Major International Business Headlines Brief ::: 16 June 2025

[Bulls n Bears]

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Major International Business Headlines Brief :::  16 June  2025 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: Midterm - Confusion at Nigerian Senate as Akpabio, Bamidele
Contradict Themselves on Number of Bills Passed

ü  Rwanda: What Is Driving the Hike in Food Prices in Rwanda?

ü  Africa: Geopolitical Shocks Drag Markets As Oil Surges and Volatility
Returns

ü  Nigeria: CBN Suspends Dividend, Bonus Payments for Banks Under
Forbearance

ü  Nigeria: Dangote Refinery to Begin Nationwide Distribution of PMs, Diesel

ü  Rwanda: 10 Ways Rwanda Is Spending On Climate Adaptation in New Budget

ü  Africa: How Technology Is Helping African Countries Fight Malaria From
the Skies

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

ü  Africa: China to Remove Tariffs On African Imports to Boost Trade

ü  South Africa: Seminar to Explore Leveraging of AfCFTA for Inclusive
Development

ü  How the Israel-Iran conflict could affect energy prices

ü  The reality behind Trump's incredible investment claims

ü  Can shoes be made in the US without cheap labour?

 


 <mailto:info at bulls.co.zw> 

 


Nigeria: Midterm - Confusion at Nigerian Senate as Akpabio, Bamidele
Contradict Themselves on Number of Bills Passed

While Mr Akpabio said during the joint session of the National Assembly on
Thursday to mark the 2025 Democracy Day that 96 out of 844 bills introduced
in the Senate were passed in two years, Mr Bamidele said it passed 108 out
of 983 bills during the period.

 

The number of bills introduced and passed by Nigerian senators in the past
two years appears to be causing confusion in the upper chamber of the
National Assembly. 

 

The confusion followed two conflicting figures provided by the Senate
President,  Godswill Akpabio, and the Senate Leader, Opeyemi Bamidele, as
part of the midterm achievements of the chamber.

 

 

The 10th Senate was inaugurated on 13 June 2023. It comprises 109 members,
with three elected from each of the 36 states and one from the Federal
Capital Territory (FCT).

 

While Mr Akpabio announced during the joint session of the National Assembly
on Thursday to mark the 2025 Democracy Day that 96 out of 844 bills
introduced in the Senate were passed in two years, Mr Bamidele said it
passed 108 out of 983 bills.

 

Mr Bamidele announced the figure in a statement on Sunday to commemorate the
Senate's mid-term performance.

 

"No fewer than 983 bills – both executive and private members- were
introduced between June 13, 2023 and June 12, 2025, 108 of which were fully
passed into laws within the timeframe," the senate leader said.

 

However, the figures contradict those earlier presented by the senate
president during the joint session of the National Assembly on Thursday to
mark the 2025 Democracy Day.

 

"This commitment is reflected in its extraordinary output: a total of 844
bills have been introduced within its first two years—an unprecedented
figure," Mr Akpabio said.

 

Constitutional mandate

 

Section 4 of the Nigerian Constitution empowers the two chambers of the
National Assembly, the Senate and the House of Representatives, to make laws
for the country's peace, order, and good governance.

 

The core responsibilities of lawmakers include legislating through bills and
motions, overseeing government agencies, screening and confirming
presidential appointments, ratifying treaties, and addressing petitions from
citizens and organisations.

 

However, the Senate leadership appears inconsistent and unclear about the
data reflecting its official activities over the past two years.

 

Messrs Akpabio and Bamidele are senior lawyers before they ventured into
politics. Mr Bamidele is a life bencher of the Nigerian Bar Association
(NBA).

 

The discrepancy highlights the inconsistency, inaccuracy, and lack of
transparency in Nigeria's legislative record-keeping.

 

Breakdown of figures

 

Unlike Mr Akpabio, who did not provide detailed data, Mr Bamidele offered a
breakdown of the Senate's activities regarding bill deliberation within the
two legislative years.

 

"In the 2024/2025 legislative year, for instance, 506 bills were initiated
in the Senate alone compared to 477 in 2023/2024. This represents a 6.07 per
cent increase. Also, in the 2024/2025 legislative year, the upper chamber
fully passed 83 bills into law compared to 25 in the previous legislative
year.

 

ALSO READ: Senate passed 96 bills, adopted 18 petitions in two years –
Akpabio

 

"This represents truly a great feat that glaringly accounts for a 232 per
cent increase in the number of fully enacted legislations between 2023 and
2025. Against 13 in the 2023/2024 legislative year, the Senate dwelt with 26
executive bills in 2024/2025, invariably indicating a 100 per cent of
upsurge. This record shows that 464 private member bills were initiated in
2023/2024 compared to 480 in 2024/2025.

 

"By 2024/2025 legislative year, 89 bills are awaiting first reading in the
upper chamber as against 135 in 2024/2025; 45 awaiting second reading in
2023/2024 contrared to 230 in 2024/2025; 215 appointments were confirmed in
2023/2024 compared 116 in 2024/2025 and 50 different petitions successfully
resolved in 2023/2024 with 80 duly addressed in 2024/2025," Mr Bamidele
explained.

 

The bills passed

 

Some of the bills passed, according to Mr Bamidele are the National Social
Investment Programmes Act, 2023; Student Loan (Access to Higher Education)
Act, 2024; National Minimum Wage Amendment Act, 2024; Investments and
Securities Act, 2025; Regional Development Commission (Establishment) Acts,
2025 and the Tax Reform Bills, 2025, among others

 

The senate leader particularly emphasised the significance of the Student
Loan Act, which he claimed has improved access to tertiary education and
helped reduce dropout rates nationwide.

 

Similarly, he said the passage of the Tax Reform Bills signified the
Senate's commitment to addressing Nigeria's fiscal challenges and
restructuring the tax system to promote ease of compliance, increase
investor confidence, and stimulate national economic growth.

 

Legislative outlook

 

Looking ahead, Mr Bamidele assured Nigerians that the Senate would focus on
electoral reforms, judicial reforms and review of the Nigerian Constitution.

 

"When you know that if you contest for an election, your vote will
definitely count. This assurance will make democracy more interesting for
our people, enhance voters' participation in the process and make our
electoral process more credible and transparent.

 

"We are equally looking forward to greater judicial reforms in the next two
years to ensure justice is done transparently and tenaciously. We already
have various bills that seek the reforms of the judiciary. While some are
seeking a review of how judges and judicial officers are appointed, others
focus on their length of service and welfare."

 

He also reaffirmed the Senate's readiness to pursue judicial reforms to
ensure more transparent and efficient justice delivery.

 

Read the original article on Premium Times.

 

 

 

Rwanda: What Is Driving the Hike in Food Prices in Rwanda?

In bustling markets in the City of Kigali, shoppers and sellers are feeling
the pinch. Tomatoes that once sold for Rwf 200 now go for Rwf 500 at bare
minimum while a small bucket that used to cost Rwf1,500 is now Rwf2,500.

 

Similarly, the price of Irish potatoes has doubled in price, same as bananas
and other food items like beans and groundnuts. On the other hand, traders
are reeling from declining customer numbers.

 

For some Rwandan households, the rising cost of food has turned daily meals
into careful calculations due to the hike in food prices, cutting some items
off the menu.

 

"Many of the food items have increased in price because we also buy from
wholesalers at a high cost," says Therese Nikuzwe, a food vendor in
Kimironko, Kwa Mushimire, blaming the increase in farmgate prices for the
hike in wholesale and retail prices.

 

According to the April 2025 Consumer Price Index report from the National
Institute of Statistics of Rwanda (NISR), general inflation increased by 6.6
percent year-on-year.

 

 

In urban areas, the rise was 6.3 percent, largely driven by food and
non-alcoholic beverages, which surged by 7.9 per cent--a sharp monthly jump
of 2.7 per cent from March to April.

 

ALSO READ: Hotel, restaurants drove consumer price increase in April

 

Fresh produce such as vegetables rose by nearly 8.5 per cent, meat by 33.8
per cent, and restaurant meals by nearly 15 per cent. Behind the percentages
are real-life stories: people revising their food baskets, small-scale
vendors losing customers, and farmers scrambling for consistent yields.

 

What exactly is fuelling this surge in food prices across Rwanda?

 

Climate shocks and seasonal shortages

 

A key contributor is climate-related disruption. Unpredictable rainfall and
a shorter rainy season have affected staple crops including beans, maize,
and vegetables. In some regions, farmers lost entire harvests to flooding or
planted too late to yield viable produce.

 

Eugene Nsanzimana, a farmer based in Musanze district, Northern Province,
explained that many farmers experienced a poor harvest due to heavy rains on
one part, which damaged crops last season, while in other parts of the
country like the Eastern Province and the Southern Province, farmers faced a
challenge of insufficient rain.

 

These shocks in agricultural production have led to supply shortages,
creating a mismatch with rising demand and pushing food prices up.

 

In fact, as Minister of Trade and Industry Prudence Sebahizi confirmed,
price hikes are mostly influenced by shortages during the transition period
between growing and harvesting crops in the agricultural season.

 

"There is a temporary shortage in the market as the country and the region
awaits the harvesting of Season B 2025 crops."

 

This seasonal lag is directly affecting availability and putting upward
pressure on prices, especially for staple food items.

 

Transport and fuel costs

 

Another major factor contributing to the hike in prices is transportation.
Rwanda's landlocked geography makes its food supply chain highly sensitive
to fuel prices, which have been steadily increasing since late 2024.

 

Vendors and farmers are forced to pass on these additional costs to
consumers. Pacifique Mugisha, a food vendor who delivers directly to
clients, noted that rising fuel costs have made transportation more
expensive, especially for goods brought in from Nyabugogo, leading him to
raise prices just to stay afloat.

 

Imported inflation and exchange rate pressures

 

The situation is partly compounded by Rwanda's reliance on imported goods
such as rice, wheat, and cooking oil. When international prices spike or the
Rwandan franc loses value against the dollar, these items quickly become
more expensive.

 

Minister Sebahizi pointed out the franc depreciating against the dollar has
partly contributed to the problem.

 

"The exchange rate has also contributed to increased costs, especially for
imported food items," he said.

 

ALSO READ: Urban food prices rise by 40 per cent

 

As a result, even households that traditionally relied on staples like
cooking oil or packaged goods are now faced with significantly higher prices
due to global inflation being felt locally.

 

Urbanisation and changing consumption patterns

 

Urbanisation and shifting dietary preferences are also contributing factors.
As more Rwandans move to cities, demand is growing for diverse food options
like fruits, dairy products, and processed snacks.

 

These items require better logistics and, in many cases, imported inputs or
refrigerated transport, which further escalates costs. However, supply has
not kept pace with demand, leading to persistent price pressures on
perishable goods.

 

Vendor perspectives on current prices in Kigali markets

 

Mugisha provided a snapshot of prices in and around Kimironko Market and
food stores near Kwa Mushimire. A kilogram of matooke now costs Rwf 550,
Irish potatoes (particularly the Kinigi variety) cost Rwf 780, while greens
range between Rwf 500 and Rwf 600.

 

A kilogram of onions goes for Rwf 800, tomatoes for Rwf 1,400, and ginger
sells at an eye-watering Rwf 3,000. These prices represent a general
increase of between 30 and 50 percent across most key perishables in just
six months, though exact figures vary slightly depending on location and
season.

 

In Kabeza Market, vendor Hamida Ingabire described a similarly steep rise in
prices. She sells local chicken for Rwf 7,000, while specialty breeds can go
for Rwf 8,000 or even Rwf 9,000. Fish prices vary according to weight, but
smaller types fetch Rwf 6,000 while some go as high as Rwf 12,000.

 

Beans and dried legumes are now being sold for Rwf 1,500 to Rwf 2,500 per
kilogram, and vegetables for Rwf 600. She added that even common cooking
ingredients like bananas, ginger, and cassava have seen significant price
hikes, with cooking oil now up by 50 to 200 percent in some areas.

 

The role of restaurants and hotels

 

Beyond farms and trucks, the food inflation trend is closely tied to the
hospitality sector. Data from April shows that restaurants and hotels are
playing an outsized role in pushing up overall prices, with meal and
beverage prices increasing by over 14 percent compared to the same period in
2024.

 

The sector's growing demand has intensified competition for staple food like
meat, vegetables, and oil--leading to further price increases across the
board.

 

Supply chain inefficiencies

 

Much of the price hike stems not just from immediate pressures, but from
structural issues in the country's food system. Post-harvest losses remain
high--by some estimates, up to 40 percent of food produced is lost before it
even reaches consumers.

 

This is due to a lack of storage facilities, inadequate packaging, and long
travel distances, especially for perishable foods. Without reliable cold
chains or coordinated distribution systems, perishable items spoil quickly,
especially in hot or humid conditions.

 

ALSO READ: Food, hospitality increase May inflation

 

A case in point are vegetables which are predominantly grown in the Western
and Northern Province districts, where farmers recently complained about
losing their tomato harvest due to transportation challenges.

 

Another persistent issue is the role of intermediaries. Many farmers still
depend on middlemen to transport and sell their produce, who often take
sizable margins while leaving the end consumer to bear the final cost.

 

While farmer cooperatives and direct-to-market models are expanding, they
remain limited in reach and lack the infrastructure to fully replace
traditional trade routes.

 

What to look out for in the coming months

 

The socio-economic impact of rising food prices affects low- and
middle-income families most. Many households are revising their
diets--cutting out meat, reducing portions, or relying on cheaper options.

 

"We decided to cut out meat. We now buy it once a week because of the high
cost," says Marie Claire Mutesi, who often shops from Kimironko market. She
adds that the cheaper option now is to buy 'bones', locally known as
'Imifupa', and cook them with 'Isombe', rather than buy beef or goat meat.

 

Recognizing the complexity of the issue, Sebahizi said some of the factors
behind the hike in food prices go beyond Rwanda as a country.

 

"Rising food prices are a complex issue influenced by both short-term and
long-term factors, including global events, supply chain disruptions,
climate change, and increased demand," he said.

 

"It is important to note that the Ministry does not regulate food prices.
Pricing is determined by the market through the dynamics of supply and
demand," he added.

 

Government response

 

The Rwandan government acknowledges the strain and is taking steps to
stabilise food prices. These include investments in irrigation to reduce
dependence on rain-fed agriculture, subsidies for essential farm inputs like
fertilizer and improved seeds, and expansion of the Strategic Grain Reserve
to buffer against future shortages.

 

In addition, Sebahizi noted regular monitoring and assessment is done to
ensure that prices are not flouted by traders and also to make sure that
shortages are dealt with as they come.

 

ALSO READ: How Rwanda can boost agricultural productivity

 

"The Ministry is closely monitoring the situation and working in
collaboration with the private sector to ensure that essential food products
remain available in the market."

 

Efforts are also underway to upgrade rural infrastructure and reduce
transport costs, especially for cooperatives and smallholder farmers,
according to the budget paper recently presented in Parliament.

 

But for vendors like Mugisha and Ingabire, before these changes are
implemented, food prices are likely to continue going up, as the dry season
approaches.

 

Mugisha said that he no longer gets as many orders as he used to, with some
of his regular customers reducing the frequency of ordering food items.

 

His frustration is shared by Ingabire, who also says that her regular
clients are no longer coming to buy basic goods, and sales have fallen
despite increasing inventory costs. She however remains optimistic that
things will improve before the end of the year.

 

Tackling challenges to ensure food security

 

For now, the outlook remains cautious. Experts warn that without deeper
structural reforms--such as strengthening cold chain infrastructure,
supporting rural logistics, and improving cooperative market access--food
price volatility will persist.

 

As Rwanda continues to urbanize and modernize its food systems, building
resilience at every stage from farm to fork will be essential going forward.

 

The April CPI report indicates that inflation is being driven not only by
external shocks but also by internal vulnerabilities. While short-term fixes
like subsidies and reserves can help soften the blow, the long-term solution
lies in transforming the food supply chain itself.

 

As of today, food prices in Rwanda are largely determined by global price
shifts, seasonal weather patterns, and fragile domestic logistics - issues
which are mostly external but doubling up on local agriculture productivity,
especially next season, would help cushion the citizens in the coming
months, going into 2026.

 

Read the original article on New Times.

 

 

 

Africa: Geopolitical Shocks Drag Markets As Oil Surges and Volatility
Returns

Global equities pulled back sharply. The S&P 500 fell 0.47%, the Nasdaq
0.79%, and the Dow 1.07%, as geopolitical tensions escalated

The BRVM Composite Index rose 1.36% to 306.17 last week, sustaining momentum
above the 300-point threshold despite broader global volatility. Gains were
driven by Palm (+20.38%) and Servair (+10.84%), while the BRVM 30 added
1.26%. Index breadth remained healthy, supported by agricultural and
consumer stocks. Market capitalization reached 11.8T FCFA.

 

 

In Africa, the NGX climbed 2.67%, with financials and pharmaceuticals
outperforming. The NSE rallied 8.99%, bolstered by Olympia Capital (+10%)
and Longhorn Publishers (+5.47%). Meanwhile, the JSE slipped 1.08% under
pressure from large caps and industrial names, despite standout gains from
Visual International (+100%) and Oando (+40%).

 

Global equities pulled back sharply. The S&P 500 fell 0.47%, the Nasdaq
0.79%, and the Dow 1.07%, as geopolitical tensions escalated. The Euro Stoxx
50 sank 2.31%, while the FTSE 100 and SSE Composite remained largely flat.
Volatility spiked, with the VIX closing at its highest in three weeks amid
investor flight to safety.

 

Daba is Africa's leading investment platform for private and public markets.
Download here

 

Key Takeaways

 

Next week's market tone hinges on the fallout from the escalating
Israel-Iran conflict, which triggered a 7% spike in oil prices on Friday and
heightened global risk aversion. Reports of Israeli strikes on Iran's gas
infrastructure and the potential threat to the Strait of Hormuz have
investors bracing for further supply shocks, inflation pressures, and
short-term equity downside. Expect markets to remain highly headline-driven.
Volatility will likely stay elevated as traders monitor crude futures,
safe-haven flows into gold and the dollar, and global central bank
reactions. In Africa, local fundamentals remain solid, and BRVM, NGX, and
NSE may continue to attract inflows from regional investors seeking yield
amid global uncertainty.

 

Read the original article on Daba Finance.

 

 

 

 

 

Nigeria: CBN Suspends Dividend, Bonus Payments for Banks Under Forbearance

The CBN also said it will continue to monitor developments and engage with
institutions as necessary.

 

The  Central Bank of Nigeria  (CBN) has suspended dividend payments to
shareholders and bonuses to directors and senior management staff of banks
currently benefiting from regulatory forbearance. 

 

The directive was contained in a circular dated 13 June, signed by the
bank’s Director of Banking Supervision, Olubukola Akinwunmi.

 

According to the CBN, the move is part of efforts to strengthen capital
buffers, enhance balance sheet resilience and promote prudent internal
capital retention within the banking sector during what it described as a
transitional period.

 

 

The regulatory forbearance arrangement, which allows banks some relief in
meeting credit exposure and Single Obligor Limit (SOL) requirements, is
currently being reviewed by the central bank in terms of capital positions
and provisioning adequacy.

 

As part of this review, the CBN directed affected banks to suspend dividend
payments, defer bonuses, and refrain from making investments in foreign
subsidiaries or launching new offshore ventures.

 

READ ALSO: CBN, Presidency unveil national framework to improve confidence
in banks

 

“This temporary suspension is until such a time as the regulatory
forbearance is fully exited and the banks’ capital adequacy and provisioning
levels are independently verified to be fully compliant with prevailing
standards,” the CBN said.

 

The bank added that the measure is to ensure that internal resources are
retained to meet existing and future obligations and support “the orderly
restoration of sound prudential positions.”

 

The CBN also said it will continue to monitor developments and engage with
institutions as necessary.

 

The move comes amid efforts to tighten supervision across the financial
system following recent banking sector reforms and recapitalisation
directives.

 

Read the original article on Premium Times.

 

 

 

 

 

Nigeria: Dangote Refinery to Begin Nationwide Distribution of PMs, Diesel

The Dangote Petroleum Refinery has announced that it will begin distribution
of Premium Motor Spirit (PMS) and diesel nationwide.

 

In a statement on Sunday, the company said effective from 15th of August
2025, it will begin the distribution of the products to marketers, petrol
dealers, manufacturers, telecoms firms, aviation, and other large users
across the country, with free logistics to boost distribution network.

 

The move, according to the company, was a significant national initiative
aimed at transforming Nigeria's fuel distribution landscape.

 

The statement added that the Refinery has invested in the procurement of
4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to ensure
smooth take-off of the scheme, which will continue over an extended
timeframe.

 

 

The statement said, "To ensure the smooth takeoff of the free logistics for
marketers and petrol dealers buying from Dangote, the statement further
disclosed that the refinery has procured 4,000 brand-new Compressed Natural
Gas (CNG)-powered tankers.

 

"This phase of the programme will continue over an extended timeframe. The
refinery is also investing in Compressed Natural Gas (CNG) stations,
commonly referred to as daughter booster stations, supported by a fleet of
over 100 CNG tankers across the country to ensure seamless product
distribution.

 

"This strategic programme is part of our broader commitment to eliminating
logistics costs, enhancing energy efficiency, promoting sustainability and
supporting Nigeria's economic development. It affirms our dedication to
improving the availability and affordability of fuel, in support of broader
efforts to strengthen the economy and improve the well-being of all
Nigerians.

 

"Under this initiative, all petrol stations purchasing PMS and diesel from
the Dangote Petroleum Refinery will benefit from this enhanced logistics
support. Key sectors such as manufacturing, telecommunications, and others
will also gain from this transformative initiative, as reduced fuel costs
will contribute to lower production costs, reduced inflation, and foster
economic growth. Players in these key sectors and others can purchase
directly from the Dangote Petroleum Refinery."

 

The statement added that the refinery will offer a credit facility to those
purchasing a minimum of 500,000 litres, which would allow them to obtain an
additional 500,000 litres on credit for two weeks, under bank guarantee.

 

It described the effort as a milestone in its vision to revolutionise the
Nigeria's energy sector.

 

"This pioneering effort marks a major milestone in our vision to
revolutionise Nigeria's energy sector. Dangote Refinery is dedicated to
ensuring that no place is left behind. Our goal is to provide equitable
access to affordable fuel for all Nigerians, regardless of location, making
energy more accessible and sustainable for everyone, wherever they may be."

 

The Refinery, while thanking the federal government for its support,
particularly the Naira-for-Crude scheme, said the initiative was in line
with the Renewed Hope Agenda of President Bola Tinubu.

 

"This initiative is inline with the Renewed Hope Agenda of His Excellency,
President Bola Ahmed Tinubu, reflecting our shared commitment to economic
progress, stability, and inclusive development. We sincerely thank the
Federal Government for its continued support, especially through the
Naira-for-Crude scheme, which has helped stabilise fuel supply amid global
price volatility. It marks a major revolution in the midstream and
downstream sectors and stands as a key example of President Bola Tinubu's
bold and reformative economic policies.

 

"We invite marketers, petrol dealers, manufacturers, telecom companies, and
all key stakeholders to embrace this landmark initiative. The registration
process, including Know Your Customer (KYC) verification, will take place
from 16 June to 15 August, spanning a total of 60 days. For enquiries,
please call +234 707 470 2099, +234 707 470 2100, +234 816 961 8390, +234
703 796 8308, +234 812 362 2893. Email: Email: [email protected].

 

"Dangote Petroleum Refinery remains a proud partner in this national
journey-- a truly Nigerian company of global standards, dedicated to the
well-being of all Nigerians." the statement added.

 

Read the original article on Daily Trust.

 

 

 

 

Rwanda: 10 Ways Rwanda Is Spending On Climate Adaptation in New Budget

The government plans to spend Rwf7 trillion in the 2025/26 fiscal year,
which starts July 1, with a significant share of the funding sourced
domestically, which reflects a steady progress toward sustainable national
financing.

 

As climate change remains a top priority, The New Times highlights 10
initiatives in the budget targeting environmental protection and climate
resilience:

 

1. Forest Planting and Conservation

 

The Ministry of Environment has allocated Rwf10 billion to enhance climate
resilience in the Congo Nile Divide region, targeting vulnerable communities
in 10 districts across the Western, Northern, and Southern provinces.

 

 

Efforts will focus on reforestation using indigenous species and the
promotion of agroforestry to boost soil health, reduce erosion, and improve
water retention. The Rwanda Forestry Authority (RFA) aims to restore at
least 250,000 hectares of forest and expand agroforestry across more than
2,000 hectares.

 

2. Expansion of Volcanoes National Park

 

The government will fund the ongoing $255 million expansion of Volcanoes
National Park by 37.4 square kilometres (23 percent). This aims to improve
mountain gorilla habitats and biodiversity conservation.

 

3. Weather Forecasting Systems

 

To improve weather prediction and preparedness, the government will invest
in modern weather radars and other forecasting equipment.

 

4. Wetland Rehabilitation

 

The budget prioritises wetland conservation and includes projects to develop
water capture systems in hilly regions. Rehabilitation works--some already
underway--cover Kibumba (68 ha), Nyabugogo (131 ha), Rugenge-Rwintare (65
ha), Gikondo (162 ha), and Rwampara (65 ha). Upon completion, these wetlands
will feature 58.5 kilometres of cycling and pedestrian pathways to encourage
green recreation.

 

5. Green Finance for Public and Private Sectors

 

Rwanda will inject Rwf8.5 billion into green finance mechanisms--IREME
Invest and the INTEGO Facility.

 

IREME Invest, supporting the private sector, offers grants and concessional
loans through the Rwanda Green Fund and Development Bank of Rwanda.

 

INTEGO, with Rwf9.9 billion allocated, focuses on public sector projects
that promote climate resilience and emissions reduction in line with
Rwanda's Nationally Determined Contributions (NDCs).

 

6. Early Warning Systems

 

The government will strengthen early disaster warning systems to deliver
timely alerts and safeguard lives and property.

 

7. Hazardous Waste Management

 

Rwf3.9 billion is earmarked for the safe management of hazardous waste,
which poses risks to human health and the environment due to its toxic or
corrosive nature.

 

8. Resilience in Gakenke and Kirehe

 

Under the five-year LDCF-III project, Rwf2.1 billion will fund initiatives
to build climate resilience in Gakenke and Kirehe districts by promoting
ecosystem-based solutions and sustainable rural settlements.

 

9. Air Quality and Climate Monitoring

 

Rwf2.9 billion will go towards expanding Rwanda's air quality monitoring
network, upgrading the national climate observatory, and building scientific
capacity.

 

10. Rwanda Cooling Initiative

 

To address rising temperatures and energy demand, the Rwanda Cooling
Initiative will support the adoption of efficient, climate-friendly cooling
technologies.

 

Read the original article on New Times.

 

 

 

 

 

Africa: How Technology Is Helping African Countries Fight Malaria From the
Skies

Kenya - A new initiative is using AI-powered drones to identify and
eliminate mosquito breeding grounds in Ghana and Sierra Leone, in a bid to
prevent malaria outbreaks.

 

At dawn in Busia County, western Kenya, 10-year-old Angela Wanjiru lies
motionless on a wooden bench in front of a rural dispensary. Her fever is
high, and her mother anxiously fans her with a creased piece of cardboard.
This is Angela's third malaria attack in three months, a deadly cycle that
is well known to families in this mosquito-infested region.

 

Kenya sees more than 5 million malaria cases per year - and 12,000 deaths
from the disease. Malaria continues to be one of the biggest obstacles to
child survival and economic productivity in sub-Saharan Africa.

 

But in some parts of the region, a quiet revolution is in the air - quite
literally.

 

In Ghana and Sierra Leone, drone technology is being used to identify and
eliminate mosquito breeding grounds before outbreaks erupt.

 

These drones, powered by artificial intelligence-enabled cameras, patrol
fields, wetlands and riverbanks. They scan for standing water where
mosquitoes lay eggs.

 

When an infestation location is found, the drones deposit larvicide at the
infestation point before the insects even hatch.

 

Malaria fight under threat as US funding cuts raise fears in Africa

 

'We could end the cycle'

 

This initiative, introduced by governments and local partners with support
from Japanese start-up SORA Technology, is already showing good results.

 

SORA Technology co-founder and CEO Yosuke Kaneko says the idea came out of
his own experiences in Africa. "I was shocked at how many children still die
from malaria, which can be prevented and cured. We thought that if we could
add AI and aerial monitoring to the mix, we could end the cycle."

 

He added: "Drones allow us to access areas that health personnel often have
difficulty reaching in a timely manner, safely and with accuracy that does
make a real difference."

 

Kaneko says his team works in close proximity with ministries of health,
community leadership and local drone pilots. "The technology only works if
the people it's supposed to help trust it. That's why training locals and
building capacity in-country is at the core of what we do."

 

The women carrying the burden of Kenya's rural healthcare on their backs

 

Prevention rather than cure

 

Dr. Margaret Njeri, an epidemiologist in Nairobi, sees this initiative as a
breakthrough. "We've relied on bed nets and medication for decades. Those
are still important, but they're not enough. This kind technology is what
we've been seeking."

 

Africa accounts for more than 90 percent of global malaria deaths, with
young children the most vulnerable. Despite progress in reducing
transmission over the past two decades, rising resistance to drugs and
insecticides is forcing a rethink in strategy.

 

Malaria policy advisor Dr. Peter Okeke, who is based in Abuja, believes the
drone model can be replicated across the African continent. "It's smart
prevention - cheaper than treatment, more humane than reacting to outbreaks
and, ultimately, more sustainable."

 

Faith Atieno, a community health volunteer in Homa Bay County, western
Kenya, has witnessed the devastating impact of malaria on children in her
community - like Angela.

 

"We've heard how valuable these drones are proving in other African
countries. If we had them here, I am sure that we could save many lives,"
she says. "It's not just about technology. It's about giving our children a
better chance."

 

Read or Listen to this story on the RFI website.

 

 

 

 

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: China to Remove Tariffs On African Imports to Boost Trade

China says it will sign a new economic pact with Africa that will get rid of
all tariffs on the 53 African states it has diplomatic ties with - a move
that could benefit middle-income nations as they prepare for tariff hikes on
products entering the United States.

 

The move, announced at a China-Africa co-operation meeting (FOCAC) in
Changsha, central China, comes as the continent faces the possibility of
increased tariffs on its products entering the US.

 

The Asian economic giant already offers duty- and quota-free market access
to least developed countries (LDCs), including 53 countries in Africa, but
the new initiative will level the playing field by also offering
middle-income countries similar market access.

 

 

Eswatini (formerly Swaziland) is the only African country excluded from the
zero-tariff deal. It maintains diplomatic ties with Taiwan, whereas China
regards it as a breakaway province.

 

The timing of Beijing's decision is significant. In April, President Donald
Trump announced high tariffs on its imports from many countries, including a
50 percent rate for Lesotho, 30 percent for South Africa and 14 percent for
Nigeria.

 

While the implementation of the tariff hikes has been paused until next
month, they've caused consternation nonetheless.

 

"Faced with an international situation marked by changes and turmoil, China
and Africa should uphold solidarity and self-reliance more than ever," said
Foreign Minister Wang Yi, calling on both sides to respond to uncertainties
in the world with a stable and resilient China-Africa relationship.

 

China pledges to give Africa $51bn in fresh funding over next three years

 

Reducing China's trade surplus

 

China is Africa's largest trading partner, its main investor and its largest
creditor. In 2023, Africa exported goods to the Asian nation worth around
$170bn.

 

A key objective for Beijing is to provide major industrial powers within
Africa - such as Kenya, South Africa, Nigeria, Egypt, and Morocco - with
greater market access in order to boost their export capacity.

 

Beijing also hopes the initiative will help ease its own structural trade
surplus with Africa, which currently stands at $62 billion.

 

As part of President Xi Jinping's broader diplomatic strategy to foster
South-South solidarity and "build a community with a shared future" Tanzania
and Mali were also promised technical and commercial assistance in the form
of training, marketing and logistical support.

 

To display this content from X (Twitter), you must enable advertisement
tracking and audience measurement.

 

Accept Manage my choices China's new strategy in Africa: is the continent
getting a fair deal?

 

Limited impact

 

It is still not clear, however, which sectors will be affected by the tariff
changes, reports RFI's Beijing correspondant Clea Broadhurst.

 

Currently, most African exports to China are raw materials, ores and oil,
all of which have limited added value.

 

Some question whether Beijing will apply its exemption policy to South
Africa's car exports, and if there is sufficient demand for them in the
Chinese market,

 

There are also concerns that the policy might keep many African countries
locked into their role as raw material producers, rather than helping them
move up the value chain.

 

Since 2005, the 27 least developed countries in Africa have been eligible
for exemption from nearly all custom duties on their exports, with limited
measurable effects. The new policy could inadvertently prolong their
dependency on extractive industries, instead of fostering transformation.

 

Read or Listen to this story on the RFI website.

 

 

 

 

South Africa: Seminar to Explore Leveraging of AfCFTA for Inclusive
Development

The Human Sciences Research Council's Africa BRICS and Global South (ABGS)
research unit will host a seminar focused on utilising the African
Continental Free Trade Area (AfCFTA) to promote regional health-industrial
integration and foster inclusive development across the continent.

 

The ABGS research unit, based at the Human Sciences Research Council's
(HSRC), focuses on issues related to Africa, BRICS, and the Global South.

 

Their research explores topics like economic integration, health security,
and the role of BRICS in the Global South.

 

The hybrid seminar will be held at the HSRC Building in Pretoria on Tuesday,
17 June 2025.

 

Presented by Senior Lecturer at the University of Edinburgh, Dr Geoffrey
Banda, the seminar will focus on how the AfCFTA can be a powerful catalyst
for strengthening Africa's local health security through increased and
resilient regional trade, industrialisation, and innovation.

 

"The seminar will further explore how aligning health and industrial policy
within the framework of the AfCFTA can drive job creation, enhance
resilience, and support the continent's broader development ambitions under
Agenda 2063," the advisory read.

 

In his recent book, "Cancer Care in Pandemic Times: Building Inclusive Local
Health Security in Africa and India", Banda makes a strong argument for an
interdisciplinary approach that combines health research with
industrialisation and regional economic integration.

 

The HSRC said this approach aims to develop sustainable and context-specific
solutions to the health challenges faced in Africa.

 

Key themes to be explored include the vulnerabilities associated with
reliance on global supply chains, the intentional connection between health
and industrial capabilities, the transition to new technologies along with
industrial capabilities, and the use of the AfCFTA to scale innovative
procurement.

 

"This approach aims to gradually develop continental innovation ecosystems
that support resilient regional trading systems."

 

Read the original article on SAnews.gov.za.

 

 

 

 

 

How the Israel-Iran conflict could affect energy prices

Israel's strikes on Iran, and Iran's response, initially caused an shudder
on global financial markets.

 

The price of oil in particular surged, but after a weekend of missile and
drone strikes between the two countries the cost of crude has fallen back.

 

Nevertheless, oil prices are $10 higher than they were a month ago and there
are renewed fears increased energy costs could make everything - from petrol
and food to holidays - becoming more expensive.

 

That is what happened after Russia invaded Ukraine three years ago,
affecting people's lives around the globe.

 

 

How much have oil prices risen?

The attacks prompted an instant reaction on the markets.

 

Brent Crude - the main international benchmark - rose to over $78 a barrel
on Friday. Since then, it has fallen back to about $74.50, but it is still
$10 higher than it was this time last month.

 

The price of oil rises and falls all the time in response to big
geopolitical events, and the state of the global economy, so it is not a
surprise to see oil prices reacting to the Israel-Iran conflict.

 

However, the price is far below where it was a year earlier. It is also well
below the peaks seen in 2022 following Russia's invasion of Ukraine, when it
spiked to nearly $130 a barrel.

 

So will petrol and other prices go up?

When the wholesale oil price goes up, many people notice it first when it
leads to higher petrol prices.

 

But more expensive energy also feeds through to higher prices for almost
everything, from farming to manufacturing.

 

When it comes to food, higher energy costs can lead to higher prices on the
shelf in many ways. It can make it more expensive to run farm machinery, to
transport produce, and to process and package food.

 

However, that will only happen if energy prices stay high for a sustained
period.

 

Even with petrol and diesel, rising crude prices only have a limited impact.

 

"A rough rule of thumb is a $10 rise in the oil price would add about 7p to
the price at the pump," says David Oxley at Capital Economics.

 

However, this is not just an oil story, he cautions.

 

Many will remember the shock to prices that followed the beginning of the
Ukraine conflict. That was in large part a response to higher gas prices, Mr
Oxley says.

 

Many of us heat our homes with gas, and in the UK electricity prices are
also set in relation to the gas price.

 

Gas prices have also risen after last week's attacks. But the impact will
feed through to households only slowly, if at all, says Mr Oxley, given the
way the market works, including the role of the regulator, in capping
prices.

 

-bbc

 

 

 

 

 

The reality behind Trump's incredible investment claims

US President Donald Trump may have called tariffs his favourite word in the
dictionary. But when it comes to obsessions, business investment has got to
be close.

 

As of last month, he said more than $12 trillion (£8.8tn) had been
"practically committed" on his watch. "Nobody's ever seen numbers like we
have," he said, crediting his agenda of tariffs, tax cuts and deregulation
with making the difference.

 

If true, the figure would indeed be astonishing, potentially tripling the
roughly $4tn in gross private investment the US reported all of last year.

 

So is a sudden gush of business spending setting the stage for a new golden
economic era as Trump claims, or is it all theatre?

 

 

First things first: it is too early in Trump's tenure to have clear data to
evaluate his claims. The US government publishes statistics on business
investment only every three months.

 

January to March, which reflect two months of Trump's tenure, show a strong
jump in business investment, albeit one that analysts said was partly due to
data skewed by an earlier Boeing strike.

 

Other anecdotal and survey evidence indicates that Trump's impact on
investment is far more incremental than he has claimed.

 

"We have hardly any data at this point and almost all the information we
have is probably for investment projects that were planned and ordered last
year," says economist Nick Bloom, a professor at Stanford University whose
work looks at the impact of uncertainty on business investment.

 

"My guess is business investment is down a little bit, not massively...
primarily because uncertainty is quite high and that will pause it."

 

Swiss pharmaceutical firm Roche, which announced plans to invest $50bn in
the US over five years in April, is a good example.

 

Some of the projects included in the sum were already in the works.

 

Executives have also warned that some of Trump's ideas - in particular a
proposal to overhaul drug pricing - could imperil its plans.

 

"The pharma industry would need to review their expenses including
investments," the company said.

 

 

On his first day in office, President Trump touted investment by SoftBank's
Masayoshi Son, Oracle's Larry Ellison and OpenAI's Sam Altman

Trump typically makes his case pointing to investment promises made by
high-profile firms such as Apple and Hyundai.

 

The White House keeps a running tally of those announcements, but at the
start of June, it put total new investments at roughly $5.3tn - less than
half the sum cited by Trump.

 

Even that figure is inflated.

 

Roughly a third of the 62 investments on the list include plans that were at
least partially in the works before Trump took office. For example:

 

US manufacturer Corning is listed for a $1.5bn investment in a new
manufacturing plant, but the core $900m of the project was announced in
early 2024.

Stellantis, on the list for a $5bn plan to reopen a factory in Belvidere,
Illinois, initially made that promise in 2023.

Other commitments include items that are not traditionally considered
investments at all - like Apple's $500bn spending pledge, which includes
taxes and salaries paid to workers already at the company.

An investment promise, by ADQ and Energy Capital, is not limited to the US.

 

Falling 'well short' of headlines

In reality, as of mid-May, new investment stemming from the announcements
likely totalled something closer to $134bn, according to analysis by Goldman
Sachs.

 

That sum shrank to as little as $30bn, not including investments backed by
foreign governments, once researchers factored in the risk that some
projects might fail to materialise, or would have happened anyway.

 

"Though not negligible economically, such increases would fall well short of
the recent headlines," they wrote.

 

When pressed on the numbers, White House spokesman Kush Desai brushed off
concerns that the administration's claims did not match reality.

 

"The Trump administration is using a multifaceted approach to drive
investment into the United States... and no amount of pointless nitpicking
and hairsplitting can refute that it's paying off," he said in a statement,
which noted that many firms had explicitly credited Trump and his policies
for shaping their plans.

 

 

Getty Images US President Donald Trump speaks in the Cross Hall of the White
House during an event on "Investing in America" on April 30, 2025 in
Washington, DC. Trump was joined by CEOs to highlight their companies during
the event. Getty Images

Trump invited chief executives to the White House to mark his first 100 days
in office

The BBC approached more than two dozen firms with investments on the White
House list.

 

Many did not respond or referred to previous statements.

 

Others acknowledged that work on some of their projects pre-dated the
current administration.

 

 

Incentive to exaggerate

Exaggeration by politicians and companies is hardly unexpected.

 

But the Trump administration's willingness to radically intervene in the
economy, with tariffs and other changes, has given companies reason to pump
up their plans in ways that flatter the president, says Martin Chorzempa,
senior fellow at the Petersen Institute of International Economics.

 

"A firm making an announcement is a way to get some current benefits,
without necessarily being held to those [spending pledges] if the situation
changes," he says. "There's a strong incentive for companies to provide as
large a number as possible."

 

That's not to say that Trump policies aren't making a difference.

 

The tariff threats have "definitely been a catalyst" for pharmaceutical
firms to plan more manufacturing in the US, a key source of sector profits,
says Stephen Farrelly, global lead for pharma and healthcare at ING.

 

But, he adds, there are limits to what the threats can accomplish.

 

The pharma investments are set to unfold over time - a decade in some cases
- in a sector that was poised for growth anyway.

 

And they have come from firms selling branded drugs - not the cheaper,
generic medicines that many Americans rely on and that are made in China and
India.

 

Mr Farrelly also warned that the sector's investments may be at risk over
the long term, given uncertainty about the government's approach to tariffs,
drug pricing and scientific research.

 

 

Overall, many analysts expect investment growth to slow in the US this year
due to policy uncertainty.

 

Economist German Gutierrez of the University of Washington says Trump is
right to want to boost investment in the US, but believes his emphasis on
global competition misdiagnoses the problem.

 

His own work has found the decline in investment is due in part to industry
consolidation. Now a few large firms dominate sectors, there is less
incentive to invest to compete.

 

In addition, the kinds of investments firms are making are typically cheaper
items such as software rather than machines and factories.

 

Tariffs, Prof Gutierrez says, are unlikely to address those issues.

 

"The way it's being done and the type of instruments they are using are not
the best ways to achieve this goal. It just takes a lot more to really get
this going," he says.

 

A thin, grey banner promoting the US Politics Unspun newsletter. On the
right, there is an image of North America correspondent Anthony Zurcher,
wearing a blue suit and shirt and grey tie. Behind him is a visualisation of
the Capitol Building on vertical red, grey and blue stripes. The banner
reads: "The newsletter that cuts through the noise.”

Follow the twists and turns of Trump's second term with North America
correspondent Anthony Zurcher's weekly US Politics Unspun newsletter.
Readers in the UK can sign up here. Those outside the UK can sign up
here.-bbc

 

 

 

Can shoes be made in the US without cheap labour?

In a corner of Kentucky just outside of Louisville, family-owned shoe
company Keen is opening a new factory this month.

 

The move fits neatly into the "America First" economic vision championed by
the Trump administration - an emblem of hope for a manufacturing renaissance
long promised but rarely realised.

 

Yet beneath the surface, Keen's new factory tells a far more complicated
story about what manufacturing in America really looks like today.

 

With just 24 employees on site, the factory relies heavily on automation
-sophisticated robots that fuse soles and trim materials - underscoring a
transformation in how goods are made today.

 

 

Manufacturing is no longer the labour-intensive engine of prosperity it once
was, but a capital-heavy, high-tech enterprise.

 

"The labour rates here in the US are very expensive," says Keen's chief
operating officer, Hari Perumal. Compared to factories in Asia, American
staffing costs run roughly 10 to 12 times higher, he explains.

 

It's a reality that forced Keen to come up with a solution back in 2010,
when rising costs in China pushed the company to begin producing
domestically - a decision which today offers it some buffer against Trump's
tariffs. But it's far from a straightforward win.

 

Shoemaking, like many industries, remains tightly linked to sprawling global
supply chains. The vast majority of footwear production is still carried out
by hand in Asia, with billions of pairs imported annually into the US.

 

To make domestic production viable, Keen has invested heavily in automation,
enabling the Kentucky plant to operate with just a fraction of the workforce
required overseas.

 

"We are making products here in the USA very economically and very
efficiently," says Mr Perumal.

 

"And the way we do that is with tons of automation, and [it] also starts
with how the products are designed and what kind of materials and automation
we utilise."

 

 

Keen Boots being manufactured by robots at the company's facility in
Portland, OregonKeen

Keen utilises robotics at its US manufacturing facilities

The challenges of reshoring manufacturing go beyond Keen. Major brands such
as Nike, Adidas, and Under Armour also attempted to develop new
manufacturing technologies in the US around a decade ago — efforts that
ultimately failed.

 

Even Keen only assembles 9% of its shoes in America. It turns out that
making shoes in a new way, and at scale, is complex and expensive.

 

The story of American manufacturing is one of dramatic rise and gradual
decline. After World War Two, US factories churned out shoes, cars, and
appliances, employing millions and helping to build a robust middle class.

 

But as globalisation accelerated in the late 20th Century, many industries
moved overseas, chasing cheaper labour and looser regulations. This shift
hollowed out America's industrial heartland, contributing to political and
economic tensions that still resonate today.

 

Shoemaking has become a symbol of these changes. Approximately 99% of shoes
sold in the US are imported, mainly from China, Vietnam, and Indonesia.

 

The domestic footwear supply chain is almost non-existent - only about 1% of
shoes sold are made in America.

 

 

Pepper Harward, CEO of Oka Brands, one of the rare companies still producing
shoes in the US, knows this challenge well. His factory in Buford, Georgia,
crafts shoes for brands like New Balance and Ryka.

 

But sourcing affordable parts and materials in the US remains a constant
struggle.

 

"It's not a self-sustained ecosystem," Mr Harward says. "You kind of have to
build your own. That is extremely challenging as vendors and suppliers
sometimes come in and out."

 

To source the foam and PVC for their soles, Oka Brands tried tapping into
the automotive industry's supplier network — an unconventional but necessary
workaround.

 

Oka Oka flipflops being made at its factory in GeorgiaOka

Shoemaker Oka does all its production in the US

 

For companies like Keen and Oka, making shoes in America requires patience,
investment, and innovation. The question is whether they - and others - can
scale production under the protectionist policies now in place.

 

Mr Harward says there is definitely more interest in local manufacturing
because of tariffs, noting that the supply chain disruptions caused by the
pandemic also spurred greater interest in reshoring. But he is sceptical
that tariffs alone will drive a wholesale return.

 

"It would probably take 10 years of pretty high tariffs to give people
incentives to do it," says Mr Harward. Even then, he believes the industry
might realistically see only about 6% of production return to US soil.

 

As for Keen, plans that began over a decade ago, are coming to fruition. It
is the kind of patient investment only a family business can afford.

 

"We are a private, values-led company," Mr Perumal explains. "We're able to
do these types of decisions without having to have to worry about quarter
after quarter results."

 

Still, even for companies who are already making shoes in America, the
reality of modern manufacturing is that it is difficult to simply reverse
decades of globalisation.

 

Keen's new factory is not a signal of a return to the past, but a glimpse of
what the future of American manufacturing might look like - one where
technology and tradition intersect.-bbc

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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