Major International Business Headlines Brief::: 19 October 2022

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Major International Business Headlines Brief::: 19 October 2022 

 


 

 


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ü  Asos sees big loss as shoppers spend less on fashion

ü  Cement firm Lafarge pleads guilty to supporting IS

ü  Netflix: Big hits reverse subscriber losses

ü  Inflation: Soaring bread and meat costs push price rises back to 40-year
high

ü  Kakao outage: Co-chief executive quits South Korea internet giant

ü  HSBC climate change adverts banned by UK watchdog

ü  Meta ordered to sell Giphy by UK's competition watchdog CMA

ü  Nord Stream blast 'blew away 50 metres of pipe'

ü  UK's mini-budget U-turn welcomed by IMF

ü  Australia challenges China in mining for essential elements

ü  Nigeria, Opec Countries Back 2m Barrel Crude Oil Cut

ü  Africa: Digital Industrial Hubs Are Key To Africa's Economic
Transformation

ü  South Africa: Transnet, Union Come to Three-Year Wage Agreement for
Striking Workers

ü  Africa: 'Robust Laws Needed' To Halt Forest Loss From Mining
#AfricaClimateCrisis

ü  Sudan: Report - 'Dismal Performance of Sudan Economy Will Continue If
Military Rule Persists'

 


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Asos sees big loss as shoppers spend less on fashion

Online fashion retailer Asos has reported a big loss as its customers spend
less on fashion due to the rising cost of living.

 

The firm saw a loss of nearly £32m in the 12 months to August, compared with
a profit of £177m last year.

 

The firm expects shoppers to cut back further this year as living costs
soar.

 

Inflation returned to a 40-year high in September as BBC research showed
people are feeling increasingly anxious about their finances.

 

Asos, which owns Topshop and Topman, said it was facing "an incredibly
challenging economic environment" at the moment.

 

"Within the UK, Asos expects a decline in the apparel market over the next
12 months but remains confident in its ability to take share against that
backdrop," it said.

 

The retailer said it expected to make a further loss in the six months to
the end of February, in part due to having to cut prices to clear stock.

 

Asos and its rival Boohoo, which were seen as a poster children for the
shift to online shopping, benefited during the pandemic as locked-down
shoppers splashed out online. But they have struggled as people have
returned to stores.

 

Asos said in June that cash-strapped consumers were also returning more
items bought online, hitting its profits

 

The fashion retailer said it now planned to rebuild its once-successful
business model, sorting out problems with its supply chain and refreshing
its fashion ranges.

 

Chief executive Jose Antonio Ramos Calamonte said: "The team and I will work
resolutely to emerge from these turbulent times as a more resilient and
agile business."

 

Shares in Asos, which had slumped by 80% this year, climbed 12% on
Wednesday.-BBC

 

 

 

Cement firm Lafarge pleads guilty to supporting IS

French cement maker Lafarge has pleaded guilty in the US to supporting the
Islamic State and other terror groups.

 

The firm agreed to a $777.8m (£687.2m) penalty for payments it made to keep
a factory running in Syria after war broke out in 2011.

 

Prosecutors said it marked the first time a company had pleaded guilty in
the US to aiding terrorists.

 

Lafarge said it "deeply regretted" the events and "accepted responsibility
for the individual executives involved".

 

The cement manufacturer, which was bought by Switzerland's Holcim in 2015,
said their behaviour had been in "flagrant violation" of Lafarge's code of
conduct.

 

The firm opened its plant in Jalabiya near the Turkish border in 2010
following a $680m investment.

 

US prosecutors said that Lafarge's Syrian subsidiary had paid Islamic State
and another terror group, al Nusra Front, the equivalent of $5.92m to
protect staff at the plant as the country's civil war intensified.
Executives likened the arrangements to paying "taxes", they said.

 

Lafarge eventually evacuated the plant in September 2014, when Islamic State
took control of the town and the factory. But before its departure, the
deals helped the company do $70.3m in sales, prosecutors said.

 

Lafarge had previously admitted bribes were paid after an internal
investigation. But US Deputy Attorney General Lisa Monaco said on Tuesday
that the company's actions "reflect corporate crime that has reached a new
low and a very dark place."

 

"Business with terrorists cannot be business as usual," she added.

 

In a statement, Lafarge's new owner Holcim said none of the conduct involved
Holcim, "which has never operated in Syria".

 

It added that former Lafarge executives involved in the bribery had
concealed it from Holcim, as well as external auditors.

 

Eric Olsen, who was CEO between 2015 and 2017, stepped down from his role
following an investigation into Lafarge's activities in Syria.

 

At the time, Mr Olsen said he had not been involved in any wrongdoing and
was standing down to bring "serenity" to the company.

 

The Department of Justice said that senior executives at Lafarge were
involved in the arrangements and aware they risked running afoul of
authorities.

 

Executives had attempted to require Islamic State not to include the name
"Lafarge" on documents memorializing and implementing their agreements and
many involved in the scheme also used personal email addresses, rather than
their corporate email addresses, to carry out the conspiracy, the Department
said.

 

Lafarge executives also backdated the termination agreement to 18 August
2014, a date shortly after the United Nations Security Council had issued a
resolution calling on member states to prohibit doing business with Islamic
State, to falsely suggest that negotiations with Islamic State had not
occurred after the UN resolution, the Department said.

 

The dealings by Lafarge were eventually made by public in 2016 on a website
run by a Syrian opposition group.

 

Breon Peace, US Attorney for the Eastern District of New York - where the
case was brought - said the conduct "by a Western corporation was appalling,
and has no precedent or justification".

 

"The defendants paid millions of dollars [to Islamic State], a terrorist
group that otherwise operated on a shoestring budget, millions of dollars
that [Islamic State] could use to recruit members, wage war against
governments, and conduct brutal terrorist attacks worldwide, including
against U.S. citizens," he said at a press conference announcing the guilty
plea.

 

Lafarge also faces charges of complicity in crimes against humanity in
France over its activities in Syria, but the company denies the claims.-BBC

 

 

 

Netflix: Big hits reverse subscriber losses

Netflix has stopped losing customers, after struggling to hold on to them in
the face of competition and pressures from the rising cost of living.

 

The streaming giant said it added 2.4 million households to its subscriber
base over the July to September period.

 

That reversed the losses it suffered in the first half of the year after
raising its prices in key markets.

 

Hits such as Stranger Things and Monster: The Jeffrey Dahmer Story helped
draw viewers back to the site.

 

"After a challenging first half, we believe we're on a path to reaccelerate
growth," the company said in a letter to investors on Tuesday.

 

The company said it expected to continue to add subscribers in coming
months. It is also rolling out a number of changes intended to restore its
fortunes, including launching a less expensive option with adverts next
month.

 

New charges aimed at people who share their accounts, already being tested
in parts of Latin America, will start to be implemented more broadly in
early 2023, the company added.

 

That news comes a day after the company said it had created a way to
transfer user's profiles along with viewing histories and preferences, to
new accounts, so personalised settings would not be lost.

 

Analysts said the changes should help the company make more money. But many
remain doubtful that the firm - already a mainstay of households in many
countries - has much more room to grow, especially in core markets such as
the US, where much of the competition has also seen subscriber growth
plateau in recent months.

 

Sign-ups in the Asia-Pacific region drove growth in the most recent quarter,
putting its subscriber total above 223 million, Netflix said.

 

"They're going to continue to have more US subscribers than most but as far
as the overall share of the pie, it's going to be tough to actually grow,"
said Wade Payson-Denney of Parrot Analytics, a data firm that tracks demand
for content.

 

Netflix currently accounts for over 8% of all video viewing time in the UK,
and 7.6% of TV viewing time in the US, the streaming giant wrote in its
latest financial statement.

 

That is neck-and-neck with YouTube in the US, but well ahead of rivals such
as Amazon and Disney.

 

Netflix series, like Cobra Kai, Stranger Things and The Crown, also continue
to dominate lists of most popular streaming shows.

 

But after a boom during the pandemic, the company has struggled to attract
new sign-ups - and maintain the loyalty of existing members.

 

Price hikes in major markets, including the US and UK, contributed to the
problem, especially as the rising cost of living leads to people cutting
back.

 

The company also faces fierce competition from the likes of YouTube, Apple
TV, HBO Max, Amazon Prime and Disney+.

 

Shares in the company have sunk significantly this year, prompting the firm
to slash jobs and reconsider core tenets of its business, like advertising
and drawing out the release of hit shows, like Stranger Things, which saw
its latest season released in two batches.

 

In the letter to investors, the company suggested that would not become the
norm, noting that bingeing helps to drive "substantial engagement".

 

Executives also made the case that they were ahead of the competition in
figuring out how to create shows and turn a profit.

 

"It's hard to build a large and profitable streaming business - our best
estimate is that all of these competitors are losing money on streaming,"
the company wrote, adding that the streaming landscape will shift again as
competitors stop pouring money into developing their new streaming services
and focus on the bottom line.

 

Netflix shares jumped more than 10% in after-hours trade, following the
release.-BBC

 

 

 

Inflation: Soaring bread and meat costs push price rises back to 40-year
high

Soaring food prices have pushed the increase in the cost of living back up
to the 40-year high seen in July.

 

Inflation - a measure of prices - accelerated to 10.1% in September as
rising living costs continued to hit household budgets.

 

Food prices saw their biggest jump since 1980, with bread, cereals, meal and
dairy prices all climbing, official figures show.

 

The Bank of England has said inflation could peak at 11% this year.

 

The Office for National Statistics (ONS) said inflation had hit 10.1% in the
12 months to September, after seeing a slight dip to 9.9% in August and
exceeding experts' expectations,

 

Chart showing CPI measure of inflation

The rise was driven largely by higher energy bills, food prices and
transport costs.

 

 

Food and non-alcoholic drink prices rose sharply, climbing by 14.5%, along
with the cost of furniture and hotel stays - although these were partially
offset by falling petrol prices.

 

ONS director of economic statistics Darren Morgan said: "After last month's
small fall, headline inflation returned to its high seen earlier in the
summer.

 

"These rises were partially offset by continuing falls in the costs of
petrol, with airline prices falling by more than usual for this time of year
and second-hand car prices also rising less steeply than the large increases
seen last year."

 

Are you setting up a warm bank? We want your stories

.

The latest official figures come as new Chancellor Jeremy Hunt attempts to
tackle the rising cost of living, as well as the recent turmoil on financial
markets sparked by his predecessor's mini-budget.

 

Over the last few weeks, mortgage prices have hit a 14-year high, driving up
costs for millions at a time when energy and food bills are also rising.

 

Mr Hunt said the government would "prioritise help for the most vulnerable
while delivering wider economic stability".

 

Btu shadow chancellor Rachel Reeves said: "Inflation figures this morning
will bring more anxiety to families worried about the Tories' lack of grip
on an economic crisis of their own making."

 

Jen Welch, who runs an artisan bakery, said costs for all key ingredients
have gone up.

Jen Welch, who runs artisan bakery Bread&, says the situation is "scary"
with costs rising rapidly.

 

She set up the bakery in Sunderland during the pandemic and thought that
would be the toughest experience they would face.

 

But the cost of their key ingredients such as flour, butter and oils have
now "spiralled out of control". They also face energy bills of more than
£1,000 a month.

 

"You think to yourself, if we can [get through the pandemic], we can weather
most storms," she told the BBC. "But maybe that's not the case."

 

The bakery is trying not to put prices up at a time when shoppers are
cutting back on "niceties", but Ms Welch says it may have to.

 

'No let-up for families'

Experts said the latest inflation figures would put extra pressure on the
Bank of England to hike interest rates at its next meeting in November.

 

By raising rates the Bank aims to encourage people to save more and spend
less, in the hope this will stop prices rising as fast. It has increased
rates seven times in a row since December as it tries to bring inflation
back down to its 2% target.

 

But higher rates also drive up borrowing costs for mortgage holders and
businesses, with experts warning this could put a brake on economic growth.

 

Victoria Scholar, head of investment at Interactive Investor, said the Bank
was "between a rock and a hard place" as price pressures continued to hit UK
families.

 

"Inflation [is] still the most pressing economic problem facing the Bank of
England as well as the government," she said.

 

"Without price stability, the cost-of-living crisis will continue to weigh
on the economy by squeezing household budgets and dampening business
margins," she said.

 

The rise in the cost of living is expected to peak this October, when
government support to freeze energy bills at £2,500 for an average household
comes into play.

 

But as the government looks to plug a hole in the public finances, that help
is expected to be pared back from April while the prime minister is no
longer committing to raising pensions in line with inflation.

 

If the government puts up pensions in line with wages instead, retirees
could miss out on £8.50 per week or £442 per year in income.

 

Helen Morrissey, senior pensions and retirement analyst at Hargreaves
Lansdown, said to be denied the increase "would come as a bitter blow to the
many pensioners who rely on state pension as the foundation of their
retirement income".

 

Former pensions minister Sir Steve Webb said older people could face a
"double whammy" as their pensions were cut and energy bills soared.-BBC

 

 

Kakao outage: Co-chief executive quits South Korea internet giant

The co-chief executive of Kakao, the company behind South Korea's largest
mobile messaging app, has resigned after a massive outage at the weekend.

 

Namkoong Whon told a news conference that he felt a "heavy burden of
responsibility over this incident".

 

On Saturday, a fire damaged servers belonging to Kakao, shutting down its
messaging, mobile banking and gaming services for more than eight hours.

 

Kakao's messaging app KakaoTalk has more than 47m users in South Korea.

 

Speaking to reporters, Mr Namkoong apologised for the outage and said that
he would "lead the emergency disaster task force overseeing the aftermath of
the incident."

 

Most of the firm's services had been restored by Wednesday, although users
reported that some functions remained unstable.

 

The outage has raised concerns about the public's reliance on the KakaoTalk
messaging app.

 

On Monday, South Korean President Yoon Suk-yeol said the government would
examine the dominance of Kakao's services as they were "like a fundamental
national telecommunications network as far as the public is concerned".

 

"If the market is distorted in a monopoly or severe oligopoly, to the extent
where it serves a similar function as national infrastructure, the
government should take necessary measures for the sake of the people," he
added.

 

There were no reports of injuries after the fire at the SK C&C data centre
in Pangyo, which is south of South Korea's capital Seoul.

 

Safety precautious stopped Kakao from resuming power supplies to its
servers, the Yonhap news agency reported.

 

Mr Namkoong's resignation leaves co-chief executive Hong Euntaek as the
company's sole leader.

 

Kakao said it would compensate users and businesses that were affected by
the disruptions.

 

The company also plans to invest 460bn won ($323.9m; £285.8m) to operate its
own data centre from next year, and build a second data centre in 2024.-BBC

 

 

 

HSBC climate change adverts banned by UK watchdog

The UK's advertising regulator has banned two HSBC advertisements for being
"misleading" about the company's work to tackle climate change.

 

The Advertising Standards Authority (ASA) said the banking giant can no
longer run the ads which promoted its plans to reduce harmful emissions.

 

The watchdog said that the posters "omitted material information" about
HSBC's activities.

 

It marks the ASA's first action against a bank for so-called "greenwashing".

 

An HSBC spokesperson told the BBC that "The financial sector has a
responsibility to communicate its role in the low carbon transition to raise
public awareness and engage its customers."

 

"We will consider how best to do this as we deliver our ambitious net zero
commitments," they added.

 

 

Greenwashing - branding something as eco-friendly, green or sustainable when
this is not the case - misleads consumers into thinking they are helping the
planet by choosing those goods or services.

 

The adverts were seen at bus stops in London and Bristol last October, in
the lead up to the highly-anticipated United Nations COP26 climate change
summit.

 

The posters outlined HSBC's efforts to plant trees and help its customers
achieve "net zero" emissions. Net zero means not adding to greenhouse gases
already in the atmosphere by cutting and trying to balance out emissions.

 

One poster showed an image of waves crashing on a shore with text that said
"Climate change doesn't do borders. Neither do rising sea levels. That's why
HSBC is aiming to provide up to $1 trillion in financing and investment
globally to help our clients transition to net zero".

 

The other advert was of tree growth rings and text which read "Climate
changes doesn't do borders. So in the UK, we're helping to plant 2 million
trees which will lock in 1.25 million tonnes of carbon over their lifetime".

 

The ASA upheld complaints that the ads "omitted significant information
about HSBC's contribution to carbon dioxide and greenhouse gas emissions."

 

"Customers... would not expect that HSBC, in making unqualified claims about
its environmentally beneficial work, would also be simultaneously involved
in the financing of businesses which made significant contributions to
carbon dioxide and other greenhouse gas emissions," the regulator added.

 

Climate change scrutiny

HSBC's efforts to address climate change have come under scrutiny in recent
months.

 

In February, campaigners accused big banks, including HSBC, of pumping
billions of dollars into new oil and gas production despite being part of a
green banking group.

 

London-based ShareAction called on the banks to demand green plans from
fossil fuel firms before funding them.

 

ShareAction said that 24 big banks, which joined the Net Zero Banking
Alliance last year, had since provided $33bn (£29.1bn) for new oil and gas
project.

 

At the time, a HSBC spokesman said the bank was "committed to working with
our customers to achieve a transition towards a thriving low carbon
economy".

 

Meanwhile, a senior HSBC executive drew controversy in May when he accused
central bankers and other officials of exaggerating the risks of climate
change.

 

Stuart Kirk, who was the global head of responsible investing at the bank's
asset management division, said: "There's always some nut job telling me
about the end of the world."

 

His role, which was based in London, involved considering the impact of
investments on environmental, social and governance issues.

 

In July, Mr Kirk resigned from the bank and said that his comments had made
his position "unsustainable".-BBC

 

 

 

Meta ordered to sell Giphy by UK's competition watchdog CMA

The UK's competition watchdog has reissued an order to Meta to sell animated
images platform Giphy.

 

The Competition and Markets Authority (CMA) said this ruling was final,
after going back and forth with the tech giant since its decision was first
announced last year.

 

The CMA found that the takeover of the gif-creation website could harm
social media users and advertising.

 

A Meta spokesperson said it accepted the decision but was "disappointed".

 

The ruling is the first time the UK has blocked an acquisition by a tech
giant, signalling a new determination to scrutinise digital deals.

 

Ongoing case

Meta had bought Giphy - the largest supplier of animated gifs to social
networks such as Snapchat, TikTok and Twitter - in 2020.

 

The CMA investigated the sale and published its original decision in
November 2021, ordering Meta to dispose of Giphy.

 

Meta, then called Facebook Inc, had been fined a record £50.5m for refusing
to comply with the CMA during the investigation.

 

Meta had hoped its purchase of Giphy would improve finding gifs and stickers
on its social networks Instagram, WhatsApp and Facebook.

 

While Meta maintained that Giphy would be "openly available" to other social
networks, the CMA's investigation found the buyout would harm competition in
social media and advertising.

 

Meta appealed against this decision, but in July the Competition Appeal
Tribunal found in the CMA's favour on all but one ground, which was related
to third-party confidential information.

 

After that finding, the CMA said it reviewed its original decision that Meta
would have to sell Giphy and was standing by it.

 

It said it was concerned the deal would not only limit choice for those on
social media but it would also reduce innovation in digital display
advertising in the UK.

 

Stuart McIntosh, chair of the independent inquiry group carrying out the
CMA's investigation, said there was no other option but for Meta to sell
Giphy.

 

"This deal would significantly reduce competition in two markets," he said.

 

"It has already resulted in the removal of a potential challenger in the UK
display ad market, while also giving Meta the ability to further increase
its substantial market power in social media."

 

In a statement, the social network said it accepted the decision, adding:
"We are grateful to the Giphy team during this uncertain time for their
business, and wish them every success.

 

"We will continue to evaluate opportunities - including through acquisition
- to bring innovation and choice to more people in the UK and around the
world."

 

Paul Stone, from law firm Charles Russell Speechlys, told the BBC: "The
significance of the CMA's decision is that it underscores the body's
concerns about the impact of the deal on future innovation in digital
advertising.

 

"This seems to be key to the CMA's approach to regulating big tech in the
UK, where preserving competition from small but potentially significant
future challengers can be at least as important as maintaining competition
between already established players in the sector."-BBC

 

 

 

Nord Stream blast 'blew away 50 metres of pipe'

At least 50 metres (164ft) of an underwater pipeline bringing Russian gas to
Germany is thought to have been destroyed by a blast last month.

 

Video shot by a Norwegian robotics company, published by Swedish newspaper
Expressen, appears to show the massive tear in the Nord Stream 1 pipe.

 

Danish police believe "powerful explosions" blew four holes in the pipe and
its newer twin, Nord Stream 2.

 

It is still unknown who or what caused the blasts amid suspicions of
sabotage.

 

Gas deliveries have been suspended since the 26 September explosions on the
pipes crossing the Baltic Sea.

 

The Kremlin has accused Western investigators of seeking to blame Russia for
the damage.

 

 

"Elementary logic" shows damaging the pipeline was not in the Russian
interest, Kremlin spokesperson Dmitry Peskov said on Tuesday.

 

Western leaders have stopped short of directly accusing Russia but the EU
has previously accused Russia of using its gas supplies as a weapon against
the West over its support for Ukraine.

 

Working with Expressen, Blueye Robotics used a submersible drone to film the
twisted and bent metal of the Nord Stream pipe 80m beneath the surface of
the sea.

 

Parts of the pipeline are either missing or buried in the seabed, the
company said.

 

"It is only an extreme force that can bend metal that thick in the way we
are seeing," drone operator Trond Larsen told Expressen.

 

Danish police findings appear to confirm those of Swedish authorities who
have also been investigating the leaks in the pipelines.

 

"The inspections have confirmed that there has been extensive damage to Nord
Stream 1 and 2 in the Danish exclusive economic zone," said Danish police.

 

German, Danish, and Swedish authorities have all been investigating the
incident but Swedish prosecutors reportedly rejected a joint investigation
out of fears of sharing sensitive information related to national security.

 

Russia previously demanded to be involved in any investigations, saying the
damage was in international waters, but Denmark and Sweden refused.

 

The Nord Stream 1 pipeline has not transported any gas since August when
Russia closed it down, saying it needed maintenance.

 

It stretches 1,200km (745 miles) from the Russian coast near St Petersburg
to north-eastern Germany.

 

Nord Stream 2 was still awaiting clearance for use when Russia invaded
Ukraine in February.

 

Media caption,

Watch: Footage from the Danish Defence of what it says is a gas leak from
the pipelines

 

Map showing the route of the Nord Stream pipelines between Russia and
Germany as well as the borders of the economic zones in the Baltic sea.-BBC

 

 

UK's mini-budget U-turn welcomed by IMF

The UK government's U-turn on tax cuts will help tackle soaring inflation,
the International Monetary Fund has said.

 

In a statement, the IMF said the changes will help "better align fiscal and
monetary policy in the fight against inflation".

 

The statement comes after the body had openly criticised the UK government
in September over its plan for tax cuts.

 

Last month, the IMF said the tax cut plan was likely to increase inequality
and add to pressures pushing up prices.

 

In an unusual move, it openly criticised the UK government's tax cuts plan,
and then warned that rising prices would be worse in the UK.

 

The IMF had said the policy worked at cross-purposes with measures designed
to slow how quickly the cost of living was rising.

 

After market turmoil following the mini-budget, the government made a
U-turn, reversing a pledge to cut the top rate of income tax.

 

Then on Monday the new Chancellor Jeremy Hunt made a dramatic U-turn on the
government tax cuts plans, undoing swathes of policies from former
Chancellor Kwasi Kwarteng and Prime Minister Liz Truss.

 

The pound rose and the cost of government borrowing fell.

 

Jeremy Hunt scraps almost all mini-budget as Liz Truss battles to remain PM

On Tuesday the IMF welcomed the U-turns, saying: "The UK authorities' recent
policy announcements signal commitment to fiscal discipline and help better
align fiscal and monetary policy in the fight against inflation."

 

The IMF tries to stabilise the global economy and one of its main roles is
to act as an early economic warning system.

 

It had urged the government to reconsider its tax plans, saying they would
be likely to increase inequality.

 

In addition, it had warned that the cuts could speed up the pace of price
rises, which the Bank of England is trying to bring down.-BBC

 

 

 

Australia challenges China in mining for essential elements

In the blood red dust of central Australia, mining firm Arafura is planning
to build a mine and processing facility for highly sought-after elements.

 

Located 80 miles north of Alice Springs, the Nolans Project will be in one
of the hottest and driest parts of the country.

 

Despite the extreme conditions, Arafura believes the investment will be
worth it. The planned mine and processing facility could satisfy up to 5% of
global demand for neodymium and praseodymium (NdPr), which are used in
high-power magnets.

 

They are two of a group of so-called rare earth elements, that are essential
to the electronics industry.

 

NdPr, europium, terbium and other rare earth metals that were once barely
heard of are now commonplace in the manufacture of phone touchscreens, wind
turbines and other modern technologies.

 

The mining of these minerals is an industry currently dominated by China,
but geopolitical and trade forces are at work that could reshape the
international market.

 

 

Rare-earth mine in Baiyun'ebo or Bayan Obo. Baiyun'ebo or Bayan Obo is a
mining town in Inner Mongolia in China. The mines north of town are one the
largest deposits of rare earth metals found in the world.

 

 

Australia, a superpower exporter of iron ore and coal with rich mining
traditions believes it is well-placed to join the race to exploit minerals
that provide critical parts for electric vehicles and wind turbines.

 

"This could certainly be a game-changer for Australia. We are relatively
well-endowed in rare earth elements," says Gavin Lockyer, managing director
of Arafura Resources.

 

"This could really put Australia front and centre in the renewable sector.

 

"It is relatively easy to discover a rare earths deposit. What is difficult
is finding a deposit that has economic quantities of the valuable
materials."

 

Rare earths are a collection of more than a dozen elements on the periodic
table. They are not particularly rare, but actually fairly plentiful in the
Earth's crust.

 

Geoscience Australia, a government research agency, says they have broad
industrial, medical, domestic and strategic applications "because of their
unique catalytic, nuclear, electrical, magnetic and luminescent properties".

 

They are used in "magnets and super magnets, motors, metal alloys,
electronic and computing equipment, batteries, catalytic converters,
petroleum refining, medical imaging and lasers".

 

Europium is found in fluorescent lighting, gadolinium in nuclear power rods
and ytterbium in solar panels.

 

Metal trading Company Haines and Maassen GmbH in Bonn, The company trades
mainly with the rare earth elements and specialty metals.

 

 

Mr Lockyer points out that some of the latest technology relies on their
properties.

 

"It is important to note that an electric vehicle might only have AUD$200
(£120; $140) or so of NdPr in it, but without it that electric vehicle will
not work efficiently. Similarly with the wind turbines," he adds.

 

In a time of war and menace, the valuable metals have strategic value and
are used in fighter jets, guided missiles and drones along with other
high-tech equipment for space exploration.

 

Australian firm Lynas Rare Earths has been contracted by the United States
Department of Defense to build a multimillion-dollar processing facility in
the US in a bid to reduce its reliance on China for strategic minerals.

 

Lynas is the world's only significant rare earths producer outside China and
runs the Mount Weld mine in Western Australia.

 

"We look forward to not only meeting the rare earth needs of the US
government, but also reinvigorating the local rare earths market," Lynas
managing director Amanda Lacaze told the Australian Broadcasting Corp.

 

Jennifer Granholm, US Secretary of Energy, speaks at the Sydney Energy Forum
on July 12, 2022, in Sydney.

 

 

The US Energy Secretary Jennifer Granholm warned recently at a conference in
Sydney that China was "big-footing" renewable energy technology and supply
chains.

 

Beijing's control of the supply of rare earths has been documented by the
Australian Strategic Policy Institute (Aspi), an independent think tank
based in Canberra.

 

It noted how the minerals have become weapons of diplomacy following a 2010
collision between a Chinese fisherman and Japanese patrol boats near a
disputed chain of islands. Beijing complained about the "illegal
interception" of its trawlers and retaliated.

 

"We saw the Chinese government stop rare earth supply to Japan as part of
its economic coercion against the Japanese government," says Aspi analyst
Albert Zhang.

 

"Since then, what countries have noticed is that there is a risk by having
only one major supplier of rare earths [and] such an essential raw material
isn't beholden to just the political will of one government. Australia has
the materials and the right sort of companies and capital investment to
diversify the world's supply chain."

 

Australian experts have said that more recently China threatened to limit
rare earth shipments to American defence contractors because of US arms
sales to Taiwan.

 

Employees work at the assembly line of a wind turbine produced for France's
future first wind farm off Saint-Nazaire, at the General Electric plant of
Montoir-de-Bretagne, Britany, on September 15, 2020.

 

 

John Coyne, who is in charge of Aspi's Northern Australia Strategic Policy
Centre, also warns that China will not easily surrender its vice-like
dominance of the international rare earths sector. He alleges that Beijing
uses its "power and market-distortion tactics to strategically flood the
market when it wants to drive out competitors and deter new market
entrants".

 

"Australia has the world's sixth-largest reserves of rare earth minerals.
However, they remain largely untapped with only two mines producing them,"
he says.

 

"There is significant potential in the establishment of multi-ore
mineral-processing hubs in Australia. After all, there is no point in
creating supply chain resilience for [rare earth] ores if miners must still
send them to China for processing."

 

China's Global Times said Beijing would welcome "benign competition" to
"improve production capacity" in the industry.

 

The newspaper added that "the US and some of its allies, in their pernicious
and selfish attempt to contain China's rise, has brought toxic geopolitics
to the crucial rare earth industry as well as other economic and trade
fields".

 

Earlier this year, the South Korean carmaker Hyundai signed a memorandum of
understanding with Arafura Resources, which provides "them security of
supply [of rare earths] in a geopolitically stable environment".

 

A similar agreement to supply NdPr was reached between Arafura and GE
Renewable Energy in July.

 

"What we have all seen during the pandemic is the importance of having
multiple supply chains," says GE's Sam Maresh. "Ultimately, it is in
everyone's interest to have diverse supply chains.

 

"We require rare earths to make very, very strong magnets that are used in
our offshore wind turbines. NdPr allows you to make magnets that are
super-strong [that] allow for the rotation and for the turbine to generate
electricity using the wind," he told the BBC.

 

"We know that the energy transition requires a lot of rare earths. We use
about 600kg of super-magnets for every offshore wind turbine. So we need a
lot of this product. We can't decarbonise without rare earths."-BBC

 

 

 

Nigeria, Opec Countries Back 2m Barrel Crude Oil Cut

The Minister of State Petroleum Resources, Timipre Sylva, yesterday said
Nigeria was part of the decision by the Organisation of Petroleum Exporting
Countries (OPEC) to cut 2 million barrels of crude oil production for
November.

 

According to a statement by his spokesman Horatius Egua on Tuesday, the
minister said this was to stabilize the market and not for any ulterior
motives.

 

The statement read: "The decision taken by the OPEC+ during our meeting on
5th October, 2022 to voluntarily adjust crude oil production downward by two
million barrels per day was unanimous. It was taken for the exclusive
purpose of ensuring the long-term stability of the oil market.

 

"It was purely to balance supply and demand, and forestall a degeneration of
the current volatile oil market to a situation where larger production cuts
will be required to balance it.

 

"This proactive decision was based on a thorough assessment of market
conditions as OPEC plus has always been guided," he stated further.

 

"Nigeria currently produces about 1.2m bpd which is far from the 1.8m bpd it
was assigned to produce in September before dropping to about 1.7m bpd in
October. The country is battling oil theft with officials saying over
200,000 bpd of crude oil is stolen daily. So far, illegal connection points
have been discovered in an ongoing massive onslaught against oil thieves."

 

-Daily Trust.

 

 

 

Africa: Digital Industrial Hubs Are Key To Africa's Economic Transformation

Good policy and stable macroeconomics won't drive industrial innovation -
tech hubs, start-ups and manufacturers must be involved.

 

Digital innovation enables transparency in public services and new
opportunities in commerce, health, education and agriculture. But Africa
lags behind the rest of the world in nearly every digital-related indicator
except mobile money.

 

It is especially behind on innovation and digitalisation in industry and
manufacturing to spur economic transformation. There are great examples of
African companies using 3D printing or machine learning or drones, but these
mostly represent Africa's aspirations, not its reality.

 

Even where there is progress, countries aren't benefiting enough from new
technology and innovation because of low absorptive capacity and lagging
digital infrastructure. The average internet penetration in sub-Saharan
Africa is 25% - half the global average. The impact of doubling internet
penetration on manufacturing labour productivity is also significantly lower
in these countries.

 

 

Digitalisation can create new opportunities in manufacturing. These include
increases in efficiency, diversification into more value-added products,
expansion in regional and global trade, lower production costs, optimising
supply chains, and better export competitiveness. But to achieve this,
governments must incentivise innovation in industry and manufacturing while
providing an appropriate business environment for the private sector.

 

Africa lags behind the rest of the world in nearly every digital-related
indicator except mobile money

 

The African Center for Economic Transformation (ACET) recently analysed
seven countries (Côte d'Ivoire, Ethiopia, Ghana, Morocco, Senegal, Togo and
Tunisia) to better understand where industrial innovation policies were in
place. It found that the private sector had limited investments in
innovation, digital, and the Fourth Industrial Revolution technologies.
Governments were also doing little to promote smart technology and
incentivise industrial innovation.

 

 

The ACET study concluded that the biggest challenge to building an
industrial innovation ecosystem in the countries reviewed was the lack of
substantive engagement with the private sector.

 

Good policies and a conducive macroeconomic framework are enablers but
aren't enough to drive industrial innovation. Governments were drafting
policies but not engaging enough with industries, tech hubs and start-ups.
Besides Tunisia and Morocco (where gaps remain), there was little strategic
contact with the private sector.

 

Institute of Development Studies research in 2021 showed that projects such
as digital industrial hubs must be implemented in partnership with local
tech providers. These providers can offer maintenance, repair and
troubleshooting services for digital hardware and software. This will
require building local capacity and facilitating links with local tech
providers.

 

 

Poor integration between local manufacturing and technology sectors prevents
large-scale job creation

 

Political economy thinking needs to be embedded into Africa's digital
industrial hub design. This will show how structural factors shape their
uptake and who is involved in their design. It will also shed light on the
formal and informal 'rules of the game' - how social, cultural and gender
norms affect the adoption of digital hubs.

 

For example, a 2020 World Trade Organization and World Bank study found that
smaller firms with female CEOs suffered the most from inefficiencies in IT
connectivity, infrastructure and digital regulations.

 

There are significant opportunities for African countries to prepare for an
acceleration of investment in digital industrial hubs. For example,
e-commerce protocols in the African Continental Free Trade Area agreement
are being negotiated by the African Union (AU). Also, global tech giants
such as Google and Microsoft are investing substantially in Africa. And
efforts such as the European Union-AU digital partnership and the G20
Compact with Africa facilitate investment.

 

There are concerns about the impact of digitalisation on employment. But a
key roadblock to large-scale job creation in African countries is a lack of
integration between the local manufacturing and technology sectors.

 

In many developing countries, manufacturing firms import digital solutions
due to a lack of awareness and trust in domestic options. To scale up local
production in Africa - and thereby create jobs - requires more focus on
domestic integration. Global firms should be linked with potential local
suppliers, and domestic digital start-ups and small and medium enterprises
(SMEs) with existing manufacturing supply chains.

 

Digital industrial hubs can help African firms create economies of scale,
grow demand and provide jobs

 

ACET's business incubator for start-ups works with SMEs with a manufacturing
or assembly component in their business model. The aim is to integrate them
into regional markets and the global value chains of large multinationals.
The programme provides free technical and managerial services, financial
support and transaction advice. But ACET finds that even firms that invest
in technology often respond to market trends that present opportunities
rather than having a strategy to scale and enter value chains.

 

Digitalisation provides opportunities for expanding Africa's manufacturing,
but this requires incentivising industrial innovation policy. Regional and
global efforts can support the evolution to digital industrial hubs as long
as there is domestic integration and backing for companies entering regional
and international value chains.

 

Well-integrated digital industrial hubs can help African firms create
economies of scale, grow demand and provide jobs. As pockets of digital
infrastructure and skills, they can inform policy and attract local and
foreign investment, with the potential to nurture regional hubs with access
to regional value chains.

 

More information is needed on the potential of digital industrial hubs in
different countries, sectors and policy environments. Digital start-ups also
need help integrating into manufacturing value chains through digital
services and e-commerce.

 

To achieve this, African governments must tackle digital infrastructure
deficiencies and policy gaps related to intellectual property, data
protection and privacy. National digital industrialisation roadmaps are also
needed that target female workers and entrepreneurs.

 

As fissures in the global economy continue, African governments and
companies must prepare for an economic rebound by an increasingly digitised
industrial base with new regional and global value chains. Digital
industrial hubs will be central to the continent's economic transformation,
poverty reduction and equitable growth.

 

Rob Floyd, Karishma Banga and Freda Yawson, African Center for Economic
Transformation, Accra, Ghana

 

-ISS.

 

 

 

South Africa: Transnet, Union Come to Three-Year Wage Agreement for Striking
Workers

Cape Town — Employer Transnet says it will now be focusing on clearing any
backlogs across its port and rail systems after reaching a three-year wage
agreement with the United National Transport Union (Untu),  Eye Witness News
reports. The deal includes a  6% increase in year one, a 5.5% increase in
year two, and a 6% increase in year three. Untu has been striking for almost
two weeks.

 

The Transnet strike has battered the economy and has impacted heavily on the
transporting of goods across the country and abroad.

 

Hardest hit has been the fruit exporting sector, and the mining sector.

 

Members of Satawu - the other union in Transnet - are still holding out for
at least a 12% increase for its members. It said the Untu agreement is a
"betrayal" of the workers.

 

 

 

Africa: 'Robust Laws Needed' To Halt Forest Loss From Mining
#AfricaClimateCrisis

Accra — Policymakers must develop and implement legislation and forest
conservation programmes to halt the loss of tropical forests from industrial
mining, environmental experts urge.

 

The call follows a study showing that industrial mining in four countries --
Indonesia, Brazil, Ghana and Suriname -- contributed 80 per cent of the
tropical forest loss in 26 countries in the past 20 years.

 

Scientists studied mining areas in 26 countries covering 11,500 square
kilometres of land, including 7,000 square kilometres of tropical forest,
from 2000 to 2019. Using satellite image-based data and geospatial datasets
with global coverage they were able to quantify direct forest loss.

 

"The findings show that some Sub-Saharan African countries are among the
tropical countries that lost the largest forest areas to the expansion of
mining," says Stefan Giljum, the study's lead author and an associate
professor at Vienna University of Economics and Business, Austria. "Ghana
mostly stands out, in particular, for gold mining."

 

 

According to the study, expansion of mining activities into forest areas
accounted for about 47 per cent (3,264 square kilometres) of tropical forest
loss in the past 20 years, with African countries such as Cote d'Ivoire,
Ghana, Tanzania and Zimbabwe experiencing direct forest loss due to
industrial mining.

 

The study published September in the Proceedings of the National Academy of
Sciences suggests that policymakers and mining companies operating in
tropical countries should also consider potential impacts beyond the mining
process. In order to preserve tropical forests, direct and indirect
deforestation impacts of mining projects should be fully considered, the
study explains.

 

Giljum says that the current debate about deforestation mostly focuses on
agriculture and livestock farming while little is known about the impact of
mining. Meanwhile, the global demand for minerals is steadily increasing.

 

 

Countries in Sub-Saharan Africa should make monitoring the environmental
effects of mining a priority in order to avoid significant future harm to
forest areas, Giljum adds.

 

"Monitoring and reducing the environmental impacts of mining will be an
increasingly important topic in the future, so policymakers should start
developing strategies through legislation around regional planning and
forest conservation strategies to take the direct and indirect impacts of
mining expansion into account," Giljum explains.

 

Daryl Bosu, deputy national director of A Rocha Ghana, an environmental
non-governmental organisation, says that while regulations for environmental
impacts assessment need to be strictly implemented and complemented by
environmental mitigation plans, policies to establish "no-go areas", backed
by appropriate legal frameworks, are crucial. This is because mining areas
also provide food, water and other ecosystem services, he explains.

 

"As environmental impact assessments increasingly become formalities because
they are backed by big corporations and controlling governments, it has
become even more critical to respect the human rights of resource-rich
communities by the uncompromising respect for community consent and
participation in the processes," Bosu adds.

 

Ghana is already reeling from the negative impacts of small-scale mining,
popularly known as "galamsey". Ghanaians accuse the government of failing to
respond robustly over an allegation last month that a mining firm owned by a
regional leader of the ruling political party has been mining gold in a
forest reserve.

 

Ghana's Ministry of Lands and Natural Resources issued a statement on (3
October) to halt the company from mining in the forest reserve.

 

"While Akonta Mining Ltd has a mining lease to undertake mining operations
in some parts of Samreboi, outside the forest reserve, the company has no
mineral right to undertake any mining operations in the Tano Nimiri Forest
Reserve," the statement said. "Steps are currently being undertaken to
enforce the minister's directive issued on 30 September 2022 [to stop the
firm from mining in the forest reserve].

 

-SciDev.Net.

 

 

 

Sudan: Report - 'Dismal Performance of Sudan Economy Will Continue If
Military Rule Persists'

Khartoum — After the Sudanese economy showed 'dismal performance' in the
first half of the 2022 financial year, a report published by the
transparency monitor Sudan Transparency and Policy Tracker (STPT) predicts a
tough last quarter of 2022, and expects a tougher 2023 if military rule
persists.

 

The report highlights that the overthrow of the Al Bashir regime in April
2019 created a window of opportunity for fundamental reforms. When Abdallah
Hamdok was inaugurated as Prime Minster of a civilian-led government, Hamdok
as Prime Minister and appointment of the civilian-led government, "Sudan
embarked on a journey of re-opening itself to the world and began restoring
normal diplomatic and economic relations with international financial
institutions," the report says. "Sudan also began a process of economic
reforms under a Staff-Monitored Program of the International Monetary Fund
(IMF) in 2020 to address structural distortions in its economy, allowing it
eventually to benefit from the IMF's Highly Indebted Poor Countries (HIPC)
initiative for debt relief.

 

 

"This was welcomed by the international financial institutions, who pledged
to support Sudan as part of its democratic transition. These active
diplomatic efforts were made possible by the delisting of Sudan from the US
list of State Sponsors of Terrorism (SSTL), the lifting of the remaining
comprehensive sanctions, and the restoration of Sudan's sovereign immunity
in December 2020, which allowed Sudan to receive US financial aid and
restore normal relations with the World Bank and the IMF.

 

 

'All these positive developments are now at risk because of the October 25,
2021 coup'

 

"However, all these positive developments are now at risk because of the
October 25, 2021 coup. In reaction to the coup, many donors immediately
stopped funding, paused disbursements, and stopped development of new
programming. The debt relief process, the economic reform program, and
assistance from the international community have also stopped. The effective
functioning of government institutions has come under threat, especially
after the reinstatement of former National Congress Party (NCP) senior
officials to posts from which they had been removed. Economic activities
have been disrupted. After decades of deep financial woes, the coup came at
a time when Sudan was just starting to get back on the right track and make
some economic progress."

 

The report cautions that economic activity is projected to remain weak in
the fourth quarter of 2022. "The Sudanese economy is expected to grow by
around 0.5% in 2022, driven by growth in household consumption. Continuous
external pressures and high commodity prices are expected to constrain this
growth. The 2022 budget projects nominal GDP to be SDG 28.7 trillion,
equivalent to US $49 billion if we estimate an average exchange rate of SDG
580/$. Currently, there are no real measures in place to contain the
economic costs of the coup, and future projections are likely to be
negatively revised in light of developments," the STPT predicts.

 

 

"The IMF predicted prior to the coup, based on the assumption that reform
measures would continue that macro-economic indicators would improve over
the coming three years. It projected the real GDP growth to increase from
0.5% in 2022 to 6.8% in 2025, while inflation was expected to drop to 22.6%
in 2025, while per capita income was projected to remain level through 2025.

 

"Whether this somewhat optimistic scenario would come to fruition was
predicated on the conclusion of productive political settlements, Sudan
having a government that is acknowledged by the international community and
hence remain eligible to support the resumption of the debt relief path
through HIPC process. However, if military rule continues GDP is expected to
contract by three per cent."

 

'The coup interrupted the promised democratisation process'

 

The report laments that "failure to manage expectations and suspension of
economic reforms could undermine the growth outlook. Sudan faces economic
risks as the October 25 coup interrupted the promised democratisation
process and returned Sudan to a state like the isolation that characterised
Al Bashir's autocratic rule".

 

It shows that Sudan lost USD $4.6 billion in foreign assistance, of which
the International Development Association (IDA) had allocated USD $2 billion
to Sudan as part of a 2020 round of financing that Sudan was meant to
receive to support projects in irrigation, agriculture, small producers,
energy, health and water, and EU, World Bank Group (WBG) and other donors
had allocated USD $760 million in support to the Sudan Family Support
Project (SFSP). Sudan also was expected to receive $500 million from the WBG
planned budget support and an additional $500 million as direct budget
support, as of November 4, 2021.7 For its part, the US suspended, and
subsequently repurposed, the congressionally approved USD $ 700 million
assistance to Sudan. In addition, they suspended their annual grant of
350,000 metric tons of wheat earmarked for the supply of subsidised bread to
the urban poor, which was worth another $125,000,000."

 

It points out that "monetary aggregates have expanded rapidly, reflecting
fiscal deficit monetisation and exchange rate devaluation. Money supply
increased from SDG 3,820.4 billion at the end of Q1 2022 to SDG 4,086.0
billion at the end of Q2 of the year 2022, representing an increase of 7.0%.

 

"Credit to both private sector and State-owned enterprises provided by
commercial banks in local currency increased from SDG 1,166.5 billion at the
end of Q1 2022 to SDG 1,234.7 billion at the end of Q2 2022, 5.8% increase.

 

"Sudan consumer price (inflation) decreased year on year from 148.9% in June
and 125% in July to 117.4% in August. This strong decline in recent months
is due to the base effect (in which a period of high inflation tends to be
followed by lower inflation due to high base prices and a period of low
inflation tends to be followed by a period of high inflation, due to
relatively low base prices), since inflation was already exceptionally high
last year. The inflation rate, however, remains in the double-digit zone,
which is concerning given that demand is still below potential output. The
driving force behind higher inflation is the debt monetisation schemes that
the government is undertaking. The Ministry of Finance First Quarter report
(January to March 2022) indicates similar trends; with the decline of the
first quarter inflation rate to an average of 260.5% compared to the 325.6%
of the corresponding period in 2021."

 

'The exchange rate for the Sudanese Pound remains highly distorted'

 

The report points out that the exchange rate for the Sudanese Pound remains
highly distorted. In February 2021, the CBOS official and commercial bank
exchange rates were unified and devalued from SDG 55.2/US$ to SDG 375/US$.
However, the weighted average exchange rate of the SDG in banks and exchange
bureaus devalued further to SDG 436.32/US$ by the end of Q2 2021 and to SDG
568/US$ by the end of Q2 2022. Over the same period, the parallel market
exchange rate devalued from 445 SDG/US$ to SDG 580/US$. Despite the
difference in absolute numbers, both the official and parallel rates
devalued by 30%. Interestingly, the Finance Ministry attributes the
depreciation of the national currency to "several factors, of which the most
important of which is the stoppage of foreign assistance and loans as a
result of political developments in the country following the decisions of
25 October 2021.

 

"The customs exchange rate--which is only used in assessing customs duty and
VAT on imports-- was also adjusted from the SDG 445/US$ in June 2021 and
unified with the market rate to SDG 565/US$ by August 2022, without having
any measures from MOFEP to (1) limit the price impact, or (2) allow more
time for importers and the general public to adjust to the significant
impact on prices. In response, the Importers' Chamber issued a statement
condemning the sharp increase and pointing to its detrimental effects on the
economy and people's livelihoods. The Chamber asked all importers to stop
operations and withhold payments of government customs and taxes dues for
three days.

 

'The parallel market accounted for about 80% of all foreign exchange
transactions before the implementation of reform measures'

 

"It is worth noting that the parallel market accounted for about 80% of all
FX transactions before the implementation of reform measures. Much of the
impact of nominal exchange rate depreciation on the real effective exchange
rate (REER) has been offset by sharp increases in inflation."

 

The report analyses several aspects of the Sudanese economy from various
angles, and concludes with recommendations for policy directions. It points
out that "Sudan urgently needs to re-establish macroeconomic stability and
create conditions for stronger inclusive growth after the phasing out of the
current military rule. The October 2021 coup crushed the promises of a
reformist, civilian-led democratic transition and returned Sudan to a state
similar to the isolation that preceded the revolution. However, overcoming
all the challenges previously discussed requires the steering of Sudan back
to a path of well thought out macroeconomic reforms, fiscal transparency and
accountability for public funds, and of rule of rule of law and equality
among citizens. If ongoing domestic and international efforts to bring
civilian political forces to agree on a consensus path to the restoration of
democracy succeed, we make the following broad recommendations to the new
executive emerging from this consensus that has proven elusive one year into
military rule.

 

The STPT report recommends "formulation of a new economic recovery plan
which contains specific elements to restore macroeconomic stability,
external sector imbalances, and resume economic reform programs by fully
engaging with the IMF, WBG, development partners, and the international
community, especially with regard to HIPC debt relief. Moreover, a fiscal
adjustment plan cantered on domestic revenue mobilisation, public
expenditure review, strengthening social protection, enhancing the role of
the private sector, banking sector reform, enactment of laws and regulation
for gold production management should be adopted. Moreover, civilian control
of the economy is a necessary prerequisite for a democratic Sudan, and the
job creation for youth.

 

"Enhancing economic governance and reducing the opportunities for corruption
in Sudan: Overarching challenges in Sudan in the wake of 25th October coup
include fragility, lack of transparency, and poor data quality requiring
urgent economic governance and addressing vulnerability to corruption, where
Sudan has limited capacity and multiple constraints to move forward to
pursue necessary reforms to strengthen public financial management and
fiscal transparency, enhancing oversight of SOEs, promoting transparency in
the petroleum and mining (especially gold) sector, reforming the tax
exemption regime, enhancing CBOS governance and operations, strengthening
financial sector oversight, and strengthening the anti-corruption framework
and rule of law."

 

'Civilian control of the economy is a necessary prerequisite for a
democratic Sudan to focus on sound economic management'

 

The report insists that civilian control of the economy is a necessary
prerequisite for a democratic Sudan to focus on sound economic management to
permit and facilitate the private sector actors to participate in the
market, regulate when the public interest is impacted, build the capacity of
civil society to hold the public sector accountable to the public.

 

It concludes that "the international community must play a role in restoring
macroeconomic stability in Sudan. A transition to democratic civilian
government is still a real possibility. Despite the military's efforts to
block this path, the protest movement and people's resistance are still
going strong and show no signs of waning. However, the people of Sudan need
support from their international partners and friends, including the US, the
EU and its member states, the Gulf countries and other Friends of Sudan. The
restoration of the democratic path will serve not only the democratic
aspirations of the people of Sudan, but also stability in the region and
international democracy."

 

-Dabanga.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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for guideline purposes only and sourced from third parties.

 


 

 


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