gummies, Jolly Rancher Hard Candy Fruity 2 in 1, and Jolly Ranchers Berry
Gummies.

 

The FSA is advising people who have any of the listed products to not eat
them and dispose of them at home. If consumers have any concerns, they are
being asked to notify the Trading Standards department or environmental
health department in the local authority they made the purchase from.

 

The agency said it was asking enforcement authorities to make "immediate
contact" with businesses that had been supplied with or received any of the
products, and take action to ensure they were withdrawn from the market.

 

The spokesperson for Hershey said: "The safety and quality of Jolly Rancher
is our first priority, and consumers can rest assured that our products are
safe to enjoy."

 

They urged all consumers to purchase Hershey products from "established
retailers" to "ensure product integrity and compliance".-BBC

 

 

 

 

China ready to drop all tariffs on African imports

China has said it is ready to drop the tariffs it charges on imports from
all 53 African countries with which it has diplomatic relations.

 

The move, announced at a China-Africa co-operation meeting, comes as the
continent is facing the possibility of increased tariffs on its products
entering the US.

 

China is Africa's largest trading partner – a position it has held for the
last 15 years – with Africa exporting goods to the Asian nation worth around
$170bn (£125bn) in 2023.

 

A joint ministerial statement criticised "certain countries' [efforts to]
disrupt the existing international economic and trade order" through the
unilateral imposition of tariffs.

 

 

It then called on the US to resolve trade disputes on the basis of
"equality, respect and mutual benefit".

 

The zero-tariff move, when implemented, will be an extension of the deal
made last year for China to drop tariffs on goods from 33 African nations
classified as "least developed".

 

The expanded list will include some of China's largest trading partners on
the continent, including South Africa and Nigeria. China has not said when
the decision will come into effect.

 

Eswatini is the only African state excluded from the s zero-tariff
announcement as it recognises Taiwan as an independent country, whereas
China regards it as a breakaway province.

 

China currently imports a lot of raw materials from Africa, notably from the
Democratic Republic of Congo and Guinea.

 

In April, President Donald Trump caused consternation among US trading
partners by announcing high tariffs on its imports form many countries,
including a 50% rate for Lesotho, 30% for South Africa and 14% for Nigeria.

 

How jeans and diamonds pushed Lesotho to the top of Trump's tariffs list

The implementation has been paused until next month, though the temporary
halt could be extended further for countries that are negotiating "in good
faith", according to US Treasury Secretary Scott Bessent.

 

In 2024, the US imported $39.5bn-worth of goods from Africa. Some of that
was brought in under the zero-tariff deal known as the Africa Growth and
Opportunity Act (Agoa) which now looks under threat if the Trump
administration goes ahead with the imposition of fresh charges.-BBC

 

 

 

 

 

Reeves refuses to rule out tax rises after economy shrinks

Chancellor Rachel Reeves has refused to rule out future tax rises after the
UK economy suffered its worst contraction for a year and a half in April.

 

The economy unexpectedly shrank by 0.3% after taxes increased for
businesses, household bills jumped and exports to the US plunged.

 

The figures come a day after Reeves set out spending plans aimed at boosting
growth, with funding increases for the NHS and defence, but budgets squeezed
elsewhere.

 

Economists warned that a failure to increase UK growth would "almost
certainly" lead to more tax rises later this year for the government to
balance its spending commitments.

 

 

Reeves acknowledged the latest economic figures were "clearly disappointing"
and refused to rule out tax rises when she next lays out her plans for the
economy in the autumn Budget.

 

"No chancellor is able to write another four years of Budgets within a first
year of government, you know how much uncertainty there is in the world at
the moment," she told the BBC.

 

Monthly figures on the economy are volatile, and the more stable three-month
figure to April showed the economy grew by 0.7%.

 

"With spending plans set... any move in the wrong direction will almost
certainly spark more tax rises," said Paul Johnson, director of the
Institute for Fiscal Studies (IFS), an influential think tank.

 

Ruth Curtice, chief executive of the Resolution Foundation, agreed.

 

"A weaker economic outlook and the unfunded changes to winter fuel payments
mean the chancellor will likely need to look again at tax rises in the
Autumn," she said.

 

In Wednesday's Spending Review, Reeves prioritised ploughing billions into
long-term projects, in a bid to boost economic growth and improve living
standards.

 

Council tax expected to rise by 5% a year

Seven ways the Spending Review will affect you

Reeves and Starmer can't escape sluggish economy

 

But many of the chancellor's plans such as new railway lines and the
development of nuclear power plant Sizewell C will take years, with current
day-to-day spending budgets being squeezed.

 

Council tax is also expected to rise to pay for local services.

 

Opposition parties said the chancellor's previous decision to raise
employers' National Insurance contributions, which took effect in April, was
dragging on growth.

 

A Bar chart showing the three-month on three-month growth in UK real gross
domestic product (GDP) from April 2023 to 2025. The following figures are
for the three-month period ending in the month stated: April 2023 0.2%; July
2023 -0.1%; October 2023 -0.2%; January 2024 0.2%; April 2024 0.9%; July
2024 0.2%; October 2024 0%; January 2025 0.3%; April 2025 0.7%.

 

The government is also paying more to borrow money.

 

Lindsay James, investment strategist at British multinational wealth
management company Quilter, said this was due to investors being cynical
over the government's spending plans so demanding a higher return.

 

"With the economy now weakening, we can expect to see concerns around
further tax rises increase as we near the autumn Budget – which is likely to
weigh on growth even more."

 

Growth rising steadily is widely welcomed, as it usually means people are
spending more, extra jobs are created, more tax is paid, and workers get
better pay rises.

 

But growth in the UK has been sluggish for many years.

 

The Office for National Statistics said a poor month for the services
sector, which includes businesses ranging from shops and restaurants to
hairdressers and financial firms, was behind the contraction in April.

 

Legal firms and property companies also "fared badly", it said, following a
strong March which saw many homebuyers rushing to complete purchases to
avoid stamp duty increases that came in in April.

 

A smiling Lewis Eager, wearing a blue T-shirt, standing on a bridge

 

Lewis Eager, 26, works part-time for a supermarket in Southend-on-Sea,
earning about £10,000 a year.

 

He welcomed the investment in apprenticeships announced in the Spending
Review and hopes employers will respond by lowering barriers to applicants.

 

Lewis, who lives with his parents, estimated he had applied for more than
4,000 jobs but said he cannot find full-time work.

 

He said he sees a "looming crisis" among young people unable to get on the
jobs ladder.

 

People on £10,000 to £71,000 react to the UK's spending plans

Tariff impact

Car manufacturing was also weak in April after the introduction of 25%
tariffs on UK vehicles exported to the US. Cars are the UK's biggest US
export, with one in eight cars built in Britain shipped across the Atlantic.

 

Trade data showed the value of UK exports decreased by some £2.7bn in April,
with goods to America alone falling by £2bn, the largest monthly fall on
record in exports across the Atlantic.

 

Since April, the government has agreed a deal on tariffs with the US and has
also made trade agreements with the European Union and India.

 

Despite the tariff pact with the US, a 10% import tax still applies to most
UK goods entering America, with higher taxes for steel and cars until the
deal comes into force.

 

'More taxes coming'

Shadow chancellor Mel Stride blamed Reeves' economic choices for the weak
growth.

 

"The chancellor should have taken corrective action to fix the problems she
has caused. But instead her Spending Review has all but confirmed what many
feared: more taxes are coming."

 

Liberal Democrat Treasury spokesperson Daisy Cooper said the figures were a
"wake-up call for the government which has so far refused to listen to the
small businesses struggling to cope with the jobs tax".

 

In April, employers' National Insurance contributions rose to 15% from
13.8%, with the threshold for payments reduced from £9,100 per year to
£5,000.

 

Firms also saw minimum wages and business rates go up.

 

Ollie Vaulkhard, director of Vaulkhard Group which owns 17 hospitality
venues across Newcastle upon Tyne, said the business was under pressure from
the cost increases.

 

"Each one of those is manageable - you put them all into a pot, ultimately
we've got to charge our customers more," he said.-bbc

 

 

 

 

These touts made millions - and claimed staff at big ticketing firms helped

When a judge dismissed an appeal by prolific ticket tout Peter Hunter and
his husband and accomplice David Smith against their landmark conviction for
fraud, he sounded an alarm.

 

The evidence, he said in a 2021 judgement, suggested the possibility of
"connivance and collusion" between ticketing companies and touts, who buy up
tickets for live events in bulk and sell them to the public at inflated
prices.

 

A different judge sentencing another group of ticket touts for fraud,
including the self-styled "Ticket Queen" Maria Chenery-Woods, last year
raised similar concerns and suggested the possibility some ticketing sites
had been "complicit" in the touts making "substantial profits" by reselling
tickets.

 

Hunter fraudulently traded tickets between 2010 and 2017, Chenery-Woods
between 2012 and 2017. They both used all of the four big UK ticket resale
sites: StubHub, Viagogo and the Ticketmaster-owned GetMeIn! and Seatwave.

 

For years, fans had battled touts to get the tickets they wanted and to
avoid heavy mark-ups on resale sites. Meanwhile, Ticketmaster had publicly
insisted that it was trying to combat ticket touting, which can be illegal
in some circumstances.

 

The company - one of the UK's biggest ticket sellers - was in a unique
position until 2018, as a ticketing website which also owned two major
resale platforms.

 

Although Ticketmaster was not involved or represented in either of these
court cases, the judges' comments about the industry suggested that the full
story may not yet have been told. We wanted to investigate what was going on
before the company shut its resale sites in 2018.

 

We spoke to former and current ticketing staff, who enjoyed working for
Ticketmaster but in some cases were concerned that fans might have been
short-changed. We also spoke to promoters, venue managers and consultants,
and combed through court transcripts.

 

What we heard was that ticket touts had inside help with their business
buying and selling tickets from the ticketing platforms they used:

 

 

Former staff at resale sites which Ticketmaster used to own told us they
worked closely with touts, and court documents at Chenery-Woods' trial
revealed two staff at those companies bought tickets for touts

Touts trading huge volumes of tickets were offered financial "incentives" by
resale sites, Hunter alleged during his trial

Email evidence in court suggested one tout was offered a meeting with a top
Ticketmaster lawyer to "brainstorm" ways the company could help them

Other former Ticketmaster employees told us they were asked to develop
software to help touts sell tickets in bulk on resale sites

Ticketmaster said in a statement that the allegations refer to "companies
that were dissolved in 2018 and alleged events from over a decade ago, which
have no relevance to today's ticketing landscape".

 

"Revisiting outdated claims about long-defunct businesses only serves to
confuse and mislead the public," the company said.

 

It added that Ticketmaster has "no involvement in the uncapped resale
market" now and said: "We have always been committed to fair and secure
ticketing."

 

 

When reselling tickets becomes a crime

Hunter and Chenery-Woods were not the kind of touts who stand outside a
venue discreetly asking passers-by to buy or sell tickets. These two turned
their spare rooms into registered, tax-paying companies and made millions
from trading tickets online, the courts found.

 

Mike Andrews, who leads National Trading Standards' e-crimes unit and was
involved in the investigation into Hunter and the Ticket Queen, told the BBC
how he joined the early morning raid on the anonymous townhouse in a
tree-lined north London street where Hunter ran his operation.

 

Upstairs was a room filled with PCs, whirring away, buying and selling
tickets. "It was obviously an operation that ran pretty much 24/7," Mr
Andrews said. They also found rolls of tickets in seat-number order for
events such as Lady Gaga concerts and the Harry Potter play, and multiple
credit cards.

 

Reselling tickets for profit for live performances in the UK is not illegal.
But Hunter and Chenery-Woods were convicted of using fraudulent practices to
get around restrictions - such as limits on the number of tickets an
individual can buy.

 

They pretended to be lots of different people, using lots of different
credit cards, when they bought the tickets from companies such as
Ticketmaster, See Tickets or AXS - which are known as primary ticketing
websites.

 

National Trading Standards A photo provided by National Trading Standards
showing the Ticket Queen's office, with an L-shape desk with two computer
monitors and a laptop, piles of tickets neatly arranged on the desk, along
with office stationery and a calculator.National Trading Standards

The touts made millions from their spare rooms, buying and selling tickets
in bulk

 

The Ticket Queen used the details of family members, including a dead
relative, to buy tickets, as well as using the names and addresses of dozens
of people in and around the town of Diss, Norfolk where her business
operated.

 

To sell the tickets, the touts used resale sites, which are known as the
secondary ticketing websites.

 

The 'VIP' touts who made millions for resale sites

Touts were "working hand-in-hand with resale platforms", Mr Andrews told us.

 

A former staffer at Ticketmaster-owned Seatwave, who asked to remain
anonymous, told us touts were "VIPs" on the resale site. "They were doing a
lot of business for us. We're talking about hundreds of thousands of pounds,
if not millions."

 

Some staff at Seatwave had a cosy relationship with touts, according to the
former employee, who said he would take Paul Douglas - the Ticket Queen's
former brother-in-law, also convicted of fraud - out for a pint when he
visited London.

 

Resale sites make their money from fees paid by buyers and commission from
the sellers - court papers show these could be as much as 25% of the resale
price. Prosecutors calculated that Hunter's company received sales revenue
of £26.4m over about seven-and-a-half years. Based on their typical
commission, the UK's four main resale sites could have received £8.8m
between them from Hunter's sales alone.

 

Touts who consistently delivered large volumes of tickets to customers were
offered discounts by resale platforms, industry sources told us. During the
case where he was convicted of fraud, Peter Hunter alleged that GetMeIn! -
another Ticketmaster-owned company - offered him "incentives" for selling in
bulk, such as £4,000 cashback if he hit sales of £550,000 over a three-month
period.

 

Multiple sources told us that some touts also sourced tickets directly
through relationships with promoters and venues, but sales at Hunter's level
were far beyond what any regular customer could acquire legitimately from
primary ticketing websites.

 

Even though the primary ticketing companies were victims of the fraud - as
their purchase limits were breached by the use of false identities - Mr
Andrews said none of the primary ticketing companies "directly supported"
the prosecutions.

 

Another former employee who worked in Ticketmaster's resale technical team,
who also wanted to remain anonymous, told the BBC his team would work
closely with touts, developing software that helped them sell tickets in the
secondary market.

 

"You have to build a relationship with them, they're like a customer
basically," he said. The team would show touts products and ask for
feedback, including if they made selling tickets easier for them and often
showing them multiple versions, he said.

 

 

Tip-offs, multiple accounts and fake names

We have been told that resale sites would liaise with big sellers, like
Hunter.

 

In court, Hunter alleged a senior boss at GetMeIn! would help him by passing
on information from Ticketmaster's legal department such as "government
reports maybe from select committees" and ringing him weekly to tip him off
about forthcoming sales before the public learned about them.

 

This senior employee had described in emails how he added a "new privilege"
to the accounts of "top brokers" - the resale sites' term for touts - which
would allow them to automatically "drip feed" large inventories of tickets
on to the site.

 

Other emails were read in court as evidence from Peter Hunter's defence
team, suggesting that the senior GetMeIn! boss offered to help stop Hunter's
tickets being cancelled by Ticketmaster when he had fallen foul of a
purchase limit.

 

The court heard that the senior employee had written: "I think Ticketmaster
are looking at cancelling primary bookings that have exceeded the ticket
limit. However, if I flag them as GMI [GetMeIn!], I should be able to save
them."

 

A graphic recreating an email to Peter Hunter from the senior GetMeIn! boss,
whose name is redacted. The text reads: "Morning Peter, please see below. I
think TM are looking at cancelling primary bookings that have exceeded the
ticket limit. However, if I flag them as GMI, I should be able to save
them."

 

Hunter's defence alleged the correspondence showed the GetMeIn! boss knew
the tout had multiple Ticketmaster accounts which he used to buy more
tickets than the site's restrictions allowed.

 

Using multiple names and identities to buy more tickets than the limit
allowed was one of the reasons Hunter was jailed for fraud.

 

In the trial of the Ticket Queen, the prosecution said this same GetMeIn!
boss and a colleague had both been "complicit or at least indifferent" in
her use of a false name on the resale site to conceal the fact that the
account belonged to a tout.

 

The court heard that Maria Chenery-Woods had emailed the two men asking to
change her account name from "Ticket Queen" to "Elsie Marshall" in February
2017.

 

In both court cases, the prosecution questioned why it was necessary for the
accused to pretend to be other people to buy tickets if, as the defendants
alleged, Ticketmaster knew what they were doing.

 

How separate was Ticketmaster from its former resale sites?

The links with touts such as Hunter went right to the highest levels of
Ticketmaster's group of companies, according to emails read out in court as
evidence. They record the same senior GetMeIn! boss proposing a meeting
between Hunter and Selina Emeny, the company's top legal representative and
a director of Live Nation Ltd, an arm of Ticketmaster's parent company.

 

The proposed meeting in 2015 was intended to "address any worries" Hunter
might have about a change in the law around ticket resale and "brainstorm
what more can be done by our legal team to help UK brokers".

 

Ms Emeny is currently listed as an active director of 50 companies on
Companies House, all related to Live Nation and Ticketmaster.

 

Ticketmaster maintained that its resale platforms, GetMeIn! and Seatwave,
operated as "separate entities", in the words of then chairman Chris Edmonds
at a 2016 House of Commons select committee hearing.

 

But both Mr Edmonds and Ms Emeny were directors of Ticketmaster UK Ltd and
the holding company which owned Seatwave. Ms Emeny was also a director and
secretary of GetMeIn! and at one time, all three companies operated out of
the same open-plan office in central London.

 

David Brown, who worked in Ticketmaster's technology teams between 2011 and
2017, also told the BBC the companies had close enough links that they could
have found out who was buying tickets in bulk and putting them up for resale
on Ticketmaster's other platforms.

 

He said Ticketmaster and its resale sites used "a lot of the same
infrastructure" and it would have been easy to "link everything together".
"You're not building completely separate databases," he said.

 

He said it meant Ticketmaster could have connected the accounts and credit
cards originally purchasing tickets with those selling in bulk on resale
sales, and stop them reselling.

 

 

National Trading Standards A ring-binder found at the Ticket Queen's office,
which holds multiple debit credit cards in plastic wallets, each of which is
carefully labelled with a number and, occasionally, a description such as
"Maria's Co-Op Electron".National Trading Standards

The touts used multiple credit cards with different identities to buy
tickets in bulk

"We should be able to pull enough data to say there's something not right
about this, this isn't just members of the public selling tickets. If they
wanted to really tackle the problem, they had all the tools in one place to
do that," he said.

 

Christoph Homann, who was the then resale managing director of
Ticketmaster/GetMeIn!, said in 2014 to a group of MPs that "they are able to
cross-reference" some tickets on GetMeIn! "against Ticketmaster's records"
to report suspected frauds.

 

The employee in Ticketmaster's resale technology team who developed software
to help touts also told the BBC that there was a senior executive who had
"oversight" over elements of the primary selling and resale side of the
operation. That person could easily have accessed an internal list of
top-selling brokers, the employee said.

 

He said the executive "would definitely ask that question, ask for that
information. I can't believe that wouldn't be seen by him".

 

Mr Edmonds, Ticketmaster's chairman in 2016, had told Parliament that the
company did not have "visibility" over how the sellers on its resale
platforms acquired those tickets - but these accounts suggest Ticketmaster
could have found out if they were buying them on their own website.

 

We also asked the other two large resale ticketing platforms, Viagogo and
Stubhub about their relationships with large sellers, including account
managers and inventory management software.

 

Viagogo told us such facilities are "standard industry practice", but it
"takes its responsibilities under the law very seriously". It said it had a
business relationship with Hunter, Smith and two of the Ticket Queen's
accomplices "before they were found to be guilty of any fraudulent
activity".

 

"Bad actors go against what we stand for and Viagogo is in full support of
the legal action taken against them," the company said.

 

StubHub International told the BBC, it is "fully compliant with UK
regulations and provides industry-leading consumer protections." It added:
"As a marketplace we provide a safe, trusted and transparent platform for
the buying and selling of tickets, and enforce strict measures to protect
consumers against fraud."

 

 

Resale site staff were working for the touts

Some employees of companies then owned by Ticketmaster were occasionally
paid by touts to buy tickets on their behalf, the prosecution told the court
in the Ticket Queen trial.

 

The prosecution added the Ticket Queen's accomplices paid two GetMeIn!
employees out of a separate bank account from the usual company one.
According to a Skype message read in court, one accomplice said: "It will be
best as it won't show a GMI employee being paid by TQ Tickets."

 

One of her buyers was an employee at GetMeIn! who received £8,500 in less
than a year from this sideline, the prosecution said.

 

A graphic recreating Skype messages between two of the Ticket Queen's
accomplices, Paul Douglas and Lynda Chenery. Douglas says: "Can you make a
payment to [REDACTED] out of [REDACTED] account please?" In a separate
message, he says: "She got some ticks for us from AXS yesterday. Maria says
it will be best as it won't show a GMI employee being paid by TQ Tickets."

 

Our research found this employee's day job was to source replacement tickets
when sellers failed to deliver, as they sometimes did.

 

The resale platforms would sometimes buy tickets from touts to fulfil orders
in these circumstances, a SeatWave employee told the BBC. The touts would
behave "like the mafia", and raise their prices when they knew the resale
platform itself was in the market for tickets, the employee said.

 

Evidence presented in court suggested help for the touts to buy tickets in
bulk also came from another well-known company: American Express, which
offers its cardholders privileged access to tickets for events through
pre-sales. Promoters say sponsors like American Express are important in
making events such as Formula One and British Summer Time Hyde Park
possible.

 

Peter Hunter told the court he had received a LinkedIn message out of the
blue from a representative at the credit card company. The rep was offering
"as many additional cards as you wanted" in the form of Platinum business
credit cards with an "unlimited spend", according to Hunter.

 

A graphic recreating a LinkedIn message to Peter Hunter from an American
Express representative whose name is redacted, which says: "I'm currently
working with one of your competitors by way of providing an additional line
of credit to purchase event tickets. I know some sites, Ticketmaster for
example, restrict you to six tickets per day/per card. There are ways around
this with American Express. My client is also rewarded for their spend,
which they use to either buy extra tickets, or air miles for free flights
around the world. I would like to speak to you directly to go into further
detail this week if you're free."

The Amex representative wrote that he was aware of Ticketmaster's purchasing
limit of six tickets per day on each credit card and told Hunter "there are
ways around this with American Express".

 

The rep also suggested in an email to Peter Hunter that his vice-president
at the company was "happy to waive card fees" and that the VP's "initial
offer was to waive 15 card fees for £250k spend in the first two months".

 

American Express told the BBC: "When we identify instances of misconduct, we
investigate the issues raised and take appropriate steps to address them,
including disciplinary action with employees as necessary."

 

Has anything changed now?

Ticketmaster announced the closure of its resale sites, GetMeIn! and
Seatwave in 2018, months after Peter Hunter was charged. Now it allows
resales through its main site instead and says prices are capped at the
ticket's face value.

 

Instead, Ticketmaster is now trying to "capture the value" of the resale
market through different tiers of pricing for tickets labelled as "in
demand" or "Platinum" tickets, as UK managing director Andrew Parsons told
the House of Commons earlier this year.

 

"We think it is absolutely right that artists should be able to price a
small amount of the tickets at a higher price to be able to keep overall
prices down and capture some of that value away from the secondary market,"
he said.

 

Reuters Beyonce performing on her Cowboy Carter tour at Tottenham Hotspur
Stadium in north London. She is wearing a glittering silver bodysuit, long
white gloves and white tasselled leather chaps, as she struts with the
microphone in her hand along a walkway through the crowd. Members of the
crowd can be seen looking up at her from the stadium floor and watching
behind her from the stands.Reuters

Hundreds of tickets for Beyonce's UK tour were on resale sites within
minutes

But ticket touts are still very much active. Minutes after Beyonce's first
pre-sale started in February for the UK leg of her Cowboy Carter tour,
hundreds of the tickets appeared on resale sites such as Stubhub.

 

Stubhub told us that "speculative listings" are not allowed on its platform
and that it "[does] not support the use of bots which operate during sales
on the primary market".

 

"Although the primary platforms do say that they have measures in place to
try and prevent touts buying large numbers of tickets, it's quite evident
that that practice took place then and still takes place now," said Mr
Andrews from National Trading Standards.

 

But he said "the current situation is that we're not funded or we haven't
got sufficient resources to continue to pursue further touts".-BBC

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2025

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


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GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
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been compiled from s believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and d from third parties.

 


 

 


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