Major International Business Headlines Brief::: 27 April 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 27 April 2023 

 


 

 


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

 


 

 


 

ü  Nigeria Tops African Oil Producers As OPEC's March Output Hit 28.80mbp

ü  Nigeria: Shaming Detractors With Near Completion of $2.5bn AKK Gas Pipeline Project - NNPCL

ü  Nigeria: Google Reveals Top Sustainability Related Trends in Nigeria

ü  Sudan: Russia's Wagner Group and the Grab for Power and Gold

ü  Kenya: 12.49 Million Motorists Use Nairobi Expressway on High Demand

ü  South Africa: Load Shedding Stages to Vary Over Long Weekend

ü  Ethiopia: Companies Long Ignored Gold Mine Pollution

ü  Nigeria: Low-Skilled Nigerians in U.S. Boost Earnings By 1,500% - Report

ü  Rwanda: Could FDI Be Rwanda's Lifeline As Donors Pull the Plug?

ü  Ethiopia: Invest Ethiopia 2023 Event Kicks Off

ü  Rwandair to Launch Nonstop Flights to Paris

ü  Microsoft boss: Activision Blizzard deal block is bad for Britain

ü  Japan brewer Kirin buys Australia vitamin giant Blackmores

ü  US denies trying to unfairly attract overseas firms

ü  Facebook shows signs of revival after slump

 


 

 


 

 

Nigeria Tops African Oil Producers As OPEC's March Output Hit 28.80mbp

Nigeria was Africa's top crude oil producer in March 2023, with a production capacity of 1.2 million barrels per day (bpd), even as the Organisation of Petroleum Exporting Countries(OPEC)'s total crude oil production averaged 28.80 million barrels a day in March, lower by 86,000 barrels per day month-on-month.

 

However, the Nigeria has reported the lowest production so far this year, according to the Nigerian Upstream Regulatory Commission(NUPRC).

 

Nigeria failed to reach its OPEC quota of 1.8 million bpd or its 2023 budget benchmark of 1.6 million bpd due to a lack of investments, security risks and production sabotage.

 

In its latest monthly oil market report, OPEC said, Nigeria produced 1.268 million bpd in March against 1.306 million bpd in February 2023.

 

The OPEC said Nigeria had the highest crude production in the month under review, followed by Algeria and Angola, which recorded one million and 972,000 bpd, respectively.

 

Leadership.

 

 

 

Nigeria: Shaming Detractors With Near Completion of $2.5bn AKK Gas Pipeline Project - NNPCL

On Monday, the leadership of the Nigerian National Petroleum Company Limited, led by the Group Chief Executive Officer, Mele Kyari took a tour to Ahoko, a community in Kogi State to inspect the pace of work at the Ajaokuta-Kaduna-Kano gas pipeline project.

 

The trip was significant as it came barely five days after a national newspaper, had reported that financiers of the AKK pipeline project have pulled out of the project, citing alleged 570 per cent inflated contract sum, far above global threshold.

 

The newspaper had claimed in the report that the project had been stalled, as there was no funding to cover cost of the second and third legs from Abuja to Kaduna and Kaduna to Kano due to funding constraints.

 

 

Considering the critical importance of the project to the federal government's gas masterplan initiative and not minding that same Monday was a public holiday declared by the government to celebrate the Eid-Mubarak, Kyari led top officials of the NNPCL to inspect the pace of work at the project site.

 

The current administration under the leadership of President Muhammadu Buhari has made it a priority to ensure that revenue from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.

 

The NNPC as an integrated energy company is enabling Nigeria's economic diversification through domestic gas footprint expansion projects by the delivery of the Trans-Nigeria Pipeline Project (TNGP) which includes the Escravos to Lagos Pipeline System (ELPS & ELPS II), the Obiafu,-Obrikom-Oben (OB3) gas pipeline and the Ajaokuta-Kaduna-Kano gas pipeline.

 

 

The AKK Gas Pipeline and Stations Project is a flagship project that will further deepen the integration of the Northern region of the country with the Niger Delta, Eastern and Western regions of the Country.

 

The Scope of Work for the Project includes the construction of a 40" x 614KM linear section from Ajaokuta in Kogi State traversing the Federal Capital Territory, Niger and Kaduna States and terminating in Kano as well as 24" x 15KM Spur Line to Abuja Terminal Gas Station. It also includes the construction of Four Terminal Gas Stations, 22 Block Valve Stations, Intermediate Pigging Stations with other ancillary facilities.

 

The Pipeline has the capacity to transport Two Billion Standard Cubic Feet of Natural Gas Per Day to Three proposed Independent Power Plants in Abuja, Kaduna, Kano, and other Gas-Based Industries as well as other identified and proposed commercial off-takers along the entire pipeline route.

 

 

The project has the potential of greatly improving the nation's power generation capacity and the economy as a whole through industrialization as well as other economic uses.

 

Since the flag-off of the project by the President in June 2020, the NNPC has recorded significant feats and the inspection visit was one of the moves to showcase the progress so far made in the implementation of the project. Based on the inspection tour, it was revealed that overall engineering design for the linear section of the two segments of the project stands at 93.48 per cent, while the overall procurement for the linear section for the two segments is at 88 per cent.

 

Similarly, 94 per cent of the total line pipes have been manufactured and 90 per cent already in-country. It is instrumental to state that construction activities on both segments are ongoing, while the contractors have completed 400km of the linear section/mainline welding, representing 68 per cent of Right of Way from Ajaokuta in Kogi state to Kano.

 

Also, on-going are several special constructions like Direct Pipe Installation (DPI) across the River Niger in Kogi state and other Horizontal Directional Drilling (HDD) across River Robo, Pai and Shika River in Zaria, Kaduna State.

 

Similarly, several back-end activities have commenced including field joint coating, trenching and lowering, temporary cathodic protection and talks of pre-commissioning of some sections have equally commenced.

 

In terms of the project financing, the procurement process was supervised by Iinfrastructure Concession Regulatory Commission and endorsed by the Bureau for Public Procurement having complied with all regulatory requirements before the approval by the Federal Executive Council at the sum of $2.8bn in 2018.

 

The current management of the NNPC further renegotiated the project cost downwards to $2.5bn in 2019 with the attendant savings of $300m, which culminated to a final approval by Federal Executive Council.

 

Despite this significant savings, detractors of the project have found a way to draw unfounded comparison with other projects definitely not of the same scope, terrain, line pipe specification, welding technology, weather conditions and more importantly the impact of security risks and country risk premiums on Nigerian projects of this magnitude.

 

As regards the project financing, discussions on financing commenced in 2018 with the Bank of China as the Mandated Lead Arranger, leading a consortium of interested Chinese banks. All the banks secured credit approvals from their various boards to proceed with the deal, which led to the sign-off of the term sheet for the facility with the Bank of China.

 

Following the execution of the Term Sheet, SINOSURE, the Chinese Government insurance agency in charge of international financing went through their review cycle and endorsed the facility to their Chinese Government body for approval. Concurrent with the financing deal, the NNPC commenced pre-funding the project, which led to the flag-off of the construction by the President on 30th June 2020.

 

Speaking on the funding, Kyari told reporters that so far, the NNPC has funded over $1.1bn on the project and to date none of the project activities are abandoned as reported. He reassured all stakeholders that NNPC has a line of sight to the delivery of the project on schedule.

 

The NNPC Boss said that work has not stopped as a result of funding constraint since the project commenced.

 

He said being a critical infrastructure project for the Nigerian energy sector, the NNPC has been meeting all its funding obligation to the contractors.

 

He said, "First of all we are here to thank our crew, our contractors, our staff who are doing everything possible to deliver this project and we are most grateful to them and we appreciate the great work they are doing. For the benefit of the Nigerian public, this is one of the most massive projects that we'll run in the company, it is of immense proportion of value to our country and to the socio-economic growth of our country.

 

"We know that this is a must deliver project. This project has not stopped for one day. We have continued to fund it despite the fact that we do not have third-party financing for the project. We have so far spent over $1.1bn on this project from our cash flow. We are a very different company today. We are a commercial company. We have inter-company laws within our company now. This company can fund this project, so we do not need any support on this project to deliver this project now.

 

"As we speak now, we don't owe a dollar to our contractors today. We paid all their invoices, there are over 30 sites that are active today in this project, and we are very hopeful that we will deliver this project."

 

He commiserated with the families of workers that have died as a result of the security challenges at the project site and added that the government is committed to ensuring that it does all it can to provide more security personnel at the project site to guarantee the timely delivery of the gas project.

 

Responding to a question if the project was actually stalled as a result of funding challenges, Kyari explained that such has never happened.

 

He said the NNPC has what it takes to fund the project till completion, noting that no amount is currently being owed based on the quantum of jobs delivered by the contractor

 

He added, "Yes, there are challenges like security issues. We have lost men, and we are so sorry to their families. We will continue to share their grieve. But despite this, we have gotten massive support from our government security agencies; the Nigerian army, the Department of State Security Service and all other government agencies to make sure that our workers work firmly and we are also able to continue this project uninterrupted. I'm most grateful to this team, and we assure Nigerians that this project will be different and be delivered.

 

"This is a very massive project. We are delivering them in phases. First of all, the line welding has been completed by 70 percent. There are many other components of this project and once you are able to complete the welding and put certain basic selection, you can actually flow casting to these lines and as other part of the project is continuous to be delivered."

 

On the implications of the gas project for Nigeria 's gas supplies, the NNPC Boss added that it would boost electricity generation to the power sector and increase power to industries.

 

He added, "What this means for Nigeria's gas supply is that these lines will flow 2 billion SCF of gas. What this means is that you are delivering 2 billion SCF of gas every day to these lines, power industry, powering gas plants, creating gas-based industries and this is the ultimate objective.

 

"By the third quarter of this year, we will complete the entire welding of this work and what it means is that we can actually energize these lines by the end of the third quarter of this year."

 

On how many megawatts of electricity will the gas project deliver, he said, "It depends of the capacity of the power plants that will be installed on the pipeline. Our plan is to have 1300 megawatts power plants in Abuja, Kaduna, and in Kano.

 

"As we speak now, we are facing that so that we deliver them as quickly as possible and by God's grace very soon, we are going to face the construction of the Kaduna-Abuja power plant in earnest and of course it is a speculative thing but gradually we will build up to that capacity. There is a financing partnership with core investors on this."

 

When asked what his response will be to those who do not believe in the NNPC's ability to deliver the project in a timely manner, Kyari replied, "What I will say is that we will shame them. This project will be delivered; we are not scared of their comments. We will deliver this project and the criticism is just typical of our country's typical reaction when things are going well."

 

Also speaking at the inspection site, the Project Manager, Steve Nnorom hailed the NNPC management for ensuring that all the resources needed for the speedy delivery of the project is provided.

 

He added that just last week, through the NNPC's intervention, over 40 military personnel were deployed to beef up security at the project site.

 

When asked if the contractor is being owed, he said the NNPC is meeting up with all its obligation to the project and that no amount is currently outstanding for the job delivered.

 

Giving a tour of the site, Project Manager, Oilserv Limited Pipelines and Facilities, Steve Nnorom disclosed that the company had done about 222 kilometres welding work with about 27km remaining for completion.

 

"We have completed about 73 per cent of our mainline wielding works. We have done 222 kilometres, we have about 27 km of welding work to complete. Our target is that all works will be going on at different spreads. We are progressing gradually. We have terrain challenges especially for the location we are in now, there's a steep. The NNPC is paying all our bills and we are not being owed, "he added.

 

The NNPC Limited remains highly committed towards the delivery of strategic National infrastructure projects through responsive project delivery, active collaboration with Government Security Agencies and Communities as well as deployment of Technology in the form of Human and Technical Intelligence for Surveillance along the entire Right of Way to enable the country realise the aspiration of timely delivering the AKK Project for the benefit of all Nigerians.

 

Onuba, a journalist and Chartered Accountant, wrote in from Abuja

 

This Day.

 

 

 

 

Nigeria: Google Reveals Top Sustainability Related Trends in Nigeria

Google has released data highlighting the top sustainability-related trends in Nigeria, which showcases Nigerians' growing interest in environmental issues, as they search for answers to questions and learn more about the pressing concerns of our planet.

 

According to the data, Nigerians are showing a strong desire to understand environmental terms and concepts, such as global warming and climate change. In simple terms, global warming is the gradual increase in Earth's temperature due to human activities, while climate change refers to the wider effects of global warming, including changes in weather patterns and more extreme weather events. Both of these issues have a major impact on Nigeria's environment, economy, and society.

 

 

Google's data reveals the top trending topics in Nigeria, reflecting the country's growing concerns and interests. Among these concerns, the devastating 2022 floods, which affected 33 out of 36 states, and displaced over two million people, underscores the significance of this issue. With a vast coastline and numerous rivers, Nigeria is particularly vulnerable to flooding, which can wreak havoc on communities, agriculture, and infrastructure. Consequently, Nigerians are increasingly searching for solutions to manage and mitigate the impacts of flooding.

 

The top trending topics are: Flood; Carbon neutrality; Environmental, social, and corporate governance; Tropical cyclone; Climate change; Landsliding; Solar power; Heat wave; Solar lamp and Climate

 

Reflecting on the findings, Google's Communications and Public Affairs Manager, West Africa, Mr. Taiwo Kola-Ogunlade, emphasised the importance of individual and collective action, He said: "Climate change is one of humanity's most urgent challenges, and Earth Month is an opportunity for all of us to consider how we can make a difference. By providing accessible information on environmental topics, we hope to empower Nigerians to take action for a more sustainable future. It's not just about what Google does; it's about how we can all work together to protect our planet."

 

This Day.

 

 

Sudan: Russia's Wagner Group and the Grab for Power and Gold

Russian mercenaries appear to be working closely with the military junta in Sudan. Billions of dollars have allegedly been circumvented in exchange for political and military support from the Kremlin.

 

"The Russians buy almost everything," Omar Sheriff, a miner in the northeastern Sudanese town of Al-Ibaidiya, told DW shortly before the current conflict between Sudan's armed forces and the Rapid Support Forces (RSF) paramilitary group began.

 

Sheriff is one of dozens of artisanal miners in Al-Ibaidiya, a town on the bank of the Nile River located about 400 kilometers (248 miles) north of the capital Khartoum, who labor in searing heat to cut gold from rocks in the desert. They separate the gold from the rocks using chemical processes involving toxic substances like cyanide leaching and mercury that can harm both the miners and the environment.

 

 

Most of the gold ends up in a processing plant 16 kilometers away run by a company owned by the founder of Russia's paramilitary Wagner Group, Yevgeny Prigozhin, a close friend of Russian President Vladimir Putin.

 

"The Russians can pay close to $4,000 (Ꞓ3,620) for a truckload of gold," says Sheriff. "They are often desperate to buy everything."

 

Wagner Group in Sudan at dictator's invitation

 

The Wagner Group first surfaced in Sudan in 2017 at the invitation of then-President Omar al-Bashir following a meeting between the Sudanese dictator and Putin in Moscow.

 

The private military organization set up Meroe Gold, a Prigozhin-controlled company which was later sanctioned by the United States, to run its operations in the African nation. Shortly afterwards, it began to explore Sudan's gold resources.

 

 

In the process, Wagner began to build a relationship with General Mohammed Hamdan Dagalo, commonly known as Hemeti, and his paramilitary RSF. Members of the RSF, according to locals in Al-Ibaidiya, gave protection to Russian merchants who sought to buy gold from miners. The Russian-owned gold processing plant is also said to be guarded by several RSF paramilitaries who work closely with Russian security personnel believed to be from the Wagner Group.

 

"For more than four years we've seen RSF soldiers working closely with the Russians," Mustafa El Tahir, who has been mining gold in al-Ibaidiya since 2018, told DW. "Anywhere the Russians go, RSF goes with them."

 

Wagner maintained its relationship with Hemeti after the Sudanese pro-democracy movement toppled al-Bashir in 2019. His ouster paved the way for a transitional civilian government. That relationship appeared to be instrumental in overthrowing the civilian-led government nearly two years later. Following the coup, allegedly supported by Russia, army General Abdel Fattah Burhan took over as military leader making Hemeti his deputy.

 

 

Plane with gold bullion

 

Since the military's return to power, Wagner's collaboration with Hemeti has picked up. In February 2022, as Russia launched its invasion of Ukraine, Hemeti traveled to Moscow to give his backing to Russian plans to set up a navy base on the Red Sea, a move Burhan refused to endorse.

 

On that trip to Russia, the plane Hemeti traveled in was also transporting gold bullion, according to the New York Times, citing two senior Western officials. During the talks in Moscow, Hemeti reportedly requested help from Russian officials to acquire military equipment.

 

In 2021, as much as 32.7 tons of Sudanese gold worth about $1.9 billion was unaccounted for, according to a report by US broadcaster CNN. The report also found evidence that shows that Russia has worked closely with Sudan's military junta to ensure that billions of dollars in gold bypass the Sudanese treasury in exchange for the Kremlin's political and military backing.

 

"All the while, this corrupt scheme involving the Wagner Group and the military government has been supervised by Hemeti," says Ahmed Abdallah, a Sudanese human rights campaigner in exile in Germany. "It always felt like both men [Hemeti and Burhan] were never on the same page regarding how to do business with Wagner."

 

Now, a new report suggests that Wagner has been supplying the RSF with missiles to support their fight against the Sudanese military.

 

Last week, CNN reported that the open-source group "All Eyes on Wagner" had analyzed satellite images which appeared to show a Russian transport plane shuttling between two key Libyan airbases controlled by Khalifa Hifter, leader of the eastern Libyan National Army, who is backed by the Wagner Group.

 

Wagner Group's dealings remain murky

 

The report alleged that an increase in activity by the Wagner Group at the airbases suggests that there was a plan by both Russia and Hifter to back the RSF even before the conflict started.

 

"Behind Hemeti's push could be the Wagner Group, whose personnel was arrested and accused of gold smuggling by the Burhan regime just before the fighting began," Yaser Abdulrehman, a Sudanese lawyer told DW. "Hemeti and Wagner are like Siamese twins."

 

But the Wagner Group's true intentions appear to remain unclear.

 

"While it appears that the Wagner Group has offered Hemeti military assistance, the Wagner Group's involvement in this conflict remains opaque," Isabella Currie, a researcher on the Wagner Group, told DW.

 

"Caution is advised in drawing conclusions about a potential alliance between Wagner and Hemeti, or Wagner's role in stoking civil unrest in Sudan. Instability in Sudan may not serve to benefit either the Putin regime or Prigozhin's network, particularly if the conflict begins to impact Sudan's border with the Central African Republic, where Prigozhin has established relationships and resource extraction contracts," she said.

 

 

 

Kenya: 12.49 Million Motorists Use Nairobi Expressway on High Demand

Nairobi — The number of vehicles using the Nairobi Expressway has hit 12.49 million as demand among motorists rises.

 

Roads and Transport Cabinet Secretary (CS) Kipchumba Murkomen said the data was as of March 2023.

 

Preference for the road has been going up as drivers connecting James-Gichuru and Mombasa Roads seek to beat the frequent traffic snarl-ups associated with the old road.

 

"The total number of vehicles recorded which have used the Expressway from inception until the end of March 2023 was 12,491,403," CS Murkomen said while responding to a question before the National Assembly last week.

 

Only in February, the operator of the road, Moja Expressway Company CEO Steve Zhao, said that it had collected Sh2 billion in toll fees from the route since its launch in July 2022.

 

At the moment, motorists have three payment options: the manual toll collection (MTC) card, the electronic toll collection (ETC) service, and cash payment.

 

Then Zhao said that the firm had successfully piloted the use of M-Pesa and that it was to be rolled out soon.

 

The Sh87 billion road was launched by former President Uhuru Kenyatta.

 

The road has 11 tolling stations, 54 toll plazas, and 54 cameras along the 27-kilometer expressway, with 126 cameras inside the toll plazas.

 

The dual carriageway consists of 11 interchanges at Mlolongo, Standard Gauge Railway, JKIA, Eastern Bypass, Southern Bypass, Capital Centre, Haile Selassie Avenue, Museum Hill, Westlands, and James Gichuru Road.

 

Capital FM.

 

 

 

South Africa: Load Shedding Stages to Vary Over Long Weekend

Eskom is expected to implement various stages of load shedding over the upcoming long weekend.

 

Stage 4 load shedding is expected to be implemented from 4pm today to 5am tomorrow (Thursday) morning and will drop to Stage 2 between 5am and 4pm tomorrow.

 

>From then on, Stage 4 will be implemented until 5am on Friday, followed by Stage 3.

 

That pattern will continue until Sunday when Stage 4 load shedding will drop down to Stage 1 between 5am until 4pm, when Stage 3 load shedding will commence.

 

On Wednesday morning, Eskom reported that some 16 283MW of capacity was unavailable due to breakdowns, coupled with a further 5 065MW unavailable due to planned maintenance.

 

"Over the past 24 hours, a generation unit at Kriel Power Station was returned to service. In the same period, a generating unit each at Camden and Duvha [power stations] were taken offline for repairs.

 

"The delays in returning a unit to service at Kendal and two units each at Kriel and Tutuka power stations contributed to the current capacity constraints. The team is working around the clock to ensure that generating units are returned to service as soon as possible," the power utility said.

 

Eskom called on South Africans to use electricity sparingly to relieve demand pressure on the system.

 

"We thank those South Africans who heed the call to use electricity sparingly and efficiently to help alleviate the pressure on the power system, as this helps to avoid higher stages of load shedding," the power utility said.

 

SAnews.gov.za.

 

 

 

Ethiopia: Companies Long Ignored Gold Mine Pollution

The company operating an Ethiopian gold mine and the refinery that sourced its gold took no action over concerns about pollution from the mine for years.

The mine was reopened even though the government had ordered it closed following protests. Studies found that residents were being exposed to toxic metals.

The government should halt mine operations. The companies involved should provide compensation and health care to affected residents and clean up the pollution.

(Nairobi) - A company operating a gold mine in Ethiopia, Midroc Investment Group, and the Swiss refinery Argor-Heraeus that sourced its gold took no action over media reports about pollution from the mine for years, Human Rights Watch said today. An assessment carried out at the Ethiopian government's request found that local residents had experienced serious health effects. Midroc resumed operations, apparently with a license from the government, but without any apparent steps to reduce pollution even though the government had said it was suspending its license until pollution issues were resolved.

 

 

The Ethiopian government suspended the Lega Dembi industrial gold mine's license in May 2018 following protests over pollution and its health impacts. Scientific studies initiated in 2018 found that residents were exposed to toxic metals, violating their rights to health and to a clean, healthy, and safe environment. The government said it would not permit the company to resume the mine's operations until the issues were "resolved" and the toxic waste "no longer poses a threat." However, Human Rights Watch research found that the mine recommenced operations around March 2021 without any apparent steps taken to reduce pollution.

 

 

"The Ethiopian government, by allowing the Lega Dembi mine to reopen without pollution reduction steps in place, is violating the right to health of children and adults living nearby," said Juliane Kippenberg, associate child rights director at Human Rights Watch. "The government should suspend operations until measures have been taken to ensure that harmful chemicals in the water and soil do not exceed international standards, and that people harmed by the pollution obtain compensation and care."

 

Residents living near the mine, located close to the town of Shakiso in Guji Zone, in the Oromia region, have for years complained of ill-health and disabilities, particularly in newborn children.

 

The Ethiopian government should immediately halt operations at the Lega Dembi mine until effective pollution reduction measures have been put in place. Midroc Investment Group and Argor-Heraeus, the Swiss gold refinery it supplied until 2018, should provide compensation and health care to affected residents and clean up the devastating pollution in the area.

 

 

Human Rights Watch interviewed 26 people living in the vicinity of the mine site, former Midroc employees, and former local and regional government officials and environmental and health experts. Human Rights Watch also reviewed numerous environmental and health studies and other documents relating to the mine.

 

Environmental testing by Addis Ababa University in 2018 found high levels of arsenic in water samples taken downstream from the mine area, and high levels of nickel, chromium, and arsenic in soil samples outside the mine.

 

An assessment initiated in 2018 by the Ethiopian Public Health Institute, done at the Ethiopian government's request and shared with Human Rights Watch, found that local residents had experienced serious health effects. The study concluded that "communities living around Lega Dembi mining area were at risk of exposure to pollutants like toxic metals released from the mining plant and other mining activities." The results of the assessment process have never been made public.

 

Midroc Investment Group, one of Ethiopia's largest private business entities, took over the mine from the Ethiopian government in 1997. Based on information provided by Argor-Heraeus, Midroc appears to have taken little action to address complaints over environmental harm and ill-health, Human Rights Watch said. Midroc did not respond to a Human Rights Watch request for information.

 

Argor-Heraeus, one of the largest gold refineries globally, says it sourced gold from Lega Dembi from 2013 until March 2018. However, in Midroc's 2007 annual report, Argor-Heraeus was the only company named as Midroc's business partner. According to information shared by Argor-Heraeus with Human Rights Watch, the refinery did not identify the harm to the environment and to human rights at Lega Dembi until 2018, despite media reports and public protests about environmental pollution and ill-health at the mine in 2009-10, 2015-2016, and 2017. As a result, Argor-Heraeus did not use its leverage with Midroc to address that harm.

 

Argor-Heraeus responded to Human Rights Watch's findings: "We were very shocked by the reports Human Rights Watch quoted from. We stopped the business relation with Midroc five years ago, immediately after we became aware of the significant local issues. Unfortunately, there are only very few isolated internationally accessible media reports from the region. The studies from which Human Rights Watch quotes were only produced after the situation became known." Argor-Heraeus also responded to questions from Human Rights Watch with two letters.

 

Companies have a responsibility to ensure that they do not cause or contribute to rights abuses, in line with standards established by the United Nations and the Organisation for Economic Development and Co-operation (OECD). More specifically, companies should take steps to identify, prevent, and mitigate their human rights and environmental impacts: a process called "due diligence." Where companies have caused or contributed to human rights impacts - including by failing to use leverage over a supplier to mitigate its impact to the greatest extent possible - they should help remedy abuses.

 

"The mine owner Midroc does not appear to have seriously addressed the human rights and environmental harms at Lega Dembi, despite years of public protests by residents," said Felix Horne, senior environment researcher at Human Rights Watch. "It is a source of great concern that the gold refinery Argor-Heraeus sourced gold from the mine for years without publicly identifying the human rights risks."

 

When Argor-Heraeus used the Lega Dembi mine as a source of gold, two industry bodies certified it as sourcing "responsibly" on the basis of audits confirming compliance with the two industry bodies' codes of conduct. The Responsible Jewellery Council (RJC), which has over 1,600 company members in the jewelry supply chain, certified Argor-Heraeus in 2011, 2014, 2017, and 2020. The RJC standard in place at this time requires members to conduct human rights due diligence in their supply chain and "provide for or cooperate in legitimate processes to enable the remediation" of adverse human rights impacts where members have contributed to such impacts.

 

The London Bullion Market Association (LBMA), the trade association of major gold refineries, bullion dealers, and banks, certified Argor-Heraeus annually since at least 2013 under its "Responsible Gold Guidance." The guidance requires members to conduct human rights due diligence to identify, prevent, and mitigate human rights abuses in their supply chain and stop sourcing from a supplier implicated in serious human rights abuses.

 

Argor-Heraeus said in response: "Our due diligence processes are among the most rigorous in the world today. Nevertheless, we have taken this case as an opportunity to review our internal processes again."

 

Midroc, with support from Argor-Heraeus, should provide comprehensive, inclusive, and transparent environmental remediation, Human Rights Watch said.

 

"Two industry certification schemes endorsed Argor-Heraeus' sourcing practices despite its failure to identify and address a supplier's environmental and human rights harms," Kippenberg said. "The Lega Dembi gold mine exemplifies that certification by voluntary programs are no guarantee of sourcing from rights-respecting suppliers and may actually risk 'greenwashing' a catastrophic situation."

 

For more information and additional details, please see below.

 

Human Rights Watch has conducted research into the human rights situation at the Lega Dembi mine in Ethiopia since 2012. Between 2012 and 2019, Human Rights Watch interviewed 26 people living in the vicinity of the mine site, former Midroc employees, and former local and regional government officials. In 2021 and 2022, Human Rights Watch interviewed 10 former local government officials and environmental and health experts.

 

Human Rights Watch also reviewed numerous environmental and health studies; photos provided by the studies and local sources; and open-source information, including videos, photos, local media articles, government cadastre data, and satellite imagery.

 

Human Rights Watch sent letters to the Ethiopian Ministry of Mines and Petroleum, the Oromia Mineral Development Authority, and Midroc Investment Group seeking clarification on steps taken to address the harm causd by the mine and its reopening. None have replied. Human Rights Watch also wrote to the Canadian embassy in Ethiopia about its possible involvement in the government-initiated environmental and health assessment; the embassy did not respond.

 

Human Rights Watch also sent letters about abuses in Lega Dembi to Argor-Heraeus, the London Bullion Market Association, and the Responsible Jewellery Council, all of whom met with Human Rights Watch and sent written responses.

 

 

Environmental Harm, Right to Health, and Abuses Against Protesters

 

People living near Lega Dembi mine have suffered violations of their rights to health and to a healthy environment, as well as violations of their rights to protest peacefully and be protected from arbitrary detention and from cruel, inhuman, and degrading treatment.

 

Residents living near the mine described health and veterinary concerns to Human Rights Watch, the media, and a research project by a United States university prior to the 2018 closure of the mine. They told Human Rights Watch that they believe their problems are connected to the water in the ponds used to process the mine's tailings and other waste. The residents said that tailings ponds regularly overflowed during periods of heavy rain, allowing polluted water to flow into downstream creeks that are used for household needs.

 

Some community members said they became sick after they consumed water from nearby creeks. Residents also said there had been miscarriages, stillbirths, and congenital disabilities (disabilities at birth) affecting those who live adjacent to, or downstream from, the tailings ponds. Human Rights Watch has obtained photographs of 12 children with physical disabilities. Residents said some animals died after consuming this water, and animals that regularly graze there seemed to have more frequent congenital disabilities.

 

The residents' accounts are supported by the "Compliance Audit in Chemical Management on Midroc Gold Mine PLC's Legadembi and Sakaro Mining Operations" (the compliance audit) initiated in 2018 by Addis Ababa University, which was commissioned by the Ministry of Mines and Midroc, and a separate study conducted as part of the government-initiated assessment of the mine, the "Legadembi Mining and Community Health Study: Technical Report" (the community health study) initiated by the Ethiopian Public Health Institute and the Ministry of Mines and Petroleum in 2018. Human Rights Watch has copies of both studies - which were not published - on file. The Ethiopian government said the Canadian embassy "collaborated" on the government-led assessment, although it is not clear what role, if any, the embassy played in the preparation of this health study.

 

The community health study found that children living in the area around the mine site had a significantly higher rate of congenital disabilities than those living in some other areas of Ethiopia.

 

The compliance audit found high levels of harmful metals and other chemicals in water and soil samples. For example, arsenic levels in water downstream from the mine were almost 10 times above drinking water standards prescribed by the World Health Organization (WHO): 98µg/l (micrograms per liter) compared to the WHO standard of 10µg/l. Cyanide, a key chemical for gold processing at the Lega Dembi mine, was found in "considerable amount" both in water and soil samples outside of the tailings dam in the license area.

 

The compliance audit also revealed that arsenic, chromium, and nickel in the soil sampled outside the mine in 2015 and 2018 exceeded the WHO limit. The community health study found harmful health effects in line with existing research on the effects of these substances: Skin diseases, miscarriages, stillbirths, and congenital disabilities were significantly higher near the mine than in other parts of the country.

 

When Midroc took over the lease of Lega Dembi in 1997, it introduced a cyanide-leaching system to extract gold. Prior to 1997, a state-owned mining company had used mercury, another toxic chemical, for gold processing. The community health study found that community members stored and used mercury, apparently for gold processing. While the compliance audit conducted by Addis Ababa University assessed mercury levels but did not report concerns about mercury pollution, an unpublished 2019 study by an independent academic researcher found extremely high levels of mercury in water and soil samples. For example, the mean mercury content in water was about 37 times above the WHO standard for drinking water.

 

Long-time residents told Human Rights Watch that Midroc rarely consulted with the community about the mine's impacts. They said that tailings ponds previously had neither signs warning residents of the potential dangers, nor any fencing or other barriers to prevent people or cattle from accessing the ponds. Residents also said they were not aware of steps taken by Midroc to communicate the environmental and health risks to surrounding communities.

 

The Ethiopian authorities responded with excessive force to repeated protests by the local community in 2009, 2015, 2016, and 2018. In 2009, security forces arrested dozens of people. Two people who had been detained said that authorities severely beat them with sticks and electric cables. In 2015-16, protesters in and around Shakiso raised the potential health impacts of the mine - along with many other issues - during large-scale protests throughout the Oromia region, which resulted in the deaths of hundreds of protesters. Local residents said that security forces accused protesters who raised concerns about the mine of being "against the government," "anti-development," or "members of the Oromo Liberation Front," a then-banned armed opposition group. Many were arrested and detained.

 

In April 2018, the Ethiopian government, under newly appointed Prime Minister Abiy Ahmed, renewed a permit to allow Midroc to continue operating the mine for 10 years. A week of local protests followed in which government security forces killed at least two people and injured several others, international and national media reported. The government responded to the protests by suspending the decision to renew Midroc's license.

 

Reopening of Lega Dembi Mine

 

Local sources, open source information, and satellite imagery collected by Human Rights Watch confirm that the mine is currently operating. It reopened around March 2021, though Human Rights Watch has not been able to determine the exact date. Local sources, satellite imagery, and open source data do not indicate that the company took any remediation measures, such as rebuilding the tailings ponds.

 

At a community meeting in March 2021, local government officials told community members that the mine would reopen. They announced that compensation would be paid to people whose health had been affected but did not provide information about the criteria for compensation. Officials also mentioned remediation but did not provide details. Several community members said the authorities paid compensation of up to 20,000 birr (US$300) to some, but not all, affected people. Human Rights Watch has not been able to determine the number of people compensated or the criteria for compensation.

 

An Ethiopian-government report released in July 2021 stated that Oromia regional authorities and Midroc signed a memorandum of understanding with an action plan for the "resolution of social, health, and environmental impacts." The steps included voluntary relocation of affected community members, payment of compensation, support to the local administration, and the creation of a "mechanism" to require transparency and accountability from the mining company. The report does not mention the environmental remediation measures. The memorandum of understanding has not been made public, and Human Rights Watch has not been able to obtain a copy.

 

 

Satellite imagery shows significant changes at Lega Dembi mine beginning in March 2021. Around March 10, water started to fill a tailings pond, and in the second half of the month, new earthworks were visible in various parts of the complex. Activity is also visible in the main open pit, with its depth significantly increasing between March 2021 and March 2022. New buildings were built within the mining complex between May and August 2021. The road leading to Lega Dembi from Shakiso, about five kilometers north of the mine, was paved between August and September 2021.

 

In March 2022, someone posted a video to YouTube of training for security personnel held by Midroc and the Oromia Police College in a compound located along the newly paved road. The video, entitled "Midroc Gold Lagadambi Security Officers," includes an image of a certificate of completion that indicates the training took place in November 2021.

 

The government's mining registry, an electronic portal with information on the mining sector, marks the Lega Dembi area under an active large-scale mining license, which belongs to Midroc and expires in 2028. A local government official also told the BBC in January 2022 that the mine had reopened.

 

Data from the UN Comtrade database shows the export of 14.97 tons of gold from Ethiopia to the United Arab Emirates (UAE) in 2021, up from 1.28 tons in 2020. In contrast, Ethiopia did not export any gold to Switzerland in 2021. The data suggests that after the reopening of the mine, gold from Lega Dembi may have been exported to gold refineries in the UAE, one of the world's leading gold refining and trading centers.

 

Role of Argor-Heraeus

 

Argor-Heraeus provided information to Human Rights Watch on its sourcing from Lega Dembi mine in two letters, dated April 6, 2021, and December 29, 2022. Argor-Heraeus confirmed that it received gold from Lega Dembi until March 2018 and suspended its business relationship with Midroc in May 2018; it says it has not sourced gold from there since.

 

While the refinery states that it started sourcing gold from Lega Dembi in 2013, publicly available sources indicate that it sourced from Lega Dembi as early as 2007. Midroc's 2007 annual report stated that gold from Lega Dembi was shipped to Argor-Heraeus. In 2011, a Japanese economics institute profiled Midroc and identified Argor-Heraeus as the recipient of Lega Dembi gold.

 

Argor-Heraeus says it took Midroc on as a supplier and "monitored" the supplier "in compliance with applicable legislation and standards." In 2018, several years after starting to source from Lega Dembi, the refinery became aware of environmental and human rights concerns at Lega Dembi mine through "internationally accessible public sources" and started a process of "clarification," the refinery said.

 

Human Rights Watch asked Argor-Heraeus in writing what information triggered the "clarification process," what the process entailed and what it concluded, and whether the results were made public. Argor-Heraeus has shared little information in response and has not made the results public. It also did not share any information about whether it took steps to independently verify the reports of abuse, for example with local nongovernmental organisations, media, or community leaders. The only step the refinery has described in some detail is its outreach to Midroc, which it says it contacted to verify whether the information about environmental and human rights violations was accurate. According to Argor-Heraeus, Midroc "denied all allegations regarding environmental damages."

 

Argor-Heraeus said that it did not receive any information or grievance about Midroc through its grievance or whistleblower mechanisms while it had a business relationship with Midroc, and did not mention any efforts to reach out to independent sources. Argor-Heraeus also stated that "our subsequent investigations within the context of the suspension of the mining license and our inquiries to MIDROC for clarification and disclosure of the entire facts did not lead to any satisfying result."

 

Under the UN Guiding Principles on Business and Human Rights, business enterprises should identify adverse human rights impacts by carrying out meaningful consultation with potentially affected groups and other relevant stakeholders. But the "clarification process" appears to have been focused on checking information with Midroc, not on seeking independent information from community members, civil society, or the media.

 

The suspension of the business relationship with Midroc on May 14, 2018, occurred only after the Ethiopian government had suspended the mining license on May 8: in other words, at a moment when Argor-Heraeus could not source from Lega Dembi anymore. Argor-Heraeus said that the "clarification process" was "still underway" when the Ethiopian government suspended Midroc's mining license.

 

If Argor-Heraeus had appropriate due diligence mechanisms in place, it should have been able to identify environmental and health harms at Lega Dembi prior to 2018 and should have been able to use its leverage as a key customer to push Midroc to address and remedy rights abuses. The absence of an appropriate due diligence mechanism may have significantly contributed to further human rights abuses at the Lega Dembi mine.

 

Under the UN Guiding Principles, business enterprises that identify that they have caused or contributed to adverse human rights impacts should provide for or cooperate in their remediation through legitimate processes. Argor-Heraeus has not taken adequate steps to press Midroc since 2018 to address past harm at Lega Dembi and has not committed to providing compensation, pollution reduction measures, or other remedies to community members. Businesses should ensure that effective, accessible, and legitimate grievance mechanisms are available, but Argor-Heraeus' grievance policy does not make clear how the mechanism has been made legitimate and accessible, in particular to communities around Lega Dembi.

 

Argor-Heraeus' Certification by the London Bullion Market Association

 

Two industry bodies certified Argor-Heraeus despite its failure to identify human rights risks. Voluntary certification schemes can encourage improvements in the minerals sector, but they also often have serious weaknesses. Therefore, governments should not rely on certifications as a company's proof of compliance with international human rights standards.

 

The London Bullion Market Association (LBMA), the trade association of major gold refineries, certified Argor-Heraeus annually as compliant with its Responsible Gold Guidance since at least 2013. Each assessment process included an audit by an independent third-party assurance provider. When asked about the findings of Argor-Heraeus' audits, the LBMA said that it was not at liberty to disclose the contents. Human Rights Watch only has a summary of Argor-Heraeus' 2018 audit, conducted by PricewaterhouseCoopers SA, on file. The audit summary does not mention the Lega Dembi mine.

 

The LBMA's standard, the "Responsible Gold Guidance," became a formal requirement for gold refiners that were LBMA members in 2012. The guidance has been revised and expanded several times, including in 2015, 2017, and 2018. In its letter to Human Rights Watch, the LBMA stated that "some of the environmental issues raised fall outside of the scope of previous versions of the Responsible Gold Guidance that were in effect at the time." It also said that environmental concerns were added to the Responsible Gold Guidance at the end of 2018, and that "the LBMA recognizes the need for continued improvement."

 

However, the 2015, 2017, and 2018 iterations of the guidance all specifically require gold refiners to "identify human risks" in their supply chain, including systematic or widespread human rights abuses associated with the extraction, transport, or trade of gold. The right to health is guaranteed in the International Covenant on Economic, Social and Cultural Rights, a treaty explicitly included in the definition of "human rights" in the relevant iterations of the Responsible Gold Guidance.

 

According to the 2015, 2017, and 2018 iterations of the guidance, a refiner should stop sourcing from a supplier if serious human rights abuses are found, and suspended if serious human rights abuses are found to be possible. The guidance requires refiners to submit a corrective action plan to the LBMA Physical Committee when there is a medium risk, high risk, or zero tolerance noncompliance, or when the refiner fails to satisfy one or more requirements set out in the guidance.

 

As a result, the LBMA certified Argor-Heraeus even though the company continued to source from a supplier implicated in serious human rights abuses.

 

Argor-Heraeus' Certification by the Responsible Jewellery Council

 

The Responsible Jewellery Council (RJC), a jewelry industry body, certified Argor-Heraeus in 2011, 2014, 2017, and 2020 as compliant with its Code of Practices. The RJC's Code of Practices sets out responsible sourcing requirements for all member companies, throughout the whole supply chain. The Code of Practices was adopted in 2009 and revised and expanded in 2013 and 2019.

 

The 2013 code requires member companies to observe the UN Guiding Principles on Business and Human Rights, and specifically to have in place a "human rights due diligence process that seeks to identify, prevent, mitigate and account for how they address their impacts on human rights" in their supply chain. It also requires member companies to provide for or cooperate with processes to enable remediation should they have caused or contributed to adverse human rights impacts.

 

According to RJC summaries of certification information, the 2014 and 2017 audits of Argor-Heraeus did not find any critical breaches. In its letter to Human Rights Watch, the RJC said that during the audits conducted up to 2017, the code's provision on human rights was not defined as "critical," and therefore noncompliance did not constitute a critical breach. The RJC noted that the provision is now considered "critical," and that it discloses data on identified critical breaches. It informed Human Rights Watch that it cannot disclose audit reports. Going forward, the RJC has committed to monitoring annual gold refiner reports regarding mines of origin, and communicating human rights concerns regarding Lega Dembi mine to approved RJC audit firms.

 

Recommendations

 

The Ethiopian government, Midroc, and Argor-Heraeus should conduct a comprehensive, inclusive, and transparent process of remediation at Lega Dembi mine guided by international environmental and health experts. The Ethiopian government should suspend Midroc's Lega Dembi mining license and ensure that no operations take place until a tailings management system has been designed in accordance with professional standards, and harmful chemicals in water and soil do not exceed international standards designed to protect human health. Midroc and Argor-Heraeus should publicly report about their role in the remediation process.

The Ethiopian government, together with international environmental and health experts, should then put in place a robust monitoring program, subject to independent audits, that will monitor and publish contaminant levels over time, taking corrective action when contaminant levels exceed thresholds.

The Ethiopian government should immediately publish the memorandum of understanding between Oromia regional authorities and Midroc, as well as the community health study and the compliance audit of chemical management.

The Ethiopian government and the Oromia regional government, in partnership with Midroc and Argor-Heraeus, and in consultation with affected communities, should design and carry out a fair and transparent process to provide an effective remedy for the harm done, including full and effective reparations proportionate to the harm suffered, and ensure that people affected by human rights abuses connected to the Lega Dembi mine have access to justice, health care, and social support.

Argor-Heraeus should investigate its human rights due diligence systems and their application in the case of the Lega Dembi mine and publish the findings.

The LBMA and the RJC should investigate the certification audits of Argor-Heraeus to identify and report problems with the audits of the refinery's responsible sourcing practices and publish the findings.

The Swiss government should amend or replace existing legislation on minerals from conflict-affected areas and require robust human rights and environmental due diligence covering all countries of origin, including through a civil liability clause and the creation of an adequately funded enforcement mechanism.

Read the original article on HRW.

 

 

 

Nigeria: Low-Skilled Nigerians in U.S. Boost Earnings By 1,500% - Report

Nigerians migrate to Canada, the United States, and other European countries to seek opportunities

 

Nigerians who migrated to the United States recorded a significant increase in their earnings, a new report by the World Bank has said.

 

The report, "The World Development Report 2023: Migrants, Refugees, and Societies", released on Tuesday, found that low-skilled workers who move from a society with high socioeconomic inequalities to a country with fewer inequalities and a lower wage gap between low and high-skilled workers earned higher earnings.

 

The report highlighted the success of Nigerian migrants in the US, where they have seen a 1,500% increase in their earnings.

 

 

Many Nigerians migrate to Canada, the U.S., and European countries, in search of greener pastures.

 

The World Bank report highlighted the potential benefits of migration for low-skilled workers.

 

"The potential gains are highest for people who move from low- to high-income countries. The labour demand at the destination also shapes outcomes. Gains depend on migrants' skills, gender, age, and language ability," the report said.

 

"Although the absolute gains are larger for high-skilled workers than for low-skilled workers, low-skilled workers experience a multifold increase in their income as well.

 

"Yemenis and Nigerians moving to the United States increase their earnings by about 15 times. The gains achieved by low-skilled workers are higher when they move from a society with high socioeconomic inequalities to a country with fewer inequalities and where the difference in wages between low- and high-skilled workers is lower."

 

 

The report said the socioeconomic conditions in the destination country can play a significant role in determining the success of the migrants.

 

The report also said the high costs associated with low-skilled migration, including fees paid to agents, transportation costs, and pre-departure training expenses, limit the ability of workers to benefit from migration opportunities and go against the principles of fair recruitment.

 

"Migrants incur a range of expenses before their departure, from the job information and job matching fees they pay to intermediary agents to the regulatory compliance or documentation fees (for a visa/ sponsorship, medical tests, and security clearance), transportation costs, and pre-departure training costs they must pay," it said.

 

"For low-skilled migration, these costs tend to be borne by the workers, thereby contravening the principles of fair recruitment. These costs tend to increase with the duration of contracts, and they limit the ability of many low-skilled workers to benefit from migration opportunities."

 

Remittances

 

The report highlighted that households that receive remittances invest more in agrochemical materials, and thus their farms have larger yields in Nigeria.

 

"Remittances reduce poverty even in households that do not receive them. Households that receive remittances increase their spending, which boosts local economic activity and the incomes of other households in the community. Spending from remittances creates local jobs in non-tradable sectors such as construction," the report said.

 

It added that remittance inflows jumped by almost 10 times in one year and then declined in Nigeria, even though economic fundamentals suggest they should have increased steadily.

 

Premium Times.

 

 

 

Rwanda: Could FDI Be Rwanda's Lifeline As Donors Pull the Plug?

Rwanda has successfully raised donor aid, but growing its economy now depends on attracting foreign direct investment.

 

Rwanda has received significant support from international donor agencies to rebuild its economy since the 1994 genocide. With over US$1 billion a year, it has the highest donor aid per capita in East Africa (about US$85 a year), above countries like Uganda with US$43 and Kenya with US$60. Over 40% of its national budget is funded by foreign aid.

 

However, aid flows to Africa are declining, and so may not be a reliable source of external inflow. According to a new study on Rwanda's development prospects by the Institute for Security Studies' African Futures and Innovation programme, aid flows to the country are projected to decrease significantly on the Current Path trajectory. They are projected to reach 7% of gross domestic product (GDP) by 2043, down from 14.8% in 2019.

 

 

Declining aid necessitates looking for an alternative source of external financial inflows, particularly foreign direct investment (FDI). Historically, FDI in Rwanda is low compared to its income peers in Africa. Between 1990 and 2019, FDI inflows ranged between 0.1% and 4% of GDP. The total amount of FDI received by Rwanda in 2019 was equivalent to 2.5% of GDP, below the average of 3.8% for low-income African countries.

 

Like many other African countries, most FDI in Rwanda is concentrated in a few sectors. The energy sector accounts for 45% of all registered investments, and manufacturing covers 30%. The remaining 25% is in agriculture, construction, services, information and communication technology, and mining.

 

 

Historically, foreign direct investment in Rwanda is low compared to its income peers in Africa

 

Recognising this gap and the potential for improving FDI inflows, the government has implemented policies to promote a good investment climate. Over the past decade, Rwanda has moved by 100 places on the World Bank Doing Business index, and currently ranks as the second best place to do business in Africa and 38th globally. This is due to successful 'doing business' reforms that have created an enabling, competitive and favourable environment.

 

Establishing the Rwanda Development Board, a one-stop investment promotion centre and a new investment code has also helped. Registering a company takes only a few hours, and obtaining an investment certificate takes two days. Permits and documents are easily acquired from the Rwanda Development Board. Government-initiated loan guarantees and liberalisation of selected economic sectors also encourage investment.

 

 

An investment promotion law also incentivises investors in export-oriented activities and industrial manufacturing. These include a preferential income tax rate, a corporate income tax holiday of up to seven years, and an exemption from customs tax for products used in export processing zones.

 

There are also exemptions from capital gains tax, value-added tax refunds, accelerated depreciation at a rate of 50% for the first year for new and used assets, and immigration incentives. As a result, the value of registered investment increased by 515% from US$400 million in 2010 to US$2.006 billion in 2019.

 

Historically, foreign direct investment in Rwanda is low compared to its income peers in Africa

 

Despite these incentives, FDI inflow is expected to rise only marginally. On the country's current development path, these inflows could constitute 2.9% of GDP by 2043, significantly below the average of 5.2% for low-income countries in Africa.

 

Several challenges hinder private investment in the country. First, because of its landlocked position, Rwanda has higher transport costs than its neighbours closer to the coast. There's also a shortage of skilled workers with technical know-how such as accountants, lawyers and technicians.

 

The high cost of energy, mainly electricity, is also a disincentive. The average electricity tariff of US$0.20 per kilowatt-hour before tax is among the top 10 most expensive tariffs in sub-Saharan Africa. The uneven application of tax incentives and import duties is also a concern. Foreign firms expect to receive VAT tax refunds within 15 days of getting the necessary documentation, but say the process can take years and involve lengthy audits by the Rwanda Revenue Authority.

 

Likewise, Rwanda's small market coupled with low purchasing power also deters potential investment. And despite robust government institutions and security, there are still concerns about the country's democracy and human rights record. The lack of strong political opposition parties, critical voices from civil society, limited media freedom, and Rwanda's centralised political power are problems that could deter potential investors.

 

Despite many incentives for investors, FDI inflow is expected to rise only marginally by 2043

 

The African Futures and Innovation study shows that an increase in FDI, together with growth in aid and remittances - modelled as an External Financial Flows scenario - significantly improves economic growth and poverty reduction in Rwanda.

 

In this scenario, Rwanda's GDP per capita increases from US$2 219 to US$7 099 by 2050 - an improvement of US$408 (or 6.1%) above the country's Current Path. In 2019, 6.4 million Rwandans (half the population) lived below the extreme poverty line of US$1.90 a day. In the External Financial Flows scenario, only 1.4 million Rwandans (6.6% of the population) are expected to live in extreme poverty by 2050.

 

Given the potential of FDI to boost Rwanda's growth and development, the government must address challenges hindering FDI inflow. Relying on the country's renewable energy potential would produce cheaper electricity, making it a more attractive business environment. Also, equal application of the law to all businesses, including foreign firms, can attract more inflows.

 

In the long term, the country should focus on building quality education to produce the skills needed. This can be complemented with immediate skills acquisition and development programmes to train more labour in the country.

 

Enoch Randy Aikins, Researcher and Alize Le Roux, Senior Researcher, African Futures and Innovation, ISS Pretoria

 

ISS.

 

 

 

Ethiopia: Invest Ethiopia 2023 Event Kicks Off

Addis Ababa — :- A three-day international flagship event: "Invest Ethiopia 2023" kicked off today in Addis Ababa, at Sky Light Hotel.

 

The event has brought together thousands of global corporates, investors and among others.

 

This international event intends to promote Ethiopia's vast investment potential for investors who have come from around the world.

 

In her keynote address to the event, Lelise Neme, Ethiopian Investment Commissioner called on the investors to engage in the major priority investment areas including agriculture, mining, ICT, tourism, logistics manufacturing and other areas.

 

Ethiopia has made a wide-range of reforms in the investment sector to create enabling environment and easing the bureaucracy in the area for investors, she pointed out.

 

The commissioner urged global investors to invest in the aforementioned areas, noting that Ethiopia's strategic location is also vital for international market in every corner of the world.

 

ENA.

 

 

 

Rwandair to Launch Nonstop Flights to Paris

Kampala, Uganda — RwandAir has announced plans to launch nonstop flights to Paris for the first time.

 

The thrice weekly service between Kigali and Paris CDG will launch on June 27, departing the Rwandan capital at 0030 on Tuesday, Thursday and Saturday, arriving into Paris at 0930.

 

The return leg will leave the French capital at 2130 on Tuesday, Thursday and Saturday, arriving into Kigali at 0600 the following day.

 

The new route represents the only direct service between Rwanda and France, and adds to the carrier's existing flights to London Heathrow, which have operated nonstop since November last year (having previously routed via Brussels).

 

Independent (Kampala).

 

 

 

Microsoft boss: Activision Blizzard deal block is bad for Britain

One of Microsoft's senior leaders has hit out after the software giant's deal to buy US video game company Activision Blizzard was blocked by UK regulators.

 

The move was "bad for Britain" and showed that the European Union was a better place to set up a firm than the UK, Brad Smith told the BBC.

 

But the Competition and Markets Authority (CMA) said its job was not to serve the interests of merging firms.

 

The CMA added that its decision would encourage growth.

 

The proposed $68.7bn (£55bn) takeover would see Microsoft get hold of massively popular games titles such as Call of Duty, Candy Crush, and World of Warcraft.

 

But on Wednesday the regulator said it was concerned the deal would hit innovation and give gamers less choice in the fast-growing cloud gaming market, where people buy subscriptions to access games online.

 

Microsoft has already said the decision may have an impact on its UK investment.

 

In an interview with the BBC Radio 4 Today programme, Mr Smith, who is Microsoft's vice chair and president, said the company was "very disappointed" about the CMA's decision, "but more than that, unfortunately, I think it's bad for Britain."

 

"There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom."

 

The UK government has made it one of its post-Brexit goals to bring in a "light-touch" set of rules for science and technology to encourage economic growth.

 

Mr Smith said that if the UK wants to bring in investment and make Britain a place "where technology is not only going to flourish, but be created", then "it needs to look hard at the role of the CMA and the regulatory structure".

 

He added that "people are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken" by the CMA decision.

 

UK interests

However, the regulator hit back, saying: "It is the CMA's job to do what is best for the people, businesses and economy of the UK, not merging firms with commercial interests."

 

It added that its decision means that a range of firms, "large and small", can "continue to compete in this rapidly growing market".

 

This will mean more innovation, and more choice for consumers, it said.

 

"Those are the best conditions to attract investment and support growth," the regulator added.

 

Microsoft and Activision have said they would appeal the CMA's decision.

 

For the deal to work, it has to be approved by regulators in the UK, the US and the EU.

 

But it has fallen at the first hurdle. The CMA's decision may scupper the whole takeover.

 

Cloud gaming

This deal is important for Microsoft because it wants to make its position in the fast-growing cloud gaming market stronger.

 

Rather than buying games consoles, then games to play on them, cloud gaming means fans can stream titles via the internet rather than owning physical copies.

 

Microsoft has already invested a lot in this space, as it sees the future of gaming as people playing on their phones, consoles, internet TVs and other devices.

 

The deal would also give it some very popular games titles to be able to compete more with the likes of Sony, which has consistently opposed it.

 

Sony's position is that its PlayStation would have restricted access to some of the world's most popular titles, which would be bad for gamers.-bbc

 

 

 

Japan brewer Kirin buys Australia vitamin giant Blackmores

Japanese brewer Kirin has agreed to buy Australian vitamins maker Blackmores for A$1.88bn ($1.24bn; £999.4m).

 

The move comes as Kirin expands into healthcare in the face of shrinking beer sales in its home country and increasing regulation of alcohol.

 

"The acquisition of Blackmores is highly complementary to our existing Health Science business," it said.

 

The deal also gives Blackmores an exit as it has been struggling to recover sales since the pandemic.

 

Before Covid-19, the Australian natural health firm benefited from the practice of "daigou", in which Chinese consumers bought goods abroad to take back to China.

 

"The Kirin Scheme represents an attractive, all-cash transaction," the chair of Blackmores, Wendy Stops, said.

 

For Kirin, the deal is the latest in its efforts to diversify away from the alcohol business.

 

Beer sales in Japan have been falling for many years because of lifestyle changes among young people. Last year, the Japanese government launched a nationwide competition calling for ideas to encourage people to drink more alcohol.

 

At the same time, the World Health Organization has been calling for stricter rules on the global alcohol industry, urging governments to set higher prices to discourage drinking.

 

Kirin, which is known around the world for its beers, has a wider product range in its home country, including non-alcoholic, sugar-free drinks.

 

It also owns healthcare businesses and in 2019 started a partnership with Japanese skincare products and dietary supplements firm Fancl.

 

Kirin has previously said it aims to generate ¥500bn ($3.7bn; £2.97bn) in sales a year from its health business by the end of the decade.

 

The deal is expected to be completed in August. It is supported by Marcus Blackmore, the firm's founder's son, who has an 18% stake.

 

After the announcement, shares in the Australian firm rose by more than 20%, gaining the most in more than seven years.-bbc

 

 

 

US denies trying to unfairly attract overseas firms

The White House has denied starting a subsidy war, following criticism of its massive support for green energy.

 

The US is spending billions to help electric car firms, green energy and microchips via loans and tax breaks.

 

Deputy Treasury Secretary Wally Adeyemo said the US wanted other countries to make similar investments and co-operate against climate change.

 

Manufacturer Unipart, which is set to invest in the US, says the UK cannot "compete on a level playing field".

 

The US subsidies were "chilling" for UK electric vehicle production, John Neil, who runs the car parts and logistics firm said.

 

But Mr Adeyemo told the BBC: "I don't accept that criticism, because ultimately, what we want to do is see other countries make the type of investments we've made in clean energy in their countries as well."

 

Asked if the aim was to incentivise factories and jobs to divert to the US from Europe and the UK, Mr Adeyemo said: "No, I don't think that ultimately you're going to see this as 'chilling' in the EV supply chain.

 

"It's going to be additive, because... you're going to have many more consumers in the United States."

 

'Distortive subsidy race'

The EU has already formulated its response to the IRA - a Net Zero Industry Act to increase its subsidies for green industry - fast-tracking existing multibillion incentives, and it will soon loosen strict laws on subsidising industry to allow even more.

 

But the UK Chancellor Jeremy Hunt has dismissed the prospect of getting involved in "some distortive global subsidy race".

 

The UK has so far struggled to establish mass domestic production of batteries for electric vehicles.

 

Earlier this year, one senior figure in the motor industry warned the UK's car sector could disappear unless the government followed the US and EU in helping with the switch to electric.

 

But, writing in The Times last month, Mr Hunt said the UK would not go "toe-to-toe" with the US and EU on green subsidies.

 

"Our approach will be different - and better," Mr Hunt wrote. "With the threat of protectionism creeping its way back into the world economy, the long-term solution is not subsidy but security."

 

In his interview with the BBC, Mr Adeyemo picked up on the concept of "friendshoring", previously talked about by the US Treasury Secretary Janet Yellen.

 

The idea here is that friendly, trusted nations co-operate, manufacturing goods and sourcing from each other, forming one big supply chain and reducing reliance on China.

 

"When it comes to countries like China, you're right that they have a dominant position when it comes to the clean energy supply chain today," said Mr Adeyemo. "A number of the critical minerals that are key to building renewable energy are mainly sourced by Chinese companies today.

 

"And what we want to do is compete with those companies. And to compete in a way that means that we will have a resilient supply chain that doesn't only rely on one country, but relies on several countries."

 

He added: "Hopefully those countries will include our allies and partners in order to make sure that our companies have access to the critical minerals they'll need going into the future."

 

'Non-discriminatory'

Mr Adeyemo played down the "Made in America" part of the IRA plan. With regards to electric cars this means that if all or virtually all of the vehicle has been made in America then customers qualify for a tax credit to buy it.

 

This has attracted concern from the EU, but Mr Adeyemo said it was only a "small element" of the plan

 

The EU Trade Commissioner Valdis Dombrovskis told the BBC he hoped a trade war over this issue could be avoided. "It's something which we are trying to avoid from the EU side because subsidy wars tend to be expensive and inefficient."

 

He said the EU was "not against provision of domestic support for greening of the economy. Indeed, we're providing also support of our own".

 

Where there was a problem, he said, was the issue of the US giving preference to vehicles wholly or largely made in the US "so discriminating against other producers".

 

"Many EU member states also have subsidy schemes for electric vehicles, but they are non-discriminatory, so a customer can buy Tesla Made in USA and still get a subsidy."

 

Japan has already agreed a focussed agreement to help alleviate some of these concerns, and the EU and UK are in some negotiations.

 

So do IRA and other green subsidies represent a completely different form of US economic policy, which could fundamentally change the world economy?

 

"We all fundamentally know that in order for us to deal with the existential threat of climate change, we need to change the way that the economy is run and make it run more on renewable energy. And that's exactly what we're doing here," said Mr Adeyemo.-bbc

 

 

 

Facebook shows signs of revival after slump

Facebook's business appears to be reviving after months of decline.

 

Meta, the parent company of Facebook, Instagram and WhatsApp, said revenue grew 3% in the first three months of 2023, compared with the same period a year earlier.

 

It also said more than three billion people used at least one of its apps daily on average last month, up 5% from March a year ago.

 

Shares in the firm shot up more than 10% in after-hours trade.

 

The gains come amid a wider recovery for the firm's shares, as some investors buy into chief executive Mark Zuckerberg's campaign to cut costs and refocus the tech giant.

 

He has declared 2023 a "year of efficiency", announcing thousands of job cuts in recent months.

 

These moves came after the firm struggled with revenue declines last year in the face of increased competition from TikTok, privacy changes at Apple and a general slump in advertising spending.

 

Debra Aho Williamson, principal analyst at Insider Intelligence, said this year was off to a "stronger than expected start" and that the firm's forecast for coming months suggested it may "be starting to come out of the woods".

 

"In this economic environment - and after the disaster that was 2022 - 3% revenue growth [compared with last year] is an accomplishment," she said.

 

But she added that the firm "can't afford to sit still".

 

Financial markets have been closely watching for results from the big tech companies, which have a big impact on movements on the major US stock indexes.

 

Microsoft and Alphabet, owner of Google, also reported better than expected results earlier this week.

 

Meta said it brought in revenue of $28.6bn over the three months ended in March - its first quarterly growth in nearly a year.

 

It reported profits of $5.7bn for the quarter, down 24% compared with a year ago.-bbc

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Workers’ Day

 

May 1

 


 

Africa Day

 

May 25

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

TSL

Fidelity

 


Willdale

FMHL

ZBFH

 


GetBucks

Zimre

Seed Co

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell: +263 77 344 1674

 


 

 

 

 

 

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