Major International Business Headlines Brief::: 13 January 2023
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Major International Business Headlines Brief::: 13 January 2023
<https://wwww.nedbank.co.zw/>
ü UK economy beats expectations with November growth
ü Apple boss Tim Cook to have pay cut by over 40% this year
ü Cost of living: Argentina sees prices almost doubling last year
ü Royal Mail hit by Russia-linked ransomware attack
ü CPI: US inflation falls to lowest in more than a year
ü India targets China's dominance in mobile phones
ü Disney accused of squeezing theme park customers
ü Small businesses to benefit from masterclasses in Doncaster
ü Cost of living: Argentina sees prices almost doubling last year
ü Royal Mail hit by Russia-linked ransomware attack
ü Energy bills: 'I was forced onto a prepayment meter'
ü FTX: Collapsed crypto giant recovers over $5bn of assets
ü Malawi Govt Assures of Additional 25mw Power By Feb. 14
ü Kenya: Treasury CS Warns Kenyans to Prepare for Tough Economic Times
ü Egypt: Sinai Tunnels... the Dream That Came True
ü Rwanda: Why Some Plots of Land in Kigali Will Be Exempt From Tax
<mailto:info at bulls.co.zw>
UK economy beats expectations with November growth
The UK economy unexpectedly grew in November, helped by a boost from the
World Cup.
The UK's gross domestic product (GDP) - a key economic measure of services,
construction and manufacturing output - rose by 0.1%.
The Office for National Statistics said pubs and restaurants contributed to
growth as people went out to watch World Cup games.
However, in the three months to November, the economy shrank by 0.3%.-bbc
Apple boss Tim Cook to have pay cut by over 40% this year
Apple chief executive Tim Cook will see his annual pay package slashed by
more than 40% this year.
The technology giant says Mr Cook requested the cut after criticism from
shareholders.
Apple's compensation committee awarded him a total "target compensation" of
$49m (£45.1m) for 2023.
Last year the iPhone maker's shares fell sharply in the face of supply chain
issues and a global economic slowdown.
"The Compensation Committee balanced shareholder feedback, Apple's
exceptional performance, and a recommendation from Mr Cook to adjust his
compensation in light of the feedback received," Apple said in a filing with
a US financial watchdog.
The move will see Mr Cook's annual basic salary unchanged at $3m, as well as
a bonus of up to $6m.
The biggest difference to his pay package is how he will be awarded shares
in the firm.
In 2022 the company granted him $75m of shares, half of which were based on
how well Apple performed on the stock market.
For this year his stock award target has been cut to $40m, with three
quarters of that dependant on share performance.
The target for Mr Cook's compensation for 2022 was $84m, although his actual
total pay for last year was $99.4m. That figure included $630,600 in
personal security costs and $712,500 for his use of a private jet.
Last year Apple shareholders were urged by a leading investor advisory group
to vote against Mr Cook's pay package.
In a letter to investors, Institutional Shareholder Services (ISS) said
there are "significant concerns" over the "design and magnitude" of the
package.
The ISS said Mr Cook's pay was 1,447 times more than the wage of an average
Apple employee.
Mr Cook became Apple's chief executive in August 2011, just weeks before the
death of co-founder Steve Jobs.
Under Mr Cook's leadership Apple became the first company to reach a stock
market valuation of $3tn before falling to about $2.1tn during a tumultuous
year for the technology industry.
Covid lockdowns at factories in China, supply chain delays and a global
economic slowdown have helped push down Apple's share price by more than 20%
over the last year.
The 62-year-old's personal wealth stands at around $1.7bn, according to
Forbes magazine. Mr Cook has pledged to give away his entire fortune during
his lifetime.-bbc
Cost of living: Argentina sees prices almost doubling last year
Argentina saw prices almost double last year as the country's annual
inflation rate hit its highest level in more than 30 years.
Official figures show consumer prices jumped by 94.8% in the 12 months to
the end of December.
It marks the South American country's fastest pace of inflation since 1991.
Last year Argentina's central bank raised its main rate of interest to 75%
as it tries to rein in the soaring cost of living.
On a monthly basis, Argentina's monthly inflation rate stood at 5.1% in
December.
The monthly figure marks a small victory for the government of President
Alberto Fernandez as the country's official inflation rate remains below the
peak of 7.4% in July.
Policy makers and politicians may also take some comfort from the annual
rate not hitting three figures for 2022.
Price rises in December were led by cost increasing in areas including
restaurants, hotels, alcoholic drinks and tobacco, which were up by more
than 7%.
Like most countries around the world, Argentina has seen prices rise sharply
as the cost of commodities including energy has gone up.
Soaring prices have largely been attributed to a bout of central bank
money-printing, as well as the war in Ukraine.
In December the International Monetary Fund (IMF) approved another $6bn
(£4.9bn) of bailout money for South America's second largest economy.
It was the latest payout for Argentina in a 30-month programme that is
expected to reach a total of $44bn.
Last year the troubled country had three economy ministers in the space of
just four weeks.
Sergio Massa has been in the job since August and has implemented tough
policies in an attempt curb rampant inflation.-bbc
Royal Mail hit by Russia-linked ransomware attack
Severe disruption to Royal Mail's overseas deliveries has been caused by
ransomware linked to Russian criminals, the BBC has been told.
The cyber-attack has affected the computer systems Royal Mail uses to
despatch deliveries abroad.
Royal Mail has been warning customers since Wednesday of disruption due to a
"cyber-incident".
Its latest advice is for people not to try to send international letters and
parcels until the issue is resolved.
Ransomware is malicious computer software that encrypts data and locks up
systems.
The ransomware used in the attack is "Lockbit", according to a source close
to the investigation.
Computer security firms say the software has been developed and used by
criminal gangs with links to Russia.
BBC cyber reporter Joe Tidy has seen a ransom note sent by the criminals to
Royal Mail which reads: "Your data are stolen and encrypted'.
The ransom demand is expected to be in the millions, although sources close
to the investigation say there are "workarounds" to get the system going
again.
Ransomware attacks are a persistent threat to organisations around the world
over with attacks happening on a nearly daily basis.
But this situation is highly significant, as Royal Mail is what is deemed
"critical national infrastructure" - that is, it is critical to the UK
economy.
The attack is not just affecting one company and its customers, but the
communications and businesses of citizens at home and abroad.
Ransomware crews typically ramp up pressure on firms to transfer funds in a
cryptocurrency such as Bitcoin to an anonymous digital wallet.
They will have a deadline and are likely to be threatening Royal Mail with
the prospect of having potentially sensitive data published.
LockBit is thought to have strong Russian roots but the hacker that carried
out the attack could be anywhere.
Last November a Canadian/Russian man was arrested for allegedly carrying out
LockBit hacks from Canada.
A Royal Mail spokesman declined to comment on whether the attack was
ransomware, but repeated warnings to customers that there is no end in sight
to delivery disruption.
The firm is still unable to send letters and parcels overseas and says it is
"working hard" to fix the issue.
There are also minor delays to post coming into the UK, but domestic
deliveries are unaffected.
It said that some customers who had posted items abroad even before the
"incident" might see delays.
A National Crime Agency spokesperson said it was "aware of an incident
impacting Royal Mail" and was working alongside the National Cyber Security
Centre - which is part of the UK's cyber intelligence agency GCHQ - to
understand its impact.
The back office system that has been affected is used by Royal Mail to
prepare mail for despatch abroad, and to track and trace overseas items.
It is in use at six sites, including Royal Mail's huge Heathrow distribution
centre in Slough, as well as its Bristol site.
Royal Mail has faced a number of hurdles in recent months including delivery
delays as postal workers strike over pay and conditions.-bbc
CPI: US inflation falls to lowest in more than a year
A sharp drop in energy prices, in particular petrol, is helping to ease
cost-of-living pressures in the US.
US inflation was 6.5% over the 12 months to the end of December, down from
7.1% in November, the US Labor Department said.
That was the smallest increase in more than a year, and marked the sixth
month in a row that the pace dropped.
Some items such as oranges and bananas even saw outright price falls in
December compared with November.
Overall, prices slipped 0.1% over the month, driven by the fall in petrol
prices.
In remarks on Thursday, President Joe Biden celebrated the report.
"We're clearly moving in the right direction," he said. "It all adds up to a
real break for consumers, more breathing room for families."
But some analysts cautioned that the price relief was not spreading from
energy to other items as quickly as hoped.
Clothing prices, for example, rose 0.5% from November to December, and were
up 2.9% compared with a year earlier.
"Goods deflation isn't broadening out quite as quickly as we expected,"
wrote Paul Alsworth, chief North America economist for Capital Economics.
Federal Reserve inflation fight
Authorities in the US have been fighting to stabilise prices, which took off
in 2021 as the economy roared back to life after pandemic lockdowns and
companies facing shortages and rising costs hiked prices.
The war in Ukraine, which hit food and energy supplies, made the problem
worse, sending inflation to 9.1% in June - the highest rate in more than
four decades.
Line chart showing US inflation at 6.5% in December 2022
The US central bank responded last year, raising interest rates at the
fastest pace in decades, in an effort to try to return inflation to the 2%
rate it considers healthy.
Federal Reserve chairman Jerome Powell said last month that the bank would
start to move less aggressively to see how the moves are playing out in the
economy.
By boosting borrowing costs, the Federal Reserve is expecting to dampen
demand for expensive items such as homes and cars, helping to slow the
economy and ease the pressures pushing up prices.
Its fight is being closely watched, as the slowdown from higher rates also
risk tipping the world's largest economy into a recession.
Thursday's report from the Labor Department showed prices for petrol were
1.5% lower in December compared with a year earlier. Costs for used cars and
trucks also fell 8.8% year-on-year.
But Seema Shah, chief global strategist at Principal Asset Management, said
the report was a "little underwhelming" and did little to clarify the path
ahead for the bank.
"Taking a step back, evidence is building that inflation is cooling and will
continue to do so over the coming months. But perhaps the real question will
come in late Q2 as inflation tries to move below the 4-4.5% handle," she
said.
"If it plateaus there, then the Fed will have very little space to cut rates
this year and markets will face renewed challenges. And if it falls steadily
through that threshold due to growing economic weakness, permitting Fed
loosening, markets will still be challenged due to earnings concerns. Not a
great outcome, either way."-bbc
India targets China's dominance in mobile phones
Buying a new smartphone was a bit of a mission for Deepa Aswani, who works
in marketing in Mumbai.
"I am very particular about what phone I buy. I did not want to invest too
much," she says.
After two months of deliberation, she chose the OnePlus 10R, which in a sale
cost her $400 (£329), a reasonable price for a smartphone, but still a
significant sum in any country, and particularly in a developing one like
India.
"The idea was to buy a phone which did not make a hole in my pocket and had
good features. I am happy with the phone I have purchased," she says.
Like most phones sold in India, the OnePlus is made in China. According to a
report by CRISIL Research, in 2022 60% of phones sold in India were made in
China.
But that figure has been coming down - in 2021 it stood at 64% - as Indian
firms have begun win market share.
Micromax Informatics is one of those challengers. It entered the mobile
handset business in 2008. In just two years it grew to become one of India's
biggest makers of cheaper phones, known as feature phones.
Despite that growth, Micromax co-founder Rajesh Agarwal, says it is hard to
compete with Chinese smartphone makers.
When his firm launches a new phone, he can hope to sell about a million
units in India. But a Chinese phone maker can sell 10 million phones, or
more, which gives them a big cost advantage.
"They have huge strength in terms of production," he says.
On top of that, Chinese firms can source almost all of their components
locally.
India does make some parts, including chargers, cables and batteries, but
the more sophisticated parts, like screens and computer chips are almost
always made abroad.
"As far as the manufacturing is concerned - it is the beginning. We have to
become our own kitchen where we are able to produce all our components
locally," says Mr Agarwal.
"The final goal would be to transition from being a producer for domestic
consumption to serving global demand, not just for phones but laptops,
tablets and other devices," he adds.
The Indian government is hoping to accelerate that move.
In April 2021 it launched the Production Linked Incentive (PLI) Scheme for
Telecom and Networking Equipment.
It is the latest part of a government policy, which goes back years, aiming
to increase all types of manufacturing in India.
The PLI scheme subsidises mobile phone components that are made in India. It
is hoped that will make them more competitive and boost production.
According to the India Cellular and Electronics Association (ICEA), at the
moment between 15% and 20% of the parts that make up an Indian phone are
made in India.
The aim of the PLI scheme is to raise that to between 35% and 40%.
"The production-linked incentive scheme is a game changer for electronics
manufacturing," says ICEA chairman, Pankaj Mohindroo.
"India is currently one of the fastest growing mobile phone manufacturers in
the world and has emerged as the second largest manufacturer of mobile
handsets in the world," he says.
Mobile phones are the biggest single component of India's electronic exports
and next year are expected to make up 50% of electronics exports, according
to the ICEA.
"India will become the next global hub for cell phone manufacturers,"
predicts Hari Om Rai, the chairman of Indian phone maker Lava International.
He points out that China, as it has become richer and seen wages rising, has
lost some of the cost advantage that it had over other nations.
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Also, Mr Om Rai says firms all over the world are worried about becoming
overly reliant on products from China.
And the disruption at Apple's key supplier in the city of Zhengzhou is
unlikely to have lessened those worries.
If firms want to locate manufacturing elsewhere then, according to Mr Om
Rai, India is an attractive option.
"India has 18% of the world's population, with a mere 3.1% of the GDP. As
the country's GDP grows, it will become one of the world's largest markets.
Looking at the long-term potential, every company is trying to establish
itself and outcompete its competitors in India," he says.
Back in Mumbai, all this industrial policy is of little interest to Deepa
Aswani: "It does not bother me where my smartphone is manufactured. I think
as a consumer all that matters is budget and features. As a smartphone buyer
I would look at the country which has advanced technology and is pocket
friendly."-bbc
Disney accused of squeezing theme park customers
Disney is facing criticism from a high-profile investor that is unusual in
the business world: that it is squeezing money out of its theme park
customers.
The firm's reliance on raising ticket prices and other charges to drive
growth is "unsustainable", says Trian Partners boss Nelson Peltz.
He made the claim in a presentation calling for change at the media giant.
He also raised concerns about losses in Disney's streaming business and
public complaints about low staff wages.
"Disney may believe that price increases and 'nickel-and-diming' of cast
members and other costs is good for the bottom line," he says. "However, we
suspect it is short-term thinking that puts the brand value and long-term
health of the business at risk."
"Nickel-and-diming" is a US term that means to damage someone financially by
making a large number of small charges or cuts to pay.
Disney was approached for comment.
The company recently said it would roll back some of the price increases at
its theme parks, where spending per person has shot up nearly 40% since
2019, according to Trian Partners, which has built up a 0.5% stake in Disney
worth $900m.
The increases have come at a time of widespread price inflation across the
economy. Staff at Disney parks have also repeatedly protested for higher pay
in recent years.
Mr Peltz is an activist investor known for battles with big companies such
as fast food chain Wendy's and Procter & Gamble, maker of brands such as
Pampers and Vick's.
In the presentation he says Disney is in "crisis" and that many of the
challenges it faces are self-inflicted.
He says the firm overpaid to buy the bulk of Rupert Murdoch's Fox empire and
granted "over-the-top" compensation packages to chief executive Bob Iger,
who was recently reinstalled as chief executive.
He also raises concerns about the strategy for Disney's streaming business,
which has reported big losses.
Trian Partners is seeking shareholder support for a seat on the board of the
company, after Disney rejected the request. The firm says it is not seeking
to oust Mr Iger, who is widely popular.
Disney has previously said it is focusing on the bottom line in its
streaming business after an initial growth period.
It expects the business to turn profitable in its 2024 financial year.
The company, which has seen its share price sink sharply over the last year,
has also come under attack from another activist investor, Third Point
Capital, which has pushed the company to spin off its cable sports channel
ESPN.-bbc
Small businesses to benefit from masterclasses in Doncaster
Small business owners worried about the cost of living crisis have been
offered a series of free masterclasses by a South Yorkshire Council.
Doncaster Council said it would offer expert advice on improving
productivity, managing finances and upskilling workforces.
A spokesperson for the council said recent years had been "tough on small,
local businesses".
Councillor Glyn Jones advised all local businesses to take up the offer.
Mr Jones, Cabinet Member for Housing and Business, said: "It is fantastic
that our local businesses are being given the opportunity to benefit from
these sessions, all delivered by business advisers that have years of
experience across a range of sectors.
"I would encourage all Doncaster businesses to attend at least one if not
all of the masterclasses on offer".
The five free classes - which begin at the end of January and continue
through February - come in the wake of the current cost-of-living crisis,
stagnating economy and previous Covid-19 lockdowns which have put a strain
on many trying to build or maintain businesses.
Business advisors would be in attendance at the classes and would offer
support during the sessions or following them, according to the Local
Democracy Reporting Service.
Energy bill help for firms expected to be halved
Who will get £900 to help with energy bills?
Meanwhile business groups are expecting government help with their energy
bills to be halved after March, when the existing package of support
expires.
Heavy energy users will get support close to current levels.
Chancellor Jeremy Hunt told business groups on 4 January that the support
would be at a "lower level" to protect the public finances from volatile
energy markets.
A spokesperson for the City of Doncaster Council said: "If you are a local
business wanting to succeed and grow, then these masterclasses are for
you."-bbc
Cost of living: Argentina sees prices almost doubling last year
Argentina saw prices almost double last year as the country's annual
inflation rate hit its highest level in more than 30 years.
Official figures show consumer prices jumped by 94.8% in the 12 months to
the end of December.
It marks the South American country's fastest pace of inflation since 1991.
Last year Argentina's central bank raised its main rate of interest to 75%
as it tries to rein in the soaring cost of living.
On a monthly basis, Argentina's monthly inflation rate stood at 5.1% in
December.
The monthly figure marks a small victory for the government of President
Alberto Fernandez as the country's official inflation rate remains below the
peak of 7.4% in July.
Policy makers and politicians may also take some comfort from the annual
rate not hitting three figures for 2022.
Price rises in December were led by cost increasing in areas including
restaurants, hotels, alcoholic drinks and tobacco, which were up by more
than 7%.
Like most countries around the world, Argentina has seen prices rise sharply
as the cost of commodities including energy has gone up.
Soaring prices have largely been attributed to a bout of central bank
money-printing, as well as the war in Ukraine.
In December the International Monetary Fund (IMF) approved another $6bn
(£4.9bn) of bailout money for South America's second largest economy.
It was the latest payout for Argentina in a 30-month programme that is
expected to reach a total of $44bn.
Last year the troubled country had three economy ministers in the space of
just four weeks.
Sergio Massa has been in the job since August and has implemented tough
policies in an attempt curb rampant inflation.-bbc
Royal Mail hit by Russia-linked ransomware attack
Severe disruption to Royal Mail's overseas deliveries has been caused by
ransomware linked to Russian criminals, the BBC has been told.
The cyber-attack has affected the computer systems Royal Mail uses to
despatch deliveries abroad.
Royal Mail has been warning customers since Wednesday of disruption due to a
"cyber-incident".
Its latest advice is for people not to try to send international letters and
parcels until the issue is resolved.
Ransomware is malicious computer software that encrypts data and locks up
systems.
The ransomware used in the attack is "Lockbit", according to a source close
to the investigation.
Computer security firms say the software has been developed and used by
criminal gangs with links to Russia.
BBC cyber reporter Joe Tidy has seen a ransom note sent by the criminals to
Royal Mail which reads: "Your data are stolen and encrypted'.
The ransom demand is expected to be in the millions, although sources close
to the investigation say there are "workarounds" to get the system going
again.
Ransomware attacks are a persistent threat to organisations around the world
over with attacks happening on a nearly daily basis.
But this situation is highly significant, as Royal Mail is what is deemed
"critical national infrastructure" - that is, it is critical to the UK
economy.
Guardian newspaper hit by suspected ransomware attack
Royal Mail tells people not to send post abroad due to 'cyber incident'
The attack is not just affecting one company and its customers, but the
communications and businesses of citizens at home and abroad.
Ransomware crews typically ramp up pressure on firms to transfer funds in a
cryptocurrency such as Bitcoin to an anonymous digital wallet.
They will have a deadline and are likely to be threatening Royal Mail with
the prospect of having potentially sensitive data published.
LockBit is thought to have strong Russian roots but the hacker that carried
out the attack could be anywhere.
Last November a Canadian/Russian man was arrested for allegedly carrying out
LockBit hacks from Canada.
A Royal Mail spokesman declined to comment on whether the attack was
ransomware, but repeated warnings to customers that there is no end in sight
to delivery disruption.
The firm is still unable to send letters and parcels overseas and says it is
"working hard" to fix the issue.
There are also minor delays to post coming into the UK, but domestic
deliveries are unaffected.
It said that some customers who had posted items abroad even before the
"incident" might see delays.
A National Crime Agency spokesperson said it was "aware of an incident
impacting Royal Mail" and was working alongside the National Cyber Security
Centre - which is part of the UK's cyber intelligence agency GCHQ - to
understand its impact.
The back office system that has been affected is used by Royal Mail to
prepare mail for despatch abroad, and to track and trace overseas items.
It is in use at six sites, including Royal Mail's huge Heathrow distribution
centre in Slough, as well as its Bristol site.
Royal Mail has faced a number of hurdles in recent months including delivery
delays as postal workers strike over pay and conditions.-bbc
Energy bills: 'I was forced onto a prepayment meter'
Citizens Advice has called for a ban on energy companies "forcing" customers
onto prepayment meters because they are struggling to pay bills.
The charity estimates that 3.2 million people in Britain ran out of credit
on their prepayment meter last year, the equivalent of one every 10 seconds.
Audrey Ridson, 81, was switched to one even though she could not walk to the
shop to top up her energy card.
Ministers said that energy firms must offer help to those struggling.
Some have meters installed, while others have smart meters automatically
switched to prepayment mode.
People using prepayment meters pay for their gas and electricity by topping
up their meter, either through accounts or by adding credit to a card in a
convenience store or post office.
This is a more expensive method of paying than by direct debit, but is
sometimes the only option for people who have struggled to pay and are in
debt to an energy supplier. Many rented properties also have prepayment
meters.
Problems can arise when residents no longer have any credit left on the
meter, and have no money to top it up - leaving them unable to cook or heat
their homes.
Audrey from Hampshire was in hospital recovering from a fall when her energy
firm switched her to a prepayment account - even though her daughter-in-law
warned her supplier that Audrey would struggle to get to the shops to make a
payment to top up her meter.
"They [supplier] said: 'We've changed it over already to a card payment and
you'll have to go to a local shop [to top up the meter]'. My daughter in law
said: 'She won't be able to do that. She's got to have a special walking
stick. She won't be able to get up to town'. And they didn't listen to her.
It was dangerous to go up there for me because I had this injury.
"They charged me nearly £200 a month just for a shower and a light near my
cooker," Audrey told the BBC.
She added that she had built up arrears whilst she was recovering in
hospital from the fall.
Her issue was resolved only after she appealed to the charity Citizens
Advice, she said.-bbc
FTX: Collapsed crypto giant recovers over $5bn of assets
Collapsed cryptocurrency exchange FTX has located more than $5bn (£4.1bn) of
assets, an attorney for the firm says.
However, a US bankruptcy court was told on Wednesday that the extent of
losses to customers is still not known.
Prosecutors have accused FTX's former chief executive Sam Bankman-Fried of
orchestrating an "epic" fraud that may have cost investors, customers and
lenders billions of dollars.
Mr Bankman-Fried has pleaded not guilty to charges that he cheated
investors.
"We have located over 5 billion dollars of cash, liquid cryptocurrency and
liquid investment securities," Andy Dietderich, an attorney for FTX, told US
Bankruptcy Judge John Dorsey in Delaware.
Mr Dietderich said that the recovered funds do not include assets seized by
the Securities Commission of the Bahamas, where FTX was based and where Mr
Bankman-Fried was living at the time of his arrest.
Most of FTX's customers and investors who are facing losses have not been
named in the hearings.
However, American football star Tom Brady, his former wife Giselle Bündchen
and New England Patriots owner Robert Kraft were mentioned in court filings.
In December the 30-year-old was arrested in the Bahamas and extradited to
the US. He has been accused of committing "one of the biggest financial
frauds in US history."
FTX, which a year ago was valued at $32bn, filed for bankruptcy protection
on 11 November. It has been estimated that $8bn of customer's funds was
missing.
US federal prosecutors have accused Mr Bankman-Fried of misappropriating FTX
customers' funds to pay debts at his cryptocurrency trading firm Alameda
Research and to make other investments.
In December prosecutors announced eight criminal charges, including wire
fraud, money laundering and campaign finance violations. Financial
regulators have also brought claims against Mr Bankman-Fried.
FTX co-founder Gary Wang and Caroline Ellison, the former head of Alameda,
have also been charged over their alleged roles in the company's collapse.
Authorities said they were both cooperating with the investigation.
In late December Mr Bankman-Fried was released from detention on $250m bail
on condition that he does not leave his parents' home in California.
In an interview with BBC News before his arrest, he said: "I didn't
knowingly commit fraud. I don't think I committed fraud. I didn't want any
of this to happen. I was certainly not nearly as competent as I thought I
was."-bbc
Malawi Govt Assures of Additional 25mw Power By Feb. 14
Ministry of Energy has assured the nation that 25 megawatts power will be
online by 14th February 2023.
Principal Secretary (PS) for Energy, Alfonso Chikuni, made the assurance
after his ministry alongside Electricity Generation Company (Egenco) met
members of the Parliamentary Committee on Natural Resources and Climate
Change in Lilongwe on Tuesday.
He said they are using already existing structures to start generating at
least one of the four of the machines.
Chikuni said the project has been delayed because of the design that the
World Bank agreed with Egenco which involved a lot of design work.
"More importantly, the environmental impact assessment took long because of
the procedures the bank normally follows," he said.
Chikuni said the designs were completed in November but there was no time to
start construction in order to finish by 22nd December, 2022.
He said the target was missed and the work could not been done because they
entered into rainy season where they experienced challenges and delays.
This means that the works will take longer as anticipated, he said.
Chikuni further said the new date of completion is now the month of May for
a half capacity and September for two thirds of the capacity.
Chairperson for Natural Resources and Climate Change, Welani Chilenga said
the committee was disappointed with lack of commitment by government to take
into consideration the recommendations the committee earlier made.
When Kapachira Dam was washed away in January, 2022, Engine demanded funds
amounting to K10 billion to rehabilitate the dam to at least reach a certain
level where they could have started running with one or two machines to
generate at least 25MW.
"We made the recommendation but government opposed opting to go by using the
world bank way," he said.
Chilenga added that Parliament authorized government to fund Kapichira but
up to now the bank's project is moving at a snail's pace.
Currently, he said, government is going back to the original idea of using
Malawi Rural Electrification Program (MAREP) funds which the committee
suggested to government.
Chilenga said the development shows lack of seriousness by government to
take recommendations otherwise the country could have moved forward
economically.
-Nyasa Times.
Kenya: Ruto's Tax Challenge Should Start With Crackdown On Illicit Trade
Hard-pressed consumers fear they're the ones who must tighten their belts
yet again following President William Ruto's declared intention to increase
tax revenues by Sh500 billion by June this year.
It is a stern challenge for the Kenya Revenue Authority, considering it
collected Sh2.03 trillion in the 2021/22 financial year. That was the first
time in history that KRA passed the Sh2 trillion mark as a series of tax
increases began to bite.
The President, however, sees scope for yet more growth in state coffers. He
said most of the increases can come from VAT taxes that are never submitted,
adding that only 60 per cent of collectible VAT is currently paid to KRA.
Yet the illegal trade of counterfeit and smuggled goods in Kenya deprives
the fiscus of more than Sh150 billion tax revenue a year and must be
addressed as a top priority. An estimated one in every five products sold in
Kenya is counterfeit and almost four million Kenyans are using counterfeit
goods that include sugar, cigarettes, alcohol, bottled water, pharmaceutical
products and cooking oil, posing a serious threat to health and security and
depriving our economy of vital revenue.
New KRA chairman Anthony Mwaura has, so far, been very positive in his
approach. He told the Star newspaper that, under his watch, there will be no
leniency for those who try to avoid paying their taxes, stating that there
will be no "untouchables" or "sacred cows" exempt from meeting their fiscal
responsibilities.
"My immediate assignment is to seal all revenue leakages, which I have
already identified," he said. "I know where we have been losing money, where
we have not been doing very well, and where we need to pull up our socks and
change the environment of both the taxpayers and our tax collectors."
Such an attitude is welcome and we must hope that it's not too late to
properly combat sophisticated networks that are facilitating a proliferation
of contraband in our economic eco-system.
An investigation last year revealed the deep-rooted involvement of law
enforcement officers in the smuggling of illicit goods, ranging from
cigarettes to sugar.
Insiders, filmed speaking on condition of anonymity, told of high-ranking
officers running illicit trade cartels, the bribery of police and border
officials and the deadly consequences for anyone who tried to blow the
whistle on these destructive activities.
The Anti-Counterfeit Authority (ACA) says the trade in counterfeit or
smuggled goods has reached unprecedented levels. It was worth more than
Sh800 billion in 2018 and ACA fears that number has hit Sh1 trillion this
past year.
The scale of the problem should prompt Government to consider amalgamating
all state agencies handling various aspects of illicit trade into a one-stop
oversight and regulatory authority.
And the devastating impact of illicit trade on the fiscus should also be top
of their minds as they plan the next financial year and the Medium-Term
Budget.
Developing a national policy and legislation around beating illicit trade
would go a long in easing the impending heavy tax pressure on ordinary
Kenyans already caught up by the retiring of all subsidies on electricity,
fuel and other key services.
Government should beware that yet more tax increases will simply drive more
shoppers to seek supposed bargains in the black market, thereby boosting the
profits of criminals involved in illicit trade.
Instead of hiking prices for honest, hard-working citizens, Government
should be cracking down on illicit trade, strengthening enforcement at our
porous borders and ensuring that tax-evading crooks feel the full force of
the law.
That will be the fairest and most efficient method of filling state coffers
and will go a long way to meeting President Ruto's tax challenge.
Stephen Mutoro is the Chairman, Stop Crime Kenya (StoCK).
-Capital FM.
Kenya: Treasury CS Warns Kenyans to Prepare for Tough Economic Times
Nairobi — National Treasury Cabinet Secretary Njuguna Ndung'u has advised
Kenyans to brace themselves for tough economic times, saying that the
nation's financial crisis is reaching unfathomable heights.
This comes as the country's cost of living soars hitting with inflation
hitting 9.1 per cent in December as the effects of the Russia-Ukraine war
continue to batter the economy.
Speaking during the opening of the public sector hearings for the FY 2023/24
and the medium-term budget, Ndung'u demanded that the ministries should
implement austerity measures, including the suspension of any new
construction initiatives, to be able to weather through the crisis.
"From all the things we have analyzed, 2023 is not looking good, there are
clear signals that it is going to be tough year, and that the global economy
is one example in terms of where we are going," he said.
Ndung'u continued by saying that the over Sh900 billion rising wage bill
continues to be a big obstacle for the budget-making office of Parliament
and the National Treasury, and he called for action to reduce the cost at
both the national and county levels.
On his part, National Assembly Budget and Appropriations Committee Chairman
Ndindi Nyoro called on the Treasury to develop a balanced budget in the FY
2023/24 and do away with supplementary budgets which he said are developed
because of errors in the budget that can be avoided.
"The amount that goes to the salaries that pay the majority of us working
for the 49 billion Kenyans is approximately Sh900 billion, the recurrent
maintenance while still earning salary is around Sh600 billion, we must work
on our physicals in terms of reducing our deficit and work on our revenues
so that we have a more balanced budget," said Nyoro.
Further, the Treasury CS decried the mismanagement of public funds by
numerous government agencies and urged for harsh austerity measures.
Additionally, the Treasury has mandated that all ministries must finish
their current projects before beginning any new ones.
"We do not want you to start new projects before you complete existing ones
and even where there is an opportunity to restart the idle ones, let us
focus on those because that amounts to waste of resources if we have idle
projects not completed," said Treasury PS Chris Kiptoo.
The Treasury intends to suspend expenditures in some recurrent areas such as
domestic and foreign travels, communication, printing, training,
hospitality, fuel, purchase of furniture, purchase of motor vehicles,
refurbishments and routine maintenance in a bid to achieve fiscal
consolidation.
-Capital FM.
Egypt: Sinai Tunnels... the Dream That Came True
The Suez Canal tunnel construction project ... It is the largest tunnel
project in the history of Egypt and the Middle East, it was done with
Egyptian hands, in addition to that it was completed in record time, and the
Suez Canal tunnels are the largest in the history of Egypt and in the Middle
East in terms of lengths, diameters and volume of works, and the standard
time plan for implementation through accurate scientific studies and work
done with 100% Egyptian arms and experience., To give the greatest examples
of the ability of the Egyptian citizen to defeat the challenge, at the time
when companies confirmed The Egyptian company completed 5 tunnels in half
the term in only 6 years .
What are the new Suez Canal tunnels?
A few years ago, specifically in 2014, the Suez Canal Authority submitted a
plan to develop the Suez Canal axis, which included building a new canal
parallel to the old Suez Canal to facilitate navigation in the canal,
digging a number of tunnels under the canal, establishing a technology
valley that is linked to Ismailia, East Bridge and West Bridge, establishing
a number of floating bridges with the aim of increasing the country's income
from hard currency, and increasing demand for the canal as a global shipping
corridor by increasing its capacity to reach 97 ships. by 2023 and reduce
the cost of the navigational voyage, as well as make Egypt a global
commercial and logistics hub. Its cost was estimated at 60 billion Egyptian
pounds, equivalent to 8.2 billion dollars.
The work sites were received by the end of February 2015, where the arrival
of tunnel boring machines continued from November 2015 until May 2016, and
the tunnel boring machines were assembled at the work sites by Egyptian
engineers, technicians, and workers.
President Abdel Fattah El-Sisi launched the signal to start implementing the
Suez Canal tunnels project in July 2016, to carry out construction,
excavation, construction and finishing of the Suez Canal tunnels by Egyptian
hands, in an epic epic carried out by 3,000 Egyptian workers and engineers,
to complete the construction of the tunnels in just 3 years.
These tunnels (Ismailia Tunnels and Port Said Tunnels) consist of two
directions so that they allow passage back and forth. Each tunnel has two
car lanes with a width of 3.7 meters per lane. The tunnels are equipped with
surveillance cameras, speed radars, fire systems, emergency rooms and
checkpoints. The two Suez Canal tunnels were also connected to several
repeated transverse passages with a length of 500 meters for each passage.
The Suez Canal tunnels, whether Port Said or Ismailia tunnels, were
implemented under the supervision of the Engineering Authority of the Armed
Forces, and with Egyptian hands, through 4 national companies: Petrojet and
Concorde, to implement the tunnels north of Ismailia, and the Arab
Contractors and Orascom to implement the tunnels south of Port Said.
The location of the tunnels in the city of South Port Said was chosen to
create a traffic axis that started from the city of Salloum to the city of
Rafah in the east through the international coastal road through the
tunnels, and the location of the tunnels was chosen in the north of Ismailia
to connect the city of Salloum and Jaghbub in the west with Al-Awja in the
east.
4 tunnel boring machines from (Herrenknecht) were provided complete with
auxiliary equipment, which is one of the best international companies in
this field.
International companies and offices have been contracted to provide
engineering and technical consultations to achieve added value to the
project.
Project Implementation stages
Factories and auxiliary stations have been established and equipped from the
two tunnel sites as follows: a factory for the production of concrete rings
with a production capacity of 15 rings per day, two separation and
purification plants (bentonite) with a capacity of 2800 cubic meters per
hour, concrete mixing plants, two injection material mixing plants around
the tunnel body with a capacity of 30 cubic meters per hour, two electric
power plants with a capacity of 18 megawatts per station, and two compressed
air stations to support soil balance during drilling with a capacity of 11
bar per station, in addition to the construction of 4 tanks Ground water
each with a capacity of 6000 cubic meters.
The implementation of open drilling and civil works for the entrances and
exits of the tunnels began in parallel with the supply and installation of
drilling machines and the establishment of auxiliary stations to shorten the
time.
Drilling using tunnel boring machines was carried out in June 2016 with the
first machine, in the tunnels of North Ismailia and then the second machine
in August 2016, and the third and fourth machines were entered in the
tunnels of South Port Said in November and December 2016 respectively.
Each group of tunnels consists of two car tunnels, each tunnel serves one
traffic direction consisting of two lanes, and the length of one tunnel in
the north of Ismailia is 5820 meters, where 4830 of them were implemented by
tunneling method, and 990 meters by open excavation method, while the length
of one tunnel in the south of Bursai d is 3920 meters, 2851 meters were
implemented by tunneling method, and 1069 meters by open excavation method.
The inner diameter of the tunnels is 11.4 meters, while the outer diameter
is 12.6 meters, and the net height above the traffic lanes is 5 and a half
meters, and the distance between the two tunnels is 12.6 meters, and the
maximum depth of the tunnels from the surface of the earth is 70 meters, and
from the surface of the water under the Suez Canal 44 meters.
The tunnel body is lined with reinforced concrete rings, one ring consists
of 9 pieces with a total weight of 112 tons per field, and the two tunnels
are connected by transverse passages every thousand meters used in
evacuation operations for individuals in emergency situations.
Each tunnel has another underneath, emergency corridors, and firefighting
systems, and the highest drilling rate in the world was reached at about 36
linear meters in just 24 hours, and it was surprising to the machine
manufacturers, who asked for continued cooperation after such huge rates of
implementation.
The Engineering Authority of the Armed Forces supervises the process of
constructing the tunnels of Ismailia Governorate, in cooperation with the
Egyptian national companies, where the company "Petrojet" undertakes the
construction of the southern tunnel, and the company "Concor" is responsible
for the construction of the northern tunnel, with a labor size of 3 thousand
consultants, engineers, technicians and workers, under the supervision of
the Engineering Authority of the Armed Forces, and the tunnels project
consists of three tunnels: Two car tunnels and a third railway tunnel. The
three tunnels pass under the Suez Canal in the northern area of Ismailia,
and the two tunnels dedicated to cars connect the ring road in Ismailia and
the road "Ismailia / Port Said" in the west by Ras Sidr, through surface
roads and free intersections through overhead bridges, and the length of one
tunnel is about 5 kilometers, and contains 4 corridors to escape in case of
emergency, and this technique is based on the possibility of escaping from
one of the tunnels to the other, through corridors in every kilometer, and
it was implemented with a technique that is done for the first time In
Egypt, and that the establishment of corridors between the northern and
southern tunnels is a very difficult process, because there is groundwater
between the two tunnels whose strength is very terrible, and to make
openings between the two tunnels, this water had to be frozen by injecting
it with a liquid that turns the water into rock salt, and the water was
frozen to a temperature of 35 degrees below zero, where the water turned
into ice, and it was disposed of to open the passages between the two
tunnels, and one of the German companies was responsible for the process
Injection and freezing with the help of materials manufactured in Germany,
but using Egyptian labor.
The diameter of the machine that works in drilling up to 13 meters, and the
net tunnel from the inside is 11.8 meters, and after finishing the diameter
of the tunnel reached 6.3 meters, that is, it consists of two lanes that
accommodate two cars comfortably, and there are administrative buildings for
inspection, where there are 16 checkpoints in both directions, and the
inspection will be at a distance of three kilometers from the tunnel body,
and the citizen will be at a distance of not more than 300 meters from The
new city of Ismailia, immediately after exiting the opening of the southern
tunnel, which transports movement from Ismailia in the direction of Sinai,
and the tunnel accommodates all heavy cars and owners of all kinds, and each
of these tunnels under it is another tunnel called "service tunnel". Through
25 emergency rooms in each tunnel, it is possible to move in the event of
problems or emergencies through these rooms to the emergency corridors, from
which it is possible to move from one tunnel to another, as there are in
each tunnel Anti-fire systems, telephone networks.
All precautions have been taken to prevent the leakage and occurrence of
water leaching, and the places where subsidence is expected are injected,
and this is determined by the surveyors in the project, and the drilling
machine, which is 184 meters long, and its path is determined by surveying
experts, and it is directed by laser, and pumping certain materials into the
soil dissolve the soil of any kind, then the drilling output is directed
through pipes to a station called "separation station" Outside, where water
and dirt are separated, then the separation material returns back to the
machine, and then cars transfer the drilling output after that.
The number of guides from the Egyptians in the field of tunnel boring
machines increased, and all of them are young men, and the role of the
engineer was to lead the "drilling auger" and give orders to his assistants
through a computer-operated control room, and for information, the process
of changing the teeth of the drilling auger, for example, is difficult and
witha very high risk, and when it is damaged, a trained worker is placed in
a capsule to enter a dangerous area, which is the distance between the auger
and the wall that will be drilled in the place of the dam, and this capsule
Equipped with oxygen and when an emergency occurs, he exits immediately, and
this worker is medically examined before and after the implementation of the
operation for its danger, and receives a large reward for carrying out this
dangerous task.
The most difficult and dangerous place in the new tunnels is the area that
passes under the old and new Suez Canal, where it reaches a length of 24
meters, and the distance between the tunnel and the bottom of the Suez Canal
is 16 meters, and this thickness has been calculated according to accurate
engineering standards.
Tunneling experiments around the world indicate that no tunnel of this size
has been constructed in at least 5 years. The concrete rings factory was
established next to the Ismailia tunnels area to make the necessary rings
for the tunnel body instead of transporting them from their places of
manufacture and wasting time unnecessarily.
Although it is the first time that Egyptian workers have assembled the
drilling machine, they were able to assemble the machine in two months
instead of the supposed 6-month date of assembly, which was surprising to
foreign experts.
The foreign experts working on the project had other expectations about the
Egyptians, but these expectations changed completely, starting with the
installation of the machines, which took only two months to assemble, to the
rest of the implementation.
Challenges
Soil subsidence process: Drilling in unstable clay soil was successfully
carried out by modifying its properties by adding a mixture of tooth and
sand, to make it ready for the transfer of workers and equipment on it.
- Difficulty in directing the giant drilling machine, as it has a design for
movement in a certain path "above, below, north and right" and modifications
were made to the drilling machine due to the presence of a percentage of
methane gas in the soil.
Drilling Machine
The drilling machine has very large weights, and it has been assembled in
two stages:
First Stage:
It was carried out outside the tunnel by Egyptian workers and engineers
under the supervision of the German manufacturer of the machine.
Second Stage:
Assembled at the beginning of the tunnel route, the number of workers inside
the machine is 25 specialists, working in shifts every 12 hours.
Concrete factory for tunnels
A factory has been equipped to prepare and equip ready-mixed concrete and
"signal" pieces that are used to create the "cylindrical tunnel" under the
local course of the Suez Canal, and these pieces have already been produced,
and are now assembled and deformed in open warehouses near the path of the
tunnel opening, so that they are close to the drilling machine.
The cement used in the preparation of concrete is considered a type of
cement that is resistant to all external factors that may occur on the soil,
whether from groundwater or leaks from the navigational waterway. The cement
for the project is manufactured in the Egyptian factories in the Sinai and
Valley region and is supplied to the project at special prices.
These pieces are supported by rebar with high efficiency and "thickness",
which makes them able to withstand the pressure of the soil and heavy loads,
and the pressure of the waters of the Suez Canal that lies underneath. The
concrete plant is equipped with two production lines capable of producing
more than 80 concrete rings per day, equivalent to 30 linear meters.
Tunnel Detection & Security Systems
Among the advanced devices and equipment used to secure the crossings
leading to the Sinai Peninsula in the navigational course of the Suez Canal
are:
1- Detection systems for cars and trucks of the type (as&E Z- porta) from
the American company "Rapiscan" and works to scan trucks and cars with
(X-ray) rays to reveal their content, and the device can scan more than 250
trucks per hour.
2- The Eagle P-60 system provided by the American company "Rapiscan" for
security solutions, and contains an (x-ray) imaging system with a capacity
of 6 megavolts, enabling it to examine the contents of trucks and cars with
a number of 180 vehicles per hour.
Economic, developmental, security, strategic and social feasibility of the
new tunnels:
Undoubtedly, there is an economic, security, strategic and development
feasibility of this giant project, which some have referred to as the second
most important project after the High Dam:
Geographically, the tunnels linked the Sinai Peninsula to the Nile Delta and
the rest of Egypt's governorates through 20 points of contact, after the
Martyr Ahmed Hamdi 1 Tunnel and the Peace Bridge in Ismailia, in addition to
several ferries who are the points of contact and connection between the
Sinai Peninsula and the Nile Delta. Therefore, geographical connectivity has
many advantages, for example, social, economic and security.
>From a social point of view, the tunnels facilitate the movement of
individuals, especially Sinai people, and the movement of vehicles and cars,
as well as reduce congestion and congestion considering the increasing rates
of movement and navigation. In addition, they reduce travel time from days
to days; sometimes cars lock up to five kilometers and trucks carrying goods
look for five days at peak time before digging the tunnels. As Lieutenant
General Osama Rabie said During the opening of the Martyr Ahmed Hamdi 2
tunnel, more than 5 million vehicles passed through the tunnels from January
2021 to August 2021. Also, 6 million and 695 vehicles crossed over floating
bridges and ferries, and the ease of movement in the Republic's work,
especially in the Sinai Peninsula, which has suffered from marginalization
for decades, creates a state of cohesion among the people of the homeland
and enhances the sense of ownership and citizenship among the people of
Sinai because of the state's interest in them like other citizens. The
importance of the Martyr Ahmed Mansi Floating Bridge in Area No. 6 in
Ismailia, for example, is to achieve integration with several ferries and
tunnels under the canal. This ensures the ease of movement of citizens
between the east and west of the canal, and furthermore, it enhances the
concept of food security considering the state's tendency to establish fish
farming projects in the sedimentation basins east of the Suez Canal, which
in turn leads to the promotion of many other industries that will provide
job opportunities for the people of the country, including meat and fish
processing and feed production.
>From an economic point of view: The feasibility of these tunnels is:
Creating job opportunities for Egyptians, especially the people of the Sinai
Peninsula and the Canal cities, as a result of urban expansion and as a
result of the state's keenness to attract more investments through the
establishment of a road network linking the governorates of the Republic to
each other in light of other national projects, as these tunnels and
floating bridges facilitate the movement of trade by providing the supply of
raw materials to industrial facilities on an ongoing basis.
It helps to establish new industrial parks, especially with the presence of
new cities such as the new city of Ismailia, which drives development to
progress. They also facilitate the movement of trade due to the ease of
transporting goods. It enhances the chances of success of the Suez Canal
Axis Development Project, which aims to make Egypt a logistical,
navigational, and global transport center by linking the ports of East and
West Port Said, El-Arish Port, Adeeba City, Sokhna Port, Technology Valley
in East Ismailia, and the Industrial Zone in the northwest of the Gulf of
Suez.
Contributes to increasing export rates from the Suez Canal Economic Zone.
It contributes to the development and promotion of investments in the Suez
Canal area, which has 6 ports and 4 industrial zones, as the tunnels are
only five kilometers away from the industrial zone of East Port Said, in
addition to its proximity to the Russian industrial zone and the ports of
Port Said and East Tafria on the Mediterranean Sea, which facilitates the
movement of foreign trade.
It helps to extend the commercial activity of the companies affiliated with
the Suez Canal Authority in the Canal axis, which drives economic growth,
and it also enhances the tourism revenues on which the Egyptian economy
depends greatly, as it facilitates the movement of tourists because it
facilitates access to important tourist cities such as Sharm El Sheikh,
Taba, Nuweiba, Sharm El Sheikh, Dahab, and Saint Catherine. It can be said
that linking the Sinai Peninsula with the rest of the governorates of the
Republic will maximize the various tourism revenues, within the framework of
the state's plan to develop tourism by opening new horizons such as yacht
tourism, medical tourism, developing archaeological sites, reviving cultural
heritage, and building museums of international standards, as they are
tourist destinations.
>From a strategic , security and military point of view, the feasibility of
the tunnels is to enhance the strategic depth of Egypt:
East Port Said tunnels that reach North Sinai connect Rafah to the east to
Salloum in the west via the coastal road, which ensures the connection
between Egyptian governorates, ports, and airports such as the Salloum land
port, Jarjoub port, El Alamein and Borg El Arab airports, the seaports of
El-Arish and East Port Said, Ghalioun farm and Damietta Furniture City.
The Ismailia tunnels, which reach central Sinai, connect the border cities
of Salloum and Jarjoub to Al-Awja through the Dabaa axis, the regional ring
road, and the Ismailia Road
The Martyr Ahmed Hamdi Tunnel 2, it connects the western borders, Cairo, and
tourist cities such as Sharm el-Sheikh, and from there to Jordan and Saudi
Arabia.
This geographical connection with the rest of the Republic and the creation
of a network of roads and axes linking the Canal axis with other new
projects not only helps to maximize the economic benefit as a result of the
transport of people and goods, but also helps to enhance the security
presence as a result of urban expansion, which in turn leads to extending
the wave of development of the Sinai Peninsula by attracting investments,
including foreign direct investment, and establishing economic projects in
the east bank of Egypt. Thus, drying up the sources of terrorism and
eliminating any ambitions in Sinai, as well as eliminating any projects
aimed at spreading chaos and fragmenting the country. It will also raise
Sinai's share of national income, considering Egypt's move to revive and
establish economic and regional entities such as the Egyptian, Jordanian,
and Iraqi tripartite axis, as well as promote trade in the Mediterranean
region.
These tunnels are not limited to being a road connection project, but they
are a model for an integrated development project that considers the
economic aspects, which in turn affect the social and security aspect. It is
also a model for the application of the comprehensive concept of security,
which includes the human, security, economic and food dimension. It will
also make Egypt a global tourist, logistics, and commercial center and a
regional energy center because of the unique geographical and strategic
location linking the three continents, which maximizes the national income
from hard currency considering Egypt's endeavor to expand industrial
activities in the Suez Canal axis, such as car assembly, electronics, light
metal industries, ship supply and maintenance, manufacturing and maintenance
of containers, etc. All this will also contribute to reducing imports and
localizing various strategic industries.
-Egypt Online.
Rwanda: Why Some Plots of Land in Kigali Will Be Exempt From Tax
Plots of land in the City of Kigali recently turned into residential zones
but have not yet acquired basic infrastructure to facilitate planned
settlement are likely to be exempted from paying taxes, officials have said.
In the city, residential land is primarily used for building a dwelling unit
for a single-family or building a multifamily condominium or apartment
building.
According to the national land use master plan, the well-planned and
designed settlement sites with physical infrastructure including public
services, electricity, water, drainage, roads, economic activities,
recreation, and amenities to protect the environment are known as physical
plans.
Residential zones on the city's master plan without such infrastructure to
facilitate planned settlement will not pay land taxes as construction
permits cannot even be issued without them.
"During the master plan development, agricultural zones that were turned
into residential zones but have not yet got the basic infrastructure to
facilitate in building residential houses will be exempted from paying
taxes. The order has been issued and we should look at how it can be
implemented," Pudence Rubingisa, Mayor of the City of Kigali, noted as the
city launched a tax week.
The current tax payment system, he explained, shows that such land should
pay taxes whenever landowners insert in their land title's Unique Parcel
Identifier (UPI).
"But when you visit such zones, there are no roads and people are still
tilling the land. We are going to closely work with local leaders and other
institutions to have all lists of owners of such pieces of land so that they
are exempted from taxes. If that land is not yet used for settlement, it
should not pay taxes," he said.
About 50 per cent of the City of Kigali budget currently comes from
decentralized taxes, Rubingisa said, emphasizing that despite the target to
increase taxes, residential zones without basic infrastructure and that are
not yet inhabited should be exempted.
According to Ernest Karasira, the Assistant Commissioner in charge of the
Provincial and Decentralized Taxes Division, there is a need for more
awareness about the land tax exemption on residential land that is yet to
have the basic infrastructure for residential housing projects.
"RRA doesn't know if such residential zones have not yet got basic
infrastructure. Local entities should inform RRA about the status of these
residential zones that have not yet got basic infrastructure so that taxes
are exonerated. We have areas such as Gahanga, Kicukiro, and other areas in
the country where we have so many cases. We should update these zones every
year so that those without basic infrastructure are exempted from land
taxes, " he said.
Francoise Icyitegetse, a resident of Masaka sector, has been paying taxes on
her 400 square metre plot. "I was even about to sell it but I was supposed
to first clear my tax arrears. The land has no basic infrastructure and I am
currently growing sweet potatoes on the land. The tax exemption, if
approved, will be good news for me," she said.
Currently, Rwf300 is paid as tax for every square metre.
This had increased compared to the 2018 tax property law.
"Another problem is tax on land which I have not yet got the financial
capacity to develop. Where can I get taxes to pay on that land? The land tax
law should also look at this issue," added Jonathan Muhire, a resident of
Gasabo district.
A new proposal submitted by the Rwanda Revenue Authority (RRA) could, among
others, see a decrease on land taxes (immovable properties), as well as the
current rates of the corporate income tax lowered.
For those eligible for paying taxes, under the proposal, the government
would maintain previous land taxes of up to Rwf80, from the current Rwf300
per square meter - set under the property tax law enacted in 2018.
The public has decried high taxes, a concern President Paul Kagame echoed on
January 9. During a parliamentary session, Kagame tasked entities
responsible for taxation policy and legislation to hastily consider all
possible ways that can address tax issues.
-New Times.
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INVESTORS DIARY 2023
Company
Event
Venue
Date & Time
National Unity Day
December 22
Christmas Day
December 25
Boxing Day
December 26
Companies under Cautionary
CBZH
Meikles
Fidelity
TSL
FMHL
Turnall
GBH
ZBFH
GetBucks
Zeco
Lafarge
Zimre
<mailto:info at bulls.co.zw>
DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other Indices quoted herein are
for guideline purposes only and sourced from third parties.
(c) 2023 Web: <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674
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