Major International Business Headlines Brief::: 01 April 2022
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Major International Business Headlines Brief::: 01 April 2022
<https://www.nedbank.co.zw/>
ü Biden orders 'unprecedented' release of oil reserves
ü China's WeChat suspends some accounts linked to NFTs
ü Ukraine war: Russia threatens to stop supplying gas if not paid in roubles
ü Sri Lanka: Protest at president Rajapaksa's home turns violent
ü Nigeria: With $537m, U.S. Begins Construction of Largest Consulate Globally in Lagos
ü Kenya: Depositors From Three Banks Under Liquidation to Benefit >From Payments From KDIC
ü Tanzania, South Africa Tech Designers Meet in Dar
ü Tanzania: Tira Wants Banks to Seize Insurance Opportunities
ü Tanzania: TBL Opens 100+ Accelerator Applications
ü Nigeria's 3.4% GDP Growth Shows Investment in Infrastructure Working - Buhari
ü Nigeria: Again, House Invites Kyari, Others Over State of Refineries
ü Liberia - "AML Concerned About Status of Third Amended MDA"
ü Seychelles Plans to Activate Fisheries Harvest Strategy Policy By Third Quarter of 2022
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Biden orders 'unprecedented' release of oil reserves
US President Joe Biden has ordered a major release of oil from America's reserves in an effort to bring down high fuel costs.
The release of up to 180m barrels of oil over six months is the largest since the reserve was created in 1974.
Oil prices dropped on reports of the move, which is aimed at easing a supply crunch sparked by war in Ukraine.
But the release - of about 1m barrels a day - is unlikely to fully resolve the energy crisis, analysts say.
Mr Biden promised further action to boost US output, saying the release would "serve as [a] bridge until the end of the year when domestic production ramps up".
He called for companies to pay extra if they choose not to use oil wells on land they lease from the government, as well as investments to speed up the adoption of greener energy sources.
Following Mr Biden's remarks, US oil benchmark West Texas Intermediate was more than 7% lower at about $100 a barrel, while Brent Crude fell roughly 5.4% to around $107.
The soaring cost of fuel has become a major political issue around the world, including in the US, which hosts mid-term elections in November.
Mr Biden said the scale of the release from the Strategic Petroleum Reserve - which together amounts to less than two days of global consumption - was "unprecedented".
Thursday's announcement marked the third time in six months Mr Biden has moved to draw down America's crude oil stockpiles
But the release of additional reserves is unlikely to be enough to compensate for lost supplies from Russia - the world's second-biggest oil exporter after Saudi Arabia.
"While stock releases will help to keep a lid on prices in the short term, we think it will take an increase in global production to spark a sustained fall in prices," said Edward Gardner, commodities economist at Capital Economics.
Brent crude - the global benchmark for oil prices - hit $139 a barrel earlier this month after Russia's invasion of Ukraine and sanctions slapped on Moscow by the US and its allies.
Energy prices have fallen back since then, but oil is still almost 70% higher than it was a year ago.
It makes for an excellent headline: President Biden releases unprecedented amounts of oil from strategic reserves. But it really only offers a temporary fix to global shortages. So why is the White House even bothering?
Domestically, the President is under a tremendous amount of pressure. November is the midterm elections and Democrats hold a very slim majority that they are desperate to hold on to.
Rising inflation was already an issue, and Republicans have been laying the blame for the high cost of living on the White House and specifically Mr Biden.
The record high cost of fuel just adds to the pain being felt by the American middle class. And it certainly doesn't jive well with the president's "Joe from Scranton" vibe.
Global demand for energy had been rising prior to Russia's invasion of Ukraine as economies started to reopen as coronavirus lockdown measures were relaxed.
However, the war in Ukraine has raised fears of supply issues, with warnings that Russian oil exports could fall by as much as 3m barrels a day.
Most major energy-producing nations are either at full capacity or are unwilling to increase output.
A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016.
On Thursday, the Organization of the Petroleum Exporting Countries (Opec) and its allies, including Russia, confirmed they were sticking to their existing deal to gradually increase production.
The decision came despite pressure from the US, UK and others on members of the group of oil producing nations to boost output.
"The consensus on the outlook pointed to a well-balanced market," the group said.
"Current volatility is not caused by fundamentals, but by ongoing geopolitical developments."
The International Energy Agency (IEA) has called an emergency meeting but it is unclear whether other countries, including the UK, France, Germany and Japan, will follow the US by releasing oil reserves.
Mr Biden said he was coordinating with Western nations on the release of the stockpiles and expected them to release another 30 to 50 million barrels.
Also on Thursday, Japan said that it would take emergency measures to secure supplies of seven strategic materials it relies on heavily from Russia or Ukraine as the war and sanctions cause disruptions to supplies.
The country's industry minister said the actions include government support to boost domestic production, alternative procurement and to help technological developments to reduce use of the materials, which include liquefied natural gas and gases used in computer chip-making.-BBC
China's WeChat suspends some accounts linked to NFTs
China's popular WeChat messaging app has suspended some accounts linked to non-fungible tokens (NFTs), to prevent speculation in the digital assets.
The platform says it has "rectified" accounts which it found to be promoting NFT market speculation, that can help to drive up prices.
There are no regulations against NFTs in China, although the trading of cryptocurrencies was banned last year.
NFTs can be bought and sold in China like any other piece of property.
For this reason they have been touted as the digital answer to collectibles. However, they have no tangible form of their own, and experts have warned about risks in the market.
On Thursday, WeChat responded to local media reports that the accounts had been banned.
The platform said it had "recently standardised and rectified public accounts and small programmes for speculation and secondary sales of digital collections".
It added that this was done "according to relevant national regulations, in order to prevent the risk of speculation in virtual currency transactions".
Ukraine to sell NFTs to fund war against Russia
What are NFTs and why are some worth millions?
Chinese technology giant Tencent, which owns WeChat, declined to comment further when approached by the BBC.
The move comes as China's technology industry has come under intense scrutiny by authorities.
The sector has seen a large amount of official action against it since last year, including crackdowns on ecommerce firms, online finance services, social media platforms, gaming companies, cloud computing providers, ride-hailing apps and cryptocurrency miners and exchanges.
Even after all the measures, the trading of NFTs is still not illegal in China. However, the digital assets are built on technology which is regulated by Beijing.
Under the rules, buyers have to purchase NFTs in the local currency, the yuan, rather than cryptocurrencies, which are banned.
The "one of a kind assets" have been sold for thousands - and even millions - of dollars.
-BBC
Ukraine war: Russia threatens to stop supplying gas if not paid in roubles
Russia has told "unfriendly" foreign countries they must start paying for gas in roubles or it will cut supplies.
Vladimir Putin has signed a decree stating buyers "must open rouble accounts in Russian banks" from Friday.
"Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped," the Russian president said.
Mr Putin's demand is being seen as an attempt to boost the rouble, which has been hit by Western sanctions.
His decree means foreign buyers of Russian gas would have to open an account at Russia's Gazprombank and transfer euros or US dollars into it.
Gazprombank would then convert this into roubles which will then be used to make the payment for gas.
Though the order comes into effect for gas exported from Friday onwards, the payments for that gas will not be paid by European buyers until mid-May, Dr Jack Sharples, a research fellow at the Oxford Institute for Energy Studies told the BBC.
That suggests there may not be an immediate threat to supplies.
Mr Putin said the switch to roubles was meant to strengthen Russia's sovereignty, and it would stick to its obligations on all contracts, if Western nations obliged.
Germany said the change announced by Mr Putin amounted to "blackmail".
Since Russia invaded Ukraine, Western nations have issued economic and trading sanctions on Russia, but the European Union has not placed bans on oil or gas, unlike the US and Canada, as its member nations rely heavily on it.
The EU gets about 40% of its gas and 30% of its oil from Russia, and has no easy substitutes if supplies are disrupted. Meanwhile, Russia currently gets €400m (£340m) per day from gas sales to the bloc and it has no way of rerouting this supply to other markets.
For the Kremlin this is designed to suggest a dramatic escalation in the economic battle between the West and Russia over the invasion of Ukraine.
Vladimir Putin has outlined a pathway for the cutting of gas supplies to Europe if Western customers refuse to pay for supplies in the Russian currency the rouble.
However, the market reaction suggests the details of the mechanism mean that, in practice, European customers will just have to change their currency dealers to Gazprombank. That bank has already been left unsanctioned, for the purpose of continuity of energy trade.
As a result, gas prices remain very high, but did not today shoot into the stratosphere. There should be a workaround.
As one leading analyst told me, this solution has "saved face" for Putin, who can sound tough on domestic TV. Ultimately, as Russian officials have repeatedly said for decades, Russian supply of energy to the West continued uninterrupted even during the height of the Cold War.
Ultimately, Russia still needs the money for the gas, and still wants to leave the possibility of a market for its main export once a peace deal is signed. However, it is also true to say that the threat of a cut-off has escalated. EU nations have prepared emergency measures to manage demand, and would be more willing to face that now during spring and summer than winter.
The net effect of the mechanism announced is to limit the ability of the West to freeze the revenues they pay to Gazprom, which Putin described as receiving the gas for free.
Some Ukrainian officials have suggested such an approach. Oil and gas dollars and euros continue to help the Kremlin resist an otherwise tough set of financial sanctions.
Analysts said Russia halting gas flows to EU member countries to "force the issue" would mark a "major escalation not even performed at the height of the Cold War".
"It would mark another major financial blow to Russia's coffers," the analysts at Fitch Solutions added.
It is also unclear whether Russia's new payment mechanism for gas would fully ban payments in euros.
Western companies and governments have rejected Russia's demands to pay for gas in roubles as a breach of existing contracts, which are set in euros or US dollars.
German Chancellor Olaf Scholz said German companies would continue to pay for Russian gas using euros as stipulated in contracts.
Nathan Piper, head of oil and gas research at Investec, told the BBC the move by Mr Putin was an attempt to put economic pressure "back on Europe" and that more foreign exchange demand for roubles would likely push up the value of the currency.
"However, long term Russia needs to remain a reliable supplier of gas so it is unclear if they would actually restrict gas supply," he added.
"That said, even the risk of it is keeping UK/European gas prices at near record highs and six times the 10-year average. This is translating to steep rises in consumers' energy bills."
Dr Sharples of the Oxford Institute for Energy Studies, said the two sides could adapt and continue their trade uninterrupted, or one or both parties could claim breach of contract and escalate the situation.
"One would hope that even if the situation escalated to a point where one or both parties call for arbitration, that the gas would continue to flow. However, a stoppage cannot be ruled out," he said.
Germany and Austria trigger emergency plans
Germany, which gets about half its gas and a third of its oil from Russia, has urged its citizens and companies to reduce consumption in anticipation of possible shortages. Austria, which imports about 40% of its gas from Russia, is tightening its monitoring of the market.
Under an existing gas emergency plan, the "early warning phase", which both Germany and Austria have begun, is the first of three steps designed to prepare the country for a potential supply shortage. In its final stage, the governments would bring in gas rationing.
Elsewhere, Bulgaria, which gets 90% of its gas via imports from Russian company Gazprom, has opened a tender for underground drilling as part of plans to almost double the country's gas storage capacity and prepare for any supply disruptions.
While the UK would not be directly impacted by supply disruption, as it imports less than 5% of its gas from Russia, it would be affected by prices rising in the global markets as demand in Europe increases.
The UK government said it was not planning to pay for Russian gas in roubles.-BBC
Sri Lanka: Protest at president Rajapaksa's home turns violent
Sri Lankan police imposed curfew and fired tear gas at demonstrators protesting dire food, fuel and power shortages outside the president's house.
Agitated protesters stormed through barricades, and were accused of setting fire to a bus on Thursday night.
President Gotabhaya Rajapaksa blamed the events on "extremist elements".
Sri Lanka is in the midst of a foreign exchange crisis that has crippled its economy.
Faced with 13-hour power cuts, a lack of fuel, essential food items and medicines, public anger has reached a new high.
The protest outside the President's house began peacefully, but participants say things turned violent after police fired tear gas, water cannons and also beat people present.
Protesters retaliated against the police by pelting them with stones.
On Friday morning, police arrested 45 people although no charges have been made against them yet.
The demonstrations mark a massive turnaround in popularity for Mr Rajapaksa who swept into power with a majority win in 2019, promising stability and a "strong hand" to rule the country.
Who is Sri Lanka's controversial new president?
Critics have been pointing to rank corruption and nepotism - his brothers and nephews occupy several key ministerial portfolios - as one of the main reasons for the situation the country has found itself in.
People shout slogans during a protest against the current economic crisis, outside the President's private residence in Colombo, Sri Lanka, 31 March 2022.
News reports that the president and his ministers are exempt from the power cuts, along with opulent displays of wealth by family members, have only increased anger.
The government has been blaming the crisis on the pandemic's impact on tourism - one of the island nation's main sources of foreign revenue - along with a series of attacks on churches on Easter Sunday 2019 which led to a marked drop in tourists.
But experts say that this crisis has been a long time in the making.
"This is an implosion, an accumulated outcome of what has been building up for a couple of decades and as usual there is no one to take responsibility for it. Of course, the present government is directly responsible for its wilful mismanagement of the crisis since they came into power in 2019 by sheer incompetency, arrogance and of course corruption," Jayadeva Uyangoda, a political scientist and commentator, told the BBC.
Sri Lanka's former deputy central bank governor WA Wijewardena told the BBC that Sri Lanka made a fundamental mistake in not integrating with the global economy after the end of a civil war in 2009 which saw its economy grow at rates of almost 9%.
"Exports which accounted for 33% of Gross Domestic Product (GDP) in 2000 have now fallen to 12% and remain at that level," he said.
In the more immediate term, a government refusal to let the Sri Lankan rupee depreciate also took a massive toll on its foreign reserves.
Accordingly, foreign reserves which stood at $7.6bn (£5.8bn) at the end of 2019 have now fallen to a level of $2.3 bn; of those reserves, usable reserves have fallen to some $300mn.
Mr Wijewardena feels things will get a lot worse before they get better, as there is no sustainable flow of foreign exchange for the heavily import-reliant country.
Sri Lanka no longer has enough dollars to buy essential items like fuel to power vehicles or even generate power.
As a result, the country's electricity board has been imposing power cuts that have grown longer and longer in duration. On Thursday, power was switched off for 13 hours, with 16-hour cuts expected in the coming days.
People clash with the police during a protest against the current economic crisis, outside the President"s private residence in Colombo, Sri Lanka, 31 March 2022
This has disrupted businesses, education and day to day life for millions.
Long lines have been reported outside fuel stations, while people have also had to queue up for hours in the heat to buy items like cooking gas cylinders with sometimes tragic results.
Five elderly people have died after collapsing in queues over the last few weeks.
Shortages in food items and essential medicines are also being reported from across the country.-BBC
Nigeria: With $537m, U.S. Begins Construction of Largest Consulate Globally in Lagos
The United States Government yesterday commenced the construction of a new Consulate office, which would be the largest globally, to be situated at the iconic Eko Atlantic City in Lagos.
An impressive ground-breaking ceremony on the project, estimated at $537 million, was witnessed by Governor Babajide Sanwo-Olu, who was joined US Ambassador, Mary Beth Leonard, and US Consul General Claire Pierangelo.
Located on a 12.2-acre site in the rapidly developing Eko Atlantic City, the new US Consulate General in Lagos would support diplomatic and commercial relations between the United States and Nigeria and provide American and Nigerian Consulate employees with a safe, secure, sustainable, and modern workplace.
"When completed, it will be the largest US Consulate in the world, demonstrating the importance of the relationship between the United States and Nigeria," according to a statement issued after the ceremony by the Public Affairs Section of the U.S. Consulate General, Victoria Island, Lagos.
The new Consulate, the statement said, would directly benefit the Nigerian people, and throughout the project, an estimated $95 million would be invested in the local economy, with the project employing approximately 2,500 Nigerian citizens, including engineers, architects, artisans, construction workers, and administrative staff.
"These workers will have the opportunity to learn new technical skills and safety awareness that will help distinguish them in the local market," the statement said.
In her remarks at the ceremony, Leonard expressed appreciation to the federal government and Lagos State Government for their support.
"Our vision for this remarkable Consulate campus is to create a facility that both honours the vibrant relationship between the United States and Nigeria and communicates the spirit of American democracy, transparency and openness," Leonard added.
"Nigeria and the United States have a long-standing history of people-to-people engagement fostering bridges between our two nations. We look forward to the many accomplishments we will continue to achieve together in the future," Pierangelo said.
The new Consulate would provide a modern space for the largest consular operation in Africa, including improved public-facing interview and waiting areas.
The construction project targets Leadership in Energy and Environmental Design (LEED) Silver Certification --a globally recognised designation for achievement in high performance, best-in-class, green buildings -- and incorporates many features designed to make the building more sustainable.
Ennead Architects LLP of New York is the design architect, Pernix Federal, LLC of Lombard, Illinois, is the design/build contractor, and EYP, Inc. of Albany, New York, is the architect of record. The construction project would take approximately five years, with completion expected in 2027.This Day.
Kenya: Depositors From Three Banks Under Liquidation to Benefit From Payments From KDIC
Nairobi — The Kenya Deposit Insurance Corporation(KDIC)' has announced payments to depositors and creditors in collapsed Dubai Bank, Euro Bank, and Kenya Finance Bank as the State moves closer to winding up the lenders.
According to KDIC, this announcement comes after a successful recovery process and sale of assets from the three banks under liquidation.
These latest additional payments for the three institutions will now translate to 97, 93 and 92 per cent cumulative payments of claimants of Euro Bank Limited, Kenya Finance Bank Limited, and for Dubai Bank Limited respectively.
Addressing the press, KDIC Chief Executive Officer Mohamud A. Mohamud assured that the state agency will continue to dutifully discharge its resolution mandate in line with the provisions of the KDIC Act for the benefit of depositors and creditors.
"This payment is a demonstration of the Corporation's commitment to foster financial stability in the country, by ensuring the disfranchised depositors and creditors of the collapsed institutions receive their money as and when adequate funds are accumulated from the recoveries made out of the assets taken over from the institutions," said Mohamud.
The payments will be made over a period of one year from the date they are declared.
Depositors and creditors will be duly informed on how to lodge the claims through notices that will be published in the print media and KDIC platforms.
Mohamud further revealed that KDIC is currently overseeing the liquidation process of 19 institutions which are at different stages of the process.
"KIDC will continue strengthening the existing collaboration with other safety net players in the country, to avert any bank failure in the country through proactive and timely interventions," added Mohamud. Capital FM.
Tanzania, South Africa Tech Designers Meet in Dar
The three young designers in health, agriculture and animal husbandry from South Africa are in Tanzania for markets and joint ventures.
Similarly, three Tanzanian designers willgo to South Africa this month to promote their innovations after completing their research.
The Commission for Science and Technology (COSTECH), Director of Innovation and Technology, Dr Gerald Kafuku, told'Daily News' recently that they have to promote young people through the Tanzania-South Africa Partnership Project in creative and design.
"They are using the App to help pregnant women to ensure they get proper care and safe birth information from health professionals, and also have the technology assisting pastoralists to track their livestock history and regular market info," said Dr Kafuku.
Dr Kafuku said the project geared at bring together designers from Tanzania and South Africa through COSTECH and the South African Technology Innovation Agency (TIA).
Dr Kafuku said local designers have done research on animal feed that was based on used worms for nutrition, sell pesticides online as well as crop storage technology.
A Tanzanian designer, Mr John Method, said they use mobile phones, computer and tablet to connect companies which enable them to sell medicines to wholesale and retail customers. Daily News.
Tanzania: Tira Wants Banks to Seize Insurance Opportunities
The country banks and other financial institutions have plenty of opportunities to exploit in the insurance sector and spur immensely national socio-economic development.
The Commissioner of the Tanzania Insurance Regulatory Authority (TIRA), Dr Baghayo Saqware, said others should emulate CRDB Bank due to its support to the agriculture sector not only in finance but also designing insurance products for farmers.
"CRDB is giving the agriculture sector a great push," Dr Saqware saidwhen he visited the lender's headquarters yesterday.
He also said TIRA has put in place a strategy that will ensure insurance services and products reach targeted insurance stakeholders.
"When you think it is pertinent to make changes in your proposals so that we can work on them, tell us," TIRA Chief said adding "we are around for a simple reason, which is, to ensure the insurance sector grows steadily."
The CRDB Managing Director, Mr Abdulmajid Nsekela, said there was a need for re-introduction of "direct sales force or representative system" in order to broaden the scope for creating jobs for young people.
"If this system will be re-introduced, it will help increase jobs for college graduates in the insurance sector and also contribute to the sector's growth," he said.
The bank, one of the largest lenders in the country, has ventured into insurance sector as CRDB Insurance Broker.- Daily News.
Tanzania: TBL Opens 100+ Accelerator Applications
Tanzania Breweries Limited (TBL), a member of the Anheuser-Busch InBev group of companies, has invited innovators across the country to apply for the 100+ Accelerator programme to contribute towards addressing the country's sustainability challenges.
Launched in 2018, the 100+ Accelerator has worked with several leading global corporates to solve supply chain challenges across water stewardship, circular economy, sustainable agriculture, climate action, inclusive growth, and biodiversity.
TBL's Country Director, Jose Moran said in a statement that, this year's programme will be looking for innovative solutions that can scale quickly and make a significant impact on one or more challenge areas.
"We have seen the work the 100+ Accelerator has done to help passionate entrepreneurs solve pressing global challenges and bring their solutions to market faster.
This partnership is an opportunity to come together to accelerate progress for a more sustainable world, even as each company continues to strive for their independent sustainability goals," he said.
The 100+ Accelerator has over the years focused on start-ups that have a product in the market or are prepared to go to market.
Also, the Accelerator is particularly interested in supporting great teams, companies led by passionate entrepreneurs who have surrounded themselves with diverse talent that are in the best position to succeed.
Accelerator 100+ works with start-ups to solve global sustainability challenges related to water, circular economy, climate, agriculture, inclusive growth and biodiversity.
Once selected, participants will receive mentorship, training and up to 100,000 US dollars to implement a pilot project with some of the most well-loved brands in the world.
"Together with the local community in Tanzania, we have been collecting food waste to be turned into animal feed and organic fertiliser and the 100+ Accelerator campaign has played a huge role in supporting businesses finding solutions for some of the most pressing environmental and social challenges of our time," said Andrew Wallace,Chanzi Limited Quote. Daily News.
Nigeria's 3.4% GDP Growth Shows Investment in Infrastructure Working - Buhari
President Muhammadu Buhari yesterday said that the recent data released by the National Bureau of Statistics (NBS) that Nigeria's economy grew by 3.4 per cent in 2021 was a testament that his efforts at revamping the country's infrastructural base was working.
In his acceptance speech at the 7th Edition of the African Road Builders Conference and Trophee Babacar Ndiaye award in Abuja, Buhari stressed that the policies and programmes that had been inaugurated over the years were beginning to bear fruits.
The Babacar Ndiaye Africa Road Builders Award is organised by Acturoutes, an information platform on infrastructure and roads in Africa, and Media for Infrastructure and Finance in Africa (MIFA), a network of African journalists specialised in road infrastructure.
Sponsored by the African Development Bank (AfDB), the award was created in honour of Babacar Ndiaye, President of the AfDB Group from 1985 to 1995.
"Our most recent GDP results of 3.40 per cent, the biggest in the last seven years clearly show that the construction sub-sectors and related sub-sectors of the economy were among the big performers of the growth surge," the president said.
Buhari, who was represented by the Minister of Works and Housing, Mr Babatunde Fashola (SAN) expressed delight that Nigeria had begun playing her membership and leadership role in African institutions and in the pursuit of achieving their objectives.
The president stated that Nigeria's collaboration with the AfDB had been productive and results are now manifest in projects like the Mfum-Bamenda Bridge that connects Nigeria and the Republic of Cameroon.
He acknowledged the support of the bank in financing feasibilities, consultancies and pre-construction work on the Lagos-Abidjan corridor comprising Nigeria, the Republic of Benin, Togo, Ghana and Cote d'Ivoire which is part of Trans African Highway No. 7 from Dakar in Senegal to Lagos in Nigeria.
He listed the Lagos-Badagry corridor, Second River Niger Bridge, the Enugu - Abakaliki to Mfum Highway, the 375Km Abuja to Kano road, the Apapa-Oworonshoki Highway, the Suleja-Minna Highway, the Calabar-Itu-Odukpani Highway as some examples of over 13,000 kilometres of road and bridge construction, expansion and rehabilitation nationwide.
"They have been a major boost for the growth of our economy, keeping people at work; driving a supply value chain, stimulating productivity at quarries, cement factories, steel factories, and the petroleum sectors for lubricants, fuel and bitumen.
"Very evidently, infrastructure investment is good for the economy. By building roads, we are building economies," the president said.
Speaking on the Presidential Infrastructure Development Fund (PIDF), Managing Director of the Nigeria Sovereign Investment Authority (NSIA), Uche Orji, said projects worth about N1.52 trillion were ongoing nationwide, but had recently been reworked to about N1.26 trillion.
According to him, the ongoing projects are expected to have positive social and economic nationwide impact on the Nigerian economy, including creation of jobs and facilitation of poverty alleviation.
"The PIDF will complete four critical projects costing a total of $5.6 billion (N2.3 trillion). The financing of these projects has the potential to yield between 274, 000 and 616,000 new direct and indirect jobs.
"It will boost economic activity and spur an increase in investments, agriculture and trade between the commercial cities due to the improved and quicker access to market.
"The roads will significantly open the economic corridors leading to massive improvement in manufacturing, trading and commercial activities driven by the ease of movement of people, services and raw materials.
"They will drive economic growth through diversification: the increased economic activity will contribute to the growth and diversification of the Nigerian economy and attract investments to drive infrastructure development," he noted.
Quoting AfDB and the International Finance Corporation (IFC), Orji stated that for every $1.00 billion invested in infrastructure in developing economies, between 49,000 and 110,000 jobs are created.
Speaking on: "The Need for Road Investments and Effects on Energy Distribution," Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari said that in order to address the plight faced by petroleum product marketers in transportation which affects nationwide distributand, the NNPC recently keyed into the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
Under the scheme, he reiterated that the NNPC is providing funding to the tune of N621 billion for the rehabilitation of 1,804.6 Km of identified federal roads which are also critical to NNPC's operations spread across 15 states.
He explained that the benefits of NNPC's participation in the scheme include sustaining energy security through efficient distribution of petroleum products across the country and also improving other economic activities that are dependent on road transportation and social benefits
Kyari said that road infrastructure remains one of the most critical aspects of national development which unlocks many socio-economic benefits for the Nigerian citizens, adding that the NNPC will continue to play its role as an enabler. This Day.
Nigeria: Again, House Invites Kyari, Others Over State of Refineries
The House of Representatives Adhoc Committee investigating the state of refineries in the country has again invited the Group Managing Director of Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari to give account of the true state of refineries and the things needed to be done to function at maximum capacity.
The lawmakers had on March 24, invited Kyari; the Governor of Central Bank (CBN), Godwin Emefiele; Minister of Finance, Budget and National Planning, Zainab Ahmed, Minister of State for Petroleum Resources, Timipre Sylva to appear before it on Thursday, March 31.
The Committee had also extended the invitation to other relevant key government stakeholders including the Accountant-General of the Federation, Auditor-General of the Federation, Director General, Budget Office of the Federation, the Governor, Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Authority, the Port Harcourt Refining Company Limited (PHRC), the Kaduna Refining and Petrochemical Company Limited (KRPC), the Warri Refining and Petrochemical Company Limited (WRPC), National Bureau of Statistics (NBS) and Nigeria Extractive Industries Transparency Initiative (NEITI).
But at the investigative hearing, the relevant stakeholders were absent.
Chairman of the Committee, Hon. Ganiyu Johnson, said if they fail to appear at the next sitting, parliamentary action would be taken against them.
He expressed concern that despite the money spent fixing the country's refineries there had been no result.
Johnson added: "We do not want subsidy and if we do not want subsidy then the refineries must be working. We must find a way to make them work so we can refine locally. It is a shame. "So, I want to implore everybody, let us work together as Nigerians that we own this nation. We owe our people so we can end the issue of subsidy. That money for subsidy can be channeled to developmental projects if the refineries are working.
"On that note I want to say that the NNPC and the operators of the refineries, this is the last opportunity you would have. I am directing you that you should by next invitation show up otherwise we would take parliamentary against the NNPC and the operators of the refineries because we cannot continue like this.
"You expect the National Assembly to sit down and approve over N4 trillion just for subsidy. Money that should be used for something else. We cannot continue. We have to find a solution to this problem. We must find a way out. And the way out is for us to join hands and make sure those refineries are working." This Day.
Liberia - "AML Concerned About Status of Third Amended MDA"
ArcelorMittal Liberia has disclosed that it "has learned through unconfirmed media reports" that the House of Representatives has made appointments to the conference committee and some other decisions over the past few days regarding the company's third amendment to the Mineral Development Agreement (MDA), which is awaiting ratification by the Legislature.
However, contrary to the AML's claim that its MDA is awaiting ratification from the Legislature, the House of Representatives on March 28 returned the company's 3rd amendment of its existing concession agreement, valued at US$800 million, to the President for renegotiation.
The House, which has had a history of rubber-stamping nearly every concession agreement submitted by the presidency, took the unprecedented decision early that day to reject the agreement in its totality on grounds that it was "monopolistic."
Yet, the AML in a statement is saying that it is not aware that its MDA has been rejected; rather, the House made appointments to the Legislature "conference committee and some other decisions over the past few days regarding the company's third amended MDA, which is awaiting ratification by the Legislature."
"The Company believes that this amendment to the MDA is in the best interest of Liberia and its people, assigned on September 10, 2021, after more than 12 months of negotiations with the Government of Liberia," the company said in a statement. "AML remains committed to Liberia with its long-term investments that will deliver a project which will bring unrivaled and extensive economic and social benefits to the country for decades to come."
The statement added that for now, AML is awaiting all facts related to the actions by the Legislature before it will make any further statement on this matter.
The House's letter
In a letter to the President, accompanying the return of the AML's US$800 million agreement, the House expressed misgivings about the agreement, particularly the impact of the treaty between Liberia and Guinea on the ownership, operatorship, and users' rights of the Yekepa to Buchana railroad as enshrined in Article 3 of the treaty with Guinea.
The Daily Observer obtained a leaked copy of the House's letter, signed by Mildred Sayon, its chief clerk, which noted also that the proposed AML agreement essentially ignores key provisions of the Minerals and Mining Law of Liberia, particularly Article 6, Sections 6.1 to 6.3 and Section 5.3 of the Law.
"Mr. President, the Honorable House of Representatives conveys the following recommendations: That the government retains ownership of the railroads, port of Buchanan, and other related infrastructures; that the government initiates a recruitment process aimed at hiring an independent operator of the railroad to ensure non-discriminatory management of the Railroads and other related infrastructure," the letter from the House said.
"And any future renegotiation of this concession, other existing concessions, and new concessions gives consideration to the full application of all relevant laws including the Act creating the WASH Commission and the Land Rights Law," the letter continues. "And that future amendments of the AML MDA, other existing concessions and/or new concessions consider a role for the National Housing Authority to ensure standard and improved housing facilities for employees and their dependents."
'Exclusive rights'
The House, having received the proposed MDA on November 24, 2021, cited Article 3, Section 3(f), complaining that such clause gives the steel giant monopolistic control over Liberia's infrastructure assets; the port and rail infrastructure with the ability to use its exclusive rights to block other users' access to these sovereign assets.
Article 3, Section F of the revised MDA, entitled, 'The concessionaire's capacity as Railroad Operator', gives AML "the exclusive right to continue to serve as the operator of the Railroad during the term and any extended term of this agreement... " Section F(2) puts AML "in charge of daily operations for the benefit of each and all Users in accordance with Railroad System Operating Principles and the Multi-User Agreement (when it becomes effective)."
Section F(3) allows AML to form a wholly-owned subsidiary "for the purpose of recording all the costs, expenses, revenues and activities associated with the Railroad operation... " subject to certain conditions. The House, having received the proposed MDA on November 24, 2021, cited Article 3, Section 3(f), complaining that such clause gives the steel giant monopolistic control over Liberia's infrastructure assets; the port and rail infrastructure with the ability to use its exclusive rights to block other users' access to these sovereign assets.
Moments after the rejection of the ArcelorMittal deal, House Speaker Bhofal Chambers described the decision taken by the House plenary as the 'greatest achievement to humanity."
"All that we do is that we seek the best interest of the Liberian people," the Speaker said. "In the wisdom of Plenary, they have decided to... address the interest of our people. I think this is one of the greatest achievements of humanity -- to serve our people selflessly," Speaker Chambers noted. "Our concern is the act of beneficiation, value added to the process. So that is what we have cataloged and felt that in no way we can have the concession agreement being entertained here without the Executive not renegotiating."
The Government of Liberia and ArcelorMittal Holdings A.G. made and entered into MDA on August 18, 2005, which was ratified by the Legislature, signed by the President, and printed into handbills. The agreement has gone through two different amendments, on December 28, 2006, and January 23, 2013, respectively.
The 3rd amendment, which was signed on September 9, 2021, could pave the way for the expansion of the Company's mining and logistics operations in Liberia and allow ArcelorMittal to significantly ramp up production of premium iron ore, generating a significant number of new jobs and wider economic benefits for Liberia.
It includes the construction of a new concentrator plant and an expected substantial expansion of mining operations, with the first concentrate expected in late 2023, ramping up to 15 million tons per annum ('mtpa'). Under the agreement, the company will have reservations for expansion for at least up to 30mt while other users may be allowed to invest in additional rail capacity.
An analysis of the House of Representatives and the Senate's recommendations of the 3rd amended ArcelorMittal Liberia MDA is attached to this article. Observer.
Seychelles Plans to Activate Fisheries Harvest Strategy Policy By Third Quarter of 2022
Seychelles expects to set up a fisheries harvest strategy policy in the third quarter of 2022 that will allow relevant authorities to monitor, examine and manage the stocks of different species, a top government official said on Wednesday.
Key actors in the fisheries sector in Seychelles attended a training session on 'Seychelles' Fisheries Harvest Strategy Policy Guidance and Training' on March 30 being conducted by a British consulting firm - Poseidon.
"We are seeking to put this strategy into action, monitoring our own progress on a regular basis and seeking further information in guidance in areas that are new or innovative. Harvest strategy as a concept is a process of examining, planning to know exactly what to do depending on the state of our resources," said the principal secretary for fisheries, Roy Clarisse.
Seen as a global best practice in the fisheries sector, a harvest strategy is currently not covered in the existing legislative or policy frameworks of Seychelles.
A senior policy analyst at the fisheries department, Stephanie Radegonde, told SNA that such a policy is expected to provide Seychelles with a common standard across all fisheries.
"Our objective is to have a harvest strategy for all our fisheries, both commercial and non-commercial. We would like to see a standard that is similar in all fishery types in the country," said Radegonde.
"When a species has reached a point where the stock is depleting or when we have plans to increase activities in this fishery, then these harvest strategies come into place. From there we will know if we will put a pause or stop to this fishery to ensure that plans are developed to make improvements or conservation of our stock," she continued.
Stock assessments will be done regularly on different species, collecting information as the ministry progresses. Fisheries management units will be identified to develop a harvest strategy for each type of fisheries undertaken in Seychelles. This will include artisanal fisheries targeting demersal and semi-pelagic species, semi-industrial fisheries targeting pelagic species and industrial fisheries targeting species of tuna.
The policy is expected to be finalised by the end of April and presented to the cabinet for approval. The fisheries department is aiming to implement the policy by the third quarter of 2022.
The fisheries sector is the second top contributor to the economy of Seychelles, an archipelago in the western Indian Ocean. The sector comprises the industrial fishery, the small-scale and aquaculture as a subsector.-Seychelles News Agency.
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