Major International Business Headlines Brief::: 27 July 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 27 July 2023 

 


 

 


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

 


 

 


 

ü  Nigeria: Reps to Probe $4bn Debt Owed NDDC By Oil Companies

ü  South Africa: Turkish Firm to Push Ahead With Two Power Plants Despite
Environmentalists' Concerns

ü  Kenya: Court Extends Orders Barring Government From Importing GMOs

ü  South Africa: Competition Tribunal Approves Takatso Aviation's Majority
Stake In National Carrier

ü  Nigeria: 400 Cows, 200 Sheep Vaccinated Against Anthrax in FCT

ü  Africa: How Africa Can Unlock Human Capital Potential

ü  Africa: Museveni to Russia, China - If You Are Our Friends, Stop
Importing Raw Materials From Africa

ü  Africa Must Stop Being Net Exporter of Capital

ü  Nigeria: Unpaid Salaries, Poor Working Conditions Mar Plateau Workers
Scheme for Women

ü  Nigeria: Subsidy Removal - Why We Are Taking Time to Roll Out Palliatives
- Presidency

ü  Uganda Connect - Private Sector Unites to Boost Export and Investment
Opportunities

ü  Fed raises interest rates to highest in 22 years

ü  Mastercard demands US cannabis shops stop accepting debit cards

ü  Excitement over Threads fades but users return to app

ü  Joe Lewis: UK tycoon bailed in US fraud case but can't use superyacht

ü  Semiconductors: Can India become a global chip powerhouse?

 


 

 


 <https://www.cloverleaf.co.zw/> Africa: Nigeria: Reps to Probe $4bn Debt
Owed NDDC By Oil Companies

The House of Representatives has resolved to investigate the flagrant
disobedience of International Oil Companies to the Delta Development
Commission (NDDC) Act which culminated in $4 billion indebtedness to the
Commission.

 

This followed the adoption of a motion sponsored by Hon. Donald Kimikanboh
Ojogo from Ondo State at plenary yesterday. Moving the motion, the Ojogo
said the indebtedness of the IOCs to the NDDC had culminated in the drive by
the Economic and Financial Crimes Commission (EFCC) to commence the debt
recovery process.

 

He expressed worry that EFCC in its recovery process, has continually held
on to all such recovered monies without remitting same to the NDDC for the
Commission to meet its obligations.

 

 

"The establishment of the NDDC Act, 2000 was in response to heightened
agitations and violent yearnings for special intervention in the following
oil- producing States: Abia, Akwa-Ibom, Anambra Bayelsa, Cross River, Delta,
Edo, Imo, Ondo and Rivers as enshrined in Section 2 (1) of the subject under
debate.

 

"Section 14 (1) of the NDDC Act states: The Commission shall establish and
maintain a fund from which shall defrayed expenditures incurred by the
Commission. There shall be paid and credited to the fund established under
subsection (1) of this section: "(a) from the Federal Government, the
equivalent of 15 percent of the total monthly statutory allocations due to
member States of the Commission from the Federation Account; this being the
contribution of the Federal Government to the Commission-(b)3 percent of the
total annual budget of any oil producing company operating, onshore and
offshore, in the Niger-Delta Area; including gas processing companies;

 

"While the Federal Government has adhered to Section 14 (1) (a), the IOCs
have continually subjected Section 14(1)(b) to total neglect and distasteful
disrespect, thereby putting the NDDC in a state of fiscal incapacity,
culminating in serious indebtedness to contractors; more so, that, the NDDC
is being owed $4 billion by the IOCs," he stated.

 

-Leadership.

 

 

 

South Africa: Turkish Firm to Push Ahead With Two Power Plants Despite
Environmentalists' Concerns

Harare — Karpowership will continue its efforts to win environmental
approval for the installation of two ship-mounted power plants in South
African ports, Bloomberg reports.

 

According to a decision reviewed by Bloomberg, South African Environment
Minister Barbara Creecy rejected appeals from five environmental
organizations that attempted to prevent the firm from requesting permission
to erect a 450 megawatt gas-fired facility at the port of Richards Bay on
the northeast coast.

 

In a separate judgment, she permitted Karpowership to seek environmental
approval at Saldanha on the west coast, overturning her department's earlier
decision to reject authorization for a 320-megawatt operation.

 

The decisions mark the most recent development in a tale that has seen the
Turkish company's projects continually postponed due to legal issues and
environmental obstacles. This, according to Bloomberg, will help the
government's efforts to increase electricity generation in the face of
ongoing blackouts that are stunting economic growth.

 

 

Since winning nearly 60% of a state tender in March 2021 for 2,000 megawatts
of emergency electricity to address the crisis, Karpowership has been
working on three projects, accoridng to Bloomberg. However, a disagreement
over the positioning of the power ship with the national port operator will
cause a delay in the 450 megawatt project at the Port of Ngqura. It was
stated that the delay in Ngqura might be anywhere between 12 and 18 months
as a result of the requirement to locate a new spot in the harbor for the
ship to moor.

 

Karpowership still needs to obtain final environmental approval, sign a
power-purchase deal with the country's largest power company Eskom Holdings
SOC Ltd., and extend its access to the national grid before the end of this
month. Since 2010, Karpowership, a Turkish power producing firm, has been
using off-shore ships as floating gas power plants. The company contracts to
provide countries with power extends up to 20 years. With South Africa
looking to Kapowership to assist with its load shedding crisis, concerns
have been raised at the cost and the length of time of the contracts, as
well as its impact on the environment.

 

 

According to Rudi Dicks, head of the project management office in the
Presidency and member of the National Energy Crisis Committee, the
government is discussing the possibility of reducing the term for
Karpowership contracts as an "emergency' measure". Dicks called for
contracts of potentially five to ten years would be preferable to the
initial term of 20 years. This follows a comment by Electricity Minister
Kgosientsho Ramokgopa who recently said that contracts with emergency power
producers should not last longer than three to five years.

 

The Karpowership deal is aimed to lessen the impact of load shedding on the
country which has affected the economy, most notably small businesses, with
up to 64% of township small businesses stopping operations during scheduled
power cuts.

 

 

President Cyril Ramaphosa has reportedly signalled his support for the
controversial Karpowership emergency power deal, saying that was 'the way to
go right now to add those megawatts'.

 

Karpowership will continue its efforts to win environmental approval for the
installation of two ship-mounted power plants in South African ports.

 

According to a decision reviewed by Bloomberg, South African Environment
Minister Barbara Creecy rejected appeals from five environmental
organizations that attempted to prevent the firm from requesting permission
to erect a 450 megawatt gas-fired facility at the port of Richards Bay on
the northeast coast.

 

In a separate judgment, she permitted Karpowership to seek environmental
approval at Saldanha on the west coast, overturning her department's earlier
decision to reject authorization for a 320-megawatt operation.

 

The decisions mark the most recent development in a tale that has seen the
Turkish company's projects continually postponed due to legal issues and
environmental obstacles.

 

This, according to Bloomberg, will help the government's efforts to increase
electricity generation in the face of ongoing blackouts that are stunting
economic growth.

 

Since winning nearly 60% of a state tender in March 2021 for 2,000 megawatts
of emergency electricity to address the crisis, Karpowership has been
working on three projects, accoridng to Bloomberg. However, a disagreement
over the positioning of the power ship with the national port operator will
cause a delay in the 450 megawatt project at the Port of Ngqura.

 

It was stated that the delay in Ngqura might be anywhere between 12 and 18
months as a result of the requirement to locate a new spot in the harbor for
the ship to moor.

 

Karpowership still needs to obtain final environmental approval, sign a
power-purchase deal with the country's largest power company Eskom Holdings
SOC Ltd., and extend its access to the national grid before the end of this
month.

 

Since 2010, Karpowership, a Turkish power producing firm, has been using
off-shore ships as floating gas power plants. The company contracts to
provide countries with power extends up to 20 years. With South Africa
looking to Kapowership to assist with its load shedding crisis, concerns
have been raised at the cost and the length of time of the contracts, as
well as its impact on the environment.
https://allafrica.com/view/group/main/main/id/00085898.html

 

According to Rudi Dicks, head of the project management office in the
Presidency and member of the National Energy Crisis Committee, the
government is discussing the possibility of reducing the term for
Karpowership contracts as an "emergency' measure". Dicks called for
contracts of potentially five to ten years would be preferable to the
initial term of 20 years. This follows a comment by Electricity Minister
Kgosientsho Ramokgopa who recently said that contracts with emergency power
producers should not last longer than three to five years.
https://allafrica.com/view/group/main/main/id/00085898.html

 

The Karpowership deal is aimed to lessen the impact of load shedding on the
country which has affected the economy, most notably small businesses, with
up to 64% of township small businesses stopping operations during scheduled
power cuts.

 

President Cyril Ramaphosa has signalled his support for the controversial
Karpowership emergency power deal, saying that was 'the way to go right now
to add those megawatts'. https://allafrica.com/stories/202305120100.html

 

 

 

 

Kenya: Court Extends Orders Barring Government From Importing GMOs

Nairobi — The High Court has extended the orders barring the importation of
Genetically Modified Organisms (GMO).

 

This comes even as it set the hearing of the petition challenging the
decision of the government to import GMOs from September 4 to 7.

 

The orders were issued on 28th November 2022 after city lawyer Paul Mwangi
approached the court seeking the conservatory orders to preserve the status
quo pending the hearing and determination of the petition.

 

He sued the Ministry of Agriculture,National Biosafety Authority and
ministry of trade and investment.

 

When the matter came up for mention, the lawyers representing National
Biosafety, Kevin Oriri told the court that when the matter comes up for
hearing parties will be read to proceed and seek to set aside the order
barring the government from importing the GMO.

 

The judge did further direct that parties exchange documents to avoid delays
in the hearing and disposal of the petition.

 

-Capital FM.

 

 

 

South Africa: Competition Tribunal Approves Takatso Aviation's Majority
Stake In National Carrier

Harare — The Competition Tribunal has accepted Takatso Aviation's proposed
acquisition of a 51% holding in South African Airways (SAA), but with
restrictions, including a ban on layoffs and the sale of minority
shareholders' shares, EWN reports.

 

The choice has put Takatso and the department on track to complete the
regulatory framework required to pump U.S.$169 million (R3 billion) into the
struggling airline.

 

DPE and the Takatso Consortium inked a purchase deal in February 2022, which
sparked controversy. Takatso's investment, according to DPE, will aid SAA in
growing its fleet and route network.

 

SAA was last profitable in 2011 and recorded cumulative financial losses of
U.S.$122 million between 2012 and 2017. From 2008 to 2020, the airline
received taxpayer-funded bailouts of U.S.$224 million. The national carrier
has been the albatross around the necks of the South African government and
the country's taxpayers for decades.

 

The mismanagement at the airline over the years has seen several CEO and
chairperson changes after the rot in its financial affairs were exposed.

 

The airline's bailouts from the government since 1994, was largely used to
pay its creditors.

 

 

 

 

Nigeria: 400 Cows, 200 Sheep Vaccinated Against Anthrax in FCT

Over 400 cows and more than 200 sheep in the FCT have been vaccinated
against anthrax since the beginning of the exercise on Monday.

 

The acting Secretary, Agriculture and Rural Development Secretariat (ARDS)
of FCTA, Malam Ishaq Abubakar Sadeeq, who flagged off the exercise, said
that veterinary doctors would meet the herders at designated locations in
the six area councils of the territory.

 

Speaking on the exercise, the Wakili of Fulani leaders in the Paikon-Kore
Grazing Reserve, Malam Dahiru Isa Juli, who commended the effort, said many
cows could not make it to the locations as their access routes had been
taken over by farming activities.

 

He, however, confirmed that more than 400 cows and 200 sheep were vaccinated
on the first day.

 

Also speaking, the Ardon Fulani of Paikon-Kore Grazing Reserve, Malam Rabiu
Ibrahim Ingale, listed the areas that could not make it to the site of the
flagging up within the grazing reserve as Unguwar Tela and Nomadic School,
as well as Dobi, Bargada and Kutunku. H he said, "The exercise could not
take place simultaneously at the listed places during the first day as it
used to be done before, and we expected them to come on Monday, but they
didn't make it."

 

-Daily Trust.

 

 

 

 

Africa: How Africa Can Unlock Human Capital Potential

Vice-President Dr Philip Mpango has highlighted three critical measures
which African countries ought to take to unlock the continent's human
capital potential, key being harnessing public-private partnerships.

 

Others include coming up with innovative financing solutions and
strengthening training institutions.

 

Dr Mpango revealed this while opening the Ministerial Technical meeting at
the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam,
on Tuesday ahead of the African Human Capital Heads of State Summit which
convenes today.

 

The VP viewed that the meeting should come up with a strategy to motivate
the private sector to actively collaborate with the government to act as
co-sponsors and co-producers of quality human capital as key beneficiaries.

 

Besides, he underscored the need for the multilateral financial institutions
to do more by devising innovative financing solutions in support of Africa's
drive to accelerate human capital development, given the limited fiscal
space of most countries in the continent.

 

 

In particular, he said human capital investment was long term in nature and
thus requires low-cost financing with long-term maturity.

 

"I firmly believe that our training institutions, being key players in human
capital development, can and should help the continent bolster local
capacities to efficiently manage and exploit our natural resource
endowment," said Dr Mpango.

 

He added: "It is an irony that the continent spends much of its financial
resources to import knowledge for harnessing our own natural resource
wealth. African training institutions should therefore reposition themselves
and collaborate to produce home grown solutions to Africa's challenges."

 

Dr Mpango revealed that the African Union Agenda 2063 has made human capital
development as one of its primary flagship themes, which is centered on
improving access to healthcare and education for all people, advancing
gender equality, empowering women, and developing the necessary skills and
competencies for growth and transformation of the continent.

 

 

"By 2025, the African Union hopes to have at least 70 per cent of African
children enrolled in pre-primary education, while also prioritizing
investments in tertiary and higher education and technical and vocational
training programmes," noted the VP indicating a very short time was left to
meet the envisioned goal.

 

On this backdrop, the VP shared some of the milestones attained by Tanzania
in human capital development programmes as including scaling up financing
for education from 17.9 per cent in 2019/2020 to 18.9 per cent in 2021/2022
of the total budget, which is approaching the 20 percent agreed target for
2030.

 

 

As for health and agriculture, the budgets for food security and nutrition
also increased significantly.

 

To expand outreach and efficiency of social services delivery, Tanzania has
over the past two years focused on improvement of hard and soft
infrastructures, including construction and renovation of classrooms,
healthcare facilities, installation of telemedicine hubs, X-Rays and MRI
machines for all Regional Hospitals.

 

Others were cited also improved teachers and healthcare workers training,
taking into account inclusive strategies (investing in vulnerable groups),
strengthening the National Health Insurance Fund by increasing service
delivery centres and increased supply of medicines.

 

Currently, the government is implementing free, equitable and quality
primary and secondary education for all, including allowing teenage mothers
to resume their studies.

 

Besides, Tanzania rolled out a countrywide Social Safety net programme under
the Tanzania Social Action Fund (TASAF) and financial inclusion programmes
to support access to social services.

 

And, significant investment has been made in digital infrastructure and
interoperability, which have in turn contributed to wider coverage of
branchless banking and mobile money services, thereby increasing financial
inclusion from 65 per cent of the adult population in 2017 to 73 per cent in
2023.

 

"The interventions outlined above have yielded some quite impressive results
including improved food security which reversed trends in all forms of
malnutrition for children. The prevalence of stunted growth declined from 34
per cent to 30 per cent for the period between 2015 and 2022," noted the VP.

 

Earlier the Minister for Finance, Dr Mwigulu Nchemba also underscored some
valuable lessons offered by Tanzania in accelerating its human capital as
including prioritising education as a fundamental pillar for human capital
development.

 

Such efforts have yielded positive outcomes, empowering youth with the
knowledge and skills necessary to thrive in an ever-evolving World.

 

He said by forging strategic partnerships with the private sector, Tanzania
has aligned technical and vocational education and training programs with
the needs of industries, creating an integrated pathway from education to
employment.

 

Adding to that, the country is currently designing programs that will
prepare graduates at all levels, even dropouts, to seize opportunities and
contribute meaningfully to the workforce.

 

"I invite other African nations to learn from the experiences and
collaborate with Tanzania in building a brighter future, where human capital
serves as the bedrock of sustainable development," he pointed out.

 

-Daily News.

 

 

 

 

Africa: Museveni to Russia, China - If You Are Our Friends, Stop Importing
Raw Materials From Africa

President Yoweri Kaguta Museveni has called upon companies from the West to
interest themselves in investing in Africa, especially in process
manufacturing rather than focusing on importing raw materials from Africa
which has kept the continent backward.

 

"I'm proposing to the Russians and the Chinese that; if you say that you are
our friends as we have been with you when we're fighting against the
imperialists, stop importing raw materials from Africa. Encourage your
companies to locate in Africa and buy the finished products," H.E Museveni
said, giving an example of coffee where Africa gets the smallest share
despite being among the biggest growers.

 

"Why do you buy unprocessed coffee from Africa? why don't you bring your own
companies to invest in Africa so that Africa gets more money from that
coffee? In that case, we shall have bigger global prosperity because if
Africa has got more money in their pockets, they will buy more from Europe,"
the President emphasized, adding that if the global South gets more of the
460 billion dollars of coffee, even Europe will benefit because Africa will
be buying more from there.

 

 

To say this, President Museveni was meeting Directors of BRIDGIN Schools led
by Mirjam Blaak who is the Ugandan Ambassador to Belgium, the Netherlands,
Luxembourg and the European Union (EU).

 

In a meeting that took place at State House-Entebbe on Tuesday 25th July
2023, was also attended by Prof. Tanko Mouhamadou, the president and CEO of
BRIDGIN Foundation, Marie Adelaide Mathei, a Belgian diplomat in New York,
the Minister of State for Higher Education Dr. JC Muyingo and the Permanent
Secretary Ministry of Education and Sports, Ketty Lamaro.

 

President Museveni was briefed on the progress so far made in the
construction of the state-of-the-art teaching hospital in Uganda and the
establishment of the secretariat Headquarters of the Regional Universities
Forum for Capacity Building in Agriculture (RUFORUM) as well as the
conference centre and the Hotel.

 

 

In the agreement that was signed in April 2022, The BRIDGIN Foundation is to
provide a grant of US500 million to the Uganda Government to establish four
High Tech Higher Education centres in the country.

 

This is in line with the commitment the Uganda Government made in 2003 in
its bid to host the RUFORUM Headquarters where the Government pledged to
establish the Secretariat in Uganda and to provide the necessary protocol
support.

 

President Museveni welcomed the initiative as a win-win formula with Africa
which has been supporting the West even before independence with its
purchasing power.

 

"Before 1962 independence, all the cars here were British and all that time
our pockets were supporting British prosperity. The first time to see
non-British vehicles was after independence. That's when I started seeing
vehicles from Germany, France, Japan," President Museveni said, adding that
Japan has recently also not woken up to see the people who supported their
prosperity.

 

"Even fools wake up, now we are making our own vehicles," the President
noted, saying that Africa will develop with or without support from Europe
because of the increasing population now bigger than that of India and
China.

 

Ambassador Mirjam Blaak informed the President that the service providers
have been secured and are ready to provide the required infrastructure.

 

"They will only build things that we have requested according to our
specifications and it will give us the quality of the construction that we
are expecting," Ambassador Mirjam said.

 

She added that the team had made visits to Kabanyoro where the construction
of the secretariat Headquarters of the RUFORUM is going to be as well as the
conference centre and the Hotel. They also visited Katalemwa where 30 acres
have been secured to establish the state-of-the-art teaching hospital.

 

 

 

 

 

Africa Must Stop Being Net Exporter of Capital

The Vice-Prime Minister of Cape Verde Dr Olavo Correia has appealed to
fellow African countries to embark on new practices that will help the
continent to move faster in bringing an impact on its population.

 

Dr Correia extended the call during the Ministerial Technical meeting held
at the Julius Nyerere International Convention Centre (JNICC) in Dar es
Salaam, on Tuesday ahead of the African Human Capital Heads of State Summit
which convenes today.

 

According to him, Africa is endowed with enormous natural resources which if
utilised well can accelerate a huge potential in the continent.

 

 

"There is a need for leaders from the African continent to invest in its
human capital so as to take advantage of the available riches in benefiting
their people," said Dr Correia indicating that a country may possess road,
infrastructure and others, but without the right skills instilled to its
human resource it was equivalent to nothing.

 

He added that: "Today millions of people in the continent do not have access
to energy, clean and safe drinking water and lack quality jobs yet millions
are being moved overseas due to illicit financial flows within the
continent.

 

He, however, noted that millions of Africans were fleeing their countries
due to lack of opportunities, calling for the change in the individual
attitude and mindset of people within the continent.

 

Much as the World Bank and other development partners increase its
investment in human capital, he said if the continent does not play its role
all the efforts will become to waste.

 

 

He appealed for a more democratic Africa that is more transparent and one
that fosters accountability, urging for more investment in awareness as a
critical aspect in ending the scourge.

 

"Let's start with changing our behaviour and attitude by closing the doors
to illicit financing with more engagement of the World Bank for the
continent to realise its goals...Our focus should be on harnessing the
education of individuals," he said.

 

As the discussion on investing in human capital continues, he said the issue
of the dignity of Africa should be addressed by creating conditions for
Africa to live in dignity.

 

The Vice- Prime Minister was of the view that currently Africa is the net
exporter of capital, but the situation must not remain this way quoting the
World Bank Vice-President, Ms Victoria Kwakwa in her address during the
COP27 Summit which convened last year in Sharm El-Sheikh, Egypt, where she
underscored that the African continent was not where it deserved to be and
something has to be done rather than standing on the sidelines.

 

He pointed out that Covid-19 pandemic has brought new challenges such a
staggering unemployment rate and digital divide among others.

 

"We have global private partners to invest in our countries but what was
lacking was the mechanisms to make the leap. The continent has to promote
good governance, responsibility and accountability," he said.

 

He cited an example of Cape Verde where the country was using its taxpayers'
money to invest on human capital, indicating that the goal was to ensure the
access to education and health reaches 100 per cent from the present 70 per
cent comes 2030.

 

He said in 2026, the country has aspired to eradicate extreme poverty, where
the people live in dignity.

 

"Good leadership and a sense of commitment among the people and leadership
were vital in harnessing the continent's human capital potential," stated
the Vice-Minister.

 

-Daily News.

 

 

 

 

Nigeria: Unpaid Salaries, Poor Working Conditions Mar Plateau Workers Scheme
for Women

"The N8,000 we get from the Ministry of Environment is not enough, so I sell
'kunu' at construction sites to support me and my family..."

 

In 2007, the Plateau State Government, under Governor Jonah Jang, contracted
some women to sweep the streets of Jos, Bukuru and its environment as part
of government efforts to support widows and the elderly.

 

They were placed on a monthly stipend of N8,000.

 

At the onset of the scheme, about 2,400 women were employed by the Plateau
State Ministry of Environment. They were given customised reflective
uniforms, boots, brooms, hoes, waste bins and face masks to curb the hazards
that come with the job. Their salaries were paid on time and the scheme
appeared to be a success.

 

The government later decided to expand the scheme to widows and aged ones
outside the state capital.

 

Each local government (LG) had 150 'environmental women workers' as they
were called, and paid by the Ministry of Environment from the Joint Account.
By estimation, over 2,500 widows were employed as street cleaners in local
governments, alongside the 2,400 women under the payroll of the state
government.

 

 

Their monthly stipend, about N1.2 million per local government, was
disbursed from a joint account, co-owned by the state government and all the
local governments but managed by the state government. However, over time,
the payment became an issue between the LGs and the state government.

 

In 2021, the LGs took ownership of the payment of salaries to the widows
assigned to their jurisdiction. There is no data to show the current number
of women in the scheme.

 

Lami Dalyop (48), a mother of six, joined in 2012 after she lost her husband
in 2010. Her husband, a mason, was the sole provider of finance for the
family. After the demise of her husband, her uncle, a civil servant, reached
out to her and enrolled her in the scheme.

 

 

"My last child was only four months old when I lost my husband," Ms Dalyop
narrated in Hausa.

 

As early as 5:30 a.m., she would leave her house at Gwarandok, in the
Abattoir area, and walk a distance of about 3km every day to Namua junction,
her place of assignment.

 

Each of these street sweepers has specific locations and portions on the
street allocated to them that must be kept clean daily. These women work
round the clock - no break, no holidays. Every day, they must sweep their
apportioned areas, which is usually about 1km.

 

"The N8,000 we get from the Ministry of Environment is not enough, so I sell
'kunu' at construction sites to support me and my family," she told this
reporter.

 

A large chunk of the money she makes is spent on food whose prices have
risen over the months. Food inflation has remained high in Nigeria over the
last two decades.

 

 

For instance, the food inflation rate in April 2023 was 24.61 per cent,
which was 6.24 per cent points higher than the rate recorded in April 2022
(18.37 per cent). According to the National Bureau of Statistics (NBS), the
rise in food inflation was caused by increases in prices of oil and fat,
bread and cereals, fish, potatoes, yam and other tubers, fruits, meat,
vegetable, and spirits.

 

The high food prices drive more and more women into multi-dimensional
poverty.

 

Doris Ogedegbe (60) is the 'women leader' for sweepers around Old Airport
Junction to Fototek and among the 147 women placed under Jos South Local
Government Area.

 

Mrs Ogedegbe brings out her phone and shows this reporter the credit alert
(for one out of 4 months) that was received on 5 June.

 

"It was just last week that we received an alert of N8,000 from the
secretariat, out of the 4 months they are owing us," she said.

 

According to the credit alert seen, one Kwaplong Justina was the creditor.
Jonathan Nashan, the director of the Department of WASH in Jos South LGA,
confirmed that the creditor works with the Department of Finance at Jos
South LGA and is responsible for preparing vouchers for their payments.

 

"Even though civil servants are on holiday, we don't go on holidays because
they say it is a contract," Mrs Ogedegbe said.

 

The same credit alert for only a month was received by Nirat Jerry (not her
real name), who has been working since 2010 with Riyom LG. Street sweepers
in Riyom are currently being owed for nine months. Although not a widow, Mrs
Jerry joined the scheme because she had no job and needed to support her
husband financially.

 

According to Samson Dung, director Department of WASH, Riyom LG, the council
is aware of the predicament of these women and is working towards reviewing
their salaries.

 

"There is no provision for any other package for these women apart from the
salaries being paid. By estimation, about N1.2 million is budgeted for their
monthly stipends by each local government."

 

"Personally, the most important thing is for the women to be recruited into
the Local Service Commission and then they can benefit from other incentives
that accrue to local government staff. Unless that is done, we may never get
it right," he noted.

 

But it looks like the government's hands are tied. Since May 2023, Plateau
civil servants have been on an indefinite strike to demand payment of
salaries (February and March) and other entitlements. Currently, civil
servants in Riyom local government only enjoy 55 per cent of the N18,000
minimum wage.

 

 

When asked if any form of documentation was done upon resumption of the
work, all the women interviewed noted that they were called to the local
government secretariat to register their names and pick up their cards.

 

The cards would then serve as a means of identification. The women (until
2021) would queue at the state Secretariat monthly to receive their
stipends. For those who have grown old and unable to sweep, their
daughters/granddaughters or relatives, would go to the place of assignments
and sweep. On pay-day, the main beneficiaries would go and collect their
wages.

 

Accident on duty; no financial support from the government

 

One such beneficiary is Esther Philip (68), fondly called Mama. She assigned
another woman to sweep on her behalf because she could no longer afford to
do the job as a result of an accident she experienced on the line of duty.
This accident happened in 2011 at Fototek, Jos South LG.

 

"I saw a child fall down from a motorcycle that climbed gallop and I ran to
help. I became unconscious for a second and by the time I realised what was
going on, another motorcycle had climbed my leg and broken my bones."

 

Mama has remained bedridden since then. She was among the first set of women
drafted into the scheme when it was introduced in 2007, two years after the
death of her husband.

 

Although she reached out to the supervisor, there was no financial
assistance other than a condolence visit. Thankfully, her children were able
to raise almost N1 million for her surgery and treatment. To date, she is
still on pain relieve medicines.

 

However, each time she receives payment from the local government, she would
take only two-thirds of the salary and give the rest to the other woman
filling in for her.

 

Despite her predicament, Mama is hopeful that the new government will look
into their matter and increase the salary of the women.

 

"They should add more money for the women even if it is to N15,000. Some of
them are borrowing food."

 

Perhaps, her prayers may soon be answered. Last year, the Ministry of
Environment submitted a proposal for an upward review of the salaries of
these women. It also requested extra funds for the purchase of their working
equipment as most of them use their money to buy brooms and face masks.

 

Albert Chaimang, the current Permanent Secretary, Ministry of Environment,
said the proposal was approved but lack of implementation stalled the
process until the last government was phased out in May 2023.

 

"This is a new government and we want to reapply for an upward review of
their salaries," he said.

 

According to Mr Chaimang, the state secretariat is prompt to attend to
issues such as accidents and deaths by providing support to the victim or
the family of the deceased.

 

"For me, this adhoc thing is not right because as a state we are
contravening the labour laws, you are not supposed to employ somebody on an
ad-hoc basis for a long time but that was not the intention when the scheme
was first initiated," he added.

 

NLC incapacitated, women lack an organised union

 

This is not the first time the women have been owed salaries. In 2014 and
April 2023, the street sweepers thronged the governor's office due to
non-payment of salaries. However, the main workers' union, the Nigeria
Labour Congress (NLC), has remained silent on their matter, but with a valid
reason - they are not registered members of the NLC.

 

Eugene Manji, NLC chairman in Plateau, said the NLC only fights for the
rights of its members.

 

"Except the women decide to come together and form a union and register as
an affiliate of the NLC, that is when an action can be taken, not just for
Mama, but the women generally. That is what the NLC Act stipulates", he told
this reporter.

 

Plateau salary structure

 

The Plateau State government is not the first to employ widows and elderly
in environmental sanitation schemes. States like Lagos, Cross River, Ogun,
Enugu and the FCT operate similar schemes. But Plateau pays one of the
lowest wages.

 

"The payment is made from the local government funds. Even while they were
at the state, the LG pays the Ministry of Environment who then pay the
women," noted Mr Dung.

 

Scheme is impactful

 

Despite the challenges experienced by the women sweepers, Mr Dung believes
that the scheme has been impactful as it has been a source of livelihood for
many of them.

 

He, however, said the scheme needs to be reviewed.

 

"The fact still remains that we will have to go back to the drawing board,"
he said.

 

"Some of them may have died or are unable to work and they have just been
replacing them with their relations, which was not the original intention."

 

Mr Chaimang also said there will be considerations for accidents or other
issues that may arise as they engage with the new government.

 

"For me, this ad-hoc thing is not right because as a state we are
contravening the Labour laws. You are not supposed to employ somebody on an
ad-hoc basis for a long time and that is why we see these issues happening",
he said.

 

For Jos South where 137 sweepers are currently engaged, Mr Nachan said he
cannot say when the salaries will be reviewed.

 

"We have been trying to see how the government can add a little amount to
the stipend being paid but the request is always 'kept in view,"' he said.

 

Mr Manji advised the women to form a union or co-opt with an existing one,
as that is the only way the NLC can intervene on their behalf.

 

"Some things are rights and some things are privileges. The major problem
with this is that they have no organised system and leadership to handle
their case."

 

"The NLC must follow a procedure. It has its own laws and these laws are
beyond me," he said.

 

This report was supported by the Wole Soyinka Center for Investigative
Journalism (WSCIJ) under its Report Women! Female Reporters Leadership
Programme (FRLP), champion building edition

 

-Premium Times.

 

 

 

 

Nigeria: Subsidy Removal - Why We Are Taking Time to Roll Out Palliatives -
Presidency

In response to the recent outcry over the removal of fuel subsidy and the
subsequent increase in the price of premium motor spirit (PMS), commonly
known as petrol, the Presidency has come forward to explain the delay in
rolling out palliatives to cushion the effects.

 

The contemplated palliative is aimed at providing relief to the citizens and
mitigating the harsh economic realities caused by the policy change.

 

The Special Adviser to the President on Energy, Olu Verheijen, emphasised
that the government was being cautious to avoid any mistake in the
implementation of the palliative package.

 

 

During a meeting between government officials and organised Labour
representatives at the Presidential Villa in Abuja on Wednesday, Verheijen
addressed journalists alongside the Permanent Secretary of the Ministry of
Labour and Employment, Kachollom Daju.

 

The meeting, held on Wednesday, was part of a series of discussions centered
on finding ways to alleviate the impact of fuel subsidy removal on the
Nigerian population.

 

The government's steering committee, comprising various stakeholders
representing the interests of the citizens, was formed to address the
situation.

 

Verheijen highlighted the government's commitment to fast-tracking
interventions that will bring immediate relief to the people.

 

The proposed measures include initiatives related to compressed natural gas
(CNG), mass transportation, and cleaner energy options to reduce
transportation costs.

 

 

In light of the impending protest organised by the Nigerian Labour Congress
(NLC) and Trade Union Congress (TUC) to protest the fuel price hike, the
presidency underscored the need to address the issues raised by labour
unions to prevent further escalation.

 

The NLC President, Joe Ajaero, emphasised that the planned protest would
proceed on August 2 unless the suffering of Nigerians was adequately
addressed.

 

Speaking on the agenda of the meeting, Verheijen said, "it involves labour
and some parts of government, it's a steering committee. it's a wide group
of people, a wide group of stakeholders representing the interests of
Nigerians. And we've agreed to continue to make progress.

 

"It was a very productive meeting, the focus was really around how we fast
track a lot of the interventions that will bring relief, particularly around
CNG, mass transportation, cleaner energy, transportation, and reduce the
impact of the cost of transportation, the increased cost of transportation.

 

 

"So we've made good progress. And we're going to continue to do so and so
that we can start rolling out these opportunities and this relief and
measures as quickly as possible."

 

Asked if the labour would not embark on strike again as they have threatened
to do, she said, "The labour unions will speak to that. But we are making
progress, we're trying to address the issues that will prevent a strike. So
that is essentially and that's why I feel like we made very good progress
today and will continue to do so."

 

Further asked why it was taking so long to roll out some of your palliatives
the government promised Nigerians, she said, "We have to get it right. It's
important that we do this well, and we keep our promises. So it's important
that whatever is announced actually gets done because we don't want to make
big announcements that will continue to lose people's trust.

 

It's important that we build trust, and that most of the announcements and
the plans that we roll out are credible and impactful."

 

Reminded Nigerians are suffering and are not expected to wait for too long
for the palliatives to come, she said, "President Bola Ahmed Tinubu is
working assiduously to address all of these issues.

 

"And as quickly as he can, he's very empathetic, he is concerned about it,
as you've seen all of us working round the clock here to make sure that we
are able to announce these measures as quickly as possible. It's a whole
package of issues that we're rolling out as quickly as possible."

 

Meanwhile, the President of NLC, Joe Ajaero, has insisted that the August 2
protest date stands if nothing is done to ameliorate the suffering of
Nigerians brought about by increase in the price of PMS.

 

Speaking to State House Correspondents after meeting with Federal
Government's Steering Committee on Palliatives led by the Special Adviser to
the President on Energy, Olu Verheijen.

 

Asked the outcome of the meeting, Ajaero said: "Well, the outcome is very
brief.

 

"We met based on N520 increase and the committee that was set based on that
and we agreed to to work to realise the objectives that was set during the
last moment."

 

Asked organised Labour position on the palliatives yet to be provided, the
NLC President said: "The two centers have made their position known and is
before Nigerians, the TUC, the NLC, our position is known. And it's public
knowledge."

 

Asked if Labour was going ahead with August 2nd plan protests if the federal
government doesn't reverse anti-labour policies, he said: "Well, policies? I
wouldn't know, we are going ahead with the protest because we have to be
emphatic on what we put in our communique, to say we're commencing protests
from the 2nd."

 

 

Asked if that means the organised Labour was not satisfied with the outcome
of Wednesday's meeting, Ajaero said: "This meeting has no relationship with
the....remember and I want you to be careful about it. There is 520
increment, which gave birth to this meeting.

 

Nobody is discussing about 617 as at now and this meeting didn't have the
competence to address that. Is that clear? There are two issues, does that
make sense?"

 

The President of the Trade Union Congress (TUC), Festus Osifo, asked if he
was satisfied with the outcome of the meeting said: "Okay, we've had a
meeting and the meeting majorly is to listen to the presentations that is
coming from the Secretariat of the steering committee, so they have made
presentation to us. We made our robust inputs into it.

 

"Some of the things they presented we did not agree with them. So the areas
we did not agree, we also made our imputes known because when you come to
such meeting it is for government or its representatives to do a
presentation. But it's left for us to either agree or disagree.

 

"So during the meeting, we gave them sufficient feedback. And they also
agreed to go and look at those feedbacks and get back to us on Friday."

 

The TUC president declined to mention the areas of disagreement saying, "We
are still discussing, I don't think it is quite good for us to be discussing
those particular subjects now more so because they told us that they will
come back to us by Friday and Friday is about 48 hours away.

 

"So it is better we hold on, we wait till Friday for them to give us a
feedback then we can go into the nitty gritty."

 

Asked to summarized what labour really wants government from government,
Osifo said: "What we want government to do is to address the plight of
Nigerians. Nigerians are suffering, just as we said in our press conference
few days ago, that Nigerians are suffering, that things are hard, that
things are difficult, because things are difficult today in Nigeria, you
must roll up programmes that will ameliorate the suffering, because at the
end of the day, it is about Nigerians, because government exists in order to
take care of the downtrodden, majorly.

 

"So all we are saying is that government must as a matter of urgency,
because we don't have we don't have that time anymore. So as a matter of
urgency must roll out various programs that will create alternative to PMS,
and also palliatives.

 

"So these are the two focus, alternative to PMS, that is about the CNG and
also the palliatives that must be brought out to ameliorate these sufferings
Nigerians are passing through."

 

Asked the timeline, he said: "We are meeting again on Friday. So, when we
meet on Friday, we will hear from them, they can tell us that by Monday
morning, they will start rolling them out here so we meet on Friday."

 

Leadership.

 

 

 

Uganda Connect - Private Sector Unites to Boost Export and Investment
Opportunities

In response to H.E. President Yoweri Kaguta Museveni's directive for a more
compelling presentation of Uganda and its products in foreign markets,
Uganda Connect has emerged as a pivotal platform.

 

The launch of Uganda Connect, a private sector-led brand and marketing
drive, took place at Next Media Park, drawing investors, producers, farmers,
exporters, and media partners.

 

Uganda Connect seeks to supplement government initiatives in promoting
exports and enhancing Uganda's global appeal. The private sector's active
involvement underscores a united approach toward driving the country's
export potential.

 

 

The initiative aims to connect millions of individuals to Ugandan products
and investment prospects through a comprehensive and unified branding and
marketing strategy.

 

The first Uganda Connect Hub, situated in Belgrade, Serbia, will be launched
by the Ugandan President, Yoweri Museveni, on July 31, and it aligns with
the government's agenda to promote Ugandan exports and foster international
connections.

 

It focuses on seven key export products, including coffee, vanilla, cocoa,
tea, beef, flowers, banana flour, fruits, and vegetables, as agreed upon by
the governments of Uganda and Serbia.

 

Odrek Rwabwogo, Chairman - Presidential Advisory Committee on Exports and
Industrial Development, expressed optimism about the Trade Hub in Belgrade,
considering it a golden opportunity for Ugandan companies to access a
broader global consumer base.

 

This transformative initiative heralds a new era for Uganda, where
collaboration between the private sector and the government sets the stage
for remarkable progress on the global stage.

 

 

 

Fed raises interest rates to highest in 22 years

The US central bank has raised interest rates to the highest level in 22
years as it fights to stabilise prices in the world's largest economy.

 

The decision lifted the Federal Reserve's influential benchmark rate to a
range of 5.25% to 5.5%.

 

It marked the eleventh increase since early 2022, when the Fed started
raising borrowing costs to try to cool the economy and ease price inflation.

 

The Fed offered few firm clues as to what it might do next.

 

"We're going to be going meeting by meeting," bank chairman Jerome Powell
said at a press conference following the announcement.

 

"It is certainly possible that we would raise the funds rate again at the
September meeting if the data warranted," he said. "And I would also say
it's possible that we would choose to hold steady."

 

Wednesday's decision came ahead of central bank meetings in Europe and
Japan.

 

In the UK, where inflation was 7.9%, the Bank of England is widely expected
to raise its key rate at its next meeting on 3 August from the current 5%.

 

In the US, some analysts said the Fed had done enough.

 

Inflation in the US was 3% in June. That was down from a peak of more than
9% last year, when prices were rising at the fastest pace in four decades.

 

"We think they're at a point where the Fed funds rate is restrictive enough
to slow the economy, slow activity and allow inflation to trend lower," said
Kathy Bostjancic, chief economist at insurance firm, Nationwide Mutual,
adding that she did not expect to see further hikes this year.

 

The Fed has already brought interest rates up from near zero less than 18
months ago, putting to an end an era of low-cost borrowing that started
during the financial crisis.

 

The moves have hit the public in the form of more expensive loans for homes,
business expansions and other activity.

 

In theory, that should reduce borrowing demand and encourage saving,
eventually cooling the economy and making it harder for firms to raise
prices.

 

But the economy in the US has held up better than many expected so far -
especially in the labour market, where jobs continue to be added at a robust
pace and wages are rising.

 

Mr Powell said he expected the job market would have to weaken further and
growth slow more before the Fed could be confident its job was done.

 

"It's not that we're aiming to raise unemployment but we have to be honest
about the historical record," he said.

 

While acknowledging progress, he also noted that so-called core inflation -
which does not include food and energy prices - remained more than double
the Fed's 2% inflation target.

 

Andrew Patterson, senior economist at Vanguard, said the Fed was worried
about declaring victory prematurely, mindful of mistakes made in the 1960s
and 1970s, when bank leaders embraced signs that inflation was easing only
to see the problem flare up again.

 

"They had a positive inflation report this past month but ... they're going
to want to see more of that going forward before they're comfortable," he
said. "They're not going to take anything off the table or pin themselves
into a corner."

 

David Henry, investment manager at Quilter Cheviot, said the Bank of England
and European Central Bank were "much further behind" than the US on
controlling inflation, which could lead to a "bifurcation" or division in
policy among developed economies.

 

"They would love to have luxury that the Fed has in declaring the job nearly
done, but instead talk is of rates of 6%, if not more," he said.

 

He added: "There is a chance the US begins talking about rate cuts before
the BoE has had a chance to pause and assess the impact of its actions, and
this would have a significant impact on stock and bond prices on both sides
of the Atlantic."-BBC

 

 

 

 

Mastercard demands US cannabis shops stop accepting debit cards

Mastercard has said financial payment companies must stop allowing US
customers to buy legal marijuana in shops with its debit cards.

 

Because marijuana remains illegal at a federal level in the US, customers in
the 38 states where it is allowed are usually forced to pay in cash.

 

Mastercard said the move comes after it found some shops accepted debit
payments despite the federal ban.

 

Marijuana advocates have called for new laws to ease sales of legal
cannabis.

 

"As we were made aware of this matter, we quickly investigated it. In
accordance with our policies, we instructed the financial institutions that
offer payment services to cannabis merchants and connects them to Mastercard
to terminate the activity," Mastercard said in a statement on Wednesday.

 

"The federal government considers cannabis sales illegal, so these purchases
are not allowed on our systems," the statement continued.

 

The crackdown aims to stop marijuana businesses, known as dispensaries, from
offering the option to customers of paying with a debit card after entering
their account's PIN number.

 

Marijuana is currently legal for medical use in 38 states. It is also legal
for adults over 21 years old to buy for recreational use in 23 states,
including Washington DC and the entire US West Coast.

 

In Canada, where cannabis was legalised on the national level in 2018,
customers are often permitted to make payments with credit or debit cards.

 

Making it big selling legal weed is harder than it looks

Weed-growing nuns pray for profits

Sunburn Cannabis CEO Brady Cobb criticised Mastercard's decision, saying
"this move is another blow to the state-legal cannabis industry and
patients/consumers who want to access this budding category".

 

The Democrat-controlled US Senate is hoping to pass a law that would make it
easier for cannabis businesses to interact with financial institutions.

 

But earlier this month, top Republican Senator John Cornyn described the
bill's passage as "wishful thinking".

 

 

'-BBC

 

Excitement over Threads fades but users return to app

Facebook founder Mark Zuckerberg has said his new social media app, Threads,
is drawing more repeat users than he had expected.

 

The app attracted more than 100 million sign-ups within days of its launch
this month in a challenge to Elon Musk's rival platform, X, formerly
Twitter.

 

But analysts questioned whether Threads would be able to keep people
engaged.

 

Outside data firms have reported that sign-ups and time spent on the
platform have declined since the launch.

 

Mr Zuckerberg said the initial success had taken executives by surprise and
"we're seeing more people coming back daily than I had expected".

 

He said improving that engagement was the company's focus now and success
was not a "foregone conclusion".

 

"We have a lot of work to do to really make Threads reach its full
potential," he said.

 

His remarks came as Meta, the parent company of Facebook, Instagram, and
WhatsApp, reported a surge in advertising sales and solid user growth, with
3.07 billion people globally active on one of its apps each day.

 

The gains suggest Meta is emerging from last year's slump, when advertising
sales fell in the face of increased competition, privacy changes from Apple
and general economic weakness.

 

Meta said it raked in $32bn in advertising sales in the April-June period,
up 11% from the prior year.

 

That was better than analysts had expected, with growth accelerating from
the prior quarter.

 

Profits rose even faster, climbing 16% year-on-year to $7.79bn.

 

The results helped lift the firm's shares in after-hours trade. The price
per share has already more than doubled since the start of the year, as
investors buy into Mr Zuckerberg's campaign to cut costs and refocus the
tech giant.

 

Meta said it employed about 71,469 people at the end of June, down 14% from
a year earlier. It said the figure only reflected the impact of about half
of the thousands of layoffs it has announced in recent months.

 

"There's a lot to feel good about when it comes to Meta right now," said
Insider Intelligence principal analyst Debra Aho Williamson.

 

She said the company still had to navigate a weak advertising market and
tough competition in advertising and artificial intelligence. Its virtual
reality investments also have yet to pay off.

 

"These things will weigh on Meta in the second half of the year, but thanks
to the momentum .. it will be in a stronger position to face those
challenges," she said.-BBC

 

 

 

 

Joe Lewis: UK tycoon bailed in US fraud case but can't use superyacht

A New York City court has imposed sweeping restrictions on British
billionaire Joe Lewis as he awaits trial on insider trading charges.

 

Mr Lewis, 86, pleaded not guilty and was granted $300m (£230m) bail.

 

But the Manhattan judge required him to surrender his passport and banned
him from using his superyacht.

 

Mr Lewis is not allowed to travel abroad, including to the Bahamas oceanside
resort he reportedly co-owns with Tiger Woods and Justin Timberlake.

 

The tycoon, whose family trust owns Tottenham Hotspur football club, can
still use his private plane - for business - within the boundaries of
restricted domestic travel.

 

During Wednesday's hearing before Judge Valerie Figueredo, the bail bond was
secured by Mr Lewis' 223ft (68 metre) yacht, the Aviva, and private
aircraft.

 

Mr Lewis was charged with 16 counts of security fraud, and three counts of
conspiracy for crimes alleged to have taken place between 2013-21, according
to the 29-page indictment.

 

Lawyers for Mr Lewis, whose net worth is estimated more than $6.4bn, called
the charges an "egregious error".

 

The allegations are "ill conceived" and will be "vigorously defended in
court," Mr Lewis' lawyers said.

 

New York prosecutors allege he hatched a "brazen" scheme that enriched his
friends, which include two of Mr Lewis' pilots, who are facing charges, too.

 

The pilots, Patrick O'Connor and Bryan Waugh, also pleaded not guilty to
insider trading charges.

 

Mr O'Connor and Mr Waugh, of New York and Virginia respectively, are accused
of illegally making millions of dollars from Mr Lewis' tips.

 

Their bail was set at $250,000 each.-BBC

 

 

 

Semiconductors: Can India become a global chip powerhouse?

It has been a year-and-a-half since India announced incentives to power up a
homegrown semiconductor manufacturing industry and launched a national
mission, but progress has been slapdash.

 

Days after US major Micron announced it would invest nearly $3bn (£2.3bn) in
an assembly and test facility in the western state of Gujarat, Taiwanese
tech giant Foxconn withdrew from its $19.5bn joint venture with India's
Vedanta to build a chip-making plant in the country.

 

Plans of at least two other companies appear to have been stalled, local
media say.

 

But as Mr Modi's government waits for high-value investments from chipmakers
to match a $10bn incentives outlay, it has been inking a bunch of technology
partnerships to get the industry on a firmer footing.

 

Following an agreement with the US on Critical and Emerging Technology
(iCET) to enhance bilateral collaboration on semiconductor supply chains,
India signed a similar memorandum of understanding with Japan last week.

 

Separately, at least three Indian states have announced individual policies
aiming to secure investments in this sphere.

 

While generous subsidies and a strong policy push have created a springboard
for the sector to take off, time is of the essence and transfer of
technology will be key to India's emergence as a manufacturing hub, says
Konark Bhandari, a fellow at Carnegie India.

 

"Whether companies commit to bringing these technologies will hinge upon an
agglomeration of multiple factors, such as business climate, domestic
market, export potential, infrastructure and talent," he says.

 

As things stand, only parts of this puzzle appear to have fallen into place.

 

India advantage

Semiconductors power every aspect of modern, digital life - from tiny
smartphones to mega data centres that control the internet.

 

Advanced semiconductor technologies also play a key role in the auto
industry's transition to climate-friendly electric vehicles and the
development of AI applications.

 

India makes up 5% of the global demand for chips. That's likely to double by
2026, according to Deloitte, driven by greater adoption of smartphones,
consumer appliances and new trends like self-driving cars.

 

Prime Minister Narendra Modi addresses after presenting the CSIR Shanti
Swaroop Bhatnagar Prize for Science and Technology 2016-18 at Vigyan Bhavan
on February 28, 2019

 

 

The domestic market is evidently thriving. But across key phases of the chip
production value chain - product development, design, fabrication, ATP
(assembly, test and packaging) and support - India has a strong presence
only in the design function and will have to start from scratch when it
comes to manufacturing.

 

"India houses 20% of the global talent in chip design. There are 50,000
Indians doing this work," Kathir Thandavaryan, a partner at Deloitte, told
the BBC.

 

Most semiconductor manufacturers - including Intel, AMD and Qualcomm - also
have their largest research and development centres in India, leveraging
local engineering talent.

 

Getting trained personnel, however, could become a major headwind for
companies, according to Deloitte, with an estimated quarter million people
required to work across the value chain when investments start flowing in.

 

Greater industry-academia collaborations in this area will, therefore, be
crucial.

 

To its credit, the government has been working towards enabling this by
training 85,000 engineers, for instance, through its 'Chips to Startup'
scheme.

 

A number of other factors too - such as an improvement in global rankings on
logistics, infrastructure and efficiency, and a more stable electricity
grid, a critical prerequisite for semiconductor manufacturing - have
fortified India's preparedness to be part of this global race, experts say.

 

Geopolitics also seems to be in India's favour, with increased focus in the
US to seek alternative locations to China to outsource parts of its own
semiconductor supply chain.

 

India, as an increasingly close ally, can become a viable "friend shoring"
destination for US companies seeking to outsource support functions,
according to Mr Thandavaryan.

 

But its protectionist trade policy, particularly its absence in multilateral
trade pacts like RCEP (Regional Comprehensive Economic Partnership), could
prove costly.

 

"If semiconductor companies based out of China were to diversify, they would
be unlikely to face major changes to the tariff scheme applicable to their
components if they were moved to Vietnam. This is because there is likely to
be more uniformity among countries that are part of the same regional trade
arrangement," says Mr Bhandari.

 

Stumbling blocks

New Delhi's single biggest challenge to positioning itself as a global
option for chip makers, however, is one that's all too familiar to
manufacturers across industries - a notoriously difficult 'doing business'
environment.

 

The country, known for its software prowess, doesn't really have hardware
capabilities. The manufacturing sector's share of GDP has remained stagnant
for years because of the lack of a facilitating ecosystem.

 

India will need to undertake "fundamental and enduring reforms" to change
this and make its semiconductors mission a success, say experts.

 

"That entails addressing investment barriers such as customs/tariffs,
taxation, and infrastructure," Stephen Ezell, vice president for global
innovation policy at the US-based Information Technology and Innovation
Foundation, told the BBC.

 

"India's not going to be able to compete in the long-run with competitors
such as China, the European Union, or the US if incentives are its
first-order strategy to attract semiconductor ATP or fabs."

 

That's primarily because India's semiconductors incentives policy is just
one among several in the world. The subsidies simultaneously being offered
by blocs like the EU or the US are far larger.

 

Minister Ashwini Vaishnaw gives a demo of the complex, precision
semi-conductor tech that Micron Technology is bringing to India during a
press conference at BJP Headquarters in New Delhi on June 26, 2023.

 

 

Most companies will also not relocate their operations at the drop of a hat
for subsidies "because they have an existing ecosystem of suppliers,
partners, consumers, a logistics network - all of which make it difficult to
offshore operations to other jurisdictions", says Mr Bhandari.

 

India's subsidies could also be better directed, say experts.

 

Right now, it offers them across all ends of the chip-making value chain.
Instead, the country could play to its strengths.

 

For example, it can invest in training schools for engineers or double down
on its competitiveness in semiconductor ATP and design support rather than
on the actual fabrication of chips, which is hugely capital-intensive and
has long gestation periods.

 

The government mustn't get locked in a "shiny-object syndrome" of focusing
on fabrication, warns Mr Ezell.

 

However, being competitive in it would mark a "major technological leap for
the country" and the government is right to try and seek more investment in
this category, he adds.

 

Not having some domestic fabrication facilities would also have "serious
implications for India's import costs", says Mr Bhandari, as domestic
electronics production crosses the significant $100bn mark.

 

High-stakes gamble

Much is clearly at stake with India's semiconductor gamble. It has had
several false starts in the past. But after years of delays, a dedicated
policy that broadly gets it right is just the first step in the right
direction.

 

This is a "fresh opportunity to correct the earlier misses," says Mr
Bhandari. "The geopolitical stars have aligned to aid this opportunity. In a
fractious world with fragmented supply chains, India finds itself at a
crossroads - it can either undertake a serious attempt at nurturing hardware
manufacturing or let yet another opportunity slip."-BBC

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


CBZ

AGM

Virtual

July 21 2023 | 4pm

 


POSB

AGM

Chapman Golf Club

July 25 2023 |10am

 


Afdis

AGM

Virtual | St Marnocks, Lomagundi Road, Stapleford

July 26 2023 | 12pm

 


RTG

AGM

Rainbow Towers Hotel

July 27 2023 |12pm

 


ZHL

AGM

206 Samora Machel Avenue

July 28 2023 | 10am

 


Delta

AGM

Virtual | Head Office, Northridge Close, Borrowdale

July 28 2023 | 12:30pm

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


zIMBABWE

 

2023 harmonised elections

August 23

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <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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