Major International Business Headlines Brief::: 05 April 2022

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Major International Business Headlines Brief::: 05 April 2022 

 


 

 


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ü  Sri Lanka central bank to get new governor amid economic crisis

ü  Elon Musk becomes Twitter's biggest shareholder

ü  Cryptocurrency: UK Treasury to regulate some stablecoins

ü  Zomato and Swiggy: Indian food delivery unicorns face antitrust probe

ü  Nigeria: SIM-Nin Linkage - After Many Deadlines, 73 Million Unlinked Subscribers Barred From Making Calls

ü  Liberia: Pres. Weah Forms Cabinet Committee to Assess and Solve Roberts International Airport Electricity Dilemma

ü  Rwanda to Launch $350 Million Agriculture Financing Facility

ü  Tanzania: Geita Issues New Loan Rules As Repayment Drops Below 50pc

ü  The Africa Ceo Forum 2022 Edition Will Be Held In Abidjan, Côte d'Ivoire From June 13-14

ü  Tanzania: Tanesco Doubles Power Supply in Rukwa

ü  Tanzania: Dar es Salaam Stock Exchange Ends First Quarter On Positive Note

ü  Nigeria: Shun Unlicensed Financial Operators Offering Mouthwatering Returns On Investments - CBN to Nigerians

ü  Rwanda: Commercial Properties Lead in Non-Performing Loans

ü  Nigeria: IMF Proffers Way Out of Nigeria, Others' Monetary Policy Challenges

ü  Tanzania: Right Strategy Could Make Tanzania Giant Exporter of Ginger

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Sri Lanka central bank to get new governor amid economic crisis

Sri Lanka's central bank is set to name a new chief, as the nation faces its worst economic crisis in over 70 years.

 

P Nandalal Weerasinghe told the BBC that he will take up the position of the bank's governor on Thursday.

 

It came after the bank's head Ajith Nivard Cabraal offered his resignation on Monday, amid mass protests over rising living costs and power cuts.

 

The bank has also postponed an interest rate decision as policy makers try to stabilise the country's currency.

 

The Central Bank of Sri Lanka has not yet made an official announcement on Mr Weerasinghe's appointment. A spokesman for the bank told the BBC that it is waiting for confirmation from the country's president.

 

Speaking by phone from Australia, Mr Weerasinghe said that he had been offered the role and had accepted it.

 

"I'll take up the position of the governor of the central bank once I go back to Sri Lanka on the 7th [of April]," he said.

 

However, he declined to comment on any of his plans for Sri Lanka's crisis-hit economy or when a decision on interest rates would be made.

 

"I need to go back and see how it goes," Mr Weerasinghe said.

 

"But I've already started work," he added.

 

Mr Weerasinghe was the bank's deputy governor from September 2012 and left the role eight years later.

 

He is currently based in Australia, where he works as an independent consultant.

 

On Monday, the bank's governor, Mr Cabraal announced that he had submitted his resignation after all of the country's cabinet ministers resigned.

 

Angry protestors have also been calling for the country's prime minister and president to step down.

 

The island nation of some 22 million people is suffering from its most serious economic crisis since independence from the UK in 1948.

 

The central bank was due to make an interest rate decision on Tuesday but late on Monday postponed the announcement without giving a new date for the event.

 

Analysts had expected the bank to significantly raise its main interest rate as it attempts to stabilise the Sri Lankan rupee and curb the country's soaring rate of inflation.

 

Murtaza Jafferjee, chair of the Advocata Institute think-tank in Sri Lanka's capital, Colombo, said he expects the rate to be increased by least three percentage points at the bank's next monetary policy meeting.

 

"We are currently facing a massive crisis of confidence. A new finance minister, central bank governor and secretary to the treasury are welcome," Mr Jafferjee told the BBC.

 

"[But] with the public venting a lot of anger at the president, one is not sure how the new economic team can stabilise the ship if the public's anger is not subdued."

 

Demonstrators have taken to the streets of the capital Colombo as homes and businesses have had their electricity cut for up to 13 hours at a time.

 

Sri Lankans are also dealing with shortages and soaring inflation, after the country steeply devalued its currency last month ahead of talks with the International Monetary Fund over a bailout.

 

All 26 of Sri Lanka's ministers have submitted letters of resignation - but not Prime Minister Mahinda Rajapaksa or his brother, President Gotabaya Rajapaksa.-BBC

 

 

 

Elon Musk becomes Twitter's biggest shareholder

Elon Musk's Twitter posts have brought him to the attention of financial regulators.

Elon Musk has taken a 9.2% stake in Twitter, according to a US securities filing.

 

The announcement sent Twitter shares soaring by more than 27% in New York trading on Monday.

 

Tesla's chief executive owned 73,486,938 shares in the social media platform as of 14 March, according to the Securities and Exchange Commission.

 

The stake is worth $2.89bn (£2.2bn), based on Twitter's closing price on Friday.

 

It makes him the largest shareholder in the company, with more than four times the 2.25% holding of Twitter founder Jack Dorsey.

 

Mr Musk is a regular Twitter user with more than 80 million followers, although recently he said he is giving "serious thought" to building a new social media platform.

 

 

Late last month, Mr Musk asked his followers whether they thought the social media platform encouraged free speech.

 

"Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?"

 

He then asked: "Is a new platform needed?"

 

 

He regularly uses Twitter to share updates from the companies he owns - including SpaceX and Neuralink. He is also known for sharing memes, adding to his popularity among fans.

 

But some posts have drawn controversy.

 

Last year he tweeted in response to a claim, made by the head of the UN World Food Programme (WFP), that just 2% of Mr Musk's wealth could help to solve world hunger.

 

In October, Mr Musk said he would sell $6bn in Tesla stock and donate it to the WFP, provided it could describe "exactly how $6bn will solve world hunger".

 

Media caption,

Who is Elon Musk? Meet the meme-loving magnate behind SpaceX and Tesla...published in 2021

Mr Musk saw the valuation of his Tesla car company surpass a market value of $1 trillion last autumn, making it the fifth such firm to reach the milestone, after Apple, Microsoft, Amazon and Google-owner Alphabet.

 

Soon after he took to Twitter to ask users if he should sell a 10% stake in the electric carmaker.

 

More than 3.5 million Twitter users voted, with nearly 58% voting in favour of the share sale leading to Musk selling around $5bn (£3.7bn) of shares in the firm in November.-BBC

 

 

 

Cryptocurrency: UK Treasury to regulate some stablecoins

The Treasury has announced that it will regulate some cryptocurrencies as part of a wider plan to make the UK a hub for digital payment companies.

 

So-called "stablecoins" will become recognised forms of payment to give people confidence in using digital currencies, it said.

 

Stablecoins are designed to have a stable value linked to traditional currencies or assets like gold.

 

They are considered less volatile than cryptocurrencies such as Bitcoin.

 

The Treasury also said it planned to consult on regulating a much wider range of digital currencies later this year, without saying which they might be.

 

Chancellor Rishi Sunak said: "We want to see the [cryptocurrency] businesses of tomorrow - and the jobs they create - here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term."

 

The Treasury has not yet confirmed which stablecoins will be regulated; well-known ones include Tether and Binance USD.

 

Stablecoins are currently used in the United States to facilitate trading, lending or borrowing of other digital assets.

 

However, they are not without controversy. Tether, a Hong Kong based company, has faced questions over its business practices and was fined $41m in 2021 by the US Commodities Futures Trading Commission for allegedly misstating its reserves.

 

The UK's Treasury said regulating stablecoins would ensure they could be used "safely" by the public.

 

Cryptocurrencies are virtual or digital currencies that can be traded or used to buy goods and services, although not many shops accept them yet and some countries have banned them altogether.

 

They are exchanged via "peer-to-peer" transactions, meaning there are no banks or other third parties involved.

 

Wild fluctuation in the value of some digital currencies has led regulators to warn they pose risks. However, they are increasingly going mainstream, with major financial companies now investing in them.

 

Meanwhile, Tesla founder Elon Musk, the richest person in the world, has voiced his support for virtual currencies and said Bitcoin is a "good thing".

 

NFTs

Separately, the Treasury said it will ask The Royal Mint to create a Non-Fungible Token (NFT) this summer.

 

NFTs are assets in the digital world that can be bought and sold, but which have no tangible form of their own.

 

The digital tokens, which emerged in 2014, can be thought of as certificates of ownership for virtual or physical assets. NFTs have a unique digital signature which means they cannot be copied or replicated.

 

UK Financial Services Minister John Glen said the UK saw "enormous potential in crypto" and had a "detailed plan [for] harnessing the potential of blockchain and supporting the development of a world-best crypto ecosystem".

 

"What does the future of crypto here in the UK look like? No-one knows for sure," he said in a speech.

 

"But we think that by making this country a hospitable place for crypto we can attract investment [and] generate swathes of new jobs."

 

Financial and environmental concerns

Regulators are racing to draw up rules to manage cryptocurrencies amid concern that their growing popularity could threaten established financial systems.

 

In December, the Bank of England's deputy governor said that while only about 0.1% of UK wealth was currently held as digital assets, that proportion was growing quickly.

 

Sir Jon Cunliffe told the BBC that if the value of cryptocurrencies fell sharply, it could have a knock-on effect.

 

Meanwhile, the US is moving to craft regulations amid rising concern that the cryptocurrency industry is a haven for criminals.

 

The process of generating digital coins via banks of powerful computers, called mining, is also highly energy intensive. Recent research suggests Bitcoin now generates carbon emissions comparable to the country of Greece.

 

Mr Glen admitted there were concerns about the environmental impact and said the government "will be looking closely at energy usage associated with certain crypto-technologies".-BBC

 

 

 

 

Zomato and Swiggy: Indian food delivery unicorns face antitrust probe

Two Indian food delivery unicorns are being investigated for alleged unfair business practices, the country's antitrust watchdog has said.

 

Zomato and Swiggy dominate the fast-growing market in India with a combined share of 95%.

 

The order to investigate the firms has come months after the National Restaurant Association of India (NRAI) filed a complaint.

 

The companies have not commented on the investigation.

 

However, the firms had reportedly denied the allegation when the NRAI filed the complaint to the Competition Commission of India (CCI) in July last year.

 

The NRAI, which represents more than 500,000 restaurants across India, had asked the CCI to investigate the two companies for allegedly providing priority to some eateries.

 

The association has also alleged that the two companies provide discounts after charging "exorbitant commissions" from restaurants.

 

It added that the commissions were too high for restaurants to sustain.

 

The CCI said the firms' agreements with restaurants could create "entry barriers for new platforms, without accruing any benefit to the consumers".

 

Swiggy, backed by SoftBank, raised $700m in funding earlier this year, doubling its valuation to $10.7bn. Zomato, which went public last year, attracted bids worth $46.3bn and it was more than 38 times oversubscribed.

 

The two firms are among some of the fastest-growing start-ups in India, which has been producing unicorns, private firms valued at over $1bn (74.5bn rupees), at a rapid pace.-BBC

 

 

 

Nigeria: SIM-Nin Linkage - After Many Deadlines, 73 Million Unlinked Subscribers Barred From Making Calls

A total of 73 million active mobile lines in Nigeria will not be making calls from today.

 

This follows the federal government's directive to telecommunications companies to restrict outgoing calls on unlinked mobile lines following the expiration of the extension for the integration of the National Identification Number (NIN) and the Subscriber Identification Module (SIM) on March 31, 2022.

 

The directive was contained in a joint statement issued yesterday by the director of public affairs of the Nigerian Communications Commission (NCC), Dr. Ikechukwu Adinde, and the head of Corporate Communications of the National Identity Management Commission (NIMC), Kayode Olagoke. They said the directive took effect from midnight on Monday, April 4.

 

According to the statement, the minister of communications and digital economy, Isa Ali Pantami, reported that during the exercise over 125 million SIM cards had so far had their NINs submitted for immediate linkage, verification and authentication. Similarly, NIMC had issued over 78 million unique NINs till date.

As of the end of February 2022, active GSM lines hit 197, 768, 482; total active lines were 198, 123, 431, while the total number of connected GSM lines stood at 303,636, 267 according to data from the NCC.

 

President Muhammadu Buhari had given the directive for the implementation and commencement of the exercise in December 2020 as part of the administration's security and social policies. The deadlines for the SIM-NIN linkage had been extended on multiple occasions to allow Nigerians and legal residents to freely comply with the Policy.

 

Reacting to this development, former president of Nigeria Internet Registration Authority (NiRA), Sunday Folayan, told LEADERSHIP that federal government's decision to order telecoms companies to restrict outgoing calls for telephone lines yet to comply SIM-NIN linkage policy from April 4, 2022, is a good decision, but has implications on the economy.

Folayan said the enforcement of the government's directive will force Nigerians who are yet to register their NINs, and link their NINs to their SIM cards, to do so.

 

He further stated that when all Nigerians had linked their NINs to their SIM cards, it will indirectly improve security in the country, adding that it can help in tracing where a call from a registered SIM is coming from.

 

"It is difficult to trace a call from an unregistered SIM, but if all SIM cards are registered and linked to NIN, it will be easier to trace the call. One of the reasons the government wants Nigerians to follow that directive of linking their SIMs to NIN was because it can help improve security in the country," he added.

 

As for the economy, Folayan disclosed telecoms operators may experience losses at this moment due to the fact that people will not be able to place calls if their SIM cards are restricted.

"If they can't make calls, there is no point buying call credits, thereby leading to huge losses to the telecom operators," he explained, adding, however, this is just temporary as more Nigerians will see the reason to register their NINs and link their SIM cards to their NINs.

 

For smooth NIN registration, Folayan advised NIMC to ensure that they boost their capacity to accommodate Nigerians who are yet to register their NINs.

 

"In the next few days, NIMC will experience crowds at their various centres, considering the number of Nigerians who are yet to register their NINs.

 

"I would advise that NIMC should boost their capacity to accommodate the crowds. Also, while unregistered SIM cards are restricted to make calls, NIN registration should be an ongoing exercise, so that more Nigerians can still have the opportunity to register their NIN and link it to their SIMs whenever they can," he said.

 

The president, Association of Telecommunications Companies in Nigeria (ATCON), Engr. Ike Nnamani, told LEADERSHIP that the deadline for people to register their SIM cards had been extended several times in the past and that people were still encouraged to register.

 

"We will still encourage people to go and register their SIM and link to NIN. There is a security implication when we have unregistered SIM cards in the system," he added.

 

On his part, a well-placed voice in the industry, who does not want his name on print, however noted that much as the government has made efforts to encourage people to integrate their SIM cards with their NINs by extending several deadlines, it would be harsh to begin to cut off the lines of people.

 

He advised the government to incentivise the process and take minimal measures instead of the outright restrictions on people's lines.

 

He said, "If you want the digital economy to be in the mainstream, it is a good idea but sometimes the way we go about implementing it may not be sensitive to people's situation. However, the government has tried so much by giving several deadlines, and if you continue to break deadlines, it undermines even your own authority and integrity.

 

"When you want to implement this kind of programme, you make it the interest of people. Sometimes you can incentivize people constructively. I am not sure this cutting of lines will be good because people sometimes have emergencies. There is no wisdom in completely blocking somebody's line; it is harsh."

 

On whether the SIM-NIN integration had solved the lingering issue of insecurity in the country, public intellectual, Dr. Katch Ononuju, told LEADERSHIP that the exercise seems to have failed in that aspect, which he blamed on President Buhari's government.

 

"No, we have not achieved this because the Nigerian government has not developed the political will to curb the crisis. The SIM-NIN linkage has been used to zero-in on the position of the terrorists, the problem is the absence of political will on the part of President Buhari to allow the military to do the needful," he said.

 

Meanwhile the Association of Licensed Telecommunication Operators of Nigeria (ALTON) has issued a statement confirming that they received formal instructions from the NCC to bar out-going calls on subscriber lines that are not in compliance with the SIM-NIN linkage policy.

 

ALTON chairman said ALTON members would comply with the instructions even as he called on telecommunication subscribers who had not obtained and linked a NINs to their SIMs to do so at any of the designated centres.

 

In a related development, the NCC has strongly warned telecoms subscribers to ensure they do not allow their NINs to be linked to another person's SIM cards, no matter how close the person is to them.

 

The NCC gave the warning during a radio programme on 'the Benefits of SIM-NIN Integration' recently.-Leadership.

 

 

 

 

Liberia: Pres. Weah Forms Cabinet Committee to Assess and Solve Roberts International Airport Electricity Dilemma

Monrovia — The Minister of State for Presidential Affairs, Nathaniel McGill, has said that President George Weah is concerned about the current state of the Roberts International Airport (RIA) and efforts are being exerted to address the situation.

 

The RIA, headed by its Acting Managing Director Martin Hayes, has been faced with serious operational constraints, making it difficult for the airport to be lighted during the night hours.

 

As part of immediate priorities, Minister McGill stated that a special cabinet team would work with the airport authorities to make swift interventions.

 

He named some of the prompt interventions as the working of the air navigation system which has not been changed for over 25 years, the improvement of stable electricity including another source of power, a solar system as well as the increase in fire system equipment among others.

 

"The RIA Management has been working on it already but we will work with them now to accelerate the process due to the importance, the President attaches to the issue", he added.

 

Speaking about the apron at the RIA, he disclosed that the apron unfortunately was never a priority when the construction of the airport was done.

 

Moreover, he emphasized that the jet bridge is, unfortunately, sitting on the apron which is now sinking.

 

According to him, the government is looking at a workable and holistic approach to the issue and will not shift blames on anyone.

 

"A lot of people up to press time believe that $USD 55M was spent on the airport and the reality is that the system has been broken down with the exit of the Chinese after the expiration of their two years contract."

 

However, he pointed out that as part of the government's new plans, they will sign a new contract with the Chinese to ensure that they help train Liberians for the process.

 

Minister McGill put the cost of the project at around 22 to 23 million within a period of six to seven months, especially with the involvement of the legislature.

 

For his part, Finance Minister Samuel Tweah said the airport ran on generators for about 15 years, which he said is unacceptable in this 21st century.

 

He said the government is committed to addressing the problem which he said would set yet another unprecedented record for the Liberian leader. "We are now under obligation to look for money where we did not even budget for it especially when resources are scarce," Minister Tweah said.

 

Commenting on the security situation at the airport, Justice Minister Cllr. Frank Musa Dean urged Liberians not to panic as the joint security has put in place the necessary measures to avert any security threat.

 

Providing some technical information about the issue, the Board Chair of RIA, Musa Shannon, disclosed that recent the issue at the airport has now been addressed.

 

Most of the issues at the RIA surround power outage and at the moment, it has been taken care of, Shannon added.

 

"The airport is everybody's business and it is in good hands", he assured the public.- FrontPageAfrica.

 

 

 

Rwanda to Launch $350 Million Agriculture Financing Facility

The government is expected to start an agriculture facility with an initial investment of $350 million (about Rwf350 billion), Prime Minister Edouard Ngirente has said, indicating that it will help provide farmers loans at less than 10 per cent interest rate.

 

The Premier said that this is an initiative Rwanda is going to implement in partnership with the World Bank, indicating that it will start in the second half of this year.

 

He made the disclosure on Monday, April 4, while responding to MPs' concern that loans to agriculture were being charged at high interest rates - of around 18 per cent per year, which is hurting the profitability of farmers.

It was during a session in which the Premier was presenting the government actions related to agriculture inputs to the plenary session of both Chambers of Parliament.

 

Ngirente said that the project will help address the issue.

 

Prime Minister Edouard Ngirente presents the government actions related to agriculture inputs to the plenary session of both Chambers of Parliament on April 4. Courtesy

 

"This is a major agriculture facility we are going to have in Rwanda," he said. "This project will have a component to ease lending to agriculture. We set a target to ensure that loans to agriculture get charged a single-digit interest rate so that farmers get affordable loans under that programme."

 

Farmers have been pushing for the creation of an agricultural development bank, citing rigorous and prohibitive terms to access credit from commercial banks.

 

Affordable loans would come in handy in helping farmers to purchase seeds and fertilisers, as well as employing irrigation technologies which are essential for increased productivity.

 

"Banks give loans to farmers at 18 per cent interest rate and above. There should be ways to grant affordable loans to farmers based on their needs such as through establishing an agriculture bank if need be," said MP Anitha Mutesi said.

 

Ngirente said that the aforementioned facility will start as a public project helping farmers to get access to finance, but as they repay loans, the fund will become sustainable and ensure continuity of agriculture financing.

 

"This is a project we carefully planned so as to help farmers have access to low-cost interest rates because we know other constraints that affect the agriculture sector," he said.

Addressing low lending to agriculture

 

For a sector that accounts for about a third of the country's GDP and employs about 70 per cent of its workforce, various sector players have been arguing that it needs a special bank to unlock its potential.

 

This is the case because the sector gets only 5.2 per cent of total loans disbursed by financial institutions in the country. Rwanda targets to double this agriculture sector lending to 10.4 per cent by 2024.

 

Low lending to the sector was partly attributed to various risks associated with agriculture such as crop and livestock diseases, drought and floods that adversely affect yields.

 

Some argued that even in the absence of an agriculture banks, the Government could do more in terms of mobilising more resources to support agriculture financing.

 

According to farmers, normally, they have to repay a loan on a monthly basis, yet they get money from their produce after a season (about four to six months), adding that the current payment terms were a challenge to them.

 

Senator Laetitia Nyinawamwiza said that though some members of the private sector were willing to venture into agriculture, financial institutions were not facilitating them enough in terms of financing.

 

"Farmers and businesspeople (those engaged in commerce) were not being treated equally in terms of access to loans. There were delays in the provision of loans to farmers yet they grow according to farming seasons. There is a need for an agribusiness desk which ensures that farmers get timely loans," she said, wondering whether there were plans to set up an agriculture bank.

 

Rwanda's agricultural exports generated over $543 million (about Rwf543 billion) in 2021 compared to over $390 million in 2020, representing an increase of 39 per cent, according to statistics published in February this year by the National Agricultural Export Development Board (NAEB).-New Times.

 

 

 

Tanzania: Geita Issues New Loan Rules As Repayment Drops Below 50pc

Geita Town Council has set up new regulations for accessing special group loans after repayment fall to less than 50 per cent.

 

The town council said, for instance, has issued 470m/- loans to special groups--youths, women and people living with disability (PLWDs)--but repayment was merely 200m/- which is less than half between last July and March.

 

Thus, borrowers under the new guidelines for special groups' have to produce two guarantors who would be accountable if a group fails to repay the loan.

 

Geita Town Council Youth Development Officer, Zengo Pole, said the new guidance and management system for monitoring and evaluating the returns are in place starting yesterday when presenting 200m/- cheque for 33 groups.

"The council reviews the regulations after dishing out a number of loans but repayment was slow and a big challenge... .

 

"The council that way ends up losing a lot of money which was supposed to serve others under the special groups," Mr Zengo said.

 

Mr Zengo said the experience and loan repayment challenges opened the council eyes thus reorganised follow-up systems by cooperating with all the ward and council development officers while streamlining its focuses on borrowers.

 

The loans to 33 groups met the special group borrowing criteria for the third quarter of 2021/2022 fiscal year. The groups were 15 youth, 16 women and two with disabilities.The 200m/- was part of 10 per cent of the council's revenuesfor this fiscal year.

 

Others measures to safe guard the council's fund is to involve experts from various sectors including veterinary, trade and agricultural who will provide business and finance education, among others methods.

 

"Our policy is, when a group timely repaid the loan warranting an opportunity for applying another large amount loans," he said.-Daily News.

 

 

 

The Africa Ceo Forum 2022 Edition Will Be Held In Abidjan, Côte d'Ivoire From June 13-14

The 2022 edition of the AFRICA CEO FORUM, the largest annual event dedicated to private sector development in Africa, will be held on June 13-14, 2022, in Abidjan, Côte d’Ivoire. At a time when the world is recovering and rebuilding from COVID-19, and 10 years after its first edition, the event will focus on proposing new routes for African growth.

 

Vaccine production, disruption of supply chains, digitalization of economies, energy transition and the health crisis brought on by COVID-19 have accelerated the transformation of economies towards new models.

 

The 2022 event is scheduled to happen in-person for the first time since 2019 and will welcome more than 1,000 business and government leaders, including Alassane Ouattara, President of the Republic of Côte d’Ivoire ; Macky Sall, President of the Republic of Senegal ; Mohamed Cheikh El Ghazouani, President of Islamic Republic of Mauritania ; Mohamed Bazoum, President of the Republic of Niger ; Yemi Osinbajo, Vice President of the Federal Républic of Nigeria ; Ralph Mupita, CEO of MTN ; Abdul Samad Rabiu, Executive Chairman of BUA Group ; Soren Toft, CEO of MSC, Abdul Samad Rabiu, Executive Chairman, CEO of BUA Group ; Delphine Traore, CEO of Allianz Africa ; Rita Zniber, CEO, Diana Holding ; Ade Ayeyemi, CEO of Ecobank ; Alioune Ndiaye, CEO Orange Middle East & Africa ; Anne Rigail, CEO Air France, and many key opinion leaders from across Africa and the world to discuss policies and practices that will help shape the future of African economies.

 

The event is co-hosted by Jeune Afrique Media Group and the International Finance Corporation (IFC). For more information and registration see: https://lc.cx/mw9vbW 

 

“The world has entered a complex and probably long-lasting period of economic and political tensions that require our continent to question its growth model. In such a context, we must imperatively place sovereignty at the heart of our projects and propose new paths for African prosperity: green growth, industrial transformation, the digital economy, and the public-private dialogue,” said Amir Ben Yahmed, President and Founder of the AFRICA CEO FORUM.

 

“COVID-19 has presented a formidable challenge to Africa’s economies and its people, but both have proved resilient, and the focus now is shifting towards recovery. Although much turbulence still lies ahead, the time is now for Africa to tap into its strengths and fully mobilize new and emerging drivers of growth in order to emerge stronger from the pandemic. IFC’s support for the AFRICA CEO FORUM underscores our commitment to mobilize private sector partners around a common goal: building a better, greener and more inclusive future for Africa,” said Makhtar Diop, IFC’s Managing Director.

 

The AFRICA CEO FORUM has been the main meeting place for CEOs, global funds, and African governments for the past 10 years. During the last physical edition of the Forum in 2019, over 1,500 decision makers, including 700 CEOs, gathered in Kigali, Rwanda.

 

This year, the AFRICA CEO FORUM will feature case studies, expert testimonies, workshops, working groups, and innovative new formats, including an arena for participants to reflect and exchange around strengthening African economic sovereignty.

 

Also included in the program are the AFRICA CEO FORUM Awards, which recognize the continent’s most proactive companies, and personalities. This year, the event will also open its doors to 20 of the leading African startups through the Disrupters Club initiative.

 

About the AFRICA CEO FORUM

 

Founded in 2012, the AFRICA CEO FORUM is the leading platform for CEOs and shareholders of the largest African and international companies, global funds, heads of state, ministers and representatives of the main financial institutions active on the continent. Throughout the year, it brings regular digital events, reports, insights to its community. Through its various initiatives (Women Working for Change, Family Business Initiative, the Disrupters Club), the AFRICA CEO FORUM works to increase the representation of women in decision-making positions on the continent, to accelerate family-owned enterprises growth, and to support the development of a new generation of innovators.

 

Undoubtedly the place of high-level meetings, experience sharing and deciphering trends affecting the business world, the AFRICA CEO FORUM Annual Summit aims to propose concrete and innovative solutions to move the continent and its businesses forward. The AFRICA CEO FORUM was created by Jeune Afrique Media Group and is co-hosted by IFC, a member of the World Bank Group.

 

Information and registration: https://lc.cx/mw9vbW 

 

Follow us on social media #ACF2022

 

https://twitter.com/africaceoforum 

https://www.facebook.com/THE-AFRICA-CEO-FORUM-240363862988935/ 

https://www.flickr.com/photos/theafricaceoforum/albums 

 

About IFC

 

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org .

 

 

 

Tanzania: Tanesco Doubles Power Supply in Rukwa

Tanesco in Rukwa has doubled power capacity supply thanks to the completion of a 3.8bn/- project ending the over six months' power rationing in the region.

 

The project to construct a 15 Mega Volt-Amp (MVA) was completed last week upping power the supply in the region to 30MVA.

 

Rukwa'sTanesco Regional Customers Officer,Ms Mwajuma Rubibi, told the 'Daily News' the transformer will further step up and improve quality and power supplywhich their customers failed to enjoy in more than six months ago.

 

"The new transformer would generate sufficient power to supply the whole of Rukwa and some parts of Mlele District in Katavi region," Ms Mwajuma said.

Before the completion of the new transformer, Rukwa, which receives power 98 kilometres from Mbala Township in neighbouring Zambia, had at Sumbawanga Town with a capacity of 15 MVA.

 

The region had experienced rationing of power over six months when the 10 kilovolt-amperes (KVA)transformer broke down beyond repair.

 

Recently, Rukwa Regional Commissioner Mr Joseph Mkirikiti said plans are under way for Tanesco to connect Sumbawanga municipality to the nation grid stretching from Makambako in Njombe through Tunduma in Songwe.

 

"The 400 [Kilovolt] KV double lines which will connect Sumbawanga under a backbone transmission project,"said the RC.

 

The project is funded by the World Bank (WB) and the procedure of scouting for the contractor has started.

 

Equally, the region has four oil-powered generators which had been installed in Sumbawanga substation and have the capacity of generating 3.75 Megawatts (MW).-Daily News.

 

 

 

Tanzania: Dar es Salaam Stock Exchange Ends First Quarter On Positive Note

THE DSE bourse has closed the first quarter of 2022 (Q122) on a positive note. The total turnover generated on the trading of stocks for the first quarter amounted to TZS 34.9Bln ($15.17Mln) which is a 48.9% jump from TZS 23.3Bln that was generated in the first quarter of 2021(Q121).

 

Furthermore, the volume of socks traded also improved by over 12% from 36.8million shares traded in Q121 to 41.4million shares traded in the current quarter. Both total market capitalization and domestic capitalization rallied during the quarter.

 

The total market capitalization ended the quarter at a TZS 16.14Trn ($7.02Bln) mark, being about 5% up from TZS 15.36Trn of Q121. Similarly, the domestic market capitalization reached TZS 10.23Trn ($4.45Bln) about 10% up from TZS 9.25Trn ($4.02Bln) in a similar quarter last year.

This growth was in tandem with the market Indices, All Share Index (DSEI) and Tanzania Share Index (TSI). The DSEI gained 87 points and closed the quarter with 1,936.45points while the TSI added some 350 points and closed the quarter with 3,868.19 points. From the trend, it is clear that the domestic market was more bullish than the combined market which includes cross-listed counters.

 

The top gainer for the quarter was TCCL (Simba cement) which went up about 65% closing the quarter with a share price of TZS 1,820 up from TZS 1,100 at the beginning of the quarter, TCCL moved a total of 288,000 shares worth TZS 355Mln.

 

Following closely was NICO, which also went up 57% from TZS 300 per share at the beginning of the quarter to TZS 470 at the quarter-end. Other gainers included CRDB, NMB, TPCC, DSE and DCB counters.

CRDB went up 37% and closed the quarter at TZS 385 per share, NMB went up 35% and closed at TZS 2,700 per share, TPCC up 20% and closed at TZS 4,100 per share, DSE up 13% and closed at TZS 1,480 per share and DCB stock which also went up 2% to close the quarter at TZS 195 per share.

 

Notwithstanding the bullish trend, the domestic market has recorded for this quarter, a few counters from the domestic market had an opposite reaction.

 

JATU was the top loser, investors on this name have had a challenging quarter, as the counter was pushed 51% down to TZS 200 per share at the close of the quarter. Similarly, MCB (Mwalimu Commercial Bank) also decline significantly, to TZS 395 per share, about a 21% dip.

 

The cross-listed market was generally bearish during the quarter, only National Media Group (NMG) stock had a positive move during the quarter, the counter was up 8.11% to TZS 400 per share compared to TZS 370 at the start of the quarter the rest of the counters were in the red.

Jubilee Holdings (JHL) was the top loser, declining by 15% from TZS 6,450 to TZS 5,450 at the end of the quarter, EABL also went down 10% to close at TZS 3,000 from TZS 3,360 and KCB which was down 4% from TZS 920 to TZS 880 at the end of the quarter.

 

The activity trend during the quarter pinpoint foreign investors as the net buyers while local investors were net sellers. Overall activities on the bourse were led by foreign investors on both, the buy and sale sides while local investors lagged closely.

 

Foreign investors bought a total of TZS 24.13Bln ($10.5Mln) worth of shares and sold TZS 19.65Bln ($8.5Mln) worth of shares. Local investors, on the other hand, bought shares worth TZS 10.78Bln ($4.69Mln) and sold shares worth TZS 15.26Bln ($6.63Mln.

 

This equates to foreigners contributing to 69.12% on the buy-side and 56.29% on the sell side, while locals accounted for 30.88% on the buys side and 43.71% on the sell-side.

 

Money Market, Bonds

 

The Bank of Tanzania had conducted a total of 13 treasury securities auctions comprising Treasury bonds and Treasury bills. The majority of these auctions were highly successful, meaning the Bank got the funds that they had offered to raise. On behalf of the government, the central bank had collected a total of 1,272.17Bln ($0.5Bln).

 

The prices for the treasury securities have kept on climbing which puts pressure on the yields and as a result, the yields kept on plummeting. The funds that the government was able to raise were just about a third of what the public tendered, through all the auctions administered the public tendered a total of TZS 3,544.7Bln ($1.54Bln).

 

On the secondary bond market, the market recorded a total face value turnover of TZS 922Bln ($0.4Bln) while the transaction value for the traded bonds was TZS 1,104.2Bln($0.5Bln).

 

The secondary market transactions were mostly on premium prices hence the higher transaction value compared to the face value. The Interbank cash Market (IBCM) was relatively inactive during the quarter as compared to Q121.

 

The volume traded on the quarter was just TZS 419Bln ($182.17Mln) against TZS 1,085Bln which was traded similar quarter last year. During this quarter activity on the Interbank market slowed down significantly, this is partly due to the accommodative monetary policy which has stuffed banks with sufficient liquid as a result volume traded on the Interbank market declined.

 

The Interbank rate, on the other hand, remained relatively similar, the average rate for the current quarter was 3.08% against 3.84% for q121. Both quarters closed with a rate of 4%.

 

Currency Market

 

The Interbank Foreign Exchange market (IFEM) during the quarter has traded a total of TZS 81Mln while the weighted average Exchange rate during the quarter for USD/TZS was at TZS 2,309.61. The TZS has slightly weakened by 0.04% against the dollar, opened the quarter at TZS 2,308.98 and closed at TZS 2,309.99.-Daily News.

 

 

 

Nigeria: Shun Unlicensed Financial Operators Offering Mouthwatering Returns On Investments - CBN to Nigerians

Many Nigerians have fallen victims to such firms that offer up to 100 percent return on investments to unsuspecting people.

 

The Central Bank of Nigeria (CBN) has advised Nigerians to shun unlicensed financial operators offering mouthwatering returns on investments.

 

Many Nigerians have fallen victims to such firms that offer up to 100 percent return on investments to unsuspecting people. The firms, usually online with no physical office, disappear after receiving the investment sums from hundreds of people.

 

Some of the perpetrators of such firms, including those called wonder banks, have been arrested and prosecuted by relevant authorities.

On Monday, the CBN, through its Financial Services Regulation Coordinating Committee (FSRCC), advised Nigerians to stop dealing with such firms.

 

In a statement posted on its website on Monday, the CBN said the illegal financial operators lure and defraud unsuspecting members of the public by offering extraordinary returns on investments as bait.

 

It also described the increasing activities of Illegal Financial Operators (IFOs) as worrisome, saying it portends a grave risk to public confidence and the stability of the Nigerian financial system.

 

"The FSRCC in its continuing efforts to end the scourge of IFOs in Nigeria, hereby issues the following advisory:

 

"The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.

 

"Members of the public are advised to visit the websites of the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.

 

"You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies."

 

It assured that financial regulatory agencies shall continue to carry out all necessary due diligence before registering or licensing any operator under their regulatory purview.

 

"In addition, Agencies shall refer to relevant supervisory authorities for confirmation before finalising on any registration/licensing application," the statement said.

 

It encouraged member agencies to engage in regular sensitisation campaigns on the threats posed by the activities of illegal financial operators.

 

It also urged the general public to address further enquiries to the Director, Financial Policy and Regulation, Central Bank of Nigeria, and/or the Executive Commissioner, Legal and Enforcement, Securities and Exchange Commission.-Premium Times.

 

 

Rwanda: Commercial Properties Lead in Non-Performing Loans

Commercial properties are leading among industries with the highest Non-Performing Loans (NPLs) ratio, according to data from the Central Bank.

 

In the Monetary Policy and Financial Stability Statement released last week, the Central Bank noted that commercial properties lead with a 19.1 per cent NPL ratio as of December 2021.

 

Kasai Ndahiriwe, Director of the Monetary Policy Department, explained that the highest NPL ratio results from the shock of Covid-19 where most commercial buildings were not able to receive rentals or lost their tenants which led to their failure to pay their due loans.

According to the regulator, NPLs ratio slightly increased in 2021 to 4.6 per cent from 4.5 per cent in 2020 against the benchmark of 5 per cent. The outstanding NPLs amount increased by 19 percent to Rwf158bn from Rwf133bn in 2020.

 

However, the NPL ratio is a drop from 5.4 per cent recorded in the previous three quarters of 2021 which reflects the higher growth of gross loans relative to the growth of NPLs as well as the significant write-off of overdue loans.

 

In 2021, banks wrote off loans amounting to Rwf75bn compared to Rwf22bn in 2020.

 

A loan write-off is an action taken by the lender when the chances of loan recovery are almost zero and its assets are non-performing. This enables the bank wishes to maintain a clear record of the unrecovered loan amount in their balance sheets.

 

This, however, does not mean the trials for recovery will cease.

The sectors that had the highest written-off loans include trade, public works contractors as well as commerce.

 

On the other hand, the banking sector noted a 34 per cent increase in provisions for bad debt to Rwf189.5 billion in December 2021 from Rwf141.3 billion in 2020, this is a step taken by banks to remain prudent in anticipation of future shocks.

 

Central Bank Governor, John Rwangombwa said that normally the big increase in provisions of bad debt would shake the profitability of the banking industry, but they were able to absorb the big amount written off loans and remained strong due to the retention of profit and increased injection of capital by shareholders.

 

The banking sector's aggregate net profit increased by 53.6 per cent to Rwf125.5 billion in 2021 from Rwf81.7 billion in 2020. From the stability perspective, improved profitability enhances the resilience of banks through internally generated capital to buffer against shocks.

 

Insurance sector made a net profit of Rwf63.6bn, an increase from Rwf52.4bn in the previous year. Microfinance sector recorded a profit of Rwf8bn from Rwf5.1bn in 2020.

 

In the banking sector, credit exposures to pandemic sensitive sectors namely; trade, commercial real estate, hotels and transport sectors remain amongst its major risks.

 

Combined credit to those highlighted sectors accounted for 46.2 per cent of total loan portfolio of the banking sector in December 2021, up from 42.7 per cent in 2020.

 

The turnaround of economic activities, especially economic prospects for these top financed sectors remains critical for the stability of the banking sector, noted the Central bank.

 

The recent economic performance in 2021 offers optimism and the trend is expected to continue in 2022 owing to accommodative macroeconomic policies, increased vaccine rollout, and accompanying opening up and recovery of the economic activities that will boost income and payment ability of clients of banks, it added.-New Times.

 

 

 

Nigeria: IMF Proffers Way Out of Nigeria, Others' Monetary Policy Challenges

The International Monetary Fund (IMF) has stated that Nigeria and other Sub-Saharan African countries were facing monetary policy challenges, urging them to cut down vulnerabilities, which it listed to include reducing balance sheet mismatches, develop money and foreign currency markets, and reduce exchange rate pass-through by building monetary policy credibility.

 

But it cautioned that central banks needed to weigh the benefits against potential negative impacts on their own transparency and credibility, especially in circumstances where policy frameworks are not yet well established.

In a blog post, the IMF observed that the COVID-19 pandemic dented economic growth, adding that even now, recovery was likely to leave output below the pre-crisis trend this year.

 

It noted that several countries in the region have also seen rise in inflation, a challenge it noted in some cases was compounded by fiscal dominance emanating from high public debt levels.

 

According to the fund, many of these economies in Sub-Saharan Africa may also face capital outflows as the major central banks in advanced economies withdraw policy stimulus and raise interest rates in the period ahead.

 

It stated that the economic impact of the conflict raging in Ukraine, including the attendant sharp rise in energy and food prices, was likely to further intensify the challenges.

 

On how to manage this sort of volatile environment, the IMF noted that sub-Saharan African countries with managed or free-floating exchange rate regimes generally benefit from allowing currencies to adjust, while focusing monetary policy on domestic objectives.

"That said, many countries in sub-Saharan Africa with floating exchange rate regimes have characteristics and vulnerabilities that can limit the benefits from fully flexible rates.

 

"For instance, dominant currency pricing (i.e., rigid export prices in US dollar terms) can weaken the beneficial trade adjustments associated with flexible rates.

 

"Moreover, shallow markets (i.e., markets with limited liquidity) can amplify exchange rate movements and yield excessive volatility.

 

"Foreign exchange markets tend to be shallow in many countries in the region, as evidenced by wide spreads between bid and ask prices," the global lender said.

 

The IMF pointed out that high foreign currency denominated liabilities were also a key vulnerability in several economies, adding that in the presence of large currency mismatches on balance sheets, exchange rate depreciations could undermine the financial health of corporates and households.

According to the IMF, weak central bank credibility could cause exchange rate changes to have a bigger effect on inflation, stressing that such currency mismatches and high pass-through could cause output and inflation to move in opposite directions following shocks, thereby worsening the trade-offs that policymakers face.

 

It also stated that there was evidence that the exchange rate pass-through in low-income countries was substantially higher than in more advanced economies, which poses a particular problem given the often heavy dependence on food and energy imports.

 

Proffering solutions on how countries that exhibit such vulnerabilities manage their policy responses, the IMF stated that it was important to reduce the vulnerabilities over time, including reducing balance sheet mismatches; developing money and foreign currency markets; and reducing exchange rate pass-through by building monetary policy credibility.

 

It added that many of these were areas where the IMF technical assistance could assist.

 

"But in the near-term--while vulnerabilities remain high--the IMF's work toward an Integrated Policy Framework suggests that using additional tools may help ease short-term policy trade-offs when certain shocks hit.

 

"In particular, where reserves are adequate and these tools are available, foreign exchange intervention, macro-prudential policy measures and capital flow measures can help enhance monetary policy autonomy, improve financial and price stability, and reduce output volatility.

 

"For instance, simulations with the framework's models suggest that in response to a sharp tightening of global financial conditions or other negative external financial shock, a country exhibiting such vulnerabilities could improve immediate economic outcomes by using foreign exchange intervention to reduce exchange rate depreciation and thereby limit the inflationary impact and reduce negative balance sheet effects. "This results in higher output and lower inflation than would have been feasible without the use of the additional policy instrument," the article said.

 

However, the IMF further advised that for central banks considering such policies, a few important qualifiers are in order adding that the tools should not be used to maintain an over- or undervalued exchange rate.

 

"Moreover, while additional tools can help alleviate short-term tradeoffs, this benefit needs to be carefully weighed against potential longer-term costs. Such costs may include, for instance, reduced incentives for market development and appropriate risk management in the private sector.

 

"Communicating about the joint use of multiple tools in a more complex framework can be very challenging, too, and expanding the set of policy options may subject central banks to political pressures.

 

"Central banks will thus need to weigh the benefits against potential negative impacts on their own transparency and credibility, especially in circumstances where policy frameworks are not yet well established," It admonished.-This Day.

 

 

 

Tanzania: Right Strategy Could Make Tanzania Giant Exporter of Ginger

IN recent days, same time last two years ago there was a growing outcry from farmers, especially from the Kigoma region, over the lack of a market for ginger (Zingiber officinale), which is widely grown in the region.

 

This crying of the lack of ginger market appeared again in local media recently, has reminded me of the contribution I once tried to the former MPelect from that region where I was attempting to enlighten him/her about opportunities that would have brought favour to the farmers of that crop in their region.

 

Even though he never answered me, I still did not turn off my effort to once again see how the farmers of this crop can be assisted to access the market with value addition for better income through their association because their success is the success of all Tanzanians.

Currently, according to CBI data, China and India are the leading in the world in fresh ginger production with a global market share of over 50%, followed by Indonesia, Nepal, and Nigeria. Other producing nations are Thailand, Peru, Brazil, and Myanmar. Europe continues to be an interesting and growing market for exporters of ginger especially dried ginger because a total of more than 3million metric tonnes supplied to the EU market finds its way to oriental and Indian cooking, bakery, and confectionery products and importantly to liqueurs.

 

The demand is projected to grow in the coming years and prices are slowly rising in my view provides an opportunity for Tanzania through its high commissions to start thinking about how Tanzania could believe to produce the best organic ginger could size such a market through forwarding contracts or any arrangement that could be found to be suitable for both parties.

The most interesting markets that I believe could be starting point are the top three markets in Europe namely the Netherlands, Italy, Spain, the United Kingdom and Germany.

 

These nations in relative terms import huge volumes of ginger from developing nations, which makes them good focus markets. Tanzania has ambassadors in all these nations.

 

Could this be the right time to assess their role and their value in line with the idea of economic diplomacy? So, hearing the cries of farmers from the Kigoma region complaining that they have harvested so much ginger and their ability to produce more is there, but lack of markets is what discourages them, made me ask myself a lot of questions.

 

At first, I thought is it true that even by harvesting and drying ginger to increase its value, we have failed? at a time when the market for dried ginger is growing in the world market? also thought about such opportunities, who is the problem and where is it?

And how could a lasting solution be found to allow ginger farmers to earn a decent living from their farming business?

 

The international ingestion of ginger is forecasted to continue to grow in the next 3-5 years from now. This is mainly because ginger is not only a healthy ingredient due to the cold weather mainly because they use it to relieve a sore throat or flu symptoms, but as new COVID19 variants continue to emerge, the demand for such natural remedies continues to remain high.

 

The existence of corona virus-19 sickness and reoccurring variants delta and omicron, and others to come, has brought many commercial opportunities to countries and businesses, small or large from the manufacture of PEs such as masks to the manufacture of chemicals used in testing whether a person is infected and the vaccines themselves.

 

Undeniably before approval of its uses, the world witnessed rich nations debating which vaccine is best and where it is acceptable to use and so on.

 

In my opinion, in opportunities like these, it is high time for Tanzania as a Nation that could produce one of the most reliable supplements that are being used to relieve a sore throat plan and strategically think about how we as a nation can seize the opportunity to sell ginger to the world ginger market alongside other crops such as avocado and bananas that have recently been considered for export to earn foreign exchange and also create jobs for its citizens.

 

Ginger growing regions in Tanzania include Ruvuma, Kigoma, Tanga, Morogoro, Coast, Mbeya, and Kilimanjaro regions. Specifically, at Mtii village, and Mamba Miamba Ward in Same District, everyone grows ginger.

 

Ginger produced in northern Tanzania is sold in neighbouring Kenya, where traders re-package it for overseas markets as their produce.

 

Likewise, the potential for commercial ginger is cultivated in at Buhigwe District, which is one of the eight districts of the Kigoma Region of Tanzania.

 

Failure to reverse the trend and encourage more processors to invest in value addition within the area where production is made, in my view is like exporting job opportunities for less economic impact be it earnings, jobs and economic activity earning opportunities along the ginger value chain. What is being articulated here is that the growing ginger market in Europe and the United Arab Emirates provides huge opportunities for Tanzania exporters.

 

Through its high commission and embassies, it is high time to invest in longterm relationships or collaborations with companies that have gone a step ahead in value addition to ensure sufficient supplies and stead revenue.

 

In 2020-2021, published data by highly respected agencies studying ginger crop and its price trend indicates that direct imports of dried ginger from developing countries to Europe alone totalled 152 thousand tonnes. Since 2016, the volume of imports in these nations has increased by 8.5% annually.

 

In that same period, the import values increased by more than 16% annually, totalling €310 million in 2020 alone. In 2020, more than 70% of total imports to Europe were sourced directly from developing countries which suggests that if Tanzania could have its house in order could directly supply its dried ginger to this emerging market.

 

Market data suggest that within the EU, the Netherlands ranks first market opportunity only because the country is an important European trade hub for spices, whereas the UK and Germany are the two largest consumer markets in Europe for dried ginger for several uses, in addition, to be used as a spice.

 

According to the office for national statistics for the UK, the United Kingdom sources more than 90% of its ginger from developing countries.

 

This alone suggests to me given our good relationship with the UK, it is an interesting market for ginger from Tanzania exporters. Since the UK is also the second- largest importer of ginger in Europe, which is the result of the substantial population of Asian descent i.e., Indians, and Chinese, the UK too has a large Asian diaspora, which together makes the UK have the highest per capita consumption of ginger in Europe.

 

Strategically Tanzania can compete with other ginger suppliers to the EU and UK on price. As I pen down, my analysis on the ginger export opportunity for Tanzania, it is important to remember that according to national statistics for the UK, 74% consumed in the UK is imported directly from China. Brazil is the second-biggest supplier to the UK, followed by China at a sizable distance at 4.8%.

 

UK further sources ginger from the Netherlands, Germany, India, Peru Belgium, Pakistan, and Vietnam. Exporting raw ginger, in my view to Tanzania should be the opening to earn forex and gain the advantage offered by the growing market.

 

But in future, Tanzania should target value addition to feed increasingly aromatherapy and wellness industry, such as in hair care products, essential or massage oils and diffusers.

 

Crucially, as a nation with enormous potential to enter the ginger world market should not forget certified ginger is still a niche market. Working along to certify ginger from Tanzania could give Tanzania added advantage in the market. Overall, most buyers in the mainstream market are willing to pay more for certified products.=Daily News.

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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