Major International Business Headlines Brief::: 29 September 2022

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Major International Business Headlines Brief::: 29 September 2022 

 


 

 


 <https://wwww.nedbank.co.zw/> 

 


 

 


 

ü  Bank's £65bn move driven by pension fund fears

ü  Optus: How a massive data breach has exposed Australia

ü  EU Commission to make it easier to sue over AI products

ü  Emergency Bank move will not solve the problem

ü  Chinese yuan: Currency hits record lows against US dollar

ü  Wall Street firms fined $1.8bn over staff messages

ü  Israel's fast-growing trade ties with the UAE

ü  IMF openly criticises UK government tax plans

ü  Nord Stream: Ukraine accuses Russia of pipeline terror attack

ü  Sudanese Electricity Workers Lift Strike Following Agreement On Salaries

ü  Malawi: Sec. Blinken Hosts President Chakwera to Sign $350M
Infrastructure Grant

ü  Nigeria: Ethiopian Airlines to Own 49% Stake in New Nigeria Air

ü  Uganda: Stressed Traders Beg Parliament to Intervene As Taxes Drive Them
Out of Business

ü  South Africa: Petrol Price Drop On Cards for October - South African News
Briefs - September 28, 2022

ü  Ghana: Oil Revenue - Ghana Bags $731.94 Million in Half Year 2022

 


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Bank's £65bn move driven by pension fund fears

The Bank of England stepped in to calm markets after some types of pension
funds were at risk of collapse.

 

It pledged to buy £65bn of government bonds after Friday's mini-budget
sparked turmoil on financial markets and the pound plunged.

 

Investors had demanded a much higher return for investing in government
bonds, causing some to halve in value.

 

Pension funds, which invest in bonds, were forced to start selling, sparking
fears of a fresh market downturn.

 

The Bank said its decision to buy government bonds at an "urgent pace" was
driven by concern over "a material risk to UK financial stability."

 

The government borrows money to fund its spending plans by selling bonds, or
"gilts", to investors such as pension funds and big banks on international
markets.

 

But a collapse in the price of those bonds was forcing some pension funds to
sell gilts and assets, further forcing down the price.

 

If that process had continued, there was a risk that those pension funds
could have got to a position where they couldn't pay their debts.

 

To stop this from happening the Bank said it would buy around £65bn of gilts
on Wednesday.

 

Joe Dabrowski, deputy director of industry group the Pensions and Lifetime
Savings Association, said: "While this is a complex situation as there has
been a lot of volatility in the gilt markets in recent days, we would not
expect any significant issues for savers."

 

This is an immense show of force from the Bank of England trying to calm
borrowing markets. It is already having an impact. It also raises some
questions.

 

First and foremost it underlines that this is a crisis, with the Bank
responding in emergency mode. The clear cause was the chancellor's
mini-budget, leading to a loss of market confidence, and spiralling
borrowing rates on government debt.

 

That crash in the value of loans to the government threatened to become a
"material risk to financial stability", says the Bank.

 

The Pensions Regulator said it is monitoring financial markets closely for
their impact on the funding of defined benefit, or final salary pension
schemes, a spokesperson said.

 

"We welcome steps announced by the Bank of England to restore orderly
conditions through temporary purchases of long-dated UK government bonds,"
the spokesperson added.

 

The pound hit a record low on Monday following the chancellor's mini-budget,
which pledged £45bn of tax cuts as part of a plan to boost economic growth.

 

The level of government borrowing required had shocked investors who
questioned the sustainability of the public finances.

 

UK government bond markets and stock markets, which had seen sharp falls,
stabilised after the Bank's announcement and the pound also rose slightly.

 

The government has insisted it is standing by its plan despite growing
criticism.

 

Treasury minister Andrew Griffith said on Wednesday that its tax cuts were
the "right plans" to grow the UK economy.

 

He said the Bank of England had "done their job" by announcing it would buy
government debt to stabilise the economy.

 

It came after the International Monetary Fund openly criticised the
government's tax cut plans, warning that the measures were likely to fuel
the cost-of-living crisis and increase inequality.

 

Labour leader Sir Keir Starmer accused the government of "losing control of
the economy,"

 

"What the government needs to do now is recall Parliament and abandon this
budget before any more damage is done," he said.

 

While the government says it will not reverse its tax cuts, it has promised
to release further plans to boost growth and reduce public debt on 23
November.

 

In a statement, the Treasury said it would continue to work closely with the
Bank "in support of its financial stability and inflation objectives."

 

Former IMF deputy director Mohamed El-Erian told the BBC's Newsnight that UK
policy had been "incredibly incoherent", with the government and the Bank of
England working at cross-purposes.

 

Spending cuts

Meanwhile, chief secretary to the Treasury Chris Philp confirmed on
Wednesday that government departments are being asked to find spending cuts.

 

Speaking on ITV's Peston, Mr Philp said government departments are being
asked to "look for efficiencies wherever they can find them".

 

The efficiencies will "stick to the targets" of the 2021 Comprehensive
Spending Review, Mr Philp said.

 

Any savings will "enable us to target spending on things that target
growth," he said.

 

Ministers have not decided whether benefits will rise in line with inflation
in the autumn, he added.

 

Mr Philp rejected calls for the OBR report on the mini-budget to be
published, saying projections will be held until the 23 November to ensure
they are done "in a way that's organised and thoughtful".-BBC

 

 

 

Optus: How a massive data breach has exposed Australia

Last week, Australian telecommunications giant Optus revealed about 10
million customers - about 40% of the population - had personal data stolen
in what it calls a cyber-attack.

 

Some experts say it may be the worst data breach in Australia's history.

 

But this week has seen more dramatic and messy developments - including
ransom threats, tense public exchanges and scrutiny over whether this
constituted a "hack" at all.

 

It's also ignited critical questions about how Australia handles data and
privacy.

 

The alarm was sounded last Thursday

Optus - a subsidiary of Singapore Telecommunications Ltd - went public with
the breach about 24 hours after it noticed suspicious activity on its
network.

 

Australia's second biggest telecoms provider said current and former
customers' data was stolen - including names, birthdates, phone numbers,
email addresses, passport numbers and driving licence numbers. It stressed
that payment details and account passwords were not compromised.

 

 

Those whose passport or licence numbers were taken - roughly 2.8 million
people - are at a "quite significant" risk of identity theft and fraud, the
government has since said.

 

Optus said it was investigating the breach and had notified police,
financial institutions, and government regulators. The breach appears to
have originated overseas, local media reported.

 

In an emotional apology, Optus chief executive Kelly Bayer Rosmarin called
it a "sophisticated attack", saying the company has very strong
cybersecurity.

 

"Obviously, I am angry that there are people out there that want to do this
to our customers, and I'm disappointed that we couldn't have prevented it,"
she said on Friday.

 

Then a ransom threat was made

Early on Saturday, an internet user published data samples on an online
forum and demanded a ransom of $1m (A$1.5m; £938,000) in cryptocurrency from
Optus.

 

The company had a week to pay or the other stolen data would be sold off in
batches, the person said.

 

Investigators are yet to verify the user's claims, but some experts quickly
said the sample data - which contained about 100 records - appeared
legitimate.

 

Sydney-based tech reporter Jeremy Kirk contacted the purported hacker and
said the person gave him a detailed explanation of how they stole the data.

 

The user contradicted Optus's claims the breach was "sophisticated", saying
they puled the data from a freely accessible software interface.

 

"No authenticate needed
 All open to internet for any one to use," they said
in a message, according to Kirk.

 

As data circulates, revelations of more stolen details

In another escalation on Tuesday, the person claiming to be the hacker
released 10,000 customer records and reiterated the ransom deadline.

 

But just hours later, the user apologised - saying it had been a "mistake" -
and deleted the previously posted data sets.

 

"Too many eyes. We will not sale [sic] data to anyone," they posted.
"Deepest apology to Optus for this. Hope all goes well from this."

 

That sparked speculation about whether Optus had paid the ransom - which the
company denies.

 

Adding to the problem, others on the forum had copied the now-deleted data
sets, and continued to distribute them.

 

It also emerged some customers' Medicare details - government identification
numbers that could provide access to medical records - had also been stolen,
something Optus did not previously disclose.

 

Late on Wednesday, the company said this had affected almost 37,000 Medicare
cards.

 

'Possibly Australia's most serious breach'

Optus has been inundated with messages from angry customers since last week.

 

People have been warned to watch out for signs of identity theft and for
opportunistic scammers, who are said to be already cashing in on the
confusion.

 

A class-action lawsuit could soon be filed against the company. "This is
potentially the most serious privacy breach in Australian history, both in
terms of the number of affected people and the nature of the information
disclosed," said Ben Zocco from Slater and Gordon Lawyers.

 

The government has called the breach "unprecedented" and blamed Optus,
saying it "effectively left the window open" for sensitive data to be
stolen.

 

In an ABC television interview on Monday, Cyber Security Minister Clare
O'Neil was asked: "You certainly don't seem to be buying the line from Optus
that this was a sophisticated attack?"

 

"Well, it wasn't. So no," Ms O'Neil replied. The moment drew lots of
attention online.

 

Ms Bayer Rosmarin told News Corp Australia on Tuesday: "We have multiple
layers of protection. So it is not the case of having some sort of
completely exposed APIs [software interfaces] sitting out there.

 

"I think most customers understand that we are not the villains," she said,
adding Optus could not say more while the investigation was ongoing.

 

The company has faced calls to cover the costs of replacement passport and
driving licences, as people scramble to protect themselves.

 

'A decade behind on cyber-security'

The breach highlights how much Australia lags other parts of the world on
privacy and cyber issues, Ms O'Neil says.

 

"We are probably a decade behind
 where we ought to be," she told the ABC.

 

Both sides of politics have traded blame on the issue. Opposition MPs have
said the Labor government is "asleep at the wheel", but the government
points out it was only elected in May after a decade of conservative rule.

 

Ms O'Neil pointed to two areas needing urgent reform.

 

She argues the government should be able to better penalise companies like
Optus. In some countries, the company would have faced hundreds of millions
of dollars in penaltiesbut Australia's fine is capped at about $2m, she
said.

 

She also wants to expand cyber-security laws that were introduced last year
to include telecommunications companies.

 

"At the time, the telecommunications sector said: "Don't worry about us -
we're really good at cybersecurity. We'll do it without being regulated. I
would say that this incident really calls that assertion into question."

 

Security experts have also suggested reforming data retention laws so
telecommunication companies don't have to keep sensitive information for so
long. Ex-customers should also the right to request companies delete their
data, experts say.

 

Optus says it is required to keep identity data for six years under the
current rules.

 

Other industry figures have argued consumers should be able to take
companies that lose control of their information to court, instead of the
industry regulator.-BBC

 

 

 

EU Commission to make it easier to sue over AI products

The European Commission has proposed new rules to help people harmed by
products using artificial intelligence (AI) and digital devices like drones.

 

The AI Liability Directive would reduce the burden of proof on people suing
over incidents involving such items.

 

Justice Commissioner Didier Reynders said it would make a legal framework
that was fit for the digital age.

 

Self-driving cars, voice assistants and search engines could all fall under
the directive's scope.

 

If passed, the Commission's rules could run alongside the EU's proposed
Artificial Intelligence Act - the first law of its kind to set limits on how
and when AI systems can be used.

 

Artificial intelligence systems are trained on large amounts of data or
information to allow machines to perform tasks which would typically be
considered a matter of human intelligence.

 

The AI Liability Directive, published by the European Commission on
Wednesday, will introduce a "presumption of causality" for those claiming
injuries by AI-enabled products.

 

This means victims will not have to untangle complicated AI systems to prove
their case, so long as a causal link to a product's AI performance and the
associated harm can be shown.

 

For a long time, social media firms have hidden behind the caveat that they
are merely platforms for other people's stuff and therefore not responsible
for the content of it.

 

The EU does not want to repeat this scenario, with companies which make
drones, for example, getting off the hook if they cause harm just because
the firm itself wasn't directly behind the controllers.

 

If your product is set up to be able to cause distress or damage, then you
need to take responsibility if it does, is the clear message - and perhaps
one which is overdue.

 

Is this unduly harsh on a comparatively new industry? If a car crashes
because of the mechanics inside the vehicle, that's down to the
manufacturer. But the behaviour of the driver is not.

 

Should this draft go through, all eyes will be on the first test case.
Europe continues to chase the tail of big tech with big regulation - but is
it being realistic here?

 

According to the European Commission, high-risk use of AI can include
infrastructure or products which could directly affect someone's life and
livelihood, such as transport, exam-scoring and border control.

 

Information disclosure about such products will let victims gain more
insights into liability, but be subject to safeguards to "protect sensitive
information".

 

While such provisions in the directive could make businesses "unhappy",
Sarah Cameron, technology legal director at law firm Pinsent Masons, said
the rules helped clarify liability for AI-enabled products for consumers and
businesses alike.

 

"A major barrier to businesses adopting AI has been the complexity, autonomy
and opacity (the so-called black box effect) of AI, creating uncertainty
around establishing liability and with whom it sits," she said.

 

"The proposal will ensure that when AI systems are defective and cause
physical damage or data loss, it's possible to seek compensation from the
AI-system provider or from any manufacturer that integrates an AI system
into another product."-bbc

 

 

 

 

Emergency Bank move will not solve the problem

This is an immense show of force from the Bank of England trying to calm
borrowing markets. It is already having an impact. It also raises some
questions.

 

First and foremost it underlines that this is a crisis, with the Bank
responding in emergency mode. The clear cause was the chancellor's
mini-budget, leading to a loss of market confidence, and spiralling
borrowing rates on government debt.

 

That crash in the value of loans to the government threatened to become a
"material risk to financial stability", says the Bank.

 

That risk was apparent most immediately among pension funds. That's what
prompted the Bank of England's dramatic intervention.

 

Pension funds hold a lot of government bonds, known as gilts, because they
are normally such a stable investment. As their value plummeted concerns
grew for pension funds' solvency, raising the question whether they'd have
to sell off other assets, such as stock market shares.

 

So the Bank will now, for a temporary period, buy up government bonds in
unlimited quantities.

 

 

The effective interest rates being charged to the UK government in these
markets, which was spiralling to 20-year highs, has now fallen back.

 

But it was not a decision made by the Bank's Monetary Policy Committee, who
were informed of the decision after it was made by the Bank's financial
experts.

 

It comes at exactly the same time as that committee had been committed to do
the exact reverse policy - selling government debt. That process was due to
start next week and has now been delayed.

 

It is a massive intervention, and while it will not solve the government's
problems, it might buy them some time.

 

But it could confuse markets about the clarity of policy making and lines of
accountability. Sterling has fallen sharply again, close to all-time lows.

 

The intervention was driven specifically by the need to stave off chaos in
the corner of the financial services industry that underpins pension funds.

 

This explains why the Monetary Policy Committee, that normally authorises
bond-buying, did not make this decision. Insiders are adamant that this
decision does not signal anything about where interest rates might go, and
is not a form of loosening monetary policy or "printing money", creating it
out of thin air to help a troubled government with its funding.

 

But all of this is only required because of the violent turn against British
government debts since the mini-budget. It is a dramatic emergency medicine.
The risk still lingers. It does not solve the underlying problem.-BBC

 

 

 

Chinese yuan: Currency hits record lows against US dollar

China's yuan has hit fresh record lows against the surging US dollar.

 

The internationally-traded yuan fell to its lowest level since data first
became available in 2011.

 

China's domestic currency also reached its weakest point since the 2008
global financial crisis.

 

It comes as the dollar continues to rise in value against other major
currencies, after the US central bank increased interest rates again earlier
this month.

 

Meanwhile on Wednesday, major stock market indexes across Asia fell sharply.

 

Hong Kong's benchmark Hang Seng index closed 3.4% lower, Japan's Nikkei
ended the day down by 1.5% and the Kospi in South Korea lost 2.4%.

 

Many investors see the dollar as a safe place to put their money in times of
trouble.

 

That has helped to drive up its value against other currencies, including
the British pound - which hit an all-time low against the dollar on Monday.

 

Also on Wednesday, the dollar reached a fresh 20-year high against a
closely-watched group of leading global currencies.

 

The yuan's slide is yet another example of a currency weakening as a result
of the strong dollar.

 

It is also about the very different paths China and the United States are
taking in response to economic issues at home.

 

The People's Bank of China (PBOC) has been easing interest rates to revive
growth in an economy ravaged by Covid lockdowns, while the US Federal
Reserve is moving aggressively in the opposite direction as it tries to
control inflation.

 

Such a divergence is not wholly problematic, Joseph Capurso, head of
international and sustainable economics at the Commonwealth Bank of
Australia told the BBC.

 

The fall in the currency's value can actually be helpful for exporters
within China, he said, because it would make their goods cheaper and so
could increase demand.

 

That said, exports only make up 20% of the Chinese economy these days, so a
weak yuan will not turn around fundamental weakness domestically largely
caused by Beijing's zero-Covid strategy and a property crisis, said Mr
Capurso.

 

A weaker currency can also lead to investors pulling their money out of the
country and uncertainty in financial markets - something Chinese officials
will want to avoid with the Communist Party Congress coming up next month.

 

The yuan's fall has caused weakness in other currencies of developed
economies in the region, including the Australian and Singapore dollar as
well as the South Korean won.

 

Last week, the Bank of Japan intervened to support the yen for the first
time since 1998, after the currency weakened against the dollar.

 

Asia's emerging markets are vulnerable too - as they sell raw materials and
components to China's factories and so have increasingly become dependent on
the yuan.

 

Washington has in the past accused China of intentionally devaluing its
currency to keep exports cheap and imports from the US expensive.

 

While the strong dollar has rattled world markets, it is unlikely to deter
the Fed from continuing to raise rates.

 

"The strong dollar is working for the US market," Dimitri Zabelin at the
London School of Economics' foreign policy think-tank said.

 

"It will be a consideration but it will not weigh as heavy as domestic
concern about inflation."

 

China's central bank has been trying to slow the yuan's slide by making it
more expensive to bet against the currency. The PBOC also cut how much
foreign currency banks have to hold.-BBC

 

 

 

Wall Street firms fined $1.8bn over staff messages

Some of Wall Street biggest companies have been fined a total of $1.8bn
(£1.7bn) by US financial watchdogs after staff discussed deals and trades on
their personal devices and apps.

 

The Securities and Exchange Commission (SEC) says the investigation
uncovered "pervasive off-channel communications".

 

Barclays, UBS and Goldman Sachs were among the 16 firms named by regulators.

 

The sweeping industry probe is a landmark case for the SEC and Commodity
Futures Trading Commission (CFTC).

 

In separate statements on Tuesday, the SEC announced fines totalling $1.1bn,
while the Commodity Futures Trading Commission said it had imposed $710m of
penalties.

 

"Finance, ultimately, depends on trust. By failing to honour their
recordkeeping and books-and-records obligations, the market participants we
have charged today have failed to maintain that trust," SEC chair Gary
Gensler said.

 

 

>From January 2018 through September 2021, bank workers routinely
communicated about business matters with colleagues, clients and other third
party advisers using apps on their personal devices such as text messages
and WhatsApp, regulators said.

 

The firms did not preserve most of those chats, which violated federal rules
that require broker-dealers and other financial institutions to keep records
of business communications.

 

That hampered the ability of regulators to ensure compliance with key rules
and gather evidence in unrelated probes, the agencies said.

 

The investigation has shaken Wall Street, with some bankers losing their
jobs. It has also forced companies to introduce tough new measures to stamp
out unauthorised use of apps.-BBC

 

 

 

Israel's fast-growing trade ties with the UAE

The UAE's ambassador to Israel, Mohamed Al Khaja, right, joins with Ittai
Ben-Zeev and Ahmed Al Zaobi to open the day's trading on the Tel Aviv Stock
Exchange earlier this month

Mohamed Al Khaja helps press a button to ring the Tel Aviv Stock Exchange
opening bell, setting off a cascade of gold paper hearts through the shiny
glass building.

 

Cheers erupt as Mr Al Khaja, the United Arab Emirates' Ambassador to Israel,
then shakes hands with Ittai Ben-Zeev, the boss of the exchange, and Ahmed
Al Zaobi, chairman of UAE financial centre Abu Dhabi Global Market.

 

It's no ordinary opening of the main Israeli stock market. Instead, it's
another milestone to celebrate in the deepening ties between Israel and the
UAE.

 

It comes two years after the two countries signed the historic, US-brokered
Abraham Accords together with fellow Gulf state Bahrain.

 

These statements saw the UAE and Bahrain agree to normalise relations with
Israel, establishing full diplomatic ties. It ended the decades-long boycott
of Israel by all Gulf states.

 

Emirati investor Sabah Al-Binali, part of the visiting UAE delegation, was
all smiles as he watched the event in Tel Aviv earlier this month.

 

"We are witnessing history in the making, seeing the steady development of a
long, deep and fruitful relationship between natural Middle East neighbours,
he said.

 

Mr Al-Binali sees the growing business ties between Israel and the UAE as a
win-win for everyone.

 

"There is so much natural synergy between Israeli and Emirati business and
technology skills and experience, that I expect the results of our
cooperation to be even greater than the sum of the already impressive parts.

 

"We are currently looking at joint projects in logistics, med-tech, ag-tech
and cybersecurity, to name just a few sectors where work is already
advanced."

 

Mr Al-Binali also pointed out that, at the conclusion of last month's visit,
several business deals were agreed in principle.

 

Economists agree that the Abraham Accords will lead to a substantial
increase in trade between Israel and the UAE. On the one hand Israel has its
strong tech sector, including military tech.

 

Meanwhile, the UAE has the second-biggest economy in the Gulf after Saudi
Arabia. While still dominated by oil sales, the UAE is trying to diversify.

 

Ketaki Sharma is the founder and chief executive of Algorithm Research, a
data and economics research firm, based in Dubai, one of the seven emirates
that make up the UAE.

 

She believes that trade between Israel and the UAE will exceed $10bn
(£9.3bn) over the next five years.

 

"The accord was signed in 2020 and has already given a massive trade boost
to both Israel and the UAE," says Ms Sharma.

 

She points to UN data showing that from 2020 to 2021 Israel's annual exports
to the UAE soared from $74m to $384m. At the same time, trade going in the
other direction rose from $115m to $632m.

 

"Some of the MOUs [memorandum of understanding, or outline agreements]
signed [between the two countries] include those in agriculture, clean
energy, cybersecurity and smart cities," says Ms Sharma.

 

"A free trade agreement was also signed between the two countries in early
2022 that has led to the removal of tariffs on 96% of goods traded between
the nations."

 

Israel is already said to have broken records in arms sales following the
Abraham Accords. According to the Israeli Ministry of Defence, arms sales in
2021 peaked at $11.3bn, with 7% of those going to the UAE and Bahrain.

 

Israel's former defence minister Moshe Ya'alon (2013-2016) tells the BBC
that the main reason is a common security threat in the region - namely,
Iran.

 

"In the last decade Israel and the Gulf states have been facing common
enemies, namely Iran and her proxies, and although the Palestinian issue
still remains there is no longer the Arab-Israeli conflict."

 

The Palestinian Authority has, however, sharply criticised the normalisation
deals with Israel, accusing such Arab states of selling out their cause.

 

Outside of the Gulf, Morocco has since also signed a similar normalisation
agreement with Israel. As has Sudan, although progress between that country
and Israel has stalled.

 

Mr Ya'alon is now the chairman of Synaptech, an Israeli-run, Abu Dhabi-based
investment fund.

 

He believes that defence alliances are a key component to Israel's new ties
with the Gulf states. But for national security reasons, he can't give many
details. He'll only confirm: "We have found a way to cooperate about
security."

 

Mr Ya'alon insists there are lots of other areas for growth as well.

 

"Gulf state leaders realised they need something more than oil, such as high
tech, sophisticated agriculture in the desert, exploitation of water etc,"
he says. "In Israel we are fortunate to have achieved these technologies. So
we have many common interests."

 

Deals are also being signed between Israeli and UAE firms in the energy
sector. In September of last year Israeli company NewMed Energy (then called
Delek Drilling) announced the sale of its 22% stake in Israeli offshore gas
field Tamar to UAE firm Mubadala Petroleum for $1bn.

 

NewMed had needed to find a buyer to comply with government competition
rules.

 

"The deal we signed with Mubadala Petroleum was a significant step in
deepening our regional activity and is part of our goal to strengthen our
relations with the countries of the region," says NewMed chief executive
Yossi Abu.

 

Mas Watad is a Palestinian citizen of Israel, and the co-founder and
president of Arab-language dieting app and website Dawsat.

 

Together with her partner Tally Zingher, they have recently expanded to the
Gulf, thanks to the Abraham Accords.

 

She says the agreements have been "game changer", as she and her team are
now able to move freely between Israel and the UAE and Bahrain. Ms Watad has
also been able to relocate her family home to Abu Dhabi.

 

"The UAE wants to be a leader amongst some of the most important issues,
health being at the forefront," she says, adding that the Abraham Accords is
allowing Dawsat to see its "full effect and impact across the Arab world".

 

Ms Sharma says she hopes that other countries in the Gulf region will now
seek their own agreements with Israel as they "see favourable outcomes from
the UAE's experience".

 

"This is just beginning," she says, "We are all optimistic about the
future."-BBC

 

 

 

IMF openly criticises UK government tax plans

The International Monetary Fund has openly criticised the UK government over
its plan for tax cuts, warning that the measures are likely to fuel the
cost-of-living crisis.

 

In an unusually outspoken statement, the IMF said the proposal was likely to
increase inequality and add to pressures pushing up prices.

 

Markets have already raised alarm over the plans, sending the pound
plunging.

 

The government says the measures will kickstart economic growth.

 

What is the IMF and why does it matter?

On Wednesday morning, sterling fell by 0.7% to $1.06 after the IMF raised
its concerns. It comes after the currency hit a record low of around $1.03
on Monday.

 

Chancellor Kwasi Kwarteng unveiled the country's biggest tax package in 50
years on Friday. But the £45bn cut has sparked fears that government
borrowing could surge along with interest rates.

 

 

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

 

It said it understood the package aimed to boost growth, but it warned that
the cuts could speed up the pace of price rises, which the UK's central bank
is trying to bring down.

 

"Furthermore, the nature of the UK measures will likely increase
inequality," it said.

 

'Re-evaluate'

The IMF said that the government publishing a fiscal plan on 23 November
gave it an opportunity to "re-evaluate" tax measures, "especially those that
benefit high income earners".

 

The UK government proposals would scrap the top rate of income tax, and end
a cap on bankers' bonuses, among other measures.

 

The announcement on Friday sparked days of financial turmoil, as investors
dumped the pound and UK debt. Some of the country's biggest lenders also
suspended mortgage deals amid the uncertainty.

 

The Treasury said: "We are focused on growing the economy to raise living
standards for everyone."

 

It added that Mr Kwarteng was due to publish his medium-term plan for the
economy on 23 November, which would include ensuring that UK debt falls as a
share of economic output in the medium term.

 

Meanwhile, Lord Frost, the former Brexit minister and close ally of Prime
Minister Liz Truss, criticised the IMF's statement.

 

He told the Daily Telegraph: "The IMF has consistently advocated highly
conventional economic policies. It is following this approach that has
produced years of slow growth and weak productivity.

 

"The only way forward for Britain is lower taxes, spending restraint, and
significant economic reform."

 

BBC economics editor Faisal Islam says the IMF's "stinging rebuke...
reflected similar concerns from the world's major finance ministries that a
crisis brewing in the UK could spill over into a global slowdown".

 

Adnan Mazarei, a former deputy director at the IMF, said it was common for
the foundation to make strong statements on "emerging market countries with
problematic policies but not often G7 countries".

 

He said it showed the IMF was worried that tax cuts were permanent and that
the budget would have to be financed by more borrowing. It was also
concerned about inflation rising which would require interest rate increases
by the Bank of England.

 

He told BBC Radio 4's Today programme "the fear" was the Bank of England and
the Treasury were not working together properly for the benefit of the UK
economy.

 

He said: "There is also a sense of problems in the country's economic
management and their ability to handle issues, which could lead to problems
of inflation [and] financial market difficulties... for example we've seen
problems in the mortgage markets which will hurt the UK household."

 

On Tuesday, the Bank of England signalled that it was prepared to ramp up
interest rates in response to the slump in the value of the pound.

 

Its chief economist Huw Pill said the Bank "cannot be indifferent" to the
developments of the past days.

 

He said the Bank would have to deliver a "significant monetary policy
response" to protect sterling.

 

Speaking to BBC Two's Newsnight, former US Treasury Secretary Larry Summers
described the situation facing the UK as "very ominous".

 

"I can't in all honesty remember a time when a set of policy announcements
from a G7 country elicited so negative a response both from markets and from
economic experts," he said.

 

"When a country sees its interest rates rise by [as much as they have] in
two days at the same time that its currency is falling in a major way, that
is a sign that there has been a major loss of market credibility and market
confidence.

 

"The kind of warning that Britain received from the IMF today is a kind of
warning that comes much more frequently to emerging markets with new
governments than to a country like Britain."

 

'Fiscal prudence'

Asked about the UK's plans at an event in Washington, White House economic
adviser Brian Deese said he had not been surprised by the negative reaction
of the markets and that it was important to focus on "fiscal prudence,
fiscal discipline", the Reuters news agency reported.

 

Moody's credit rating agency said on Wednesday that the UK's plan for "large
unfunded tax cuts" was "credit negative" and would lead to higher,
persistent deficits "amid rising borrowing costs [and] a weaker growth
outlook". Moody's did not change the UK's credit rating.

 

Labour's shadow chancellor Rachel Reeves said the government must "urgently
lay out how it will fix the problems it created through its reckless
decisions to waste money in an untargeted cut in the top rate of tax".

 

"Waiting until November [when the fiscal plan is published] is not an
option," she said. Instead, "the government must urgently review the plans
made in their fiscal statement last week".

 

She added: "This statement from the IMF should set alarm bells ringing in
government and make it clear that they need to act now."

 

This is an exceptionally blunt warning from the IMF, indicating that Kwasi
Kwarteng's £45bn mini-Budget spree may not only have been ill-judged and
risks sharper rate rises - but could also increase income inequality.

 

How likely is the latter?

 

The Truss government's growth plan centres on tax cuts for the better off,
in the hope it will benefit wider society by boosting investment, innovation
and job creation.

 

But a 2020 study by academics at the London School of Economics examined the
impact of such policies in wealthy countries over five decades - and found
they failed to significantly boost growth or jobs. They were more likely,
the study claimed, to widen the gap between rich and poor.

 

At the very start of the Conservative leadership campaign, a top IMF
official told me large-scale universal tax cuts in the UK would be a
"mistake" .

 

Instead, as the energy price crisis has intensified, it's been calling for
measures that are targeted towards the least well-off. And it's openly
urging the government to focus on that when the Chancellor reveals the next
instalment of his plans in November.

 

There's little indication so far those calls will be heeded.

 

"We are closely monitoring recent economic developments in the UK and are
engaged with the authorities.

 

"We understand that the sizable fiscal package announced aims at helping
families and businesses deal with the energy shock and at boosting growth
via tax cuts and supply measures.

 

"However, given elevated inflation pressures in many countries, including
the UK, we do not recommend large and untargeted fiscal packages at this
juncture, as it is important that fiscal policy does not work at cross
purposes to monetary policy.

 

"Furthermore, the nature of the UK measures will likely increase inequality.

 

"The November 23 budget will present an early opportunity for the UK
government to consider ways to provide support that is more targeted and re
evaluate the tax measures, especially those that benefit high income
earners."-BBC

 

 

 

Nord Stream: Ukraine accuses Russia of pipeline terror attack

Ukraine has accused Russia of causing leaks in two major gas pipelines to
Europe in what it described as a "terrorist attack".

 

Ukrainian presidential adviser Mykhaylo Podolyak said the damage to Nord
Stream 1 and 2 was "an act of aggression" towards the EU.

 

He added that Russia wanted to cause pre-winter panic and urged the EU to
increase military support for Ukraine.

 

Seismologists reported underwater blasts before the leaks emerged.

 

"There is no doubt that these were explosions," said Bjorn Lund of Sweden's
National Seismology Centre, as quoted by local media.

 

The operators of Nord Stream 2 warned of a loss of pressure in the pipeline
on Monday afternoon. That led to a warning from Danish authorities that
ships should avoid the area near the island of Bornholm.

 

The operator of Nord Stream 1 said the undersea lines had simultaneously
sustained "unprecedented" damage in one day.

 

Denmark's Defence Command has released footage of the leaks which shows
bubbles at the surface of the Baltic Sea near the island.

 

The largest patch of sea disturbance is 1km (0.6 miles) in diameter, it
says.

 

"Gas leak from NS-1 [Nord Stream 1] is nothing more than a terrorist attack
planned by Russia and an act of aggression towards the EU. Russia wants to
destabilise the economic situation in Europe and cause pre-winter panic,"
Ukraine's Mr Podolyak tweeted in English.

 

He also called on European partners, particularly Germany, to increase
military support for Ukraine.

 

"The best response and security investment are tanks for Ukraine. Especially
German ones," he said.

 

Other European leaders have raised the idea that the damage to the pipelines
was deliberately inflicted.

 

Polish Prime Minister Mateusz Morawiecki blamed it on sabotage and said it
was probably linked to the war in Ukraine.

 

Denmark's Prime Minister, Mette Frederiksen, said it was too early to come
to conclusions, but that it was hard to imagine the multiple leaks could be
a coincidence.

 

At the same time, unconfirmed reports in German media said authorities were
not ruling out an attack on the undersea gas network.

 

A Kremlin spokesperson, Dmitry Peskov, said he was "extremely concerned"
about the incident, and the possibility of a deliberate attack could not be
ruled out.

 

The EU has previously accused Russia of using a reduction in gas supplies as
an economic weapon, in response to European sanctions imposed because of
Russia's invasion of Ukraine.

 

However, Moscow denies this, saying the sanctions have made it impossible to
maintain the gas infrastructure properly.

 

Map showing the route of the Nord Stream pipelines between Russia and
Germany.

Whatever the cause of the damage, it will not immediately affect the supply
of gas to Europe, as neither pipeline was operational.

 

The Nord Stream 1 pipeline - which consists of two parallel branches - has
not transported any gas since August when Russia closed it down for
maintenance.

 

It stretches 745 miles (1,200km) under the Baltic Sea from the Russian coast
near St Petersburg to north-eastern Germany. Its twin pipeline, Nord Stream
2, was halted after the Russian invasion of Ukraine began.

 

Although neither pipeline is in operation, they both still contain gas.

 

German, Danish and Swedish authorities are all investigating the incidents.

 

The Danish energy authority told the Reuters news agency that the leak could
continue for several days and perhaps even a week.

 

The pipeline's operators - Nord Stream AG - said it was impossible to
estimate when the system's infrastructure would be restored.

 

Energy prices have soared since Moscow invaded Ukraine and scarce supplies
could push up costs even further.

 

There are growing fears that families in the EU will be unable to afford the
cost of heating this winter.

 

Poland is leading the effort to curb reliance on Russia, once Europe's main
energy supplier, with the inauguration of a new gas pipeline.

 

The Baltic Pipe will be a new link for Norwegian gas to Europe, which will
allow countries to the south of Poland, including Slovakia and the Czech
Republic, to access it.-BBC

 

 

 

Ghana: Oil Revenue - Ghana Bags $731.94 Million in Half Year 2022

Ghana earned $731.94 million in petroleum receipts in the first half of this
year, representing 108.9 per cent increase over the 2021 half year receipt
of $350. 31 million.

 

The figure is also $51.39 million shy of the $783.33 million bagged in the
entire 2021, and brings to $8.09 billion the revenue the country had
received since 2011 when it started producing oil in commercial quantities.

 

The increase in the receipts, according to the Public Interest and
Accountability Committee (PIAC), was largely attributable to revenues in
respect of corporate taxes, surface rentals and crude oil lifting.

 

This was contained in the semi-annual report on the management and use of
petroleum revenues for January -June 2022 released by the Committee at a
press briefing in Accra yesterday.

 

Of the total receipts, Carried and Participating Interest (CAPI) yielded the
highest of $354.17 million (48.39 per cent); Royalties, $190.43 million
(26.02 per cent ) ; Corporate Income Tax, $186.33 million (25.46 per cent);
Surface Rentals , $687,759 and Overnight Interest on Petroleum Holding Fund
(PHF) , $304,613.

 

 

On the distribution, the report said the Ghana National Petroleum
Corporation (GNPC) received $173.84 million and the Annual Budget Funding
Amount (ABFA) $183.02 million.

 

The Ghana Petroleum Funds (GPFs) consisting of the Ghana Stabilisation Fund
(GSF) and the Ghana Heritage Fund (GHF), $390.02 million with GSF$273.02
million and GHF $117 million.

 

According to the report, Ghana produced a total of 25,861,810.42 barrels
(bbls) of crude oil in the first half of 2022 from its three offshore
producing fields.

 

The Jubilee field produced 14,906,957 bbls, representing 57.6 per cent;
Tweneboa-Enyenra-Ntomme (TEN), 4,394,067 bbls, representing 17 per cent and
SankofaGye-Nyame (SGN), 6,560,786 bbls representing 25.4 per cent.

 

This represents a 6.9 percent reduction from the first half of 2021
production volume of 27,767,859.00 barrels (bbls) and the third consecutive
reduction in year-on-year crude oil production volumes since 2011.

 

The decrease was as a result of reduced production on the TEN and SGN
fields, recording a decline of 34.3 and 21 percent respectively. Crude oil
production increased in the Jubilee Field by 16.6 percent.

 

The cumulative raw gas production (Associated Gas-AG and Non-Associated
Gas-NAG) for the period was 124,948.79 million standard cubic feet (MMSCF)
representing a two per cent reduction over the volume of 127,496.04 MMSCF
produced for the same period in 2021.

 

The report said production from Jubilee and TEN Fields decreased by 7.2 and
10.2 per cent respectively, whilst SGN's raw gas production increased by 5.1
per cent.

 

The Chairman of PIAC, Professor Kwame Adom-Frimpong who gave highlight of
the report said the retention of the current cap of $100 million on the GSF
for the year 2022 was not in accordance with the formula stipulated in
Legislative Instrument (LI) 2381.

 

"A proper application of the formula would have returned a cap of US$460.63
million. The Minister for Finance, in determining the cap on the GSF, should
comply with the relevant provisions of L.I 2381," he said.

 

-Ghanaian Times.

 

 

 

 

South Africa: Petrol Price Drop On Cards for October - South African News
Briefs - September 28, 2022

The price of 95 unleaded petrol is looking likely to decrease by around
R1.07 per litre, while 93 unleaded should come down by around 95c. The
Automobile Association has said that while the petrol outlook is positive,
the expected price increases to diesel are concerning as this is the fuel
mainly used in the mining, manufacturing and agricultural sectors, and an
increase here will lead to increased product prices down the line.

 

No, Jagersfontein Did Not Have Another Dam Wall Collapse - Authorities 

 

There has not been another dam wall collapse in Jagersfontein in the Free
State. The town is still reeling from a dam wall collapse on September 11,
which left one person dead and a trail of destruction that left hundreds
homeless. Free State  Environmental Affairs Department's Dr Mbulelo Nokwequ
has said that based on assessments, there wasn't another dam wall collapse
at Jagersfontein. He said that residents are seeing water coming from a
reservoir, due to drainage from the recent rainfall,  Eye Witness News
reports.

 

 

Undocumented Workers Arrested in Pretoria CBD

 

Eight undocumented foreigners and two employers were arrested at a shop in
the Pretoria CBD on the first day of the "mega blitz" inspection on
September 26, the Department of Employment and Labour said. Prohibition
notices were issued against the use of eight other employees at the shop for
contravention of the Occupational Health and Safety Act.

 

ANC KwaZulu-Natal Wants Zweli Mkhize to Run for Presidency

 

ANC branches in KwaZulu-Natal will now have to embark on the task of winning
over their counterparts in other parts of the country after being the only
province in the country to nominate former Health Minister Zweli Mkhize for
the position of party president, and national treasurer Paul Mashatile as
his deputy.

 

 

 

 

Uganda: Stressed Traders Beg Parliament to Intervene As Taxes Drive Them Out
of Business

Traders under the Kampala City Traders Association (KACITA) have petitioned
the Deputy Speaker of Parliament, Thomas Tayebwa, on the high costs of doing
business and prayed that government stops selective giving of tax waivers.

 

KACITA led by their Chairperson, Thadeus Musoke, said that following the
COVID-19 pandemic, several of their members lost property to banks due to
unpaid loans and are struggling to get back to business.

 

"Our loans accumulated, we tried to engage different government agencies and
the banks but what was designed to help us was not effective enough because
currently banks are auctioning buildings and property and the business
communities cannot access top-ups," Musoke said during the meeting held at
Parliament Building on Tuesday, 27 September 2022.

 

 

Musoke also said that during an earlier meeting with the President, they
requested the designing of a special fund to support traders to market
Ugandan products through the "Build and Buy Uganda" programme, a request
that has not been implemented to date.

 

The traders prayed that Parliament prevails over the Central Bank, which
sets a high Central Bank Rate (CBR) used to implement or signal its monetary
policy stance leading to high interest rates.

 

They also called for a fair tax regime arguing that traders have been
affected by the new tax policy that pushed the import duty tax on garments
from 25 to 35 percent or US$ 3.5 per kilogram. Musoke said the high costs of
doing business is also affecting their business as traders.

 

The Association also proposed that government should stop giving out tax
exemptions that only benefit a few business persons, but instead introduce
non-tax incentives like subsidies on utilities and expanding the transport
sector to ensure a conducive environment.

 

Responding to the petition, the Deputy Speaker, Tayebwa, hailed KACITA for
choosing dialogue over protests, which are not productive.

 

He urged KACITA to self-regulate to ensure that they produce standard
products for both local use and export.

 

He also appealed to the traders to export more, stating that focus on
imports puts a lot of pressure on the Ugandan economy and currency.

 

Later, during the plenary sitting, the Deputy Speaker, referred the petition
to the committee on Trade, Tourism and Industry to scrutinize the concerns
of members and report back to the House.

 

 

 

 

Nigeria: Ethiopian Airlines to Own 49% Stake in New Nigeria Air

The chosen bidder for shares in the new Nigerian airline, Nigeria Air is a
consortium led by Ethiopian Airlines, the nation's aviation minister,
announced Friday, 23 September 2022.

 

One of President Muhammadu Buhari's campaign pledges in the 2015 election
was for the airline to be privatised and relaunched.

 

In the deal, Ethiopian Airlines will own 49% of the new airline, the
Nigerian Sovereign Fund 46%, and the Nigerian federal government 5%.

 

Ethiopian Airlines will own 49% of the new airline, the Nigerian Sovereign
Fund 46%, and the Nigerian federal government 5%

Nigeria Air will have a US$300 million initial capital and 30 aircraft by
the end of four years

Nigeria Airways, the former national airline of the most populous nation in
Africa, was established in 1958 and is entirely possessed by the executive
branch. In 2003, it stopped being used

"Ethiopian Airlines (ET) Coalition has been chosen as the preferred
tenderer, offering an owner consortium of three Nigerian investors SAHCO,
MRS, and the Nigerian Sovereign Fund (46%), with FGN owning 5% and ET 49%,"
Mr Sirika was cited as saying in the announcement.

 

 

Hadi Sirika, the Minister of Aviation, told reporters that the Buhari
cabinet was expected to approve the shareholding proposal in the following
weeks. According to him, Nigeria Air would have a US$300 million initial
capital and 30 aircraft by the end of four years.

 

Ongoing Preparation

 

Nigeria Air will begin by offering service between Abuja, the nation's
capital, and Lagos, its commercial hub, and will eventually add other
routes. The airline will be allowed to purchase up to 30 aircraft between
the third and fourth year, according to Sirika. "We are planning to
initially bring in six Boeing 737 aircraft," he said.

 

The ICRC-mandated Request for Proposal (RFP) under the PPP Act is finished.
He said the contract would be negotiated between the consortium and the FGN
following the due diligence. This will result in an entire business case,
which is anticipated to be approved by the Federal Executive Council (FEC).

 

 

The statement read, "We anticipate this procedure to take 6-8 weeks."

 

He continued that Nigeria Air is a private limited firm that won't be
affected by the government.

 

To become a centre for West Africa, Nigeria has been working to establish a
national airline and improve its aviation infrastructure, which is currently
considered a hindrance to economic growth.

 

Nigeria Airways, the former national airline of the most populous nation in
Africa, was established in 1958 and is entirely possessed by the executive
branch but ceased operation in 2003.

 

Two months after it was launched, the initiative was put on hold because of
criticism regarding its viability and relevancy. A preliminary cost of
US$8.8 million and a takeoff cost of $300 million were anticipated for the
projected airline.

 

Nigeria Airways, a defunct airline in Nigeria, failed due to management
corruption.

 

The Nigerian government said the airline would launch operations before the
end of 2018, fulfilling President Muhammadu Buhari's pledge in his 2015
election campaign to create a national airline.

 

The Federal Executive Council (FEC) approved leasing three aircraft in July,
allowing the airline to launch operations on a soon-to-be-announced date.

 

When the government is having trouble paying for other crucial services,
many Nigerians remain sceptical of the plan to start a national carrier,
which would use a portion of public cash.

 

Seed Capital

 

According to Sirika, the money used to launch Nigeria Air, fulfil all AOC
criteria, and gain approval to operate an airline business is well within
the Federal Government of Nigeria's 5% capital contribution.

 

According to the FEC-approved Outline Business Case, this will be the total
needed to establish the National Carrier first for the AOC approval and
everything else required by strict national aviation requirements (OBC).

 

"This OBC is the milestone for the chosen Bidder Consortium and has been
reached by the preferred bidder's submitted business plan," he said.

 

The Minister stated, "It is the selected bidder's entire share capital of
roughly US$300 million that Within the following two years, Nigeria Air will
expand to 30 aircraft and begin international operations."

 

"No additional FGN investment will be allocated above the 5% share capital
of Nigeria's future national carrier, which was provided to launch Nigeria
Air," Sirika stated.

 

The bidding procedure

 

According to the statement, an invitation to bid for the ownership of
Nigeria Air under the Federal Government of Nigeria's Public-Private
Partnership (PPP) regulations, overseen by the Infrastructure Concession
Regulatory Commission (ICRC),

 

Published on March 5 in the Economist and several local Nigerian papers,
with a deadline for the Request for Proposal (RFP) set for May 10 2022, but
was later extended to June 10 2022.

 

On March 15, the Transaction Advisor built a data repository for all Nigeria
Air facts, including the Outline Business Case (OBC) and financial model.

 

"This data room reflects how open the PPP and RFP procedures were
conducted," it claimed.

 

According to the statement, an online bidders conference was held on March
28 with over 100 participants, and over 60 parties requested access to the
data room.

 

On June 10 2022, the Ministry received one closed proposal from the
Ethiopian Airline Consortium on time.

 

Several others tried to submit but could not reach the deadline." We are
unable to identify them because we did not gather the bids," the statement
read.

 

According to the Aviation Ministry, the evaluation team for the procedure
consisted of 11 specialists from the ICRC, FMFB & NP, and FMA. The TA
convened on July 20 and 21 and on August 1.

 

Ethiopian Airlines' profit hits US$937 million in 2022

 

While other African airlines are facing financial challenges due to
difficult operating situations, Ethiopian Airlines has maintained to
function successfully.

 

The airline recorded a 79% increase in revenue for the fiscal year that
ended July 30 2022, despite a 90% increase in profit. According to Mamo
Mihretu, CEO of Ethiopian Investment Holdings, this information is correct.

 

Mr Mihretu claims that the state-owned airline "This fiscal year, the
company generated US$5 billion in revenue, a 79% increase over the previous
year.

 

Despite the headwinds of a worsening global economic outlook, higher
gasoline costs, and a global pandemic, profit increased by 90% to $937
million."

 

-The Exchange.

 

 

 

Malawi: Sec. Blinken Hosts President Chakwera to Sign $350M Infrastructure
Grant

Washington, DC — The U.S. Secretary of State Antony Blinken and the
President of Malawi Lazarus Chakwera joined nearly 100 leaders from the U.S.
and Malawi today to sign the Malawi Transport and Land Compact  — a $350
million infrastructure grant between the U.S. government’s Millennium
Challenge Corporation (MCC) and the Government of Malawi.

 

MCC Chief Executive Officer Alice Albright and the Malawi Minister of
Finance and Economic Affairs Sosten Alfred Gwengwe served as signatories for
the compact.

 

“This agreement opens a new chapter in the partnership between the United
States and Malawi,” said Secretary Blinken , who is the Chair of MCC’s Board
of Directors. “[A partnership] that builds on our close collaboration over
decades, our shared democratic values, and the joint vision for a
prosperous, stable, resilient Malawi
Malawi will take the lead on putting
these plans into action. Like all MCC endeavors, these projects will be
transparent, they will be collaborative, and built to meet the highest
standards of quality.”

 

 

The Malawi Transport and Land Compact, which includes an additional $26.5
million contribution from the Government of Malawi, is designed to reduce
transport costs by upgrading more than 300 kilometers of roads to connect
farmers to markets and by strengthening the country’s land administration.

 

“We are proud to continue our longstanding partnership with the Government
of Malawi, which will have brought, in total, more than $747 million worth
of transformative projects to the country once the infrastructure projects
from our latest program are complete,” said Albright . “All together, MCC’s
grant programs in Malawi are expected to benefit more than 12 million
people, which is roughly half the total population, while cutting across key
sectors such as transportation, power, and agriculture. These investments,
coupled with key policy and institutional reforms in the country’s land
sector, will facilitate additional private-sector investments and directly
benefit Malawi’s greatest resource — arable land .”

 

 

Albright added that MCC has invested more than $9 billion with 25 African
countries. These investments are expected to benefit more than 90 million
people — including 5.3 million Malawians from the new Malawi Transport and
Land Compact.

 

Malawi’s economy has been significantly impacted by the competing crises of
global climate change, COVID-19, and the Ukraine/Russia conflict. While
conducting a joint analysis of Malawi’s economy, MCC and the Government of
Malawi identified the country’s exceptionally high transport costs as a key
economic barrier between farms and markets, as well as difficulties with
access to land for investment due to uncertain land rights.

 

 

The compact’s Accelerated Growth Corridors Project will invest more than
$228 million in Malawi’s transportation sector, including road updates in
four selected corridors located in prime agricultural areas. The project
also prioritizes road safety, future maintenance, and increased competition
by helping the Government of Malawi address policy, legislative,
institutional, and funding challenges that limit greater road improvements.

 

The compact’s Increased Land Productivity Project aims to sustainably
improve how land is used and managed at the national and sub-national level,
including the coordination of land planning, revenue collection and land
services. The project also seeks to modernize and increase the effectiveness
of property tax management systems that support improved service delivery in
Malawi’s four largest cities. The project’s activities will improve the
function of land markets while improving overall land value and encouraging
private investment.

 

“This is an historic occasion,” said President Chakwera during the ceremony.
“This is a very important program for Malawi, and a testament, not only to
the longstanding relation between Malawi and the United States, but also to
the progress Malawi has made in recent months to meet the exacting standards
of MCC’s scorecard, [and] the policies we have implemented for the
advancement of government, economic freedom, democracy, investments, and the
fight against corruption.”

 

“The fight against corruption ensures that investments like MCC’s compact
fulfil their intended purpose and yield their intended benefits,” added
President Chakwera.

 

MCC and the Malawi government first partnered in 2004 with a $20.9 million
threshold program  and again in 2011 with a $350.7 million energy-focused
compact  . The prior MCC-Malawi compact built the infrastructure Malawi
needed to connect to the Southern African Power Pool, expanded access to
reliable power through the construction and refurbishment of 22 substations
and 367 km of transmission and distribution lines, delivered an additional
12 megawatts of clean energy to the country, and supported the reforms
necessary to bring independently-produced power onto the Malawian grid.

 

“I am most grateful, once again, to the American people and the U.S.
government for their partnership in developing Malawi,” said President
Chakwera. “Together, we are making strides for everyone’s good.”

 

The Millennium Challenge Corporation is an independent U.S. government
agency working to reduce global poverty through economic growth. Created in
2004, MCC provides time-limited grants and assistance to countries that meet
rigorous standards for good governance, fighting corruption and respecting
democratic rights.

 

 

 

 

Sudanese Electricity Workers Lift Strike Following Agreement On Salaries

Khartoum — The Sudanese electricity workers who laid down their tools again
on Sunday to demand the implementation of the new salary structure,
yesterday lifted their strike after reaching an agreement with the Ministry
of Energy and Oil.

 

The strike that lasted three days, reportedly led to power outages in the
Republican Palace and a number of ministries on Monday. People complained of
electricity cuts for long hours after the load was reduced to 40 per cent by
the workers. The El Manshiya Bridge in Khartoum was closed on Monday and
Tuesday in protest against the power outages.

 

On September 7, Radio Dabanga reported that the staff of the Sudanese
Electricity Sector laid down their tools to back their demands for the
implementation of the new 2022 salary structure that would start in January.

 

 

The strike was cancelled after a week, after the announcement on September
12 that the Council of Ministers approved a new salary structure which
stipulates a 25 per cent salary increase from October and another 25 per
cent increase from next April.

 

The decision was, however, retracted, after which the workers decided to
embark on a new strike.

 

The Salary Structure Committee of the Electricity Sector said in a statement
yesterday that the workers demand their "human rights related to the wage
structure". She accused "those with other aims" of interrupting the strike
"in favour of an agenda other than demanding workers' rights".

 

Sudan witnessed various protests concerning the federal authorities' failure
to implement the promised 2022 salary structure, which increases wages
amidst Sudan's rising inflation. Many workers are still paid their old
salaries instead of the increased 2022 wage.

 

-Dabanga.

 

 

 

 

 

 

 

 

 

 


 


 


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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

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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and sourced from third parties.

 


 

 


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